Agenda of Ordinary Meeting - Monday, 26 June 2023

Ordinary Meeting – Monday 26 June 2023

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CL23.193 Response to Notice of Motion – Crime Spree in the Nowra CBD

HPERM Ref: D23/201972

Department: Community Connections

Approver: Jane Lewis, Director - City Lifestyles

Reason for Report

The purpose of this report it to respond to MIN23.138 – “Notice of Motion – Crime Spree in the Nowra CBD”.

This report provides an updated summary of options for council to improve community safety in the Nowra area and broader Shoalhaven.

Recommendation

That Council:

1. Receive this report Response to Notice of Motion – Crime Spree in the Nowra CBD for information.

2. Thank South Coast Police District for their assistance in preparing this report and attending to speak at this Ordinary Meeting.

Options

1. Adopt the recommendations.

Implications:

An updated summary of options for Council to improve community safety will be received. The contribution of South Coast Police District will be recognised. There are no funding implications.

2. Adopt the recommendations, with additional recommendations as identified by Council.

Implications:

No funding is currently allocated to deliver any of the options for improving community safety, outlined in Part 7 of this report. If Council has an appetite to bring forward any of this unfunded work, it could consider adding to the recommendations to identify the priority for funding, should funding become available in a Quarterly Budget Review in 2023/24.

The costs and community safety outcomes vary depending on the chosen priority, as discussed in Part 7 of this report. Indicative costs range from $38,000 to $1.2million plus ongoing operational costs, asset management and replacement at end of life.

Background

Notice of Motion

At the Council meeting of 13 March 2023, CL23.82 ‘Notice of Motion – Crime Spree in the Nowra CBD’ was presented. Subsequently, MIN23.138 resolved that Council:

1. Records its urgent concern about the spate of vandalism of vehicles occurring in council carparks in and around the Nowra CBD.

2. Notes that council has been advised that none of our carparks currently have any CCTV camera coverage which has made it difficult for the police to catch the culprits.

3. Notes council received a report and briefing from Community Connections and the NSW Police in August last year about the development of the Community Safety Plan.

4. Directs the CEO request an update from local police on their investigation of the recent uptick incidents, what steps they are taking and how council can support their efforts.

5. Reaffirms the motion carried in June last year to investigate options for the installation of CCTV cameras and other measures to protect people and property in the Nowra CBD.

6. Directs the CEO in light of additional and escalating vandalism to review options available to council to expedite the installation CCTV cameras as requested in point 4 of the original motion.

7. In the interim, directs the CEO to urgently investigate and report back on immediate steps council can take including the possibility of council employing a security guard on a 3-month contract to patrol the carparks in and around the Nowra CBD.

The information below responds to each part of the Notice of Motion resolved with MIN23.138.

Part 1 – That Council records its urgent concern about the spate of vandalism of vehicles occurring in council carparks in and around the Nowra CBD.

This was achieved by resolving MIN23.138 Part 1 on 13 March 2023.

Part 2 - That Council notes that council has been advised that none of our carparks currently have any CCTV camera coverage which has made it difficult for the police to catch the culprits.

This was achieved by resolving MIN23.138 Part 2 on 13 March 2023.

Report CL22.353 provided an audit of Council owned carparks in the Nowra CBD and noted that, as of 8 August 2022, “There are currently no CCTV cameras located in these Council owned car parks”.

Part 3 – That Council notes Council received a report and briefing from Community Connections and the NSW Police in August last year about the development of the Community Safety Plan.

This was achieved by resolving MIN23.138 Part 3 on 13 March 2023.

A Councillor Briefing on “Community Safety in Nowra CBD” was provided by Community Connections and NSW Police on 21 July 2022, noting that:

· In Nowra, incidents of malicious damage to property showed a downward trend of 4.1% per year over a ten-year period and remained stable over a two-year period to March 2022. Malicious damage to property was significantly more likely to occur in residential settings.

· It is highly recommended that the decision to apply for grant funding for the investment in community safety infrastructure and measures in the Shoalhaven be guided by the recommendations formed in the proposed Shoalhaven Community Safety Plan.

Part 4 - That Council directs the CEO request an update from local police on their investigation of the recent uptick incidents, what steps they are taking and how Council can support their efforts.

The Mayor and CEO met with Senior Nowra Police representatives on 13 April 2023 to discuss a collaborative response to the Notice of Motion and to consider opportunities for ongoing dialogue with Council and the community in relation to community safety. One such opportunity was a six-monthly briefing from a Police representative to an Ordinary Meeting of Council - with the first of those briefings being from a NSW Police representatives South Coast Police District to address the Ordinary Meeting on 26 June 2023.

A review of data from the NSW Bureau of Crime Statistics and Research was undertaken by Council officers in May 2023. Data was available for the period up to December 2022 and shows, for malicious damage to property in the Shoalhaven LGA, that:

· Incidents show a stable trend for the two-year period.

· 818 incidents were reported between January and December 2022. Of these, 65.0% (532) recorded incidents were within residential premises and 5.0% (41) were within carparks.

Whilst crime data is not available for the Nowra CBD, it is available for the suburb of Nowra. Data was available for the period up to December 2022 and shows, for malicious damage to property in the suburb of Nowra, that:

· Incidents show a stable trend for the two-year period.

· 271 incidents were reported between January and December 2021. Of these, 67.9% (184) recorded incidents were within residential premises and 6.6% (18) were within carparks. Considering carpark incidents, 22.2% (4) happened at night and 77.8% (14) happened during the day.

· 288 incidents were reported between January and December 2022. Of these, 61.7% (182) recorded incidents were within residential premises and 9.2% (27) were within carparks. Considering carpark incidents, 11.1% (3) happened at night and 88.9% (24) happened during the day.

It should be noted that the stable crime trend has been maintained in the context of significant population growth for the suburb of Nowra. Between 2020 and 2022, the estimated resident population of Nowra suburb grew by 3.03%.

Part 5 – That Council reaffirms the motion carried in June last year to investigate options for the installation of CCTV cameras and other measures to protect people and property in the Nowra CBD.

These options were investigated and reported on 8 August 2022 in CL22.353.

CL22.353 addressed “4. Directs the CEO to include in his report recommendations for any additional security infrastructure or other measures needed to improve community safety particularly in the Council owned car parks servicing the Nowra CBD” (MIN22.392 Part 4) by saying:

“A review of BOCSAR data does not support investment in CCTV or other security infrastructure in Council owned carparks. Matters of community safety in the Shoalhaven, including in Council owned carparks servicing the Nowra CBD will continue to be monitored through the Shoalhaven Safety Liaison Meeting. The rate of damage to property to retail/wholesale and carpark premises is comparatively low in the suburbs of Nowra and Bomaderry, indicating that most reported offences are taking place outside of Council owned carparks servicing the Nowra CBD.

Available data calls for consideration of classifications of offences other than malicious damage, particularly those offences occurring in the residential space. A whole of community approach to community safety and crime prevention would be more successful in improving community safety in Nowra and Bomaderry, for example through strategic community partnerships and the proposed Shoalhaven Community Safety Plan.”

CL22.353 addressed “5. Instructs the CEO to include information about potential funding options open to Council from the state and federal governments to achieve the objectives outlined in point 4” (MIN22.392 Part 5) by saying:

“Council staff continue to work to identify appropriate opportunities to fund evidence-based investment in safety infrastructure and other initiatives to improve community safety for the Shoalhaven.

It is highly recommended that the decision to apply for grant funding for the investment in community safety infrastructure and measures in the Shoalhaven be guided by the recommendations formed in the proposed Shoalhaven Community Safety Plan.

Currently an application has been lodged under the Building Better Regions Fund – Community Investments Stream Grant Funding Application for a Shoalhaven Community Safety Plan. The outcome is pending.”

An important recommendation in CL22.353 was that a key step for improving community safety was to develop a strategic approach for community safety action through the development of a Community Safety Plan. As a result of receiving CL22.353, on 8 August 2022, Council resolved to “Progress the work within this report through the establishment and development of the Shoalhaven City Council Community Safety Plan” (MIN22.527 Part 2).

An update on the funding of the Shoalhaven Community Safety Plan is provided in Part 6 of this report.

Part 6 – That Council directs the CEO in light of additional and escalating vandalism to review options available to council to expedite the installation of CCTV cameras as requested in point 4 of the original motion.

The measures recommended as of 8 August 2022 were provided in CL22.353, as addressed in Part 5 of this report. CL22.353 noted that “A review of BOCSAR data does not support investment in CCTV or other security infrastructure in Council owned carparks”. After receiving CL22.353, Council resolved to “Progress the work within this report through the establishment and development of the Shoalhaven City Council Community Safety Plan” (MIN22.527 Part 2).

CL22.353 noted that a grant application had been lodged to fund the development of the Shoalhaven Community Safety Plan and that the outcome was pending. The current status of the Community Safety Plan is as follows:

· There is no allocated budget for updating the Shoalhaven Crime Prevention Plan 2018-2023, which expires in 2023. To achieve the Crime Prevention Plan review without a budget allocated, desktop research would be used to update the existing plan. A Shoalhaven Community Safety Plan is proposed to replace the Crime Prevention Plan by broadening the scope of actions beyond the focus on retail theft and domestic violence, to better reflect current community safety needs in the Shoalhaven. The proposed Community Safety Plan would have a strong focus on improving community understanding and engagement with collaboratively building community safety, empowering local residents and businesses to play a positive role in contributing to community safety in partnership with other stakeholders.

· In February 2022, a grant application for $40,000 to develop a Community Safety Plan was submitted to Building Better Regions Fund for Round 6 Community Investments stream, and $40,000 Council co-contribution was secured (dependant on receipt of grant funds). In October 2022, Council was advised that Building Better Regions Fund had been discontinued with no further funding available, meaning our application would not be proceeding. Despite ongoing investigations, liaising with the Grants Officer, no alternative grant funding opportunity has been identified. Without grant funding, the $40,000 co-contribution is not available.

· In January 2023, an $80,000 operational budget bid was submitted to fund the Community Safety Plan development. In May 2023, officers were notified the bid was not able to be funded in the draft 2023/24 budget.

· In February 2023, Community Connections approached the Economic Development Team regarding the potential for the Community Safety Plan development to be part of an Economic Development project due to the economic outcomes expected from improved community safety. Expressions of interest were open until 23 May 2023 for the ‘Growing Regional Economies Fund’ for projects over $2M that aim to accelerate economic development and prosperity in regional NSW. The Senior Economic Development Officer agreed the project could align with an Economic Development project, however, there were no current opportunities for a joint project. It was also noted that funding could not be used for work that is business-as-usual, such as reviewing the Crime Prevention Plan.

· In April 2023, Community Connections met with the Nowra CBD Place Manager seeking their interest and capacity to be involved with a community safety audit of the Nowra CBD, as preliminary work for a Community Safety Plan. As financial contribution towards the safety audit would need to be voted on by the Nowra CBD Revitalisation Committee, the Place Manager intended to seek the Committee’s support. A committee meeting is scheduled for 20 June 2023.

Information on the cost and funding available for CCTV is addressed in Part 7 of this report.

Part 7 – That Council, in the interim, directs the CEO to urgently investigate and report back on immediate steps Council can take including the possibility of council employing a security guard on a 3-month contract to patrol the carparks in and around the Nowra CBD.

Steps that Council can undertake include:

1. Secure or allocate funding to undertake short-term safety initiatives:

The cost of this will vary depending on the specifics decided. Short-term safety initiatives could include skills-building programs to raise community awareness or provision of a security presence in high-risk areas.

Indicative cost of providing security patrols in Nowra CBD carparks for 3 months:

Considering existing provision, Ranger Services continue to provide patrols of Nowra CBD carparks during business hours as part of daily parking enforcement duties, with this presence also aiming to work as a deterrent to illegal behaviour. Noting the concerns raised by this Notice of Motion, Ranger Services will endeavour to provide additional patrols focused on preserving public amenities in Nowra CBD carparks. As these patrols will be within Council business hours and limited by available staff resources, Ranger Services will continue to use a collaborative approach with police and consider available data about crime trends. Ranger Services has applied for grant funding for a project that would include mobile CCTV equipment to support their work, with the outcome expected to be announced in June 2023.

The cost of additional security patrols would vary depending on the number of patrols or hours identified. Indicative pricing from 2 local security firms has been used to provide the following costings. Over a 3-month period (92 nights / days):

· Constant patrolling of the 8 carparks outside of business hours (5pm-9am) is estimated to cost approximately $140,000 plus GST.

· 4 patrols per night in each of the 8 carparks is estimated to cost approximately $38,000 plus GST.

· Since Part 4 of this report notes that 88.9% of reported incidents of malicious damage to property in 2022 in Nowra carparks occurred during the day, 4 daytime patrols per day in each of the 8 carparks is estimated to cost approximately $59,000 including GST.

Considerations for implementation:

An alternative community safety initiative that could be delivered, particularly if crime incidents may be under-reported, is a campaign working with the South Coast Police District to improve crime reporting and community engagement with police. The costs to Council to deliver this would be staff time, campaign materials and promotion on media platforms. No funding or staff resources are currently allocated for these activities.

Provision of any initiatives, whether community awareness programs or contracting security services, would ideally be guided by a current understanding of community safety needs in the Shoalhaven and form part of a strategic approach to community safety, both of which would be outputs of a Community Safety Plan.

Funding available to undertake short-term safety initiatives:

· There is $6,000 available annually to deliver programs identified in the Shoalhaven Crime Prevention Plan 2018-2023, which has a focus on domestic violence and theft from retail. Identified programs that could support short-term safety initiatives are: safety audit training to address shoplifting, the community safety booklet, partnership activities and events including White Ribbon Day and Neighbour Day.

· Whilst up to $1M was available through ‘Safer Cities: Her Way’ grants to deliver short-term demonstration projects to make public spaces feel safer for women, girls and gender diverse people, Shoalhaven was not an eligible pilot Council.

· ‘Veolia Mulwaree Trust Grants’ are for co-funded projects over $1,000 that bring ongoing benefit to a broad section of the community. Whilst projects in the Shoalhaven LGA are eligible, projects must demonstrate sustainability and increased organisational capacity.

· Crime prevention grants are provided by NSW Department of Communities and Justice to support the implementation of actions and activities within a crime prevention strategy that they have endorsed. The grants are non-recurrent, and applications are by invitation only. Information on grant amounts is not provided by Department of Communities and Justice. A Community Safety Plan designed to encompass an updated Shoalhaven Crime Prevention Plan would enable Council to seek endorsement and funding from Department of Communities and Justice.

2. Secure or allocate funding to implement changes to the built environment:

The cost of this will vary depending on the specifics decided. Changes to the built environment includes re-designing of spaces, landscape maintenance changes, and installation of safety infrastructure such as improved lighting or technological surveillance.

Indicative cost of installing CCTV in Nowra CBD carparks:

As this would be delivered to address individual site-specific needs of size and configuration, the cost varies depending on the number of cameras required for each site. For example:

· A smaller carpark is estimated to cost approximately $110,000 plus GST, whilst a larger carpark could cost $200,000 plus GST. For 8 carparks in Nowra CBD, the cost of installing the CCTV equipment is expected to exceed $1.2M.

· The installed CCTV equipment would require allocation of resources for monitoring.

· CCTV equipment has an expected lifespan of 5-10years, so a budget would also need to be allocated for asset maintenance and renewal.

· Information Services is currently investigating opportunities to procure CCTV provision as a service, where the supplier is responsible for equipment installation and maintenance, no pricing information is available at this time.

· The process chart in Council’s procedure for Establishment of CCTV in Council Facilities (PRD17/2) outlines that community consultation will be undertaken three times during the process: to establish the need for CCTV, to give feedback on the planned design, and to give feedback after the trial period.

· The Privacy and Personal Information Protection Act 1998 requires signage to be erected informing the public where CCTV cameras are installed.

Considerations for implementation:

Implementing changes to the built environment, whether landscape maintenance programs or installation of CCTV, would ideally be guided by a current understanding of community safety needs in the Shoalhaven and form part of a strategic approach to community safety, both of which would be outputs of a Community Safety Plan.

· At the Shoalhaven Safety Liaison Committee meeting on 17 May 2023, a request was received from South Coast Police District to have a live feed of Council’s CCTV in public places made available to assist with crime prevention, in accordance with the relevant legislative requirements. These opportunities are being investigated by Council officers.

Funding available to implement changes to the built environment:

· There is $6,000 available annually to deliver programs identified in the Shoalhaven Crime Prevention Plan 2018-2023, which has a focus on domestic violence and theft from retail. Identified programs that could support implementation of changes to the built environment are: CCTV to address shoplifting, safety audit training to address shoplifting.

· Whilst up to $5,000 to install CCTV systems was available through the ‘Community and Small Business CCTV Fund’, neither Shoalhaven LGA nor local government was eligible.

· Registrations of interest were open until 21 April 2023 for the ‘Business Improvement District Pilot Program’ for business-led partnerships to support local economies and improve town centres.

· Crime prevention grants are provided by NSW Department of Communities and Justice to support the implementation of actions and activities within in a crime prevention strategy they have endorsed. The grants are non-recurrent, and applications are by invitation only. Information on grant amounts is not provided by Department of Communities and Justice. A Community Safety Plan designed to encompass an updated Shoalhaven Crime Prevention Plan would enable council to seek endorsement and funding from Department of Communities and Justice.

3. Allocate funding for developing a strategic approach to community safety and crime prevention.

On 8 August 2022, after receiving CL22.353, Council resolved to “Progress the work within this report through the establishment and development of the Shoalhaven City Council Community Safety Plan” (MIN22.527 Part 2).

Estimated cost of developing the Shoalhaven Community Safety Plan:

The cost of developing the proposed Shoalhaven Community Safety Plan, using the intended approach, is estimated at $80,000 plus GST. This expected cost could be confirmed by going to market for quotations.

Considerations for implementation:

There is no allocated budget for updating the Shoalhaven Crime Prevention Plan 2018-2023, which expires in 2023. To achieve the Crime Prevention Plan review without a budget allocated, desktop research would be used to update the existing plan. There would be no scope for community engagement.

The intended approach to the proposed Community Safety Plan, to replace the Crime Prevention Plan, has a strong focus on community engagement. This aims to use the process of developing the Community Safety Plan to improve community understanding and engagement with the process of collaboratively building community safety, empowering local residents and businesses to play a positive role in contributing to community safety in partnership with other stakeholders.

The long-term objective is to improve the community's ability to use public spaces to live active lifestyles, connect socially and get around locally. With increased social and economic activity in town centres, the Shoalhaven's regional towns and villages would be more attractive and thriving places to live, visit and spend time. The project would include development of a local profile, including community safety audits of our CBD’s, and extensive engagement to reach residents, visitors, businesses, service providers and community groups.

A current Crime Prevention Plan, including as part of the proposed Community Safety Plan, would support council to access grant funding to deliver priorities identified in the plan. Part 4 of the Children (Protection and Parental Responsibility) Act 1997 provides for NSW councils to prepare and adopt local crime prevention plans, for the Attorney General to approve an adopted plan as a Safer Community Compact, and for the Attorney General to provide financial assistance (available via Department of Communities and Justice’s NSW crime prevention grants) to undertake initiatives from the approved Compact.

Funding available to develop the Shoalhaven Community Safety Plan:

· As outlined in Part 5 of this report, there is no allocated budget for updating the Shoalhaven Crime Prevention Plan 2018-2023, which expires in 2023. No funding is currently allocated for developing the Community Safety Plan.

· Ongoing investigation has failed to identify any funding opportunities suitable for funding the review of the Shoalhaven Crime Prevention Plan 2018-2023 or the development of the proposed Shoalhaven Community Safety Plan. For example, the ‘Veolia Mulwaree Trust Grants’ are for co-funded projects over $1,000 that bring ongoing benefit to a broad section of the community, with demonstrated sustainability and increased organisational capacity. Whilst projects in the Shoalhaven LGA are eligible, it is unsuitable for the main expenses of developing a Community Safety Plan since costs related to studies, consulting fees, catering and events are not funded.

· On 8 August 2022, after receiving CL22.353, Council resolved to “Progress the work within this report through the establishment and development of the Shoalhaven City Council Community Safety Plan” (MIN22.527 Part 2). There is no way to progress this resolution as it is funding contingent.

Community Engagement

Community engagement has not been undertaken to compile this information. The Notice of Motion that this report responds to was considered in the quarterly Safety Liaison Meetings and a copy of this draft report was provided to South Coast Police District for comment.

Community engagement for short-term safety initiatives, if delivered, will depend on the specific initiatives. Community awareness campaigns would engage the community, while security patrols could be delivered without community engagement.

Community engagement for built environment changes, if delivered, will depend on the specific changes delivered. Good practice in place-improvement projects, such as space re-design or installation of lighting, includes community engagement. Changes to landscape maintenance could be undertaken without community engagement. Installing CCTV in an existing public place requires community consultation to be undertaken three times during the process, in accordance with council’s procedure for Establishment of CCTV in Council Facilities (PRD17/2).

To achieve the review of the Shoalhaven Crime Prevention Plan 2018-2023 without a budget allocated, desktop research would be used to update the existing plan. There would not be scope to include community engagement.

The intended approach to the proposed Community Safety Plan, if developed, has a strong focus on community engagement. This strong focus on community engagement is needed as the process of developing the Community Safety Plan intends to work to improve community understanding and engagement with the process of collaboratively building community safety, empowering local residents and businesses to play a positive role in contributing to community safety in partnership with other stakeholders.

Policy Implications

Council’s Shoalhaven Crime Prevention Plan 2018-2023 needs to be reviewed by the end of the Calendar Year 2023. The Crime Prevention Plan focuses only on retail theft and domestic violence. To achieve the Crime Prevention Plan review without a budget allocated, desktop research would be used to update the existing plan. If the proposed Shoalhaven Community Safety Plan were developed, it would replace the Crime Prevention Plan by broadening the scope of actions beyond the focus on retail theft and domestic violence, to better reflect current community safety needs in the Shoalhaven.

If the proposed Shoalhaven Community Safety Plan were developed, it would provide strategic direction to initiatives undertaken by council to build community safety in the Shoalhaven. Having a Community Safety Plan would support Council to make decisions about business and service planning to improve community safety. A Community Safety Plan would inform the development of future policies and supported informed consideration of community safety outcomes.

The intended approach for the proposed Community Safety Plan would support Council and the community to work together strategically to improve community safety. With a strong focus on improving community understanding and engagement with collaboratively building community safety, it aims to engage and empower local residents and businesses to play a positive role in contributing to community safety in partnership with other stakeholders.

Financial Implications

No funding is currently allocated to deliver any of the options outlined in Part 7 for improving community safety. Delivery of any of these options would require funding to be secured or allocated. If Council has an appetite to bring this work forward, it could consider adding to the recommendations to identify the priority amongst these currently unfunded projects if funding becomes available in a Quarterly Budget Review in 2023/24.

A current Crime Prevention Plan (including where this was part of a Community Safety Plan) would enable Council, after endorsement by the NSW Department of Communities and Justice, to apply for a crime prevention grant to undertake initiatives from the plan. The grants are non-recurrent, and applications are by invitation.

Risk Implications

There are reputational risks if Council’s work doesn’t meet community expectations for community safety improvement. There are community safety risks to residents and visitors if Nowra and the Shoalhaven are unsafe or perceived to be unsafe.

Section 8 of the Privacy and Personal Information Protection Act 1998 requires that personal information collected must be collected for a lawful purpose that is directly related to a function or activity of the agency. If the Shoalhaven Crime Prevention Plan 2018-2023 expires and is not replaced, council operation of CCTV cameras will no longer be part of implementing a crime prevention plan, and it will be more challenging for Council to demonstrate that community safety is a key function of the organisation.

Ordinary Meeting – Monday 26 June 2023

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CL23.194 Delivery Program Operational Plan, Budget 2023/24 - Exhibition Outcomes

HPERM Ref: D23/211326

Department: Corporate Performance & Reporting

Approver: Stephen Dunshea, Chief Executive Officer

Attachments: 1. Final Draft DPOP 2023-24 - Post Exhibition (under separate cover) ⇨

2. Final Draft Fees and Charges 2023-24 - Part 1 - post exhibition (under separate cover) ⇨

3. Final Draft Fees and Charges 2023-24 - Part 2 - post exhibition (under separate cover) ⇨

4. Draft 2023-24 - Capital Works Program adjustments - post exhibition (under separate cover) ⇨

5. Copy of Full Submissions - Exhibition Draft DPOP and Budget 2023-24 (councillors information folder) ⇨

Reason for Report

The purpose of this report is to seek Council’s adoption of the 2023/24 Delivery Program and Operational Plan, Budget and Fees & Charges.

The report provides a summary and comments related to the outcomes of the public exhibition process undertaken from 17 May to 14 June 2023.

Recommendation

That having considered the submissions received as part of the exhibition process for the Draft Delivery Program and Operational Plan 2023/24 including Budget, Capital Works Program and Fees and Charges, Council:

1. Adopt the 2023/24 Delivery Program and Operational Plan and Budget inclusive of the following changes:

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

b. Council commits to reinstate funding for the landslide impacted roads located in Upper Kangaroo Valley once access to these roads is re-established - expected early 2024 (refer to submission ref# D11)

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

2. Adopt the 2023/24 Fees and Charges Part 1 and Part 2 with the following changes:

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

b. Remove Library fee - 3D Printing - Site Visit (not operationally viable as a service)

c. Updated Maximum administration fee for processing payment refunds, dishonoured cheques and direct debit rejections from $27.50 to $30.00 due to increased costs from our supplier.

d. Updated Memorial Gardens and Cemeteries Fees to include the full list of services available for each Cemetery.

3. Resolve to make the following rates and charges in accordance with Section 535 of the Local Government Act 1993 inclusive of a 4.60% rate increase:

a. Make an Ordinary Rate, consisting of an ad valorem rate of 0.09454c for each dollar of rateable land value in addition to a base amount of seven hundred and twenty-nine dollars ($729.00) per rateable assessment, under Section 537 of the Local Government Act 1993, on all rateable land categorised as “Residential”, in accordance with Section 516, for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(1), this rate be named “RESIDENTIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of seven hundred and twenty-nine dollars ($729.00) per rateable assessment for the “RESIDENTIAL” category will not produce more than 50% of the total amount payable by the levying of the “RESIDENTIAL” rate in accordance with Section 537(b) [base amount percentage is 49.96%].

b. Make an Ordinary Rate, consisting of an ad valorem rate of 0.09454c for each dollar of rateable land value in addition to a base amount of forty-eight dollars ($48.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land which is zoned so as not to permit any building (i.e.; Small Lot Rural Subdivisions) and categorised as “Residential”, in accordance with Section 516, sub category “NON-URBAN”, in accordance with Section 529(2)(b), for the period 1 July 2023 to 30 June 2024, and in accordance with Section 543(1), this rate be named “RESIDENTIAL NON-URBAN”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of forty-eight dollars ($48.00) per rateable assessment for the “RESIDENTIAL NON-URBAN” category will not produce more than 50% of the total amount payable by the levying of the “RESIDENTIAL NON-URBAN” rate in accordance with Section 537(b) [base amount percentage is 37.90%]

c. Make an Ordinary Rate, consisting of an ad valorem rate of 0.19075c for each dollar of rateable land value, in accordance with Section 518 of the Local Government Act 1993: “Land is to be categorised as ‘business’ if it cannot be categorised as farmland, residential or mining”. Excepting all rateable land in the subcategories of Commercial/Industrial, Nowra, and Major Retail Centres, an ordinary rate be now made for the period of 1 July 2023 to 30 June 2024 and, in accordance with Section 543(1), this rate be named “BUSINESS”.

d. Make an Ordinary Rate, consisting of an ad valorem rate of 0.49358c for each dollar of rateable land value in addition to a base amount of seven hundred and twenty-nine dollars ($729.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land determined to be a centre of activity and categorised as “Business”, in accordance with Section 518, sub-category “NOWRA”, in accordance with Section 529(2)(d), for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(1), this rate be named “BUSINESS - NOWRA”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of seven hundred and twenty-nine dollars ($729.00) per rateable assessment for the “BUSINESS - NOWRA” subcategory will not produce more than 50% of the total amount payable by the levying of the “BUSINESS - NOWRA” rate in accordance with Section 537(b) [base amount percentage is 16.79%].

e. Make an Ordinary Rate, consisting of an ad valorem rate of 0.16551c for each dollar of rateable land value in addition to a base amount of seven hundred and twenty-nine dollars ($729.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land used or zoned for professional/commercial trade or industrial purposes, determined to be a centre of activity and categorised as “Business”, in accordance with Section 518, sub category “COMMERCIAL/INDUSTRIAL”, in accordance with Section 529(2)(d), for the period of 1 July 2023 to 30 June 2024 and, in accordance with Section 543(1), this rate be named “BUSINESS - COMMERCIAL/INDUSTRIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of seven hundred and twenty-nine dollars ($729.00) per rateable assessment for the “BUSINESS – COMMERCIAL/INDUSTRIAL” category will not produce more than 50% of the total amount payable by the levying of the “BUSINESS – COMMERCIAL/INDUSTRIAL” rate in accordance with Section 537(b) [base amount percentage is 30.86%].

f. Make an Ordinary Rate, consisting of an ad valorem rate of 0.69800c for each dollar of rateable land value in addition to a base amount of seven hundred and twenty-nine dollars ($729.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on rateable land Lot 2 DP 874730 determined to be a major retail centre and categorised as “Business”, in accordance with Section 518, sub category “MAJOR RETAIL CENTRE - NOWRA”, in accordance with Section 529(2)(d), for the period of 1 July 2023 to 30 June 2024 and, in accordance with Section 543(1), this rate be named “BUSINESS - MAJOR RETAIL CENTRE - NOWRA”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of seven hundred and twenty-nine dollars ($729.00) per rateable assessment for the “BUSINESS – MAJOR RETAIL CENTRE - NOWRA” category will not produce more than 50% of the total amount payable by the levying of the “BUSINESS – MAJOR RETAIL CENTRE - NOWRA” rate in accordance with Section 537(b) [base amount percentage is 0.97%].

g. Make an Ordinary Rate, consisting of an ad valorem rate of 0.33620c for each dollar of rateable land value in addition to a base amount of seven hundred and twenty-nine dollars ($729.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on rateable land Lot 1 DP 1182358 determined to be a major retail centre and categorised as “Business”, in accordance with Section 518, sub category “MAJOR RETAIL CENTRE - VINCENTIA”, in accordance with Section 529(2)(d), for the period of 1 July 2023 to 30 June 2024 and, in accordance with Section 543(1), this rate be named “BUSINESS - MAJOR RETAIL CENTRE - VINCENTIA”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of seven hundred and twenty-nine dollars ($729.00) per rateable assessment for the “BUSINESS – MAJOR RETAIL CENTRE - VINCENTIA” category will not produce more than 50% of the total amount payable by the levying of the “BUSINESS – MAJOR RETAIL CENTRE - VINCENTIA” rate in accordance with Section 537(b) [base amount percentage is 1.85%]

h. Make an Ordinary Rate, consisting of an ad valorem rate of 0.07122c for each dollar of rateable land value in addition to a base amount of nine hundred and eighty-four dollars ($984.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land categorised as “Farmland”, in accordance with Section 515, for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(1), this rate be named “FARMLAND”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of nine hundred and eighty-four dollars ($984.00) per rateable assessment for the “FARMLAND” category will not produce more than 50% of the total amount payable by the levying of the “FARMLAND” rate in accordance with Section 537 (b) [base amount percentage is 32.99%].

i. Make an Ordinary Rate, consisting of an ad valorem rate of 0.03783c for each dollar of rateable land value in addition to a base amount of one thousand and ninety-seven dollars ($1,097.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land categorised as “Farmland”, in accordance with Section 515, sub category “DAIRY FARMERS”, in accordance with Section 529(2)(a), for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(1), this rate be named “FARMLAND - DAIRY FARMERS”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of one thousand and ninety-seven dollars ($1,097.00) per rateable assessment for the “FARMLAND – DAIRY FARMERS” category will not produce more than 50% of the total amount payable by the levying of the “FARMLAND – DAIRY FARMERS” rate in accordance with Section 537(b) [base amount percentage is 50.00%].

j. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.38260c for each dollar of rateable land value in addition to a base amount of two thousand six hundred and seventy-four dollars ($2,674.00), for the cost of road upgrades required to enable property owners to develop their allotments in the Verons Estate. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties with building entitlement within the Verons Estate which, in the opinion of Council, derive special benefit and are subject to this rate, in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(2), this rate be named “VERONS ROAD UPGRADE SPECIAL RATE – DWELLING POTENTIAL”.

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

k. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.06961c for each dollar of rateable land value in addition to a base amount of two hundred and ninety-seven dollars ($297.00), for the cost of the road upgrades in the Verons Estate. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties without building entitlement within the Verons Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(2), this rate be named “VERONS ROAD UPGRADE SPECIAL RATE – NO DWELLING POTENTIAL”.

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

l. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.06631c for each dollar of rateable land value in addition to a base amount of one hundred and twenty-one dollars ($121.00) for the cost associated with the Nebraska road construction project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Nebraska Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(2), this rate be named “NEBRASKA ROAD CONSTRUCTION SPECIAL RATE”.

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

m. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.20652c for each dollar of rateable land value in addition to a base amount of one thousand one hundred and thirty-six dollars ($1,136.00) for the cost associated with the Jerberra road infrastructure project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Jerberra Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(2), this rate be named “JERBERRA ROAD INFRASTRUCTURE SPECIAL RATE”.

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

n. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.06964c for each dollar of rateable land value in addition to a base amount of three hundred and eighty-three dollars ($383.00) per rateable assessment for the cost associated with the Jerberra electricity infrastructure project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Jerberra Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(2), this rate be named “JERBERRA ELECTRICITY INFRASTRUCTURE SPECIAL RATE”.

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

o. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.36653c for each dollar of rateable land value in addition to a base amount of two hundred and fifty-seven dollars ($257.00) per rateable assessment for the cost associated with the Jerberra Road E2 infrastructure project. In accordance with Section 495(1) the special rate is to be levied only on those rateable properties within the Jerberra Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(2), this rate be named “JERBERRA ROAD E2 SPECIAL RATE”.

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

p. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.02082c for each dollar of rateable land value to meet the costs of business promotions for the Sussex Inlet area and surrounds, in accordance with Section 495(1), which in the opinion of Council is of special benefit to the rateable assessments subject to the rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2023 to 30 June 2024 and, in accordance with Section 543(2), this rate be named “SUSSEX AREA SPECIAL RATE”.

q. Make an Annual Charge for Water Usage and Water Availability, in accordance with Section 502 and 552(1) (a) and (b), for the period 1 July 2023 to 30 June 2024, comprising a Water Usage Charge of $2.00 per kilolitre for all residential, commercial and Community Service Obligation categorised properties and a Water Availability Charge based on water meter size:

Size of Water Meter Service Connection	Charge 2023/24
20 mm	$88
25 mm	$147
32mm	$237
40mm	$372
50mm	$584
80mm	$1,488
100mm	$2,327
150mm	$5,230
200mm	$9,301

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

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

r. Make an Annual Charge for Sewer Usage and Sewer Availability, in accordance with Section 502 and 552(3) (a) and (b), for the period 1 July 2023 to 30 June 2024, comprising a Sewer Usage Charge of $2.10 per kilolitre for all residential, commercial and Community Service Obligation categorised properties and a Sewer Availability Charge based on water meter size:

Size of Water Meter Service Connection	Charge 2023/24
20 mm	$956
25 mm	$1,332
32mm	$2,035
40mm	$2,699
50mm	$3,817
80mm	$7,874
100mm	$11,289
150mm	$19,453
200mm	$30,181

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

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

s. Make an Annual Charge for the availability of a Domestic Waste Management Service, pursuant to Sections 496 and 501 of the Local Government Act 1993, for the period 1 July 2023 to 30 June 2024, on all rateable properties categorised as residential for rating purposes and comprising of a building which is deemed to be a dwelling and located within the defined (urban) waste collection area.

The amount for the standard residential domestic waste management service be $468 for one 120 litre mobile garbage bin (MGB) for landfill waste and one 240 litre MGB for recycling. The landfill bin is collected weekly and recycling bin is collected fortnightly. For a higher annual charge of $810, the 120-litre landfill bin may be substituted for a 240-litre landfill bin. For a lower annual charge of $356, the 120-litre landfill bin may be substituted for an 80-litre landfill bin.

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

t. Make an Annual Charge for a Rural Domestic Waste Collection Service, pursuant to Sections 496 and 501 of the Local Government Act 1993, for the period 1 July 2023 to 30 June 2024, on rateable properties comprising of a building which is deemed to be a dwelling and located outside of the defined (urban) waste collection area and opt for the rural domestic waste collection service.

The amount for the rural domestic waste collection service be $468 for one 120 litre mobile garbage bin (MGB) for landfill waste and one 240 litre MGB for recycling. The landfill bin is collected weekly, and the recycling is collected fortnightly. For a higher annual charge of $810, the 120-litre landfill bin may be substituted for a 240-litre landfill bin. For a lower annual charge of $356, the 120-litre landfill bin may be substituted for an 80-litre landfill bin.

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

u. Make an Annual Charge, pursuant to Section 496 of the Local Government Act 1993, for the period 1 July 2023 to 30 June 2024, of $101 per assessment for administration and new works associated with future provision of domestic waste management services. The charge to be applied to any domestic assessments which have any boundary adjacent to a road receiving an urban domestic waste management service and

i. Does not have a dwelling situated thereon, or

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

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

v. Make an Annual Charge for Stormwater Management Services, pursuant to Section 496A of the Local Government Act 1993, for the period 1 July 2023 to 30 June 2024, of $25.00 per eligible residential or business rate assessment and $12.50 per strata assessment. In accordance with Section 543(3), the charge be named “STORMWATER MANAGEMENT SERVICE CHARGE”.

w. Make an Interest Rate of 9.0%, pursuant to Section 566(3) of the Local Government Act 1993, for the period 1 July 2023 to 30 June 2024 (inclusive), which does not exceed the maximum interest rate chargeable on overdue rates and charges, accruing daily on a simple interest basis.

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

Options

1. To endorse the 2023/24 Delivery Program, Operational Plan and Budget and the proposed recommendations for the making of ordinary and special rates and annual charges.

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

2. Not endorse the recommendations and resolve to make changes to the 2023/24 Delivery Program, Operational Plan and Budget or to make rates and annual charges using different values.

Implications: Council would need to provide direction to staff in relation to necessary budget adjustments to accommodate changes to the 2023/24 Delivery Program, Operational Plan and Budget or the recommended alternate rates and charges.

Background

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

A report was provided to Council at the Ordinary Meeting on 15 May 2023 to seek to place the 2023/24 Draft Delivery Program, Budget and Fees and Charges on exhibition. The suite of documents was endorsed for public exhibition with the following resolution:

That Council:

1. Endorse the Draft 2023/24 Delivery Program and Operational Plan, Draft Budget, Draft Fees and Charges for the purpose of placing on public exhibition for a period of 28 days.

2. Maintain the 2022/23 rating structure, comprising both base and ad valorem amounts noting that the use of a base amount results in bringing the higher and lower values closer together and in effect spreads the burden across the board to all ratepayers – noting also that this is a commonly used rating structure that is considered to provide the fairest and most equitable distribution of the rate levy across the LGA.

3. Note the addition of two proposed new rating categories; Business - Major Retail Centre – Nowra and Business - Major Retail Centre – Vincentia into the proposed 2023/24 Rating Structure order to reduce the impact of varying 1 July 2022 valuation increases in the respective CBDs.

4. In accordance with Section 566(3) of the Local Government Act, 1993, endorse the rate of interest payable on overdue rates and charges for the period 1 July 2023 to 30 June 2024 (inclusive) to be 9% per annum which is the Office of Local Government recommended maximum for 2023/24 financial year.

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

6. Approve the Minister’s allowable limit of a 4.6% rate peg increase in 2023/24 to the notional yield as permitted by Section 511 of the Local Government Act, 1993.

7. Resolve to comprehensively review at the earliest possible time the Long Term Financial Plan and supporting 10-year Capital Works Program by Quarter 1 of 2023/24.

8. Re-exhibit Council’s current resourcing strategy document to support the public exhibition of the DPOP, noting that the review of the 10 year capital works listing is a key component of the comprehensive review of the long term financial plan as referenced in part 7 above.

9. Receive a report on feedback from the community on the Draft 2023/24 Delivery Program Operational Plan and Budget following the public exhibition period.

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

Public Exhibition

In accordance with the resolution of Council, the 2023/24 Draft Delivery Program and Operational Plan (DPOP), Budget and Fees and Charges were placed on public exhibition from 17 May until 14 June 2023. As per Council resolution, Council’s current Resourcing Strategy was also exhibited on Council’s Get Involved page.

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

Communication & Engagement Activities included:

· Pop-up engagement events to raise awareness (4 events, 85 promotional flyers)

o Nowra Fresh Food Markets - 25 May

o Jervis Bay Maritime Museum Morning Markets - 3 June

o Milton Village Showground Markets - 3 June

o Berry Bowling Club Markets - 10 June

· Email invitations to provide feedback sent to:

o Community Consultative Bodies (CCB) Executive Committee members (24 groups)

o Council Advisory Committee members (211 individuals)

· Overview presentation provided at CCB Executive Meeting 8 June

· “Get Involved” website including online submissions (564 visits)

· Social Media posts and campaigns

· 1 Media release and 3 media mentions/articles

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

· Promotional flyers, copies of documents at Council Admin and Library facilities

The overall purpose of the community engagement activities were to raise awareness that the draft documents were on exhibition and to encourage submissions.

Figure 1 below shows the set up at one of the pop-up engagement events and poster which highlighted examples of proposed capital works program.

Figure 1 – Example of a Council Pop-up - Berry Bowling Club Markets 10 June

A picture containing outdoor, canopy, shade, tree

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A sign with a map on it

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Summary of Submissions

A total of 45 individual submissions were received during the exhibition period on the DPOP, Budget or Capital Works program. Within these submissions there were several items, requests and suggestions.

Many of the individual submissions also included requests for new projects or items for funding. Some submissions contained multiple issues, items or requests. A summary of each submission is included in Table 1 and are accompanied with a staff comment, recommendation or proposed action in response.

Full copies of each submission have also been provided in the Councillor Information Folder (Attachment 5) – the Reference number (Ref #) cross references the original submission. All submitters will receive a detailed email response following adoption of the final documents with additional staff comments alongside the summary provided in Table 1. The table also indicates if the submission was received from a Community Consultative Body (CCB).

Table 1 - Submission items and recommended action

Ref #	Submission From	Subject/Comment/Issue	Staff comment / Recommended Action Required
D01	Community/ Resident	Land Valuations and rates Road renewal/upgrade plans for Lake View Drive, Burrill Lake in current budget or near future	Council does not assess land valuations. This is undertaken by the Valuer General. More information can be found on Council's Rates FAQs webpage. Lake View Drive, Burrill Lake is not currently listed for any upgrade in the 10 year capital plan. The road is exhibiting signs of localised potholing which would be subject to localised risk management intervention. Given the current priorities and limited funding opportunities it is not considered a priority.
D02	Milton Ulladulla Croquet Club	Funding for Milton Ulladulla Croquet Club Facilities at the Ulladulla Sports Park	A budget bid prepared by staff (to fund DA-approved clubhouse facilities for the Milton Ulladulla Croquet Club at Ulladulla Sports Park) was considered as part of the 2023/24 Capital Works Program. No funding was allocated as part of the review process. City Lifestyles staff to continue to liaise with the Milton Ulladulla Croquet Club to identify external funding sources and to support project planning and delivery once funding is identified.
D03	Community/ Resident	Opportunities for Tomerong Village (in priority order) 1. Connection to town sewer service 2. Pathways network and connection to Jerberra Estate 3. Slow down signage at the entry point to Tomerong 4. Better play equipment and pump track for children 5. Kerb and guttering for the older parts and undeveloped areas of Tomerong 6. Clean out old dish storm water drains 7. Properly maintained road verges	Full response to be provided to resident. In summary: 1. Tomerong Sewerage Scheme is included in Council planning for commencement in 2026/27 and completion in 2028/29 (as per MIN21.464). 2. Discussed at the Tomerong Community Forum meeting 10/5/23, in response to MIN23.141, a report is currently being prepared for Council. Further improvements to the pathway planning, as part of a suite of other road safety improvements, are also still being considered by TfNSW (Princes Highway upgrade project team). 3. 6. 7. - Council understands the communities concerns regarding drainage maintenance, vegetation trimming and signage to mitigate conflict between pedestrians and vehicles. Open drain maintenance along Hawken Road is to be scoped and added into the works list to be ranked against District Wide priorities. Upgrades to the speed signage entering the village has been scoped and is being scheduled for late June/early July pending procurement, approach warning signage is also proposed, vegetation trimming around signs will be undertaken and Hawken Road has been identified as a high priority location for roadside trimming. 4. The provision of new or upgraded social infrastructure is guided by Council’s Community Infrastructure Strategic Plan (CISP). The CISP is scheduled for review in 2023/24 (Action 1.3.02.03). This presents an opportunity for Council to review and consider any need for new recreation facilities in Tomerong. 5. New kerb and gutter is essentially unfunded throughout the region with very limited opportunities to upgrade existing infrastructure where it hasn’t been provided at original development.
D04	Community/ Resident	Increase to sewer pump-out fees is unreasonable. Requests information on access to sewer connection.	Council acknowledges that the Fees and Charges relating to the Human Waste Removal Service have increased significantly. Council resolved to provide this service to customers with fees and charges set to recover the full cost of providing this service. In December 2022 Council resolved to accept the tender for the provision of this service. The tender assessment includes the substantiation of the tender prices submitted. As outlined in the tender report to Council, one complying tender was received by Council though this tender process. This service is managed by Council and is provided as one option for customers to request regular pump out services. Customers can decide to engage an alternative authorised service provider to complete their regular pump out services. Council has no plans for extension of the sewer to this property.
D05	Community/ Resident	Requests greater budget should be spent on roads and mowing verges which are obstructing views and impacting safety along roads, including examples in Berry. Requests advice on money spent on the 'Community Strategic Plan' and requests this funding should be spent on roads, waste and maintaining public assets.	Specific road maintenance locations have been reported to Council's District Engineer and will be inspected and repaired as work priorities and available resources allow. Repairs to high speed / high trafficked roads are being prioritised and maintenance of verges where safety concerns are identified are addressed in-line with identified priority of work and available resources. The Community Strategic Plan (CSP) was reviewed, updated and endorsed by Council in September 2022. The review and engagement with the community for the updated CSP was undertaken by Council staff. The cost of printing engagement materials was approximately $3,000 and expended in the 2021/22 Financial Year.
D06	Shoalhaven Bicycle User Group	Support for the proposed funding in the draft budget 2023/24 to undertake important compliance upgrades to all shared path bollards citywide.	Proposed funding for compliance works on shared user path bollards remains in the 23/24 budget to a total of $187K across the four engineering districts.
D07	Community/ Resident	Deficiencies in path network in the Worrigee area (Burradoo Crescent, Old Southern Road)	The deficiencies of paths in the Worrigee Area have been identified in a recent review of Council’s PAMP (“Pedestrian Access and Mobility Plan”) strategy, which is intended to be placed on broader public exhibition later in the year. This includes an expansion of the existing path network more broadly around Worrigee, includes more paths and also identifies multiple crossing improvements for Old Southern Road.
D08	Community/ Resident	Road Maintenance Budget allocations - query on change of allocation between 2021/22 and 2023/24	The breakdown of Council's Roads and Transport Budget is outlined within the Capital Works Program, this includes an anticipated $10M as the first tranche of the $40M funding expected to be received from the Federal Government. In regard to the roads maintenance operational budgets between 2021/22 and 2023/24, Council's overall allocation has increased by $3.98M to $14.3M (up 38% from 21/22).
D09	Conjola Stingrays Outrigger Canoe Club	Permanent storage site for Conjola Stingrays Outrigger Canoe Club	Detailed project proposal received, with appreciation. The Shoalhaven City Council Community Infrastructure Strategic Plan (CISP) will be reviewed in 2023/24 financial year (Action 1.3.02.03). Requests for community infrastructure, such as the Conjola Stingrays Outrigger Canoe Club’s request for a dedicated launching location with associated storage facilities, will be considered as part of this review. Further project planning work can be commenced, if supported by the CISP review process.
D10	Community/ Resident	Upper Kangaroo River Roads Funding	See response D11
D11 D12 D15 D16 D17 D18 D19 D20 D21 D22 D25 D26 D28 D29 D30 D31 D32 D33 D34 D35 D43	Upper Kangaroo River Progress Association Inc Community/ Residents	Upper Kangaroo River Roads Funding (Kellys, Parrishs, Scotts, Treefern, Gerringong Creek, Mackays Roads)	Under the Special Local Roads Improvement Program created with a $10M allocation in 2021/22 it was Council's intention to complete road rehabilitation works in the Upper Kangaroo Valley. Before work commenced the landslip disaster unfolded and Upper Kangaroo River Road was damaged and impassable at some locations. The works outstanding were put on hold. As these roads were still not accessible for gravel trucks and construction equipment, the 2022/23 funds were spent at other, accessible locations across the region. These roads are not specifically listed in the draft DPOP as they are dependent on natural disaster funding reimbursement, however it is Council’s intention to complete these works as promised after the major landslip works on Upper Kangaroo River Road are completed with the estimated cost of works is now set at $650,000. The $685K Safer Road Program grant-funded safety barrier upgrade program is still available and the project was carried forward at the Q3 FY22/23 budget review and is shown in the final consolidated 23/24 DPOP. RECOMMENDATION: Council commits to reinstate funding for the landslide impacted roads located in Upper Kangaroo Valley once access to these roads is re-established - expected early 2024
D13	Aqua Ladies Ulladulla	Ulladulla Leisure Centre Ladies Change Room Upgrade request	A budget bid prepared by staff (to fund the upgrade of the existing changeroom at Ulladulla Leisure Centre) was considered as part of the 2023/24 Capital Works Program prior to the draft DPOP going on public exhibition. This funding bid was considered as part of the 23/24 capital works funding review process. No funding was allocated within the draft DPOP for 2023/24 as part of this review process. The City Lifestyles team, through Shoalhaven Swim Sport Fitness, will continue to pursue internal and external funding opportunities to complete the required upgrades.
D14	Tabourie Lake Ratepayers and Residents Assn (CCB)	Request for Community Hall facility in Lake Tabourie	The Shoalhaven City Council Community Infrastructure Strategic Plan will be reviewed in 2023/24 (Action 1.3.02.03). Requests for community infrastructure, such as this request for a community hall, will be considered as part of this review.
D23	Milton Ulladulla Dog Training Club Inc	Funding for relocation of the Milton Ulladulla Dog Training Club at Milton Showground	The balance of unspent funds from line item 51 (Milton Showground Dog Club Relocation) in the 2022/23 DPOP will be carried forward to the 2023/24 financial year. It is anticipated this figure will be $60,000. These funds will be available to progress plans to relocate the Milton Ulladulla Dog Training Club’s facilities at Milton Showground. Funds may also be used as co-contribution for grant applications, to secure additional funding required to implement the planned works.
D24	Community/ Resident	Sewage pump out fees proposed, extension of sewer scheme to Tomerong Residents	See response D03, D04
D27	Hyams Beach Villagers Association (CCB)	Hyams Beach Masterplan implementation status Hyams Beach Coastal Management action queries	Full staff response will be provided directly in regard to an update on the staging of the remaining items for implementation in Stage 1 of Hyams Beach Masterplan. Hyams Beach Coastal Management - Requested budget in the 2024/25 DPOP will be utilised to investigate medium-longer term solutions for management of the Hyams Creek entrance as per Jervis Bay Coastal Management Program action for an investigation into the best way to manage the meandering creek entrance and developing a policy of best practice.
D37	Kangaroo Valley Community Consultative Body (CCB)	Allocation of Ward 1 Capital Works Budget Upper Kangaroo River Roads Funding Federal Government Grant Funding and $40M allocation	Full staff response to be provided. See response D11 regarding Upper Kangaroo River Roads Funding and D08 in regard to overall Road maintenance budgets. Of the $24M contract for the 38 major landslips currently being delivered, the majority are located in the Northern District. Works included in the new Federal Government funded $40M roads program referenced in the Budget are outlined in Council report CL23.177. The 6 nominated road projects are located in Ward 2 and it is anticipated that the first $10M will be received in 2023/24. These roads were nominated by the current Federal Member for Gilmore during the election campaign.
D38	Collingwood Beach Preservation Group (Sub-committee VRRA CCB)	Multiple queries and suggestions for works program in Vincentia. Full response will be provided directly to the CCB	See response D44
D39	AFL NSW ACT	West Street Oval Upgrade	See response D40
D40	Shoalhaven Albatross Vikings Shoalhaven Giants Junior Football Club	West Street Oval Upgrade	The Shoalhaven City Council Community Infrastructure Strategic Plan (CISP) will be reviewed in 2023/24 (Action 1.3.02.03). Requests for community infrastructure, such as the request for improved amenities, changerooms and associated infrastructure at West Street Oval, will be considered as part of this review. Further project planning work can be commenced, if supported by the CISP review.
D41	Tomerong Community Forum (CCB)	Tomerong Opportunities - Signage, lighting, Gateway & Heritage Trail, Sewer Scheme and Pathways Network	Full staff response will be provided directly as multiple queries in relation to suggested projects will require further research and consideration by staff. Summary response: - Signage and lighting, Gateway & heritage trail, Village & entrance lighting - have been forward to the Works & Services team for further investigation and consideration. - Tomerong Sewer scheme and Pathways network - See response D03
D42	Culburra Beach & Districts Chamber of Commerce	Road Maintenance Budget allocations - query on change of allocation between 2021/22 and 2023/24	See response D08
D44	Vincentia Ratepayer and Residents Association Inc. (CCB)	Multiple queries and 20 proposed modifications and suggestions for capital works program and operational budget for Vincentia. Full response will be provided directly to the CCB.	Full staff response will be provided directly as multiple queries in relation to budget allocations and projects will require further research and investigations. Suggestions for operational and capital projects have been forwarded onto relevant staff for consideration in future programs. Summary responses to date: - Frederick Street/Elizabeth Drive Pedestrian Refuge and Shared User Paths - concept design has been completed, however due to the limited general funding available, the project will be put forward for grant applications. - Bayswood Bus Shelter has been scoped and to be included as part of the operational works for the 23/24 FY - Berry St to Bayswood Shared User Path and Pedestrian refuges are projected to be completed early in 23/24 (due to weather delays). A revote of funds will occur if required.
D45	Callala Beach Progress Association (CCB)	Queries on the status of various Capital Works projects in Callala Beach: - Quay Rd – Pedestrian Shared User Path Design - BBRF – Myola Active Transport - Jervis Bay / Currambene Creek / Myola – Fishing Access Improvements. - Parkes Crescent Playground Replacement	Quay Rd – Pedestrian Shared User Path Design - Concept design will be completed in 2022/23. Detailed design still needs to be completed prior to construction but has been pushed back to outer years as grant funding was not secured for construction. Currently it is proposed to complete detailed designs in 2024/25, and construction moved with Stage 1 ($900K) planned for 2025/26 and Stage 2 ($900K) for 2026/27 subject to securing the additional grant funding. BBRF - Myola Active Transport - The budget was not sufficient to complete the scope of works and the grant was reduced to cover works already completed. General funds of $335K from 2022/23 budget have been carried forward to 2023/24 and an additional $900K from the $5M NSW Government election commitment to pathways funding has been added giving a total budget of $1.235M in 2023/24. These works are grant dependent. Jervis Bay / Currambene Creek / Myola – Fishing Access Improvements - Concept design received in December 2022 and Council are discussing with grant provider DPI on the viability of continuing to fund detailed design as construction costs exceed initial estimates. Project is dependent on adjacent car park and footpath to allow access to the training wall/facility. Connected with the Myola Active Transport project above. Parkes Cres – Recreation Playground - This playground renewal was in the published 10 year indicative capital works program (adopted in 2022/23) for the 2028/29 financial year (line 338). The updated 10 year capital program (2023-33) will be reviewed and updated in Q1 of 2023/24 as part of the Long Term Financial Plan review process.

Delivery Program Operational Plan

The following proposed amendments to Council’s Operational Plan Actions from the version placed on public exhibition. The Final Draft DPOP 2023-24 is included as Attachment 1, with the Fees and Charges included as Attachment 2 (Part 1) and Attachment 3 (Part 2). Updates to fees and charges are included in the resolution.

Table 2 – Amendments to Draft DPOP 2023/24 Action Items

DPOP Original Item #	Amendment	Rationale
1.1.02.02	Action: Work with community to improve sense of identity and belonging through the support of relationship building, inclusion and community pride Additional KPI: Number of activities supported through the Homelessness Advisory Committee and the community led plan for homelessness	KPI added to capture the considerable work undertaken by Council in support of homelessness initiatives. Note that current grant funded Homelessness Officer position ceases in March 2024.
1.1.01.06	Updated KPI of percentage of Asset Protection Zones inspected – 100% to 70%	To reflect final resourcing provided in operational budget.
2.1.01.02	Updated KPI of percentage of reportable road defects addressed within corporate timeframes in the procedure – 80% to 60%
2.1.03.02	Updated KPI of percentage of reported walking track asset defects repaired as funded for maintenance – 60% to 40%
2.2.01.01	Action: Prepare and maintain strategies and plans to support appropriate population growth or development, and environmental conservation in Shoalhaven, including finalising the detailed planning controls for the Moss Vale Road North Urban Release Area and priority review of Shoalhaven’s Planning Strategy and Policy and as part of this, include research and inclusion of character statements in the Development Control Plan. Wording amended.	Action item amended to ensure the reference to character statements is included.
2.3.03.05	Action: Implement high priority actions (0-2 years) in the certified Coastal Zone Management Plan. Remove Action.	This action has been removed from the final version as the priority items referenced are now either complete or are being incorporated into the new Coastal Management Programs for delivery.

Editorial and Formatting Changes

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

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

Considerations and Proposed Changes to 2023/24 Budget

Operational Budget

The operational budget deficit has increased by $1.9M, to $22.1M (Draft: $20.2M).

The General Fund 2023/24 budget was updated to include March QR carry-forwards of $750K for OneCouncil Implementation and $186K in Environmental Services for partially grant funded operational projects.

Income has also increased by $502K to reflect a 0.5% increase in rateable properties in 2023/24 which is not included in the Draft DPOP. This income surplus is offset by an increase of $891K in Emergency Services Levy (ESL), increased lease expense of $157K, and an additional $24K towards the public liability insurance for Community Consultative Bodies (CCBs) as resolved in MIN23.228. In addition, employee costs have reduced to reflect the final award increase of 4.5% (original budget assumption: 4.6%).

Council considered an increase of $5.5K in allocated donations to the Bomaderry Lions Club as resolved in MIN23.289. However, the 2023/24 donations budget is fully allocated (MIN23.289) with no additional funds available.

Proposed Borrowings

Additional loan of $628K is proposed to fund necessary compliance works at the Shoalhaven Entertainment Centre. No further changes to borrowings are proposed.

Capital Works Listing

It is important to note that the Draft DPOP was prepared prior to the March Quarterly Budget Review. As such, further changes were made to refine the Capital Works Program as outlined in Attachment 4.

As a result of the March Quarterly Budget Adjustments and submissions, the total Capital Works Program increased from $157M to $188M: General Fund works increased by $31M, Water by $50K and Sewer by $722K. The major increase in General Fund capital works relate to March revotes such as $4M for Materials Recovery Facility; $3.4M for Boongaree Stage 2-7; as well as $6.6M for Urban Roads projects and $5.7M for Rural Roads projects and $4M for Strategic Roads and Bridges (including $3M for Far North Collector Road).

New Grant funding was identified under Local Roads and Community Infrastructure scheme Phase 4A of $2.1M which enabled urban and rural roads projects to be brought forward to 2023/24 (originally planned for 2024/25); Additional grant funding of $5M, promised as part of the 2023 State Election, has been included in the capital works program for 2023/24 (allocated to pathway projects).

The Draft 2023/24 Capital Works Program included the delivery of $20M in projects funded by the Federal $40M Road Improvement Program. The program has been adjusted to reflect the anticipated receipt and expenditure of these funds ($10M in 2023/24; $15M 2024/25; $15M 2025/26).

Similar to this financial year, the 2023/24 budget will remain flexible and may subject to change particularly given volatility of the energy market and high inflation.

Rating Structure

In order for Council to levy rates and charges for the 2023/24 rating year, Council is required to resolve the making of all rates and annual charges, in accordance with the Local Government Act 1993 & Local Government (General) Regulations 2005.

Following publication of Council’s draft Revenue Policy, in accordance with Section 532 of the Local Government Act 1993, the rating structure was updated by re-doing the calculations on the basis of Supplementary Notices from the Valuer-General dated 27 May 2023. The revision resulted in small changes and the revised rating structure for 2023/2024 for ordinary and special rates is presented below. These changes have already been included in the DPOP documentation that has been provided with this report.

Table 3. Ordinary Rates

Sub-Category	No. of Rateable Properties	Land Value	Ad Valorem (c in $)	Base Rate Amount ($)	Total Rate Yield ($)
Ordinary Residential Rates	55,935	$43,206,407,398	0.09454	$729.00	$81,624,095
Residential Non-Urban Rates	940	$78,198,660	0.09454	$48.00	$119,049
Ordinary Farmland Rates	632	$1,773,371,000	0.07122	$984.00	$1,884,883
Farmland Rates - Dairy Farmers	147	$426,235,000	0.03783	$1,097.00	$322,504
Ordinary Business Rates	151	$4,802,100	0.19075		$9,160
Business Nowra Rates	378	$276,769,980	0.49358	$729.00	$1,641,643
Business Commercial / Industrial Rates	1,829	$1,804,941,410	0.16551	$729.00	$4,320,700
Business - Major Retail Centre - Nowra	1	$10,700,000	0.69800	$729.00	$75,415
Business - Major Retail Centre - Vincentia	1	$11,500,000	0.33620	$729.00	$39,392
	60,014	$47,592,925,548			$90,036,840

Table 4. Special Rates

Sub-Category	No. of Rateable Properties	Land Value	Ad Valorem (c in $)	Base Rate Amount ($)	Total Rate Yield ($)
Verons Road Upgrade Special Rate - Dwelling Potential (commenced 1 July 2017)	22	$15,386,000	0.38260	$2,674.00	$117,695
Verons Road Upgrade Special Rate - No Dwelling Potential (commenced 1 July 2017)	10	$4,295,000	0.06961	$297.00	$5,960
Nebraska Road Construction Special Rate	23	$4,230,400	0.06631	$121.00	$5,588
Jerberra Rd Infrastructure	103	$56,742,000	0.20652	$1,136.00	$234,194
Jerberra Electricity Infrastructure	103	$56,742,000	0.06964	$383.00	$78,966
Jerberra Road - E2	16	$1,128,500	0.36653	$257.00	$8,248
Sussex Area Special Rates	99	$86,231,270	0.02082		$17,953
Total	376	$224,755,170			$468,605

In accordance with Sections 534 and 535 of the Local Government Act 1993, Council can resolve to make rates and charges for the 2023/24 financial year.

Conclusion

The 2023/24 Draft Budget was prepared based on the principles of prudent financial management and fiscal discipline. As demonstrated in the table below, the proposed changes to the 2023/24 Draft Budget have no impact on net unrestricted cash and the final 2023/24 budget will remain balanced. This indicates that the budgeted general fund operational and capital expenditures do not exceed the general revenue and available internal and external restrictions of the Council and consequently conforms to the requirement of no cash deficit budgeting.

Draft 2023/24 Budget	2023/24 Budget ($'000)
Draft 2023/24 Budget	General Fund	Water Fund	Sewer Fund	Consol.*
Net Operating Results	25,356	-2,397	9,625	30,767
Net Surplus/(Deficit) before Capital	-20,095	-4,724	7,520	-19,116
Other Cash Adjustments
Capital Expenditure	-116,034	-17,253	-23,228	-156,515
New Borrowings	17,728	0	0	17,728
Loan Principal Repayments	-14,265	0	-6,023	-19,098
Proceeds from the disposal of assets	5,293	120	100	5,513
Receipt of Internal Loan Repayment	0	1,190	0	0
Depreciation Adjustment	59,740	14,269	16,191	90,200
Dividend Paid to General Fund		-163	-1,654	0
Net Cash Outflow	-22,182	-4,234	-4,989	-31,405
Reserve Movements
Net Transfers from Reserves	22,200	4,234	4,989	31,423
General Fund Net Cash Movement	18	0	0	18

Adjustments to 2023/24 Draft Budget Post-Exhibition:	2023/24 Budget ($'000)
Adjustments to 2023/24 Draft Budget Post-Exhibition:	General Fund	Water Fund	Sewer Fund	Consol.*
Net Operating Results	-3,935	10	16	-3,909
Net Surplus/(Deficit) before Capital	-1,974	10	16	-1,948
Other Cash Adjustments
Capital Expenditure	-30,907	-50	-722	-31,679
New Borrowings	628	0	0	628
Net Cash Outflow	-34,214	-40	-706	-34,960
Reserve Movements
Net Transfers from Reserves	34,199	40	706	34,945
General Fund Net Cash Movement	-15	0	0	-15

Updated 2023/24 Budget	2023/24 Budget ($'000)
Updated 2023/24 Budget	General Fund	Water Fund	Sewer Fund	Consol.*
Net Operating Results	21,421	-2,387	9,641	26,858
Net Surplus/(Deficit) before Capital	-22,069	-4,714	7,536	-21,064
Other Cash Adjustments
Capital Expenditure	-146,941	-17,303	-23,950	-188,194
New Borrowings	18,356	0	0	18,356
Loan Principal Repayments	-14,265	0	-6,023	-19,098
Proceeds from the disposal of assets	5,293	120	100	5,513
Receipt of Internal Loan Repayment	0	1,190	0	0
Depreciation Adjustment	59,740	14,269	16,191	90,200
Dividend Paid to General Fund	0	-163	-1,654	0
Net Cash Outflow	-56,396	-4,274	-5,695	-66,365
Reserve Movements
Net Transfers from Reserves	56,399	4,274	5,695	66,368
General Fund Net Cash Movement	3	0	0	3

Following the consideration of the submissions received and the identification of the required changes, it is recommended that the Draft Delivery Program and Operational Plan 2023/24, Draft Budget and Fees and Charges be adopted by Council, with proposed changes, as outlined in the recommendation at the beginning of this report.

Ordinary Meeting – Monday 26 June 2023

Page 0

CL23.196 Investment Report - May 2023

HPERM Ref: D23/222309

Department: Finance

Approver: Kerrie Hamilton, Director City Performance

Attachments: 1. Shoalhaven Monthly Investment Report - May 2023 (under separate cover) ⇨

Reason for Report

The reason for this report is to inform the Councillors and the Community on Council’s investment returns and also to ensure compliance with Section 625 of the Local Government Act 1993 and Clause 212 of the Local Government (General) Regulation 2021, that requires a written report is provided to Council setting out the details of all funds it has invested.

Recommendation

That Council:

1. Receive the Record of Investments for the period to 31 May 2023.

2. Note that Council’s total Investment Portfolio (excluding the Long-Term Growth Fund) returned 3.52% per annum for the month of May 2023, underperforming the benchmark AusBond Bank Bill Index (3.53% pa) by 1 basis point (-0.01%).

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

Options

1. The report on the Record of Investments for the period to 31 May 2023 be received for information.

Implications: Nil

2. Further information regarding the Record of Investments for the period to 31 May 2023 be requested.

Implications: Nil

3. The report of the record of Investments for the period to 31 May 2023 be received for information, with any changes requested for the Record of Investments to be reflected in the report for the period to 31 May 2023.

Implications: Nil

Background

Please refer to the attached monthly report provided by Council’s Independent Investment Advisor, Imperium Markets Pty Ltd.

Portfolio Return

The investment returns (excluding growth fund) were a stable 3.52% p.a., underperforming the benchmark AusBond Bank Bill Index (3.53% p.a.) by one basis point (-0.01%).

The overall portfolio (excluding cash) returned a positive 2.45% p.a. for the month of May 2023, underperforming the benchmark Ausbond Bank Bill Index return of +3.53% p.a entirely due to the negative movement of the growth fund.

The Reserve Bank of Australia has lifted the cash rate by 25 basis points on 6 June 2023 to the official interest rate of 4.1% and warned of more tightening ahead to return inflation to target. This placed an additional strain on market performance as recession fears grow.

Investments (Excluding Long-Term Growth Fund)

Graph 1 below, shows the performance of Council’s Investment Portfolio (excluding Long-Term Growth Fund) against the benchmark on a rolling 12-month basis.

Graph 1 - Performance of Council’s Investment Portfolio against the benchmark on a rolling 12-month basis

Long-Term Growth Fund

Council’s investment in the Long-Term Growth Fund underperformed and returned a negative -$61,408.28 or -3.52% (annualised) for the month of May 2023.

It is important to note that TCorp has a target of 3.5% above inflation of 2.5%, therefore the long-term target is expected to return an average of 6.0% per annum (benchmark) over a seven-year cycle with positive months outweighing the negative months over the long-term.

Investment Interest Earned – May 2023

Table 1 below, shows the interest earned for the month of May 2023.

Table 1- Interest Earned for the Month of May 2023

Fund	Monthly Revised Budget $	Actual Earned $	Difference $
General	178,314	184,905	6,592
Water	98,181	140,374	42,194
Sewer	56,904	59,738	2,834
Total excluding Long-Term Growth Fund	333,399	385,018	51,619

The interest earned for the month of May, excluding changes in the fair value of the TCorp Long-Term Growth Fund was $385,018 compared to the monthly revised budget of $333,399.

Investment Interest Earned - Year to Date

Table 2 below, demonstrates how the actual amount of interest earned year to date has performed against the total budget.

Table 2 - Amount of interest earned year to date, against the total budget.

Fund	Revised Total Annual Budget $	Actual YTD $	% Achieved
General	2,099,500	1,952,302	92.99%
Water	1,156,000	1,323,165	114.46%
Sewer	670,000	683,181	101.97%
Total excluding Long-Term Growth Fund	3,925,500	3,958,648	100.84%

The cumulative interest earned for the year (July to May), excluding the change in fair value of TCorp Long-Term Growth Fund was $3,925,500 which is 100.84% of the current full year revised budget.

Graph 2 below, illustrates the cumulative interest earned for the year for each fund (General, Water and Sewer) against budget:

Graph 2 - Cumulative interest earned for the year for each fund against budget.

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Cash and Restricted Assets

Table 3 below, shows a record of investments for the last two months.

Table 3 – Cash and Investment Balances

Record Of Investments
Cash and Investment Balances
	$	$
	May 2023	April 2023
Cash and Investments Held
Cash at Bank - Transactional Account	17,384,287	7,942,380
Cash on Hand	21,708	21,708
Other Cash and Investments	142,829,989	152,800,113
	160,235,984	160,764,201
Fair Value Adjustment	(154,520)	(157,438)
Bank Reconciliation	478,030	203,026
	323,509	45,588
Book Value of Cash and Investments	160,559,494	160,809,789
Less Cash & Investments Held in Relation to Restricted Assets
Employee Leave Entitlements	5,880,448	5,880,448
Critical Asset Compliance	390,542	404,888
Other Internal Reserves	1,767,217	2,011,928
Section 7.11 Matching Funds	2,676	39,350
Strategic Land Development Reserve	3,716,480	3,932,954
Plant Replacement	152,236	168,750
S7.11 Recoupment	114,767	181,685
Water Communication Towers	4,822,906	4,821,139
Commitment To Capital Works	141,003	1,091,144
Property Reserve	938,091	611,510
Total Internally Restricted	17,926,366	19,143,796

Loans - General Fund	26,778,010	28,084,162
Self-Insurance Liability	3,601,068	3,689,484
Grant reserve	3,662,326	3,820,201
Section 7.11	17,558,105	17,155,680
Special Rate Variation	1,766,317	1,423,425
Storm Water Levy	293,258	262,036
Trust - Mayors Relief Fund	111,674	111,316
Trust - General Trust	4,824,966	4,803,328
Waste Disposal	11,268,393	12,869,584
Sewer Fund	18,429,090	16,818,456
Sewer Plant Fund	5,245,497	4,993,113
Section 64 Water	19,222,096	19,160,818
Water Fund	20,691,798	23,176,355
Water Plant Fund	4,417,182	4,094,955
Total Externally Restricted	137,869,780	140,462,913

Total Restricted	155,796,146	159,606,709
Unrestricted Cash Balance - General Fund	4,763,348	1,203,081

Restricted Asset Movements

Table 4 below shows the major movements in cash reserves increase/(decrease).

Table 4 - Major movements in cash reserves increase/(decrease)

Total Cash	(250,295)	May is a rate instalment month offset by Expenditure on various capital projects
Commitment to Capital Works	(950,141)	Basin and Central Local Roads
Loans - General Fund	(1,306,152)	Park Road Netball Court
Waste Disposal	(1,601,190)	Tipping fee receipts & Domestic Waste Recycling Contract for red & yellow bin
Sewer Fund	1,610,634	Receipts for sewer services
Water Fund	(2,484,557)	Various Capital Projects
General Fund	3,560,267	May is a rate instalment month

Liquidity Indicators

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

The Unrestricted Current Ratio has dropped below the benchmark of 1.5x for the month of May 2023, coming in at 1x (Graph 3).

The Unrestricted Current Ratio Excluding Internal Reserves has dropped below the benchmark of 1x for the month of May 2023, coming in at 0.67x (Graph 4).

All other ratios remain above their benchmark (Graphs 5 to 7).

In accordance with Council Liquidity Contingency Plan, when a ratio drops below 30% of the benchmark, the contingency plan is “activated”.

The prepayment of the 23/24 Financial Assistance Grant (approximately $10M) will be receipted in June 2023 and is anticipated to return the ratio to within 30% of the benchmark. This will return the liquidity contingency plan into “monitoring” and not “activation”.

Further the FY23/24 rates will be levied in July 2023 which is anticipated to return the ratio to more than the 1.5 x benchmark.

Graph 3 below, indicates Council’s unrestricted current ratio for the month of May against the benchmark and on a rolling 12-month basis against the benchmark.

Graph 3 – Unrestricted current ratio for the month and rolling 12-month basis against the benchmark

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 first graph displays the May 2023 Unrestricted Current Ratio and, the second graph displays the previous rolling 12-months Unrestricted Current Ratio by fund.

The ratio remains above the benchmark for Water & Sewer, but General Fund has dropped below benchmark. This is the first month this ratio (1x) has dropped below the benchmark (1.5x).

In accordance with Council Liquidity Contingency Plan, when a ratio drops below 30% of the benchmark, the contingency plan is activated.

The prepayment of the 23/24 Financial Assistance Grant ($10M) will be receipted in June 2023 and is anticipated to return the ratio to within 30% of the benchmark. This will return the liquidity contingency plan into “monitoring” and not “activation”.

Further the FY23/24 rates will be levied in July 2023 which is anticipated to return the ratio to more than the 1.5 x benchmark.

Graph 4 below, indicates Council’s unrestricted current ratio (excluding internal reserves) for the month of May against the benchmark.

Graph 4 – Unrestricted current ratio (excluding internal reserves) for the month

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 Water & Sewer but has dropped below benchmark for General fund. This is the first month this ratio (1x) has dropped below the benchmark (1.5x).

In accordance with Council Liquidity Contingency Plan, when a ratio drops below 30% of the benchmark, the contingency plan is activated.

Further the FY23/24 rates will be levied in July 2023 which is anticipated to return the ratio to more than the 1.5 x benchmark.

Graph 5 below, indicates Council’s cash expense cover ratio (excluding external restrictions) for the month of May against the benchmark.

Graph 5 – Cash expense cover ratio (excluding internal restrictions) for the month

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 May for all funds.

Graph 6 below, indicates Council’s cash expense cover ratio for the month of May against the benchmark and on a rolling 12-month basis against the benchmark.

Graph 6 – Cash expense cover ratio for the month and rolling 12-month basis against the benchmark

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 May 2023 for all funds.

The first graph displays the May 2023 Cash Expenses Cover Ratio and, the second graph displays the previous rolling 12-months Cash Expenses Cover Ratio by fund.

Graph 7 below, indicates Council’s unrestricted cash percentage for the month of May against the benchmark and on a rolling 12-month basis against the benchmark.

Graph 7 – Cash expense cover percentage for the month and rolling 12-month basis against the benchmark

Unrestricted Cash

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Unrestricted Cash is calculated as a total of 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 General fund unrestricted cash is consistently above the benchmark.

The benchmark is set at 3% of budgeted cash outflows (excluding investment purchases and expenditures funded by reserves).

The first graph displays the May 2023 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 POL 22/78.

Katie Buckman Date: 15 June 2023

Ordinary Meeting – Monday 26 June 2023

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CL23.199 Proposed Works in Kind Agreement - Construction of Road and Drainage Infrastructure - Moss Vale Road South Urban Release Area, Stage 3a

HPERM Ref: D23/215357

Department: Strategic Planning

Approver: Carey McIntyre, Director - City Futures

Reason for Report

The purpose of the 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 land relating to subdivision approvals SF10633 and SF10656, for the construction of road and drainage infrastructure required under the Shoalhaven Contributions Plan 2019 (the CP).

The works are associated with approved residential subdivisions in Stage 3 of the Moss Vale Road South Urban Release Area URA) and predominantly relate to development of 121 and Lot 8 Taylors Lane, Badagarang.

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 121 and Lot 8 Taylors Lane, Badagarang, for the following, except where further negotiations result in substantial changes to the proposal, in which case Council will receive a further report prior to proceeding:

a. Shared user pathway.

b. Roundabout at Taylors Lane.

c. Wetland and swale construction, and payment of associated land value.

2. Endorse the approach that:

a. No surplus value payments to the developer will be considered for works costs above the conditioned Section 7.11 obligations for Contributions Plan Projects 01ROAD5154 and 01DRAI5006 (works component).

b. Land value payment to the developer for the drainage devices will be less the land component of the conditioned Section 7.11 obligations for Contributions Plan Project 01DRAI5006 or the developer pays monetary contributions for the land component of the conditioned Section 7.11 obligations for Contributions Plan Project 01DRAI5006 separately.

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

4. Notify the owner/developer of this resolution.

Options

1. As recommended.

Implications: Council staff will finalise negotiations and enter into a WIKA under the delegated authority of the CEO. The proposed WIKA will result in a positive public benefit through the construction of part of the road and drainage infrastructure earmarked in the CP. The approved subdivision (SF10633) will bring 124 residential lots to the market and progressing this agreement will help facilitate the development.

This option does suggest payment of surplus value for the works elements should not be supported. This is in accordance with Council’s Works In Kind Policy and is due to concerns that rate payers will ultimately end up paying for the surplus value, rather than developers in the URA. This is not considered to be in the public interest.

2. 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 enable Council staff to finalise negotiations with the developer as far as possible, including procuring detailed costings (based on approved designs and current land value) prior to reporting back to Council. This option would allow Council to consider the potential financial risk obligations associated with the proposal in further detail.

3. Adopt an alternative recommendation.

Implications: This option may further affect the timely delivery of the subdivision and new residential lots to market.

Background

On 11 May 2022, development consent (SF10633) was granted for a 124 lot residential subdivision at Lot 1 DP 1281124, Lot 2 DP 1281124 and Lot 5 DP 1256748, Taylors Lane and Hockeys Lane, then Cambewarra, now known as the locality of Badagarang. The main development area of the SF10633 approval is shown in Figure 1, shaded in blue.

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Figure 1: The main development area of SF10633 in blue

Figure 2 below indicatively shows the approved subdivision layout.

The subdivision relies on access from the east via adjoining Lot 8 DP 1256748, including a roundabout to be constructed at the intersection of Taylors Lane, which will connect to Lancaster Drive (refer to Figure 3). This land forms the remaining part of Stage 3 of the URA and relates to a 55 lot subdivision (SF10656).

Council will receive a separate report on a proposed WIKA for the SF10656 subdivision in due course.

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Figure 2: Approved SF10633 subdivision layout (Source: Maker ENG, March 2023)

The Proposal

A WIKA application was formally received by Council on 11 May 2023, seeking to enable the:

· Construction of the following to offset s7.11 developer contributions:

- A shared user pathway/s (shown in blue in Figure 3).

- A roundabout at Taylors Lane (shown in green in Figure 3).

- Two intersections (shown in yellow in Figure 3).

- Drainage works (wetland and swale) to the southwest of the subdivision (shown in purple in Figure 3).

· Dedication of the drainage area to Council, comprising an area of approximately 10,000m² (exact area yet to be confirmed, shown in purple in Figure 3) and payment of land value.

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Figure 3: WIKA Proposal (Adapted from Source: Maker ENG, March 2023)

Each of the WIKA elements are discussed in more detail below.

Construction of shared user pathway and roundabouts

The CP Project 01ROAD5154 identifies a total of nine roundabouts. The proposed WIKA is proposing to construct one of the nine roundabouts in the CP relating to the URA which is in the SF10656 area (intersection of Taylors Lane and Lancaster Drive). This is supported. The extent of land for the roundabout will be reviewed and refined, if necessary, through the negotiation process.

Two basic intersections have been approved in the general location of two of the other CP envisaged roundabouts, instead of roundabouts. Roundabouts are included in the CP because they benefit the broader URA. Basic intersection treatments are usually ‘developer pays’ (i.e., developer conditioned) infrastructure. It is questionable if the ‘nexus’ to the broader URA now exists. As such, it is recommended that the two basic intersections do not form part of the WIKA.

The CP Project 01ROAD5154 also identifies a shared user path network. The proposed WIKA proposes to construct the southern-most pathway. Whilst the shared user pathway has been approved further to the north than shown in the CP, this is considered generally acceptable as it is still in keeping with the intent of the CP.

Construction of wetland/drainage infrastructure

The CP Project 01DRAI5006 identifies a biofiltration drainage device and swale in the south western corner of the SF10633 subdivision area, within the residential zoned area of the URA.

The approved wetland location is generally consistent with the location of the device in the CP; however, it is mostly located outside of the URA on rurally zoned land. Despite the variation in location, the proposal is considered acceptable as it is still in keeping with the intent of the CP.

The type of device is not consistent with the CP however, being a wetland rather than a biofiltration device. This change was an operational decision and the approval reflects this approach. A Subdivision Works Certificate has been issued for the subdivision which includes the approved specifications for the device. This means Council has already accepted the design of the device.

The alternatively approved device may have cost implications which are discussed in the Financial Implications section below.

Dedication of Drainage Infrastructure/Wetland and Consideration of Land Costs

The proposed WIKA seeks to dedicate the wetland/drainage area planned to be constructed in this WIKA, subject to payment of land value through the WIKA process, rather than via the formal acquisition process. This is a more streamlined process which is supported.

The area proposed for dedication (approx. 10,000m²) is greater than the area identified in the CP (2,200m²) and is also greater than the combined area of all devices in the CP (7,850m²). Despite this, the type and size of device was an operational preference and has been approved.

The CP identifies a square metre rate of $65/m² for land value, however this is based on the drainage device being wholly located on residential zoned land. The value of the rural zoned land would be less and would need to be considered through the negotiation process. Refer to the Financial Implications section below for more information.

Community Engagement

No community engagement is required for a WIKA. The development to which they relate were subject to community notification.

Financial Implications

The developer has estimated the value of construction works (excluding intersections) to be $1,277,347.96:

· Road construction (including pathway): $526,956.91.

· Drainage construction: $750,391.05.

Contributions payable for CP Projects 01ROAD5154 and 01DRAI5006 is $692,961.60 and $407,929.00 respectively.

The proposed WIKA is seeking an offset against all contributions payable for what appears to be substage 2 in the SF10633 consent ($1,422,158.40). This approach is not supported as Council’s Works In Kind Policy specifies that the works are to satisfy the contributions for the same category of infrastructure as the works (i.e. road and drainage). No other comparable road and drainage projects have been levied on the consent.

As independent costings have not yet been obtained for this proposal; it is unclear if there will be a shortfall between the developers s7.11 obligations for CP Projects 01ROAD5154 and 01DRAI5006 and the infrastructure construction costs, however this is likely to be the case for at least the drainage project.

The Works In Kind Policy specifies (underlined emphasis added) that:

Where the contribution value of the works undertaken exceeds the monetary development contributions required as a condition of consent, the WIK [Agreement] will be considered to fully satisfy the payment of those development contributions. The Council may consider credit or reimbursement arrangements for the amount that the contribution value exceeds the monetary development contributions but is not obliged to do so.

As such, Council may consider the payment of the ‘surplus’ value to the developer. It is likely that the value of works will exceed the values envisaged in the CP. Surplus value for 01DRAI5006 could be in the vicinity of $340,000 based on preliminary costings provided by the developer. At this stage, it appears that the proposed road works will be less than the conditioned s7.11 obligations, meaning that there would be no surplus value payment needed and the developer would pay the remainder of the s7.11 road obligations to Council as monetary contributions.

It is also uncertain whether the additional expenditure could be covered by further developer contributions received as:

· There is limited opportunity to collect the additional funds in the URA based on remaining development opportunity. Subdivisions throughout the future URA stages are largely already approved; and

· An error was made in conditioning s7.11 contributions for a neighbouring subdivision (SF10656) in the URA, resulting in a loss in contributions income across the URA infrastructure projects of approximately $1million. Council will receive a future report on a proposed WIKA for the SF10656 subdivision in due course; and

· The majority of future development is likely to seek to enter into an agreement to deliver works instead of paying monetary contributions.

If Council is unable to recoup the surplus value through future contributions income, this would ultimately need to be covered by general revenue (rate payers). This is not considered to be a good outcome or in the public interest as both CP projects are 100% apportioned to development within the URA as they are required to sustain the development in that area in isolation. It is also noted that there are limited funds remaining in Council’s deleted funds reserve to assist.

It is likely that the land value for the drainage device will also exceed the value envisaged in the CP, due to the substantial land area approved. The developer has estimated the value of land to be in the vicinity of $665,000 (at $65/m²), whilst the CP envisaged a value of $143,000.00. Even with a reduction in value to reflect the rural zoning of part of the area, a financial risk still remains for Council. Despite this, payment of land value through the WIKA process remains preferable to the compulsory acquisition process.

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 and land value payment, if progressed, changes to the CP may be required. The changes to these projects could be undertaken as part of a future amendment/s to the CP and would be reported separately at the appropriate point in time.

Ordinary Meeting – Monday 26 June 2023

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CL23.203 DA21/2330 - 82 Cyrus Street Hyams Beach - Lot 1 DP 1222535

DA. No: DA21/2330

HPERM Ref: D23/215730

Department: Certification & Compliance

Approver: James Ruprai, Director - City Development

Attachments: 1. s4.15 Assessment Report (under separate cover) ⇨

2. DRAFT Determination - Refusal ⇩

3. Plan Set ⇩

Description of Development: Construction of retaining wall / seawall

Owner: Real Estate Capital Investors Pty Ltd

Applicant: Donna Marie Kelly C/O SET Consultants Pty Ltd

Notification Dates: 15 December 2021 – 14 January 2022

No. of Submissions: One (1) was received.

Purpose / Reason for consideration by Council

The application is for Regionally significant development under section 8A of State Environmental Planning Policy (Planning Systems) 2021 and must be determined by the Regional Planning Panel.

This report is submitted to Council to advise of the Staff recommendation to the Regional Planning Panel.

Recommendation

That:

1. Council receive and note the report DA21/2330 – 82 Cyrus Street, Hyams Beach – Lot 1 DP 1222535

2. Council support the staff recommendation to refuse DA21/2330 for construction of a retaining wall / seawall on the basis that the application has not demonstrated that it is suitable with regards to the considerations of section 4.15 of the Environmental Planning and Assessment Act 1979 and the Coastal Management Act 2016.

3. The resolution made by Council be submitted to the Regional Planning Panel prior to their consideration and determination of DA21/2330.

Options

1. Support the staff recommendation to the Regional Planning Panel (RPP) for refusal of the application and advise the RPP accordingly.

Implications: The recommendation would be provided to the RPP for their information as part of their consideration of the regional application.

2. Make an alternative resolution and make a separate submission to the SRPP.

Location Map

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Figure 1: Location Map – Locality

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Figure 2: Location Map – Subject Site

Background

Why this DA is being reported to the Regional Planning Panel

This development application is being reported to the Regional Planning Panel for the following reasons:

(a) The works constitute coastal protection works to be carried out by a person other than a public authority; other than coastal protection works identified in the relevant certifier coastal management program.

(b) The Regional Planning Panel is the determining authority for the application in accordance with section 8A of Schedule 6 of State Environmental Planning Policy (Planning Systems) 2021 (SEPP).

8A Certain coastal protection works

1) The following development on land within the coastal zone that is directly adjacent to, or is under the waters of, the open ocean, the entrance to an estuary or the entrance to a coastal lake that is open to the ocean—

a) development for the purpose of coastal protection works carried out by a person other than a public authority, other than coastal protection works identified in the relevant certified coastal management program,

b) development for the purpose of coastal protection works carried out by or on behalf of a public authority (other than development that may be carried out without development consent under clause 19(2)(a) of State Environmental Planning Policy (Coastal Management) 2018.

The determination by a Panel adds a layer of transparency to the assessment process. These assessment and management measures are intended to deal with any potential conflicts of interest.

Proposed Development

The development application proposes the construction of a retaining wall / seawall on top of existing mass footings which are subject to a separate Building Information Certificate.

As development applications can only consider prospective work, the existing unauthorised mass footings and slab cannot be considered as part of this current development application and are subject to a separate Building Information Certificate (BIC) process. The current development application is for the seawall as shown in red in Figure 3.

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Figure 3: Section plan noting the extent of proposed seawall (in red) that is being considered by this application.

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Figure 4: Eastern Elevation Plan

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Figure 5: Seawall Plan

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Figure 6: Erosion & Sediment Control Plan

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Figure 7: Photomontage comparing existing condition and overlaying proposed seawall.

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Figure 8: Photomontage comparing existing condition and overlaying proposed seawall.

Subject Land

The subject site is located on the eastern side of Cyrus Street and has a foreshore frontage to Hyams Beach. It is legally defined as Lot 1 DP 1222535 and is described as 82 Cyrus Street, Hyams Beach.

Site & Context

The site is largely a rectangular allotment with a site area of 1081m². The site gradually slopes away from the street with a steep drop-off at the eastern end of the site.

The site contains an existing dual occupancy development which comprise the “Boat House” (westernmost dwelling at front of site, closest to Cyrus Street) and the “Beach House” (easternmost dwelling at rear of site, closest to Hyams Beach) as referred to in this application. The eastern part of the site slopes down to Hyams beach and includes a boardwalk and deck areas (currently under construction). This eastern part of the site is highly modified by a series of retaining walls and various landscaping works.

The site benefits from a series of development approvals relating to the dual occupancy development and boardwalk, deck and retaining walls on the eastern portion of the site.

The surrounding area is residential in character and the site is adjoined by low density residential development to the north, west and south and Hyams Beach to the east. Under the provisions of Shoalhaven Local Environmental Plan 2014 (SLEP 2014) the subject land is zoned R2 – Low Density Residential.

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Figure 9: Zoning Map

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Figure 10: Photo of eastern aspect of subject site on 25/1/2022

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Figure 11: Photo of eastern aspect of subject site on 5/12/2022

History

After the initial assessment of the application, the applicant was requested to provide additional information on 25/11/2021 and 18/5/2022 relating to:

a) owner’s consent for work on the adjoining Council managed land (Hyams Beach),

b) clarification on the plans as to what is proposed,

c) clarification on the height of the proposed sea wall above existing ground level,

d) elevation plans,

e) amended coastal hazard risk assessment reports, and

f) revised engineering design plans.

Additional information was provided by the applicant on 10/12/2021 and 13/1/2021 with a further request for additional information being sent on 01/06/2022.

The site was inspected by the members of the Regional Planning Panel (RPP) on 26/7/2022 and further additional information was requested on 24/8/2022 following advice from the RPP members. This additional information related to further details of

a) the existing site and geotechnical conditions including the depth to bedrock,

b) clarification on the purpose of the proposed seawall,

c) confirmation of existing ground levels,

d) clarification as to how the stairway access would integrate with the seawall, and

e) further geotechnical reports considering coastal erosion and hydrological processes and the likely impacts of the development.

During the course of the assessment, the site experienced a landslip in June 2022. As a result of the land slippage, the landowner constructed a ~540mm topping slab over mass concrete footings which is now subject to a separate Building Information Certificate (BIC).

A Written Directions Notice (WDN) was issued by the Certifier (Council) for CC21/2195 on 21/11/2022 advising the following:

Steps to be taken to remedy the non-compliance

1. Clearly identify the boundary within the vicinity of works and keep this in place until all works are completed on site.

2. Cease all other construction works on site until emergency stabilisation works are completed in accordance with Engineering Drawing No.20062/C01Q dated 21 October 2022 and letter dated 11 November 2022

3. Relocate all site fencing and sediment measures to the western side of the retaining wall that is located on Council property.

4. Remove any stormwater outlets that are located over Council land.

5. Provide in writing a timeline for works to be completed as required in Engineers Letter – Emergency Stabilisation Ref 20062.08 dated 11 November 2022.

6. Lodge a Building Information Certificate Application for the works carried out without consent as per Survey dated 10 November 2022 by SET Consultants.

Date by which the person responsible for the aspect of development must demonstrate they have remedied the non-compliance

Items 1, 2, 3, 4 & 5 – Immediately

Item 6 before further works other than emergency works are carried out.

At the time of the issue of the WDN, the footings for the slab had been poured and to stabilise the site, an order (ON2022/9571) was issued by Council’s Compliance Team to complete the top slab over the northern portion of the exposed waffle pod footings:

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Figure 12: Photo of subject site on 5/12/2022 noting waffle pod footings on the northern portion of the site and the reinforcement starter bars.

Additional information was provided by the applicant on 4/7/2022, 5/7/2022 and 31/10/2022 in response to the additional information requests and also amending the application to relate to the prospective works only.

Following a review of the submitted additional information, further additional information was requested on 28/3/2023 relating to clarification on various aspects about the scope of the development considering the construction of the unauthorised mass footings and slab and commentary in the submitted Coastal Hazard Risk Assessment report.

Additional information was provided by the applicant on 17/5/2023.

Issues

Coastal Management Act 2016

In accordance with section 27 of the Coastal Management Act 2016, development consent must not be granted for the purpose of coastal protection works unless the consent authority is satisfied that –

a) the works will not, over the life of the works

i) unreasonably limit or be likely to unreasonably limit public access to or the use of a beach or headland, or

ii) pose or be likely to pose a threat to public safety, and

b) satisfactory arrangements have been made (by conditions imposed on the consent) for the following for the life of the works—

i) the restoration of a beach, or land adjacent to the beach, if any increased erosion of the beach or adjacent land is caused by the presence of the works,

ii) the maintenance of the works.

Discussion

Council staff are satisfied that the proposed development would not unreasonably limit public access along or the use of the adjoining beach and headland. However, the proposed works and potential scouring and end effects may undermine the existing stairway access to Hyams Beach from the adjoining property at 80 Cyrus Street.

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Figure 13: Photo of existing stairway access at 80 Cyrus Street

Furthermore, the potential scouring impacts to this adjoining land may pose safety risk for the residents of 80 Cyrus Street and the general public.

If consent is granted for the proposed works, a condition of consent can be imposed in accordance with 4.17(6)(d) of the Environmental Planning and Assessment Act 1979 requiring the arrangement of a security in relation to the coastal protection works if any increased erosion is caused by the presence of the works.

State Environmental Planning Policy (Hazards and Resilience) 2021

The subject land is mapped as “coastal environment area” and “coastal use area” under the SEPP.

Discussion

Development on land within the coastal environment area

Development consent must not be granted to development on land that is within the coastal environment area unless the consent authority has considered whether the proposed development is likely to cause an adverse impact on the following:

Consideration	Council Staff Commentary
The integrity and resilience of the biophysical, hydrological (surface and groundwater) and ecological environment	Council considers that the proposed development is incompatible with the adjoining coastal area and may have an adverse impact on the integrity and resilience of the biophysical, hydrological (surface and groundwater) and ecological environment. The proposed development may result in amplified erosion effects on the beach and adjoining properties, end effects at either end of the proposed seawall and potential alteration to local hydrology.
Coastal environmental values and natural coastal processes,	The proposed development is incompatible with coastal environment values and natural coastal processes. The current Coastal Zone Management Plan (CZMP) and draft Coastal Management Program (CMP) are the key planning documents for Council, providing a key opportunity to plan strategically for coastal hazards and mitigation measures to avoid potential issues with ‘ad hoc’ seawall construction for private development. Works such as those which are proposed in the application are not currently supported as management options / actions through either the final CZMP or the draft CMP.
The water quality of the marine estate (within the meaning of the Marine Estate Management Act 2014), in particular, the cumulative impacts of the proposed development on any of the sensitive coastal lakes identified in Schedule 1,	Hard structures such as the proposed seawall installed on this property and potential structures on neighbouring properties at Hyams Beach, may result in unforeseen impacts to Hyams Creek such as amplified erosion effects on the beach and changes to local hydrology. The proposed development, if approved, would potentially set the precedent for similar ‘ad hoc’ developments on adjacent properties that could have adverse effects on the surrounding coastal ecosystems. The proposal in consideration of the impacts of the development and cumulative impacts from this seawall and other structures, e.g., the slab and footings on which the seawall is proposed to be located that is subject to a separate Building Information Certificate, as well as potential future structures that this development may set a precedent for, may have an adverse impact on the water quality of the marine estate.
Marine vegetation, native vegetation and fauna and their habitats, undeveloped headlands and rock platforms,	Council is satisfied the proposed development would not have a significant adverse impact on marine vegetation, native vegetation and fauna and their habitats, undeveloped headlands and rock platforms.
Existing public open space and safe access to and along the foreshore, beach, headland or rock platform for members of the public, including persons with a disability,	Council is satisfied the proposed development would not unreasonably limit public access along or the use of the adjoining beach and headland. However, the proposed works and potential scouring and end effects may undermine the existing stairway access to Hyams Beach from the adjoining property at 80 Cyrus Street.
Aboriginal cultural heritage, practices and places,	There are no identified impacts.
The use of the surf zone.	The proposal will not compromise the use of the surf zone.

It is considered that the proposal may have an adverse impact on the integrity and resilience of the biophysical, hydrological (surface and groundwater) and ecological environment for the following reasons:

a) The adjoining watercourse to the south is in a state of flux, with at times the watercourse running parallel and in close proximity to the location of the proposed seawall. The proposed seawall on top of the footings sited to bedrock may have hydrological impacts. The application has failed to demonstrate that the proposal will not cause an adverse impact to the adjoining watercourse.

b) The addition of ununified or uniformed seawall development has not considered the area of the coastline holistically and this could have an adverse impact on the natural watercourse processes and movements.

c) The application has failed to demonstrate that the development will not have an adverse impact on coastal environmental values and natural coastal processes, particularly with regard to the natural changes to the adjoining watercourse over time.

d) The construction of the proposed seawall may also result in scouring and end effects at either side of the wall.

e) The application has failed to demonstrate the proposal will not have an adverse impact on the water quality of adjoining watercourses discharging to the marine estate or marine vegetation, or the coastal environment.

Development on land within the coastal use area

Development consent must not be granted to development on land that is within the coastal use area unless the consent authority has considered whether the proposed development is likely to cause an adverse impact on the following:

Consideration	Council Staff Commentary
existing, safe access to and along the foreshore, beach, headland or rock platform for members of the public, including persons with a disability,	The proposal will not restrict access.
Overshadowing, wind funnelling and the loss of views from public places to foreshores,	The proposal will not impact on overshadowing and wind funnelling and will not result in the loss of views from public places to foreshores.
The visual amenity and scenic qualities of the coast, including coastal headlands,	The proposed seawall would be constructed along a prominent part of Hyams Beach. The seawall will have a height of approximately 1m above the existing ground line, however it is also noted that this existing ground line changes with natural erosion, scour and sand accretion processes. The seawall itself, which is being considered by DA21/2330, has an approximate height of 1.2m which is then attached to an approximately 1.8m deep waffle pod footing and slab. As such, in extreme scour events which erode the beach to bedrock, a 3m high wall may be visible from the beach and public domain. The proposed seawall will be located behind an unapproved rock wall. The area between the unapproved rock wall and proposed seawall is to be reinstated to natural ground level and revegetated in accordance with Council orders. The design of the proposed seawall along the rear boundary is not compatible with other development observed on adjoining properties which are typically timber retaining walls of a lower profile. However, considering the likelihood of erosion scour events at the area directly in front of the proposed seawall as well as screening from the existing rock wall and required revegetation of the beach area, the proposed development is considered reasonable in this instance.
Aboriginal cultural heritage, practices and places,	There are no identified impacts.
Cultural and built environment heritage, and	The proposal is considered appropriate with regard to cultural and built environmental heritage.

It is considered that the proposal is satisfactory with regard to the matters for consideration under section 14 discussed above.

Section 2.12 of State Environmental Planning Policy (Resilience and Hazards) 2021 specifies that development consent must not be granted to development on land within the coastal zone unless the consent authority is satisfied that the proposed development is not likely to cause increased risk of coastal hazards on that land or other land. The application has failed to demonstrate to the satisfaction of Council that the proposed development is not likely to cause increased risk of coastal hazards on adjoining land.

Shoalhaven Local Environmental Plan 2014

Clause 7.2(3)

Before granting development consent for earthworks (or for development involving ancillary earthworks), the consent authority must consider the following matters—

a) the likely disruption of, or any detrimental effect on, drainage patterns and soil stability in the locality of the development,

b) the effect of the development on the likely future use or redevelopment of the land,

c) the quality of the fill or the soil to be excavated, or both,

d) the effect of the development on the existing and likely amenity of adjoining properties,

e) the source of any fill material and the destination of any excavated material,

f) the likelihood of disturbing relics,

g) the proximity to, and potential for adverse impacts on, any waterway, drinking water catchment or environmentally sensitive area,

h) any appropriate measures proposed to avoid, minimise or mitigate the impacts of the development.

Discussion

The proposal involves some cut and filling and construction of a seawall.

The application has not satisfactorily demonstrated that the earthworks and proposed seawall will not have a detrimental impact on the drainage patterns of the beach and coastal area or that the earthworks will not have an adverse impact on the adjoining waterway and its natural state of flux.

Clause 7.20(3)

Development consent must not be granted to development in a coastal sand dune area, on a rocky headland or on a flat, well-drained area along a major creek line unless the consent authority is satisfied that there will be no significant adverse impact on the natural or cultural values of the area.

Discussion

The application has failed to satisfactorily demonstrate the works will not have a significant adverse impact on the natural values of the area, on coastal processes, the surrounding coastal environment or the adjoining natural watercourse and its movements. Accordingly, the proposal is not considered satisfactory with regard to clause 7.20(3).

Shoalhaven Development Control Plan 2014 – Chapter G6

Chapter G6 of Shoalhaven DCP 2014 sets out requirements and performance criteria that must be considered for development in coastal and foreshore areas. Section 5.1.3 of Chapter G6 sets out considerations for development in coastal areas with potential coastal hazard risks.

Discussion

The application has been supported by a Coastal Hazard Risk Assessment Report which provides an assessment against the relevant performance criteria in Chapter G6. This has been considered by staff as below:

Performance Criteria	Applicant’s Comments from Coastal Hazard Risk Assessment Report (Ref: M9253, Rev C) prepared by Geoff Mezler & Associates Pty LTD and dated 11/5/2023	Council Comments
		Council is not satisfied that this has been adequately addressed. In a significant storm event, such as which the structure has been designed for, the proposed development is likely to increase coastal erosion effects on the beach due to wave reflection forces.
		The application has not adequately demonstrated that the development will not pose a risk to the safety of residents, workers, or other occupants. In particular, scouring and end effects at the ends of the proposed seawall may undermine the structural integrity of the existing stairway access from 80 Cyrus Street to Hyams Beach.
		Council is not satisfied that this has been adequately addressed. As noted by the applicant, the proposed development has the potential for localised end effects in the north-eastern and south-eastern corners of the wall. The proposed development has not adequately addressed end effects in the design of the structure to mitigate coastal hazard risk on adjoining properties. Council is not satisfied the proposed development does not increase coastal risks to properties adjoining or within the locality of the site.
		The development maintains adequate infrastructure, services, and utilities to the property.
		Council is not satisfied that this has been adequately addressed. Council has an existing legislated and certified Coastal Zone Management Plan (CZMP) which does not list any relevant management options/actions for the site. Council is currently developing its Coastal Management Program (CMP) for Jervis Bay which will cover Hyams Beach and hence the site. The current CZMP and future CMP are the key planning documents for Council, providing a key opportunity to plan strategically for coastal hazards and mitigation measures to avoid potential issues with ad-hoc seawall construction for private development. Works such as those which are proposed by the applicant are not currently supported as management options / actions through either the final CZMP or the draft CMP.
		Council is not satisfied that this has been adequately addressed. The proposed development, if approved, would set the precedent for similar developments of adjacent properties that could have adverse effects on the surrounding coastal ecosystems. If hard structures were installed on this property and neighbouring properties at Hyams Beach, there would be unforeseen impacts to Hyams Creek such as amplified erosion effects on the beach.
		Council is satisfied the proposed development would not unreasonably limit public access along or the use of the adjoining beach and headland. However, the proposed works and potential scouring and end effects may undermine the existing stairway access to Hyams Beach from the adjoining property at 80 Cyrus Street. Council is satisfied the proposed development would not have an unreasonable impact on visual amenity.

Planning Assessment

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

Consultation and Community Engagement:

Notification was made in accordance with Council’s Community Consultation Policy with letters being sent to property owners within a twenty-five metre buffer of the site. The notification was for a two-week period.

One public submission was received in relation to Council’s notification of the development. This submission objected to the development.

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

Summary of Public Submissions
Objection Raised	Comment
Completion of substantial works of seawall	It is noted that the footings which originally formed part of the application have already been constructed. A development application can only consider prospective works and the constructed footings are subject to a separate Building Information Certificate. The application is for the construction of a 1.2m high seawall on top of the existing footings.
Seawall effects on neighbouring properties in regard to wave wash or wave reflection	Council contends the application has not satisfactorily demonstrated the proposed works will not have a significant adverse impact on adjoining properties and the adjoining coastline, particularly with regard to erosion, scouring and end effects.
Height of seawall	The seawall is proposed to have approximately 1m of exposed rock face above reinstated ground level with a top of retaining wall at RL5.06. It is appreciated that due to the nature of the coastal environment and coastal erosion and accretion, the exact height of the seawall above existing ground level may fluctuate over time (including during the assessment period). The reinstated ground level at the eastern boundary of the site would range between RL 4.0 – 4.6 and the seawall would have an overall height ranging 1.06m – 0.46m (i.e., seawall height (RL5.06) minus reinstated ground level between RL4.0 and RL4.6 equals an overall height of the seawall of between 1.06m to 0.46m above the reinstated ground level).
Coastal Hazard Risk Assessment Report and seawall effects on neighbouring properties (e.g., erosion, flanking erosion, wave reflection.	Council contends that the application has not satisfactorily demonstrated that the proposed works will not have a significant adverse impact on adjoining properties and the adjoining coastline, particularly with regard to erosion, scouring and end effects.

Financial Implications:

There are potential cost implications if the Regional Planning Panel decide to refuse the application. Such costs would be associated with defending an appeal in the Land and Environment Court of NSW.

Legal Implications

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

Summary and Conclusion

This application has been assessed having regard to section 4.15 (Evaluation) under the Environmental Planning and Assessment Act 1979. Based upon the recommendations of the s4.15 Assessment Report (Attachment 1), Development Application No. DA21/2330 is recommended to the RPP for refusal for the following reasons:

1) The development application has not satisfactorily demonstrated compliance with the relevant provisions of section 27 of the Coastal Management Act 2016.

2) The development application has failed to demonstrate it will not likely cause increased risk of coastal hazards to the adjoining coastal land as required by State Environmental Planning Policy (Hazards and Resilience) 2021 (section 4.15(1)(a)(i) of Environmental Planning and Assessment Act, 1979).

3) The proposal is inconsistent with the objectives and requirements of State Environmental Planning Policy (Hazards and Resilience) 2021, being that the proposal is considered to be unsuitable having regard to the considerations for development within the “coastal environment area” and “coastal use area” (section 4.15(1)(a)(i) of Environmental Planning and Assessment Act, 1979).

4) The development application has not satisfactorily demonstrated compliance with the relevant provisions of clause 7.2 and 7.20 of Shoalhaven Local Environmental Plan 2014 (section 4.15(1)(a)(i) of the Environmental Planning and Assessment Act, 1979).

5) The proposal is considered unsuitable with regard to the provisions of Chapters G6 Shoalhaven Development Control Plan 2014 (section 4.15(1)(a)(iii) of Environmental Planning and Assessment Act, 1979)

6) The development application has not adequately demonstrated that the proposal will not have adverse amenity impacts on the natural environment in the locality and will not have an adverse social impact (section 4.15(1)(b) of Environmental Planning and Assessment Act, 1979)

7) The information submitted with the development application does not satisfactorily demonstrate that the site is suitable for the proposed use (section 4.15(1)(c) of Environmental Planning and Assessment Act, 1979)

8) Having regard to the above matters to address the relevant provisions of Environmental Planning and Assessment Act 1979 and Coastal Management Act 2018, the granting of development consent is not considered to be in the public interest (section 4.15(1)(e) of Environmental Planning and Assessment Act, 1979).

Ordinary Meeting – Monday 26 June 2023

Page 0

CL23.204 DA22/1716 - Lot 1 DP 537126 & Lot 2 DP 526958 Princes Hwy - Lots 52 & 53 DP 828221 / Part Lot 7 DP 759018 Wason Street - Ulladulla

DA. No: DA22/1716/4

HPERM Ref: D23/219436

Department: Development Services

Approver: James Ruprai, Director - City Development

Attachments: 1. Section 4.15 Assessment Report (under separate cover) ⇨

2. Revised Civil and Architectural Plans - Ulladulla Boardwalk - Stages 3-5 (under separate cover) ⇨

3. Draft Determination Notice (under separate cover) ⇨

4. Advice from LT Lawyers in relation to ROW over Lot 2 DP526958 & Lot 1 DP 537126 (Confidential - under separate cover)

Description of Development: Extension of existing Ulladulla Elevated Boardwalk

Owner: Shoalhaven City Council and The State of NSW

Applicant: Shoalhaven City Council – C/O Geoffrey Young

Notification Dates: 6/07/2022 – 20/07/2022

No. of Submissions: (4) submissions

Purpose / Reason for consideration by Council

This development application (DA) proposes demolition and construction work for a boardwalk on community land owned /managed by Council and potential impact on a Right of Way. A table is included in the report detailing the land parcels affected. Refer to Figure 8.

In accordance with s.47E of the Local Government Act 1993 and Council’s Conflicts of Interest Policy for Dealing With Development Applications Lodged by Council Staff, Councillors and Council, the DA is submitted to Council for determination.

Recommendation

That Development Application DA22/1716 for the demolition of existing pavement and stairs down to the Harbour from Wason Street, removal of existing A-frame and weigh station for the Fishermen’s Clubhouse, removal of trees and vegetation within the construction envelope and construct extension to the Ulladulla Harbour elevated pedestrian boardwalk – Stages 3 to 5 over Lot 1 DP 537126, Lot 2 DP 526958 Princes Highway, Lots 52 & 53 DP 828221 and Part Lot 7 Sec 17 DP 759018 Wason Street, Ulladulla be approved subject to the conditions contained in Attachment 3 of this report.

Options

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

Implications: This would allow Council to pursue construction of the development and complete the Ulladulla boardwalk.

In some instances, a third party could challenge the approval.

2. Refuse the Development Application (DA).

Implications: This would defer the completion of the Ulladulla boardwalk project and impact on the activation of the harbour foreshore.

Council would need to determine the grounds on which the DA is to be refused, having regard to section 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

3. Alternative recommendation.

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

Location Map

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Figure 1: Aerial imagery of subject site identified by yellow border

Background

The proposed development of the Ulladulla boardwalk involves demolition and construction work on community land with Council as applicant and developer.

The development application (DA) has been referred to Council for determination for the following reasons:

· To comply with s.47E of the Local Government Act 1993 which prevents the delegation of determination functions in relation to community land.

To comply with the requirements of Council’s Conflicts of Interest Policy for Dealing With Development Applications Lodged by Council Staff, Councillors and Council; and Proposed Development

The proposal is for the construction of Stages 3-5 of the Ulladulla boardwalk comprising:

· Demolition of the existing pavement and stairs down to the Harbour from Wason Street, illustrated in Figure 2.

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Figure 2: Photos of existing concrete stairs between Wason St and the Harbour

· Demolition of the existing A-frame and weigh station for the Fishermen’s Clubhouse, shown in Figure 3.

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Figure 3: Photo of the existing Fishing Club House and weigh station

· The removal of 14 trees – mainly Bangalays Eucalyptus botryoides and other vegetation within the construction corridor (see Figure 4).

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Figure 4: Photos of existing carpark and bank

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Figure 5: Demolition Plan

· Construction of an elevated boardwalk and viewing platforms that extend over the embankment providing views to the harbour. The development would also provide connection to Wason Street and new concrete stairs down to the Ulladulla Harbour precinct.

The extension to the elevated boardwalk is approximately 115 metres long and four metres wide with wider sections that act as viewing platforms/pergolas. It has variable heights with a maximum height of 9.31m above finished ground level.

· Construction of masonry retaining walls 600mm high at the carpark interface and variable to 1.5 metres maximum height above a section of boardwalk.

· Construction of a timber batten privacy screen (up to two metres high) to benefit Lot 51 DP 828221.

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Figure 6: Site Analysis Plan

· Landscaping and stabilisation of the slope below the boardwalk including stormwater drainage, as shown in Figure 7.

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Figure 7: Landscape Plan

· Electrical works including boardwalk up-lighting, column lighting for concrete stair landing, and relocation of overhead powerlines, poles and distribution board.

Refer to Attachment 2 for a comprehensive set of plans.

Subject Land

The site is comprised of five (5) irregular shaped land parcels described in the table below:

Legal Description	Address	Land Area m²	Owner	Classification
Lot 1 DP 537126	Princes Highway Ulladulla	1119.2	SCC	Community Land
Lot 2 DP 526958	Princes Highway Ulladulla	607.03	SCC	Community Land
Lot 52 DP 828221	Wason St Ulladulla	399.80	SCC	Community Land
Lot 53 DP 828221	Wason St Ulladulla	81.44	SCC	Community Land
Part Lot 7 Sec 17 DP 759018	Wason St Ulladulla	1,582.63 approx.	Crown Land NSW	Lease
Total Area		37,90m²

Figure 8: Proposed development land

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Figure 9: Aerial photo of proposed development lots – note yellow border is SCC land, blue border Crown lease

Site & Context

The site contains undeveloped elevated foreshore bank that is steeply sloped and vegetated with remnant Bangalays, Coastal Banksia and Cheese Trees with a dense mid-storey of native and exotic species.

The land is predominantly zoned RE1 Public Recreation and part zoned E2 Commercial Core for the small section of the boardwalk facilities that encroach onto the Wason Street road reserve under the Shoalhaven Local Environmental Plan 2014.

The Council owned lots are classified as community land.

Lot 2 DP 526958 is burdened by a ROW that benefits the owner of 94 Princes Highway – Lot 1 DP 526958.

The subject site has a frontage to Ulladulla Harbour and carpark to the north and Wason Street to the south.

The surrounding area is predominantly commercial in character and the site is adjoined by commercial strip of shops, cafes, financial institutions to the west and Ulladulla Harbour and foreshore to the east. The area is a well-known tourist destination and attraction.

History

Council has long recognised the Harbour as an iconic feature of the Ulladulla Town Centre. Early commercial development has however not necessarily taken into account the physical and scenic attributes of the Harbour. In order the take advantage of the Harbour asset, Council considered developing a public walkway along the top of the embankment which was supported by the introduction of a 10m building line under the Shoalhaven Local Environmental Plan 1985, with the aim of preventing buildings from being constructed over the 10m wide strip set aside for the then future walkway.

Council approved Stage 2 (DA11/1729) of the boardwalk under delegation after resolving to support variation to the acceptable solutions of Council’s former Development Control Plan (DCP) 56 at its Meeting of 29 November 2011, Minute 1158.

The present project is recognised in Chapter S8 of Council’s current DCP.

Issues

Potential impact of Right of Way (ROW) through the proposed Boardwalk

A 15 feet (4.572 m) wide Right of Way (ROW) benefiting owners of Lot 1 DP526958 (94 Princes Highway) has been in effect since 1967 along the northern boundary of Lot 2 DP 526958. The land and ROW are shown below.

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Figure 10: Aerial photo with overlay – blue border identifies 94 Princes Highway (Lot 1) & yellow border identifies the ROW over Council land (Lot 2) benefitting Lot 1.

The land owner of 94 Princes Highway (Lot 1 DP 526958) is the beneficiary of the ROW over Lot 2 has objected to the construction of the boardwalk across the ROW.

Taking into account the ROW:

Applicant’s Submission

…..the proposed boardwalk was redesigned to span entirely across this ROW with no structural supports on the surface of the ROW. Other features to retain the utility of the ROW are as follows:

• Vertical articulation joints to retaining wall abutting car park to enable part demolition of the wall for ROW access as/if required.

• Removal of mass masonry walls to support boardwalk structure replaced by pedestals supported by piling for ROW access as/if required in the future.

• Pedestals sitting on top of piling to mitigate any interference with ROW.

• Boardwalk positioned directly above ROW designed to be removable via crane as/if required in the future.

These joints and lack of structural supports within the ROW would retain the provision of access over Lot 2 DP 526958 and allow any future uses of the ROW by owners of Lot 1 DP526958.

Discussion

The terms of the ROW permit the owners of Lot 1 from time to time ‘full and free right…to pass and repass with or without vehicles through or over the land shown in Lot 2 DP 526958’.

Existing topography, vegetation and structures within the site of the ROW currently prevent vehicular access from practically occurring.

The steepness of the land adjoining Lot 1 DP 526958 means significant earthworks and retaining structures would likely be required to facilitate any form of vehicular access.

It is also noted that Crown Lands has refused to grant any ongoing agreement such as an easement to provide a right of way between the existing ROW and the public road. The former Land and Property Management Authority (Crown Lands) provided a letter to council (D23/206841) for the original stage of the boardwalk (DA11/1729) and made the following comment in relation to the ROW benefitting the owners of Lot 1 DP526958 advising that:

Crown Lands issued land owners consent for the stage 2 application on the proviso that while Crown Lands fully supports the establishment of the proposed walkway, it does not support the establishment of private interest legal access rights across and burdening the foreshore Crown reserve.

The Crown land adjoining the harbour is reserved for the public’s use and enjoyment and is a high use visitation area. It is therefore considered inappropriate to burden this reserve with any future easement(s) authorising private access rights that has the potential to impact on the public’s use and enjoyment of the reserve and that may also limit the future land use opportunities of this valuable public asset.

The public’s use of this area of the reserve is already impacted by various physical constraints and the authorising of an additional constraint on the land for a private benefit is not justifiable as being in the public interest. The management of vehicle movements and parking in the whole harbour area has already been identified as an issue that will require ongoing review as public visitation levels continue to increase.

Whilst the ROW includes both vehicular and pedestrian access, having regard to the topography and other elements of the site and site surrounds, vehicular access is practically, challenging and not readily available.

Since the introduction of the ROW in 1967 there does not appear to have been any vehicular access formed or traversed from Lot 1 DP DP526958 through lot 2 DP526958 to the harbour reserve. Aerial images within the s4.15 assessment report (Attachment 1) suggest that the ROW over Lot 2 DP526958 does not appear to have been used for vehicles over the passage of time for at least the past 30 years.

Observing the topographical constraints and the terms of the ROW, the construction has been designed in a manner, that if access was warranted, it would not prevent it, albeit that a part of the boardwalk would require removal.

Planning Assessment

The DA has been assessed under section 4.15 of the Environmental Planning and Assessment Act 1979. Please refer to Attachment 1.

Policy Implications

Council’s Conflicts of Interest Policy POL22/149

Council’s Conflicts of Interest Policy- Dealing With Development Applications Lodged by Council Staff, Councillors and Council (CoIP) POL22/149 was adopted on 20 September 2022. This application was lodged prior to the adoption of this Policy.

Part 4 of the (CoIP) defines council related development to mean development for which the Council is the applicant developer (whether lodged by or on behalf of Council), landowner, or has a commercial interest in the land the subject of the application, where it will also be the regulator or consent authority.

Comment

The elevated boardwalk application (DA22/1716) was lodged prior to adoption of (CoIP) on 24 June 2022. The application was lodged by a Council staff member on behalf of the City Futures Group over community land owned by council and a leased crown parcel.

Given that the application fits the definition of Council related development, the (CoIP) applies to the development and must be considered by Council prior to determination. Given that the application was lodged prior to the current policy coming into effect, no formal management statement was prepared. However, the following strategies concerning the assessment and determination have been applied:

· Assessment staff (City Development) are not part of the project team (City futures & City Services)

· The Project Team are blocked from DA file access in Council’s electronic records management system

· Determination of the DA is to be carried out by the full Council in accordance with s47E of the Local Government Act 1993 for community land

Generic Community Land Plan of Management - Parks

Lot 1 DP 537126, Lot 2 DP 526958, Lots 52 & 53 DP 828221 are classified as community land and come under the Generic Community Land Plan of Management – Parks (CLP No.6 D11/116070).

Comment

The proposed boardwalk extension supports the park classification and is not inconsistent with the plan of Management.

Consultation and Community Engagement:

Four (4) public submissions were received in relation to Council’s notification of the development. Three (3) were objections to the development, two (2) of which were objections from the same owner. One was in support of the development.

The notification was made in accordance with Council’s Community Consultation Policy with letters being sent within a (120)m buffer of the site and was notified in the Milton Ulladulla Times Newspaper from 6 July 2022. The notification was for a 2 week period.

Summary of Key Concerns

Issue

The boardwalk extension will breach the legal right of way (ROW) covenant that benefits 94 Princes Hwy.

Comment

Based on legal advice, the applicant has redesigned the proposed development to allow unobstructed pedestrian access from the public carpark and ROW to the rear of Lot 1 DP 526958.

Issue

The boardwalk extension will restrict use of the Legal ROW.

Comment

The boardwalk would not restrict vehicular access either immediately or long-term in the area of proposed boardwalk. Vehicle access is already precluded due to the terrain and lack of vehicle accessible track/road.

Pedestrian access to the ROW in the vicinity of the proposed boardwalk will be restricted during construction for safety reasons. In the long-term there would be no additional restrictions and access to and from the ROW would be greatly increased due to the stairs incorporated into the redesigned plans.

Issue

Boardwalk extension elements encroach into legal ROW.

Comment

The land in which the part of the ROW is located remains in Shoalhaven City Council (SCC) ownership. SCC can manage the land in accordance with the Local Government Act 1993 and undertake developments and activities with appropriate consents under the Environmental Planning and Assessment Act 1979. This includes placement of piles, retaining walls, landscaping, and subsurface drainage if it does not affect pedestrian access to and from the right of way. The redesigned plans maintain pedestrian access to and from the ROW. The piles will be set outside the ROW.

The beneficiaries of the ROW do not have to support the boardwalk structure as the land of the ROW is owned by SCC, and SCC is therefore responsible for the management of structures on the ROW. Refer to Development Engineers referral comments and legal advice.

Issue

Council proposes unauthorised works on 94 Princes Highway.

Comment

Plans have been redesigned moving the retaining wall and associated subsurface drainage outside 94 Princes Highway. Extracts of the relevant revised plans below:

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Figure 11: Revised section 2 plan

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Figure 12: Revised Section 3 plan

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Figure 13: Revised retaining wall type 1

Architect representing owners of 11-25 Wason Street

Issue

“We propose any future development of our site will likely feature a forecourt set at RL 10.2…. With this in mind we raise the following:

“1. We do not object to the plan configuration of the walk-way design in its current form however we do request that construction detailing takes into consideration the possible removal of the inland handrail to permit integration with future development and that council is supportive of infilling the gap between the council boardwalk and top of the adjoining bank.”

Comment

There is no proposed development (DA) of these lots. Council can only assess this application against the existing constraints of the land and any development applications approved or submitted and yet to be determined for the adjoining land. Council cannot assess the boardwalk application against a hypothetical future application until such time that a DA is submitted.

Issue

‘We do not object to the plan configuration of the walk-way design in its current form however we do request that construction detailing takes into consideration the possible removal of the inland handrail to permit integration with future development and that council is supportive of infilling the gap between the council boardwalk and top of the adjoining bank”

Comment

The boardwalk has been designed to accessibility standards and to be adaptable allowing potential connection with these allotments into the future. However, Council does not commit to being supportive of infilling the gap between the Council boardwalk and top of the adjoining bank. This would be subject of a separate development application made by the landowners to the consent authority. Any future application for connection to the boardwalk if approved will be assessed on the merits of the case and relevant Geotech assessment.

Issue

‘We recognize the walkway is set level and lower than our preferred forecourt level for the majority of our frontage and we support this feature. The walkway rises in elevation off the eastern aspect of our land and whilst the ramping is generally acceptable we do recognize that at present there appears no provision for A51428.1 compliant access to our potential forecourt level of RL10.2. As such we request provision for a 1200mm wide access point near the viewing platform so that any future development of Lot 51 may incorporate a level access point to the walkway.”

Comment

There is no proposed development for these lots.

The boardwalk has been designed to accessibility standards. It also has been designed to be adaptable with potential connection with these allotments in the future (subject to development consent). There are numerous 1.2 metre wide level landings in the vicinity of the subject lots at RL 10.6 and 9.67. Post centres are 1.5 metres separation and have removable panels therefore allowing for the 1200mm wide access in the future.

Issue

“The configuration of the walkway following the council boundary rather than the landform, it will become significantly elevated from the ground below. Indeed, the South-east corner the walkway and viewing platform will be some 6-7m above natural ground and less than 3m from the drive aisle kerb line of the carpark. The walkway should address the following;

a. Appropriate traffic barriers to prevent damage to the structure from trucks and cars at foreshore level.

b. Screen planting should be restricted in a mature growth height being not taller than the walkway level so as to preserve views of the harbour from adjoining sites.

c. Security provisions are incorporated to prevent any anti-socially activity along and under the walkway

d. In order to further activate the walkway we believe it would be appropriate to add a further pedestrian access point from the walkway to the foreshore level from the mid-way viewing platform. We believe this will significantly benefit activation.”

Comment

a. The structure will be adequately protected at the foreshore level by a 600mm high concrete retaining wall and at least 1.5 m offset from the retaining wall comprising an earthen embankment.

b. The proposal will replace some trees lost as a result of the development, provide shade, soften of the structure from the harbour, and provide filtered views along the boardwalk with unimpeded clear views at lookout locations.

c. Lighting will be provided. Activating the area will also increase passive surveillance also assisting in deterring antisocial behaviour. This is an improvement to the existing situation.

d. The revised plans (uploaded onto the Planning Portal on 14 December 2022) do provide an additional pedestrian access point from the boardwalk to the foreshore.

Issue

“We note that the design features landscaped curtilages either side of the proposed pedestrian crossing at Wason Street. The geometry of the western planter is of particular concern to us as this is adjacent the lowest point of Lot 51 and will likely be the position of a driveway crossing to the basement of any future development of our site (in order to minimize ramping etc.)

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Figure 14: Marked up extract of the proposed planter on Wason Street

We request that council either; a. modifies the geometry so as not to overlap the Lot 51 eastern boundary alignment or b. Will permit future modification of the curtilage to allow a new drive crossing adjacent from Lot 51

Comment

There is no current DA before Council.

The landscape curtilage could be modified by proponents of any future development on Lot 51 subject to development consent and s.138 (Roads Act 1993) approval. Any future development driveway access to Lot 51 will be assessed against the relevant planning requirements in play at the date of lodgement of such DA.

Issue

“IMPORTANT NOTE: We wish to also draw to your attention the current DCP imposes envelope controls on adjoining land predicated on the assumption of a walkway following the top of the natural landform bank. This will obviously be superseded by the Council proposed walkway, and we request the DCP is amended to reflect setbacks relating to the proposed walkway alignment and levels. We would like to stress the landowners would be very keen to see the foreshore activated and initiate development of their land which forms a significant part of the Harbour Triangle Precinct. Due to the restrictive nature of development controls incorporated in the current DCP, it is not possible to achieve a viable / feasible development given the network of public access requirements, heritage curtilage, setback and height controls affecting the site. (Please refer to figure 1) Thus a sustainable design solution has evaded the development team for over 10 years.”

“Whilst the walkway may well provide access along the escarpment, the lack of a "destination" provided by a substantial development "feeding the walkway" is missing. Without addressing the restrictive design controls placed on adjoining land we fear the measures will be futile. We have made a lengthy submission to council in relation to the DDCP addressing the impediments to development and trust council will consider our submission carefully. In our submission we offer that a relaxation of height controls enabling capitalization of the permissible (or increased) FSR would make development far more attractive and solve the vexed walkway saga. We remain open to dialogue with council to address the current development impasse and look forward to further development of the Development Control Plan to alleviate impediments to successful development of the HTP.”

Comment

Whilst the applicant for the boardwalk is Council, the applicant and application process is independent of any DCP review. The applicant, in this instance, is not in a position to commit to DCP changes as.

Financial Implications:

The Ulladulla Boardwalk extension is fully funded and supported by a significant State Government grant.

Any delays in determining the application may have an impact on the grant allocation for the project.

There may also be financial implications to the project if the matter were to be litigated. See below.

Legal Implications

A section 8.2 review and / or an appeal with the land and Environment Court are possible if the application is refused. Under some circumstances, third parties may have a right to appeal Council’s decision to the LEC. It is unknown if objectors would choose to pursue legal action.

Summary and Conclusion

The report and the attached s4.15 Assessment Report (Attachment 1) provides an assessment of the proposal for the demolition of existing pavement and stairs down to the Harbour from Wason Street, removal of existing A-frame and weigh station for the Fishermen’s Clubhouse, removal of trees and vegetation within the construction envelope and construct extension to the Ulladulla Harbour elevated pedestrian boardwalk – Stages 3 to 5 over Lot 1 DP 537126, Lot 2 DP 526958 Princes Highway, Lots 52 & 53 DP 828221 and Part Lot 7 Sec 17 DP 759018 Wason Street, Ulladulla.

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

This application has been subjected to a detailed analysis of the issues raised in the submissions which have been addressed in this report.

Having regard to the assessment and noting that the proposal is in the public interest, the DA is recommended for approval subject to the conditions contained in Attachment 3 of this report.

Directorate	Name	Designated Position Start Date	Returned
City Services	David Wilson	20/04/2023	01/05/2023
City Performance	Christina Denton	26/04/2023	02/05/2023
City Development	Thomas Smith	01/05/2023	08/05/2023
City Development	Michael Graham	17/04/2023	18/05/2023
City Performance	Katie Buckman	09/05/2023	18/05/2023
City Services	Edward Sierra	15/05/2023	16/05/2023
City Lifestyles	Carissa Glynn	17/04/2023	18/05/2023
City Services	Kaylene Barrie	27/04/2023	24/05/2023

Item	Issue / Proposed Amendment	Location
1	Add an additional clause in Part 4 of the LEP or adjust the existing clause 4.1AA (Minimum subdivision lot size for community title schemes), to maintain consistency and ensure that strata subdivision in the zones in the right column is not less than the minimum lot size shown on the lot size map in relation to the land.	All land in the following land use zones: · RU1 Primary Production · RU2 Rural Landscape · RU4 Primary Production Small Lots · R5 Large Lot Residential · C2 Environmental Conservation · C3 Environmental Management · C4 Environmental Living
2	Amend clause 7.11 (Essential services) of the LEP to insert an additional requirement that ensures that development consent is not granted to development that cannot provide suitable vehicular access.	All land.
3	Amend heritage item description in LEP Schedule 5 to reflect current street address.	Heritage item 159; 61 Tannery Road, Cambewarra Village. Former schoolmaster’s brick residence and garden.
4	Amend Archaeological area description in LEP Schedule 5 to reflect current Lot/DP number.	Archaeological area A1; 1 Waratah Street, Bendalong. Red Head timber mill and wharf.

Tenderer	Location
Conex Group Pty. Ltd.	Seven Hills NSW
Kingsline Pty. Ltd.	Greenfield NSW
NSW Kerbing Pty. Ltd.	Kurnell NSW
Vogue Landscape & Design Pty. Ltd.	South Nowra
MGC Civil Works	Tapitallee

Table 1 – Summary of Requests for Plaques
	Infrastructure Request	Preferred Location	Consistent With Policy (POL22/57)
1	New plaque on existing picnic table	Boomer Crescent Reserve, Kioloa	Yes
2	New plaque on existing memorial seat (second family member)	Palm Beach Reserve, Sanctuary Point	Yes
3	New plaque on existing picnic table	Holden Street Reserve, Vincentia	Yes
4	New plaque on existing picnic table	Plantation Point Reserve, Vincentia	Yes