Agenda of Ordinary Meeting - Monday, 26 February 2024

Ordinary Meeting

Meeting Date: Monday, 26 February, 2024

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

Time: 5.30pm

Membership (Quorum - 7)

All Councillors

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

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

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

Statement of Ethical Obligations

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

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

Agenda

1. Acknowledgement of Country

2. Moment of Silence and Reflection

3. Australian National Anthem

4. Apologies / Leave of Absence

5. Confirmation of Minutes

· Ordinary Meeting - 12 February 2024

6. Declaration of Interests

7. Presentation of Petitions

8. Mayoral Minute

9. Deputations and Presentations

10. Call Over of the Business Paper

11. A Committee of the Whole (if necessary)

12. Committee Reports

CL24.36....... Report of the Homelessness Advisory Committee - 1 February 2024.......... 1

HT24.2........ Homelessness Advisory Committee - Reduce Quorum

CL24.37....... Report of the Aboriginal Advisory Committee - 6 February 2024.................. 8

AA24.6........ Additional Item - Proposed Road Closure - Part Comberton Grange Road Comberton - Further Information Required and Report Back - Recommend to Ordinary Meeting 26 February 2024

13. Reports

City Performance

CL24.38....... Report Back - Question on Notice - Consultants and Contractors................ 9

CL24.39....... Child Safe Strategy and Statement of Commitment to Child Safety........... 13

CL24.40....... Investment Report - January 2024............................................................... 22

CL24.41....... Budget Strategies and Parameters - 2024/25.............................................. 27

City Futures

CL24.42....... Nebraska Estate, St Georges Basin - Planning Proposal (PP) Options..... 32

CL24.43....... Shoalhaven River Festival 2023 Review..................................................... 42

CL24.44....... Australian Liveability Census 2023 - Final Reports..................................... 64

City Services

CL24.45....... Proposed Road Closure - Part Buchan Street Mollymook.......................... 68

CL24.46....... Tenders - Full-Service Pavement Rehabilitation - Yalwal Road, (Ch2.215-3.9km)...................................................................................................................... 73

CL24.47....... Public Amenities Cleaning - External Contractor Review............................ 75

CL24.48....... Exemption to Tender - Coomee Nulunga Boardwalk - Warden Head Ulladulla 111

City Lifestyles

CL24.49....... Request for Plaques and Memorials.......................................................... 114

CL24.50....... Application for Council Endorsement to Expand the Boundary of the Kangaroo Valley Community Consultative Body................................................................... 116

Shoalhaven Water

CL24.51....... Acquisition - 78 Railway Street Bomaderry - Lot 1 DP 203965................. 120

14. Notices of Motion / Questions on Notice

Notices of Motion / Questions on Notice

CL24.52....... Notice of Motion - Bomaderry Lions - Storage Access - Thurgate Oval Bomaderry.................................................................................................................... 121

CL24.53....... Notice of Motion - Shoalhaven Cancer Care Centre - Operational Funding 124

CL24.54....... Notice of Motion - Creation of Asset Protection Zone over Lot 30 DP 1285758, Catalina Place and Lot 29 DP 1282389 Wirraway Boulevard, Badagarang 125

CL24.55....... Notice of Motion - Calling on Greater Financial Support from the NSW Government for Local Pensioners................................................................................... 131

15. Confidential Reports

Reports

CCL24.4...... Tenders - Full-Service Pavement Rehabilitation - Yalwal Road, (Ch2.215-3.9km)

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

There is a public interest consideration against disclosure of information as disclosure of the information could reasonably be expected to reveal commercial-in-confidence provisions of a contract, diminish the competitive commercial value of any information to any person and/or prejudice any person’s legitimate business, commercial, professional or financial interests.

CCL24.5...... Acquisition - 78 Railway Street Bomaderry - Lot 1 DP 203965

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

Ordinary Meeting – Monday 26 February 2024

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CL24.38 Report Back - Question on Notice - Consultants and Contractors

HPERM Ref: D24/1093

Approver: Kerrie Hamilton, Director City Performance

Reason for Report

The reason for this report is to respond to Questions on Notice which were brought to Council on 27 November 2023 (CL23.436) to review Shoalhaven’s engagement of Contractors and Consultants.

Recommendation

That Council receive the detailed report on Consultants and Contractors in response to CL23.436, Question On Notice from the 27 November 2023 Ordinary Council Meeting.

Options

1. Receive the report for information.

2. Request more information.

Background

Question on Notice

Given the recent community concern around the misuse of State and National Consultancy firms, my questions tonight go to the ability of Shoalhaven Council to guarantee our rate payers are getting value for money out of Consultancies and outsourcing.

Generally, the use of consultants and contractors in the public service has grown immensely in the last few years. It seems that at the State level and Federally some consulting firms (all of the big 4) seem to be leveraging the information given to them in contracts with the Government to increase their wealth by sharing that knowledge with selected clients.

This is unacceptable conduct. Some confidential Government initiatives have been shared illegally with other firms by staff members from these consulting organisations. Those organisations who are clients of the consultants are setting themselves up for windfall profits based on information they shouldn’t have. It seems to be a business model that has been adopted across the consultancy industry.

Questions

1. What is the difference in our Council between consultants and contractors?

2. Is the CEO aware of any data and information from Shoalhaven City Council being used by consultants/contractors for purposes outside of which they were contracted for?

3. If this were to happen what is the procedure Council would undertake to mitigate the damage?

4. Are there any examples where Shoalhaven Council has become aware of consultants/contractors that involve the unauthorized release or use of SCC information? If so what were the consequences?

5. What percentage of contracts or consultancies are completed on time and to the cost without adjustments? What are the grounds and extent of contract adjustments?

6. What is the number and value of consultants / contractors used in the last three financial years by each directorate?

7. What are the repeat tasks across three or more FYs that SCC hires consultants/contractors for, by directorate?

8. What are the top 10 consultants and contractors that SCC outsource to by total contract(s) value, by directorate?

9. Lastly, What are we doing to ensure we have best practice options on management of contractors and consultants in line with other councils in NSW?

Shoalhaven ratepayers want to know that our council is doing everything it can to control costs in this difficult budgetary time. This knowledge will allow Councillors, staff and community members the opportunity to scrutinize some of Councils expenses that are less apparent on the balance sheet.

Summary

The Council engages consultants when there’s a requirement for specialised knowledge or skills not available within the Council’s talent pool. Contractors are brought in for short to medium-term projects where permanent employment isn’t necessary. Both consultants and contractors are remunerated at market rates as per Council policy.

All Council contracts include a confidentiality clause aimed at safeguarding Council’s proprietary and sensitive information from disclosure by consultants and contractors.

The confidentiality clause is in place to prevent Council’s intellectual property or proprietary processes from being disclosed to the public or competitors. We firmly believe that our contracts serve as a robust mechanism to address any breach of information. Our commitment remains to regularly review and enhance our legal contracts to ensure continued protection of the Council.

Response to each of the above 9 questions is provided as follows.

Question 1

What is the difference in our Council between consultants and contractors?

Whilst the Office of Local Government (OLG) doesn’t provide a clear definition, the general consensus is that a consultant is defined as a person or organisation engaged under contract on a temporary basis to provide recommendations or professional advice to assist decision-making by management. The skills and knowledge of a consultant is usually unique and unable to be found within Council’s talent pool. Generally, it is the advisory nature of the work that differentiates a consultant from other contractors.

Question 2

Is the CEO aware of any data and information from Shoalhaven City Council being used by consultants/contractors for purposes outside of which they were contracted for?

Question 3

If this were to happen what is the procedure Council would undertake to mitigate the damage?

Our contracts include a confidentiality clause, so breaching confidentiality means breaching the contract itself. The severity of the breach depends on the data involved and its potential impact on the Council. For instance, inappropriate use of private or personal information would typically require reporting under the Privacy Act.

Regardless of the situation, we would conduct a thorough investigation, report as necessary to oversight agencies, and consider any recommendations stemming from the investigation. These recommendations may involve taking action under contractual provisions to address misconduct. Additionally, they might lead to changes in policy, processes, or educational initiatives.

Question 4

Are there any examples where Shoalhaven Council has become aware of consultants/contractors that involve the unauthorised release or use of SCC information? If so what were the consequences?

No, there has not been any unauthorised release or use of SCC information.

Question 5

What percentage of contracts or consultancies are completed on time and to the cost without adjustments? What are the grounds and extent of contract adjustments?

It would be a substantial task to analyse data regarding the percentage of contracts or consultancies completed on time and within the initial cost parameters without adjustments. The success rates of contract completion can vary significantly across different directorates, and types of projects. The grounds and extent of contract adjustments also depend on various factors such as:

1. Scope Changes: Modifications to the initial project scope can lead to adjustments in contracts. Changes in project goals, requirements, or objectives often necessitate adjustments to the contract terms.

2. Unforeseen Circumstances: External factors like market changes, regulatory adjustments, or unexpected events can impact project timelines and costs, prompting contract adjustments.

3. Quality Control Issues: If there are issues with the quality of work delivered, it might require adjustments in the contract terms to rectify or redo certain aspects of the project.

4. Agreed Upon Variations: Sometimes, contracts include provisions for adjustments, variations, or change orders. These could include contingencies for cost and timeline adjustments.

To get accurate data on the percentage of contracts or consultancies completed without adjustments and understand the grounds and extent of contract adjustments, it would be necessary to analyse all records and reports maintained by the Council and this would be a substantial task and include the analysis of internal project management data, contract documentation, and performance reports. With the implementation of the new Project Management Office, which we know was necessary, this data analysis will become more easily available in time. For now, we can assure the public that our projects are managed by skilled Project Managers, skilled staff and supported by Finance Business Partners.

Question 6

What is the number and value of consultants / contractors used in the last three financial years by each directorate?

The report contains over 10,000 entries with information that is commercial in confidence. If you would like to review please refer to the Director City Performance. A summary of regularly used consultants/contractors by monetary value has been supplied under questions 7 and 8.

Question 7

What are the repeat tasks across three or more FYs that SCC hires consultants/contractors for, by directorate?

The top 3 repeat tasks by contractors were for:

1. Natural Disasters

2. Waste

3. Roads / Construction

Question 8

What are the top 10 consultants and contractors that SCC outsource to by total contract(s) value, by directorate?

Consultant/Contractor	Directorate
Symal Infrastructure Pty Ltd	City Services
Suez Recycling & Recovery Pty Ltd / VEOLIA	City Services
Roadworx	City Services
Cleary Bros (BOMBO) P/L	City Services
HISWAY P/L	City Services
Jirgens Civil	City Services
Stabilised Pavements of Australia	City Services
Ali Civil Pty Ltd	City Services
Utilstra	City Services
CBK Constructions	City Services

Question 9

What are we doing to ensure we have best practice options on management of contractors and consultants in line with other councils in NSW?

We follow our adopted Procurement Policy, the OLG framework for procurement, and the internal audit of our procurement practices.

Ordinary Meeting – Monday 26 February 2024

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CL24.39 Child Safe Strategy and Statement of Commitment to Child Safety

HPERM Ref: D24/23197

Department: People & Culture

Approver: Kerrie Hamilton, Director City Performance

Attachments: 1. Child Safe Strategy and Statement ⇩

Reason for Report

The reason for this report is to provide Council an update on the progress of the development of the Child Safe Principles/Standards, and seek Council’s endorsement of the of:

1. The Child Safe Strategy

2. The Statement of Commitment to Child Safety

This is the first step in working towards becoming a Child Safe organisation and meet obligations under the Children’s Guardian Amendment (Child Safe Scheme) Bill 2021 and comply with the requirements of the Office of Children’s Guardian.

Recommendation

That Council:

1. Endorse the Child Safe Strategy and the Statement of Commitment to Child Safety.

2. Subject to the endorsement of the Strategy and Statement, publicly circulate both documents through social media and other public forums as an indication of public commitment and accountability.

Options

1. As recommended.

Implications: The Child Safe Strategy and Statement of Commitment to Child Safety will be publicly circulated and the development and implementation of the Child Safe indicators will continue to work towards the outcome of becoming a Child Safe organisation.

2. Decline the Strategy and Statement of Commitment to be publicly circulated.

Implications: Whilst the Office of Children’s Guardian (OCG) has not set timeframes for Council’s to undertake the work involved in implementing the Child Safe Principles/Standards, Councils must be able to show that they are taking action to become Child Safe. The Children’s Guardian Amendment (Child Safe Scheme) Bill 2021 gives the OCG strong powers to compel Councils to comply if they cannot demonstrate consistent progress.

Background

In February 2019, the Council of Australian Governments (COAG) endorsed the National Principles for Child Safe Organisations (National Principles).

In response to the National Principles, the NSW government enacted the Children’s Guardian Amendment (Child Safe Scheme) 2021. The Scheme enables the NSW Office of the Children’s Guardian (OCG) to audit organisations and identify gaps in systems and processes. The Office of the Children’s Guardian published ‘A guide the Child Safe Standards’ which outlines details of each of the National Principles as Standards and guidance on way that organisations know they are meeting the standards in the following areas for each:

· Applying the Standard

· Documenting the Standard

· Indicators of success

The National Principles/Standards for Child Safe Organisations are:

1. Child safety and wellbeing is embedded in organisational leadership, governance and culture

2. Children and young people are informed about their rights, participate in decisions affecting them and are taken seriously

3. Families and communities are informed and involved in promoting child safety and wellbeing

4. Equity is upheld and diverse needs respected in policy and practice

5. People working with children and young people are suitable and supported to reflect child safety and wellbeing values in practice

6. Processes to respond to complaints and concerns are child focused

7. Staff and volunteers are equipped with the knowledge, skills and awareness to keep children and young people safe through ongoing education and training

8. Physical and online environments promote safety and wellbeing while minimising the opportunity for children and young people to be harmed

9. Implementation of the national Child Safe Principles/Standards is regularly reviewed and improved

10. Policies and procedures document how the organisation is safe for children and young people

Shoalhaven City Council needs to meet the relevant legislative obligations under the Children’s Guardian Amendment (Child Safe Scheme) Bill 2021 as it provides direct services to children through libraries and aquatic centres, as well as indirectly through activities such as events and community engagement.

The first step in Council meeting its obligations of the National Principles/Standards is to endorse the Child Safe Strategy and the Statement of Commitment to demonstrate Council’s commitment to becoming a Child Safe organisation.

The Child Safe Strategy will help drive the development of a Child Safe culture and build safeguarding capacity across the Council, services, and activities by providing:

· Support in the practical and consistent application of the Principles/Standards

· Opportunities to identify and improve children’s safety and wellbeing

· Clear direction and guidance to address risk and respond to harm proactively and effectively

· A clear explanation of the roles and responsibilities, legal/policy obligations, and best practice for effective safeguarding

· Increased community and family engagement by reducing barriers

· Higher levels of child safety and wellbeing amongst the community

The Strategy includes the following key Child Safe indicators that will be developed and implemented:

1. Statement of Commitment to Child Safety

2. Child Safe operational framework which will include:

Part 1: Overview – What is the Child Safe Framework?

Part 2: Prevention - screening, recruitment, induction, training and educating Council and the community

Part 3: Recognising indicators of abuse and supporting disclosures

Part 4: Responding to and reporting child safety reports and concerns

Part 5: Information sharing and record keeping

Part 6: Redress and support for victims and survivors of abuse

3. Revision of human resources recruitment, induction, performance review practices and policies including the code of conduct to ensure they are Child Safe

4. Establish a role and appoint a Child Safe delegate within current resources

5. Develop a Child Safe risk management and action plan

6. Develop and roll out a Child Safe training plan for staff based on the practical application of the Child Safe operational framework

7. Implement a structure of ongoing review and annual reporting

Internal Consultations

On 23 May 2023, the Executive Management Team endorsed the Strategy and Statement of Commitment.

On 8 February 2024, a Councillor briefing was held which provided Councillors with information about the Child Safe Strategy and Statement of Commitment to Child Safety.

Policy Implications

Subject to endorsement of the Child Safe Strategy by Council, the draft Child Safe Policy which supports the Child Safe Strategy will be presented to the Executive Management Team for adoption.

Financial Implications

Nil. The Child Safe Strategy to be implemented within current resources.

Risk Implications

The Child Safe Strategy includes key Child Safe indicators to be developed and implemented including the development of a Child Safe risk management and action plan.

Ordinary Meeting – Monday 26 February 2024

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CL24.40 Investment Report - January 2024

HPERM Ref: D24/50850

Department: Finance

Approver: Kerrie Hamilton, Director City Performance

Attachments: 1. Shoalhaven Monthly Investment Report - January 2024 (under separate cover) ⇨

Reason for Report

The reason for this report is to inform the Councillors and the Community on Council’s investment returns. The report also ensures 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 January 2024.

2. Note that Council’s total Investment Portfolio (excluding the Long-Term Growth Fund) returned 4.88% per annum for the month of January 2024, outperforming the benchmark AusBond Bank Bill Index (4.44% pa) by 44 basis points (0.44%).

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

Options

1. The report on the Record of Investments for the period to 31 January 2024 be received for information.

Implications: Nil

2. Further information regarding the Record of Investments for the period to 31 January 2024 be requested.

Implications: Nil

3. The report of the record of Investments for the period to 31 January 2024 be received for information, with any changes requested for the Record of Investments to be reflected in the report for the period to 29 February 2024.

Implications: Nil

Background

Please refer to the attached monthly reports provided by Council’s Independent Investment Advisor, Arlo Advisory Pty Ltd (formally Imperium Markets Pty Ltd).

Portfolio Return

The investment returns (excluding Long-Term Growth Fund) were a stable 4.88% p.a. in January 2024, outperforming the benchmark AusBond Bank Bill Index (4.44% p.a.) by forty-four basis points (0.44%).

The overall portfolio (excluding cash) returned a positive 7.57% p.a. for the month of January 2024, outperforming the benchmark AusBond Bank Bill Index return by 3.13% p.a.

The RBA decided to leave the cash rate unchanged at 4.35% at its first board meeting of 2024 and indicated either cuts were unlikely in the immediate term or a further increase in rates cannot be ruled out.

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 outperformed and returned a positive -$304,329.72 or 1.42% (net actual) for the month of January 2024.

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 – January 2024

Table 1 below, shows the interest earned for the month of January 2024.

Table 1- Interest Earned for the Month of January 2024

Fund	Monthly Revised Budget $	Actual Earned $	Difference $
General	259,572	357,013	97,441
Water	87,989	194,165	106,176
Sewer	56,904	75,161	18,257
Total excluding Long-Term Growth Fund	404,465	626,339	221,874

The interest earned for the month of January, excluding changes in the fair value of the TCorp Long-Term Growth Fund was $626,339 compared to the monthly revised budget of $404,465.

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	3,056,247	2,128,191	69.63%
Water	1,036,000	1,157,437	111.72%
Sewer	670,000	448,040	66.87%
Total excluding Long-Term Growth Fund	4,762,247	3,733,668	78.40%

The cumulative interest earned for the year (July to January), excluding the change in fair value of TCorp Long-Term Growth Fund was $3,733,668 which is 78.40% of the current full year revised budget.

Graph 2 (3 separate graphs) below, illustrates the cumulative interest earned for the year for each fund (General, Water and Sewer) against budget:

A graph showing the growth of a company

Description automatically generated Graph 2 - Cumulative interest earned for the year for each fund against budget. A graph of water fund

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Cash and Restricted Assets, Restricted Asset Movements and Liquidity Indicators

At the time of preparing this report, Finance was in the process of finalising the December quarter budget reviews. Accordingly, the Cash and Restricted Assets, Restricted Asset Movements and Liquidity Indicators sections have necessarily been excluded from the January Investment Report.

As at 30 June 2023, Council had spent $35M in grants spent in advance. In accordance with Council's adopted Liquidity Contingency Plan, internal restrictions were utilised to fund the grants spent in advance.

Since 30 June 2023 and up to 31 January 2024, Council received $22.2M of the outstanding grants spent in advance balance.

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: 21 February 2024

Ordinary Meeting – Monday 26 February 2024

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CL24.41 Budget Strategies and Parameters - 2024/25

HPERM Ref: D24/67803

Department: Finance

Approver: Kerrie Hamilton, Director City Performance

Reason for Report

To seek adoption of the budgeting strategies and economic parameters to guide the preparation of the draft 2024/25 Budget.

Recommendation

That Council adopt the following budgeting strategies and guiding economic parameters for the preparation of the initial Draft of the 2024/25 Budget to be considered at future Budget Workshops:

1. Principal budgeting strategies:

a. The budget will not result in an unrestricted cash deficit

b. Prioritise funding in the following order:

i. Provide sufficient funding for all continuing services

ii. Continue Council’s commitment to asset renewal

iii. Continue a program of capital improvements to address historic budget shortfalls

c. Maintain or improve Council’s financial and asset management performance indicators reported in the annual financial statements

d. Maintain an adequate working funds balance

e. Minimise carry forwards through substantial completion and long-term planning of the capital works program

2. Economic parameters for budgeting:

a. Rates are increased by 4.5%

b. User fees and charges are increased by a minimum of 7.5%

c. Salaries and wages are increased by 3.5%, plus bonus payable, as per the Local Government (State) Award

d. Superannuation guarantee is to be increased from 11% to 11.5% in line with legislated increases

e. Materials and other expenditures increase by 5%

f. The capital works program is reduced in order to assist in the management of Council’s financial sustainability challenges and to ensure there is no reduction in Council’s unrestricted cash balance.

g. Borrowing for capital works is limited to those projects identified for loan borrowings in the AEC Financial Sustainability Review. No other loan borrowings are to be taken out unless a funding source is identified for the ongoing repayments or principal and interest.

h. Should the need arise during the year for additional funding, the following options will be considered:

i. Internal borrowing opportunities

ii. Asset rationalisation

3. Repairs to Council’s Road Network be a primary focus of the initial draft of the Capital Works Program.

4. Budget Workshops be scheduled with all Councillors in the preparation of the draft 2024/25 budget which will include consideration of any recommended re-prioritisation of capital works projects listed in the current Delivery Program and Operational Plan.

Options

1. Adopt the recommendations

Implications: Management would proceed to prepare the draft 2024/25 Budget guided by the strategies and parameters

2. Amend the recommendations

Implications: Management would proceed to prepare the draft 2024/25 Budget guided by the amended strategies and parameters and/or report back to Council on the financial impacts of the amendments

Background

Proposed Budget Strategies and Parameters

Management is seeking the adoption of the following principal budgeting strategies for the preparation of the draft 2024/25 Budget:

a. The budget will not result in an unrestricted cash deficit

b. Prioritise funding in the following order:

i. Provide sufficient funding for all continuing services

ii. Continue Council’s commitment to asset renewal

iii. Continue a program of capital improvements to address historic budget shortfalls

c. Maintain or improve Council’s financial and asset management performance indicators reported in the annual financial statements

d. Maintain an adequate working funds balance

e. Minimise carry forwards through substantial completion and long-term planning of the capital works program

The following economic parameters are recommended for adoption.

General Rates Increase

Independent Pricing and Regulatory Tribunal (IPART) has set the rate peg for the 2024-25 financial year using the new rate peg methodology. The rate peg applicable to Shoalhaven City Council for the 2024/25 year is 4.5%, consisting of:

· Base Cost Change (BCC) of 3.9%

· Superannuation adjustment of 0.4%

· ESL factor of 0.3%

· Population factor of 0%

This will generate an additional $4.24m in rate income but will be short of covering the estimated or known cost increases for 2024/25 as detailed below:

Cost Increase	$'000
Labour 3.5% + bonus payable under the Award	$3,049	Known Award increases
Materials & other expenses 5%	$3,227	Recommended increase of 5%
Insurance	$294	Known insurance premiums increase of 7.5%
	$6,570

With increases in costs likely to be greater than the rate peg it will be significantly detrimental to Council’s capacity to deliver its services and renew its infrastructure if it adopted a rate increase less than 4.5%. Please note that this recommendation is only for budgeting purposes, the rates increase will be formally set as part of the delivery program and operational plan adoption process.

Recommendation – Economic Parameter 1

Rates are increased by 4.5%.

User Fees and Charges

A recommendation from the AEC Financial Sustainability Review (recommendation 1.b) was to:

“Review the pricing for fees and charges (outside of statutory fees set by the State Government) and ensure they reflect full cost price for services, as far as it is practical to do so, without impacting significantly on access to services by the community”.

Given the increases in costs faced by Council, it is reasonable to increase user fees and changes by an amount more than the rate peg. In some instances, higher increases may be required. An assessment of impacts on utilisation and affordability will be assessed in setting the fee or charge.

Recommendation – Economic Parameter 2

User fees and charges are increased by a minimum of 7.5%.

Employee Costs

The Local Government (State) Award was negotiated prior to 30 June 2023. The Award increase for 2024/25 is 3.5%, plus eligible employees will be entitled to 0.5% of their salary (as at 30 June 2024) or $1000 from the first full pay period from 1 July 2024, whichever is greater. Further, that the superannuation guarantee is due to increase from 11% to 11.5% on 1 July 2024.

Recommendation – Economic Parameter 3

Salaries and wages are increased by 3.5%, plus bonus payable, as per the Local Government (State) Award

Recommendation – Economic Parameter 4

Superannuation guarantee is to be increased from 11% to 11.5% in line with legislated increases

Materials and Other Expenditure

Over the previous two budget cycles (2022-23 and 2023-24) material and other expenditure has been increased by less than 5%, whilst CPI and heavy construction indexes remained above 5%. This has resulted in historic over expenditures which need to be addressed in the 2024-25 budget.

Item	Dec-21	Jun-22	Dec-22	Jun-23	Dec-23
Consumer Price Index	3.50%	6.14%	7.83%	6.03%	4.05%
Other Heavy and civil engineering construction Australia	5.94%	9.06%	9.29%	5.11%	2.42%
Heavy and civil engineering construction Australia	5.61%	9.01%	9.58%	5.36%	2.65%
Road and Bridge construction	4.37%	8.77%	10.99%	6.20%	3.55%

The December 2023 annualised CPI was 4.05%. Forward projects released by the Reserve Bank of Australia indicate CPI will be 3.2% at December 2024 and 3.1% at June 2025.

Whilst the forward projections for CPI are below 5%, the historic shortfalls in Material and Other Expenditure need to be addressed. It is recommended that a 5% increase is applied to each Material and Other Expenditure item as a starting point, and then a review of the necessity of particular expenditures will be performed as part of the operational budget Councillor workshops.

Recommendation – Economic Parameter 5

Materials and other expenditures increased by a maximum of 5.0%

The Capital Budget

General Fund

The 2023/24 financial year saw a large capital budget being adopted by Council, including a significant number of projects carried forward from the 2022/23 financial year. Council is working to reduce the capital budget for 2024/25 to ensure:

· Projects committed can be delivered by the end of June 2024, reducing the amount of capital carry forwards, and

· Council acts responsibly and works within its current financial constraints

· Council does not take on any new debt which was not already factored into the draft Long Term Financial Plan (Base Case scenario) through the AEC Financial Sustainability Review

The 2024/25 financial year will be a year of consolidation with one of the budgeting strategies focusing on the minimisation of carry forwards through substantial completion of the capital works program.

Further, there will be an increased focus on renewal projects, and a significant reduction in new and upgrade projects as recommended in the AEC Financial Sustainability Review.

Recommendation – Economic Parameter 6

The capital works program is reduced in order to assist in the management of Council’s financial sustainability challenges and to ensure there is no reduction in Council’s unrestricted cash balance.

Recommendation – Economic Parameter 7

Borrowing for capital works is limited to those projects identified for loan borrowings in the AEC Financial Sustainability Review. No other loan borrowings are to be taken out unless a funding source is identified for the ongoing repayments or principal and interest.

Additional Funding

There are limited opportunities for Council to obtain other funding for its budget. In the context of the overall budget, it would be prudent for Council to consider internal borrowings, and asset rationalisation.

Recommendation – Economic Parameter 8

Should the need arise for additional borrowings, the following options will be considered first:

· Internal borrowing opportunities

· Asset rationalisation

Councillor workshops

Workshops will be held with all Councillors during the preparation of the draft operational and capital budgets including consideration of any recommended re-prioritisation of projects in the current Delivery Program and Operational Plan.

These budget workshops will be in addition to the workshops and briefings which Council resolved (MIN24.44) to take place in order to progress and monitor the outcomes of the report prepared by AEC titled Financial Sustainability Review and dated November 2023.

Financial Implications

Council is facing a difficult task in presenting a balanced Draft 2024/25 Budget to Council. Maximising opportunities to increase income, including taking up the full 4.5% rate peg, and managing inflationary impacts as outlined in the economic parameters will assist in achieving the primary strategy of presenting a budget that does not result in an unrestricted cash deficit.

Ordinary Meeting – Monday 26 February 2024

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CL24.42 Nebraska Estate, St Georges Basin - Planning Proposal (PP) Options

HPERM Ref: D23/496054

Department: Strategic Planning

Approver: Coralie McCarthy, Acting Director - City Futures

Attachments: 1. Rezoning Option Maps - Councillor Briefing ⇩

2. Tenure Resolution Feasiblity - Nebraska Rezoning Options (councillors information folder) ⇨

Reason for Report

The purpose of this report is to seek direction and endorsement to progress a Planning Proposal (rezoning) to resolve the Nebraska Estate ‘paper subdivision’ at St Georges Basin.

Recommendation

That Council:

1. Update the Nebraska Estate Planning Proposal (PP) based on Option 3.1 as outlined in this report, noting that timing will also depend on workloads generated by proponent-initiated PPs.

2. Submit the updated PP to the Department of Planning, Housing and Infrastructure (DPHI) for a Gateway determination.

3. Subject to receiving a favourable Gateway determination from DPHI, exhibit the PP package.

4. Prepare a draft site-specific chapter (Chapter N9 - Nebraska Estate) for inclusion in the Shoalhaven Development Control Plan (DCP) 2014, acknowledging that staff resources available to work on this project will depend on workloads associated with proponent-initiated PP’s and other strategic planning priorities.

Options

1. Update the Planning Proposal (PP) based on Option 3.1 and seek a Gateway determination. This is the recommended option.

Implications: This option balances the concerns raised by Councillors at the meeting on 17 July 2023 (MIN23.361) with the need to bring this complex legacy planning matter to a conclusion. The PP would facilitate 17 new dwellings on the least constrained land and rezone the more environmentally sensitive land for conservation. The tenure of the residual C2 land could potentially be resolved using the net profits from Council’s developable land, following the principle underpinning Council Policy POL23/18.

This option utilises the extensive body of work that has been completed over many years and funded by the landowners. Subject to receiving a favourable Gateway determination from the Department of Planning, Housing and Infrastructure (DPHI), community feedback would be sought on the PP and draft DCP and presented to Council for consideration. Discussions with the DPHI indicate that a local clause could potentially be utilised that requires a DCP and essential road infrastructure to be in place before development can be approved. This will enable the DCP finalisation, infrastructure, and financial planning tasks to be completed in a logical and manageable sequence, after the zoning has been resolved.

2. Progress the Nebraska Estate PP based on a different option.

Implications: An option for allowing up to 23 new dwellings was reported to Council on 17 July 2023 was not supported by Council due to a range of concerns. This report includes information on the options presented to a Councillor briefing on 28 September 2023. Further advice on the options can be provided if required.

Background

Council considered a report on the Nebraska Estate PP on 17 July 2023 that provided a range of background information. The report and its attachments can be viewed via the following links:

· Report to Ordinary Meeting 17 July 2023 (CL23.214)

· Attachment 1: Draft Planning Proposal - Nebraska Estate, St Georges Basin

· Attachment 2: Updated Constraints Summary Map (2023)

The July 2023 report sought Council’s ‘in principle’ support to restart the PP process for the Estate based on an updated version of a concept plan adopted by Council in 2016.

Council resolved to:

“… defer consideration … to enable Council to be fully briefed on:

1. The possible expansion of the proposed C2 Environmental Conservation zone to the whole of the subject land, or parts of it, to afford greater protection to the Estate’s environmental values and Jervis Bay wildlife corridors, and

2. Minimise the creation of areas of isolated development in bushland that are at risk from bushfire and may incur large infrastructure maintenance costs per capita.”

The resolved briefing was held on 28 September 2023 and attended by six Councillors. The following options were presented and discussed at the briefing:

1. Option 1 – enabling up to potentially 23 new dwellings and rezoning the Estate to a mix of C2 Environmental Conservation, C4 Environmental Living and R5 Large Lot Residential. Based on 2016 concept plan with some minor changes/adjustments. See Figure 1.

2. Options 2.1 or 2.2 - no new dwellings, rezoning the whole Estate to C2 (Option 2.1) with a variation of rezoning the cleared land west of Waterpark Road to R5 (Option 2.2).

3. Options 3.1 and 3.2 - reduced overall development footprint enabling up to either 17 new dwellings (Option 3.1 – see Figure 2) or 16 dwellings (Option 3.2) and rezoning the Estate to a mix of C2, C4 and R5.

Options 1 and 3.1 are shown below in Figures 1 and 2 respectively given Councillors’ interest in these options at and following the briefing.

Maps of all options are provided in Attachment 1.

Figure 1: Option 1 concept plan (main) and zoning (inset) – 23 dwellings

A map of a land with red circles

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Figure 2: Option 3.1 concept plan (main) and zoning (inset) – 17 dwellings

Follow-up information was circulated following the briefing to Councillors on 27 October 2023, including a preliminary feasibility assessment of applying the tenure resolution model which underpins the existing Council Policy POL23/18 – essentially using the net profits from the sale of Council’s developable land to purchase (voluntary purchase only) and manage the residual C2 land.

The feasibility of resolving the tenure of the residual C2 land for each option is ranked from highest to lowest below.

1. Option 1 is the most feasible (even if 100% of the residual C2 land is acquired).

2. Option 3.1 is the next most feasible to resolve tenure. An acquisition price of around $30,000 per lot would enable >75% of residual C2 properties to be acquired and managed.

3. Option 3.2 is less feasible than Option 3.1 but still potentially viable.

4. Option 2 (2.1 and 2.2) there would be no ability to resolve land tenure. Ownership would become more fragmented over time (if or when lots within multiple landholdings are individually sold).

The feasibility information circulated to Councillors on 27 October is available in the Councillors information folder.

Internal Consultations

Options 2 and 3 were developed in consultation with Council’s Land Management team. POL23/18 (Voluntary Acquisition – Residual C2 Environmental Conservation Land – Jerberra & Nebraska Estates) was developed in consultation with Councils finance, property, and land management staff.

External Consultations

Key NSW Government agencies have been consulted on the planning options over the years, including the former NSW Department of Planning and Environment, former Biodiversity Conservation Division, and Rural Fire Service.

Further agency consultation would occur should Council decide to progress the PP.

Community Consultations

The Estate’s landowners have been consulted and informed through this long running matter. Several landowner workshops and surveys have been conducted in previous years. In recent years, letters have been sent to landowners when appropriate (e.g. prior to relevant Council meetings).

If a PP is ultimately progressed, landowners and the broader community will be formally engaged as part of the public exhibition process (post Gateway).

Policy Implications

On 5 October 2021, Council adopted a Policy titled ‘Voluntary Acquisition – Residual C2 Environmental Conservation Land - Jerberra & Nebraska Estates’ (POL23/18). Part 4 of the resolution to adopt the Policy (MIN21.699) included the following note:

a. The Policy will also only apply to land in the Nebraska Estate, St Georges Basin if/when the Planning Proposal (LP145.1) for the Estate has been finalised and the land rezoned [emphasis added] …

The Policy will need to be reviewed and updated if the Estate is rezoned.

Financial Implications

Costs associated with preparing the PP (including the supporting studies) were funded by a $200,000 Council loan that was repaid by the benefitting landowners over 10 years through special rates.

$32,777 remains unspent and is available to assist this project and should be sufficient to complete the rezoning process provided the matter is not deferred. A preliminary contamination assessment would need to be completed. This was quoted at $11,425 +GST in August 2023.

Any funds remaining at the conclusion of the PP process are intended to be utilised for designing the necessary upgrades to the subdivision infrastructure, for which a new special rate (or equivalent funding arrangement) will be required.

Risk Implications

Work completed since 2005 was funded by the landowners via special rates collected over 10 years. While Council has no legal obligation to restart the PP process, a decision not to would trigger a strong reaction from the Estate’s landowners, who have a reasonable expectation that the Estate’s planning status will be resolved one way or another.

In the meantime, speculation about the land’s rezoning potential will continue to influence sales. If the Estate’s planning future is not resolved now, the area will continue to be impacted by unauthorised clearing, development, and other activities.

Ordinary Meeting – Monday 26 February 2024

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CL24.43 Shoalhaven River Festival 2023 Review

HPERM Ref: D24/31424

Department: Tourism

Approver: Coralie McCarthy, Acting Director - City Futures

Attachments: 1. Post Event Financial Report - Shoalhaven River Festival - 2023 (councillors information folder) ⇨

2. Post Event Committee Report - Shoalhaven River Festival - 2023 ⇩

3. Post Event Committee Report - Additional Information - Shoalhaven River Festival - 2023 ⇩

4. Shoalhaven River Festival Committee - Terms of Reference ⇩

5. Shoalhaven River Festival Initial Report - Shoalhaven Tourism Board - 27/5/13 ⇩

Reason for Report

The purpose of this report is to provide an update on the 2023 Shoalhaven River Festival, review its financial viability and long term sustainability, and provide information on its status as the only event run as a Committee of Council.

Recommendation

That Council:

1. Thank the past and present Shoalhaven River Festival Committee members for the work and commitment they have shown in running the festival over the past decade and reaffirm the importance of the River Festival to the activation of the riverfront.

2. Recognise that Council offers existing and well established funding opportunities for community events through the Community Donations Program and encourage the Shoalhaven River Festival to apply for funding though this program.

3. Discontinue the annual non-competitive funding for the River Festival, recognising this will bring the River Festival support in line with all other community events in the city.

4. Transition the event to a non-council entity, in-line with other community-based events in Shoalhaven and disband the 355 Committee called the “Shoalhaven River Festival”.

Options

1. As recommended.

Implications: The Shoalhaven River Festival volunteers will need to establish a new independent organising committee which assumes its own risk and financial responsibility.

2. Retain the 355 Committee “Shoalhaven River Festival” governance and financial commitment annually, along with a routine review and update of the Committee’s Terms of Reference.

Implications: Continued financial implications and community perception of Councils involvement in the event planning process, and perceived inequity as compared to other Shoalhaven-run community events.

Background

The Shoalhaven River Festival is a community event which aims to provide a spring-time celebration that involves the whole community while enjoying the beauty and accessibility of the Shoalhaven River.

The first Shoalhaven River Festival was held in October 2013, following a resolution of Council though the previous Tourism Board. See initial report and recommendation, Attachment 5). This was supported with an ongoing annual payment of $20,000. A further $10,000 of annual funding was awarded to the Committee from 2016 Shoalhaven Water sponsorship.

The Shoalhaven River Festival has run annually with the support of Council. Operating as a 355 Committee of Council, under Council Terms of Reference. This committee is the only event committee of its kind.

Since 2013, Shoalhaven River Festival has received over $300,000 ex GST, which includes the two years the event was cancelled due to COVID and the funds were rolled over to future years. In addition to the above funds, there has been over $45,000 ex GST written off as bad debts by local businesses or additional funds provided by Council to cover short falls.

More recently, Council resolved on 25 October 2023 (MIN23.535):

“That Council:

Continue the operation of Shoalhaven River Festival Committee for the period to September 2024 as outlined below.

Role:

1. To plan, promote and manage the Shoalhaven River Festival event.

2. To identify and approve all expenditure of funds, including those allocated by Council and grants or funds from any other source.

3. Provide reports to Council as required, outlining the event, expenditure and recommendations for future events.

4. To put in place appropriate risk management measures to provide a safe event for participants, volunteers and visitors.

5. Consult with relevant stakeholders as needed.

Delegations:

1. To expend funds allocated/obtained for the purpose of the Shoalhaven River Festival.

2. To establish working groups as deemed appropriate.

3. To promote the Festival including issuing press releases and other promotional activities.

4. To raise other funds to support the Festival, with a view to the event becoming self-sufficient.”

2023 Event Update

For the first time in 2023, the event was required to relocate to the Nowra Showground due to works from the Bridge.

Key items from the 2023 post event debrief with key committee members included:

- Going forward the committee preferred that the event be held away from the long weekend and reduce to a single day event.

- The heat and poor weather contributed to the lower than expected attendance on the Saturday, with Sunday cancelled. Mobility data during the event showed the estimated total unique attendance data on Saturday to be 2,325 – 2,875* with initial plans and estimates aiming for over 8,000 in attendance. *Localis Data Company

- The committee preference is to move the event back to the riverside location as in previous years, however this would be dependent on the river side development and what is happening in the space in late 2024.

- The committee struggled with event organising capabilities due to only gaining a small number of volunteers and advised going forward a minimum of ten volunteers/committee members to manage the event.

- Discussions around the possibility of rebranding the event, if it is moved from riverfront location going forward.

Refer to attachments 1, 2 and 3 for reports received from the Committee.

The event was also supported by council staff in kind, attending site meetings, supplying signage and assisting with arranging water stations.

Review of Financial Viability

Continued support based on the existing model, equates to $30,000 with a breakdown annually of $20,000 from Shoalhaven City Council, plus an additional $10,000 from Shoalhaven Water. This is the only community event to receive this level of funding from Council, whilst it is recognised this is an important event to activating the river and our local community, there is no formal direct economic impact or return on investment measured.

Inadequate financial reports provided on the event do not show breakdown of the full event spend. Council requires Financial Statements to be submitted annually. These have not been received from the River Festival since 2017/2018.

The Shoalhaven River Festival Committees financial management processes have resulted in unpaid invoices and general over-spend over multiple years that Council has had to mitigate. It should be noted that this year the committee is reporting no losses.

Community Events, Funding and the Donations Program

Within the Shoalhaven, all other community events are run by independent community groups. These events are supported by the Council Events Team, with relation to booking of public spaces, processing of Council permits, advice and resources.

It is recommended that the Shoalhaven River Festival Committee be transitioned from a 355 Committee to become an independent body, as council have supported them for the past 10 years. It is also recommended that in the interest of fairness they don’t automatically receive funding. Instead, the River Festival will follow the same event processes as other community events, applying through the available funding options. Funding and support for events from Council include: Community Donations Program, the Tourism Event Support Program and through Fees Waivers.

Internal Consultation

Internal discussions with the City Lifestyles team identified that there is significant support for the event to remain at the Showgrounds, however, it was noted that quality of essential event elements would need to be greatly improved if the festival continues in its current form. This includes improvements in:

- Event Management Plan

- Access control at entrances gates

- Traffic Management Plan

- Waste Management

- Provision and cleaning of amenities.

City Performance’s Governance team have been consulted and supported the $20,000 transfer of funds across to the Community Donations Program, should Council support the recommendation, reallocation of the funds will be considered as part of Council’s usual budget process.

Shoalwater have also been consulted and advise there is an option for the $10,000 annual sponsorship across to the broader Tourism Event Support Program to ensure events have equal opportunity to apply for funding across the City, this will align with other Shoalwater supported events across the Shoalhaven.

Financial Implications

Council has identified a need to review services and financial commitments in view of long term financial sustainability.

$20,000 in General Fund annual allocation is identified as a cost saving for the General Fund and reallocation of this saving will be a consideration for Council as part of future budget setting.

Risk Implications

The following risks continue for Council should the Shoalhaven River Festival continue in its current form:

- Council’s continuing liability for unpaid bills, as in previous years.

- Continued risk of reputation or perceived reputation for the Council, as the event operates under Council branding, and often not to the standards expected given the investment.

- Fatigue of existing Committee and inability to recruit new members to support organising of the event will result in poor delivery of the festival.

- Continued risk as Council takes on the public liability and insurance for the event as long as it operates under the management of a 355 Committee of Council.

Ordinary Meeting – Monday 26 February 2024

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CL24.44 Australian Liveability Census 2023 - Final Reports

HPERM Ref: D24/48560

Department: Corporate Performance & Reporting

Approver: Coralie McCarthy, Acting Director - City Futures

Attachments: 1. 2023 Liveability Census - Executive Summary Report (under separate cover) ⇨

2. 2023 Liveability Census - Priorities Values and Performance Report (under separate cover) ⇨

3. 2023 Liveability Census - Community Strategic Plan Performance Report (under separate cover) ⇨

Reason for Report

The purpose of this report is to inform Council of the results for the Shoalhaven LGA in the 2023 Australian Liveability Census. The Census was supported by the NSW Government Department of Planning, Housing and Infrastructure and will also inform future regional planning.

Recommendation

That Council

1. Receive and note the results for Shoalhaven City in the 2023 Australian Liveability Census.

2. Note the potential opportunity to utilise the Liveability metrics in Council’s future Integrated Planning & Reporting evaluation framework.

Options

1. Adopt the recommendation

Implications: Nil.

2. Adopt an alternative recommendation

Implications: Staff will act in accordance with the alternative recommendation.

Background

Council participated in the 2023 Australian Liveability Census (Census) in partnership with the NSW Government and Placescore. The Census, first held in 2021 invites local communities to share what is important to them, and rate how they feel their local neighbourhoods are performing.

The survey questions also help to understand ‘liveability’ from the perspective of Australia’s diverse population and provides decision makers with the evidence base to enhance the lives of local communities. The results of the Liveability Census will also inform the NSW Government’s planning for the Six City regions of which Shoalhaven City Council is part of the Illawarra Shoalhaven City.

Liveability is described as an assessment of what a place is like to live in. The survey puts together two metrics which help identify what is important, how a place is performing, and what the focus of change should be.

Placescore invited people from across Australia to assess the liveability of their own neighbourhoods by rating 50 Place Attributes. These Place Attributes cover a broad range of themes including open space, movement, local character and economy. From the survey responses, the following metrics are captured:

· Care Factor (CF) – captures what attributes a community ‘values’

· Place Experience (PX) – captures how a community ‘rates’ each attribute

Data was collected between 26 March and 30 June 2023. The census was heavily promoted across the Shoalhaven through Council media releases and social media posts.

Results Overview

National

· Overall across Australia there were 51,700 responses (CF and PX combined)

· Green, Clean, Walkable and Local were the major values of what is important to Australians in their neighbourhoods

· 82% were satisfied with liveability in their local neighbourhood

Shoalhaven LGA

· Received 711 Reponses (CF) and 681 responses (PX)

· 77% are satisfied with liveability in their local neighbourhood

· In addition to Australia’s universal values of green, clean and safe; Shoalhaven’s ideal neighbourhoods also have the following features:

o Easy to access shared community amenities, like the local shops on foot or bike

o A well maintained and managed public domain; footpaths, parks, roads and other public assets

o Locally owned and operated businesses that provide the community with their daily needs

Attachment 1 includes the Executive Summary Report of the Australian Liveability Census results for Australia and the comparison to the Shoalhaven.

Priorities, Values and Performance

A report was also compiled by Placescore to provide direction for Council’s planning and policy against the key themes from Shoalhaven residents, compared with NSW and Australia.

The top strengths for the Shoalhaven LGA and top priorities for improvement across particular attributes are included below in Figure1. Attachment 2 – provides a copy of the Priorities, Values and Performance Report.

Figure 1: Shoalhaven LGA top liveability strengths
and top priorities for improvement.

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Community Strategic Plan 2032 - Strategic Performance

Council staff participated with Placescore to align the 50 metrics within the Census to Values within the Shoalhaven 2032 Community Strategic Plan (CSP). This helped to measure the delivery of certain aspects of the CSP, and assist with data-driven decision making, evidence based planning and policy development based on the needs and priorities of the community.

The key strategic improvement directions in the report are included below. Investment to improve community outcomes associated with the CSP Themes should be prioritised in the following order:

1. Sustainable, Liveable Environments

Protect nature and invest in local walking and cycling paths, connecting them to the wider network and neighbourhood amenity.

2. Thriving Local Economies that meet community needs

Ensure streetscapes and public spaces are safe and well maintained, and that housing is co-located with retail and amenity.

3. Resilient, Safe, Accessible and Inclusive Communities

Build on strong community connections to enhance neighbourhood safety. The metric with the highest overall priority and therefore the most opportunity for improved liveability outcomes is General condition of public open space (street trees, footpaths, parks etc.).

Attachment 3 – provides a copy of the 2023 Strategic Performance Report by Placescore.

Opportunities

The alignment of liveability metrics to the existing CSP, the Census results and the liveability framework will be used to inform the review and update of the Community Strategic Plan following the Local Government Elections in September 2024. The insights provided by the Census will also be used in our organisational planning initiatives such as place-based recreation planning, social planning, land use, and economic strategies.

Community Consultations

A cross organisational team assisted the Communications and Media team to boost responses a variety of people of different ages and geographic locations. This included a presentation to all Year 8 students from Nowra Anglican College who also completed the survey questions.

Ordinary Meeting – Monday 26 February 2024

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CL24.45 Proposed Road Closure - Part Buchan Street Mollymook

HPERM Ref: D23/487485

Department: Technical Services

Approver: Carey McIntyre, Director - City Services

Attachments: 1. Proposed Road Closure - Buchan Street Mollymook ⇩

Reason for Report

The reason for this report is to provide Council with an opportunity to consider approving the closure of unformed road reserve known as Buchan Street, Mollymook and dispose it to the adjoining landowner of Lots 1 to 3 DP 33065 for consolidation.

Recommendation

That Council:

1. Resolves to close approximately 535sqm, subject to final survey, of unformed road reserve known as Buchan Street, Mollymook, shown in red on Attachment 1 (D23/500630) by notice published in the Government Gazette;

2. Authorises the sale of the closed road to the registered proprietor of the adjoining property being Lots 1 to 3 DP 33065 for $195,000 plus GST (if applicable);

3. Requires the proceeds from the sale to be allocated to the Property Reserve;

4. Requires that the portion comprised in the road closure be consolidated into Lots 1 to 3 DP 33065;

5. Requires that all costs associated with the road closure, sale and consolidation to be borne by the registered proprietor of Lots 1 to 3 DP 33065;

6. Delegates authority to the Chief Executive Officer (or her delegate) to make minor adjustments to the purchase price, if necessary, relative to the area determined by final survey;

7. Ensures an easement for overhead powerlines 9 wide has been created in favour of Endeavor Energy or the existing easement relocated by the developer, authorises the Chief Executive Officer (Director City Services) to sign any documentation required to give effect to this Resolution and to affix the Common Seal of the Council of the City of Shoalhaven to all documentation required to be sealed.

Options

1. As recommended

Implications: The road closure will proceed and will reduce road reserve maintenance burden on Council and generate an income of $195,000 plus GST.

2. Not resolve as recommended

Implications: The road reserve will remain the responsibility of Council including the maintenance requirements.

Background

In July 2022, the Buchan Property Group Pty Ltd purchased Lots 1 to 3 DP 33065 which is commonly known as Mollymook Motel, highlighted yellow in Figure 1 below.

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Figure 1: Showing lots owned by Buchan Property Group Pty Ltd, commonly known as Mollymook Motel

Buchan Property Group Pty Ltd has submitted an application to close a portion of the unformed road reserve along Buchan Street, to the north of the subject lots, to facilitate a future development of the site. The area of road reserve proposed to be closed is highlighted red in Figure 2.

Aerial view of a building

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Figure 2: Section of Buchan Street, Mollymook that is proposed to be closed (in red)

The proposed development includes part demolition works and carrying out alterations and additions to the existing Mollymook Motel. A Development Application, DA23/1461, has been lodged with Council for assessment. The development consent will be issued by way of a deferred commencement, with the deferred matter being the road closure, title creation for the sale of land, and consolidation with Lots 1 to 3 DP 33065.

Buchan Street was a Crown Road; however, in 2017 Council undertook a review of Crown Roads that were maintained by Council with a view to having these roads transferred to Council’s ownership under Section 151 of the Roads Act 1993. Buchan Street was transferred to Council by means of government gazette on 20 December 2019.

A valuation was undertaken by Walsh & Monaghan which determined that the amount of compensation payable is $195,000 excluding GST. Buchan Property Group Pty Ltd agreed to pay Council $195,000 plus GST (if applicable) for the portion of road to be closed. This amount would be adjusted in accordance with final survey.

Internal Consultations

A request for internal comments was made on 21 September 2021.

The original proposal submitted in September 2021 did not result in satisfactory intersection arrangements, affecting Buchan Street and Golf Avenue. It was requested that the applicant obtain a Traffic Assessment Report to investigate the short and long-term requirements for intersection options. A Traffic Assessment Report was assessed as part of the developer’s development application.

It was determined that the road closure be assessed concurrently with a Development Application submitted by the developer. The developer would pursue the purchase of the land upon receipt of a satisfactory consent from Council. If consent were to be granted, it could be by way of deferred commencement, with the deferred matter being the road closure, title creation for the sale of land, and consolidation. Traffic issues connected with the development and road closure would be assessed as part of the development application process.

The road closure is supported by Council staff.

External Consultations

Under Section 38B of the Roads Act 1993 –

1) A Council that is proposing to close a council public road must cause notice of the proposal –

a) To be published in the local newspaper, and

b) To be given to –

I. All owners of land adjoining the road, and

II. All notifiable authorities, and

III. Any other person (or class of person) prescribed by the regulations.

The above has been undertaken with all parties notified in May 2023.

A formal objection was made by Endeavour Energy to the proposal. It was identified that overhead powerlines are located within a part of the proposed road cluster for closure. An easement for overhead powerlines 9 wide would need to be created or the easement relocated before Endeavour Energy would remove the objection. The developer has agreed in principle to Endeavor Energy’s requirements and will complete prior to the final signoff from the Council CEO.

Community Consultations

Adjoining landowners were notified of the proposal on 18 May 2023 and an advertisement was published in the South Coast Register and Milton Ulladulla Times on 25 May 2023.

No submissions were received.

Policy Implications

This proposal is in accordance with Council Policy “Development and/or Disposal of Council Lands” POL 22/47.

Financial Implications

The registered proprietor of Lots 1 to 3 DP 33065 is responsible for all costs associated with the road closure, sale and consolidation. This transaction will occur at nil cost to Council.

Walsh & Monaghan assessed the compensation payable of the land to be sold at $195,000 excluding GST. This will be an income received by Council.

Risk Implications

Nil.

Ordinary Meeting – Monday 26 February 2024

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CL24.46 Tenders - Full-Service Pavement Rehabilitation - Yalwal Road, (Ch2.215-3.9km)

HPERM Ref: D24/35722

Department: Works & Services

Approver: Carey McIntyre, Director - City Services

Reason for Report

The reason for this report is to inform Council of the tender process for Full-Service Pavement Rehabilitation – Yalwal Road, Chainage 2.215km to 3.9km.

In accordance with Section 10A(2)(d)(i) of the Local Government Act 1993, some information should remain confidential as it would, if disclosed, prejudice the commercial position of the person who supplied it. It is not in the public interest to disclose this information as it may reveal commercial-in-confidence provisions of a contract, diminish the competitive commercial value of any information to any person and/or prejudice any person’s legitimate business, commercial, professional or financial interests. This information will be considered under a separate confidential report.

Recommendation

That Council consider a separate confidential report in accordance with Section 10A(2)(d)(i) of the Local Government Act 1993.

Options

1. Accept the recommendation

Implications: Consider a separate confidential report on the matter.

2. Council make a different resolution

Implications: This is not recommended as an extensive evaluation process has been undertaken by the tender evaluation team in accordance with the tender evaluation plan.

Details

Project Description

Council are contracting out the full-service rehabilitation of Yalwal Road between 245 metres west of George Evans Rd and Flatrock Road.

The general scope of work will comprise two pavement types.

· Type 1 (straight pavement sections) - Gravel shoulder (pavement widening), in-situ stabilised pavement, heavily bound base material overlay, 10mm prime seal, DGA20 and SMA10 wearing course.

· Type 2 (intersections) – Deep lift DGA28 and SMA10 wearing course.

Tendering

Council called tenders for the Full-service Pavement Rehabilitation, Yalwal Road Chainage 2215m - 3900m on 24November 2023 which closed at 10:00 am on 15 December 2023.

Seven tenders were received at the time of closing. The tenders received are shown in Table 1. below.

Table 1 - List of Tenders Received

Tenderer
Symal Infrastructure Pty Ltd
State Civil Pty Ltd
Stefanutti Construction Pty Ltd
Stabilised Pavements of Australia Pty Ltd
Roadworx Surfacing Pty Ltd
Fulton Hogan Industries Pty Ltd
Cleary Bros. Bombo Pty Ltd

Details relating the evaluation of the tenders are contained in the confidential report.

Policy Implications

Nil. The tender process has followed the requirements under the provisions of the Local Government Act 1993.

Financial Implications:

These are discussed in the confidential report

Risk Implications

Details relating to the Risk Implications are contained in the confidential report.

Ordinary Meeting – Monday 26 February 2024

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CL24.47 Public Amenities Cleaning - External Contractor Review

HPERM Ref: D24/47147

Department: Building Services

Approver: Carey McIntyre, Director - City Services

Attachments: 1. Public Amenities Cleaning Report 2023 ⇩

2. Off Peak Cleaning Schedule ⇩

3. Peak Cleaning Schedule ⇩

4. Intense Cleaning Schedule ⇩

5. Glossary ⇩

6. Lighthouse Tracking ⇩

7. Monthly KPI Checklist ⇩

Reason for Report

The purpose of this report is to respond to the Question on Notice as requested by Council at the Ordinary Meeting held on 14 August 2023 (CL23.273).

Recommendation

That Council receive the report regarding the Public Amenities Cleaning – External Contractor Review for information.

Options

1. That Council receive the report regarding the Public Amenities Cleaning – External Contractor – Review for information.

Implications: Response to the Question of Notice and performance of the Public Amenities Cleaning Contractor is received.

2. That Council not receive the report regarding the Public Amenities Cleaning – External Contractor – Review for information

Implications: Nil

Background

A report regarding Public Amenities cleaning (CCL22.10) was presented to the Council Ordinary Meeting on 28 March 2022. The report detailed the challenges surrounding public amenities cleaning and the recent transition of service provision from Works & Services to Building Services and Swim Sport and Fitness.

The report explained that a key driver for the transfer was resulting from the recently implemented Asset Custodian Model and the need to improve Parks & Open Space services. It is important to note that a transfer of staff occurred between Works & Service and Swim, Sport & Fitness; however, no staff were transferred into Building Services to provide cleaning for 99 of the 135 public amenities that existed at the time.

Due to the service transition occurring in October 2021 just prior to the summer peak and intense cleaning season, Building Services initially resourced the provision of public amenities cleaning through contract labour hire overseen by a Cleaning Coordinator and an assistant. That experience confirmed the resource challenges that were driven by the seasonal cleaning schedules and identification of resources willing to undertake the work.

Consequently a tender was advertised for the provision of Public Amenities cleaning services for all Building Services amenities to provide a value for money option from a cleaning service provider, who would be better placed to address the variable nature of the task.

Outcomes of the tender process were reported to council on the 28 March 2022 (CCL22.10), with a resulting resolution of council (MIN22.231C) as follows;

That:

1. Council endorses the recommendation of the Tender Evaluation Team to accept the Tender from Storm International Pty Ltd for two years (with the option of a one-year extension) at a cost of $573,840.12 (exc. GST) per year (total cost over two years $1,147,680.24).

2. Council note that this arrangement does not prevent Council staff undertaking Emergency Reactive Repair Works and ad-hoc cleaning due to high service demand and that no existing staff are disaffected or displaced through this contractual arrangement.

3. Council notes the budget implication of both options presented and that an adjustment of the Building Services Public Amenities budget from $631,288 to $1,054,728 will be required in the 2022/2023 financial year.

4. The contract documents and any other associated documents be executed on behalf of the Council in accordance with Local Government (General) Regulation 2021 (section 165), by the CEO (Director – City Services), as the Principal’s Representative.

5. The recommendation remains Confidential in accordance with Section 10(A)(2)(d)(i) of the Local Government Act until Tenders are determined by Council

As resolved by Council, a contract was entered into with Storm International Pty Ltd for a two year term in May 2022.

Questions on Notice:

At the Ordinary Meeting held on the 14 August 2023, Council put forward a Question on Notice regarding the Public Amenities Cleaning Contract (CL23.273). See the questions outlined below.

1. What is the feedback from the general public from Wards 1, 2 and 3 on the quality of the amenities upkeep in the Shoalhaven as a result of Storm International taking over the contract?

2. Are all council amenities in our parks and recreation services etc been assigned to Storm International or have we retained some in-house cleaning?

3. How are the performance metrics monitored in the Shoalhaven?

4. Is the workforce wearing PPE in accordance with NSW Health standards? If so, how is this data captured?

5. How many Storm International workers are long-term local residents of the Shoalhaven vs international workers on an special visa?

6. What are the lessons learnt (both positive and negative) from this 12 month (now 16 month) trial period?

7. Can Council look into availing ourselves of the many organisations locally e.g. Flagstaff who run similar programs with their employees with contracts for public amenities so the local workforce and economy is strengthened and money stay in the local community?

Responses

1. What is the feedback from the general public from Wards 1, 2 and 3 on the quality of the amenities upkeep in the Shoalhaven as a result of Storm International taking over the contract?

Feedback from the community is gauged from submissions to Council via phone calls, emails, app interaction (Snap Send Solve) and direct input of requests through the Council website. 77% of requests, regarding public amenities, are received by phone call and entered into the Request Management System. These requests are assigned for action to either the Facility Officer or the Structures Crew in the case of a repair. A breakup of these requests by district is provided in Figure 1 as follows:

Figure 1: Public Amenities Request by Location

A pie chart with numbers and a diagram

Description automatically generated

Since September 2022, the Facility Officer has received 24 requests for contact through Councils Compliments, Complaints and Feedback category. Of the 24 requests, 8 were related to Grounds Maintenance around Council Buildings, 14 (58%) provided negative feedback and 2 provided positive feedback regarding public amenities cleaning… The number of requests by month is shown in Figure 2 as follows:

Figure 2: Overall Requests for Public Amenities

A graph of a public amenities request

Description automatically generated

From the data provided in Figure 2 above, there was 899 requests entered for 2023. The nature of these requests were largely relating to maintenance and repair. E.g., broken door locks, vandalism, taps inoperable etc. A total of 55 requests were identified for Building Services public amenities cleaning issues. Attachment 1 details the range of feedback received throughout 2023 and the nature of the calls.

Public amenities in the Shoalhaven are subject to a high degree of vandalism and misuse throughout the year; however, particularly during the peak and intense cleaning periods. This is illustrated (Figure 2) by the increased requests received during these periods requiring high levels of intervention for extra over cleaning and reactive repairs.

In many cases it is impossible to respond to a reported incident immediately and in the event of misuse of vandalism, it is often the case that the event occurs between the scheduled cleaning visits and is of an abnormal nature.

Initially due to the quantity of amenities under the contract, their geographical nature and dispersion across the Shoalhaven it was critical to manage the transfer of sites across to the contractor. Coupled with the fact that this was a new method of performing public amenities cleaning, the transition or release of areas to the contractor was undertaken in a staged approach. This ensured Council staff were satisfied with the performance in one area prior to releasing the next. Commencing in Ward 1 in June 2022, Ward 2 in August 2022 and Ward 3 in October 2022.

Performance has been managed by the creation and implementation of processes to ensure the contractor both understands the standards required and council staff can measure the outcomes. These are explained further below.

Overall, the Contractor is performing to the standard required by Council, including two consecutive peak and intense periods of high demand. Due to the challenges initially for both Contractor and Council staff in the familiarisation of sites and initiating new processes, the delivery standard was below expectations; however, this is no longer the case.

Currently, the feedback received from the public is positive and the contractor is providing a consistent service.

2. Are all council amenities in our parks and recreation services etc being assigned to Storm International or have we retained some in-house cleaning?

Building Services are custodian for 99 out of a total of 135 Public Amenities in the Shoalhaven, the remainder of which are under the custodian of Swim, Sport & Fitness (35) and Holiday Haven (1).

Building Services outsource the cleaning of its public amenities via a contract (Storm) and contract labour, Swim Sport & Fitness perform the cleaning inhouse with dedicated resources. The distribution of these amenities by Ward is shown in Table 1 as follows:

Table 1: Amenities Ward Distribution

	Building Services	Swim Sport & Fitness	Holiday Haven
Ward 1 (North)	20 amenities	11 amenities
Ward 2 (Central)	40 amenities	12 amenities	1 amenities
Ward 3 (South)	39 amenities	12 amenities

During the peak & intense cleaning periods an additional 13 port-a-loos are hired and deployed to remote locations to service tourists visiting these areas. The contractor also cleans and services these additional facilities daily for a period of six weeks at Christmas and two weeks at Easter each year.

Attachments 2, 3 & 4 detail the full seasonal cleaning schedules for the Building Services managed amenities in the South, Central & North Shoalhaven. Comparison between the Off Peak (Attachment 2), Peak (Attachment 3) and Intense (Attachment 4) cleaning rosters per area demonstrates the significant fluctuations in seasonal resourcing demands.

3. How are the performance metrics monitored in the Shoalhaven?

Building Services has implemented a number of initiatives to monitor performance of the public amenities contractor, combined they are used to ensure the quality, effectiveness and efficiency of services provided.

Development of Cleaning Glossary:

The Glossary (Attachment 5) was developed to ensure the cleaning standards and quality of Building Services public amenities meet contractual obligations. It is used to convey the acceptable level of cleaning service and is utilised for onsite inspections and reporting. The Glossary is based on a 1-5 rating system and the daily acceptable standard rating of 3 or above is required.

Implementation of Monitoring System:

Due to the remote locations of Councils amenity buildings, Council requested implementation of a software system that could perform the following functions;

· Provide proof of service

· Monitor field based cleaners in real time

· Report maintenance or incidents on site

Through provision of an online software solution, the Building Services Facility Officer can access this information to ensure cleaning is being performed as per the schedule which is also used in cross referencing monthly progress claims.

Attachment 6 provides a sample report illustrating the detail required per site including time in and out, defect reporting and photos of completed works. A download of the full daily schedule is also included.

Onsite Monitoring:

The public amenities cleaning contract is managed by Council’s Facility Officer within the Building Operations team. The Facility Officers duties includes:

· Undertaking contract surveillance, audits, compliance checks and inspections

· Performing reactive cleans and maintenance response

· Conducting contractor inductions (attachment 6) and safety audits

· Consumable stock management and control

· Issuing non-conformance reports and improvement notices

· Reviewing progress claims and payment recommendations

The Facility Officer conducts regular site inspections with representatives of the contractor management team. Attachment 7 provides samples of the monthly KPI checklist undertaken onsite.

Contract Meetings:

Contract meetings are conducted with minutes taken, on a monthly basis, attended by management representatives of Council and the Contractor. Agenda items include WHS, Quality, Staff, Scheduling, Vehicles and Supervision. Any current non-conformance reports or active improvement plans are reviewed in detail.

4. Is the workforce wearing PPE in accordance with NSW Health standards? If so, how is this data captured?

Safework Australia define the requirements for Persons Conducting a Business or Undertaking (PCBU) in regards to Personal Protective Equipment (PPE) in accordance with the “Model WHS Regulations”.

Extract from Safework;

“As the PCBU, you must only issue PPE if other control measures haven’t removed or minimised the risk to workers’ health and safety, as far as is reasonable.

It’s the duty of the PCBU to:

· select suitable PPE for the worker and the task, including that it is reasonably comfortable.

· provide information, training and instructions to workers and people visiting your workplace about how to use PPE.

· guide workers and others to use PPE properly.

· periodically assess whether the PPE is and continues to be effective, and

· put up signs about using PPE.

In the instance of public amenity cleaning both the Contractor and Council have a duty of care to ensure the correct PPE is identified for the task, issued and being utilised accordingly. This is managed on multiple levels throughout tendering onboarding and implementation phases.

At the tendering phase the contractors are required to complete a Work Health & Safety (WHS) Questionnaire, whereby responses are provided pertaining to WHS Policy & Management, Safe Work Practices & Procedures, WHS Inspection, Consultation and Performance Monitoring. Additionally relevant Safety Policy and WHS Procedures are submitted and reviewed as part of the tender evaluation process.

Upon awarding of the contract the requirement of task specific PPE is reviewed and agreed with the contractor. It is the Contractors responsibility to provide all necessary PPE items to cleaning staff and ensure it worn properly when required.

Council ensures that all contract cleaners undertake a specific induction prior to commencement of cleaning duties on public amenities sites, this presentation includes associated PPE requirements. Attachment 6 illustrates the content of the induction session delivered by Councils Facility Officer. Records of attendees are listed and trimmed to Council files.

Conformance to PPE and safe work practices are measured through site observations and audits by both Contractor and Council representatives. The Facility Officer undertakes onsite review for correct PPE use and carry’s spare PPE stock if required.

5. How many Storm International workers are long-term local residents of the Shoalhaven vs international workers on an special visa?

The contract to perform Public Amenities cleaning is based on a fee to provide services as per the contract specifications and schedule, the contract does not stipulate preferential requirements for the residential status of contract cleaning personnel.

Currently the contractor’s staff consist of two long term Shoalhaven residents and two international working visa holders, additional staff travel from outside of the Shoalhaven to supplement the workforce during Peak and Intense periods.

6. What are the lessons learnt (both positive and negative) from this 12 month (now 16 month) trial period?

The engagement of Storm International Pty Ltd as resolved by Council is a two year contract with an option for a one year extension.

Prior to contracting this service the greater component of Councils public amenities cleaning was performed by staff in multifunctional roles, this meant that amenity cleaning was not prioritised over other competing tasks and consequently suffered at times.

The seasonal resourcing demands which increased in Peak and Intense periods was reliant on significant staff overtime and engagement of casual labour, provision of additional vehicles and equipment to provide the extra over demand above base staff numbers.

Engaging a contract to complete these works has led to an improved focus on cleaning and assigned responsibility for quality. Innovative solutions have assisted in rationalising the cleaning schedules and identifying any improvement opportunities.

The contract is now in its second year of operation and generally there is less feedback requiring rectification, there has also been a reduction in service callouts, leading to a consistency of good performance.

From a costs perspective Council have better visibility of the costs per clean throughout the seasonal schedules and improved control of consumables stock. Allocated budget for the provision of public amenities cleaning has remained on track over the past two years.

Regardless of the model for the delivery of this service it is imperative that appropriate levels of supervision is assigned for auditing and reactive response, this is critical during peak and intense periods.

Transitioning to the contract was initially intensive to ensure the Contractor understood Councils expectations and learnt the geographical and seasonal impacts, in terms of visitation, access and traffic congestion. There were a high number of non-conformance reports within the first 6 months; however, that has now subsided with effective communication between both parties and a consistently high level of cleaning performance.

The delivery of public amenities cleaning services is demanding, it is subject to an intense cleaning schedule and the navigation of many variables. The performance based contract works well.

The engagement of resources to fulfill this task is managed through an open tender process, which presents an open opportunity for all service providers to make a submission, including those mentioned.

Organisations such as Flagstaff Group have previously been engaged by Council for provision of landscape maintenance services, opportunities to supplement cleaning and landscape maintenance activities can be explored; however, undertaking the full extent of the service delivery may pose service delivery risks, particularly in peak and intense periods.

Ordinary Meeting – Monday 26 February 2024

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CL24.48 Exemption to Tender - Coomee Nulunga Boardwalk - Warden Head Ulladulla

HPERM Ref: D24/54830

Approver: Carey McIntyre, Director - City Services

Reason for Report

The reason for this report is to allow Council to consider an exemption to Tendering in accordance with Section 55 of the Local Government Act for the supply of the boardwalk material for the construction of the Coomee Nulunga Boardwalk. If approved the procurement would be approved as a variation to the contract with Sustainabylt Pty Ltd which has the construction contract for the project.

Recommendation

That Council:

1. Approves an exemption from tender in accordance with Section 55(3)(i) & (k) of the Local Government Act 1993, for the supply of boardwalk materials for the Coomee Nulunga Boardwalk located at Warden Headland Ulladulla, noting that a satisfactory result would not be achieved by inviting tenders due to:

a. Extenuating circumstances existing due to:

i. The current supplier, Sustainable Infrastructure Systems (SIS), are unable to perform the requirements of the contract and the contract is to be terminated.

ii. There is insufficient time to Tender the project again due to time constraints on the grant funding and community expectations.

iii. Sustainabylt Pty Ltd who are currently contracted to construct (only) the boardwalk has sourced alternative suppliers who have stock available immediately. Their proposed supplier also fabricates the majority of the material in the Australian market so additional supplies, should they be required, can be provided within a short timeframe and would not incur further increase in delays to the project.

iv. Ulladulla Local Aboriginal Land Council (ULALC) have committed staff to assist in the construction as part of their training program and this opportunity may be lost if there are further time delays.

2. Authorises the CEO (Director of City Services) to negotiate and enter into a contract with Sustainabylt Pty Ltd for the supply of boardwalk materials for the Coomee Nulunga Boardwalk.

Options

1. Adopt the recommendation.

Implications:

Provides Council with its best opportunity to meet the requirements of the Restart NSW Funding Deed for the Shoalhaven Sustainable Tourism Infrastructure grant. Council is currently seeking an extension of time change request from December 2023 to July 2024. The construction contractor Sustainabylt is committed to constructing this project and have sound knowledge of the site and construction methodology. Supplying the material will enable full responsibility for the entirety of the project and ensure the project is completed by the newly proposed due date.

2. Council chooses not to accept the recommendation and resolve to undertake a full open tender process.

Implications: This is not recommended as a full open tender process will be lengthy and likely result in either an equal or greater cost to that provided by the preferred contractor. Delays to the construction of the project will not fulfill our requirement under the Grant Deed.

Further delays may also be met with backlash from the community who have been expecting this project for considerable time.

Details

Project Description

Background

The Coomee Nulunga Cultural Walk is project D6 - 2 of the Shoalhaven Sustainable Tourism Infrastructure Grant. The project is located on the southern side of Warden Headland, Ulladulla. The walk traverses many tenures including Shoalhaven City Council (SCC), Crown and Ulladulla Local Aboriginal Land Council (ULALC) lands.

The project involves the construction of 585m of low-level boardwalk with adjoining talking/viewing platforms and will be used by ULALC to conduct cultural walking tours. The Bunaan Sculpture commissioned by ULALC will also be installed at the western entrance (opposite the Lighthouse Oval). ULALC is contributing both financially and in-kind work towards this project and have committed staff to assist with the construction and initial clearing of the track. Council staff have been working collaboratively with ULALC for 3 years on the project.

All projects in the deed are required to be completed by the end of December 2023. The Coomee Nulunga Walk is the last project to be constructed. However, due to the contractual issues with SIS and the subsequent delays Council is seeking an extension of time with the funding body - Restart NSW for completion by July 2024.

The original Tender was awarded to Sustainable Infrastructure System (SIS) for the design and construction of the Coomee Nulunga Boardwalk on 15 June 2023. Due to internal resourcing issues within SIS, SIS indicated they did not have the capacity to construct the works currently and indicated their interest in supplying the boardwalk materials only, as this is their core business.

At Councils Ordinary meeting, 27 November 2023 Council CL23.428, Council approved an Exemption to Tender authorising the CEO (Director of City Services) to negotiate and enter a contract with Sustainabylt Pty Lid for the construction of the Coomee Nulunga Boardwalk with Sustainable Infrastructure System (SIS) to supply the material only.

SIS have subsequently failed to confirm procurement and delivery for the materials for this project and construction of the boardwalk has not been able to proceed.

After many failed attempts to obtain information from SIS on the boardwalk material, two options were presented to the company on 22January 2024 with a response due by COB on 24 January 2024:

1. Provide detailed delivery information including a BOQ with delivery dates.

2. Confirm that there will not be any material delivered and return the deposit paid back to SCC.

SIS decided to choose Option 2. An agreement has been undertaken to refund the deposit paid for the materials and SIS has been sent an invoice.

Policy Implications

Nil implications. This report and proposed recommendation are in accordance with Council’s adopted Procurement Procedures and applicable Legislation.

Financial Implications

Adopting the recommendation will result in manageable financial implications for Council. The project is funded by the Shoalhaven Sustainable Tourism Grant (76%), SCC (24%) and ULALC (1%). The project is budgeted for in the 2023/2024 adopted budget.

The revised proposed total cost of the Coomee Nulunga Boardwalk and the new engagement with Sustainabylt is broken down Table 1 below:

Table 1 - Revised cost estimate to deliver the works package

Item	Cost (ex. GST)
1 - Total Sustainabylt Construction Cost	$306,034.26
2 - Total Sustainabylt Supply Cost	$320,000.00
3 - Detail Design by SCC	$10,000.00
4 - Refund from SIS	$99,047.26
5 - Sub-Total project cost	$536,987.00
6 - Project Contingency	$53,698.70
7 - Total Project Cost	$590,685.70

Risk Implications

Positive Implications. Adopting the recommendation will mitigate risk associated with lengthy delays to the project that would cause Council to miss meeting the grant milestone and incur additional cost associated with inflation of materials and labour. Council may be exposed to significant additional cost if the conditions of the grant milestone are not met.

Ordinary Meeting – Monday 26 February 2024

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CL24.49 Request for Plaques and Memorials

HPERM Ref: D23/507678

Department: Recreation Projects - Planning & Delivery

Approver: Michael Paine, Manager - Community Connections

Attachments: 1. Detailed Information - Request for Plaques and Memorials - January 2024 (councillors information folder) ⇨

Reason for Report

The purpose of this report is to seek Council’s approval for the installation of two memorial seats with memorial plaques and one plaque to be installed within the public domain of Berrara, Currarong and Shoalhaven Heads in accordance with Council’s Plaques and Memorials Policy (POL22/57).

Recommendation

That Council as per the Plaques and Memorials Policy (POL22/57);

1. Approve the request for a memorial seat and installation of a memorial plaque at Berrara Creek Reserve, Berrara.

2. Approve the request for a memorial plaque installation on the viewing platform handrail at Warrain Crescent, Currarong.

3. Approve the request for a memorial seat and installation of a memorial plaque at Shoalhaven Heads Road, Shoalhaven Heads.

4. Advise the applicants on Council’s determination of the requests.

Options

1. Adopt the recommendations as written,

Implications: This is consistent with the adopted Plaques and Memorials Policy (POL22/57) and will allow staff to advise the applicants of the outcome of their request.

2. Adopt an alternative recommendation.

Implications: An alternative recommendation may be inconsistent with the Plaques and Memorials Policy.

Background

Council has received requests to install a number of memorial seats in memory of deceased persons on Council owned and/or managed land. As per the adopted Plaques and Memorials Policy (POL22/57), a Council resolution is required to approve the installation of a plaque or memorial. This report summarises the requests received, identifies whether they are for new or existing infrastructure, and whether the requests are consistent with the adopted Policy.

Council has received two requests for a memorial seat with memorial plaques and one request to install a memorial plaque on a viewing platform on Council owned and/or managed land. These are summarised in Table 1 below. Additional detail of the individual requests is provided in attachment 1.

Table 1 – Summary of Requests for Memorial Seats

Table 1 – Summary of Requests for Memorial Seats
	Infrastructure Request	Preferred Location	Consistent With Policy (POL22/57)
1	Memorial seat	Berrara Creek Reserve, Berrara	Yes
2	Memorial plaque	Viewing platform – Warrain Crescent Currarong	Yes
3	Memorial seat to replace existing seat	Shoalhaven Heads Road, Shoalhaven Heads (outside Shoalhaven Heads Surgery)	Yes

Community Consultations

Currarong Community Association are supportive of the Memorial Plaque installation on the viewing platform on Warrain Crescent, Currarong.

Policy Implications

The requests received have been considered in line with the criteria contained within the adopted Plaques and Memorials Policy. As per the approval process of the Policy, a Council resolution is required to approve the installation of the plaque or memorial.

Each application is consistent with the Plaques and Memorials Policy and is, therefore, recommended to be supported by Council. Where applications have been for ‘townships’, Council staff have negotiated with the applicants to determine a specific location, detailed in the attachment.

Financial Implications

As per the adopted Plaques and Memorials Policy (POL22/57), delivery of the requests will be funded by the applicants, however, Council will be responsible for ongoing maintenance and operational costs.

For memorial seats with plaques, applicants will be charged for the memorial seat, plaque, concrete slab and all labour for installation. The amount applicants are charged, are based on average costs for installations across the City and are based on a full cost recovery model.

For memorial plaque installations only, applicants will be charged for the memorial plaque, and all labour for installation. The amount applicants are charged, are based on average costs for installations across the City (including Council staff time) and will be full cost recovery.

The Asset Custodian for the preferred locations of each request has considered each individual request and noted that maintenance and operation of the new infrastructure will be managed within existing Operational Budgets.

Ordinary Meeting – Monday 26 February 2024

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CL24.50 Application for Council Endorsement to Expand the Boundary of the Kangaroo Valley Community Consultative Body

HPERM Ref: D24/18944

Department: Community Connections

Approver: Michael Paine, Acting Director - City Lifestyles

Attachments: 1. KVCCB Boundary Change Application Letter ⇩

Reason for Report

The purpose of this report is to advise Shoalhaven City Council that the Kangaroo Valley Community Consultative Body (KVCCB) has applied to Council requesting a change to their current boundary to cover a wider area.

Recommendation

That Council:

1. Support in principle the application from Kangaroo Valley Community Consultative Body to expand the coverage of their current boundary to cover a wider area.

2. Advertise the proposal for public comment.

3. In considering public comment,

a. if no significant adverse feedback is received, accept the Kangaroo Valley Community Consultative Body boundary change and staff advise the community group accordingly.

b. if significant feedback is received, staff will submit a report to Council for final determination of the Kangaroo Valley Community Consultative Body boundary.

Options

1. Shoalhaven City Council support in principle the application from Kangaroo Valley Community Consultative Body (KVCCB) to expand the coverage of their current boundary to cover a wider area. (Recommended)

Implications:

As per Section 1.7 of the Community Consultative Body - Guidelines (POL23/44), following Council’s in principle support, for consultation purposes, Council staff will then:

a. Advertise the proposal for public comment.

b. Consult with any other organisation that is recognised as a Community Consultative Body (CCB) within any part of the same geographic area.

c. Following public comment submit a report to a Council meeting for determination.

d. Take into consideration any comments received when determining the application.

e. Inform the applicant of Council's determination.

2. Shoalhaven City Council does not support in principle the application from KVCCB to expand the coverage of their current boundary to cover a wider area.

Implications:

Staff will inform KVCCB that their boundary application was not supported and pass on any feedback from Council.

Background

The Kangaroo Valley Community Consultative Body (KVCCB) applied to Council on 20 December 2023 with a request to expand the boundary area which it covers. There is currently no CCB coverage for Red Rocks and parts of Wattamolla, which both form part of the area known as Kangaroo Valley.

At the KVCCB General Meeting of 30 May 2023, a motion was unanimously carried to cover those residents and ratepayers not currently included in an existing CCB, being the geographic land area eastward to meet Berry’s CCB (Berry Forum) geographic boundary and south to the pinnacle of Moss Vale Road (to encompass Box Hill Road, Leebold Hill Road [Red Rocks], Cambewarra Lookout Road, and Tourist Road).The map in Attachment 1 shows the proposed boundary realignment that KVCCB are applying for.

The two Community Consultative Bodies that are geographically adjacent to KVCCB, Berry Forum and Budgong Community Group were contacted for comment on this proposed boundary alignment.

Budgong Community Group met and discussed the issue at their meeting on 14 January 2024 and confirmed that they have no issue with the KVCCB proposed boundary expansion.

Council staff also spoke to the Berry Forum on 17 January 2024 and the Secretary confirmed that they are also supportive of the KVCCB proposed boundary expansion.

Community Consultations

As per Section 1.7 of the Community Consultative Body - Guidelines (POL23/44), following Council’s in principle support, for consultation purposes, Council staff will then:

a. Advertise the proposal for public comment.

b. Consult with any other organisation that is recognised as a CCB within any part of the same geographic area.

c. Following public comment submit a report to a Council meeting for determination.

d. Take into consideration any comments received when determining the application.

Policy Implications

KVCCB will be bound by the Community Consultative Body - Guidelines (POL23/44)

Financial Implications

As per Section 2.4 of the Community Consultative Body - Guidelines (POL23/44), Council provides financial assistance to help meet CCB administrative costs and/or hall hire expenses.

The amount determined in Council’s budget process is currently $500 per CCB and is paid each financial year after the CCB provides a copy of their financial statements for the previous 12 months.

This application by KVCCB will not incur any additional costs to Council.

Ordinary Meeting – Monday 26 February 2024

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CL24.54 Notice of Motion - Creation of Asset Protection Zone over Lot 30 DP 1285758, Catalina Place and Lot 29 DP 1282389 Wirraway Boulevard, Badagarang

HPERM Ref: D24/64079

Submitted by: Clr John Wells

Clr Patricia White

Clr Serena Copley

Attachments: 1. Attachment A ⇩

2. Attachment B ⇩

Purpose / Summary

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

Recommendation

That Council

1. Grant a 10 metre easement for Asset Protection Zone purposes in accordance with the provisions of the Conveyancing Act 1919 over Lot 30 DP 1285758 and Lot 29 DP 1282389 to benefit the following Lots by way of positive covenant:

a. Lot 9 DP 1282389

b. Lot 17 DP 1285758

c. Lot 18 DP 1285758

d. Lot 27 DP 1285758

e. Lot 28 DP 1285758

f. Lot 29 DP 1285758

2. Require that landowners of the benefitting Lots indemnify Council against any loss, injury or damages incurred whilst on Council owned land and undertaking the activities defined in the development consent conditions and pay all costs, fees and charges (including legal) associated with the creation of the positive covenant.

3. Require the owners of the benefitting lots to fund all costs associated with the creation and registration of the asset protection zone.

4. Authorise the Chief Executive Officer to sign any documentation required to give effect to this resolution and to affix the Common seal of Council of the Council of the City of Shoalhaven to all documentation required to be sealed.

5. Require all new subdivision plans / applications lodged with Council on and from the date of this resolution to be referred to the NSW Rural Fire Service for the purpose of defining any requirement for the mapping of Asset Protection Zones.

Background

The residential subdivision located at Catalina Place and Wirraway Boulevard, Badagarang has been approved and lots have been registered.

As the site was not mapped as bushfire prone at the time of the subdivision, it was approved by Shoalhaven City Council without the benefit of a bushfire assessment and therefore no Asset Protection Zones had been incorporated into the design. Had the Rural Fire Service been asked to assess / map the locality the likelihood is a different subdivision layout would have been contemplated. As that did not occur, the situation has arisen where land has been developed and purchased and landowners are preparing Development Applications for their homes only to discover that a retrospective APZ assessment has been required. The assessment which has resulted in the mapping at Attachment A has resulted in the substantial impairment of several lots affected by an Asset Protection Zone which reaches out beyond land owned by Council - Lot 30 DP 1285758 - onto privately owned Lots.

The impact this has had on owners will not be lost on Councillors. Having to build a house able to survive Flame Zone or Bushfire Attack Level 40 can add $100 to $150 thousand dollars to the build cost, making construction unaffordable and the land virtually unsaleable. Consultants for the landowners have approached Council requesting consideration of a 10 metre easement to help resolve the issue. The request was refused.

There is a solution to this problem, though it will require Council to resolve in a manner contrary to its policy on creating Asset Protection Zones on Council Owned or Managed Land - POL22/103. The Policy is scheduled for review later this year. However if the recommendation we’re proposing is adopted, any future variation of the nature being proposed is unlikely as it requires that all future subdivision plans go through an APZ mapping process as part of the subdivision assessment process.

The creation of a 10 metre easement for APZ purposes has been mapped and results in a BAL level acceptable for building purposes - refer Attachment B.

We also point out that as recently as October last year, Council granted an easement for Asset Protection Zone purposes at Norfolk Avenue, South Nowra to enable a disability services provider to develop an employment space which would have been cauterised by a BAL rating which rendered the asset unviable. Extending an easement into adjacent Council land solved the problem. Council’s vote was unanimous.

Now, whilst staff have submitted that the Norfolk Avenue cannot be compared to this subdivision case - different zoning, different purpose, different built outcome, etc - the inescapable fact is that the outcome is identical. What couldn’t be done before can be done with the grant of an easement.

It is noted that consultants to the landowners have mapped the BAL ratings for the affected lots to deliver acceptable built outcomes, a vegetation and ecological assessment of the proposal has also been prepared which concludes that the proposed 10 metre APZ easement will not impact any areas of ecologically significant land. We understand that Council has this and other documentation relevant to this matter, including draft legal documentation which would accompany the grant of easement. Future maintenance of the land subject to the easement would also transfer to the landowners, divesting Council of that expense.

On behalf of the family’s affected by the situation described above, we urge our colleagues to support the recommendation.

Ordinary Meeting – Monday 26 February 2024

Page 0

Local Government act 1993

Chapter 3, Section 8A Guiding principles for councils

(1) Exercise of functions generally

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

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

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

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

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

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

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

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

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

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

(2) Decision-making

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

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

(b) Councils should consider social justice principles.

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

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

(3) Community participation

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

Chapter 3, Section 8B Principles of sound financial management

The following principles of sound financial management apply to councils:

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

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

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

(i) performance management and reporting,

(ii) asset maintenance and enhancement,

(iii) funding decisions,

(iv) risk management practices.

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

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

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

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

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

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

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

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

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

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

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

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

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