Agenda of Ordinary Meeting - Tuesday, 25 March 2025

Ordinary Meeting

Meeting Date: Tuesday, 25 March, 2025

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

Time: 5.30pm

Membership (Quorum – 7)

Clr Patricia White – Mayor

Ward 1 Ward 2 Ward 3

Clr Jason Cox Clr Ben Krikstolaitis Clr Denise Kemp

Clr Matthew Norris - Assist. Deput Mayor Clr Bob Proudfoot Clr Gillian Boyd

Clr Peter Wilkins - Deputy Mayor Clr Jemma Tribe Clr Karlee Dunn

Clr Selena Clancy Clr Luciano Casmiri Clr Natalee Johnston

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

Walawaani (welcome),

Shoalhaven City Council recognises the First Peoples of the Shoalhaven and their ongoing connection to culture and country. We acknowledge Aboriginal people as the Traditional Owners, Custodians and Lore Keepers of the world’s oldest living culture and pay respects to their Elders past, present and emerging.

Walawaani njindiwan (safe journey to you all)

Disclaimer: Shoalhaven City Council acknowledges and understands there are many diverse languages spoken within the Shoalhaven and many different opinions.

2. Moment of Silence and Reflection

3. Australian National Anthem

4. Apologies / Leave of Absence

5. Confirmation of Minutes

· Ordinary Meeting - 11 March 2025

6. Declaration of Interests

7. Presentation of Petitions

8. Mayoral Minute

9. Deputations and Presentations

10. Notices of Motion / Questions on Notice

Notices of Motion / Questions on Notice

CL25.82....... Notice of Motion - Native Plants for New Citizens................... 1

11. Call Over of the Business Paper

12. A Committee of the Whole (if necessary)

13. Committee Reports

CL25.83....... Report of the Financial Review Panel - 18 March 2025.......... 2

FR25.11....... Grant Funding Policy & Procedures

FR25.12....... Loan Program Policy & Procedures

14. Reports

CEO

CL25.84....... Report Back - Fleet & Plant Accountability and Transparency - New Vehicle Purchases 2024.................................................. 6

CL25.85....... Report Back - AEC Financial Sustainability Review - Actions Taken to Reduce FBT Liability............................................... 16

City Performance

CL25.86....... Ongoing Register of Pecuniary Interest Returns - February 2025........................................................................................ 19

CL25.87....... ALGA Annual Conference 2025 - National General Assembly................................................................................................ 21

CL25.88....... Investment Report - February 2025....................................... 25

City Services

CL25.89....... Proposed Licence to the NRMA Electric Highways Pty Ltd over Part Lot 20 DP 801794 Berry Street, Nowra................. 32

CL25.90....... Grant of Easement for Padmount Substation and Restriction on the Use of Land - Part Lot 227 DP 257580 & Part Lot 330 DP 41314, Ulladulla............................................................... 37

CL25.91....... Creation of Asset Protection Zone (APZ) over Council unmade road adjoining Lot 15 DP 249575 - 13 Ringbalin Crescent, Bomaderry............................................................. 41

CL25.92....... Expression of Interest outcome - Thurgate Oval Bomaderry Amenities Building.................................................................. 46

CL25.93....... Tender - Road Rehabilitation – CH3497 to CH6849 Illaroo Rd, North Nowra/Bangalee/Tapitallee.......................................... 50

City Development

CL25.94....... Reconciliation Action Plan - Adoption.................................... 53

CL25.95....... Development Contributions Refund Request - DA24/1312 - 45 Wedgetail Street, Badagarang............................................... 57

Shoalhaven Water

CL25.96....... Payment of Shoalhaven Water Dividend 2023-2024 Financial Year Results........................................................................... 62

15. Confidential Reports

Reports

CCL25.5...... Tenders - West Nowra Material Recovery Facility - Design, Supply and Install Water Tanks

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.

CCL25.7...... Tender - Road Rehabilitation – CH3497 to CH6849 Illaroo Rd, North Nowra/Bangalee/Tapitallee

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

Ordinary Meeting – Tuesday 25 March 2025

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CL25.84 Report Back - Fleet & Plant Accountability and Transparency - New Vehicle Purchases 2024

HPERM Ref: D25/104613

Department: Financial Sustainability

Approver: Lauren Buckingham, Project Manager - Financial Sustainability

Attachments: 1. 2024 Plant and Fleet Purchases ⇩

Purpose

The purpose of this report is to address MIN25.63 resolved by Council at its Ordinary Meeting on 25 February 2025 to publish a list of new vehicle purchases in 2024. The report identifies the type and model of vehicle purchased, and the allocation and purpose of the vehicle purchases.

Summary and Key Points for Consideration

Council manages a plant and fleet portfolio, to enable the provision of services and public infrastructure. In 2024, Council purchased 193 plant and fleet assets – including heavy plant, small plant and passenger vehicles. The list of purchases is provided in attachment 1.

Recommendation

That Council receive this report in response to MIN25.63 resolved on 25 February 2025 Ordinary Meeting to report back on new vehicles purchased in 2024.

Options

1. As recommended.

Implications: The report will be received for information.

2. The Council resolve an alternate course of action.

Implications: Any implications of an alternate resolution would need to be considered.

Background and Supplementary information

Council manages a plant and fleet portfolio, to enable the provision of services and public infrastructure. Council’s plant and fleet assets are classified as:

· Heavy plant – such as trucks, excavators and rollers, support the critical operation and maintenance of Shoalhaven’s road network, water and sewer network, and waste services infrastructure.

· Small plant – such as mowers, whipper snippers and trailers, to enable the maintenance of Shoalhaven’s vast green spaces and sports fields.

· Passenger vehicles – classified as operational vehicles (enabling operational staff to perform the duties of their position such as Rangers, Water Meter Readers and Works and Services crews) and leaseback vehicles (cars provided through a leaseback arrangement for a combination of business and personal use. These vehicles are also made available to other staff to use throughout the business day ensuring all staff have access to a safe, reliable vehicle for Council-related travel).

Each category of plant and fleet asset has a defined replacement schedule, which is set to optimise the useful life of the asset and to maximise the resale value of the asset.

Each financial year, budget is allocated to fund the replacement of plant and fleet assets, as per the 10-year plant and fleet replacement program.

Replacement of plant and fleet assets are funded through the following reserves, based on the operational use of the asset:

· General fund plant reserve

· Water fund plant reserve

· Sewer fund plant reserve

· Waste budget and reserve

In 2024, Council purchased 193 plant and fleet assets, listed in attachment 1 - 2024 plant and fleet purchases.

The summary of the purchases are:

· 84 were operational vehicles (39 general fund, 41 water and sewer funds, and 4 waste services)

· 109 were leaseback vehicles (82 general fund, 25 water and sewer funds, and 2 waste services). 2024 saw a higher number of leaseback vehicles delivered due to delays in vehicle shipments that were ordered in 2022 and 2023 but not fulfilled until 2024 (73 vehicles).

· 172 of the total 193 plant and fleet purchases were replacement of existing assets, and 21 were new assets. Of the new assets (10 was general funded, 9 were water and sewer funded, 2 were funded by waste services)

In November 2024, the Executive Leadership Team adjusted the replacement schedule on passenger vehicles from replacing every 2 years to a 3-year replacement schedule. This change will have a positive impact on Council’s long term financial plan, as passenger vehicles purchased less often will result in a reduced annual demand for capital funds.

At the Ordinary Council Meeting on 11 March 2025, Council was presented with an update report on the Plant and Fleet Service Review (CL25.75) which referred to a list of project deliverables highlighted in the AEC report and a status update on each deliverable. Additional strategies aimed at reducing plant and fleet costs are also being implemented in conjunction with the AEC report items.

Internal Consultations

The Mechanical and Fleet Services team engages with internal customers in Works and Services, Shoalhaven Water, Swim Sport & Fitness, and Waste Services to confirm future fleet and asset requirements and to ensure operational teams are equipped to deliver critical services for the Shoalhaven. The Enterprise Project Management Office (ePMO) and Finance are then engaged with the proposed plant and fleet capital budget requirement through the development of the draft budget.

External Consultations

No external consultation occurred for this report.

Community Consultations

No community consultation occurred for this report.

Policy and Statutory Implications

Council has a procurement policy prescribing the process and financial delegations. For fleet assets, Fleet staff use the NSW State Government panel for the supply of light passenger and commercial vehicles, and the Local Government Procurement panel for some plant and equipment. They also use RFQ’s for other plant and equipment.

Financial Implications

The total cost to Council for the procurement for the 193 fleet assets in 2024 was $15,070,521.62. This includes $1,380,000.00 for the new Tana Landfill Compactor for West Nowra Waste Operations, and $7,947,486.00 in operational plant and vehicles. The remaining amount funded leaseback vehicles.

Risk Implications

Financial – Council requires an effective plant and fleet function to deliver a wide range of critical infrastructure and services to the community. The timely replacement of plant and fleet as per the defined schedule is important to avoid increasing service costs and to preserve resale value. Annual plant and fleet procurement as per the replacement schedule is critical to achieve an effective ongoing operation.

Ordinary Meeting – Tuesday 25 March 2025

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CL25.85 Report Back - AEC Financial Sustainability Review - Actions Taken to Reduce FBT Liability

HPERM Ref: D25/104616

Department: Financial Sustainability

Approver: Lauren Buckingham, Project Manager - Financial Sustainability

Purpose:

This report addresses MIN25.65 resolved by Council at its Ordinary Meeting on 25 February 2025 to report back to Council what actions have been taken to date to reduce Council’s FBT liability.

Summary and Key Points for Consideration:

Council’s Fringe Benefits Tax (FBT) expense has increased from $111,000 in 2019-20 to $789,000 in 2023-24. This increase is due to the specification of vehicles being purchased, and additional vehicles provided under a leaseback arrangement.

In 2024, Council engaged AEC Group Ltd (AEC) to complete a service review on the plant and fleet operations. As part of the service review, AEC recommended that Council take action to remove or minimise the FBT liability through a review of leaseback contributions paid by staff.

In November 2024, the Executive Leadership Team approved an increase of the leaseback fees by approximately 10% (vehicle dependent) in accordance with the Local Government (State) Award 2023.  The fee increases have been considered by the Consultative Committee and became effective from 1 March 2025.  The increase in fees will generate an extra $118,144 in post-tax employee contributions annually, helping to reduce the dollar value of the benefit provided by Council and the associated FBT liability.

An annual review process has been reinstated to review leaseback contributions. Further increases in leaseback fees of around 10% in future years will be considered, with the aim to increase fees to a level that negates Council’s FBT liability.  Any future increases will need to be approved by the Executive Leadership Team and considered by the Consultative Committee closer to their adoption.

Recommendation

That Council receive this report in response to MIN25.65 resolved on 25 February 2025 Ordinary Meeting to report back what actions have been taken to date to reduce Council’s FBT liability.

Options

1. As recommended.

Implications: The information will be received for information.

2. The Council requests further information or action from the Acting CEO with respect to the topic.

Implications: Additional information will be provided in a subsequent report to the Council.

Background and Supplementary information

Council provides a range of fringe benefits to staff in respect to their employment and these benefits are an essential element of attracting and retaining quality staff in a competitive market.

The main fringe benefit provided to staff is cars provided through a leaseback arrangement for a combination of business and personal use. These vehicles are also made available to other staff to use throughout the business day ensuring all staff have access to a safe, reliable vehicle for Council-related travel.  

Council’s FBT liability has increased over the past four years due to:

1. The specification of vehicles being purchased has increased, and the number of vehicles provided under a leaseback arrangement has also increased.

2. A whole of life cost method was introduced in late 2020 to determine the types and specifications of vehicles on the selection list with a staged roll out.

3. Indications were that the projected savings made through increased vehicle resale prices and fuel efficiency would offset increases in FBT. After the implementation of this model:

a. COVID19 impacted the vehicle market with delays in delivery and sales of vehicles, increasing scheduled turnover times.

b. Vehicles sold at the 2-year mark held their resale price as estimated.

c. Vehicles that were sold at the 3-year mark had considerable decrease in resale prices.

d. Driver preference for specific make and models, being Ford Ranger and Everest, impacting resale prices when consolidated for sale at turnover times.

e. The price of diesel increased significantly which impacted on the whole of life cost of owning vehicles.

f. Leaseback fees remained unchanged during this period.

The steps Council has taken to address the increase in FBT and ensure that the whole of life cost is beneficial to Council include:

1. Reduce market risks by broadening the selection list, thereby driving diversification of vehicles.

2. Increasing leaseback fees by approximately 10% (vehicle dependent) in accordance with the Local Government (State) Award 2023.  The fee increases have been considered by the Consultative Committee and became effective from 1 March 2025.  The increase in fees will generate an extra $118,144 in post-tax employee contributions annually, helping to reduce the dollar value of the benefit provided by Council and the associated FBT liability.

3. An annual leaseback fee review process has been reinstated, with the next review scheduled for November 2025. Further increases in leaseback fees of around 10% in future years will be considered, with the aim to increase fees to a level that continues to reduce Council’s FBT liability.  Any future increases will need to be approved by ELT and considered by the Consultative Committee closer to their adoption.

Internal Consultations

To implement the recommendations from the plant and fleet service review, the Plant and Fleet Working Group were consulted and made a recommendation to the Executive Leadership Team. The Consultative Committee were consulted, as the increase in weekly leaseback contribution has an impact on staff. Leaseback holders were then advised of the change to the weekly leaseback contribution in January 2025.

External Consultations

AEC were engaged to complete the plant and fleet service review, under the financial sustainability project.

Community Consultations

No community consultation occurred for this report.

Policy and Statutory Implications

Council’s Motor Vehicle Policy has been amended with the updated vehicle list and new weekly leaseback fee schedule.

Financial Implications

The actions taken to date to reduce Council’s FBT liability will generate an extra $118,144 in post-tax employee contributions annually, helping to reduce the dollar value of the benefit provided by Council and the associated FBT liability.

Action in future years through an annual review of the leaseback contribution will continue to reduce the FBT expense incurred. The next review is scheduled for November 2025.

Risk Implications

If future and ongoing action is not taken, there is a risk that Council will not achieve the required outcome for financial sustainability.

Ordinary Meeting – Tuesday 25 March 2025

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CL25.86 Ongoing Register of Pecuniary Interest Returns - February 2025

HPERM Ref: D25/44232

Department: Business Assurance & Risk

Approver: Katie Buckman, Acting Director - City Performance

Purpose:

To provide Council with the Register of Pecuniary Interest Returns from newly designated persons lodged with the Chief Executive Officer for the period of 1 February 2025 to 28 February 2025 as required under Section 440AAB of the Local Government Act 1993 and Part 4.26 of the Code of Conduct.

Summary and Key Points for Consideration:

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

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

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

Part 4.26 of the Model Code of Conduct states:

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

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

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

Directorate	Name	Designated Position Start Date	Returned
City Development	Thomas South	09/12/2024	3/02/2025
City Development	Jason Higgs	16/11/2024	5/02/2025
City Development	Joshua Simpson	16/12/2024	12/02/2025

Electronic versions of the disclosure documents (with relevant redactions) are available on the Council website, in accordance with requirements under the Government Information (Public Access) Act, 2009.

Recommendation

That the report of the Chief Executive Officer regarding the Ongoing Register of Pecuniary Interest Returns lodged for the period of 1 February 2025 to 28 February 2025 be received for information.

Options

1. That the report be received for information.

Implications: Nil.

2. That the Council may seek further information.

Implications: Further information be provided to Council in future reports in line with the resolution.

Background and Supplementary information

This report is being submitted directly to the Ordinary Meeting due to the requirements under the Code of Conduct and the Local Government Act 1993.

Internal Consultations

Internal consultation is not required as the process for Initial Pecuniary Interest forms is governed by the Local Government Act 1993, the Model Code of Conduct and the Government Information (Public Access) Act, 2009.

External Consultations

External consultation is not required as the process for Initial Pecuniary Interest forms is governed by the Local Government Act 1993, the Model Code of Conduct and the Government Information (Public Access) Act, 2009.

Community Consultations

Community consultation is not required as the process for Initial Pecuniary Interest forms is governed by the Local Government Act 1993, the Model Code of Conduct and the Government Information (Public Access) Act, 2009.

Policy Implications

The obligations with respect to the Pecuniary Interest Returns by designated officers are in accordance with the Model Code of Conduct and the Government Information (Public Access) Act, 2009.

Financial Implications

There are no financial implications for this report.

Risk Implications

A failure of meeting the obligations with respect to the Pecuniary Interest Returns by a designated officer leaves Council at risk of non-compliance with legislative requirements, conflict of interests and limited transparency.

Ordinary Meeting – Tuesday 25 March 2025

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CL25.87 ALGA Annual Conference 2025 - National General Assembly

HPERM Ref: D25/51159

Department: Business Assurance & Risk

Approver: Katie Buckman, Acting Director - City Performance

Purpose:

To consider Councillor voting delegates, attendance and motions for submission to the following conferences to be held in Canberra ACT.

· Regional Development and Cooperation Forum – Tuesday 24 June 2025

· ALGA Annual Conference 2025 – National General Assembly – Wednesday 25 June to Friday 27 June 2025

Summary and Key Points for Consideration:

The Regional Development and Cooperation Forum and ALGA Annual Conference 2025 – National General Assembly scheduled for Tuesday 24 June to Friday 27 June 2025 in Canberra ACT are considered relevant to local government. Information in relation to the conference can be found on the ALGA website

Costs associated with the conference are estimated as follows:

· Registration – National General Assembly – $979 (early bird closing 23 May 2025) $1095 Non-early bird

· Registration – Regional Development and Cooperation Forum – $279

· Official functions (optional) – Dinner $179

· Travel, accommodation and out of pocket expenses – not yet determined

An option available to Council is to define the number of Councillors attending the conference and for Council to determine the appropriate Councillors authorised to attend. This option is presented having regard to the increase in Councillor expenses in recent years, so that Council may pro-actively control this area of expenses when appropriate.

The Conferences commences at 9.00am Tuesday 24 June and concludes at 5.30pm Friday 27 June 2025. The following Council Business is scheduled within the period of the conferences:

Recommendation

That

1. Council notes the details of the following conferences to be held in the National Convention Centre, Canberra, ACT.

a. Regional Development and Cooperation Forum – Tuesday 24 June 2025

b. ALGA Annual Conference 2025 – National General Assembly - Tuesday 24 June to Friday 27 June 2025.

2. Councillor [insert name" ] be determined as the Council voting delegate for the conference and Councillor [insert name" ] as alternate delegate should the voting delegate not be in attendance.

3. Council endorse the motions contained within the report be submitted for inclusion in the ALGA Annual Conference 2025 – National General Assembly.

Options

1. As per the recommendation.

Implications: The attendance and nominated voting delegate (and alternate) representing Council will be confirmed, together with the endorsement of the motions proposed in the report for submission for consideration and debate at the Annual Forum.

2. That Council limit the number of Councillors attending the conference given the Council’s current financial position.

Implications: This would allow the Council to limit the expenditure related from attendance to a level the Council considers appropriate:

Should the Council wish to pursue that approach the following alternate motion wording is provided:

That

1. Council notes the details of the ALGA Annual Conference 2025 – National General Assembly scheduled for Tuesday 24 June to Friday 27 June 2025 in Canberra ACT. Authorises nominated Councillors to attend the conference and such attendance be deemed Council Business.

2. Council limit the attendance to the Conference to [the Councillor Voting Delegates only OR to X number of Councillors OR the following Councillors]

3. Councillor [insert name" ] be determined as the Council voting delegate for the conference and Councillor [insert name" ] as alternate delegate should the voting delegate not be in attendance.

3. That Council not approve Councillor attendance at the Conference.

Implications: Should the Council determine not to appoint Councillors to fill the voting delegate roles available, there is a risk of not having the full representation and benefit of the Shoalhaven’s views considered at the conference and limited advocacy for those motions proposed by this Council.

4. The Council formulate and endorse additional motions raised during the Ordinary Meeting for submission.

Further motions can be proposed on the floor of Council to be included in the submissions; however, the wording will need to meet the criteria set and the Council will need to endorse the wording as final.

Background and Supplementary information

It is recommended that Council authorises nominated Councillors to attend the conference as Council business.

Each Council is provided the opportunity for one voting delegate. It is recommended that the Council determine its nominated voting delegate for the conference by resolution and an alternate is also to be nominated to fill in for the delegate if required.

Motions

ALGA has called for the submission of motions. Councils are encouraged to formulate motions submitted in terms of the current policy statements.

Councils are also encouraged to submit motions online as early as possible and before the deadline of 11.59pm on Monday 31 March 2025.

Councillors and the Executive Leadership Team were requested via the Councillor Portal and email to suggest motions in accordance with the criteria and deadlines to be submitted for inclusion in this report.

To date the motions received are:

MOTION 1

Title – Taxation Revenue of Federal Assistance Grants

Motion – This National General Assembly calls on the Australian Government to restore the taxation revenue of Federal Assistant Grants to a full 2% and that this adjustment occur over a five-year period.

Category – Financial Sustainability

Why is This a National Issue – Over the past 40 years successive governments have reduced the percentage of taxation revenue being paid in favour of a CPI amount. This has meant that the Government has pocketed for its own purposes revenue which should’ve gone to Local Government. This has undoubtedly led to significant financial stress in the Local Government sector.

Background

Federal Assistance Grants have been a fixture of Local Government funding since 1974. The grant is paid to Local Governments via their State or Territory Grants Commissions according to an agreed formula set by the Federal Government.

Over the past 40 years, successive governments have reduced the percentage of taxation revenue being paid in favour of a CPI amount. It is worth noting, the last time these grants were equal to 1% of Commonwealth taxation revenue was 1996.

This means the Government has received revenue for its own purposes, which should’ve been received by Local Government. This has undoubtedly led to significant financial stress in the Local Government sector.

Increasing the taxation revenue to 2%, would help address the financial stress currently faced by Local Governments ensuring they can continue to provide vital services to their communities. This is because these Grants are untied, meaning that Local Governments can use this funding to address local issues and priorities.

MOTION 2

Title – Financial Assistance via Services Australia

Motion – That this General Assembly calls on the Federal Government to provide adequate financial assistance, via Services Australia, to eligible ratepayers (Pension and Low-Income earner’s) to assist with payments of council and water rates.

Financial assistance should be provided at an amount, or percentage, that reflects current level of rates and should be delivered via a more efficient and cost-effective mechanism, than is currently used.

Category – Financial Sustainability

Background

Currently, a rebate for council and water rates is available to eligible pensioners. Pensioners who hold a pensioner concession card, DVA Gold Card (TPI and EDA), and widow/ widowers who are entitled to income support, may apply for this rebate. The rebate does not extend to low-income earners.

This rebate has not increased in the last 13 years. The current cost of living crisis and an increase in rates over this period has seen the benefit of this rebate erode.

There is a need to provide additional financial support to seniors, pensioners, and low-income earners across our communities, particularly during the cost-of-living challenge currently facing our country.

Internal Consultations

Internal consultation is not required as attendance at this conference fall within the current adopted Council Members – Payment of Expenses and Provision of Facilities Policy.

Councillors and the Executive Leadership Team were communicated with via the Councillor Portal and numerous emails expressing the criteria and deadlines for motions to be included within the report for resolution and submission.

External Consultations

Internal consultation is not required as attendance at this conference falls within the current adopted Council Members – Payment of Expenses and Provision of Facilities Policy.

Community Consultations

Internal consultation is not required as attendance at this conference falls within the current adopted Council Members – Payment of Expenses and Provision of Facilities Policy.

Policy and Statutory Implications

The current Council Members – Payment of Expenses and Provision of Facilities Policy limits attendance at conferences to three per annum per councillor exclusive of any conference arranged by either the State or National Local Government Associations.

Council has recently considered an alternate policy which is currently on public exhibition.

Financial Implications:

Funds are available for Councillors to attend this conference.

Risk Implications

Should the Council determine not to appoint Councillors to fill the voting delegate roles available, there is a risk of not having the full representation and benefit of the Shoalhaven’s views considered at the conference and limited advocacy for those motions proposed by this Council.

Ordinary Meeting – Tuesday 25 March 2025

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CL25.88 Investment Report - February 2025

HPERM Ref: D25/100142

Department: Finance

Approver: James Ruprai, Acting CEO

Attachments: 1. Monthly Investment Review - February 2025 (under separate cover)

2. Statement of Investments (under separate cover)

Purpose:

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.

Summary and Key Points for Consideration:

Council’s total Investment Portfolio returned 5.16% per annum for the month of February 2025, outperforming the benchmark Aus Bond Bank Bill Index (4.51% p.a.) by 65 basis points (0.65%).

Recommendation

That Council receive the Record of Investments for the period to 28 February 2025.

Options

1. The report of the record of Investments for the period to 28 February 2025 be received for information, with any changes requested for the Record of Investments to be reflected in the report for the period to 31 March 2025.

Implications: Nil

2. Further information regarding the Record of Investments for the period to 28 February 2025 be requested.

Implications: Nil

Background and Supplementary information

Investment Portfolio

Council’s investment balance as of 28 February 2025 was $211.68 million and consisted of the following types of investments.

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The details of each investment held by Council on 28 February 2025 is included in the Statement of Investments at Attachment 2.

The graph below illustrates Council’s investments balance on a rolling 12-month basis. Timing of expenditure and grant monies varies throughout the year which can cause fluctuations in the overall balance at the end of each month. The increase to the investment portfolio at the end of February is predominately due to the 3^rd quarterly rates instalments being due by the end of February.

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Portfolio Return

For the month of February, the total investment returns were a positive 5.16% p.a. outperforming Aus Bond Bank Bill Index (4.51%) by 65 basis points.

Investments

Graph 1 below, shows the performance of Council’s Investment Portfolio 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

Investment Interest Earned – February 2025

Much of Council’s cash is restricted in its use to specific purposes by external bodies (e.g., specific purpose unspent grants), legislation (e.g., developer contributions, domestic waste management, water and sewer funds) and Council resolutions (i.e., internally restricted reserves). Interest earned on externally restricted cash must be allocated to those external restrictions in accordance with legislation. The two tables below show the allocation of interest to each applicable Fund.

Table 1 below, shows the interest earned for the month of February 2025.

Table 1 - Interest Earned for the Month of February 2025

Fund	Monthly Revised Budget $	Actual Earned $	Difference $	Adjustment $
General	453,338	423,816	-35,523	173,339
Water	166,256	159,733	-6,523	-224,392
Sewer	112,884	111,119	-1,765	51,053
Total	738,478	694,667	-43,811	-

The interest earned for the month of February, was $694,667 compared to the monthly revised budget of $738,478. The average rates on term deposits dropped compared to where they were in January in response to the rate cut from the Reserve Bank of Australia.

Adjustment to interest income allocation between Funds

Interest income is allocated proportionately across the different Funds of Council, based on the overall cash investment portfolio balance of each Fund. The cash and investment portfolio balance of each Fund changes each month, and this is continually monitored. An adjustment is required on the allocation of interest income between the Funds at the end of February to reflect the cash and investment portfolio balances for each Fund. The total interest income earned to the end of February remains unchanged, however there was an over allocation to the Water Fund of $224,392 in previous months and this has been corrected at the end of February. The over allocation to the Water Fund has been reallocated to the General ($173,339) and Sewer Funds ($51,053) and is represented in the actual year-to-date figures below for each Fund.

Investment Interest Earned - Year to Date

Table 2 below, demonstrates how the actual amount of interest earned year to date has performed against the 2024/25 budget.

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

Fund	Revised Total Annual Budget ¹ $	Actual YTD $	% Achieved
General	5,987,804	3,972,606	66%
Water	2,167,263	1,437,870	66%
Sewer	1,471,521	976,280	66%
Total	9,626,589	6,386,756	66%

¹As part of the December Quarterly Budget Review, it was resolved to increase the annual budget for interest income by $3.8M. This is because the interest rates on investments are higher than originally forecast and Council is earning more interest than originally budgeted.

The interest earned in the general fund of $3,792,606 includes interest earned on unspent s7.11 developer contributions and Domestic Waste Management reserves, which is required to be restricted by legislation. Interest earned on unspent s7.11 developer contributions is $1,072,604 and Domestic Waste Management reserves is $316,126 to the end of February 2025. This leaves $2,583,877 which is unrestricted.

All returns on investments above budget on externally restricted Funds must be allocated to those Funds in accordance with legislation. Externally restricted surplus funds will be allocated to the respective external reserve to help fund future capital works included in the long-term financial plan. Any returns on investments above budget on unrestricted Funds will be used to replenish internal reserves which are currently funding costs incurred and spent on grant funded projects awaiting final acquittal.

The cumulative interest earned for the year (July to February) was $6,386,756 which is 66% of the current full year revised total annual budget.

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

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

Internal Consultations

Not applicable.

External Consultations

Council’s investment advisor, Arlo Advisory Pty Ltd.

Community Consultations

Not applicable.

Policy Implications

All investments have been placed in accordance with Council’s Investment Policy.

Financial Implications

Council’s return on investments is exceeding budget and a budgetary adjustment will be made as part of the December Quarterly Budget Review to reflect current market rates and interest forecast.

Risk Implications

All investments are placed with preservation of capital the key consideration to prevent any loss of principal invested.

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 POL22/78.

Katie Buckman Date: 20 March 2025

Ordinary Meeting – Tuesday 25 March 2025

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CL25.89 Proposed Licence to the NRMA Electric Highways Pty Ltd over Part Lot 20 DP 801794 Berry Street, Nowra

HPERM Ref: D24/500032

Department: Buildings & Property Services

Approver: Kevin Norwood, Acting Director - City Services

Purpose:

The purpose of this report is to request a resolution from Council to enter into a licence with NRMA Electric Highways Pty Ltd (the NRMA) over part of Lot 20 DP 801794 Berry Street, Nowra for the provision of an electric vehicle charging station.

Summary and Key Points for Consideration:

· The land is classified as operational land and Council can enter a proposed five-year licence with an additional five-year option.

· Council resolution is required to determine the grant of the proposed licence on the basis the annual rent exceeds $5,000 per annum.

Recommendation

That Council:

1. Enter into a five-year licence with an additional five-year option over part of Lot 20 DP 801794 Berry Street, Nowra with NRMA Electric Highways Pty Ltd for the purpose of the provision of an electric vehicle charging station, with the commencing rent being $6,000 excluding GST per annum, increased annually by CPI.

2. Authorise for the Common Seal of the Council of the City of Shoalhaven to be affixed to any documentation requiring to be sealed and delegate to the CEO and other delegated officers, authority to sign any documentation necessary to give effect to this resolution.

Options

1. Resolve as recommended.

Implications: The NRMA will be able to install and maintain an electric vehicle charging station at Berry Street, Nowra.

2. Not resolve as recommended.

Implications: The electric vehicle charging station will not be able to be installed.

Background and Supplementary information

Council has identified 20 initial locations across the Shoalhaven where Electric Vehicle (EV) fast charging could be explored as part of a submission under the NSW Expression of Interest to host fast EV charging sites. Locations were selected with consideration to their proximity to the optimal zones identified in the NSW EV Fast Charging Master Plan, as well as adequate parking provision, safety, and public lighting considerations.

These locations were listed by the NSW government for all interested Charge Point Operators (CPOs) to contact Council. Council received interest from several CPOs for a number of these sites and provided non-binding letters of support for several CPOs to apply for fast charging grants across some sites.

Berry Street, Nowra was one of the locations identified as being suitable for the installation of an EV charging station. The proposed site was exhibited on Council’s Get Involved page in December 2024 to determine if the site would be supported by the community. The site was widely supported by 85% of 86 survey respondents.

Council has previously endorsed the EV charging facility at 85 South Street, Ulladulla. The Berry Street site is the second facility being proposed on Council land in the LGA.

The proposed EV chargers located at Berry Street, Nowra will be accessible to all EV drivers and will host four DC fast chargers, including two 180kW ABB Terra DC chargers capable of charging an EV to 80% in 20 minutes (subject to vehicle specifications and competing power load). The chargers will be operated and maintained by the NRMA. Figure 1 below is an indicative image of the layout of the proposed EV charging station.

Figure 1: Indicative EV Charging Station layout

Charging station will include 2 x 180kW ABB Terra DC chargers

The Berry Street carpark contains 149 vehicle parking spaces. As per Figure 2 below, the proposal (licenced area) highlighted in orange will occupy 3% of the total number of spaces for the public.

Figure 2: Proposed location of EV Charging Station

Aerial view of a parking lot

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Licence

The NRMA requires a licence from Council to install, operate and maintain the EV charging station. The estimated cost to the NRMA for the installation is in the order of $750,000.

The NRMA will install two 180kW ABB Terra DC chargers as well as an upgrade to the existing electricity pad-mount substation. The NRMA are requesting a ten-year term licence due the investment. The proposed licence term is for five years with an additional five-year option.

Internal review of Berry Street, Nowra confirms there are no short to medium term plans to redevelop the site.

Valuation

Council engaged a certified practicing valuer to undertake a valuation of Berry Street, Nowra. It was determined that the market rental value (ground rental) is $520 (excluding GST) per carparking space per annum.

The total area to be licenced including charging bays (carparking spaces) and switchboard area is 83m² which has an assessed market value of $3,320 excluding GST per annum.

The NRMA has offered an annual licence rental of $6,000 excluding GST per annum for the first year increased annually by CPI which is acceptable as it is above the assessed valuation.

Internal Consultations

Internal consultation has included Asset Program Planning Manager, Manager Works & Services, Manager - Environmental Services, and Lead - Environmental Projects & Sustainability.

The internal consultation raised no overarching objection to the proposal. It has been advised that the EV proposal will result in the net loss of one car parking space, noting that the Berry Street car park is a high demand area. It would be the best outcome for zero car parking spaces to be lost to facilitate the EV charging proposal. However, this is not possible on the basis of the restricted curtilage of the site. The loss of one car parking space is not considered detrimental to the overall function of the car park and general availability of car parking for the public. The proposed EV charging spaces will result in a continual turnover of vehicles based on the estimated 30 minutes charging time per vehicle. The existing Berry Street carpark currently designates a total of 81 x 2-hour car parking spaces and as a result the EV charging allocation is considered appropriate and on balance the creation of the new EV charging opportunity for the public outweighs the loss of one vehicle parking space.

External Consultations

Council engaged a certified practicing valuer to determine the market rental value of the proposed licenced area.

Community Consultations

In December 2024, community consultation was undertaken around a proposed EV charging station at Berry Street, Nowra. Community consultation is required under the EV Charging Station policy. The results of the consultation indicate that the community is supportive of EV charging station at this site.

- over the one-month exhibition period for the Berry Street site, Council received 86 survey submissions on the proposal.

- 85% of the respondents were supportive of the EV charging station being installed.

- 65.2% of respondents drove an electric vehicle.

- 15.7% of respondents drove a standard vehicle but were interested in purchasing an electric vehicle in future.

- submissions not in support of EV charging on the site were based on the project being funded by Council. As Council is not incurring any cost with this proposal, it is reasonable to summarise that the EV proposal was overwhelmingly supported with community consultation.

Policy Implications

Council’s EV Charging Stations on Public Land Policy is the primary policy which outlines the requirements for the provision of EV charging stations on public land. The installation of EV charging infrastructure on public land must comply with this Policy and Council’s Occupation of Council Owned or Managed Land Policy.

The proposed licence is consistent with these policies.

Financial Implications

Council is not incurring any cost with this proposal. The cost of the installation of the EV charging station and all associated infrastructure and signage is the responsibility of the NRMA. The NRMA will undertake all repairs and maintenance and will be responsible for removing all assets at the end of the Licence term.

Risk Implications

It is normal practice to allow for an interest in land in the form of a licence. Council’s interests have been considered and there is minimal risk associated with the recommended new licence agreement.

Ordinary Meeting – Tuesday 25 March 2025

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CL25.90 Grant of Easement for Padmount Substation and Restriction on the Use of Land - Part Lot 227 DP 257580 & Part Lot 330 DP 41314, Ulladulla

HPERM Ref: D25/58379

Department: Building & Property Services

Approver: Kevin Norwood, Manager - Shoalhaven Swim Sport & Fitness

Attachments: 1. Plan of Easement - Lot 227 DP 257580 and Lot 330 DP 41314 ⇩

Purpose:

The purpose of this report is to seek Council approval to the grant of an Easement for a padmount substation and the creation of a Restriction on the Use of Land in favour of Endeavour Energy over Council-managed Crown land comprised in Lot 227 DP 257580 and Lot 330 DP 41314 at Ulladulla, as shown on Attachment 1.

Summary and Key Points for Consideration:

· Pursuant to Section 3.22(1)(a) of the Crown Land Management Act 2016, Council, as Crown Land Manager, must manage the land as if it were community land under the Local Government Act 1993.

· Pursuant to Section 46(1)(a) of the Local Government Act 1993, Council may grant easements for public utilities and works over community land.

· To support the planned future upgrades at the Ulladulla Leisure Centre and the tennis court clubhouse, a new padmount substation is required for the additional electrical load. Endeavour Energy requires an easement for ongoing maintenance.

· Council resolution is required to grant an Easement for a padmount substation and the creation of a Restriction on the Use of Land, under s377 of the Local Government Act 1993.

Recommendation

That Council:

1. Grant an Easement for padmount substation (15.125m2 area) and the creation of a Restriction on the Use of Land in favour of Endeavour Energy over Lot 227 DP 257580 and Lot 330 DP 41314 (Ulladulla Leisure Centre), Ulladulla.

2. Authorise the Common Seal of the Council of the City of Shoalhaven affixed to any document required to be sealed and delegate authority to the Chief Executive Officer to sign any documentation necessary to give effect to this resolution.

Options

1. Resolve as recommended.

Implications: The new padmount substation will support the future planned upgrades of the Ulladulla Leisure Centre. The occupation of the land will be formalised by registered survey plan and Section 88B Instrument benefiting Endeavour Energy.

2. Not resolve as recommended.

Implications: The current electrical supply is insufficient to support the proposed new loadings associated with the future planned upgrades to the Ulladulla Leisure Centre. Consequently, these future planned upgrades cannot be carried out.

Background and Supplementary information

To support the planned upgrades to the Ulladulla Leisure Centre and the tennis court clubhouse, a new padmount substation is required for the additional electrical load. Endeavour Energy will need easements for ongoing maintenance once the substation is constructed.

Proposed Works

The current gas heating system is nearing end of life, new electric heat pumps for pool heating will be installed to replace the existing system. The current electrical supply is insufficient to support the proposed new loadings associated with the future planned upgrades. There is also future concept designs to provide a splash pad at Ulladulla Leisure Centre which will require electrical upgrades.

A padmount substation is necessary to support the proposed new loadings. Council has engaged a third-party to design the electrical infrastructure, and a Level 1 electrician will construct the substation. This substation will service the Ulladulla Leisure Centre, including the proposed planned upgrades, and the Ulladulla Tennis Courts to support their future proposed clubhouse.

Once construction is complete, Endeavour Energy will take ownership of the substation for ongoing maintenance. To formalise this, Endeavour Energy requires an easement for access and occupation.

Easement

Endeavour Energy requires a 2.75m wide Easement for padmount substation and corresponding Restriction on the Use of Land over Lot 227 DP 257580 and Lot 330 DP 41314. Both lots are Crown land, and Council is the Crown Land Manager. To grant the electricity easement to Endeavour Energy, Shoalhaven City Council must be noted in Schedule 2 of the Certificate of Title for both parcels of land as the Crown Land Manager. This is following direction from Crown Lands.

As the substation is required by Council, all costs associated with the creation of the easement will be payable by Council. Upon registration of the notation on title, the easement can be granted to Endeavour Energy, at zero compensation.

The proposed padmount location will not impact any operational part of the property.

Internal Consultations

Swim, Sport & Fitness has been consulted throughout the process.

External Consultations

Crown Lands have been consulted and have expressed their support for this proposal.

An Aboriginal Land Claim has been lodged over Lot 227 DP 257580 and Lot 330 DP 41314. In November 2023, Shoalhaven City Council wrote to the New South Wales Aboriginal Land Council (NSWALC) to seek a written ‘non-objection’ to this proposal. The NSWALC consulted with the Ulladulla Local Aboriginal Land Council (ULALC), and on 16 January 2024, both the NSWALC and ULALC provided their written ‘non-objection’ to the proposal.

Council’s Native Title Manager conducted an assessment to determine the native title status and ensure the act of granting an easement was valid under the Native Title Act (Cwlth) 1993. The assessment was completed, and a referral was sent to the native title holders on 21 December 2023. No comments were received.

Community Consultations

Council can grant an estate (the proposed easement) in respect of community land. The proposed grant of easement will be advertised in accordance with the Local Government Act 1993 and if no submissions are received, the easement will be created on title.

Policy and Statutory Implications

Council’s Development and/or Disposal of Council Lands Policy (POL22/47) has been observed.

Financial Implications

Costs associated with creation of the easement and plan registration costs will be funded from Council’s existing budget. The estimated cost to create and register the easement is $6,500. There is zero compensation associated with the creation of the easement on the land.

Risk Implications

Council’s interests have been considered and there is minimal risk associated with the recommended grant of the easement.

Ordinary Meeting – Tuesday 25 March 2025

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CL25.91 Creation of Asset Protection Zone (APZ) over Council unmade road adjoining Lot 15 DP 249575 - 13 Ringbalin Crescent, Bomaderry

HPERM Ref: D25/67661

Department: Building & Property Services

Approver: Kevin Norwood, Manager - Shoalhaven Swim Sport & Fitness

Attachments: 1. Proposed APZ over Council unmade road ⇩

Purpose:

The reason for this report is to seek a resolution from Council to create an Asset Protection Zone (APZ) over Council unmade road. The APZ is to benefit Lot 15 DP 249575, 13 Ringbalin Crescent, Bomaderry as shown on Attachment 1.

Summary and Key Points for Consideration:

· The proposed development on No.13 Ringbalin Crescent has been identified as being on Bushfire Prone Land, necessitating compliance with development standards in accordance with the Planning for Bushfire Protection 2019.

· The creation of an Asset Protection Zone will reduce the Bushfire Attack Level (BAL) to BAL-29, meeting the requirements of the Planning for Bushfire Protection 2019.

· An Asset Protection Zone can be established over an unmade road in accordance with the provisions of the Conveyancing Act 1919.

· A Council resolution is required for the grant of an easement on Council land under s377 of the Local Government Act 1993.

Recommendation

That Council:

1. Approve the creation of an Asset Protection Zone (APZ) over Council’s unmade road adjoining the southern boundary of Lot 15 DP 249575, 13 Ringbalin Crescent, Bomaderry, as shown in Attachment 1 (D25/81072), by way of the positive covenant in accordance with the provisions of the Conveyancing Act 1919.

2. Require that the landowners of Lot 15 DP 249575 indemnify Council against any loss, injury or damages incurred whilst on Council owned land and undertaking the activities defined in the APZ Management Plan and pay all costs, fees and charges (including legal) associated with the creation of the positive covenant.

3. Authorise the Common Seal of the Council of the City of Shoalhaven to be affixed to any document required to be sealed and delegate authority to the Chief Executive Officer to sign any documentation necessary to give effect to this resolution.

Options

1. Resolve as recommended.

Implications: Creation of the APZ will reduce the determined Bushfire Attack Level (BAL) of the proposed development from Flame Zone to BAL-29 in accordance with the requirements of the Planning for Bush Fire Protection 2019. The APZ is required to facilitate the proposed development on Lot 15 DP 249575, 13 Ringbalin Crescent, Bomaderry under DA24/1782.

2. Not resolve as recommended.

Implications: The proposed development on Lot 15 DP 249575 may not be able to proceed as the APZ is necessary to create a defendable space and is part of a range of measures that provide an appropriate level of safety for occupants of the dwelling at a level consistent with that required by Planning for Bushfire Protection 2019. The development application may be refused.

Background and Supplementary information

Council is in receipt of a Development Application (DA) for a secondary dwelling at 13 Ringbalin Crescent, Bomaderry DA24/1782). The proposed development is within bushfire prone land (Shown in figure 1.), necessitating compliance with development standards in accordance with the Planning for Bushfire Protection 2019 (‘PBP 2019’).

Figure 1: Bushfire Prone Land Mapping

A map of a neighborhood

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A Bushfire Assessment Report was subsequently prepared, identifying the need for an Asset Protection Zone (APZ) to reduce the Bushfire Attack Level (BAL) to BAL-29. The APZ will consist of an inner protection area, provided by the maintained yard and garden within the development area (Lot 15), as well as an 8-metre wide separation from the remnant vegetation within the unmade Council road reserve, by way of a positive covenant.

The development application seeks to establish the 8m APZ over the Council unmade road to comply with the requirements of the Bushfire Assessment Report and PBP 2019, as shown in Attachment 1.

The subject area of unmade road is currently included in Council’s Bushfire Mitigation area (Shown in figure 2). With maintained area 6m width from adjoining residential properties. However, land included as a Bushfire Mitigation Area cannot be considered managed land or an APZ for the purposes of a development assessment under the Environmental Planning & Assessment Act 1979, as there is no guarantee that this land will be managed in perpetuity or that it will be managed to an APZ standard.

Figure 2: Shoalhaven City Council’s Annual Bushfire Mitigation Program mapping, including the proposed development (marked blue).

A map of a neighborhood

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The establishment of an APZ would obligate the benefited landowner to manage the APZ area in perpetuity, adhering to the standards outlined in the PBP 2019. This would alleviate the maintenance burden on Council.

To achieve the 8m wide APZ, some vegetation that is not considered significant – i.e., not hollow-bearing or threatened species - may be removed. An arborist report or threatened species report for the removal of such vegetation is not required as part of the development assessment.

Internal Consultations

A referral was made to internal stakeholders regarding the proposed creation of the APZ. No objections were received.

Environmental Services raised no objections to the removal of vegetation necessary to achieve the required APZ.

External Consultations

As part of the development application, a referral was sent to the NSW Rural Fire Service. NSW Rural Fire Service has no objection to the proposed development, provided that the APZ is established and maintained for the life of the development.

Community Consultations

There is no statutory obligation to undertake community consultation, as this is considered an operational matter.

Policy and Statutory Implications

The proposed creation of the APZ has been processed in accordance with Council’s policy Creation of an Asset Protection Zone (APZ) over Council Owned or Managed Land (POL22/103).

Financial Implications

The creation of the positive covenant will incur no cost to Council. The landowner of the benefiting lot will be responsible for all costs associated with the creation of the APZ. Ongoing maintenance of the APZ will also be the responsibility of the landowner of the benefiting lot.

Additionally, the proponent will pay Council’s APZ Approval Fee as outlined in Council’s Fees & Charges.

Risk Implications

There is no financial risk to Council, as all costs associated with the creation of the positive covenant and ongoing maintenance will be borne by the landowner of the benefiting lot. Council’s interests have been considered and there is minimal risk associated with proposed APZ creation.

Ordinary Meeting – Tuesday 25 March 2025

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CL25.92 Expression of Interest outcome - Thurgate Oval Bomaderry Amenities Building

HPERM Ref: D25/69924

Department: Buildings & Property Services

Approver: Kevin Norwood, Acting Director - City Services

Purpose:

The purpose of this report is to advise Council on the outcome of an Expression of Interest (EOI) process for part the use of the amenities building at Thurgate Oval Bomaderry. Council resolved 12 August 2024 (MIN24.440) in part to “1. Direct the CEO (or her delegate) to undertake an EOI process to seek to lease the building located at Lot 21, Sec 27, DP2886, Bomaderry, known as Thurgate Oval.”

Summary and Key Points for Consideration:

· Bomaderry Lions Club Inc. has been seeking a facility for the storage of their goods and equipment.

· On 26 February 2024 Council resolved (MIN24.95) “That Council receive a full report on the Bomaderry Lions proposal for storage access at Thurgate Oval.”

· On 6 May 2024 a report was tabled by Director City Services (CL24.121) outlining the Bomaderry Lions Club needs, potential sites and pathway to realise a community group occupation of a preferred site under licence. Council resolved (MIN24.247) “That Council receive the report regarding the Bomaderry Lions proposal for storage access at Thurgate Oval.”

· On 12 August 2024 Council resolved (MIN24.440) in part “Direct the CEO (or her delegate) to undertake an EOI process to seek to lease the building located at Lot 21, Sec 27, DP2886, Bomaderry, known as Thurgate Oval.”

· An Expression of Interest for the use and occupation of Thurgate Oval amenity building was undertaken from 9 October 2024 to 19 November 2024.

· Only one proposal was received with the EOI process, being from Lions Club of Bomaderry Nowra Inc.

· Council resolution is sought to the determination of the EOI based on the Council resolution 26 February 2024 (MIN24.95).

Recommendation

That Council

1. Accept the Expression of Interest received from Lions Club of Bomaderry Nowra Inc. (ABN 60 564 676 485) for the use of the Thurgate Oval amenities building for storage, located over part Lot 21 Sec 27 DP2886 and part Lot 9 DP544734) being Council owned community land, off Bowada Street Bomaderry and as shown in Figure 1 of this report.

2. Subject to proposed licence advertising as required under s47A of the Local Government Act 1993 and if no objections are received to the proposed licence from that process, that Council enter a five-year licence with Lions Club of Bomaderry Nowra with annual gross rental of $1,000 per annum (excluding GST) which includes part building insurance (changeroom area) under licence.

3. Apply annual rent increases in line with the Consumer Price Index (All Groups Sydney).

4. Delegate authority to the Chief Executive Officer to sign the necessary documentation to give effect to this resolution.

Figure 1 – Thurgate Oval amenities building over Lot 21 Sec 27 DP 2886 and Lot 9 DP544734

An aerial view of a neighborhood

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Options

1. Resolve as recommended

Implications: Council will secure a suitable premises for the Lions Club of Bomaderry Nowra Inc. and their work in the community will be able to continue.

2. Seek opportunity for alternate tenancy

Implications: If Lions Club of Bomaderry Nowra Inc. do not secure a new licence at this location, they will need to secure an alternate location. Council will need to undertake a new Expression of Interest process.

Background and Supplementary information

Lots 21 Sec 27 DP 2886 and Lot 9 DP544734 (off Bowada St ,Bomaderry) is community land owned by Council. On the site is an amenities building incorporating changerooms and two toilets. Thurgate Oval is situated to the east of the amenities building and is currently used as a dog exercise park. The building has been the subject of arson and repeated acts of vandalism over the years and has remain closed since the repair after the fire.

The Lions Club of Bomaderry Nowra Inc. is an amalgamated club originally founded in 1959 and has provided uninterrupted community service since. The Club raises most of their income by catering at community events and distribute the revenue throughout the community.

If successful with the EOI process and licence, the Club desire to complete building modifications to suit their operating requirements. Given their strong community ties and history of service, it seems likely they will have the support needed to complete the building modifications successfully. Council will not be responsible for any costs associated with future improvements.

Internal Consultations

Internal stakeholders were not required to be consulted for the EOI process. Internal consultation has occurred with respect to the proposed licence agreement and no issues have arisen to the issue of a licence.

External Consultations

Council advertised an Expression of Interest for the use and occupation of Thurgate Oval amenities building between 9 October 2024 and 19 November 2024. This is consistent with Council Policy 22/98 (Occupation of Council Owned or Managed Land) and is also in accordance with best practice and specifically the Tendering Guidelines for NSW Local Government.

Community Consultations

There is no requirement for community consultation with an EOI. The proposed licence will be advertised in accordance with the Local Government Act 1993 and if no submissions are received, a licence will be issued.

Policy and Statutory Implications

The EOI has been undertaken in accordance with Council policy.

A licence can be issued for the proposed use under s46(4) of the Local Government Act 1993 but will be advertised in accordance with the Act, to complete Council’s statutory obligations for issue of a licence on community land.

Financial Implications

The assessed Rental Assessment Framework for annual rent associated with the proposed use was calculated at $450.00 p.a. plus proportional building insurance costs (currently assessed at $727.92 p.a.) for a total “gross rental” amount of $1,177.92 p.a. (excluding GST). Outgoings such as water & electricity usage to be separately charged.

The Lions Club of Bomaderry Nowra Inc. EOI sought a $1,000 p.a. (excluding GST) annual rental amount, plus water & electricity usage. This would achieve a net rental of $272.08 p.a.

This is only $177.92 less than the assessed gross rental amount, however, is an acceptable outcome for Council considering zero income is received for this property and the likelihood that the proposed licensee will undertake improvements to the property at zero cost to Council.

Risk Implications

Council’s interests have been considered and there is minimal risk associated with the recommended EOI outcome and future proposed licence to The Lions Club of Bomaderry Nowra Inc.

The Lions Club of Bomaderry Nowra Inc. are reliant on the support of grant funding and local community in-kind support to fund future building modification works to the amenities building. Future building works on the Council land will be undertaken with the required project management framework to ensure risks are mitigated through the approval and construction phase.

Ordinary Meeting – Tuesday 25 March 2025

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CL25.93 Tender - Road Rehabilitation – CH3497 to CH6849 Illaroo Rd, North Nowra/Bangalee/Tapitallee

HPERM Ref: D25/68670

Department: Technical Services

Approver: Kevin Norwood, Acting Director - City Services

Purpose

To inform Council of the tender process for Road Rehabilitation CH3497 to CH6849 Illaroo Rd, North Nowra / Bangalee / Tapitallee.

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.

Summary and Key Points for Consideration

In accordance with Section 178 of the Local Government (General) Regulation 2021, Council is required to consider the recommendation of the tender – Road Rehabilitation CH3497 to CH6849 Illaroo Rd, North Nowra/Bangalee/Tapitallee.

· Council called tenders for Road Rehabilitation CH3497 to CH6849 Illaroo Road, North Nowra/Bangalee/Tapitallee on 19 December 2024 which closed at 10:00 am on 18 February 2025. Six tenders were received at the time of closing.

· The project is funded via the Disaster Recovery Funding Arrangements and NSW Infrastructure Betterment Fund.

Recommendation

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

Options

1. Adopt 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.

Background and Supplementary information

Project Description

Council is seeking to engage a contractor to undertake the Road Rehabilitation works on Illaroo Rd from CH3497 to CH6849. The works are required to rectify extensive damage to the road pavement caused by significant rain events and are funded through Disaster Recovery Funding Arrangements and the NSW Infrastructure Betterment Fund.

The works include:

- Underground and above ground utilities adjustments

- Tree removal to cater for adjustment of the table drains

- Adjustment of the existing table drains to cater for the increase in height due to the pavement works

- Adjustment of driveways to cater for the increase in height due to the pavement works

- Pavement Rehabilitation works including both asphalt and gravel overlay and cement stabilisation with bitumen seal

- Replacement of existing pipe culvert crossings

- New line marking and guideposts

Tendering

Council called tenders for Road Rehabilitation CH3497 to CH6849 Illaroo Rd, North Nowra/Bangalee/Tapitallee on 19 December 2024 which closed at 10:00 am on 18 February 2025. Six tenders were received at the time of closing. Tenders were received from the following:

Tenderer	Location
A1 Earthworks Mining and Civil Pty Ltd t/a Cleary Bros	Five Islands Rd, Port Kembla NSW 2505
J Group Corporation Pty Ltd	Altair Pl, Jamisontown NSW 2750
State Asphalt Pty Ltd	Jedda Rd, Prestons NSW 2170
Fulton Hogan Industries Pty Ltd	Werowi St, Dapto NSW 2530
Dineshchandra Indo Pacific Ventures and Investments	Dawn Fraser Ave, Sydney Olympic Park NSW
CBK Constructions NSW Pty Ltd	Rowlins Rd, Gerringong NSW 2534

Details relating to 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

Sufficient funds have been allocated in the Road Rehabilitation CH3497 to CH6849 Illaroo Road, North Nowra/Bangalee/Tapitallee budget for 2024/25 and 2025/26 financial year. Funding is available to cover the tender amount including other associated project costs.

Risk Implications

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

Ordinary Meeting – Tuesday 25 March 2025

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CL25.94 Reconciliation Action Plan - Adoption

HPERM Ref: D25/89134

Department: Cultural & Community Services

Approver: Lindsay Usher, Acting Director - City Development

Attachments: 1. Reconciliation Action Plan (under separate cover)

2. Public Exhibition - Summary and Comments Register (councillors information folder)

Purpose:

The purpose of this report is to present Council’s first Reconciliation Action Plan for adoption.

Summary and Key Points for Consideration:

Council has developed a Reflect Reconciliation Action Plan (RAP), see Attachment 1, to be delivered between March 2025 and September 2026. The plan outlines actions that Council will take to ensure inclusive and culturally safe practices for our workplace, and as a service provider.

The Draft RAP was placed on Public Exhibition for 28 days from 4 November to 2 December 2024. No significant adverse comments were received regarding the content of the plan. Some minor amendments were suggested and made to the document, and the Draft was submitted to Reconciliation Australia for final review. Reconciliation Australia is the national lead body for reconciliation in Australia and formally endorsed the draft on 25 February 2025. If Council proceeds to adopt the RAP, Shoalhaven City Council will be recognised as a member of the Reconciliation Australia ‘RAP network’.

The term of the RAP is March 2025 to September 2026. The 48 RAP Actions include both mandatory (required by Reconciliation Australia) and non-mandatory (proposed by staff) actions. Each identified deliverable is achievable and has a plan for implementation, with financial implications noted below.

If Council proceeds to adopt the RAP, the RAP Working Group and RAP Yarning Group will meet bi-monthly to continue to advocate for RAP implementation and provide guidance to staff as required. Staff will monitor the delivery of RAP Actions through Council’s online reporting system. A launch event for the adopted RAP will be held at the Shoalhaven Regional Gallery on 28 May 2025 from 3-5pm.

Recommendation

That Council:

1. Adopt the finalised Reflect Reconciliation Action Plan for implementation March 2025 – September 2026.

2. Acknowledge and thank the staff, community members and stakeholders involved in the development of the Reflect Reconciliation Action plan.

Options

1. Council adopts the Reflect Reconciliation Action Plan.

Implications: Council will have a strategic plan for ensuring an inclusive and culturally safe workplace and service provider.

2. Council resolves to adopt the Reflect Reconciliation Action Plan with minor amendments.

Implications: Any amendments to the RAP will require endorsement from Reconciliation Australia. Endorsement is likely to take at least 6 weeks. Any further amendments to the plan would be required to be ratified by community consultation, which would cause lengthy delays and additional cost in staff and exhibition resources, as well as redesign of the plan document.

3. Council does not adopt the Reflect Reconciliation Action Plan and provides alternative advice.

Implications: There is a reputational risk for Council if the RAP is not adopted following the significant consultation activities undertaken to date. An ongoing risk may be incurred if Council does not take measures to ensure inclusive and culturally safe relationships with Aboriginal and Torres Strait Islander communities and staff.

Background and Supplementary information

A previous report to Council’s Ordinary Meeting 28 October 2024 outlined the framework and consultations that were engaged to develop the strategic document. At that meeting Council resolved:

MIN24.578

That Council

1. Place the Draft Reconciliation Action Plan on public exhibition for a period of 28 days.

2. If no significant adverse comments are received at the close of the public exhibition period, direct the CEO (Director – City Lifestyles) to submit the Draft Reconciliation Action Plan to Reconciliation Australia for Conditional Endorsement, and report to a future Ordinary Council Meeting for adoption of the Plan.

The Draft RAP was placed on public exhibition from 4 November until 2 December. 377 people visited the Get Involved page throughout this period, resulting in 66 survey responses and three email submissions.

The Project Team compiled the feedback and held a workshop with the RAP Working Group and RAP Yarning Group on the 11 December 2024. The purpose of the workshop was to consider the feedback and recommend changes to the document based on the feedback provided. All feedback and the responses from the RAP Working Group and RAP Yarning Group can be found in Councillors Information Folder – ‘Summary and Comments register’.

Once the changes were made to the document, the Draft Reflect RAP was submitted to Reconciliation Australia for conditional endorsement on 13 January 2025. Reconciliation Australia responded on 4 February 2025 confirming their conditional endorsement and provided their logo, icons and CEO’s message for inclusion in the final document.

The RAP, including logos and the CEO’s message was submitted to Reconciliation Australia on 14 February 2025. Council received formal endorsement from Reconciliation Australia on 25 February where they wrote:

“On behalf of Reconciliation Australia, I would like to congratulate Shoalhaven City Council on a great plan which we are pleased to endorse as a Reflect RAP.

Your RAP is officially accredited by Reconciliation Australia and your organisation is recognised as a member of the RAP network.”

Internal Consultations

Council’s Executive Leadership Team were briefed on the outcomes of the public exhibition on 7 January 2025.

Council’s Mayor and Councillors were advised of the initial conditional endorsement of the Draft RAP by Reconciliation Australia on 5 February 2025, and a Councillor briefing was presented on 6 March 2025 to review the outcomes of the Public Exhibition.

Staff are kept updated on the development of the RAP via a staff intranet page.

External Consultations

The RAP Yarning Group met with the RAP Working Group on 11 December 2024 to review and discuss comments received during the public exhibition period. Agreement was unanimous on minor amendments that should be made to the draft. The recommendations of the RAP Yarning Group and RAP Working Group can be found in Attachment 2.

Community Consultations

The Draft RAP was placed on Public Exhibition for 28 days from 4 November to 2 December 2024.

377 people visited a project webpage, 154 people investigated further by visiting multiple pages, downloading the Draft RAP or downloading the ‘Reconciliation Tell Me More’ information pamphlet.

In response to the question “Overall, how satisfied are you with the [draft] Reconciliation Action Plan?”: 53.7% were happy or very happy; 9% neutral; 37.3% unhappy or very unhappy.

Feedback Comments Received:

· 12 suggestions to amend the draft RAP

· 31 suggestions will inform implementation or may contribute to future RAPs

Additional comments received stated people’s level of support for the RAP but did not include any suggestions for changing the document.

Policy and Statutory Implications

The following reviews and investigations are identified as actions in the Draft RAP, and may result in future policy recommendations to Council:

· 1.4.2 Conduct a review of HR policies and procedures to identify existing anti- discrimination provisions, and future needs.

· 2.1.2 Conduct a review of cultural learning needs within our organisation.

· 3.1.3 Investigate mechanisms to acknowledge the cultural load on Council's Aboriginal staff.

· 3.3.1 Review Council's leave policy considering impacts on Aboriginal and Torres Strait Islander people.

Financial Implications

Most deliverables in the Draft RAP, including all mandatory deliverables, will be implemented through business-as-usual and will not require additional funding.

Any additional costs associated with the implementation of the Draft RAP will be considered for prioritisation in annual budget provisions or be the subject of future budget bids.

Risk Implications

Not proceeding with the Draft RAP would pose reputational risk to Council as a RAP affirms Council’s commitment to improving reconciliation in the Shoalhaven and ensuring that Shoalhaven City Council is an inclusive and culturally safe place for people to work and engage with service provision.

The risks involved in the activities to implement the RAP will be managed in line with Council’s Risk Management Policy.

Ordinary Meeting – Tuesday 25 March 2025

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CL25.95 Development Contributions Refund Request - DA24/1312 - 45 Wedgetail Street, Badagarang

HPERM Ref: D25/84576

Department: Strategic Planning

Approver: Lindsay Usher, Acting Director - City Development

Purpose:

The purpose of this report is to seek direction from Council in relation to a request made by the owner of 45 Wedgetail Street, Badagarang (Lot 98 DP 1295390), for a full reimbursement of Section 7.11 Development Contributions paid for Development Application DA24/1312 (dwelling house with an attached secondary dwelling).

Summary and Key Points for Consideration:

· Council staff have assessed the refund request based on the refund policy in the Shoalhaven Contributions Plan 2019 (CP) - the applicant qualifies for a partial refund of $578.95.

· The applicant has however requested that Council reconsider this and provide a full refund of $12,254.78. Given that this request conflicts with the existing refund policy in the CP, Council staff do not have the delegation to consider/approve a refund of this nature.

· If a full refund is provided this will require a contribution from the General Fund of $11,995.09 (if excluding the CP administration fee).

Recommendation

That Council:

1. Not proceed with a full refund of development contributions associated with DA24/1312.

2. Issue a partial refund of $578.95 to the owner/applicant consistent with the adopted Shoalhaven Contributions Plan 2019.

Options

1. As recommended.

Implications: This is the preferred option as it is consistent with Council's longstanding CP refund policy as well as previous decisions made in regard to refunds of Contributions over a significant period of time.

A refund of $578.95 will be issued for the project (CWCFAC5006, Nowra Library project) - the only project that meets the criteria outlined in the CP.

2. Support a larger refund of Contributions, excluding the administration fee of $259.69 (CWMGMT3001 - Contributions Management & Administration), for a total refund amount of $11,995.09.

Implications: The CP refund policy does not ordinarily support refunds of contributions when projects have commenced or been completed, as the projects are in recoupment or funds have been expended, as is the case here. This approach has consistently been applied to previous refund requests over a significant period of time.

However, there are potentially extenuating circumstances in this instance that would assist in minimising the potential for broader precedent. The Development Application was surrendered early, and the project was scaled down due to financial constraints. The applicant has submitted a revised Complying Development application that does not include provisions for a secondary development and does not currently appear capable of facilitating future development of a secondary dwelling on the subject lot.

As such, Council could consider supporting a refund of this nature in this case as a one-time exception only. This is due to the applicant providing a detailed explanation and justification concerning their personal financial circumstances and also the availability of funds in the General Fund at this specific point in time, which is unlikely to be available to support a refund or refunds of this nature in the future.

In order to issue a refund, it would be necessary to cover all relevant Contributions fees, excluding CWMGMT3001 fees (Contributions Management & Administration), from General Fund for an amount of $11,995.09.

It is acknowledged that this option could also set an undesirable precedent which could result in an increase in refund requests that may adversely impact Council’s cash flow position and resourcing into the future.

Should Council be of a mind to support this option on the basis of the above, to facilitate this, the following possible recommendation wording is provided:

That Council proceed to issue a refund of development contributions associated with DA24/1312 (excluding CWMGMT3001 fees) to a value of $11,995.09, paid from General Fund.

Background and Supplementary information

In November 2024, after the applicant/owner of 45 Wedgetail Street, Badagarang voluntarily surrendered the approval issued under Development Application (DA) DA24/1312, Council also received a request for a refund of the development contributions that had been paid. Council staff assessed the refund request in accordance with Section 4.12 - Refunds of the CP. Prior to the refund assessment and upon receiving the surrendered DA, Council staff informed the applicant of the conditions of the refund policy.

DA24/1312 approved a dwelling house with an attached secondary dwelling. The secondary dwelling was determined to create an increased demand for local infrastructure, requiring the payment of development contributions. The secondary dwelling component was surrendered.

The development consent, granted on 13 June 2024, levied 0.4 Equivalent Tenements (ETs) for the one bedroom secondary dwelling across 15 contributions related projects. At the time of determination, the total contribution amount was $12,254.78. Table 1 below illustrates the break-up of contributions applicable to the development, which were paid on 27 June 2024 and the status of the related project/works.

Table 1: Contribution Projects Status for DA24/1312

Project	Project Description	Amount (0.4ET)	Works Complete
01AREC5006	Northern Shoalhaven Sports Stadium	$316.59	Partially/Funds Expended
01AREC5007	Nowra Swimming Pool Expansion (Scenic Drive)	$245.52	Complete/Recoupment
01AREC5009	Planning Area 1 recreational facilities upgrades (various locations)	$331.41	Partially/Funds Expended
01CFAC0002	Community Hall North Nowra	$65.20	Complete/Funds Expended
01CFAC5012	Nowra Integrated Youth Services Centre (Cnr Kinghorne & Plunkett Streets)	$13.56	Complete/Recoupment
01DRAI5006	Moss Vale Road South URA Drainage	$1,474.09	Partially/Funds Expended
01OREC6015	Moss Vale Road South URA Passive Recreation	$4,746.50	Partially/Funds Expended
01ROAD5154	Moss Vale Road South URA Roads	$2,504.08	Partially/Funds Expended
CWAREC5005	Shoalhaven Community and Recreational Precinct SCaRP Cambewarra Road Bomaderry	$873.46	Partially/Funds Expended
CWCFAC5002	Shoalhaven Entertainment Centre (Bridge Road Nowra)	$660.14	Complete/Recoupment
CWCFAC5006	Shoalhaven City Library Extensions (Berry Street, Nowra)	$578.95	Eligible for refund
CWCFAC5007	Shoalhaven Regional Gallery	$31.78	Complete/Recoupment
CWFIRE2001	Citywide Fire & Emergency services	$62.45	Funds Expended
CWFIRE2002	Shoalhaven Fire Control Centre	$91.36	Partially/Funds Expended
CWMGMT3001	Contributions Management & Administration	$259.69	Non-refundable
TOTAL		$12,254.78

Council’s policy on refunds is clarified in the CP (Section 4.12) as follows:

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The assessment of the refund request was based on the abovementioned criteria. Of the 15 levied projects, 14 do not qualify for a refund for the following reasons (also summarised in Table 1):

· Eight of the projects have commenced works and/or expended funds.

· Five are complete.

· One involves management and administration fees.

The only project eligible for a refund is CWCFAC5006 (Shoalhaven City Library Extensions (Berry Street, Nowra)) for the amount of $578.95. This project has not commenced, and as such no funds have been expended.

The applicant was advised of this decision. On 23 December 2024, the applicant requested a review of the determination, seeking a full refund of contributions. Given the policy position of Council in this regard, Council staff do not have the delegated authority to consider this matter further.

Recommendation

Council’s long standing refund policy in the CP is clear on when Council will consider refunding development contributions. This position ensures that Council’s cash flow position is not adversely impacted. As such, despite the circumstances of the case, it is recommended that Council not support a full refund, but instead issue a refund of $578.95 which is consistent with the CP.

Internal, External and Community Consultations

To evaluate the possibility of this refund in accordance with the Council's refund policy in the CP, the Finance and Development Services Teams were consulted.

External and community consultation is not required in relation to this matter.

Policy and Statutory Implications

Legislation does not compel a council to issue a refund for development contributions. This is a matter that is set out by individual councils in their adopted contributions plans (discussed above).

A full refund of development contributions for DA24/1312 is not consistent with the policy position in Section 4.12 of the CP.

Despite the circumstances of this case, the possible precedent resulting from Council’s ultimate decision in this regard needs careful consideration, especially in the context of ongoing financial implications for Council and how Council wants to manage refunds for the new contributions plan into the future.

Financial and Risk Implications

The applicant is requesting a full refund of the developer Contributions for DA24/1312 ($12,254.78). Funds for many of the levied projects have been expended and as such, if Council is of a mind to support a refund, the funds will need to be sourced from the General Fund.

The Finance Team has indicated that despite limited unrestricted General Fund cash, savings from vacant positions and higher-than-budgeted interest income could be utilised to offset this unexpected expense if Council decides to proceed with the refund.

Time and resources have been allocated to review/process the request and to prepare a report for Council. Thus, should a full refund be considered, administration costs should be excluded from the total (which is consistent with the CP). This would result in the refund amount of $11,995.09 (Option 2).

It is noted that the granting of this particular request has the potential to increase potential similar claims in the future that could result in an adverse impact on Council’s cash flow position (General Fund) and general resourcing. Option 1 is consistent with the CP and lowers the possible future (and ongoing) risk to Council in this space. Irrespective of the decision on this particular matter, which should not be viewed as an overriding precedent, Council needs to maintain a strong position in this regard.

Ordinary Meeting – Tuesday 25 March 2025

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CL25.96 Payment of Shoalhaven Water Dividend 2023-2024 Financial Year Results

HPERM Ref: D25/93792

Approver: Brenden Logue, Acting Director - Shoalhaven Water

Purpose:

The adoption of this report will enable Council’s General Fund to receive a dividend from its Water and Sewer Funds’ operating surplus.

Summary and Key Points for Consideration:

The dividend, which was declared in 2023-2024 financial year will be paid in 2024-2025 in accordance with the State Government’s Regulatory and Assurance framework. The calculated dividend from the surplus including tax equivalents for the Water Fund is $163,503 and the Sewer Fund is $1,555,800.

Recommendation

That Council:

1. Has effective, evidence-based strategic planning in place under the Regulatory and Assurance Framework for Local Water Utilities (July 2022) and the dividend ($163,503) will be paid from the Water Fund as declared in 2023-2024.

2. Has effective, evidence-based strategic planning in place under the Regulatory and Assurance Framework for Local Water Utilities, (July 2022) and the dividend ($1,555,800) will be paid from the Sewer Fund as declared in 2023-2024.

Options

1. Adopt the Recommendation

Implications: The dividends declared will be payable to the General Fund.

2. Council may choose not to pay the full dividend from the Sewer Fund.

Implications: Any unpaid amount of the proposed dividend would remain in the sewer fund reserve. The current budget for General Fund Revenue (2024-2025) may require adjustment (be reduced) to reflect any component of unpaid dividend.

Background and Supplementary information

Council has previously resolved to adopt the Best Practice Management of Water Supply and Sewerage Guidelines (2007) (Best Practice) as its guiding document for the management of the Shoalhaven Water business of Council. Since its adoption, Shoalhaven Water has consistently achieved substantial compliance with the requirements of Best Practice, therefore enabling dividends to be paid to General Fund when operational surpluses are achieved by the Water and/or Sewer Funds.

In July 2022, the Regulatory and Assurance Framework for Water Utilities was introduced by the NSW Department of Planning and Environment for all NSW Local Water utilities. Shoalhaven Water staff have worked with the Department’s staff to confirm the transition process between the previous Best Practice Guidelines and the new Regulatory and Assurance Framework regarding the process for Council to declare the payment of dividends from the Water and Sewer Funds.

The Department has confirmed that Council’s Local Water Utility (Shoalhaven Water) has Effective strategic planning in place for the purpose of paying a dividend under s409 of the Local Government Act 1993. The Department publishes on their website the results of their assessment of each Local Water Utility; this can be viewed at:

https://water.dpie.nsw.gov.au/local-water-utilities/water-utility-strategic-planning

The image below indicates the published results.

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The Regulatory Framework guides Council as a local water utility in the operation of our water and sewerage business, specifically the framework identifies 12 key strategic outcomes. Shoalhaven Water staff were strong advocates for the change and therefore support this “outcomes based” approach to strategic planning as it gives more flexibility for a Water Utility to determine planning methodologies best suited to them.

Staff have commenced the planning and development of a new Strategic Business Plan to deliver the outcomes of the regulatory framework, and Council’s Delivery Program/Operational Plan.

Internal Consultations

In consultation with the Finance team the dividend calculations for the Water and Sewer funds have been confirmed.

External Consultations

Shoalhaven Water staff are in regular contact with the regulator of local water authorities -Department of Climate Change, Energy, the Environment and Water and participate in their annual “Check -in” assessment of our Businesses.

Community Consultations

No community consultation has been undertaken in relation to the recommendation to pay a dividend to Council General fund.

Policy and Statutory Implications

In accordance with Section 409 (7b) of the Local Government Act 1993, the Council must indicate in an open meeting that the Guidelines have been complied with, prior to paying the dividend. This Report serves that purpose along with the assessment by the department, and following Council’s adoption of the report, Council will submit a “Statement of Compliance” and “Statement of Dividend Payment” to the Department of Climate Change, Energy, the Environment and Water to finalise this matter, prior to payment being made to the General Fund before the end of this current financial year.

Financial Implications

The Guidelines for payments of dividends to Council from either the water or sewer funds must meet the following eligibility:

· Dividend for Tax Equivalents (All Local Water Utilities (LWU’s) must pay this dividend). This is calculated at $3 per assessment.

· Dividend from Surplus (only payable if the annual capital expenditure does not exceed 3% of the current replacement cost)

Confirmation of Eligibility

*Fund*	*Dividend for Tax Equivalents*	*Capital Expenditure (Capex) (2023/2024)*	*3% of Current Replacement Cost (2023-24)*
Water	$163,503	$21.758M	$30.193M
Sewer	$155,580	$19.463M	$33.304M

The dividend payable from each fund is the lower of the following three calculations:

1. 50% of the fund surplus (before dividends)

2. Number of Assessments connected x $30, less the dividend for tax equivalents.

3. Cumulative surplus before dividends for the three years to June 2024, less the cumulative dividends for the two years to June 2023.

Based on the above 3 calculations the dividend payable for the Water Fund is option 1 - 50% of the fund surplus and this equates to $Nil. The dividend payable from the Sewer Fund is option 2 - number of assessments multiplied by $30 per assessment and this equates to $1,555,800.

Summary of the Calculated Total Dividend

Fund	Tax Equivalent	Surplus Dividend	Total Dividend
Water	$163,503	Nil	$163,503
Sewer	$155,580	$1,400,220	$1,555,800
Total	$319,083	$1,400,220	$1,719,303

The calculated dividends are $196,560 less than the budgeted amount and relevant budget adjustments have been recommended in the March Quarterly Budget Review. The table below compares actual dividends with 2024/25 adopted budget:

Fund	2024/25 Adopted Budget (inc. tax equivalents)	Actual Calculation (Inc. tax equivalents)	Variance
Water	$166,995	$163,503	($3,492)
Sewer	$1,748,868	$1,555,800	($193,068)
Total:	$1,915,863	$1,719,303	($196,560)

Risk Implications

The risk category of Financial is the key risk category that has been considered in the report options and implications.

Ordinary Meeting – Tuesday 25 March 2025

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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.