Agenda of Ordinary Meeting - Tuesday, 24 February 2026

Ordinary Meeting

Meeting Date: Tuesday, 24 February, 2026

Location: The Studio, Shoalhaven Entertainment Centre, Bridge Road, Nowra

Time: 5.30pm

Membership (Quorum – 7)

Clr Patricia White – Mayor

Ward 1 Ward 2 Ward 3

Clr Matthew Norris Clr Ben Krikstolaitis Clr Denise Kemp

Clr Peter Wilkins - Deputy Mayor Clr Bob Proudfoot Clr Gillian Boyd

Clr Selena Clancy - Assist. Deputy Mayor Clr Jemma Tribe Clr Karlee Dunn

Clr Brett Steele Clr Luciano Casmiri Clr Debbie Killian

Please note: The proceedings of this meeting (including presentations 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 Public Forums, 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 Audio-Visual Attendance

6. Confirmation of Minutes

· Ordinary Meeting - 27 January 2026

· Extra Ordinary Meeting - 13 February 2026

7. Declaration of Interests

8. Presentation of Petitions

9. Mayoral Minute

Mayoral Minute

MM26.2....... Mayoral Minute - 2026 Australia Day Honours.............................................. 1

10. Presentations

11. Notices of Motion / Questions on Notice

Notices of Motion / Questions on Notice

CL26.16....... Notice of Motion - Sussex Inlet Golf Village................................................... 2

CL26.17....... Notice of Motion - Invitations to Councillors to attend Ward meetings and consultations................................................................................................... 3

CL26.18....... Notice of Motion - Greening Our City Grant for 102 Trees - Process & Implementation........................................................................................................................ 4

CL26.19....... Notice of Motion - Safer Cities Grant Opportunity......................................... 5

CL26.20....... Question on Notice - Strategic Relations Advisor (New Position)................. 6

CL26.21....... Question on Notice - Narrawallee Dog Access Survey................................. 7

CL26.22....... Question on Notice - Community Consultative Bodies Model....................... 8

12. Call Over of the Business Paper

13. A Committee of the Whole (if necessary)

14. Committee Reports

CL26.23....... Report of the Northern Floodplain Risk Management Committee - 10 December 2025........................................................................................................................ 9

NFM25.4..... Broughton Creek Flood Study 2025

15. Reports

City Performance

CL26.24....... DPOP 2025-26 - Quarterly Performance and Budget Report (October - December)...................................................................................................................... 10

CL26.25....... Australian Local Government Association Annual Conference 2026 - National General Assembly...................................................................................................... 22

CL26.26....... Ongoing Register for Pecuniary Interest Returns - January 2026............... 25

CL26.27....... Investment Report - December 2025.......................................................... 28

CL26.28....... Investment Report - January 2026.............................................................. 34

City Services

CL26.29....... Proposed Grant of Easement to Endeavour Energy for Community Battery - Part Lot 36 DP 258600, Jacobs Drive, Sussex Inlet.................................................. 40

CL26.30....... Temporarily Extension of Memberships - Northern and Central Floodplain Risk Management Committees............................................................................ 44

CL26.31....... Bereavement Services - EOI Outcome........................................................ 47

City Development

CL26.32....... Exhibition Outcomes and Finalisation - 2024 Berry Heritage Review - Shoalhaven Local Environmental Plan 2014 (PP075) and Shoalhaven Development Control Plan 2014 Amendments....................................................................................... 49

CL26.33....... 1 Wharf Road Shoalhaven Heads - Lot 2, DP701597 - Cost Analysis Report - Land and Environment Court Hearing................................................................... 54

Shoalhaven Water

CL26.34....... Acquisition - Easement for Drainage of Sewage - Part Lot 76 DP 755907 - 66 Wrights Beach Rd, Bream Beach.............................................................................. 61

CL26.35....... Easement Acquisition - Crown Land - Part Lot 377 DP 755952 and Part Lot 7310 DP 1165171........................................................................................................ 65

Councillor Conference Report

CL26.36....... Australian Local Government Womens Association Conference 2025 (ALGWA) Report........................................................................................................... 68

16. Confidential Reports

Reports

CCL26.2...... Bereavement Services - EOI Outcome

Local Government Act - Section 10A(2)(a) - Personnel matters concerning particular individuals (other than Councillors).

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

Ordinary Meeting – Tuesday 24 February 2026

Page 0

CL26.24 DPOP 2025-26 - Quarterly Performance and Budget Report (October - December)

HPERM Ref: D26/16267

Department: Customer & Community Services

Approver: Katie Buckman, Director - City Performance

Attachments: 1. Delivery Program Operational Plan - Quarterly Performance Report 2025-26 - October to December (under separate cover) ⇨

2. Quarterly Budget Report - December 2025 (under separate cover) ⇨

3. Financial Sustainability Plan December 2025 Update (under separate cover) ⇨

4. Uncompleted Notices of Motion / Mayoral Minutes (under separate cover) ⇨

5. Completed Notices of Motion / Mayoral Minutes (under separate cover) ⇨

Purpose:

The purpose of this report is to include the Quarter 2 (October to December 2025) performance report on the 2025-26 Delivery Program and Operational Plan and present the proposed budget adjustments in the December 2025 Quarterly Budget Review for adoption.

Recommendation

That Council:

1. Receive the December Quarterly Performance Report on the 2025-2029 Delivery Program and 2025-26 Operational Plan and publish on Council’s website.

2. Receive the December 2025 Quarterly Budget Review Report.

3. Adopt the budget adjustments as outlined in the December 2025 Quarterly Budget Report Document.

4. Pay $8.854M in additional loan repayments from unspent loan borrowings prior to 30 June 2026 for projects that have finished under budget, have been abandoned, or have been paused.

5. Repurpose $966K of unspent loan proceeds from loan 1241 drawn down in June 2024 for Waste projects, to the Material Recovery Facility project

6. Receive the Uncompleted and Completed Notices of Motion/Mayoral Minutes Reports.

7. Receive the December 2025 update of the Sustainable Financial Futures Plan and note the $7.435 million operational savings achieved to date of the $10 million savings target.

Community Strategic Plan:

4 Transparent leadership with good governance

4.1 Financial sustainability

4.2 Transparent leadership

4.3 Effective collaboration and engagement

Delivery Program / Operational Plan:

4.1.1 Support Council’s sustainable delivery of projects and corporate services through sound financial management and control

4.2.1 Provide support to the elected Council to enable effective leadership

4.3.1 Develop community trust and respect through transparent interactions and reporting

Background

Section 404 of the Local Government Act 1993 requires the General Manager (Chief Executive Officer) to provide progress reports to the Council with respect to the principal activities detailed in the Delivery Program (Operational Plan) at least every 6 months. Furthermore, all councils must continue to consider a Quarterly Budget Review report.

Clause 203 of the Local Government (General) Regulation 2021 requires the Responsible Accounting Officer (Chief Financial Officer) to prepare and submit to the Council, a Quarterly Budget Review Statement that shows, by reference, the estimates of income and expenditure set out in the Operational Plan and a revised estimate of the income and expenditure for the full financial year.

The Responsible Accounting Officer is also required to report as to whether they believe the financial position of the Council is satisfactory, having regard to the original estimate of income and expenditure.

The December 2025 Quarterly Budget Review Statement (QBRS) includes an analysis of the year-to-date result and the reasons for the adjustments from the previously adopted budget by fund. Any proposed changes to the budget are included in the attached December Quarterly Budget Review Statement.

Summary of Delivery Program Operational Plan 2025-26 Q2 Performance

Table 1 below provides breakdown of performance as at 31 December 2025 across each of the key themes outlined in the Community Strategic Plan - Shoalhaven 2035.

Table 1: Action performance as at 31 December 2025 by Community Strategic Plan 2035 Theme area

CSP Pillar	Progress snapshot
Vibrant, active and safe communities	96% actions on track or completed
Sustainable environments and liveable communities	90% actions on track or completed
Resilient local economies and enabling infrastructure	94% actions on track or completed
Transparent leadership with good governance	87% actions on track or completed

Of the 122 DPOP actions, 1 action was completed in the first quarter. By the end of the second quarter, a total of 2 actions had been marked as ‘Completed’.

· 4.11.01 Annual review and update of Council’s Workforce Plan to ensure strategies are updated and implemented.

· 4.2.1.05 Ensure currency of Council’s Risk Management Framework

Key Highlights

Council has consistently delivered a range of services, projects and activities which work towards achieving the 14 priority areas outlined in Council’s Delivery Program 2025-29. Performance comments are provided in the report against each of the 122 actions and related targets in Council’s 2025-26 Operational Plan.

The complete DPOP Quarterly Performance Report (October - December) is included as

Attachment 1.

Significant achievements between October and December 2025 include:

· To foster an inclusive Shoalhaven and deliver priorities from the Disability Inclusion Action Plan (DIAP), Vibrant Communities has worked closely with the Inclusion and Access Advisory Committee (IAAC) and the broader community to review the existing and inform development of the new DIAP. These engagements provide opportunities for community to influence future actions that could improve access and inclusion across the Shoalhaven.

· The Wool Road Culvert Replacement Project reached completion this quarter, reinstating a key section of the road network impacted by previous flood damage. Supported by disaster recovery funding, the project involved the replacement of the damaged culvert to improve hydraulic capacity and enhance resilience against future extreme weather events. The works were prioritised to ensure both traffic lanes were safely reopened ahead of the busy Christmas period, reducing impacts on road users and maintaining access during peak holiday travel.

· The Illaroo Road Rehabilitation Project was successfully completed this quarter, delivering significant improvements to road safety, pavement condition, and long-term resilience of this key local route. The works addressed deteriorated pavement and drainage issues, resulting in a smoother, more durable surface and improved stormwater management. The project was delivered on schedule and within budget, with traffic impacts effectively managed to minimise disruption to residents and road users. The project was jointly funded by Council and the NSW Government’s Infrastructure Betterment Fund.

· Installation of the Material Recovery Facility (MRF) has been completed, and the final commissioning of the plant is still underway. Performance testing prior to this facility being fully operational is expected in the first quarter of 2026.

· The Thrive Together pop-up event was successfully delivered in the Shoalhaven this quarter, providing an accessible and welcoming space for community members to connect with local services, supports, and wellbeing resources. The event brought together Council, community organisations, and service providers to promote social connection, mental health, and community resilience. Strong community engagement and positive feedback highlighted the value of the pop-up format in reaching residents in a flexible and inclusive way, supporting Council’s commitment to a healthy, connected Shoalhaven.

· Year to date Council has submitted 46 grant applications to external funding sources with 8 applications being reported successful and 27 applications still awaiting outcomes. The successful grants have brought in $132,189 in additional funding to help deliver projects. The Grants Officer continues to provide an ongoing service to Council, researching and scanning state and federal landscapes and briefing internal teams on funding opportunities that align with strategic projects.

· To provide the community with accurate and timely information, the Communications team delivered campaigns across Council’s social media channels, including weekly posts and videos on key projects with the Mayor and staff discussing project updates and community topics. More than 70 media releases were issued this quarter, addressing major topics such as organisational restructure, policy adoptions, new Councillor appointments, and community engagement initiatives. Regular updates have been provided on high interest infrastructure projects such as major road upgrades to demonstrate accountability and provide the local community with progress reports.

Requires Attention

Table 2 below outlines the six Action items that have been reported as ‘requires attention’ as at 31 December 2025. Full performance comments are in the attached report and remedial actions have been reported to senior management.

Table 2: DPOP Actions rated as ‘requires attention’ as at 31 December 2025

Ref.	Action	Quarter 2 Comment (summary) Full comments in attached report
2.1.1.02	Support organisational environmental due diligence	Following the workplace change in October 2025, environmental functions have been integrated across the organisation. While responsibility is now shared rather than centralised, environmental due diligence remains a priority and will be embedded within executive oversight and governance processes. This action is expected to be reviewed and updated in the next Delivery Program and Operational Plan (DPOP) to reflect the new approach and ensure continued compliance and accountability.
2.2.1.03	Complete preparation of a new local infrastructure contributions scheme and governance framework	Preparation of the new Local Infrastructure Contributions Scheme and governance framework is progressing, with updates discussed at Council’s Land Use Planning & Development Advisory Committee on 18 November 2025. Exhibition of the draft Contributions Plan to Council is planned for early 2026.
2.2.2.04	Consolidate four Wastewater Treatment Plants within the existing Reclaimed Water Management Scheme to support growth and improve efficiencies and operations	The draft options assessment was reviewed in December; however, additional information is required to finalise the report. Work is ongoing, with Operations and Maintenance (O&M) costs now being incorporated into the report. Completion is scheduled for late January, but may be delayed due to the need for further data on O&M costs.
3.1.2.04	Progress work with the NSW Government and others to unlock the economic growth and employment generating opportunities of zoned but undeveloped land in the South Nowra Employment Precinct	Work on the interim Development Control Plan did not progress during the quarter due to competing priorities. Following the release of the NSW Government’s South Nowra Precinct Profile in November 2025, Council resolved to prioritise the new Land Use Planning Scheme work over this action.
4.1.1.08	Provide effective, secure and efficient record keeping frameworks and services to meet strategic, legislative and operational requirements of the organisation	Council continues to meet its record-keeping obligations. While several issues early in the period slowed correspondence processing times, improvements to processes and stabilisation of resourcing have resulted in improving turnaround times.
4.2.1.07	Deliver Council’s Service Review Program	The service review of Shoalhaven Bereavement Services progressed to an Expression of Interest (EOI) process, which was used to better understand market interest and determine whether external providers could deliver these services sustainably and in line with community expectations. The outcome of the EOI will be decided in early 2026.

On Hold

Table 3 below, outlines the five Action items that have been reported as ‘on hold’ as at 31 December 2025. Full performance comments are in the attached report and remedial actions have been reported to senior management.

Table 3: DPOP Actions rated as ‘on hold’ as at 31 December 2025

Ref.	Action	Quarter 2 Comment (summary) Full comments in attached report
1.2.1.04	Work towards completion, approval and implementation of Shoalhaven Entertainment Centre’s Strategic Business and Marketing Plan	The strategic business and marketing plan is on Hold. It will incorporate learnings and direction from the current service review being conducted on the operation of the Shoalhaven Entertainment Centre. It is expected to be completed within 6 months of the service review being finalised.
2.2.3.10	Review and update the Holiday Haven Business Plan to reflect the current operating environment	The Business Strategy document was completed to 90% in Q2 and is on track to be completed in Q3 . Once completed, the strategy will inform the development of the revised Business Plan which will not be finalised until the outcome of the proposed service review is complete to ensure further adjustments and recommendations are included prior to formal endorsement.
4.1.1.19	Develop a fair and equitable rating system that also improves Council’s financial sustainability	Best practice is to undertake a comprehensive review of a council’s rating structure mid-valuation cycle, when rates outcomes from the previous year can be meaningfully compared with projected outcomes for the following year using the same land values. Reviewing the rating structure now, with new 2025 land values, would require comparisons between 2025/26 and 2026/27 using different land values, limiting the reliability of the analysis. As a result, the optimal timing for a robust review of rating equity is the 2027 financial year, after the 2026/27 rates are levied using the 2025 land values. In the meantime, routine analysis of the impacts of the new 2025 land values on rates payable will continue in Q3 and Q4, particularly for business rates and the Nowra CBD sub-category, ahead of the 2027 FY Draft DPOP.
4.2.1.02	Coordinate Audit, Risk and Improvement Committee functions and responsibilities and deliver the planned internal audits	ARIC is discharging their responsibilities as per the adopted ARIC Charter and ARIC annual plan. Meetings occurred as planned along with the additional annual Financial Statements review meeting with the Audit Office NSW. Internal audits are progressing as per the approved internal audit plan although they are currently running behind schedule. This is being addressed by recruitment of a new Internal Auditor to fill the vacant position.
4.2.1.08	Conduct a comprehensive review to ensure that the service levels for Works & Services align with the associated budgets and resources	Review has been delayed due to resource availability. This is anticipated to be addressed in Q4 to enable to process to recommence.

The remaining 109 actions are rated as ‘On Track’.

December 2025 Quarterly Budget Results Overview

The budgeted consolidated operating result has improved further, increasing from a $1.4M surplus at Quarter 1 to a $4.8M surplus this quarter. This improvement is mainly due to higher-than-expected interest on investment income, increased waste management rates, and reduced materials, services, and other expenditure costs in the General Fund, and an increase in water connection charges in the Water Fund.

Council’s unrestricted cash position has continued to strengthen. At 31 December 2025, Council’s grants spent in advance balance had reduced to $1.9M, a decrease of $1.9M compared to 30 September 2025. The decrease is due to the receipt of $978.5K for the Far North Collector Road and $4.1M for the Local Road Upgrades Program, which is now $3M received in advance.

Despite costs associated with the organisational restructure implemented on 27 October 2025, loan repayments due, and capital expenditure beginning to increase, the unrestricted cash balance grew to a $8M surplus at 31 December 2025. However, the projected unrestricted cash balance at 30 June 2026 has been revised down from $21.1M in quarter 1 to $13.7M, mainly due adjustments in the timing of Council’s land sales program ($5.7M) and delays in the opening of the Materials Recovery Facility (MRF) operations ($2.4M).

Council repaid $3.7M of the unspent loans in December 2025, as resolved by Council at the meeting on 28 October 2025 (MIN25.557). This resulted in a break gain of $306K and a reduction of $356K in loan payments in the current financial year, improving Council's forecast cash position.

It is proposed that Council continue to repay unrequired loans prior to 30 June 2026 for projects that have finished under budget, have been abandoned, or have been paused. Project details and proposed amounts to be returned are outlined below:

Project Name	Project Status	Amount
Sustainable Tourism projects	Finished under budget	$1,103,789.05
Showground Building projects (associated with Bushfire Local Economic Recovery Fund grants (BLERF-0111)	Paused at concept design stage (MIN25.264)	$1,468,005.67
Waste Education Centre	Abandoned	$881,620.06
Bioelektra Resource Recovery Facility	Abandoned	$5,400,346.99
Total		$8,853,761.77

Preliminary General Fund Year End Results and Quarterly Review Movements

General Fund

Council’s General Fund revised budget for FY2025-26 at the September QBR was projecting a deficit before capital of $16.4M, or an Operating Performance Ratio of –5.4%. This quarterly review has identified a further improvement in the projected General Fund deficit, mainly due to higher‑than‑expected interest on investment income, increased waste management rates, and reduced materials, services, and other expenditure costs. The revised projected General Fund deficit is now $14M, with an Operating Performance Ratio of –4.6%.

This quarter has identified $299K savings through plant and fleet review as part of Council’s Sustainable Financial Futures Plan. This includes the sale proceeds for underutilised fleet assets and associated operational cost savings, which have been transferred to the Financial Sustainability Reserve.

The following table presents a high-level summary of the budget and movements for the General Fund for Quarter 2 2025-26:

Table 4: General Fund budget movements for Quarter 2 2025-26

($'000)	Current Adopted Budget (QR1)	December QR Adjustments	December QR Revised Budget	YTD Actual
Favourable / (Unfavourable)	Current Adopted Budget (QR1)	December QR Adjustments	December QR Revised Budget	YTD Actual
Net Operating Result including Capital Grants & Contributions	26,273	-3,310	22,963	83,630
Net Operating Result excluding Capital Grants & Contributions	-16,372	2,273	-14,099	66,213

Income is tracking to meet the full‑year forecast. While there was a $3M reduction in this QBR for the Waste Materials Resource Facility income due to delays, this has been offset by increased waste management rates, higher returns on investment, and the break gain earned from early loan repayment. User fees and charges have achieved 46.4% of total budget as at this quarter and are expected to continue growing during the peak summer period in Quarter 3.

Finance is closely monitoring actual expenditure across Council. Improvements in financial culture, embedded across the organisation over the past two financial years, have contributed to a stronger fiscal outcome. YTD expenditure is $131.5M compared with a full year revised budget of $281.9M, representing 46.65% of the full‑year budget, which is considered an appropriate YTD spend.

YTD actual employee costs are currently 47.65% of the full‑year budget. With the peak summer season continuing into Quarter 3, more seasonal casuals will be employed to service the community. Termination payments resulting from the recent organisational restructure have been fully absorbed through vacancy savings and the remaining budget from disestablished positions. Council is on track to meet the full year employee cost budget.

Materials and services expenditure represent 44.2% of the full year budget and is on track to finish the financial year within budget.

The projected unrestricted cash balance at 30 June 2026 has been revised down from $21.1M in Quarter 1 to $13.7M, mainly due to adjustments in the timing of Council’s land sales program ($5.7M) and delays in the opening of the Materials Recovery Facility (MRF) operations ($2.4M). Gains from the early repayment of loans have partially offset these negative movements.

Performance Measures

The revised forecasts of the Office of Local Government (OLG) performance measures for the 2025-26 financial year are detailed in Table 5 below.

Table 5: Revised forecast of OLG Performance Measures

Ratio	December revised forecast	Benchmark	Pass/Not Met	State average 23/24
Operating Performance Ratio	-4.6%	>0%	Not Met	1.1%
Own Source Revenue Ratio	82.7%	>60%	Pass	58.6%
Debt Service Cover Ratio	1.77	>2.00	Not met	26.89
Infrastructure Renewal Ratio	63.95%	100%	Not Met	130%

Note: Debt Service Cover Ratio is not met this quarter. This is expected due to the proposed early loan repayments. If the early loan repayments do not proceed, the ratio would be met. Staff will work with NSW Treasury Corp to have this metric adjusted for FY2025-26 if early repayments are approved.

Cash and Investments

Council held $269.6M in cash and investments at 31 December 2025. This is split between amounts externally restricted, internally restricted, and amounts unrestricted. Council’s cash and investments are reported in Attachment 2 – Quarterly Budget Review Report - December 2025.

Preliminary Water Fund Year End Results and Quarterly Review Movements

Council’s Water Fund revised budget for FY2025-26 was projecting a surplus before capital of $4.3M and Operating Performance Ratio of positive 8.9%. This quarterly review has identified a net favourable result in Water Fund’s position to a projected surplus before capital of $5.5M, and Operating Performance Ratio of positive 11.1%.

This favourable result is due to the growth of water connections being greater than predicted, the forecasted interest income being greater than predicted, and realised labour and employee cost savings being returned to the Water Fund. These positive adjustments are offset by a reduction in water usage, and a required increase in materials budget. This results in a net favourable movement of $1.2M.

The following table presents a high-level summary of the budget and movements for the Water Fund for Quarter 2 2025-26:

Table 6: Water Fund budget movements for 2025-26

($'000)	Current Adopted Budget	QR Adjustments	December QR Revised Budget	YTD Actuals
Favourable / (Unfavourable)	Current Adopted Budget	QR Adjustments	December QR Revised Budget	YTD Actuals
Net Operating Result including Capital Grants & Contributions	16,210	-1,732	14,478	7,665
Net Operating Result excluding Capital Grants & Contributions	4,272	1,206	5,478	2,099

Preliminary Sewer Fund Year End Results and Quarterly Review Movements

Council’s Sewer Fund revised budget for FY2025-26 was projecting a surplus before capital of $15.022M and an Operating Performance Ratio of positive 20.7%. This quarterly review has identified a net slightly unfavourable result in Sewer Fund’s position of a projected surplus before capital of $15.007M, and Operating Performance Ratio of positive 20.6%.

The decrease in the projected surplus is due to the favourable reduction in operational materials and increased projected interest income being offset by increased required labour and employee costs. This results in a net unfavourable movement of $15K.

The following table presents a high-level summary of the budget and movements for the Sewer Fund for Quarter 2 2025-26:

Table 7: Sewer Fund budget movements for 2025-26

($'000)	Current Adopted Budget	December QR Adjustments	December QR Revised Budget	YTD Actuals
Favourable / (Unfavourable)	Current Adopted Budget	December QR Adjustments	December QR Revised Budget	YTD Actuals
Net Operating Result including Capital Grants & Contributions	17,047	-15	17,032	10,287
Net Operating Result excluding Capital Grants & Contributions	15,022	-15	15,007	9,378

Capital Projects Progress Overview

· The current adopted FY 2025-26 capital works program consists of 365 projects with a total capital works program of $152.4M. Projects by Fund are split as follows:

o 328 General Fund projects totalling $76.6M

o 22 Water and Sewer Fund projects totalling $64.9M

o 15 Waste Reserve projects totalling $11.1M

· The proposed program for adoption at Quarter 2 consists of 365 projects with a total capital works program of $121.9M ($30.5M decrease). Projects by fund are split as follows:

o 328 General Fund projects totalling $57.76M ($18.1M decrease)

o 22 Water and Sewer Fund projects totalling $52.5M ($12.5M decrease)

o 15 Waste Reserve projects totalling $11.64M ($52K increase)

· Of the $30.5M decrease, there is $21.1M in proposed carry forwards into FY2026-27 (refer below for further information) and $9.4M in other adjustments, notably a $4.9M reduction in plant and fleet purchases no longer required or delayed following the fleet review, and $2.9M from the JBT water infrastructure extension project completed under budget.

· The YTD FY 2025-26 capital works program is $44.2M spent, which represents a completion of 36%. Completion by Fund is split as follows:

o $21.7 General Fund projects (38% Spent)

o $18.4 Water and Sewer Fund projects (35% Spent)

o $4.1 Waste Reserve projects (35%Spent)

A 38% capital expenditure for general fund projects as of 31 December 2025 is in line with the expected position as of the QBR1 report. It is currently expected that Q3 will see an increased rate of expenditure due to some key projects namely, the Road Reseal Program, completion of the MRF, West Nowra Waste Cell 3H, Plant and Fleet Renewals, Yalwal Road & George Evans Road intersection and 16 Berry St Nowra demolition. These projects collectively have $15.5M of expenditure budget remaining this financial year.

While the overall program has decreased in size, some individual projects have required an increase in expenditure budget, namely, $966K from the unspent Waste Education Centre loan for the MRF to see out the final commissioning and operation of the facility, $1.49M from the Section 7.11 reserve relating to a Works in Kind Agreement on the 70 Hillcrest Ave development for which the timing of the payment to the developer was uncertain until recently, and $539K in new grants for the Urban Rivers and Catchments Program following a successful grant application.

The general fund portion (unrestricted cash) of the program remains unchanged at $6.5M.

Proposed Carry Forwards for FY2025/26

A carry forward is a capital project which commenced in the 2025-2026 financial year but will not be completed by 30 June 2026.

Council carry forwards into FY 2026-27 to be considered at the December 2025 quarterly budget review (QBR2) are as follows:

· Total Carry forwards proposed at QBR2 total $21.1M

· Of this, Shoalhaven Water and Sewer Funds constitute $6.96M, Waste Reserve $850K, and the balance of $13.3M is to be delivered by General Fund.

· Of the $13.3M in General Fund carry forwards $4.3M relates to the fully grant funded Shoalhaven Roads Package which has been rephased to future years in line with the agreed program with the federal government, $2.1M relates to the Moss Vale road URA development works, $900k relates to the Nowra Riverfront development, $870K for the Woollamia Depot renewal and $800K for the Nowra Admin fire Compliance works.

A more detailed list by program is provided in Attachment 2 – Quarterly Budget Review Report - December 2025

Council will continue to refine the FY 2025-26 capital works program throughout the March 2026 quarter. The Enterprise Project Management Office (ePMO) continues to actively monitor the appropriateness of budget phasing and project deliverability. Any carry forwards identified in the March 2026 quarterly budget review will be considered for post exhibition changes in the final DPOP.

Financial Sustainability Productivity and Efficiency Update

Progress continues on the Sustainable Financial Futures Plan (SFFP) adopted in December 2024. The SFFP identified $7M in General Fund operational savings in FY2025-26, with a further $1M per annum to be delivered over the following three years. As reported last quarter (CL25.398), savings are expected to exceed $7M, and Quarter 2 results continue to support this outcome. SFFP savings to Quarter 2 total $7.45M, and the Financial Sustainability Reserve balance increased from $4.9M to $5.3M this quarter from the transfer of one‑off sale proceeds and recurrent Plant and Fleet savings.

To date, the SFFP has delivered permanent recurrent savings of $7.435M to the General Fund through:

· Revenue increases: Fees and charges review $500K

· Employee cost savings: $5.1M

· Reduced operational costs from Staff 3% Challenge: $1.1M

· Plant and fleet operational savings of $450K achieved through reduced holdings

· Reduced facilities operating hours, delivering savings of $286K per annum

Employee cost savings of $5.1M were delivered through workplace changes. $1.6M was achieved through the executive restructure on 2 December 2024 and a further $3.5M was achieved following a definite decision on 27 October 2025 which included the disestablishment of 52 roles, the creation of 12 permanent positions, and the realignment of reporting lines to improve efficiency, capability, and financial sustainability.

In Quarter 2, $299K was added to the Financial Sustainability Reserve, achieved through additional one-off plant and fleet sale proceeds ($264K) and related operational savings ($35K). This adds to the savings made in quarter 1, bringing the FY2025-26 year to date one-off plant and fleet sale proceeds to $791K and related operational savings to $450K.

The SFFP is complemented by planned land sales over four years ($28M FY2026-29). This quarter, land sale forecasts were adjusted downwards due to timing adjustments ($5.7M); however, the current forecast across the SFFP four-year period remains at $28M. Category 2 properties are currently being prepared for rezoning and reclassification to enable future sale.

Council continues to implement the Sustainable Financial Futures Plan, with 42 of 75 actions completed to date. In December, the Community Infrastructure Needs Analysis was completed (informing the update of the Community Infrastructure Strategic Plan), and the internal Budget Policy was completed.

See Attachment 3 for more detail on Council’s progress toward a sustainable financial future.

Quarterly Notices of Motion Reports

The full report of Uncompleted and Completed Notices of Motions have been attached as Attachment 4 and Attachment 5, respectively.

Risk Implications

Publishing this report and the attached documents for public information is important for maintaining transparency and accountability as it provides the community with information about Council’s progress and performance against the adopted 2025-26 Operational Plan and adopted SFFP.

Internal Consultations

Council staff from across the organisation have provided information to compile the report – as part of existing reporting processes.

External Consultations

No external parties were consulted to produce this report.

Community Consultations

The community is consulted via public exhibition as part of the development of the DPOP and Budget each year.

Subject to Council’s endorsement, the Quarterly Performance report will be made available on Council’s website. A range of other communication methods may also be used to communicate the outcomes of the report including performance highlights across Council’s social media platforms.

Policy and Statutory Implications

This report is an important component of fulfilling Council’s integrated planning and reporting responsibilities required by the Local Government Act 1993.

Financial Implications

The proposed changes result in a forecast unrestricted cash balance as at 30 June 2026 of $13.7M. The budgeted general fund operational and capital expenditures do not exceed the general revenue and available internal and external restrictions of the Council and consequently the adjustments conform to the requirement of no cash deficit budgeting.

Ordinary Meeting – Tuesday 24 February 2026

Page 0

CL26.26 Ongoing Register for Pecuniary Interest Returns - January 2026

HPERM Ref: D26/15079

Department: Business Assurance & Risk

Approver: Katie Buckman, 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 January 2026 to 31 January 2026 as required under Section 440AAB of the Local Government Act 1993 and Part 4.26 of Council’s adopted Code of Conduct (implemented in accordance with the Model Code of Conduct released by the Office of Local Government).

Recommendation

That the report of the Chief Executive Officer regarding the Ongoing Register of Pecuniary Interest Returns lodged for the period of 1 January 2026 to 31 January 2026 be received for information.

Community Strategic Plan:

4 Transparent leadership with good governance

4.3 Effective collaboration and engagement

Delivery Program / Operational Plan

4.3.1 Develop community trust and respect through transparent interactions and reporting

Background

Under Section 440AAB of the Local Government Act 1993 and Part 4.26 of Council’s adopted Code of Conduct (the Code), 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 4.21 of the Code states:

“A Councillor or designated person must make and lodge with the Chief Executive Officer a return in the form set out in schedule 2 to this Code, disclosing the Councillor’s or designated person’s interests as specified in schedule 1 to this Code within 3 months after:

a) becoming a Councillor or designated person, and

b) 30 June of each year, and

c) the Councillor or designated person becoming aware of an interest they are required to disclose under schedule 1 that has not been previously disclosed in a return lodged under paragraphs (a) or (b).”

In regard to this, Part 4.26 of the Code 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 and, in this instance, is lodged under Part 4.21(a) of the Code.

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
Shoalhaven Water	Kane Mitchell	8 December 2025	9 January 2026
City Development	David Zabell	12 January 2026	15 January 2026
City Development	Emma Struys	12 January 2026	14 January 2026
City Development	Hailey Smalle	8 December 2025	20 January 2026
City Development	Robert Toohey	12 January 2026	27 January 2026
City Development	Jesse Curtis	1 December 2025	30 January 2026
City Development	Noah Roper	2 December 2025	30 January 2026

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.

Risk Implications

A failure to meet 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.

Failure of a designated officer or Councillor to complete a return within the required timeframe or include relevant information in a return may amount to a breach of Part 4 of the Code of Conduct. Allegations of such are to be referred to the Office of Local Government for investigation in accordance with the Procedures for the Code of Conduct.

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, Council’s adopted 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, Council’s adopted Code of Conduct, and the Government Information (Public Access) Act, 2009.

Policy and Statutory Implications

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

Financial Implications

There are no financial implications for this report.

Ordinary Meeting – Tuesday 24 February 2026

Page 0

CL26.27 Investment Report - December 2025

HPERM Ref: D26/41763

Department: Finance

Approver: Katie Buckman, Director - City Performance

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

2. Statement of Investments - December 2025 (under separate cover) ⇨

Purpose:

To advise Councillors and the community of Council’s investment portfolio and performance as at 31 December 2025.

The report also ensures compliance with Section 625 of the Local Government Act 1993 and Clause 212 of the Local Government (General) Regulation 2021, which require a written report to Council detailing all funds invested.

Summary and Key Points for Consideration:

§ Council’s total Investment Portfolio returned 4.53% per annum in December 2025.

§ This result outperformed the AusBond Bank Bill Index benchmark of 3.71% p.a. by 82 basis points (0.82%).

Recommendation

That Council receive the Record of Investments for the period ending 31 December 2025.

Community Strategic Plan:

4 Transparent leadership with good governance

4.1 Financial Sustainability

Delivery Program / Operational Plan

4.1.1 Support Council’s sustainable delivery of projects and corporate services through sound financial management and control

Background

Investment Portfolio

Council’s investment balance as at 31 December 2025 totalled $269.63 million and consisted of the following types of investments:

The details of each investment held by Council as at 31 December 2025 is included in the Statement of Investments at Attachment 2.

The graph below illustrates natural fluctuations of Council’s investments balance on a rolling 12-month basis due to the timing of expenditure and receipt of rates and grant funding. The investment balance showed little movement, consistent with the usual December holiday period.

Portfolio Return

For December, the total investment return was 4.53% p.a., outperforming the AusBond Bank Bill Index (3.71%) by 82 basis points.

Investments

Graph 1 below, shows the performance of Council’s Investment Portfolio against the benchmark on a rolling 12-month basis.

Investment Interest Earned – December 2025

A significant portion of Council’s cash holdings is subject to restrictions that limit how those funds may be used. These restrictions arise from several sources:

· External bodies, such as specific-purpose grants that remain unspent

· Legislation, including developer contributions, domestic waste management charges, and water and sewer funds

· Council resolutions, which establish internally restricted reserves for designated purposes

Under the relevant legislation, interest earned on externally restricted cash must be attributed back to the specific external restrictions to which the funds relate.

The following two tables present the allocation of interest income across the applicable Funds.

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

Table 1 - Interest Earned for the Month of December 2025

Fund	Monthly Budget $	Actual Earned $	Difference $
General	454,713	583,897	129,184
Water	175,045	201,014	25,969
Sewer	113,691	172,297	58,606
Total	743,449	957,208	213,759

The interest earned for the month of December 2025, was $957,208 compared to the monthly budget of $743,449.

Investment Interest Earned - Year to Date

Table 2 below, demonstrates how the actual amount of interest earned year to date has performed against the 2025/26 budget.

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

Fund	Total Annual Budget $	Actual YTD $	% Achieved
General	5,353,884	3,330,618	62%
Water	2,061,012	1,224,921	59%
Sewer	1,338,624	935,389	70%
Total	8,753,520	5,490,928	63%

As at the end of December, Council has earned $5,490,928, representing 63% of the full‑year budget.

Within the General Fund total of $3,330,618:

· Interest on unspent s7.11 developer contributions: $784,450

· Interest on Domestic Waste Management reserves: $477,121

After accounting for these externally restricted components, the remaining $2,069,047 is unrestricted.

All investment earnings on externally restricted funds continue to be allocated in accordance with legislative requirements. Interest from unrestricted funds is included in Council’s budget and contributes to Council’s general revenue and supports core service delivery.

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.

Risk Implications

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

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.

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 POL25/9.

Mathew Badcock Date: 10 February 2026

Ordinary Meeting – Tuesday 24 February 2026

Page 0

CL26.28 Investment Report - January 2026

HPERM Ref: D26/46930

Department: Finance

Approver: Katie Buckman, Director - City Performance

Attachments: 1. Monthly Investment Review - January 2026 (under separate cover) ⇨

2. Statement of Investments - January 2026 (under separate cover) ⇨

Purpose:

To advise Councillors and the community of Council’s investment portfolio and performance as at 31 January 2026.

Summary and Key Points for Consideration:

§ Council’s total Investment Portfolio returned 4.55% per annum in January 2026.

§ This result outperformed the AusBond Bank Bill Index benchmark of 3.64% p.a. by 91 basis points (0.91%).

Recommendation

That Council receive the Record of Investments for the period ending 31 January 2026.

Community Strategic Plan:

4 Transparent leadership with good governance

4.1 Financial Sustainability

Delivery Program / Operational Plan

4.1.1 Support Council’s sustainable delivery of projects and corporate services through sound financial management and control

Background

Investment Portfolio

Council’s investment balance as at 31 January 2026 totalled $270.93 million and consisted of the following types of investments:

The details of each investment held by Council as at 31 January 2026 is included in the Statement of Investments at Attachment 2.

The graph below shows Council’s investment balances over a rolling 12‑month period. Fluctuations occur throughout the year due to the timing of major expenditures, rate receipts, and grant funding. A $1.4 million grant received from Transport for NSW contributed to the increase in Council’s investment portfolio in January.

Portfolio Return

For January, the total investment return was 4.55% p.a., outperforming the AusBond Bank Bill Index (3.64%) by 91 basis points.

Investments

Graph 1 below, shows the performance of Council’s Investment Portfolio against the benchmark on a rolling 12-month basis.

Investment Interest Earned – January 2026

A significant portion of Council’s cash holdings is subject to restrictions that limit how those funds may be used. These restrictions arise from several sources:

· External bodies, such as specific-purpose grants that remain unspent

· Legislation, including developer contributions, domestic waste management charges, and water and sewer funds

· Council resolutions, which establish internally restricted reserves for designated purposes

Under the relevant legislation, interest earned on externally restricted cash must be attributed back to the specific external restrictions to which the funds relate.

The following two tables present the allocation of interest income across the applicable Funds.

Table 1 below, shows the interest earned for the month of January 2026.

Table 1 - Interest Earned for the Month of January 2026

Fund	Monthly Budget $	Actual Earned $	Difference $
General	454,713	613,660	158,947
Water	175,045	211,260	36,215
Sewer	113,691	181,080	67,389
Total	743,449	1,006,000	262,551

The interest earned for the month of January 2026, was $1,006,000 compared to the monthly budget of $743,449.

Investment Interest Earned - Year to Date

Table 2 below, demonstrates how the actual amount of interest earned year to date has performed against the 2025/26 budget.

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

Fund	Total Annual Budget $	Actual YTD $	% Achieved
General	5,353,884	3,944,278	74%
Water	2,061,012	1,436,181	70%
Sewer	1,338,624	1,116,469	83%
Total	8,753,520	6,496,928	74%

As at the end of January, Council has earned $6,496,928, representing 74% of the full‑year budget.

Within the General Fund total of $3,944,278:

· Interest on unspent s7.11 developer contributions: $902,832

· Interest on Domestic Waste Management reserves: $547,245

After accounting for these externally restricted components, the remaining $2,494,201 is unrestricted.

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.

Risk Implications

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

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.

Statement by Responsible Accounting Officer

Mathew Badcock Date: 10 February 2026

Ordinary Meeting – Tuesday 24 February 2026

Page 0

CL26.29 Proposed Grant of Easement to Endeavour Energy for Community Battery - Part Lot 36 DP 258600, Jacobs Drive, Sussex Inlet

HPERM Ref: D25/576289

Department: Buildings & Property Services

Approver: Kevin Norwood, Director - City Services

Purpose:

The purpose of this report is to seek approval for the grant of an easement for a proposed community battery installation and associated compensation.

Endeavour Energy have provided Council with notice of their intention to conduct works on Council Community land, known as Jacobs Drive Reserve, Lot 36 DP 258600, Jacobs Drive, Sussex Inlet for the installation of a community battery.

Endeavour Energy requires the grant of an easement for ongoing access and maintenance over the Council owned Community land for the battery installation.

Recommendation

That Council:

1. Grant an easement for construction and maintenance of a community battery pursuant to Section 46(1)(a1) of the Local Government Act 1993, approximately 18m² area (subject to final survey) over Council owned Community land known as Lot 36 DP 258600, Jacobs Drive, Sussex Inlet in favour of Endeavour Energy as shown on Figure 2 to this report.

2. Accept payment in the amount of $8,000 (excluding GST) including compensation for the grant of easement.

3. Consent to Endeavour Energy being responsible for preparation of the plan of easement including plan registration with NSW Land Registry Services.

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

Background

Proposal

Endeavour Energy has approached Council seeking an easement for a proposed community battery installation on Council land. Lot 36 DP 258600, Jacobs Drive, Sussex Inlet (Jacobs Drive Reserve) is Council owned Community land shown on Figure 1.

Figure 1 – Proposed location of community battery (red)

The community battery consists of a 50kW battery bank unit with a separate switchboard control panel. The battery and switchboard will be installed on a concrete pad at existing ground level and earthing will be localised in accordance with AS/NZS 3000 requirements.

There will be minor excavation required to install the concrete culvert on which the equipment will be positioned as well as underground electricity cabling between the battery and power pole located in the footpath of Jacobs Drive.

The Community Battery Scheme

In conjunction with the Federal and NSW State Governments, Endeavour Energy is proposing to install community batteries around sites in the Shoalhaven. Endeavour Energy have undertaken consultation with Council with respect to their Community Battery Project including the site identified in this report.

Community batteries store energy generated by the sun to be shared by homes within a neighbourhood. Solar energy is collected via roof-top solar installations on individual homes and transferred to the battery, for individual use when required. Community batteries provide people without roof top solar panels with access to renewable energy. Community batteries can lower household electricity costs and reduce the carbon footprint. They also reduce pressure on the electricity grid and improve the reliability of the electricity network and thereby reduce the cost of electricity for customers.

Easement

Endeavour Energy may enter Council land to undertake the installation works for the community battery and ongoing maintenance without consent pursuant to Section 45 of the Electricity Supply Act 1995 (NSW).

Endeavour Energy has requested an easement be granted by Council to ensure permanent access and formalising maintenance of the battery located on Council land. Future maintenance and liability obligations of the community battery will be the responsibility of Endeavour Energy.

The subject land is classified as Community land and categorised as Park pursuant to the Local Government Act 1993. Section 46(1)(a1) of the Act gives Council the power to grant easements over Community land for the purpose of providing pipes, conduits or other connections under the surface of the ground for the connection of premises adjoining the community land to a facility of the Council or other public utility provider.

Council has previously granted a similar easement to Endeavour Energy for the construction and maintenance of a community battery at Cambewarra.

The proposed easement will have minimal impact upon the public’s current use and amenity of the land and has commensurate size to existing electricity supply power poles and transformers across the area.

The total easement area is approximately 18m² subject to final survey as shown in red on Figure 2.

Figure 2 – Proposed easement plan (subject to final survey)

Risk Implications

It is normal practice to allow for an interest in land in the form of an easement with compensation determined by valuation. Council’s interests have been considered and there is minimal risk associated with the recommended grant of easement.

Internal Consultations

Internal consultation has been undertaken with the following sections of Council:

· Environmental Projects & Sustainability

· Community Infrastructure Planning

· Civil Infrastructure Planning

· Open Space & Recreation

· Shoalhaven Water

External Consultations

Council has engaged a certified practicing valuer to determine the compensation amount for the proposed easement.

Community Consultations

Community consultation on the installation of the battery was undertaken in April 2025 by Endeavour Energy as part of the environment assessment and determination process.

Endeavour Energy will be the determining authority under Part 5 of the Environmental Planning and Assessment Act 1979 for this project. Endeavour Energy directly notified owners/occupiers adjoining the community land of the proposal under s45 of the Electricity Supply Act 1995 (NSW).

Council has also conducted statutory notice of the proposed grant of easement over Council’s Community land pursuant to the Local Government Act 1993 including publication of the proposed grant of easement on Council’s website, letter drop to surrounding residents and a notice/sign being placed on the subject land.

Two submissions were received during the public notification period. The issues raised primarily related to the proposed battery installation rather than the granting of the easement. The submissions were subsequently forwarded to Endeavour Energy as the determining authority for consideration.

Policy and Statutory Implications

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

Financial Implications

Council engaged a suitably qualified valuer to undertake a valuation for compensation payable by the applicant to Council for the grant of an easement. The amount of compensation was assessed at $4,000 (excluding GST).

Endeavour Energy has offered to pay compensation to Council in good faith for the grant of the easement of $8,000 excluding GST. This amount includes the costs incurred by Council in procuring the valuation report ($1,500 excluding GST). Accordingly, Council will receive net compensation of $6,500(excluding GST) for the grant of the easement which exceeds the amount recommended by Council’s valuer.

The applicant will be responsible for all costs in the creation of the easement including survey plan and registration at NSW Land Registry Services.

Compensation received by Council will be allocated to the Easement right of use income and the surplus deposited into Council’s general fund.

Vendor
Mountain View Crematoria Pty Ltd
Invocare Australia Pty Ltd
Murstone Pty Ltd
Harnwell Group Pty Ltd

Ordinary Meeting – Tuesday 24 February 2026

Page 0

CL26.32 Exhibition Outcomes and Finalisation - 2024 Berry Heritage Review - Shoalhaven Local Environmental Plan 2014 (PP075) and Shoalhaven Development Control Plan 2014 Amendments

HPERM Ref: D25/556408

Department: Strategic Planning

Approver: Emma Struys, Director - City Development

Attachments: 1. Draft DCP Chapter N2 - Town of Berry - Post Exhibition version (under separate cover) ⇨

2. Draft DCP Dictionary Amendment - Post Exhibition Version (under separate cover) ⇨

3. Submission Summary - Planning Proposal PP075 - Berry Heritage Review (under separate cover) ⇨

4. Submission Summary - Draft DCP Chapter N2 Town of Berry (under separate cover) ⇨

Purpose:

This report provides details the outcomes from the public exhibition of the 2024 Berry Heritage Review Planning Proposal (PP075) to amend the Shoalhaven Local Environmental Plan 2014 (LEP) and draft new Shoalhaven Development Control Plan 2014 (DCP) Chapter N2: Town of Berry and seeks Council’s endorsement to finalise both via the outlined amendments.

Recommendation

That Council

1. Adopt the Planning Proposal (PP075) largely as exhibited, with the removal of 45 Prince Alfred Street, Berry that will not proceed to be heritage listed.

2. Request the NSW Department of Planning, Housing and Infrastructure to draft and finalise the amendment to the Shoalhaven Local Environmental Plan (LEP) 2014 Schedule 5 to introduce the new Heritage Conservation Area (HCA) in the area of Princess Street, Berry and the additional new heritage items (nine) within the HCA and (eight) outside the HCA, but within the area of Berry east of the Princes Highway, Berry.

3. Endorse the new Chapter N2: Town of Berry and supporting documents at Attachment 1 and the Dictionary amendment at Attachment 2, inclusive of the post-exhibition amendments highlighted throughout both Attachments, for incorporation into the Shoalhaven Development Control Plan (DCP) 2014.

4. Update Supporting Map 2: Heritage Conservation Area Contributory Item Map of DCP Chapter N2: Town of Berry, as required, to remove properties that become heritage listed items in accordance with 2 above.

5. Publish a public notice advising that the amendment to Shoalhaven DCP 2014 will commence on 24 March 2026.

6. Advise key stakeholders, relevant landowners and submitters of this resolution.

Community Strategic Plan:

2 Sustainable environments and liveable communities

2.2 Liveable neighbourhoods and sustainable development

4 Transparent leadership with good governance

4.3 Effective collaboration and engagement

Delivery Program / Operational Plan:

2.2.1 Facilitate sustainable development that considers current and future needs of our community and environment

4.3.1 Develop community trust and respect through transparent interactions and reporting

4.3.2 Provide opportunities for the community to have genuine engagement on Council planning and decision making

Background

On 11 September 2023 Council resolved (MIN23.496) to prioritise the introduction of a new Heritage Conservation Area (HCA) in the vicinity of Princess Street, additional new heritage listings into the LEP and also a new DCP Chapter for Berry, east of the Princes Highway, as part of Stage 1 of the new Shoalhaven Land Use Planning Scheme.

The Council resolution responded to community requests, including from the Berry Forum in 2022, to strengthen the local character and heritage considerations/protections, arising from community concerns about the impact of unsympathetic development in Berry.

From late 2023 to June 2024, Council engaged independent consultants to review the heritage proposals and undertake early community engagement to inform the new DCP Chapter. Following this, Council resolved on 29 July 2024 (MIN24.396) to proceed to prepare a Planning Proposal (PP) for the heritage related amendments to the LEP and to prepare the new draft DCP Chapter, with the work to be undertaken ‘in-house’ by Council staff.

The NSW Department of Planning, Housing and Infrastructure (DPHI) subsequently issued a favourable Gateway determination for the PP on 19 June 2025, but did not give Council delegation to finalise the LEP amendment.

On 29 April 2025 Council considered the draft new DCP Chapter N2: Town of Berry and supporting Dictionary amendment and resolved (MIN25.205) to place them on public exhibition with the PP to enable community review/feedback – see the ‘Community Consultations’ section of the report below for further discussion on exhibition outcomes.

Risk Implications

There is no direct risk to Council in finalising the PP and DCP Chapter.

Not progressing to finalise the heritage and planning controls as recommended may limit Council’s ability to manage unsympathetic development through the assessment process, which could impact on the existing heritage significance and character of Berry and would contradict community expectations and raise concern.

Internal Consultations

Internal consultation was undertaken with Council’s asset planners and managers in relation to land owned or managed by Council that is directly affected by the proposed HCA and heritage listings.

Consultation was also undertaken with staff in Council’s City Services and City Development directorates during the development of the draft DCP Chapter.

External Consultations

Council referred the PP to Heritage NSW in December 2024 (prior to submitting to DPHI) and the NSW Rural Fire Service (RFS) in accordance with the conditions of the Gateway determination.

Heritage NSW provided support for the PP and the RFS raised no objections to the PP. The submissions received from both agencies are linked below under Community Consultation.

Community Consultations

The Planning Proposal (PP075) and the draft DCP Chapter were publicly exhibited concurrently for 45 days from 6 August to 19 September 2025 (inclusive) on Council’s website.

The exhibition material for Planning Proposal (PP075) included:

· Explanatory Document

· Planning Proposal

· Heritage NSW Submission

· NSW RFS Submission

· Gateway Determination & Cover Letter (DPHI)

· FAQs

· Public Notice

The exhibition material for the draft DCP Chapter included:

· Explanatory Document

· Draft Chapter N2: Town of Berry

· Draft Supporting Map 1 – Berry Town Centre

· Draft Supporting Map 2 – Heritage Conservation Area Contributory Items

· Draft Dictionary amendment

· FAQs

· Public Notice

Notification letters were sent to all landowners within the proposed DCP area and/or affected by the heritage proposals (in the PP).

Notifications were also sent to relevant community groups and subscribers who had previously registered their interest in this project (via Councils ‘Get Involved’ page).

Two community ‘drop-in’ information sessions were held during the exhibition period on the 19August 2025 - one in Broughton Court, Berry and one at the Berry School of Arts.

34 submissions were received in total via Council’s website, email and feedback forms completed at the drop-in sessions. Approximately half of the submissions made comments on both the PP and draft DCP Chapter. The submissions and resulting proposed changes are discussed further below.

Planning Proposal (PP075) - Submissions

30 submissions commented on or responded to the PP and an overview of this feedback is provided below in Table 1.

Table 1: PP submissions

Key submission points / comments	Total	% of submissions
Supports the proposal	15	50%
Does not support the proposal – affected landowner or landowner representative	10	33%
Provided feedback only	3	10%
Does not support the proposal – other stakeholder	2	7%
	30	100%

Of the submissions stating non-support, eight were received from/or on behalf of owners whose properties are proposed for individual heritage listing. It is noted that each of these properties had previously been identified for heritage listing via the 2019 Berry Heritage Amendment (PP056) but the landowners at the time objected and Council resolved not to proceed to list them. Two submissions stating non-support were received from landowners within the proposed Princess Street HCA.

A more detailed summary of submissions and staff comments on them is provided at Attachment 3.

Copies of the submissions received will be available in the Councillors Room prior to the meeting.

Proposed post-exhibition changes - PP075

Two submissions objected to the proposed heritage listing of 45 Prince Alfred Street - one from the property owner and the other from an experienced heritage consultant engaged by the owner. The heritage consultants submission argues that the building has a low level of intactness due to previous, extensive building modifications which detract from its heritage significance. This submission provides detailed supporting evidence. Upon review of this evidence and the historical building files for the property, both Council staff and Council’s independent heritage consultant concur with the findings presented in the submission. As a result, it is recommended that 45 Prince Alfred Street be removed from the PP and not be heritage listed.

A number of submissions objected to the proposed heritage listing of other properties and disagreed with the assessed significance and intactness of the items. From a review of available building files and external visual inspections these properties appear to retain a high level of original historic building fabric, consistent with the heritage assessments, which support their retention in the PP. As such, no other changes are recommended to the PP.

Draft new DCP Chapter N2: Town of Berry – Submissions

A total of 22 submissions were received that commented on the draft DCP Chapter. The majority (16 submissions - 73%) provided support for the draft DCP Chapter.

The submissions commented on specific development controls as well as the broader function and purpose of the DCP. A more detailed summary of submissions and staff comments on them is provided at Attachment 4.

Copies of the submissions received will be available in the Councillors Room prior to the meeting.

Proposed post-exhibition changes - draft new DCP Chapter N2: Town of Berry

Changes are proposed to the draft DCP Chapter, supporting maps and supporting draft Dictionary amendment following consideration of matters raised in submissions. The changes generally seek to provide an appropriate balance between flexibility and robustness in the development controls, improve clarity and readability, and address identified issues.

The proposed changes are summarised in a Table of Changes at the beginning of the draft DCP Chapter (Attachment 1) and draft Dictionary amendment (Attachment 2). The actual proposed changes are highlighted blue throughout both attachments.

Policy and Statutory Implications

The PP helps deliver on Council’s Community Strategic Plan action for liveable neighbourhoods and sustainable development in the Delivery Program Operational Plan 2025-26. Operational Plan Action 2.2.1.02 specifically prioritises this piece of work to complete contemporary development and heritage controls for Berry during 2025-26.

If the proposed HCA and heritage listings are endorsed by Council as recommended and ultimately finalised, they will be provided statutory recognition and higher protection in the LEP. The use of the ‘complying development’ pathway is restricted on land mapped as a heritage item or within an HCA, in which case a development application and consideration of Council’s DCP will be required.

If finalised as recommended, the draft new DCP Chapter N2: Town of Berry will replace the existing chapter N2: Berry Town Centre in Shoalhaven DCP 2014 and become a relevant consideration in future development applications within the applicable expanded part of Berry.

It is proposed that the new DCP Chapter become effective on 24 March 2026. Ideally the amendment to the LEP will be finalised alongside this, but this cannot be guaranteed given that this is out of Councils control. Regardless, the new DCP Chapter can stand by itself and guide development if there is a time lag.

Financial Implications

There are no immediate financial implications for Council.

The finalisation of the amendment to the LEP and the adoption of the new DCP chapter will continue to be resourced from the Strategic Planning operational budget.

Ordinary Meeting – Tuesday 24 February 2026

Page 0

CL26.33 1 Wharf Road Shoalhaven Heads - Lot 2, DP701597 - Cost Analysis Report - Land and Environment Court Hearing

HPERM Ref: D25/444921

Department: Development Services

Approver: Judy Clark, Acting Director City Development

Recommendation

That Council receive and note the report.

On 23 September 2025 the Council resolved as follows:

That Council provide a full detailed report and cost analysis outcome over the Land and Environment Court hearing into Lot 2, DP701597 - 1 Wharf Road, Shoalhaven Heads (DA23/1825). The cost analysis should include an audit of council staff hours over the more than 2 and half years of this disputed DA, alongside court costs. [MIN25.374].

Background

Development Application

Development Application DA23/1825 was lodged with Council on 13 October 2023 seeking consent for a proposed two-storey dwelling house with associated earthworks and fill, driveway, landscaping and the removal of a tree (‘the DA’). The DA related to 1 Wharf Road, Shoalhaven Heads, legally described as Lot 2 DP 701597 (‘the Site’).

The Site and proposal are properly described in the report to the Ordinary Meeting on 15 April 2025 [CL25.118] Agenda of Ordinary Meeting - Tuesday, 15 April 2025

A brief chronology of the matter is provided in Table 1 below:

Table 1 Chronology

Date	Event	Details
13/10/2023	DA lodged with Council	Proposed new two-storey dwelling.
19/10/2023	Council issued a request for information to the Applicant (First RFI)	Further details requested regarding the driveway for compliance with the SDCP.
24/10-09/11/2023	Public Notification.	No submissions received.
28/10/2023	Response to First RFI	Provision of revised plans.
17/11/2023	Council issued a request for information to the Applicant (Second RFI)	Applicant required to demonstrate flood planning compliance in accordance with Clause 5.21 of the SLEP and Chapter G9 of DCP.
25/06/2024	Response to Second RFI	Submission of flood risk management plan dated 20 June 2024 and revised architectural plans dated 16 June 2024.
06/09/2024	Council issued a request for information to the Applicant (Third RFI)	Repeated request to demonstrate compliance with Clause 5.21 of the SLEP and Chapter G9 of DCP.
08/11/2024	Response to Third RFI	Submission of revised flood risk management plan dated 7 November 2024.
12/2024	Council engaged Rhelm, independent consultant	Engagement for an independent review of flood-related aspects of the DA and its assessment.
13/12/2024	Council met with the Applicant	Discussions on flooding issues associated with DA.
19/12/2024	Council received report from Rhelm	Rhelm report concluded that: “the proposed development is not considered to be compatible with the flood function or flood characteristics of the land. The supporting documentation has not demonstrated that the risk to life and property associated with flooding can be managed appropriately or meet the objectives of Clause 5.21 of the Shoalhaven LEP 2014”.
20/12/2024	Rhelm report was provided to the applicant	Report was provided to the Applicant. No further information was received to address compliance with Clause 5.21.
21/01/2025	Council resolved to call in the DA for determination by Council	Ordinary Meeting [MIN25.8]. Called in for determination due to the public interest.
12/02/2025	Applicant corresponded with Council	Advised that no further information would be supplied to support the DA and to continue the assessment based on the information submitted.
14/03/2025	Legal proceedings filed	Applicant filed Class 1 proceedings in the Land and Environment Court appealing deemed refusal.
15/04/2025	Council determined the DA	The DA was reported to Council recommending refusal. Council resolved to refuse the DA [MIN25.179].
17-18/07/2025	Conciliation and Hearing	S34AA Conciliation and hearing before Acting Commissioner Moore. All matters with the exception of flooding were agreed as resolved at the Conciliation. The only contention that proceeded to hearing was the flooding contention.
11/09/2025	Judgment and Orders	The Court ordered that: (1) The appeal be upheld. (2) Development consent is granted to development application DA23/1825 for a proposed two-storey dwelling house with associated earthworks and filling of land, driveway and landscaping, and the removal of one tree subject to the conditions.

On 15 April 2025 the application was determined by Council having been called in. The application was refused as recommended, principally on the basis of a lack of technical information on key issues (particularly evacuation). This information was crucial as the wording of Clause 5.21 of the Shoalhaven LEP 2014 requires that development consent must not be granted unless the consent authority is satisfied on a number of measures (the reasons for refusal are included in the attached Council Report).

Insufficient Information

As detailed in Table 1 above, despite numerous requests the Applicant did not provide information demonstrating compliance with clause 5.21 of the Shoalhaven Local Environmental Plan 2014 (SLEP) and/or Chapter G9 of the Shoalhaven Development Control Plan (SDCP). Instead, following the matter being called in by the Council, the Applicant requested that the Council determine the DA based on the information already provided.

Examples of shortcomings in the material provided included:

1. The Applicant’s flood risk documentation:

(a) considered outdated standards/guidelines and did not adequately assess the flood risk and hazard exposed to the proposed development.

(b) did not consider the site to be over a watercourse which is inconsistent to the Lower Shoalhaven River Flood Study 2022.

(c) contained no quantitative modelling to demonstrate that no adverse impacts on flood behaviour were likely to occur as a result of the development.

(d) did not provide a flood evacuation plan that demonstrated safe occupation and efficient evacuation.

2. In relation to the design, the proposed development:

(a) did not utilise flood compatible materials and finishes which could increase flood impacts and result in property damage.

(b) due to the structural characteristics did not minimise the likelihood of damage due to inundation, would not likely withstand flooding and/or restrict flow behaviour of flood waters.

Due to the inadequacy of the information provided, Council staff did not have before them the satisfactory level of information necessary to enable a determination.

Court Proceedings

On 14 March 2025, following the matter being called in by Council and prior to the matter being determined, the Applicant lodged a Class 1 Appeal with the Land and Environment Court on the deemed refusal of the DA.

As the proposed development was for a detached single dwelling s34AA of the Land and Environment Court Act 1979 (the LEC Act) applies. Pursuant to s 34AA of the LEC Act the Court must list the matter for conciliation conference and hearing, generally over a minimum of 2 days. The conciliation conference takes place on the first day. If no agreement is reached, then in accordance with s34AA(b) of the LEC Act, the Commissioner who presides over the conciliation conference must terminate the conciliation conference and commence the hearing on day 2.

During the Court process, additional information was provided. On 26 June 2025, the Applicant provided an updated Evacuation Plan, revised Architectural plans, revised Basix Certificate, Hydraulic Engineer’s Report and the Applicant’s Statement of Facts and Contentions in Reply. This further material enabled agreement on certain matters.

On 17 July 2025 a s 34AA conciliation conference was held before Acting Commissioner Moore on site and in Council offices. During this process the parties reached agreement on a number of issues which limited the remaining matters in contention for the hearing held in Sydney on 18 July 2025 to flood evacuation.

Judgment

On 11 September 2025, the Court upheld the appeal and granted development consent subject to conditions.

The Court was satisfied that the proposal appropriately addressed all relevant planning controls, including flood risk, acid sulfate soils, and other site constraints, and that consent could be granted subject to conditions. It should be noted that the Court approved proposal incorporated flood design changes that differed substantially from the deficient application refused by Council on 15 April 2025.

The Court’s findings can be summarised as follows:

1. The development is permissible with consent in the R2 Low Density Residential zone and is consistent with the objectives of the zone.

2. In relation to flooding, the Court was satisfied that the proposal meets the requirements of clause 5.21 of the Shoalhaven Local Environmental Plan 2014 (SLEP), noting that:

(a) The development can withstand relevant flood forces with appropriate engineering detail.

(b) The impact of the development on flood behaviour is limited to minor, localised changes.

(d) Conditions of consent require adherence to an approved evacuation plan, which the Commissioner found to include appropriate measures to manage risk to life, enable efficient evacuation, and avoid exceeding the capacity of local evacuation routes.

(e) Given the site’s location approximately 40m from the Shoalhaven River and the flat natural ground level, the development will not result in avoidable erosion, siltation, damage to riparian vegetation, or instability of riverbanks or watercourses.

3. The Court relied on the following key documents and evidence:

(a) The Flooding Joint Expert Report.

(b) The Flood Evacuation Plan prepared by SMEC (dated 25 June 2025).

(d) The Lower Shoalhaven River Flood Study by Cardno (2022).

(e) Expert evidence from the Applicant’s engineer confirming the development can withstand a 0.2% AEP flood level of 3.7m and a design velocity of 1.3 m/s.

Design Changes/Improvements

The development that was submitted to Council in 2023 was for a dwelling with an enclosed ground floor that was likely to become inundated in flooding events and be structurally compromised by not allowing adequate waterflow through the structure.

A house with a balcony

AI-generated content may be incorrect.

Figure 1: Design submitted with the DA in 2023

Approved and improved design changes that were introduced during the Appeal process now include the following:

1. raised boat storage area by 0.3m to 1.65m AHD.

2. deleted workshop at ground floor.

3. perforated garage roller doors and appropriate windows at ground floor level.

4. removed filling from the rear of the dwelling.

5. confirmed maximum fill of 250mm.

6. an open first floor balcony facing Wharf Road to provide easier access for emergency services.

7. confirmed the use of flood compatible construction materials below the Flood Planning Level.

8. increased openings and design at ground floor to mitigate extreme flood loads on walls and to allow flood water to flow unrestricted.

A two story house with a garage

AI-generated content may be incorrect.

Figure 2: Amended design submitted to the Court on 26 June 2025 and subsequently approved by the Court

A house with a blueprint

AI-generated content may be incorrect.

Figure 3: Amended front elevation submitted to the Court on 26 June 2025 and subsequently approved by the Court

Costs

The legal expenses for the Class 1 Appeal total approximately $72,000 (including solicitors and barristers fees and exclusive of GST). A further $12,000 (excl. GST) was incurred in external expert fees.

This has been further broken down to include all expenses in considering the Applicant’s amended documentation up to and including 17 July 2025 (the point at which agreement could not be reached between the Applicant’s and Council’s flood experts), being approximately $61,000 in legal costs and approximately $10,000 in expert fees. The matters that could not be agreed between the experts after the proposal was amended cost approximately $13,000 and is the true reflection of the cost of the matters in dispute.

Staff costs or time are not recorded and therefore are not able to be quantified. Staff time was spent assessing the development application, including the assessment of the amending material that was provided during the Court process. This is time that would have been expended irrespective of the Court proceedings.

Council’s General Counsel was the only staff member directly involved in the Court proceedings.

Risk Implications

There is a risk to Council in determining development applications without sufficient information, especially where jurisdictional matters are raised.

Internal Consultations

Development Services and Legal Services teams were consulted in the preparation of this report.

External Consultations

No external consultation was required for the preparation of this report as all information and expertise is available within Council.

Community Consultations

Community consultation was not necessary for the preparation of this report as the report involves information available to Council staff and is for information only.

Policy and Statutory Implications

Not applicable. Report is to be received for information only.

Financial Implications

Not applicable. Report is to be received for information only. If Council seeks further information to that provided in this report, further staffing costs will be incurred.

Ordinary Meeting – Tuesday 24 February 2026

Page 0

CL26.34 Acquisition - Easement for Drainage of Sewage - Part Lot 76 DP 755907 - 66 Wrights Beach Rd, Bream Beach

HPERM Ref: D25/564196

Department: Water Asset Planning & Development

Approver: Andrew McVey, Director - Shoalhaven Water

Purpose:

The purpose of this report is for Council to consider the proposed acquisition of an easement for drainage of sewage over part Lot 76 DP 755907, 66 Wrights Beach Rd Bream Beach, by compulsory acquisition, under the provisions of the Land Acquisition (Just Terms Compensation) Act 1991. The report also seeks Council’s consideration to rescind MIN19.30, adopted on 29 January 2019, as the previously proposed acquisition of an easement for water supply will no longer proceed.

Recommendation

That Council:

1. Rescind MIN19.30.

2. Under the Land Acquisition (Just Terms Compensation) Act 1991 compulsory acquire from Crown Land an easement for drainage of sewage variable width, approximately 1145m² in area (subject to final survey) over part Lot 76 DP 755907, Wrights Beach Rd, Bream Beach.

3. Agrees to pay compensation and costs associated with the acquisition, in accordance with the determination of the Valuer General under the provisions of the Land Acquisition (Just Terms Compensation) Act 1991.

4. Endorse funding for this acquisition from the Shoalhaven Water - Sewer Fund.

5. Make the necessary application to the Minister for Local Government and the Governor for approval of the compulsory acquisition under the Local Government Act 1993.

6. Authorise the common seal of the Council of the City of Shoalhaven be affixed to any documentation required to be sealed and delegates authority to the Chief Executive Officer to sign any documentation necessary to give effect to this resolution.

Community Strategic Plan:

2 Sustainable environments and liveable communities

2.2 Liveable neighbourhoods and sustainable development

Delivery Program / Operational Plan:

2.2.2 Plan for sustainable and resilient water and wastewater infrastructure

Background

At its meeting held on 29 January 2019, Council resolved MIN19.30 as follows:

1. To compulsorily acquire the following easement for Council infrastructure over Crown and Lot 76 DP 755907, subject to resolving Native Title interests, at compensation determined by the Valuer General:

a. An Easement for Water Supply and Sewerage variable width, shown in yellow and marked ‘E’ on the attached plan.

2. To pay compensation and costs associated with the acquisition from Shoalhaven Water’s Sewer and Water Funds. Compensation determined by the Valuer General to be in accordance with the provisions of the Land Acquisition (Just Terms Compensation) Act 1991.

3. That the necessary application be made to the Minister for Local Government and the Governor. The acquisition is to be carried out under the Local Government Act 1993.

4. That the Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed.

Since that time, Council had not received written consent from the perpetual leaseholder, Erowal Bay Holiday Co-operative Limited, as required by Crown Lands to proceed with the acquisition. Concerns continued to be raised by the leaseholder regarding the potential impact of the proposed easements on cabin and van sites, particularly in relation to the pipeline’s location and its implications on future development and the ongoing use and enjoyment of these sites.

To confirm the exact location of the pipeline’s, Council engaged specialist survey services to accurately identify and map the alignment within the site. The survey confirmed that part of the water pipeline traverses some sites and runs beneath certain vans and associated infrastructure. While the sewer pipeline did not cross under any structures, it was found to run in close proximity to some infrastructure and site boundaries.

Further consultation was undertaken, along with additional survey works to physically mark and illustrate the proposed easement onsite to provide a clear visual representation of the location to representatives of the leaseholder. It was then mutually agreed that Council would acquire an easement over the sewer pipeline only, and not the water pipeline as originally proposed.

Although Council’s preference is to secure easements over its infrastructure to ensure legal rights to access for repair and maintenance, it was agreed that Council would not be denied access should the water pipeline require repair or maintenance. Provisions under the Local Government Act also allow Council to enter the site for such purposes.

Council has since received written consent from Erowal Bay Holiday Co-operative Limited to proceed with the easement acquisition. It should be noted that the easement acquisition is an administrative activity to formalise the existing pipeline, which was constructed circa 1983-1994. No construction works will be undertaken.

Crown Land has issued Council an updated consent for the proposed easement for drainage of sewage only. Updated Native Title and Aboriginal Land Claim searches have been completed, confirming the site remains subject to an undetermined Native Title Claim.

Council’s Native Title Manager has reassessed the proposed easement creation under the Future Act regime and considers the activity to be consistent with the provisions of the Native Title Act 1993. Accordingly, NTSCorp, representatives of the claimant, the South Coast People, has been formally re-notified. This notification aligns with procedural rights under the Act, including the issuance of a Proposed Acquisition Notice (PAN), which formally provides notification to interest holders of Council’s intention to compulsory acquire an interest in land.

Figure 1 illustrates the proposed sewer pipeline alignment (shaded in grey).

Figure 1

A map of a water project

AI-generated content may be incorrect.

Risk Implications

Easement acquisition is necessary to ensure Council’s legal rights to access, repair and maintain essential public infrastructure.

Council interests have been considered, and the proposed acquisition presents minimal risk.

Internal Consultations

Consultation has taken place within Shoalhaven Water.

External Consultations

Consultation is ongoing with the Crown Lands and all relevant interest holders, including Native Title holders and NTSCorp.

Community Consultations

Community consultation is not required for operational purposes such as an easement acquisition.

Policy and Statutory Implications

The acquisition of the easement will be undertaken in accordance with Council’s Acquisition of Land by Shoalhaven City Council.

Financial Implications

Compensation and associated acquisition costs will be funded through the Shoalhaven Water - Sewer Fund.

The compensation amount will be determined by the Valuer General in accordance with the Land Acquisition (Just Terms Compensation) Act 1991.

Compensation may be payable to the Department of Planning, Housing and Infrastructure – Crown Land and Native Title Interest Holders.