Agenda of Ordinary Meeting - Tuesday, 10 December 2024

Ordinary Meeting

Meeting Date: Tuesday, 10 December, 2024

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

Time: 5.30pm

Membership (Quorum - 7)

All Councillors

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

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

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

Statement of Ethical Obligations

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

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

Agenda

1. Acknowledgement of Country

Walawaani (welcome),

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

Walawaani njindiwan (safe journey to you all)

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

2. Moment of Silence and Reflection

3. Australian National Anthem

4. Apologies / Leave of Absence

5. Confirmation of Minutes

· Ordinary Meeting - 26 November 2024

6. Declaration of Interests

7. Presentation of Petitions

8. Mayoral Minute

Mayoral Minute

MM24.38..... Mayoral Minute - Fee Waiver for Nowra CBD Christmas Activation............. 1

MM24.39..... Mayoral Minute - Congratulations - 2025 Nowra Show Young Woman Competition........................................................................................................................ 2

9. Deputations and Presentations

10. Notices of Motion / Questions on Notice

Notices of Motion / Questions on Notice

CL24.383..... Rescission Motion - CL24.376 - Post-Exhibition and Finalisation - Planning Proposal - Local Character - Shoalhaven Local Environmental Plan 2014 (PP073)...... 3

CL24.384..... Notice of Motion - CL24.376 - Post-Exhibition and Finalisation - Planning Proposal - Local Character - Shoalhaven Local Environmental Plan 2014 (PP073)...... 4

CL24.385..... Notice of Motion - Call in DA MA24/1370 - Huskisson Hotel......................... 5

CL24.386..... Notice of Motion - Handrail - Gannet Beach Bawley Point............................ 6

CL24.387..... Notice of Motion - Re-Vegetation of Foreshore Areas................................... 7

CL24.388..... Notice of Motion - Markets, Sporting Events and Commercial Promotions at Huskisson....................................................................................................... 8

CL24.389..... Notice of Motion - Albatross Musical Theatre Company - Nowra Youth Hall 9

11. Call Over of the Business Paper

12. A Committee of the Whole (if necessary)

13. Committee Reports

Nil

14. Reports

City Performance

CL24.390..... Report Back - Question on Notice - CEO Resignation - Funding............... 11

City Services

CL24.391..... Narrawallee Creek Road, Lake Conjola - Maintenance Responsibility....... 13

CL24.392..... Proposed New Lease - 2/39 Holloway Road, Nowra.................................. 18

CL24.393..... Lease of Croquet Clubhouse & Courts - Artie Smith Oval, Cambewarra Road, Bomaderry.................................................................................................... 21

CL24.394..... Proposed Land Sales................................................................................... 27

City Development

CL24.395..... Sister City Relationships - The Way Forward.............................................. 33

CL24.396..... Shoalhaven Motor Sports Working Group................................................... 37

Shoalhaven Water

CL24.397..... Review of Public Policies - Communications Site Charging........................ 43

CL24.398..... Tenders - Cambewarra Dam Decommissioning.......................................... 54

15. Confidential Reports

Reports

CCL24.33.... Tenders - Cambewarra Dam Decommissioning

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

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

Ordinary Meeting – Tuesday 10 December 2024

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CL24.389 Notice of Motion - Albatross Musical Theatre Company - Nowra Youth Hall

HPERM Ref: D24/526910

Submitted by: Clr Selena Clancy

Purpose / Summary

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

Recommendation

That Council:

1. Acknowledge that community theatre provides benefits to the people of the Shoalhaven that are not easily measurable in monetary terms.

2. Assess the potential for a long-term or permanent lease for the Nowra Youth Hall. This would enable AMTC and JAM to access grant funding for essential upgrades to the facility. These improvements would benefit the Shoalhaven City Council, AMTC and the Nowra Show Society.

3. Work with the AMTC and Show Society on any proposed future facility upgrades and grant funding opportunities from the NSW Government.

4. Receive a report back on the possibility of a lease be received from the Acting CEO or delegate.

Background

The Nowra Youth Hall is an essential and invaluable resource for AMTC and the company appreciates the opportunity to make use of it. However, unfortunately AMTC hast not been able to secure a lease or any tenure, they simply occupy it on a month-to-month basis.

Further to this, securing a long term arrangement provides security and in turn enhances the potential for this facility to be an excellent resource with some changes, changes that cannot be undertaken without some longevity regarding AMTCs tenure.

The initial changes AMTC would like to make would cost Council very little to nil. AMTC are willing and able to source grants and have members and volunteers who will contribute their professional building skills, in line with Council regulations.

With Council support to expedite/streamline and or simplify the process for the following upgrades to occur to the Nowra Youth Hall (at minimal to no cost to council), AMTC would prioritise the following two projects:

a. Installation of a larger roller door to facilitate set movements (comparable to the SEC’s specifications.

b. Modernising the toilets and changing facilities, which have remained largely unchanged since the building was constructed.

A significant issue and funding drainer which is of considerable inconvenience is that AMTC are under a current arrangement in which the Nowra Show Society demands that they vacate the hall over a period of weeks before and after the annual show. While AMTC acknowledge the need for the show to have a vacated space, this creates a huge task for the volunteers to transport truckloads of large and heavy set pieces out of and back into the hall in the peak of summer plus the high cost of storage space hire.

AMTC have previously requested permission from Council to temporarily place a storage container adjacent to the Northern side of the Youth Hall, however this was denied. Allowing shipping container would be far more convenient and less costly than transporting sets on trucks and hiring storage space. The reason given was a policy to allow only one container per Council site. It is understood that there is an existing container at the Rowing Club and this is considered to be the same site.

You will be treated to a five minute deputation by members of AMTC and JAM. I urge all Councillors to think of the benefits that community theatre brings to our wonderful Shoalhaven community and the revenue raising possibilities for SEC if AMTC is afforded the resources required to grow and develop (to stay operational at this point).

Ordinary Meeting – Tuesday 10 December 2024

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CL24.390 Report Back - Question on Notice - CEO Resignation - Funding

HPERM Ref: D24/527006

Department: Information Services

Approver: James Ruprai, Acting CEO

Purpose:

This report is provided to respond to the Question on Notice from Councillor Tribe which appeared on the Agenda of the Ordinary Meeting of 26 November 2024 (CL24.364)

Summary and Key Points for Consideration:

The response to the question related to the resignation of previous Shoalhaven City Council, CEO, Robyn Stevens on 12 November 2024 is provided within this report for the information of the Council and community.

Recommendation

That Council receive the report on CEO resignation funding in response to CL24.364, being a Question on Notice from the 26 November 2024 Council Meeting.

Options

1. As recommended

Implications: The information will be received for information

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

Implications: Unknown

3. The Council makes additional recommendations on the topic.

Implications: Unknown

Background and Supplementary information

The Question on Notice posed by Clr Tribe at the Meeting of 26 November 2024 (CL24.364) was as follows:

“How will Shoalhaven City Council fund what the outgoing CEO is owed given that the unrestricted cash balance was nil at June 2024?’

The outgoing CEO of Shoalhaven City Council referred to, was Ms Robyn Stevens who resigned from the Council effective 12 November 2024.

In response to the question, the following information is provided.

The agreement between Council and the outgoing CEO is protected by a confidentiality clause, ensuring its contents remain private, consistent with other senior staff agreements and contracts.

Any remuneration owed to the outgoing CEO under this agreement will be funded through General Fund employee cost savings, from staff vacancies as a result of recruitment freeze activities undertaken by Council.

According to the DPOP 2024-25 - Quarterly Performance and Budget Report (July - September) (CL24.373), year-to-date (YTD) actual employee costs were tracking at 21% of the full-year budget. The Council’s employee costs budget is phased for this seasonal trend, and as of 30 September 2024, actual YTD employee costs were $22M, compared to a YTD budget of $23.9M.

Salaries will continue to be monitored through 31 December 2024, with the aim of reducing employee costs and allocating the underspend to a new financial sustainability internal reserve as part of the Quarter 2 (October to December) budget adjustments.

Internal Consultations

Nil

External Consultations

Nil

Community Consultations

Nil

Policy Implications

Nil

Financial Implications

As outlined, financial implications are covered through vacancy savings achieved in the year to date.

Risk Implications

Confidentiality pertaining to employee arrangements must be maintained, and there is a risk to Council and individuals in the event of a breach of confidentiality.

Ordinary Meeting – Tuesday 10 December 2024

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CL24.391 Narrawallee Creek Road, Lake Conjola - Maintenance Responsibility

HPERM Ref: D24/463542

Department: Works & Services

Approver: Carey McIntyre, Director - City Services

Attachments: 1. 88B Terms of restriction on the use of land ⇩

Purpose

The purpose of this report is to advise Councillors of outcome of investigations into the responsibility for the maintenance of Narrawallee Creek Road, Lake Conjola and to seek its endorsement of a position that Council will not maintain the road.

Summary and Key Points for Consideration

· A report to Council has been prepared on the findings of an investigation into the responsibility for maintaining Narrawallee Creek Road following residents' requests that the Council take over some or all of the road maintenance.

· The road was constructed in 1994 as part of the subdivision known as D.P. 827665.

· The associated development Section 88B instrument outlines that the road will not be maintained by Council and that maintenance is the joint responsibility of the proprietors (owners) of designated lots in the subdivision.

· In the past, in response to residents raising concerns about the maintenance of this road, it has been communicated by Council that the road was not maintained by Council as it had not been constructed to the appropriate standard, and is the responsibility of private property owners under imposed 88B title instruments.

· In a letter dated 21 March 1997 issued by Council's then General Manager, it was confirmed that the constructed access road met the approved plans and was signed off with the release of the plan of survey.

Recommendation

That Council:

1. Note the outcome of the investigation into the responsibility for maintaining Narrawallee Creek Road, Lake Conjola.

2. Endorse the position that Narrawallee Creek Road is not maintained by the Council and the maintenance is the joint responsibility of the proprietors of the lots burdened per the Section 88B instrument of D.P. 827665.

Options

1. Adopt the recommendation as printed.

Implications: Maintenance of Narrawallee Creek Road continues to be the joint reasonability of lots burdened by the Section 88B instrument of D.P. 827665.

2. Not accept the recommendation

Implications: Council accept either part or full responsibility for current repairs to Narrawallee Creek Road and its ongoing maintenance. This will introduce a cost and liability burden the Council currently does not currently incur as part of scheduled road maintenance, and would require reallocation of budget away from existing adopted operational budget allocations, which may include other road maintenance programs.

Background and Supplementary information

Local residents have been responsible for the maintenance of Narrawallee Creek Road since its construction in 1994. Narrawallee Creek Road residents have requested road maintenance assistance from Council on several occasions.

In 2016 and 2021, Council provided plant and labour to undertake maintenance grading and gravel re-sheeting with road base material supplied by property owners. This was ex-gratia and implied no responsibility for the road on the part of the Council.

The residents are aware that the maintenance of Narrawallee Creek Road is a burden placed on them by Part 2 item 1. e) of the Section 88B instrument associated with the D.P. 827665 (Attachment 1)

The Section 88B instrument is used to set out the creation of easements and other rights that must be provided or things that must be done (known as positive covenants) under the Conveyancing Act 1919. These easements and positive covenants often relate to services such as drainage and water or the right of a carriageway over land. In this instance the Section 88B outlines that.

“Narrawallee Creek Road will not be maintained by the Council and the maintenance is the joint responsibility of the proprietors of the lots herby burdened and lots 4,5 and 6 in D.P. 827665”

Council has received several requests from the residents via direct communication with Council and representations from Councillors and the local Federal MP for Gilmore, seeking that the maintenance burden associated with this road be fulfilled either fully or in part by Council.

A letter from Council dated 21 March 1997 was provided to a representative of the Narrawallee Creek Road Residents Action Group. This letter states in part that.

“From the aforementioned Council considers that purchasers of allotments within these subdivisions were adequately notified that Council would not maintain the road of access to the subdivision. That is, purchasers would be required to make alternative arrangements for the maintenance of the road.”

Regarding the physical attributes of this road, the road is mostly unsealed, approximately 2km long, generally 5m wide with 3 short sections of bitumen seal surfacing as follows:

- 60m (Ch0 to Ch60),

- 60m (Ch140 to Ch200) and

- 100m (Ch400 to Ch500) in length.

The road provides access to eight private properties at the end of the road and to NPWS Narrawallee Creek Nature Reserve track at Ch1320. Just beyond the Nature Reserve Track at Ch1380 a gate, fencing, and signs are located stating “Private Property Road Ends”, “No Through Road” and “Trespassers Will Be Prosecuted”.

The road has a twin cell box culvert causeway at Ch160 and is fenced on both sides of the road verge with signs located at Ch100. Signs include NPWS “Narrawallee Creek Nature Reserve”, and “No Through Road”.

The road is currently in a satisfactory condition but appears to have minimal gravel pavement thickness. Some sections have no gravel pavement cover and re-sheeting is required at Ch60 to Ch140, Ch200 to Ch320, and Ch620 to Ch1360.

The bitumen-sealed sections need resealing and defects including edge breaks need repair. These concerns would need to be addressed if the Council sought to take over the maintenance of the road.

Estimated costs are outlined in the Financial Implications section below along with estimated ongoing maintenance costs.

Internal Consultations

Not required for this report as recommended. If option 2 is adopted further internal consultation will be required.

External Consultations

Not required for this report as recommended.

Community Consultations

Not required for this report. If option 2 is adopted, consultation in the form of a notification will be carried out to inform impacted residents.

This report itself is communicated through the publishing of an open report to Council.

Policy Implications

There are other roads in the Shoalhaven that are not maintained by Council. Accepting Narrawallee Creek Road into maintenance would create inequity and set a precedent for other residents to have their maintenance responsibilities transferred to Council.

Financial Implications

If Option 1 is adopted there are no ongoing financial implications other than discretionary spending to assist the residents with maintenance as has been provided in the past.

It is not the recommendation, however if Option 2 is adopted the estimated annual maintenance costs and upfront repair costs would be as followed:

Annual Maintenance Cost $23,000

Upfront Repair Costs (re-sheet and reseal) $81,000

The above is an estimate only and is subject to a detailed cost estimate being developed and assumes that there are no existing major drainage or pavement concerns.

There is also a risk that the land would need to be acquired to facilitate maintenance by Council. It is reasonable to assume that the residents would not seek costs, however, there would be legal fees associated. Those costs would need to be determined.

Risk Implications

Option 1 – There will be no increased risk to Council.

Option 2 – All liabilities currently associated with the road would fall to Council.

In the event the Council chooses to take a portion of the repair / maintenance works, this would create uncertainty regarding liability moving forward.

Ordinary Meeting – Tuesday 10 December 2024

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CL24.392 Proposed New Lease - 2/39 Holloway Road, Nowra

HPERM Ref: D24/474238

Department: Buildings & Property Services

Approver: Carey McIntyre, Director - City Services

Purpose:

The purpose of this report is for Council to consider approval of a new five-year (with additional five-year option) lease agreement to Property NSW at part Lot 2 DP708441 (2/39) Holloway Road, Nowra.

Summary and Key Points for Consideration:

· The land is classified as Council-owned operational land and Council can enter a proposed five-year lease with five-year option.

· Council resolution is required to determine the grant of the proposed lease on the basis the annual rent exceeds $5,000 per annum and the lease term exceeds five years.

Recommendation

That Council:

1. Enter a five-year (with additional five-year option) lease with Property NSW (ABN 91 840 597 406) over Council operational land known as Building 2/39, Holloway Road Nowra (Part Lot 2 DP 708441) as shown in Figure 1 of this report.

2. Establish lease rental of $40,000 (excluding GST) per annum.

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

4. Register the lease on title and the lessee be responsible for all costs associated with lease registration.

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

Options

1. Resolve as recommended

Implications: Council will secure a suitable long-term tenant that is fully funded by the State Government and the provision of the adult day care services for the local community will continue.

2. Seek opportunity for new tenancy

Implications: If Property NSW do not secure a new lease at this location, the lessee would require an alternate property to continue this community service. If the property was vacated, an Expression of Interest process would be undertaken by Council for a new lessee under future lease agreement, with terms to be negotiated following any EOI process.

Background and Supplementary information

The property at Lot 2 DP708441 (Park Road/Holloway Road, Nowra) owned by Council comprises multiple free-standing buildings on a 9,017m2 parcel. The use of Building 2, No.39 Holloway Road for adult day care has been conducted since 1 January 2005.

The building was purposed for the South East Sydney Illawarra Health, later becoming Illawarra Shoalhaven Local Health District (ISLHD). ISLHD will retain occupation of the premises under the proposed new lease and continue to run the adult day care centre. The proposed new lease will be in the name of Property NSW to reflect the state government funding for the ISLHD operation.

The Centre has provided regular social support and group activities for older people in the community including those with memory loss or dementia who are living at home but may be isolated from the community.

The Centre conducts numerous activities to support the target group such as group discussions, exercise classes, games, quizzes, arts and craft. The Centre also conducts various music and entertainment sessions as well as regular outings and a monthly support group for members of the community caring for an older person living with memory loss or dementia.

The location of the property is shown on Figure 1.

Figure 1 – Premises proposed for new lease on Lot 2 DP708441 (shaded yellow)

A aerial view of a neighborhood

Description automatically generated

Internal Consultations

Request for internal stakeholder comment was undertaken. Advice from Council’s Traffic Engineer suggested on-site parking be designated for the lessee in the new lease due to approved future traffic generating development adjacent to the property. This can be incorporated into a new lease.

External Consultations

No external consultation was required for this proposal given Council is re-negotiating with the existing lessee for a new lease term.

Community Consultations

The land is classified as operational land, and as such, no consultation/notification is required.

Policy Implications

The proposed lease is in accordance with Council’s Occupation of Council Owned or Managed Land Policy (POL22/98). The proposed new lease agreement to Property NSW achieves a market-based rental return for Council and the lease purpose is to deliver significant community health initiatives. In this regard, it is considered appropriate to directly enter a new lease on the site and the community will benefit by continued access to the services conducted by ISLHD.

Financial Implications

A market rental rate was established by a certified practicing valuer. Council will commence receiving a rental of $40,000 (excluding GST) per annum from 1 July 2024, being the end of the previous lease term. This represents a 147% increase on the previous lease rental. The new lease incorporates annual Consumer Price Index (CPI) rent increases.

Applicable outgoings will be recovered by Council as part of the lease. These costs include property insurance and this will be made clear in any lease agreement.

All lease terms and conditions were agreed with Property NSW on 31 October 2024, prior to the publishing of this business paper.

Risk Implications

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

Ordinary Meeting – Tuesday 10 December 2024

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CL24.393 Lease of Croquet Clubhouse & Courts - Artie Smith Oval, Cambewarra Road, Bomaderry

HPERM Ref: D23/498733

Department: Buildings & Property Services

Approver: Carey McIntyre, Director - City Services

Attachments: 1. Financial Information - Lease of Croquet Clubhouse & Courts, Bomaderry (Confidential - under separate cover)

2. Comparison of Other Facilities with Restricted Asset Accounts - Lease - Nowra Croquet Club Inc - Artie Smith Oval Bomaderry (Confidential - under separate cover)

Purpose:

The purpose of this report is for Council to consider approval of a new five-year lease agreement with Nowra Croquet Club Incorporated (NCCI) at the new croquet facility at Artie Smith Oval, Part Lot 100 DP 1237704, 84 Cambewarra Road, Bomaderry.

Summary and Key Points for Consideration:

· Pursuant to Section 46(1)(b)(i) of the Local Government Act 1993, Council may grant a lease over community land for the carrying out of activities and facilities appropriate to the current and future needs within the local community and the wider public in relation to public recreation and the physical, cultural, social and intellectual welfare or development of persons.

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

· At the Council Meeting 12 August 2024, Council resolved (MIN24.441) to include a future report on a proposed new lease of the croquet facility the options for lease arrangements, consideration for like for like lease conditions, contributions to the Restricted Asset Account for Artie Smith Oval and financial implications of any proposals.

Recommendation

That Council:

1. Enter a five-year lease with Nowra Croquet Club Incorporated (ABN 72 138 453 719) over Council community land known as the Croquet Clubhouse and Courts at Artie Smith Oval, Part Lot 100 DP 1237704, 84 Cambewarra Road, Bomaderry.

2. Establish lease rental and associated fees as follows:

i) Rent of Clubhouse building at $7,875.41 excluding GST per annum.

ii) Contribution to court sinking fund for capital upgrades of $4,545.45 excluding GST per annum.

iii) Contribution to court maintenance costs of $2,119.64 excluding GST per annum.

3. Apply annual increases to the rent of the clubhouse building and the contribution to court maintenance costs in line with the Consumer Price Index (All Groups Sydney).

4. Authorise the allocation of the Contribution to court sinking fund for capital upgrades into a Restricted Asset Account for this facility.

Options

1. Resolve as recommended

Implications: The lease will formalise the proposed use of the facilities by the Nowra Croquet Club Inc affirming Council’s prior commitment to relocate the NCCI from their existing location and ensure active operation of the new facility for the benefit of the community. This will result in a total commencing amount payable under the lease of $14,540.50 excluding GST.

2. Resolve to enter a lease and accept NCCI preferred option (the counter proposal) with a total commencing amount payable under the lease of $9,995.05 excluding GST incorporating rent of clubhouse building and contribution to court maintenance only.

Implications: The lease will formalise the proposed use of the facilities by the NCCI in accordance with the Local Government Act and affirming Council’s prior commitment with NCCI to relocate the NCCI from their existing location and ensure active operation of the new facility for the benefit of the community. This option makes no provision to capital contribution to court sinking fund.

3. Resolve to enter a lease (Council’s initial lease proposition) based on the original monetary calculation by Council with a total commencing amount payable of $18,181.81 excluding GST comprising rent of clubhouse building ($7,875.41 excluding GST), contribution to court maintenance ($5,760.95 excluding GST), and capital contribution to court sinking fund ($4,545.45 excluding GST).

Implications: The lease will formalise the proposed use of the facilities by the NCCI affirming Council’s prior commitment to relocate the NCCI from their existing location and ensure active operation of the new facility for the benefit of the community. Council will receive the rental and other contributions originally proposed in accordance with policy and based on the financial estimates originally submitted by NCCI.

4. Resolve to enter the lease with Nowra Croquet Club Incorporated at the statutory minimum rent.

Implications: This option is provided for completeness but is not recommended. This would formalise the Club’s proposed use of the facilities in line with the Local Government Act 1993, however would result in one annual rent figure of $604 excluding GST, to increase annually in line with CPI. Under this option the rent of the Clubhouse at a value well below the proposed value of exclusive use of Council’s asset would be entered into, with no contribution to the Court sinking fund and no contribution to Court maintenance costs.

This option is not in accordance with Council’s Occupation of Council Owned or Managed Land policy POL22/98, the Guiding Principles of which fulfil elements of Section 8A (1) of the Local Government Act 1993, Council’s Code of Conduct and Probity principles under Independent Commission Against Corruption Guidelines. Section 6.16 outlines ‘All rents charged in the first instance are to be determined in accordance with market values’, and that ‘Only in exceptional circumstances where the community group can demonstrate that it essentially functions as a volunteer or self-help group (with no funding from State or Federal Government) within the community, will Council consider a rent of equivalent to the minimum statutory rent’. The policy stipulates ‘Council is to ensure that agreements do not impose an unreasonable burden on general revenue. Council is to obtain a reasonable dividend and at a minimum, cost neutrality from the use of its property, i.e., the tenancy is to be at no cost to Council.

This Option is not in line with either the opinion of the Club’s own appointed accountant, or Council’s current need to improve financial sustainability.

5. Resolve not to enter the lease with NCCI.

Implications: NCCI would not have the benefit of a lease agreement for the proposed use of the Croquet Clubhouse and Courts and the absence of a lease will have implications for Council in terms of ongoing maintenance responsibilities. Alternate means of progressing use of the facility may be by way of seeking Expressions of Interest (EOI) for various sporting bodies, or, allowing casual hire in line with adopted Fees and Charges.

Background and Supplementary information

The new Croquet Clubhouse and Courts are located on Part Lot 100 DP 1237704, 84 Cambewarra Road, Bomaderry being Council-owned community land. The Sportsgrounds Plan of Management permits the lease proposal. The croquet facility is shown on Figure 1 below.

Figure 1: Aerial map of Croquet facility (proposed leased area hatched)

An aerial view of a field

Description automatically generated

The Croquet Clubhouse building and four Croquet Courts at Artie Smith Oval in Bomaderry form part of the newly completed $20 million upgraded sports facility – Stage 1 of the Shoalhaven Community and Recreation Precinct (SCaRP) project. Total construction cost of the croquet facility was $920,000.

Regarding the like for like court facility, NCCI was an active participant in the design development of the new croquet facility at Artie Smith Oval. The result is a brand-new, purpose-built facility with four courts as requested by, and coordinated with, the Club. It is fit-for-purpose for NCCI to utilise on a regular basis and will serve as an attractive hosting venue which will be an added benefit to the Club, and it is arguably one of the best croquet facilities in Australia.

Council commenced lease negotiations with the NCCI based on the operating schedule budget for Artie Smith Oval of $84,525 per annum comprising croquet court and surrounds mowing and turf management as well as maintenance of the croquet complex. Council’s initial lease proposition was $18,181.81 excluding GST per annum made up of rent (clubhouse building subsidised rent and prevailing court maintenance costs of NCCI) plus annual Contribution to court sinking fund (refer Figure 2).

NCCI made a counteroffer to Council incorporating annual total rent of $10,349.09 excluding GST per annum. The NCCI based the rent proposition on the sum of its current Bomaderry rent obligation, current courts maintenance expenditure and utilities costs. Council considered the counteroffer including the utilities outgoings component and accordingly revised the proposed base “rent” to $9,995.05 excluding GST per annum (refer Table 1). This represents a variation to the original proposal of $3,641 excluding GST per annum. NCCI provided financial summaries to Council which are considered to validate the financial position of the NCCI and substantiate the revised rent position.

In the supplied information, NCCI holds a Term Deposit described as a reserve fund for court maintenance, croquet equipment and building/furniture/office equipment and other outlays. NCCI did not make separate provision in the counteroffer for Contribution to court sinking fund. Council’s Policy POL22/98 – Occupation of Council Owned or Managed Land requires annual contribution to court sinking fund. NCCI will be required to contribute to this fund. To lessen the impact of the rent increase for the Club, no annual increase will be applied to Contribution to Court sinking fund for the initial five-year lease term.

In the proposed new lease, Council will assume responsibility for structural maintenance of the Clubhouse building. This is an additional commitment for Council in relation to the current lease (existing facility) where structural maintenance is the responsibility of NCCI.

Operational maintenance of the new croquet courts and surrounds will be undertaken by Council to maintain the new facility to the national standards and is within the capacity of Council’s teams and expertise. NCCI will continue to fund this component of the croquet facility by way of rental contribution. Therefore, the ongoing costs towards court maintenance is a neutral financial outcome for NCCI.

General building maintenance will continue to be the responsibility of NCCI under the new lease.

Internal Consultations

All Council Directors, Managers, Asset Custodian and Strategic Planners were notified of the proposed new lease, with no objections received. Lease negotiations have been conducted in consultation with Council’s Asset Custodian.

External Consultations

The Lease renewal process has involved significant consultation with NCCI.

Walsh and Monaghan prepared a valuation report for the Clubhouse building as required by Council’s Occupation of Council Owned and Managed Land policy (POL22/98).

Community Consultations

The proposed lease was advertised in accordance with section 47 of the Local Government Act 1993. No submissions were received.

Policy Implications

The proposed lease is in accordance with Occupation of Council Owned or Managed Land policy (POL22/98).

Financial Implications

There is an existing lease with the Croquet Club. A comparison between that lease and the recommended lease arrangement is shown in Figure 2.

Figure 2: Current Croquet Club lease and proposed lease rental comparison

	Current lease	SCC original proposal	NCCI counter proposal	SCC Recommendation
Rent ($ p.a. excluding GST) clubhouse building + contribution to court maintenance	$911.41 (occupation of site only)	$13,636.36	$9,995.05	$9,995.05
Contribution to court sinking fund (capital contribution) ($ p.a.)	$0	$4,545.45*	$0	$4,545.45*
Total Lease amount ($ p.a. excluding GST)	$911.41	$18,181.81	$9,995.05	$14,540.50
SCC Operating Subsidy	N/A	$66,343.19	$74,529.95	$69,984.50

*Represents 5% of the NCCI term deposit account reserve as provided to Council with lease negotiations

It is important to note that consideration to Council’s financial position and the findings within the AEC report have been given in relation to the recommendation within this report. To assist in improving the operating position of Council, the proposed annual contribution is close to the full cost price for the operation and renewal of the facility, as far as it is practical to do so, without impacting significantly on access to services by the community.

Council engaged Walsh and Monaghan to undertake a valuation for market rental of the Clubhouse building and was assessed at $31,000 excluding GST per annum. The rental subsidy for the NCCI was determined to be 75.45%. The adjusted rent with the rental subsidy applied equates to a rental figure for the Clubhouse of $7,875.41 excluding GST per annum.

In addition to the rental, an amount of $2,119.64 excluding GST is recommended in the lease for contribution to court maintenance. Council will undertake the actual maintenance works (of the court facility and surrounds) ongoing.

The assessed contribution to the court sinking fund (capital upgrades) for the four Courts is $4,545.45 excluding GST per annum. This calculation considers the expected life cycle and replacement cost of the courts.

The subsidised building rental and courts capital contribution for a lease is expressed in Council’s Occupation of Council Owned or Managed Land policy (POL22/98).

The proposed rental and capital contribution amounts have taken into consideration the financial capacity of the NCCI along with its annual building rental and court maintenance contributions at its current facility and is considered reasonable from the perspective of Council’s ongoing ownership and management responsibility for the new facility and will not place undue financial burden on the NCCI. The lessee will be responsible for the costs of applicable utilities outgoings (where separately metered) with water charges to be levied at 10%.

Risk Implications

It is normal practice to allow for an interest in land in the form of a lease and the statutory requirements of the Local Government Act have been met. Valuation advice was received for the proposed lease. Council’s interests have been considered and there is minimal risk associated with the recommended new lease agreement.

Should NCCI not enter into a lease agreement, Council would seek interest from the community for alternate occupation of the facility. Notably, Council have already been approached by other sporting bodies, expressing interest in entering into a lease / licence agreement with Council to occupy the facility. Alternatively, Council has the option to hire out the building and the courts on a casual basis, levied against Council’s adopted Fees & Charges.

Ordinary Meeting – Tuesday 10 December 2024

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CL24.394 Proposed Land Sales

HPERM Ref: D24/477597

Department: Buildings & Property Services

Approver: Carey McIntyre, Director - City Services

Attachments: 1. Property Information ⇩

Purpose:

The purpose of this report is to seek a resolution of Council to sell certain operationally classified land.

Summary and Key Points for Consideration:

In accordance with the AEC report requirements recommended by Council on 20 November 2023 (MIN23.667), Council’s surplus land holdings are being considered for sale to support its financial recovery.

This report seeks a resolution of the Council to sell three properties, being classified as operational land and having an appropriate zoning for sale

Further, this report seeks an amendment to a previous resolution of the Council regarding properties at Green St Ulladulla.

Recommendation

That:

1. Council sell the following operational land for not less than the market value as determined by an independent valuer:

a. Queen Mary Street Callala Beach (Lot 51 Sec T DP 27357).

b. 105 The Park Drive Sanctuary Point (Lot 61 DP 833017).

c. Ilett St Mollymook (Lot 1256 DP 31816).

2. The former resolution (MIN24.179) be amended to sell the following two properties via direct negotiations for a value determined by an independent valuer:

a. Green St Ulladulla (Ulladulla High School) (Lot 3 DP 851748) to The Department of Education.

b. Green St Ulladulla (Lot 4 DP 851748) to the St Vincent de Paul Society.

Options

1. That Council adopt the proposed recommendations.

Implications: Subject to the sale of land identified within this resolution, revenue from these sales would support Council in its financial commitments.

2. That Council do not adopt the proposed recommendations.

Implications: Council would need to find alternative measures to meet its financial commitments and obligations.

Background and Supplementary information

Council at its meeting of 20 November 2023 resolved (MIN23.667) to:

Prepare a priority report to explore options to rationalise land and facilities assets with a clear timeline and budget for achieving swift results, including any efficiency savings that have already been identified with staff as part of the AEC Group review, that can be implemented swiftly and cost effectively.

Within the AEC Report provided to Council in the same meeting, it was recommended to:

(Item 6a) “Identify strategic options for Council to improve the forecast position, including opportunities for Council to improve the strategic management of assets, including increased utilisation, asset recycling, rationalisation, and disposal of assets.”

Based on this recommendation a report was provided to the Council at its meeting of 29 January 2024, regarding how to progress the land sales. It was resolved by Council (MIN24.21) to review all of Council’s land holdings.

Council’s property portfolio currently comprises over 3,100 lots. The distribution of Council Land is roughly split between 1,700 lots of operational classified land, 1,000 lots of community classified land and 400 lots of Crown Land under Council management. Council manages the use of these land types under the direction of the Local Government Act 1993, which restricts the sale of Community Land without reclassification, and further that Crown land managers cannot sell or re-categorise managed Crown land without Ministerial consent.

Most of the land owned and managed by Council is used for civic, community and operational purposes. This includes offices, libraries, reserves, infrastructure, roads, day care facilities, leisure centres, holiday parks, telecommunication assets and car parks. A limited number are leased for commercial purposes providing ongoing cashflow to Council.

The properties identified are considered low risk, being classified operational and having a suitable zoning for sale.

Amendment to Resolution MIN24.179

With regards to the amendment of resolution MIN24.179, the former resolution only identified a direct sale to the Department of Education, however this does not appropriately reflect the adjoining neighbour being the St Vincent de Paul Society. As such, this resolution needs to be amended to reflect this proposed direct sale of Lot 4 DP 851748) to the St Vincent de Paul Society.

Internal Consultations

An internal notification has been sent to staff to allow for any comments on the sale of this land and these comments have been incorporated into the property summary (Attachment 1). No issues preventing the sale of these properties have been identified. An arborist has been appointed to review ecology issues over some of the sites and this will accompany any land sale.

External Consultations

No external consultations have occurred for the sale of these properties.

Community Consultations

Lot 3 and 4 in DP851748 at Green Street Ulladulla Green St Ulladulla formed part of the community survey that was open from 11 April through to 14 June 2024 (9 weeks). During this time only 4 responses were received against these lots. The feedback was general in their objection to the sale of any of Council land, and not this land in particular.

With regards to the other sites, no other community consultation is proposed given the location and limited use by community of the sites. Further, as the land is operational classified and having an appropriate zoning, no other consultation is required under the Local Government Act.

Policy Implications

Council’s property activities will be managed within legislative parameters. There are no implications for existing policies.

Financial Implications

The land identified for sale will be sold within the current 2025 financial year and contribute the budgeted target required for Council’s ongoing sustainability measures. A real estate panel has already been appointed to support Council in these sales. Subject to resolution of Council, it is proposed to auction the sites by March 2025, with settlement occurring before the end of the financial year.

Risk Implications

Section 377 of the Local Government Act 1993 requires all sales and acquisitions of Council land can only be achieved through a Resolution of Council. The report to Council to make any such resolution will outline how any transactions are consistent with Council’s policies including on community engagement.

O’Connor, Marsden and Associates have been appointed as a probity advisor to support and review the sales’ strategy process. This is an ongoing appointed with Council for the sale of these sites.

Ordinary Meeting – Tuesday 10 December 2024

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CL24.395 Sister City Relationships - The Way Forward

HPERM Ref: D24/450065

Department: Cultural & Community Services

Approver: James Ruprai, Acting CEO

Purpose:

The purpose of this report is to inform Council of the numerous Sister City relationships between Shoalhaven City and other international cities, and to determine the way forward with these relationships.

Summary and Key Points for Consideration:

· Shoalhaven City Council has several formal Sister City relationships with international cities.

· Since approximately 2018, there has been a lack of contact between Shoalhaven City Council and our Sister Cities, and the relationships have become dormant.

· A report was presented to Council in April 2024 seeking direction on the way forward. At this time, our Sister City Fuzhou, China had made recent contact and had proposed to visit the Shoalhaven. It was resolved to revisit the status of all Council’s Sister City relationships at the completion of Fuzhou’s proposed visit to the Shoalhaven in May 2024.

· The visit from Fuzhou did not occur and this report seeks to revisit Council’s position on Sister City relationships.

Recommendation

That Council:

1. Note there has been a significant length of inactivity between the organisation and its Sister Cities;

2. Acknowledge that its Sister City relationships are in a state of dormancy due to this recent inactivity;

3. Remain to be in a Sister City relationship with all current Sister Cities, so that there is an ability to reactivate these relationships, if desired in the future.

Options

1. That Council adopt the recommendation.

Implications: This will allow Council’s Sister City relationships to continue to be formally recognised. Although the relationships may be dormant for some time into the future, the relationships will remain current and could be reactivated, if desired by both Council and the Sister City.

Sister Cities International recommends this way forward when relationships have become dormant due to inactivity.

2. That Council reconnect and reactivate its Sister City relationships.

Implications: At this time, it is unknown if the majority of our Sister Cities are interested themselves in reactivating a relationship. In order to be in a successful and active Sister City relationship, budget would usually be required to meet all expectations.

Additional budget and/or resources are likely to be required in order to achieve this recommendation.

3. That Council terminate its Sister City relationships.

Implications: The termination of Sister City relationships is a formal process, requiring correspondence from one Mayoral office to another. The termination of a Sister City relationship usually occurs as a result of a serious incident or event, where a relationship could be perceived as being controversial.

Since Council’s relationships are dormant only due to inactivity, this is not recommended.

Background and Supplementary information

A Sister City relationship is a form of legal or social agreement between two political and geographically distinct localities for the purpose of promoting cultural and commercial bonds. Sister City activities have independently commenced on many different continents, all with a similar goal.

Sister Cities Australia (https://www.sistercitiesaustralia.org.au/) have registered the Shoalhaven for the relationships with the following international cities, based on historical agreements:

· Shoalhaven – Fuzhou, China 2003

· Shoalhaven - Jiamusi, Heilongjiang Province, China 1987

· Shoalhaven – Paeroa, New Zealand

· Shoalhaven - Zuan City, Beijing, China 2010

In 2023, Council staff conducted a review of internal files to determine if any other relationships exist, where they found files identifying the following additional Sister City relationships or friendship agreements:

· Shoalhaven and Xuan Wu District, China 2008

· Shoalhaven and Nanchang, China 2015

· Shoalhaven and Fuyang, China 2015

As identified above, Shoalhaven City Council has a registered Sister City relationship with the City of Fuzhou, China. As a result of recent communications from the Fuzhou Foreign Affairs Office, a report regarding the status of Council’s Sister City relationships was reported to the Ordinary Meeting on 8 April 2024. At this time, Fuzhou delegates proposed to visit the Shoalhaven in May 2024. As a result of the report, it was resolved (MIN24.177):

That Council:

1. Revisit the status of all Council’s Sister City Relationships at the completion of Fuzhous proposed visit to the Shoalhaven in May 2024.

2. Write a letter to Fuzhou Foreign Affairs Office of China thanking them for their correspondence and advising them of Council’s current position on the relationship review.

On 24 April 2024, Council was further contacted by Fuzhou Foreign Affairs Office stating that their visit would likely be postponed until September/October 2024. Council did not receive any further confirmation about this proposed visit and to the best of staff’s knowledge, it did not occur.

Sister City Relationships – General Information

There are numerous other Australian Local Government Areas and cities, who have registered Sister City relationships across the world. Publicly available articles covering Sister Cities indicate that a budget allocation is required to facilitate an active and successful relationship. The funding is usually utilised for delegation visits and cultural exchange activities. In some circumstances, an international host may offer a Sister City an all-expenses paid visit for key Delegates. Risk Implications explains how Council should deal with any such offer in the future.

Active and successful Sister City relationships usually have the following expectations from either city:

· Delegations to visit their Sister City

· Hosting of visiting delegations

· Regular contact

· Cultural exchange activities

· Exchange student programs

Sister Cities International provide a toolkit for partnerships and relationships. The toolkit covers dormant relationships and relationship termination. If a community wishes to terminate a Sister City relationship, then a letter from the Mayor of the city should be sent to the Mayor of the other Sister City. Recent cases of relationship termination elsewhere have commonly been in protest of actions of the international city or country, for incidents such as war, policy or legislation changes.

It is not recommend terminating a Sister City relationship simply because it is dormant. It is normal for activity between Sister Cities to fluctuate over the years, and in many cases a dormant relationship may be reinvigorated by local members years after it has been inactive.

Next Steps

The majority of Council’s Sister City relationships have been dormant for some time, with inactivity from both parties. Council has received recent communications from Fuzhou, however the proposal did not eventuate.

It is recommended that Council recognise its Sister City relationships as being in a state of dormancy. Although the relationships will remain inactive at this time, they will remain formally registered and able to be reactivated by Council in the future, if there is sufficient interest by all concerned parties.

Internal Consultations

Internal consultation has occurred with Council’s Records team, and other individual staff who have had past dealings in Sister City activities. The purpose of this was to understand the history of the relationships, as outlined in this report.

External Consultations

Council has been contacted by Fuzhou Foreign Affairs Office, enquiring about the status of their Sister City relationship with the Shoalhaven and providing preliminary details of a proposed visit.

Community Consultations

There has been no community consultation undertaken to compile this report.

Policy Implications

Council’s International Gifts (Giving and Receiving) Policy (POL23/27) refers to nominal value gifts exchanged during a cultural visit. This Policy does not cover any travel expenses that may be offered to be covered/waived as a gift. Although in the past, Council delegations visiting Sister Cities met their own travel costs.

Any offers to cover/waive travel expenses would be dealt with under Part 6 of Council’s Code of Conduct, which states that gifts or benefits that exceed $100 must not be accepted.

Additional implications are identified under Risk Implications.

Financial Implications

Council does not have any identified budget allocated to maintaining its Sister City relationships. Past visits to Sister Cities by Shoalhaven delegates required travel costs to be met by individuals, however the hosting of a Sister City delegation would likely require some form of budget allocation should it occur in the future.

In order for a Sister City relationship to operate with the highest possibility for success, a budget allocation is usually required. As there is no allocated budget in this period of dormancy regarding our Sister City arrangements, should a delegation be received by the Shoalhaven appropriate future funding would need to be allocated by Council.

Risk Implications

In the instance of any future offering for a Council delegation to visit a Sister City via an all-expenses paid trip. There has been clear learnings from a number of recent ICAC investigations in relation to international travel by Local Government delegations. It is strongly advised against accepting an invitation of an all-expenses paid international visit, particularly if there are any connections to items such as property development.

Ordinary Meeting – Tuesday 10 December 2024

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CL24.396 Shoalhaven Motor Sports Working Group

HPERM Ref: D24/515411

Department: Cultural & Community Services

Approver: James Ruprai, Acting CEO

Purpose:

The purpose of this report is to inform Council of the background of the Shoalhaven Motor Sports Working Group and seek a resolution on the format of the Working Group moving forward.

Summary and Key Points for Consideration:

· The Shoalhaven Motor Sports Working Group was established to advocate for a motor sports complex to be developed in the Shoalhaven, identify potential sites for its establishment, and advocate for funding for the proposal.

· Extensive investigations and assessments have occurred to identify a suitable site for a motor sports complex. All potential sites that have been previously identified have had significant environmental and legislative constrains.

· Council does not have an identified budget for any aspect of the proposal. The development of a motor sports complex should ideally be led by a private investor, who identifies land suitable for the scale of development and has budget for the project.

· It has been noted that the Working Group could continue to advocate for the proposal in an informal setting, to meet when required, and discuss any potential investors and any public sites that may have become available.

Recommendation

That Council:

1. Recognise and thank the ongoing commitment of the dedicated volunteers and reaffirm support for a future motor sports complex and the positive impact it could have on the Shoalhaven economy.

2. Request the Mayor commit to regular meetings with community members and other stakeholders who are interested in developing the motor sports complex in Shoalhaven.

3. Delegate (insert Councillor/s) as the key liaison for the project and encourage interested stakeholders to work with this Councillor as the local Council representative.

4. Pause the formal committee known as the ‘Shoalhaven Motor Sports Working Group’ and request the CEO (or delegate) to continue to provide information and advice to the stakeholder group as needed. Noting that there is an option to stand up the committee again in future should the need arise.

Options

1. That Council adopt the above recommendation.

Implications: This will pause the formal aspect of the Shoalhaven Motor Sports Working Group. Although the Working Group will no longer be a formal Council committee, the group will be able to continue in an informal capacity.

Any significant developments of the proposal will be able to be discussed by the community, Councillors, and Council staff. Staff time and resourcing required to manage the existing formal committee will be reduced.

There will remain the possibility to reactivate the Working Group in the future, if circumstances change regarding the proposed motor sports complex.

2. That Council continue with the Shoalhaven Motor Sports Working Group as a formal Council committee, who will advocate for the development of a motor sports complex in the Shoalhaven, identify potential sites, and seek funding sources.

Implications: This option will require ongoing staff time and resources to manage the Working Group as a formal committee. The recommendation in Option 1 will in essence, achieve similar outcomes as this option, as potential investors and sites will remain to be brought forward and discussed. Due to a lack of Council budget and any appropriate site for the development of a motor sports complex, a formal Council committee guiding the proposal is not required.

If Council decides upon option two, the TOR will need a minor amendment to appoint a new Chairperson, and the appropriate Director in the membership. Staff have provided the following wording for a recommendation:

That Council continue the operation of the Shoalhaven Motor Sports Working Group for the period to September 2025 in accordance with its current Terms of Reference, with the following changes:

a. That Clr (insert name) be appointed Chairperson of the Working Group.

b. That Director City Development replace Director City Futures on the Working Group membership.

3. That Council adopt an alternative recommendation

Implications: Pending the nature of the recommendation.

Background and Supplementary Information

The vision of developing a motor sport complex in the Shoalhaven has been a long-term proposal within sections of the community, with discussions commencing in the late 1970’s. In the past, numerous sites throughout the Shoalhaven have been assessed and determined to be inappropriate.

Land surrounding the existing Motoplex at Yerriyong (Lot 7309 DP 1148878 and Lot 7308 DP 1147573) has been a focal point for previous and current discussions for the development of a motor sports complex. This site was previously determined to be the most suitable site in the Local Government Area (LGA) and is depicted in Figure 1 below.

An aerial view of a runway

Description automatically generated

Figure 1 – Proposed Yerriyong Site

In 2018 (as a result of MIN17.915), Council commenced investigations for a development application (DA) for the proposed motor sports complex at the Yerriyong site. Throughout the DA process, environmental assessments occurred and significant environmental implications and threatened species were identified. In 2021 (as a result of MIN21.498), the DA was abandoned at the proposed site on environmental grounds.

The Shoalhaven Motor Sport Working Group continued to meet, with the purpose of overcoming the ongoing challenges associated with finding a site for the proposed motor sports complex.

At the Ordinary Council meeting on 5 June 2023, a report was referred to Council regarding the Shoalhaven Motor Sports Working Group to determine the way forward and any update to terms of reference. It was resolved (MIN23.278 in summary):

That Council:

· Adopt an updated Terms of Reference for the Working Group.

· Increase the quorum and length of membership.

· Revise the purpose and delegated authority of the Working Group.

· Accept the tabling of the letter from a potential investor.

Purpose of the Working Group – Terms of Reference

The Shoalhaven Motor Sports Working Group at the conclusion of the last term of the Council had the following purpose and functions outlined in its Terms of Reference:

· Advocate for the development of a motor sports complex in the Shoalhaven.

· Seek to identify current and future potential sites for the establishment of a motor sports complex in the Shoalhaven.

· Upon identification of a potentially suitable site, advocate for funding for the establishment phase of this project from Federal and State Governments as part of their programs for rural and regional economic development.

Recent Actions of the Shoalhaven Motor Sports Working Group

The community members forming part of the Working Group are very passionate and engaged in regard to the development of a motor sports complex in the Shoalhaven. It has been identified that there is significant community support for the proposal if a site can be progressed.

The Working Group has not made any recent significant progress in progressing a suitable site for a motor sports complex. Numerous sites have received preliminary investigations, which continue to suggest that there is not a current suitable site within the LGA. These sites include:

· The former proposed Yerriyong site

· Forest Rd, Comberton

· Cleared floodplain land in the North of the LGA

· Sassafras

· Sussex Inlet

· Yerriyong Motoplex

In the past, Council supported the partnership to find a suitable site for a motor sport complex and progress it to a DA approved and shovel ready project. This proposed way forward reduces the risk to an investor and increases the likelihood of an investor progressing with a its development. Currently, there is no Council budget for any aspect of this proposal.

The Working Group was informed of a potential investor, which was tabled at the Ordinary meeting in June 2023. The Working Group have discussed this potential investor; however, nothing further has eventuated, and anecdotal advice has been Council may need to take the lead on the site and achieve DA approval.

Next Steps

Council leading the proposed motor sports complex forward, by progressing a site to DA approval, has been identified as not being possible at this time. As outlined throughout this report, Council does not have any budget for this proposal, as well as a lack of any suitable sites.

The recommended approach for the future development of a motor sports complex is that it should ideally be led by a private investor, who identifies land suitable for the scale of development and has the required budget. Council will then work with the investor to provide guidance and support for the identified site to assist in liaison of the proposal through the appropriate channels.

Should a site be found, and investor be secured, Council could consider reinstating the committee if needed.

On Tuesday 12 November 2024, a meeting was held with the Mayor, Clr Casmiri, the Acting CEO, and City Futures staff. The history of the proposed motor sports complex and the Working Group were discussed, as well as the lack of available land and Council budget.

It was discussed that the best way forward could be for the Working Group to be paused, and collaboration could continue in an informal setting, to catch up when required and discuss any potential investors and any public sites that may have become available. The Mayor stated that she would be happy to host this informal meeting, on a scheduled basis, or when required.

Therefore, this report recommends pausing the Shoalhaven Motor Sports Working Group as a formal Council committee. Council will continue to support the community with any enquiries around proposed sites that are identified, as well as future pathways to funding that is linked with sustainable economic development of the region.

Internal Consultations

Relevant internal staff have been consulted to determine potential planning pathways if the proposed motor sports complex was to go ahead, as well as seeking historical information on this proposal.

The recommended way forward has also been discussed with the Strategic Planning team who have assist with this project over many years.

External Consultations

External consultation has occurred with NSW Government organisations and relevant Aboriginal Land Councils in the past. This was due to conducting preliminary enquiries into potential land options and reporting the findings back to the Working Group.

There have been no external consultations from Council staff regarding the recommendation, however, it is understood Cllr Casmiri has met with the community members involved to discuss options for a way forward.

Community Consultations

The Shoalhaven Motor Sports Working Group was not formed to enable Council’s community consultation requirements, it was a small passionate group of community who are committed to the development of a motor sports complex. The Working Group was formed to assist these community members in any way Council was able, to progress the development of a motor sports complex

If any significant traction was to occur on the proposal, community consultation would occur as part of the planning process for the development.

Policy Implications

The Terms of Reference for the Shoalhaven Motor Sports Working Group are currently set out in POL23/29

This Policy, and any future revisions, would be no longer be required if the Working Group is paused as a formal Council committee.

Financial Implications

Between 2018 and 2021, Council spent over $200,000 from the Economic Development budget on investigations to support a DA at the proposed Yerriyong site. The expenditure was proposed to be reclaimed upon development of the site; however, the DA was abandoned in 2021, and the expenses were sunk costs.

Currently, Council does not have any budget to participate in costs associated with identifying a site or preparing a DA for a motor sports facility. Without a secure investor, consideration needs to be given to the future risk of hosting a formal Working Group for the project.

If the Working Group was paused in its formal capacity, there would be an overall reduction in budget spent with staff time and resources preparing reports and attending meetings.

Risk Implications

It has been identified to Council that the preferred pathway for an external investor, is for Council to progress a site to receiving DA approval for the development of a motor sports complex. Continuation of the Shoalhaven Motor Sports Working Group in a formal capacity could create the perception that Council is leading the proposed project in this manner.

To date, all identified sites in the Shoalhaven for a motor sports complex have all hosted a range of environmental and legislative implications. To progress with a DA at any Shoalhaven site, it could be likely that significant expenditure is required for the necessary assessments, and the site is ultimately ruled out and approval is not achieved.

Ordinary Meeting – Tuesday 10 December 2024

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CL24.397 Review of Public Policies - Communications Site Charging

HPERM Ref: D24/502883

Department: Water Business Services

Approver: Andrew McVey, Acting Director - Shoalhaven Water

Attachments: 1. Draft Communication Site Charging Policy ⇩

Purpose:

The Review of all Public and Local Approval Policies has been the practice of each newly elected Council. This report is the first in a series of reports that will propose to Council to consider and reaffirm. This is the first report that covers polices for reaffirmation with respect to Shoalhaven Water responsibilities.

Summary and Key Points for Consideration:

The attached two policies have been reviewed and updated with minor edits in wording to combine the two policies into one, the changes proposed do not change the original policy intention.

Recommendation

That Council

1. Reaffirm the Communication Site Charging Policy (POL22/124), with minor changes and additions.

2. Rescind Communications Site Rental – Community FM Radio Stations (POL22/125), as this Policy is now combined into Communications Site Charging Policy.

Options

1. Adopt the recommendation as written

Implications: Minor changes will assist for currency and clarity. There are no significant changes.

2. Not adopt the recommendation

Implications: Council can request further detail, seek further community input or make other changes.

Background and Supplementary information

The policies attached to this report have been marked up with the proposed changes for consideration and adoption by Council and a summary of the changes to each policy are as follows:

· Policy - Communication Site Charging

The Policy was last updated in 2022 and the changes proposed in this review include:

The inclusion of the requirements for Community FM Radio Stations previously covered under a separate policy. This policy will now cover all pricing and eligible discounts for both commercial and community organisations that have equipment installed on Council communications towers.

Changes also include minor editing and formatting of the policy updated to the new policy template.

Inclusion of the definition for the 5 site levels as detailed in Appendix A.

Reclassification of some of the sites to align with the definitions now included in the policy.

· Policy - Communications Site rental – Community FM Radio Stations

This report recommends that this policy is rescinded as the content of the policy has now been incorporated into the Policy – Communications Site Charging. LINK to the existing policy.

Internal Consultations

Key staff within Shoalhaven Water have been consulted and provided feedback on the changes proposed, No formal internal consultation across Council was conducted as the responsibility and application of the two polices are the responsibility of Shoalhaven Water.

External Consultations

No external consultation has been conducted as part of the review of these policies as no significant changes have been proposed in the review of this existing policy.

Community Consultations

No community consultation has been conducted as part of the review of these policies as no significant change has been proposed.

Policy Implications

Policies included in this report are proposed for reaffirmation, the nature of the changes are considered minor and therefore have no implications or deviation from the intent of the existing approved policies. The two policies have been incorporated into one policy.

Financial Implications

No financial implications have been identified from the proposed changes as the changes do not alter the current revenue received from the lease agreements in place.

Risk Implications

As no significant changes have been proposed there is no change to the current risk implications of these polices

Ordinary Meeting – Tuesday 10 December 2024

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CL24.398 Tenders - Cambewarra Dam Decommissioning

HPERM Ref: D24/497668

Department: Water Asset Planning & Development

Approver: Andrew McVey, Acting Director - Shoalhaven Water

Purpose:

To inform Council of the tender process for the Cambewarra Dam Decommissioning project.

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

Summary and Key Points for Consideration:

Council resolution is required to determine the tender process for the Cambewarra Dam Decommissioning project.

Recommendation

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

Options

1. Accept the recommendation

Implications: Consider a separate confidential report on the matter.

2. Council make a different resolution

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

Background and Supplementary information

Project Description

Cambewarra Dam was commissioned in 1910 to supply water to the township of Nowra. It was removed from service in 1980, replacing Nowra’s water supply with the Northern Shoalhaven Water Supply Scheme, drawing water from the Shoalhaven River at Burrier.

Cambewarra Dam has not served any useful purpose in over 40 years; with Council exploring options for its safe decommissioning in 2020 as the dam continues to incur annual operational and maintenance costs. Due to its age, should the dam not be decommissioned, Council will face future capital costs for ongoing dam safety operations and upgrades that may become necessary to satisfy Dam Safety NSW requirements as the dam is a Declared Dam under the Dam Safety Regulation 2019.

Options assessment for the decommissioning of the dam was undertaken in previous engagements, with Council electing to proceed with the partial removal of the concrete dam wall and the flattening of the dam’s embankment and emergency spillway.

Tendering

Council called tenders for Cambewarra Dam Decommissioning on 24/09/2024 which closed at 10:00 am on 31/10/2024. 6 tenders were received at the time of closing. Tenders were received from the following:

Tenderer	Location
Coastwide Civil Pty Ltd	29 Prosperity Road South Nowra NSW 2541
Hisway Pty Ltd	13A Investigator Street South Nowra 2541
JBG Civil Pty Ltd	Unit 6, 47 Princes Highway Albion Park Rail NSW 2527
Rare Environmental Pty Ltd	Unit 31, 6 Herbet Street St Leonards NSW 2065
Symal Infrastructure Pty Ltd	Level 4, 50 Hunter Street Newcastle NSW 2300
Boom Logistics	180 Shellharbour Road Warrawong NSW 2505

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

Internal Consultations

Guidance from Council’s Procurement team was sought on the financial limitations, delegations, and statutory provision for the procurement of the works.

External Consultations

Council previously engaged a design consultant to prepare the necessary design documentation for the proposed decommissioning of the Cambewarra Dam. The prepared design was subsequently submitted to Dam Safety NSW.

Community Consultations

A Review of Environmental Factors was prepared and exhibited in June 2024. Three comments were received during the exhibition period. Comments received related to downstream flooding and comments related to the potential sale of the land post-demolition. Responses were provided to all comments with flooding impacts addressed as part of the decommissioning design report. Further Community and stakeholder engagement is proposed during the construction phase with a dedicated project webpage being established under Council’s ‘Major Projects & Works’ Portal.

Policy Implications

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

Financial Implications:

Funds for this project have been allocated in the 2024/25 financial year from the water operating budget.

Ordinary Meeting – Tuesday 10 December 2024

Page 0

Local Government act 1993

Chapter 3, Section 8A Guiding principles for councils

(1) Exercise of functions generally

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

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

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

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

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

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

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

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

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

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

(2) Decision-making

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

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

(b) Councils should consider social justice principles.

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

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

(3) Community participation

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

Chapter 3, Section 8B Principles of sound financial management

The following principles of sound financial management apply to councils:

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

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

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

(i) performance management and reporting,

(ii) asset maintenance and enhancement,

(iii) funding decisions,

(iv) risk management practices.

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

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

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

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

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

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

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

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

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

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

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

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

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