Late Reports Agenda of Council Briefing

Council Briefing Agenda 3 December 2019

5 Strategy & Development

5.8 Amendment No. 5 to Local Planning Scheme No. 2 - Outcomes of Advertising

TRIM Ref: D19/157612

Authors: Matt Cosson, Strategic Planning Officer

Jordan Koroveshi, A/Manager Policy & Place

Authoriser: Stephanie Smith, A/Executive Director Strategy and Development

Attachments: 1. Map of Character Streets ⇩

2. Advertised Amendment No. 5 to Local Planning Scheme No. 2 ⇩

3. Summary of Submissions - Scheme Amendment No. 5 ⇩

4. Amendment No. 5 to Local Planning Scheme No. 2 ⇩

5. Amendment No. 5 to Local Planning Scheme No. 2 - Schedule of Modifications ⇩

Recommendation:

That Council:

1. NOTES the submissions received and ENDORSES Administration’s response to those submissions in relation to the advertising of Amendment No. 5 to Local Planning Scheme No. 2 included as Attachment 3; and

2. SUPPORTS Amendment No. 5 to Local Planning Scheme No. 2, with proposed modifications to address issues raised in the submissions, included as Attachment 4 pursuant to Part 5, Division 3, Regulation 50(3)(b) of the Planning and Development (Local Planning Schemes) Regulations 2015.

Purpose of Report:

For Council to consider:

· the outcomes of community consultation on Amendment 5 to Local Planning Scheme No. 2 (LPS2); and

· supporting Amendment 5 to Local Planning Scheme No. 2 with modifications pursuant to Part 5, Division 3, Regulation 50(3)(b) of the Planning and Development (Local Planning Schemes) Regulations 2015.

Background:

The City’s (former) Town Planning Scheme No. 1 (TPS1) came into effect in 1998 and included Clause 20(4)(d)(ii) which served to limit development in the Norfolk Precinct to a maximum of two dwellings per lot. Local Planning Scheme No. 2 (LPS2) came into effect on 16 May 2018 and included Clause 26(6) which continued to limit development to a maximum of two dwellings per lot and was worded as follows:

“Within the areas coded R40 bounded by Vincent Street, Beaufort Street, Walcott Street and Fitzgerald Street, a maximum of two dwellings will be permitted per lot.”

For various reasons Clause 26(6) was amended in 2018 and the current Clause now reads:

“Within the areas coded R40 bounded by Vincent Street, Beaufort Street, Walcott Street and Fitzgerald Street, a maximum of two dwellings will be permitted per lot, with exception of lots with subdivision approval for more than two strata or survey-strata lots granted prior to gazettal of Local Planning Scheme No. 2.”

The intent of these provisions was to retain the character of the area by restricting development to a predominately low-density, single-storey residential development pattern in the area, by permitting and encouraging infill development in the form of subdivision to the rear of the existing dwelling and to discourage greater levels of development in the form of multiple dwellings.

A review of development in the area has shown that there are a number of properties that have existing development with more than two dwellings per lot. There are a number of reasons for this, including:

1. The legal interpretation of ‘two dwellings per lot’ under the Town Planning and Development Act 1928 (repealed 2006), which allowed more than two dwellings.

2. Decision makers used Clause 40 of former TPS1 to vary the requirement and approve ‘non-complying’ development.

3. Clause 20(4)(d)(ii) of former TPS1 and Clause 26(6) of LPS2 was not referenced or acknowledged during the approval process; and

4. Lots were subdivided into green titles allowing two dwellings to be built on each of the newly created green title lots.

The first three of these issues have been addressed through various measures and are not anticipated to arise again and Clause 26(6) is now being implemented in accordance with its original intent. Despite these improvements the current clause does not provide an effective mechanism to address point four above as land could still subdivided into green titles allowing two dwellings to be built on each of the newly created green title lots.

Further investigations have revealed that limiting development to a maximum of two dwellings per lot, even when implemented properly, has not led to the retention of character within the area. The introduction of the Planning and Development Act (Local Planning Schemes Regulations) 2015 removed the requirement for development approval for the demolition of single houses. Clause 26(6) currently does not contain a mechanism to retain character dwellings and there are many circumstances where character dwellings have been demolished and replaced with a new single house or two new grouped dwellings. There is currently no mechanism within the planning framework to actively prevent the demolition of character dwellings except for the heritage listing process. Under the existing planning framework, the number of character dwellings being demolished is expected to continue to increase in the area.

No. 6 Burt Street, Mount Lawley falls within the amendment area and has a development approval for nine Serviced Apartments, two Multiple Dwellings, a Caretaker’s Residence and a Restaurant/Café. Following approval, the applicant lodged a scheme amendment application to remove the subject properties from Clause 26(6). The intent being to enable consideration of the Serviced Apartments to be converted to Multiple Dwellings. Following discussion with the City the applicant chose to withdraw the scheme amendment so that further investigations could be undertaken to consider a broader approach for Clause 26(6).

A desktop study of the area has revealed that there is an existing character building constructed prior to 1940 on approximately 49% of all properties subject to Clause 26(6). Of these properties, approximately 18% (or 9% of all dwellings) would be affected by the proposed amendment to Clause 26(6) as they have enough site area to develop more than two dwellings. A detailed investigation revealed that there were six intact character streetscapes in the area subject to Clause 26(6). Attachment 1 identifies the intact character streetscapes within the City and those at risk of development.

The City considered the ‘at-risk’ character streetscapes and prepared Amendment No. 5 to LPS2 at its meeting held on the 30 April 2019 (Item 9.7). The intent of Amendment 5 is to encourage the retention of character dwellings, while still managing the scale of development in the area consistent with existing development patterns.

The amendment proposes to allow development of more than two dwellings (up to an R40 density) where a significant portion of a character building, built prior to 1940, is retained. The development potential for all other lots would remain as a maximum of two dwellings per lot. The advertised amendment is included at Attachment 2.

Following approval from the Environmental Protection Authority, Amendment 5 was advertised for a period of 42 days between 20 July and 31 August 2019. The following methods of advertising were undertaken in accordance with the requirements of the City’s Policy No. 4.1.5 – Community Consultation and the Planning and Development (Local Planning Schemes) Regulations 2015 (Regulations):

· Advertisement in a local newspaper;

· Display notice of the proposed amendment in the City’s Administration and Civic Centre;

· Referral in writing to affected persons/agencies (this included letters being sent to all landowners and occupiers in the area); and

· Display on the City’s website.

Details:

The City received 15 submissions during the consultation period covering two key issues in relation to the amendment. Six submissions expressed support for the proposed amendment and nine submissions objected to the proposal. A full summary of submissions and responses to those submissions is included within Attachment 3.

1. Role and Purpose

The amendment seeks to incentivise the retention of character dwellings and character elements within the area. Submitters raised concerns that the advertised amendment would not be capable of protecting character in the area as intended. Submitters advised that not all dwellings constructed prior to 1940 have significance or contribute to the unique character. Concerns were also raised that the advertised amendment fails to define what a ‘character element’ of a building is.

While some streets have been largely developed already and others are more intact, the City has found that buildings constructed prior to 1940 are those which contribute most to the character of the area, so the retention of these is the focus of the amendment. Administration agrees, however, that the advertised amendment could lead to interpretation issues and be challenged in the future.

In response to these concerns, Administration proposes to modify Amendment 5 to:

· Introduce a definition of ‘character elements’ into LPS2; and

· Reference an urban design study to identify and confirm the ‘character elements’ of a building required to be retained.

2. Managing Density

The proposed amendment seeks to incentivise the retention of character dwellings by allowing for greater development potential on certain lots. A number of submissions raised concerns that the proposed increase in density would compromise the look and feel of the area and result in additional traffic congestion and exacerbate the existing levels of parking stress.

While it is acknowledged that the proposed amendment may result in an increase in density for the 9% of properties to which it applies, the size and scale of any new development would continue to be controlled through the existing policy framework and an assessment against LPP 7.1.1: Built Form would be required. LPP 7.1.1 seeks to ensure an application responds to the constraints of a site and has a negligible impact upon the amenity of adjoining properties. The remaining 91% of dwellings would be subject to the maximum two dwelling restriction as well as the provisions of LPP 7.1.1.

With reference to the traffic and parking concerns, streets in the area are engineered with sufficient capacity to cater for the traffic demand for R40 development and the amendment area is very well-serviced by public transport. Furthermore, all new dwellings are required to provide parking on-site. Therefore, it is considered that the area is able to cater for the expected increase in density.

Submitters also identified that the advertised amendment fails to address a situation where multiple lots are acquired in a single ownership and then developed in accordance with their R40 coding. It is acknowledged that the advertised wording does not specifically require all character buildings on an amalgamated site to be retained. This could result in a significant amount of character buildings being demolished where an applicant amalgamated several lots and was only required to retain one existing character building.

In response to this concern, Administration proposes to modify Amendment 5 to:

· Include a reference to each building on a lot that has character value.

The recommended modifications to the amendment would reduce the level of ambiguity and reinforce the intended purpose of Clause 26(6), to retain character buildings. The recommended modifications include:

1. Insert the term ‘character elements’ to Part 6, Division 1 – General definitions used in Scheme, as follows:

“Character elements means any design features of a building as viewed from the public realm, that combine to contribute to the appearance of the building including colour palette, texture, scale, materials and roof pitch.”

2. Modify the advertised Clause 26(6) as follows:

“Within the areas coded R40 bounded by Vincent Street, Beaufort Street, Walcott Street and Fitzgerald Street, a maximum of two dwellings are permitted per lot except where:

· A lot has subdivision approval for more than two strata or survey-strata lots granted prior to the gazettal of the Local Planning Scheme No. 2; or

· Development on a lot proposes the retention of ~~an entire building, or~~ a significant portion of each a building on that lot which was constructed prior to 1940 and which maintains all character elements of those buildings ~~that~~, deemed to be valuable by an urban design study.”

The final amendment is included as Attachment 4 with the schedule of modifications included as Attachment 5.

Consultation/Advertising:

Following the formal decision from the Minister, the City will notify submitters, publish a notice in a local newspaper and on the City’s website advising of the final decision of the Amendment and the location where it can be viewed in accordance with Part 5, Division 5, Regulation 64 of the Regulations.

Legal/Policy:

· Planning and Development Act 2005;

· Planning and Development (Local Planning Scheme) Regulations 2015;

· City of Vincent Local Planning Scheme No. 2;

· Local Planning Policy 7.1.1 – Built Form; and

· Policy No. 4.1.5 – Community Consultation.

Risk Management Implications:

It is considered low risk to support Amendment 5 to the City’s Local Planning Strategy No. 2 for the purpose of submitting the amendment to the WAPC to make a recommendation to the Minister for Planning to determine the amendment.

Strategic Implications:

This is in keeping with the City’s Strategic Community Plan 2018-2028:

Enhanced Environment

We have minimised our impact on the environment.

Sensitive Design

Our built form character and heritage is protected and enhanced.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

Not applicable.

Comments:

It is recommended that the City proceed with Amendment No. 5 with the proposed modifications. The additional changes provide more appropriate measures to retain the established character of the area, thereby ensuring the original intent of Clause 26(6) is being met to a better standard than before.

Council’s decision on this amendment along with the amendment documents will be forwarded to the WAPC along with Council’s decision. The WAPC must make any recommendations to the Minister for Planning in respect of the amendment that is considered appropriate, and submit the recommendation and associated documents to the Minister in accordance with section 87(1) of the Planning and Development Act 2005.

Council Briefing Agenda 3 December 2019

6 Infrastucture & Environment

6.1 Response to Petition Requesting the Relocation of Parking on Turner Street, Highgate Adjacent Jack Marks Reserve

TRIM Ref: D19/179993

Author: Paul Morrice, A/Manager Ranger Services

Authoriser: Andrew Murphy, Executive Director Infrastructure and Environment

Attachments: 1. Petition - Confidential

2. Location Map of Petitioners - Confidential

3. Existing Parking Arrangements on Turner Street (Plan No. 3462-PP-01) ⇩

Recommendation:

That Council:

1. APPROVES consultation with Turner Street, Highgate residents in relation to the proposed minor parking amendments communicating the following;

1.1 The proposed reallocation of all street parking on Turner Street, Highgate from the north side to the south side of the street; and

1.2 The proposed reallocation of the ‘No Stopping’ zone on Turner Street, Highgate from the south side to the north side of the street; and

2. NOTES that any submissions received as a result of the consultation as set out in clause 1 above will be presented to Council by March 2020 for consideration.

Purpose of Report:

To consider improvements and amendments to parking arrangements in Turner Street, Highgate as detailed in the report.

Background:

The City regularly receives requests for the introduction of, or changes to, parking restrictions in both residential and commercial areas. Administration generally undertakes a range of investigations including parking demand and traffic volume surveys to assess traffic and on street parking conditions. That data is then used to determine whether new or amended restrictions are warranted to improve parking availability and amenity.

Details:

At the City’s Ordinary Meeting of Council on 12 November 2019 a petition was received from Ms Lauren Ireland of Turner Street, Highgate, comprising of 109 signatures, requesting Council to consider changing the parking restrictions on Turner Street, Highgate. This would involve moving all on street parking from the north side of Turner Street to the south side of Turner Street. This would also involve moving the ‘No Stopping’ zone from the south side to the north side due to the narrowness of Turner Street.

It should be noted a Parking Management Plan (PMP) was submitted and approved by Administration for No. 5 Turner Street on 18 March 2019 in accordance with the conditions of the development approval granted by Council on 27 March 2018 for a Change of Use to Single House and Eating House. This was subsequently updated to reflect the development approval granted by Administration on 17 July 2019 for a Change of Use to Short Term Accommodation. The PMP identifies that there is sufficient onsite parking to cater for the needs of the guests of the short term accommodation and residents of the dwelling, noting that the staff of the eating house would also reside on the property. The PMP also included a parking survey of the surrounding streets which identified that there was sufficient capacity within the 60 on street bays within the immediate area. During the operating hours of the Eating House the peak number of bays recorded through the parking survey was four. The proposed parking changes would likely not impact on the operation of the approved PMP.

Out of the 109 signatures of the petition 22 signatures were from residents surrounding Jack Mark’s Reserve and as a result of this Administration proposes to consult with the residents of Turner Street, Highgate before considering any on-street changes to parking, which directly impact them.

The map as attached shows the current parking availability around Jack Mark’s Reserve including Turner Street, Highgate.

Administration has conducted an investigation which identified that whilst there is ample parking on both Wright Street and Broome Street, Highgate, it would not be opposed to the changes as proposed by the petition for a 12 month trial pending the results of the consultation.

Administration considers that there are a number of advantages and disadvantages to the changes proposed in the petition, as follows:

Advantages

· Improved access to users of the reserve who choose to drive.

· Improved line of sight for residents whilst reversing out of driveways/garages.

· Increased number of parking bays (approximately 3) overall as the park side does not have crossovers.

Disadvantages

· Lack of parking directly outside of residences.

· Decreased turning circle whilst exiting driveways/garages.

· Additional parking may encourage people to drive to the park instead of walking.

Administration seeks approval to consult with Turner Street residents regarding the minor parking restriction amendments and report the findings back to Council by March 2020.

Consultation/Advertising:

All affected property owners and occupiers in Turner Street will be notified of the proposal. There is minimal impact upon the wider community.

Legal/Policy:

The City of Vincent Parking and Parking Facilities Local Law 2007 regulates the parking or standing of vehicles in all or specified thoroughfares and reserves under the care, control and management of the City and provides for the management and operation of parking facilities.

Risk Management Implications:

Low: There is a low risk in ensuring full and open consultation with residents on any proposal which could impact them.

Strategic Implications:

This is in keeping with the City’s Strategic Community Plan 2018-2028:

Accessible City

We have better integrated all modes of transport and increased services through the City.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

Yes, there would be a cost to the proposed parking infrastructure changes. The estimated cost can be provided at the March meeting following consultation with Turner Street residents.

Council Briefing Agenda 3 December 2019

7 Community & Business Services

7.1 Lease of Beatty Park Leisure Centre cafe to Hospitality Service Providers Pty Ltd

TRIM Ref: D19/160400

Authors: Dale Morrissy, Manager Beatty Park Leisure Centre

Meluka Bancroft, Executive Manager Corporate Strategy and Governance

Authoriser: John Corbellini, A/Executive Director Community and Business Services

Attachments: 1. Submission from HISP Pty Ltd for the operation of the cafe at the Beatty Park Leisure Centre - Confidential

Recommendation:

That Council:

1. APPROVES providing local public notice pursuant to section 3.58 of the Local Government Act 1995 of the proposed lease of the café at the Beatty Park Leisure Centre, 220 Vincent Street, Leederville, to Hospitality Industry Service Providers Pty Ltd on the following key terms:

1.1 Term: Three years, commencing on 1 March 2020;

1.2 Option Terms: Two five year option terms, each subject to a market rent review;

1.3 Rent: $22,984 plus GST per annum, with no rent payable between 1 March 2020 and 30 June 2020 (inclusive) to allow for the café set upperiod;

1.4 Rent review 3% per annum, other than at the commencement of the option terms (market rent review);

1.5 Outgoings: $14,000 plus GST per annum with fixed increase of 3% per annum from 1 July 2021;

1.6 Land Tax: Payable by the lessee (if applicable);

1.7 Permitted Use: Café to service the Beatty Park Leisure Centre, open for the core business hours of 7am to 7pm daily, and for use for associated catering services;

1.8 Repairs/maintenance: The City to undertake any repairs or maintenance to the premises. If damage is caused by the lessee, the lessee is responsible for the cost. The City is responsible for the cost of repairs due to fair wear and tear and for any structural damage;

1.9 Café equipment: The City will provide the cafe equipment to the lessee in good working order. The lessee is responsible for the servicing, maintenance and repair of the equipment, at its cost. The City will replace any equipment at end of life with a comparable piece of equipment;

1.10 Cleaning: Lessee to keep the premises clean and tidy at all times;

1.11 Redevelopment: The City may undertake alterations, redevelopment, repair or major works to the Beatty Park Leisure Centre at any time, subject to providing the lessee with 3 months’ notice. No compensation will be payable to the lessee for any loss of business as a result of such works. If the lessee suffers loss as a result of a downturn in foot traffic / customers which is a direct result of the works, the City will provide the lessee with a rent abatement in line with the reduction in customers;

2.12 Emergency works: The City may be required to undertake emergency works from time to time. No compensation will be payable to the lessee for any associated loss of business. If the lessee suffers loss as a result of a downturn in foot traffic / customers which is a direct result of the works, the City will provide the lessee with a rent abatement in line with the reduction in customers;

2. If no submissions are received as a result of the public notice period in recommendation 1. above, DELEGATES BY ABSOLUTE MAJORITY to the Chief Executive Officer the power to enter into the lease in recommendation 1. above, and AUTHORISES the Mayor and Chief Executive Officer to affix the common seal and execute the lease; and

3. NOTES that if any submissions are received as a result of the public noticed period in recommendation 1. above, the Chief Executive Officer will provide the submissions to Council for consideration, and Council will determine whether to proceed with the proposed lease to Hospitality Industry Service Providers Pty Ltd .

Purpose of Report:

To consider providing local public notice of the proposed lease of the café at the Beatty Park Leisure Centre (café) to Hospitality Service Providers Pty Ltd (HISP).

Background:

The café is currently operated by the City as part of the Beatty Park Leisure Centre operations.

The 2018 Beatty Park Facility Management and Business Review conducted by consultants Sport and Leisure Solutions Pty Ltd found that:

“The most successful cafés in terms of service, food quality, stock control, waste management and financial performance, are those that are outsourced. Outsourcing has the benefit of guaranteed financial performance through the lease arrangement and in most cases, delivers professional operators that are incentivised through increased returns to perform at a high level in terms of customer satisfaction and the provision of quality food. Issues such as opening hours and minimum menu requirements, which can often present a challenge, can be addressed through lease documents.”

In accordance with the above advice, Administration has investigated the outsourcing of the café operations, which aligns with the operating model used by a number of other local government operated recreation / gym facilities.

Details:

The City invited expressions of interest for the lease of the café from 13 April to 20 May 2019, with the close of submissions extended from the original deadline of 10 May 2019. Advertisements were placed in the West Australian newspaper, Tenderlink and posted on the City’s website. One compliant submission, from HISP, was received, as well as one non-compliant submission. Administration also contacted two other operators of cafes at recreation centres to advise of the expression of interest but no additional submissions were received.

HISP’s submission, at Attachment 1, demonstrates a sound understanding of operating this type of café, extensive relevant experience and includes a sound business case.

Administration met with representatives of HISP and has reached agreement on the proposed lease terms. The outgoings fee has been negotiated to include utilities, building insurance, emergency services levy and rates for this portion of the Beatty Park Leisure Centre. The annual rent of $22,984 proposed by HISP is contingent on a four month rent free period, which will allow HISP to set up and market the café.

Consultation/Advertising:

In accordance with section 3.58 of the Local Government Act local public notice of the proposed lease would be provided for a period in excess of two weeks, commencing in mid December and closing in late January. To take into account the end of year holiday period, advertisements would be placed in the local papers in December and also mid January. Local public notice would be provided in the following ways:

· Advertisements in the City’s local newspapers and the West Australian in December and January;

· Public notice on the City, Library and Local History Centre and Beatty Park Leisure Centre notice boards; and

· Notices on the City’s website, social media platforms and in the e-newsletter.

Legal/Policy:

Section 3.58 of the Local Government Act 1995 (Act) provides that:

“(2) Except as stated in this section, a local government can only dispose of property to -

(a) the highest bidder at public auction; or

(b) the person who at public tender called by the local government makes what is, in the opinion of the local government, the most acceptable tender, whether or not it is the highest tender.

(3) A local government can dispose of property other than under subsection (2) if, before agreeing to dispose of the property -

(a) it gives local public notice of the proposed disposition -

(i) describing the property concerned; and

(ii) giving details of the proposed disposition; and

(iii) inviting submissions to be made to the local government before a date to be specified in the notice, being a date not less than 2 weeks after the notice is first given; and

(b) it considers any submissions made to it before the date specified in the notice and, if its decision is made by the council or a committee, the decision and the reasons for it are recorded in the minutes of the meeting at which the decision was made.

(4) The details of a proposed disposition that are required by subsection (3)(a)(ii) include —

(a) the names of all other parties concerned; and

(b) the consideration to be received by the local government for the disposition; and

(c) the market value of the disposition —

(i) as ascertained by a valuation carried out not more than 6 months before the proposed disposition; or

(ii) as declared by a resolution of the local government on the basis of a valuation carried out more than 6 months before the proposed disposition that the local government believes to be a true indication of the value at the time of the proposed disposition.

Risk Management Implications:

Low: Providing public notice of the proposed lease with HISP is low risk as Council would need to consider any submissions prior to entering into the lease. Notice would be provided in the West Australian as well as local newspapers to ensure that the advertisement is well publicised and the most advantageous lease is secured for the City. The City would also obtain a market valuation for the café and this would be provided to Council.

Strategic Implications:

This is in keeping with the City’s Strategic Community Plan 2018-2028:

Thriving Places

Our physical assets are efficiently and effectively managed and maintained.

Innovative and Accountable

Our resources and assets are planned and managed in an efficient and sustainable manner.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

The City currently operates the café at a net annual loss of $73,000 on average.

The proposed lease fee is $22,980 plus GST, subject to a four month rent free period, and the proposed outgoings fee is $14,000.

The rent is proposed to be increased by 3 per cent per annum, with market rent reviews at the commencement of each of the two option terms. This would ensure that that the lease fee aligns with market conditions.

The outgoings fee is proposed to cover the building insurance, emergency services levy, rates and utility costs associated with this portion of the Beatty Park Leisure Centre. If land tax is payable this would be payable directly by the lessee.

COMMENTS:

Outsourcing the operation of the café would allow the City to focus on its core business of running the leisure centre. It is anticipated that the private operation of the café would result in the more effective and efficient operation of the café, which should result in a better customer experience and enable the City to generate additional income from the café.

Public notice of the proposed lease would allow any other expression of interest to be lodged with the City and if provided these would be reported back to Council for consideration before approval of this lease. It is recommended that the CEO be delegated the authority to enter into the lease if no submissions or comments are received during the public notice period.

Council Briefing Agenda 3 December 2019

7.2 REVIEW OF Draft Annual Report 2018/19

TRIM Ref: D19/163127

Authors: Joanne Fitzpatrick, Marketing and Communications Officer

Gemma Carter, A/Manager Marketing and Communications

Rosslind Ellis, Manager Marketing and Partnerships

Authoriser: John Corbellini, A/Executive Director Community and Business Services

Attachments: 1. Draft Annual Report 2018/19 ⇩

Recommendation:

That Council:

1. Pursuant to Section 5.54(1) of the Local Government Act 1995, ACCEPTS BY AN ABSOLUTE MAJORITY the City of Vincent Annual Report for the 2018/2019 Financial Year, included as Attachment 1;

2. Pursuant to Section 5.27 of the Local Government Act 1995, CONVENES a General Meeting of Electors of the City of Vincent to be held on Tuesday 28 January 2019 at 6.00pm in the City’s Council Chambers, to present the City of Vincent Annual Report for the 2018/2019 Financial Year; and

3. NOTES that:

3.1 the report will be subject to further formatting and styling to be determined by the Chief Executive Officer, prior to publication;

3.2 pursuant to Sections 5.29 and 5.55 of the Local Government Act 1995, the Chief Executive Officer will give local public notice of the General Meeting of Electors to be held on Tuesday 28 January and of the availability of the City of Vincent Annual Report for the 2018/2019 Financial Year, as soon as practicable after the report has been accepted by Council; and

3.3 pursuant to Regulation 51 of the Local Government (Financial Management) Regulations 1996, the Director General of the Department of Local Government, Sports and Cultural Industries will be provided with a copy of the City of Vincent Annual Report for the 2018/2019 Financial Year, inclusive of the Annual Financial Report for the same period and the Auditor’s Report on that Financial Report.

Purpose of Report:

To accept the 2018/2019 Annual Report and set a date for the Annual General Meeting of Electors.

Background:

The Annual Report is an important document through which the City communicates with its stakeholders, provides a summary of the City’s activities throughout 2018/2019, and outlines progress made towards strategic objectives set out in the City’s guiding strategic documents. The Local Government Act 1995 (the Act) requires every Local Government to prepare an Annual Report and hold an Annual General Meeting (AGM) of electors

Details:

The Annual Report must, in addition to other requirements, incorporate the financial report and the auditor’s report. The Annual Report for 2018/2019 is included as Attachment 1. Section 5.27 of the Act requires the AGM be held on a day selected by the local government, not more than 56 days after the Annual Report is accepted by the local government.

The attached version of the Annual Report may be subject to formatting and styling changes to be determined by the Chief Executive Officer prior to publication.

The process and timetable for drafting the Annual Report and arranging the AGM is largely influenced by the receipt of the auditor’s report. The proposed date for the AGM of 28 January 2019 ensures that there is sufficient time following approval to design and publish the Annual Report prior to the AGM

Consultation/Advertising:

The AGM will be advertised via local public notice as required by section 5.29 of the Local Government Act 1995

Legal/Policy:

The Local Government Act 1995, Section 5.53 requires every Local Government to prepare an Annual Report. Section 5.54 states that the Annual Report is to be accepted by the Local Government no later than 31 December after that financial year.

Section 5.53 of the Local Government Act 1995 states:

“5.53 Annual Reports

(1) The Local Government is to prepare an annual report for each financial year.

(2) The annual report is to contain:

a) a report from the mayor or president;

b) a report from the CEO;

e) an overview of the plan for the future of the district made in accordance with Section 5.56 including major activities that are proposed to commence or to continue in the next financial year;

f) the financial report for the financial year;

g) such information as may be prescribed in relation to the payments made to employees;

ha) the auditor’s report for the financial year;

hb) details of entries made under section 5.121 during the financial year in the register of complaints, including —

(i) the number of complaints recorded in the register of complaints; and

(ii) how the recorded complaints were dealt with; and

(iii) any other details that the regulations may require;

(i) such other information as may be prescribed.”

Section 5.54 of the Local Government Act states:

“5.54 Acceptance of Annual Reports

(1) Subject to subjection (2) the annual report for a financial year is to be accepted* by the Local Government no later than 31 December after that financial year.

* Absolute majority required

(2) If the Auditor’s report is not available in time for the annual report for a financial year to be accepted by 31 December after that financial year, the annual report is to be accepted by the Local Government no later than 2 months after the Auditor’s report becomes available.

Section 5.55 of the Local Government Act 1995 states:

“5.55 Notice of annual reports

The CEO is to give local public notice of the availability of the annual report as soon as practicable after the report has been accepted by the Local Government.

5.55A Publication of annual reports

The CEO is to publish the annual report on the local government’s official website within 14 days after the report has been accepted by the local government.”

Section 5.27 states:

“5.27 Electors’ general meetings

(1) A general meeting of the electors of a district is to be held once every financial year.

(2) A general meeting is to be held on a day selected by the Local Government but not more than 56 days after the Local Government accepts the annual report for the previous financial year.

(3) The matters to be discussed at general electors’ meetings are to be those prescribed.”

Regulation 51(2) of the Local Government (Financial Management) Regulations 1996 requires every local government to provide a copy of its Annual Financial Report to the Director General of the Department of Local Government within 30 days of the local government’s CEO receiving the Auditor’s Report on that Financial Report.

Given that the Annual Financial Report and Auditor’s Report form part of the City’s Annual Report for the 2017/2018 Financial Year, it is appropriate to submit a copy of the complete Annual Report to the Department following Council’s adoption.

Risk Management Implications:

Low: The adoption of the 2018/2019 Annual Report ensures the compliance with the requirements of the Local Government Act 1995.

Strategic Implications:

This is in keeping with the City’s Strategic Community Plan 2018-2028:

Innovative and Accountable

SUSTAINABILITY IMPLICATIONS:

Not applicable

Financial/Budget Implications:

Not applicable

Council Briefing Agenda 3 December 2019

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Council Briefing Agenda 3 December 2019

8 Chief Executive Officer

8.6 Report and Minutes of the Audit Committee meeting held on 26 November 2019

TRIM Ref: D19/183250

Author: Meluka Bancroft, Executive Manager Corporate Strategy and Governance

Authoriser: David MacLennan, Chief Executive Officer

Attachments: 1. Minutes of the Audit Committee - 26 November 2019 ⇩

Recommendation:

That Council:

1. RECEIVES this report from the Audit Committee meeting of 26 November 2019; and

2. APPROVES the recommendations of the Audit Committee as set out in the Minutes of the
26 November 2019 meeting (Attachment 1).

Purpose of Report:

To report to Council the proceedings of the Audit Committee at its meeting held on 26 November 2019 in accordance with clause 2.21(1) of the City’s Meeting Procedures Local Law 2008.

Background:

The City’s Audit Committee is a statutory committee of Council, established in accordance with section 7.1A of the Local Government Act 1995. The primary objectives of the Audit Committee are to:

· accept responsibility for the annual external audit; and

· liaise with the local government’s internal and external auditors so that Council can be satisfied with the performance of the local government in managing its affairs.

The Audit Committee meets approximately every two months and comprises of three external independent members and four Elected Members.

Details:

At its meeting on 26 November 2019, the Audit Committee considered six agenda items as follows:

5.1 Appointment of Audit Committee Chairperson and Deputy Chairperson

5.2 Review of City of Vincent risk appetite and tolerance statements and Risk Management Policy – presentation from BDO Pty Ltd

5.3 Audited Financial Statements and Concluding Memorandum for year ended 30 June 2019 – to be presented by the office of the Auditor General and Moore Stephens

5.4 Update on the internal audit plan 2016 – 2020

5.5 Audit Committee Meeting Dates 2020

5.6 Review of the City of Vincent Audit Log

A summary of each item is below:

5.1 Appointment of Audit Committee Chairperson and Deputy Chairperson

The current members of the Audit Committee are as follows:

Cr Joshua Topelberg External Members:

Cr Dan Loden Mr Conley Manifis

Cr Susan Gontaszewski Ms Elizabeth Hunt

Cr Ashley Wallace Mr Robert Piper

Conley Manifis was elected unopposed as the Chair, and Cr Topelberg was elected unopposed as Deputy Chair, for a term of one year. This means that for the first time the Audit Committee has an independent Chair.

5.2 Review of City of Vincent risk appetite and tolerance statements and Risk Management Policy – presentation from BDO Pty Ltd

The Audit Committee considered the City’s draft risk appetite and tolerance statements and risk management framework (including the policy and administrative procedure). The draft risk appetite and tolerance statements and risk management policy will be finalised for presentation to Council in February 2020.

5.3 Audited Financial Statements and Concluding Memorandum for year ended 30 June 2019 – to be presented by the office of the Auditor General and Moore Stephens

The Audit Committee considered the Audited Annual Financial Statements and the Auditor’s Concluding Memorandum for the year ended 30 June 2019 and noted the decline in the Asset Sustainability Ratio. A response will be provided to the Minister for Local Government in respect to the Asset Sustainability Ratio decline, and this item will be tracked by the Audit Committee.

5.4 Update on the internal audit plan 2016 – 2020

The Audit Committee received an update on the status of the City’s Internal Audit Plan 2016 – 2020, noting that only three internal audits have been undertaken over the last three years. The Audit Committee requested that Administration prepare an internal audit plan for the next four years, which prioritises internal audit items based on risk. The draft internal audit plan 2019/20 – 2022/23 will be presented to the Audit Committee at its next meeting, scheduled for 3 March 2020.

5.5 Audit Committee Meeting Dates 2020

The Audit Committee adopted its schedule of meeting dates for 2020, as follows:

Date	Time
Tuesday 3 March	1.00pm
Tuesday 5 May	1.00pm
Tuesday 30 June	1.00pm
Tuesday 1 September	1.00pm
Tuesday 3 November	1.00pm

5.6 Review of the City of Vincent Audit Log

The Audit Committee received the progress made on the items listed in the City’s Audit Log, and reviewed the six items recommended for closure.

Consultation/Advertising:

Nil.

Legal/Policy:

Pursuant to clause 2.21 of the City’s Meeting Procedures Local Law 2008:

(1) Every committee is to cause:-

(a) a report with recommendations and suitable preamble;

(b) minutes of the committee’s proceedings and transactions;

to be presented to the Council by the presiding member of each committee concerned, or in his or her absence, a member of the committee in the form of a motion; “That the report be received and the recommendation be adopted”.

(2) No objection to the receipt of a report of any committee, or any part of it, shall be raised when such reports are presented to the Council, except for reasons arising out of such reports.

(3) The presiding member is to:-

(a) put the motion that the report be received;

(b) call for a motion to be moved by any member pursuant to clause 5.6(1), with the exception of item (a) of that clause, with respect to any recommendation contained in the report;

(c) put the motion that the recommendation be adopted in relation to the recommendations contained in the report, apart from a recommendation or recommendations which are the subject of a motion by a member pursuant to the preceding item of this sub-clause; and

(d) ensure that the motions are debated and dealt with in accordance with these Standing Orders in relation to a recommendation or those recommendations in the report which are the subject of a motion or motions by a member or members pursuant to clause 5.6.”

The Audit Committee Terms of Reference governs the functions, powers and membership of the Audit Committee.

Risk Management Implications:

Low: Reporting the outcomes of the Audit Committee meeting on 26 November 2019 to Council aligns with good corporate governance.

Strategic Implications:

This is in keeping with the City’s Strategic Community Plan 2018-2028:

Innovative and Accountable

Our resources and assets are planned and managed in an efficient and sustainable manner.

We are open and accountable to an engaged community.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

Nil.

8.8 Lease of portion of grandstand mezzanine, aerobics room and old administration offices at Beatty Park Leisure Centre - WA Swimming Association Inc

TRIM Ref: D19/148226

Author: Daniel Janssen, Land Projects Officer

Authoriser: Meluka Bancroft, Executive Manager Corporate Strategy and Governance

Attachments: 1. Letter from Swimming WA requesting a new lease ⇩

Recommendation:

That Council:

1. APPROVES a lease commencing 1 January 2020 to the Western Australian Swimming Association Incorporated for a portion of the office space at the Beatty Park Leisure Centre on the following key items:

1.1 Term: 1.5 years commencing 1 January 2020, to align with the Beatty Park Leisure Centre Options Project implementation;

1.2 Lease Area: 377.766 m²;

1.3 Rent: $48,294 plus GST per annum indexed to CPI;

1.4 Outgoings Contribution: $5,666 plus GST payable from 1 July 2020, based on a rate of $30/m²to cover the utility and building insurance costs;

1.5 Emergency Services Levy: Payable by the Lessee;

1.6 Repairs of Damage: Lessee is liable for the cost of the repair of any damage resulting from its use of the premises. The City will arrange the repair / maintenance work;

1.7 Insurance: Lessee to effect and maintain public liability insurance of a minimum of $20,000,000 for any claim;

1.8 Sub Lease: Power to sub lease parts of the Lease Area subject to the Lessor’s consent, which can not be unreasonably withheld;

1.9 Redevelopment / capital works: The City may at its discretion undertake any major capital works or the redevelopment of a portion of the Beatty Park Leisure Centre, subject to providing at least 6 months’ notice in writing to the Lessee. If the works are deemed by the City to adversely impact the Lessee’s use of the Premises, the lease will terminate, and no compensation to the Lessee will be payable. The City will endeavour to find the Lessee any alternative space within the centre to use during the redevelopment period; and

1.10 Car parking licence: Lessee may use 7 staff parking bays and 2 visitor bays within the Beatty Park Leisure Centre car park between business hours, 7.30am – 5.30pm Monday – Friday;

2. NOTES that the City values the Western Australian Swimming Association Incorporated’s use of a portion of the Beatty Park Leisure Centre and will look to accommodate their continued use once the Beatty Park Leisure Centre Options Project is completed;

3. Subject to satisfactory negotiations being carried out by the Chief Executive Officer, AUTHORISES the Mayor and Chief Executive Officer to affix the common seal and execute the lease in recommendation 1. above;

4. DELEGATES BY ABSOLUTE MAJORITY to the Chief Executive Officer under section 5.42 of the Local Government Act 1995 the power to approve a variation of the lease in recommendation 1. above in respect to the lease area and associated lease fee and outgoings fee, in the event a sub lessee terminates a sub lease with Western Australian Swimming Association Incorporated.

Purpose of Report:

To consider granting a new lease to the Western Australian Swimming Association Inc. (Swimming WA).

Background:

Swimming WA has leased a portion of the Beatty Park Leisure Centre since 1993 for the purpose of office space for the association headquarters. The current 3 year lease with a 3 year option was approved at the Ordinary Meeting of Council held on the 5 November 2013 (Confidential Item 14.2). The three year option term was exercised, which means the lease will expire on the 31 December 2019.

At the Ordinary Meeting of Council 3 May 2016 (Item 9.3.4), Council approved a variation to this lease to increase the lease area, as requested by Swimming WA.

Swimming WA currently sub leases portions of the building to the following state associations:

· AustSwim 65m²

· Diving WA 24m²

· Triathlon WA 66m²

· Masters WA 33m²

Details:

Swimming WA contacted the City in September 2019 to request a new 3 year lease, with a 3 year option term, as set out in the letter at Attachment 1. Administration is proposing that the terms of the new lease are consistent with the current lease, other than the lease term and the payment of utilities and building insurance.

Two of the current sub lessees, Diving WA and Masters WA, are relocating to HBF Park on the expiry of the current lease. On this basis, Swimming WA has requested that the lease area is reduced to 377.766m², and that the rent and outgoings payable are adjusted to reflect the new lease area.

A 1.5 year lease term is proposed as it aligns with the Beatty Park Leisure Centre Options Project, which is due to be completed in June 2020. A longer term lease could become a prohibitive factor in the implementation of any options determined by this project.

The current lease provides that Swimming WA is liable to pay the “proportion of all charges for water, consumption, gas, electricity, fuel, telephone or other services, utilities to facilities directly relating to the Premises”. There is no sub meter for Swimming WA’s lease area, and apportioning utilities based on the number of fixtures and fittings or the proportion of the building Swimming WA occupies is not deemed to be a fair and equitable method, given that this is a swimming pool centre and the plant and equipment associated with this is the main utility consumer. Due to the fact that Administration has been unable to determine utilities for the Swimming WA lease area, no utilities have been paid to date.

In the new lease it is proposed that Swimming WA pay a set utility and outgoings fee which is increased by CPI each year. Administration has considered the utility and building insurance costs at several buildings with similar office uses - the City’s administration building, the building occupied by Volleyball WA and the Terry Tyzack Physiopherapy in the City of Stirling. The average per square meter fee for building insurance and utilities across these three office buildings is about $30m² per annum. This equates to an annual outgoings fee of $11,333 plus GST. Swimming WA has confirmed that this fee is acceptable, provided that the fee is payable from 1 July 2020, to allow the fee to be budgeted for. This means the outgoings fee payable in 2020/21 will be $5,666.

Consultation/Advertising:

Swimming WA’s activities are considered of a sporting and recreational nature, and members of the association are not entitled to any pecuniary profit, which means providing public notice of the proposed lease is not a statutory requirement.

Legal/Policy:

The Local Government Act 1995 section 3.58 - Disposing of Property, provides that a local government can only dispose of property (which includes to lease) in accordance with section 3.58(3) unless the disposition falls within the scope of section 3.58(5), which includes:

“(d) Any other disposition that is excluded by regulations from the application of this section.”

In accordance with Section 3.58(5), Regulation 30 of the Local Government (Functions and General) Regulations 1996 provides a range of dispositions that are exempt from the application of Section 3.58 of the Act, including dispositions to:

“(2)(b) the land is disposed of to a body, whether incorporated or not –

(i) the objects of which are of a charitable, benevolent, religious, cultural, educational, recreational, sporting or other like nature; and

(ii) the members of which are not entitled or permitted to receive any pecuniary profit from the body’s transactions;”

Swimming WA’s objectives are recreational and sporting and the members do not receive any pecuniary profit from the associations operations. Therefore it is not necessary for the City to comply with section 3.58.

Risk Management Implications:

Low: Swimming WA has been a tenant at Beatty Park since 18 December 1993 and has complied with its lease obligations since this date. Entering into a new short term lease is of low risk for the City, except for the fact that the limited security of tenure a short term lease provides may lead Swimming WA to secure alternative premises.

Strategic Implications:

This is in keeping with the City’s Strategic Community Plan 2018-2028:

Connected Community

Our community facilities and spaces are well known and well used.

Innovative and Accountable

Our resources and assets are planned and managed in an efficient and sustainable manner.

Financial/Budget Implications:

The current rent is $54,706 per annum plus GST. The rent proposed is consistent with the current rent, increased by CPI as at December 2019, and would be $55,581 plus GST for 2020 for the current lease area. As the lease area has reduced from 434.766m² to 377.766m², the proposed rent for the new lease is $48,294 per annum plus GST.

The City would continue to recoup the Emergency Services Levy and any maintenance costs from Swimming WA as the costs arise. The approximate cost of outgoings (which includes utilities and building insurance) will also be recouped from 1 July 2020 ($5,666 for 2020), to allow Swimming WA to budget for this new cost.