Agenda of Ordinary Council Meeting

Ordinary Council Meeting Agenda 28 July 2020

10 Infrastructure & Environment

10.1 Waste Strategy Project 2 - Bulk Hard Waste Options Appraisal - Progress Report

Attachments: 1. Community Engagement Outcomes Report (Talis Consultants) ⇩

2. Public Engagement and Communications Strategy ⇩

Recommendation:

That Council:

1. NOTES the refined options presented for future hard waste (junk) services

2. NOTES the feedback from the Community Engagement Panel held on 7^th March 2020

3. APPROVES the proposed Public Engagement and Communications Strategy.

Purpose of Report:

The purpose of this report is to:

· To present further refined bulk hard waste options.

· To present the feedback received from the Community Engagement Panel Focus Group held in March 2020.

· To present the proposed detailed Public Engagement and Communications Strategy, for Council endorsement.

Background:

The City’s Waste Strategy 2018 – 2023 has a Vision of “Zero waste to landfill by 2028”. The Strategy recognises the current collection methodology for bulk hard waste is very out dated and encourages the generation of waste. Additionally, only 15% of the material collected is currently recovered through limited source separation on the verge.

During the last bulk hard waste collection in February 2019, Council and City Administration received numerous complaints from the community, with concerns including:

· Thoughtless scavenging (often overnight), creating amenity and safety issues/concerns;

· Adverse impact on visual amenity – including ransacked piles and litter;

· Presentation time too long, leading to further illegal dumping on existing piles; and

· Verge access/obstruction issues.

At the Ordinary Council Meeting held on 2 April 2019, Council approved a Notice of Motion for Administration to provide alternative options, including financial modelling. Initial options and modelling were provided at the 25 June 2019 Ordinary Council Meeting. The decision was, that Council:

“1. NOTES options presented for future hard waste (junk) services, resulting from a service review undertaken as part of Waste Strategy Project 2; and

2. DOES NOT support Option One - Cease to Provide the Service;

3. REQUESTS further investigation of options that may be more tailored to suit the City of Vincent community, including but not limited to:

3.1 maintenance of an annual service with inclusion of meaningful ways to achieve higher diversion from landfill and reduce amenity and verge obstruction issues;

3.2 more detailed free on demand services options, including consideration of neighbourhood or street based collection services; and

3.3 opportunities for recyclable and reusable goods to be offered for free on verges and/or timed to coincide with events linked to recycling, such as the Garage Sale Trail weekend;

4. REQUESTS

4.1 that further refined options are presented to the Community Engagement Panel for feedback prior to community consultation and to inform development of the Public Engagement and Communications Strategy;

4.2 that the proposed detailed Public Engagement and Communications Strategy includes objectives and rationale for any change in service and is presented to Council with the refined options for bulk hard waste collection prior to community consultation; and

4.3 that procurement of a bulk hard waste service in February 2020 be undertaken, with a shorter bulk waste presentation period to minimise dumping, visual amenity and verge access issues.”

Details:

City Administration engaged the services of Talis Consultants, to assist with the provision of further refined options, including financial modelling. As part of this modelling, various scheduled and on-demand collection scenarios were considered.

An outline of the advantages and disadvantages of each of the considered bulk waste options is summarised below.

Bulk Waste Collection Options - Summary of Advantages and Disadvantages

Type of collection – Scheduled

A scheduled collection, the existing service, involves the council and contractor working together to set dates for waste collection in each area. The households are informed of their collection date. Any compliant material placed on the verge prior to the scheduled date is collected. The existing service has minimal recovery of recyclables. Materials are uncontained and have, historically, been permitted to be presented up to two weeks prior to collection.

Advantages

· Operational efficiencies – i.e. no booking system required, optimising collection runs.

· Equal service for all residents.

· Administration reduced through no booking system being required.

· Residents can plan for it.

Disadvantages

· Generates more waste and therefore generally higher cost and reduced landfill diversion.

· Set schedule/dates means that residents who are travelling/away will not be able to partake in the service.

· Visual amenity affected by numerous properties presenting material at the verge over a number of weeks.

· Issues near council boundary due to different approaches to bulk waste collections, has resulted in illegal dumping near boundary and properties outside of the City putting bulk waste on their verges.

· Lack of space (verge) for some residents.

Type of collection – On-Request

On-request collections provide a convenient service, especially where there is a high renting population such as the City (where more than 1 in 3 households are renters - Profile id, 2016). This service involves the process of residents calling the council’s/contractor’s customer service unit (CSU) or requesting the service through an online portal. The anticipated wait time for residents may vary depending on a number of factors such as number of services available and seasonal demand variables (i.e. busy summers and quiet winters).

Advantages

· Reduces waste collected – moving towards the City’s zero waste Vision.

· Provides convenient timing for residents.

· Generates less waste and therefore less cost incurred by the City for management of waste materials.

· Provides interaction with the resident during booking to provide alternatives for reusable, repairable or recyclable items.

Disadvantages

· Additional administration for booking and database management.

· Can generate too many bookings for particular weeks and therefore not meet customer expectations of collection timing.

Scheduled – limit time material is presented

The service is scheduled, as with the existing service, however materials can be presented by residents on the verge no earlier than the weekend prior to collection to maintain the street front amenity and prevent illegal dumping. The City could enforce this by sending rangers to the scheduled areas prior to the collection week and issue notices/non-conformances to properties who have not complied with the time limit.

Advantages

· Improve street presentation.

· Reduces likelihood of illegal dumping.

Disadvantages

· Residents may not be home the weekend prior to their collection to place material out (within timeframe).

· Additional council resources required to enforce time limit for material presentation.

Scheduled – limit volume and time materials are presented

The WALGA Better Practice Vergeside Collection Guidelines encourage councils to move towards a 2m³ volume allowance. Introducing a limit by number of items could also be considered, whilst still maintaining a scheduled service. The City could enforce this by sending rangers to the scheduled areas prior to the collection days and examine the presented waste. Notices / non-conformances could then be issued to properties who have not complied with the volume/number of items requirements. Alternatively, upon collection, the council/contractor can make a “judgement call” as to whether the property has exceeded the volumetric requirements and collect the allotted amount, leaving excess waste and leaving notice for the property.

Advantages

· Reduces waste tonnage.

· Improves street presentation.

· Provides more equity in the service.

Disadvantages

· Likelihood that households will still exceed the collection volume and the enforcement, clean up following the service will increase.

· Residents may not be able to present large bulky items out within timeframe.

· Additional council resources required to enforce volume limits.

Scheduled – maintain limit of 1 collection

Many councils currently offer one scheduled collection per year including:

· Town of Bassendean;

· City of Fremantle;

· City of Melville; and

· City of South Perth.

This has been reduced from two services per year in some cases.

Advantages

· One collection provides an affordable, fair service for all residents without generating excess waste.

· Operational efficiencies i.e. no booking system required, optimising collection runs.

Disadvantages

· More services (i.e. higher participation) result in more waste therefore not consistent with the City’s vision of zero waste to landfill.

· If residents are away or move into a property after the annual service date, they effectively do not get a collection for the year.

On-request Skip Bin – limit volume and time materials are presented

The WALGA Better Practice Vergeside Collection Guidelines encourage councils to move towards a 2m³ volume allowance. A limit by number of items or containing the material within a skip bin could also be considered. Most on-request skip bin services limit the time that the skip bin is on a property to 2 business days.

Advantages

· Reduce waste tonnages with lower participation rate.

· Provide more equity in the service.

Disadvantages

· Likelihood that households will still overflow skip bins, which will result in an increase in administration to contact residents.

· Potential for other residents to dispose of waste, including non-compliant waste, in skip bins not allocated to them. However, this risk could be reduced by also limiting the time the skip bin is left with a resident.

· Lack of street frontage to place skip bins, affecting footpaths, parking and placement of other bins.

On-request Skip Bin – charge per service

There is an option to move towards a user pays system, particularly for on-request services.

Advantages

· Discourages use of the service, therefore reduces waste tonnages and increases waste diversion rates.

· User pays service, only residents that use the service pay for it.

Disadvantages

· Increases administration.

· True cost of service may be difficult to project as uptake would be unknown.

· Potential for increase in incidence of illegally dumped waste.

· Not enough verge space at some residences, or clearance for collection vehicles for truck to safely deliver and service the vehicle via hook lift truck.

On-request Skip Bin – include in rates (‘no charge’)

Most councils include the bulk waste service within their rates charge.

Advantages

· Only motivated residents book ahead, therefore reduces waste tonnages and increases waste diversion rates.

· Ease of administration without needing to collect a payment.

· Equal charge for all households.

Disadvantages

· Not a user pays system, therefore, ratepayers that don’t use the service are subsidising others.

· Not enough verge space at some residences, or clearance for collection vehicles for truck to safely deliver and service the vehicle via hook lift truck.

On-request – Uncontained (2m³) – charge per service

Some councils have moved away from skip bins and returned to uncontained services but as an on-request collection service. This type of service usually limits the volume of materials able to be presented and the time materials are allowed to be presented prior to collection.

Advantages

· Only motivated residents book ahead, therefore reduces waste tonnages and increases waste diversion rates.

· User pays service, only residents that use the service pay for it.

· Less street frontage and overhead lift/parking clearance required than skip bins.

· Fewer vehicle movements required to deliver and service the material

Disadvantages

· Increases administration.

· True cost of service may be difficult to project as uptake would be unknown.

· Potential for increase in incidence of illegally dumped waste.

On-request – Uncontained (2m³) – included in rates (‘no charge’)

Advantages

· Only motivated residents book ahead, therefore reduces waste tonnages and increases waste diversion rates.

· Reduced administration in fee collection.

· Equal charge for all households.

· Less street frontage and overhead/parking clearance required than skip bins.

· Fewer vehicle movements required to deliver and service the material.

Disadvantages

· Not a user pays system, therefore, ratepayers that don’t use the service are subsidising others.

On-request – Flexible service Optional Skip Bin/Uncontained and Waste voucher included in rates

A handful of councils offer residents the option of an on-request skip bin or waste voucher to self-haul their waste.

Advantages

· Provides flexibility in service offering for residents who are unable to self-haul their waste.

· Discourages use of the service, therefore reduces waste tonnages and increases waste diversion rates.

· Increased administration.

Disadvantages

· Not a user pays system, therefore, ratepayers that don’t use the service are subsidising others.

· Likely to be significantly more costly than other options due to requirement to subsidise waste vouchers.

On-request – Uncontained, charity partnership

The City could look to engage in a partnership arrangement with a charity, or charities, to collect suitable, resalable items put out for collection prior to the contractor undertaking collections. This type of service would work best with an uncontained, rather than skip bin, on-request service – facilitating charities to easily view what has been presented when they arrive at properties and collect suitable items. There would be benefits in including limits of time items can be presented to reduce the time items are left on the verge.

Advantages

· Provides flexibility in service offering for residents who are unable to self-haul their waste.

· Encourage additional diversion of waste from landfill with charity involvement.

Disadvantages

· Cost prohibitive.

· Increased administration for bookings and collections.

· Uncertainty of degree of waste diversion from this type of service.

· Historically charity take up of this option is low as shopfront charities require quality goods.

· Time consuming engaging with charities to find the right fit.

· Contractually challenging.

On-request – Street or neighbourhood based collections (1)

Everyone in the street/neighbourhood coordinated their collection at the same time so that all material is placed out at once.

Advantages

· Optimise opportunities for reuse / swapping within the area;

· Collection efficiencies for council (minimal impact).

Disadvantages

· Potentially not enough verge space for all material to be placed out at once, reduced street amenity at that time;

· It’s likely that the selected date is not optimal for all households in the area therefore lose the advantage of an on-request date that is convenient for the householder;

· Requires the neighbours to agree and negotiate and potentially create dispute if not all households agree;

· No administrative saving for council.

On-request – Street or neighbourhood based collections (2)

A group of neighbours could coordinate their bookings so that effectively if 6 households rotated their bookings all neighbours could contribute a small amount of waste every 2 months, or 12 households monthly.

Advantages

· Potentially optimising the service availability for the neighbourhood.

Disadvantages

This only works if all neighbours involved in the agreement act equitably. There are a large number of things that could go wrong with this model including:

· Its highly likely that the size of the collection pile would exceed the permitted limit for some collections, in which case it is unclear who is responsible but the resident that makes the booking could be penalised

· Not all of the neighbours may make their booking at the required time leading to a shortfall in the agreement.

· Non-complying material may be placed out and it may be difficult to identify the waste owner.

Any of these issues could result in a neighbourhood dispute or dispute with council that could be avoided if only the resident that makes the booking is permitted by council to place waste on the pile.

Refined options were subsequently taken to the Community Engagement Panel on 7 March 2020, as detailed below.

Consultation/Advertising:

On 7 March 2020, City Administration held a Community Engagement Panel Workshop, which was facilitated by Talis Consultants. During the workshop session, Talis presented the following six refined options and discussed/considered any other ideas voiced by the panel attendees.

Options considered:

1a - Scheduled – limit time material is presented 48 hours prior

1b - Scheduled – limit time material is presented and limit volume 2m³

2a – On request skip bin – charged/service

2b – On request skip bin – no charge

3a – On request – uncontained 2m³, 48 hours prior, charged

3b – On request – uncontained 2m³, 48 hours prior, no charge

The two Street/Neighbourhood based collection options, although considered and discussed, were not specifically included in the ranking, as they cannot operate as core “stand-alone” service options and as such were considered complimentary measures to the on-demand service options.

13 Community Panel residents participated. Feedback was sought through small group discussions and individual participant surveys.

Three breakout groups provided feedback and reached broad consensus that the City should adopt:

- an on-request, uncontained bulk waste collection service,

- limit volume to 2m³ per collection,

- costs for the service included within the City’s annual rates (rather than a user pays service).

This outcome was also reflected as the preferred option in the individual survey responses.

Respondents also indicated that they would like the option of a second, on request collection to be available at cost to the resident (i.e. a user pays additional service).

Further details of the Community Engagement Panel findings are included in the attached Community Engagement Outcomes Report (Talis Consultants) - Attachment 1, as presented to the 26 May 2020 Council Workshop.

Proposed Next Steps

The findings from the Community Engagement Panel have been used to inform the development of the Public Engagement and Communications Strategy (Attachment 2). This Strategy outlines the engagement objectives and rationale for change in service and details the proposed approach, including phasing and delivery timeline.

Legal/Policy:

Aligns with the City’s Waste Strategy 2018-2023 and the Waste Strategy 2030.

Legislation: The Waste Avoidance and Resource Recovery Act 2007

Risk Management Implications:

Medium: Community acceptance of proposed changes. It is essential that the City embark on a detailed consultation and communications campaign. As part of the campaign, the City will consult with the community to gauge their support and thoughts on the available options and provide opportunities for resident concerns to be heard and responded to. The City will subsequently inform, educate, and promote any service changes and encourage correct waste behaviours.

Medium: The City must address the diversion targets in accordance with the WA Waste Strategy 2030 and the City’s Waste Strategy Vision.

Low: MRC cost increases. As member councils remove their residual waste from the MRC facilities, this adversely impacts the remaining member councils as gate fees increase. It is estimated that for every 10,000 tonnes removed the gate fee will increase in the region of $5 per tonne. Failure to divert waste will incur even higher costs as MRC gate fees and the landfill levy continue to rise.

Strategic Implications:

Project 2 of the City’s Waste Strategy 2018-2023 will assist in the delivery of: the City’s Waste Strategy, the Waste Strategy 2030 and the City’s SCP objectives.

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

Enhanced Environment

We have improved resource efficiency and waste management.

Minimise our impact on the environment

SUSTAINABILITY IMPLICATIONS:

Will support the City’s Waste Strategy vision of sending ‘Zero Waste to Landfill’.

Financial/Budget Implications:

None directly arising from this report. The table below indicates the key findings from high level modelling undertaken on each of the options for service change:

Estimated tonnes collected and annual costs for bulk waste collection options

Collection option	Bulk waste tonnes pa		Estimated Annual Cost
Collection option	Total	Difference from Baseline	Estimated Annual Cost
Projected 2021/22 (current service)	691	-	$210,501
1a - Scheduled – limit time material is presented 48 hours prior	587	-15%	$178,926
1b - Scheduled - limit time material is presented & limit volume 2m³	553	-20%	$168,401
2a – On request skip bin – charged/service	408	-41%	$255,608
2b – On request skip bin – no charge	673	-3%	$421,753
3a – On request – uncontained 2m³, 48 hours prior, charged	200	-71%	$72,369
3b – On request – uncontained 2m³, 48 hours prior, no charge	329	-52%	$119,409

Detailed financial modelling will be updated as contract rates become available and will be used to inform the annual budget process.

Ordinary Council Meeting Agenda 28 July 2020

10.2 Tender 576/20 - Pavement Profiling & Supply and Laying of Hot Mixed Asphalt - Appointment of Successful Tenderer

Attachments: 1. Evaluation Schedule - Confidential

Recommendation:

That Council ACCEPTS the tenders submitted from WestCoast Profilers Pty Ltd, for profiling services, and Asphaltech Pty Ltd, for the supply and laying of hot mixed asphalt, for Tender 576/20 for Pavement Profiling & Supply and Laying of Hot Mixed Asphalt.

Purpose of Report:

To report to Council the outcome of Tender 576/20 and to recommend the acceptance of tenderers.

Background:

The City regularly undertakes significant capital works road projects and programs, such as the annual Metropolitan Regional Roads Grants (MRRG) program, Roads to Recovery (R2R) and Local Roads Programs, that require the profiling of a road surface and the laying of a new hot mixed asphalt wearing course.

In the past the City has advertised for these two services as separate tenders. However, in this instance it was advertised as one to test the markets capacity and willingness to combine both in a single tender. A number of the larger civil contractors provide both services and the rational was that a single contract may provide better ‘value for money’ in both pricing and coordination of works.

However, in acknowledgement that some specialist’s contractors, specifically the profilers, may be locked out from tendering if they were required to submitted prices for both services, the City’s tender was written so that it could be for a specific service, i.e. profiling or asphalt alone, or a single contract for both.

The tender documentation included the following (in part) clause:

‘Each of the two services are considered a separable portion of the contract. The City may accept both separable portions from the same supplier or each from separate suppliers…..’

Details:

Tender Advertising

The estimated value of the combined tender over three years is in excess of $3,500,000. As the total budget exceeds $250,000, Policy No. 1.2.3 – Purchasing, it requires an open public tender process.

Under CEO Delegation 1.19, the Executive Director Infrastructure and Environment approved the Procurement Plan, which included the following Evaluation Criteria:

Qualitative Criteria	Weighting
Respondents must, as a minimum, provide the following information: 1 – Relevant Experience Provide details of experience and expertise in providing pavement marking services to local government and/or similar organisations.	40%
2 – Resources Provide evidence that the tenderer has the required plant, equipment and appropriately skilled staff to undertake the works the City requires.	40%
3 – Demonstrated Understanding Tenderer to demonstrate they understand the scope of works required by providing the process for delivering the services, identify potential issues/risks and how these will be mitigated, proposed methodology for delivering services on time.	20%

Qualitative Criteria

Weighting

Respondents must, as a minimum, provide the following information:

1 – Relevant Experience

Provide details of experience and expertise in providing pavement marking services to local government and/or similar organisations.

40%

2 – Resources

Provide evidence that the tenderer has the required plant, equipment and appropriately skilled staff to undertake the works the City requires.

40%

3 – Demonstrated Understanding

Tenderer to demonstrate they understand the scope of works required by providing the process for delivering the services, identify potential issues/risks and how these will be mitigated, proposed methodology for delivering services on time.

20%

The Request for Tender 576/20 was publicly advertised in the West Australian on Monday 23 March 2020 and invited submissions until Monday 13 April 2020.

At the close of the advertising period, ten (10) tender responses were received, all of which were compliant, from the following companies:

· Asphaltech Pty Ltd.

· Boral Resources (WA) Ltd.

· Downer EDI Works Pty Ltd.

· Dowsing Group Pty Ltd.

· Fulton Hogan Industries Pty Ltd.

· KEE Surfacing Pty Ltd.

· Roads 2000 Pty Ltd.

· Stateline Asphalt Pty Ltd.

· WA Profiling and Stabilisation Pty Ltd.

· WestCoast Profilers Pty Ltd.

Of the ten submissions seven (7) tendered for both portions of the contract while three (3) tendered for the profiling portion only.

Tender Assessment

The tenders were assessed by members of the Tender Evaluation Panel (below) and each tender was assessed using the above Evaluation Criteria, with a scoring system being used as part of the assessment process.

Title	Role
Manager Engineering	Voting
Depot Operations Supervisor	Voting
Coordinator Engineering Operations	Voting
Procurement & Contracts Officer	Non-voting

Evaluation

When evaluating the tenders the panel established that the specialist asphalt only contractors intended upon sub-contracting profiling portion of the contract to third parties, two of whom had tendered for the profiling portion of the contract in their own right.

Several of the larger companies have the capability to provide both services in-house.

To determine the best ‘value for money’ while endeavouring to minimise the risk, of each of the tenderers submitted rates were applied to a number of past work scenarios and projects.

The resultant matrix demonstrated that splitting the tender into two, Pavement Profiling and Supplying and Laying Hot Mixed Asphalt, delivered the best outcome to the City.

The panel unanimously agreed on the following as the preferred tenderers.

Asphalt.

A summary table for the top three Tenderers is provided below. A full outline of the Qualitative Evaluation Criteria for each tenderer and pricing is contained within Confidential Attachment 1.

Company	Qualitative Score/100	Ranking
Asphaltech Pty Ltd	90.00	1
Downer EDI Works Pty Ltd	88.00	2
Fulton Hogan Industries Pty Ltd	88.00	3

Based on the evaluation panel discussion, the submission from Asphaltech was the highest ranked submission against the Qualitative Evaluation Criteria.

Profiling.

A summary table for the top two Tenderers is provided below. A full outline of the Qualitative Evaluation Criteria for each tenderer and pricing is contained within Confidential Attachment 1.

Company	Qualitative Score/100	Ranking
WestCoast Profilers Pty Ltd	90.00	1
WA Profiling and Stabilisation Pty Ltd	90.00	2
KEE Surfacing Pty Ltd	84.00	3

Given that the top two tenderers finished with the same Qualitative score, the evaluation panel then made a value judgement taking into consideration both risk and ‘value for money’ to separate them and award a ranking.

The tender from WestCoast Profilers Pty Ltd was adjudged the highest ranked submission.

Consultation/Advertising:

The Request for Tender 576/20 was advertised in the West Australian on 23 March 2020 and on both the City’s website and Tenderlink portal between 23 March and 13 April 2020.

Legal/Policy:

The RFT was prepared and advertised in accordance with the City’s Purchasing protocols: Policy No. 1.2.3 – Purchasing.

Risk Management Implications:

Medium Project delays and safety considerations.

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:

A competent and efficient profiling and asphalt contractor is essential to completing key capital works projects and programs in a timely and cost effective manner.

Financial/Budget Implications:

Costs associated with both the pavement profiling and laying of asphalt are charged against the various Engineering Operations capital works projects and operating accounts.

The annual expenditure under this tender varies from year to year dependant on work requirements, however based on previous years, it is estimated that the combined total value will be in excess of $1,000,000 per financial year.

Comments:

The submissions for WestCoast Profiling Pty Ltd and Asphaltech Pty Ltd comply with all the tender requirements. The submissions were well presented and included all specified information. The Evaluation Panel deemed the responses to be convincing and credible; demonstrating the capability, capacity and experience relevant to the Evaluation Criteria.

The Evaluation Panel recommends that WestCoast Profiling Pty Ltd and Asphaltech Pty Ltd be accepted for their respective portions of Tender 576/20 as they presented the best overall value for money to the City.

Qualitative Criteria	Weighting
Respondents must, as a minimum, provide the following information: 1 – Relevant Experience Provide details of experience and expertise in providing pavement marking services to local government and/or similar organisations.	40%
2 – Resources Provide evidence that the tenderer has the required plant, equipment and appropriately skilled staff to undertake the works the City requires.	40%
3 – Demonstrated Understanding Tenderer to demonstrate they understand the scope of works required by providing the process for delivering the services, identify potential issues/risks and how these will be mitigated, proposed methodology for delivering services on time.	20%

Title	Role
Manager Engineering	Voting
Depot Operations Supervisor	Voting
Coordinator Engineering Operations	Voting
Procurement & Contracts Officer	Non-voting

Company	Qualitative Score/100	Ranking
Line Marking Specialists (Bay Corporation Pty Ltd).	84	1
Linemarking WA Pty Ltd.	84	2

Qualitative Criteria	Weighting
Respondents must, as a minimum, provide the following information: 1 – Relevant Experience Provide details of experience and expertise in providing concreting services to local government and/or similar organisations.	40%
2 – Resources Provide evidence that the tenderer has the required plant, equipment and appropriately skilled staff to undertake the works the City requires.	40%
3 – Demonstrated Understanding Tenderer to demonstrate they understand the scope of works required by providing the process for delivering the services, identify potential issues/risks and how these will be mitigated, proposed methodology for delivering services on time.	20%

Title	Role
Manager Engineering	Voting
Depot Operations Supervisor	Voting
Coordinator Engineering Operations	Voting
Procurement & Contracts Officer	Non-voting

Company	Qualitative Score/100	Ranking
Cobblestone Concrete Pty Ltd.	82	1
Dowsing Group Pty Ltd.	82	2
Axiis Contracting Pty Ltd.	82	3
Techsand Pty Ltd.	80	4

Ordinary Council Meeting Agenda 28 July 2020

11.3 Investment Report as at 31 May 2020

Attachments: 1. Investment report as at 31 May 2020 ⇩

Recommendation:

That Council NOTES the Investment Report for the month ended 31 May 2020 as detailed in Attachment 1.

Purpose of Report:

To advise Council of the nature and value of the City’s investments as at 31 May 2020 and the interest earned year to date.

Background:

The City’s surplus funds are invested in bank term deposits for various terms to facilitate maximum investment returns in accordance to the City’s Investment Policy (No. 1.2.4).

Details of the investments are included in Attachment 1 and outline the following information:

· Investment performance and policy compliance charts;

· Investment portfolio data;

· Investment interest earnings; and

· Current investment holdings.

Details:

The City’s investment portfolio is diversified across several accredited financial institutions.

As at 31 May 2020, the total funds held in the City’s operating account (including on call) is $28,935,398 compared to $33,384,520 for the period ending 31 May 2019.

The total term deposit investments for the period ending 31 May 2020 is $22,319,031 compared to $29,469,158 for the period ending 31 May 2019. The total term deposit and fund amounts have reduced compared to last year for cash flow management purposes to cover operating and capital expenditure requirements.

In addition, the City foresees that investments in the short term will decline to ensure the City’s short to medium term liquidity position is sustainable during the COVID-19 pandemic.

The following table shows funds under management for the previous and current year:

Month	2018/19		2019/20
Ended	Total funds held	Total term deposits	Total funds held	Total term deposits
July	$26,826,861	$23,990,516	$32,209,493	$26,105,854
August	$44,327,708	$37,499,275	$49,641,327	$44,977,692
September	$44,209,274	$40,651,147	$44,876,698	$41,017,535
October	$44,463,021	$41,180,325	$46,846,286	$37,782,515
November	$44,188,761	$42,678,504	$46,118,236	$36,123,083
December	$40,977,846	$38,667,039	$38,557,295	$34,633,796
January	$42,109,674	$35,225,189	$37,915,806	$33,773,707
February	$44,227,308	$36,178,794	$35,377,640	$33,681,961
March	$39,157,958	$32,739,750	$33,969,162	$28,466,025
April	$36,427,902	$31,019,902	$30,832,893	$25,975,451
May	$33,384,520	$29,469,158	$28,935,398	$22,319,031
June	$30,503,765	$25,613,648

Total accrued interest earned on investments as at 31 May 2020 is:

Total Accrued Interest Earned on Investment	Budget Adopted	Budget Revised	Budget YTD	Actual YTD	% of FY Budget
Municipal	$370,000	$250,000	$248,326	$285,217	114.86%
Reserve	$278,688	$200,000	$153,552	$213,489	139.03%
Subtotal	$648,688	$450,000	$401,878	$498,706	124.09%
Leederville Gardens Incl. Surplus Trust*	$0	$0	$0	$98,473	0.00%
Total	$648,688	$450,000	$401,878	$597,179	148.60%

*Interest estimates for Leederville Gardens Inc. Surplus Trust were not included in the 2019/20 Budget as actual interest earned is restricted.

The City has obtained a weighted average interest rate of 1.62% for current investments including the operating account. The Reserve Bank 90 days accepted bill rate for May 2020 is 0.10%.

Sustainable Investments

The City’s Investment Policy states that preference “is to be given to investments with institutions that have been assessed to have no current record of funding fossil fuels, providing that doing so will secure a rate of return that is at least equal to alternatives offered by other institutions”. Administration currently uses Marketforces.org.au to assist in assessing whether a bank promotes non-investments in fossil fuel related entities.

As at 31 May 2020, $9,550,016 (33%) of the City’s investments are held in financial institutions considered to be investing in non-fossil fuel related activities.

Administration has established guidelines for the management of the City’s investments, including maximum investment ratios as shown in the table below.

Short Term Rating (Standard & Poor’s) or Equivalent	Direct Investments Maximum % with any one institution		Managed Funds Maximum % with any one institution		Maximum % of Total Portfolio
Short Term Rating (Standard & Poor’s) or Equivalent	Policy	Current position	Policy	Current position	Policy	Current position
A1+	30%	22.9%	30%	Nil	90%	46.50%
A1	25%	9.0%	30%	Nil	80%	14.30%
A2	20%	20.5%*	n/a	Nil	60%	39.21%

* The maximum allowable position with A-2 accredited institution (AMP Bank) has exceeded the threshold. This is because the total investment closing balance at the end of May has decreased compared to when the investments were undertaken resulting in an increase in the portfolio percentage i.e. an inversely proportional relationship.

Consultation/Advertising:

Nil.

Legal/Policy:

The power to invest is governed by the Local Government Act 1995.

“6.14. Power to invest

(1) Money held in the municipal fund or the trust fund of a local government that is not, for the time being, required by the local government for any other purpose may be invested as trust funds under the Trustees Act 1962 Part III.

(2A) A local government is to comply with the regulations when investing money referred to in subsection (1).

(2) Regulations in relation to investments by local governments may —

(a) make provision in respect of the investment of money referred to in subsection (1); and

[(b) deleted]

(c) prescribe circumstances in which a local government is required to invest money held by it; and

(d) provide for the application of investment earnings; and

(e) generally provide for the management of those investments.

Further controls are established through the following provisions in the Local Government (Financial Management) Regulations 1996:

19. Investments, control procedures for

(1) A local government is to establish and document internal control procedures to be followed by employees to ensure control over investments.

(2) The control procedures are to enable the identification of —

(a) the nature and location of all investments; and

(b) the transactions related to each investment.

19C. Investment of money, restrictions on (Act s. 6.14(2)(a))

(1) In this regulation —

authorised institution means —

(a) an authorised deposit‑taking institution as defined in the Banking Act 1959 (Commonwealth) section 5; or

(b) the Western Australian Treasury Corporation established by the Western Australian Treasury Corporation Act 1986;

foreign currency means a currency except the currency of Australia.

(2) When investing money under section 6.14(1), a local government may not do any of the following —

(a) deposit with an institution except an authorised institution;

(b) deposit for a fixed term of more than 3 years;

(c) invest in bonds that are not guaranteed by the Commonwealth Government, or a State or Territory government;

(d) invest in bonds with a term to maturity of more than 3 years;

(e) invest in a foreign currency.”

Council has delegated the authority to invest surplus funds to the Chief Executive Officer or his delegate to facilitate prudent and responsible investment.

Risk Management Implications:

Low: Administration has developed effective controls to ensure funds are invested in accordance with the City’s Investment Policy. This report enhances transparency and accountability for the City’s investments.

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.

Our community is aware of what we are doing and how we are meeting our goals.

Our community is satisfied with the service we provide.

We are open and accountable to an engaged community.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

The financial implications of this report are as noted in the details section of the report. Administration is satisfied that appropriate and responsible measures are in place to protect the City’s financial assets.

Ordinary Council Meeting Agenda 28 July 2020

11.5 Financial Statements as at 31 May 2020

Attachments: 1. Financial Statements as at 31 May 2020 ⇩

Recommendation:

That Council RECEIVES the financial statements for the month ended 31 May 2020 as shown in Attachment 1.

Purpose of Report:

To present the statement of financial activity for the period ended 31 May 2020.

Background:

Regulation 34 (1) of the Local Government (Financial Management) Regulations 1996 requires a local government to prepare each month a statement of financial activity including the sources and applications of funds, as compared to the budget.

Details:

The following documents, included as Attachment 1, comprise the statement of financial activity for the period ending 31 May 2020:

Note	Description	Page

1.	Statement of Financial Activity by Program Report and Graph	1-3
2.	Statement of Comprehensive Income by Nature or Type Report	4
3.	Net Current Funding Position	5
4.	Summary of Income and Expenditure by Service Areas	6-55
5.	Capital Expenditure and Funding and Capital Works Schedule	56-61
6.	Cash Backed Reserves	62
7.	Rating Information and Graph	63-64
8.	Debtors Report	65
9.	Beatty Park Leisure Centre Financial Position	66

Comments on the Statement of Financial Activity (as at Attachment 1)

Operating revenue is reported separately by ‘Program’ and ‘Nature or Type’ respectively. The significant difference between the two reports is that operating revenue by ‘Program’ includes ‘Profit on sale of assets’ and the report for ‘Nature or Type’ includes ‘Rates revenue’.

The City’s operations have been impacted by the measures imposed by the State and Federal Government to contain COVID-19. This has had a material impact on operating revenue and delivery of services and projects.

It is important to highlight that a conservative approach was taken whilst setting the revised budget, however due to the earlier than expected re-opening of the WA economy, the City’s actual position is tracking favourably compared to the budget for most areas.

Revenue by Program is tracking favourable compared to the YTD budget by an amount by $2,042,372 (12.1%). The following items materially contributed to this position: -

· A favourable variance of $727,658, mainly due to the advance receipt of Federal & Local Road grants ($622,327) that relate to next financial year (General Purpose funding);

· A favourable variance of $657,865 resulting primarily from the early re-opening of Beatty Park (Recreation and Culture); and

· A favourable variance of $465,350 materially contributed by revenue generated from parking infringements and parking fees (Transport).

Revenue by Nature or Type is tracking favourable compared to the YTD budget by $2,015,862 (3.9%). The following items materially contributed to this position: -

· A favourable variance of $690,906 mainly due to the advance receipt of Federal & Local Road grants (Operating Grants, subsidies and contributions); and

· A favourable variance of $1,253,949 for revenue generated primarily from fees and charges, mainly contributed by Beatty Park operations and parking revenue (Fees and charges).

Expenditure by Program reflects an under spend of $850,515 (1.6%) compared to the year to date budget. The following items materially contributed to this position: -

· An under-spend of $271,147,mainly contributed by the timing of payment relating to waste collection and the delivery of operating projects & programmes (Community Amenities);

· An underspend of $321,603 mainly contributed by a timing variance for costs relating to software maintenance & IT strategy (Governance);

· An under-spend of $322,196 contributed by a timing variance in the delivery of works relating to Community safety programmes, street cleaning and equipment maintenance (Law, Order & Public safety);

· An under-spend of $767,427 mainly contributed by a timing variance in the delivery of works within multiple service areas (Other Property and Services); and

· An over-spend of $832,599 mainly contributed by:-

o On-going maintenance works at various City facilities; and

o Employee costs primarily relating to ‘Parks & Reserves’ and Beatty Park respectively.

The budget for these areas was reduced this month in anticipation of COVID-19. However, due to the early re-opening of most facilities, the City has incurred additional expenditure that was not budgeted for resulting in a cost variance. (Recreation and Culture)

Expenditure by Nature or Type reflects an under-spend of $734,915 (1.4%) compared to the year to date budget. The following items materially contributed to this position: -

· Materials and contracts reflects an under-spend of $715,597. This variance is mainly contributed by a timing variance of works within the following areas:

o Recycling collection service - $233,104;

o Consultancy & leasing costs* - $212,367; and

o Operating projects within multiple areas - $217,065.

*Operating lease costs for EMV kits for parking ticket machines have reduced as these costs have been capitalised in accordance to the new accounting standards for leasing (AASB 16).

· Other expenditure reflects an under-spend of $711,656 largely contributed by a timing variance in the delivery of works within different service areas.

· Employee costs reflects an over-spend of $695,044 which is spread across multiple service areas primarily due to the budget being reduced this month in anticipation of COVID-19. However, due to the early re-opening of most facilities, the City has incurred additional expenditure that was not budgeted for, resulting in a cost variance.

Surplus Position – 2019/20

The surplus position brought forward to 2019/20 is $5,811,178 as per the City’s 2018/19 audited financials. The May closing position is $9,938,109 reflecting a favourable position of $4,025,790 compared to the May budget amount of $5,912,319.

Content of Statement of Financial Activity

An explanation of each report in the Statement of Financial Activity (Attachment 1), along with some commentary, is below:

1. Statement of Financial Activity by Program Report (Note 1 Page 1)

This statement of financial activity shows operating revenue and expenditure classified by Program.

2. Statement of Comprehensive Income by Nature or Type Report (Note 2 Page 4)

This statement of Comprehensive Income shows operating revenue and expenditure classified by Nature or Type.

3. Net Current Funding Position (Note 3 Page 5)

‘Net current assets’ is the difference between the current assets and current liabilities; less committed assets and restricted assets.

4. Summary of Income and Expenditure by Service Areas (Note 4 Page 6 – 55)

This statement shows a summary of operating revenue and expenditure by service unit including variance commentary.

5. Capital Expenditure and Funding Summary (Note 5 Page 56 - 61)

Below is a summary of the year to date expenditure of each asset category and the funding source associated to the delivery of capital works.

EXPENDITURE	Revised Budget	YTD Budget	YTD Actual	Remaining Budget
	$	$	$	%
Land and Buildings	2,302,786	2,117,786	1,588,331	31.0%
Infrastructure Assets	5,369,020	5,067,860	4,100,645	23.6%
Plant and Equipment	2,550,820	2,550,820	2,273,828	10.9%
Furniture and Equipment	915,403	400,697	245,388	73.2%
Total	11,138,029	10,137,163	8,208,192	26.3%

FUNDING	Revised Budget	YTD Budget	YTD Actual	Remaining Budget
	$	$	$	%
Own Source Funding - Municipal	7,348,230	6,961,674	6,721,377	8.5%
Cash Backed Reserves	1,344,821	1,019,821	402,279	70.1%
Capital Grant and Contribution	1,889,978	1,745,668	796,547	57.9%
Other (Disposals/Trade In)	555,000	410,000	287,989	48.1%
Total	11,138,029	10,137,163	8,208,192	26.3%

The full capital works program is listed in detail in Note 5 in Attachment 1.

6. Cash Backed Reserves (Note 6 Page 62)

The cash backed reserves schedule provides a detailed summary of the movements in the reserves portfolio, including transfers to and from the reserve. The balance as at 31 May 2020 is $9,430,807.

7. Rating Information (Note 7 Page 62 - 63)

The notices for rates and charges levied for 2019/20 were issued on 19 July 2019. The Local Government Act 1995 provides for ratepayers to pay rates by four instalments. The due dates for each instalment are:

	Due Date
First Instalment	26 August 2019
Second Instalment	29 October 2019
Third Instalment	7 January 2020
Fourth Instalment	10 March 2020

The outstanding rates debtors balance as at 31 May 2020 is $1,477,332 including deferred rates ($103,602) and excluding ESL debtors and pensioner rebates.

8. Receivables (Note 8 Page 64)

Total trade and other receivables (inclusive of Prepayments & Accrued income) as at 31 May 2020 is $2,124,947, of which $1,850,819 relates to outstanding debtors.

Administration has been regularly following up all outstanding items by issuing reminders when they are overdue and subsequently initiating a formal debt collection process when payments remain outstanding for long periods of time.

Below is a summary of the significant items that have been outstanding for over 90 days:

· $1,761,984 relates to unpaid infringements (plus costs) over 90 days. Infringements that remain unpaid for more than two months are sent to the Fines Enforcement Registry (FER), which then collects the outstanding balance on behalf of the City for a fee.

$971,183 of this amount has been transferred to long-term infringement debtors (non-current portion). Due to the aged nature of some of the unpaid infringements, a provisional amount of $186,666 has been calculated as doubtful debts for the current portion (within 12 months) and a provisional amount of $196,072 has been calculated as doubtful debts for the non-current portion (greater than 12 months). This treatment is in accordance to the new requirements of the changes in the Accounting standards (AASB 9).

· $160,190 (9%) relates to cash-in-lieu of car parking debtors. In accordance with the City’s Policy 7.7.1 Non-residential parking, Administration has entered into special payment arrangements with long outstanding cash in lieu parking debtors to enable them to pay over a fixed term of five years.

On 8 April 2020, the Minister of Planning WA issued a provision that exempts proponents from making cash in lieu related payments for existing or new non-residential development to the City. This exemption is effective up to the earlier date of either: -

a) 90 days after the date upon which the State of Emergency Declaration ceases to have effect or is revoked; or

b) Midnight, 1 May 2023.

Furthermore, in light of the expected impact of COVID-19, Administration will calculate a provision amount to reflect the probability of not collecting outstanding monies owed to the City. All debtor categories will be reviewed on a case by case basis.

9. Beatty Park Leisure Centre – Financial Position report (Note 9 Page 65)

As at 31 May 2020, the Centre’s position is tracking favourably with an operating deficit amount of $459,093 (excluding depreciation) compared to the year to date budgeted deficit amount of $765,276.

10. Explanation of Material Variances (Note 4 Page 6 - 55)

The materiality thresholds used for reporting variances are 10% and $20,000 respectively. This means that variances will be analysed and separately reported when they are more than 10% (+/-) of the year to date budget and where that variance exceeds $20,000 (+/-). This threshold was adopted by Council as part of the budget adoption for 2019/20 and is used in the preparation of the statements of financial activity when highlighting material variance in accordance with Financial Management Regulation 34(1) (d).

In accordance to the above, all material variances as at 31 May 2020 have been detailed in the variance comments report in Attachment 1.

Consultation/Advertising:

Not applicable.

Legal/Policy:

Section 6.4 of the Local Government Act 1995 requires a local government to prepare an annual financial report for the preceding year and other financial reports as prescribed.

Regulation 34 (1) of the Local Government (Financial Management) Regulations 1996 requires the local government to prepare a statement of financial activity each month, reporting on the source and application of funds as set out in the adopted annual budget.

A statement of financial activity and any accompanying documents are to be presented at an Ordinary Meeting of the Council within two months after the end of the month to which the statement relates.

Section 6.8 of the Local Government Act 1995, specifies that a local government is not to incur expenditure from its Municipal Fund for an additional purpose except where the expenditure is authorised in advance by an absolute majority decision of Council.

Risk Management Implications:

Low: Provision of monthly financial reports to Council fulfils relevant statutory requirements and is consistent with good financial governance.

Strategic Implications:

Reporting on the City’s financial position is aligned 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.

Our community is aware of what we are doing and how we are meeting our goals.

Our community is satisfied with the service we provide.

We are open and accountable to an engaged community.

SUSTAINABILITY IMPLICATIONS:

Not applicable.

Financial/Budget Implications:

Not applicable.

Ordinary Council Meeting Agenda 28 July 2020

11.6 Adoption of 2020/21 Annual Budget

Attachments: 1. Financial Statements 2020/21 Budget ⇩

2. Capital Budget 2020/21 ⇩

3. Detailed Operating Statements by Directorate 2020/21 ⇩

4. Fees and Charges Schedule 2020/21 ⇩

5. Financial Hardship Guidelines - Rates ⇩

6. Differential Rates - Community Submissions ⇩

7. Budget Presentation to Council Briefing 21 July 2020 ⇩

Recommendation:

That Council BY ABSOLUTE MAJORITY:

1. BUDGET:

Pursuant to the provisions of Section 6.2(1) of the Local Government Act 1995 and Part 3 of the Local Government (Financial Management) Regulations 1996, ADOPTS the City of Vincent Annual Budget as detailed in Attachments 1 and 2 for the year ended 30 June 2021, which includes:

1.1 Statement of Comprehensive Income by Nature or Type, and Statement of Comprehensive Income by Program, showing a net result for that year of ($5,290,640);

1.2 Statement of Cash Flows showing a net cash provided by operations of $4,266,357 and net decrease in cash held of $5,145,219;

1.3 Rate Setting Statement by Program showing an amount required to be raised from rates of $35,926,422;

1.4 Transfers to/from Reserves as detailed on the Cash Backed Reserves Statement showing a 30 June 2021 closing balance of $7,778,256 which is a net decrease in cash reserves of $3,247,734 ;

1.6 Notes to and forming part of the Budget as included in Attachment 1; and

1.7 Capital Works Program showing a total of $10,550,052 (including 2019/20 carry forward projects).

2. RATES:

NOTES consideration of the submission received in response to the Notice published in accordance with section 6.36(1) of the Local Government Act 1995 and for the purpose of yielding up the deficiency disclosed by the Budget adopted in 1 above, Council pursuant to Sections 6.32, 6.33 and 6.35 of the Local Government Act 1995, IMPOSES the following differential general rates and minimum payments on Gross Rental Values (GRV):

2.1 General Rates:

Differential General Rate	Cents in the dollar
Residential	7.90754
Residential Vacant	7.25000
Commercial Vacant	12.81700
Other	6.71800

2.2 Minimum Payments:

Differential General Rate	Minimum Payment on GRV
Residential	$1,211.90
Residential Vacant	$1,211.90
Commercial Vacant	$1,516.40
Other	$1,197.70

2.3 RATE PAYMENT OPTIONS:

Pursuant to Section 6.45 of the Local Government Act 1995 and Regulation 64(2) of the Local Government (Financial Management) Regulations 1996, ADOPTS the following due dates for payment in full by one payment on the due date or in 4 instalments:

Option	Instalment	Date
(a)	Due Date/First instalment	18 September 2020
(b)	Second instalment	13 November 2020
(c)	Third instalment	8 January 2021
(d)	Fourth instalment	12 March 2021

2.4 INSTALMENT, RATES SMOOTHING AND ARRANGEMENTS, ADMINISTRATION FEES AND INTEREST CHARGES:

2.4.1 Pursuant to Section 6.45(3) of the Local Government Act 1995 and Regulation 67 of the Local Government (Financial Management) Regulations 1996, ADOPTS an instalment administration charge of $8.00 per instalment for payment of rates by 4 instalments, to apply to the second, third and fourth instalment;

2.4.2 Pursuant to Section 6.45(3) of the Local Government Act 1995 and Regulation 68 of the Local Government (Financial Management) Regulations 1996, ADOPTS an interest rate of 5.5% where the owner has elected to pay rates through an instalment option, rates smoothing or alternative payment arrangement.

2.5 LATE PAYMENT INTEREST ON OVERDUE RATES AND AMOUNTS:

ADOPTS an interest rate of 8% per annum, calculated daily from the due date and continuing until the date of payment on overdue:

2.5.1 rates in accordance with Section 6.51(1) of the Local Government Act 1995 and Regulation 70 of the Local Government (Financial Management) Regulations 1996, subject to Section 6.51(4) of the Local Government Act 1995; and

2.5.3 amounts due to the City in accordance with Section 6.13 of the Local Government Act 1995; and

2.5.4 In accordance with clause 14 of the Local Government (COVID-19 Response) Ministerial Order 2020, interest on outstanding rates cannot be applied to an excluded person, as defined in the Local Government (COVID19 Response) Ministerial Order 2020, that has been determined by the City of Vincent as suffering financial hardship;

Subject to the following exclusions - deferred rates, current instalment amounts not yet due under instalment payment options, registered pensioner portions and current government pensioner rebate amounts;

3. RUBBISH CHARGE:

Pursuant to Section 67 of the Waste Avoidance and Resources Recovery Act 2007, ADOPTS the following annual charges for the removal of domestic waste and recycling for all non-rateable properties receiving the service:

Removal Service	Annual Charge
240L weekly waste collection	$386
140L weekly waste collection	$243
240L fortnightly recycling collection	$101
360L fortnightly recycling collection	$133

4. REPORTING OF BUDGET VARIANCES:

Pursuant to Regulation 34(5) of the Local Government (Financial Management) Regulations 1996, ADOPTS the monthly reporting variance for the 2020/21 financial year of 10% or more, where that variance is also more than $20,000;

5. FEES AND CHARGES:

Pursuant to Section 6.16 of the Local Government Act 1995, ADOPTS the Schedule of Fees and Charges;

6. RATES WAIVER:

Pursuant to Section 6.47 of the Local Government Act 1995, WAIVES the 2020/21 local government rates for the following groups:

Floreat Athena Soccer Club Litis Stadium $23,177.10

Leederville Cricket Club Inc. Britannia Reserve $2,384.89

Earlybirds Playgroup Inc. 87 The Boulevarde $1,197.70

Highgate Forrest Park Playgroup Forrest Park $1,974.42

Volleyball WA Royal Park $3,560.54

North Perth Community Garden Woodville Reserve $1,197.70

Vincent Men’s Shed Woodville Reserve $1,343.60

North Perth Bowling Club Woodville Reserve $3,392.59

North Perth Tennis Club Woodville Reserve $2,452.07

Tennis Seniors WA Robertson Park $5,911.84

Forrest Park Croquet Club Forrest Park $4,836.96

Perth Soccer Club Forrest Park $1,545.14

Perth Soccer Club Dorrien Gardens $17,740.22

Azzurri Bocce Club Dorrien Gardens $4,568.24

Gymnastics WA Inc. Loftus centre $13,083.64

Loton Park Tennis Club Loton Park $2,720.79

Leederville Tennis Club Richmond St Leederville $3,191.05

East Perth Football Club Inc Leederville Oval $10,804.25

Subiaco Football Club Inc. Leederville Oval $12,761.41

North Perth Playgroup Inc. 15 Haynes Street, North Perth $1,197.70

Mount Hawthorn Toy Library Inc. Mt Hawthorn Community Centre $1,197.70

Mount Hawthorn Playgroup Inc. Mt Hawthorn Community Centre $1,197.70

Floreat Athena Soccer Club Inc. Britannia Reserve $2,384.89

Swimming WA Inc. Beatty Park $3,397.96

TOTAL $127,220.11

7. APPROVES the Financial Hardship Guidelines included in Attachment 5; and

8. NOTES an allowance of $250,000 within the budget that will be used to assist ratepayers in financial crisis.

Purpose of Report:

To consider for adoption the City’s Budget for the 2020/21 financial year, including imposition of differential and minimum rates, adoption of fees and charges, approving hardship guidelines and other consequential matters arising from the budget papers.

Background:

Between 1 June and 31 August each year, local governments are required to prepare and adopt a budget for the financial year. As in past years, in preparing the budget, Administration has compiled and analysed relevant information, held a series of budget workshops with Council Members, aligned to the priorities in the City’s Strategic Community Plan 2018 – 2028 (SCP) and review of the Corporate Business Plan (CBP).

A key part of the budget development is identifying the ‘budget deficiency’ to be made up from the levying of council rates. Once an estimate of that budget deficiency is known, local governments are required to give local public notice of any intention to levy differential rates.

Rates setting for 2020/2021 has been incredibly challenging given the rapidly changing external environment, its impact on the local community and economy, and the resulting impact on the City’s budget.

The City acknowledges that many residents and local businesses have been adversely impacted by the economic downturn resulting from COVID-19 restrictions and this has been considered in the rates setting process.

Additional volatility and complexity has arisen as a result of the Valuer General’s triennial revaluation of land.

In response, to the City’s COVID-19 Relief and Recovery Implementation plan, made the following commitments to the 2020/2021 Annual Budget:

1. Rate yield is maintained at 2019/2020 level, and excludes any rates growth;

2. No fees and charges increases; and

3. Developing a hardship guideline for ratepayers.

At the Ordinary Council Meeting held on 16 June 2020, Council considered a report (Item 4.1) dealing with a proposal to introduce Differential and Minimum Rates in order to fund the budgeted deficit of $35,926,422.

As a result, the following resolution was adopted:

‘That Council:

1. ADVERTISES by local public notice, in accordance with Section 6.36(1) of the Local Government Act 1995 for a period of 21 days its intention to levy the following differential rates and minimum rates in 2020/21 and invites submissions on the proposal from electors and ratepayers:

	2020/21
Rating Category	Rate in the dollar	Minimum rate
Residential	0.07907540	$1,211.90
Vacant Residential	0.07250000	$1,211.90
Commercial Vacant	0.12817000	$1,516.40
Other	0.06718000	$1,197.70

2. NOTES any public submissions received in response to 1 above will be presented to Council for consideration.’

Details:

The 2020/21 Draft Budget as presented includes the following components:

· Statutory Budget Statements (Attachment 1)

- Statement of Comprehensive Income by Nature or Type – this statement details the operating income and expenditure categorised by the nature of the income or expenditure, together with non-operating (capital) grants and profit/loss on asset disposal. Details of the 2019/20 Adopted Budget, together with projected (forecast) Actual are included for comparative purposes.

- Statement of Comprehensive Income by Program – this statement categorises the income and expenditure by the Program (function) it applies to. This schedule also details the distribution of the profit and loss and capital grants by Program.

- Rate Setting Statement (RSS) by Program and Nature and Type – identifies the amount of rates that need to be levied to allow the City to undertake all annual activities, once all income is recognised, non-cash items are adjusted back, Reserve transfers are incorporated and opening and closing balances are factored in.

- Statement of Cash Flows – this statement reflects how cash and cash equivalents have been generated and used over the reporting period.

- Explanatory notes to the Statements.

· 2020/21 Capital Budget (Attachment 2).

· Summary of Income and Expenditure by Directorate (Attachment 3).

· Fees and Charges Schedule (Attachment 4).

IMPACT OF COVID-19 ON BUDGET SETTING

In response to the COVID-19 crisis within the community, and the uncertainty and volatility this has created, the City has taken the following approach to budget setting in 2020/2021:

· Created a conservative and pessimistic outlook in forward estimates;

· Provided hardship support for property owners;

· Used special purpose cash reserves to support community grants;

· Reduced discretionary expenditure;

· Maintained permanent employment of staff; and

· Tightly monitor changing conditions through quarterly budget reviews.

Quarterly budget reviews will be conducted throughout the financial year to allow timely modifications to budgets as required.

Financial hardship Support

The City recognises that 2020/21 is an unprecedented year.

Acknowledging the potential for financial hardship arising from the COVID-19 crisis, the City has revised and strengthened its financial hardship measures.

These measures include:

· Bill Smoothing – all City of Vincent ratepayers can choose to pay their rates in fortnightly or monthly instalments, via direct debit, for the first time;

· Flexible Payment Arrangements – payment arrangements are facilitated in accordance with section 6.49 of the Local Government Act and may include extending payment deadlines, and repayments plans customised to the circumstances of the ratepayer;

· Deferment of payments for up to 12 months – ratepayers may request to defer the payment of rates for 6 to 12 months;

· Waiver of penalty interest and charges on payment arrangements – ratepayers entering into a payment arrangement will have interest and fees waived; and

· Suspension of debt recovery – debt recovery will cease once a payment arrangement is in place.

Financial Hardship Guidelines

The City has developed a set of Financial Hardship Guidelines demonstrating the City’s approach to assisting property owners when paying their rates levy (see Attachment 5).

In addition to providing flexible payment plans, payment deferment options and waiver of penalty interest,

the City will provide a rates waiver of $250 to eligible property owners who are experiencing financial hardship. A financial hardship fund has been created to enable this, totalling $250,000.

Additionally, ratepayers in financial crisis will be supported in accessing additional Federal, State and Local Government grants and support services, including grants and support services provided or facilitated by the City of Vincent.

Leederville Gardens Trust Allocations

The City of Vincent has used purpose specific funds from The Leederville Gardens Trust to support vulnerable residents during the COVID-19 pandemic. Up to $1 million in Trust Funds will be distributed to Public Benevolent Institutions including the YMCA, People Who Care Financial, RUAH Community Services, St Vincent de Paul, Uniting West, Foodbank WA and Derbarl Yerrigan Health Services.

OPENING BALANCE – 1 JULY 2020

The opening balance for 1 July 2019 was $118,813 less than was expected at the time last year’s budget was approved.

The City’s budget for 2019/20 was amended in May 2020 to reflect the impact of COVID-19 on the City’s budget. A conservative approach was taken given the uncertainty in the external environment.

The City lost $3,845,339 in revenue in the last quarter of 2019/20, and cut operating expenditure by $3,241,356 in response.

The 2020/21 proposed budget currently forecasts that the end of year result for 30 June 2020 will be $1,615,763, including carry forwards of $1,335,364, indicating an actual operating surplus of $280,399. This reflects the impact of tight management of operating expenditure in the final quarter of 2019/20.

Budgeted End of Year Result for 2019/20

INCOME STATEMENT

The City currently expects revenue to be reduced by 17%, or roughly $10 million, when compared to the previous year’s budget, and expenditure is reduced by 10.8% in response.

OPERATING REVENUE

In addition to the $3.8M lost in revenue in Q4 2019/20 due to COVID-19, the City currently expects revenue to be down by a further $10M in 2020/21. Budget amendments have been made accordingly, however the cumulative reduction in revenue will have a serious impact on the Long Term Financial Plan.

Assumptions resulting in the revenue reduction include:

Rates: The total rates yield for the 2020/21 budget is maintained the same as 2019/20, as part of the City’s COVID-19 commitment. The marginal increase of 0.7% relates to a 2019/20 adjustment to interim rates which has been invoiced for the full financial period, instead of partially during the year.

Grants/Subsidies/Contributions: 50% of the 2020/21 Financial Assistance Grant has been received in advance and recorded as revenue for 2019/20. A corresponding value has been factored into the opening surplus for 2020/21.

Fees and Charges Fees and charges decrease is attributable to the pessimistic outlook of the proposed budget. The City expects Beatty Park Leisure Centre (BPLC) to generate 50% less revenue due to the compound impacts of COVID-19 and indoor pool closure for the completion of capital works. Parking and infringement revenue is also expected to be significantly impacted due to the reduction in larger scale events and entertainment.

Interest Earnings Proposed interest has reduced as a result of Local Government (COVID-19 Response) Ministerial Order 2020. As a consequence of the Ministerial order the following changes have been made:

- Interest on outstanding debtor balances has been suppressed from March 2020 until September 2020;

- Late penalty interest has been reduced from 11% to 8%; and

- Interest is not being calculated for those individuals that qualify for financial hardship as per the City’s proposed hardship guideline.

Other Revenue: The City expects a decrease in reimbursements as a result of the financial assistance provided to City tenants in the form of outgoing waiver and deferral. This financial assistance is aligned to the National Cabinet’s ‘Mandatory Code of Conduct – Small to Medium (SME) Commercial Leasing Principles during COVID-19’ and WA’s Commercial Tenancies (COVID-19 Response) Regulations 2020 (WA).

OPERATING EXPENDITURE

The City has reduced or deferred expenditure in response to the forecast reduction in revenue. The City currently expects operating expenditure to reduce by $6.8M or 10.8%.

Assumptions resulting in the reduction of operating expenditure includes:

Employee Costs: The decrease in employee costs is attributed to the forecasted reduction in casuals due to the conservative approach of the proposed budget. The City will not be implementing any salary increases for 2020/21.

Materials and Contracts: A reduction of the proposed budget is due to a decrease in operating projects and reduction of costs for Beatty Park Leisure Centre.

Utility Charges The proposed budget has incorporated a reduction in utility costs due to the proposed reduction of the usage of Beatty Park Leisure Centre.

Interest Expenses Due to the reduction of the City’s loan in 2019/20 this has resulted in a decrease in interest charges for the proposed budget.

Other Expenditure: The City has curtailed marketing and events in 2020/21.

Non-Operating Budget

As detailed in the Statement of Comprehensive Income by Nature or Type (and Program), the following Non-Operating transactions are proposed for 2020/21:

· Capital Grants directly associated with the Capital Works Program (including carry forward funding) totalling $1,777,283.

· Profit on asset disposals of $256,502. This takes into account the current ‘book value’ of assets being sold against the total proceeds from the sale. This is a non-cash transaction.

· Loss on asset disposals of $13,303. As with the above ‘profit’, this item reflects those assets where the proceeds are lower than the current book value and is a non-cash transaction.

· The Rate Setting Statement specifies $90,000 for Proceeds from Disposal of Assets, which relates to the actual sale/trade-in of plant listed for replacement in the 2020/21 Capital Works Program.

Financing Activities

The Rate Setting Statement lists the following annual financing activities scheduled for 2020/21:

· Repayment of long term borrowings – loan principal repayments of $887,430.

· Transfers to Reserves of $809,449 includes the following movements:

- Office Building Reserve for 246 Vincent Street of $160,000 from annual rental payment to offset lease incentive costs.

- Public Open Space reserve created for Haynes Street with $157,899.

- Anticipated proceeds of $250,000 transferred to Tamala Park Reserve, from the activities of that joint arrangement.

- Transfer of capital funds for Loftus Recreation Centre of $51,664 and State Gymnastic Reserve of $9,682.

- The balance is the transfer and allocation of interest earnings of $180,205.

· Transfer from Reserves of $4,057,183, for the funding of various capital projects as follows:

- Asset sustainability reserve to fund $1,715,000 for the Beatty Park Infrastructure renewal project and $1,104,530 for various other capital projects that were carried forward in the May 2020 budget review.

- Cash in lieu for parking reserve to fund $516,000, this initiative is part of the COVID-19 Relief and Recovery Strategy to use cash-in-lieu parking funds to support local infrastructure projects;

- Office Building Reserve to fund renewal works of $196,000 for the building at 246 Vincent Street.

- Percentage of Art reserve to fund $525,600 for the COVID-19 Arts relief project.

The City expects a net decrease in cash for the year of $5,145,219.

Capital Budget

Capital projects have been heavily scrutinised given resourcing constraints, and projects have been put on hold unless they meet the following criteria:

· The project can be resourced in-house, gainfully using the labour of our permanent workforce;

· Business case presents an attractive cost benefit, for example:

- It is cheaper to complete the project now than later;

- The project will create potential for current or future savings; and/or

- The project is urgent and necessary in the current COVID-19 environment.

· In all cases, the City’s capacity to pay ultimately determines project feasibility.

To inform and prioritise capital works, it was determined the following priorities should be considered favourably given their importance within the community and the Strategic Community Plan:

· Solar PVC installation continues

· Greening program continues

· Parks & Open space is maintained

· Works for Beatty Park indoor pool and facilities

· Improvement in City’s asset sustainability ratio (reflecting appropriate maintenance of assets)

The 2020/21 Capital Works Program (Attachment 2) lists total new projects to the value of $10,550,052 as summarised below:

There has been a significant focus by the City to increase its renewal expenditure and as a consequence renewal expenditure has increased from 58% in the 2019/20 budget to 73% in the current draft budget.

The City has reduced its capital expenditure for the current budget as a result of constrained resources. The following are some of the key capital projects proposed in the draft budget:

The total capital value of $10,550,052 includes carry forwards of $1,335,364. It is important to note that carry forward projects come forward with their relevant funding, so they have no impact on the demand for rates in 2020/21. In the case of the Municipal funded projects, the equivalent funding is factored into the opening surplus, whereas the receipt of a Grant and Reserve funding is transferred to be recognised in 2020/21.

The City’s proposed capital budget, including bringing forward the major works to Beatty Park, will provide a direct benefit to the local economy, suppliers and contractors during a very difficult economic climate.

The breakdown of carry forwards from 2019/20 is:

Cash Backed Reserves

The Reserve Fund Statement (Attachment 1) and Rate Setting Statement reflect transfers to Reserves of $809,449 (including $180,205 in interest earnings), with the transfer from Reserves totalling $4,057,183, thereby providing in 2020/21 for a net outflow from the City’s Reserves of $3,247,733.

Fees and Charges

The fees and charges for 2020/21 have not increased due to the City’s COVID-19 Relief and Recovery Implementation plan. The only new fee is the hire of a cat trap which is a new service the City is offering.

Local Government Properties – Rates Waiver

In recent years, Council has waived the rate on a range of City properties leased to various community and sporting groups. This approach is not uncommon with other local governments, although there is a range of treatments applied. If a waiver is to be considered, it is necessary for it to be considered at the time of the adoption of the budget. Accordingly, Administration has proposed a recommendation to give Council the opportunity to expressly waive the rates for individual leased local government properties that do not meet any of the defined exemption criteria under section 6.26 (2) of the Act.

It should be noted, that the value of these rates (totalling $127,220.11) has been calculated into the Rates modelling. Also, waiving of the Rates does not impact on the liability for the Emergency Services Levy or the City’s Waste Collection Service provided.

RATES SETTING CONTEXT

The State Government is responsible for determining the methodology and valuation for valuing properties in Western Australia. Every 3 years the Valuer General’s Office, via Landgate, conducts a revaluation of all property values in the metropolitan area.

The revaluation is based on property valuations and sales data as of 1 August 2018 and is effective from 1 July 2020. Rating valuations are therefore assessed at a ‘snapshot in time’ reflecting the property market for the metropolitan area on precisely the same date, ensuring consistency and fairness in the allocation of rates.

Properties are valued on their potential rental income rather that the capital value, known as Gross Rental Value, or GRV.

Unfortunately, the GRV revaluation adds volatility to the City’s rates setting process. The GRV may vary for either the individual property (eg where property improvements of development has occurred), or may vary for a category of properties depending on sales data and valuations for the area.

The City then uses the revised GRV in the rates levy calculation, which consequently becomes more volatile.

The Local Government sector, including the City of Vincent, unsuccessfully appealed to the Local Government Minister to defer the GRV revaluation process this year so as to minimise this variability.

Rate Setting Arising from the Triennial Revaluation

The Valuer General’s Office has recently provided the revaluation data, with the following table demonstrating the total variance of the GRV for each rateable category:

Table 1: Impact Analysis of total GRV values for the City of Vincent, 2019/2020 to 2020/2021

Whilst individual properties may have fluctuated in value, at an overall category level, it can be seen that:

· Residential developed properties have on average lost 15.75% in value;

· Vacant residential land value has increased by 4.06%, although it should be noted the valuation methodology is different to developed land, with the GRV being a calculation of the capital value multiplied by 3%; and

· Non-residential properties (Other - Commercial and industrial) have on average lost between 3.53% and 5.32% in value.

Comparative view of Residential Rates – 2019/2020

In developing an equitable rating model, it is useful to undertake a comparison with other metropolitan local governments.

The following table details how the rate in the dollar and waste collection charges (where they are applied separately) levied in 2019/20 impact on the rate levied on an individual residential property at each of the local governments, based on a nominated Gross Rental Value (GRV) of $22,245, being the City of Vincent Residential category mean average.

In a residential rating context, this table demonstrates that in 2019/2020, when the waste collection charge is factored in the City had:

1. the fifth lowest minimum rate in the metropolitan area; and

2. the fourth lowest combined rates/waste charge of the 29 local governments listed for a residential property with a GRV of $22,245.

In the 2019/2020 year, the rates model (Table 2) generated a total rates yield of $35,655,785, excluding interim rates of $220,000 for new or improved properties. In setting rates for 2020/2021 Council has directed administration to ensure the total rates yield is maintained at 2019/20 level, and excludes any rates growth.

Table 2: Comparative View of Residential Rates in Metro LGAs for 2019/2020

Differential Rates and Minimum Rates in 2020/2021

Rate Modelling Assumptions

In preparing the Differential Rates and Minimum Rates for 2020/2021, the City has used the following assumptions:

1. Total rates yield is maintained at 2019/20 level, and excludes any rates growth;

2. Minimum rates remain at 2019/2020 levels;

3. Reflecting the impact of COVID-19 on local small businesses, rates modelling should soften the impact on Commercial and Industrial categories; and

4. Reflecting the impact of COVID-19 on individuals and families, financial hardship provisions are to be strengthened, including hardship funding and support, for ratepayers in distress.

Minimum Rate

Minimum rates are imposed to establish the minimum amount any property must pay to contribute to the cost of services provided by a local government, regardless of the value (GRV) of their property.

The minimum rate for each category has not increased from 2019/2020.

Rates Growth

Rates revenue generated from property development and improvement in the previous 12 months will be redirected into subsiding a $250,000 financial hardship fund for ratepayers in 2020/2021.

The City has been experiencing a moderate level of growth in the number of rateable properties over recent years, averaging nearly 1.83% annually since 2014. The following table demonstrates that growth in the number of rateable properties in 2019/20 is lower than the recent average, at 0.88%.

Table 3: Growth in the rates base

Consultation/Advertising:

Consultation – Intention to Implement Differential and Minimum Rates - Section 6.36(1) of the Act

Notices which included relevant details of Council’s intention to impose Differential and Minimum Rates and an invitation for submissions from electors and ratepayers in respect to the proposed differential rates were published in the following newspapers:

· Perth Voice – Saturday, 27 June; and

· Vincent Reporter – Thursday, 25 June.

Additionally, the information was published on the following website pages:

· News item/public notice – https://www.vincent.wa.gov.au/news/

· Rates information page – https://www.vincent.wa.gov.au/council/rates/rates-information.aspx

Submissions were required to be made in writing and provided by 5pm 17 July 2020.

In response to the invitation, five submissions have been received to date. As Council is required to consider any submissions received before imposing differential rates, details of all the submissions is at Attachment 6.

Legal/Policy:

The following clauses from the Local Government Act 1995 are relevant to the preparation of the Annual Budget.

6.2. Local government to prepare annual budget

(1) During the period from 1 June in a financial year to 31 August in the next financial year, or such extended time as the Minister allows, each local government is to prepare and adopt*, in the form and manner prescribed, a budget for its municipal fund for the financial year ending on the 30 June next following that 31 August.

* Absolute majority required.

(2) In the preparation of the annual budget the local government is to have regard to the contents of the plan for the future of the district made in accordance with section 5.56 and to prepare a detailed estimate for the current year of —

(a) the expenditure by the local government; and

(b) the revenue and income, independent of general rates, of the local government; and

(c) the amount required to make up the deficiency, if any, shown by comparing the estimated expenditure with the estimated revenue and income.

(3) For the purposes of subsections (2)(a) and (b) all expenditure, revenue and income of the local government is to be taken into account unless otherwise prescribed.

(4) The annual budget is to incorporate —

(a) particulars of the estimated expenditure proposed to be incurred by the local government; and

(b) detailed information relating to the rates and service charges which will apply to land within the district including —

(i) the amount it is estimated will be yielded by the general rate; and

(ii) the rate of interest (if any) to be charged by the local government on unpaid rates and service charges;

and

(c) the fees and charges proposed to be imposed by the local government; and

(d) the particulars of borrowings and other financial accommodation proposed to be entered into by the local government; and

(e) details of the amounts to be set aside in, or used from, reserve accounts and of the purpose for which they are to be set aside or used; and

(f) particulars of proposed land transactions and trading undertakings (as those terms are defined in and for the purpose of section 3.59) of the local government; and

(g) such other matters as are prescribed.

(5) Regulations may provide for —

(a) the form of the annual budget; and

(b) the contents of the annual budget; and

(c) the information to be contained in or to accompany the annual budget.

6.36. Local government to give notice of certain rates

(1) Before imposing any differential general rates or a minimum payment applying to a differential rate category under section 6.35(6)(c) a local government is to give local public notice of its intention to do so.

(2) A local government is required to ensure that a notice referred to in subsection (1) is published in sufficient time to allow compliance with the requirements specified in this section and section 6.2(1).

(3) A notice referred to in subsection (1) –

(a) may be published within the period of 2 months preceding the commencement of the financial year to which the proposed rates are to apply on the basis of the local government’s estimate of the budget deficiency; and

(b) is to contain –

(i) details of each rate or minimum payment the local government intends to impose; and

(ii) an invitation for submissions to be made by an elector or a ratepayer in respect of the proposed rate or minimum payment and any related matters within 21 days (or such longer period as is specified in the notice) of the notice; and

(iii) any further information in relation to the matters specified in subparagraphs (i) and (ii) which may be prescribed; and

(c) is to advise electors and ratepayers of the time and place where a document describing the objects of, and reasons for, each proposed rate and minimum payment may be inspected.

(4) The local government is required to consider any submissions received before imposing the proposed rate or minimum payment with or without modification.

(5) Where a local government —

(a) in an emergency, proposes to impose a supplementary general rate or specified area rate under section 6.32(3)(a); or

(b) proposes to modify the proposed rates or minimum payments after considering any submissions under subsection (4),

it is not required to give local public notice of that proposed supplementary general rate, specified area rate, modified rate or minimum payment.

6.26. Rateable land

(1) Except as provided in this section all land within a district is rateable land.”

Subsection (2) then goes on to specify the nature of properties that are exempt, which in essence includes:

(a) Crown Land being used for a public purpose or is unoccupied;

(b) Local government land used for a local government purpose;

(c) Regional local government land used for that Regional Local Government’s purposes;

(d) Land used exclusively for a religious body as a place of worship, residence of a minister, a convent, nunnery or monastery or occupied exclusively by a religious brotherhood or sisterhood;

(e) Land used exclusively by a religious body as a school;

(f) Land used exclusively as a non-government school;

(g) Land used exclusively for charitable purposes;

(h) Land vested in trustees for agricultural and horticultural show purposes;

(i) Land owned by Co-operative Bulk Handling Limited;

(j) Land exempt from rates under any other written law;

(k) Land which is declared by the Minister to be exempt from rates.

6.47. Concessions

Subject to the Rates and Charges (Rebates and Deferments) Act 1992, a local government may at the time of imposing a rate or service charge or at a later date resolve to waive* a rate or service charge or resolve to grant other concessions in relation to a rate or service charge.

* Absolute majority required.”

Fees and Charges

The fees and charges schedule has been reviewed in conjunction with the Budget development. The following provisions are relevant to the implementation of fees and charges.

6.16. Imposition of fees and charges

(1) A local government may impose* and recover a fee or charge for any goods or service it provides or proposes to provide, other than a service for which a service charge is imposed.

* Absolute majority required.

(3) Fees and charges are to be imposed when adopting the annual budget but may be —

(a) imposed* during a financial year; and

(b) amended* from time to time during a financial year.

* Absolute majority required.

Risk Management Implications:

Moderate: The 2020/21 Budget is based on the best information available and considered to be a reasonable and prudent representation of the financial performance for the year ahead.

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.

Our community is aware of what we are doing and how we are meeting our goals

We are open and accountable to an engaged community

SUSTAINABILITY IMPLICATIONS:

A review of the Long term Financial Plan (LTFP) is being undertaken, based on available data, to gain a general understanding of the City’s financial position going forward based on maintaining service levels and the capacity to manage the activities detailed in the Corporate Business Plan, together with a projected capital works program.

Financial/Budget Implications:

Subject to Adoption of the Budget on 28 July 2020, the Rates notices will be distributed from 7 August 2020.

Fees and Charges will be updated following the Budget adoption, unless otherwise set by a statutory authority to commence on any other date.

The opening surplus for 2020/21 has been decreased from $5,811,178 to $1,615,763. The opening surplus balance of $1,615,763 is attributable to:

· $727,995 Municipal funding for carry forward operating and capital projects;

· $265,441 Estimated surplus from 2019/20 Capital Works program; and

· $622,327 50% advance of the 2020/21 Financial Assistance Grant.

The closing surplus for 2019/20 is an estimate, as is the forecast for carry forward projects. Each of these will be submitted to Council for review following the annual audit of the 2019/20 Financial Statements. In the interim, the estimates are considered reasonable for calculation of the 2020/21 Opening Balance.

Ordinary Council Meeting Agenda 28 July 2020

12.3 Appointment of Elected Members and Community Representatives to Advisory Groups

Attachments: 1. Nominations for Children and Young People Advisory Group - Confidential

2. Nominations for Arts Advisory Group - Confidential

3. Nominations for Sustainability and Transport Advisory Group - Confidential

4. Summary of nominations and recommendations for CYPAG - Confidential

5. Summary of nominations and recommendations for Arts Advisory Group - Confidential

6. Summary of nominations and recommendations for Sustainability and Transport Advisory Group - Confidential

Recommendation:

That Council:

1. APPOINTS the following Elected Members as Council’s representatives on the below advisory groups for a term expiring on 16 October 2021:

1.1. Arts Advisory Group (2 Elected Members)

Members:
1.	Cr ……………………….…;
2.	Cr ……………………….…;

and the Chair of the Advisory Group will be Cr………………………………;

1.2. Children and Young People Advisory Group (2 Elected Members)

Members:
1.	Cr ……………………….…;
2.	Cr ……………………….…;

and the Chair of the Advisory Group will be Cr………………………………;

1.3. Sustainability and Transport Advisory Group (2 Elected Members)

Members:
1.	Cr ……………………….…;
2.	Cr ……………………….…;

and the Chair of the Advisory Group will be Cr………………………………;

2. RECEIVES the community nominations at Confidential Attachments 1, 2 and 3;

3. APPROVES an amendment to clause 3.2 of the Arts Advisory Group Terms of Reference to increase community membership from “up to 10” to “up to 11”.

4. APPOINTS the following community representatives to the City’s advisory groups for a term expiring on 16 October 2021:

4.1 Arts Advisory Group (up to 11 community members), as detailed in Confidential Attachment 4

1.	Applicant 2;
2.	Applicant 3;
3.	Applicant 5
4.	Applicant 6;
5.	Applicant 7;
6.	Applicant 8;
7.	Applicant 9;
8.	Applicant 12;
9	Applicant 13;
10.	Applicant 14; and
11.	Applicant 18;

4.2 Children and Young People Advisory Group (up to 6 community members), as detailed in Confidential Attachment 5;

1.	Applicant 1;
2.	Applicant 2;
3.	Applicant 3;
4.	Applicant 4; and
5.	Applicant 5.

4.3 Sustainability and Transport Advisory Group (up to 10 community members), as detailed in Confidential Attachment 6.

1.	Applicant 1;
2.	Applicant 2;
3.	Applicant 3;
4.	Applicant 4;
5.	Applicant 6;
6.	Applicant 7;
7.	Applicant 8;
8.	Applicant 9;
9.	Applicant 10; and
10.	Applicant 11.

Purpose of Report:

To appoint Elected Members and community representatives to the City’s Children and Young People Advisory Group (CYPAG), Arts Advisory Group (Arts) and Sustainability and Transport Advisory Group (Sustainability).

Background:

At the 19 May 2020 Council Meeting (Item 12.5) Council approved the Chief Executive Officer inviting nominations from community members for the CYPAG, Arts and Sustainability advisory groups for the period 28 July 2020 to 16 October 2021.

Nominations were invited for the period 25 May 2020 to 29 June 2020 in the following ways:

· on the City’s website and social media pages;

· in the local newspapers (30 May edition of the Perth Voice and 28 May edition of the Eastern Reporter);

· in the City’s e-newsletter; and

· direct correspondence to previous members and members of relevant community groups.

Details:

The City received a total of 35 nominations for the three advisory groups. These nominations have been assessed by Administration in terms of the relevant skills and experience of each applicant. The nominations are as follows:

· CYPAG – 5 nominations – as summarised at Confidential Attachment 1

· Arts – 20 nominations - as summarised at Confidential Attachment 2

· Sustainability – 11 nominations - as summarised at Confidential Attachment 3

Administration has reviewed the nominations and recommends that the community representatives as set out in Confidential Attachments 4 – 6 are appointed to the three advisory groups. These attachments include a review of each nominee’s application.

The Terms of Reference of the Sustainability and Transport Advisory Group will be reviewed at its first meeting and presented to Council for approval.

The Advisory Groups will commence meeting in August 2020.

Consultation/Advertising:

Nil.

Legal/Policy:

The membership requirements for the Advisory Groups is set out in clause 10 of the City’s Policy 4.2.12 – ‘Advisory Groups’.

The Terms of Reference for each of the City’s Advisory Groups is available on the City’s website.

The Terms of Reference for the Arts Advisory Group will be updated to allow up to 11 members (clause 3.2).

Policy 4.2.12 will be reviewed over the coming year, with the following issues considered:

· Selection criteria and minimum requirements for community members

· Quantitative methodology for the evaluation and selection (weighted criteria)

· Membership numbers

Risk Management Implications:

Low/Medium: There is low risk in the City appointing new Elected Members and community representatives to the City’s advisory groups.

Strategic Implications:

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

Connected Community

We have enhanced opportunities for our community to build relationships and connections with each other and the City.

Innovative and Accountable

We are open and accountable to an engaged community.

SUSTAINABILITY IMPLICATION

The proposed Sustainability and Transport Advisory Group’s role would be to provide guidance and advice on sustainability initiatives and relevant plans and strategies including the Strategic Community Plan, Sustainable Environment Strategy and Integrated Transport Strategy.

Financial/Budget Implications:

Nil

Ordinary Council Meeting Agenda 28 July 2020

12.4 Advertising of new lease of portion of the Beatty Park Leisure Centre to Beatty Park Physiotherapy Pty Ltd

Attachments: 1. Valuation Report for Beatty Park Physio February 2020 - 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 to Beatty Park Physiotherapy Pty Ltd (ACN 614 728 095) for a portion of the Beatty Park Leisure Centre, 220 Vincent Street, North Perth (Centre) on the following key terms:

1.1 Initial term: 5 years (subject to redevelopment clause) commencing 1 October 2020 (or such other date as agreed by the parties);

1.2 Option: 5 years (at City’s discretion and subject to redevelopment clause);

1.3 Premises area: 365.20m² (including pilates studio);

1.4 Rent: $82,170 per annum including GST $225 per m² including GST for a Premises area of 365.20m²;

1.5 Rent review: annual CPI rent review to occur on 1 July each year of the Lease commencing from 1 July 2021;

1.6 Outgoings: flat outgoings amount for new lease is proposed at $21,912 per annum including GST, equivalent to $60 per m² for a Premises area of 365.20m², subject to a CPI increase annually on 1 July of each year of the Lease;

1.7 Repair/maintenance: the tenant is responsible for general minor maintenance of premises which includes replacement of fittings and fixtures including light globes and taps, re-painting of painted surfaces within the premises to ensure they remain in good repair and cleaning (including carpets annually);

1.8 Capital upgrades: The tenant is responsible for capital upgrade and capital expansion of all assets within the leased area and the maintenance of the Premises fit-out;

1.9 Responsibilities of City: maintenance of roofing, mechanical services (excluding air- conditioning system at the Premises) and main structure of the Premises (unless the damage is caused by the tenant), capital renewal and upgrade of existing assets at the City’s discretion and cleaning of the common areas within the Centre;

1.10 Redevelopment (excl. Premises):

1.10.1 the City may undertake alterations, redevelopment, repair or major works to the Centre (other than the Premises) at any time, subject to providing the tenant with 3 months’ notice.

1.10.2 No compensation will be payable to the tenant for any loss of business as a result of such works. If the tenant 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 tenant with a rent abatement in line with the reduction in customers.

1.11 Redevelopment (incl. Premises):

1.11.1 The City may undertake alterations, redevelopment, repair or major works (Redevelopment Works) to the Centre (including the Premises) at any time after the second anniversary of the commencement date of the lease.

1.11.2 If the Redevelopment Works require vacant possession of the Premises or access to and operation of the business from the Premises would be impractical, the City may terminate the lease subject to providing the tenant with a minimum of 6 months’ notice.

1.11.3 If the Lease is terminated within the first four years of the term, the City may, in its absolute discretion, assist the tenant with a contribution towards relocation costs to move the business to another premises or location.

1.12 Licence to use pool: a licence fee of $3,840 per annum ($320 per month) including GST is payable by the tenant. The licence fee will be reviewed annually at CPI on 1 July of each year of the Lease. A maximum of 130 clients may use the pools over the course of any calendar month, any clients using/accessing the pools (over and above the 130 maximum) will be charged to the tenant at a rate of $5.00 per additional client.

1.13 Use of gym: the tenant’s clients may use the Centre gym subject to the client being in the presence of a physiotherapist from the tenant’s business at all times, a charge of $10 per entry per client and the total client visits will be invoiced to the tenant at the end of each calendar month.

2. If no submissions are received for alternative leasing proposals 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.

3. NOTES that if any submissions for alternative leasing proposals are received as a result of the public notice 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 BP Physio.

4. NOTES that the COVID-19 Relief and Recovery Committee approved financial relief to the BP Physio at its 12 May 2020 Meeting (Item 7.3), and APPROVES an amendment to the financial assistance as detailed below, noting that BP Pysio will request no further financial assistance:

“1.2 Beatty Park Physiotherapy Pty Ltd (BP Physio) – estimated downturn of 60%:

1.2.1 waiver of BP Physio’s obligation to pay an estimated 30% of rent and variable outgoings becoming due and payable between 1 April 2020 and 30 September 2020 ~~30 June 2020~~;

1.2.1 ~~deferral of the BP Physio’s obligation to pay an estimated 30% of rent and variable outgoings becoming due and payable between 1 April 2020 and 30 June;”~~

Purpose of Report:

To consider providing local public notice of the proposed new lease to Beatty Park Physiotherapy Pty Ltd (ACN 614 728 095) (BP Physio) at Beatty Park Leisure Centre.

Background:

BP Physio has leased a portion of the Beatty Park Leisure Centre (Centre) since 26 July 2017 when it took an assignment of the prior physiotherapy tenant’s lease which commenced in 2014. The original premises area comprised approximately 296m², located in a portion of the old gymnasium at the Centre. BP Physio has since extended its premises to incorporate a new pilates studio and the new premises area is 365.20m² (Premises).

The original lease was for a term of 5 years, commencing on 1 June 2014, with a further term of 5 years commencing on 1 June 2019. As BP Physio did not exercise its option for the further term and the lease area has been altered since the commencement of the original lease, a new lease is required.

Administration engaged a commercial property valuer to complete a market rent appraisal of the Premises in February 2020 at Confidential Attachment 1. Due to the disruptions caused by the COVID-19 restrictions and BP Physio’s request for financial/lease assistance, the negotiations of the new lease were put on hold. As the COVID-19 restrictions are easing, Administration has re-commenced negotiations with BP Physio.

Details:

Tenant financial assistance

BP Physio applied for the City’s rent abatement and relief assistance and, on 12 May 2020, the COVID-19 Relief and Recovery Committee (Committee) approved the grant of a 30% rent and variable outgoings waiver and a 30% rent and variable outgoings deferral for BP Physio for the period 1 April to 30 June 2020. The approval was agreed to by the Committee based on the 60% calculated downturn of BP Physio’s business during the COVID-19 restrictions period.

BP Physio has subsequently requested that the deferral of rent and variable outgoings be cancelled, and instead they receive a 30% waiver of rent and variable outgoings for the period 1 July 2020 to 30 September 2020. Administration supports this amendment to the rent relief subject to BP Physio entering into this new lease, for the following reasons:

· it provides certainty for the City and BP Physio in respect to the financial assistance provided;

· the remainder of the rent and variable outgoings, which is 70%, is payable by the BP Physio for the April to June period. This results in an immediate cash flow benefit of $26,400 received by the City during this period (where this previously would have been deferred and subject to repayment after 1 October);

· the extension of the 30% waiver from 1 July to 30 September (where previously it was 1 April to 30 June) forms part of the lease negotiation, and assists the City in securing a long term tenant who has demonstrated sound management of the premises and a good working relationship with Beatty Park Administration; and

· it reduces the workload for both the City and the BP Physio if a further financial assessment is not required and assists with finalising the lease negotiations in a timely manner.

New lease terms

In May 2020, Administration proposed commercial lease terms to BP Physio based on the market rent valuation received for the Premises. Administration has confirmed with the valuer that the market has not yet been affected by the pandemic crisis and the valuation provided in February 2020 remains current. However, the valuer indicated that the market is currently favouring tenants and, as a result, the City may need to compromise in order to reach final agreement with BP Physio.

BP Physio has countered Administration’s initial proposal with alternative commercial lease terms. In line with the valuer’s advice and in the context of BP Physio’s prior financial assistance application, Administration has responded with a suggested compromise between the initial proposal and BP Physio’s proposed terms. The below table sets out the current commercial lease terms, Administration’s initial commercial terms, BP Physio’s proposed terms and Administration’s updated terms (in blue). BP Physio has agreed to Administration’s updated lease terms.

Lease terms	Original Lease terms (2014 – 2020)	Administration’s initial commercial terms (May 2020)	BP Physio’s proposed terms	Administration’s updated lease terms
Rent	$94,197.00 pa incl. GST ($318.23 p/m² for 296m²)	$91,300 pa incl. GST ($250p/m² for 365.20m²)	$73,040.00 pa incl. GST ($200p/m² for 365.20m²)	$82,170.00 pa incl. GST ($225/m² for 365.20m²)
Outgoings	$23,144.28 pa incl. GST ($78.19p/m² for 296m²)	$25,564 pa incl. GST ($70p/m² for 365.20m²)	$18,260.00 pa incl. GST ($50p/m² for 365.20m²)	$21,912.00 pa incl. GST ($60p/m² for 365.20m²)
Licence fee	N/A	N/A	$3,600 pa ($300 p/mth)	$3,840 pa ($320 p/mth)
Casual pool entry charge	N/A	N/A	$5 per client over 130 max. clients per month	$5 per client over 130 max. clients per month

Administration proposes a five year lease term with a further five year option term, subject to a redevelopment clause. This allows the lease to be terminated at any time after the second year of the initial lease term, in order for the City to redevelop the Centre or Premises, which may be an outcome of the Beatty Park Options Project 2062. The option term is also at the City’s discretion.

The current lease provides that BP Physio must pay a flat outgoings amount as the contribution to all charges for water consumption, gas, electricity, utilities or facilities directly relating to the Premises or the use or occupation of the Premises by BP Physio. There is no sub meter for BP Physio’s Premises, and apportioning utilities based on the number of fixtures and fittings or the proportion of the building BP Physio 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. As a result, a flat outgoings amount of $60 per m² of the Premises or $21,912.00 per annum including GST is proposed for the new lease.

Both the proposed rent and flat outgoings contribution will be subject to CPI review annually on 1 July of each year of the lease term.

BP Physio provides its clients with a discounted rate to access the pool(s) at the Centre for therapy purposes. Previously, Centre management has been required to invoice BP Physio in arrears for casual entry/use of the pools. In order to reduce administrative burden on Centre management and to provide BP Physio with a discounted rate of entry for up to 130 clients per month, a licence fee of $4,080.00 per annum ($340 per month) is proposed as part of the new lease terms. Any additional clients (over the 130 monthly maximum) will be charged at a rate of $5.00 each.

The key commercial lease terms are set out in Recommendation 1.

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 of at least two weeks, commencing in early August and closing in late August/early September. 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(3) 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: It is low risk for Council to provide public notice of the proposed new lease with BP Physio.

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 for the Premises is $94,197.00 per annum including GST with outgoings contribution of $23,144.28 per annum including GST. Due to changing market conditions and the long-term effect of COVID-19 shutdowns on local businesses and services, the rent for the new lease is proposed at $82,170.00 including GST per annum and the proposed outgoings contribution is $21,912.00 including GST per annum. The rent and outgoings contribution are proposed to be increased by CPI annually during each year of the lease.

Ordinary Council Meeting Agenda 28 July 2020

12.5 New Lease of Robertson Park Tennis Centre to Tennis Association of Western Australia

Attachments: Nil

Recommendation:

That Council:

1. APPROVES a short term lease to the Tennis Association of Western Australia (Tennis West) in respect to the tennis centre located at Robertson Park, 176 Fitzgerald Street, Perth (Tennis Centre), on the following key terms:

1.1 Term: 13 months commencing 1 August 2020 and expiring on 30 September 2021.

1.2 Rent: $772.00 per month excluding GST.

1.3 Rent review: 1 October annually at CPI.

1.4 Rates and taxes: Tennis West to pay all rates and taxes including rubbish and recycling bin charges and emergency services levy for the Tennis Centre.

1.5 Repairs/maintenance: Tennis West to keep the Tennis Centre clean and in good repair having regard to the current condition of the Tennis Centre. This includes repairing any damage due to fair wear and tear and to keep the Tennis Centre safe and secure. For the avoidance of doubt, Tennis West is not required to rectify damage to the courts that occurred prior to the commencement date.

1.6 Structural repairs: At the discretion of the City, this includes any structural repairs to the heritage huts. The City does not intend to undertake this work prior to 1 July 2021.

1.7 Capital works: At the discretion of the City, this includes replacement and/or resurfacing of the tennis courts, bore and lighting. The City does not intend to undertake this work prior to 1 July 2021.

1.8 Emergency works: At the discretion of the City, this includes any major/structural emergency works, such as the failure of the bore. Council approval of the work will be required, and will depend on the cost and implications for the use of the Tennis Centre.

1.9 Minimum services: Tennis West to reimburse the City for cost of annual statutory compliance (RCD, smoke alarm, emergency exit and fire hydrant testing) and pest inspections and treatment.

1.10 Insurance: Tennis West to effect a public liability policy, with cover not less than $20 million, and to reimburse the City’s annual building insurance premium for the Tennis Centre.

1.11 Indemnification: Tennis West to indemnify the City against all costs and claims arising in respect to the Tennis Centre.

1.12 Permitted purpose: Sporting and recreation facility, with associated commercial sporting and recreation purpose. Permitted hours of use are 6am to 10.30pm daily.

1.13 Shared use: Tennis West will make the hardcourts available for use by the City, free of charge, when not required for coaching or pennants, for community sport.

1.14 Sub-lease/licence: The Lessor acknowledges that the Lessee has/will enter/ed into an agreement with Tennis Central Australia Pty Ltd ACN 626 307 042 (Tennis Central) in respect to tennis coaching and associated or ancillary services at the Tennis Centre. As part of the provision of ancillary services at the Tennis Centre by Tennis Central, Tennis Central may enter into agreements with commercial operators. These agreements will be subject to the City’s consent, which will not be withheld provided the purpose is ancillary to the use of the premises as a tennis centre.

1.15 Development plan: The parties acknowledge the City intends to redevelop the Tennis Centre within the next 24 – 36 months. The development plan will inform which and how many tennis courts are retained at the premises and/or repurposed for alternative sports/recreational use. It is anticipated that the redevelopment works will not commence prior to 1 July 2021.

2. Subject to final 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.

Purpose of Report:

To consider entering into a short-term lease with the Tennis Association of Western Australia (Tennis West) in regard to the Robertson Park Tennis Centre.

Background:

The Robertson Park Tennis Centre is located at 176 Fitzgerald Street, Perth (Tennis Centre) on land owned

in freehold by the City. The Tennis Centre comprises 38 tennis courts and a large social space/function room with a bar, commercial kitchen, office space and undercover area. The Tennis Centre was previously leased by Tennis Seniors Association of Western Australia (Tennis Seniors) and Tennis Central Australia Pty Ltd (ACN 626 307 042) (Tennis Central) operated coaching, court hire and pennants competitions from the Tennis Centre pursuant to an agreement with Tennis Seniors.

Tennis Seniors terminated their lease on 31 October 2019 and, in order to allow tennis to continue at the Tennis Centre, Tennis West entered into an Interim Management Agreement with the City, which commenced on 12 November 2019 (approved by Council at the 12 November 2019 Ordinary Meeting of Council). Tennis Central entered into an agreement with Tennis West and has continued to operate the coaching, court hire and pennants competitions from the Tennis Centre.

Tennis West currently occupies the Tennis Centre as a monthly tenant pursuant to the holding over provision of the interim management arrangement. Tennis West has advised that it will continue to occupy the Tennis Centre in the short term to maintain the status quo until the long term use is determined.

Details:

The future use of the Tennis Centre needs to align with the preparation and implementation of a Development Plan for Robertson Park. The purpose of the Development Plan is to consider the future use options for the Tennis Centre and surrounding park. This includes consideration of the future operation of the Tennis Centre – for example by a provide operator, and whether other sports can be co-located at the site. The preparation of the Development Plan is scheduled for completion by the end of 2020, and would not be implemented until after 1 July 2021. It is predicted that no works will be undertaken to the Tennis Centre until after September 2021.

In order to allow for the continued use of the Tennis Centre for coaching, court hire, pennants, tournaments and other ancillary purposes while the Development Plan is prepared, Administration proposes a short-term lease to Tennis West. Tennis West (in liaison with Tennis Central) has managed the Tennis Centre well since taking possession in November 2019.

It is not proposed that Tennis West would be involved with the Tennis Centre in the long term.

Under the proposed lease terms, any structural repairs or upgrades, including upgrades to the tennis courts, lighting, reticulation or bore, would be at the discretion of the City. If upgrade work was required during the term of the lease Tennis West could undertake this at its cost, subject to the approval of the City.

Pursuant to the agreement between the parties, Tennis West intends that Tennis Central will remain operating the tennis coaching, court hire and ancillary services at the Tennis Centre during the lease term. As part of the provision of ancillary services at the Tennis Centre, Tennis Central may enter into agreements with commercial operators – for example a remedial massage therapist and/or small café operator. Administration considers that these types of commercial operators will assist to increase the use of the Park and Tennis Centre by members of the community. As a result, it is proposed that Tennis West and/or Tennis Central must obtain the City’s consent prior to entering into these agreements, which consent will not be withheld provided the commercial operation in question is ancillary to the use of the premises as a tennis centre

Tennis West has confirmed that the proposed lease terms (set out in Recommendation 1. above) are acceptable.

Consultation/Advertising:

As Tennis West is a not for profit state sporting body providing public notice of the proposed lease is not a statutory requirement.

Tennis West has confirmed that the proposed terms of the lease are acceptable and notes that it is not interested in entering into a longer-term arrangement at this stage.

Legal/Policy:

The Local Government Act 1995 (Act) section 3.58, 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 a 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 s 3.58 of the Act, including dispositions to:

“(2)(c)(ii) A department, agency, or instrumentality of the Crown in the right of the State or the Commonwealth.”

Tennis West is a state government agency, therefore, Reg. 30 applies and the City is exempt from complying with section 3.58.

Risk Management Implications:

Low: There is low risk in Council granting a new interim lease to Tennis West, as it is the state governing body for tennis and has the resources to manage the Tennis Centre on a short-term basis.

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.

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 monthly rent of $772 per month is based on 10% of the gross rental valuation for the Tennis Centre, as calculated by Landgate. This is consistent with the City’s proposed approach for new leases, which will be formalised in the City’s draft Property Management Framework.

All outgoings associated with the Tennis Centre, including the utilities, building insurance premium, bin

changes and emergency services levy, will be payable by Tennis West for the period of this lease.

Ordinary Council Meeting Agenda 28 July 2020

12.6 Enabling Model for Service Delivery and Best Practice Regulation

Attachments: 1. Enabling Approach and Ideas Program ⇩

Recommendation:

That Council NOTES this report on transitioning to an enabling model for service delivery and best practice regulation, red tape reduction and streamlining local government approval processes.

Purpose of Report:

To provide a report to Council on transitioning to an enabling model for service delivery and best practice regulation.

Background:

CEO KPI 2.1.2 for the 2019/2020 financial year was to provide a report to Council on transitioning to an enabling model for service delivery and best practice regulation, red tape reduction and streamlining local government approval processes. This report addresses this KPI.

An enabling model of service delivery contains the following attributes:

· A system which focuses on self-improvement where effectiveness is promoted;

· Internal processes which achieve positive outcomes that harmonise complex, interdependent interactions;

· Enhancement of our customer focus to incorporate community empowerment;

· Achieving best practice and benchmarking through cooperative relationships, collaboration and shared knowledge; and

· Alignment of our community shared values.

Better regulation involves focusing on being a risk-based regulator, which encompasses:

· Utilising technical expertise to make decisions, in addition to legal considerations;

· Cultivating an environment which supports identification and management of risks;

· A broad range of tools, both regulatory and non-regulatory, to achieve positive outcomes and solve problems;

· Innovating and exploring different ways of managing risks; and

· Engaging in partnerships to mitigate risks.

These two principles contain common themes which are espoused within the City’s strategic management framework and the Vincent Ideas Program. This is a program designed to support innovation and improvement by affirming an organisational culture and designing systems that are clever, creative and courageous. The interrelated elements of the program are:

Projects & Programs: Our actions to achieve Council’s vision in the Strategic Community Plan and implement the Corporate Business Plan

Involving Everyone: Listening and understanding the needs of our community and customers

Innovation: Putting ideas into action

Improvement: Business planning, maturing modelling and benchmarking to improve our services and customer experience

IT: Creating a Smart City through technology, efficiency, automation and mobility

Services & Systems: Process and system improvements to deliver better outcomes for our community and customers.

Attachment 1 provides a visual diagram of this program which reinforces a whole of organisation move towards an enabling approach for service delivery and better regulation.

Details:

The City’s Administration has been continuing to embed the enabling approach into service delivery. The thinking surrounding the concepts of enablement and better regulation is supported within the organisation.

Teams have been working together internally and engaging with external stakeholders to achieve better streamlined outcomes for our customers. A key example of this is process mapping which has involved service units mapping their functions and identifying process improvements to minimise time and costs.

The enabling approach has also been enshrined within the City’s strategic management framework. This includes identifying shared values which are part of business and service plans. These documents provide a link between on-the-ground service delivery and the Strategic Community Plan vision and priorities.

The emergence of COVID-19 catalysed a further shift in the City’s approach, requiring even stronger alignment of service objectives with an enabling approach. This assisted the City to strategically manage this substantial change and achieve timely and beneficial community outcomes. People within and external to the organisation collaborated to make significant adjustments to services, projects and programs; and this has been reflected through the COVID-19 Relief and Recovery Strategy.

Some examples to demonstrate the transition towards the enabling model for service delivery include:

Office of the Chief Executive Officer

· Process mapping to streamline approvals and other functions;

· Information technology and communication functionality to work remotely;

· Flexible working arrangements and workforce optimisation strategies;

· Prioritisation of services during COVID-19;

· Council eMeetings via zoom webinar; and

· Development on City owned and managed land policy - purpose is to streamline development on City land and reduce approvals and fees required.

Community and Business Services

· Library online/remote service delivery including e-books, mystery bags and books on wheels;

· Beatty Park Healthy at Home program;

· Movement towards community hub model with a focus on customer service optimisation;

· Implementation of customer request management system;

· Vincent Community Support Network;

· Financial assistance including waiving of rates interest and booking refunds;

· Budget planning with an aim to preserve services and workforce;

· Leederville Gardens Trust fund for vulnerable people and Arts Relief Fund for local artists;

· Smooth transfer to direct management of the Community Centre; and

· COVID safety systems and culture at Beatty Park and other facilities.

Infrastructure and Environment

· Realignment of Ranger Services to focus on community safety during COVID-19;

· A system for alfresco permits which had already met the WA Premier’s request for flexibility from local governments to support business;

· Service efficiency through optimisation of waste collection routes;

· E-permits implementation;

· Completed roll out and set up of the Central Control Irrigation system, resulting in improved use of staff resources and reduced groundwater usage; and

· Fleet replacement with hybrids, including the first hybrid truck.

Strategy and Development

· COVID-19 Relief and Recovery Strategy;

· Community empowerment enshrined in business plans which encourages effective neighbour and business communications about planning, building and health issues;

· Online submission of development applications;

· Substantial progress towards harmonisation of processes across planning, building, health and compliance frameworks;

· Engagement across technical areas when supporting businesses with new development proposals, using a place based approach, and improvements to internal referrals;

· Change of use information sheets for small bars, restaurants and consulting rooms;

· Planning exemptions to support Beaufort Street and during COVID-19; and

· On-the-ground business support and public health advisory service during COVID-19.

The City is continuing to deliver on this important piece of work. In the coming financial year the priorities will be to:

1. Support economic and public health rebound through service, project and program delivery;

2. Focus on harmonising processes to create a more streamlined customer experience which connects approvals across service units (e.g. planning, building and health);

3. Continue to support an enabling workplace and stakeholder engagement culture;

4. Actively identify areas for improvement, make changes and advocate for changes in regulatory systems; and

5. Implement benchmarking outcomes.

Consultation/Advertising:

Nil.

Legal/Policy:

It is intended the enabling model of service delivery and best practice regulation should be applied to the application of legislation, strategy and policy by the City.

Risk Management Implications:

Low: It is a low risk for Council to consider and note this work.

Strategic Implications:

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

Innovative and Accountable

Our community is aware of what we are doing and how we are meeting our goals.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

Nil.

Ordinary Council Meeting Agenda 28 July 2020

12.7 Advertising of new Local Government Property Local Law 2020 and new Election Signs Policy

Attachments: 1. Draft City of Vincent Local Government Property Local Law 2020 ⇩

2. Table of amendments ⇩

3. Draft Election Signs Policy ⇩

Recommendation:

That Council:

1. AUTHORISES the Chief Executive Officer to provide statewide and local public notice in accordance with section 3.12 of the Local Government Act 1995, for a period of at least 6 weeks, that:

1.1 it is proposed to repeal the City of Vincent Local Government Property Local Law 2008 and replace it with the City of Vincent Local Government Property Local Law 2020 at Attachment 1;

1.2 the purpose of repealing the City of Vincent Local Government Property Local Law 2008 and replacing it with the City of Vincent Local Government Property Local Law 2020 is to:

1.2.1 increase the efficiency in the management of signs located on local government property;

1.2.2 provide the City with a discretion to require a permit for the erection or display of an election sign on local government property;

1.2.3 remove provisions regarding animals;

1.2.4 assist with the management and regulation of security deposits and bank guarantees provided by developers constructing on private land;

1.2.5 increase the deterrent for causing damage to local government property or using local government property for a commercial activity without a permit;

1.2.6 increase the efficiency in the management (beautification) of verges;

1.2.7 deter damage or removal of trees on verges, thoroughfares or local government property;

1.2.8 prohibit and effectively deter the use of recording devices within change rooms;

1.2.9 amend the local laws in accordance with prior advice received from the Department of Local Government, Sport and Cultural Industries; and

1.2.10 make administrative modifications so that the local law aligns with common practice and the City’s current objectives and processes;

1.3 the effect of the repeal and replacement of the City of Vincent Local Government Property Local Law 2008 with the City of Vincent Local Government Property Local Law 2020 is that:

1.3.1 conditions relating to when a sign permit will be required are now provided;

1.3.2 election signs placed on local government property will now be governed by the proposed City of Vincent Election Signs Policy;

1.3.3 provisions relating to animals will be incorporated into the proposed City of Vincent Animals Local Law 2020;

1.3.4 when and how the City may use security deposits or bank guarantees to rectify damage to local government property is regulated;

1.3.5 increased penalties will apply for causing damage to local government property or using local government property for a commercial activity without a permit;

1.3.6 the conditions relating to management (beautification) of verges, prescribed in the City’s relevant policy, are incorporated in the local law;

1.3.7 increased penalties will apply for damage or removal of trees on verges, thoroughfares or local government property;

1.3.8 the use of recording devices within change rooms is prohibited and an appropriate penalty is applicable; and

1.3.9 amendments are incorporated in the local law in line with the Department of Local Government, Sport and Cultural Industries recommendations;

1.3.10 administrative modifications are made to ensure the local law aligns with common practice and the City’s current objectives and processes;

1.4 copies of the proposed local law are available for inspection at the City’s Administration and Civic Centre, Library and Local History Centre and on the City’s website; and

1.5 submissions on the proposed local law are invited for a period of not less than six weeks after public notice is given;

2. NOTES that in accordance with Section 3.12(3)(b) of the Local Government Act 1995 a copy of the proposed local laws and public notice will be provided to the Minister for Local Government;

3. NOTES that any submissions received as a result of the public notice provided as set out in 1. above will be presented to Council for consideration;

4. APPROVES the draft Election Signs Policy, at Attachment 3;

5. AUTHORISES the Chief Executive Officer to provide local public notice of the new policy in Recommendation 4. above, and invite public comments for a period of at last 21 days; and

6. NOTES that at the conclusion of the public notice period any submissions received in relation to Recommendation 5. above will be presented to Council for consideration.

Purpose of Report:

To consider giving public notice of the City of Vincent Local Government Property Local Law 2020 (2020 Local Law) and draft Elections Signs Policy.

Background:

At the 2 April 2019 Council meeting, Council resolved to provide public notice of the proposed City of Vincent Local Government Property Amendment Local Law 2019. In accordance with Section 3.12(3)(b) of the Local Government Act 1995 (Act), a copy of the proposed City of Vincent Local Government Property Amendment Local Law 2019 was provided to the Department of Local Government, Sports and Culture (DLGSC) for review and comment.

DLGSC advised that:

· the City of Vincent Local Government Property Local Law 2008 (2008 Local Law) should be repealed and replaced with a single, consolidated local law;

· the new local law should be formatted to reflect current drafting style practices (for example, the format used by Parliament); and

· in accordance with the advice of Parliament’s Delegated Legislation Committee, local laws should not directly state that a person is required to comply with a local government policy. As a result, the City should either replace references to policy with a reference to local government approval or the relevant provisions of the policy should be set out in the clause or added as a Schedule to the local law.

As a result of DLGSC’s comments, Administration has drafted a new Local Government Property Local Law:

· taking into account the DLGSC’s advice and recommendations;

· incorporating the changes previously proposed in the amendment local law; and

· undertaking a complete, critical review of the 2008 Local Law to ensure it reflects the City’s current practices, policies and plans.

At the 12 November 2019 Ordinary Meeting of Council Councillor Fotakis’ Notice of Motion for the CEO to review the City’s Local Government Property Local Law was approved. This Notice of Motion specifically related to the review of the provisions relating to election signs.

Administration has drafted an Election Signs Policy, at Attachment 3, to clarify the display of election signs on local government property.

Details:

2020 Local Law

The draft 2020 Local Law proposes comprehensive amendments to Parts 1, 6, 8 and 9. A copy of the draft 2020 Local Laws is at Attachment 1. A table setting out the main amendments to these Parts and the reasons for the amendments, is at Attachment 2.

Election Signs Policy

Administration’s proposed Policy does not prohibit or restrict the display of political signs on private land as that would likely breach the constitutional right of freedom of political communication. Further, the proposed Policy does not include onerous restrictions on the display of political signs on local government property, as if those restrictions do not serve a legitimate end they may be considered unconstitutional.

The 2020 Local Law has been amended to provide that the City has the discretion to require a permit in order for a candidate to display an election sign. The Policy then specifies that if the candidate’s election sign meets the requirements set out in the Policy, a permit under the 2020 Local Law is not required.

The Policy imports the requirements previously set out in the 2008 Local Law but also includes further regulations regarding the placement of election signs on City properties as follows:

(a) to ensure the amenity and safe use of City parks and reserves election signs are not permitted to be displayed on or within any City parks and/or reserves; and

(a)

(b) to reduce the risk that a sign on City facilities or a City property is interpreted as having the endorsement of the City, election signs are not permitted on or adjacent to municipal buildings, including Beatty Park Leisure Centre, Loftus Recreation Centre, Library, Civic Centre and Administration Building.

Paragraph (b) above does not apply to any City property or facility that is used as a polling place on an election day.

The enforcement provisions of the Policy allow for the removal and impounding of any signs that:

(a) pose a health or safety risk;

(b) are displayed in a City park, reserve or on or adjacent to City municipal buildings;

(d) the City has received a legitimate complaint about and are non-compliant with the Policy.

Consultation/Advertising:

In accordance with section 3.12 of the Local Government Act 1995 public notice of the repeal and replacement of the 2008 Local Law will be provided in the following ways:

· notice in the West Australian newspaper;

· notice in local newspapers; and

· notice on the City’s website and in social media and e-newsletter,

which notice will state that:

· the City proposes to repeal the 2008 Local Law and replace it with the 2020 Local Law (the purpose and effect of which is set out in recommendations 1.2 and 1.3 above);

· a copy of the 2020 Local Law may be obtained or inspected at the City’s Administration and Civic Centre, Library and Local History Centre; and

· submissions about the 2020 Local Law may be made to the City by a date specified in the notice (being no less than 6 weeks after the notice is given),

and a copy of the notice and 2020 Local Law will be provided to the Minister for Local Government.

In accordance with the City’s Policy 4.1.1 – ‘Adoption and Review of Policies’, public notice of the proposed new policy will be provided for a period exceeding 21 days in the following ways:

· notice on the City’s website, social media and e-newsletter;

· notice in the local newspapers; and

· notice on the notice board at the City’s Administration and Civic Centre, Library and Local History Centre.

Legal/Policy:

Section 3.12 of the Local Government Act 1995 sets out the requirements for making a local law.

City’s Policy 4.1.1 – ‘Adoption and Review of Policies’ sets out the process for repealing and adopting policies.

Risk Management Implications:

Low: It is low risk for Council to provide local public notice of the new local law and policy.

Strategic Implications:

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

Innovative and Accountable

We are open and accountable to an engaged community.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

Nil.

Ordinary Council Meeting Agenda 28 July 2020

12.8 Proposed Transfer of Anzac Cottage to the National Trust of Western Australia

Attachments: 1. Transfer proposal from the National Trust dated 7 July 2020 ⇩

2. Details of the National Trust ⇩

Recommendation:

That Council:

1. RECEIVES the proposal from the National Trust of Western Australia (National Trust) for the City of Vincent to transfer ANZAC Cottage, located at 38 Kalgoorlie Street, Mount Hawthorn (ANZAC Cottage), to the National Trust, as at Attachment 1;

2. REQUESTS the Chief Executive Officer to provide local public notice of the proposed transfer of ANZAC Cottage to the National Trust for a period of 21 days;

3. NOTES the Chief Executive Officer will report back to Council on the outcome of the public consultation period in Recommendation 2. above; and

4. NOTES the proposed mutual surrender of the lease of ANZAC Cottage, between the City and the Vietnam Veterans Association Australia WA Branch, would occur concurrently with the proposed transfer of ANZAC Cottage to the National Trust.

Purpose of Report:

To consider providing public notice of the proposed transfer of ANZAC Cottage to the National Trust of Western Australia (National Trust)

Background:

Heritage Significance of ANZAC Cottage

ANZAC Cottage, located at 38 Kalgoorlie Street, Mt Hawthorn (ANZAC Cottage) is owned by the City of Vincent. ANZAC Cottage has a number of heritage listings:

· Register of Heritage Places (State Government listing);

· National Trust Classification (Non-Government listing);

· Town Planning Scheme (Local Government listing);

· Municipal Inventory (Local Government listing); and

· Register of the National Estate (National Government listing).

ANZAC Cottage has cultural heritage significance for the following reasons:

· the place was the first war memorial built in Australia to commemorate the participation of Australian troops in World War I;

· the place is representative of the effect that Australia's role in World War I, and the role of the Anzacs in particular, had on the Western Australian community in the immediate aftermath of the Gallipoli campaign;

· the place is a rare example of an architect designed workers' cottage. While the internal arrangement is a conventional configuration, the combination of materials and detailing is unusual for workers' cottage from the era;

· the place is a good example of a modest residential building constructed in suburban Perth in the 1910s, which is made exceptional by virtue of the circumstances of its construction by the Mount Hawthorn community as a war memorial and as a result has come to represent the values that are associated with the Anzac tradition in Australia; and

· the technical innovation and achievement of constructing a brick and tile cottage with the trades and skills of over 200 people from the Mount Hawthorn community in a single day in 1916 is a significant accomplishment.

Ownership and Leasing of ANZAC Cottage

Prior to 2006, the Cottage was owned by the Vietnam Veterans Association Australia WA Branch (VVAAWA).

On 19 April 2005, the City (then Town of Vincent) received a letter from Kott Gunning Lawyers acting on behalf of the VVAAWA. The letter outlined the proposal relating to the future of the cottage.

Subsequently, at the Ordinary Meeting of Council on, Council endorsed the following:

“That the Council;

(i) NOTES the outcome of the lease negotiations between the Town and the Vietnam Veterans Association relating to Anzac Cottage as detailed in this report;

(ii) APROVES the transfer of ownership of Anzac Cottage 38 (Lot 15) Kalgoorlie Street, Mt Hawthorn from the Vietnam Veterans Association to the Town subject to a pre-purchase

(iii) APPROVES of a lease between the Town and the Vietnam Veterans Association for the subject property for a period of twenty-one (21) years with three, five year options; and

(iv) AUTHORISES the Mayor and the Chief Executive Officer to sign the lease and affix the Council Common Seal.”

In 2005 the VVAAWA approached the City in respect to the transfer of ANZAC Cottage, subject to the City entering into a long term lease with the VVAAWA. At the 17 January 2006 Council Meeting the transfer and lease were approved by Council. The lease has an initial term of 21 years (expiring 30 September 2026) and three further option terms of five years each, the final term expiring on 30 September 2041.

The VVAAWA registered a caveat over the Certificate of Title to the property to secure the terms of the lease. This prevents the property being sold, transferred or otherwise dealt with without the VVAAWA’s consent, as the VVAAWA would be required to withdraw the caveat in order for any dealing on the property to be completed.

VVAWA retains exclusive occupation and possession rights in respect of ANZAC Cottage.

ANZAC Cottage is in a very good condition.

Friends of ANZAC Cottage Inc

The Friends of ANZAC Cottage Inc. (Friends) were formed in 2006 to assist with the accessibility and interpretation of ANZAC Cottage, and in particular, to promote and facilitate public access to and awareness of ANZAC Cottage.

The volunteers of Friends are dedicated to preserving and sharing the remarkable story of ANZAC Cottage. Friends are continuing with education and engagement activities relating to ANZAC Cottage in an online capacity.

Details:

The National Trust approached the City in June 2020 in respect to the acquisition of ANZAC Cottage. The National Trust’s proposal is at Attachment 1.

The National Trust is a statutory body (pursuant to the National Trust of Australia (WA) Act 1964) and a registered charity. It was established in 1959 to promote heritage conservation in Western Australia and it currently manages 63 sites in the southern half of Western Australia.

National Trust is dedicated to the conservation and interpretation of the heritage places it manages and maintains and also seeks to raise knowledge, awareness and commitment to Western Australia natural and cultural heritage.

Sites currently managed by the National Trust that are similar in nature to ANZAC Cottage include:

· Peninsula Farm, Maylands;

· Woodbridge, Guildford;

· Strawberry Hill, Albany; and

· Wonnerup House, Busselton.

More information on the National Trust can be found here. Further details of the National Trust’s purpose is at Attachment 2 and a copy of the National Trust’s current Annual Report can be found here.

The National Trust has a significant portfolio of heritage and conservation sites across the State. Sites are managed and maintained in accordance with an asset management plan and the National Trust retains a database of all maintenance/management items of sites on its portfolio. The National Trust has the resources and funds to ensure that ANZAC Cottage is maintained in a manner that ensures its heritage value is retained for future generations.

The National Trust proposes that ANZAC Cottage would be a significant addition to its collection of places which tell the story of the ANZAC spirit. In proposing to purchase ANZAC Cottage, the National Trust undertakes that ANZAC Cottage would remain open to the Mt Hawthorn and broader community as a memorial to those who fought in World War I and that it would encourage a high level of community participation in the heritage values of the place.

In particular, the National Trust is committed to entering into a user agreement with each of VVAAWA and Friends to ensure continued access and enjoyment of ANZAC Cottage by VVAAWA and Friends. The National Trust also encourages the continued education and community outreach programs that are managed by Friends in respect of ANZAC Cottage.

Surrender of Lease

VVAAWA and Friends have agreed in principle to the transfer of ANZAC Cottage to the National Trust.

A mutual surrender of VVAAWA’s lease would be required to occur before or concurrently with the proposed transfer of ANZAC Cottage to the National Trust. In addition, VVAAWA would need to withdraw its caveat over the title of the property in order to allow the transfer to the National Trust to proceed.

Administration supports the proposed transfer to the National Trust as the National Trust has the resources to properly maintain and manage ANZAC Cottage to ensure its heritage value is retained while also providing for continued access to ANZAC Cottage by VVAAWA, Friends and members of the public.

Consultation/Advertising:

Pursuant to Regulation 30 of the Local Government (Functions and General) Regulations 1996 there is no statutory requirement for public notice of the proposed transfer to the National Trust. However, Administration recommends 21 days public notice be provided in local papers, on the City’s website and the City’s social media sites.

Legal/Policy:

· Lease of ANZAC Cottage, 38 Kalgoorlie Street, Mount Hawthorn, between the Vietnam Veterans Association of Australia WA Branch Incorporated and the Town of Vincent, dated 24 January 2006.

· City of Vincent Policy No. 4.1.5 – Community Consultation.

· Section 3.58 of the Local Government Act 1995 (Disposing of property) does not apply to the proposed transfer of ANZAC Cottage as the National Trust is a registered charity and Regulation 30(2)(b) of the Local Government (Functions and General) Regulations 1996 applies.

Risk Management Implications:

Low risk: It is low risk for the City to provide public notice of the proposed transfer of ANZAC Cottage to the National Trust.

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.

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.

Financial/Budget Implications:

The transfer of ANZAC Cottage to the National Trust would reduce the City’s financial liability, as the City would no longer be responsible to repair or upgrade ANZAC Cottage. The National Trust does propose the City assist with any unforeseen maintenance issues that arise over the next 3-5 years. We would need to clarify exact responsibilities and liabilities with the Trust prior to progressing the proposal.

Ordinary Council Meeting Agenda 28 July 2020

12.9 Advertising of amended Development on City Owned and Managed Land Policy

Attachments: 1. Updated Draft Policy - Development on City Owned and Managed Land Policy ⇩

2. Table of Submissions and Administration's Comments ⇩

Recommendation:

That Council:

1. APPROVES the amended draft policy ‘Development on City Owned and Managed Land Policy’, as at Attachment 1;

2. AUTHORISES the Chief Executive Officer to provide local public notice of the amended new policy in Recommendation 1. above and invite public comments for a period of at least 21 days; and

3. NOTES that at the conclusion of the public notice period any submissions received would be presented to Council for consideration.

Purpose of Report:

To consider providing public notice of the amended new policy ‘Development on City Owned and Managed Land Policy’ (Policy), as at Attachment 1.

Background:

The City currently has no documented approach to deal with proposals for development on City land, which includes road reserves and parks / public open spaces.

Administration presented a draft policy to govern these types of developments, which include temporary community signage, street furniture and permanent structures, to Council at the Ordinary Meeting of Council 17 March 2020 (Item 12.4). Council resolved to advertise the proposed new Development on City Owned and Managed Land Policy. The advertising period commenced on 28 April 2020 and concluded on 29 May 2020. Public notice of the policy was provided in the following ways:

· Eastern Reporter 23 April 2020 edition

· Perth Voice 25 April 2020 edition

· City’s Administration and Library Notice Boards

· City’s website, socials and online newsletter on 23 April 2020

· Emails to local organisations, businesses and interested individuals (38 groups contacted)

Responses included six community submissions as well as a response from Main Roads WA and Department of Planning, Lands and Heritage (DPLH). A summary of the comments and Administration’s response to each comment are at Attachment 2.

Details:

In response to the submissions, Administration has made significant amendments to the draft Policy, in order to make it easier for the public to understand the requirements and streamline the approval proposes for the three key types of developments on City land. The key substantive changes to the Policy are shown in red in the updated Policy at Attachment 1.

The policy proposes that Street Furniture does not require a Development Application, in order to streamline the assessment process and encourage these types of development – as they align with the City’s Strategic Community Plan thriving places and sensitive design priorities.

In accordance with the City’s Policy 7.5.1 – Minor Nature Development, a Development Application is currently required for fixed umbrellas. This is noted in the draft policy. The exemption of fixed umbrellas from requiring a Development Application will be considered as part of the review of the City’s Policy 7.5.1 – Minor Nature Development, which is scheduled for this financial year.

Administration has further considered the proposed fee of $30m²for structures and shelters. The alternative fee options are a higher per square meter fee or a fixed fee of between $1,000 and $1,500 per annum. It is proposed that a fee of $30m²is retained for the reasons set out below.

Permanent structures and shelters are intended to allow businesses to increase their business space (for example, food service area) while at the same time activating the street or public space and providing amenity for the public when the business is not operating. Increasing the business space means that permanent structures and shelters provide a financial benefit to that business. This financial benefit is likely to be greater than the benefit provided by a temporary alfresco area (which are governed by the City’s outdoing eating permits, which are free) as the structure or shelter is permanent and therefore can be created in a way to create amenity for patrons of the business (for example, provide shelter from the elements and include planter boxes and lighting). On this basis it is recommended that businesses pay a fee for the use of City land.

On the other hand, these structures and shelters must be provided for a public benefit (activate the street / public space) so charging a commercial fee would not align with the City’s Strategic Community Plan priorities, particularly thriving places and sensitive design.

Based on the permanent structures and shelters currently erected and proposed in Vincent, it is considered that $30 per square meter reasonably balances the financial benefit to the business owner with the public benefit provided by these structures. The area of these structures currently erected or proposed in Vincent, and the fees that would be payable in line with this draft policy (noting that the policy is not proposed to apply retrospectively) fees are set out below.

Business	Address	Area(m²)	$30/m²
Oxford Hotel	368 Oxford Street, Leederville	24	$720
Birraz	404 Oxford Street, Mount Hawthorn	36	$1,080
Spritz	148-158 Scarborough Beach Road, Mount Hawthorn	42	$1,260
Zesto	59 Parry Street, Perth	59	$1,770
Brika	3/177 Stirling Street, Perth	85	$2,550

It is noted that a fee per square meter does not take into account the fact that the financial benefit to the business is not directly proportionate to the area of the structure. This is because other factors impact the financial benefit derived from the use of the City’s land, such as the location (town centre in comparison to a less frequented area of the City) and layout of the area (width of the road reserve, location of public infrastructure).

On balance, it is Administration’s view that a fee of $30/m²is most aligned with the objectives of this policy.

It is noted that structures or shelters that privatise a space (to the exclusion of the public) are not within the scope of this policy. If Council (and the Minister for Lands, if consent required) chose to support this type of development, the licence fee would be at Council’s (and the Minster for Land’s) discretion, and would be based on the commercial value of the space. This updated policy sets this out in the scope section.

The substantive amendments to the policy are summarised in the below table:

Section	Amendment	Rationale
Policy objective	Added reference to the City’s SCP priorities thriving places and sensitive design, and provided further clarity on the objectives, which are to activate and add amenity to the public realm for the public benefit	This policy should assist the City in achieving these SCP priorities. The updated objective makes it clear that developments which are not for the public benefit are outside the scope of the policy.
Policy scope and clarity of types of development	The development types (previously tiers) have been renamed as follows: · Temporary Signs (formerly Tier 1) · Street Furniture (formerly Tier 3) · Structures and Shelters (formerly Tier 4) Developments that are public works or for a purely private purpose are outside the scope of the policy, which is specified in the Policy Scope.	Public works (formerly Tier 2) are dealt with under the Public Works Act 1902 and Main Roads Act 1930. Therefore it is not necessary for this policy to set out the process for dealing with these works. Developments for a purely private purpose (formerly Tier 5) are not consistent with the objective of the Policy (do not activate the street / park or provide public amenity). Therefore they are outside the scope of the policy. In the Scope section these types of developments are referenced, and it is noted that if a proposal is received the CEO will consider alignment with the City’s plans and strategies, and Council would be required to determine whether to approve it, and on what terms. A Development Application would also be required.
Development Type and approval requirements summary table	This table has been updated to include only the three types of developments, and list the application checklist (requirements), the decision maker and the approval / fee required for each.	This table now provides a simple summary for applicants of what is required for each type of development. The checklist and clearly stating who the decision maker is (Council or CEO) and what form of approval is required should assist applicants in preparing their application.
Application Assessment Process for Street Furniture	The requirement for a $100 application fee and licence is considered unnecessary for street furniture, as it is low risk and easily removable. The City seeks to encourage street furniture, so a simplified online approval process is proposed. 1. Online form, including plans, submitted. 2. City Officers conduct site visit to ensure suitable placement. 3. Applicant signs undertaking	An online form prompting the City to schedule a site meeting would further streamline the process. The online form would require plans to be submitted which meet the design requirements. The risks associated with the street furniture is mitigated by requiring applicants to accept liability, provide evidence of public liability insurance and acknowledge that the City reserves the right to remove unsafe structures and recover the cost. This will be set out in the undertaking, which must be signed before the street furniture is installed.
Structures and Shelters	Fee of $30/m² per annum (indexed by CPI)	The fixed fee acknowledges that these permanent structures and shelters have a financial benefit to the adjacent business, but the benefit is not necessarily proportionate the area of the structure. The benefit is deemed to be greater than that provided by a parklet, so a fee higher than the $500 pa parklet fee is appropriate.
Street Furniture/ Structures and Shelters	Updated design requirements to provide clear guidance to applicants. Diagrams will be included in the final version of the policy	The Policy needs to clearly set out what types of structures are permissible, with examples. Details of set back from the kerb and other structures are conveyed best through diagrams.

Consultation/Advertising:

· notice on the City’s website, social media and e-newsletter;

· notice in the local newspapers; and

· notice on the notice board at the City’s Administration and Library and Local History Centre.

In addition to the above requirements, in accordance with Policy 4.1.5 – Community Consultation Administration will prepare and distribute letters to local businesses and community groups (Policy 4.1.5 Appendix 2, item 10).

Legal/Policy:

· Policy 4.1.1 – ‘Adoption and Review of Policies’ sets out the process for repealing and adopting policies.

· Policy 4.1.5 – Community Consultation requires local public notice for at least 21 days and a letter to be sent to local businesses and community groups.

Risk Management Implications:

Low: It is low risk for Council to consider a new policy on development on City owned and managed land.

Strategic Implications:

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

Thriving Places

We encourage innovation in business, social enterprise and imaginative uses of space, both public and private.

Our town centres and gathering spaces are safe, easy to use and attractive places where pedestrians have priority.

We are recognised as a City that supports local and small business.

SUSTAINABILITY IMPLICATIONS:

Nil.

Financial/Budget Implications:

Nil.

FUND	CHEQUE NUMBERS/ BATCH NUMBER	AMOUNT
Municipal Account (Attachment 1, 2 and 3)
EFT Payments	2539 - 2548	$2,672,281.60
Payroll by Direct Credit	May 2020	$1,047,327.75
Sub Total		$3,719,609.35

Cheques
Cheques		$0.00
Sub Total		$0.00

Direct Debits (including Credit Cards)
Lease Fees		$1,510.88
Loan Repayments		$100,782.60
Bank Charges – CBA		$5,242.65
Credit Cards		$6,777.61
Sub Total		$114,313.74

Total Payments		$3,833,923.09