Agenda of Ordinary Council Meeting

Hornsby Shire Council	Agenda and Summary of Recommendations
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AGENDA AND SUMMARY OF RECOMMENDATIONS

PRESENT

NATIONAL ANTHEM

OPENING PRAYER/S

Rev. Fergus Semler from Dural Anglican Church, Dural will be opening the Meeting in prayer.

Acknowledgement of RELIGIOUS DIVERSITY

Statement by the Chairperson:

"We recognise our Shire's rich cultural and religious diversity and we acknowledge and pay respect to the beliefs of all members of our community, regardless of creed or faith."

ABORIGINAL RECOGNITION

Statement by the Chairperson:

"We recognise the traditional inhabitants of the land we are meeting on tonight, the Darug and Guringai Aboriginal people, and respect is paid to their elders and their heritage."

AUDIO RECORDING OF COUNCIL MEETING

Statement by the Chairperson:

"I advise all present that tonight's meeting is being audio recorded for the purpose of assisting in the accuracy of the Minutes. The recordings may be accessed by members of the public once the Minutes have been finalised and speakers are requested to ensure their comments are relevant to the issue at hand and refrain from making personal comments or criticisms."

APOLOGIES / LEAVE OF ABSENCE

presentations

declarations of interest

Clause 52 of Council’s Code of Meeting Practice (Section 451 of the Local Government Act, 1993) requires that a councillor or a member of a Council committee who has a pecuniary interest in a matter which is before the Council or committee and who is present at a meeting of the Council or committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable. The disclosure is also to be submitted in writing (on the form titled “Declaration of Interest”).

The Councillor or member of a Council committee must not be present at, or in sight of, the meeting of the Council or committee:

(a) at any time during which the matter is being considered or discussed by the Council or committee.

(b) at any time during which the Council or committee is voting on any question in relation to the matter.

Clause 51A of Council’s Code of Meeting Practice provides that a Councillor, Council officer, or a member of a Council committee who has a non pecuniary interest in any matter with which the Council is concerned and who is present at a meeting of the Council or committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable. The disclosure is also to be submitted in writing (on the form titled “Declaration of Interest”).

If the non-pecuniary interest is significant, the Councillor must:

a) remove the source of conflict, by relinquishing or divesting the interest that creates the conflict, or reallocating the conflicting duties to another Council official.

b) have no involvement in the matter by absenting themself from and not taking part in any debate or voting on the issue as if the provisions of Section 451(2) of the Act apply.

If the non-pecuniary interest is less than significant, the Councillor must provide an explanation of why they consider that the interest does not require further action in the circumstances.

Political Donations Disclosure

Statement by the Chairperson:

“I advise all present that a Political Donations Disclosure Statement pursuant to Section 147(3) of the Environmental Planning and Assessment Act 1979 must be made in the event that a person has made or a Councillor or political party has received a gift or political donation from any person or organisation, including a person or organisation making a submission to an application or other planning matter, listed on the Meeting agenda.”

confirmation of minutes

THAT the Minutes of the Ordinary Council Meeting held on 17 February, 2010 be confirmed; a copy having been distributed to all Councillors.

Petitions

Mayoral Minutes

Notices of Motion

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Item 1 NOM2/10 Rezoning of Industrial Lands

COUNCILLOR MILLS TO MOVE

THAT a report be prepared outlining opportunities and constraints to rezoning industrial land in Kookaburra Road, Hornsby Heights to residential land, to facilitate the long term relocation of existing industrial developments to a more appropriate location.

Rescission Motions

MATTERS OF URGENCY

ITEMS PASSED BY EXCEPTION / CALL FOR SPEAKERS ON AGENDA ITEMS

Note:

Persons wishing to address Council on matters which are on the Agenda are permitted to speak, prior to the item being discussed, and their names will be recorded in the Minutes in respect of that particular item.

Persons wishing to address Council on non agenda matters, are permitted to speak after all items on the agenda in respect of which there is a speaker from the public have been finalised by Council. Their names will be recorded in the Minutes under the heading "Public Forum for Non Agenda Items".

GENERAL BUSINESS

· Items for which there is a Public Forum Speaker

· Public Forum for non agenda items

· Balance of General Business items

General Manager's Division

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Item 2 GM5/10 Tax Deductible Donations

RECOMMENDATION

THAT Council

1. Agree, in principle, to pursue an application to the Australian Taxation Office for endorsement as a deductible gift recipient;

2. Obtain legal advice as to the appropriateness of Council being endorsed “for a fund, authority or institution it owns or includes”, or endorsement through a gift fund established under the categories of a cultural organisation and an environmental organisation, together with advice as to the legal processes required to obtain the necessary endorsement and to ensure satisfaction of all requirements;

3. Request the General Manager to prepare a draft Donations and Gifts Acceptance Policy;

4. Refer the legal advice upon receipt, together with the draft policy, to the Finance & Strategy Task Force for consideration;

5. Request a further Report to be submitted to Council after consideration of the issue by the Finance & Strategy Task Force.

Corporate and Community Division

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Item 3 CC10/10 Community Centres and Halls Section 377 Management Committees

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No CC10/10, including the review of the “Existing 377 Management Committee with Significantly Improved Performance” management model and report on the 2009 Annual General Meetings of Section 377 Management Committees, be received and noted.

2. Council acknowledge and thank volunteer members of management committees for their contributions to the management of their community centres and halls in the 2008/09 financial year.

3. Council consider the outcome of discussions of the Community, Cultural and Recreation Facilities Task Force and adopt Option 4 (Council Managed Model), as listed in the Attachment 1, as the future model of management of all community and cultural facilities in the Shire.

4. The handover of all facilities from Section 377 Management Committees to Council take place within a 12 month period.

5. The funding model outlined in Attachment 1 of Report No CC10/10 be used to employ the necessary staff to enact the “Council Managed Model”, noting that these staff should be employed from within Council’s existing human resource pool where possible and appropriate.

6. The delegations for the various Section 377 Management Committees be withdrawn as the handover of facility management occurs between Management Committees and Council.

7. Existing Section 377 Management Committees be invited to form Advisory Committees for their particular Centre.

8. All funds currently held in Management Committee bank accounts be returned to Council by the end of April 2010 and be placed in an internally restricted account for use exclusively on upgrading community facilities, noting that currently approved capital projects should continue to be progressed.

9. Council staff work with Management Committees/Advisory Committees to prepare a capital development options list for their facility. The final list is to be provided to Council within 12 months for the endorsement of a priority capital works schedule.

10. Council staff proceed with the necessary arrangements to centralise a telephone and online booking system for all community and cultural facilities as a priority project.

11. The Community, Cultural and Recreation Facilities Task Force receive regular updates in respect of the progress of the hand over to Council of each facility.

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Item 4 CC11/10 Investment and Borrowing Report - Period Ending January 2010

RECOMMENDATION

THAT the contents of the Executive Manager’s Report No CC11/10 be received and noted.

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Item 5 CC12/10 Loan Raising - 2009/10 Budget

RECOMMENDATION

THAT:

1. Council approve the raising by June 2010 of a loan from external sources for an amount of $2.0 million.

2. The General Manager be authorised to accept the best quote offered for such loan funds; to complete the necessary documentation relating to the loan; and to advise Councillors of the outcome.

3. If required, the Common Seal of Council be affixed to the loan documentation between Council and the successful Bank for the $2.0 million loan referred to in Report No CC12/10.

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Item 6 CC13/10 Outstanding Council Resolutions

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. CC13/10 be received and noted.

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Item 7 CC14/10 Review of Hornsby Mall Code

RECOMMENDATION

THAT:

1. The contents of Executive Manager's Report No. CC14/10 be received and noted.

2. Council adopt the Hornsby Mall Code, as shown in Attachment 1 to Report No. CC4/10, subject to the incorporation of the deletions and additions shown in track changes.

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Item 8 CC15/10 Hornsby Shire Community Plan 2010- 2020, Delivery Program 2010 - 2014 and Operational Plan including Budget and Fees and Charges 2010/11 - Adoption of Draft Documents for Public Exhibition

RECOMMENDATION

THAT Council

1. Adopt for public exhibition the draft Hornsby Shire Community Plan 2010 – 2020, draft Delivery Program 2010 – 2014, draft Operational Plan including Fees and Charges 2010/11, and those documents be available for public comment from 18 March 2010 to 19 April 2010.

2. Adopt for public exhibition the rating information contained in the draft Delivery Program 2010 – 2014, based on the announced 2.6% rate pegging increase, including the rates yield in percentage terms per rating category for 2010/11 as set out in the draft Delivery Program 2010 – 2014.

3. Adopt for public exhibition the proposal to seek a special variation to general income under Section 508(2) of the Local Government Act 1993. The special variation is to be 5.8% of the combined Ordinary (residential, farmland, business and CBD business) Rate and the Catchments Remediation Rate and the term of the special variation to general income to be 20 years.

4. Lodge an application for a special variation to general income under Section 508(2) of the Local Government Act 1993 before 26 March 2010, and lodge updated information regarding community consultation before 23 April 2010.

5. Levy the Catchments Remediation Rate for 2010/11 on all rateable land in the Shire in accordance with ad valorem rates set out in the draft Delivery Program 2010 – 2014.

6. Levy the Hornsby Quarry Loan Rate for 2010/11 on all rateable land in the Shire.

7. Following the public exhibition period, and after consideration of all submissions, the draft Hornsby Shire Community Plan 2010 – 2020, draft Delivery Program 2010 – 2014, draft Operational Plan including Fees and Charges 2010/11 be referred to Council for further consideration and adoption before 30 June 2010.

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Item 9 CC16/10 Wallarobba Arts and Cultural Centre - Update on Progress

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No. CC16/10 be received and noted.

2. Council acknowledge the efforts of staff in reaccommodating the displaced tenants from Willow Park.

3. A request be lodged with the Land and Property Management Authority seeking the inclusion of an additional use classification in respect of Crown Reserve R90697 to accommodate the occupation of St John Ambulance (Hornsby/ Ku-ring-gai).

4. Subject to receipt of approval referred to in recommendation 3. above, Council, as Reserve Trust Manager, grant a five year licence to St John Ambulance (Hornsby Ku-ring-gai) in respect of three first floor rooms located within the former Fire Control Centre building on Crown Reserve R90697 (141 Galston Road Hornsby Heights) on the following basis:

· The rooms shall only be used for administration and training purposes of St John Ambulance (Hornsby Ku-ring-gai).

· The licensee shall be permitted to use the rooms from Monday to Sunday (inclusive) from 8:00am to midnight, and as needed during major events.

· The licence fee payable in respect of the rooms shall be $2,500 per annum (inclusive of GST). This fee may be paid through an in-kind arrangement organised with Council’s Community Services Branch.

· The licence fee will be increased annually in accordance with the movement in the CPI.

· The licensee shall contribute to operating costs, in particular electricity and water usage assessed on an area occupied basis.

· The licensee shall be responsible for all installation and running costs associated with telephone lines and calls.

· The licensee shall maintain a Public Liability Insurance policy (indemnity of $20 million) during the term of the licence.

· The licensee shall be responsible for the payment of 50% of the licence preparation costs.

· The licence will be subject to the consent of the Minister administering the Crown Lands Act 1989.

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Item 10 CC17/10 Hornsby Youth and Family Centre - 17 Muriel Street, Hornsby - Expiry of Lease

RECOMMENDATION

THAT:

The contents of Executive Manager’s Report No. CC17/10 be received and noted.

The General Manager undertake lease negotiations with Westfield in regard to the rental that would be payable in respect of Council’s future use of the Hornsby Youth and Family Centre.

The Mayor make personal representations to Mr Frank Lowy of Westfield thanking him for the support provided by Westfield over the past 21 years through its requirement for a peppercorn rental in respect of Council’s use of the building now known as the Hornsby Youth and Family Centre; advising him of the valuable contribution that the Youth and Family Centre continues to make to the Hornsby community; and seek his support in encouraging relevant Westfield staff to maintain the existing peppercorn rental arrangements for the term of a new lease.

Environment Division

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Item 11 EN7/10 Tree Removal at 34 Dean Street, West Pennant Hills

RECOMMENDATION

THAT Council refuse consent to remove one Eucalyptus saligna (Sydney blue gum) located in the front yard of 34 Dean Street West Pennant Hills.

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Item 12 EN8/10 Tree-lined boulevard planting

RECOMMENDATION

THAT Council agree to trial the use of 45 litre plants as street tree plantings for a period of 3 years in selected streets throughout the Shire.

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Item 13 EN9/10 Bunya trees at 19C Ethel Street, Hornsby

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. EN 9/10 be received and noted.

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Item 14 EN10/10 Offset Code - Results of Trial Period

RECOMMENDATION

THAT Council adopt the Green Offsets Code with amendments as outlined.

Planning Division

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Item 15 PLN16/10 Legal Services Tender - Councillor Nomination for Interview Panel

RECOMMENDATION

THAT Council nominates one Councillor from each Ward to sit on the interview panel for the legal services tender.

Works Division

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Item 16 WK12/10 Asset Management Policy

RECOMMENDATION

THAT Council adopt the draft policy – Asset Management.

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Item 17 WK13/10 Proposed Berowra Aquatic Centre

RECOMMENDATION

THAT:

The contents of report WK13/10 be received and noted.

Council not proceed with the proposed Berowra Aquatic Centre at this time.

Council not accept the quotation submitted for this project, as it no longer intends to proceed with the project.

Council consider future proposals for the use of the funds set aside for this project following realisation of the net proceeds of sale of its land at 120 and 122 Berowra Waters Road, Berowra.

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Item 18 WK14/10 Wisemans Ferry Commercial Centre Masterplan - Relocation of Solomon Wiseman Statue

RECOMMENDATION

THAT Council not agree to the relocation of the Solomon Wiseman statue in view of the objections from the property owner on which the statue is located and the adjacent property owner, as well as the adverse impacts on the context of the setting with respect to the historical monuments for Wisemans Ferry.

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Item 19 WK15/10 Review of Cherrybrook Integrated Local Transport Plan

RECOMMENDATION

THAT:

Council note that the majority of the recommendations of the Cherrybrook Integrated Local Transport Plan have been implemented

Council endorse the following actions (listed with reference to the Cherrybrook Integrated Local Transport Plan) for inclusion in future funding programs:

a. PT1 - Cycleway link through redundant bus connection between Hastings Road and Broadoak Place be considered for inclusion in future traffic facilities programs subject to completion of a cycle path along the nature strip of Hastings Road.

b. W1 – Council write to The Minister for Transport and Roads and the RTA requesting the roundabout at New Line Road and County Drive be signalized and that additional signalized pedestrian crossings be provide in New Line Road between County Drive and Boundary Road, and in Boundary Road between Cedarwood Drive and Lee Road.

c. B2 - The Boundary Road Commuter Cycleway link be included in the list of projects to be funded by the Waste Levy.

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Item 20 WK16/10 Aquatic Centres - Reduction in Winter Hours

RECOMMENDATION

THAT:

Council approve the closure of Epping Aquatic Centre for Sunday trading from Sunday, 2 May 2010, to Sunday, 26 September 2010, inclusive.

Council approve Sunday trading for the Galston Aquatic Centre, 8.00am to 11.00am from Sunday, 2 May 2010, to Sunday, 26 September 2010, inclusive.

Council approve Sunday trading for Hornsby Aquatic Centre, 7.00am to 4.00pm from Sunday, 2 May 2010, to Sunday, 26 September 2010, inclusive.

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Item 21 WK17/10 Code for installation of parking restrictions near driveways

RECOMMENDATION

THAT Council adopt the attached code titled Parking Restrictions Near Driveways.

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Item 22 WK18/10 Introduction of fee for assessment of Traffic management plans/road closure plans

RECOMMENDATION

THAT Council adopt the new fee for assessment of Traffic Management Plan/Temporary Road Closure.

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Item 23 WK19/10 Expression of Interest EOI 1/2010: Expression of Interest for the Design and Construction Management of Hornsby Aquatic Centre

RECOMMENDATION

THAT:

1. Council invite The Cox Group, Geoff Ninnes Fong & Partners Pty Ltd, Mode Design, Peter Hunt Pty Ltd, Suters Architects and TompkinsMDA Architects to tender for the design and construction management of Hornsby Aquatic Centre.

2. The result of the tender to be reported back to Council.

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Item 24 WK20/10 Reconstruction of Hornsby Aquatic Centre

RECOMMENDATION

THAT:

1. Council proceed with planning for the reconstruction of the Hornsby Aquatic Centre.

2. Council proceed with the selective tender process as outlined in Report No WK19/2010.

3. The following features be included as part of the scope of works for the project:

i. reconstruction of the Hornsby Aquatic Centre on the existing site

ii. construction of a 50 metre eight lane outdoor pool

iii. construction of a 25 metre indoor pool with basement parking

iv. construction of new grandstand/s with 500 seat capacity

v. construction of a splash pool

vi. construction of a new amenities block, club rooms, etc

vii. budget allocation of $20 million

4. The tender documentation to include provisions to halt progress if the proposed Infrastructure Levy is not successful.

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Item 25 WK21/10 Tender T2/12010: Electrical Services

RECOMMENDATION

THAT Council accept tenders for Tender No T2/2010: Electrical Services, as follows:

Work Area

First preference

Second preference

Parks, Ovals and Gardens

Rob Edwards Electrical Services trading as REES Electrical

D & JF Scaife Electrical Contractors

Buildings including Aquatic Centres

D & JF Scaife Electrical Contractors

Rob Edwards Electrical Services trading as REES Electrical

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Item 26 WK22/10 County Drive Cherrybrook Traffic Calming Measures

RECOMMENDATION

THAT:

1. Council note that County Drive has an adverse crash history and traffic calming is required as a matter of priority.

2. Council note that the need to traffic calm County Drive was identified as a priority in the Cherrybrook Integrated Transport Plan adopted by Council in August 2001.

3. The amended proposal attached (as detailed in this report) be adopted in principle, readvertised for public comment and referred to the Local Traffic Committee for a recommendation.

4. Council write to The Minister for Transport and Roads and the RTA requesting the roundabout at New Line Road and County Drive be signalized and that additional signalized pedestrian crossings be provide in New Line Road between County Drive and Boundary Road, and in Boundary Road between Cedarwood Drive and Lee Road.

SUPPLEMENTARY AGENDA

PUBLIC FORUM – NON AGENDA ITEMS

Mayor's Notes

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Item 27 MN2/10 Mayor's Notes from 1 to 31 January 2010

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Item 28 MN3/10 Mayor's Notes from 1 to 28 February 2010

Questions of Which Notice Has Been Given

QUESTIONS WITHOUT NOTICE

General Manager's Report No. GM5/10

General Manager Division

Date of Meeting: 17/03/2010

2 TAX DEDUCTIBLE DONATIONS

EXECUTIVE SUMMARY

Council at its meeting held on 17 February 2010, adopted a Notice of Motion submitted by Cr Hutchence requiring the submission of a Report to the March Ordinary Meeting of Council outlining the process to be followed and the obligations to be accepted if council was to be endorsed by the Australian Taxation Office (ATO) as a Deductible Gift Recipient (DGR) enabling council to receive gifts of money or property, the value of which can be claimed by donors as income tax deductions.

The classification of Council as a DGR is available through an endorsement process managed by the ATO. The process for endorsement and the responsibilities for an organisation which is a DGR have been extracted from the ATO website and summarised in this Report. Council will require legal advice in finalising any application.

PURPOSE/OBJECTIVE

This Report is submitted to satisfy Council’s resolution that a report, outlining the process to be followed and the obligations to be accepted if council was to be endorsed by the Australian Taxation Office as a Deductible Gift Recipient (DGR), be presented to the March Ordinary Meeting of Council.

DISCUSSION

Council at its meeting held on 17 February 2010, adopted a Notice of Motion submitted by Cr Hutchence requiring the submission of a Report to the March Ordinary Meeting of Council outlining the process to be followed and the obligations to be accepted if council was to be endorsed by the Australian Taxation Office as a Deductible Gift Recipient (DGR) enabling council to receive gifts of money or property, the value of which can be claimed by donors as income tax deductions.

The classification of Council as a deductible gift recipient (DGR) is available through an endorsement process managed by the Australian Taxation Office (ATO). A DGR is entitled to receive income tax deductible gifts and tax deductible contributions and only certain organisations are entitled to be endorsed.

The process for endorsement and the responsibilities for an organisation which is a DGR are outlined on the Australian Taxation Office website commencing under the heading ‘Tax deductible donations’. The following information has been extracted and summarised from the ATO website. Council will require legal advice in finalising any application but to-date no advice has been sought.

Claiming Deductions for Gifts

Deductions for gifts are claimed by the person or organisation that makes the gift (the donor). A donor can be an individual, company, trust or other type of taxpayer.

To be tax deductible, a gift must:

· Be made to a deductible gift recipient (DGR)

· Really be a gift

· Be a gift or money or a certain type of property

· Comply with any relevant gift conditions.

What is a deductible gift recipient?

A deductible gift recipient (DGR) is an organisation which is endorsed by the Tax Office to receive income tax deductible gifts and deductible contributions.

What is DGR endorsement?

DGR endorsement is the approval process for organisations that wish to be endorsed by the Tax office as DGRs.

There are two types of DGR endorsement:

· Where an organisation is endorsed as a whole, for example public hospitals and public universities, and

· Where an organisation is endorsed for a fund, authority or institution that it owns or includes, for example school building funds and council libraries.

Endorsement as a DGR allows donors to claim tax deductions for most types of gifts or donations they make to the DGR.

Obtaining DGR Status

Some DGRs are listed by name in the tax law but most must apply to the Tax Office to be endorsed as DGRs.

To be endorsed as a DGR, an organisation must:

· Have an Australian business number (ABN)

· Fall into a DGR general category or operate a fund, authority or institution that falls into a DGR general category.

· Have acceptable rules dealing with the transfer of surplus gifts and deductible contributions on winding up or revocation of endorsement

· Satisfy the gift fund requirements (if applicable)

· Be in Australia or its fund, authority or institution is in Australia, unless it is an ancillary fund.

Organisations that meet the requirements for endorsement can apply to the ATO using an Endorsement application pack (NAT 2948).

Examples of the categories include:

· Health promotion charities

· School building funds

· Public benevolent institutions

· Overseas aid funds

· Registered cultural and environmental organisations

· Public libraries, museums and art galleries.

What are the consequences of DGR endorsement?

Gift deductibility

Donors can claim income tax deductions for most types of gifts they make to An organisation from the date an organisation’s endorsement starts and while an organisation is endorsed.

Australian Business Register

An organisation’s entry in the Australian Business Register will be updated to show it is a DGR. This information is publicly available on the register website at www.abn.business.gov.au

Receipts

When an organisation issues a receipt for a tax deductible gift or contribution, it must include certain information on the receipt. If an organisation does not provide this information on its receipts, an organisation’s endorsement may be revoked.

Self-Review

An organisation must notify the Taxation Office in writing if an organisation’s circumstances change and if it stops being entitled to DGR endorsement. Worksheets are provided in Gift Pack for deductible gift recipients and donors (NAT 3132) to help an organisation to self-review its entitlement to endorsement.

Record keeping

As a DGR, an organisation is required to keep adequate accounting and other records that record and explain all transactions that are relevant to an organisation’s status as a DGR.

These records must also show that all gifts, deductible contributions and any money received in respect of such gifts and contributions are only used for the principal purpose of the fund, authority or institution. An organisation is required to maintain these records for at least 5 years after the completion of the transactions or acts to which they relate. The penalty for not keeping proper records is twenty penalty units.

Maintaining DGR Status

Organisations that have been endorsed as deductible gift recipients (DGRs) must tell the ATO if they cease to be entitled to endorsement.

This means that there is a requirement to carry out regular reviews of an organisation’s DGR status.

What is required on dissolution or revocation of endorsement?

The requirement varies with the type of endorsement

Entity endorsed as a whole

The organisation is required to transfer all remaining gifts, deductible contributions and any money received in respect of such gifts and contributions to another DGR on winding up or on revocation of endorsement, whichever occurs first. The organisation must be required to do this by a law, its constituent documents or governing rules.

Whilst DGRs endorsed as a whole are not required to maintain a gift fund, all gifts and deductible contributions made to such a DGR for its principal purpose must be used for that purpose. The DGR will need to maintain accounting records to identify the use of gifts and deductible contributions received and whether any surplus exists upon winding up or revocation of its DGR endorsement.

Entity endorsed for a fund, authority or institution it owns or includes

The organisation is required to transfer any surplus assets of the gift fund to another gift deductible fund, authority or institution when its fund, authority or institution is wound up or on revocation of endorsement. The organisation must be required to do this by a law, its constituent documents or governing rules.

What are the pre-requisites for DGR endorsement?

Entity endorsed as a whole

To be entitled to this type of endorsement, an organisation must:

o Have an Australian business number (ABN)

o Be in a general DGR category set out in the income tax law

o Be in Australia (with some exceptions), and

o Be required – by a law, its constituting documents or rules governing its activities – to transfer the following assets to another DGR if the organisation is wound up or its endorsement is revoked.

§ Surplus gifts and deductible contributions made for the principal purpose of the organisation, and

§ Money received by the organisation because of such gifts or contributions.

Entity endorsed for a fund, authority or institution it owns or includes

To be entitled to this type of endorsement, an organisation must:

o Have an ABN

o Satisfy the gift fund requirements (unless endorsed as a DGR as a whole)

And the fund, authority or institution an organisation owns or includes must:

o Be in a general DGR category set out in the income tax law, and

o Be in Australia.

From this information it can be deduced that Council will need to determine whether the type of endorsement it should seek is Council being “endorsed as a whole” or “endorsed for a fund, authority or institution it owns or includes”. It appears however that Council would seek endorsement for “a fund, authority or institution it owns or includes” but this would need to be assessed following legal advice.

If Council was to seek endorsement for “a fund, authority or institution it owns or includes”, then consideration needs to be given to the gift fund requirements and the DGR categories set out in the income tax law.

What is a gift fund?

A gift fund has these characteristics:

· It is a fund

· It is maintained for the principal purpose of the fund, authority or institutions all gifts, and deductible contributions, or money or property for that purpose are made to it

· Any money received by the entity, because of such gifts, or deductible contributions, is credited to it

· It does not receive any other money or property

· The fund is used only for the principal purpose of the fund, authority or institution, and

· The organisation is required – by a law, its constituent documents or governing rules – to transfer any surplus assets of the gift fund to another gift deductible fund, authority or institution when the fund, authority or institution is wound up or the DGR endorsement is revoked, whichever occurs first.

What are the general DGR categories?

The income tax law sets out the general DGR categories.

There are currently more than 40 categories. Examples include:

§ Health promotion charities

§ School building funds

§ Scholarship funds

§ Public benevolent institutions

§ Overseas aid funds

§ Registered cultural and environmental organisations, and

§ Public libraries, museums and art galleries.

Although at this stage Council has not been specific it seems likely that if Council is not endorsed as a whole it would utilise the following categories for endorsement:

· Registered cultural and environmental organisations

· Public libraries, museums and art galleries.

What is a cultural organisation?

For Council to maintain a public fund on the Register of Cultural Organisations the fund is to be included on the Register of Cultural Organisations administered by the Department of the Environment, Water, Heritage and the Arts (DEWHA).

The Treasurer and the Minister for Environment, Heritage and the Arts decide whether to register the organisation and its public fund. This decision is not made by the Tax Office.

An organisation on the Register of Cultural Organisation must meet several requirements, including:

§ It is a body corporate, or a trust, or an unincorporated body established for a public purpose by the Commonwealth, a state or a territory

§ Its principal purpose is the promotion of literature, music, a performing art, a visual art, a craft, design, film, video, television, radio, community arts, Aboriginal arts or movable cultural heritage

§ It does not give any of its property, profits or financial surplus to its members, beneficiaries, controllers or owners

§ It maintains a public fund to receive gifts

§ It agrees to provide information on donations at six-monthly intervals, and

§ It agrees with DEWHA that, if included on the register, it will participate in periodic reviews of eligibility.

Cultural activities undertaken as the principal purpose of an organisation on the register may include:

§ A new theatrical work

§ The publication of a literary magazine, and

§ The building of a community arts centre.

The application is sent to DEWHA to assess eligibility for inclusion on the register. If an organisation is included on the register the form is then sent to the Tax Office for endorsement as a DGR. The organisation does not need to apply separately to the Tax Office.

What is an environmental organisation?

To be a registered environmental organisation.

For Council to maintain a public fund on the Register of Environmental Organisations the fund is to be on the Register of Environmental Organisations kept by the Department of the Environment, Water, Heritage and the Arts.

The Treasurer and the Minister for the Environment, Heritage and the Arts decide whether an organisation and its public fund is entered on the Register of Environmental Organisations.

To be entered on the register, an organisation must meet several requirements, including:

§ It is a body corporate, a cooperative society, or a trust, or an unincorporated body established for a public purpose by the Commonwealth, a state or a territory

§ Its principal purpose is the protection and enhancement of the natural environment or a significant aspect of it, or the provision of information or education, or the carrying on of research, about the natural environment or a significant aspect of it.

§ It does not give any of its property or profits to its members, beneficiaries, controllers or owners, and

§ It maintains a public fund to receive gifts

The application is sent to DEWHA to assess eligibility for inclusion on the register. If an organisation is included on the register the form is then sent to the Tax Office for endorsement as a DGR.

The organisation does not need to apply separately to the Tax Office.

What is a public library, public museum or public art gallery?

· A public library

· A public museum

· A public art gallery, and

· An institution consisting of a public library, public museum and public art gallery or of any two of these

are separate DGR categories and each has the following features:

· It is owned or controlled by a government or quasi-government authority, or by persons or an institution have a degree of responsibility to the public

· Its collection is made available to the public

· It is constituted as a library, museum or art gallery, other people recognise it as such, and it conducts itself in the ways that are consistent with such a character, and

· It is an institution.

The terms “library”, “museum” and “art gallery” have their ordinary meanings. They are described as follows:

· Library: a place set apart to contain books and other literary material for reading, study or reference

· Museum: building or place for the keeping, exhibition and study of objects of scientific, artistic or historical interest, and

· Art gallery: building devoted to the exhibition of works of art; a collection of art for exhibition.

The constituent or governing documents of a public library, museum or art gallery must be consistent with its character. Also, an organisation’s activities, acquisitions policy, staffing, advertising and membership will be relevant.

The ways in which an organisation collects, preserves, maintains and makes its collection available must be consistent with how a library, museum or art gallery operates.

Council would appear to satisfy readily the requirements of an “organisation (that) collects, preserves, maintains and makes its collection available (~~must be)~~ consistent with how a library, museum or art gallery operates”.

If Council was to seek to be “endorsed for a fund, authority or institution it owns or includes” it will need to determine under what categories it will seek endorsement and, in particular, to establish the gift fund and develop governing rules to satisfy all requirements. Council also needs to be aware that if it is endorsed, say, for a public library that it operates, then only gifts to the library would be deductible. Other gifts, for example, gifts to the council for a neighbourhood project, would not be deductible.

Therefore if Council wishes to operate more than one fund, authority or institution, it will need a separate endorsement for each one. Under these circumstances legal advice would be essential and potentially a deed would need to be executed establishing processes to obtain the necessary registrations and to ensure satisfaction of all requirements.

Assessment Criteria for Gifts Proposals

Council should be cognizant of the potential need for an assessment process to be established to determine whether a gift should be accepted. If the Council resolves to proceed with endorsement as a DGR, then such a process can be established as a policy and the following matters included and analysed with respect to each offer of a gift or bequest:

1) The Council and the community interest

2) Significance and value of the proposed gift to Council and the community

3) Terms and conditions of the gift or bequest

4) Ownership versus access

5) State of maintenance and condition of the gift or bequest if a work

6) Transport, installation and interpretation costs associated with the gift or bequest

7) Registration, cataloguing, storage, microclimate requirements and insurance costs

8) Public or community perceptions of the proposed gift or bequest

9) Past history of offers of the gift or bequest to other institutions

10) Origin and ownership history of the proposed gift or bequest

11) Indigenous communities' views on proposed gifts or bequests relating to Indigenous Cultural History

12) Future de-accessioning costs

13) Other issues pertinent to the particular gift or bequest proposal

BUDGET

There are no budget implications with Council’s adoption of this Report.

POLICY

There are no direct implications to existing Council Policies. As outlined in the Report, a Policy in relation to an assessment process to determine whether a gift should be accepted is likely to be required.

CONSULTATION

There has been no consultation.

TRIPLE BOTTOM LINE SUMMARY

The Triple Bottom Line is a framework for improving Council’s decisions ensuring accountability and transparency on social, environmental and economic factors. It does this by reporting upon Council’s strategic themes. If Council was to proceed with the recommendations proposed in the Report, Council’s endorsement as a deductible gift recipient and the receipt of donations would contribute to Council’s strategic themes:

Society and Culture – enhance social and community well-being.

Ecology – Protect and enhance our natural environment.

RESPONSIBLE OFFICER

The General Manager, Mr Robert Ball.

RECOMMENDATION

THAT Council

1. Agree, in principle, to pursue an application to the Australian Taxation Office for endorsement as a deductible gift recipient;

3. Request the General Manager to prepare a draft Donations and Gifts Acceptance Policy;

4. Refer the legal advice upon receipt, together with the draft policy, to the Finance & Strategy Task Force for consideration;

5. Request a further Report to be submitted to Council after consideration of the issue by the Finance & Strategy Task Force.

Robert Ball

General Manager

General Manager Division

Attachments:

There are no attachments for this report.

File Reference: F2010/00069

Document Number: D01331983

Executive Manager's Report No. CC10/10

Corporate and Community Division

Date of Meeting: 17/03/2010

3 COMMUNITY CENTRES AND HALLS SECTION 377 MANAGEMENT COMMITTEES

EXECUTIVE SUMMARY

This Report seeks to address two distinct yet related matters and then to provide options for a way forward in respect of the management of Council’s 24 community and cultural facilities across the Shire.

Part One of the Report responds to the scheduled need for a review of the implementation of the management model – Existing 377 Model of Management with Significantly Improved Performance - which was implemented as a result of a comprehensive management review of Council's community centres and halls undertaken in 2004/05 by consultants Morrison Low.

Part Two of the Report details the outcomes of the Annual General Meetings (AGM's) conducted by the Section 377 Management Committees in 2009, noting that 14 of the facilities in Council's community and cultural facilities network are managed by volunteer management committees. Each year, management committees undertake an Annual General Meeting to elect a Management Committee for the ensuing 12 months and to present reports on the Community Centre's operations.

Part Three of the Report details the research and thoughts of staff and the Community, Cultural and Recreation Facilities Task Force in relation to the future management of community and cultural facilities in the Shire and proposes a way forward.

PURPOSE/OBJECTIVE

The purpose of this Report is to:

· provide details of a review undertaken in respect of the success of the Section 377 Management with Significantly Improvement Performance Model by comparing actual performance with performance standards agreed to by Council and the Management Committees

· inform Council of the outcome of the Annual General Meetings (AGM's) conducted by the 14 Section 377 Management Committees responsible for the care, control and management of facilities in Council's Community and Cultural Facilities Network

· present to Council for its consideration the thoughts of staff and the Community, Cultural and Recreation Facilities Task Force in respect of the future management model of the community and cultural facilities in the Shire.

DISCUSSION

PART 1 - Review of Management Model

At the November 2002 Ordinary Meeting, Council determined that consultants be appointed to work with Council's Section 377 Management Committees to assist in enhancing and delivering a coordinated and systematic management structure for the administration of Council's community and cultural facilities. The recommendations associated with this review were considered by Council at the November 2004 Workshop Meeting. As part of that consideration, Morrison Low (the consultants) presented their findings of their review and recommended a model of management of community and cultural facilities which could be summarised as Council Management with Community Advisory Committees.

At the Workshop Meeting, a number of management committee representatives spoke against the proposed model. Following its consideration of the matter, Council resolved inter alia that (the): "Existing Model with Significantly Improved Performance" option be dealt with in detail, and in consultation with the Section 377 Committees before a final report is presented to Council for its decision”

As a consequence, at the Ordinary Meeting of 10 March 2004, Council considered Report No CC22/04 which provided a detailed exploration of the Management Model Existing Model with Significantly Improved Performance and resolved that:

1. The Council note the extensive consultation undertaken with representatives of each Community Centre and the commitment made by these representatives to support the Existing 377 Model of Management with Significantly Improved Performance as the preferred management model for Council's Community Centres and Halls.

2. Council adopt the Existing 377 Model of Management with Significantly Improved Performance as the preferred management model for Council's Community Centres and Halls and that the General Manager be given delegated authority to implement this option.

3. The Existing 377 Model of Management with Significantly Improved Performance include inter alia:-

· A review of the Community Centres and Halls Procedures and Finance Manuals;

· The development of KPI targets and reporting systems;

· The development of OH&S and risk management systems;

· The development of a training programme;

· Utilisation of current volunteer skills/expertise to assist in the development of revised management procedures;

· Enhancement of communication processes;

· Enhancement and where possible consistent booking/utilisation system;

· A review of fees and charges;

· Enhancement of promotions programme;

· Written sign-off by all 377 Committees and external organisations on the revised Community Centres and Halls Procedures and Finance Manuals as a form of management agreement;

· A review of leases/licences; and

· Council staff attendance at 377 Committee AGMs and 377 Committee meetings as requested.

4. Council endorse the employment of a permanent full time Community Facility Manager to ensure a co-ordinated and systematic management structure for the administration of Council's Community Centres and Halls and support of the 377 Committees, external organisations and Council staff.

5. The recurrent salary costs associated with employing a Community Facility Manager to ensure a co-ordinated and systematic management structure for the administration of Council's Community Centres and Halls be included for consideration in the March 2004 quarterly review.

6. A further report be submitted to Council during the implementation phase of the Existing 377 Model of Management with Significantly Improved Performance should there be a negative impact associated with a potential increased workload for Council's Administration/Booking Officer.

7. A further report be submitted to Council investigating additional funding sources to assist in the management of Council's Community Facility and Halls as part of the fees and charges component of the draft 2004/2005 budget.

8. The Community Facility Manager oversee the development and implementation phase of the Existing 377 Model of Management with Significantly Improved Performance.

9. The Community Facility Manager review the effectiveness of existing leases/licences held with External Organisations for management of Council's Community Centres and Halls.

10. The support and implementation of the Existing 377 Model of Management with Significantly Improved Performance be reviewed after 12 months of operation, dated from the completion of the training program, the development of OH&S and risk management systems and revised management procedures.

11. The development of KPI's and reporting systems be undertaken after completion of the training program, the development of OH&S and risk management systems and revised management procedures.

12. Council thank representatives of the Section 377 Committees for their participation in the review and Council staff for their organisation of the consultation process.

The implementation of the model determined by Council involved extensive consultation with Section 377 Management Committees.

The following section of this Report responds to the issues (outlined in point 3 of the above resolution) that required attention through the implementation of the Existing 377 Model of Management with Significantly Improved Performance.

1. Review of Community Centres and Halls Procedures and Finance Manual

A review of the Community Centres and Halls Procedures Manual occurred in consultation with Section 377 Management Committees over a period of 24 months. The revised Community Centres and Halls Procedures and Finance Manual (inclusive of OH&S and risk management systems and key performance indicator (KPI) targets and reporting systems) was adopted by Council in February 2008 following a period of public exhibition (see Report No CC105/07 and Report No CC11/08 for details). These systems were implemented from the beginning of the 2008/09 financial year.

Upon commencement of the implementation process of the abovementioned manuals, all management committees signed an agreement with Council that acknowledged that the manuals and their contents constituted the management agreement for community facilities between Council and Section 377 Management Committees. Signed copies of agreements by Management Committees are available in Council’s document management system.

2. KPI targets and reporting systems

Community Centre KPI reporting adopts a checklist approach to ensuring that the key management tasks associated with the operation of community centres and halls are completed. These KPI’s were identified by the Morrison Low Review, were subsequently adopted by Council, and are a key component in managing Council’s exposure to risk in the operation of community facilities. The KPIs, which are provided monthly, include a requirement for committees to report on committee meetings, quorums, use of facilities by occasional hirers, finance, maintenance issues and risk management. Management Committees agreed to undertake this reporting in signing the management agreement with Council.

From August 2008 until September 2009 (the interim period between AGMs) a total of 164 reports were due to be provided by Management Committees across the network (12 per centre). Of these, 56% were received by Council by the dates agreed to in the management agreement, 27% were received late and 17% have not been received. Where management committees are over 30 days late in providing reports, reminder letters are sent to the committee by Council officers. Some submissions have been received up to seven months late. In other cases, management committees have submitted the KPI prior to the month ending. Both of these approaches indicate that the reporting is not being completed as agreed to in the Finance and Procedures Manual. It should be noted that some management committees have performed better in relation to the submission of KPIs than others. It is considered that three of the 14 community centres management committees have met agreed standards in relation to the submission of monthly KPIs.

Of the reports that have been received (noting that 17% have not been received), 48% of the reports met or exceeded the KPI’s and 52% of the submitted reports did not meet the established KPI standards. In many cases, committees have noted that they have not performed one or more of the requirements. These omissions generally relate to facility inspection checklists, furniture or equipment inspections and financial reporting.

3. Reporting on OH&S and risk management systems

The development of OH&S and risk management systems were highlighted in the Morrison Low Review as a key area needing rectification in the management of community facilities in order to minimise Council’s exposure to the risk of litigation. In signing the management agreement with Council, management committees agreed to complete monthly facility inspection checklists, an annual detailed facility inspection checklist, biannual inspection of equipment and furniture as well as to submit maintenance request forms on an “as required” basis. These reports were designed to make facilities safer to use for the community and to thereby minimise Council’s exposure to risk.

Of the 150 monthly asset inspection checklists due during the 12 month period (checklists are not required to be completed in January), 60% were completed and submitted to Council with the remaining 40% not received. Three of the 14 centres have met agreed standards in relation to the submission of monthly asset inspections

With regards to the annual asset inspection checklists, six of the 14 management committees completed the inspection and forwarded the report to Council.

Due to the poor response rate across the network in relation to the submission of OH&S and risk management inspection reports, it is considered that the implementation of the Existing 377 Management Committee with Significantly Improved Performance model of management has not sufficiently reduced Council’s exposure to risk. The importance of risk management was highlighted as an area of concern by Morrison Low in their review of community centres and halls management practices in 2004.

4. Enhancement of communication processes

One initiative designed to enhance the communication process between Council and Committees was the employment of a Council Officer to work with and support management committees in their operations. A second initiative was the formation of a Section 377 Management Committee Reference Group. This Group is comprised of members or representatives from each Section 377 Management Committee. Meetings are held quarterly and are designed to further improve the communications between Council and management committees and to provide an opportunity for management committees to share information with each other. The majority of Council’s consultation with committees regarding management issues occurs at these meetings.

Representation and attendance at Reference Group Meetings has varied between centres but has generally been good. Feedback from management committees indicates that overall, committees value the introduction of the Reference Group and the opportunities that are now available to communicate with other committees about operational issues for the management of community centres.

Reference Group meetings have also been used to provide training to management committee members on completing the items required to be provided through the monthly KPI reporting system. Discussions about committee training needs also occur at these meetings.

5. Enhancement and where possible consistent booking/utilisation system

Pennant Hills Community Centre and Cherrybrook Community Centre are the only two facilities that have been able to take advantage of Council’s electronic reservations management system since the Morrison Low Management Review was completed. Both of these facilities provide onsite offices and have paid booking officer roles. Epping Community Centre has also expressed an interest in implementing an electronic booking system but this has been unable to be progressed due to internal resource limitations. It is noted that individual centres pay for the reservation management system that they choose to utilise.

It is noted that Council is currently moving to the use of a new booking system which will allow facilities to be booked and paid for on-line. This system also integrates with Council’s debtor system unlike previous systems. This new booking system presents opportunities for enhanced customer service through the availability of on-line, real time bookings of community centres from the one location. This feature was indentified as being important in the community consultation undertaken to produce the Community and Cultural Facilities Strategic Plan which was adopted by Council following its consideration of Report No CC88/09.

Given the different booking systems and processes operating within the network of community centres, a consistent and streamlined approach to booking and using a community and cultural facility is difficult to achieve. However, this diversity of approach does have advantages in that local solutions to difficult management/customer service problems have been able to be resolved at a local level.

It should also be noted that the existence of paid booking officers at some centres improves customer service outcomes and in some centres, limited office hours of paid staff can be detrimental to customer service as the flexibility offered by volunteer staff is understandably not present with paid staff.

In summary, it is difficult to manage the bookings of a network of centres as a whole when different processes, personnel and approaches to management are utilised at each facility. A centralised on-line booking system is considered to be unachievable whilst different centre management models are in place across the network.

6. A review of fees and charges

Management committees recommend fee structures and pricing for the centres that they manage. As such, there are as many approaches to setting fees. Each committee attempts to set fees in a manner which they consider to be the most beneficial to their facility users and the community that they serve, whilst at the same time ensuring that facilities generate enough revenue to be sustainable.

Council’s review of the fees and charges has focused on reducing the complexity of the fee setting process and achieving some consistency of approach across the network of facilities. Different approaches to fee setting make it difficult to standardise the booking and utilisation systems mentioned above. Whilst ever a diversity of management models are used across the network of community centres and halls, a diversity of fee structures and rates are also likely to exist. It is noted that this system works as each centre booking officer explains the set of fees for the centre that they administer to the customer. Where it becomes difficult is when a customer wishes to compare value between centres and different fee structures are in place.

Since the formation of the Section 377 Management Committee Reference Group, discussion has commenced on big picture fee setting issues but management committees have expressed a general reluctance to create a standard fee structure across the network due to the individual nature of each of the facilities that they manage. In general, a simplified fee structure across all facilities is considered to have positive impacts on customer service experiences for facility users.

7. Enhancement of promotions program;

Whilst one or two committees have developed initiatives for promoting centres that they manage, an overall strategy for the promotion of community centres has not yet been developed. A consolidated approach to promotion is difficult to achieve when the consistency of experience by customers associated with booking processes, fee structures and fee rates are not directly comparable.

As a result, general branding work for community facilities has been undertaken through the development of a vision and mission statement in consultation with Section 377 Management Committees but the network of centres have not been promoted in any new manner. It is considered that any promotional efforts should include information on how to book and use a facility – not just that centres exist and where they are located. With this in mind, the level of detail involved in promoting various contact details, office hours and booking methods used for the 24 community centres would be overly complex. As such, local word of mouth promotion has been the favoured method of promotion to date.

8. The development of a training programme

Training has been provided to management committee members on an ongoing basis through Section 377 Management Committee Reference Group meetings. This training has included issues such as emergency evacuation procedures and use of emergency equipment (August 2006), OHS and risk management systems (August 2007) and using Facility Inspection Checklists (June 2009). In a number of circumstances, training has been offered on particular issues but not taken up by Reference Group participants.

Summary of outcomes

The success of the implementation of the Existing 377 Management Committee with Significantly Improved Performance management model for community centres can be considered to be varied across the network. The data provided above relates exclusively to the success of the implementation of the Procedures and Finance Manuals. It should be noted that no comment is made in relation to impacts that the implementation of the management model may have had on facility utilisation over the 12 month review period.

As a general observation, community centres that generate sufficient income to fund an employed booking officer demonstrate increased capacity and success in achieving the key performance indicators and improved management practices. However, this is not always the case.

With over half (52%) of the KPI’s failing to be met across the network and only three of 14 committees meeting agreed OH&S inspection standards, Council may wish to consider alternative management approaches for community centres. It is considered that the Existing 377 Management Committee with Significantly Improved Performance management model, after two years of development in conjunction with management committees and 12 months of training and implementation, has not achieved the outcomes articulated as essential in the Morrison Low Management Review conducted in 2004.

Further to this, at recent Annual General Meetings, a number of management committees have been unable to achieve a minimum of seven committee members (as outlined in the Procedures Manual) or have been unable to elect representatives to executive positions. It is considered that these committees are likely to have a reduced capacity to undertake the management practices required to fulfil the agreed performance standards in the forthcoming year as a result of the lack of committee volunteers. These issues are addressed in more detail in Part Two of this Report.

Regardless of the statistical measures of the success of the implementation of the Existing 377 Management Committee with Significantly Improved Performance management model, it is evident that management committees are genuinely interested and passionate about managing community centres on behalf of Council and the community. The challenge remains that without the consistent implementation of the improved management structures and practices, Council’s exposure to (unmanaged) risk remains at what is considered to be an unacceptable level.

________________________________________

PART 2 – Report on Community Centre Annual General Meetings

Council owns 24 community centres and halls throughout the Shire. These facilities operate using one of four management models. Those management models are:

· Direct Council management through the Community Services Branch (6 facilities)

· Council management with Community Advisory Committees (2 facilities)

· Section 377 Management Committees (14 facilities)

· Lease/License Agreements with Community Groups (2 facilities)

The Community Centres and Halls that were managed by Section 377 Management Committees under delegation from Council at the time of the Annual General Meetings held in September 2009 were the:

· Beecroft Community Centre

· Cherrybrook Community Centre

· Cowan Community Centre

· Dangar Island Community Centre

· Epping Community Centre

· Epping Creative Centre

· Galston Community Centre

· Glenorie Community Centre

· Gumnut Community Centre (at Cherrybrook)

· Mt Kuring-gai Community Centre

· Pennant Hills Community Centre

· Roselea Community Centre

· Thornleigh Community Centre

· West Epping Community Centre

The main purpose of the Section 377 Management Committee Annual General Meetings is to elect a Management Committee for the ensuing 12 months and to present reports on the Community Centre's operational management for the consideration of the community and Council.

The Procedures Manual for Community Centre and Hall Management Committees along with the Financial Manual for 377 and other Management Committees and OHS & Risk Management Manual outline the reporting and procedural requirements relating to Community Centre Annual General Meetings. Management Committees have signed an agreement with Council indicating a commitment to adhere to the contents of the Council adopted Procedures and Finance Manuals.

The following discussion provides an overview of the Community Centres and Halls Annual General Meetings and the financial position of the various Community Centres and Halls.

AGM Dates and Venues

All annual general meetings for 2009 were held in the month of September consistent with the requirement established in the Community Centres and Halls Procedures Manual and Council resolution (refer Report No CC92/05). All AGM's scheduled were held at the community facility managed by the Committee holding the meeting.

AGM Quorums and Committee Numbers

Council's Procedures Manual for Community Centres and Halls along with Council’s resolution in respect of Report No CC92/05 requires that Section 377 Management Committees operate with a committee of no less than seven members. The Committee may be comprised of Councillors, members of the community or user groups of the specified Centre. A quorum is required to minimise conflicts of interest, pecuniary interests, nepotism and to ensure cross community representation on the committee.

At their AGM’s, Glenorie Community Centre, West Epping Community Centre and Cowan Community Centre were all unable to attract a minimum of seven committee members with six and five and six members (respectively) willing to participate on the management committee.

In the case of West Epping, only five people were present at the meeting. This resulted in the AGM being cancelled as the AGM quorum of seven people was not available to conduct the meeting. As a result of this, and combined with management committee concerns for their personal liability, the committee vacated their positions and indicated that they no longer wanted to participate on the management committee. Correspondence has since been received by Council formally indicating this position. It is reasonable to summarise that the West Epping Management Committee expressed significant disappointment in not being able to continue to operate as a delegated committee of Council. It is recommended that Council officially accept the management of this facility (West Epping Community Centre) subject to funding being allocated to achieve the same.

(N.B. Report No CC46/09 raised ongoing issues associated with the funding of the management of community centres. The matter of funding the administration of community centres is dealt with later in this Report.)

In relation to Glenorie Community Centre and Cowan Community Centre, these management committees indicated a willingness to continue with the management of these facilities despite not meeting the quorum number required by the Procedures Manual. As such, Council needs to consider whether or not the management of these facilities should continue outside of the established standards or whether the model of management needs to change to reflect the inability of appropriately constituted committees to form. In considering this issue, Council should take into account the historical performance of management committees detailed above in respect of compliance with agreed performance standards.

Officer Elections, Multiple Committee Roles and Conflicts/Interests

Whilst the majority of community centre management committees were able to attract interested community members to the annual general meetings, there remains a trend toward fewer individuals taking executive and committee roles on voluntary management committees (see Report No CC92/05 for more details and Report No CC105/08 for an update on this issue from the Management Committee AGM Report of 2008). This trend has resulted in individuals holding multiple roles on executive roles on committees. In 2009/10, the following Committees have one member filling the multiple executive positions listed:

• Beecroft Community Centre - Treasurer and Booking Officer (voluntary)

• Cowan Community Centre – Secretary and Treasurer (voluntary)

• Glenorie Community Centre – Chairperson and Treasurer (voluntary)

• Mt Kuring-gai Community Centre - Treasurer and Booking Officer (voluntary)

• Roselea Community Centre - Secretary and Booking Officer (paid)

Historically, Council has taken no action in relation to individuals holding multiple executive positions due to an understanding of the voluntary commitment that community members make to the operation of a community facility. The matter is now raised as a concern, however, given the degree of non-compliance with the requirements of the Existing 377 Management Committee with Significantly Improved Performance model of management. A committee with lower numbers of volunteers is considered less likely to meet performance targets in relation to implementing the above model. However, this is not to say that the abovementioned committees were those that did not meet agreed performance standards.

At the Gumnut Community Centre AGM, a management committee of eight people was elected. The Chairperson, Secretary, Treasurer and four committee members indicated that they represent the predominate hirer of the facility. Given that a quorum of seven members is required to avoid such a situation occurring, it may be considered that having seven committee members from the one group is not consistent with the intent of the quorum policy as it does not protect against the issues detailed above in the section on AGM Quorums and Committee Membership.

At the Epping Creative Centre AGM, the committee received no nominations for the role of Secretary and, therefore, the position remains vacant. The position of Secretary is vital to the success of the committee, and is responsible for maintaining appropriate committee records and liaising with Council. The absence of a volunteer in this position is likely to contribute to difficulties in meeting reporting requirements on KPIs.

The Cherrybrook Community and Cultural Centre Management Committee advised Council that only six members were nominated to the Management Committee at the AGM. It is noted that a seventh member has since been recommended and has now formally accepted that nomination.

In summary, of the 14 community centres managed by voluntary management committees, eight centres (including West Epping) can be considered to be not meeting the quorum and committee membership standards articulated in the Procedures Manual. This result, which is consistent with trends from previous years, calls into question the sustainability of volunteer Section 377 Management Committees and their capacity to manage community facilities at the standards required by Council in accordance with the Finance and Procedures Manual. This issue is raised despite the significant commitment of a number of individuals to manage these facilities on an ongoing basis.

Financial Position of Community Centres

The table below indicates the financial position of Community and Cultural Facilities as at 30 June 2009, as reported at their AGM's for the 2008/09 financial year. These financial results have not all been audited. Those that have not been audited have been submitted to Council's Financial Services Branch for review.

CENTRE	INCOME	EXPENDITURE	PROFIT/LOSS	CASH BALANCE
Beecroft	$17,294	$13,035	+ $4,259	$156,773
Cherrybrook	$34,274	$20,699	+ $13,575	$15,890
Cowan	$3,639	$1,660	+ $1,979	$7,563
Dangar Island	$1,178	$382	+ $797	$3,341
Epping	$93,858	$61,846	+ $32,012	$168,579
Epping Creative	$28,888	$10,542	+ $18,346	$32,446
Galston	$26,628	$32,876	- $6,248	$38,458
Glenorie	$3,547	$2,815	+ $732	$26,362
Gumnut	$23,444	$10,374	+ $13,070	$81,799
Mt Kuring-gai	$16,223	$11,817	+ $4,405	$92,183
Pennant Hills	$111,313	$78,344	+ $32,969	$231,895
Roselea	$73,099	$78,406	- $5,307	$95,715
Thornleigh	$62,229	$66,983	- $4,754	$38,628
West Epping	$13,470	$12,354	+ $1,116	$76,207

It should be noted that, generally, the accumulation of surplus funds is a strategic management process employed by community centre management committees to ensure that major capital works for the community centre can be funded in a timely manner. This can include capital projects and/or improvements which would ordinarily be provided out of Council's budget but are unable to be undertaken due to the limited availability of funds.

The majority of projects under consideration by the Community Centre Management Committees require Committees to raise funds over time in order to accumulate enough money to cover the costs of works. Such projects include the construction of car parking facilities at Beecroft Community Centre, the installation of air conditioning and refurbishment of toilets at Epping Community Centre and refurbishment of Pennant Hills Community Centre. The matter of accumulated funds was considered by Council in Report No CC26/08.

As part of its discussion about this matter, the Community, Cultural and Recreation Facilities Task Force requested that this Report contain an update (beyond 30 June 2009) on the funds currently held by Section 377 Management Committees. In this regard, the table below provides the most up to date balances that Council has for each Management Committee, noting that West Epping Community Centre is now managed by Council.

Centre	Balance as of:	Balance:
Beecroft	February 2010	$161,632
Cherrybrook	December 2009	$19,561
Cowan	January 2010	$11,920
Dangar Island	September 2009	$3,329
Epping	December 2010	$175,413
Epping Creative	September 2009	$39,344
Galston	February 2010	$93,062
Glenorie	June 2009	$26,362
Gumnut	December 2009	$86,554
Mt Kuring-gai	June 2009	$92,183
Pennant Hills	December 2009	$225,851
Roselea	January 2010	$77,725
Thornleigh	December 2009	$38,270

________________________________________

PART 3 – Options for meeting the objectives of the Morrison Low Management Review of Community Centres and Halls.

In response to Part 1 and Part 2 of this Report, Council’s Community, Cultural and Recreation Facilities Task Force requested the Community Services Branch to reflect on the outcomes of both the review of the Community Centre Management Models and the outcomes of the 2009 Annual General Meetings, in order to provide options for an appropriate way forward.

Part 1 of this Report has documented actual performance standards by management committees against agreed performance standards as articulated in the Finance and Procedures Manuals. In summary, performance standards have not been met in 11 of 14 cases and as such, it can be considered that the Existing 377 Management Committee with Significantly Improved Performance model of management has not delivered the desired outcome and appropriately managed Council’s exposure to risk in the operation of community facilities.

In reporting on the outcomes of annual general meetings and committee appointments, Part 2 of this Report has pointed towards a dwindling number of volunteer committee members leading to inappropriately constituted committees, has outlined the passion and commitment of remaining committee members, and reflected on the possible link between low volunteer numbers and the achievement of performance targets. Specific centres have not been named in relation to substandard performance out of respect for the commitments made by community volunteers and also to avoid the suggestion that some centres have let other centres down in the implementation of the model.

Whilst there are many positive benefits of having voluntary members of the community manage community facilities, the core purpose of the review of the management model of community centres and halls undertaken by Morrison Low in 2004 was to manage, as much as possible, Council’s exposure to risk in the operation of community facilities. To this end, the Procedures and Finance Manual were developed and adopted by Council. The volunteer management committees signed an agreement with Council to operate the community facilities in accordance with these requirements. Unfortunately, these agreed standards have not been met by a significant percentage of management committees (11 of 14 committees).

There are inherent levels of risk involved in offering a community facility for use to the community. The important issue at question is whether or not appropriate risk management processes are in place to manage these risks. In adopting the Existing 377 Management Committee with Significantly Improved Performance model of management, Council accepted that the management committees, given the appropriate structure and support, were capable of managing the risks associated with operating community facilities on behalf of Council. This Report indicates that, despite the best efforts of staff and volunteer management committee members, the agreed performance standards are not being met in a significant proportion of cases.

The efforts made by the committees to meet the agreed standards are all appreciated and it is assumed that committees made their best effort to meet agreed goals. Council appointed a Committee and Facility Liaison Officer for the purpose of assisting Management Committees to meet their obligations. As stated above, three committees met the agreed standards. This suggests that the performance targets were reasonable. It is alluded to above that there is a correlation between the existence of paid staff, such as booking officers or caretakers, and management committees meeting the requirements of the Finance and Procedures Manuals. Without providing a public commentary on the performance of each individual committee, it is suggested that it is not a deficit in the skill or commitment of volunteer management committee members that has resulted in the outcomes described above, but merely the availability of the necessary time to achieve the required tasks. Paid officers assist in ensuring the availability of time to undertake the required tasks. Any future management model should address the issue of available time of volunteers.

Council’s Community and Cultural Facilities Strategic Plan, adopted at the November Ordinary Meeting 2009 following Council’s consideration of Report No CC91/09, provides a framework within which the management of these facilities may be undertaken in the future. The document provides a foundation upon which further investigation may be undertaken and specific facility strategies may be developed. The Plan recommends:

§ Council review the management model of community and cultural facilities to ascertain the efficacy of the Morrison Low Management Review 2004

§ Council review the provision of community facilities in rural areas to ascertain if all facilities are required.

§ Council make available Leisure and Learning Centres for use by all community members regardless of their age, noting that people over the age of 50 should retain priority usage of these facilities and retain the current level of subsidised fee structure.

§ Council review the provision of community space offered under lease license arrangement to the community with a view to rationalising these assets where appropriate

§ A report be prepared for Council’s consideration in relation to funds allocated for asset maintenance and asset renewal with the view to addressing long term issues associated with the provision of community buildings.

The attachment to this Report seeks to address recommendation 1 of the Plan by providing a number of options for future management of community facilities for consideration. It is noted that these future management options were provided to the Community, Cultural and Recreation Facilities Task Force for consideration during the period September 2009 to February 2010.

Following its consideration of the options contained in the attachment, the Task Force favoured Option 4 (i.e. Council undertake the centralised management of all community and cultural facilities in the network) and asked that a report be submitted to Council for consideration. In forming their view, the Task Force believed that Option 4 would provide the opportunity to:

· Manage Council’s, ratepayers and centre users exposure to risk in the operation of community facilities by ensuring that agreed performance standards are met

· Take advantage of the new online reservation system that will allow centralised telephone and online bookings for all community centres – thereby enhancing customer service for the community. (N.B. Online bookings would be available 24 hours per day with telephone bookings available during business hours for all facilities. This contrasts with the current situation whereby booking officers are available during limited hours dependent upon their casual or part time employment status)

· Create a priority capital works program for the network of community facilities that utilises network wide resources to fund priority projects according to community demand

The Task Force noted that a centralised telephone and online booking system cannot operate in a decentralised fashion whereby individual centre booking officers continue to take bookings. It is also noted that a network wide priority based capital works program cannot be undertaken whilst each management committee hold funds derived from revenue generated by the centre that they manage. Funds must be pooled and the priority issues considered across the Shire in order to have less financially enabled facilities upgraded to similar levels as those centres with stronger finances. This approach results in a better quality of facility, on average, across the Shire, rather than a few stand out quality facilities operated by those committees that can afford it.

In addition to the above, the Task Force is of the view that:

· Members of the existing management committees should be invited to participate on a centre based advisory committee

· Council officers should be required to consult with each advisory committee about capital work projects for their centres on an annual basis - or more often if required

· Quarterly progress reports should be provided to Council outlining capital work project requests submitted by advisory committees together with those approved to progress

· Current committee bank account balances and future revenue generated by community centres should be allocated to a Council internally restricted asset account and ensure that those funds are only spent on the upgrade, management and maintenance of community centres

The Task Force also requested that, in preparing the report for Council’s consideration, information be provided on the differences which exist between an Advisory Committee approach and the current Section 377 Management Committee approach. This information has been prepared and is attached for Council’s information.

From a Council officer perspective, taking no action in relation to the lack of compliance with agreed performance standards is not an option given that OH&S matters carry a personal liability in NSW. If Council is not supportive of the outcome of the Task Force’s discussions, Council is strongly encouraged to consider levying all Section 377 Management Committees for the cost of having the OH&S inspections undertaken on behalf of the Committees. This will, at a basic level, manage the exposure to personal risk for all parties – including hirers of the facilities.

This approach will not address the Task Force’s desire for a centralised booking process and it will not address the identified need for a Shire wide approach to asset management for community facilities. It is anticipated that the above approach will cost approximately $55,000 per annum. Council would need to determine how to best allocate the costs of this approach between centres. It is suggested, however, if costs are divided equally between centres, it would not be affordable in the longer term for a number of the smaller community centres.

The other outstanding issue that requires a response in some form, is the impost that the additional community centres that Council has recently accepted management of, specifically the Brooklyn Community Meeting Room (a new centre with an Advisory Committee) and West Epping Community Centre (without an Advisory Committee). Report No. CC46/09 resolved, amongst other things, that:

5. In consultation with the Community, Cultural and Recreation Facilities Task Force, a report be prepared for Council’s consideration which details the 12 month review of the implementation of the “Existing 377 Model of Management with Significantly Improved Performance”. This report is to include considerations in relation to the resource implications associated with Council’s ongoing management of new community meeting spaces across the Shire.

The resources required to manage these additional two facilities can be accommodated within the funding model outlined in Option 4. However, with the adoption of any other option listed in Attachment 1, resources will need to be allocated to support the functioning of the additional two centres now managed by Council. It is anticipated that this will amount to approximately $20,000 per annum. Options for sourcing these funds could be either general revenue; levying a fee on Section 377 Management Committees for the operational support provided to them (noting that an officer is employed specifically to support the Section 377 Committees and Advisory Committees), thereby freeing up funds to be spent on managing the additional two centres; or adopting Option 4 as the preferred management model.

Feedback from Section 377 Management Committees Reference Group

Council should note that the matter of a future management model for community facilities was discussed at the December 2009 and February 2010 meetings of the Section 377 Management Committees Reference Group. At these meetings, committee representatives were given information on the management models which were being considered for community facilities. At the February 2010 meeting, the Reference Group voted on their preferred model of future management. Nine of the (now) 13 Section 377 Management Committees were represented at this meeting. Those committees not represented were Cowan Community Centre, Cherrybrook Community Centre, Gumnut Community Centre and Epping Creative Centre.

In considering the four management options detailed in Attachment 1:

· All present voted against Option 1 - which could be described as the status quo with additional support provided to management committees

· Seven committees voted in favour of Option 2 - which is where Council resumes management of centres that are unable to form a quorum

· One committee voted in favour of Option 3 – which is where Council resumes management of Centres not meeting quorum requirements and not meeting KPI requirements

· All management committees present voted against Option 4 - which is where Council resumes management of all facilities

· One committee (Dangar Island) abstained from voting.

From these results, it can be considered that at least eight of the 13 management committees are supportive of change in Council’s approach to the management of some community facilities. To this end, seven committees believe that inappropriately constituted committees should not continue to operate.

Attachment 1 to this Report, which was also provided to the Section 377 Management Committee Reference Group for comment, nominates that there are four centres directly affected by adopting Option 2. Those centres affected are Cowan Community Centre, Epping Creative Centre, Gumnut Community Centre and West Epping Community Centre (who have already handed back facility management to Council). Further to this, the nomination of one individual to multiple executive positions on management committees, suggests that there is possibly a problem with quorums at Roselea Community Centre, Beecroft Community Centre, Glenorie Community Centre and Mt Kuring-gai Community Centre. It is noted that Part 2 of this Report suggests that there is link between low volunteer numbers and compliance with KPI standards.

Council is encouraged to consider the feedback from the Section 377 Reference Group in making its decision on the future management of community facilities. In this regard, and apart from that detailed above, further feedback from the Section 377 Management Committee Reference Group indicates that only one of the nine centres represented at the Group’s February 2010 Meeting indicates a preference for Council acting on non-compliance with established and agreed Key Performance Indicators.

BUDGET

Budgetary issues are discussed within the body of this Report and the attachments and will vary depending upon the preferred option adopted. Option 4 can be accommodated within the existing resources contained within the network.

POLICY

There are no policy implications associated with this Report.

CONSULTATION

There has been consultation in the preparation of this Report with the Section 377 Management Committee Reference Group and the Community, Cultural and Recreation Facilities Task Force.

TRIPLE BOTTOM LINE SUMMARY

A Triple Bottom Line assessment is not required of this Report.

RESPONSIBLE OFFICER

The responsible officer is Mr David Johnston, Manager - Community Services Branch. For further information please contact Council’s Coordinator, Community and Cultural Facilities Ms Samantha Colbert on 9847 6548, Monday to Friday 9.00 am to 5.00 pm.

RECOMMENDATION

THAT:

2. Council acknowledge and thank volunteer members of management committees for their contributions to the management of their community centres and halls in the 2008/09 financial year.

4. The handover of all facilities from Section 377 Management Committees to Council take place within a 12 month period.

6. The delegations for the various Section 377 Management Committees be withdrawn as the handover of facility management occurs between Management Committees and Council.

7. Existing Section 377 Management Committees be invited to form Advisory Committees for their particular Centre.

10. Council staff proceed with the necessary arrangements to centralise a telephone and online booking system for all community and cultural facilities as a priority project.

11. The Community, Cultural and Recreation Facilities Task Force receive regular updates in respect of the progress of the hand over to Council of each facility.

David Johnston

Manager - Community Services

Corporate and Community Division

Gary Bensley

Executive Manager

Corporate and Community Division

Attachments:

1.View	Options for Future Management of Committees
2.View	Description of Model of Management

File Reference: F2004/06390

Document Number: D01244091

Executive Manager's Report No. CC11/10

Corporate and Community Division

Date of Meeting: 17/03/2010

4 INVESTMENT AND BORROWING REPORT - PERIOD ENDING JANUARY 2010

EXECUTIVE SUMMARY

Council is provided with a monthly report summarising current general economic conditions which may have an impact on investment returns. The report includes a schedule detailing Council's investments and borrowings and highlights the monthly and year to date performance of the investments. In this regard, investments are generally held for the medium to long term.

This Report indicates that the total investment income for the period ending January 2010 was $846,000 compared to the 2009/10 budgeted income for the same period of $525,000. Of the year to date investment income earned, 32% relates to externally restricted funds such as Section 94, and is required to be allocated to those funds.

In line with advice provided to Council at the February 2010 Ordinary Meeting (refer Report No CC2/10), a review of CDO investments was undertaken to determine opportunities which existed for the reinvestment of available funds in other relevant products. Two CDO products in particular (Cargo and Endeavour) were reviewed as they had experienced improved valuations, due to some recovery in credit markets, which could be realised in the financial markets. The Finance and Strategy Task Force, at its February 2010 meeting, indicated its support in proceeding to sell the CDO’s Cargo and Endeavour in line with offers available at the time. This will reduce Council’s exposure to CDO products.

PURPOSE/OBJECTIVE

The purpose of this Report is to advise Council of funds invested in accordance with Section 625 of the Local Government Act; and details as required by Clause 212(1) of the Local Government (General) Regulation 2005 and Council's Investment Policy and Strategy (most recently reviewed by Council at its 8 April 2009 Ordinary Meeting).

DISCUSSION

Council's Investment Performance - January 2010

• The At-Call and Term Deposits achieved an annualised return of 4.83% for the month compared to the benchmark of 3.75%.

• NSW T-Corp Long Term Growth Facility achieved a marked to market return of negative 30.94% for the month compared to the benchmark of negative 30.73%. This fund has a 70% allocation to growth assets. Short term performance is expected to be volatile and the investment should be viewed over the longer term.

• Floating Rate Notes (FRNs) are bonds that have a variable coupon equal to a money market reference rate. This FRN investment achieved an annualised return of 6.15% for the month compared to the benchmark of 4.16%.

• Direct investments in CDO’s achieved an annualised return of 4.47% for the month compared to the benchmark of 4.16%.

• The Capital Guaranteed Notes achieved an annualised return of 0.26% for the month compared to the benchmark of 4.16%. Due to poor performance over recent months the Capital Protected Notes coupons, with the exception of the Longreach PIU Fund, have not been accrued.

• For total investments, the annualised return for the month is 2.73% compared to the benchmark of 2.80%; and the year to date return after fees is 3.92% compared to the benchmark of 3.85%.

In respect of CDO’s, Report No CC2/10 was considered by Council at the February 2010 Ordinary Meeting and provided advice about a review being undertaken which could lead to a decision to reinvest available funds in other relevant products. The review assessed two CDO products known as Cargo and Endeavour as they had experienced improved valuations, due to some recovery in credit markets, which could be realised in the financial markets. In consultation with Council’s Investment Advisor it was considered prudent for Council to reduce its risk and sell these products. At its February 2010 meting, the Finance and Strategy Task Force indicated its support in proceeding to sell the CDO’s Cargo and Endeavour in line with the offers available at the time such that it would reduce Council’s exposure to CDO products. The prices received were 83.1 cents in the dollar for the CDO Cargo and 65.25 cents in the dollar for the CDO Endeavour.

Economic/Financial Conditions

Statement by Glenn Stevens, Governor: Monetary Policy Decision - 2 February 2010

At its meeting today, the Board decided to leave the cash rate unchanged at 3.75 per cent.

The global economy is growing, and world GDP is expected to rise at close to trend pace in 2010 and 2011. The expansion is still likely to be modest in the major countries, due to the continuing legacy of the financial crisis, resulting in ongoing excess capacity. In Asia, where financial sectors are not impaired, recovery has been much quicker to date, though the Chinese authorities are now seeking to reduce the degree of stimulus to their economy. Global financial markets are functioning much better than they were a year ago. Credit conditions nonetheless remain difficult in the major countries as banks continue to face loan losses associated with the period of economic weakness. Concerns regarding some sovereigns have increased.

In Australia, economic conditions have been stronger than expected, after a mild downturn a year ago. The effects of the fiscal stimulus on consumer demand have now faded, but household finances are being supported by strong labour market outcomes and a recovery in net worth. Public infrastructure spending is now boosting demand, as is an upturn in housing construction. Investment in the resources sector is strong. The rate of unemployment appears to have peaked at a much lower level than earlier expected.

Inflation has, as expected, declined in underlying terms from its peak in 2008, helped by the fall in commodity prices at the end of 2008, a noticeable slowing in private‑sector labour costs during 2009, the recent rise in the exchange rate and a period of slower growth in demand. CPI inflation has risen somewhat recently as temporary factors that had been holding it down are now abating. Inflation is expected to be consistent with the target in 2010.

Credit for housing has been expanding at a solid pace, and dwelling prices have risen significantly over the past year. Business credit, in contrast, has continued to fall, as companies have sought to reduce leverage, and lenders have imposed tighter lending standards and in some cases sought to scale back their balance sheets. The decline in credit has been concentrated among large firms, which generally have had good access to equity capital and, more recently, to debt markets; credit conditions remain difficult for many smaller businesses.

With the risk of serious economic contraction in Australia having passed, the Board had moved at recent meetings to lessen the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker. Lenders have generally raised rates a little more than the cash rate over recent months and most loan rates have risen by close to a percentage point. Since information about the early impact of those changes is still limited, the Board judged it appropriate to hold a steady setting of monetary policy for the time being.

Interest rates to most borrowers nonetheless remain lower than average. If economic conditions evolve broadly as expected, the Board considers it likely that monetary policy will, over time, need to be adjusted further in order to ensure that inflation remains consistent with the target over the medium term.

Borrowings

In respect of borrowings, the weighted average interest rate payable on loans taken out from 2000 to 2009, based on the principal balances outstanding, is 6.69%. The Borrowings Schedule, as at 31 January 2010, is attached to this Report.

BUDGET

Total investment income for the year to date ending January 2010 was $846,000. The budgeted income for the period was $525,000. Of the investment income, approximately 32% relates to external restrictions (Section 94) and is, therefore, restricted. A variation to the investment budget will be considered in the March 2010 Budget Review.

POLICY

All investments have been made in accordance with the Local Government Act, the Local Government (General) Regulation 2005 and Council's Investment Policy and Strategy.

CONSULTATION

Initial investments and reallocation of funds are made where appropriate, after consultation with Council's financial investment adviser and fund managers.

TRIPLE BOTTOM LINE SUMMARY

Triple Bottom Line is a framework for improving Council decisions by ensuring accountability and transparency on social, environmental and economic factors. It does this by reporting upon Council's strategic themes. As this Report simply provides Council with information and does not propose any actions which require a sustainability assessment, no Triple Bottom Line considerations apply.

Council's Investment Strategy does recognise, however, the desirability of "ethical" or "socially responsible" investments and has invested in such products in the last year. These are referenced in the Investment Portfolio in Attachment 1. Council will continue to review new products, subject to funds availability and asset allocation and credit quality parameters contained in the Strategy.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Manager, Financial Services - Glen Magus. He can be contacted on 9847 6635.

RECOMMENDATION

THAT the contents of the Executive Manager’s Report No CC11/10 be received and noted.

Glen Magus

Manager - Financial Services

Corporate and Community Division

Gary Bensley

Executive Manager

Corporate and Community Division

Attachments:

1.View	HSC Investment Portfolio as at 31 Jan 2010
2.View	HSC Borrowings Schedule as at 31 Jan 2010

File Reference: F2004/06987

Document Number: D01334599

Executive Manager's Report No. CC14/10

Corporate and Community Division

Date of Meeting: 17/03/2010

7 REVIEW OF HORNSBY MALL CODE

EXECUTIVE SUMMARY

At the 9 December 2009 Ordinary Meeting (see Report No CC94/09), Council resolved to adopt and publicly exhibit the revised draft Hornsby Mall Code for a minimum period of 28 days. Council also resolved that, following the expiration of the exhibition period, a further report including details of any submissions received, be provided for its consideration.

The revised draft Code was placed on public exhibition during January/February 2010 with an invitation for the community to lodge submissions concerning its contents by 5.00pm on Monday 22 February 2010. At the time of writing this Report a total of four submissions had been received.

This Report provides comments on the submissions received and recommends adoption of the revised draft Hornsby Mall Code incorporating amendments made following an assessment of the submissions.

PURPOSE/OBJECTIVE

The purpose of this Report is to provide details of submissions received in respect of the public exhibition of the revised draft Hornsby Mall Code and to seek Council's adoption of the revised draft Code incorporating changes resulting from an assessment of those submissions.

DISCUSSION

At the Ordinary Meeting held on 9 December 2009, Council considered Report No. CC94/09 - Review of Hornsby Mall Code - and resolved that:

1. The contents of Executive Manager’s Report No CC94/09 be received and noted.

2. Council adopt the revised draft Hornsby Mall Code, as attached to Executive Manager’s Report No CC94/09, for the purpose of public exhibition for a minimum period of 28 days.

3. Following the public exhibition period, a further report be prepared for Council's consideration providing details of any submissions received.

The revised draft Hornsby Mall Code was subsequently placed on public exhibition with an invitation for interested parties to lodge submissions regarding the draft Code by 5.00pm on Monday 22 February 2010. At the time of writing this Report, four submissions (two external and two internal) had been received. Three of the four submissions are included as Attachment 2 to this Report. The fourth submission, received from within Council, has not been included as an attachment as it only contains details of a number of minor typographical errors and seeks clarification in respect of certain parts of the document. The errors identified have been corrected in the amended Code which is included as Attachment 1.

Comments on Submissions

Submission One

Busking (Section B.2.1.k)

Busking is defined in the revised Hornsby Mall Code as “an entertainer, be it an individual or group who provides impromptu performances for the public by playing a musical instrument, dancing, singing, reciting, chanting, clowning or juggling, miming or doing acts of a similar nature.” Since adoption of the Hornsby Mall Code in 2001, busking has been a permissible activity within the Hornsby Mall providing enjoyment and entertainment to visitors and users of this important public space. This has also provided local musicians with a performance space to promote their musical and/or other entertainment talents at nominal cost. This submission has suggested that buskers be allowed to sell their own material on CDs. Officers believe that to allow buskers to sell their performance material on CDs represents a commercial activity and, as such, should only be allowed where a commercial activity permit has been obtained. In the circumstances, officers do not support amending this guideline of the revised Code.

Markets (Section B.3.3.(v) f) and g))

A Key Action under Strategy Six - A Hornsby Mall That Functions Well - contained within the adopted Hornsby Mall Strategic Management Plan (HMSMP) identified that a review of the provisions applying to permanent markets within the Hornsby Mall be carried out. The Strategy Six taskgroup, in undertaking a review of permanent markets, supported community feedback that the operation of more markets in the Mall should be encouraged. In addition, the taskgroup was also of the opinion that appropriate measures should be implemented to assist in minimising the impacts that an increase in market operations may have on existing businesses and visitors/users of the Hornsby Mall. Accordingly, the taskgroup considered that it would not be unreasonable to request a market operator to have regard to the needs of potential customers in terms of the availability of toilet facilities and car parking. The Strategy Six taskgroup has taken into account the comments provided in respect of these issues, and considers that Council’s overall objectives in terms of attracting more markets to the Hornsby Mall would not be adversely impacted by a minor amendment to this section of the Code. Such amendment would be to replace the existing paragraphs f) and g) with one single paragraph, such that the wording of the guidelines concerning toilet facilities and car parking under this activity reads as follows:

“A market operator shall ensure that access to appropriate toilet and car parking facilities is available on market days and that market customers are advised of relevant location/s”.

Markets (Section B.3.3.(v) e))

Taking into consideration the comments received in respect of this item regarding the difficulty in providing fire fighting equipment in a highly visible location, the Strategy Six taskgroup is of the opinion that Council’s interests would not be adversely impacted if this guideline was amended to read:

“A market operator shall ensure that suitable first aid and appropriate fire fighting equipment is provided on site during each market day and will ensure that all stallholders conducting a potential fire risk activity possess appropriate fire fighting equipment.”

Submission Two

Commercial Filming

Taking into consideration the comments provided in this submission about commercial filming, the Strategy Six taskgroup considers that this matter can be appropriately addressed through the inclusion of the following additional guideline under section C.2 Other General Guidelines of the revised draft Hornsby Mall Code:

“All commercial filming in the Hornsby Mall shall be undertaken in accordance with the Local Government Filming Protocol 2009, subject to appropriate applications and consents being obtained prior to any filming.”

Short Term Entertainment Events (Section B.2.11.d. xi. General)

The Strategy Six taskgroup undertook a review of the provisions applying to the leasing and licensing of public space for short term activities within the Hornsby Mall and supported community feedback that the operation of short term entertainment events in the Mall should be encouraged. The taskgroup considered that in an attempt to encourage greater use of the Hornsby Mall for short term entertainment events it would be necessary to amend and incorporate a number of favourable incentives within the Code. Feedback received during the community consultation phase in the development of the HMSMP indicated that restrictions placed on set up and pull down times had, in the past, created difficulties for events holders. Following discussions with a number of key event stakeholders appropriate guidelines were incorporated by the taskgroup into the revised Code to assist in attracting more short term entertainment to the Mall.

Having regard to the above, the taskgroup considers that this guideline should not be amended as suggested by this submission.

Short Term Entertainment Events (Section B.2.11.d. xi. General) Toilets and Carparking

As alluded to earlier within this Report, while the Strategy Six taskgroup encourages greater use of the Hornsby Mall for short term entertainment activities, there should also be safeguards to minimise the impacts that such activities may have on existing businesses and visitors/users to the Hornsby Mall. Accordingly, the taskgroup considers that Council’s overall objectives in terms of attracting more short term entertainment events to the Hornsby Mall would not be adversely impacted if the wording of the guidelines concerning toilet facilities and car parking under this activity was replaced by the following:

“A permit holder shall ensure that access to appropriate toilet and car parking facilities is available and that event participants are advised of relevant location/s”

Submission Three

A number of suggestions provided in this submission appear to relate to matters outside the parameters and guidelines of the revised Hornsby Mall Code. Comments about the submission have, therefore, been limited to those matters which relate directly to the operation of the Hornsby Mall Code.

As the Hornsby Mall was developed primarily for pedestrian use, officers are of the opinion that to allow activities such as bike riding and skateboarding, as suggested by the respondent, has undesirable safety implications for pedestrians. Accordingly, officers are not supportive of allowing such activities to be undertaken within the Hornsby Mall. The respondent’s comments concerning trees and seating are issues indentified within the HMSMP for consideration by the Strategy Four – A Beautiful Hornsby Mall – taskgroup in due course.

__________________________________

It is noted that during the public exhibition period, officers identified that certain minor amendments and additions were required to clarify a number of the guidelines set out in the revised draft Code. In addition, officers considered that some further enhancements should also be incorporated into the layout of the document. Accordingly for ease of reference officers have incorporated all proposed amendments to the revised draft Code in the document included as Attachment 1 with amendments shown in track changes.

Conclusion

Having regard to the comments provided above, it is considered that adoption of the revised draft Hornsby Mall Code, in line with the document included as Attachment 1 to this Report, will not only clarify and reduce ambiguity in respect of the requirements applying to activity users in the Mall, but also encourage greater use of this prime community space for the benefit of users and visitors to the Shire.

Schedule of Fees for Activities in the Hornsby Mall

As previously reported, the revised draft Hornsby Mall Code incorporates a number of additional guidelines to encourage wider activity use in the Hornsby Mall. At the 17 March 2010 meeting, Council will also consider Report CC15/10 which seeks approval to place Council’s Draft 2010/11 Fees and Charges on public exhibition. The document to be publicly exhibited incorporates a schedule of fees to apply to the various activities set out within the revised draft Hornsby Mall Code.

BUDGET

There are no budgetary implications associated with this Report.

POLICY

This report has consideration to Council's Public and Community Input Policy. No other Policies are affected by this Report.

CONSULTATION

The revised draft Hornsby Mall Code was placed on public exhibition in line with the protocols of Council’s Public and Community Input Policy for a minimum period of 28 days. Advertisements were placed in the Council column of the Hills News, Northern District Times and the Hornsby and Upper North Shore Advocate on 12, 13, 14, 19, 20, 21, and 28 January 2010 informing the community that the revised draft Code would be available for viewing at various locations, with an invitation for submissions to be lodged with the General Manager by the closing date of 22 February 2010.

Letters, attaching a copy of the revised draft Code, were also sent to the operator of the Organic Market in the Hornsby Mall and to Westfield Hornsby advising them of the public exhibition process and inviting lodgement of submissions by the closing date. A copy of the revised draft Code was also included on Council's intranet for the benefit and comment of staff.

TRIPLE BOTTOM LINE SUMMARY

The Triple Bottom Line is a framework for improving Council’s decisions ensuring accountability and transparency on social, environmental and economic factors. It does this by reporting upon Council’s strategic themes. If Council was to proceed with the recommendations proposed in the Report, Council’s endorsement of the revised Hornsby Mall Code would contribute to the following strategic themes:

· Society and Culture – enhance social and community well-being.

· Economy – vibrant local economy and sustainable resource use.

· Human Habitat - effective community infrastructure and services.

RESPONSIBLE OFFICER

The officers responsible for the preparation of this Report are the Manager, Administration Services Branch Mrs Robyn Abicair, and the Manager, Commercial Property Mr Rod Drummond who can be contacted on 9847 6608 and 9847 6589 respectively.

RECOMMENDATION

THAT:

1. The contents of Executive Manager's Report No. CC14/10 be received and noted.

2. Council adopt the Hornsby Mall Code, as shown in Attachment 1 to Report No. CC4/10, subject to the incorporation of the deletions and additions shown in track changes.

Rod Drummond

Manager - Commercial Property

Corporate and Community Division

Robyn Abicair

Manager - Administration Services

Corporate and Community Division

Gary Bensley

Executive Manager

Corporate and Community Division

Attachments:

1.View	Revised Draft Hornsby Mall Code November 2009
2.View	Submissions concerning the revised draft Hornsby Mall Code

File Reference: F2005/00289

Document Number: D01343476

Executive Manager's Report No. CC15/10

Corporate and Community Division

Date of Meeting: 17/03/2010

8 HORNSBY SHIRE COMMUNITY PLAN 2010- 2020, DELIVERY PROGRAM 2010 - 2014 AND OPERATIONAL PLAN INCLUDING BUDGET AND FEES AND CHARGES 2010/11 - ADOPTION OF DRAFT DOCUMENTS FOR PUBLIC EXHIBITION

EXECUTIVE SUMMARY

Hornsby Shire Council, in moving towards the Division of Local Government’s (DLG) Integrated Planning and Reporting Framework, has undertaken its business planning processes using the DLG Framework. The outcomes are documented in the draft Hornsby Shire Community Plan 2010 – 2020, draft Delivery Program 2010 – 2014, including Operational Plan 2010/11 which incorporates the Budget and Fees and Charges for 2010/11. Copies of the draft documents will be provided under separate cover.

The Hornsby Shire Community Plan 2010 - 2020 is the highest level Council plan and it sets the direction for where the people of the Shire want to be in 2020. The draft Delivery Program 2010 – 2014 is Council’s response to the aspirations in the Community Plan. The Delivery Program includes the annual Operational Plan and contains detail regarding the proposal to seek a special variation to general income (an infrastructure levy) of 5.8%, to be implemented in July 2010 for a term of 20 years, to address the major issue facing the Shire of ageing infrastructure.

Budget information is provided at the organisational level as well as at Branch levels, in a format comparable to the statutory General Purpose Financial Reports. Supporting information includes an expanded Rating Statement both with and without the proposed infrastructure levy. Constraints in preparing the Budget are also identified.

The draft Delivery Program 2010 - 2014 and Operational Plan 2010/11 are based on the announced rate increase of 2.6%. This is less than the percentage increase required for financial sustainability particularly in light of the increasing costs of materials such as oil and bitumen and increased street lighting charges well above the rate pegging allowance. It is also below the expected increase in costs of major expenditure items and places considerable pressure on council's ability to maintain services at existing levels.

The draft 2010/11 Annual Budget provides for an estimated surplus of $19,940.

Following Council's adoption of the draft Hornsby Shire Community Plan 2010 – 2020, draft Delivery Program 2010 -2014 and Operational Plan 2010/11 and incorporated documents, the documents will be exhibited for comment from 18 March to 19 April 2010. The exhibition period allows members of the public, as well as Councillors and staff, to make submissions in respect of the contents of the draft documents, including the proposed infrastructure levy.

At the conclusion of the public exhibition period, all submissions regarding the draft documents will be referred to Council for further consideration and adoption.

PURPOSE/OBJECTIVE

The purpose of this Report is to present to Council for adoption for the purpose of public exhibition, from Thursday 18 March to Monday 19 April 2010, the draft Hornsby Shire Community Plan 2010 – 2020, draft Delivery Program 2010 – 2014, including Operational Plan 2010/11 which incorporates the Budget and Fees and Charges for 2010/11.

DISCUSSION

Hornsby Shire Council is moving towards the Division of Local Government’s (DLG) Integrated Planning and Reporting Framework. At its essence, the Framework encourages councils to undertake longer term thinking and planning based on community aspirations for the future.

In the past, Council’s management planning processes focussed on Council’s ability to provide services in the medium (3–4 year) term based on Council’s financial and professional knowledge. The Integrated Planning Framework approaches management planning from the paradigm of community aspirations and preferences. It requires that the community be presented with the key issues and challenges facing the Shire in order that the community can have deliberative input into how Council, other government agencies and the community will respond to those issues and challenges. The aspirations of the various communities that make up the Shire are contained in the ten year Community Plan. Council’s response is documented in the four year Delivery Program and the annual Operational Plan which contains the Budget.

Draft Hornsby Shire Community Plan 2010 –2020

The draft Hornsby Shire Community Plan 2010 – 2020 represents a strategy for the future of Hornsby Shire. It is the highest level Council plan and it sets the direction for where the people of the Shire want to be in 2020. The Hornsby Shire Community Plan is the outcome of many consultations held in the second half of 2009 and the first half of 2010. The consultations were designed to ensure that all groups and various geographical areas of Hornsby Shire had opportunities for consultation and engagement. The draft Community Plan is presented as both a 32 page document and a summary brochure.

Draft Delivery Program 2010 – 2014

The draft Delivery Program 2010 – 2014 is Council’s response to the aspirations in the Community Plan. The Delivery Program describes the principal activities to be undertaken by Council to implement the outcomes desired by the community. It also contains the resources required to fund the activities and the performance indicators to measure the success of those activities. Incorporated into the draft Delivery Program is the annual Operational Plan (including budget) for 2010/11. The proposed Fees and Charges for 2010/11, although presented as a separate document, are an integral part of the resourcing strategy that enables the Delivery Program to be executed.

The draft Delivery Program also contains detailed information regarding Council’s proposed infrastructure levy including a rating statement with and without the levy, the rationale for the application to the Minister for Local Government and the capital works proposed to be funded by the proposed infrastructure levy.

The Budget for 2010/11

Council staff commenced preparation of the 2010/11 Budget in December 2009 on receipt of Budget parameters approved by Council’s Executive Committee (ExCo).

To minimise some of the impacts of the constraints and considerations outlined later in this Report, and to avoid excessive demands which could not be met, the parameters approved by ExCo included:

· A nil increase to Divisional expenditure (net of direct labour). As a consequence, this means that those activities that do not have a direct labour component have had their allocations frozen at the same dollar amount for the past five budgets. This cannot continue without adversely impacting on service delivery.

· The use of Council staff where possible to undertake Section 94 Development Contributions projects and other funded projects.

· New projects to be included in phase-up requests rather than be included in the draft Budget.

· Direct salaries and wages to include an estimated 3% increase from November 2010 (Local Government Award related) and calculated on 50 pay weeks. The two week reduction represents organisational savings which occur as a result of the average delay in replacing staff members who retire/resign/etc and/or productivity improvements that are required. On the announcement of the rate pegging allowance the estimated labour increase was decreased from 3% to 2.6%.

· An anticipated rate increase of 2.9% - noting that the Minister for Local Government announced the rate increase of 2.6% on 13 February 2010.

In order to maintain tight control over expenditure levels in the budget process, advice was provided to budget managers that no increase was able to be applied to operating budget material and contract expenditure. This was despite substantial price increases, particularly for construction materials. Any increase has been required to be offset by productivity improvements, service reductions or increased fees.

An informal Councillor workshop was held on Wednesday 24 February 2010 to review the format and intent of the draft Community Strategic Plan 2010 – 2020 and the draft Delivery Program 2010 – 2014, including the Operational Plan. This workshop enabled Councillors to review the draft 2010/11 Budget details. Councillors assessed the financial position taking into account service delivery commitments, the Long Term Financial Plan and the key challenges posed by ageing infrastructure. Councillors noted the significant unfunded capital programmes in excess of the phase-ups referred to above e.g. Hornsby Aquatic Centre, replacement of the pedestrian bridge over George Street, the need for additional sports fields, the Brickpit Sports Stadium and drainage enhancements.

The current draft Budget for 2010/11, shows a surplus of $19,940. The financial constraints referred to above required considerable effort from staff and Councillors in order to achieve this result.

The most significant of initiatives to provide a balanced 2010/11 Budget involve:

· The review of services to achieve a minimum reduction in expenditure of $620K. The consequences of this review cannot be determined at this stage, but staff and the community will be informed of the decisions that may affect them.

· Operational expenditure budgets reduced by $250K. This has involved reducing items such as printing, stationery, subscriptions, publications, postage, catering and other miscellaneous expenses.

An important project associated with the preparation of the 2010/11 Budget has been the Long Term Financial Plan covering a ten year period. This document contains detailed financial information in respect of Council’s key financial statements and an assessment of key financial performance indicators covering a ten year period.

Fees and Charges

Fees have been reviewed and increased by CPI or by an amount which has had regard to market conditions and the appropriate cost recovery level. Opportunities to recover administrative and overhead costs in respect of business activities have also been investigated and implemented where appropriate. Where applicable, the final price includes GST which does not contribute revenue to Council but is forwarded to the Federal Government.

Loans

The Budget includes loan proceeds of $2 million which is the same amount as in 2009/10. Prior to 2007/08, Council had an annual loan programme of $1 million. For each $1 million borrowed, Council is required to apply approximately $160,000 from future year’s budgets towards debt servicing. The estimated debt servicing requirement is based on Council taking out a loan for a 10 year period and making equal principal and interest repayments over the term of the loan.

$1 million of the loan proceeds for 2010/11 is proposed to be used to fund the Local Road Improvement Programme. Council's policy on loan borrowings allows for loan funds to be utilised for funding capital projects where intergenerational equity is provided to ratepayers e.g. libraries, roads, flood mitigation projects etc. The Local Road Improvement Programme meets this objective.

The additional $1 million of loan borrowings for 2010/11 is proposed to be used to upgrade specific infrastructure assets. Infrastructure replacements and upgrades were recommended in the Independent Inquiry into the Financial Sustainability of NSW Local Government published in 2006 (the Allan Report).

An infrastructure levy

Based on community feedback from extensive engagement and consultation activities the Councillors, at a workshop in February, confirmed their intent to seek approval from the Minister for Local Government for a special variation to general income of 5.8% above the rate peg to improve Hornsby’s ageing infrastructure and build new facilities to meet the changing needs of the community.

The special variation proposed is 5.8% of the combined Ordinary (residential, farmland, business and CBD business) Rate and the Catchments Remediation Rate. The term of the special variation to general income is 20 years in order to align with the proposed loan period and be less than the anticipated life of the new and improved assets funded by the special variation. If approved, the special variation to general income would be known as an infrastructure levy, and commence in July 2010 for 20 years.

The purpose of the proposed infrastructure levy would be to fund the three priority projects of:

· Replacement of the Hornsby Aquatic Centre

· A new pedestrian overbridge across George Street

· The provision of additional passive and active recreation space at Old Mans Valley

Councillors also recognised the community desire to nominate ward specific projects and, therefore, proposed the total allocation of $1,500,000 per ward in the first two years of an infrastructure levy. The projects to be funded would be determined by ward Councillors in collaboration with their constituents and according to project assessment criteria which would include triple bottom line principles and take account of ongoing financial and maintenance implications. Local projects suggested by the community include:

· Extension to the Brickpit Stadium

· Stormwater drainage improvements

· Upgrades to Epping and Galston pools

· Improvements to community buildings

· Footpath upgrades

· Improved disabled access

· Town Hall/Performing Arts Centre

· Learn to swim facility at Berowra

· Bike and skateboard parks

· Bike tracks and trails

· Improvements to amenities at local ovals

· Upgrades to playgrounds

Councillors are aware of the financial burden for pensioners and, therefore, propose a $10 rebate for pensioners and others eligible for financial relief in accordance with Council’s Hardship Policy.

If the special variation is approved, Council will report progress in a variety of ways, including in the Annual Report to the Community and on Council’s website, so that those with an interest are able to easily find the information and make comment.

Community comment and feedback regarding the proposed infrastructure levy has been collected and collated since January 2010 in order to provide the Minister for Local Government with valid data reflective of community opinion. Submissions received during the proposed further exhibition period from 18 March to 19 April 2010 will be included in the data forwarded to the Minister at the end of the exhibition period.

Rating Structure

Council most recently reviewed its rating structure at the April 2006 Ordinary Meeting via Report No CC20/06 and that structure has applied in respect of the calculation of the 2006/07, 2007/08, 2008/09 and 2009/10 rates. It is recommended that the same rating structure continue in 2010/11.

Details of the rate types and yields, rating categories, base amounts, minimum rates for business properties, ad valorem amounts and other statutory rating information are set out in the draft Delivery Program document. The rating information is based on the 2.6% rate increase announced by the Minister for Local Government on 13 February 2010.

The base amount for ordinary residential and farmland rates will increase from $390 in 2009/10 to $425 in 2010/11. The Valuer General supplied Council with new land values for properties across the Shire as at 1 July 2008. These values will be used for three financial years i.e. for 2009/10, 2010/11 and 2011/12.

In respect of the Catchments Remediation Rate and the Hornsby Quarry Loan Rate, the increased income for 2010/11 represents the application of the 2.6% rate increase.

Council established its intent to seek a special variation to general income of 5.8%, which if approved, will commence in July 2010. The term of the special variation will be 20 years. The purpose of the special variation is to fund improvements to the ageing infrastructure and build new facilities to meet the changing needs of the community. The special variation will be known as an infrastructure levy.

BUDGET

The budget implications are discussed in the section titled ‘Budget’ in the body of the report.

POLICY

The draft Hornsby Shire Community Plan 2010 – 2020 and Delivery Program 2010 – 2014 assists and documents the future direction of Council.

CONSULTATION

The draft Hornsby Shire Community Plan 2010 – 2020, draft Delivery Program 2010 – 2014, draft Operational Plan including Fees and Charges 2010/11 have been compiled after considerable community engagement with many of the communities in the Shire, and detailed discussion with relevant staff, taking into account the key issue for Councillors, together with phaseups/issues nominated by staff and Councillors leading up to and during the Budget meetings.

The formal exhibition period is scheduled from Thursday 18 March to Monday 19 April 2010, however community comment and feedback regarding one aspect of the Community Strategic Plan, namely the proposed infrastructure levy, has been collected and collated since January 2010. Comments received during the formal exhibition period will be added to the data collected prior to formal exhibition for submission to the DLG.

A copy of the draft Hornsby Shire Community Plan 2010 – 2020, draft Delivery Program 2010 – 2014, draft Operational Plan including Fees and Charges 2010/11 will be forwarded to various individuals, community groups, progress associations and Chambers of Commerce together with a letter inviting comment.

Council's Corporate Strategy Branch is available to make presentations about the documents to interested community groups.

TRIPLE BOTTOM LINE SUMMARY

Triple Bottom Line is a framework for improving Council decisions by ensuring accountability and transparency on social, environmental and economic factors.

The draft Hornsby Shire Community Plan 2010 – 2020, draft Delivery Program 2010 – 2014 and draft Operational Plan 2010/11 are aligned to Council’s strategic themes which are based on triple bottom line principles plus governance.

A Community Strategic Plan, including a special variation to general income to fund infrastructure improvements, will contribute to community development through the provision of sustainable facilities and services by enhancing the amenity and use of recreation facilities and public open space.

Enabling the community, in collaboration with Councillors, to influence the selection of projects in each ward encourages community pride in their area. This proposal will also have a positive impact on the use of existing infrastructure by upgrading and improving the functionality and public safety of civil assets. The proposed rate variation will also enable Council to maintain its assets in a financially viable manner.

RESPONSIBLE OFFICER

The Manager Financial Services, Glen Magus, and the Manager Corporate Strategy, Julie Williams are responsible for matters relating to the draft Hornsby Shire Community Plan 2010 – 2020, draft Delivery Program 2010 – 2014, draft Operational Plan including Fees and Charges 2010/11. They can be contacted on 9847-6635 and 9847-6790 respectively.

RECOMMENDATION

THAT Council

5. Levy the Catchments Remediation Rate for 2010/11 on all rateable land in the Shire in accordance with ad valorem rates set out in the draft Delivery Program 2010 – 2014.

6. Levy the Hornsby Quarry Loan Rate for 2010/11 on all rateable land in the Shire.

Gary Bensley

Executive Manager

Corporate and Community Division

Robert Ball

General Manager

General Manager Division

Attachments:

1.View	Draft Hornsby Shire Community Plan 2010-2020
2.View	Draft Hornsby Shire Community Plan Summary Brochure
3.View	Draft Delivery Program 2010-2014
4.View	Draft Fees and Charges 2010-2011

File Reference: F2009/00024-02

Document Number: D01349065

Executive Manager's Report No. CC16/10

Corporate and Community Division

Date of Meeting: 17/03/2010

9 WALLAROBBA ARTS AND CULTURAL CENTRE - UPDATE ON PROGRESS

EXECUTIVE SUMMARY

At the August 2009 Ordinary Meeting, Council resolved to re-purpose the Willow Park Community Centre as the Wallarobba Arts and Cultural Centre. In making this decision, Council chose not to renew the leases of tenants at the Willow Park site and requested that Council staff provide assistance to the displaced tenants to assist them in identifying temporary short term accommodation which could be used whilst the displaced tenants identified and secured suitable longer term premises for their continued operations.

This Report seeks to update Council on the progress made to date on the adaptive reuse of the Willow Park site; provide an update on the accommodation options provided to community groups; and seeks Council’s endorsement to license a portion of the vacant first floor space at the former Rural Fire Service Control Centre Building Galston Road, Hornsby Heights to St John Ambulance (Hornsby Ku-ring-gai).

PURPOSE/OBJECTIVE

The purpose of this Report is to update Council on the progress of the development of the Wallarobba Arts and Cultural Centre and to seek Council’s endorsement to license part of the former Rural Fire Service Control Centre building located at 141 Galston Road, Hornsby Heights to St Johns Ambulance (Hornsby Ku-ring-gai).

DISCUSSION

Following extensive discussion and consultation by the Community, Cultural and Recreation Facilities Task Force, Council considered Report No CC55/09 which outlined a plan to re-purpose the Willow Park Community Centre (Homestead) as the Wallarobba Arts and Cultural Centre. Council resolved that:

1. The contents of Executive Manager’s Report No. CC55/09 be received and noted.

2. The Wallarobba Arts and Cultural Centre be developed at the existing site of the Willow Park Community Centre Homestead.

3. Council not renew the leases of the existing tenants at the Willow Park Community Centre Homestead and provide them with eight weeks’ written notice of termination from 30 November 2009.

4. Hornsby Art Society be offered a lease of the rooms identified in the concept plan for the redeveloped Willow Park Community Centre Homestead under the relevant conditions of the Code for Lease/Licence of Council Land and Buildings by Community Groups, on the basis that the Society relinquishes their current tenancy of the Council owned property at 208 Pacific Highway, Hornsby.

5. On receipt of a written formal request by 18 September 2009 from any of the displaced tenants of the Willow Park Community Centre, Council staff provide assistance to them in identifying temporary short term accommodation which could be used whilst the displaced tenants identify and secure suitable longer term premises for their continued operations.

6. Further investigations be undertaken in respect of the potential sale of the Council owned property at 208 Pacific Highway, Hornsby to assist in the funding of Stage 2 of the Willow Park Community Centre project.

7. Council continue to undertake consultation with the community and potential user groups in relation to the use of existing community facilities for cultural development.

The following actions have been undertaken in respect of each point of the resolution:

The contents of Executive Manager’s Report No. CC55/09 be received and noted.

Updates on the progress of the re-purposing project have been discussed at monthly meetings of the Community, Cultural and Recreation Facilities Task Force.

The Wallarobba Arts and Cultural Centre be developed at the existing site of the Willow Park Community Centre Homestead.

An architectural firm has been engaged to undertake planning work associated with the renovation of the Willow Park Homestead to re-purpose it as an arts and cultural centre. This work will ensure that the heritage values of the site are maintained and enhanced and that the site can be retrofitted to successfully function as an arts and cultural facility. Work on the re-purposing of the site has been delayed due to the extension granted until 31 March 2010 for existing tenants to move out of the Centre (see MM No 16/09 – December 2009 Ordinary Meeting).

Council not renew the leases of the existing tenants at the Willow Park Community Centre Homestead and provide them with eight weeks’ written notice of termination from 30 November 2009.

Tenants of Willow Park Homestead were originally given notice to vacate the premises from 30 November 2009. Subsequent to this, Council considered Mayoral Minute No 16/09, and resolved that:

1. Upon receipt of a written request from an affected tenant, the effective date of the termination of their tenancy at Willow Park Community Centre be extended until 31 March 2010.

2. In recognition of such an extension being granted, the tenants will be required to acknowledge that no further extensions to the effective date of termination will be considered.

All affected tenants subsequently applied for an extension to the termination of their tenancy at Willow Park Community Centre until 31 March 2010. This request has been actioned and tenants formally advised of their new lease termination date.

Hornsby Art Society be offered a lease of the rooms identified in the concept plan for the redeveloped Willow Park Community Centre Homestead under the relevant conditions of the Code for Lease/Licence of Council Land and Buildings by Community Groups, on the basis that the Society relinquishes their current tenancy of the Council owned property at 208 Pacific Highway, Hornsby.

Lease negotiations have commenced with the Hornsby Art Society concerning their future use of space within the Wallarobba Arts and Cultural Centre. The Hornsby Arts Society will remain in occupation at 208-226 Pacific Highway, Hornsby under the holding over provisions of their expired lease until completion of renovations to the Willow Park Homestead and formalisation of the terms of their occupation within the new Arts and Cultural Centre.

On receipt of a written formal request by 18 September 2009 from any of the displaced tenants of the Willow Park Community Centre, Council staff provide assistance to them in identifying temporary short term accommodation which could be used whilst the displaced tenants identify and secure suitable longer term premises for their continued operations.

Requests have been received from all displaced tenants regarding assistance with their temporary re-accommodation whilst they source longer term accommodation options themselves. The following update is provided on the tenants in question:

· Council officers have been advised that the Breakthrough Church have found alternate accommodation at the PCYC Centre for Performing Arts. Breakthrough Church have vacated the Willow Park site.

· Hornsby and District Chamber of Commerce and Industry (now Hornsby Business Alliance) were requested to provide details of their specific space requirements to enable further investigations to be undertaken with the assistance of local real estate agents. At the time of writing, no response has been received from the Business Alliance concerning future accommodation requirements.

· Computer Pals for Seniors (Hornsby) inspected a number of Council properties that were available for hire and have ultimately applied for the regular hire of Asquith Leisure and Learning Centre. Arrangements are being made to have the group commence operations at the new site in the near future.

· St John Ambulance (Hornsby Ku-ring-gai) have inspected vacant space in the former Rural Fire Service Control Centre building at 141 Galston Road, Hornsby Heights and have written to Council expressing their strong interest in occupying a portion of the space. The potential use of this space by the group is dealt with later in this Report.

Further investigations be undertaken in respect of the potential sale of the Council owned property at 208 Pacific Highway, Hornsby to assist in the funding of Stage 2 of the Willow Park Community Centre project.

Investigations are continuing to be undertaken in relation to the potential sale of Lot 99, 208-226 Pacific Highway, Hornsby. The Community, Cultural and Recreational Facilities Task Force, and Council as appropriate, will be kept informed as these investigations proceed.

Council continue to undertake consultation with the community and potential user groups in relation to the use of existing community facilities for cultural development.

This is occurring on an ongoing basis.

_________________________

St John Ambulance - request to licence three rooms within the former Fire Control Centre - 141 Galston Road, Hornsby Heights

St John Ambulance (Hornsby/Ku-ring-gai) have expressed an interest in occupying three rooms on the first floor of the building formerly used as the Fire Control Centre. The Rural Fire Service (RFS) has advised that the rooms are surplus to their requirements following the commissioning of the new Fire Control Centre at Cowan in December 2009.

The three rooms comprise a total floor area of approximately 75 square metres and are accessible from both an external and internal stair case. The RFS has offered shared use of the toilets and kitchen facilities as well as access to a larger training room on a booking basis (whereby the RFS retains priority usage). As it will not be possible to garage their vehicles at this location, it should be noted that St John wish to retain their current use of the space located at the rear of Council property at 28-44 George Street, Hornsby which they have occupied since 1995 under a month to month licence agreement on a fee free basis.

The former RFS Control Centre building is located within Crown Reserve R90697 identified for bush fire brigade purposes, with Council the appointed Reserve Trust Manager. The land is currently zoned Residential A - Low Density in the Hornsby Shire Local Environmental Plan 1994. Advice has recently been received from the Land and Property Management Authority that, as the proposal supports multiple usage objectives for Crown Land, the Authority, upon receipt of a written submission, would be willing to consider the inclusion of an additional use classification to allow St John Ambulance to occupy space within the Reserve. Accordingly, should Council be supportive of allowing St John to occupy space within the former Fire Control Centre, officers will submit an appropriate application seeking the inclusion of an additional use classification.

It is noted in their letter that St John Ambulance is a charity that exist solely to serve the community. The fees generated from offering public first aid courses are used to maintain vehicles and supplies needed to provide first aid support in the community. St John has indicated an ability to pay a share of utility costs incurred in respect of the former Fire Control centre building.

Having regard to the existing use of the property, the provisions contained within Council’s Code for the Lease/License of Council Land and Buildings to Community Groups do not currently apply to this property. As such, no assessment of an application has taken place under this Code. Following consultation with a local real estate agent, and after taking into consideration the restrictive use of the land, an appraisal of the current market rental that would apply to the space has been obtained in the amount of $2,500.00 per annum inclusive of GST. In the circumstances, officers consider that, should Council be supportive of St John’s proposal, Council’s interests would not be adversely affected if a licence of the three rooms, located on the first floor of the former Fire Control Centre at Hornsby Heights was granted to St John for a period of five years subject to the following:

Use: Administration and training rooms for St John Ambulance (Hornsby/Ku-ring-gai)

Hours of Use: Monday to Sunday (inclusive) from 8:00am to midnight and as needed during major events.

Licence Fee: $2,500 per annum inclusive of GST

Fee review: Annually, in accordance with the movement in the CPI.

Operating costs: Contribution to costs associated with electricity and water usage incurred in respect of the building on an area occupied basis. Responsible for the installation and costs associated with telephone lines and calls.

Insurance: Public Liability Insurance, with an indemnity of $20 million

Legal Costs: Payment of 50% of the licence preparation costs

General: St John Ambulance (Hornsby/Ku-ring-gai) accepting the space in its current condition.

St John currently provides first aid services at a number of Council hosted community events each year. In general, a donation is typically given by Council as a payment for service. As described in their letter, these donations go towards the continued operation of the organisation. Historically, donations from the Community Services Branch and Community Relations Branch to St John Ambulance for attendance at community events have typically been in the order of $50 to $300 per event depending upon the length and timing of the event. An average donation is probably in the order of $100 per event. As such, it is considered that St John Ambulance could pay their annual fee by the provision of “in kind” first aid services at no less than 20 Council events in any financial year.

Taking into consideration the comments provided above, and given that St John Ambulance have emphasised their status as a charity in their proposal and that their existence is oriented towards the service of others, officers recommend that the rental value of the rooms at 141 Galston Road, Hornsby Heights be payable through in-kind donations at Council events. If supported, this would be organised administratively by the Community Services Branch.

BUDGET

There are no adverse budgetary implications associated with this Report. Having regard to the existing use provisions of the Fire Control Centre site, no income is currently generated by Council from the building at 141 Galston Road, Hornsby Heights. In accepting in kind contributions as a rental payment, Council’s financial expenditure on “donations” to St John Ambulance will be reduced by $2,500 across the organisation.

POLICY

The Strategic Plan for Community and Cultural Facilities is the relevant strategic plan/policy. The outcome recommended in this Report is consistent with the themes of this Plan in that it maximises the use of a community facility. This Report has consideration to the protocols of Council’s Lease/Licence of Land Policy.

CONSULTATION

In the preparation of this Report, consultation has occurred with the Community, Cultural and Recreation Facilities Task Force; St John Ambulance; Rural Fire Service; officers of the Environment Division, Community Relations Branch and Community Services Branch.

TRIPLE BOTTOM LINE SUMMARY

Triple Bottom Line is a framework for improving Council decisions by ensuring accountability and transparency on social, environmental and economic factors. It does this by reporting upon Council’s strategic themes. The following Triple Bottom Line considerations apply to this Report:

Working with our community

The relocation of St John Ambulance to suitable premises has involved a close working relationship between Council, the Rural Fire Service and members of St John Ambulance.

Contributing to community development through sustainable facilities and services

The granting of a licence to St John Ambulance to use the rooms in question will provide ongoing access to a facility for a group which exists to provide first aid services to others.

Fulfilling our community’s vision in planning for the future of the Shire

The granting of a license to St John Ambulance promotes the safety and wellbeing of the Shire's population at events and public gathering as outlined in the “Society and Culture” section of the Community Strategic Plan 2010-2014.

Supporting our diverse economy

The granting of a license to St John Ambulance has no negative impacts on the Shire’s economy. The granting of a license and allowing an in-kind contribution towards rent actually improves Council’s financial position marginally.

Maintaining sound corporate and financial management

The granting of a license to St John Ambulance will maximise the use of an under utilised community asset.

Other sustainability considerations

The continued existence of St John Ambulance in the community is essential in ensuring that the events that Council hosts are attended by qualified and experienced first aid officers dedicated to the welfare and safety of the community.

RESPONSIBLE OFFICER

The responsible officer is Mr David Johnston, Manager - Community Services Branch. For further information please contact Mr Johnston on 9847 6800, Monday to Friday 9.00 am to 5.00 pm.