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. Ingrid Robertson from Berowra Uniting Church, Berowra 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. Speakers are requested to ensure their comments are relevant to the issue at hand and to 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.

confirmation of minutes

THAT the Minutes of the Ordinary Council Meeting held on 21 April, 2010 be confirmed; a copy having been distributed to all Councillors.

Petitions

Mayoral Minutes

Notices of Motion

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Item 1 NOM4/10 Protection of Trees on Development Sites - Australian Standard AS4970-2009

COUNCILLOR Hutchence To Move

THAT Council:

1. Notes AS4970-2009 Protection of Trees on Development Sites.

2. Has regard to the Standard in the assessment of the impact of new development on existing trees.

3. Incorporates key guidelines of the Standard into its Comprehensive Development Control Plan.

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Item 2 NOM6/10 Review of Council, Workshop and Task Force Meeting Schedules

COUNCILLOR Hutchence To Move

THAT the General Manager arrange for a review to be undertaken of the scheduling of Council, Workshop and Task Force meetings to achieve greater efficacy and productivity. Such a review is to consider the consolidation of meetings on the one date, the use of formal Workshop Meetings (with all Councillors in attendance) to receive presentations and make decisions and the restructuring of Task Forces into formal Committees of Council with delegation to make decisions or recommendations. The outcomes of the review are to be reported to Council at the July 2010 Ordinary Meeting such that any changes necessary can be adopted at the September 2010 Ordinary Meeting when Council determines its schedule of meetings, order of business and appointments to Committees, Working Parties and Task Forces for the period to September 2011.

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 3 GM8/10 American Society for Public Administration - 2010 Annual Conference

RECOMMENDATION

THAT the Report be received and noted.

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Item 4 GM9/10 Legal Services Panel

RECOMMENDATION

THAT Council:

1. Dissolve its existing legal services panel, adopted on 9 August 2006.

2. Invite the following firms to be members of its new legal services panel in accordance with the terms and conditions of Tender T14/2009:

a. Crawford & Duncan Lawyers;

b. Marsdens Law Group;

c. Matthews Folbigg Lawyers;

d. Pikes Lawyers; and

e. Storey & Gough Lawyers.

3. Note that from time-to-time, it may be necessary for the General Manager to engage the services of a legal firm, who is not on the legal services panel, to provide specialist legal advice to Council.

4. Write to all unsuccessful Tenderers advising of Council’s decision.

Corporate and Community Division

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Item 5 CC24/10 Review of Council's Code of Meeting Practice

RECOMMENDATION

THAT:

1. The draft amended Code of Meeting Practice attached to Report No CC24/10 be adopted for the purpose of public exhibition in accordance with the requirements of the Local Government Act.

2. Following the public exhibition period, a further report be prepared for Council’s consideration such that a final Code can be adopted by Council.

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Item 6 CC25/10 Investment and Borrowing Report - period ending March 2010

RECOMMENDATION

THAT the contents of the Executive Manager’s Report No CC25/10 be received and noted.

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Item 7 CC26/10 March 2010 Quarter Review: 2009/10 - 2011/12 Management Plan and 2009/10 Budget

RECOMMENDATION

THAT the March 2010 Quarter Review of the Management Plan for 2009/10 – 2011/12 and the Budget for 2009/10 be received and noted.

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Item 8 CC27/10 Dural and District Historical Society - Proposed Lease of Cottage - Part of Galston Recreation Area - Crown Reserve D500223 and R81698 - 412x Galston Road, Galston

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No CC27/10 be received and noted.

2. Council, as Reserve Trust Manager, enter into a further five year lease with the Dural and District Historical Society Inc. in respect of the existing cottage and surrounds at Galston Recreation Reserve, 412x Galston Road Galston on the following basis:

a) Rental for the initial 12 months of tenure to be $500 per annum (inclusive of GST).

b) Rental to be subject to annual review in accordance with the movement in the Consumer Price Index.

c) The lessee to be responsible for the payment of all costs associated with services provided to the property including but not limited to electricity, gas and water usage.

d) The lessee to maintain throughout the term of the lease a public liability insurance policy for an amount of not less than $20 million for any one incident, with such policy noting Hornsby Shire Council as an interested party.

e) The cottage to only be used for the purpose as detailed in The Society’s 17 March 2010 response to Tender No T7/2010.

f) The lessee to be responsible for the internal repairs, maintenance and decoration of the cottage only.

g) The lessee to acknowledge Council’s support in the provision of the cottage in its annual reports and publications, any advertising and community events.

h) The lessee to be responsible to ensure the security of the cottage during the term of their occupation.

i) The lessee to bear 50% of costs incurred in respect of the preparation of the necessary lease documentation.

3. The lease will be subject to consent by the Minister administering the Crown Lands Act.

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Item 9 CC28/10 Declarations of Pecuniary Interest and Other Matters Returns - Councillors and Designated Persons

RECOMMENDATION

THAT Council note that the Disclosure of Pecuniary Interests and Other Matters Returns recently lodged with the General Manager have been tabled as required by the Local Government Act.

Environment Division

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Item 10 EN12/10 Draft Sustainable Waste Avoidance and Resource Recovery Strategy for the Shire of Hornsby 2010 - 2015

RECOMMENDATION

THAT:

1. The draft “Waste Avoidance and Resource Recovery Strategy for the Hornsby Shire 2010 – 2015” be placed on public exhibition for a period of four weeks.

2. A further report be provided to Council at the conclusion of the public exhibition period.

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Item 11 EN18/10 Catchments Remediation Rate (CRR) Expenditure Progress Report 2009/2010

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. EN13/09 be received and noted.

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Item 12 EN19/10 Final Bush Fire Risk Management Plan for Hornsby/ Ku-ring-gai

RECOMMENDATION

THAT Council endorse the Hornsby Ku-ring-gai Bush Fire Risk Management Plan prepared by the Hornsby Ku-ring-gai Bush Fire Risk Management Committee.

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Item 13 EN20/10 Service Level Agreement with the Rural Fire Service

RECOMMENDATION

THAT:

1. Council endorse the new Rural Fire District Service Level Agreement for Hornsby Ku-ring-gai and the Hornsby/ Ku-ring-gai District Rural Fire Service Zoning Agreement.

2. The General Manager be given delegated authority to sign the Rural Fire District Service Level Agreement for Hornsby Ku-ring-gai and the Hornsby/ Ku-ring-gai District Rural Fire Service Zoning Agreement.

Planning Division

Nil

Works Division

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Item 14 WK32/10 2010/14 4-Year Rolling Works Improvement Programs

RECOMMENDATION

THAT:

1. Council adopt the 2010/14 4-Year Rolling Local Road and Footpath Improvement Programs presented at Appendix A and Appendix B respectively in Executive Manager’s Report No. WK32/10 subject to the adoption of the Council’s 2010/11 Budget.

2. An amount of $25,000 is allocated in the 2010/11 Budget for the Local Road Improvement Program Rural Component to implement the Rural Road Management Plan Long Term Recommendations, Year 7 of 10.

3. An amount of $200,000 is allocated in the 2010/11 Budget for the Local Road Improvement Program Rural Component for the Sealing Unsealed Roads Implementation Program, Year 6 of 10.

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Item 15 WK34/10 Works Progress Report - March 2010 Quarter - Assets Branch

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. WK34/10 be received and the progress of the 2009/10 Assets Branch Programmes for the March 2010 quarter be noted

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Item 16 WK36/10 Hornsby Shire Floodplain Risk Management Committee - Appointment of Community Representatives

RECOMMENDATION

THAT Council:

1. Appoint Mr Chris Taylor, Mr Colin Morrison and Ms Vanessa D’Emanuele as local community representatives of the Hornsby Shire Floodplain Risk Management Committee.

2. Appoint Mr Brian Pearson of A Ward as a Reserve for the Hornsby Shire Floodplain Risk Management Committee in the event that any of the applicants recommended for appointment decline to accept their appointment as local community representative or resigns from the Committee as some stage in the future.

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Item 17 WK37/10 Works Progress Report - March Quarter 2010 - Design and Construction Branch

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. WK37/10 be received and noted.

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Item 18 WK38/10 Hornsby CBD Drainage Project - Current Status

RECOMMENDATION

THAT:

1. Council note the current status of the Hornsby CBD Drainage Project.

2. A further report is submitted to Council with regard to the strategy for funding the works required on completion of the current study on possible lower cost alternatives.

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Item 19 WK39/10 Works Progress Report - March 2010 Quarterly - Traffic And Road Safety Branch

RECOMMENDATION

THAT Council endorse the activities undertaken by the Traffic and Road Safety Branch for the period 1 January 2010 to 31 March 2010.

SUPPLEMENTARY AGENDA

PUBLIC FORUM – NON AGENDA ITEMS

Mayor's Notes

Questions of Which Notice Has Been Given

QUESTIONS WITHOUT NOTICE

General Manager's Report No. GM8/10

General Manager Division

Date of Meeting: 19/05/2010

3 AMERICAN SOCIETY FOR PUBLIC ADMINISTRATION - 2010 ANNUAL CONFERENCE

EXECUTIVE SUMMARY

In accordance with the approval granted by resolution of Council of 9 December 2009, the General Manager attended the 2010 Annual Conference of the American Society for Public Administration (ASPA) held during 9-13 April 2010 in San Jose, California.

The Conference was the 70^th Annual Conference of the Society and the theme was Invigorating Public Service for Change.

The conference was structured around plenary sessions, panel sessions, discussion circles and workshops. Attendees included practitioners, academics, new professionals and students.

There were a number of themes focussed upon during the conference that were of special interest.

· Managing Performance and Measuring Results

· Revenue Strategies for Fiscal Sustainability

· Policy Possibilities Versus Fiscal Realities of Implementing “Green” Policies

· Managing e-Government to Engage the Public

It was indicated at the conference that most presentations in due course would be listed on the website www.aspanet.org.

PURPOSE/OBJECTIVE

The purpose of this Report is to submit to Council, a Report on the General Manager’s attendance at the 2010 Annual Conference of the American Society for Public Administration held in San Jose, California, USA.

DISCUSSION

The Conference was the 70^th Annual Conference of the Society and the theme was Invigorating Public Service for Change. The Conference theme was selected as the US faces the challenges of economic growth, budget and financial accountability, effective and affordable health care, restoration of national and local infrastructure, and the public service was now looked upon for solutions.

The Conference was opened by the President of the Institute drawing attention to the dichotomy which exists with the public claiming, when things are going well in society “government get off our backs” and when things go wrong in society, “there ought to be a law”. Addressing this is obviously a continuing challenge for all governments.

The opening plenary session was presented by Mr John Berry, who is the Director of the United States Office of Personnel Management, responsible for recruiting, hiring and setting benefits policy for 1.9 million federal civilian employees. He was appointed by President Obama to implement a personnel management reform agenda.

Another highlight was a special lecture by Mr Paul Volcker, an American economist. He was Chairman of the Federal Reserve under Presidents Jimmy Carter and Ronald Reagan and currently is Chairman of President Obama’s newly formed Economic Recovery Advisory Board.

The closing plenary session was a discussion by the former Mayor of Kansas City and the Mayors of Riverside and Santa Cruz California, examining fiscal challenges confronting cities. Additionally, part of the closing session was the inauguration of Meredith Newman as President of ASPA. Meredith Newman is Professor and Chair, Department of Public Administration, Florida International University and is an Australian citizen holding dual nationality with the US.

The conference was structured around plenary sessions, panel sessions, discussion circles and workshops. Attendees included practitioners, academics, new professionals and students. The sessions attended included:

Saturday April 10

New Member and First Time Attendees Orientation

Open Plenary

Revenue Strategies for Fiscal Sustainability

Workshop – How to Lead Organisational and Cultural Change to Achieve Results for Customers

Sunday April 11

ICMA Meeting

Ethical Governance: A Comparative Examination

Green Technologies and Fiscal Realities

Donald C Stone Lecture

Monday April 12

Increasing Transparency via Electronic Governance: Information Access and Citizen Engagement in a Transforming Democracy

Super Session – The State of Open Government: Transparency Trust and Technology

Workshop – Changing our Communities: The Possibilities of Going Green

Workshop – Achieving Optimal (representative) Citizen Participation

Tuesday April 13

Budget Process – From Citizen Engagement to Measurement of the Results

Fiscal Stewardship in Times of Revenue Shortfalls

Closing Plenary

There were a number of themes focussed upon during the conference that were of special interest. These are discussed briefly in the following.

Managing Performance and Measuring Results

There was considerable discussion in relation to achieving results for customers and ensuring accountability and transparency in government operations.

The approach being pursued involved an evolution of reporting, from $ allocated, to $ spent, to immediate results (What got done), to economic impact, to return on investment (What were the outcomes).

One interesting aspect, which aligned with what Hornsby had undertaken in its recent review, was an approach by the US federal government to re-examine its role and services by asking:

What the government does

· Is a role to address the underlying problem or concern necessary? Are the mission and objectives clear?

· Have there been significant changes that relate to the reason for initiating it?

· When, if ever, will there no longer be a need for a role? Would it be undertaken in the same way if it was starting today?

· Is the current mission fully consistent with the initial or updated statutory mission (e.g., no significant mission creep or morphing)? Is the program, policy, function, or activity a direct result of specific legislation?

How it does it

· How does the program/agency measure success? Are the measures reasonable and consistent with the applicable statutory purpose? Are the measures outcome-based, and are all applicable costs and benefits being considered? If not, what is being done to do so?

· Is it well targeted to those with the greatest needs and the least capacity to meet those needs?

· Is it using the most cost-effective or net beneficial approaches when compared to other tools and program designs?

Who does it

· Does the program/policy encourage or discourage private markets from investing their own resources to address the problem?

How it gets financed

· Is it affordable and financially sustainable over the longer term, given known cost trends, risks, and future fiscal imbalances? What would be the likely consequences of eliminating the program, policy, function, or activity? What would be the likely implications if its total funding was cut by 25 percent?

Revenue Strategies for Fiscal Sustainability

Local Government in the US relies substantially upon taxes other than property taxes, including sales tax, tourism taxes, bed taxes etc.

The global financial crisis has led to substantial falls in taxes other than property tax and in particular there have been substantial reductions in what was classified as inter-governmental revenue. Across the US, the States’ budget deficits are being shared with local government through the reduction of inter-governmental revenue normally transferred from the State to Local Government. Of the States in the US, 48 were in deficit.

A Study of actions taken within 3 US States had shown:

1. The reluctance of States to increase taxes leads to prolonged fiscal difficulties

2. States should exercise self discipline and set aside funds in reserve for economic down-turns

3. Failure of States to address fiscal issues early only exacerbates fiscal problems

These conclusions readily apply to local government as to States.

An interesting proposal which was being developed on a voluntary basis was what was called fiscal regionalism. This involved cooperative strategies to create a capacity to distribute costs and benefits of economic development across local government areas. The intention of this fiscal regionalism was to share economic wealth, generally achieved through non property tax growth, to lead to a decrease in fiscal inequality and the poverty rate. This also involved influencing land use planning to ensure that tax wealth was equitably distributed, rather than competition for tax growth developing through land use planning.

There was now an attempt in the Los Angeles area to distribute on a competitive basis, 10% of all sales tax revenue, to encourage economic development and job creation.

Policy Possibilities Versus Fiscal Realities of Implementing “Green” Policies

The environment is increasingly becoming an issue of awareness in American society and in the US government. Approaches being addressed include:

· Construction & Demolition waste diversion

· Sustainable purchasing program

· Energy efficient mechanical systems

· Rainwater collection systems

· Bicycle riding programs

· Carpool/ride share programs

· Elimination of light pollution

· Stormwater management

· Energy efficient windows

· Hydro energy

· Solar water heater

· Use of biofuels

· Recycling programs

· Mulching

· Native plant landscaping

· Low or no Volatile Organic Compounds (VOCs)

· Alternative fuel vehicles

· Energy efficient lighting systems

· Use of recycled or reclaimed materials

· Low flush toilets/waterless urinals

· On-site wind turbines

· Wind generator/fields

· Solar technologies

· Compact Fluorescent Lighting (CFLs)

· Electric vehicle charging stations

· Sustainable cleaning products

· Vegetated roofs

· Greenhouse gas reduction plans

· Energy management plans

· CO2 reduction programs

· Water conservation strategies

· Locally manufactured building materials

Managing e-Government to Engage the Public

At the Conference there were some high level Speakers from Federal, State and Local Government who addressed challenges facing all governments in the digital age. These Speakers included Ms Teri Takai, Chief Information Officer, State of California, Mr Brian Moura, Deputy City Manager, City of San Carlos, California, Mr Allan R Shark, Executive Director, Public Technology Institute and Assistant Professor Rutgers, University School of Public Affairs and Administration.

Various Speakers spoke about the use of Facebook, Blogs, Twitter and Multi-media in making a government more accountable and transparent.

There were challenges for government including:

· Training employees on use of sensitive information

· Threats from the aggregation of personal information held by government

· Open government requires higher levels of responsibility in protecting information

· Control measures to mitigate threats, such as hacking

· Participation depends upon access to broadband and internet

· Time is precious and generally immediate responses are needed whilst government processes are frequently long and complex

· Audience times in and out

· How can government be sure that the information the public want is available when they want it

· The challenge of communicating information quickly through multi channels

· Young people don’t seem to be concerned about sharing information

· Increasingly more people are addicted to technology and to not utilise technology will not be an option.

Many Speakers did express a view of being nervous about the future of what was called “push button decision making”.

It was indicated at the conference that most presentations in due course would be listed on the website www.aspanet.org.

BUDGET

The costs previously approved by Council included the conference registration fee, accommodation and meals. The estimated cost based upon $A = US 90c was proposed to be approximately $2,000. Although final costs are not yet available, the limit approved will not be exceeded. Funds for conferences are available within the allocated budget.

POLICY

There are no policy implications.

CONSULTATION

There has been no consultation with respect to the preparation of this Report.

TRIPLE BOTTOM LINE SUMMARY

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.

Attendance at the Conference however did contribute to the following Triple Bottom Line considerations.

Governance –Guidance towards a sustainable future

Ecology – Protect and enhance our natural environment

Economy – Resilient local economy & sustainable resource use

Society and Culture – Enhance social and community wellbeing

Human Habitat – Effective community infrastructure and services.

RESPONSIBLE OFFICER

The General Manager, Mr Robert Ball.

RECOMMENDATION

THAT the Report be received and noted.

Robert Ball

General Manager

General Manager Division

Attachments:

There are no attachments for this report.

File Reference: F2004/05848-02

Document Number: D01387954

General Manager's Report No. GM9/10

General Manager Division

Date of Meeting: 19/05/2010

4 LEGAL SERVICES PANEL

EXECUTIVE SUMMARY

Council recently invited tenders for Council’s new legal services panel.

A review panel was established to evaluate the eighteen conforming tenders. Tenders were evaluated against weighted criteria including; value for money, experience, communication and response time and quality of service.

The review panel has recommended the appointment of five legal firms to provide legal services across Council’s business areas, which best demonstrate their ability to provide services in accordance with Tender T14/2009 – Provision for Legal Services.

PURPOSE

The purpose of this report is to seek Council’s endorsement for the establishment of a new legal services panel.

DISCUSSION

On 9 August 2006, Council resolved to appoint the following legal firms to Council’s legal services panel (hereafter, the Panel):

- Abbott Tout Lawyers (now HWL Ebsworth Lawyers);

- Pike, Pike & Fenwick Solicitors;

- Storey & Gough Solicitors; and

- Wilshire & Webb Lawyers.

These firms have most commonly provided legal services for the Planning Division in respect of appeals against development applications and orders. However, Council has also engaged other firms to provide services for insurance, I.T, property, traffic and industrial relations matters. They include DLA Phillips Fox, Matthews Folbigg, Mahony Dominic, Crawford & Duncan, Ingenio Consulting and Workplace Law.

Since the appointment of the current panel, there has been increasing recognition to expand the range of legal services to cover other Council business units. Consequently, on 9 December 2009, Council resolved to call for tenders for the provision of legal services in accordance with Tender T14/2009 – Provision for Legal Services. (A copy of the Tender document is held at Attachment 1 of this report).

In response to Council’s invitation, eighteen firms lodged conforming tenders.

Council established an evaluation panel to review tenders and recommend the appointment of a new legal services panel. The evaluation panel comprised a Councillor from each Ward, the General Manager and the Executive Managers, Works and Planning Divisions. The

Executive Manager Environment Division was also a member of the evaluation panel in his capacity of Acting General Manager.

Disclosures of Interest:

The Executive Manager Works advises Council of a non-pecuniary, less than significant conflict of interest in relation to one of the Tenderers for these works. Council is advised that a member of the Executive Manager's extended family is a partner of one of the firms tendering for this work. Following discussion with the General Manager, it has been agreed that the Executive Manager would continue to participate in the evaluation of the tenders.

Each member of the review panel advises Council that they currently have, or have previously had business relationships with one or several firms that responded to the invitation to tender. The nature of the relationships is/was limited to panel members work duties and not of a personal nature. Therefore, formal declarations of interest were not considered necessary.

The evaluation panel undertook an evaluation of each tender and applied weighted criterion against the requirements of the tender. Value for money, experience, communication and response time and quality of service were given greater weighting as part of the evaluation. Other criteria were resources and contingencies, business structure and understanding of local government, availability and access to legal advice, settlement discounts and compliance and understanding of the tender. A complete copy of the ‘tender supplier evaluation and selection weighted criteria’ spreadsheet is held at Confidential Attachment No. 2. (This attachment should be dealt with in confidential session, under s10A(2)(d) of the Local Government Act, 1993 as it contains commercial information of a confidential nature that would if disclosed (i) prejudice the commercial position of the person who supplied it, or (ii) confer a commercial advantage on a competitor of the council, or (iii) reveal a trade secret.

The tenderers recommended by the evaluation panel to be members of the legal services panel best demonstrated their ability to provide legal services to Council against the weighted criteria. It was noted that a number of tenderers not selected would also be suitable, however, were more expensive, and/or did not best demonstrate their ability to provide services to Council.

The evaluation panel noted that some tenderers were best placed to provide legal services across each of Council’s business areas whereas other tenderers were best suited to providing specialist advice for specific legal matters. This has been reflected in the evaluation panel’s recommendations. The evaluation panel also noted that whilst the firms recommended to be members of Council’s new legal services panel would generally provide legal advice across each of Council’s business areas, it may be necessary for the General Manager to engage the services of a legal firm, who is not on the legal services panel, to provide specialist legal advice to Council, on a case-by-case basis.

Pursuant to s3.16 of the Tendering Guidelines for NSW Local Government and c178 of the Local Government Regulation 2005, following the review of tenders by the evaluation panel, Council must either:

a. Accept the tender that, having regard to all the circumstances, appears to be the most advantageous; or

b. Decline to accept any of the tenders.

This evaluation panel recommends that Council accepts five tenders as detailed in the recommendation to this report.

BUDGET

There are no budget implications associated with this report.

POLICY

There is no policy implications associated with this report.

CONSULTATION

This report is the outcome of the deliberations of the legal services tender review panel.

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 only provides Council with information and does not propose any actions which require a sustainability assessment, no Triple Bottom Line considerations apply.

RESPONSIBLE OFFICER

The Executive Manager Planning is responsible for the preparation of this report.

RECOMMENDATION

THAT Council:

1. Dissolve its existing legal services panel, adopted on 9 August 2006.

2. Invite the following firms to be members of its new legal services panel in accordance with the terms and conditions of Tender T14/2009:

a. Crawford & Duncan Lawyers;

b. Marsdens Law Group;

c. Matthews Folbigg Lawyers;

d. Pikes Lawyers; and

e. Storey & Gough Lawyers.

4. Write to all unsuccessful Tenderers advising of Council’s decision.

Scott Phillips

Executive Manager

Planning Division

Robert Ball

General Manager

General Manager Division

Attachments:

1.View

Tender T14/2009

Tender Supplier Evaluation & Weighted Criteria Spreadsheet - This attachment should be dealt with in confidential session, under Section 10A (2) (d) of the Local Government Act, 1993. This report contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the council; or (iii) reveal a trade secret.

File Reference: F2009/00825

Document Number: D01400877

Executive Manager's Report No. CC24/10

Corporate and Community Division

Date of Meeting: 19/05/2010

5 REVIEW OF COUNCIL'S CODE OF MEETING PRACTICE

EXECUTIVE SUMMARY

Council Code of Meeting Practice was last reviewed at the 8 April 2009 Ordinary Meeting. Since that time, additional information and guidelines about council meetings have been received from various authorities. This has prompted officers to conduct a further review of the Code which has regard to the information and guidelines received as well as any other issues which have arisen since the last review.

The main issues considered in this review are the recording of Councillor voting at Council meetings; the process to be followed by Councillors in respect of the submission of apologies/requests for leave of absence; the requirements in respect of political donations disclosure statements; and the audio recording of Council meetings. It is noted that the second and third issues have already been resolved by updating Council’s current procedures in respect of the conduct of Council meetings, but they are yet to be incorporated in the Code of Meeting Practice. This review provides such opportunity.

In respect of voting at Council meetings, it is noted that Council currently records the voting of Councillors for all planning matters and notices of motion. Due to a recommendation from the Division of Local Government that Councillor voting also be recorded for tenders, it is recommended that Council record voting on all matters considered at meetings. This would ensure consistency in the minutes and provide ease of administrative procedures by eliminating the need to determine whether or not voting should be recorded on a particular item.

The audio recording of Council meetings has been an issue for a number of years. From this review, it is evident that the recordings are rarely utilised for the purpose stated in the Code and taping of the meetings does not appear to be necessary. If Council continues to record meetings, there are resource impacts for Council associated with the processing of applications by members of the public for access to the recordings as well as any maintenance and/or upgrading of the recording equipment in Council Chambers. It is recommended that Council cease the audio recording of its meetings.

If Council adopts the draft amended Code attached to this Report, it will need to publicly exhibit the document in accordance with Section 361 of the Local Government Act. Following the receipt of any submissions, a further report will need to be prepared for Council’s consideration.

PURPOSE/OBJECTIVE

The purpose of this Report is to provide Council with information about proposed amendments to the Code of Meeting Practice; and to recommend that Council adopt a draft amended Code for the purpose of public exhibition in accordance with the requirements of the Local Government Act.

DISCUSSION

Council last reviewed its Code of Meeting Practice at the 8 April 2009 Ordinary Meeting as part of its consideration of Report No. CC12/09 – Review of Policies and Codes – Corporate and Community Division. Since that time, additional information and guidelines about council meetings have been received from various authorities. This has prompted officers to conduct a further review of Council’s Code of Meeting Practice.

The main source of additional information received in respect of this matter is Meetings Practice Note No. 16 issued by the Division of Local Government (DLG). In this regard, the DLG advised that the revision of the Meetings Practice Note had mainly taken into account legislative changes that had occurred since the Practice Note was last published and also responded to questions raised by councillors during Councillor Information Seminars conducted by the DLG after the 2008 local government elections.

In reviewing Council’s Code of Meeting Practice, staff have had regard to the DLG’s updated Meetings Practice Note and any other relevant issues or matters which have arisen since the last review of the Code. The main review items are summarised into the following headings:

· Recording of Councillor voting at Council meetings

· The process to be followed by Councillors in respect of the submission of apologies/requests for leave of absence

· The requirements in respect of Political Donations Disclosure Statements

· The audio recording of Council meetings

Although some of these matters have already been addressed by Council through changes to procedures at meetings, they have not formally been included in the Code of Meeting Practice. Details in respect of each are provided below.

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Recording of Councillor voting at Council meetings

Council’s current Code of Meeting Practice requires that the names of Councillors who voted for and against any planning matters as well as notices of motion be recorded in the minutes of the meeting – refer clauses 30(6) and 30(7) of the Code.

Since the last review of the Code, the DLG has issued Circular No 09/39 which attached the Tendering Guidelines for NSW Local Government. In Section 3.17 of the Guidelines – Acceptance or Rejection of Tenders – it is stated:

“For transparency, it is suggested that the minutes record the names of the councillors who supported the decisions and the names of any councillors who opposed (or are taken to have opposed) the decision.”

Also, the DLG’s Meetings Practice Note No. 16, at point 2.8.6 states:

“. . . Council can choose to record the voting on all matters in its minutes. Where a council makes this decision, this should be provided for in its code of meeting practice. Where councils are required by the Act or Regulation to record voting by way of a division, see section 2.9 below.

It would be good practice for councils to consider the recording of voting on important matters, such as tendering.”

Having regard to those documents, it would appear prudent that Councillor voting in respect of tenders should be recorded in the minutes of a meeting.

Staff also believe, to ensure consistency in the minutes and provide ease of administrative procedures by eliminating the need to determine whether or not voting should be recorded on a particular item, it would be appropriate for Council to record voting on all matters considered at a meeting. As a consequence, the draft Code has been amended to incorporate this practice - refer to amended clause 30(6) of the Code.

The process to be followed by Councillors in respect of the submission of apologies/requests for leave of absence

This matter was previously brought to the attention of Councillors and staff in January 2010 when Council amended its procedures in respect of the non-attendance of Councillors at Council meetings. This procedure was made effective from the first meeting of 2010. This review of the Code now provides the opportunity for amendments to be made to reflect these changes.

This amendment has been incorporated in clause 10(4) of the attached draft Code. A Note to that clause also provides suggested format and wording for a notification to the General Manager by Councillors of their non-attendance at a Council Meeting.

The requirements in respect of Political Donations Disclosure Statements

Section 147 of the Environmental Planning and Assessment Act requires persons or organisations to disclose any relevant political donations or gifts which they have made to Councillors or staff. If a Councillor or employee has received a reportable political donation or gift from a person or organisation who has made a relevant planning application or a submission in respect of a planning application which is to be considered at a Council meeting, they must declare a non-pecuniary conflict of interests to the meeting, disclose the nature of the interest, and manage the conflict of interests in accordance with Council’s Code of Conduct. Clause 51A(4) of the Code has been amended to reflect this requirement. It reflects the statement that is currently made by the Chairman at the commencement of all Planning Meetings.

The audio recording of Council meetings

Clause 66.1 of the Code refers to Audio Recording of Council Meetings. It states that:

(1) (a) Council will audio record all Council meetings to assist in the accurate production of Meeting Minutes.

(b) the recordings will be available to members of the public once the minutes have been finalised

Councillors will be aware that problems have been experienced with the equipment in Council Chambers used to audio record the meetings. Ad-hoc issues continue to be experienced despite staff’s best endeavours to ensure the reliability of the equipment through relevant upgrades and regular maintenance checks.

The issue of audio recording of Council Meetings has been debated by Council previously. Several reports have been considered, the latest of these being Report No. CC77/06 (at the October 2006 Ordinary Meeting). That Report provided an historical overview of the issues associated with the question of whether or not to record Council meetings, and provides a useful reference for Councillors.

The decision of whether or not to record Council meetings is a discretionary one for Council, with no legislative obligation to do so. In the past, Council has chosen to record the meetings for the purpose of assisting in the accuracy of the Minutes. Noting this, Council officers have reviewed the number of times audio recordings have been referred to in the preparation of minutes. This has indicated that the audio recordings are referred to on average less than once per year. It should be noted that the accuracy of Council minutes was discussed in Report No CC121/07 and it confirmed an accuracy rate of 99.2% in minutes for the period from 2004. It seems apparent that there is minimal need for reliance on the audio recordings of meetings to assist in accurate production of the minutes.

The main impact of audio recording Council meetings is that these recordings become a “document” of council and as such applications can be made by members of the public to access the “document”. Public access to these recordings gives rise to implications under the Privacy and Personal Information Protection Act which precludes the release of any personal information under such a request. The result is that each time an application is made by a member of the public for access to an audio recording of a Council meeting, Council officers are required to review the entire recording to ensure there is no reference to personal information, and if there is, to either arrange for the removal of such information or consult with the third person whose personal information is included on the audio recording. This practice consumes a considerable amount of time and Council resources each time it is undertaken.

Council officers have also reviewed the number of applications which have been made by members of the public to access audio recordings of Council meetings. In the period since January 2003, there has been an average of approximately six applications per year. In all cases the verification of the accuracy of Minutes did not appear to be the purpose of the request as no amendments to the Minutes were proposed as a result of access being provided. Review by members of the public of audio recordings of Council meetings appears to focus on the discussion and debate which took place, rather than the actual decision of items considered by Council. It should be noted that in two cases, as a result of a member of the public seeking access to an audio recording of a Council meeting, Council officers have been required to participate in an appeals process through the Administrative Decisions Tribunal which consumed considerable resources. It should also be noted that 27% of all applications for audio recordings were made by the one applicant.

It is evident from the above that the audio recordings of Council meetings are rarely utilised for the purpose stated in the Code and that the practice is not necessary. By continuing to record meetings, there is a potential significant impact on Council resources used to process applications by members of the public as well as maintaining and/or upgrading the relevant electronic equipment in Council Chambers. As such, clause 66(1) of the Code is recommended for deletion.

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The attached draft Code incorporates the amendments discussed above, a small number of other changes and updates to provide clarification, as well as grammatical/formatting corrections. All proposed amendments are shown in track changes.

Although most of the proposed amendments to Council’s Code are not substantial in nature and would not require public exhibition in accordance with section 362 of the Local Government Act, the proposed deletion of Clause 66.1 of the Code may be considered significant and of general public interest. As such, if Council adopts the draft amended Code attached to this Report, it would be necessary to publicly exhibit the document in accordance with Section 361 of the Act. Following the receipt of any submissions, a further report would then need to be prepared for Council’s consideration.

BUDGET

Whilst there are no short term budgetary implications associated with this Report, if Council adopts the recommended changes to the Code, there may be medium to longer term savings associated with the maintenance/upgrade of audio recording equipment.

POLICY

This Report recommends amendments to Council’s Code of Meeting Practice which are shown in the attached document. Should Clause 66(1) of the Code be deleted, Council’s Policy - Audio Recording of Council Meetings (copy attached) will need to be removed from Council’s Policy Register.

CONSULTATION

The preparation of this Report has had regard to the updated Meetings Practice Note No. 16 – issued in August 2009 by the DLG via Circular No 09/32; and the Tendering Guidelines for NSW Local Government – issued in October 2009 by the DLG via Circular No 09/39. There has also been consultation with the General Manager, relevant Executive Managers and staff.

Should Council adopt the draft amended Code, there will be a requirement to publicly exhibit the document. Following the public exhibition period, a further report will be prepared for Council’s consideration regarding any submissions received.

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.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Manager, Administration Services Branch – Ms Robyn Abicair, who can be contacted on 9847 6608.

RECOMMENDATION

THAT:

1. The draft amended Code of Meeting Practice attached to Report No CC24/10 be adopted for the purpose of public exhibition in accordance with the requirements of the Local Government Act.

2. Following the public exhibition period, a further report be prepared for Council’s consideration such that a final Code can be adopted by Council.

Robyn Abicair

Manager - Administration Services

Corporate and Community Division

Gary Bensley

Executive Manager

Corporate and Community Division

Attachments:

1.View	Code of Meeting Practice
2.View	Audio Recording Policy

File Reference: F2006/00032

Document Number: D01377891

Executive Manager's Report No. CC25/10

Corporate and Community Division

Date of Meeting: 19/05/2010

6 INVESTMENT AND BORROWING REPORT - PERIOD ENDING MARCH 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 March 2010 was $1,390,000 compared to the 2009/10 budgeted income for the same period of $715,000. Of the year to date investment income earned, 61% relates to externally restricted funds such as Section 94, and is required to be allocated to those funds. Based on the results to date, the March Quarter review of the 2009/10 Budget recommends an increase to general fund investment income of $200,000 (refer to Report No CC26/10 for further details).

At its February 2010 meeting, the Finance and Strategy Task Force indicated its support for the process of selling Capital Protected Notes where the current yield to maturity could be exceeded by investing the funds in an alternative investment product. It is noted that during March 2010, two Westpac Capital Protected Notes (Camelotfund and PPEN Orion Trust) met this criteria and were sold and then re-invested in a term deposit providing a return of 6.5% annually.

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 - March 2010

• The At-Call and Term Deposits achieved an annualised return of 5.27% for the month compared to the benchmark of 4.0%.

• NSW T-Corp Long Term Growth Facility achieved a marked to market return of 51.74% for the month compared to the benchmark of 48.41%. 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 6.36% for the month compared to the benchmark of 3.92%. The market value of this investment as at 31 March 2010 is $1.880 million.

• Direct investments in CDO’s achieved an annualised return of 5.54% for the month compared to the benchmark of 3.92%. The market value of these investments as at 31 March 2010 is $2.284 million.

• The Capital Guaranteed Notes achieved an annualised return of 0.31% for the month compared to the benchmark of 3.92%. Due to poor performance over recent months the Capital Protected Notes coupons, with the exception of the Longreach PIU Fund, have not been accrued. The market value of these investments as at 31 March 2010 is $4.631 million.

• For total investments, the annualised return for the month is 5.54% compared to the benchmark of 5.08%; and the year to date return after fees is 4.15% compared to the benchmark of 4.04%.

At its February 2010 meeting, the Finance and Strategy Task Force indicated its support for selling Capital Protected Notes where the current yield to maturity could be exceeded by investing the funds in an alternative investment product. It was noted that this would also result in a reduction in Council’s investment in structured products. During March 2010, two Westpac Capital Protected Notes (Camelotfund and PPEN Orion Trust) met this criteria and were sold and then re-invested in a term deposit providing a return of 6.5% annually. In making this decision, Council’s investment advisor provided professional assistance in respect of the required sale price and the yield to maturity percentage.

Extract from the Minutes of the Monetary Policy Meeting of the Reserve Bank Board – 6 April 2010

International Economic Conditions

Recent data indicated that the global economy had continued to expand in early 2010. The recovery was still two-speed: growth was strong in the emerging and middle-income economies, particularly in Asia, but the expansion was less well-entrenched in some of the large advanced economies. Overall, Consensus forecasts suggested that global economic growth in 2010 would be around 4 per cent, which was about average.

Domestic Economic Conditions

GDP growth was 0.9 per cent for the quarter, which was a little stronger than expected at the time of the February Statement on Monetary Policy. With some upward revisions to earlier quarters, growth in 2009 was 2.7 per cent.

Conditions in the labour market were continuing to improve. While employment was estimated to have been unchanged in February, it had risen by around 200,000 since August.

Household surveys suggested that consumer sentiment had remained at a high level in recent months, though consumers appeared quite cautious in their spending; there had been little growth in retail spending over recent months.

The business surveys suggested that business conditions and confidence were both at above-average levels. However, there was some variation across sectors, and some caution in spending plans outside the mining sector. The non-residential building sector remained subdued and, abstracting from the surge in construction of educational facilities, new approvals were at relatively low levels.

Developments in commodity markets meant that the increase in the terms of trade through 2010 was likely to be substantially larger than forecast in the February Statement on Monetary Policy. This implied strong growth in nominal incomes in the Australian economy over 2010. The increases in coal and iron ore prices, along with the developments in the LNG sector, were also contributing to a strong outlook for investment in the resources sector.

Information on the housing market suggested that conditions remained buoyant. Nationwide capital city price growth was running at around 1 per cent per month in early 2010, and auction clearance rates had remained high in March, especially in Melbourne. On the demand side, population growth was strong, households had confidence about future income growth, and mortgage rates were at below-average levels. At the same time, the supply of new housing was not expanding sufficiently, partly because of the land usage policies of local and state governments and also because of the tightness of finance for developers. Members also noted that the current price growth was somewhat at odds with the falls in housing loan approvals over recent months.

Credit to the household sector had recently continued to grow at a moderate pace of around 0.7 per cent per month. The decline in business credit had slowed noticeably in early 2010, suggesting that the period of corporate deleveraging was coming to an end.

Financial Markets

In Australian markets, the Government guarantee for bank debt issuance had ceased at the end of March. There had been some use of the guarantee program in its final month, mostly by branches and subsidiaries of foreign banks. The major domestic banks had undertaken a solid amount of unguaranteed issuance.

In foreign exchange markets, the US dollar had appreciated against the currencies of the major advanced economies, though it remained quite low in a longer-run perspective. The Australian dollar had tended to appreciate over the past month and was at multi-year highs against the euro, pound sterling and New Zealand dollar.

The increase in the cash rate in early March had been passed through in full to most variable lending rates. Members noted that lending rates for housing and business were a little below their averages for the period since 1997.

Considerations for Monetary Policy

In the view of the Board, with forecasts suggesting that growth in the domestic economy in 2010 would be around trend and that inflation would be around 2½ per cent, consistent with the medium-term target, the level of interest rates in the economy would be expected to be close to average. This remained the underlying rationale for consideration of any adjustment to the cash rate in the current period. Since lending rates were still a little below average, members expected that they would probably need to rise further in the period ahead.

On the question of timing, the fact that the prospective rise in the terms of trade was now likely to be noticeably stronger than had been expected was a factor suggesting that it might be prudent not to delay adjustment. Overall, members considered that the outlook for the economy suggested that there was a case for a further step in the process of returning interest rates to more normal levels.

The Decision

The Board decided to raise the cash rate by 0.25 percentage points to 4.25 per cent, effective 7 April.

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 March 2010, is attached for Council’s information.

BUDGET

Total investment income for the year to date period ending March 2010 was $1,390,000. The budgeted income for the period was $715,000. Of the investment income, approximately 61% relates to external restrictions (Section 94) and is, therefore, restricted. The March Quarter review of the 2009/10 Budget recommends an increase to general fund investment income of $200,000 (refer to Report No CC26/10 for further details).

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

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 CC25/10 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 Mar 2010
2.View	HSC Borrowings Schedule as at 31 Mar 2010

File Reference: F2004/06987

Document Number: D01386434

Executive Manager's Report No. CC26/10

Corporate and Community Division

Date of Meeting: 19/05/2010

7 MARCH 2010 QUARTER REVIEW: 2009/10 - 2011/12 MANAGEMENT PLAN AND 2009/10 BUDGET

EXECUTIVE SUMMARY

The General Manager is required to report to Council each quarter as to performance against Council’s current Management Plan and Budget, including revised estimates of income and expenditure. In this regard, the March 2010 Quarter Review is attached.

The 2009/10 Original Budget forecast a deficit at 30 June 2010 of $343K. The September 2009 Review of the Budget included positive budget changes totalling $118K, whilst the December 2009 Review recommended positive changes of $235K. The 2010 March Review recommends positive budget changes of $200K thus amending the forecasted Budget result at year end to a $210K Budget surplus. The projected Budget surplus of $210K is a liquidity based result and is satisfactory in respect of movement in net available working funds for this financial year.

It is noted that there are a number of key asset sales for this financial year which are still to be brought to account. Part of the proceeds from the sale of those properties will be used to fund a strategic land acquisition in the Hornsby CBD. It would also be prudent to set aside the remainder of the proceeds to assist in improving Council’s working funds position; ensuring that Council’s employee leave entitlement and other corporate restricted asset accounts are maintained at appropriate levels; as well as addressing ageing infrastructure issues where possible. Updates in respect of these issues will be reported to Council in the June 2010 Quarter Budget Review.

It is recommended that the March 2010 Quarter Review be received and noted.

PURPOSE/OBJECTIVE

The purpose of this Report is to present for Council’s consideration the March 2010 Quarter Review of the Management Plan for 2009/10 – 2011/12 and the Budget for 2009/10.

DISCUSSION

On 10 June 2009, Council adopted its 2009/10 – 2011/12 Management Plan which included the 2009/10 Budget and 2009/10 Fees and Charges. The Management Plan sets out the manner in which Council intends to align its business goals with its intent of "creating a living environment" and is divided into the following five elements:

· Governance

· Ecology

· Economy

· Society and culture

· Human Habitat

It is noted that the adopted Budget forecast a deficit at 30 June 2010 of $343K.

The September 2009 Quarter Review

The September 2009 Review recommended $118K of positive budget changes, which led to a forecast deficit at year end of $225K. The positive budget changes emanated from an organisational review of restricted assets resulting in an identification of amounts which could be released from some restricted assets for general purpose use.

The December 2009 Quarter Review

The December 2009 Review identified labour savings in the Planning Division of $295K and incorporated an increased expense budget of $60K to be put towards a Playfix database update within the Environment Division. The net recommended changes were a positive $235K and the amended 2009/10 Budget forecast for 30 June 2010 became a surplus of $10K.

The March 2010 Quarter Review

The March 2010 Review includes the third quarter financial results for 2009/10, and compares actual expenditure and income from 1 July 2009 to 31 March 2010 against the Budget for the same period. The Net Operating and Capital result after internal funding movements at March 2010 has resulted in a favourable variance of $2.068 million compared to the March 2010 Budget. This positive variance has largely been the result of Budget timing, accrued expenditure not recognised when compared to Budget and phasing of the annual Budget.

The March 2010 Review recommends positive budget changes of $200K which amends the forecast Budget result at year end to a surplus of $210K. This projected budget surplus is a liquidity based result and is satisfactory in respect of movement in net available working funds for this financial year. The following budget changes are recommended:

· increased street lighting expenditure ($55K)

· increased road restoration income (-$70K)

· increase advertising costs to cover Kangaroo Point expression of interest ($12.5K)

· net cost reduction for Aquatic Centres (-$112.5K)

· allocation provided to upgrade Council’s main electrical switchboard ($75K)

· increased investment returns (-$200K)

· increased expenditure allocation towards Hornsby Pool redevelopment ($40K)

· increased budget of $25K for Men’s Shed extension funded by property services savings

It is noted that there are a number of key asset sales for this financial year which are still to be brought to account. They are the sale of old Cherrybrook Nursery and Pre-school site as well as Council property in Pound Road, Hornsby. Part of the proceeds from the sale of those properties will be used to fund a strategic land acquisition in Lynda Street, Hornsby. It would also be prudent to set aside the remainder of the proceeds to assist in improving Council’s working funds position; ensuring that Council’s employee leave entitlement and other corporate restricted asset accounts are maintained at appropriate levels; as well as addressing ageing infrastructure issues where possible.

Updates in respect of the above issues will be reported to Council in the June 2010 Quarter Budget Review.

BUDGET

This Report provides the March 2010 Quarter Review of the 2009/10 Budget.

POLICY

There are no specific policy implications associated with this Report.

CONSULTATION

All Divisions and appropriate staff have had input into the December 2009 Quarter Review process.

TRIPLE BOTTOM LINE SUMMARY

Triple Bottom Line is a framework for improving Council's 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 does not propose any actions which require a sustainability assessment, no Triple Bottom Line considerations apply.

RESPONSIBLE OFFICER

The officers responsible for preparation of this Report are Julie Williams - Manager, Corporate Strategy and Glen Magus - Manager, Financial Services. They can be contacted on 9847-6790 and 9847-6635 respectively.

RECOMMENDATION

THAT the March 2010 Quarter Review of the Management Plan for 2009/10 – 2011/12 and the Budget for 2009/10 be received and noted.

Gary Bensley

Executive Manager

Corporate and Community Division

Robert Ball

General Manager

General Manager Division

Attachments:

1.View

March 2010 Quarter Review

File Reference: F2008/00630

Document Number: D01390997

Executive Manager's Report No. CC27/10

Corporate and Community Division

Date of Meeting: 19/05/2010

8 DURAL AND DISTRICT HISTORICAL SOCIETY - PROPOSED LEASE OF COTTAGE - PART OF GALSTON RECREATION AREA - CROWN RESERVE D500223 AND R81698 - 412X GALSTON ROAD, GALSTON

EXECUTIVE SUMMARY

At the March 2010 Ordinary Meeting, Council considered the future lease of the cottage building and surrounds located within Galston Recreation Reserve and resolved to invite expressions of interest to lease the property. Council requested that following receipt of expressions of interest, a report be provided for consideration of the Community, Cultural and Recreation Facilities Task Force and subsequently by the Council.

Expressions of interest were invited under Tender No T7/2010 and only one submission was received, that being from the Dural and District Historical Society Inc (The Society). As a consequence, the Task Force agreed at its April 2010 meeting that the matter should be referred directly to Council for consideration.

This Report provides comments from officers regarding the expression of interest received and also seeks Council’s endorsement, as Reserve Trust Manager, to enter into a further lease of the cottage building and surrounds with The Society.

PURPOSE/OBJECTIVE

The purpose of this Report is to provide Council with details of the proposal received following a public invitation for expressions of interest to lease the cottage building and surrounds located within the Galston Recreation Reserve; and to recommend that Council enter into a lease with the Dural and District Historical Society Inc.

DISCUSSION

At the 9 December 2009 Ordinary Meeting, Council, as Reserve Trust Manager, considered Report No CC105/09 and resolved that:

1. The contents of Executive Manager’s Report Nos CC76/09 and CC105/09 be received and noted.

2. Council invite expressions of interest from the Dural and District Historical Society, as well as any other interested commercial and community groups, in respect of a lease of the cottage located at Galston Recreation Reserve, Galston.

3. As part of the expression of interest process, the Dural and District Historical Society and community groups be encouraged to make reference to the contents of Council’s two related strategic documents i.e. the Community and Cultural Facilities Strategic Plan and the Code for the Lease Licence of Council’s Land and Buildings to Community Groups. In this regard, an important component of the Strategic Plan is the goal of maximising utilisation of community facilities through making them available to multiple users for multiple purposes where possible.

4. At the conclusion of the expression of interest process, a report be prepared for consideration by the Community, Cultural and Recreation Facilities Task Force and subsequently by Council.

A public invitation seeking expressions of interest to lease the cottage and surrounds was made to The Society and other interested community groups. The details are provided in the CONSULTATION section of this Report. It should be noted that, due to the open space zoning of the land and the current approved purpose applying to this section of the Galston Recreation Crown Reserve, commercial usage of the cottage building is not permissible.

At the closing date for receipt of proposals, only one submission had been received, this being from The Society (copy attached). A summary of The Society’s offer in respect of its proposed lease of the property is included on page 11 of their submission and is repeated below for Council’s information:

DDHS believes it qualifies as a Nominal rent ($260.00 per annum exclusive of GST) subsidy category community group although it cannot fully meet the eligibility item to take responsibility for all capital and full maintenance of the facility. Given the Society’s dependence on mutual funding it is proposed to offer to pay $500.00 per annum rental.

In addition the Society is prepared to partner Council through work done in place of payment. Examples of such work might be a watching brief on the Galston Cenotaph, publication of research ongoing of the names engraved on the Cenotaph, preparation of design concepts and organisation of the construction for special seating and an area of inscribed pavers to record pioneering families and local events, and history research for properties that are heritage listed and subject to DA proposals, etc. As part of Council’s upgrading of the Cenotaph surrounds the DDHS will contribute at least $7000.00 and materials, towards the upgrading of the rear grounds of the Cottage to provide an addition to the facilities of the Galston Recreation Reserve that could, under conditions, be used by the public. The $7000.00 was donated and early sandstone stock bricks purchased, for this purpose and the Society anticipates further public donations when the project is able to be announced. Local landscape architect Fiona Robbe and architect Rolf Chrystal, both of whom are known to Council, have been employed to draft plans for discussion with Council.

In light of only one proposal being received, it was agreed at the April 2010 meeting of the Community, Cultural and Recreation Facilities Task Force that the matter should be referred directly to Council as Reserve Trust Manager for consideration. Comments from relevant officers regarding the leasing proposal submitted by The Society are set out below for the information of Council.

The cottage building is situated on the Crown Reserve at Galston Recreation Reserve (412x Galston Road, Galston). As previously reported to Council, The Society has leased the cottage building and surrounds since 1995 under a lease agreement with Council as Reserve Trust Manager. The current rental is $70 per annum, noting that the rental has been adjusted annually in accordance with the CPI.

The cottage building and surrounds have been used by The Society as a meeting hall for members of The Society and other community organisations; a facility for historical research by the public; an historical library and museum; and a kiosk and tearoom. In addition, The Society has allowed the Galston Computer Pals to use, on a regular basis, space within the building for training and meeting purposes. The charging of a peppercorn rental by Council recognised the contribution that The Society made to the betterment of the building during the term of its lease agreement.

Whilst The Society’s rental offer is substantially less than the amount recently assessed in accordance with Council’s Code for the Lease/Licence of Council’s Land and Buildings to Community Groups, Council officers consider that, in light of the limited response to the invitation to lease, Council’s interests would not be adversely affected if the offer made by The Society was accepted. Comments concerning the financial implications in accepting the rental offer are contained within the BUDGET section of this Report.

It is noted within the leasing proposal that, while seeking a further ten year lease, The Society is only willing to maintain at their own expense the internal components of the building, with all other maintenance and repair responsibilities resting with Council. In line with the objectives of Council’s Code for the Lease/Licence of Council Land and Buildings to Community Groups, the term of any lease of a “facility” shall have regard to the level of capital contribution made by a community group and Council. Taking into consideration the level of capital contribution proposed (during the further lease period) by The Society, Council officers consider that the term of any further lease with The Society should be limited to a maximum of five years. The granting of a further five year lease to The Society will also meet the provisions of Council’s Lease/Licence of Council Land policy.

It is apparent from the lease proposal that The Society will continue to allow the Galston Computer Pals regular access to the cottage to conduct both training and monthly meetings. Such an arrangement is in keeping with the purpose and use of the property and assists in achieving optimum occupancy of Council managed premises.

Having regard to the comments provided above, it is recommended that a further lease in respect of the cottage building and surrounds located within the Galston Recreation Reserve be granted to the Dural and District Historical Society Inc. on the basis outlined in the RECOMMENDATION of this Report.

BUDGET

The granting of a further lease to The Society on the basis outlined in this Report will realise a slight increase in the level of income received by Council. The charging of such rental will also result in a corresponding reduction in the level of foregone rental provided to community groups across the Shire.

POLICY

This Report has been prepared having consideration to the Code for the Lease/Licence of Council Land and Buildings to Community Groups, the Community and Cultural Facilities Strategic Plan and Council’s Lease/Licence of Council Land Policy.

CONSULTATION

A public invitation seeking expressions of interest to lease the cottage building and surrounds was placed in the Hills News, Northern District Times and Hornsby and Upper North Shore Advocate newspapers during the week commencing 2 March 2010, requesting the receipt of leasing proposals by 10.30am on Wednesday 24 March 2010. A copy of the expression of interest document was provided to representatives of the Dural and District Historical Society Inc on 5 March 2010. In accordance with point 4 of Council’s resolution under Report No CC105/09, the leasing proposal received from The Society was tabled for consideration at the April 2010 meeting of the Community, Cultural and Recreation Facilities Task Force.

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 this Report, contribution would be made 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 Mrs Robyn Abicair - Manager Administration Services Branch and Mr Rod Drummond – Manager, Commercial Property. They may be contacted on 9847-6608 and 9847-6589 respectively.