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. Dick Udy of Dural Anglican Church 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 acknowledge we are on the traditional lands of the Darug and Guringai Peoples. We pay our respects to elders past and present."

AUDIO RECORDING OF COUNCIL MEETING

Statement by the Chairperson:

"I advise all present that tonight's meeting is being audio recorded for the purposes of providing a record of public comment at the meeting, supporting the democratic process, broadening knowledge and participation in community affairs, and demonstrating Council’s commitment to openness and accountability. The recordings will be made available on Council’s website once the Minutes have been finalised. All 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 17 August, 2011 be confirmed; a copy having been distributed to all Councillors.

Petitions

Mayoral Minutes

Notices of Motion

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Item 1 NOM10/11 ELECTRICITY PRICES

COUNCILLOR Hutchence To Move

THAT the Executive Manager, Environment prepare a report for Council’s consideration, investigating ways, including group purchasing schemes, of reducing the impact of rising electricity prices on Hornsby residents and Council.

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 GM18/11 Contractual Conditions of Senior Staff

RECOMMENDATION

THAT the contents of General Manager’s Report No GM18/11 be received and noted.

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Item 3 GM19/11 Additional Movie Programme - Trial of community partnership model

RECOMMENDATION

THAT:

1. Council endorse the proposal to trial additional outdoor movies in March 2012 as outlined in the body of this report (GM19/11)

2. Council agree to the transfer of $15,000 from the OneWorld Festival budget to the trial of a community partnership model for outdoor movies

3. The results of the trial be included in a report to Council in April 2012 outlining the 2012/13 Calendar of Events.

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Item 4 GM20/11 Review of Internal Audit Plan 2010/2011 (As at 30/06/11)

RECOMMENDATION

THAT:

1. The contents of General Manager’s Report No. GM20/11 be received and noted.

2. A review of the Internal Audit Plan continues to be presented to Council on a half yearly basis.

Corporate and Community Division

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Item 5 CC5/11 Future Use of 179 Beecroft Road, Cheltenham

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No. CC5/11 be received and noted.

2. Council approve the marketing and sale of 179 Beecroft Road, Cheltenham subject to the minimum prices stated within the confidential attachment to Executive Manager’s Report No. CC5/11.

3. Council agree to suspend the “Use of Funds Generated by Land Property Sales” Policy for this matter and provide for the use of the net proceeds of the sale to fund the upgrade of community facilities in C Ward.

4. The General Manager be authorised to determine the most appropriate method and timing of sale, reserve and asking prices subject to the minimum prices stated within the confidential attachments to Executive Manager’s Report No. CC5/11 and negotiate finer details of the sales agreement, if required.

5. The General Manager be authorised to execute any legal documents in relation to this matter deemed appropriate by Council’s legal advisors.

6. If required by the absence of the General Manager or by legal statute, Council authorise the use of Council’s seal on Contract for Sale of Land and Transfer of Sale of Land documents in relation to this matter, subject to review and authorisation by an Executive Manager of Council.

7. Council terminate the Epping RSL Golden Kangaroos occupation of the Hall and carparking spaces in line with the provisions of their expired lease and licence agreements.

8. The Epping RSL Golden Kangaroos be encouraged to seek re-accommodation at the Beecroft Community Centre by discussing the matter with the Management Committee.

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Item 6 CC43/11 2010/11 Investments and Borrowings - period ending June 2011 (Pre-Audit)

RECOMMENDATION

THAT the contents of the Executive Manager’s Report No. CC43/11 be received and noted

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Item 7 CC44/11 Disclosures 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.

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Item 8 CC45/11 Headen Park Hall, Thornleigh - Future Use

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No CC45/11 be received and noted.

2. Council not offer the Headen Park Hall for further community lease due to the condition of the building and cost of renovations and repairs and instead seek to sell the building itself and return the area previously occupied by the Hall to open space.

3. Proceeds from the sale of the building contribute to the cost of making good the land previously occupied by Headen Park Hall in the first instance.

4. In the event that surplus funds are available post the implementation of Point 3 above, the balance of funds be used to assist the Beecroft Cherrybrook Junior Rugby Club Inc to be reaccommodated.

5. The Beecroft Cherrybrook Junior Rugby Club Inc be allowed to continue the holding over provisions of their licence until such time as the building is sold.

6. Once a sale date is known for the building, Council formally terminate the licensed use of the storage room in Headen Park Hall currently held by Beecroft Cherrybrook Junior Rugby Club Inc.

7. If required, a further report be prepared for Council’s consideration at or prior to the December 2011 Ordinary meeting outlining opportunities to reaccommodate the Beecroft Cherrybrook Junior Rugby Club Inc.

8. The Beecroft Cherrybrook Junior Rugby Club Inc be required to fund any capital cost involved in the relocation of their storage space.

9. Council staff work with the Beecroft Cherrybrook Junior Rugby Club Inc to identify grant funding opportunities to assist in the relocation of their storage facility.

10. In the event that Headen Park Hall cannot be disposed of in a cost effective manner via a sale, the building be demolished with the cost of the demolition to be considered at the next available quarterly budget review.

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Item 9 CC48/11 Application for Lease of Ground, Lower Ground and Mezzanine Floors - 11 Coronation Street, Hornsby - Lifeline Harbour to Hawkesbury

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No. CC48/11 be received and noted.

2. Council issue a public invitation to lease the premises at 11 Coronation Street, Hornsby from both commercial entities and community groups for a maximum term of up to five years.

3. Following receipt of the public invitation to lease submissions referred to in point 2 above, a report be prepared for Council’s consideration detailing the outcomes of the process.

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Item 10 CC49/11 Social Plan - Report On Achievements 2010/11; and Update on Homelessness Task Force

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No. CC49/11 be received and noted.

2. Council officers continue to represent Council on the Hornsby Homelessness Task Force and that actions associated with the issue of homelessness continue to be included in annual Council Operational Plans at a level commensurate with the scale of the issue relative to other social issues that Council addresses.

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Item 11 CC50/11 Application for Lease of 1-3 Jersey Street, Hornsby - Fusion Australia Limited

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No. CC50/11 be received and noted.

2. Council issue a public invitation to lease the premises at No.1-3 Jersey Street Hornsby from both commercial entities and community groups for a maximum term of up to three years.

3. Following receipt of the public invitation to lease submissions referred to in point 2 above, a report be prepared for Council’s consideration detailing the outcomes of the process.

Environment Division

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Item 12 EN29/11 Carbon Price Impact - Review of Federal Government Reports

RECOMMENDATION

THAT Council receive and note the contents of Executive Managers Report No EN29/11.

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Item 13 EN31/11 Parks Capital Works 2010-2011 June Quarter Progress Report

RECOMMENDATION

THAT Council receive and note the contents of Executive Manager's Report No. EN31/11.

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Item 14 EN34/11 2011/2012-2012/2013 Parks Improvement Program

RECOMMENDATION

THAT the Open Space Assets Program as shown in Attachment 1 be adopted.

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Item 15 EN35/11 Application to Revoke Dangerous Dog Order

RECOMMENDATION

THAT Council:

1. Refuse the request to revoke the dangerous dog order imposed on Choc on 13 October 2009; and

2. Give notice to the owner that Council has refused to revoke the dangerous dog order.

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Item 16 EN36/11 NSROC Tender T9/2011-Supply & delivery, Supply, delivery & lay, Prepare surface, delivery & lay Cultivated Turf.

RECOMMENDATION

THAT Council accept the tenders submitted by:

· Grechs Turf Pty Ltd

· Hi Quality Turf

· Qualturf Pty Ltd (NSW)

· Millers Turf Supplies Pty Ltd



for NSROC Tender No. T9/2011 Supply and Delivery, Supply, Delivery and Lay and/or Prepare Surface, Delivery and Lay Cultivated Turf.

Planning Division

Nil

Works Division

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Item 17 WK41/11 Appointment of Local Controller, Hornsby State Emergency Service

RECOMMENDATION

THAT Council endorse Mr Robert Corbett’s re-appointment to the position of Hornsby State Emergency Service Local Controller for a further two year period.

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Item 18 WK42/11 Works Building Services - Graffiti and Vandalism June 2011 Quarterly Report

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. WK42/11 be received and noted.

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Item 19 WK43/11 Engineering Services - Building Capital Works Program 2010/2011 - June 2011 Quarterly Report

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. WK43/11 be received and noted.

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Item 20 WK44/11 Engineering Services - Public Buildings and Aquatic Centres Capital Renewal Works Program 2011/2012

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No. WK44/11 be received.

2. Council adopt the program attached to this report.

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Item 21 WK45/11 Works Progress Report - June 2011 Quarterly Report - Assets Branch

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. WK45/11 be received and the completion of the various activities in the 2010/11 Assets Branch Programmes be noted.

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Item 22 WK46/11 Edgeworth David Avenue. Proposed traffic road safety measures.

RECOMMENDATION

THAT Council adopt in full the Local Traffic Committee recommendations of report LTC 24/2011 including Recommendation 4, the installation of “No Right Turn” sign restrictions as shown on plans LTC CP 27/2011.

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Item 23 WK52/11 Robert Road, Cherrybrook. Request for parking restrictions at Oliver Way

RECOMMENDATION

THAT Council adopt the Local Traffic Committee recommendation contained in Report LTC 25/2011 to not provide parking restrictions near the driveway to Oliver Way in Robert Road at this stage, and the road be monitored.

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Item 24 WK48/11 Tender T9/2011: Minor Asphalt Works

RECOMMENDATION

THAT Council accept the tender of Kizan Pty Ltd (trading as A & J Paving) for all work under Tender No. T9/2011: Minor Asphalt Works.

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Item 25 WK49/11 Tender T10/2011: Stabilisation of Road Pavements

RECOMMENDATION

THAT:

Council accept the tender of Accurate Asphalt & Road Repairs Pty Ltd for all work under Tender No. T10/2011 Stabilisation of Road Pavements.

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Item 26 WK50/11 Works Progress Report - June Quarter 2011 - Design and Construction Branch

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. WK50/11 be received and noted.

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Item 27 WK51/11 Works Progress Report - June 2011 Quarterly - Traffic and Road Safety Branch

RECOMMENDATION

THAT Council endorse the activities undertaken by the Traffic and Road Safety Branch for the period 1 April 2011 to 30 June 2011.

SUPPLEMENTARY AGENDA

CONFIDENTIAL ITEMS

PUBLIC FORUM – NON AGENDA ITEMS

Mayor's Notes

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Item 28 MN8/11 Mayor's Noted from 1 to 31 July 2011

Questions of Which Notice Has Been Given

QUESTIONS WITHOUT NOTICE

General Manager's Report No. GM19/11

General Manager Division

Date of Meeting: 24/08/2011

3 ADDITIONAL MOVIE PROGRAMME - TRIAL OF COMMUNITY PARTNERSHIP MODEL

EXECUTIVE SUMMARY

Outdoor movies are a popular cultural event that offer families and groups the opportunity to share and connect with their communities, demonstrated by the 1,000 to 3,000 people who attend each council-run film screening. Each outdoor movie screening costs approximately $13,000. Council’s total annual budget for movies is $40,250 and therefore the programme of outdoor movies has been restricted to 3 or 4 events per year.

Council requested staff investigate sponsorships and community support as a possible way of delivering an expanded programme of movies.

Given the community inexperience in managing and producing an outdoor movie screening, and the up-front cost of hiring the film, the screen and the production on the night; this report recommends the scheduled February 2012 Movies under the Stars programme be run by Council staff as per previous years, and that a trial of 3 additional outdoor movies be delivered by interested community groups in partnership with Council in March 2012.

In the proposed model Council would provide $5,000 to secure a film for each movie night in March, funded from within existing resources, with the community group being responsible for all other aspects relating to the movie night. Council staff would provide support and advice to the groups, particularly in the planning phase, in order to build capacity within those groups to host similar events in the future.

If successful, the trial may become a cost effective model for all future movie programmes in which Council provides front end financial support ($5,000 per movie) and administrative support (staff time) to enable community groups to manage and be responsible for an event that offers wide community participation and enables the community group to increase their local profile and fund raise in a viable manner.

The outcomes of the trial programme would be reported to Council as part of the annual Calendar of Events report.

PURPOSE/OBJECTIVE

The purpose of this report is to propose a trial of a community partnership model for a programme of three outdoor movie events in March 2012. The results of the trial will be used to inform the provision of all outdoor movies in the future.

DISCUSSION

Council, at its Ordinary Meeting in April 2011, adopted the 2011/12 Events Calendar including the 2012 Movies under the Stars programme of four movies to be screened in February 2012. The location for the movie screenings are:

o Asquith

o Epping

o Westleigh

o Berowra

At the same meeting Council requested Council officers investigate the availability of sponsorship and / or community organisation support for the operation of all outdoor movie events. Council also endorsed the inclusion of an additional movie event at Cherrybrook if sponsorship and / or community organisation support could be secured for this additional event. Council also noted that a request had been received from the IABBV Hindi School for the screening of a Bollywood film.

The uncertainty surrounding the review of internal services, and the subsequent branch amalgamations and rationalisation has meant the above Council request regarding the seeking of sponsorship and / or community organisation support has not progressed beyond securing an agreement with Cumberland Newspapers (Hornsby Advocate) for discounted advertising of events including outdoor movies, and preliminary investigations for the submission of a development application if the Cherrybrook movie event occurs at Greenway Park.

This report proposes a modified approach in which Council hosts the Movies under the Stars programme in February as ‘Council run’ events similar to previous years, and seeks to partner with community organisations to provide three additional movie events in March 2012 as a trial of a community partnership model for delivering outdoor movies.

The proposal

The proposed approach is for the March 2012 movie program to be run as a trial of a community partnership model with community groups being responsible for the organisation, promotion and management of the movie events, and Council providing oversight and financial assistance of $15,000 ($5,000 per movie event) which would be funded from downsizing of the OneWorld Festival due to construction works in Hornsby Park at that time.

It is envisaged the trial would include three movie events as a community partnership and the events might be:

1. A Bollywood style film screening on the Saturday evening of the OneWorld Festival. This movie night could possibly be managed by the IABBV Hindi School and the Thornleigh West Public School with support from Council and would link with both the OneWorld Festival and Harmony Day

2. A film screening managed by a Cherrybrook community group and /or local school with support from Council. This event may be the opportunity to celebrate the playing fields upgraded by Council on land of John Purchase Public School and Cherrybrook Technology High School at the rear of Greenway Park

3. A third film screening at a location to be determined by Councillors

If successful, the trial may become a model for all future movie programmes in which Council provides front end financial support ($5,000 per movie) and administrative support (staff time) to enable community groups to manage and be responsible for an event that offers wide community participation and enables the community group to increase their local profile and fund raise in a viable manner.

Community groups and other volunteer organisations traditionally tend to fund raise via low scale ‘effort intensive’ projects such as selling chocolates, raffles, barbeques etc because they usually lack the start-up funds required for more viable fund raising events like an outdoor movie event. Outdoor movies require approximately $5,000 to hire the large screen, the film and the film production at the event. Most groups are unable to commit this level of up-front funds.

The fund raising potential at an outdoor movie event is likely to be a mix of cash donations, raffles, hire of picnic blanket, and food purchase. Attendance at outdoor movie events range from 1,000 people up to approximately 3,000 people and therefore the community groups could realistically expect to raise $10,000 to $20,000 per event.

In the proposed model Council would provide $5,000 for each film night in March, with the community group being responsible for all other aspects relating to the movie night including advertising, set-up, providing catering and clean-up post event. Council staff would provide support and advice to the groups, particularly in the planning phase, in order to build capacity within those groups to host similar events in the future. A staff member would also attend each community movie event to ensure Council’s branding protocols are adhered to.

Council’s main risk exposure would be loss of reputation if the event is poorly managed and Council is implicated as a sponsor. The provision of oversight and advice by Council staff should go a long way to ameliorating this risk. In response to other potential risks, Council’s Risk Manager advises the development of an agreement containing an indemnity release which must be signed by the community groups before receiving any funds.

Each council-run outdoor movie event costs approximately $13,000 per event. This figure includes the ancillary costs of advertising, set-up, take-down, clean-up and staff time at the event as well as the staff costs associated with planning, organising and preparing for the event. This model will trial a cost effective way of increasing community access to an outdoor event while at the same time supporting local community groups to raise funds, and increase their capacity to undertake similar events in the future.

The advantages of this approach

o While there is an additional cost of $15,000, a community partnership model may prove to be a more cost efficient way to provide all outdoor movies in future years

o The trial would demonstrate community enthusiasm for outdoor movies and may enable an expanded programme in future years

o Community groups will have the opportunity to effectively fund raise to pursue their ambitions

o The potential reach of the movie event program is broadened throughout the community

Disadvantages of this approach

o The first year requires a commitment from Council of $15,000, however the 2012 OneWorld Festival is likely to be scaled down due to building works in Hornsby Park and therefore the funds will be available within the existing event budget allocation

o Council staff will need to assist community groups to build capacity in event management

o Council staff will need to oversee council-branding to ensure adequate recognition of Council’s support at all outdoor movie events

Measures of success

The three main success measures relate to:

1. The enthusiasm of community groups to partner with Council (the number and type of responses from community groups regarding the opportunity to host and manage an outdoor movie event)

2. The willingness of communities to support cultural events in their local area (the number of attendees at each outdoor movie event and their positive and / or negative feedback regarding the event)

3. The capacity building impact of enabling community groups to promote themselves in a more viable manner (feedback from the community groups hosting each event regarding lessons learnt and willingness to participate again)

BUDGET

While endorsement of the proposed trial of three community managed outdoor movies will require expenditure of $15,000, the funds are available within the existing 2011/12 events budget as a result of downsizing the OneWorld Festival due to proposed infrastructure works in Hornsby Park in March 2012.

POLICY

This report does not have any policy implications.

CONSULTATION

This proposal has evolved following a mayoral interview in April 2011 with representatives of the Hindi community. Council’s events coordinator has been involved in preparing this proposal.

TRIPLE BOTTOM LINE SUMMARY

Economy – a resilient local economy and sustainable resource use

Enabling local groups to raise funds to pursue their ambitions encourages a positive attitude towards volunteering and contributing to the local community.

Society and Culture – enhance social and community wellbeing

Supporting local groups to provide community and cultural benefit by hosting a movie night encourages participation in the community and increases the sense of belonging for both the volunteers and the people who participate in the event. People with strong community, cultural and family ties have a better sense of health and wellbeing than those who are isolated.

Human Habitat – effective community infrastructure and services

The capacity of the community to respond to its own needs is enhanced when volunteers of all ages are supported and assisted.

Governance – guidance towards a sustainable future

Encouraging local groups to take a leadership role in providing cultural events is an effective and cost efficient way to facilitate local events.

RESPONSIBLE OFFICER

The officer responsible for this report is Julie Williams, Manager Strategy and Communications and she can be contacted on 9847 6790.

RECOMMENDATION

THAT:

1. Council endorse the proposal to trial additional outdoor movies in March 2012 as outlined in the body of this report (GM19/11)

2. Council agree to the transfer of $15,000 from the OneWorld Festival budget to the trial of a community partnership model for outdoor movies

3. The results of the trial be included in a report to Council in April 2012 outlining the 2012/13 Calendar of Events.

Robert Stephens

Acting General Manager

Attachments:

There are no attachments for this report.

File Reference: F2004/08423-02

Document Number: D01722622

Executive Manager's Report No. CC5/11

Corporate and Community Division

Date of Meeting: 24/08/2011

5 FUTURE USE OF 179 BEECROFT ROAD, CHELTENHAM

EXECUTIVE SUMMARY

In April 1990, Council acquired the property at 179 Beecroft Road, Cheltenham. The Epping R.S.L. Golden Kangaroos Hornsby Concert Band Inc has occupied the main Church Hall on the property since 1 August 1990 under a number of lease agreements, the last of which expired on 30 September 2007. Since that time, the Band has occupied the building on the holding over provisions of the expired lease. The Band currently pays a rental of $1,532 per annum (inclusive of GST) for its use of the Hall, which represents a foregone rental to Council of approximately $34,000 per annum.

Generally, properties/facilities leased to community groups under the provisions of the Code for the Lease/Licence of Council Land and Buildings to Community Groups (Attachment 1), rely on the in kind contributions from the respective community group renting the facility and/or the income derived from the lease of the facility to fund the maintenance required at the facility.

In preparing this Report, Council officers formulated a Condition and Backlog Maintenance Report and a 20 Year Asset Maintenance Plan was developed for the Hall. The Condition and Backlog Maintenance Report indicates that there is approximately $200,000 in backlog maintenance work required to bring the Hall up to an acceptable condition. This includes $66,000 in works of a safety related nature. On completion of this backlog maintenance, the 20 Year Asset Maintenance Plan indicates that Council should be allocating an average of $42,000 per annum to maintain the Hall at an acceptable condition.

The three options which appear to exist for the future use of this property are to continue to offer the property for lease under the Code for the Lease/Licence of Council Land and Buildings to Community Groups; offer the property for lease without subsidy; or dispose of the property. Each of these options is discussed in detail in the Report and are supported by recommendations that would be appropriate if that option was supported by Council.

It is recognised that the future use of 179 Beecroft Road, Cheltenham is a difficult issue to resolve in that community needs are required to be balanced against the capital cost to Council of keeping and maintaining a building of local heritage significance. The fact that a significant backlog of maintenance has accumulated, adversely impacts on the structural integrity of the building and substantial funding needs to be allocated to the maintenance of the building to ensure its longevity.

Council officers are of the opinion that the most appropriate course of action is for Council to dispose of the property and invest the proceeds from the sale into other C Ward community facility projects. This recommendation is made acknowledging that backlog maintenance funding is unlikely to be available in the current financial climate noting that Council is in the process of conducting service reviews to meet budgetary targets.

PURPOSE/OBJECTIVE

The purpose of this Report is to provide Council with options in respect of the future use of the property at 179 Beecroft Road, Cheltenham, a property which is currently tenanted by the Epping R.S.L. Golden Kangaroos Hornsby Concert Band Inc under the holding over provisions of an expired lease.

DISCUSSION

Background

In April 1990, Council acquired the property at 179 Beecroft Road, Cheltenham containing a former Church Hall and a small fibro hall at the rear of the property. The Epping R.S.L. Golden Kangaroos Hornsby Concert Band Inc has occupied the main Church Hall (the Hall) since 1 August 1990 under a number of lease agreements, the last of which expired on 30 September 2007. Since that time, the Band has occupied the building on the holding over provisions of the expired lease.

The property, which is contained within Lots 83 and 84 in Deposited Plan 9085, has a site area of 1977.1 square metres. It is currently classified as Operational Land and is zoned Residential AS (Low Density Sensitive Lands) in which community facilities, child care centres and recreation facilities are permissible with development consent. The Hall and grounds are listed in Schedule D of the Hornsby LEP 1994 as heritage items of local significance. The property is in a heritage conservation zone, the objective of which is to provide for continuity with the past by conserving the heritage of the Hornsby area.

The Band currently pays a rental of $1,532 per annum (inclusive of GST) for its use of the Hall, which represents a foregone rental to Council of approximately $34,000 per annum, having regard to advice received from Council’s consultant real estate valuer. In addition to the lease of the Hall, the Band has a licence to allow the parking of two vehicles, on a section of the land adjacent to the Hall. The small fibro hall is dilapidated to the extent that it is no longer a viable leasing proposition.

Options for Future Use of the Property

The three options which appear to exist for the future use of this property are:

· Continue to offer the property for lease under the Code for the Lease/Licence of Council Land and Buildings to Community Groups (the Code).

· Offer the property for lease without subsidy

· Dispose of the property.

Asset Management Considerations

Generally, properties/facilities leased to community groups under the provisions of the Code for the Lease/Licence of Council Land and Buildings to Community Groups, rely on the in kind contributions from the respective community group renting the facility and/or the income derived from the lease of the facility to fund the maintenance required at the facility. As such, the Code attempts to offset in kind asset maintenance with monies paid in rent such that higher rental costs require lower in kind contributions to asset maintenance and vice versa. This approach is designed to ensure that Council assets are appropriately maintained to an acceptable standard in order to maintain their use by the community in the longer term.

In preparing this Report, Council officers formulated a Condition and Backlog Maintenance Report and a 20 Year Asset Maintenance Plan was developed for the Hall. Respectively, these documents allow Council to understand the maintenance work required to bring the Hall up to an acceptable condition and also the ongoing cost of keeping the building at an acceptable level of condition for the next 20 years.

With respect to the Hall at 179 Beecroft Road, the Condition and Backlog Maintenance Report indicates that there is approximately $200,000 in backlog maintenance work required to bring the Hall up to an acceptable condition. This includes $66,000 in works of a safety related nature. On completion of this backlog maintenance, the 20 Year Asset Maintenance Plan indicates that Council should be allocating an average of $42,000 per annum to maintain the Hall at an acceptable condition.

Council’s attention is drawn to the discrepancy between the rental currently paid by the tenant (i.e. $1,532 per annum) and their subsequent maintenance responsibilities (described below in the discussion pertaining to Option One), and the maintenance costs estimated in the 20 Year Asset Maintenance Plan. In summary, if funding for the maintenance (backlog and recurring) of the Hall is not forthcoming, either in the form of higher rental returns, in kind contributions or funding contributions from Council, the asset value and condition will continue to decline. Taking into consideration the estimated value of work ($66,000) that has been identified as being safety related, officers consider that the Hall may become uneconomical to maintain. To offer a lease of the Hall in its present condition may have adverse implications for Council if the safety related issues are not urgently addressed.

_________________________________

Option One – Lease Under the Code

Band’s Request for a New Lease

Following the expiration of their current lease, the Epping RSL Golden Kangaroos Inc submitted an application requesting a new lease of the Hall for a period of five years which was to be assessed in line with the provisions of Council’s Code for the Lease/Licence of Council Land and Buildings to Community Groups. A copy of this application is available on file.

The Code, which was originally adopted by Council in May 2007, provides a framework for the equitable, efficient and effective lease/licence of Council’s property assets to community groups. The Code assists Council officers to assess community group applications for the use of Council land and buildings in a transparent manner, based on agreed eligibility criteria, and to formulate appropriate lease/licence terms and conditions for consideration by Council.

An assessment of the lease application received from the Band was undertaken in line with the criteria set out in the Code. The assessment by Council officers determined that the Band should be offered a lease of the Hall in line with the “Discounted Market Rent” category of the Code. Officers considered that if Council was supportive of granting the Band a further lease of the Hall, the following Heads of Lease arrangements should be applied:

1. Period of lease – three years.

2. Use of Property – musical tuition, rehearsal, audition centre and for meetings associated with the Band.

3. Rental as per Code – $19,503 per annum inclusive of GST.

4. Rental Review – Annual CPI adjustments.

5. Statutory Outgoings – 50% Payment of any Council and water/sewerage rates.

6. Operating Costs – 100% of electricity, gas, telephone, water usage, etc.

7. Insurance – Public liability insurance, indemnity $20 million.

8. Legal fees – 50% of lease preparation costs.

9. Maintenance as per Code – Responsible for repairs and maintenance of the premises as shown in the “Discounted Market Rent” Category of the Code.

In respect of the statutory outgoings and operating costs, it is noted that currently Council rates ($3,769 per annum) and Water/Sewerage rates ($200 per annum) levied on the property are paid by Council with electricity, gas and water usage charges being met by the Band.

Advice of the above draft Heads of Lease arrangement was provided to the Band who subsequently made a further submission (see Attachment 2) which objects to and comments on the assessment undertaken by Council officers. The main issues raised by the Band concern the term of the lease being offered, their inability to pay the proposed rental and outgoings and the proposed maintenance obligations.

Officer Comments on the Submission by the Epping RSL Golden Kangaroos

Lease Term and Maintenance

In line with the provisions of the Code, the length of any lease tenure shall have regard to the level of capital contributions made by a community group to the facility to be leased. Capital contribution is defined under the Code as “Monetary or other contribution (e.g. donated labour and materials) which improves, enhances, or adds value to the facility based on the replacement/refurbishment cost/s assessed in line with industry accepted quantity surveying principles.”

Based on information provided by the Band, it is apparent that since commencing occupation of the Hall in 1990, the level of capital contribution provided by the Band has been limited to undertaking the internal fitout of the Hall to meet their requirements and minor maintenance and cleaning. In addition, the Band has also indicated that they would only be prepared to commit to similar obligations under a future five year lease arrangement. Under that arrangement, the responsibility for ongoing structural repairs and maintenance of the building would remain with Council.

Rental and Rates

Whilst the proposed rental represents a substantial increase from the amount that the Band has previously paid, officers are required to assess all applications for the lease/licence of Council owned land and buildings by community groups in accordance with eligibility and rental categories contained within the Code. The purpose of the Code is “to provide Council with a framework for the equitable, efficient and effective lease/licence of its land and building assets to community groups whilst ensuring that financial allocations to community groups reflect Council’s commitment to its community development role and to encourage creative, relevant, community driven initiatives within the Shire”.

The Band, in the submission attached dated 8 October 2009, has indicated that they would be unable to meet the rental and outgoings calculated by staff in the draft Heads of Lease arrangements and have offered to increase the rental payable from the current rental of $1,532 per annum to $4,000 per annum (inclusive of GST) and not be liable for Council and water/sewerage rates.

Council officers have reassessed the lease proposal based on the information provided by the Band in their initial application and their further submission, and consider that the “Discounted Market Rent” categorisation should still apply.

It should be noted that to obtain a base market rent, the premises were independently valued by a registered real estate valuer and property consultant, who gave consideration to available broadly based rental evidence within the nearby and surrounding area. This included assessment of such factors as:

· Location

· Building type, size and age

· Heritage listing

· Parking

· Permitted uses under the relevant zoning

· Traffic, etc.

The market rental evaluation concluded that a market rental of $39,006 per annum (inclusive of GST) was appropriate in respect of the Hall.

Having regard to the Council officers’ assessment in accordance with the Code, it is recommended that any future lease of the Hall should be in line with the “Discounted Market Rent” category provisions of the Code. The rental calculated under the Code is 50% of an assessed market rental (i.e. $19,503 per annum inclusive of GST).

In addition, an occupier assessed under the “Discounted Market Rent” category shall also be liable for the payment of 50% of the assessed Council and Water Sewerage rates (estimated at $2,000 based on 2009/10 charges ). Accordingly, the total rental and outgoings payment required by the Band during the first 12 months of the further three year lease would be $21,503 inclusive of GST.

Whilst the financial statements provided by the Band appear to indicate that they would have difficulties in paying the assessed rental, as mentioned above officers are required to assess the application and make a recommendation to Council in accordance with the Code. Any decision outside of the parameters of the Code can only be made by Council after it has considered the officers’ recommendations as well as any other issues it considers relevant to its determination.

Recommendations With Respect to Option One

Taking into consideration the comments provided above by the Band and the officers’ assessment of the Band’s application, it is recommended that, if Council favours continuing to offer the Hall for lease under the Code, Council not offer the Epping RSL Golden Kangaroos a renewed lease immediately and the future use of the Hall be subject to a public invitation to lease process. This recommendation has been made noting that there are numerous community groups that approach Council each year seeking accommodation for their group. A precedent has been set (see Report No. CC105/09) whereby when existing occupier groups have been unable or unwilling to pay the rental figure recommended by the Code, the property has been subject to a public invitation to lease process. One of the other goals of this process, apart from achieving a rental return that will more appropriately fund the asset maintenance of the facility, is to encourage shared use of community facilities consistent with the intents of the Strategic Plan for Community and Cultural Facilities. It is noted that the Epping RSL Golden Kangaroos have had exclusive use of the Hall over the term of their leases.

_________________________________

Option Two – Unsubsidised Lease

As a second option, Council may also wish to offer the Hall for lease outside of the Code for the Lease/Licence of Council Land and Buildings to Community Groups. If this option is taken Council could expect a return in the vicinity of the market rental described in the above sections of this Report - i.e. approximately $39,000 per annum (inclusive of GST). The property is zoned Residential AS (Low Density – Sensitive Lands Zone). Uses under this zoning include:

Without Development Consent Home occupations; special care homes.

With Development Consent Child care centres; commercial home catering; community facilities; demolition; dwelling houses; group homes; home offices; housing for aged or differently abled persons; multi unit housing; recreation areas; recreation facilities; utility installations.

Recommendations with Respect to Option Two

Leasing the Hall under this Option would go some way to addressing the asset management issues associated with the Hall as the annual required maintenance work would be more likely to be funded via lease payments. It is noted that this option will not address the issue of the backlog maintenance requirements for the facility. If this option is preferred, it is recommended that Council consider allocating funding to address the backlog maintenance works outlined above prior to offering the property for lease. This will ensure that the condition of the Hall is preserved for the benefit of future generations.

_________________________________

Option Three – Disposal of the Property

The third option available for Council to consider is the disposal of the property. The attached confidential Valuation Report, which has been compiled by Council’s consultant valuer, provides Council with an indication of the return that it may expect in the event that the property is sold. It is noted that there are heritage constraints associated with the property and Council may receive a higher return for the sale of the property if development consent which addressed these heritage concerns was in place. Under the proposed Comprehensive LEP, the allowable uses of the site will be expanded which may increase the value of the property. Specifically, the Comprehensive LEP would allow the property to be used as a place of worship – an existing use that was lost when the property became used as a community facility. The Comprehensive LEP is expected to be gazetted within the next 18 months.

Recommendations with Respect to Option Three

If Council favours the disposal of the site, it is recommended that the lease of the Golden Kangaroos be terminated in the first instance and staff investigate ways in which the greatest financial return for the property can be achieved at sale. Given the potential safety concerns identified with the property, it is suggested that Council provide the Golden Kangaroos with the minimum notice period allowable under the holding over provisions of the lease. It is recommended that the Golden Kangaroos approach the Management Committee of Beecroft Community Centre to determine if arrangements to lease space at this centre can be made. An examination of the most recently submitted hire plans from the Beecroft Community Centre suggest that space may be available for this purpose. It is noted that this arrangement is unlikely to involve an exclusive use arrangement for the Band and may involve them amending their schedule of rehearsals.

_________________________________

Suggested Resolutions Depending Upon the Future Use Option Chosen

It is noted that there is significant complexity in the above options and in particular with the resolutions that may accompany a particular decision. To assist in the process of Council formulating an appropriate resolution that will suit its preferred option, suggestions are offered below.

Option One – Lease under the Code for the Lease/Licence of Council Land and Buildings to Community Groups.

THAT:

1. The contents of Executive Manager’s Report No. CC5/11 be received and noted.

2. Council allocate funds immediately to address the identified safety related issues associated with this property such that it can be offered for lease at an appropriate standard.

3. Council issue a public invitation to lease the premises at 179 Beecroft Road, Cheltenham from community groups for a maximum term of up to five years.

4. As part of the public invitation to lease process, 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.

5. At the conclusion of the public invitation to lease process, a report be prepared for consideration by Council. This report should include a recommendation that the funding gap between the ongoing forecast asset maintenance costs (including backlog maintenance) and the rental offered by the successful/recommended community group be allocated by Council to ensure the property is appropriately maintained and managed for future generations.

Option Two – Commercial Lease of the Property (Outside of the Code)

THAT:

1. The contents of Executive Manager’s Report No. CC5/11 be received and noted.

2. Council allocate funds immediately to address the identified safety related issues associated with this property such that it can be offered for lease at an appropriate standard.

3. An updated market rental valuation of the Hall be obtained and the property be offered for lease at that figure on the open market.

4. Prior to the acceptance of a lease proposal, a further report be provided for Council’s consideration outlining how the asset maintenance of the facility will be funded into the future taking into account the rental offer received.

Option Three – Disposal of the Property

THAT:

1. The contents of Executive Manager’s Report No. CC5/11 be received and noted.

2. Council approve the marketing and sale of 179 Beecroft Road, Cheltenham subject to the minimum prices stated within the confidential attachment to Executive Manager’s Report No. CC5/11.

5. The General Manager be authorised to execute any legal documents in relation to this matter deemed appropriate by Council’s legal advisors.

7. Council terminate the Epping RSL Golden Kangaroos occupation of the Hall and carparking spaces in line with the provisions of their expired lease and licence agreements.

8. The Epping RSL Golden Kangaroos be encouraged to seek re-accommodation at the Beecroft Community Centre by discussing the matter with the Management Committee.

_________________________________

Summary and Staff Recommendation

The matter of the future use of 179 Beecroft Road, Cheltenham is a difficult issue to resolve in that community needs are required to be balanced against the capital cost to Council of keeping and maintaining a building of local heritage significance. The fact that a significant backlog of maintenance has accumulated, adversely impacts on the structural integrity of the building and substantial funding needs to be allocated to the maintenance of the building to ensure its longevity. It may be considered that, as the custodians of a heritage item of local significance on behalf of the local community, Council has a responsibility to ensure that the heritage item is appropriately maintained for future generations. In the event that funding cannot be identified to achieve this, it could be argued that the item should pass to someone who has the capacity to ensure the continued appropriate level of maintenance.

BUDGET

The budget impact of this Report is detailed, where possible in the body of the Report. In the event that the sale of the property is the preferred option, Councillors are referred to the confidential attachment relating to the valuation of the property in question.

POLICY

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

CONSULTATION

There has been consultation with representatives of the Band and officers of Council’s Community Services Branch in the preparation of this Report.

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, contributions 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 Mr David Johnston - Manager Community Services; and Mrs Robyn Abicair, Manager, Governance and Customer Service Branch. They may be contacted on 9847-6800 and 9847-6608 respectively.

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No. CC5/11 be received and noted.

2. Council approve the marketing and sale of 179 Beecroft Road, Cheltenham subject to the minimum prices stated within the confidential attachment to Executive Manager’s Report No. CC5/11.

5. The General Manager be authorised to execute any legal documents in relation to this matter deemed appropriate by Council’s legal advisors.

7. Council terminate the Epping RSL Golden Kangaroos occupation of the Hall and carparking spaces in line with the provisions of their expired lease and licence agreements.

8. The Epping RSL Golden Kangaroos be encouraged to seek re-accommodation at the Beecroft Community Centre by discussing the matter with the Management Committee.

Robyn Abicair

Manager - Governance & Customer Service

Corporate and Community Division

David Johnston

Manager - Community Services

Corporate and Community Division

Gary Bensley

Executive Manager

Corporate and Community Division

Attachments:

1.	Confidential Attachment: Valuation of 179 Beecroft Road, Cheltenham - This attachment should be dealt with in confidential session, under Section 10A (2) (c) of the Local Government Act, 1993. This report contains information that would, if disclosed, confer a commercial advantage on a person with whom the council is conducting (or proposes to conduct) business.
2.View	Attachment 1: Code for the Lease Licence of Council Land and Buildings to Community Groups
3.View	Attachment 2: Response from Golden Kangaroos

File Reference: F2004/09440

Document Number: D01306525

Executive Manager's Report No. CC43/11

Corporate and Community Division

Date of Meeting: 24/08/2011

6 2010/11 INVESTMENTS AND BORROWINGS - PERIOD ENDING JUNE 2011 (PRE-AUDIT)

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 schedules 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 June 2011 was $2,411,000 compared to the revised budgeted income for the year of $1,540,000. Of the investment income earned, 37% relates to externally restricted funds (such as those collected under Section 94 of the Environmental Planning and Assessment Act), and is required to be allocated to those funds.

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 of Surplus Funds Policy (which was last reviewed by Council at its 20 April 2011 Ordinary Meeting).

DISCUSSION

Council's Investment Performance – June 2011

· The At-Call and Term Deposits achieved an annualised return of 5.98% for the month compared to the benchmark of 4.75%; and a financial year return of 5.85% compared to the benchmark of 4.67%.

· NSW T-Corp Long Term Growth Facility achieved a marked to market annualised return of -13.92% for the month compared to the benchmark of -13.66%; and a financial year return of 8.37% compared to the benchmark of 9.04%. 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 7.07% for the month compared to the benchmark of 5.03%; and a financial year return of 6.97% compared to the benchmark of 4.98%. The market value of this investment as at 30 June 2010 (pre-audit) was $2.026 million.

· The Capital Guaranteed Notes achieved an annualised return of 0% for the month compared to the benchmark of 5.03%; and a financial year return of 0% compared to the benchmark of 4.98%. No interest will be accrued for the remaining life of the securities. The market value of these investments as at 30 June 2010 (pre-audit) was $3.445 million.

For total investments, the annualised return for June 2011 was 4.63% compared to the benchmark of 4.17%. It is noted that for the 2010/11 year to date, the annualised return is 5.21% compared to the benchmark of 4.86%.

Economic Commentary

Statement by Glenn Stevens, Governor, Reserve Bank of Australia: Monetary Policy Decision - Media Release 5 July 2011

At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.

The global economy is continuing its expansion, but the pace of growth slowed in the June quarter. The supply-chain disruptions from the Japanese earthquake and the dampening effects of high commodity prices on income and spending in major countries have both contributed to the slowing. The banking and sovereign debt problems in Europe have also added to uncertainty and volatility in financial markets over recent months.

A key question is whether this more moderate pace of growth will continue. Commodity prices have generally softened of late, though they remain at very high levels. Despite the challenging international environment, the central scenario for the world economy envisaged by most forecasters remains one of growth at, or above, average over the next couple of years. A number of countries have tightened monetary policy but, overall, global financial conditions remain accommodative and underlying rates of inflation have tended to move higher.

Australia's terms of trade are now at very high levels and national income has been growing strongly, though conditions vary significantly across industries. Investment in the resources sector is picking up strongly in response to high levels of commodity prices and the outlook remains very positive. A number of service sectors are also expanding at a solid pace. In other areas, cautious behaviour by households and the high level of the exchange rate are having a noticeable dampening effect. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.

A gradual recovery from the floods and cyclones over the summer is taking place, though the resumption of coal production in flooded mines continues to proceed more slowly than initially expected. The recovery will boost output over the months ahead, and there will also be a mild boost to demand from the broader rebuilding efforts as they get under way, but growth through 2011 is now unlikely to be as strong as earlier forecast. Over the medium term, overall growth is still likely to be at trend or higher, if the world economy grows as expected.

Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest that this slower pace of employment growth is likely to continue in the near term. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.

Credit growth remains modest. Signs have continued to emerge of some greater willingness to lend and business credit has expanded this year after a period of contraction. Growth in credit to households, on the other hand, has slowed. Most asset prices, including housing prices, have also softened over recent months.

Year-ended CPI inflation is likely to remain elevated in the near term due to the extreme weather events earlier in the year. However, as the temporary price shocks dissipate, CPI inflation is expected to be close to target over the next 12 months. In underlying terms, inflation has been in the bottom half of the target range, though a gradual increase is expected over time.

At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.

Borrowings

In respect of borrowings, the weighted average interest rate payable on loans taken out from 2001 to 2011, based on the principal balances outstanding, is 6.90%. The Borrowings Schedule as at 30 June 2011 is attached for Council’s information.

BUDGET

Total investment income for the period ending June 2011 was $2,411,000. The revised budgeted income for the year was $1,540,000. Of the total variance, $608,000 relates to the fair value adjustments and recovery of the previously written down fair value of the Collateralised Debt Obligations (CDO’s) and Capital Guaranteed Notes which were sold or matured during this financial year. Approximately 37% of the investment income relates to external restrictions (Section 94) and is, therefore, restricted.

POLICY

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

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.

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. CC43/11 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 30 June 2011
2.View	HSC Borrowings Schedule as at 30 June 2011

File Reference: F2004/06987

Document Number: D01714460

Executive Manager's Report No. CC44/11

Corporate and Community Division

Date of Meeting: 24/08/2011

7 DISCLOSURES OF PECUNIARY INTEREST AND OTHER MATTERS RETURNS - COUNCILLORS AND DESIGNATED PERSONS

EXECUTIVE SUMMARY

Section 449 of the Local Government Act (the Act) details the statutory requirements in respect of the lodgement of Disclosure of Pecuniary Interests and Other Matters Return/s by Councillors and Designated Persons. Section 450A(2) of the Act details the reporting requirements associated with the lodgement of such Returns.

In accordance with those Sections of the Act, this Report provides information regarding the Return/s recently lodged with the General Manager. It is recommended that Council note that the Disclosure of Pecuniary Interests and Other Matters Return/s lodged with the General Manager have been tabled in accordance with the requirements of the Act.

PURPOSE/OBJECTIVE

The purpose of this Report is to table the Disclosure of Pecuniary Interests and Other Matters Return/s lodged by Councillors/Designated Persons who have left, commenced with, or internally transferred to a relevant position within Council.

DISCUSSION

Section 449(1) of the Act requires a Councillor or Designated Person to complete and lodge with the General Manager a Disclosure of Pecuniary Interests and Other Matters Return within three months after becoming a Councillor or a Designated Person. Section 449(3) requires a Councillor or Designated Person holding that position at 30 June in any year to complete and lodge with the General Manager a Return within three months after that date. Section 449(5) states that nothing prevents a Councillor or Designated Person from lodging more than one Return in any year.

Section 450A(2) of the Act requires that Returns lodged under Section 449 are to be tabled at a meeting of Council. Returns lodged under Sections 449(1) and 449(3) are to be tabled at the first meeting held after the last day for lodgement under those Sections; and Returns lodged for any other reason are to be tabled at the first meeting after their lodgement.

Council's procedures in respect of the disclosing of interests have been developed to cater for the election/appointment/employment/retirement/resignation/etc of Councillors or Designated Persons. These procedures:

• require all Councillors and Designated Persons who hold that position at 30 June in any year to submit Returns to the General Manager by 30 September in that year (i.e. they are lodged under S449(3)). These Returns are tabled at the October Ordinary Meeting of Council in that year;

• require newly elected Councillors or newly appointed Designated Persons to lodge Returns to the General Manager within three months of their election/appointment (i.e. they are lodged under S449(1). These Returns are tabled at the next available Ordinary Meeting of Council; and

• require those Councillors or Designated Persons who are leaving Council (because of retirement, resignation, etc) to lodge Returns to the General Manager by their last day with Council. These Returns are tabled at the next available Ordinary Meeting of Council.

Returns lodged in accordance with Section 449(1) and/or 449(5) of the Local Government Act and Council's Procedures

Council last considered the tabling of Disclosure of Pecuniary Interests and Other Matters Returns at the Ordinary Meeting held on 20 July 2011 (see Report No. CC34/11). Since that time, three additional Returns have been lodged with the General Manager and are now tabled as required by the Local Government Act.

Date Lodged	Councillor/Designated Person (Position)	Reason for Lodgement
24/06/2011	Project Engineer, Roads and Drainage	New appointment
6/07/2011	Manager, Environmental Sustainability & Health	New appointment
18/07/2011	Building Surveyor	Leaving Council

BUDGET

There are no budgetary implications associated with this Report.

POLICY

There are no policy implications associated with this Report.

CONSULTATION

Consultation has occurred with those required to complete a Disclosure of Pecuniary Interests and Other Matters Return.

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.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is Council's Senior Access to Information Officer – Stephen Waller who can be contacted on 9847 6749.

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.

Scott Allen

Risk & Insurance Manager - Risk & Insurance

Corporate and Community Division

Robyn Abicair

Manager - Governance & Customer Service

Corporate and Community Division

Gary Bensley

Executive Manager

Corporate and Community Division

Attachments:

There are no attachments for this report.

File Reference: F2011/00977

Document Number: D01717618

Executive Manager's Report No. CC45/11

Corporate and Community Division

Date of Meeting: 24/08/2011

8 HEADEN PARK HALL, THORNLEIGH - FUTURE USE

EXECUTIVE SUMMARY

This Report considers the future use of Headen Park Hall which is located within Headen Park, Thornleigh. Following a Council decision to transfer the lease conditions that the Hornsby Woodworking Men’s Shed had negotiated with Council from Headen Park Hall to the former Carpenter’s Workshop at Council’s Thornleigh Depot, the majority of Headen Park Hall was untenanted with the exception of a licence to use a storage room which is held by the Beecroft Cherrybrook Junior Rugby Club Inc.

A Condition and Backlog Report and a 20 Year Asset Maintenance Plan have been developed for this facility. The Condition and Backlog Report is included as an Attachment to this Report. The 20 Year Asset Maintenance Plan is available on file. The Condition and Backlog Report indicates that there are backlog maintenance costs for the facility in the order of $80,000, and $65,000 of these are safety related issues. The 20 Year Asset Maintenance Plan for Headen Park Hall forecasts an average annual maintenance cost of $25,000.

Given the condition of the building and the absence of a funding model to bring the asset back to a lettable standard, it is recommended that Council not offer the property for lease and instead progress with plans to remove the building from the park.

With respect to the potential re-accommodation of the Beecroft Cherrybrook Junior Rugby Club Inc storage facility, it is recommended that staff work with representatives from the Beecroft Cherrybrook Junior Rugby Club Inc and that, if necessary, a further report be provided for Council’s consideration on alternative storage options for this group.

PURPOSE/OBJECTIVE

The purpose of this Report is to provide Council with information such that it can consider the future use of Headen Park Hall which is located within Headen Park, at 3x Sinclair Ave, Thornleigh.

DISCUSSION

Future use of Headen Park Hall

At the 20 October 2010 Ordinary Meeting, Council considered Executive Manager’s Report No. CC69/10 – Hornsby Woodworking Men’s Shed – Proposed Transfer of Lease. This Report recommended the transfer of the lease conditions that the Hornsby Woodworking Men’s Shed had negotiated with Council from Headen Park Hall to the former Carpenter’s Workshop at Council’s Thornleigh Depot. This decision left the majority of Headen Park Hall vacant with the exception of a storage room which was occupied under licence by the Beecroft Cherrybrook Junior Rugby Club Inc.

Following its consideration of the Report, Council resolved, in part, that:

Following an asset inspection of Headen Park Hall, a further report be prepared for Council’s consideration in respect of the future use of the facility.

A Condition and Backlog Report has subsequently been undertaken on this facility and a 20 Year Asset Maintenance Plan has also been developed. Respectively, these two documents provide Council with:

· An understanding of what work needs to be undertaken on the facility to bring it up to a good standard of repair and the cost required to achieve this.

· What it should cost to maintain the asset at this newly established standard for the next 20 years.

In summary, the Condition and Backlog Report indicates that there are backlog maintenance costs for the facility in the order of $80,000 and that $65,000 of these items are safety related issues. The 20 Year Asset Maintenance Plan for Headen Park Hall forecasts an average annual maintenance cost of $25,000. It is noted that historically, tenant responsibilities under their lease (specifically in kind contributions) and rental income received from the lease of the facility were the only sources of asset maintenance funding for this building.

Given the condition of the building as outlined in the attached report, and the absence of a funding model to bring the asset back to an acceptable and lettable standard, it is recommended that Council not offer the property for lease and instead progress with plans to remove the building from the park. In order to achieve this outcome in the most cost efficient manner, it is recommended that Council seek to sell the building structure (not the land that it is situated on) in the first instance. This approach would result in the buyer of the building removing it from the site and Council being required to make good the area that was previously under the building. In the event that Council achieves a positive result from the sale of the building, proceeds from the sale could be used to fund this repair process.

Council’s Manager, Land and Property Services has been consulted and has indicated that the building is considered to be an "improvement" to the "real property" land which is proposed to be sold on the basis of it being removed from the land. As such, it is considered that the building may be disposed of under the Local Government Act without a formal valuation being received. A disposal strategy has been developed which will see a third party company advertise the building free of charge in the first instance. The purchase price will subsequently include the cost of removing the building from the land on which it currently sits, and the "capping" of the existing services. The balance of the funds from the sale, minus the agent’s commission/advertising costs, are recommended to be put towards making good the site once the building has been removed. It is not envisaged that Council will receive a substantial return from the sale of this property. It is hoped that proceeds from the sale will be sufficient to fund the making good of the land underneath the current building and the capping of the services.

Beecroft Cherrybrook Junior Rugby Club Inc

In the event that Council resolves to sell the building known as Headen Park Hall, this will result in the displacement of the Beecroft Junior Rugby Club. The Club use a room in the building to store training equipment. The licence of this room expired on 7 September 2008 and the group has been on holding over provisions since this time. Beecroft Cherrybrook Junior Rugby Club Inc pay $572.50 per annum in rent for this room.

At this stage, staff have not been able to identify a re-accommodation option for this group without Council incurring additional expenditure. It is recommended that staff work with representatives from the Beecroft Cherrybrook Junior Rugby Club Inc to develop a relocation option and that a further report be provided for Council’s consideration if necessary. Within this discussion, the Rugby Club should be encouraged to fund the construction of any new storage facility should a location be able to be identified. Council staff should assist with respect to identifying grant funding opportunities for the Club to consider. If a report is required, it should be provided to Council for its consideration at or before the December 2011 Ordinary Meeting.

Assuming that Council resolves to not offer Headen Park Hall for further lease to the community, it is recommended that Council formally terminate the Beecroft Junior Rugby Club’s licence to use the store room once a sale date for the building is known. It is acknowledged that this termination of use may occur prior to a new accommodation option becoming available for the Rugby Club.

Funding issues

An attempt will be made to dispose of this asset by selling the building and having the building removed from the site at the cost of the purchaser. This process has not been attempted before by Council and the likely success of the approach is not yet known.

In the event that the disposal of the asset in this manner is successful, the proceeds from the sale will be used to make good the site. In the event that surplus funds are available from making good the site, it is recommended that these funds may be used to reaccommodate the Beecroft Cherrybrook Junior Rugby Club Inc.

In the event that the property cannot successfully be disposed of in this manner, it is recommended that the property be demolished. It is estimated that demolition would cost in the order of $10,000 - $15,000. These funds would need to be sourced at a quarterly review of the Budget. Additionally, depending upon the scope of the “make good” works under the existing building and the proceeds received from its sale, funding for this “make good” process may also need to be considered at a quarterly review.

BUDGET

Headen Park Hall has a book value of $24,000 and, depending on the sale price of the building, may realise a loss on sale in the 2011/12 financial year. Council will also forgo the income from the licence of the storage room occupied by the Beecroft Cherrybrook Junior Rugby Club Inc in the amount of $572.50 per annum.

POLICY

This Report has been prepared having consideration to the Code for the Lease/Licence of Council Land and Buildings to Community Groups and Council’s suite of strategic planning documents.

CONSULTATION

Officers consulted in the production of this Report include:

· Manager, Engineering Services

· Acting Coordinator, Building Services

· Manager, Land and Property Services

· Manager, Commercial Property

· Senior Corporate Accountant

· Manager, Parks and Landscapes

· Parks Assets Coordinator

TRIPLE BOTTOM LINE SUMMARY

· 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 officer responsible for the preparation of this Report is Mr David Johnston, Manager - Community Services Branch, who may be contacted on 9847-6800.

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No CC45/11 be received and noted.

3. Proceeds from the sale of the building contribute to the cost of making good the land previously occupied by Headen Park Hall in the first instance.

4. In the event that surplus funds are available post the implementation of Point 3 above, the balance of funds be used to assist the Beecroft Cherrybrook Junior Rugby Club Inc to be reaccommodated.

5. The Beecroft Cherrybrook Junior Rugby Club Inc be allowed to continue the holding over provisions of their licence until such time as the building is sold.

6. Once a sale date is known for the building, Council formally terminate the licensed use of the storage room in Headen Park Hall currently held by Beecroft Cherrybrook Junior Rugby Club Inc.

8. The Beecroft Cherrybrook Junior Rugby Club Inc be required to fund any capital cost involved in the relocation of their storage space.

9. Council staff work with the Beecroft Cherrybrook Junior Rugby Club Inc to identify grant funding opportunities to assist in the relocation of their storage facility.

David Johnston

Manager - Community Services

Corporate and Community Division

Gary Bensley

Executive Manager

Corporate and Community Division

Attachments:

1.View

Condition and Backlog Maintenance Report

File Reference: F2004/06466

Document Number: D01718212

Executive Manager's Report No. CC48/11

Corporate and Community Division

Date of Meeting: 24/08/2011

9 APPLICATION FOR LEASE OF GROUND, LOWER GROUND AND MEZZANINE FLOORS - 11 CORONATION STREET, HORNSBY - LIFELINE HARBOUR TO HAWKESBURY

EXECUTIVE SUMMARY

An application has been received from Lifeline Harbour to Hawkesbury (Lifeline) to lease the vacant ground, lower ground and mezzanine space at 11 Coronation Street Hornsby, in accordance with the provisions of Council’s Code for the Lease/Licence of Council Owned Land and Buildings to Community Groups.

In May 2007, Council adopted the Code to provide a framework for the equitable, efficient and effective lease/licence of property assets that have been determined by Council as suitable for community group use, at a subsidised rental. Under the Code, where a vacancy occurs in a property asset determined as suitable for community use, an expression of interest by way of a public invitation process is to be undertaken to locate a suitable community group occupier.

Since Council acquired 11 Coronation Street, Hornsby in August 2000, the property has been leased on a commercial basis, at market rentals, in line with Council’s Lease/Licence of Council Land policy.

Council officers consider that prior to a determination being made in respect of Lifeline’s application, Council should first decide if 11 Coronation Street, Hornsby should continue to be offered for lease on a commercial basis only (Option One), or, to include the property as a property asset available for use by community groups in line with the Code, as well as retaining the option to offer the lease on a commercial basis (Option Two). Comments concerning the two options are provided within the DISCUSSION section of this Report for Council’s consideration and determination. Council officers support Option Two.

Should Council be supportive of Option Two, Council officers believe that to maintain consistency with the provisions of the Code and to demonstrate Council’s commitment to the equitable allocation of Council assets to the community, the application submitted by Lifeline should not be determined at this stage. Instead, to ensure an appropriate open and equitable process, it is recommended that a public invitation be issued to commercial entities and community groups to identify a suitable occupier to lease the premises at 11 Coronation Street, Hornsby.

PURPOSE/OBJECTIVE

The purpose of this Report is to provide information concerning the application from Lifeline to lease part of the property at 11 Coronation Street, Hornsby and for Council to determine its preferred course of action in respect of the future leasing requirements of the property.

DISCUSSION

Background

In August 2000, Council acquired the commercial property at 11 Coronation Street, Hornsby to consolidate its holdings of a redevelopment site bounded by Coronation Street, Jersey Street, Jersey Lane and Hornsby TAFE College. At that time, the property was occupied by Snap Franchising Limited under an existing retail lease for a term of five years with an option to renew the lease for a further five year term to expire on 31 July 2009.

Snap Franchising Limited vacated the premises on 31 July 2009 and whilst concerted attempts have been made to locate another commercial occupier, the property has remained vacant since that time. In discussions with one of the local real estate agents appointed to assist Council in finding suitable commercial occupiers for the property, it has been determined that the limited period of tenure (detailed in the section headed “Future Leasing Options for 11 Coronation Street Hornsby” later in this Report) and current state of repair of the premises have adversely impacted on the attractiveness of property in the market.

Whilst there has been limited commercial interest in the property, an application has recently been received from Lifeline, seeking initially, a lease of the ground, lower ground and mezzanine floor areas of the property only, in line with the provisions of Council’s Code for the Lease/Licence of Council Land and Buildings to Community Groups (see Attachment 1).

A summary of Lifeline’s requested preferred lease arrangement is outlined below:

Term of Lease: Three years with ongoing monthly hold over

Use: Retail outlet selling donated goods associated with their not for profit organisation

Rental Payable: First year: $8,000 per annum (Based on four month rent free fitout period) plus GST.

Second Year: $18,000 per annum plus GST

Third Year: $24,000 per annum plus GST

Statutory Outgoings: 50% of Council and Water Sewerage Rates subject to quantum of amount.

Operating Costs: All operating costs to be payable by Lifeline

Maintenance and Repairs: Lifeline to be responsible for all day to day maintenance and repairs, excluding BCA upgrade works

Payment of Legal Fees: 50% of legal costs (as per the Code for the Lease/Licence of Council Land and Buildings to Community Groups)

Special Conditions: Break lease clause if unable to maintain or establish a financially viable operation after initial 12 months of lease term.

In May 2007, Council adopted the Code to provide a framework for the equitable, efficient and effective lease/licence of Council's property assets that Council had determined as suitable for community use at subsidised rentals.

The Code assists Council officers to assess lease/licence applications received from community groups in a transparent manner, based on agreed eligibility criteria, and to formulate appropriate lease/licence terms and conditions for the consideration and endorsement of Council. In accordance with the provisions of the Code, where a property asset covered by the Code becomes vacant, expressions of interest are to be invited in order to identify an appropriate community group occupier.

Future Leasing Options for 11 Coronation Street Hornsby

As mentioned above, 11 Coronation Street, Hornsby has, up until the vacation of Snap Franchising Limited in July 2009, been leased on a commercial basis only, at market rentals. Having regard to the future strategic purpose of the property, advice recently received from Council’s Manager of Land and Property Services has indicated that any lease of the property should be limited to a term of not more than five years. In addition, should negotiations for a term greater than three years be considered it would be necessary to include a provision within such a lease to require the property to be vacated and handed back to Council on six months’ notice should a decision be made by Council to redevelop the property.

Whilst a formal market rental valuation of the property has not been obtained in recent times, an estimate of the current market rental for the areas requested for lease by Lifeline (based on comparable per square metre rates of recent negotiated commercial leases in the vicinity) has been calculated in the amount of $98,000 per annum (gross) inclusive of GST. Advice provided by one of Council’s letting agents indicated that the present condition of repair adversely impacts on the desirability of the property for a tenant, unless the rental is discounted and suitable allowance is provided to enable the appearance of the property to be upgraded to an improved standard.

In March 2010, officers appointed a consultant architect to investigate options to increase the letting options and attractiveness of the property. The brief also requested that such options had regard to the current Building Code of Australia (BCA) requirements. While four options were put forward for consideration, indicative costing on two preferred options was undertaken. At that time, the consultant architect’s indicative cost estimate was in the range of $260,000 to $320,000 exclusive of GST.

Having regard to the current interest in the property, comments have recently been obtained from Council’s Assessment Team 1 Manager associated with compliance of the property with the BCA, in particular fire rating and disability access. Under the NSW Exempt and Complying Development Code, the subject building can be used as a business premises i.e. profession or trade (other than an industry) providing the business is carried on for the provision of services directly to members of the public on a regular basis, such as banks, post offices, hairdressers, dry cleaners, travel agencies, internet access facilities, medical centres, betting agencies and the like, but does not include sex services premises.

If the building is used for these purposes no development consent is required and no statutory requirement exists in respect of fire rating or access. Should a development application (DA) need to be submitted for a change of use to the property (such as the retail use proposed by Lifeline), the property would need to be renovated to meet current BCA requirements specifically around fire safety and disability access. While no firm costing has been obtained in respect of these requirements Council’s Manager of Assessment Team 1 is of the opinion that the minimum cost of this work would be in excess of $100,000.

Should Council be desirous of offering 11 Coronation Street for lease, either to Lifeline or any other prospective tenant, it may become necessary for Council to make a financial contribution in respect of certain BCA upgrading works.

In light of the above, Council officers consider that prior to consideration of the application from Lifeline it would be prudent for Council to firstly determine if the property should continue to be offered for lease on a commercial basis only, or it should be included as a property asset available for use by community groups to which the Code would apply.

Information concerning the two options is provided below for Council’s consideration and determination.

Option One: Continue to Lease 11 Coronation Street, Hornsby on a Commercial Basis Only

By continuing to lease the property on a commercial basis, Council has the opportunity to achieve a commercial income stream from the property. Further, with the value of a commercial property generally linked to net income and lease term, the ongoing lease of property on a commercial basis should enhance the opportunity for Council to realise a higher return if a decision was made to sell the property. By seeking a commercial occupier for the property, Council will also be seen as supporting economic development in this section of the Town Centre.

While the implementation of this Option will ensure consistency with Council’s current commercial property management practices, the current tenure restriction, unfavourable appearance, potential BCA requirements and current economic conditions have the potential to create difficulties in locating a commercial occupier in the foreseeable future.

In light of the comments provided by Council’s consulting letting agent, it is considered that in the short to medium term the inclusion of commercially acceptable incentives, such as rent free fitout periods etc, would need to be offered to increase commercial interest in the property. Even if these incentives were incorporated, the limited lease tenure will likely inhibit the ability to achieve a potential commercial tenant. Accordingly, Council officers are of the opinion that to limit the leasing opportunities of 11 Coronation Street, Hornsby to commercial occupiers only would not be in Council’s interests at this point in time. In the circumstances, Council officers are not supportive of this Option.

Option Two: Include 11 Coronation Street as a property asset available to lease in line with the provisions of the Code for the Lease/Licence of Council Land and Buildings to Community Groups and invite offers to lease from both commercial and community sectors

Having regard to the difficulties being experienced in locating a commercial occupier for the property, Council officers consider that it may be appropriate for Council to include 11 Coronation Street, Hornsby as a property asset which may also be made available for lease by community groups in line with The Code. By allowing community use, the likelihood of the property remaining vacant for an extended period of time should be minimised. While this action would increase the opportunities to attract an occupier for the property, it should be acknowledged that Council may be required to accept a significantly lower rental income than that obtained from a commercial occupier and that a community occupier may have an expectation that Council would provide funding to rectify the BCA matters mentioned above.

With Council previously determining that 11 Coronation Street, Hornsby is to be retained for future redevelopment, there is potential that by allowing community use a community occupier may develop an expectation that Council will provide assistance in locating alternative premises for them should a decision be made by Council in the future to redevelop the property at 11 Coronation Street, Hornsby.

In addition, by allowing the property to be made available for community use, Council may create an undesirable precedent in terms of the future management of Council’s commercial income producing property assets. In the circumstances, it is considered that, should Council be supportive of this Option, the concerns mentioned above would be adequately addressed by undertaking a public invitation to seek either a commercial or community occupier for the property on the basis outlined in the RECOMMENDATION of the Report. This action will maintain consistency with the provisions of the Code and demonstrate Council’s commitment to the equitable allocation of Council assets to the community. Further, this will provide any potential occupiers with an understanding of Council’s requirements concerning the future leasing of 11 Coronation Street, Hornsby.

Having regard to the comments provided above Council officers consider this to be the preferred Option.

______________________________

Comments on Lease Application from Lifeline

While supportive of Option Two and the public invitation for potential occupiers of 11 Coronation Street Hornsby, Council officers have undertaken an assessment of the lease application received from Lifeline, in line with the criteria set out in the Code. As a consequence of the assessment, Council officers consider that if Council were to support the occupation of the property by Lifeline the following Heads of Lease arrangements should be applied:

Leased Areas: Ground, Lower Ground and Mezzanine Floors only

Period of lease: Less than five years.

Use of premises: Retail outlet selling donated goods associated with Lifeline’s not for profit organisation

Rental as per Community Code: $49,000 per annum gross, inclusive of GST)

(50% of indicative market rental of $98,000 p.a. Inc of GST)

Rental Review: Annual CPI adjustments

Statutory Approvals: Development Consent and Construction Certificate for any proposed alteration works to the property.

Operating Costs: 100% of electricity, gas, telephone, water usage etc

Insurance: Public Liability Insurance, indemnity $20m and Plate Glass Insurance

Legal Fees: Lessee responsible for 50% of lease preparation costs. (based on use of Council’s standard retail lease document).

Maintenance as per Code: Internal/external painting and decoration/removal of external graffiti. Maintain/repair/replace internal fixtures, fittings, building services including air conditioning units. Repair/replace plate glass.

Capital Enhancements: Replace broken windows at front and rear. Remove existing office partitions, Repair and replace damaged light fittings and ceiling panels.

Miscellaneous: Accept premises in current condition.

Six months redevelopment clause to apply after three years of tenure.

Responsible for cleaning and security.

Four months rent free to undertake capital enhancement works.

Advice of the above draft Heads of Lease arrangement was supplied to Lifeline who have now provided a response indicating that while in agreement with the proposed lease arrangement their not for profit organisation is only willing to pay $30,000 per annum inclusive of GST in rental. It should be noted that this amount falls short of the estimated amount of 50% of market rental deemed appropriate in accordance with the Code. Lifeline have indicated that their organisation would find it extremely difficult to pay a higher rental in view of the other costs that they will be expected to pay under a lease of 11 Coronation Street Hornsby. (N.B. One letter has recently been received in support of Lifeline’s application - from the State Member for Ku-ring-gai, Barry O’Farrell MP - See Attachment 2).

Council officers have calculated that the rental offer received from Lifeline equates to approximately 30% of the market rental assessment of $98,000. While the acceptance of the lease application from Lifeline would provide Council with an immediate occupier for 11 Coronation Street, Hornsby, Council officers consider that such a departure from the provisions of the Code has the potential to create an undesirable precedent in the consideration of future lease negotiations with other community groups seeking use of Council’s property assets.

Accordingly, with Lifeline expected to be a potential respondent to the recommended public invitation to lease 11 Coronation Street, Hornsby, it is considered that the current application from Lifeline should not be determined at this stage. Instead, to ensure an appropriate open and equitable process, it is recommended that invitation to lease be invited from interested commercial entities and community groups prior to a decision being made.

BUDGET

While the application received from Lifeline would provide a minimum rental income of $80,000 inclusive of GST during the first three year period of tenure, Council officers are of the opinion that should Council be supportive of Option Two, there may be interest from other community organisations and there is potential that a higher income return could be realised. Based on the estimated market rental, there is the opportunity that another community based occupier, willing to pay 50% of the market rental, would provide Council with a total rental income of $98,000 inclusive of GST over the two year period. Further, should the public invitation process identify a suitable commercial occupier willing to pay a market rental, Council may receive a substantially higher level of income over a three year term. While the implementation of the invitation to lease process recommended under Option Two will take approximately two months to complete, Council officers consider that with the ongoing vacancy creating no adverse impacts on the 2011/12 budget, the opportunity to achieve a higher rental income from 11 Coronation Street, Hornsby should not be dismissed.

POLICY

This Report has been prepared having consideration to the Code for Lease/Licence of Council Land and Buildings to Community Groups and Council’s Lease/Licence of Council Land policy.

CONSULTATION

There has been consultation in the preparation of this report with Council’s Land and Property Services Manager and a letting agent from Camelle Real Estate.

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. 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 officer responsible for the preparation of this Report is Mrs Robyn Abicair, Manager Governance and Customer Services Branch who can be contacted on 9847 6608 during office hours.

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No. CC48/11 be received and noted.

2. Council issue a public invitation to lease the premises at 11 Coronation Street, Hornsby from both commercial entities and community groups for a maximum term of up to five years.

3. Following receipt of the public invitation to lease submissions referred to in point 2 above, a report be prepared for Council’s consideration detailing the outcomes of the process.

Robyn Abicair

Manager - Governance & Customer Service

Corporate and Community Division

Gary Bensley

Executive Manager

Corporate and Community Division

Attachments:

1.View	Attachment 1: Code for Lease Licence of Council Land and Buildings to Community Groups
2.View	Attachment 2: Letter of Support State MP for Ku-ring-gai

File Reference: F2004/09431

Document Number: D01724636

Executive Manager's Report No. CC49/11

Corporate and Community Division

Date of Meeting: 24/08/2011

10 SOCIAL PLAN - REPORT ON ACHIEVEMENTS 2010/11; AND UPDATE ON HOMELESSNESS TASK FORCE

EXECUTIVE SUMMARY

This Report and attachment addresses the implementation of the Social Plan 2010 – 2014 for the period of the 2010/11 financial year. It is recommended that Council adopt the Social Plan Report on Achievements associated with the Operational Plan 2010/11 as a record of work undertaken against agreed strategic goals.

The Report also deals with the action from Council’s consideration of Executive Manager’s Report No CC93/09 that staff continue to participate in the Hornsby Homelessness Task Force and the production of a Homelessness Action Plan.

With respect to the production of a Homelessness Action Plan, the Task Force first sought to undertake a count of homeless people in order to determine the need and to prioritise action. As the count was only conducted in February 2011, an action plan has yet to be drafted. The Action Plan is the responsibility of the Task Force rather than Council. The recommendation is that Council officers continue to represent Council on the Hornsby Homelessness Task Force and that actions associated with the issue of homelessness continue to be included in annual Council Operational Plans at a level commensurate with the scale of the issue relative to other social issues that Council addresses.

PURPOSE/OBJECTIVE

The two purposes of this Report are to:

· Update Council on the implementation of the annual Social Plan Operational Plan for 2010/11.

· Update Council on the work undertaken with respect to homelessness in the Shire following consideration of Executive Manager’s Report No. CC93/09.

DISCUSSION

Social Plan Operational Plan Update

The Community Services Branch is responsible for the production and implementation of a number of the organisation’s strategic planning documents that contribute to the direction of the Hornsby Shire Community Plan 2010 – 2020. Specifically, this Report deals with the implementation of the Social Plan 2010 – 2014 for the period of the 2010/11 financial year. The Social Plan provides the consultative framework around the goals associated with the Community Plan’s strategic themes of Society and Culture. The “how” associated with the achievement of these community goals is articulated in the annual Social Plan Operational Plan under the Integrated Planning and Reporting Framework.

The Operational Plan associated with the implementation of the Social Plan was adopted by Council at the 30 June 2010 Ordinary Meeting following consideration of Executive Manager’s Report No CC31/10. The Social Plan Operational Plan 2010/11 provided a detailed list of tasks to be undertaken by Council’s Community Development Team which addressed Council’s strategic goals predominately associated with Society and Culture. The detailed outcomes of these actions have been captured in Council’s Performance Planning System. For the purposes of this Report, a more reader friendly version of annual service highlights has been compiled and is attached to this Report for the information of Councillors.

It is recommended that Council adopt the Social Plan Report on Achievements associated with the Social Plan Operational Plan 2010/11 as a record of work undertaken against agreed strategic goals.

Homelessness Task Force Update

Following consideration of Executive Manager’s Report No. CC93/09, Council resolved in part that:

Council’s Community Services Branch staff continue to participate in the Hornsby Homelessness Task Force and the production of a Homelessness Action Plan.

As required by that resolution, Council staff have participated on the Hornsby Homelessness Task Force and have coordinated activities such as the inaugural Hornsby Homelessness Count and the Brooklyn Homeless Information Day. These activities were listed in the Council adopted Social Plan Operational Plan for the 2010/11 financial year. A report on the Hornsby Homeless Count is attached to this Report for the information of Councillors. Information on the Brooklyn Homeless Information Day is included in the Social Plan Report on Achievements which is also attached to this Report.

With respect to the production of a Homelessness Action Plan for the Shire, the Homelessness Task Force first sought to undertake a count of homeless people in order to determine the need and to prioritise action. As the count was only conducted in February 2011, an action plan has yet to be drafted. The Action Plan is the responsibility of the Homelessness Task Force rather than Council.

As outlined in the attached report on the Homeless Count, 13 individuals were counted as sleeping rough on the count night and 28 people were counted in temporary accommodation. Whilst the number of rough sleepers counted on the night was not high, there were undoubtedly other factors that impacted on the final figures collected. Specifically, in the week leading up to the count night, Sydney experienced its longest period of consecutive hot days with 6 days in a row being over 35°C. Then, on the night of the count at 4pm, the temperature dropped to 15°C. Most locations across the Shire had experienced some rain by 8.30pm. Due to the methodology used to undertake the count of homeless people (individuals were counted in public places around dinner time rather than where they would typically sleep), the count numbers were lower than anticipated. It is assumed that homeless people would have been seeking shelter from the weather at the time the count was conducted and, therefore, not in the places that they otherwise would have been.

The Homeless Count Report makes the following recommendations:

1. The Homelessness Task Force continues to provide a network for services to share information and investigates strategies to support the coordination of this information to services that provide services to homeless people, particularly food services and accommodation services.

2. The Homelessness Task Force advocate for the needs of people that are homeless. This advocacy should be based on a needs analysis of the services available within the Shire.

3. The Homelessness Task Force investigates training opportunities that may assist front line staff such as customer services staff, park rangers, security officers, transit officers and the Police to assist them in dealing with homeless people who may be sleeping in parks, at bus shelters, shop doorways, on trains or stations etc.

4. Task Force to investigate funding options that may support Homeless services.

It is noted that the Task Force is not a committee of Council but rather a community committee upon which Council has representation. Executive Manager’s Report No. CC93/09 outlined the appropriate local government responses to the issue of homelessness. It is recommended that Council officers continue to represent Council on the Homelessness Task Force as per Report No. CC93/09 and that actions associated with the issue of homelessness continue to be included in annual Council Operational Plans at a level commensurate with the scale of the issue relative to other social issues that Council addresses.

BUDGET

There are no budgetary issues associated with this Report.

POLICY

There are no policy implications associated with this Report.

CONSULTATION

Relevant Community Services Branch staff have been consulted in the preparation of this Report.

TRIPLE BOTTOM LINE SUMMARY

A Triple Bottom Line assessment is not required of this Report as it is a progress report on the implementation of various Plans previously adopted by Council.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Manager, Community Services Branch - David Johnston. He can be contacted on telephone 9847 6800. For further information please contact Council's Manager Community Development, Ms Lisa Cahill, on 9847 6779, Monday to Friday 8.30 am to 5.00 pm.

THAT:

1. The contents of Executive Manager’s Report No. CC49/11 be received and noted.

David Johnston

Manager - Community Services

Corporate and Community Division

Gary Bensley

Executive Manager

Corporate and Community Division

Attachments:

1.View	Social Plan Annual Report Card 2010/11
2.View	Homelessness Count Report

File Reference: F2009/00662

Document Number: D01725129

Executive Manager's Report No. CC50/11

Corporate and Community Division

Date of Meeting: 24/08/2011

11 APPLICATION FOR LEASE OF 1-3 JERSEY STREET, HORNSBY - FUSION AUSTRALIA LIMITED

EXECUTIVE SUMMARY

Since 1998, Fusion Australia Limited (Fusion) has occupied the retail premises at 1-3 Jersey Street Hornsby as a second hand clothing shop and office under a number of short term lease agreements with the rental being fully subsidised by Council. Fusion has recently submitted an application to Council seeking a further lease to secure their ongoing occupation of the premises. The application has been assessed by Council officers in line with the provisions of Council’s Code for the Lease/Licence of Council Land and Buildings to Community Groups (the Code) - see Attachment 1.

The officers’ initial assessment determined that Fusion should be offered a lease in line with the “Community Partnership” category provisions of the Code. Advice of the results of the assessment was forwarded to Fusion who provided a response stating that unless the “Nominal” category of the Code was applied they would be required to reduce the level of services they provide to the community.

Council officers have undertaken a review of the initial assessment taking into consideration the additional comments provided by Fusion and have concluded that the “Community Partnership” category is still appropriate. It is noted that the rental associated with the “Community Partnership” category is assessed on 25% of market rental, in this case resulting in a rental payable of $16,616.50 per annum inclusive of GST. The rental associated with the “Nominal” category would be $320 per annum inclusive of GST. If it was decided that category was appropriate, Fusion would become responsible for all maintenance and structural repairs to the building.

Although it is recognised that Fusion makes a valuable contribution to the local community, Council officers are required to assess the application and make a recommendation to Council in accordance with the Code. Any decision outside of the parameters of the Code can only be made by Council after it has considered the officers’ recommendations as well as taking into account any other issues it believes are relevant to its determination.

Having regard to the officers’ assessment of Fusion’s application; a recent decision of Council where another community group had indicated that they were unable to comply with an assessment undertaken by officers in line with the Code; and to demonstrate Council’s commitment to the equitable allocation of Council assets to the community, this Report recommends that a public invitation be issued to identify a suitable occupier to lease the premises at No. 1-3 Jersey Road Hornsby.

PURPOSE/OBJECTIVE

The purpose of this Report is to provide Council with details of the assessment of an application from Fusion Australia Limited to be granted a further lease of the retail premises at 1-3 Jersey Street Hornsby; and to recommend that Council issue a public invitation to lease the premises.

DISCUSSION

Background

Council, at its Meeting on 10 December 1997 (see Report No CC18/97), resolved to grant Fusion a lease of the retail premises at No. 1-3 Jersey Street Hornsby for an initial term of 18 months and to fully subsidise the market rental. Fusion would use No. 1 Jersey Street as a second hand clothing shop and use No. 3 Jersey Street as a Youth Drop-in Centre and as an office for their organisation. The rear of No. 3 Jersey Street would also be used for storage of stock for the second hand clothing shop. Following a request from Fusion, Council, at the 8 December 1999 Meeting (see Report CC124/99) resolved to grant Fusion a further lease for a period of 18 months with the market rental continuing to be fully subsidised by Council. In light of the premises forming part of Council’s redevelopment site bounded by Coronation Street, Jersey Street, Jersey Lane and Hornsby TAFE College, a provision was included in the lease to require the premises to be vacated and handed back to Council on six months’ notice should a decision be made by Council to redevelop the site. Since that time Fusion has remained in occupation of the premises under the holding over provisions of the expired lease. Fusion also has a lease of the adjoining Council owned premises at No. 5 Jersey Street Hornsby that will expire on 31 March 2013.

The premises are located on the western side of Jersey Street and are contained within Lot 4 in Deposited Plan 2947 with a site area of 455.3 square metres. The premises are currently classified as Operational land and zoned Business F (Town centre) in which shops and community facilities are permissible with development consent.

Fusion’s Request for a New Lease

In 2009, Fusion submitted an application requesting a new lease of the premises at No. 1-3 Jersey Street Hornsby for a term of five years with an option to renew for a further period of five years in line with the provisions of Council’s Code for the Lease/Licence of Council Land and Buildings to Community Groups. A copy of the application is available on file.

As previously reported, the Code was originally adopted by Council in May 2007 to provide a framework for the equitable, efficient and effective lease/licence of Council’s property assets to community groups. The Code assists Council officers to assess community group applications for the use of Council land and buildings in a transparent manner, based on agreed eligibility criteria, and to formulate appropriate lease/licence terms and conditions for consideration by Council.

An assessment of the lease application received from Fusion was undertaken in line with the criteria set out in the Code. The assessment by Council officers determined that Fusion should be offered a lease of the premises in line with the “Community Partnership” category of the Code. Having regard to the future strategic purpose of the premises advice has recently been received from Council’s Land and Property Services Manager indicating that any lease of the premises should be limited to a term of not more than three years. In the circumstances, Officers considered that if Council was supportive of granting Fusion a further lease of the premises, the following Heads of Lease arrangements should be applied:

1. Period of lease: Three years or 31 March 2013.

2. Use of Property: Second hand clothing shop and office for Fusion Sydney North.

3. Rental as per Code: $16,616.50 per annum inclusive of GST.

4. Rental Review: Annual CPI adjustments.

5. Statutory Outgoings: 50% Payment of any Council and water/sewerage rates, if assessed

6. Operating Costs: 100% of electricity, gas, telephone, water usage, etc.

7. Insurance: Public liability insurance, indemnity $20 million, Plate Glass insurance.

8. Legal fees: 50% of lease preparation costs.

9. Maintenance as per Code: Responsible for Community Partnership repairs and maintenance including internal painting and decoration, maintain/repair/replace internal fixtures and fittings and internal building services.

10. Miscellaneous: Fusion has indicated it would be prepared to repair rear wall and paint exterior of building and rejuvenate gravel path at rear of premises.

(In respect of the Statutory Outgoings and Operating Costs, it is noted that no Council rates are levied on the property and the costs associated with the provision of electricity, gas and water to the property are currently being met by Fusion.)

Advice of the above draft Heads of Lease arrangement was provided to Fusion who has provided a response (a copy of which is included as Attachment 2 to this Report) indicating the imposition of the proposed rental would have a devastating effect on their service provision and accordingly they are requesting that the “Nominal” category be applied. It should be noted that Council officers are required to assess applications and make recommendations to Council in accordance with the Code. Any decision outside of the parameters of the Code can only be made by Council after it has considered the officers’ recommendations as well as any other issues it considers relevant to its determination.

Officer Comments

In accordance with the provisions of the Code, to be entitled to a “Nominal” category lease, a community group is required to meet the following relevant eligibility criteria:

a) Satisfy the eligibility criteria under section F of the Code

b) Provide a high level of community benefit (i.e. provide services to at least four target groups identified in Council’s Social Plan)

c) Provide optimal multiple use opportunities (i.e. fully utilised or nature of use precludes multiple use opportunities)

d) Responsible for all capital and full maintenance of the property

e) Has limited revenue raising and grant funding ability net of cost of service (i.e. no access to grants or fund raising opportunities)

f) May be in need of Council’s assistance to become established

Comments addressing Fusion’s eligibility under each of the criteria are detailed below:

a) Satisfy the eligibility criteria under section F of the Code

Having regard to Fusion’s initial application and additional information provided, the officers’ assessment is that this criteria is met.

b) Provide a high level of community benefit (i.e. provide services to at least four target groups identified in Council’s Social Plan)

Having regard to Fusion’s initial application and additional information provided, the officers’ assessment is that this criteria is met.

c) Provide optimal multiple use opportunities (i.e. fully utilised or nature of use precludes multiple use opportunities)

Having regard to Fusion’s initial application and additional information, the officers’ assessment is that this criteria is met.

d) Responsible for all capital and full maintenance of the property

The officers’ assessment of Fusion’s initial application and additional information is that this criteria has not been met. The group has indicated within their application that they are prepared to commit to full maintenance of internal components of the retail space but would not be responsible for full maintenance of the building shell and external painting. As a consequence, responsibility for the ongoing structural repair and maintenance of the building would remain with Council. Accordingly, the application by the organisation does not satisfy this criteria. (It should be noted that this criteria point will generally only be met by a group when they construct a building on Council land at their own cost and are subsequently responsible for all maintenance and structural repairs.)

e) Has limited revenue raising and grant funding ability net of cost of service (i.e. no access to grants or fund raising opportunities)

Having regard to Fusion’s initial application and additional information supplied in their subsequent submission, the officers’ assessment is that this criteria is met.

f) May be in need of Council’s assistance to become established

As Fusion is already established, officers consider that this criteria does not apply.

The Council officers’ assessment is that as not all of the above criteria have been met, Fusion is not eligible to be placed in the “Nominal” category defined in the Code. It is noted that if the “Nominal” category was determined by Council as being applicable, the rental according to the Code would be $320 per annum (inclusive of GST) and Fusion would be responsible for all maintenance and structural repairs.

Since the introduction of the Code in 2007, Council officers have assessed all applications for the lease/licence of Council owned land and buildings by community groups in accordance with the provision of the Code. The purpose of the Code is “to provide Council with a framework for the equitable, efficient and effective lease/licence of its land and building assets to community groups whilst ensuring that financial allocations to community groups reflect Council’s commitment to its community development role and to encourage creative, relevant, community driven initiatives within the Shire”. The proposed category has been determined by Council officers in accordance with the eligibility criteria contained within the Code which has regard to market rental.

While it is acknowledged that Fusion has remained in occupation of the premises for over 13 years and makes a valuable contribution to the community, Council officers consider any departure from the provisions of the Code has the potential to create an undesirable precedent in the consideration of future lease negotiations with other community groups seeking use of Council’s property assets.

Taking into consideration the above and a recent decision of Council where another community group had indicated that they were unable to comply with an assessment undertaken by officers in line with the Code it is recommended that, as an alternative, a public invitation seeking potential commercial or community occupiers of the premises be undertaken. This action would provide Fusion with the opportunity to remain in occupation of the premises while maintaining consistency with the provisions of the Code. Further, this action will demonstrate Council’s commitment to the equitable allocation of Council assets to the community and provide any potential occupiers with an understanding of Council’s requirements concerning the future leasing of No. 1-3 Jersey Street Hornsby.

BUDGET

As the premises are currently occupied by Fusion on a fully subsidised rental basis, the implementation of the Officers’ recommendation will have no adverse impact on the 2011/12 Budget. Depending on level of interest received to the public invitation Council may achieve a modest 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.

CONSULTATION

There has been consultation with representatives of Fusion and officers of the Land and Property Services and Community Services Branches in the preparation of this Report.

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. 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 officer responsible for the preparation of this Report is Mrs Robyn Abicair - Manager Governance and Customer Service who may be contacted on 9847-6608.

RECOMMENDATION

THAT:

1. The contents of Executive Manager’s Report No. CC50/11 be received and noted.

2. Council issue a public invitation to lease the premises at No.1-3 Jersey Street Hornsby from both commercial entities and community groups for a maximum term of up to three years.

3. Following receipt of the public invitation to lease submissions referred to in point 2 above, a report be prepared for Council’s consideration detailing the outcomes of the process.

Robyn Abicair

Manager - Governance & Customer Service

Corporate and Community Division

Gary Bensley

Executive Manager

Corporate and Community Division

Attachments:

1.View	Attachment 1: Code for the Lease Licence of Council Land and Buildings to Community Groups
2.View	Attachment 2- Submission from Fusion Australia Nominal Category request

File Reference: F2004/09431

Document Number: D01731900

Executive Manager's Report No. EN29/11

Environment Division

Date of Meeting: 24/08/2011

12 CARBON PRICE IMPACT - REVIEW OF FEDERAL GOVERNMENT REPORTS

EXECUTIVE SUMMARY

The fourth assessment report of the Intergovernmental Panel on Climate Change confirms that climate change is occurring now, mostly as a result of human activities and illustrates the impacts of global warming already under way and to be expected in the future.

Whilst there is bipartisan agreement at a national level that climate change is occurring, and there is a commitment to reduce Australia’s greenhouse gas emissions by at least 5% by 2020 (relative to 2000 levels), there are differing views as to the most effective way of achieving these reductions.

Overall, reports by Professor Ross Garnaut and the Productivity Commission found a market based price on carbon to be the most cost effective mechanism in addressing carbon pollution. In July 2011, having considered these reports, the Federal Government announced the detail of its Clean Energy Future Plan. Central to the plan is the introduction of a fixed carbon price of $23 per tonne commencing on 1 July 2012, transitioning in three years to a market derived price.

Modelling based upon Council’s energy and waste profile suggests that annual operating costs could increase by approximately $275,000 per annum under the plan. Increased costs associated with goods and services purchased by Council would be additional to this amount however are not able to be projected at this point in time.

An assistance package comprised of individual tax cuts, increases to pensions, allowances and benefits, industry assistance and competitive grants schemes are proposed to support the introduction of the carbon price.

Due to the structure of the individual assistance package, it is likely that there will be a proportion of households in Hornsby that will receive little if any net support. In this context, it is suggested that Council explore opportunities to further inform and support our community in limiting household energy use and identifying novel approaches, such as group purchasing schemes to reduce the financial impact of a carbon price.

Assistance for local government appears to be limited to an energy-efficiency focused competitive grants scheme with a total funding pool of $200 million over five years.

In the absence of effective measures to limit climate change, Council’s Climate Change Adaptation Strategic Plan found that Hornsby is likely to experience a number of impacts ranging from increased risk of bushfire, to substantial rainfall increases and run-off depths potentially leading to flash and riverine flooding, to sea level rise.

Whilst the high end scenarios for these impacts are not anticipated in the short term, due to the substantial costs expected in responding, prudent planning and gradual implementation of Council’s response beginning in the near future would enable actions to be progressively implemented over time.

PURPOSE/OBJECTIVE

The purpose of this report is to provide advice on the implications for Council of the introduction of a carbon tax.

DISCUSSION

At its meeting of 15 June 2011, Council resolved on Notice of Motion 06/11 ‘THAT the Executive Manager, Environment prepare a report for Council’s consideration at the 24 August 2011 Ordinary Meeting which reviews the recent reports to the Federal Government by Professor Garnaut and the Productivity Commission on the introduction of a carbon tax and provides advice on any implications for Council’.

In the intervening time the Federal Government has announced the detail of its Clean Energy Future Plan. In broadest terms, this plan will introduce a fixed carbon price of $23 per tonne from 1 July 2012, transitioning in three years time to a market derived price.

The structure of the Clean Energy Future Plan was informed by reports prepared by Professor Ross Garnaut, The Garnaut Review 2011: Australia in the Global Response to Climate Change, the Productivity Commission research report Carbon Emissions Policies in Key Economies and the deliberations of the Multi-Party Climate Change Committee. The findings of the Garnaut and Productivity Commission reports are briefly discussed below.

The Garnaut Review 2011: Australia in the Global Response to Climate Change

This review provides an update to the 2008 Garnaut Climate Change Review, examining whether significant changes that had occurred since the 2008 review - namely the 2009 and 2010 climate change conferences in Copenhagen and Cancun respectively, along with the global financial crisis, would affect the key findings and recommendations reached in 2008.

The 2011 review continues to argue for a market based approach incorporating a three year fixed-price period (a carbon tax) followed by a carbon trading scheme with a floating price. The review favours this approach over a direct action or regulatory approach as it is expected to raise significant revenues that could be used to buffer the transition to a low-carbon economy, in contrast to the direct action approach which it found would impose additional costs on households and businesses but not provide a way to balance them. The review recommends the introduction of a carbon price of between $20-$30 per tonne.

Productivity Commission: Carbon Emission Policies in Key Economies

In May 2011 the Productivity Commission delivered its research report examining carbon emission policies in nine different countries including the UK, US, Germany, New Zealand, China, India, Japan, South Korea and Australia.

The Commission’s terms of reference focussed their analysis on the effective carbon price per tonne faced by the electricity generation sector, and selected industries from the manufacturing and transport sectors.

The Commission found that while the cost per unit of abatement varied widely (even within countries), emissions trading schemes were found to be relatively cost effective whereas policies encouraging small-scale renewable generation and bio-fuels generated little abatement for substantially higher cost. For example, modelling undertaken by the Commission found that the 12.5 Mt of abatement achieved by existing policies (Renewable Energy Targets and Feed-in Tariffs) for the electricity generation sector in 2010, could have been delivered instead by a carbon price (for the electricity sector only) in the order of $9 per tonne CO₂, or at a fraction of the existing cost. Alternatively, the Commission has estimated that a carbon pricing mechanism applying to the electricity generation sector, and imposing the same costs as the policies in place in 2010, could have reduced emissions by more than double the abatement achieved.

The Commission’s analysis of policies across the nine different countries found that whilst a number of direct action policies supporting particular types of abatement technologies, particularly in the electricity generation and road transport sectors, have had a material impact upon prices, few appeared to have had significant impacts upon abatement.

Clean Energy Future Plan

In July 2011, the Federal Government announced its Clean Energy Future Plan (‘the Plan’). Under the Plan, a fixed carbon price of $23 per tonne would be introduced on 1 July 2012 to the 500 biggest polluters within the country, transitioning to a market derived price (with a regulated floor and ceiling on the price) three years later, on 1 July 2015.

Under the Plan three bodies would be tasked with administering the scheme as follows:

· A new Climate Change Authority to advise on pollution caps and progress towards meeting targets and undertake reviews of the carbon pricing mechanism;

· A new Clean Energy Regulator to administer the carbon pricing mechanism; &

· The Productivity Commission to undertake reviews relating to industry assistance, fuel tax arrangements and carbon pollution reduction activities internationally.

As part of the Plan, the Federal Government announced a range of assistance measures primarily focussing on businesses and households. Apart from identifying headline measures below, this report does not discuss their detail, rather focussing on the measures relevant to local government.

Headline assistance measures include:

· Lifting of the tax free threshold and individual tax cuts;

· Increases in pensions and allowances along with higher family tax benefits;

· $1.2 billion Clean Technology Program to help improve energy efficiency in manufacturing industries; &

· $10 billion Clean Energy Finance Corporation to invest in renewable energy, low-pollution and energy efficient technologies.

Assistance for local government comes via the five year, $330 million Low Carbon Communities program.

Of this, $100 million is allocated to the Low Income Energy Efficiency Program – a competitive grants program open to consortiums of local and state governments, community organisations, energy retailers and energy service companies to assist identified low income households reduce energy costs to adjust to the impacts of a carbon price. This program aims to fund 15-20 trial projects across the country.

A further $30 million has been allocated to the Household Energy and Financial Sustainability Scheme to assist approximately 100,000 low-income households find more sustainable ways of managing their energy consumption.

The remaining $200 million would be made available through a competitive grants scheme to councils and community organisations to undertake energy efficiency upgrades and retrofits to council and community use buildings. Examples of projects that might be funded include improving public place and street lighting with high efficiency technologies such as LED; installation of cogeneration/trigeneration systems; energy efficient retro-fitting and retro-commissioning of council or community premises and installing sub-metering, smart metering or building energy management systems.

Projected impacts upon Council of a $23 per tonne CO₂e Carbon Price

Whilst the carbon price would only directly apply to around 500 of the biggest polluters in Australia, representing approximately 60% of Australia’s carbon pollution (including from electricity generation, stationary energy, some business transport, waste, industrial processes and fugitive emissions), these costs would be passed through the economy resulting in increased operating costs to Council.

Executive Manager’s report EN23/11, considered at Council’s meeting of 15 June 2011 estimated that Council’s annual operating costs could increase by approximately $240,000 with the introduction of a $20 per tonne carbon price.

Further modelling has been conducted on the financial impact to Council now that detail regarding the extent of coverage and carbon price is known. A revised estimate indicates that Council’s annual operating costs under the plan could increase by approximately $275,000. It should be noted that this modelling has been based upon Council’s energy and waste profile and that any increased costs associated with other goods and services purchased by Council would be additional to this amount.

Councils provide a wide range of infrastructure and services to local communities and are constrained in their capacity to pass on the costs of a carbon price. Having regard to the above, the Australian Local Government Association has recently written to the Minister for Climate Change requesting a meeting to discuss the role of local government in helping to address climate change, and the potential impacts of the carbon price mechanism on councils.

Opportunities to minimise the impacts of a Carbon Price on Council and the community

It has previously been identified that Council’s annual operating costs are projected to increase by approximately $275,000 with the imposition of a $23 per tonne cost on carbon.

Analysis of Council’s greenhouse gas emissions profile indicates that over 80% of Council’s increased costs under a carbon price are related to our electricity consumption.

This suggests that Council’s primary focus should be on improving energy efficiency in our facilities as well as investing in renewable energy sources. Recent examples of this include the wind turbine and solar photovoltaic system installed at the fire control centre, providing 30% of the centre’s electricity needs, along with the solar photovoltaic panel installations on the Hornsby Library and Administration Centre.

It also suggests that Council should maintain a strong focus on ensuring that all new and refurbished facilities meet Council’s Sustainable Energy for New Council Assets Code. This code sets a goal of reducing energy consumption by 30% when compared to the existing equivalent facility. This will be particularly important in controlling operating costs at high profile, energy intensive facilities such as the new Hornsby Aquatic Centre.

Despite accounting for over 45% of Council’s greenhouse gas emissions, improving the energy efficiency of street lighting presents a much greater challenge to Council. This can be attributed to the lack of effective competition or choice in provider, and that Council has no direct control over the replacement and maintenance of these assets with energy efficient fixtures such as LED. Council is seeking to address the underlying issues through its participation in the Southern Sydney Regional Organisation of Councils facilitated Street Lighting Improvement Program.

As highlighted previously, $200 million will be allocated over five years to a competitive grants program to enabling councils and community organisations to undertake energy efficient upgrades and retrofits to community facilities. Council should proactively explore all opportunities to secure grants under the Low Carbon Communities Program to implement further actions from its Sustainable Energy Strategy.

Due to our community profile and the structure of the individual assistance package, it is likely that there will be a proportion of households in Hornsby that will receive little if any net support under the Clean Energy Future Plan. In this context, it is suggested that Council explore opportunities to further inform and support our community in limiting household energy use such as our current home energy meters borrowing program run through our libraries. Under this program Council has over 50 home energy meters available for loan, enabling residents to determine how much a particular appliance costs to run and how much CO₂it produces per kilowatt hour.

Opportunities also exist for Council to identify and facilitate novel approaches, such as group purchasing schemes to reduce the financial impact of a carbon price on our community. These schemes work on a preferred supplier/product arrangement where all energy retailers are invited to bid with their best service and price offering for the registered participants. Residents then participate in the scheme by voluntarily taking up the deal.

Examples include Power Group Purchasing who initiated a successful program in the Victorian town of Somers. This program saw residents offered a 15% pay on time discount, up to $50 in additional one-time benefits and a further 12% reduction in off-peak rates. Power Group Purchasing is currently seeking participants for a new scheme in Pennant Hills and West Pennant Hills. This program is run independent of Council and at no cost to participants, with Power Group Purchasing receiving a commission from the successful energy retailer.

Another example of a group purchasing, albeit focussed on banks and mortgages is the One Big Switch program currently being run by Choice.

Projected impacts upon Council in the absence of effective measures to limit climate change

In its fourth assessment report, the Intergovernmental Panel on Climate Change provides projections for carbon dioxide emissions associated with six different future development and mitigation scenarios influencing atmospheric CO₂ concentrations. It is important to note that while three of these scenarios are associated with reduced emissions over the twenty-first century, none of the scenarios are projected to result in decreased atmospheric CO₂ concentrations by 2100.

It should also be noted that analysis of actual CO₂ emissions compared to projected CO₂ emissions found that since 2005, actual emissions have exceeded the highest projected IPCC emissions scenario (A1FI scenario).

The A1FI scenario describes a future world of very rapid economic growth, global population that peaks in mid-century and declines thereafter, and the rapid introduction of new and more efficient technologies. Importantly this scenario is predicated upon a fossil intensive energy sources (IPCC).

Under the A1FI scenario, the Intergovernmental Panel on Climate Change projects that the likely range of temperature increases at the end of the century would be between 2.4-6.4 degrees relative to 1980-1999 levels, with a best estimate of 4 degrees.

Locally, the consequences of climate change were broadly outlined in Council’s Climate Change Adaptation Strategic Plan that was considered by Council in August 2009.

The Plan identified five key areas of impact for Hornsby being:

· Heat;

· Bushfires;

· Ecosystems;

· Rainfall; &

· Sea level rise.

Heat

Increasing average temperatures combined with an increased frequency and intensity of extreme heat events are projected to have a variety of impacts on Hornsby including an increased strain on social, public health and emergency services; injury and loss of human life; loss or damage to transport and utility infrastructure; and changes to ecosystems resulting in the threat or loss of plant and animal species within the natural environment.

The 2008 Mapping Climate Change Vulnerability in the Sydney Coastal Councils Group report found that whilst generally Hornsby has a moderate vulnerability to extreme heat, far northern and far southern parts of Hornsby Shire have a high sensitivity to extreme heat due to relatively high proportions of elderly individuals residing there.

The likely costs of increased heat are unable to be projected at this time however, the Impacts of Climate Change on Natural Hazards Profile – Sydney/Central Coast Region (December 2010) published by the NSW Department of Environment, Climate Change & Water notes that heatwaves have accounted for more deaths in Australia than any other natural hazard.

Considerations for Council into the future include maintaining the integrity of our public infrastructure and assets; addressing risk management concerns relating to the potential for an increase in personal injury and property damage due to falling limbs and trees; and reviewing buildings and facilities to reduce community vulnerability to heat – for example the promotion of accessible air-conditioned public facilities such as libraries, to providing outdoor drinking facilities and shelters in parks and reserves.

Bushfires

In its report The Critical Decade: Climate Science, Risks and Responses (May 2011), the Climate Commission notes that climate change affects fire regimes in at least three ways. First, changing precipitation patterns, higher temperatures and elevated atmospheric C0₂ concentrations affect the biomass and composition of vegetation, the fuel load for fires. Second, higher temperatures tend to dry the fuel load, making it more susceptible to burning; drought conditions can significantly exacerbate these conditions. Third, climate change increases the probability of extreme fire weather days – conditions with extreme temperature, low humidity and high winds.

Despite projected increases in summer rainfall for Sydney, increased temperature and evaporation are likely to create drier conditions in winter and spring leading to extended fire seasons (Impacts of Climate Change on Natural Hazards Profile – Sydney/Central Coast Region, December 2010).

The 2008 Mapping Climate Change Vulnerability in the Sydney Coastal Councils Group report found that the number of days that Sydney experiences a fire danger index of ‘very high’ or ‘extreme’ is projected to increase from approximately 9 at present, to 9 to 11 by 2020 and 10 to 15 by 2050. The report also noted that the most hazardous bushfires occur around the fringes of development where there is significant native and modified vegetation to fuel bushfires.

In addition, Hornsby presently has approximately 50km of bushland/urban interface that is vulnerable in the event of bushfire. Whilst the extent of interface is unlikely to increase as a result of climate change, there would be an increased imperative to ensure that adequate asset protection zones are put in place and effectively maintained.

Increases to bushfire would have a significant impact upon Hornsby with 35% of the Shire’s total road network located within areas identified as vulnerable to increases in bushfire; 22 suburbs within the Shire are located in highly vulnerable zones for increases in fire intensity and/or frequency; and approximately 290ha of vegetation listed as threatened or endangered is highly vulnerable to increased bushfire impacts.

Council currently spends $160,000 per annum on direct bushfire related measures. Economic costs are expected to rise if climate change exacerbates the areas of Council vulnerable to bushfire, particularly in terms of localised fire fighting efforts and resources, clean-up and interim costs of displaced people and services, and the rebuilding of infrastructure, homes and buildings.

Ecosystems

The NSW Climate Impact Profile (June 2010) published by the Department of Environment, Climate Change and Water identifies a number of climate change impacts on ecosystems including on biodiversity; a change in the structure, composition and function of ecosystems; and changes to distribution patterns of individual species.

Impacts of greatest concern to the Hornsby Shire include:

· Changes to the geographic ranges of species;

· Changes in the timing of species’ lifecycles;

· Increasing threatened species vulnerability;

· Biodiversity impacts;

· Loss/damage to ecosystem structure and function, and

· Increased success of weed and pest species.

35-40% of critically endangered ecological communities of state and national significance within the Shire are located in areas that are highly vulnerable to ecological impacts.

Rainfall

The NSW Climate Impact Profile (June 2010) published by the Department of Environment, Climate Change and Water found that by 2030 summer rainfall is likely to increase substantially (20-50%) across the Sydney/Central Coast region. A substantial increase (up to 34%) in run-off depths is also very likely to occur.

Increases in extreme rainfall events are anticipated to increase the risk of flooding (flash and riverine), unless stormwater infrastructure and flood mitigation measures are updated. Flood events can impose significant costs upon the community – an extreme rain event in Wollongong in 1998 brought large amounts of rain within 24 hours resulting in a one in fifty year flood and $125 million in damages.

A large number of Council assets have been identified as highly vulnerable to extreme rainfall and stormwater management impacts. These include 36% or 143km of Council’s stormwater pipes and 35% or 6,444 stormwater pits. In addition, 26% or 215km of Council’s road network has been identified as being located within highly vulnerable areas.

In 2010/11 Council allocated approximately $1.15 million towards the maintenance of its stormwater system with a further $400,000 to capital upgrade works.

It should be noted that with IPART’s recent approval of the rate variation, Council’s capital expenditure on improvements to stormwater infrastructure will increase substantially, presenting an opportunity to ensure that future upgrade works are designed to cater for increased rainfall amounts and intensity.

Sea Level Rise

The NSW Sea Level Rise Policy Statement (October 2009) published by the Department of Environment, Climate Change and Water notes that sea levels along the NSW coast and estuaries are estimated to rise 40cm by 2050, and 90cm by 2100 relative to 1990 levels, however that higher rates of sea level rise are possible.

This could lead to increased or permanent tidal inundation of land by seawater; changes in the way that tides behave within estuaries; saltwater extending further upstream in estuaries; higher saline water tables in coastal areas; and increased coastal flood levels due to a reduced ability to effectively drain low-lying coastal areas.

On a national level, modelling released in 2011 by the Department of Climate Change and Energy Efficiency, Climate Change Risks to Coastal Buildings and Infrastructure: A Supplement to the First Pass National Assessment found that under a high end scenario (1.1m sea level rise by 2100), greater than $226 billion in commercial, industrial, road and rail, and residential assets are potentially exposed to inundation and erosion hazards. It should be noted that for the purposes the national risk assessment, a sea level rise of 1.1 metres was selected based upon the plausible range of sea level rise values from research published after the Intergovernmental Panel on Climate Change’s fourth assessment report.

The NSW Climate Impact Profile (June 2010), released by the Department of Environment, Climate Change and Water, expects that for the Sydney region, increases in coastal inundation and erosion are considered to be a virtual certainty, causing erodible coastline to recede, typically in the range of 20-40m by 2050 and 45-90m by 2100; although shoreline retreat is expected to be higher in estuaries and beaches with lower gradients. Localised factors such as rainfall patterns, storm intensities and frequencies, river flows, and wind and wave action will have an impact upon the intensity of impacts experienced.

Council’s Climate Change Adaptation Strategic Plan (April 2009) notes that Hornsby’s exposure to sea level rise is largely constrained to the Wisemans Ferry, Laughtondale, Singleton’s Mill, Canoelands, and the Brooklyn and Dangar Island areas on the Hawkesbury River. The Plan also identified that a relatively short distance of road (1.7km) that is critical in providing access to the town centre of Brooklyn and the Hawkesbury River Railway Station is located in a high vulnerability area.

More recent ‘bathtub’ modelling has identified approximately 53 Council assets that would be potentially impacted with a sea level rise of 40cm, and 77 Council assets with a sea level rise of 90cm. Identified assets include a range of parks, reserves and bushland, along with a number of wharves. No major maintenance works are planned for Council’s wharves within the next 10 years, however when the next major maintenance cycle commences it would be appropriate to consider the current science regarding sea level rise.

Approximately 20% of endangered ecological communities of state significance are also located in highly vulnerable areas.

CONCLUSION

Recent studies conducted by Professor Ross Garnaut and the Productivity Commission on behalf of the Federal Government found that market based approaches or emissions trading schemes were relatively cost effective in addressing carbon pollution.

The Federal Government subsequently announced its intention to introduce a fixed carbon price of $23 per tonne, applicable to the top 500 polluters, effective on 1 July 2012. The fixed price will transition to a market based mechanism three years later, on 1 July 2015.

It is projected that the introduction of a carbon price will raise Council’s energy and waste operating costs by approximately $275,000 annually. Taking action to improve Council’s energy efficiency would help to limit the financial impact of a carbon price in an ongoing way.

Whilst, a carbon price will impact upon Council’s budget, there is also a likely cost to Council in the absence of effective measures to limit climate change. These costs are not able to be presently modelled, however they have the capacity to be significant as they relate to issues such as how we manage, upgrade and protect our assets from the impacts of climate change, including increased rainfall, sea level rise and increased risk of bushfire.

BUDGET

The introduction of a carbon price is likely to increase Council’s energy and waste operating costs by approximately $275,000. Additional costs in procuring goods and services are also anticipated although they are unable to be modelled at this time. If the budgetary impacts are realised and cannot be fully offset, Council’s ability to fund its operations will be affected.

POLICY

There are no policy implications as a result of this report.

CONSULTATION

No consultation was required to complete 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.

RESPONSIBLE OFFICER

The responsible officer is Adriana Genova, Sustainability Officer, telephone 9847 6572, between 9.30am and 2.30pm, Wednesday to Friday.

RECOMMENDATION

THAT Council receive and note the contents of Executive Managers Report No. EN29/11.

Robert Stephens

Executive Manager

Environment Division

Attachments:

There are no attachments for this report.

File Reference: F2011/00839

Document Number: D01712353

Executive Manager's Report No. EN35/11

Environment Division

Date of Meeting: 24/08/2011

15 APPLICATION TO REVOKE DANGEROUS DOG ORDER

EXECUTIVE SUMMARY

On 13 October 2009, following three separate attacks where the dog known as Choc had attacked and killed a cat, an authorised officer of Council declared Choc to be dangerous.

A dangerous dog order imposes strict control requirement upon the owner of a dangerous dog including the requirement that the dog be kept in a prescribed enclosure and whenever outside of the enclosure be kept on a lead and muzzled.

On 16 July 2011, whilst the dangerous dog control requirements were in force, Choc escaped the property and attacked and killed another cat. Council officers seized and impounded Choc.

On 25 July 2011, Council received an application on behalf of the owner to revoke the dangerous dog order. The application was supported by two behavioural assessment reports, both concluding that Choc still presents a risk to smaller animals such as cats and rabbits.

In the interest of public safety and health, and having regard to Choc’s demonstrated history of roaming, attacking and killing cats; his owner’s ongoing non-compliance with the dangerous dog control requirements; and the behavioural assessment reports concluding that Choc still presents a risk to smaller animals, this report recommends that Council refuse to revoke the dangerous dog order.

PURPOSE/OBJECTIVE

The purpose of this report is to provide Council with the information required to consider an application made on behalf of the registered owner of Choc, to revoke the dangerous dog declaration presently in force in respect of Choc.

DISCUSSION

Following separate attacks on 29 and 30 September 2009 resulting in cats being killed Council issued on 1 October 2009 the owner with notice of its intention to declare Choc to be dangerous. Details of the dog are presented below.

Breed: American Staffordshire Terrier

Sex: De-sexed Male

Name: Choc

Microchip: 943094330028805

The Companion Animals Act 1998 states that a dog is dangerous if it:

(a) has, without provocation, attacked or killed a person or animal (other than vermin), or

(b) has, without provocation, repeatedly threatened to attack or repeatedly chased a person or animal (other than vermin), or

(c) has displayed unreasonable aggression towards a person or animal (other than vermin), or

(d) is kept or used for the purposes of hunting.

A notice of intention to declare a dog dangerous provides the owner with seven days in which to formally object to the proposed declaration. Council is bound to consider any objections before making a decision as to whether to proceed and make a declaration. No objections were made by the owner regarding Council’s notice of intention to declare the dog dangerous.

Whilst the notice of intention is current, a number of obligations are imposed upon the owner. These obligations include requirements that the dog must be restrained in such a way that it cannot attack or chase anyone lawfully at the property; and that when the dog is away is away from its home that must be kept on a lead and muzzled.

On 12 October 2009, the dog Choc chased, attacked and killed another cat. The attack was witnessed by the owner of the cat who kept the dog in sight until the Police arrived and seized the dog. The Police then contacted Council who took control of the dog and impounded it.

On 13 October 2009, following this third attack Council proceeded to declare the dog dangerous.

A dangerous dog declaration is designed to protect the community and imposes a number of strict control requirements on the owner of the dog as follows:

· The dog must be de-sexed within 28 days (if not already de-sexed);

· The dog must not at any time be in the sole charge of a person under 18 years of age;

· The dog must be kept in a prescribed enclosure that has been certified by Council;

· Approved ‘Dangerous Dog’ signs must be displayed and be clearly visible at the boundaries of the property;

· A prescribed, distinctive collar must be worn by the dog at all times; and

· Whenever the dog is outside of the prescribed enclosure it must be kept on a lead and muzzled.

On 16 July 2011 whilst the dangerous dog order was in force, Council was called to attend another attack where Choc had attacked and killed a cat. The owner of the cat was present at the time of the attack and had to hose Choc to force him to release the cat which subsequently died of its injuries. The owner of the cat seized Choc and held him until Council’s Animal Control Officer arrived and impounded Choc. Choc is currently being held at Council’s pound.

Similar to the previous incidents this attack also occurred away from Choc’s registered home address.

Request to revoke the dangerous dog order

Section 39 of the Companion Animals Act 1998 provides that:

(1) The owner of a dog that has been declared dangerous under this Division can apply to the council of the area in which the dog is ordinarily kept (whether or not it is the council whose authorised officer made the declaration) for the declaration to be revoked.

(1A) An application under subsection (1) cannot be made until after the period of 12 months following the date on which the dog was declared to be dangerous.

(2) The council to which the application is made can revoke the declaration but only if satisfied that it is appropriate to do so.

(3) The council must, as soon as practicable, give notice to the owner of the dog that the declaration has been revoked or that the council has refused to revoke the declaration.

Guidelines issued by the Division of Local Government to assist councils in exercising their functions under the Companion Animals Act 1998 indicate that a dangerous dog declaration can only be revoked by a resolution of Council.

On 25 July 2011, Council received a written request from a Solicitor Chris Adamson (Attachment 1), acting on behalf of Choc’s owner to revoke the dangerous dog order. In the application Mr Adamson states as follows:

“I am instructed that ‘Choco’ was and is at all times a friendly unaggressive dog and that it must have been apparent to the HSC that he should not have been declared a dangerous dog.”

Mr Adamson has provided Council with two behavioural assessments of Choc in support of the request, one from a veterinarian (Attachment 2) and the other from an animal training consultant (Attachment 3).

The Division of Local Government guidelines provide advice to councils regarding the types of issues that should be considered when assessing an application to revoke a dangerous dog declaration, including:

The circumstances under which the dangerous dog order was issued

The original dangerous dog order was issued following three separate, unprovoked attacks that each resulted in a cat’s death. All of the attacks occurred away from the property where Choc is ordinarily kept, and the owner or another person responsible for Choc was not present. In other words, Choc was roaming at the time.

The dog’s current circumstances and behaviour in relation to the original order, including any behaviour modification training that may have been undertaken

Choc is currently being held in Council’s pound as a result of an attack that occurred on 16 July 2011 where Choc attacked and killed a cat. This attack occurred away from Choc’s property and whilst he was roaming. Importantly in this case, the dangerous dog order was in force including the requirements that Choc is kept in a prescribed enclosure and, when outside of the enclosure must be kept on a lead and muzzled. None of these requirements had been complied with at the time of the attack.

A compliance inspection of the property where Choc is ordinarily kept was conducted by Council officers on 10 August 2011. The inspection revealed that the enclosure on the property does not comply with the prescribed requirements under the Companion Animals Regulation, and that the fencing to the yard is presently insufficient to prevent a dog from escaping.

For the purposes of the application to revoke the dangerous dog order, the owner has not advised Council or provided evidence that Choc has undertaken any behaviour modification training.

Any behavioural assessment obtained by the owner from a licensed vet, animal behaviour specialist or other qualified professional.

Council has been provided with two separate behavioural assessments of Choc in support of the request to revoke the dangerous dog declaration.

Both assessments indicate that Choc is not aggressive towards people or other dogs but that Choc has an issue with smaller animals - “Like many dogs he is interested in cats and rabbits and exhibits prey drive towards these species” and “there was a clear interest in smaller animals such as rats, rabbits and guinea pigs”.

CONCLUSION

Having regard to:

1. Choc’s demonstrated history of roaming, attacking and killing cats that led to Council imposing a dangerous dog order;

2. The owner’s continued non-compliance with the dangerous control requirements;

3. The most recent attack resulting in yet another cat death;

4. The behavioural assessment reports confirming that Choc exhibits a prey drive towards small animals such as cats and rabbits; and

5. Council’s obligations to act in the public interest and for the safety of the community

it is recommended that Council refuse the request to revoke the dangerous dog order currently imposed upon Choc.

Upon notification of Council’s refusal to revoke the dangerous dog order, the owner is provided with 28 days in which to appeal to the Local Court.

BUDGET

Choc has been held at Council’s Pound since 16 July 2011 and is incurring daily maintenance charges of $46 per day. In the event of Choc’s release these charges will be borne by the owner.

POLICY

There are no policy implications as a result of this report.

CONSULTATION

No consultation was required to complete this report.

TRIPLE BOTTOM LINE SUMMARY

As this report provides Council with information and does not pose any policy implications for Council requiring a sustainability assessment, No Triple Bottom Line considerations apply.

RESPONSIBLE OFFICER

The responsible officer for this report is Sue Moyes, Sustainable Health Co-ordinator, telephone 9847 6816.

RECOMMENDATION

THAT Council:

1. Refuse the request to revoke the dangerous dog order imposed on Choc on 13 October 2009; and

2. Give notice to the owner that Council has refused to revoke the dangerous dog order.

Robert Stephens

Executive Manager

Environment Division

Attachments:

1.View	Letter from Chris Adamson seeking to have the dangerous dog declaration imposed upon the dog know as Choc revoked.
2.View	Christine Cole behavioural assessment of Choc.
3.View	Stephen Austin behavioural assessment of Choc

File Reference: F2006/00179-04

Document Number: D01731550

Executive Manager's Report No. EN36/11

Environment Division

Date of Meeting: 24/08/2011

16 NSROC TENDER T9/2011-SUPPLY & DELIVERY, SUPPLY, DELIVERY & LAY, PREPARE SURFACE, DELIVERY & LAY CULTIVATED TURF.

EXECUTIVE SUMMARY

Council was previously under contract (contract expired in May 2011) with a panel of suppliers for the Supply and Delivery and/or Supply, Delivery and Laying of Cultivated Turf.

Due to the expiry of the contract, NSROC Tender No 9/2011 was issued earlier this year with a closing date of 25^th May 2011. Due to the various type of turf required it is proposed that a panel of preferred suppliers be identified under a new contract to provide any or all of the turf varieties at best value to Council. It is also proposed that the new contract be for a period of two years, with a one year option to extend based on satisfactory performance.

A total of 7 responses were received in respect of the Tender. One tender was deemed as non compliant as an administrator/manager has been appointed to their business. The remaining six conforming Tender responses were subsequently evaluated against a number of relevant criteria. Based on the results of that evaluation process, the evaluation team determined a shortlist of suppliers.

Appropriate reference checks, site visits and interviews with staff were subsequently carried out to confirm that the shortlisted suppliers would be able to meet Council’s requirements. As a consequence, the evaluation team has recommended that the following companies be appointed to a panel of preferred suppliers for Supply and Delivery, Supply, Delivery and Laying and Preparation, Supply and Delivery of Cultivated Turf.

· Grechs Turf Supplies

· Hi Quality Turf

· Qualturf Pty Ltd (NSW)

· Millers Turf Supplies Pty Ltd

PURPOSE/OBJECTIVE

The purpose of this Report is to provide appropriate information to Council as to the tender evaluation and selection methods applied to NSROC Tender No 9/11 and to make a recommendation for the acceptance of a preferred panel of suppliers.

DISCUSSION

The previous NSROC contract for Turf expired in May 2011. This contract was with a panel of suppliers for supply, delivery and supply, delivery and laying of cultivated turf. It is noted that expenditure for turf during the 2010/2011 financial year was approximately $232,000.

Due to the expiry of the contract, NSROC Tender No T9/2011 was issued earlier this year with a closing date of 25^th May 2011. The objectives of the Tender were to investigate opportunities to reduce costs and ensure consistency of supply and quality of cultivated turf. Tenders were invited for all of the requirements specified in the Tender documentation.

Because of the differing requirements of turf varieties across Council, it is proposed that a panel of preferred suppliers be identified under a new contract to provide any or all of the turf varieties at best value to Council. It is also proposed that the new contract be for a period of two years, with a one year option to extend based on satisfactory performance.

A total of 7 responses were received in respect of the Tender from the companies below:

· Evergreen Turf Pty Ltd

· Grechs Turf Supplies

· Hi Quality Turf

· Millers Turf Supplies Pty Ltd

· M.Collins & Sons (Contractors) Pty Limited

· Qualturf Pty Ltd

· Windsor Turf Pty Ltd

All Tender responses were evaluated against the following criteria:

· Costs

· Prices for items outside standard list

· Discount structure

· Delivery dockets and methods

· Environmental products and disposal

· Environmental policy and environmental management system

· Sustainable alternatives

· Labour

· Supply chain

· Accreditation

· Superior service

· Problem solving

· Understanding our requirements and suppliers requirements

· Contingency plans

· Company profile

· References

The responses were scored by each member of the evaluation team against the above criteria. Those scores were in the range 0 to 5, with 0 being an unsatisfactory response (i.e. fails to meet the criteria) and 5 relating to an excellent response (i.e. fully satisfies the criteria). Scores were then averaged and multiplied by the “weight” of the criteria to determine initial scores.

Based on the results of the evaluation process, the evaluation team determined the following shortlist of suppliers.

· Grechs Turf Supplies

· Hi Quality Turf

· Qualturf Pty Ltd (NSW)

· Millers Turf Supplies Pty Ltd

Reference checks were subsequently conducted on all suppliers. No adverse comments were received as a result of the reference checks.

Site visits and interviews with staff were also conducted on 26^th July 2011. Those visits and interviews confirmed that the suppliers would be able to meet our requirements.

As a consequence of all of the above, the evaluation team has recommended that the following companies be appointed to a panel of preferred suppliers for the Supply and Delivery, Supply, Delivery and Laying and/or Prepare Surface, Supply and Delivery of Cultivated Turf .

· Grechs Turf Supplies

· Hi Quality Turf

· Qualturf Pty Ltd (NSW)

· Millers Turf Supplies Pty Ltd

It is noted that Procurement staff and members of the evaluation team will review the performance of the recommended suppliers and their ongoing commitment to the supply agreement.

Full details of the tender evaluation process are detailed in the attached confidential Memorandum and are available on the relevant TRIM file. These details include some commercial in confidence information supplied by the tenderers.

BUDGET

The Environment and Works Divisions within Council have allocated budgets for their requirements for cultivated turf.

POLICY

The tender process was conducted in accordance with Council’s Tendering policy.

CONSULTATION

The Tender evaluation team consisted of:

· Geoff Witt - Co-ordinator, Parks Service Unit

· Andrew Flick - Horticulturalist

· Robyn McKenzie - Procurement Manager

TRIPLE BOTTOM LINE SUMMARY

Working with our community

The community was informed of the tender through advertising in the Sydney Morning Herald and the Advocate newspapers.

Conserving our natural environment

As part of the evaluation criteria, tenderers' were requested to provide information on their organisational commitment to Environmental Management and Sustainability. The tenderers’ quality assurance, OH&S and environmental management systems were also taken into consideration in the evaluation of tenders for the purpose of sustaining our natural environment

Contributing to community development through sustainable facilities and services

The successful tenderers contribute to sustainable facilities and services where it is appropriate for their industry.

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

Our community’s vision will be fulfilled by the successful contractors supporting Councils programmes to maintain Parks and Oval with quality turf.

Maintaining sound corporate and financial management

The NSROC tender was conducted and evaluated identifying best value for Council by contracting to the successful suppliers.

RESPONSIBLE OFFICER

For further information in respect of this Report, please contact Council’s Procurement Manager - Robyn McKenzie on 9847 6642 or Mr Geoff Witt on 9847 4811 Monday to Friday between 8.30 am and 5.00 pm.

RECOMMENDATION

THAT Council accept the tenders submitted by:

· Grechs Turf Pty Ltd

· Hi Quality Turf

· Qualturf Pty Ltd (NSW)

· Millers Turf Supplies Pty Ltd



for NSROC Tender No. T9/2011 Supply and Delivery, Supply, Delivery and Lay and/or Prepare Surface, Delivery and Lay Cultivated Turf.

Robert Stephens

Executive Manager

Environment Division

Attachments:

Confidential Memo - 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: F2011/00082

Document Number: D01736908

Executive Manager's Report No. WK42/11

Works Division

Date of Meeting: 24/08/2011

18 WORKS BUILDING SERVICES - GRAFFITI AND VANDALISM JUNE 2011 QUARTERLY REPORT

EXECUTIVE SUMMARY

The Engineering Services Branch has the responsibility to ensure that all of Council’s buildings are maintained in a safe and functional condition and conforming to legislative requirements.

This report provides Councillors with progress information relating to the costs of graffiti and vandalism associated with the maintenance of Council’s buildings.

PURPOSE/OBJECTIVE

The purpose of this report is to provide information to Council on graffiti removal and vandalism repair to Council’s buildings incurred in the provision of the asset maintenance service.

DISCUSSION

The Building Services Team forms part of the Engineering Services Branch of the Works Division and operates from Council’s Thornleigh Depot.

The Building Services Team is responsible for providing an asset maintenance service that ensures all of Council’s buildings are maintained in a safe and functional condition and conforming to relevant statutory requirements. The Team provides maintenance and construction services to asset building users in meeting the objectives of their various activities.

Building Maintenance is provided under the 5431 Responsibility Centre and consists of proactive and reactive maintenance. Proactive maintenance is programmed work based on the required level of service or renovation cycle agreed with the relevant Responsibility Centre Manager. Reactive maintenance includes graffiti removal, vandalism repairs and faulty asset components.

Vandalism to Council’s buildings typically costs Council $60,000 per year and occurs to amenities blocks, public toilets, bus shelters and community centres in the form of damage to windows, doors and locks. Graffiti typically costs $100,000 per year.

A graffiti removal service is provided for Council’s buildings and aims to remove illegal graffiti within 12 to 48 hours depending on the offensiveness of the vandalism.

Rapid removal requires systematic monitoring and cleaning of sites or facilities affected by graffiti and graffiti recurrence.

Rapid removal discourages graffiti vandalism because:

· It removes the vandal’s thrill associated with seeing their name or work on public display.

· It demonstrates that a site is being monitored and cleaned there is an increased risk of detection.

· Vandals will continue to return to and damage a site if it is ignored.

Currently two methods of graffiti removal are used on Council properties:

· Painting out graffiti on painted surfaces.

· On other surfaces, removing graffiti with a high pressure water blaster and heat gun using specialist graffiti removal products.

TYPE COST

July 2010 – June 2011

Graffiti $72,421

Vandalism $40,626

_________

TOTAL $113,047

BUDGET

Costs of vandalism and graffiti are included in Council’s budget.

POLICY

There are no policy implications associated with this report.

CONSULTATION

Consultation regarding vandalism and graffiti is carried out with relevant Responsibility Centre Managers.

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.

RESPONSIBLE OFFICER

The responsible officer for preparation of this report is the Engineering Services Manager, Peter Powell, on telephone 9847 4803.

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. WK42/11 be received and noted.

Maxwell Woodward

Executive Manager

Works Division

Attachments:

There are no attachments for this report.

File Reference: M2011/00728

Document Number: D01708418

Executive Manager's Report No. WK45/11

Works Division

Date of Meeting: 24/08/2011

21 WORKS PROGRESS REPORT - JUNE 2011 QUARTERLY REPORT - ASSETS BRANCH

EXECUTIVE SUMMARY

This Assets Branch Works Progress Report for the June 2011 Quarter provides information to Council regarding the completion of the adopted 2010/11 Assets Branch Programs relating to: works maintenance; road pavement and stormwater management in the Shire; and the implementation of asset management systems for sealed road pavement and drainage.

Key Performance Indicators (KPIs) for the various maintenance activities are included in the report and the completion status of the various programs is presented in the Gantt charts attached to the report. The completion of the various activities is generally in accordance with the adopted programs for the 2010/11 Service Plan.

OBJECTIVE

This report provides information to Council on the completion of the adopted Assets Branch Programs relating to works maintenance, road pavement and stormwater management in the Shire, and the implementation of asset management systems for pavement and drainage.

The report covers work carried out by the Assets Branch of the Works Division for the fourth and final quarter of the 2010/11 Service Plan ending 30 June 2011. A summary of the works carried out for the whole year as well as corresponding information for the previous year (2009/10) is also provided.

WORKS MAINTENANCE

Works maintenance is divided into two districts (Northern District and Southern District) and includes:

* Road shoulder and Unsealed Road

* Drainage

* Footpath and Footway

* Roadside Furniture

* Foreshore Facilities

Maintenance works of a routine nature are mainly carried out by Council crews with either Council-owned plant or externally hired plant and occasionally by contractors. Such works include: road shoulder and unsealed road regrading; stormwater drainage system checking and clearing of obstruction/repair of drainage structure; inspection of footpaths and repair/replacement of isolated sections of paths; inspection and repair/replacement of road signs and furniture; and inspection and minor repairs of foreshore facilities.

Upgrading works which are readily defined are generally carried out by Contractors. Such works include road shoulder upgrading, footpath reconstruction, and major repair/replacement of foreshore facilities. Other upgrading works such as construction of drainage pits and pipelines, lining of walls and floor of drainage channels, construction of short lengths of kerb and gutter are generally carried out by Council crews.

Civil assets maintained by the Works Division include:

* 613km of sealed roads and footways

* 376km of unsealed road shoulders

* 36km of unsealed roads

* 413km of footpaths

* 18,331 drainage pits

* 390km of drainage pipelines and channels

* 6 public wharves

* 5 pontoons

* 1 tidal baths

* 3 boat ramps

* 1 loading dock

* 8 sections - 815m of seawall

Works maintenance is undertaken in accordance with programmes adopted by Council and from work requests received. Progress of programmed activities for the Northern and Southern District Works Maintenance Programs are given in Gantt Charts A and B, respectively.

Road Shoulder and Unsealed Road

Road Shoulder Maintenance is carried out to ensure that unsealed road shoulders on roads with only a central sealed pavement are safe and serviceable. Activities carried out include:

* On demand grass cutting and repair of damaged sections of grassed shoulders and swales;

* Programmed periodic regrading and repair of worn shoulders;

* Programmed upgrading of shoulders to reduce/eliminate high frequency maintenance.

Unsealed Road Maintenance is carried out to ensure that unsealed roads are safe and serviceable. Activities carried out include:

* Programmed routine repair/ and periodic re-sheeting of unsealed roads;

* Programmed stabilisation/sealing of sections of unsealed roads to minimise/ eliminate dust problem;

* On demand repair of unsealed roads especially after heavy rainfall.

The Key Performance Indicator (KPI), stated as the average maintenance cost per km per year on unsealed roads, is $7,100. The actual performance for 2010/11 was $6,900 (2009/10 was $7,260). The service level, stated as the number of complaints per 100km of unsealed roads, of <30 (less than 30) was 25 for 2010/11 (19 for 2009/10).

This activity relates to the Strategic Theme, Contributing to community development through sustainable facilities and services.

Drainage

Drainage maintenance is carried out to ensure that Council's drainage systems are effective in providing safety and enhance amenity to the community. Drainage maintenance comprises routine maintenance and minor upgrading of drainage structures.

Routine Maintenance comprises: programmed routine stormwater drainage system checking and clearing by Council crews on an area basis; and on demand drainage structure repair and lining of the side and floor of open drainage channels.

The KPI for drainage maintenance, stated as the average maintenance cost per km per year of urban drainage maintenance, is $3,500. The actual performance for 2010/11 was $2,950 (2009/10 was $3,020). Less maintenance than budgeted was undertaken due to the relatively lower rainfall intensity during the year.

Minor Upgrading comprises programmed upgrading of drainage pits, construction of short sections of kerb and gutter, pipelines and new pits, and lining of walls and floors of open drainage channels.

Footpath and Footway

Footpath and footway maintenance is carried out to ensure that Council's footpath system provides safe and convenient access. Footpath maintenance comprises routine maintenance, footpath reconstruction and access ramp construction. Footway maintenance comprises programmed routine grass cutting, and programmed on demand reshaping of footway and repair of footway.

Routine Footpath Maintenance comprises programmed routine inspection and repair of isolated section/s of footpath, and programmed re-sheeting of segments of footpaths with asphaltic concrete to eliminate minor trip edges or concrete grinding to address moderate trip edges. The 413km footpath network is inspected at least once a year by Council crews or a contractor. During the June quarter, repairs to footpaths totalled 173 sq. metres and grinding of footpath trip edges totalled 1,702 linear metres. The total area of footpath repairs for 2010/11 was 995 sq metres (2009/10 was 2,049 sq metres) and grinding of footpath trip edges were 3,514 linear metres (2009/10 was 7,124 linear metres).

The KPI for footpath maintenance, stated as the average maintenance cost per km per year, is $2,400. The performance for 2010/11 was $2,120 (2009/10 was $2,800). The Service Level stated as the number of reported trip and fall incidents on footpaths per 100km of <10 (less than 10) per year was 11 for 2010/11 (11 for 2009/10). Less maintenance than budgeted was undertaken in response to residents’ requests due to the more cost effective footpath grinding that was undertaken during the year as opposed to the replacement of footpath panels.

Footpath Reconstruction comprises programmed reconstruction by contract for segments of various types of footpaths ranging from concrete slabs to asphalt, brick, tile and heritage slabs. The Service Level for this program is 2.0km of footpath reconstruction. Four sections totalling 0.83km were undertaken during the June quarter. Four (4) sections totalling 0.83km were reconstructed/upgraded for 2010/11 (19 sections totalling 2.10km for 2009/10). Generally, there were very few footpaths in Condition 4 that required reconstruction and more attention was focused on footpath grinding to remove trip edges.

This activity relates to the Strategic Theme, Contributing to community development through sustainable facilities and services.

Roadside Furniture

Roadside furniture maintenance is carried out to ensure traffic safety and convenient movement of traffic. Roadside furniture maintenance comprises routine maintenance of street name and traffic signs, guide posts and safety fences.

Street Name and Traffic Signs routine maintenance comprises programmed installation of new advisory and directional signs, and on demand repair/replacement of street name and traffic signs. During the June quarter, 447 signs were maintained and no new signs were erected. The total for 2010/11 was 1,470 signs maintained and 322 new signs erected (2009/10 was 1,352 signs maintained and 254 new signs erected).

Guide Post and Safety Fences routine maintenance comprises programmed installation of new guide posts and safety fences and on demand repair/replacement of guide posts and safety fences. During the June quarter: 98 guide posts and 338 metres of safety fences were maintained. No new safety fences and guide posts were erected. The total for 2010/11 was: 1,470 signs maintained and 322 new signs erected (2009/10 was 1,352 signs maintained and 254 new signs erected); 523 guide posts were maintained and 5 new guide posts were erected (2009/10 was 612 guide posts maintained and no new guide posts erected); 3,558 metres of safety fences were maintained and no new safety fences were erected (2009/10 was 6,913 metres of safety fences maintained and no new safety fences erected).

This activity relates to the Strategic Theme, Contributing to community development through sustainable facilities and services.

Foreshore Facilities

Foreshore facilities maintenance is carried out to ensure that public facilities are safe and serviceable. Foreshore facilities maintenance comprises routine maintenance and periodic upgrading/replacement of public wharves, pontoons, boat ramps, tidal baths, loading dock and seawalls.

Routine Maintenance comprises programmed routine inspection and minor repairs of public wharves, pontoons, boat ramps and tidal baths by Council crews and specialist contractors, and on demand minor repair works. During the June quarter, all 14 facilities have been inspected. Step, boat ramp and fish cleaning table pressure cleaning were also carried out at Parsley Bay, Berowra Waters and Kangaroo Point during the June quarter.

Upgrading/Replacement normally comprises programmed major repairs/upgrading on public wharves, periodic replacement of pontoons and periodic reconstruction of sea walls by contract. Repairs to the Kangaroo Point Sea Wall and refurbishment of the McKell Park Tidal Pool walkway were undertaken during the June quarter.

This activity relates to the Strategic Theme, Contributing to community development through sustainable facilities and services.

PAVEMENT MANAGEMENT

Pavement Management is carried out Shire wide for the 613km sealed road network consisting of 1,521 roads. Pavement maintenance activities include:

* Road Resurfacing

* Preparation for Resurfacing

* Pothole Repairs

* Road Restorations, Hydrants and Car Park Maintenance

Progress of programmed activities for the Pavement Works Maintenance Program is given in Gantt Chart C.

There are two key performance indicators in the Principal Activity Service Plans for sealed roads:

* The KPI for the sealed road network, stated as the percentage of road network rated in "Good/Very Poor" condition, are >68/<2 (greater than 68% / less than 2%). The performance for 2010/11 was 82.3% / 1.4% (2009/10 was 82.5% / 1.4%). These percentages have remained relatively constant due to the Roads to Recovery and RTA REPAIR Program Funding as well as Council’s Sealing of Unsealed Roads Program.

* The KPI for sealed roads, stated as the average maintenance cost per km, is $8,000 per year. The performance for 2010/11 was $8,020 (2009/10 was $8,000). This performance was achieved with the additional funding from the Federal and State Governments.

Road Resurfacing

Road resurfacing comprises programmed Reclamite surface treatment, and asphaltic concrete (AC) and flush seal resurfacing by contract. The programmed resurfacing is 135 roads totalling 221,510 square metres. The performance for 2010/11, shown within brackets, was 109 roads totalling 207,031 m2 (2009/10 was 98 roads totalling 184,688m2) and was as follows:

* Asphaltic Concrete resurfacing 56 roads - 85,350 m2 (36 roads - 78,224 m2)

* Flush Seal resurfacing 19 roads - 47,380 m2 (10 roads - 32,265 m2)

* Reclamite surface treatment 60 roads - 88,780 m2 (63 roads - 96,542 m2)

A list of roads proposed for resurfacing is identified by Council's Pavement Management System based on funding allocation and appropriate treatment options selected. The roads selected for inclusion in the program are then made following inspection by the Pavements Engineer. Approximately 5% of the road network is resurfaced or treated per year.

Preparation for Resurfacing

Preparation for resurfacing comprises programmed pavement repair by contract and crack sealing by Council crews. Pavement repair involves heavy patching of pavement using AC and pavement stabilisation with cement. On demand pavement repair involving heavy patching of pavement with AC is also carried out by contract as well as by Council crews depending on availability and extent of work required.

The programmed preparation works was 37 roads totalling 16,190 m2. The performance for 2010/11, shown within brackets, was 40 roads totalling 26,221 m2 (2009/10 was 31 roads totalling 10,582m2) and was as follows:

* Heavy Patching with AC 25 roads - 1,660 m2 (36 roads – 10,355 m2)

* Pavement Stab. with Cement 12 roads - 14,530 m2 ( 4 roads – 15,866 m2)

Pothole Repairs

Pothole repair comprises programmed inspection and filling of potholes with AC on 12 patrol area basis by a Council crew with a Flocon truck. During the June quarter, 541 potholes were repaired in 147 roads and consumed approximately 30.6 tonnes of AC.

The total pothole repairs for 2010/11 were 2,168 potholes repaired on 582 roads and consume approximately 103.4 tonnes of asphaltic concrete (2009/10 were 3,200 potholes repaired on 543 roads and 157.5 tonnes of asphaltic concrete).

Road Restorations, Hydrants and Car Park Maintenance

This activity comprises programmed restoration of road openings by public utility authorities and plumbers in asphaltic concrete, rising of hydrants, and carpark maintenance involving some pavement and pothole repair by Council crew, line marking and resurfacing by contractors. During the June quarter, 485 square metres of restorations were carried out 65 roads and 2 service adjustments were made. The total restorations carried out for 2010/11 was 192 roads totalling 1,671 m2 and 31 service adjustments on 7 roads (2009/10, 102 roads totalling 2,767 m2 and 45 service adjustments on 9 roads).

The activities above relate to the Strategic Themes, Contributing to community development through sustainable facilities and maintaining sound corporate and financial management.

STORMWATER MANAGEMENT

Stormwater management major activities include:

* General review of all completed Stormwater Catchment Management Plans (SCMPs).

* Project management of minor stormwater drainage projects.

* Review of Council's Urban Runoff Management Code.

* Development of conceptual designs for Stormwater Drainage Improvement Programs.

* Development of Floodplain Risk Management Plan.

The Service Level, stated as the cumulative percentage of 1,084 known properties subject to stormwater inundation benefiting from Improvement programme is 52.1%.

Progress of programmed activities for Stormwater Management is generally in accordance with the adopted programme given in Gantt Chart D. The Consultant’s final flood maps based on the Broadscale Overland Flow Study for the urban areas of the Shire was received in September 2009. This study is part of the Floodplain Risk Management Plan Development and will culminate with the preparation of Flood Planning Maps for the Shire. The second Floodplain Risk Management Committee (FRMC) meeting was held on 8 August 2010 and a workshop to brief councillors was held on 25 August 2010. The Hornsby Overland Flow Study Report and draft Flood Planning Maps were placed on public exhibition from
22 November 2010 with a closing date of 24 January 2011. The closing date was subsequently extended to 28 February 2011. There were 596 submissions for the public exhibition.

The third meeting of the FRMC was held on 5 May 2011 to discuss the results of the sensitivity analysis that were undertaken. This meeting was attended by three councillors in addition to the two councillors who sit on the Committee. Council also endorsed the process for considering submissions received at its Ordinary Meeting held on 18 May 2011. An Informal Workshop Briefing was also held for the Mayor and councillors on 8 June 2011 regarding the Stormwater Drainage Priority Programmes.

As at 30 June 2011, Tasks 1.1 to 1.3 have been completed and Task 1.4 being the preliminary mapping for the remaining 7 zonal models was also completed on 30 June 2011. Preliminary flood maps have been produced for the agreed criteria, i.e. 5-Year ARI without pipes and flow depth >150mm; being the surrogate for the 100 ARI with pipes partly functional and flow depth >150mm.

Major Drainage improvement works was not be undertaken in 2010/11 as the allocated funding has been placed in a restricted asset account towards the Hornsby CBD Drainage Project Stage 1. Construction will commence only when sufficient funds have been accumulated.

This activity relates to the Strategic Themes Contributing to community development through sustainable facilities and services and Maintaining sound corporate and financial management.

ASSET MANAGEMENT SYSTEMS

Three asset management systems are currently being maintained/implemented:

* Pavement Management System (PMS)

* Drainage Asset Management System (DRAMS-PIPEPAK)

* Footpath Management System (FMS)

The progress of programmed activities for the implementation of asset management systems is generally in accordance with the adopted programme given in Gantt Chart E.

Pavement Management System (PMS)

The Pavement Management System (PMS) Implementation Program consists of the following programmed activities for PMS Model refinement:

* Investigation of pavement structure by staff from project investigations.

* Collection of road condition and road roughness data by contract for the third 20% of the network for the Fifth Sweep.

* Collection of subdivision road data using casual staff.

* Traffic Counts by contract for 21 "typical" roads for refinement of traffic volume data.

Other PMS development activities include: preparation of valuation for AAS27 requirements; update of feedback system for data updating; preparation of Grants Commission report, and development of PMS-GIS interface to enable graphical access to PMS data. Running of the optimisation model on the PMS in conjunction with the preparation of the 2011/12 Pavement Works Maintenance Program was undertaken in the June 2011 quarter. Road Fair Value determination for road assets was undertaken in June 2010.

This activity relates to the Strategic Theme, Maintaining sound corporate and financial management.

Drainage Asset Management System (DRAMS-PIPEPAK)

The Drainage Asset Management System (DRAMS-PIPEPAK) Implementation Program consists of the collection of stormwater drainage asset data in respect of the location and condition of the pits and pipes. The location of pits in Council's stormwater drainage system was undertaken using a global positioning system (GPS). The collection of the pit and pipe condition was undertaken by field inspection.

The DRAMS database has been converted to the updated version named PIPEPAK.

PIPEPAK implementation activities include: GPS and condition data audit, update of feedback system for data updating; development of PIPEPAK model; formatting PIPEPAK for AAS27 requirements; and development of PIPEPAK-GIS interface for graphical access to PIPEPAK data. Field surveys for GPS/condition data audit was undertaken during the June 2011 quarter. Fair Value determination for drainage assets was undertaken in June 2010.

This activity relates to the Strategic Theme, Maintaining sound corporate and financial management.

Footpath Management System (FMS)

The Footpath Management System (FMS) Implementation Program consists of the following programmed activities:

* Collection of footpath condition data for the whole network.

* Ongoing development of graphical access to FMS data.

* Formulation of the Annual Footpath Maintenance and Reconstruction Programs.

The collection of footpath condition and inventory data by a contractor was completed in the March 2011 quarter.

This activity relates to the Strategic Theme, Maintaining sound corporate and financial management.

BUDGET

There are no budget implications with the preparation of this report.

POLICY

There are no policy implications.

CONSULTATION

Consultation with the Environment and Planning Divisions was made in respect of Stormwater Management activities. Consultation with outside groups is not required with the other activities.

TRIPLE BOTTOM LINE SUMMARY

Triple Bottom Line (TBL) attempts to improve Council's decisions by being more accountable and transparent on social, environmental and economic factors. It does this by reporting upon Council's Strategic Theme.

A TBL assessment is not required for this progress report.

RESPONSIBLE OFFICER

The responsible officer is the Manager, Assets Branch, Mr Chon-Sin Chua, on telephone No. 9847 6677.

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. WK45/11 be received and the completion of the various activities in the 2010/11 Assets Branch Programmes be noted.

Maxwell Woodward

Executive Manager

Works Division

Attachments:

1.View	1. Gantt Chart A - 2010/11 Northern District Works Maintenance Programme, Progress as at 30 June 2011
2.View	2. Gantt Chart B - 2010/11 Southern District Works Maintenance Programme, Progress as at 30 June 2011
3.View	3. Gantt Chart C - 2010/11 Pavement Works Maintenance Programme, Progress as at 30 June 2011
4.View	4. Gantt Chart D - 2010/11 Stormwater Management Programme, Progress as at 30 June 2011
5.View	5. Gantt Chart E - 2010/11 Asset Management Systems Implementation Programme, Progress as at 30 June 2011

File Reference: F2004/05959-02

Document Number: D01712281

Executive Manager's Report No. WK46/11

Works Division

Date of Meeting: 24/08/2011

22 EDGEWORTH DAVID AVENUE. PROPOSED TRAFFIC ROAD SAFETY MEASURES.

EXECUTIVE SUMMARY

The intersection of Edgeworth David Avenue and Balmoral Road has a severe crash history. A proposed median treatment to restrict right turns at the intersection qualified for inclusion in the Federal Austlink program, which provides 100% funding, however following objections from local business operators, Council resolved not to proceed with the median treatment and instead to explore other options. The Local Traffic Committee (LTC) met on 1 June 2011 to consider a number of issues and developed 4 (four) recommendations. The Council LTC representative, Councillor Bruce Mills, requested that Recommendation 4, regarding the installation of sign posted “No Right Turn” restrictions, be referred to Council for a determination.

PURPOSE/OBJECTIVE

This report provides Council the opportunity to consider the Local Traffic Committee recommendation for Council to provide “No Right Turn” restrictions at the intersection of Edgeworth David Avenue and Balmoral Road.

DISCUSSION

Council at its meeting of 27 April 2011 resolved (via a Matter of Urgency MOU2/11) that:

1. Local Traffic Committee Item for proposed ‘No Right Turn’ signs not proceed in its current form.

2. A report be prepared for consideration by the Local Traffic Committee that proposes a solution that improves road safety and reduces the impacts on local businesses, by including the following:

a) Removal of the tree and relocation of the power pole on the northern side of the intersection which obscure visibility.

b) The left turn only on Balmoral Street be “painted only” to allow heavy vehicle movements.

c) The intersection to have ‘Do not queue across intersection’ marked at least 10 metres both sides of the intersection to allow for safer turning movements.

Following a second round of public consultation in May 2011, the Local Traffic Committee met at Hornsby Council Chambers on 1 June 2011 to consider the issues. A copy of the Local Traffic Committee Report and Minutes LTC 27/2011 is attached (Attachment 1). Results of the public consultation and matters considered by the Committee are detailed in that report. Representatives of the business operators also attended to address the Committee.

The Committee recommended that -

1. The tree on the north western corner be removed and the hedge trimmed back to Council’s road boundary. Unanimous.

2. The RTA be requested to investigate an extension of the 40 km/h School Zone in Edgeworth David Avenue from near Palmerston Road to west of Balmoral Road. Unanimous.

3. The RTA be requested to provide “It is illegal to queue across intersections” facility in Edgeworth David Avenue at Balmoral Road. Unanimous.

4. The full time ‘No Right Turn’ restriction proposal as shown on attached plans LTCCP 24/2011 be provided. (Not supported by Councillor Mills, the Member for Hornsby and the Member for Ku-ring-gai. The RTA representative presented a report on the crash data, prompting Council on the types of crashes and injury rates at this location. The RTA raised concerns regarding the previous proposal, which only included ‘No Right Turn’ restrictions from Edgeworth David Ave during the PM peak (3PM-7PM, Mon-Fri), as it only addressed 64% of these right turn crashes. The RTA representative requested the minutes record that while the RTA does not object to these recommendations, they are concerned that the original proposal, involving a physical median that addressed all right turn crashes, was not endorsed by Hornsby Council and Black Spot Funding was returned unspent.

Given the Roads and Traffic Authority (RTA) comments regarding the need to treat the adverse crash history in Edgeworth David Avenue, Council staff are investigating whether traffic control signals may be provided. The difficulty is that traffic signals on their own do not provide a sufficient cost benefit to qualify for inclusion in programs that are 100% funded, therefore other traffic management measures in the vicinity of this intersection may have to be included in the proposal. All new traffic signal installations and modifications to existing sites must be approved by the RTA. If the RTA will approve in principle traffic control signals at the intersection of Edgeworth David Avenue and Balmoral Road, a proposal will be referred to the LTC for a recommendation to develop a proposal suitable for submission to the 2012/2013 Austlink Program.

If such funding submission is unsuccessful (when prioritised according to benefit-cost ratio and assessed against other similar projects across the State), the project will have to await funding by the RTA, again assessed against similar criteria across the State. The only other alternative would be for Council to fund the work. This is likely to be of the order of $250,000 for traffic signals only. Funds have not been made available by Council for such purposes, as such works are considered to be the responsibility of the RTA.

CONCLUSION

While Council staff will continue to seek a solution to severe crash problems experienced on Edgeworth David Avenue, such solutions will be subject to further public consultation and acceptance by a funding agency. This may mean a solution will be some years in the future. Council is requested to consider the Local Traffic Committee recommendation to provide No Right Turn restrictions as shown on plans LTC CP 27/2011 (Attachment 2).

BUDGET

There are no budget implications if the recommendation is adopted. Tree removal and sign posting will be funded from existing Council and RTA budgets.

POLICY

There are no policy implications in this report.

CONSULTATION

The local business owners, the Roads and Traffic Authority Local Traffic Committee representative and Manager, Parks and Landscapes Team, were consulted in the preparation of this report.

TRIPLE BOTTOM LINE SUMMARY

Triple Bottom Line (TBL) 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 TBL assessment summary for managing crashes at the intersection of Edgeworth David Avenue and Balmoral Road is as follows:

1. Working with our community

· Local business operators and residents have been consulted twice regarding proposals to manage crashes at this intersection.

2. Conserving our natural environment

· The street tree to be removed has been disfigured by extensive pruning to clear powerlines and is not considered a good specimen.

3. Contributing to community development through sustainable facilities and services

· If left untreated crash blackspots are a significant financial drain on community development.

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

· Crash problem locations become worse as traffic volumes grow with population increase and the community expects a systematic approach to managing problem sites.

5. Supporting our diverse economy

· Financial savings resulting from crash reductions are passed back to the community.

6. Maintaining sound corporate and financial management

· Managing road safety risk is sound corporate and financial management.

7. Other Sustainability Considerations

· There are no adverse sustainability impacts that require consideration if the recommendation is adopted.

RESPONSIBLE OFFICER

This report was prepared by Council’s Manager Traffic and Road Safety, Lawrence Nagy, telephone 9847 6616.

RECOMMENDATION

Maxwell Woodward

Executive Manager

Works Division

Attachments:

1.View	Local Traffic Committee Report
2.View	No Right Turn Sign Plan

File Reference: F2004/09775

Document Number: D01721670

Executive Manager's Report No. WK48/11

Works Division

Date of Meeting: 24/08/2011

24 TENDER T9/2011: MINOR ASPHALT WORKS

EXECUTIVE SUMMARY

The proposed contract for ‘Minor Asphalt Works’ is required to service Council’s needs for the restoration of road pavement patches over utility services, reconstruction of road shoulders in asphalt and other minor works such as asphalt vehicular crossings and footpaths.

Council does not have the specialist personnel and equipment required for this work and therefore open tenders have recently been called in accordance with the Local Government Act. The proposed contract will be for 12 months duration with an option to extend the contract for a further 12 months period. Kizan Pty Ltd. trading as A & J Paving have been recommended for acceptance of this tender.

PURPOSE/OBJECTIVE

This report provides a recommendation for the acceptance of Tender No. T9/2011: Minor Asphalt Works.

DISCUSSION

The Tender No. T9/2011 is a Schedule of Rates tender. A summary of tenders, together with full evaluation details are in folder F2011/00842. Excepting this report, the summary and details of the tenders received are to be treated as confidential in accordance with the Local Government Act.

Six (6) tenders were received for Tender No. T9/2011 from the following companies.

· Asphalt Laying Services Pty Ltd

· Kizan Pty Ltd trading as A & J Paving

· Borthwick & Pengilly Asphalts Pty Ltd

· North Shore Paving Co. Pty Ltd

· Ozpave (Aust) Pty Ltd

· Sharpe Bros (Aust) Pty Ltd

The tenders were evaluated based on the stipulated criteria, namely:-

· Cost of the Works

· Past performance and experience in similar types of works

· Plant and equipment resources

· Labour and sub-contract resources

· Material supply sources

· Traffic control systems

· Quality assurance

· Occupational health and safety systems

· Sustainability

The tendered Schedule of Rates were evaluated for each tender by applying them to estimated annual quantities for the main items of work that would normally be expected for the proposed contract. The other criteria were assessed based on information submitted with each tender, information gained from the tenderers’ nominated referees and past performance with previous Hornsby Shire Council works where applicable.

The results of the evaluation indicate that the most advantageous tender is from Kizan Pty Ltd (trading as A & J Paving)

The total estimated work under this contract is in the order of $250,000 per annum. The ranking of all tenderers in accordance with cost criterion, is as follows

1. Kizan Pty Ltd trading as A & J Paving

2. Ozpave (Aust) Pty Ltd

3. Borthwick and Pengilly Asphalts Pty Ltd

4. North Shore Paving Co. Pty Ltd

5. Asphalt Laying Services Pty Ltd

The tender from Sharpe Bros. (Aust) Pty Ltd is incomplete.

Full details of the tender evaluation are on file.

BUDGET

There are no budgetary implications.

POLICY

There are no policy implications.

CONSULTATION

The tender has been evaluated in conjunction with the main users of the proposed contract.

TRIPLE BOTTOM LINE SUMMARY

Working with our Community

The community was informed of the tender through advertising in the Sydney Morning Herald and the Advocate newspapers.

Conserving our natural environment

The patching of road pavements with asphalt permits the use of some recycled material in the asphalt mix design. The materials excavated are recycled where possible.

The processes on site are controlled by sediment and erosion minimisation measures. Further controls are clearly specified in the contract against environmentally sensitive areas such as noise smoke and dust.

Contributing to community development through sustainable facilities and services

Restoration of road pavements promptly and proper maintenance of road shoulders will help sustain the amenity of the area and provides comfort and safety for the public.

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

Restorating pavements in a timely manner, construction of road shoulders, footpaths with asphalt concrete where appropriate will have a positive effect on conserving and enhancing Council’s road pavement assets.

Supporting our diverse economy

Proper maintenance of the road pavement and roadsides has a positive effect on the amenity of the area. This in turn has a positive effect on the local economy and businesses by providing safe and convenient access for public.

Maintaining sound corporate financial management

The cost effective maintenance of the road pavement and roadsides enhances the value of Council’s road pavement asset and helps guard against the expensive cost of total reconstruction.

Other sustainability considerations

The company’s management policy Quality Assurance, OHS and Environmental management systems were taken in to consideration in the evaluation of tenders received.

RESPONSIBLE OFFICER

For further information, please contact Engineer construction, Mr. Wimal Dasanayake on 98476673.

RECOMMENDATION

THAT Council accept the tender of Kizan Pty Ltd (trading as A & J Paving) for all work under Tender No. T9/2011: Minor Asphalt Works.

Maxwell Woodward

Executive Manager

Works Division

Attachments:

Refer to Confidential attachment to WK48/11, located in the Confidential section of Business Paper Confidential Memo WD D&C 37/11 (circulated separately to Councillors). - 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: F2011/00842

Document Number: D01722884

Executive Manager's Report No. WK49/11

Works Division

Date of Meeting: 24/08/2011

25 TENDER T10/2011: STABILISATION OF ROAD PAVEMENTS

EXECUTIVE SUMMARY

The proposed contract for “Stabilisation of Road Pavements” is required to service Council’s needs for the repair, reconstruction and construction of road pavements.

Council does not have the specialist personnel and equipment required for this work and therefore open tenders have recently been called in accordance with the Local Government Act. The proposed contract will be for 12 months duration with an option to extend the contract for a further 12 months period. Accurate Asphalt & Road Repairs Pty Ltd. has been recommended for acceptance for this tender.

PURPOSE/OBJECTIVE

This report provides a recommendation for the acceptance of Tender No. T10/2011: Stabilisation of Road Pavements.

DISCUSSION

The Tender No. T10/2011 is a Schedule of Rates tender. A summary of tenders, together with full evaluation details are in folder F2011/00843. Excepting this report, the summary and details of the tenders received are to be treated as confidential in accordance with the Local Government Act.

Three (3) tenders were received for Tender No. T10/2011 from the following companies.

· Accurate Asphalt & Road Repairs Pty Ltd

· Stabilised Pavements Australia Pty Ltd

· Downer EDI Works Pty Ltd

The tenders were evaluated based on the stipulated criteria, namely:-

· Cost of the Works

· Past performance and experience in similar types of works

· Plant and equipment resources

· Labour and sub-contract resources

· Material supply sources

· Traffic control systems

· Quality assurance

· Occupational health and safety systems

· Sustainability

The results of the evaluation indicate that the most advantageous tender is from Accurate Asphalt & Road Repairs Pty Ltd.

The total estimated work under this contract is in the order of $400,000 per annum. The ranking of all tenderers in accordance with cost criterion, is as follows

1. Accurate Asphalt & Road Repairs Pty Ltd

2. Downer EDI Works Pty Ltd

3. Stabilised Pavements Australia Pty Ltd

Full details of the tender evaluation are on file.

BUDGET

There are no budgetary implications.

POLICY

There are no policy implications.

CONSULTATION

The tender has been evaluated in conjunction with the main users of the proposed contract.

TRIPLE BOTTOM LINE SUMMARY

Working with our Community

The community was informed of the tender through advertising in the Sydney Morning Herald and the Advocate newspapers.

Conserving our natural environment

The stabilisation of road pavement process recycles the existing road pavement, adding to it stabilising agents such as cement or lime, and re-compacts the material to strengthen and prolong the life of the asset. This saves significant energy, minimises greenhouse gases and the need for new quarried road pavement materials, and tipping of old material.

The processes on site are controlled by sediment and erosion minimisation measures, and protecting environmentally sensitive areas.

Contributing to community development through sustainable facilities and services

Rehabilitation of road pavement will have a positive effect on the amenity of the area and provides comfort and safety for the travelling public. Pavement management systems are used to evaluate the condition of existing roads network and stabilisation program is prepared annually. This is a systematic approach to rehabilitation of Council’s roads to make them a sustainable facility.

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

The rehabilitation of the road pavement will have a positive effect on conserving and enhancing Council’s road pavement assets, so that residents and the general public have a good road network to support their transport needs.

Supporting our diverse economy

Maintenance of a sustainable road network is essential in supporting the diverse economy of the Shire.

Maintaining sound corporate financial management

The cost effective rehabilitation of the road pavement enhances the value of Council’s road pavement asset and helps guard against the expensive cost of total reconstruction.

Other sustainability considerations

The company’s management policy Quality Assurance, OHS and Environmental management systems were taken in to consideration in the evaluation of tenders received.

RESPONSIBLE OFFICER

For further information, please contact Engineer construction, Mr Wimal Dasanayake on 9847 6673.

RECOMMENDATION

THAT Council accept the tender of Accurate Asphalt & Road Repairs Pty Ltd for all work under Tender No. T10/2011 Stabilisation of Road Pavements.

Maxwell Woodward

Executive Manager

Works Division

Attachments:

Refer to Confidential attachment to WK49/11, located in the Confidential section of Business Paper Confidential Memo WD D&C 38/11 (circulated separately to Councillors). - 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: F2011/00843

Document Number: D01722953

Executive Manager's Report No. WK50/11

Works Division

Date of Meeting: 24/08/2011

26 WORKS PROGRESS REPORT - JUNE QUARTER 2011 - DESIGN AND CONSTRUCTION BRANCH

EXECUTIVE SUMMARY

This is a report on the progress of works which are carried out by the Design and Construction Branch of the Works Division for the fourth quarter of 2010/2011. Overall, projects were undertaken in accordance with the timing and budgets shown in the previously adopted program.

PURPOSE/OBJECTIVE

The purpose of this report is to provide information as to the progress of the various 2010/2011 Improvement Programs (Civil Works), and other works undertaken by the Design and Construction Branch.

DISCUSSION

Improvement Program

Construction works are carried out under Council's various Improvement Programs namely: Local Roads, Footpaths, Stormwater Drainage, Traffic Facilities and Special Projects. In addition to this, the Design and Construction Branch is involved in other works such as Catchment Remediation projects for the Water Catchments Team of the Environment Division and civil works for the Parks and Landscape Team.

The Gantt charts for the programs listed above, together with comments in the right hand column as to the status of each project, form part of this report.

Any change in the timing of construction for any project from the adopted program, is shown on the Gantt charts by shading the construction period shown on the previously adopted program.

Significant Impacts

There have been a number of changes to the Program since reported (Report No. WK25/11) to Council at the May 2011 Ordinary Meeting. These changes include:

· Pacific Hwy Hornsby- Threshold at TAFE pedestrian lights. The RTA did not approve this project to create a threshold. This project will be reconsidered as part of the Hornsby Westside traffic management plan.

· Shepherds Drive, Cherrybrook - Off road Cycleway - Kenburn Rd to New Line Rd. This project was scheduled for June 2011, however the RTA did not approve grant funding in 2010/2011 so the project has now been included in the 2011/2012 program.

The Design and Construction Branch has a number of staff vacancies in the Design Team, with contract resources being utilised as necessary to ensure deadlines are met. These staff vacancies have impacted on preconstruction activities for the 2011/2012 Program. Some additional temporary resources are being sought with a view of catching up on programs. Progress in this regard will be monitored and further reported in the future.

Tenders / Contracts

No tenders were called during the June quarter.

Current tenders include:

1. Current contracts include:

2. Sprayed Bituminous Surfacing

3. Widening Berowra Waters Road

4. Grinding of Concrete Footpaths

5. Construction of John Purchase Oval Extension and Car Park at 46-60 Purchase Road, Cherrybrook

6. Construction of Vehicular Crossings and Footpaths

7. Design and Project Management – Storey Park Community and Child Care Centre

8. Material Testing of Site Investigation

9. Concreting Form and Finish

10. Supply of Delivery of Precast Concrete Drainage Products

11. Electrical Services

12. Supply and Delivery of Road Materials

13. Supply and Delivery of Concrete

14. Design and Construction Epping Water Harvesting Schemes

15. Patching of Road Pavements in Full Depth Asphalt

16. Supply and Lay Asphaltic Concrete

17. Grass Cutting of Roadsides

18. Plumbing Services

19. Sprayed Bituminous Surfacing

20. Pavement Marking (NSROC)

21. Grass Cutting of Roadsides

22. Cherrybrook Community Childcare Facility – Consultant to Finalise Plans and Documentation

23. Construction of Hornsby Ku-ring-gai District Rural Fire Centre and Emergency Facility

24. Hornsby Quarry – Land Filling Approval

25. Design and Construction Management of Hornsby Aquatic Centre

Customer Satisfaction Surveys

In order to ensure that the Design and Construction Branch is informing the community of the projects it undertakes, designs are now available to the community on Council’s website. In order to ensure that the Branch is meeting the needs of our customers, at the completion of most Local Road projects, customer satisfaction survey forms are sent to residents in the vicinity of the works. Of the forty two survey forms that have been returned, 89% of residents rated projects as very good/good. Following is a summarised copy of the results.

Vehicular Crossing Construction

The Design and Construction Branch is also responsible for issuing plans and specifications and supervising vehicular crossing construction. Property owners have the choice of using a contractor from Council's Authorised Contractors List, or pay Council to construct vehicular crossings on their behalf. There are currently 55 Authorised Contractors, including three new contractors authorised during the quarter.

During the June quarter 68 plans and specifications were issued and one (1) crossing was constructed by Council's contractors.

BUDGET

The minor Traffic Facilities component of the Improvements program was amended as outlined in Memo No. TR28/11 sent to Councillors on 30 May 2011. The memo outlines that the RTA would not approve the proposed threshold at the signalised pedestrian crossing outside Hornsby TAFE in isolation. The RTA requires that this project be considered as part of an overall west side traffic management strategy. As there was no other traffic facility project ready to construct, the funds ($65,000) were diverted to Bloodwood Road, which was brought forward from the 2011/2012 Rural Local Road Program.

Expenditure and budget of all projects is shown in the Gantt charts included in this report.

POLICY

There are no policy implications.

CONSULTATION

The program has been developed in consultation with the respective program managers.

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.

RESPONSIBLE OFFICER

The responsible officer is the Manager, Design & Construction, Mr Rob Rajca who can be contacted on telephone 9847 6675 between 8.30am - 5.00pm, Monday to Friday.

RECOMMENDATION

THAT the contents of Executive Manager’s Report No. WK50/11 be received and noted.

Maxwell Woodward

Executive Manager

Works Division

Attachments:

There are no attachments for this report.

File Reference: F2004/05959-02

Document Number: D01723380

Executive Manager's Report No. WK51/11

Works Division

Date of Meeting: 24/08/2011

27 WORKS PROGRESS REPORT - JUNE 2011 QUARTERLY - TRAFFIC AND ROAD SAFETY BRANCH

EXECUTIVE SUMMARY

This report provides Council with information on the works and activities undertaken by the Traffic and Road Safety Branch for the period 1 April 2011 to 30 June 2011. The report outlines the numerous and diverse projects undertaken by the Branch during the 2010/11 Annual Operating Program.

PURPOSE/OBJECTIVE

The objective of this report is to provide Council with an overview of the functions of the Traffic and Road Safety Branch during the period of review and to seek Council’s endorsement of the activities undertaken.

DISCUSSION

The Traffic and Road Safety Branch comprises 17 staff, i.e. 1 x Senior Traffic Engineer, 1 x Transport Planner, 1 x Assistant Traffic Engineer, 1 x Road Safety Officer, 9 x Rangers, 1 x Ranger Coordinator, 1 x Branch Secretary, 1 x Administration Assistant and 1 x Manager. The areas of responsibility within the Branch are; Traffic and Transport Planning, Traffic Engineering, Traffic and Road Safety Education and Traffic and Car Parking Enforcement. The core activities undertaken within these areas of responsibility are:-

* Management and Administration

* Traffic Management

* Traffic and Transport Planning

* Car Parking Management

* Road Safety Education

* Bicycle and Pedestrian Facilities Planning

* Development Assessment

Management and Administration

The Traffic and Road Safety Branch has two responsibility centres within the Annual Operating Plan, Traffic and Road Safety and Traffic and Parking Enforcement and as such it is required to provide budget control, program reports through quarterly reviews, program development, annual reporting and human resource management.

Traffic Management

Council is the responsible Authority for the management of traffic on public streets within its proclaimed boundaries other than classified roads. However, the Roads and Traffic Authority has revoked Council’s delegated powers to approve traffic facilities that prevent or restrict access of vehicles or pedestrians on public roads and approve some categories of parking restrictions near public transport infrastructure. Council remains an applicant for the implementation of any restriction, e.g. road closures, turning restrictions, etc., on public roads and “No Parking” and “No Stopping” restrictions on currently unregulated roads within a kilometre of Berowra railway station. These applications are determined by the Roads and Traffic Authority.

During the period under review 13 items were referred to the Local Traffic Committee for a recommendation as shown in Attachment 1. Throughout all of the above projects the community was consulted and where possible amendments made to suit the community’s needs or requests.

Traffic and Transport Planning

As a Roads Authority, proactive measures are required to ensure proposals comply with adopted standards, guidelines and best practice.

Major Traffic and Transport Planning projects undertaken during June 2011 quarter are outlined below:

· Updating of Hornsby CBD and Shire traffic models (on-going)

· Maintain database for traffic and transport planning

· Hornsby Shire Housing Strategy

· Development of Hornsby Town Centre Car Parking Management Actions

· Review of parking rates to be incorporated into the Draft Hornsby Shire Consolidated DCP.

· Review and assessment of Hornsby Shire Road Hierarchy

· Review and implementation of Hornsby Shire Integrated Land Use & Transport Strategy (on-going)

· Review and assessment of access options for Hornsby Quarry site and Hornsby Aquatic Centre

· Epping Town Centre Study

Car Parking Management

In addition to patrolling on street parking restrictions Traffic Rangers are contracted to patrol private parking areas used by the public. Discussions are on going with Coles regarding patrols of the Thompsons Corner car park. 1294 parking spaces in 15 car parking areas within the Shire are currently patrolled as shown in Attachment 1.

Car Parking Management activities carried out during the period under review include:-

* 179 (176) patrols of schools to enforce parking regulations.

* 2,768 (3,231) infringement notices were issued.

* 3 (6) matters were defended in Hornsby Local Court.

(--) denotes activities from April to June 2010.

The use of electronic handheld devices for the issuing of traffic infringement notices commenced in June 2008. The devices allow improved data collection and transfer of data between the State Debt Recovery Office and Council.

Road Safety Education

The Road Safety Officer returned from maternity leave 6 June 2011 after which a number of deferred projects are being developed for 2011/2012 –

· Safer Senior Driver Workshops - This is an extremely popular program in the community. The next workshop is being planned for September 20^th.

· Safety Outside Schools – Road Safety Educational material continues to be available to all schools in the Shire.

· Fatigue and Drink Drive projects - Council will continue to remind the community of the signs of fatigue and the dangers of drink driving. Council will work with local Police and provide promotion assistance where required during Police operations, such as Operation Roadsafe.

Further projects 2011/2012 under development subject to Roads and Traffic Authority (RTA) funding include -

· Local Speed Project – Speeding is the #1 contributing factor to road death and injury on our local roads. This project seeks to combine the resources of Council, RTA and local Police to target speeding in our local government area.

· Child Restraints Project – Two child restraint checking days are to be held. RTA authorised restraint fitters will assist parents and carers in ensuring their child restraints are correctly installed. It is imperative that child restraints meet Australian standards, are installed correctly and are suitable for the child’s height and weight.

· Graduated Licensing Scheme workshops – Two workshops to be delivered to the Hornsby community. The workshop is designed to help the supervising driver of Learner drivers become safer drivers.

Bicycle, Pedestrian and Public Transport Facilities and Planning

The position has been deleted from the establishment in order to meet corporate budget targets, however Branch staff have been involved in –

· Audit of all bus stops across the Shire in accordance with Disability Discrimination Act requirements

· Prioritising bicycle projects for Design and Construction Branch, and providing input into other traffic management and road construction projects to improve pedestrian and bicycle access where possible

· Public consultation and development of Brooklyn Shared Path Report

Development Assessment and advice on Town Planning Issues

The Traffic and Road Safety Branch provides advice to the Planning Division on ‘as needed’ basis. During the period under review, traffic comments and impact assessments were made on 16 development applications as shown in Attachment 1.

BUDGET

There are no budget implications intended in this report.

POLICY

There are no policy implications.

CONSULTATION

There is ongoing extensive consultation with the community and other stakeholders during the course of the traffic facility and bicycle program implementation.

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.

RESPONSIBLE OFFICER

The responsible officer for this report is the Manager Traffic and Road Safety Mr Lawrence Nagy telephone 9847 6524.

RECOMMENDATION

THAT Council endorse the activities undertaken by the Traffic and Road Safety Branch for the period 1 April 2011 to 30 June 2011.

Maxwell Woodward

Executive Manager

Works Division

Attachments:

1.View

TRAFFIC AND ROAD SAFETY BRANCH ACTIVITIES 1 APRIL 2011 TO 30 JUNE 2011

File Reference: F2004/05959-02

Document Number: D01727328

1.View	Modified 2011/12, 2012/13 and 2013/14 IA plans.
2.View	2010/11 - Adopted Audits, Other Work and activities.

1.View	Local Traffic Committee report LTC25/2011
2.View	Aerial photo