Agenda of Ordinary Meeting of Council

Ordinary Meeting of Council

TO BE HELD ON Tuesday, 14 May 2019 AT 7.00pm

Level 3, Council Chamber

Agenda

** ** ** ** ** **

NOTE: For Full Details, See Council’s Website –

www.kmc.nsw.gov.au under the link to business papers

APOLOGIEs

DECLARATIONS OF INTEREST

Confirmation of Reports to be Considered in Closed Meeting

NOTE:

That in accordance with the provisions of Section 10 of the Local Government Act 1993, all officers’ reports be released to the press and public, with the exception of following confidential report and attachment:

C.1- RFQ5-2019 – Invesment Advisory Services

In accordance with section 10(2)(d)(i)

Attachment A1: Request for Quotation – Detailed Evaluation Form

Address the Council

NOTE:

Persons who address the Council should be aware that their address will be recorded on the official audio recording of this meeting.

Documents Circulated to Councillors

CONFIRMATION OF MINUTEs

Minutes of Ordinary Meeting of Council 5

File: S02131

Meeting held 9 April 2019

Minutes numbered 64 to 79

minutes from the Mayor

Petitions

GENERAL BUSINESS

i. The Mayor to invite Councillors to nominate any item(s) on the Agenda that they wish to have a site inspection.

ii. The Mayor to invite Councillors to nominate any item(s) on the Agenda that they wish to adopt in accordance with the officer’s recommendation allowing for minor changes without debate.

GB.1 2019 National ALGWA Conference 18

File: FY00581/4

To inform Councillors of the 2019 National Australian Local Government Women’s Association Conference being held from Wednesday 15 to Friday 17 May 2019 at the Novotel Sydney, West HQ Rooty Hill.

Recommendation:

That any Councillors wishing to attend bi-annual 2019 National Australian Local Government Women’s Association Conference be authorised to do so.

GB.2 Investment Report as at 31 March 2019 28

File: FY00623

To present Council’s investment portfolio performance for March 2019.

Recommendation:

That the summary of investments performance for March 2019 be received and noted; and that the Certificate of the Responsible Accounting Officer be noted and report adopted.

GB.3 Eryldene Historical House
17 McIntosh Street Gordon
Volunteer Assistance for Maintenance 37

File: S03527

To seek Council’s approval to offer volunteer staff assistance for maintenance at Eryldene Historical House.

Recommendation:

That Council approve staff to provide voluntary assistance with maintenance at Eryldene Historical House.

GB.4 Monthly Project Status Report - April 2019 40

File: FY00621

To provide Council with the Project Status Report for April 2019.

Recommendation:

That Council receive and note the Project Status Report for April 2019 and that Council support the report being presented every three (3) months.

GB.5 Draft Revised Delivery Program 2018-2021 and Draft Operational Plan 2019-2020 48

File: FY00382/11

To place Council's draft Revised Delivery Program 2018-2021 and draft Operational Plan 2019-2020, incorporating the Budget, Capital Works Program, Statement of Revenue Policy and Fees and Charges for 2019-2020, on public exhibition.

Recommendation:

That the draft Revised Delivery Program 2018-2021, and draft Operational Plan 2019-2020, incorporating the Budget, Capital Works Program, Statement of Revenue Policy and Fees and Charges for 2019-2020, be endorsed and placed on public exhibition and that following public exhibition, a further report be submitted to Council for consideration of submissions and adoption of the revised Delivery Program 2018-2021 and Operational Plan 2019-2020, including Fees and Charges.

GB.6 Revised Resourcing Strategy 2019 - 2029 249

File: S11276

For Council to adopt the Revised Resourcing Strategy 2019 – 2029 incorporating the Long Term Financial Plan, Asset Management Strategy and Workforce Management Strategy.

Recommendation:

That Council adopt the Revised Resourcing Strategy 2019 – 2029 incorporating the Long Term Financial Plan, Asset Management Strategy and Workforce Management Strategy.

Extra Reports Circulated to Meeting

BUSINESS WITHOUT NOTICE – SUBJECT TO CLAUSE 241 OF GENERAL REGULATIONS

Questions Without Notice

Inspections Committee – SETTING OF TIME, DATE AND RENDEZVOUS

Confidential Business to be dealt with in Closed Meeting

C.1 RFQ5-2019 - Investment Advisory Services

File: FY00623

In accordance with the Local Government Act 1993 and the Local Government (General) Regulation 2005, in the opinion of the General Manager, the following business is of a kind as referred to in section 10A(2)(d)(i), of the Act, and should be dealt with in a part of the meeting closed to the public.

Section 10A(2)(d) of the Act permits the meeting to be closed to the public for business relating to 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 Council, or

(iii) reveal a trade secret.

This matter is classified confidential under section 10A(2)(d)(i) because it deals with tenders. Tender details, should they be revealed, may result in commercial disadvantage to parties involved in the tender process. Some information provided to Council by tenderers is provided on the basis that Council will treat it as commercial in confidence.

It is not in the public interest to reveal details of these tenders or the assessment process. Tenderers have provided sensitive information about their operations in the confidence that their details will not be made public by Council. The practice of publication of sensitive information provided by tenderers could result in the withholding of such information by tenderers and reduction in the provision of information relevant to Council’s decision.

Report by Director Corporate

John McKee

General Manager

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Minute Ku-ring-gai Council Page

MINUTES OF Ordinary Meeting of Council
HELD ON Tuesday, 9 April 2019

Present:	The Mayor, Councillor J Anderson (Chairperson) Councillors J Pettett & C Clarke (Comenarra Ward) Councillors C Szatow & P Kelly (Gordon Ward) Councillors S Ngai (Roseville Ward) Councillors C Kay & M Smith (St Ives Ward) Councillors D Greenfield & C Spencer (Wahroonga Ward)

Staff Present:	General Manager (John McKee) Director Corporate (David Marshall) Director Development & Regulation (Michael Miocic) Director Operations (George Bounassif) Director Strategy & Environment (Andrew Watson) Director Community (Janice Bevan) Corporate Lawyer (Jamie Taylor) Manager Corporate Communications (Virginia Leafe) Manager Records and Governance (Amber Moloney) Acting Manager Records and Governance (Peter Doyle) Minutes Secretary (Sigrid Banzer) Senior Governance Officer (Stephen Kwok) Manager Urban & Heritage Planning (Antony Fabbro) Senior Urban Planner (Rathna Rana)

The Meeting commenced at 7.00pm

The Mayor offered the Prayer

DECLARATIONS OF INTEREST

The Mayor adverted to the necessity for Councillors and staff to declare a Pecuniary Interest/Conflict of Interest in any item on the Business Paper.

Councillor Ngai declared a significant non-pecuniary conflict of interest in items GB.10 and GB.12 noting he is Council’s representative on the Sydney North Planning Panel (SNPP) and that related development applications may go to the SNPP for determination in the future. He advised that he will leave the Chamber taking no part in the debate on these items.

Councillor Spencer declared a significant non-pecuniary conflict of interest in items GB.10 and GB.12 noting he is Council’s representative on the Sydney North Planning Panel (SNPP) and that related development applications may go to the SNPP for determination in the future. He advised that he will leave the Chamber taking no part in the debate on these items.

Confirmation of Reports to be Considered in Closed Council

File: S02499/13

Vide:

That in accordance with the provisions of Section 10 of the Local Government Act 1993, all officers’ reports be released to the press and public, with the exception of confidential attachments to the following General Business reports:

GB.11- Heritage Consultants Register

In accordance with section 10(2)(d)(ii)

Attachment A1: Expression of Interest – Urbis

Attachment A2: Expression of Interest – FORM

Attachment A3: Expression of Interest – AT Architecture, Planning, Urban Design

Attachment A4: Expression of Interest – Shillington Planning & Heritage

GB.12 – Notification of receipt of an offer to enter into a Voluntary Planning Agreement – Roseville Club

In accordance with section 10(2)(c)

Attachment A2: Heads of Agreement for the purchase of land

Resolved:

(Moved: Councillors Greenfield/Smith)

CARRIED UNANIMOUSLY

Address the Council

The following member of the public addressed Council on items not on the agenda:

M McCluskey Current Lindfield Library

DOCUMENTS CIRCULATED TO COUNCILLORS

The Mayor adverted to the documents circulated in the Councillors’ papers and advised that the following matters would be dealt with at the appropriate time during the meeting:

Memorandum:

GB.3. – Draft Code of Meeting Practice

Memorandum from Manager Records & Governance dated 9 April 2019 to Mayor and Councillors noting a typographical error and proposing minor wording changes to Attachment A1.

CONFIRMATION OF MINUTEs

Minutes of Ordinary Meeting of Council

File: S02131

Meeting held 26 March 2019

Minutes numbered 41 to 63

Resolved:

(Moved: Councillors Szatow/Greenfield)

That Minutes numbered 41 to 63 circulated to Councillors were taken as read and confirmed as an accurate record of the proceedings of the Meeting.

CARRIED UNANIMOUSLY

GENERAL BUSINESS

2019 Future of Local Government National Summit

File: FY00581/4

Vide: GB.1

To inform Councillors of the 2019 Future of Local Government National Summit being held on 23 and 24 May 2019 at the Angliss Conference Centre, Melbourne.

Resolved:

(Moved: Councillors Szatow/Pettett)

That any Councillors wishing to attend the 2019 Future of Local Government National Summit notify the General Manager by Friday 26 April 2019.

CARRIED UNANIMOUSLY

2019 Asia Pacific Cities Summit & Mayors' Forum

File: FY00581/4

Vide: GB.2

To inform Councillors of the 2019 Asia Pacific Cities Summit (2019 APCS) & Mayors’ Forum being held on 7 July to 10 July 2019 at the Brisbane Convention & Exhibition Centre, Brisbane.

Resolved:

(Moved: Councillors Szatow/Kelly)

That any Councillors wishing to attend the 2019 APCS & Mayors’ Forum notify the General Manager by Monday 20 May 2019 in order to qualify for the early-bird rate.

CARRIED UNANIMOUSLY

New Code of Conduct

File: S11192-1

Vide: GB.4

The new Model Code of Conduct (The Model) and the new Procedures for the Administration of the Model Code of Conduct (The Procedures) for Local Councils in NSW were prescribed on 14 December 2018.

Resolved:

(Moved: Councillors Szatow/Greenfield)

That Council;

A. Adopt the recommended version of the Code of Conduct including all deletions and additions (Attachment 1)

B. Adopt the model Procedures for the Administration of the Code of Conduct including additions (Attachment 2)

CARRIED UNANIMOUSLY

Monthly Project Status Report - March 2019

File: FY00621

Vide: GB.5

To provide Council with the Project Status Report for March 2019.

Resolved:

(Moved: Councillors Szatow/Pettett)

A. That Council receive and note the Project Status Report for March 2019.

B. That the Project Status Report be placed on Council’s website.

CARRIED UNANIMOUSLY

Gordon Litter Report

File: S02294

Vide: GB.6

To report on the progress of the Gordon Town Centre Litter Improvement Program.

Resolved:

(Moved: Councillors Szatow/Kelly)

A. That Council receive and note the report.

CARRIED UNANIMOUSLY

Proposed synthetic surface at Rofe Park (Mimosa Sportsground), South Turramurra

File: S02617

Vide: GB.8

The purpose of the report is to advise Council of a proposed synthetic surface to be established at Rofe Park, also known as Mimosa Sportsground in South Turramurra.

Resolved:

(Moved: Councillors Szatow/Smith)

A. That Council approves the inclusion of Rofe Park (Mimosa Sportsground) in the capital works program (2018/2019 and 2019/2020) to progress the necessary stages of assessment, design, consultation and delivery. That the external funding of $928,765 be utilised towards this project.

B. Council agrees to complete the capital works at Norman Griffiths Oval following the proposed works at Rofe Park.

C. Council approves the transfer of any outstanding funds from the natural turf upgrade at Norman Griffiths Oval to contribute to the synthetic field conversion at Rofe Park pending the final costs for each project.

D. Subject to community consultation, Council provides consent to relocate cricket formally played at Rofe Park to Norman Griffiths Oval.

CARRIED UNANIMOUSLY

Councillors Ngai and Spencer withdrew during debate and voting on GB.10

Planning Proposal for land at 62 (part) and 64 - 66 Pacific Highway, Roseville -
Roseville Memorial Club

File: S12030

Vide: GB.10

For Council to consider the strategic merit of the Planning Proposal for 62 (part) and 64-66 Pacific Highway, Roseville and whether it should be submitted for a Gateway Determination.

Resolved:

(Moved: Councillors Szatow/Greenfield)

A. That the Planning Proposal be amended in accordance with the recommendations in this Council Report and Table of Assessment at Attachment A1.

B. That the Planning Proposal be forwarded to the Department of Planning and Environment for a Gateway Determination in accordance with section 56 of the Environmental Planning and Assessment Act 1979.

C. That delegation be given to the General Manager and Director of Strategy and Environment to verify all amendments are in accordance with the recommendations of this Council Report and Table of Amendments at Attachment A1prior to forwarding to the Department of Planning and Environment.

D. That Council requests to be authorised as the local plan-making authority to exercise the functions under Section 3.36(2) of the Environmental Planning and Assessment Act 1979 for this Planning Proposal.

E. That should a Gateway Determination be issued for public exhibition of the Planning Proposal, site specific amendments to Council’s Comprehensive Development Control Plan be prepared in accordance with Council’s fees and charges, the details in this Council Report and the Table of Amendments at Attachment A1 and be placed on public exhibition concurrently with the Planning Proposal.

F. That a Report be brought back to Council, as per any Gateway requirements, following the exhibition of the Planning Proposal and site specific draft Development Control Plan.

G. That the applicant be notified of Council’s Resolution.

CARRIED UNANIMOUSLY

Councillors Ngai and Spencer withdrew during debate and voting on GB.12

Notification of receipt of an offer to enter into a Voluntary Planning Agreement - Roseville Club

File: S12306

Vide: GB.12

To advise Council of the receipt of a letter of offer and supporting documentation to facilitate the divestment of that portion of the Council owned land (and acquisition of easements over that land for Council) to the Roseville Memorial Club at part 62 Pacific Highway Roseville to proceed.

Resolved:

(Moved: Councillors Szatow/Clarke)

A. That the receipt of a formal letter of offer dated 12 March 2019, to enter into a Planning Agreement to acquire the Council owned land associated with the proposed development at Roseville Memorial Club at 64-66 and Part 62 Pacific Highway Roseville, and its associated documentation, be noted.

B. That delegation be granted to the General Manager or his nominee to progress a draft planning agreement until it is suitable for reporting to Council prior to statutory exhibition.

C. That Council approves of the divestment of Council land identified in this report comprising 156.80 m² in part Lot 2 DP202148 to the Roseville Memorial Club and that the General Manager or his delegate be given approval to negotiate the sale price strictly in accordance with Council’s Acquisition and Divestment Policy and independent valuation advice. The Club is to meet all costs associated with the acquisition and consolidation of Council’s Land into the Club’s existing holding.

D. That subject to the divestment of Council’s Land to the Club, that approval be given for the acquisition of easements in favour of Council at no cost to Council for the purpose of maintaining public access and for other public purposes as may be required.

E. That Council delegates to the General Manager and the Mayor the authority to execute all documentation in relation to the divestment of Council’s Land, associated sub-division and the acquisition of easements in favour of Council and to affix the Council Seal to such documents where applicable.

CARRIED UNANIMOUSLY

Councillors Ngai and Spencer returned

Heritage Consultants Register

File: CY00069/11

Vide: GB.11

For Council to consider the response to a call for Expressions of Interest for a heritage consultants’ register in accordance with its resolution of 30 October 2018.

Resolved:

(Moved: Councillors Szatow/Kelly)

A. Council continues to engage heritage consultants from the NSW Office of Environment and Heritage register to ensure that Council has access to the range of heritage skills and expertise it requires.

B. Council writes to all parties who submitted an Expression of Interest for the consultants’ panel to thank them for their applications.

CARRIED UNANIMOUSLY

Standing Orders were suspended to deal with items where there are speakers first, after a motion moved by Councillors Greenfield and Szatow was CARRIED UNANIMOUSLY.

75	Heritage Review of 6 Arden Road, Pymble File: S11340 Vide: GB.9
	The following members of the public addressed Council on this item: J Phillips E McCulloch
	Resolved: (Moved: Councillors Szatow/Ngai) A. That Council receive and note the heritage assessment of 6 Arden Road, Pymble authored by heritage architect Dr Noni Boyd. B. The heritage listing for 6 Arden Road, Pymble remains. C. That an offer of $3,000 from the Ku-ring-gai Heritage Home Grants fund be made available to the owner of 6 Arden Road, Pymble for either conservation works to 6 Arden Road, Pymble or for a schedule of heritage conservation works prepared by a heritage architect. These funds are conditional on compliance with Council’s Heritage Fund Guidelines. For the Resolution: The Mayor, Councillor Anderson, Councillors Ngai, Pettett, Spencer, Greenfield, Smith, Kelly, Szatow and Kay Against the Resolution: Councillor Clarke
	The above Resolution was subject to an Amendment which was LOST. The Lost Amendment was: (Moved: Councillors Ngai/Kay) A. That Council receive and note the heritage assessment of 6 Arden Road, Pymble authored by heritage architect Dr Noni Boyd. B. The heritage listing for 6 Arden Road, Pymble remains. C. That an offer of $5,000 from the Ku-ring-gai Heritage Home Grants fund be made available to the owner of 6 Arden Road, Pymble for either conservation works to 6 Arden Road, Pymble or for a schedule of heritage conservation works prepared by a heritage architect. These funds are conditional on compliance with Council’s Heritage Fund Guidelines. For the Amendment: Councillors Ngai, Clarke and Kay Against the Amendment: The Mayor, Councillor Anderson, Councillors Pettett, Spencer, Greenfield, Smith, Kelly and Szatow

Councillor Pettett left and returned.

Councillor Greenfield left and returned.

76	Draft Model Code of Meeting Practice File: S02211 Vide: GB.3
	To present Council with a draft Code of Meeting Practice, consistent with the Model Code of Meeting Practice, for consideration and public exhibition.
	Resolved: (Moved: Councillors Clarke/Smith) That: A. Section 4.3 of the draft Code of Meeting Practice in Attachment A1 will be amended to say: To speak at a public forum, a person must first make an application to the council in the approved form. Applications to speak at the public forum must be received by 5pm on the business day before the public forum, and must identify the item of business on the agenda of the council meeting the person wishes to speak on, and whether they wish to speak ‘for’ or ‘against’ the item. B. Pursuant to section 361 of the Local Government Act 1993, Council place the draft Code of Meeting Practice in Attachment A1 on public exhibition for 28 days including the amendments to clauses 4.7 and 4.8 as outlined in the memo dated 9 April 2019 from the Manager Records & Governance and circulated to councillors and; C. A report be brought to Council at its meeting on 11 June 2019 summarising the public response and providing a final version of the draft Code of Meeting Practice, for adoption. CARRIED UNANIMOUSLY
	The above Resolution was subject to an Amendment which was LOST. The Lost Amendment was: (Moved: Councillors Ngai/Spencer) A. Section 5.21 of the draft Code of Meeting Practice in Attachment A1 will be amended to say: A recording of each meeting of the council and committee of the council is to be retained on the council's website for a minimum of two [2] years. Recordings of meetings may be disposed of in accordance with the State Records Act 1998. This is to align Ku-ring-gai’s practice to those of our neighbouring councils, and is intended to provide residents with a greater opportunity to understand the rationale for Council’s decisions. B. Pursuant to section 361 of the Local Government Act 1993, Council place the draft Code of Meeting Practice on public exhibition for 28 days; and C. A report be brought to Council at its meeting on 11 June 2019 summarising the public response and providing a final version of the draft Code of Meeting Practice, for adoption. For the Resolution: Councillors Ngai and Kelly Against the Resolution: The Mayor, Councillor Anderson, Councillors Clarke, Pettett, Spencer, Greenfield, Kay, Smith and Szatow

East Lindfield Community Centre

File: S12142

Vide: GB.7

To report to Council the outcomes of the community consultation for the demolition and redevelopment or restoration of the East Lindfield Community Centre.

Resolved:

(Moved: Councillors Smith/Clarke)

That Council resolve to:

Receive and note the outcome of the community consultation
Utilise the existing budget to carry out critical repairs to the building and stormwater infrastructure, with an objective to ensure the building is resistant to future water leaks.
Council continue to maintain the existing building.
Any major upgrade to the East Lindfield Community Centre is programed in accordance with the Community Facility Renewal Prioritisation Program.

For the Resolution: The Mayor, Councillor Anderson, Councillors Clarke, Spencer, Greenfield, Smith, Kelly, Szatow and Kay

Against the Resolution: Councillors Ngai and Pettett

QUESTIONS WITHOUT NOTICE

Section 94 Lands - Dumaresq Street Gordon

File: S11390

Vide: QN.1

Question Without Notice from Councillor C Szatow.

Councillor Szatow: It’s been brought to my attention by residents that the section 94 lands in Dumaresq Street Gordon on the public domain plan for KMC website are actually no longer being shown as a park. That has been removed. May I ask why?

Director Strategy and Environment: I will provide a more expansive answer in writing but the Council has amended the DCP, the LEP and the Public Domain Plan to remove the park and did that a number of terms ago. So what’s shown on the Council website is reflective of current council decisions which is in the order of four or five years old.

Councillor Szatow: That area I believe is still community land, is that still correct?

Director Strategy and Environment: That’s correct.

Amber Moloney leaving Ku-ring-gai Council

File:

Vide: QN.2

Question Without Notice from Councillor M Smith.

Councillor Smith: My question is to Amber Moloney. I believe that Amber has decided to leave Ku-ring-gai Council and I would like to question why?

Manager Records & Governance: I have an opportunity to move up to the Upper Hunter where I own some land. I was intending to move in five years time but I’ve fast tracked it now.

Mayor Anderson: And perhaps we can send off Amber with a round of applause. Thank you for your service.

The Meeting closed at 8:04pm

The Minutes of the Ordinary Meeting of Council held on 9 April 2019 (Pages 1 - 13) were confirmed as a full and accurate record of proceedings on 14 May 2019.

__________________________ __________________________

General Manager Mayor / Chairperson

Ordinary Meeting of Council - 14 May 2019	GB.1 / 18

Item GB.1	FY00581/4
	30 April 2019

2019 National ALGWA Conference

EXECUTIVE SUMMARY

purpose of report:	To inform Councillors of the 2019 National Australian Local Government Women’s Association Conference being held from Wednesday 15 to Friday 17 May 2019 at the Novotel Sydney, West HQ Rooty Hill.

background:	ALGWA was formed as a non-party political organisation to support women’s participation in local government in 1951. A bi- annual conference has been held since 1966.

comments:	The theme for the 2019 National Conference is “Celebrating 100 Years of Women” and will focus on how far women in local government have come in the last 100 years.

recommendation:	That any Councillors wishing to attend bi-annual 2019 National Australian Local Government Women’s Association Conference be authorised to do so.

Purpose of Report

To inform Councillors of the 2019 National Australian Local Government Women’s Association Conference being held from Wednesday 15 to Friday 17 May 2019 at the Novotel Sydney, West HQ Rooty Hill.

Comments

As this Conference is scheduled to commence the day after this meeting, Councillors were contacted to gauge their interest in attending to ascertain the need to submit a report in accordance with the requirements of the Councillors Expenses and Facilities Policy.

Interest was shown and any Councillor attending will have an opportunity for continuing professional development as well as opportunities to strengthen networking, mentoring and innovative opportunities that encourage and support women in local government.

The conference program is attached (Attachment A1).

integrated planning and reporting

Leadership and Governance

Community Strategic Plan Long Term Objective

Delivery Program

Term Achievement

Operational Plan

Task

Council’s Governance framework is developed to ensure probity, transparency and the principles of sustainability are integrated and applied into our policies, plans, guidelines and decisions making processes.

Ensure effective and efficient conduct of Council and committee meetings for the benefit of councillors and the community.

Facilitate training and professional development opportunities for councillors including ethics and code of conduct training.

Governance Matters

The Payment of Expenses and Provision of Facilities to Councillors Policy provides for Council to meet the reasonable costs of Councillors attending conferences authorised by resolution of Council.

Risk Management

Nil.

Financial Considerations

Conference registration is $1,000 (GST inclusive) per person. This does not include travel and other associated costs.

Attendance is provided for in the Councillor’s conference budget in accordance with the Payment of Expenses and Provision of Facilities Policy. Council has an annual budget of $30,700 for Councillors’ attendance at conferences with $22,308 remaining in the 2018/2019 financial year.

Social Considerations

Nil.

Environmental Considerations

Nil.

Community Consultation

Nil.

Internal Consultation

Nil.

Summary

The 2019 National Australian Local Government Women’s Association Conference is being held from Wednesday 15 to Friday 17 May 2019 in the City of Blacktown local government area and this conference provides an opportunity for Councillors, particularly female Councillors to enhance their knowledge of, and role in local government.

Recommendation:

That any Councillors wishing to attend bi-annual 2019 National Australian Local Government Women’s Association Conference be authorised to do so.

Peter Doyle

Acting Manager Records & Governance

David Marshall

Director Corporate

Attachments:

A1 ⇩

2019 National ALGWA Conference Program

2019/120306

Ordinary Meeting of Council - 14 May 2019	GB.2 / 28

Item GB.2	FY00623
	1 May 2019

Investment Report as at 31 March 2019

EXECUTIVE SUMMARY

PURPOSE OF REPORT:	To present Council’s investment portfolio performance for March 2019.

background:	Council’s investments are reported monthly to Council in accordance with the Local Government Act 1993, the Local Government (General) Regulation 2005 and Council’s Investment Policy.

comments:	The net return on investments for the financial year to March 2019 was $4,319,000 against a revised budget of $3,490,000 giving a YTD favourable variance of $829,000.

recommendation:	That the summary of investments performance for March 2019 be received and noted; and that the Certificate of the Responsible Accounting Officer be noted and report adopted.

Purpose of Report

To present Council’s investment portfolio performance for March 2019.

Background

Council’s investments are reported monthly to Council in accordance with the Local Government Act 1993, the Local Government (General) Regulation 2005 and Council’s Investment Policy.

Comments

Investment Portfolio Performance Snapshot

The table below provides the investments portfolio performance against targets identified in Council’s Investment Policy as well as other key performance indicators based on industry benchmarks.

Cumulative Investment Returns against Revised Budget

The net return on investments for the financial year to March 2019 was $4,319,000 against a revised budget of $3,490,000 giving a YTD favourable variance of $829,000. The interest income revised budget will be adjusted in the March 2019 Quarterly Budget Review to reflect additional revenue.

The total return on investments for the month of March is provided below.

A comparison of the cumulative investment returns against year to date revised budget is shown in the Chart below.

Cash Flow and Investment Movements

Council’s total cash and investment portfolio at the end of March 2019 was $196,657,000 compared to $200,556,000 at the end of February 2019, a net cash outflow of $3,899,000. The outflow was mainly due to creditors payments.

One investment has matured during the month of March 2019 and two new investments were made.

Investment Performance against Industry Benchmark

Overall during the month of March the investment performance was well above the industry benchmark. The benchmark is specific to the type of investment and the details are provided below. AusBond Bank Bill Index is used for all Council’s investments.

Table 1 - Investments Performance against Industry Benchmarks

Table 2 below provides a summary of all investments by type and performance during the month.

Attachment A1 provides definitions in relation to different types of investments.

Table 2 - Investments Portfolio Summary during March 2019

Investment by Credit rating and Maturity Profile

The allocation of Council’s investments by credit rating and the maturity profile are shown below:

During March 2019, Standard & Poor’s (S&P) has lowered its ratings on AMP by one notch from A to A-. The changes are not material to the operations of AMP Limited. AMP continues to have a strong balance sheet and capital position. The downgrade of the bank does not affect Council’s rating group of A Category, it is still within its capacity of exposure.

integrated planning and reporting

Leadership & Governance

Community Strategic Plan Long Term Objective

Delivery Program

Term Achievement

Operational Plan

Task

L2.1 Council rigorously manages its financial resources and assets to maximise delivery of services

Council maintains and improves its long term financial position and performance

Continue to analyse opportunities to expand the revenue base of Council

Governance Matters

Council’s investments are made in accordance with the Local Government Act (1993), the Local Government (General) Regulation 2005 and Council’s Investment Policy.

Section 212 of the Local Government (General) Regulation 2005 states:

(1) The responsible accounting officer of a council:

(a) must provide the council with a written report (setting out details of all money that the council has invested under section 625 of the Act) to be presented:

(i) if only one ordinary meeting of the council is held in a month, at that meeting, or

(ii) if more than one such meeting is held in a month, at whichever of those meetings the council by resolution determines, and

(b) must include in the report a certificate as to whether or not the investment has been made in accordance with the Act, the regulations and the council’s investment policies.

(2) The report must be made up to the last day of the month immediately preceding the meeting.

Risk Management

Council manages the risk associated with investments by diversifying the types of investment, credit quality, counterparty exposure and term to maturity profile.

Council invests its funds in accordance with The Ministerial Investment Order.

All investments are made with consideration of advice from Council’s appointed investment advisor, CPG Research & Advisory.

Financial Considerations

The revised budget for interest on investments for the financial year 2018/2019 is $4,766,800. Of this amount approximately $3,376,300 is restricted for the benefit of future expenditure relating to development contributions, $569,100 transferred to the internally restricted Infrastructure & Facility Reserve, and the remainder of $821,400 is available for operations.

Social Considerations

Not applicable.

Environmental Considerations

Not applicable.

Community Consultation

None undertaken or required.

Internal Consultation

None undertaken or required.

Certification - Responsible Accounting Officer

I hereby certify that the investments listed in the attached report have been made in accordance with Section 625 of the Local Government Act 1993, clause 212 of the Local Government General Regulation 2005 and Council’s Investment Policy.

Summary

As at 31 March 2019:

· Council’s total cash and investment portfolio is $196,657,000.

· The net return on investments for the financial year to March 2019 was $4,319,000 against a revised budget of $3,490,000, giving a YTD favourable variance of $829,000.

Recommendation:

A. That the summary of investments and performance for March 2019 be received and noted.

B. That the Certificate of the Responsible Accounting Officer be noted and the report adopted.

Tony Ly

Financial Accounting Officer

Angela Apostol

Manager Finance

David Marshall

Director Corporate

Attachments:

A1⇩

Investments definitions specific to Council’s investment portfolio

2016/124274

Community Strategic Plan Long Term Objective	Delivery Program Term Achievement	Operational Plan Task
P5.1: Ku-ring-gai’s heritage is protected, promoted and responsibly managed.	P5.1.1: Strategies, plans and processes are in place to effectively protect ad reserve Ku-ring-gai’s heritage assets.	P55.1.1.6: Cultural and heritage assets in open space areas are protected, preserved, restored and maintained.

Ordinary Meeting of Council - 14 May 2019	GB.4 / 40

Item GB.4	FY00621

Monthly Project Status Report - April 2019

EXECUTIVE SUMMARY

purpose of report:	To provide Council with the Project Status Report for April 2019.

background:	On 22 May 2018, a Notice of Motion was considered by Council regarding the development of a monthly Project Status Report.

comments:	The Notice of Motion noted that while projects are reported to Council and the community through a number of other reports, the frequency of monthly reporting is a more reliable and recurring method to update Council and the community

recommendation:	That Council receive and note the Project Status Report for April 2019 and that Council support the report being presented every three (3) months.

Purpose of Report

To provide Council with the Project Status Report for April 2019.

Background

On 22 May 2018, a Notice of Motion (NOM) was considered by Council regarding the development of a monthly Project Status Report. As a result, Council resolved the following;

A. That a Capital and Operational Projects Report is to be tabled at an ordinary meeting of council each month. The reporting will commence in FY19 with a report for the period of July 2018.

B. That the report should include any progress made in the month as well as a progress summary for the financial year to date. Where there has been no progress in the month, it is acceptable to acknowledge that nothing has progressed. And where a project has yet to commence, it is acceptable to note the expected start date.

C. That council staff may use their discretion in deciding whether any additional columns of information should be presented.

D. That the reported projects should include, but are not limited to, those that are mentioned in Council’s Delivery Program and Operational Plan. For brevity, council staff may choose to aggregate some projects or set a reasonable threshold for reporting purposes.

E. That the current and historical monthly reports should be easily found on the Ku-ring-gai Council website (i.e. not just through searching council agenda items). One possibility is to create a page for the monthly Capital and Operational Projects Reports under “Current works and upgrades”.

F. That after the first six months of the report, the Councillors and Directors should discuss whether the frequency of the report should be adjusted.

In accordance with Part A of the resolution above the attached report is for the period April 2019. (Attachment A1)

Comments

Reporting on projects is currently undertaken through:

· Quarterly Financial Reports;

· Bi-annual reports on the progress of the Delivery Program & Operational Plan; and

· Annual Report.

The NOM noted that while projects are reported to Council and the community through these statutory reports, the frequency of monthly reporting is a more reliable and recurring method to update Council and the community.

The NOM guided the report structure and content for the monthly Project Status Report which Council staff has prepared based on the following criteria:

· Capital projects delivering community/public infrastructure;

· Threshold applied to total budget per project – greater than or equal to $250k;

· No operational projects are included; and

· Any specific project that Councillors wish to be included in the report.

The coordination of comments for progress of all projects is across various departments. It has been identified as a quite timely task resulting with minimal changes or comments between each Council report.

It is proposed to alter the reporting structure to Council, from monthly to quarterly. The next presentation of the Project Status Report would be 23 July 2019.

integrated planning and reporting

Leadership & Governance

Community Strategic Plan Long Term Objective	Delivery Program Term Achievement	Operational Plan Task
The organisation is recognised and distinguished by its ethical decision-making, efficient management, innovation and quality customer service.	Council's Governance framework is developed to ensure probity and transparency.	Business papers and associated minutes are published in an accurate and timely manner for public scrutiny and to encourage community participation.

Community Strategic Plan Long Term Objective

Delivery Program

Term Achievement

Operational Plan

Task

The organisation is recognised and distinguished by its ethical decision-making, efficient management, innovation and quality customer service.

Council's Governance framework is developed to ensure probity and transparency.

Business papers and associated minutes are published in an accurate and timely manner for public scrutiny and to encourage community participation.

Governance Matters

The Project Status Report will be submitted to Council the first meeting following the end of each month. This will ensure progress during the relevant month is captured within the Project Status Report.

Risk Management

The Project Status Report is not generated through Council’s corporate information and financial systems. As such, it is reliant of key staff to provide input and to critique.

The Project Status Report will be reviewed by the relevant Director and the General Manager prior to reporting to Council.

Financial Considerations

There are no financial implications associated with this report. The financial status, including allocated budgets of projects, is reported to Council through a range of statutory reporting:

· Delivery Program & Operational Plan , including adopted annual capital budget;

· Quarterly Budget Reports (projects proposed for budget adjustments);

· Bi-annual reports on the progress of the Delivery Program & Operational Plan; and

· Annual Report & Annual Financial Statements.

Social Considerations

Not applicable.

Environmental Considerations

Not applicable.

Community Consultation

Not applicable.

Internal Consultation

General Manager and Directors, along with staff from Corporate, Civic, Operations and Strategy & Environment have contributed to the structure and content of the Project Status Report.

Summary

On 22 May 2018, a Notice of Motion (NOM) was considered by Council regarding the development of a monthly Project Status ReportProjects are reported to Council and the community through a number of other reports quarterly, bi-annually and yearly. However, the frequency of monthly reporting has identified that minor changes are provided and it is proposed to consider reports to be presented on a quarterly basis.

The monthly Project Status Report for April 2019 has been prepared based on the following criteria:

· Capital projects delivering community/public infrastructure;

· Threshold applied to total budget per project – greater than or equal to $250k;

· No operational projects are included; and

· Any specific project that Councillors wish to be included in the report.

In accordance with Council’s resolution the attached report is for the period April 2019.

Recommendation:

A. That Council receive and note the Project Status Report for April 2019.

B. That the Project Status Report be placed on Council’s website.

C. That the reporting timeframe be changed from monthly to quarterly.

George Bounassif

Director Operations

Antony Fabbro

Acting Director Strategy & Environment

John McKee

General Manager

Attachments:

A1⇩

Monthly Project Status Update - April 2019.

2019/125782

Ordinary Meeting of Council - 14 May 2019	GB.5 / 48

Item GB.5	FY00382/11
	7 March 2019

Draft Revised Delivery Program 2018-2021 and Draft Operational Plan 2019-2020

EXECUTIVE SUMMARY

purpose of report:	To place Council's draft Revised Delivery Program 2018-2021 and draft Operational Plan 2019-2020, incorporating the Budget, Capital Works Program, Statement of Revenue Policy and Fees and Charges for 2019-2020, on public exhibition.

background:	Under the Local Government Act Council is required to have an annual Operational Plan adopted before the beginning of each financial year, and to review its adopted Delivery Program each year, when preparing the Plan. The development of the Delivery Program and Operational Plan has been informed by the community’s long term objectives contained in the Community Strategic Plan, Council policies and strategies, prioritisation of capital works projects, standards for the delivery of services and income from external sources.

comments:	The Operational Plan has been developed to facilitate the delivery of this Council’s term achievements, contained in its revised Delivery Program 2018–2021, while maintaining the key themes and any activities not yet completed. The Plan contains the services, projects and tasks to be undertaken by Council during the year, supported by an annual budget and works programs.

recommendation:	That the draft Revised Delivery Program 2018-2021, and draft Operational Plan 2019-2020, incorporating the Budget, Capital Works Program, Statement of Revenue Policy and Fees and Charges for 2019-2020, be endorsed and placed on public exhibition and that following public exhibition, a further report be submitted to Council for consideration of submissions and adoption of the revised Delivery Program 2018-2021 and Operational Plan 2019-2020, including Fees and Charges.

Purpose of Report

Background

In 2018 Council adopted a new suite of strategic plans that form the Integrated Planning and Reporting (IP&R) framework under the Local Government Act 1993. These documents include:

· the Community Strategic Plan ‘Our Ku-ring-gai 2038’;

· the Delivery Program & Operational Plan; and

· the Resourcing Strategy.

The Integrated Planning and Reporting requirements of the Local Government Act require Council to have an annual Operational Plan adopted before the beginning of each financial year, including details of Council’s activities to be undertaken that year, as part of the Delivery Program.

Council is also required to review its adopted Delivery Program each year, when preparing its Operational Plan. Once endorsed by Council the combined program and plan must be placed on public exhibition for a minimum period of twenty-eight (28) days to allow for community feedback.

The development of the revised Delivery Program and Operational Plan has been informed by the community’s long term objectives contained in the Community Strategic Plan, Council policies and strategies, prioritisation of capital works projects, service delivery standards, income from external sources and fees and charges.

Comments

Attachment A1 provides a copy of the draft Revised Delivery Program 2018-2021 and draft Operational Plan 2019-2020 incorporating the Budget, Capital Works Program and Statement of Revenue Policy.

Attachment A2 provides a copy of the draft Fees and Charges for 2019 – 2020, which is exhibited in a separate document.

The combined Delivery Program and Operational Plan contains Council’s term achievements for 2018 – 2021 along with an annual Operational Plan which details the services, projects and actions to be undertaken by Council during the second year of the Delivery Program. It has been developed to mirror the six (6) themes contained in the Community Strategic Plan and includes:

· Community, People and Culture

· Natural Environment

· Places, Spaces and Infrastructure

· Access, Traffic and Transport

· Local Economy and Employment

· Leadership and Governance

Preparation of the combined document included:

· A review of Council’s three year term achievements with no changes proposed;

· preparation of one year tasks representing Council’s services, identified major capital projects, a capital works program, operational projects and one off actions proposed for the year;

· implementation actions for Council policies and strategies as well as regional and state government strategies and legislation;

· a review of performance measures, established base line data and targets;

Organisational performance will be measured through the achievement of the one year tasks as well as performance indicators under each theme, developed to provide both qualitative and quantitative information back to the community.

IPART’s determination of application to continue the Environmental Levy

Council’s application for a permanent extension of the environmental levy was submitted to IPART in February 2019. Formal notification of IPART’s determination of Council’s application will not be provided until Tuesday, 14 May 2019.

The draft documents have been completed and included in Council’s 14 May Business Paper ahead of IPART’s formal notification to Council. To address this issue relevant sections of the documents incorporate discussion of two environmental levy scenarios, with and without an extension, and potential implications for Council’s current environmental programs.

Following IPART’s formal notification to Council it is proposed to include a statement in the exhibited documents, advising the community of IPART’s decision, and that any implications of the decision will be reported back to Council as part of the post-exhibition report in June 2019.

integrated planning and reporting

Leadership and Governance

Community Strategic Plan Long Term Objective

Delivery Program

Term Achievement

Operational Plan

Task

L1.1 – A shared long term vision for Ku-ring-gai underpins strategic collaboration, policy development and community engagement.

L1.1.1 – The priorities of our community are reflected in the Ku-ring-gai Community Strategic Plan and inform Council’s policy development, decision-making and program delivery.

L1.1.1.2 - Prepare Integrated Planning and Reporting documents and complete all statutory reporting required under the Local Government Act 1993 and Integrated Planning and Reporting Framework.

Governance Matters

Under the NSW Local Government Act and associated Integrated Planning & Reporting guidelines Council is required to prepare, exhibit and adopt a revised Delivery Program and new Operational Plan before 30 June 2019. The document must be placed on public exhibition for a minimum period of twenty-eight (28) days to allow for community feedback. It is proposed to exhibit the program and plan for 28 days from Thursday, 16 May to Wednesday, 12 June and report any submissions and proposed changes back to Council’s Ordinary Meeting of 25 June, 2019.

Risk Management

Council has a statutory obligation to review its Delivery Program and prepare an Operational Plan, and for them to be placed on public exhibition, for community feedback to be considered, and for the plans to be adopted by 30 June 2019.

The draft Delivery Program 2018-2021 and draft Operational Plan 2019-2020 must be informed by the Community Strategic Plan and follow the requirements of the Local Government Act 1993.

Financial Considerations

Ku-ring-gai Council is in a sound financial position. The 2019/20 budget provides for an operating surplus of $30 million after allowing for the depreciation expense on Council’s $1.353 billion portfolio of largely depreciable assets such as roads, footpaths, drains and buildings. If capital grants and contributions are excluded, the operating result remains in surplus, with a result of $10.91 million. This is consistent with Council’s long term financial plan which provides a framework to achieve continued operating surpluses.

The Operating Surplus contributes to Council’s capital works program. In 2019/20 the capital works program is $59.47 million. Details of the capital works program for 2019/20 can be found in the following pages.

Council’s long term financial plan and budget ensures that Council maintains adequate liquidity. This is demonstrated by the Unrestricted Current Ratio, for which the industry benchmark of greater than 1.5:1 is considered to be “Satisfactory” and greater than 2:1 to be “Good”. Council’s budget maintains a “Good” Unrestricted Current Ratio that is greater than 2:1.

Council’s 2019/20 budget provides for loan capital repayment of $1.2 million. The outstanding loan is discharged by revenue from general funds provided by the future net revenue generated from leasing out the investment property at 828 Pacific Highway, Gordon.

Council collects S.7.11 (former S 94) contributions from developers to help pay for new infrastructure and facilities for the growing population of the area. Some of the works to be undertaken in the Contributions plan cater for the existing population and these works require a co-contribution from Council’s general funds. Some contributions will also be derived from development partners for the major local centre projects. The works programmed to be undertaken over the next year are shown below:

Council’s total Rates income is ‘pegged’ by the State Government and approval must be obtained for increases above this amount (known as Special Rates Variations).

In the 2019/20 budget the projected Rates income is $65.6 million. This amount includes the permanent existing Special Rates Variations for Infrastructure and assumed continuation of the Environmental Levy. Council applied to IPART for a permanent continuation of the Environmental Levy and is expecting a decision in mid May 2019.

A summary of Council’s Funding Statement for the next two years is provided below:

Budget principles

Council’s budget for 2019-2020 is developed using the 10 Year Long Term Financial Plan (LTFP). The LTFP principles and financial sustainability tests applied in developing next year’s budget and future financial planning are outlined in Council’s Resourcing Strategy. In summary these are:

1. maximise funds available for projects to renew infrastructure;

2. satisfy applied tests of financial sustainability; and

3. a borrowing and loan repayment strategy.

The draft 2019-2020 budget has been developed to ensure that the LTFP financial targets are met and maintained in the future.

Major assumptions of the 2019-20 budget include:

· CPI of 2.2% applied;

· the Independent Pricing and Regulatory Tribunal (IPART) approved rate pegging increase of 2.7%;

· no price increase for domestic waste charges;

· fees and charges increased by an average of 2.4%;

· interest on investments estimated at 3.1%;

· employee costs increase of 3.3%;

· capital works and operational projects program of $64.9million; and

· Section 7.11 (Development Contributions) revenue of $18.9 million transferred to externally restricted reserves and expenditure of $32.7 million from these reserves.

Rating Structure 2019-2020

Each year the NSW Government approves a maximum percentage increase in the total income a council can receive from rates, known as the ‘rate-peg’. The rate peg for 2019-2020 has been determined by IPART at 2.7% and this percentage increase has been applied to Council’s rates.

Ordinary General Residential and Business Rates, plus the special ‘Infrastructure – Primary Rate’ together represent the total notional rates income of Council excluding the rates received from the two special rate variations. The rates structure represented in the table below divides this amount into the Ordinary Rates (59%) and ‘Infrastructure – Primary Rate’ (41%).

Pending the final decision from IPART in mid May 2019, two scenarios are presented below:

§ rates structure with the continuation of the Environmental Levy, and

§ rates structure without the continuation of the Environmental Levy.

Rates Structure including Rate Pegging increase of 2.7% (with the Environmental Levy)

Should Council be successful in its application to IPART for a permanent continuation of the Environmental Levy, the following rates structure will be adopted:

Under this rates structure, Council will grant a voluntary pensioner rebate (in addition to the Statutory Rebate) of 8.5% of the total rates and charges. This voluntary rebate will apply to pensioners who are eligible for the Statutory Rebate.

Rates Structure including Rate Pegging increase of 2.7% (without the Environmental Levy)

Should Council be unsuccessful in its application to IPART for a permanent continuation of the Environmental Levy, the following rates structure will be adopted:

Under this rates structure, Council will grant a voluntary pensioner rebate (in addition to the Statutory Rebate) of 5% of the total Council rates and charges. The decrease in the rebate is due to the expiring Environmental levy. The ratepayers in this category are currently granted a voluntary Council rebate of the whole levy and if the levy is no longer charged the component of their total rebate will also be withdrawn.

Stormwater management charge

The stormwater management service charge for 2019-2020 is levied under Section 496A of the Local Government Act 1993 (as amended).

The charges have been set in accordance with the Local Government Amendment (Stormwater) Bill 2005 and for 2019-20 are as follows:

Strata/Company titled residential home units: $12.50 per unit

Other residential property: $25.00 per rateable property

Business rateable property: $25.00 per 350 square metres of land area (a maximum charge of $1,500.00 applies to land area greater than 21,000 square metres).

Strata/Company titled business units: A minimum of $5.00 or the relevant portion of the maximum annual charge that would apply to the land subject to the strata scheme if it were a parcel of land subject to the Business rateable property charge.

Waste management charge – for business properties

The waste management charge for 2019/2020 is levied under Section 501 of the Local Government Act 1993 (as amended).

Council’s annual waste management charges include a charge for waste management per business service provided. Upon request, a 120L waste bin to be emptied weekly will be provided. In 2019/2020 this charge will be $270 per service.

The charge for aged care/nursing homes rated as business properties will be $270 per service. The service is:

· equivalent of 120 litres of waste per service per week; and

· equivalent of 120 litres of recycling per service per week.

Domestic waste management charge

Sections 496 and 504 of the Local Government, Act 1993 (as amended) require councils to make and levy an annual charge for the provision of domestic waste (DWM) service for each parcel of rateable land for which the service is available, ensure that the cost of providing the service is met by the charge and that the charge is reasonable for the services provided. A council cannot use income from its ordinary rate towards the cost of providing DWM services.

Charges for 2019 - 2020 are shown below:

Note: For Aged Care/Retirement villages rated as Residential Properties, charge is applied per service as follows:

• base service without green waste plus $152.50 (being 50%) for each additional service – 1 x bed self-care unit; and

• base service without green waste plus $76.25 (being 25%) for each additional service – 1 x bed fully serviced hostel room.

Note: For Aged Care/Retirement villages exempt from rating, charge is applied under Section 496(2) per service as follows:

• base service without green waste plus $152.50 (being 50%) for each additional service – 1 x bed self-care unit; and

• base service without green waste plus $76.25 (being 25%) for each additional service – 1 x bed fully serviced hostel room.

Fees and charges schedule for 2019 - 2020

The draft Delivery Program and draft Operational Plan includes a range of proposed increases to current fees and charges in 2019-2020. Underlying these is the draft pricing methodology in relation to fees and charges which are not prescribed by legislation. The pricing methodology seeks to ensure Council recovers its costs in delivering of services, while also allowing for fees and charges to be discounted, where appropriate, in recognition of Council’s community service obligations.

Council’s Fees and Charges have been increased where appropriate. Fees that have not been subject to an annual increase include Statutory and Regulatory Fees, Development Contributions and those where it was not commercially viable to do so. Attachment A2 provides the 2019-2020 draft Fees and Charges Schedule.

Social Considerations

The Community Strategic Plan ‘Our Ku-ring-gai 2038’ sits above all other Council plans and policies. The purpose of the Community Strategic Plan is to identify the community’s vision, long term objectives and priorities for Ku-ring-gai’s future and plan strategies to achieve them.

The draft Revised Delivery Program and draft Operational Plan have been developed to progress, during this Council’s term, the long term objectives contained in the Community Strategic Plan and achieve Council’s strategies and term achievements.

Environmental Considerations

The Delivery Program & Operational Plan detail specific community objectives and organisational tasks required through the continuation of the Special Rate Variation for the Environment (Environmental Levy). Formal notification of IPART’s determination of Council’s application to continue the levy will be provided in May 2019.

Community Consultation

The draft Revised Delivery Program and draft Operational Plan will be placed on public exhibition for a period of 28 days, and during this period input from the community will be sought, considered and reported back to Council in June 2019.

It is the responsibility of Council to consider all submissions made during the exhibition period, prior to adopting the Delivery Program and Operational Plan. Feedback received during the exhibition period will be reported back to Council with recommendations.

Internal Consultation

Councillors have been briefed on the budget parameters for 2019-2020.

Consultation has taken place across the organisation in preparation of the draft Revised Delivery Program and draft Operational Plan, including preparation of the budget and revenue policy, development of tasks and review of performance measures.

Summary

In June 2018 Council adopted its three (3) year Delivery Program and annual Operational Plan.

The adopted Delivery Program has been reviewed and a new Operational Plan developed for 2019-2020 in accordance with the Local Government Act. The Operational Plan is the second plan developed for Council’s three year Delivery Program.

As required by legislation these documents must be placed on public exhibition for a minimum period of twenty-eight (28) days to allow for community feedback.

It is recommended that the revised Delivery Program 2018-2021 and draft Operational Plan 2019-2020, incorporating the Budget, Capital Works Program, Statement of Revenue and Fees and Charges for 2019-2020, be placed on public exhibition for twenty-eight (28 days) and that following the consultation a further report be brought back to Council.

Recommendation:

A. That the report on Council’s draft Revised Delivery Program 2018-2021 and draft Operational Plan 2019-2020, be received and noted.

B. That pursuant to Sections 404 and 405 of the Local Government Act, 1993, the draft Revised Delivery Program 2018-2021, and draft Operational Plan 2019-2020, incorporating the Budget, Capital Works Program, Statement of Revenue Policy and Fees and Charges for 2019-2020 be endorsed and placed on public exhibition for a minimum period of 28 days.

C. That following public exhibition, a further report be submitted to Council to consider any submissions and to adopt the draft Revised Delivery Program 2018-2021, and draft Operational Plan 2019-2020, including Fees and Charges for 2019-2020.

D. That a notification be inserted into the exhibition documents, advising the community of IPART’s decision in relation to Council’s application to continue the Environmental Levy, with advice that any implications of the decision will be reported back to Council in June 2019 as part of the post-exhibition report.

Helen Lowndes

Integrated Planning Co-ordinator

Mette Kofoed

Strategic Management Accounant

Angela Apostol

Manager Finance

David Marshall

Director Corporate

Antony Fabbro

Acting Director Strategy & Environment

Attachments:	A1⇩	Revised Delivery Program 2018-2021 and Operational Plan 2019-2020 - Draft May 2019		2019/125792
	A2 ⇩	Draft Fees & Charges 2019/2020 - Public		2019/089185

APPENDIX No: 1 - Revised Delivery Program 2018-2021 and Operational Plan 2019-2020 - Draft May 2019

Item No: GB.5

PDF Creator

Ordinary Meeting of Council - 14 May 2019	GB.6 / 247

Item GB.6	S11276

Revised Resourcing Strategy 2019 - 2029

EXECUTIVE SUMMARY

purpose of report:	For Council to adopt the Revised Resourcing Strategy 2019 – 2029 incorporating the Long Term Financial Plan, Asset Management Strategy and Workforce Management Strategy.

background:	The current Resourcing Strategy was adopted by Council in June 2018 as part of a new suite of strategic plans for Ku-ring-gai that form the Integrated Planning and Reporting Framework under the Local Government Act 1993. The Act requires Council to have a Resourcing Strategy which supports the Community Strategic Plan and the Delivery Program and to review the Strategy each year as part of the review of its Delivery Program.

comments:	Revisions to the components of the Resourcing Strategy reflect updated expenditure figures, changes to figures in our asset registers, progression of works in the Asset Management Improvement Plan and updated workforce planning statistics.

recommendation:	That Council adopt the Revised Resourcing Strategy 2019 – 2029 incorporating the Long Term Financial Plan, Asset Management Strategy and Workforce Management Strategy.

Purpose of Report

For Council to adopt the Revised Resourcing Strategy 2019 – 2029 incorporating the Long Term Financial Plan, Asset Management Strategy and Workforce Management Strategy.

Background

In June 2018 Council adopted a new suite of documents that form the Integrated Planning and Reporting (IP&R) framework. These documents included:

· The Community Strategic Plan – Our Ku-ring-gai 2038;

· The Delivery Program 2018 – 2021 & Operational Plan 2018-2019; and

· The Resourcing Strategy 2018 - 2028.

These plans are developed concurrently with the other plans of the IP&R framework.

The Resourcing Strategy is the link between the long-term Community Strategic Plan and the medium-term Delivery Program and details how the strategic aspirations of Ku-ring-gai can be achieved in terms of time, money, people and assets. The Resourcing Strategy is comprised of the following components:

· 10-year Long-term Financial Plan;

· 10-year Asset Management Strategy; and

· 10-year Workforce Management Strategy

The Resourcing Strategy is designed to be a living document to reflect changing financial and asset information. Initiatives within the Resourcing Strategy are reviewed annually to ensure relevance in the changing environment and to respond to any changes in Council’s Delivery Program.

Comments

A copy of the Revised Resourcing Strategy 2019-2029 is attached in four parts:

Attachment A1 – Introduction

Attachment A2 - Long Term Financial Plan

Attachment A3 - Asset Management Strategy

Attachment A4 - Workforce Management Strategy.

Long-Term Financial Plan (LTFP)

The Long Term Financial Plan (LTFP) is Council’s 10 year financial planning document with an emphasis on long-term financial sustainability. Financial sustainability is one of the key issues facing local government due to several contributing factors including cost shifting from other levels of government, ageing infrastructure and constraints on revenue growth. A financially sustainable Council is one that has the ability to fund on-going service delivery and renew and replace assets without imposing excessive debt or rate increases on future generations.

This is an important document, which tests the community aspirations and goals against financial realities. Contained in this plan are:

· projected income and expenditure, balance sheet and cash-flow statements;

· assumptions used to develop the plan;

· sensitivity analysis – highlight factors most likely to affect the plan;

· financial modelling for different scenarios;

· methods of monitoring financial performance.

Balancing expectations, uncertainty of future revenue and expenditure forecasts is one of the most challenging aspects of the financial planning process. As such, the longer the planning horizon, the more general the plan will be in the later years.

The LTFP has been revised to present the most current estimates and project scopes.

Asset Management Strategy (AMS)

The Asset Management Strategy includes the following:

· Asset Management Policy; and

· Asset Management Strategy.

The Asset Management Policy sets out principles, requirements and responsibilities for implementing consistent asset management processes throughout Council. It also ensures that Council, as the custodian of public infrastructure, has mechanisms in place to deliver infrastructure services in the most effective manner.

The AMS establishes the current condition and value of all assets; the preferred condition and level of service of all assets; and the systems, resources, processes and financing options to achieve the preferred condition and level of service.

The AMS is supported by Asset Management Plans for each asset class which are regularly reviewed. Together, these documents and our processes, data and systems (including asset registers and technical databases) make up Council’s Asset Management Framework.

The AMS has been revised to align with Councils updated Long Term Financial Plan. The capital expenditure figures and the required renewal costs have been included in the AMS to establish Council’s funding gap for infrastructure assets.

The Asset Management Improvement Plan, which is included in the AMS, has also been updated to reflect progression and allocate responsibilities.

Workforce Management Strategy (WMS)

The Workforce Management Strategy establishes a framework for building the capability of our workforce to provide Council with the people best able to inform its strategic direction, develop innovative approaches to complex issues, and deliver appropriate services effectively and efficiently. The WMS provides a link between service and strategic objectives and associated workforce implications and also spans 10 years.

The WMS has been revised to reflect current workforce statistics.

integrated planning and reporting

Leadership and Governance

Community Strategic Plan Long Term Objective

Delivery Program

Term Achievement

Operational Plan

Task

L1.1 – A shared long term vision for Ku-ring-gai underpins strategic collaboration, policy development and community engagement.

L1.1.1 – The priorities of our community are reflected in the Ku-ring-gai Community Strategic Plan and inform Council’s policy development, decision-making and program delivery.

L1.1.1.2 - Prepare Integrated Planning and Reporting documents and complete all statutory reporting required under the Local Government Act 1993 and Integrated Planning and Reporting Framework.

Governance Matters

Section 403 of the Local Government Act, 1993, requires that Council has a long term Resourcing Strategy for the provision of the resources required to implement the strategies established in its Community Strategic Plan. The Resourcing Strategy includes long term financial planning, asset management planning and workforce management.

The Integrated Planning and Reporting guidelines under Section 406 of the Local Government Act, 1993, requires Council to review the strategy each year as part of its review of the Delivery Program.

The Local Government Code of Accounting Practice and Financial Reporting requires Council to report, in the annual financial statements, the condition of Council’s assets.

Risk Management

Council has a statutory obligation to prepare and adopt a Resourcing Strategy at the beginning of its term, and to review the strategy each year.

Risk management is a significant part of the development of the Resourcing Strategy and the identified risks are included in each component document.

Financial Considerations

Council’s LTFP quantifies the cost of Council’s services and capital expenditure for the next 10 years.

A portfolio of all project proposals has been developed, including estimates of costs and funding sources to determine current and future funding requirements. This project portfolio has been linked to the LTFP.

The plan contains a series of assumptions. Year 1 of the LTFP – 2019/20 is the draft budget for the next financial year and is based on Council’s current revised budget. Years two (2) to ten (10) are calculated by extrapolating the budgets across each of the remaining years using these assumptions and known changes.

Council’s Asset Management Strategy (AMS) is being progressively developed to identify the level of funding required to adequately maintain community assets and the most effective way of applying funds to ensure these assets continue to provide the level of service the community expects from them.

The LTFP has incorporated a principle of applying any otherwise surplus funding in future years to closing the asset renewal gap as a priority. Council adopted a “Road to Sustainability” funding strategy. This strategy looks to address the infrastructure backlog and invest additional funding in infrastructure renewal as a priority.

Council has resolved to apply to IPART under Section 508(2) of the Local Government Act to continue the special rate variation for the Environment (Environmental Levy) permanently. This rate income is devoted to expenditure for environmental programs and works and has been in place since 2005, however is due to expire in June 2019. The renewal request is for a permanent levy. Formal notification of IPART’s determination of Council’s application will not be provided until 14 May.

Pending the final decision from IPART two scenarios are incorporated into the Delivery Program and Operational Plan and are also detailed in the Resourcing Strategy:

Scenario 1 - Base Case Scenario without the Special Rate Variation (SRV) for the Environment (Environmental Levy)

This scenario can be delivered without approval of the special rate variation application. It involves reduced rates collections compared to 2019/20 as the special rate variation component of Council’s Environmental Levy, totalling approximately $3.1million per annum would be eliminated together with the associated environmental works that this funds. Without this additional funding for environmental works, the quality of our natural environment, including our waterways and bushland, would decline, as well as the environmental performance of our buildings; support for community programs would decrease; the operational cost savings realised through Levy initiatives would fall; and the essential service functions provided by levy funded staff would be significantly compromised. The impact of this scenario is discussed in more detail in the LTFP.

Scenario 2: Scenario with the Special Rate Variation (SRV) for the Environment (Environmental Levy)

This scenario requires approval from IPART of Council’s special rate variation renewal application. It would mean that existing levels of rates income would be maintained and the existing level of funds available for environmental program and works be maintained. This amount is estimated at $3.1 million for 2019/20 and grows in future years with estimated rates pegging and property growth. This scenario is Council’s preferred one and is also considered sustainable. The impact of this scenario is discussed in more detail in the LTFP.

Should Council’s application to IPART be successful, Council will adopt Scenario 2 in its LTFP - Scenario with the continuation of the Special Rate Variation (SRV) for Environment (Environmental Levy). Should the application be unsuccessful Council will adopt Scenario 1 in its LTFP - Scenario without the continuation of the Special Rate Variation (SRV) for Environment (Environmental Levy).

Highlights and significant changes to the Long Term Financial Plan

The following LTFP highlights are based on Council’s preferred scenario from above, where the Environmental levy (special rate variation) is renewed.

· A recurrent operating surplus before capital income and asset sales is achieved in all years to fund capital works.

· All Fit for the Future KPIs are met during the life of this Plan.

· Additional funds (above the standard renewal program) of $67 million over 10 years identified through the “Road to Sustainability” funding strategy to be redirected to infrastructure assets renewal from 2019/20 onwards contributing to closing the infrastructure backlog by the end of the financial plan.

· “Road to Sustainability” funding strategy identifies additional funding from the following initiatives and sources:

- Horizontal service review - a combination of additional operating revenue and decreases in operating expenditure.

- Divestment of assets - proceeds from asset sales.

- Property Development Reserve - interest earned from investing proceeds from asset sales - Council has established a Property Development Reserve in the Long Term Financial Plan, accumulated from the proceeds of asset sales. This reserve is created to ensure that Council has sufficient funds in reserve to insulate against the financial risks of development of three local centre revitalisation projects over the next 10 years. These projects are major developments in Lindfield, Turramurra and Gordon that will provide civic improvements and community facilities.

· A total of $124 million will be allocated to asset maintenance over 10 years, $187 million to asset renewals and $152 million (excluding Local Centre Major Projects) to build new or upgrade existing assets.

· Continuation of a permanent special rate variation for environmental programs and works (Environmental levy) of $3.1 million in 2018/19 and growing in future years. This is subject to approval from IPART.

· Maintaining a working capital target of $5.1 million in 2019/20, this is maintained at 5.5% of operating expenses (excluding depreciation).

· S94 Contributions Plan Projects totalling expenditure from S94 reserves of $293 million over 10 years. These works are included in the Plan on the proviso that future asset sales will be made to fund the estimated funding gap of projects that require a co-contribution from Council. ($16 million over 10 years).

·Delivery of a total capital works and other major projects program over 10 years totalling almost $664 million (at future prices). Some significant projects included in this and delivered within the next 10 years are:

- Implementation of Koola Park Master Plan

- Putarri Reserve

- Implementation of St Ives Village Green Master Plan

- Lindfield Village Green

- Lindfield Village Hub

- Turramurra Community Hub

- Construction of St Ives Showground Regional Play Space

- Construction of new park at Duff Street & Allan Avenue, Turramurra

- Marian Street Theatre, Marian Street, Killara – refurbishment of Marian street theatre.

- Joint use indoor sports facility - St Ives Indoor Sports Complex, St Ives High School, Horace Road, St Ives

- Gordon Recreation Area – Masterplan Implementation

The full list of capital and operating projects proposed for the next two years is provided in the Delivery Program 2018-2021 and Operational Plan 2019 -2020.

Social Considerations

The Resourcing Strategy has been developed to implement strategies to achieve the long term objectives established in Council’s Community Strategic Plan – Our Ku-ring-gai 2038.

Environmental Considerations

The Resourcing Strategy supports the continuation of the SRV for the Environment (Environmental Levy). Council made application to IPART in early 2019 for the permanent continuation of the Levy.

Formal notification of IPART’s decision on Council’s application is expected in May 2019.

Community Consultation

Extensive community engagement was undertaken by Council as part of the preparation and exhibition of the IP&R suite of plans, adopted by Council in 2018. This included the Resourcing Strategy. No further consultation is required for the review of the Strategy.

Internal Consultation

Councillors have been briefed on any changes to financial and budget parameters as part of the review of the Delivery Program and preparation of the Operational Plan, reported separately to this meeting. Consultation has taken place with relevant departments in the review of the Strategy.

Summary

The revised Resourcing Strategy includes the components of the Long Term Financial Plan, Asset Management Strategy and the Workforce Plan. These components are integrated and need to be revised annually to incorporate updated asset and financial information.

Revisions to the components of the Resourcing Strategy reflect updated expenditure figures from Council’s audited Financial Statements for 2017/18, changes to figures in our asset registers, progression of works in the Asset Management Improvement Plan and updated workforce planning statistics.

It is recommended that the revised Resourcing Strategy be adopted.

Recommendation:

That pursuant to Sections 403 and 406 of the Local Government Act, 1993, Council adopts the Revised Resourcing Strategy 2018-2028, incorporating the Long Term Financial Plan, Asset Management Strategy and Workforce Management Strategy.

Helen Lowndes

Integrated Planning Co-ordinator

Angela Apostol

Manager Finance

Jennie Keato

Manager People and Culture

Antony Fabbro

Acting Director Strategy & Environment

David Marshall

Director Corporate

Attachments:	A1⇩	Resourcing Strategy 2019-2029: Introduction Section. Adopted June 2018. Revised May 2019.	2019/125736
	A2⇩	Long Term Financial Plan 2019-2029 - Adopted June 2018. Revised May 2019.	2019/125871
	A3 ⇩	Asset Management Strategy 2019-2029 - Adopted June 2018. Revised May 2019.	2019/125972
	A4 ⇩	Workforce Management Strategy 2019-2019. Adopted June 2018. Revised May 2019.	2019/125307

Ordinary Meeting of Council - 14 May 2019	GB.3 / 37

Item GB.3	S03527