SHOALHAVEN CITY COUNCIL

POLICY & RESOURCES COMMITTEE

To be held on Tuesday, 10 February, 2015 Commencing at 4.00 pm

4 February, 2015 Councillors,

NOTICE OF MEETING

You are hereby requested to attend a meeting of the Policy and Resources Committee of the Council of the City of Shoalhaven, to be held in the Council Chambers at the City Administrative Centre, Bridge Road, Nowra on Tuesday, 10 February, 2015 commencing at 4.00 pm for consideration of the following business.

R D Pigg General Manager Membership (Quorum – 5) Clr Wells – Chairperson All Councillors General Manager or nominee

BUSINESS OF MEETING 1. Apologies 2. Adoption of Minutes of Previous Meeting 3. Declarations of Interest 4. Deputations 5. Councillor Reports on Conferences 6. Report of the General Manager Corporate and Community Services Planning and Development 7. Addendum Reports

Delegation:

Pursuant to S377 of the LG Act this Committee has delegated authority to determine all matters able to be delegated in respect of its functions.

Functions:

• To make recommendations on the exercise of all powers vested in Council under any Statutes, By-Laws or Regulations in relation to Council’s operational functions; • To consider, formulate and review Policies in relation to Council’s operational function and all matters within the Committees responsibilities and recommend to Council; • To consider and recommend the introduction of new fees or charges or the alteration of existing fees and charges for inclusion in the next Operational Plan; • To consider all matters in relation to the Community Strategic Plan, Delivery Program, Operational Plan and Resourcing Strategy and recommend to Council; • To monitor, review and develop matters of relevance in respect of the operations and strategic direction of Council’s Holiday Haven Tourist Parks Group and • To recommend to Council on all matters relating to the management and facilities provided on all Crown Reserve Trust Land where Council is the Trust Manager; • To provide corporate direction for the Shoalhaven Water Group to the exercise of powers vested in Council under any statutes or regulations affecting the construction, alteration or maintenance of water and sewerage works and effluent works and pump out removal; • To authorise the expenditure funds raised under Section 64 - LG Act within the limits established by Council; • To recommend Fees and Charges for the Water and Wastewater services provided; • To develop implement and review strategic policies for water, sewerage and effluent operations; • Be responsible for policy review and development for matters within the Committee’s responsibilities.

Note: The attention of Councillors is drawn to Section 451 of the Local Government Act and Regulations and Code of Conduct regarding the requirements to declare pecuniary and non- pecuniary Interest in matters before Council.

Cell Phones: Council’s Code of Meeting Practice states that “All cell phones are to be turned off for the duration of the meeting”. LOCAL GOVERNMENT ACT 1993

Chapter 3

Section 8(1) - The Council’s Charter

(1) The council has the following charter:

• to provide directly or on behalf of other levels of government, after due consultation, adequate, equitable and appropriate services and facilities for the community and to ensure that those services and facilities are managed efficiently and effectively

• to exercise community leadership

• to exercise its functions in a manner that is consistent with and actively promotes the principles of multiculturalism

• to promote and to provide and plan for the needs of children

• to properly manage, develop, protect, restore, enhance and conserve the environment of the area for which it is responsible, in a manner that is consistent with and promotes the principles of ecologically sustainable development

• to have regard to the long term and cumulative effects of its decisions

• to bear in mind that it is the custodian and trustee of public assets and to effectively account for and manage the assets for which it is responsible

• to facilitate the involvement of councillors, members of the public, users of facilities and services and council staff in the development, improvement and co-ordination of local government

• to raise funds for local purposes by the fair imposition of rates, charges and fees, by income earned from investments and, when appropriate, by borrowings and grants

• to keep the local community and the State government (and through it, the wider community) informed about its activities

• to ensure that, in the exercise of its regulatory functions, it acts consistently and without bias, particularly where an activity of the council is affected

• to be a responsible employer.

TABLE OF CONTENTS

MINUTES OF THE POLICY & RESOURCES COMMITTEE - TUESDAY, 20 JANUARY, 2015 1 COUNCILLOR REPORTS ON CONFERENCES ...... 7 ITEM TO BE DEALT WITH UNDER DELEGATED AUTHORITY ...... 7 1. Biomarine Business Convention File 4688E ...... 7 GENERAL MANAGER ...... 8 ITEMS TO BE REFERRED TO ORDINARY MEETING ...... 8 2. “Beyond Nerriga” Report - Implications for Council File 1466E, 40290E ...... 8 3. Blue BioTech Shoalhaven - Project update File 48687E/2 ...... 14 4. Second Quarter report on Delivery Program & Operational Plan 2014 - 2015 File 45907E ...... 23 CORPORATE AND COMMUNITY SERVICES ...... 25 ITEMS TO BE REFERRED TO ORDINARY MEETING ...... 25 5. Beach Patrol Services - 2014/15 to 2020/21 File 42196e ...... 25 6. Successful Grant Funding – NSW Government Public Reserves Management Fund Program (Round 2) File 26467E, 3220E ...... 34 7. Ulladulla Sports Park - Access Road / Carpark and Netball Courts File 1783E ...... 35 8. Quarterly Budget Review as at 30 December 2014 File 2127e ...... 39 9. Consideration of Petition - Sussex Inlet Gymnasium - Sussex Inlet Aquatic Centre File 1828E, 20696E ...... 56 PLANNING AND DEVELOPMENT ...... 59 ITEMS TO BE DEALT WITH UNDER DELEGATION OF COUNCIL ...... 59 10. Floodplain Risk Management Options Feasibility Study File 46971E ...... 59 11. Flood and Coastal Programs – Response to Changes to Sea Level Rise Projections File 4355e, 30596e ...... 63 12. South Coast Regional Sea Level Rise Planning and Policy Response Framework File 30596E ...... 67

Table of Contents

MINUTES OF THE POLICY & RESOURCES COMMITTEE MEETING HELD ON TUESDAY, 20 JANUARY, 2015 IN THE COUNCIL CHAMBERS, CITY ADMINISTRATIVE CENTRE, BRIDGE ROAD, NOWRA COMMENCING AT 4.00 PM

The following members were present;

Clr Wells – Chairperson Clr Gash Clr Tribe Clr Kearney Clr Baptist Clr White Clr Anstiss Clr Findley Clr Watson Clr Kitchener Craig Milburn – Acting General Manager

Apologies:

Apologies were received from Clr Guile and Clr Robertson.

1. Confirmation of the Minutes of the Resources & Reserves Committee meeting held on Tuesday 9 December 2014 Index

MOTION: Moved: White / Second: Baptist

RESOLVED that the Minutes of the Policy & Resources Committee meeting held on Tuesday 9 December 2014 be confirmed.

CARRIED

COUNCILLOR REPORTS ON CONFERENCES

2. National Roads & Transport Congress File 4688e Index

MOTION: Moved: White / Second: Kearney

RESOLVED, in accordance with the Committee’s delegated authority from Council, that the report from Clr Wells and Clr White be received for information.

CARRIED

Minutes of the Policy and Resources Committee-20 January 2015 Page 1

CORPORATE AND COMMUNITY SERVICES

3. Revaluation of Properties in the Shoalhaven City for Rating Purposes File 27793E Index

MOTION: Moved: Baptist / Second: White

RESOLVED, in accordance with the Committee’s delegated authority from Council, that Council accept the information provided in this report as an accurate account of the effect of the land valuations as determined by the Valuer General for rating purposes for the years 2015/16, 2016/17 and 2017/18.

CARRIED

4. Fee Waiver Request – Nowra Showground Committee Rooms - Soup Kitchen for the Homeless and Underprivileged Persons File 15224e Index

MOTION: Moved: Findley / Second: Kitchener

RESOLVED, in accordance with the Committee’s delegated authority from Council, the Committee waive the fee of $2,106 for the hire of the Nowra Showground Committee Rooms for the purpose of a weekly soup kitchen for homeless and underprivileged persons commencing 17 April to 18 December 2015.

CARRIED

5. Beach Reserve – All Inclusive Playground - Partnership Touched by Olivia Foundation Limited File 29245E Index

MOTION: Moved: White / Second: Baptist

RESOLVED, in accordance with the Committee’s delegated authority from Council, that the Committee endorse the General Manager to enter into a Memorandum of Understanding with Touched by Olivia Foundation Limited to assist Council with the delivery of an all-inclusive playground at Mollymook Beach Reserve.

CARRIED

6. Fees & Charges - Public Programs File 50419E Index

MOTION: Moved: Baptist / Second: Anstiss

RECOMMENDED that for the setting of fees for Public Programs at Council managed facilities and services, the following Price Setting Framework based on:

a) Full Cost Recovery, or b) Partial Cost Recovery, or c) Rate of Return, or d) Market Pricing, or e) Free (zero cost recovery) / Full Subsidy

Minutes of the Policy and Resources Committee-20 January 2015 Page 2

be placed on public exhibition for a period of twenty eight (28) days, in accordance with the Local Government Act 1993, and if no significant, adverse comment is received during that time, the fees be adopted.

CARRIED

7. Request Funding - Basketball Court - Lake Tabourie File 9151E Index

MOTION: Moved: Findley / Second: Kitchener

RECOMMENDED that Council support the delivery of a basketball ring/post at River Road Reserve with $2,000 from Job No 82531.

CARRIED

8. Re-establishment of Alcohol Free Zones – Nowra CBD, Ulladulla, , , and Sussex Inlet File 2706E, 8744E, 8745E, 7612E, 29199E, 30669E Index

MOTION: Moved: White / Second: Kearney

RECOMMENDED that:

a) Council proceed with the proposed re-establishment of the Alcohol Free Zones in the areas of Nowra CBD, Ulladulla, Sanctuary Point, Callala Beach, Basin View and Sussex Inlet b) Should no objections be received to the re-establishment of these zones, authority be given to staff to proceed with the declaration of the above areas as an Alcohol Free Zones, without further reference to Council.

CARRIED

ASSETS AND WORKS

9. Gilmore Safety Package – Grant Funding File 28099E, 5279E Index

MOTION: Moved: White / Second: Baptist

RECOMMENDED that

a) The total grant offer of $2,200,000 for Gilmore Safety Package projects be accepted; b) Expenditure of $2,000,000 be authorised (Job No 86193) for the sealing of Turpentine Road, from 6.7km to 8.6km west from the ; c) Expenditure of $100,000 be authorised (Job No 85319) for the construction of guard rails on Kangaroo Valley Road, ; d) Expenditure of $100,000 be authorised (Job No 85900) for the upgrading of the intersection of Bolong Road and Coolangatta Road,

Minutes of the Policy and Resources Committee-20 January 2015 Page 3

e) The General Manager be authorised to sign the funding agreement on behalf of Council; f) The Assistant Minister for Infrastructure and Regional Development, Hon Jamie Briggs, and the Member for Gilmore, Mrs MP, be thanked for the grant funding; g) The Turpentine Road sealing strategy be received for information.

CARRIED

10. RMS Grant Funding – Traffic Modelling – Increased Contribution File 1652E, 28985E, 5279E Index

MOTION: Moved: White / Second: Watson

RECOMMENDED that Council

a) Accepts the increased grant funding offer of a $20,000 increase (from $80,000 to $100,000) for the upgrade of Council’s TRACKS traffic and transportation models; and b) Authorises the expenditure on job number 85923.

CARRIED

SHOALHAVEN WATER

11. Water Fountain/Bottle Refilling Stations Project - Update File 27677E Index

MOTION: Moved: Tribe / Second: Baptist

RESOLVED that Council receive the report on water Fountain/bottle refilling for information.

CARRIED

12. Water Usage Charges - Bulk Water Filling Stations File 2213E and 34306E Index

MOTION: Moved: Baptist / Second: Kitchener

RECOMMENDED that Council support the principle of a reduction of 50% for water usage charges drawn through bulk water filling stations commencing 1 July 2015.

CARRIED

Minutes of the Policy and Resources Committee-20 January 2015 Page 4

13. Payment of Dividends from Shoalhaven Water 2013-14 File 32701E Index

MOTION: Moved: White / Second: Kearney

RECOMMENDED that Council determines that “substantial compliance” of the criteria in the Best Practice Management of Water Supply and Sewerage Guidelines has been achieved and a dividend will be paid from the Water and Sewer Funds to the General Fund for the 2013/2014 budget year.

CARRIED

14. Expressions of Interest - REMS 1B Tender Phase File 1398E Index

MOTION: Moved: White / Second: Baptist

RECOMMENDED that Council, in accordance with Section 10A(2)(d)(i) of the Local Government Act (2003), consider a separate confidential report on this matter.

CARRIED

GENERAL BUSINESS

15. Additional Item – Damage Caused by Tree Root System –Springs Street, Nowra File 1630E Index

MOTION: Moved: Watson / Second: Gash

RESOLVED that:

a) Council remove the tree that has caused so much damage, adjacent to 12 Springs Street, Nowra; b) The Director of Assets & Works liaise with the Director Shoalhaven Water in regard to the removal of the tree being a joint project.

CARRIED

Minutes of the Policy and Resources Committee-20 January 2015 Page 5

CONFIDENTIAL REPORT

CONSIDERATION OF ITEMS OF A CONFIDENTIAL NATURE

SHOALHAVEN WATER

Item Reason Expressions of Interest - Section 10A(2)(d)(i) - Commercial information of a REMS 1B Tender Phase confidential nature that would if disclosed prejudice the commercial position of the person who supplied it.

It is not in the public interest to disclose this information as it may impact on the ability of Council to attract competitive tenders in the future.

Pursuant to section 10A(4), the public were invited to make representations to the Policy and Resources Committee before any part of the meeting is closed, as to whether that part of the meeting should be closed. The Chairperson asked the Acting General Manager if any written representations had been received as to whether that part of the meeting should be closed.

MOTION: Moved: White / Second: Baptist

That the Policy and Resources Committee exclude the press and public from the Meeting pursuant to section 10A(1)(a) of the Local Government Act, 1993 as it was to consider items of a confidential nature in relation to matters pursuant to Section 10A(2)().

The public interest in preserving the confidentiality of information outweighs the public interest in maintaining openness and transparency in Council decision making, as it may impact on the ability of Council to attract competitive tenders in the future:

• Expressions of Interest - REMS 1B Tender Phase

CARRIED

The meeting moved into confidential the time being 4.20 pm.

The meeting moved into open session, the time being 4.26 pm.

There being no further business, the meeting concluded, the time being 4.26 pm.

Clr Wells CHAIRPERSON

Minutes of the Policy and Resources Committee-20 January 2015 Page 6

POLICY AND RESOURCES COMMITTEE

TUESDAY, 10 FEBRUARY 2015

COUNCILLOR REPORTS ON CONFERENCES

ITEM TO BE DEALT WITH UNDER DELEGATED AUTHORITY

1. Biomarine Business Convention File 4688E Index

PURPOSE: To provide a report from Clr Allan Baptist on the Biomarine Business Convention held in Cascais, Portugal 29-31 October 2014.

RECOMMENDED, in accordance with the Committee’s delegated authority from Council, that the report from Clr Baptist regarding the Biomarine Business Convention be received for information.

OPTIONS

1. Receive the report for information, as requested

2. Request further information on the conference.

DETAILS

# In accordance with Clause 3.3(e) of the Council Members – Payment of Expenses and Provisions of Facilities Policy, Clr Allan Baptist has submitted a report regarding the Biomarine Business Convention held in Cascais, Portugal 29-31 October 2014. The conference report is attached for information.

Policy and Resources Committee-10 February 2015 Page 7

REPORT OF GENERAL MANAGER

POLICY AND RESOURCES COMMITTEE

TUESDAY, 10 FEBRUARY 2015

GENERAL MANAGER

ITEMS TO BE REFERRED TO ORDINARY MEETING

2. “Beyond Nerriga” Report - Implications for Council File 1466E, 40290E Index

SECTION MANAGER: Greg Pullen.

PURPOSE:

This report provides an overview of the technical report to assess the freight corridor options beyond Nerriga.

RECOMMENDED that:

a) Council accept and endorse the “Beyond Nerriga Route Options Study - Corridor Options Report” as submitted to SEATS in November 2014; b) Council advise SEATS that the report is acceptable as a technical document and will be used to form the basis of further lobbying actions and funding applications; c) Council continue to work with adjoining Councils and Government Agencies to the freight corridor “beyond Nerriga” with singular emphasis on Stage 1 - Nerriga to Tarago (via Sandy Point); d) Council thank SEATS and the other participants in the study - Goulburn- Mulwaree, Palerang, Upper Lachlan and Yass Valley Councils and Transport for NSW as well as the consultant, GHD; and e) Council take the administrative steps necessary to rename that section of Main Road 92 between HMAS Albatross and the as “Nerriga Road” to be consistent with the name beyond the Shoalhaven City boundary.

OPTIONS

1. The recommendation be accepted as written.

2. The Committee make another recommendation.

Policy and Resources Committee-10 February 2015 Page 8

DETAILS

Background and History

Since at least the 1930s Shoalhaven Council, in its predecessor forms, had been working with the former Tallaganda Shire, now Palerang Shire, to improve the road link between Nowra and Braidwood to build upon the tourism connectivity within the region. At this time this road was of gravel construction for >90% of its length and impassable during wet weather.

In 1995 this Council changed the argument from one of enhancing tourism to that of building regional economic development and linking the Princes Highway at Nowra with the main inland freight corridors of the Hume Highway (the main -Melbourne link), Monaro Highway (an emerging link for eastern Victoria into Sydney) and the Lachlan Valley Way (linking Yass to the central west of NSW and the Newell Highway).

In Council’s submission to the Federal & State governments in 1997 it was pointed out that:

“The development of the Nowra-Canberra, Nowra-Gunning transportation corridor as a road of national importance is seen as the key to realising and consolidating the potential of all regions along the route with added benefits flowing to regions further afield.

Improved road conditions will result in increased investment for a wide range of agricultural, commercial, light industrial and tourism ventures. It will also provide manufacturing and service industries in the region with easier and therefore more economical access to markets by linking Melbourne and Canberra with the Shoalhaven and .”

The message was established clearly at the outset that the upgrade of Main Road 92 Nowra-Nerriga was as a freight route to eliminate the existing route through Kangaroo Valley. The Kangaroo Valley link was tortuous of heavy vehicles and drivers and with the introduction of b-double configured trucks was not authorised as an allowable route forcing these vehicles to make the journey via Picton Road, the addition of 103km travel in each direction.

As is now known the link between HMAS Albatross (near Nowra) and Nerriga was upgraded through a project funded by the 3 levels of government costing $95m in the following ratio:

• Australian government - $34m or 36% • NSW Government - $49m or 52% • Shoalhaven City Council - $12m or 13%

This upgrade project took 7 years to construct and was completed in 2010.

The route was designed to a b-double 80kph standard and b-double vehicles now travel between Nowra and Schmidts Quarries at Nerriga.

Policy and Resources Committee-10 February 2015 Page 9

Beyond Nerriga

In 2011, five Councils (Goulburn-Mulwaree, Palerang, Shoalhaven, Upper Lachlan and Yass Valley) supported by local state members from across the region made representations to the Hon Duncan Gay, MP, Minister for Roads, to undertake a study to identify a corridor to link their economies:

• Connecting coast to the Hume Highway provides benefits for many communities…connecting freight routes and driving regional economies • Nowra to Nerriga was built for trucks to undertake a freight task… needs to be finished • Supported by SEATS to deliver regional freight benefits and eliminate KV • Having a dedicated freight route assists many government interests • A freight strategic position will assist all, especially the smaller Councils, to attract funding

A grant of $200,000 from the NSW Government was forthcoming and each of the 5 Councils committed $20,000. From the $300,000 budget, SEATS was appointed to project manage a study which was awarded to consultant, GHD. A technical reference committee was appointed from the 5 councils and NSW Government agencies.

# The Beyond Nerriga Report was finalised in the latter part of 2014. A copy of the Executive Summary is attached (Attachment ‘A’). The recommendations of the report are:

1) The combined route be adopted as the preferred route option for the freight corridor beyond Nerriga 2) SEATS and councils should collaboratively lobby both the Federal and State Governments for funding to upgrade the Nerriga to Tarago route to HML B-Double standard to improve freight connectivity on the regional and national road network. Upgrade of this section of road would be stage one of the long term upgrade of the combined route option 3) The MR92 upgrade between Nerriga and Braidwood (currently 18 kilometres unsealed) be a SEATS Priority Project and in addition lobby the State Government for the replacement of the Charleyong Bridge under the Roads and Maritime’s timber truss strategy. The completion of this upgrade will improve safety and tourism connectivity, providing local and regional benefits.

Policy and Resources Committee-10 February 2015 Page 10

The “combined route” is that route from Nerriga to Tarago (green) to Bungendore (red/green) and on to Yass (red). This route is to be recognised as the freight corridor and SEATS and Councils are recommended to seek funding from BOTH the state and federal government for its progressive upgrade to b-double standard.

The third part of the recommendation seeks SEATS to have the Nerriga/Braidwood section of Main Road 92 be regarded as a priority project for funding along with a range of other projects.

Policy and Resources Committee-10 February 2015 Page 11

The Report

The GHD report analysed three route options, considered traffic and freight trends and the effects of an upgrade on environmental, social and regional economic grounds. Certain constraints such as land use, heritage, the proposed Welcome Reef Dam, topography including Lake George, transport network constraints and population distribution were all considered, many with data that had to be generated.

Traffic modelling formed an important part of the assessment and much of the report centres on this technical assessment. The freight analysis was difficult based on the lack of available data. The strategic cost estimates were undertaken at a fairly high level but were based on localised estimates provided by Councils and RMS based on comparable examples.

The task being examined always had staging as an essential element for the report outcomes. A critical outcome was that from Nerriga did the next stage go south (to Braidwood) or west (to Tarago). The stages and their specific segments were examined in some detail as was the current upgrade works being undertaken by various agencies.

The route beyond Nerriga has been progressively upgraded by both Palerang and Goulburn-Mulwaree Councils. Prior to the end of 2014 the final section of gravel road was sealed by Goulburn-Mulwaree Council near the crossing at Oallen Ford. This completes the sealing of the route from Nowra-Nerriga-Tarago-Bungendore- -Canberra, although some sections of road shoulders and visibility around tighter corners are in need of improvement.

The economic analysis generated a range of Benefit Cost Ratios for various route options. The first stage of the northern route Nerriga to Tarago) had a BCR of 0.49 under the flat growth scenario (1.6%pa).

Considering that Nowra-Nerriga, under similar methodology, had a BCR of slightly less than 1.0, this first stage of all option beyond Nerriga was assessed to achieve the greatest benefit to the region and road funding agencies.

Policy and Resources Committee-10 February 2015 Page 12

Conclusion

Not all Councils that contributed to the report were elated with the findings of the technical report.

The identification that Nerriga to Tarago be the next stage of the “freight corridor” to be the subject of funding applications, is consistent with the Shoalhaven position for 20 years. The commitment by Goulburn-Mulwaree Council to this project is commendable. The application of R2R monies to upgrading the Oallen Ford Rd in recent years to a heavy vehicle standard has been regularly acknowledged by Shoalhaven Council. The upgrading of the bridge at Oallen Ford at a much higher level is scheduled to be completed later in 2015 and thus will remove the 5 tonne limit which now applies to the old wooden bridge structure.

SEATS Position

SEATS has accepted the technical report and the recommendation as outlined in the report (as above).

At the time of writing this report, it is believed that a rescission motion and a replacement motion will be placed before the SEATS meeting on 19 February at Port Welshpool proposed by Upper Council. This replacement motion seeks to further the investigation of the “northern route” utilising a BCR modelling tool being developed by Transport for NSW which has been recently used by several of the Councils in preparing grant funding submissions for the “Fixing Country Roads” Program. This model works on freight rather than population growth projections.

Naming of Road (Main Road 92)

The name of the road between Albatross Road at Nowra and the Shoalhaven boundary at the Endrick River is “Braidwood Road”. From the Endrick River to the intersection with the Kings Highway at Braidwood is “Nerriga Road”.

To be consistent, and assist with identifying the now preferred route of Nowra-Nerriga- Tarago, it is suggested that Shoalhaven Council undertake the administrative steps to rename the section of road between HMAS Albatross and Endrick River as “Nerriga Road” and this be the subject of a future report to bring this action into place.

FINANCIAL IMPLICATIONS:

Council has invested a great deal of money into the creation of a freight corridor to the west of Nowra. This commitment has extended beyond the Shoalhaven boundary in the interest of assisting local industry move freight across the escarpment.

To in anyway abandon this commitment to avail itself of a lower benefit, for say tourism, would not be sending the right message to the Councils and communities that have supported the project.

The contribution into the future is mainly staff time and minor cash subsidies and in light of the $millions invested thus far would not be a significant sum.

Policy and Resources Committee-10 February 2015 Page 13

COMMUNITY ENGAGEMENT:

The upgrading of Main Road 92 has been a Council agenda item for over 70 years.

The back of the project is broken. The community is supportive. The connectivity to outside communities and transport corridors continues to form part of the Council’s strategies for the future of the Shoalhaven and there is an expectation that the work continues.

3. Blue BioTech Shoalhaven - Project update File 48687E/2 Index

SECTION MANAGER: Greg Pullen.

PURPOSE:

To report on the Blue BioTech Shoalhaven Project progress, including the Trade mission to Portugal.

RECOMMENDED that Council receive for information the report of the General Manager on the Blue BioTech Shoalhaven project progress, including the Trade Mission to Portugal in October/November 2014.

OPTIONS

1. The recommendation be accepted as written.

2. The Committee make another recommendation.

DETAILS

Background and History

Blue BioTech Shoalhaven was formed to advance aquatic biotechnology in the Shoalhaven and Australia. As a new collaboration between local industries and government to promote aquatic biotechnology growth in the region, the shared vision of the group has created a unique, dynamic and future facing industry with infrastructure and resources found nowhere else in the world.

The members include business leaders in growing, harvesting and processing aquatic resources as well as others that can add value to the supply chain including specialists in the formulation of natural flavour enhancers, pharmaceuticals and speciality ingredients all adhering to the highest quality standards.

Blue BioTech Shoalhaven contains many innovative and dynamic members that deliver quality products, capability and services to the marketplace. This industry network was

Policy and Resources Committee-10 February 2015 Page 14 created to enable members to create opportunities in the marketplace that they couldn't access in isolation.

Cross-pollination and networking within the membership have already proved to deliver far more benefits when compared to operating alone.

BioMarine 2014 - Portugal

In his opening address, Portugal’s Secretary of State of the Sea, Manuel Pinto de Abreu, began by explaining the importance of sustainable economic activities and how Portugal could become an important player in the field of marine bio resources. He presented a wide range of investment-friendly measures that have already been adopted, including those concerning the simplification of legislation and the swiftness of approval procedures.

The Secretary of State of the Sea underlined that Portugal had experience and highly qualified human resources in the marine bio resources sector, as well as important R&D centres. Manuel Pinto de Abreu further mentioned the outstanding scientific work and technological development already achieved as a result of the preparation of Portugal’s submission for increasing their claim of area of the continental shelf, as well as the relevance of this national enterprise: “With the extension of Portugal‘s continental shelf and the consequent access to vast areas of the ocean and its resources, Portugal will gain a new dimension and with it an important responsibility regarding the sustainable development of these immense maritime areas and resources.”

In reference to BioMarine2014, the Secretary of State of the Sea expressed Portugal’s alignment with the agenda of BioMarine2014 and stressed the importance of this unique opportunity for key industry leaders and investors to meet and extend their network, as well as to learn from best practices of key national and international stakeholders.

With Portugal deploying its blue strategic plan, it is important to consider that international collaboration as a key priority.

Some specific threads of conference sessions included:

• TRANSFORMING THE POLITICAL VISION INTO A BLUE ECONOMIC ASSET o The best strategy to move from vision to action is to make the action an explicit part of the dialogue. Speakers advised how to identify and support the activities with a raised potential for long-term growth, eliminating administrative obstacles that make the blue growth difficult, promoting investment in research, as well as the development of skills through education and professional training.

• MICRO ALGAE: THE KEY TO IMPROVING NUTRITION WORLDWIDE o Currently 868 million people are undernourished and 195 million children under five years of age are of stunted growth. At the same time, over 1 billion people are overweight and obese in both the developed and developing world. Diseases previously associated with affluence, such as cancer, diabetes and

Policy and Resources Committee-10 February 2015 Page 15

cardio-vascular disease, are on the rise. In a global scenario where increasing attention is being directed towards issues of sustainability and limited food supplies, microalgal sources offer immense scope for the rapidly expanding worldwide demand.

• MARINE COMPOUNDS FOR THE NUTRACEUTICAL AND COSMETIC INDUSTRY o The marine environment represents a relatively untapped source of functional ingredients that can be applied to various aspects of food processing, nutraceuticals and cosmetics. Bioactive peptides isolated from fish protein hydrolysates as well as algal fucans, galactans and alginates have been shown to possess anticoagulant, anticancer and hypocholesterolemic activities. On the basis of their bioactive properties, there will be a need to explore the potential use of marine-derived compounds as functional food ingredients for health maintenance, the prevention of chronic diseases and cosmetics. Further discussion is needed on the raw ingredients statutes, the Patent and IP issues, market access and regulations…

• UNTAPPED POTENTIAL OF BIOMOLECULES EXTRACTED FROM MARINE ORGANISMS o Deliberately breaking with the classical biology-centred description of marine organisms and their products, one session focused on microbial technology over basic biology. As such, it explored and covered the technology behind high-value compounds for use as pharmaceuticals, nutraceuticals or cosmetics, from prospecting to production issues. Even with discussion centred on technological considerations, the future potential of these organisms or compound classes will definitely form the focus on market development and commercial applications.

• MARINE BIOTECHNOLOGY - START-UP’S STRATEGY TO ATTRACT THE RIGHT INVESTORS o Early-stage start-up companies look for more than just financial support from their investors. IP, regulation, institutional communication, human resources are often key blocking factors that could lead to disaster. A major outcome of any start up advice is to provide a guidance note for marine biotechnology SMEs about what is key for new models of interaction with investors.

• MARINE NUTRACEUTICALS PROSPECTS AND PERSPECTIVES o There is a great deal of consumer interest in natural bioactive substances due to their health benefits. Offering the potential to provide valuable nutraceuticals and functional food ingredients, marine-derived compounds are an abundant source of nutritionally and pharmacologically agents, with both chemical diversity and complexity. o Functional ingredients derived from marine organisms can help fill the need for novel bioactives to treat chronic conditions such as cancer, microbial infections, and inflammatory processes.

• GENOMICS CONTRIBUTION TO SUSTAINABLE AQUACULTURE o In recent years, significant advances have been made in understanding the genome and functional genetic structure of a wide variety of animals, including many of importance to aquaculture. While the scientific relevance of this new

Policy and Resources Committee-10 February 2015 Page 16

information is widely understood, the uptake and application within the aquaculture industry is still in its infancy.

• SEAWEED PRODUCTION - HOW TO MATCH THE GLOBAL DEMAND WITH A UNIFORM QUALITY REQUIREMENT o Seaweeds are marine macro-algae found growing throughout the world oceans and seas. Though there are about 9200 species of seaweeds, only 221 species are economically important. Over 90,000 tons of brown, red and green seaweeds are exploited annually for the production of various commercially important phyco-colloids such as of agar, algin and carrageenan. Thus, natural seaweed stocks have become inadequate to meet the industrial requirements and hence cultivation of these important resources has become necessary. The session discussed the next step forward to organize this global challenge to achieve quality production and a sustainable industry.

• SCALING UP INDUSTRIAL PRODUCTION o To make the production economically feasible, it is essential to develop cultivation systems in which algae convert the light with a high photosynthetic efficiency. Successful development of an algae-based products industry requires the optimum combination of technical innovations in systems and processes, coupled with economic feasibility in the practical implementation and integrated scale-up for commercial production and marketing.

• EMERGENCE OF THE PORTUGUESE BIOMARINE INDUSTRY o Portugal is an emerging European country in bio marine capabilities and aims at becoming Europe’s leader in the bio marine sector, particularly by creating and attracting investment opportunities and supporting the development of R&D. Important steps have also been taken to improve the legal and regulatory framework.

• MARINE ORGANISMS ASSOCIATED BACTERIA - A KEY TOOL FOR THE IDENTIFICATION AND SCALE-UP PRODUCTION OF MARINE NATURAL PRODUCTS o Seaweeds undertake close collaborations with external and internal bacteria. Seaweeds are an unlimited source of oxygen and sugars which bacteria are happy to take advantage of. In exchange for these nutrients, bacteria produce growth promoting minerals and vitamins and they protect their host against environmental threats. As a result, many seaweed-bacterial associations are essential for both symbiotic partners. The question is to understand how this relationship could become the key of mass production.

• FINANCIAL MECHANISMS FOR MARINE BIO RESOURCES SMES o Small and medium size enterprises are key players in the development of the bio-marine industry and in providing services that support both industry and consumers. These enterprises have a very broad-base profile including raw material production of seaweeds, micro algae, aquaculture aquafeed, production of hydrolysats, biomolecules for nutraceuticals, cosmetic and pharmaceutical industry. Government- supported enterprise development and

Policy and Resources Committee-10 February 2015 Page 17

business programs currently exist in most countries, however, few address the critical financing gaps experienced by SMEs. o Financial mechanisms support is needed for those SMEs experiencing capital constraints and difficulties in achieving sufficient profit margins from the concept and early business planning through to operations. Finance mechanism that provide grant support or debt or equity at the seed, start up and growth stages are crucial to the development of the bio marine SMEs.

• POTENTIAL AND PERSPECTIVES OF MICRO ALGAE OMEGA3 AND ALGAE BIOMASS IN AQUACULTURE o Microalgae have gained a lot of attention as a source of biomolecules and biomass for feed purposes. Algae farming can be established using land as well as sea and strategies can be designed in order to gain the products of specific interest in the optimal way. In addition to its applications in animal/aquaculture feed, algae can produce a number of biomolecules and pharmaceutical and nutraceutical compounds which have been reviewed with respect to their commercial importance and current status. An industry challenge is adequate utilization of value added products in the feeds for livestock, poultry and aquaculture including prawn farming.

• CULTIVATE SEAWEED AS BIO RESOURCE FOR NEW INNOVATIVE PRODUCTS o New developments in biology and biotechnology and the diversification of the use of marine biological resources in increasingly sophisticated products are accelerating the domestication of marine biodiversity and the emerging patent market of marine biotechnology. Cultivated seaweed is a large un-exploited resource, but the interest is increasing in many countries - not least given the perspective of developing 3rd generation biofuels. Seaweeds are considered to have less environmental side-effects than land-based biomass. The interest will be in the industrial potential developments that seaweed cultivation could generate.

As can be seen from above, the workshop sessions whilst dealing with technical matters also worked around the product development and the parallel stimulation and growth of the small business sector. Key to the growth to access the potential of the industry is working with and assistance to the SMEs and to create a government regulatory framework that will assist SMEs and at the same time create a model of sustainability for the future.

The delegates from Shoalhaven who attended BioMarine 2014 were “gob-smacked” by the enormous potential of the sector. Key to success for local industry players was to pick a niche, understand it well and exploit the potential of this niche.

The enthusiasm of the delegates in the trade mission continues and some more recent actions are reported below.

BioMarine 2015 will be held in Wilmington, North Carolina in October 2015.

Policy and Resources Committee-10 February 2015 Page 18

BioMarine International Clusters Association

BioMarine International Clusters Association (BICA) is a new global approach in the marine bio-resources industry to foster SMEs’ business opportunities and facilitate access to funding.

In Cascais, Portugal, members of Blue BioTech Shoalhaven attended the inaugural meeting of BICA which is to be the champion for marine bio-resources and their sustainable and innovative utilization in all trans-sector applications. It was agreed that BICA will federate national and regional marine and biomarine clusters (like Blue BioTech Shoalhaven), advocate policies that enable the realization of the marine biotechnology’s promise for providing breakthrough products to feed the world, clean the environment, and improve health and nutrition.

BICA is unique in that it is a conjugation of a strong international business opportunity and an intensely networked set of marine bio-clusters. BICA will structure the biomarine industry and foster economic development by the creation of international business opportunities and partnerships. BICA wishes to meet the needs of industry, science and the civil society by creating and organizing economic value from blue bioeconomy based value-chains, in food, health, energy and environment

Blue BioTech Shoalhaven aligned with the membership criteria of BICA which includes:

a) A recognized biomarine cluster focusing on the sustainable exploitation, commercialization and / or research in the field of marine bio-resources; b) A maritime cluster which includes activities in the biomarine field: of marine biotechnologies, micro algae or seaweeds, ecofriendly fisheries, fish processing, environment or marine ingredients and bio prospecting; c) A professional association or industrial key player which is active in the field of Marine Bio-resources; d) A research organisation working in the field of marine bio-resources and/or its trans-sector applications; e) A government agency with a strategy focused on the valorisation of marine bio- resources; f) An investor, a financial group, a banking institution that has active funding sources for marine bio-resources projects or ventures; g) A recognized key opinion leader who can bring credit to the association and advocate its mission; (Honorary Member) and h) An organisation, an investor group, a physical or legal entity (consumer organisations included) wishing to finance or in other way to support the purpose of the association.

Policy and Resources Committee-10 February 2015 Page 19

The Honorary Directors of BICA are:

• H.S.H. Prince Albert II of Monaco. • Arne Benjaminsen, Director General and Head of the Department of Research and Innovation, Ministry of Trade, Industry and Fisheries, Norway. • Prof. Manuel Pinto de Abreu, Secretary of State of the Sea, Portuguese Government.

Blue BioTech Shoalhaven will continue to monitor BICA and contribute where it can to international policy formation, production standards and business advancement, especially amongst SMEs.

EUREKA Clusters

One endorsed initiative of BICA was to seek the endorsement of the Eureka Cluster Network to have a Marine Biotechnology Project as its 8th industrial platform within its charter and that BICA be the co-ordinating organisation behind this platform.

Eureka is an intergovernmental group aimed at raising the productivity and competitiveness of European businesses through technology. It is about boosting national economies on the international market, and strengthening the basis for sustainable prosperity and employment. Non-European nations and industry can participate in any of the cluster research programs.

EUREKA Clusters are strategic initiatives proposed and led by industry, developing generic technologies of key importance for European competitiveness. Clusters facilitate R&D and innovation projects on the basis of a broad industrial participation spanning large industry and SMEs as well as research institutions and other public or private organisation.

EUREKA Clusters clearly reflect synergies where European industry, research and collaboration interests, innovation capacity and national funding opportunities meet.

Clusters are part of EUREKA and contribute to its major objective: to coordinate and foster private and public investment in cooperative industrial R&D&I in Europe, towards a sustainable European competitiveness.

Currently clusters operate in the following industry sectors:

• Information Technology - 3 clusters • Energy - 1 • Communications - 1 • Manufacturing - 1 • Water - 1

The importance of this research finance arm may and will become relevant to our industry members as they develop international product development partnerships.

Policy and Resources Committee-10 February 2015 Page 20

Portuguese Trade Mission

In conjunction with attending BioMarine 2014, a small trade delegation from Blue BioTech Shoalhaven held several meetings in Portugal with government and business outside of the conference.

The policy meetings linked around bringing the governments of Portugal and Australia/NSW together to advance the following policy areas:

• Protocols for the maintenance of the marine environment to sustain harvesting of wild and cultivated biomarine crops; • Standards of technical production of marine harvested biotechnology crops; • Development of research programs to advance the utilisation of biomarine crops and technologies; and • Supporting the business sector (especially SMEs) within the biomarine industry sector.

The delegation carried an invitation from the NSW Minister for Primary Industries to the Portuguese Secretary for the State of the Seas to visit Australia in 2015. Negotiations are continuing to find mutually agreeable dates and other ancillary organisations are wanting to be involved in such meetings.

The delegation met with the Australian Ambassador to Portugal who similarly wished to be involved in linking the Ministers/Government agencies and she is being kept in the loop.

Meetings with industry included a visit to a seaweed farm near Ilhavo. This farm is co-located with an established fish farm in seawater ponds replenished daily by tidal interchanges. Production from this farm is now imported into Australia by a member of Blue BioTech Shoalhaven, with reciprocal trade agreements in place to market Australian species into Europe.

Another industry meeting was held near Porto with a medical research and development company looking to source algae as a medium for one of their products. The product will require years of product development and research/validation and efficacy trials for which research funding will be required both in Portugal and Australia. A long term confidential MoU is currently being drafted.

The costs of the Blue BioTech Shoalhaven trade mission to Portugal were borne by the delegates. Accommodation, travel and meal expenses were met by the business delegates, with costs incurred by Council’s Economic Development Manager being met by Council. Council was represented by Councillor Allan Baptist (4 days in Portugal) and the Economic Development Manager (9 days in Portugal).

Clr Baptist has prepared a separate report.

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Partner Activities

NSW Primary Industries - Fisheries A Blue BioTech Shoalhaven partner, NSW Primary Industries (Fisheries) has been collaborating with other agencies in the consortium to allow the creation of 50 hectares of leasehold aquaculture areas within .

With the recent announcement of planning consent for this proposal, it is anticipated that some farming of seaweed/algae species will occur and enhance the local biomarine industry sector. The tender application period is underway and closes on 24 April 2015. Given this timeframe some activity in establishing underwater aquaculture farming structures will occur before the end of 2015.

Interest has already been expressed for industrial lots at Industrial Estate and the planned navigation improvements at the entrance to Currambene Creek at Huskisson are timely for contractors devising the type/size of service vessels to be used.

NowChem Following on some early successful product development in 2014 of a hand cream, NowChem has now entered into a research agreement with the UoW to have an intern research the published studies and attributes of algae and related products for inclusion in other products in the pharmaceutical and nutraceutical area.

Venus Shell Systems (VSS) VSS awaits the approval of a development application over land at Bomaderry to expand their production trials to semi-commercial scale before scaling up to satisfy demand for dried algae product for use in various states in Australia - mainly Tasmania, and overseas.

Once trialled and proven a full production and drying facility will be established in the local area.

The sale and marketing of algae has grown significantly in recent months with a regular outlet at the Everleigh Markets in Sydney not only aimed at retail customers but at commercial chefs and restaurants.

FINANCIAL IMPLICATIONS:

Council formed the Blue BioTech Shoalhaven industry group in 2014, after having endorsed a Marine Technology Industry Strategy. The activities of this business network are funded by a grant from NSW Trade & Investment, operational funding through the Economic Development Office for delivering strategic actions in the DO/OP and by industry partners.

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COMMUNITY ENGAGEMENT:

The business aspects of the work being done by the members of Blue BioTech Shoalhaven are subject to the business activities of the individual businesses. Some aspects of the work are subject to community engagement processes such as the collective works and activities, and Blue BioTech Shoalhaven members are committed to growing the business sector and group as a whole and making community comment as and when it relates to their successes and activities.

4. Second Quarter report on Delivery Program & Operational Plan 2014 - 2015 File 45907E Index

SECTION MANAGER: Susan Tracey.

PURPOSE:

The purpose of this report is to provide information on how the organisation has performed against targets during the first quarter of the financial year commencing July 2014.

RECOMMENDED that the report of the General Manager (Executive Strategy) regarding progress to December 2014 on the 2014/2015 Delivery Program and Operational Plan be received for information, noted and published on Council’s website.

OPTIONS

1. Adopt the recommendation.

2. Adopt the recommendation and seek a further report on specific aspects of the Second Quarter Progress Report.

DETAILS

# Attached (Attachment A) is a summary of the Second Quarter Progress Report on the Delivery Program and Operational Plan providing a snapshot of how the organisation has performed against targets during the second quarter of the 2014/2015 financial year. Whilst most activities are either “on” or “above” target some are “below” target and the summary provides a short commentary on those.

This year the Delivery Program was streamlined to ensure a strong focus on key priorities for the organisation to achieve, and formatted to be more user-friendly to read which has received positive feedback from the community.

Policy and Resources Committee-10 February 2015 Page 23

FINANCIAL IMPLICATIONS:

The implementation of Council’s Indicators Framework is a key element of the IPR requirements, directed to strategic planning, resourcing and delivery of community outcomes across the span of people, place, prosperity, leadership and governance objectives.

COMMUNITY ENGAGEMENT:

The community was provided with an opportunity for engagement as part of the consultation period when drafting the Delivery Program 2014 - 2017 & Operational Plan for 2014 - 2015.

R.D Pigg GENERAL MANAGER

Policy and Resources Committee-10 February 2015 Page 24

REPORT OF GENERAL MANAGER

POLICY AND RESOURCES COMMITTEE

TUESDAY, 10 FEBRUARY 2015

CORPORATE AND COMMUNITY SERVICES

ITEMS TO BE REFERRED TO ORDINARY MEETING

5. Beach Patrol Services - 2014/15 to 2020/21 File 42196e Index

SECTION MANAGER: Jane Lewis.

PURPOSE:

To seek guidance from Council on the provision of professional Beach Patrol services in the Shoalhaven. This report covers:

1. Proposed Beach Patrol Services - 2015/16 to 2019/20 2. Request for New Professional Beach Patrol Services 3. Estimates to Provide Services at New Locations - Remote from Surf Life Saving Clubs

RECOMMENDED that the General Manager (Corporate & Community Services) proceed to public open tender for the following current service level with regard to Annual Professional Beach Patrol for the period 2015/16 to 2019/20, being:

a) Shoalhaven Heads Beach - 6 days per week excluding Sundays & Public Holidays - Monday to Saturday - commencement of NSW Summer School Holidays in December to conclusion of School Holidays.* b) Crookhaven Heads Beach - 7 days per week including Public Holidays - commencement of NSW Summer School Holidays in December to conclusion of School Holidays.* c) Ocean Street / Tilbury Cove - 7 days per week including Public Holidays - commencement of NSW Summer School Holidays in December to conclusion of School Holidays.* d) Warrain Beach - 5 days per week excluding Public Holidays - commencement of NSW Summer School Holidays in December to conclusion of School Holidays.* e) Sussex Inlet / North - 7 days per week including Public Holidays - commencement of NSW Summer School Holidays in December to conclusion of School Holidays.* f) Beach - 5 days per week excluding Public Holidays - commencement of NSW Summer School Holidays in December to conclusion of School Holidays.

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g) North Mollymook Beach - 5 days per week excluding Public Holidays - commencement of NSW Summer School Holidays in December to conclusion of School Holidays. h) South Mollymook Beach - 5 days per week excluding Public Holidays - Monday to Friday commencing first Monday in December to last Friday in February.* *Note - local SLS Club volunteers provide services during weekends / public holidays between October long weekend and Anzac Day outside of dates noted, however, services at Shoalhaven Heads and Sussex Inlet have increased due to both Clubs’ difficulties in recruiting volunteers.

OPTIONS

1. Council adopt the recommendation as printed and retain current service levels and retain current service levels. 2. Council identify any “options” for reduction or increase in services in relation to Professional Beach Patrol Services to be included in relevant Tender documentation for the period 2015/16 to 2019/20. If Council increases services it will need to identify other service reductions to free up the anticipated additional costs.

DETAILS

1. Beach Patrol Services – 2015/16 to 2019/20

Council’s contract with Surf Life Saving Services P/L will conclude at the end of the 2014/15 Beach Patrol season, and Shoalhaven Swim & Fitness staff will shortly be reviewing and drafting contract documentation to seek tenders for the following five (5) Beach Patrol seasons.

Guidance is sought from Council on the scope of services which it wishes to consider providing into the future. This will enable the contract documentation to reflect the level of services sought and, through tendering, establish costs associated in providing such levels of service.

Consideration and guidance is required to establish the following:

• Identification of current ‘core’ beaches to be included in the currently funded Beach Patrol program, which allows for eight (8) beaches for the period of the NSW School Summer Holidays in conjunction with volunteer Surf Life Saving Club members. The beaches listed below represent the current patrol locations for professional beach lifeguarding services:

o Shoalhaven Heads Beach o Crookhaven Heads Beach o Ocean Street / Tilbury Cove o Warrain Beach o Sussex Inlet / North Cudmirrah

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o Narrawallee Beach o North Mollymook Beach o South Mollymook Beach

It is anticipated that tenders will be sought in the early part of 2015, with a report to be presented to Council following closure and evaluation of submissions.

Note - local Surf Life Saving Club volunteers normally provide services during weekends and public holidays between the October long weekend and Anzac Day outside of the dates shown above, however, Council’s professional Beach Patrol services at Shoalhaven Heads and Sussex Inlet have increased due to both Clubs facing difficulties in recruiting volunteers.

Therefore, South Coast Branch NSW Surf Life Saving (SCBSLS) has indicated that Council will need to continue to provide these services into the future as both Shoalhaven Heads and Sussex Inlet Surf Life Saving Clubs are unable to meet their Beach Patrol obligations. It has also been indicated that Sussex Inlet SLS Club may cease providing patrols on an indefinite basis.

Council has increased the number of service days each week at these locations as shown in Table 1 below:

Table 1 – COMPARISON OF CONTRACT SERVICE PROVISION – INCREASE IN SERVICE LEVEL Year 1 vs Year 5 - all patrols 9am to 5pm

Location Beach Patrol Services Days per Beach Patrol Services Days per Estimated 2010/11 – YEAR 1 week 2014/15 – YEAR 5 week Increase $ Monday to Friday* Monday to Saturday - Shoalhaven Excluding Sundays & Heads / Seven 5 Public Holidays* 6 Mile Mon, 20 Dec 2010 to Tues, 18 December 2014 to 27 25 Jan 2011 January 2015 Monday to Saturday (Year 1 Monday to Sunday - – 2010/11 only – includes Includes Public Holidays four (4) additional Sussex Inlet Saturdays)* 6 7 Sat, 18 Dec 2010 to Tues, 18 December 2014 to 27 25 Jan 2011 January 2015

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Table 2 shows a comparison of the 2014/15 Beach Patrol expenses when compared with previous seasons commencing from 2008/09:

Table 2 – Annual Beach Patrol Service COMPARISON OF CONTRACTUAL EXPENSES from 2008/09 to the present Season Details Total (GSTinc) 2008/09 - Monday, 22 December 2008 to Monday, 26 January 2009 $144,966.00 previous contract Y4 2009/10 – Saturday, 19 December 2009 to Tuesday, 26 January 2010 (Australia Day $157,747.00 previous Holiday) contract Y5 2010/11 – • Additional Saturdays at Sussex Inlet - D11/117949 relates $203,647.40 current contract • Extension of season length at South Mollymook (additional 2 weeks in Y1 December and 4 weeks in February) - D11/117949 2011/12 – • Additional Saturdays at Sussex Inlet $193,014.00 current contract • Extension of season length at South Mollymook (additional 2 weeks in Y2 December and 4 weeks in February) 2012/13 – • Additional Saturdays at Sussex Inlet $201,796.00 current contract • Extension of summer season length at South Mollymook (additional 2 Y3 weeks in December and 4 weeks in February) • Repairs to Council owned Beach Patrol Cabin due to vandalism 2013/14 – • Additional Saturdays at Sussex Inlet and Shoalhaven Heads $232,338.68 current contract • Extension of summer season length at South Mollymook (additional 2 Y4 weeks in Dec and 4 weeks in Feb) • Repairs to hired Beach Patrol Cabin due to vandalism • Patrol adjusted to include “pupil free / staff development days” prior to commencement and post conclusion of official NSW Summer School Holidays, ie, Thursday & Friday 19 -20/12/13 and also Tuesday, 28/1/14 for community safety purposes • Provision of short Easter season at South Mollymook – ie, 3 days in April 2014

The increase in service costs have arisen due to Shoalhaven Heads and Sussex Inlet Surf Life Saving Clubs becoming unable to provide the full quantum of volunteer services. Following requests from SCBSLS, Council has increased its Professional Beach Patrol Services through Surf Life Saving Services P/L to cover the shortfall.

Table 3 below provides details on Beach Safety Ratings for the eight (8) existing Beach Patrol locations and identifies ratings for the beaches where new patrol services have been requested. These ratings are based on beach and water modal conditions. This may assist in guiding and prioritising where future professional Beach Patrol services could be considered.

Information has been drawn from the Australian Beach Safety & Management Program (ABSAMP) publication, and provides details on Beach Safety Ratings. This Program,

Policy and Resources Committee-10 February 2015 Page 28 supported by the NSW Government and developed by the University of Sydney in partnership with Surf Life Saving Australia, is a comprehensive research project that has examined the nature, facilities, conditions, usage and public risks associated with all beaches in Australia. It has produced publications and resources that allocate a safety rating for each beach in NSW ranging from a low rating of 1, ie, least hazardous, to a high rating of 10, ie, extremely hazardous, based on a combination of factors.

Table 3 – BEACH SAFETY RATINGS - EXISTING LOCATIONS Australian Beach Safety & Management Program (ABSAMP) Beach Rating Description Safety Rating Shoalhaven Heads / Seven Mile Low Tide Terrace (LTT) / Transverse Bar Rip (TBR) 7 Crookhaven Heads Transverse Bar Rip (TBR) 6 Ocean Street / Tilbury Cove - Transverse Bar Rip (TBR) 6 Warrain Beach – Culburra Low Tide Terrace (LTT) / Transverse Bar Rip (TBR) 6 Beach Sussex Inlet / North Cudmirrah Transverse Bar Rip (TBR) / Rhymic Bar Beach (RBB) 7 Narrawallee Beach Low Tide Terrace (LTT) 5 North Mollymook Transverse Bar Rip (TBR) / Low Tide Terrace (LTT) 6 South Mollymook Transverse Bar Rip (TBR) / Low Tide Terrace (LTT) 5 Average Beach Rating Safety Rating Dissipative 9 2.5 metre swell 1 to 3 Safest LSBT 7 2 metre swell 4 to 6 Moderately safe RBB 6 1.5 metre swell 7 to 8 Low safe TBR 5 1 metre swell 9 to 10 Least safe LTT 3 to 4 0.5 to 1 metre swell R 2 to 3 0.5 metre swell

2. Request for Additional Professional Beach Patrol Services including April School Holiday Period

Council has received requests over the tenure of the current contract for provision of professional beach patrol services from a number of Shoalhaven communities at beaches not currently patrolled. This is not only from the viewpoint of general public safety, but to also facilitate establishment of Surf Life Saving Clubs in these areas. These locations represent requests from the Community:

• Beach • • Kioloa / • • • Increases in services to South • Lake Tabourie Mollymook over Easter period • / Racecourse Beach

Policy and Resources Committee-10 February 2015 Page 29

Table 4 – BEACH SAFETY RATINGS - REQUESTED LOCATIONS (not currently patrolled) Australian Beach Safety & Management Program (ABSAMP) Greenfields Beach (NPWS) Reflective (R) - safest 3 South Cudmirrah / Berrara Beach Transverse Bar Rip (TBR) / Reflective (R) / Transverse Bar 5 / 3 / 6 Rip (TBR) Manyana Beach Nth – Transverse Bar Rip (TBR) / Rhymic Bar Beach (RBB) 7 Sth – Low Tide Terrace (LTT) 4 Conjola Beach Rhymic Bar Beach (RBB) 7 Burrill Beach Rhymic Bar Beach (RBB) 7 Tabourie Beach Transverse Bar Rip (TBR) / Rhymic Bar Rip (RBB) 7 Bawley Point / Kiola Low Tide Terrace (LTT) 4 Average Beach Rating Safety Rating Dissipative 9 2.5 metre swell 1 to 3 Safest LSBT 7 2 metre swell 4 to 6 Moderately safe RBB 6 1.5 metre swell 7 to 8 Low safe TBR 5 1 metre swell 9 to 10 Least safe LTT 3 to 4 0.5 to 1 metre swell R 2 to 3 0.5 metre swell

In preparation, staff have worked with SCBSLS to ensure that each Surf Life Saving Club within Shoalhaven has been consulted accordingly. SCBSLS has indicated its concurrence with Council’s present service levels and the day to day working relations with employees of the contractor – Surf Life Saving Services P/L.

SCBSLS believes that the current locations for Council’s professional Beach Patrol services will best meet the surf patrol requirements over the summer period, and has also made the following recommendations to extend the patrols into the April School Holiday period each year, along with recommendations for increased equipment. Each of these recommendations is listed below:

Existing Professional Beach Patrol locations: • Shoalhaven Heads Beach o Maintain existing - commencement of NSW Summer School Holidays in December conclusion of School Holidays at end January inclusive o Introduce April School Holiday extension by professional patrol on weekdays only patrol – volunteers will cover Saturdays, Sundays and public holidays • Crookhaven Heads Beach o Maintain existing - commencement of NSW Summer School Holidays in December to conclusion of School Holidays at end January inclusive o Introduce April School Holiday extension by professional patrol on weekdays, Saturdays, Sundays and public holidays o All terrain vehicle – extract from SCBSLS letter: “It is requested that the Crookhaven Heads Lifeguards be provided with an All- Terrain Vehicle as part of the Head Contract Agreement with Shoalhaven City Council and the Contractor. The distance between Ocean Street/Tilbury Cove Lifeguards and Crookhaven Heads Lifeguards on Culburra Beach is approximately four (4) kilometres. There have been a number of rescue

Policy and Resources Committee-10 February 2015 Page 30

responses and incidents in the area of the mid beach over the years. Recently during the holiday period and very fortunately, one of our off duty volunteer lifesavers rescued a person from the surf. A response vehicle such as an ATV located with the Crookhaven Heads Lifeguards would allow a quick response to any rescue or related incidents between Crookhaven Heads and Ocean Street Lifeguards along the expanse of Culburra Beach. At this time they do not have access to such a response vehicle. The ATV could be garaged within the Holiday Haven Tourist Park when not in use after hours during the lifeguard patrol service.” • Ocean Street / Tilbury Cove o Maintain existing - commencement of NSW Summer School Holidays in December to conclusion of School Holidays at end January inclusive o Introduce April School Holiday extension by professional patrol on weekdays, Saturdays, Sundays and public holidays • Warrain Beach o Maintain existing - commencement of NSW Summer School Holidays in December to conclusion of School Holidays at end January inclusive o Introduce April School Holiday extension by professional patrol on weekdays only patrol – volunteers will cover Saturdays, Sundays and public holidays • Sussex Inlet / North Cudmirrah o Maintain existing - commencement of NSW Summer School Holidays in December to conclusion of School Holidays at end January inclusive o Introduce April School Holiday extension by professional patrol on weekdays, Saturdays, Sundays and public holidays • Narrawallee Beach o Maintain existing - commencement of NSW Summer School Holidays in December to conclusion of School Holidays at end January inclusive – includes Christmas Day Public Holiday only • North Mollymook Beach o Maintain existing - commencement of NSW Summer School Holidays in December to conclusion of School Holidays at end January inclusive – includes Christmas Day Public Holiday only • South Mollymook Beach o Maintain existing - commencement of NSW Summer School Holidays in December to conclusion of School Holidays at end January inclusive o Maintain extension December to February o Introduce April School Holiday extension by professional patrol on weekdays only patrol – volunteers will cover Saturdays, Sundays and public holidays

Non-patrolled locations: • Burrill Beach: o No support for extension of professional Beach Patrols • Collingwood Beach / Moona Moona Creek Vincentia: o Christmas New Year Holiday period (7 days per week including Public Holidays - commencement of NSW Summer School Holidays in December to conclusion of

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same at end of January inclusive) – includes weekdays, Saturdays, Sundays and public holidays • South Cudmirrah / Berrara o Christmas New Year Holiday period (7 days per week including Public Holidays - commencement of NSW Summer School Holidays in December to conclusion of same at end of January inclusive) – includes weekdays, Saturdays, Sundays and public holidays

Table 5 - Summary of Requests - SCBSLS Maintain existing - Maintain Introduce April Introduce April All terrain commencement of extension School Holiday School Holiday vehicle NSW Summer extension by extension by School Holidays in December - professional patrol professional patrol December to February on weekdays only on weekdays, conclusion of same patrol Saturdays, Sundays at end of January inc and public holidays Existing locations: Shoalhaven ♦ ♦ Heads Beach Crookhaven ♦ ♦ ♦ Heads Beach Ocean Street / ♦ ♦ Tilbury Cove Warrain Beach ♦ ♦ Sussex Inlet / ♦7 ♦ Nth Cudmirrah Narrawallee ♦ Beach Nth Mollymook ♦ Beach Sth Mollymook ♦ ♦ ♦ Beach Non-patrolled locations: Collingwood Bch / Moona ♦7 Moona Crk Vincentia Sth Cudmirrah ♦7

Should Council wish to increase service levels at a beach or beaches with no current patrol, appropriate permissions (via DA submission) would need to be sought and obtained from the landowner, ie, Council / Department of Lands, to locate a shed at the required position. Council presently manages its water safety obligations in these and other unpatrolled locations with appropriate signage.

Policy and Resources Committee-10 February 2015 Page 32

3. Costs to Provide Services at New Locations

Should Council wish to operate any additional beach patrol services, these would need to be a seven (7) day per week service, therefore, Council can expect to pay approximately $40,000 (ex GST) per six (6) week period, seven (7) days per week. This includes provision of life saving equipment but excludes any all terrain vehicles, or rescue water craft, ie, jet skis. Any Easter extensions to patrols will cost in the vicinity of $11,000 (ex GST) per site. It is important to note that these are estimated figures and only testing the open market can provide Council with accurate figures.

The cost to provide a site shed and toilet for lifeguard use only, assuming the area can be accessed, is approximately $1,400 (ex GST) to $1,700 (ex GST) per location.

FINANCIAL IMPLICATIONS:

From an economic perspective, the current funding for professional Beach Patrol services provides for supervision at eight (8) locations for the duration of the NSW school summer holidays, as noted above.

Any extension to, or addition of, services will require further funding from Council. This will require Council to identify other service reductions to free up the required funding. Additional costs would be incurred at each site to provide the following pre-requisite temporary infrastructure:

• Site shed / caravan to provide safe storage of equipment and shelter for lifeguards in periods of inclement weather • Portable toilet for lifeguard use (if no public toilet in immediate locality) • Beach patrol information signage, sharps containers etc • Contract supervision by SCC staff

COMMUNITY ENGAGEMENT:

Local Surf Life Saving Clubs, through South Coast Branch NSW Surf Life Saving, have been in consultation with Council and has provided their extensive knowledge for each of its four (4) Clubs’ current areas and patrons. Previous public submissions have also been included in this report.

Extending existing or providing new professional Beach Patrol services will provide the community with greater access to patrolled beach locations in the Shoalhaven.

The reduction or removal of services could disadvantage communities who have previously benefited from professional beach patrol services.

The location of temporary cabins and toilet facilities, and potential increase in beach visitation numbers may adversely impact on beach and foreshore environments.

Policy and Resources Committee-10 February 2015 Page 33

6. Successful Grant Funding – NSW Government Public Reserves Management Fund Program (Round 2) File 26467E, 3220E Index

SECTION MANAGER: Jane Lewis.

PURPOSE: To advise Council of two (2) successful NSW Government 2014-15 Public Reserve Management Fund Program (Round 2) grant applications - $29,700 Lady Denman Reserve Trust - development of Business Plan and site management plan for the reserve – $20,000 -Nowra and Milton Showgrounds - provision of fencing at Nowra Showground Dog Park and landscaping at Nowra and Milton Showgrounds.

RECOMMENDED, that Council

a) Accept the NSW Government 2014-15 Public Reserve Management Fund Program (Round 2) - $29,700 for development of Business Plan and Site Management Plan - Lady Denman Reserve Trust and $20,000 fencing at Nowra Showground Dog Park and landscaping at both Nowra and Milton Showground Dog Parks. b) Write to the Hon. Kevin Humphries MP Minister for Natural Resources, Lands and Water Minister for Western accepting and thanking him for the grant funds.

OPTIONS

1. Council adopt the recommendation as printed

2. Council reject the recommendation and provide an alternative.

DETAILS

Lady Denman Reserve Trust

An application for $29,700 was submitted to engage a consultant to prepare a business plan and site management plan for the reserve at Lady Denman Reserve Trust. Council has received notification that this grant application has been successful. The funds are to assist with strategic direction development and management of site.

Milton and Nowra Showground Dog Park

An application for $20,000 was submitted to undertake fending at Nowra Showground Dog Park and landscaping at both Nowra and Milton Showground Dog Parks. To complete the delivery of the master plan for the two dog parks, Council has received notification that this grant application has been successful.

Policy and Resources Committee-10 February 2015 Page 34

FINANCIAL IMPLICATIONS:

The $29,700 will cover the cost to engage a consultant to deliver the business plan and site management plan.

The $20,000 will ensure that the dog parks at Milton and Nowra Showgrounds can be completed in line with the master plan.

COMMUNITY ENGAGEMENT:

The consultant will undertake community engagement as part of the brief for the delivery of a site management plan and a business plan

Council undertook community engagement during the development of a master plan for the dog parks at Milton and Nowra showground Council is continuing to liaise with the user groups of both showgrounds to deliver the project.

7. Ulladulla Sports Park - Access Road / Carpark and Netball Courts File 1783E Index

SECTION MANAGER: Jane Lewis and Martin Upitis.

PURPOSE: Provide an update on Ulladulla Sports Park improvements for the access road, car park and netball courts following discussions held at an on-site meeting with user groups.

RECOMMENDED that Council:

a) Deliver the access road and part of the carpark works at Ulladulla Sports Park with available funding of $800,000 in 2015/16 ($800,000 Delivery Operation Plan 15/16). b) Considers future budget allocations in it Delivery Program to complete the works (sealed car park, netball courts). c) Continues to work with the Ulladulla Netball Association for them to deliver a fence surrounding the netball courts at Ulladulla Sports Park in line with their grant funding, with the intent of entering into a formal agreement for the fenced area to the Ulladulla Netball Association.

OPTIONS

1. Council support the recommendation. This will provide staff with direction to undertake future improvements to Ulladulla Sports Park.

2. Council provide an alternative recommendation and provide direction to staff to undertake future improvements to Ulladulla Sports Park.

Policy and Resources Committee-10 February 2015 Page 35

DETAILS

Background

# Council received a report in April 2014 in relation to capital works improvements at Ulladulla Sports Park which included the delivery of a sealed access road, sealed car park and two additional netball courts. Attachment A is a copy of this report. Subsequently, Council resolved (MIN14.246) that:

a) The capital delivery of two (2) additional netball courts, a sealed car park and entrance road at Ulladulla Sports Park be combined into one consolidated capital works project. b) As part of the consolidation, the budget allocation within Job No 82568 - Ulladulla Netball Resurfacing - is reallocated to the 2015/16 Budget to facilitate this outcome.

As noted in the Council report, the consolidation of these capital works acknowledged the potential project savings from combining three (3) earthworks projects with a bitumen seal.

Current Project Status

# Detail design has been undertaken for the access road, car park and netball courts extension taking into consideration all aspects of the site such as existing services, slope, providing maximum car parking provision, etc. and to ensure that the Ulladulla Sports Park has defined safe vehicular and pedestrian access for all users. A site plan showing the outcome of these detailed investigations is shown as Attachment B (Plan 2194-222). The current position has been as a result of ongoing consultation with user groups.

Current cost estimate for delivery of the detailed design are: • Sealed access road $900,000 • Sealed carpark $1,920,000 • Netball courts (asphalt) $245,000 • Revised cost for Plexipave netball court $283,000

Total 3,065,000 (asphalt) 3,103,000 (Plexipave)

This costing is for delivery of the current complete project design with all inclusions. There is potential to stage this for initial cost savings and as funds become available additions such as lighting/line marking in car parking could be installed.

Current Available Funding

The current funding allocated to Ulladulla Sports Park is as follows:

• DPOP identifies for 2015/16 $800,000 for Camden Street (Access Road) • Job no 82568 Netball $128,708 (this is grant funding to be used on the netball courts)

Policy and Resources Committee-10 February 2015 Page 36

Based on current cost estimates of $3,065,000 for asphalt and $3,103,000 for Plexipave, there are insufficient funds to deliver this outcome with a project shortfall of $2,136,292 with asphalt surface and $2,174,000 with a Plexipave surface.

Ulladulla Sports Park User Input

Council staff met with some of the user groups (being Milton-Ulladulla Ruby League and Ulladulla Netball Association) that use Ulladulla Sports Park at the request of Clr White and Clr Baptist on Monday 15th December 2014.

At this meeting, Council staff were advised of the following requests by the user groups:

Item Current design Requested / Implication Implication Netball Court No fence provision Redesign to include The current plan 2194- Fencing for front two courts fencing courts at 222 is in draft and prior to 2.1m finalisation it can be noted that the fence be 2.1m. Supply and installation of fence by Netball Association through grant funding Netball Court Asphalt / Plexipave Current budget $128,708, Surface – 2 Plexipave Current costings shortfall Asphalt $116,292 proposed 65 mm $245,000 Asphalt / Plexipave Plexipave $154,292 courts reported in 2014 65 mm $283,000

Netball Court Fencing A grant for fencing the netball courts (submitted by the community) is likely to be successful and the current design plans will need to be amended to provide a 2.1m high fence that will surround all the netball courts. Ideally this fence should be erected following construction of the 2 additional netball courts, but not absolutely necessary. Additionally the Netball Association also requested an indicative time that court surface upgrade would commence.

The erection of a fence should be conditional to the Netball Association entering into an appropriate management arrangement (i.e. leasing/licencing of the area to netball). It should be noted also that no other netball courts within the Shoalhaven are fenced.

The Netball association can spend their grant funding to erect the fencing and when funding becomes available for the courts the contractor would need to remove part of the fencing and reinstate at completion of job.

Priority of Works The preferred priority of works for those user groups that attended the above meeting is:

1. Seal access road 2. Seal car park 3. Upgrade grass netball courts to a Plexipave surface 4. Fence the netball courts 5. Cover the western side of the netball courts with a roofing structure

Policy and Resources Committee-10 February 2015 Page 37

Netball Courts are the third priority on the list after the access road and car park.

The provision of two additional courts is funded from Job No 82568 $128,708. To provide the surface quality requested by the Ulladulla Netball Association will require additional funding of approx. $154,292.

Given that the Ulladulla Netball Association has secured grant funding for the fence Council will hold the $128,708 grant funds for the netball courts and move into strategic projects reserves for use in future years as funding become available to deliver the additional courts. This will ensure that the Netball association can erect their fence & acquit their grand funding. There is no additional funding from Council to assist with this aspect of the project.

FINANCIAL IMPLICATIONS:

Additional funding is required to fully deliver the combined project of access road, car park and two additional netball courts. Funding of these items will be considered in Council’s future Delivery Program through the submission of budget funding requests. Staff will continue to seek grant funding opportunities and work with the association and user groups to support any community based funding applications.

Shortfall on current design is $2,136,292 with asphalt surface and $2,174,292 with the preferred Plexipave surface, further Quantity Surveying will be undertaken on the revised /modified design incorporating the user groups request and will be used to prepare for the funding bids to Council.

Moving the grant funding of $128,708 into strategic projects reserves will negate a further revote of the $128,708 funds. This would also avert potential program delays / difficulties in installing the fence, which is funded through grant monies secured by the club which might otherwise impact on the use and acquittal of these grant monies.

Given the uncertainties surrounding funding provision, it is not possible at this time to provide feedback on when these works will be undertaken / competed as per the user group request.

COMMUNITY ENGAGEMENT:

The above user input reflects input from Milton-Ulladulla Ruby League and Ulladulla Netball Association. Prior to finalising any amendment to the current detailed design input should be requested form other Ulladulla Sports Park Users such as AFL and cricket.

Policy and Resources Committee-10 February 2015 Page 38

8. Quarterly Budget Review as at 30 December 2014 File 2127e Index

SECTION MANAGER: Pamela Gokgur.

PURPOSE: Delivery Program Activity: 5.1.3.13

In accordance with Regulation 203(1) of the Local Government (General) Regulation (2005), the responsible accounting officer must prepare and submit to the council a budget review statement after the end of each quarter. This has been carried out for the second quarter of the 2014/2015 financial year.

RECOMMENDED that

a) The December Quarterly Budget Review and vote movements outlined in the Quarterly Budget Review Statement be adopted by Council b) Council reaffirms MIN14.603 and does not commit to any further additional expenditure unless a business case is provided, and an appropriate funding avenue has been identified.

OPTIONS

1. Adopt the recommendation

2. Not adopt the recommendation and make an alternative resolution

DETAILS

This budget review involves analysis of Council’s annual budget in each Group to determine whether any changes in votes are required for the period. This process has been undertaken for the period to 31st December 2014 and any changes have been reported in the Quarterly Budget Review Document. This report also analyses the progress of each group in achieving its financial objectives.

The 2014/15 financial year commenced with a balanced budget. Adjustments made to the end of the first quarter resulted in a deficit budget. Second quarter adjustments have restored Council to a balanced budget position, after taking into account contractor payments and amending budgets in line with major capital works expenditures.

During the second quarter, additional revenue from communications towers has been received, and has been offset to an asset replacement reserve. A pro-rata operational budget has also been applied for the appointment of a Crime Prevention & Community Safety Officer in accordance with MIN14.450.

Policy and Resources Committee-10 February 2015 Page 39

Budget Position

The adjustments recommended in the second quarter have restored Council to a balanced budget position. ` Original Subsequent Qtr Review Revised Adjustments Adjustments Estimate (Excl Revotes)

Net Change in Budget (12,041,166) (1,219,355) 8,427,874 (4,832,646) Net Transfer from Reserves 12,041,166 736,039 (7,944,558) 4,832,646 Projects with phased budgets in 0 0 2nd half of financial year?

Net Change in Cash (0) (483,316) 483,316 (0)

Net Budget Surplus/(Deficit) - (Use of Accumulated/Unspent funds) (0)

The movements which affect the net budget position year to date, including recommendations of this review are:

Cashflow Balance

Opening Balance $0

September Quarterly Budget Review Adjustments MIN14.368 - Contribution towards additional RFS funding ($467,701) Adjustment to Financial Assistance Grant $160,788 Amend salary increase per Award approved after budget approved $204,416 Assorted miscellaneous income $2,685 Increase in DA fee income $100,000 Increase in Part 4A Certificate income $100,000 Oyster Coast - match grant funding ($8,333) Project Savings - Ulladulla Civic Centre $750,000 $841,855 December Quarterly Budget Review Adjustments MIN14.450 - Pro-rata operational budget for Crime Prevention/Community Safety ($18,083) Assorted miscellaneous income $1,894 MIN14.660 - Cashflow in line with contractor payments to 15/16 $499,875 $483,686 Subsequent Adjustments Other Than Quarterly Review adjustments MIN14.408 - Amend fees per LG Tribunal $11,459 MIN14.473 - Blue Bio Tech - reimburse General Fund for prior year expenses $20,000 MIN14.644 - Berry Showground Caravan Park ($57,000) MIN14.657 - Egans Lane Car Park ($100,000) MIN14.660 - Nowra Pool Contract Variations ($1,150,000) MIN14.661 - Nowra Gateway Park ($50,000) ($1,325,541) Current Surplus/(Deficit) ($0)

Policy and Resources Committee-10 February 2015 Page 40

Operational Savings Targets

Council has adopted significant operational savings targets to be achieved as follows:

Targets Achieved up to end Still to identify of 2nd Quarter Operational Savings $ 1,000,000 $ 1,345,647 -$ 345,647 Salary Savings $ 236,311 $ 386,068 -$ 149,757 Transformation Progress Savings $ 3,700,000 $ 2,569,778 $ 1,130,222 Implementation Costs -$ 200,000 -$ 337,700 $ 137,700 Total $ 4,736,311 $ 3,963,792 $ 772,519

It is to be noted, additional transformation savings have been identified across Council. As the transformation programmes are rolled out, the actual savings achieved will be updated in the table above.

Summary of Results to End of Quarter – General Fund

The December Quarterly Budget Review Statement details the recommended budget adjustments with comments on these adjustments and any significant variances. Below is a summary of the adjustments and results to date.

General Fund

250,000 200,000 150,000 Budget Actual

$'000 100,000 50,000 0 Operating Operating Capital Non- Income Expenditure Expenditure Operating Income

Operating Income As of 31st December 2014, General Fund has achieved 67.3% of the revised budget. This is primarily due to the raising of rates revenue in full. Excluding rate income, general fund has achieved 54.7% of the revised budget. The December Quarterly Budget Review Statement recommends a decrease of $528,683. The major adjustments in the review are: • Admin Centres & Operation – reduction in anticipated revenue due to transformation programme changes being rolled out $212K, offset by reduction in expenditure • Communications and Electrical – increase of $75K for income from Communication Towers, offset to a reserve for asset replacement.

Policy and Resources Committee-10 February 2015 Page 41

• Development & Environmental Services – increase income $200K due to additional DA fees • Financial Services – additional section 94 contributions received $57K, offset to section 94 reserve • Human Resources – reduction of training reimbursements $38K • Mechanical Services – reduction in income $50K, offset by expenditure reductions • Roads and Transport – additional grant income for Regional Roads $65K & Traffic Facilities $30K, offset by additional expenditure • Strategic Planning – additional grant income for Electronic Housing project $22K, offset by expenditure. • Waterways, Coastal & Floodplain – reduction of $708K grant income (cashflowed to 15/16 financial year), offset by reduction in grant expenditure.

Non-Operating Income Non-Operating income is at 0.9% of the revised budget. This is low due to planned borrowings not occurring until later in the financial year. The December Quarterly Budget Review Statement recommends an increase of $227,354 due to asset sales.

Operating Expenditure General Fund is below target with having spent 47.5% of the revised operating expenditure budget. The December Quarterly Budget Review Statement recommends an increase in depreciation of $178,879 due to the timing of asset revaluations on buildings. The other adjustments to operating expenditure items are primarily related to the Organisational Review with budget adjustments across groups, or have a corresponding adjustment related to income movements above.

Capital Expenditure Capital expenditure as at 31st December 2014 stands at 35.7% of the revised budget (excluding commitments). The Group Director’s comments included in this report, highlight the progress with projects.

$ '000 % Budget Spent Budget Capital Expenditure Original and Subsequent Budgets 51,094 Total Revote 28,300 Total Budget 79,394 Works completed prior year 21,443 Total to Spend in 2014/15 57,951

Actual Capital Expenditure Purchase order commitments 9,512 16.4% Spent This Year 20,673 35.7% Total Spent and Committed 30,185 52.1%

The December Quarterly Budget Review Statement recommends a budget decrease of $8,672,094. The major adjustments in this review are: • Aquatic Recreation – cashflow to 15/16 budget of $500K in line with contractor payments. • Cemeteries – cashflow to 15/16 budget of $200K for equipment.

Policy and Resources Committee-10 February 2015 Page 42

• Parks & Reserves – increase of $50K per MIN14.661 for Nowra Gateway Park; cashflow to 15/16 budget of $7.5M for Northern Shoalhaven Indoor Sporting Complex; increase of $6K for public halls, offset by additional income. • Roads and Transport – overall increase of $237K. $133K to Traffic Facilities & $48K for Pedestrian Facilities per changes to Shoalhaven Contributions plan amendment 5 effective 17th December 2014; $53K for Roads to Recovery; $65K for Regional Roads; reduction in Local Roads due to transfers to other road projects; cashflow to 15/16 $22K for Egans Lane Stage 2 in line with anticipated grant expenditure milestones. • Waterways, Coastal & Floodplain – cashflow to 15/16 $708K for dredging investigations and activities.

Summary

The projected budget position for Council at 30th June 2015 is of a balanced budget. Many capital projects have been reviewed in line with Council’s cashflow requirements and contractor payment schedules, in order to achieve this outcome. These adjustments will ultimately affect cashflow for the 2015/16 budget, therefore it cannot be stressed enough that new unfunded works or services should not be brought into the budget unless a business case is provided, and an appropriate funding avenue has been identified.

December Quarterly Budget Review – Group Summaries

General Manager

General Manager

4,500 4,000 3,500 3,000 2,500 Budget

$'000 2,000 Actual 1,500 1,000 500 0 Operating Income Operating Capital Non Operating Expenditure Expenditure Income

Policy and Resources Committee-10 February 2015 Page 43

The recommended budget changes and revised budget for the General Manager’s Group is summarised as follows:

Revised Budget Recommended Projected year $'000 Changes End Result $'000 $'000 Operating Income 1,646 0 1,646 Operating Expenditure 2,978 24 3,002 Capital Expenditure 3,943 -31 3,912 Non Operating Income 1,046 0 1,046

The General Manager’s group has achieved 37.5% of the revised income budget; non- operating income is at 4.4%. Operating expenditure is at 60.2% of the revised budget and the revised capital expenditure budget is currently 65.5% spent. Details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

General Manager’s Comments:

Income will improve when grant funds are received for works at AATP.

Operating Expenditure is above budget due to recording Transformation Implementation costs here whilst savings are recorded in another area.

Assets and Works Group

Asse ts a nd W orks

140,000

120,000

100,000

80,000 Budget

$'000 60,000 Actual

40,000

20,000

0 Operating Income Operating Capital Non Operating Expenditure Expenditure Income

Policy and Resources Committee-10 February 2015 Page 44

The recommended budget changes and revised budget for the Assets and Works Group is summarised as follows:

Revised Budget Recommended Projected year $'000 Changes End Result $'000 $'000 Operating Income 90,157 71 90,229 Operating Expenditure 131,747 66 131,818 Capital Expenditure 48,206 70 48,276 Non Operating Income 1,921 227 1,921

The Assets and Works Group has achieved 57.9% of the revised income budget; revised non-operating income is at 45.5%. Operating expenditure is at 48.0% of the revised budget and revised capital expenditure is currently 52.8% spent. Details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

Group Director’s Comments:

Each Section of the Assets and Works Group operated to a satisfactory level within the 2nd Quarter. Half yearly results for expenditure and income on both operational and non- operational (capital) budgets are on target for full delivery of services, and are being closely managed to achieve this.

Business and Property Bereavement Services is working in accordance with its Business Plan and capital works program to develop a range of options for burial, cremation and commemoration services. In terms of budget, income and expenditure are performing in accordance with budget projections as at the 2nd Quarter Budget Review. Planning for a new Cremator and building is progressing.

Income for the Holiday Haven group for the 2nd Quarter is ahead of budget attributable to fine weather and new recreational and accommodation infrastructure on several properties including splash pads at Lake Tabourie and Currarong and cabins at Lake Conjola and Shoalhaven Heads. The individual operational expenditure to the Tourist Parks is under budget projections. Capital expenditure for the 2nd Quarter is on track.

The Property Unit has met budget forecasts and continues to focus on identifying and realising opportunities for income growth. Sale of land at Dunisla Street, Sanctuary Point and 52 Cambewarra Road, Bomaderry and part of a Lot adjacent to Manildra and Murphy have been finalised. In addition RMS land acquisition for the Berry bypass has been negotiated and settled.

Parks Operations The operating expenditure for the routine maintenance of parks is on target with budget. Tree management costs, which historically run high, are over budget at 65.7% which is slightly higher than last year.

Waste Services Operating revenue is up (71%) on budget, noting this includes invoicing for the domestic waste charge that is included with rates notices. Revenue collected at the depot gates has picked up from the last quarter, as expected, and is sitting just below budget at 47%.

Policy and Resources Committee-10 February 2015 Page 45

Operating expenditure is below budget at 45%. Construction of a new waste cell is complete and forecasting indicates that capital expenditure will be completed within budget. The Better Waste and Recycling program has provided $260000 which will be utilised to design and plan for an upgraded transfer station.

Contracting Units Progress has been made on recovering costs through natural disaster funding. Restoration costs for the various landslips such as Burrier and Mount Scanzi Road have been claimed and work is soon to commence on landslips at Dowling Street and Parsons Street in Ulladulla.

Mechanical Services Mechanical Services’ revenue and expenditure remain consistent with budget. The Crane operations was determined to be inefficient as it required complex and regular inspections with very limited use, the crane is to be sold.

Roads and Transport Capital expenditure for the local repair program is tracking at 57%. Church Street, Milton and Green Street, Ulladulla and Main Road, Cambewarra rehabilitation projects have now been completed. The balance of the budget is allocated to projects that are programmed to commence in the 3rd Quarter. Through efficient work practices and savings on the first stage of road works, further rehabilitation can be undertaken on roads such as Road.

The resealing program has been progressing and is scheduled to commence again in February. The asphalt program is also scheduled to commence in February.

Stormwater Levy

Spending against the stormwater levy funding is 14% of budget.

Stormwater Levy Progress 2014/15

Stormwater Levy Budget Budget 2013/14 Adjustment Actual % Spent 2014/15 Adjustment Current Remaining unspent Notes

Drainage Program 111 ElizabethDr Vincentia $71,755 $0 $225 2 $71,980 $71,980 $0 100% Killarney Rd $35,283 $0 $35,283 $2,057 $33,225 6% St Andrews Way Coolangatta Stg 1 $0 $150,000 -$110,000 3 $40,000 $100 $39,900 0% Woollamia Rd Woollamia $0 $130,000 $38,965 1 $168,965 $5,782 $163,183 3% Bellevue St $0 $75,000 $75,000 $7,000 $68,000 9% Dowling St Ulladulla $0 $250,000 $250,000 $39,806 $210,195 16% Park Row Orient Point $0 $150,000 $150,000 $0 $150,000 0% Rennies Beach Ulladulla $0 $250,000 $250,000 $27,971 $222,030 11% Nowra Street Huskisson $0 $25,000 $25,000 $15,519 $9,480 62% St Andrews Way Coolangatta Stg 2 $0 $0 $10,000 4 $10,000 $0 $10,000 0% Princess Street $0 $0 $100,000 5 $100,000 $0 $100,000 0%

Total Stormwater Levy $107,037 $1,030,000 $39,190 $1,176,227 $170,215 $1,006,012 14%

Note: - The projects may have other additonal funding, but only the Stormwater Levy is included in this table

1 +$38,965 - September Quarterly Budget Review - additional Stormwater Levy received 2 +$225 - December Quarterly Budget Review - additional Stormwater Levy received 3 -$110,000 - December Quarterly Budget Review - transfer to Princess St ($100K) & St Andrews Way Coolangatta Stage 2 ($10K) 4 +$10,000 - December Quarterly Budget Review - transfer from St Andrews Way Coolangatta Stage 1 5 +$100,000 - December Quarterly Budget Review - transfer from St Andrews Way Coolangatta Stage 1

Policy and Resources Committee-10 February 2015 Page 46

Group Director’s Comments:

The 111 Elizabeth Drive drainage project has now been completed. The remaining projects are scheduled to be completed in the second half of the financial year.

Special Rate Variation

Spending against the Special Rate Variation funding is 42% of budget.

Special Rate Variation Progress 2014/15

Special Rate Variation Budget Budget 2013/14 Adjustment Actual % Spent 2014/15 Adjustment Current Remaining WIP Notes

Roads and Transport Program Matron Porter Drive SUP $80,775 $140,000 $60,000 3 $280,775 $280,775 $0 100% Main Rd Cambewarra $0 $630,000 -$205,626 1,2,3 $424,374 $424,374 $0 100% Quinns Ln South Nowra $0 $600,000 $600,000 $5,440 $594,560 1% Naval College Road $0 $603,000 -$200,000 4 $403,000 $904 $402,096 0% Idlewild Avenue footpath $0 $50,000 $50,000 $20,469 $29,531 41% Berry St (Emporium-Worrigee)Path $0 $219,900 $45,626 1 $265,526 $265,526 $0 100% Tallyann Point Road $0 $110,000 $110,000 $5,698 $104,302 5% Currambene Street $0 $0 $300,000 2 $300,000 $19,067 $280,934 6%

Total Special Rate Levy $80,775 $2,352,900 $0 $2,433,675 $1,022,252 $1,411,423 42%

Note: - The projects may have other additonal funding, but only the Special Rate Levy is included in this table

1 -$45,626 - September Quarterly Budget Review - transfer to Berry Street +$45,626 - September Quarterly Budget Review - transfer from Main Road 2 -$100,000 - September Quarterly Budget Review - transfer to Currambene Street +$100,000 - September Quarterly Budget Review - transfer from Main Road 3 -$60,000 - September Quarterly Budget Review - transfer to Matron Porter Drive +$60,000 - September Quarterly Budget Review - transfer from Main Road 4 -$200,000 - September Quarterly Budget Review - transfer to Currambene Street +$200,000 - September Quarterly Budget Review - transfer from Naval College Road

Group Director comments:

Tallyan Point Road path and Berry Street path are complete as at January 2015. Main Road Cambewarra and the first stage of Currambene Street are also complete. Works will commence in the 3rd Quarter on Quinns Lane and Naval College Road.

The remaining projects are scheduled to be completed in the second half of the financial year.

Policy and Resources Committee-10 February 2015 Page 47

Corporate & Community Services Group

Corporate & Community Services

120,000

100,000

80,000 Budget 60,000

$'000 Actual 40,000

20,000

0 Operating Income Operating Capital Non Operating Expenditure Expenditure Income

The recommended budget changes and revised budget for the Corporate & Community Services Group is summarised as follows:

Revised Budget Recommended Projected year $'000 Changes End Result $'000 $'000 Operating Income 95,474 -157 95,315 Operating Expenditure 42,318 -360 41,957 Capital Expenditure 33,010 -7,975 25,035 Non Operating Income 7,792 0 7,792

The Corporate & Community Services Group has achieved 79.1% of the revised income budget; non-operating income is at 0.9%. Operating expenditure is at 48.2% of the revised budget and revised capital expenditure is currently 53.1% spent. Details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

Group Director’s Comments:

The Groups budget is on track. The higher revenue is a result of rates being levied fully at the start of the year. Revenue and expenses have also been adjusted for the closing of the Canteen, resulting in a $20K decrement in operating result overall.

Ongoing discipline will continue to be required to ensure the Group performs to its budget.

Capital projects are being closely monitored and cash flowed to assist with overall budgeting requirements.

Policy and Resources Committee-10 February 2015 Page 48

Planning & Development Services Group

Planning & Development Services

18,000 16,000 14,000 12,000 10,000 Budget

$'000 8,000 Actual 6,000 4,000 2,000 0 Operating Income Operating Expenditure Capital Expenditure

The recommended budget changes and revised budget for the Planning & Development Services Group is summarised as follows:

Revised Budget Recommended Projected year $'000 Changes End Result $'000 $'000 Operating Income 6,842 -519 6,323 Operating Expenditure 16,725 232 16,956 Capital Expenditure 2,882 -735 2,147

The Planning & Development Services Group has achieved 49.7% of the revised income budget. Operating expenditure is at 42.5% of the revised budget and capital expenditure is currently 36.8% spent. Details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

Group Director’s Comments:

Revenue this quarter has been above expectation as the level of development activity continues to increase, this is especially noticeable in the DA area. Expenditure has been generally consistent with expectations, except where vacant positions exist; this has led to salary savings. Some positions have recently been filled so this level of saving will diminish over the balance of the year. The additional revenue and saving will be partly offset by increased expenditure on consultants that have been utilized to address staff vacancies and issues and to maintain output.

Policy and Resources Committee-10 February 2015 Page 49

Small Lot Rural Subdivision

REZONING INVESTIGATIONS Updated 31st December 2014

Jerberra Verons Nebraska

Funding Loan Funded 350,000 150,000 200,000 Loan Funded (transferred from Road Design) 12,968 Special Rates (from construction) 5,213 Special Rates (from construction) (returned) -5,213 Strategic Planning Consultants Budget 25,000 Previous Contributions (Pre 1996) 0 2,571 0 350,000 190,539 200,000 0 0 0 Expenditure Salaries 156,347 32,296 47,298 Consultants 123,726 157,396 61,876 Other 14,091 1,942 563

Commitments in 2014/15 0 0 0

294,164 191,634 109,738

Variance 55,836 -1,095 90,262

ROAD DESIGN AND INVESTIGATIONS Updated 31st December 2014

Jerberra Verons Nebraska

Funding Loan Funded 184,438 50,281 50,281 Transfer to road construction -114,400 0 -22,800 Transfer to rezoning 0 -12,968 0 70,038 37,313 27,481

Expenditure Salaries 0 0 0 Consultants 12,333 37,313 16,835 Other 3,488 0 0

Commitments in 2014/15 0 0 0

15,821 37,313 16,835

Variance 54,216 0 10,646

Policy and Resources Committee-10 February 2015 Page 50

ROAD CONSTRUCTION Updated 31st December 2014

Jerberra Verons Nebraska

Funding Loan Funded (from investigations) 114,400 0 22,800 General Fund 0 3,000 0 Strategic Projects (2008/09) 82,020 41,738 11,750 Special Rate Funded 232,640 124,952 71,076 Transfer to Estate Rezoning -5,213 Transfer to Estate Rezoning (returned) 5,213 429,060 169,690 105,626 0 0 0 Expenditure Salaries 50,282 28,038 5,569 Consultants 11,662 0 12,575 Other 323,989 126,800 79,996

Commitments in 2014/15 6,075 0 0

392,009 154,838 98,139

Variance 37,051 14,853 7,487

Notes: Expenditure details will be updated quarterly. Upon completion of the rezoning investigations, any excess funding from rezoning investigations will be redirected to road investigations and construction for the relevant Estate at the appropriate time. Options to address any negative variance values will be considered in the future. If necessary, funding may be transferred between the rezoning investigation, road investigation and road construction budgets for each Estate. Funding will not be transferred from one Estate to another.

Jerberra Estate: $55,836 remains for progressing rezoning investigations.

Nebraska Estate: $90,262 remains for progressing rezoning investigations.

Verons Estate: The $150,000 borrowed in 2006 to fund the rezoning investigations has been fully spent. A total of $25,000 has now been transferred from the Strategic Planning Consultants budget, which has been over spent by $1,095. This will need to be recouped from the landowners at a later date. Further transfer(s) may be necessary to complete the project.

Road investigations and construction: Roadwork budgets for Jerberra, Verons and Nebraska Estates for 2014/2015 are $37,051, $14,853 and $7,487 respectively. $5,213 was transferred back to Verons Estate road construction budget from the Verons rezoning budget in 2011/12.

Policy and Resources Committee-10 February 2015 Page 51

Shoalhaven Water Group

General Fund

Shoalhaven Water (General Fund)

8,000

7,000

6,000

5,000 Budget 4,000

$'000 Actual 3,000

2,000

1,000

0 Operating Income Operating Expenditure Capital Expenditure

The recommended budget changes and revised budget for the Shoalhaven Water General Fund Group is summarised as follows:

Revised Budget Recommended Projected year $'000 Changes End Result $'000 $'000 Operating Income 6,675 75 6,750 Operating Expenditure 6,393 0 6,393 Capital Expenditure 24 0 24

The Shoalhaven Water General Fund Group has achieved 51.7% of the income budget. Operating expenditure is at 42.5% of the revised budget and capital expenditure is currently 36.8% spent. Details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

Group Director’s Comments:

Mechanical Services: Pump Fitters

Operating Income

The operating income budget for Pump Fitters is tracking well. No adjustment is required.

Expenses

Operating The operating expense budget for Pump Fitters is on target. No adjustment is required.

Policy and Resources Committee-10 February 2015 Page 52

Communications

Operating Income

The operating income budget for Communications is tracking well and an adjustment of $75K is required. This increase relates to income received from communication towers, and has been allocated to a reserve.

Expenses

Operating The operating expense budget for Communications is tracking well. No adjustment is required.

Capital The Communications capital budget is tracking well. No adjustment is required.

Electrical Engineering: Industrial Engineering

Operating Income

The operating income budget for Industrial Engineering is tracking well. No adjustment is required.

Expenses

Operating

The operating expense budget for Industrial Engineering is on target. No adjustment is required.

Water Fund:

Water Fund

25,000

20,000

15,000 Budget

$'000 Actual 10,000

5,000

0 Operating Income Operating Capital Non Operating Expenditure Expenditure Income

Policy and Resources Committee-10 February 2015 Page 53

The recommended budget changes and revised budget for Shoalhaven Water - Water Fund are summarised as follows:

Revised Budget Recommended Projected year $'000 Changes End Result $'000 $'000 Operating Income 23,381 262 23,643 Operating Expenditure 22,347 292 22,639 Capital Expenditure 23,110 -3,358 19,752 Non Operating Income 327 94 421

The Water Fund has achieved 50.9% of the revised budgeted income, non-operating revenue is 50.1% of the budget, operating expenditure is 45.2% of the revised budget and capital expenditure is at 43.2% of the revised budget. Details of the adjustments and variances are included in the December Quarterly Budget Review Statement

Group Director’s Comments:

Operating Income

The water fund operating income requires a budget adjustment of $262k. This adjustment is a result of a small reduction in income from the major industrial customers but has been offset by a larger increase in section 64 income.

The non-operating income requires an adjustment of $47k due to the sale of assets.

Expense

Operating

The operating expenses are generally tracking well to budget. An adjustment of $292k is required to cater for the dividend payment to the general fund as per the final 2013/14 financial statements.

Capital

The water fund capital program requires a number of adjustments to reflect the current and expected status of several major projects. The most significant adjustment is to the Porters Creek dam remediation project. This project was originally scheduled to commence construction in the current financial year. Due to the need for further environmental assessments and approvals from National Parks, this timetable cannot be achieved. In addition, the engineering factors associated with the mass concrete pours required for the work means that the main contract needs to be done in winter. It is not feasible to formalize the approvals and tender processes to meet this window in 2015, so the budget will be reduced and deferred for 2016. This reduction is partly offset by an acceleration of the watermain renewal program being carried out through the contract panel arrangement. Overall the net change proposed to the water capital budget is $3,358k.

Policy and Resources Committee-10 February 2015 Page 54

Sewerage Fund:

Sewerage Fund

45,000 40,000 35,000 30,000 25,000 Budget

$'000 20,000 Actual 15,000 10,000 5,000 0 Operating Income Operating Capital Non Operating Expenditure Expenditure Income

The recommended budget changes and revised budget for Shoalhaven Water – Sewerage Fund are summarised as follows:

Revised Budget Recommended Projected year $'000 Changes End Result $'000 $'000 Operating Income 44,855 -2,726 42,129 Operating Expenditure 34,616 28 34,644 Capital Expenditure 26,175 -3,866 22,309 Non Operating Income 7,125 0 7,125

The Sewerage Fund has achieved 51.8% of the revised budgeted income, non-operating revenue is 1% of the budget, operating expenditure is 44.1% of the revised budget and capital expenditure is at 40.9% of the revised budget. Details of the other adjustments and variances are included in the December Quarterly Budget Review Statement.

Group Director’s Comments:

Operating Income

The sewerage fund operating income budget requires an adjustment of $2,726k. This reduction is caused by an adjustment of the timing for the state government subsidy for REMS 1b. This has been partly offset by the recovery of a bank guarantee and increases in section 64 income.

Expense

Operating

The operating expenses are generally tracking well to budget. An adjustment of $28k is required to cater for the dividend payment to the general fund as per the final 2013/14 financial statements.

Policy and Resources Committee-10 February 2015 Page 55

Capital

The capital program is progressing well but an adjustment of $3,866k required. This reduction relates mainly to timing of the Nowra REMS 1B project.

FINANCIAL IMPLICATIONS:

Adjustments made in the second quarter budget review have resulted in a balanced budget. Council will need to exercise restraint and not introduce new works or services unless a funding source is clearly identified.

COMMUNITY ENGAGEMENT:

The review of Council’s budget is a requirement under Regulation 203 of the Local Government (General) Regulation (2005).

9. Consideration of Petition - Sussex Inlet Gymnasium - Sussex Inlet Aquatic Centre File 1828E, 20696E Index

SECTION MANAGER: Jane Lewis.

PURPOSE:

To provide Committee with information on preliminary consultation with stakeholder groups and analysis / costings with regard to a petition seeking consideration of the installation of a community gymnasium to be located at the basketball court building adjoining Sussex Inlet Aquatic Centre at the Sussex Inlet Thomson Street Sporting Complex.

RECOMMENDED that:

a) Council not proceed with the proposal outlined in the community petition submitted by residents of Sussex Inlet, Cudmirrah and Berrara calling on Shoalhaven City Council to provide the residents of the area with a gymnasium, in Thompson Street Sussex Inlet. b) The General Manager (Corporate & Community Services) write to the author of the petition, expressing thanks for their efforts in this regard.

OPTIONS

1. Council adopt the recommendation as printed. 2. Council reject the recommendation and provide an alternate.

Policy and Resources Committee-10 February 2015 Page 56

DETAILS

At Council's Ordinary Meeting held on 18 November 2014, the following resolution was adopted (Min14.822):

“Clr White presented a petition containing approximately 672 signatures from the residents of Sussex Inlet, Cudmirrah and Berrara calling on Shoalhaven City Council to provide the residents of this area with a gymnasium, in Thompson Street Sussex Inlet, so everyone will benefit from the use “ ‘For a long time now the residents of Sussex Inlet, Cudmirrah and Berrara have been disadvantaged in our area with the lack of a community gym. The health and wellbeing is just as important for us as other communities. Currently we don’t not have a community facility where residents can exercise to improve our health that is easily accessed for all age groups as other areas. i.e. Ulladulla and the Bay and Basin currently have a Gym included in their leisure centre. Groups and individuals from the Sussex Inlet District need to travel to use facilities that are needed for their health and wellbeing. “ ‘We have an area that is underutilized that joins Sussex Inlet Swimming Pool at Thompson St the area is the basketball court where a full sized gym can be installed.’ “Clr White asked that Council report on options for gymnasium at Sussex Inlet”

The basketball stadium building adjoining the Sussex Inlet Aquatic Centre, being the preferred location for the gymnasium proposed by the relevant petition currently before Council, is managed by the Sussex Inlet Thomson Street Sporting Complex Management Committee.

Following receipt of the petition, staff recently met with the Management Committee to ensure that appropriate consultation was made with regard to the proposed gymnasium at this location.

At that onsite meeting, members of the Management Committee indicated that they had not been consulted by the petition’s author on this matter. Further, members of the Sussex Inlet Thomson Street Sporting Complex Management Committee conveyed that, whilst they had no ‘in principle’ objection to the construction of a gymnasium, nonetheless, the Management Committee did not believe the basketball court was a suitable location for this purpose and would prefer that, if Council was to consider this proposal in future, that an alternate site should be considered for this purpose.

The Management Committee members also conveyed their belief that, should Council proceed with the gymnasium proposal on the site of the basketball stadium, various user groups would be displaced.

FINANCIAL IMPLICATIONS:

A gymnasium located in the basketball court building adjoining Sussex inlet Aquatic Centre would not be financially viable. It is estimated that a modest gymnasium would cost in excess of $160,000 to develop, with operational costs of approximately $50,000 per year.

Policy and Resources Committee-10 February 2015 Page 57

The building will also require additional mechanical services such as heating, ventilation, air conditioning and modifications to point of sale which, as yet, have not been costed.

The proposed gymnasium would require approximately 500 members to make the initiative economically viable. Given the resident population of approximately 3,500 in Sussex Inlet, it is highly unlikely that a gymnasium in this area could sustain such a high membership base. It is noteworthy that the gymnasium memberships of Council’s existing Health & Fitness facilities at Bay & Basin and Ulladulla Leisure Centres are currently at approximately 700 with much higher populations to draw from.

The proposed gymnasium is not currently identified in Council’s Delivery Program or Operations Plan.

COMMUNITY ENGAGEMENT:

A total of 672 signatures were provided on the petition seeking consideration of the proposed gymnasium, which represents approximately 14% of the Sussex Inlet population.

The Sussex Inlet Thomson Street Sporting Complex Management Committee have been consulted regarding the community petition.

Craig Milburn DIRECTOR CORPORATE & COMMUNITY SERVICES

R.D Pigg GENERAL MANAGER

Policy and Resources Committee-10 February 2015 Page 58

REPORT OF GENERAL MANAGER

POLICY AND RESOURCES COMMITTEE

TUESDAY, 10 FEBRUARY 2015

PLANNING AND DEVELOPMENT

ITEMS TO BE DEALT WITH UNDER DELEGATION OF COUNCIL

10. Greenwell Point Floodplain Risk Management Options Feasibility StudyFile 46971E Index

SECTION MANAGER: Kelie Lowe

PURPOSE:

The purpose of this report is to: • Inform the Committee of the results of the public exhibition of the Greenwell Point Floodplain Risk Management Options Feasibility Study; and • Seek the Committee’s endorsement for Council to adopt the Greenwell Point Floodplain Risk Management Options Feasibility Study.

RECOMMENDED that, in accordance with the Committee’s delegated authority from Council, the Committee:

a) Adopt the Greenwell Point Floodplain Risk Management Options Feasibility Study; b) Remove the site specific flood related development controls from the table in Chapter G9 (formerly DCP 106) of Shoalhaven DCP 2014, Schedule 5 Part D for the properties: 3, 7, 9, 11, 42, 59 Adelaide Street; 59 Haiser Road, 2 Keith Avenue, 1 Church Street and 68, 70, 76 Greens Road in Greenwell Point through the Shoalhaven DCP 2014 ‘Housekeeping Amendment’ Part 1; c) Continue to work with the SES on community awareness and education programs to raise awareness of the flood risk at Greenwell Point; d) Request Council’s Roads Manager, for any future upgrade works of Greenwell Point Road, assess the possibility of incrementally raising the lower sections of the road without impacting on drainage effectiveness

OPTIONS

1. As recommended.

Implications: The Greenwell Point Floodplain Risk Management Options Feasibility Study thoroughly investigated the floodplain mitigation and management measures recommended in the adopted Lower Shoalhaven River Floodplain Risk Management Plan. The document was placed on public exhibition and recommends planning and

Policy and Resources Committee-10 February 2015 Page 59

education initiatives as the most feasible of measures that can be implemented for the area.

2. The Committee could choose to provide an alternative recommendation for future consideration by Council.

Implications: Unknown

DETAILS

The Greenwell Point Floodplain Risk Management Options Feasibility Study (Feasibility Study) (Copy available in the Councillors Room) investigated the feasibility of implementing the recommendations of the Lower Shoalhaven River Floodplain Risk Management Plan for the Greenwell Point area including the construction of a levee to protect the village from Shoalhaven River’s floods; the raising of Greenwell Point to create reliable evacuation access during a flood; a review of planning controls for the area and other measures that could be implemented by Council to relieve the risk of, or build resilience to, flooding.

Following extensive community consultation during the development of the document, on the 7th October 2014, Council’s Development Committee resolved under delegated authority to:

a) Endorse the draft Greenwell Point Floodplain Risk Management Options Feasibility Study for public exhibition for a minimum period of 28 days and notice of exhibition be sent to: i) All property owners located in the flood extent, and ii) Greenwell Point CCB: Get To the Point Program Inc. b) Receive a further report following the public exhibition of the draft Greenwell Point Floodplain Risk Management Options Feasibility Study. c) Continue to work collaboratively with Greenwell Point residents to discuss drainage issues and identify remediation options.

The draft Greenwell Point Floodplain Risk Management Options Feasibility Study was placed on public exhibition from 17 November 2014 to 15 December 2014. All property owners in the Greenwell Point flood extent, along with the Get To The Point Program Inc CCB, were notified of the exhibition and the document was made available at Council’s administration offices and online.

Four submissions were received during the public exhibition which were considered by staff but have not resulted in any changes in the document (see Community Consultation section below for full details).

The draft Feasibility Study recommends that Council continue to work with the SES on community awareness and education programs to raise awareness of the flood risk at Greenwell Point as well as an amendment to Chapter G9 (formerly DCP 106) of the Shoalhaven DCP 2014 to remove the site specific flood related development controls from the table in Schedule 5 Part D for the properties: 3, 7, 9, 11, 42, 59 Adelaide Street;

Policy and Resources Committee-10 February 2015 Page 60

59 Haiser Road, 2 Keith Avenue, 1 Church Street and 68, 70, 76 Greens Road in Greenwell Point.

In addition, the Feasibility Study demonstrates that the structural mitigation options of a levee and the raising of Greenwell Point Road would provide significant flood benefits. However, these measures are largely unsupported by the community and are therefore not considered feasible at this time.

Council’s previous sea level rise benchmarks of 0.4m by 2050 and 0.9m by 2100 were considered as part of this study. The outcomes of the study would not have been any different if the new benchmarks had been considered. The cost benefit analysis was mainly driven by current potential local damages.

FINANCIAL IMPLICATIONS:

Two thirds of the funding for this project has been provided under the NSW State Assisted Flood Program 2012/13. Council’s contribution comes from the existing general Floodplain Management Program budget.

The implementation of the changes to the Shoalhaven DCP 2014 are considered to have only negligible administration costs as they will be incorporated into a number of housekeeping amendments/document revision scheduled for 2015.

The development of education materials and the like in partnership with the SES is also considered to have negligible financial implications, and any costs may be borne by Council’s existing Floodplain Management Program.

COMMUNITY ENGAGEMENT:

Extensive community consultation was undertaken through the development of the Feasibility Study which was placed on public exhibition from 17 November 2014 to 15 December 2014.

The public exhibition was advertised in the South Coast Register on 17 November and 19 November 2014 and in the Nowra News on 20 November 2014, along with notification letters to property owners in the Greenwell Point flood extent, along with the Get To The Point Program Inc CCB.

Following the close of the public exhibition period four (4) submissions were received from the community and are summarised as follows:

Resident 1 Resident 1 showed concern that entrance management of Shoalhaven Heads was not assessed as part of the Feasibility Study as it was believed that this would alleviate flooding to their property.

Policy and Resources Committee-10 February 2015 Page 61

Council staff have responded to this resident advising that management of the Shoalhaven River entrance was already considered in Council’s adopted policy found in the “Shoalhaven River Entrance Management Plan for Flood Mitigation”.

There have been no changes to the Feasibility Study document in response to this submission.

Resident 2 Resident 2 commended Council on the document and its recommendations and requested that when Council considers the raising of Greenwell Point Road that wider shoulders are also included so as to accommodate cyclists in the area.

Council staff have responded to this resident who was thanked for their letter and was advised that in the future, should Council proceed with this option, their request for shoulder widening will be considered.

There have been no changes to the Feasibility Study document in response to this submission.

Resident 3 Resident 3 supported the levee as a flood mitigation measure but was concerned that the alignment evaluated in the Feasibility Study excluded their property (a tourist park) in the south-eastern portion of Greenwell Point. The property owner considered it was inequitable to exclude their property and stated that they would also desire the protection of a levee.

Council staff have responded to this resident who was advised that since the levee was not supported by the community, Council will not be proceeding with this option. However, if Council does elect to proceed with this option in the future, they are encouraged to participate in the consultation process at that time to ensure a suitable outcome is reached.

There have been no changes to the Feasibility Study document in response to this submission.

Resident 4 Resident 4 opposed the construction of a levee around Greenwell Point and considered local drainage issues to be of greater importance to the area.

Council staff have responded to this resident, acknowledging the lack of community support for the levee and the raising of Greenwell Point Road which was reflected in the Draft Feasibility Study and was advised that local stormwater issues are being considered by Council separately.

There have been no changes to the Feasibility Study document in response to this submission.

Policy and Resources Committee-10 February 2015 Page 62

CONCLUSION:

The Greenwell Point Floodplain Risk Management Options Feasibility Study has established the feasibility of the flood mitigation and management measures available for the Greenwell Point area. While structural mitigation options will have strong benefits with regard to flood risk, they are not supported by the community who prefer to rely on appropriate development controls and education on flood risk to instil resilience to their community.

11. Flood and Coastal Programs – Response to Changes to Sea Level Rise Projections File 4355e, 30596e Index

SECTION MANAGER: Kelie Lowe

PURPOSE:

The purpose of this report is to: • Inform the Committee of the implications arising from the newly adopted sea level rise projections on Council’s ongoing flood and coastal programs; • Seek a resolution on how to proceed with the completion of flood studies and floodplain risk management studies currently in progress; and • Recommend an approach to develop Council’s internal capacity to respond more effectively to future changes on sea level rise projections.

RECOMMENDED that, in accordance with the Committee’s delegated authority, Council:

a) Undertake additional flood modelling for Flood Study for considering the newly adopted sea level rise projections and that the cost of the variation of approximately $3,750 + GST be fully covered by Council in order to avoid significant delays; b) Undertake additional flood modelling for Currambene and Moona Moona Creeks Floodplain Risk Management Study & Plan to incorporate Council’s recently adopted sea level rise projections and seek variation funding approval from the NSW Office of Environment and Heritage to undertake the additional work; c) Finalise the Tabourie Lake Floodplain Risk Management Study & Plan having considered sea level rise based on Council’s previous sea level rise benchmarks of 400mm and 900mm by 2050 and 2100 respectively; d) Undertake review of completed Floodplain Risk Management Studies and Plans in accordance with the schedule presented in Attachment A subject to successful funding from the OEH; e) Undertake additional coastal investigations and modelling to update Council’s coastal hazard studies in 2015/16 financial year and apply for grant funding from the NSW State Government Coastal Programme; and

Policy and Resources Committee-10 February 2015 Page 63

f) Investigate options to develop Council’s internal capacity to respond more effectively to future changes on sea level rise projections.

OPTIONS

1. As recommended.

Implications: This option allows for two of the three current projects to include the newly adopted SLR projections. Tabourie Lake Floodplain Risk Management Study & Plan is nearing completion after 2 years of work and engagement with the community. Additional flood modelling would have significant time delays, resourcing and funding implications.

2. Seek funding variation from OEH ($1,875) to undertake additional flood modelling for Lake Wollumboola Flood Study incorporating Council’s adopted sea level rise benchmark

Implications: Since “flood identification” is the final stage of this study the impacts in terms of cost are only quite small (quoted as $3,750 + GST) however it could take up to 3 months to obtain variation approval from OEH and a further month or two to undertake the work and may result in delay costs due to the time to provide approval to the consultant to undertake the additional work. This would also increase the likelihood of a budget revote in the upcoming 2015/16 financial year.

3. Instruct Council’s consultants, Cardno, to undertake additional flood modelling for Tabourie Lake Floodplain Risk Management Study and Plan incorporating Council’s recently adopted sea level rise projections; and seek variation funding approval from the NSW Office of Environment and Heritage to undertake the additional work.

Implications: This option is not recommended as this 2 year project is nearing completion. For this study, “flood identification” was completed in the first stage of the project and to undertake additional modelling would have a significantly increase costs and time, as the consultant would essentially be starting the study over. This option would require a budget revote in the upcoming 2015/16 financial year.

4. The Committee could choose to provide an alternative recommendation.

Implications: Depends on direction given.

DETAILS

Flood Program Council receives grant funding from the State Government’s Office of Environment and Heritage (OEH) to undertake projects under the Floodplain Management Program. Grant funding is provided to Council on a 2:1 basis. Grant applications are sought each financial year.

Policy and Resources Committee-10 February 2015 Page 64

The Floodplain Management Program provides grant funding to: • develop flood studies; • develop floodplain risk management studies and plans; and • implement flood mitigation options identified in floodplain risk management plans.

# Council currently has a number of projects underway, a number of which are required to consider the impacts of oceanic flooding and sea level rise (SLR). Council also has completed a number of projects which have considered the impact of climate change and sea level rise. These projects are summarised in Attachment A to this report.

Council recently adopted new SLR projection based on the “South Coast Regional Sea Level Rise Benchmarks and Policy Response Framework”. None of the projects listed in Attachment A have considered these new projections.

For projects currently underway, if staff were to direct Council’s consultants to undertake additional SLR modelling in accordance with Council’s recently adopted SLR projections this will impact on the delivery of these projects in terms of time and future cost as described below:

• Lake Wollumboola Flood Study – since “flood identification” is the final stage of this study the impacts in terms of cost only are quite small (quoted as $3,750 + GST) and in terms of time would take up to 3 months to obtain variation approval from OEH (from recent experience) and a further month to undertake the work and may result in delay costs due to the time to provide approval to the consultant to undertake the additional work. • Currambene and Moona Moona Creeks Floodplain Risk Management Study and Plan– the consultant has only recently completed the “flood identification” stage of this study, therefore the costs associated with the additional work is anticipated to also be quite low. However the implications associated with time and delay costs remain an issue for this project. • Tabourie Lake Floodplain Risk Management Study and Plan – this project is nearing completion after 2 years. “Flood identification” was the first stage of this study and to undertake additional modelling would have a significant impact with regards to anticipated cost and time, as the consultant would essentially be starting the study over.

An additional consideration is that each of these projects are currently subject to conditions of a commercial contract and imposed delays by the client (Council) will be met by “restart” and “delay” costs. The most significant risk in regard to delays is the OEH grants variation/approval process which in recent experience can take between 6 weeks to 6 months to be determined.

Coastal Program The cost of updating the coastal hazard maps for the 9 beach compartments (Collers, Shoalhaven Heads, Culburra, Warrain, Currarong, Callala Beach, Collingwood, Narrawallee, Mollymook) in view of the new sea level rise projections would be in the

Policy and Resources Committee-10 February 2015 Page 65

order of $25,000. This cost is based on the cost of the review of the 2004 studies undertaken when the 2009 State Government benchmarks were applied.

It is proposed that the review be undertaken in 2015/16 under the coastal program. It is also proposed that further geotechnical investigations be carried out (with a priority given to high risk areas) in order to develop more accurate hazard mapping.

Future SLR projections and response As highlighted by this report the overall cost to update coastal and flood risks assessments based on new sea level rise projections is significant.

In accordance with Council’s resolution of 28 October 2014 Council will review the sea level rise projections in the future when new information comes from The Intergovernmental Panel on Climate Change, State or Federal Governments or any other competent and reliable sources.

It is proposed that Council aim to purchase/upgrade relevant software and develop staff skills through appropriate training in order to develop in house capacity to update coastal and flood risks data more efficiently in future and to avoid consultancy costs.

FINANCIAL IMPLICATIONS:

Flood Program Two third funding for these projects has been provided under the NSW State Assisted Flood Program 2012/13 administered by the Office of Environment and Heritage (OEH). Council’s contribution comes from the existing general Floodplain Management Program budget.

The additional costs associated with any additional work and delay costs would be subject to variation approval through OEH and the small (one third) additional cost to Council could be funded from savings from the existing general Floodplain Management Program budget. In the past 2 years Council has not been successful in receiving any new grants and therefore there is no certainty that Council will be able to gain variation approval for any of these projects.

If Council were unsuccessful in a variation bid, Council would then have to pay 100% of the associated additional costs without assistance. This would have a significant impact on the existing general Floodplain Management Program budget which has not been budgeted for.

Coastal Program 50% of coastal hazard studies are generally funded under the NSW Assisted Coastal Program. It is proposed that Council apply for grant funding to update its coastal hazard studies and that Council’s annual coastal budget of approximately $57,000 be used to match OEH grant allocation. However there is no certainty that the grant will be approved. This year, successful grant funding under the coastal program was announced in December, if the same timeframe applies to next year grant announcements that means the coastal hazard studies will be updated in the last quarter of the next financial year.

Policy and Resources Committee-10 February 2015 Page 66

COMMUNITY ENGAGEMENT:

Extensive community consultation is undertaken through the development of all flood risk projects. A significant program of community engagement on coastal management is about to take place with $40,000 funding from the State Government recently allocated to council.

CONCLUSION:

This report proposes a way forward to update Council’s coastal and flood risk assessments in view of the newly adopted SLR projections. The program of update is such that it takes into consideration Council’s current budget capacity and maximises grant funding opportunities whilst minimising delays to existing projects. The cost of undertaking the review of coastal and flood risks assessments is significant and it is recommended that Council investigate ways to develop in house capacity to update coastal and flood risks data more efficiently in future.

12. South Coast Regional Sea Level Rise Planning and Policy Response Framework File 30596E Index

SECTION MANAGER: Kelie Lowe

PURPOSE: To discuss implications following Council’s decision to adopt the sea level rise scenario RCP 6.0 for 2050, especially in terms of compliance with Coastal Zone Management Plan Guidelines. More specifically the appropriateness of also adopting a 2100 projection and Council’s indemnification under the Local Government Act.

RECOMMENDED that, in accordance with the Committee’s delegated authority from Council, the Committee:

a) Adopt the whole RCP6.0 projection and therefore also adopt a 2100 sea level rise projection based on RCP6.0; b) Adopt the South Coast Regional Sea Level Rise Policy and Planning Framework methodology; and c) Apply a) and b) to the preparation and review of flood studies, flood risk management studies and plans, coastal hazard studies, asset management plans and as part of a future amendment to Shoalhaven Development Control Plan 2014, a future review of Chapter G6: Areas of Coastal Management and other relevant chapters.

Policy and Resources Committee-10 February 2015 Page 67

OPTIONS

1. As recommended. Implications: This will enable Council to continue work on its Draft Coastal Zone Management Plan (CZMP) to satisfy the minimum requirements of the NSW Government Guidelines for Preparing Coastal Zone Management Plans. The framework also provides a sound risk based planning tool that will inform the review of Chapter 6 of the SDCP 2014.

2. Not adopt a 2100 sea level rise projection based on RCP6.0. Implications: Council will not be able to complete work on the Draft Shoalhaven CZMP and risks its indemnification under the Local Government Act. Since adopting the same sea level rise projection level for 2050 and 2100 is not based on widely accepted scientific opinion.

3. Amend recommendation. Implications: Depends on the direction given by the Committee

DETAILS

Previous Council decision At the Council meeting held on Tuesday 28 October 2014, the following motion was adopted by Council (MIN14.750) in relation to the South Coast Regional Sea Level Rise Planning and Policy Response Framework.

That Council:

a) Establish a sea level rise benchmark for planning purposes based on a 2050 horizon of 230 mm and the RCP 6 as indicated in the Whitehead & associates Report. b) Review the projection based on real data every 7 years with tidal gauges at HMAS Creswell and Ulladulla being included in the calculations along with other NSW gauges, modelled or corrected altimeter data be excluded unless new Satellites overcome the present measurement error. c) Apply the adopted sea level rise projection for the preparation and review of flood studies, flood risk management studies and plans, coastal hazard studies and asset management plans; d) As part of a future amendment to Shoalhaven Development Control Plan 2014, review Chapter G6: Areas of Coastal Management and other relevant chapters to ensure provisions are consistent with the adopted Sea Level Rise Policy and e) Continue to monitor State and Federal Government advice including Stage 2 Coastal Reform and future Intergovernmental Panel on Climate Change (IPCC) reports and review its sea level rise projections in accordance with part b. f) Respond to all who made a submission, thanking them for their input and providing them with a copy of this resolution, and the consultants response to key issues raised during the exhibition.

Policy and Resources Committee-10 February 2015 Page 68

Further clarification and direction is sought from Council in regard to the implementation of part (a) of Council’s decision, particularly with respect to a 2100 sea level rise projection. Clarification and confirmation is more specifically sought from Council on whether it intended to adopt a sea level rise projection for 2100 based on RCP6.0 and the subsequent response framework, as part of the previous resolution (part a) states “and the RCP6.0 as indicated in the Whitehead & Associates Report”.

Summary of Policy Development Process

Adopt Sea Level Rise Scenario

Council is at this stage

Adopt appropriate methodology based on NSW Guidelines for preparing CZMP

Adopt CZMP Adopt approach to Development Controls

Sea level rise projection for 2100 Local Councils are responsible for planning for coastal hazards including sea level rise. This includes the preparation of Coastal Zone Management Plans (CZMPs). Planning for sea level rise is one of a number of coastal hazards for which Councils have a legislative responsibility to plan for.

The NSW Guidelines for Preparing Coastal Zone Management Plans 2013, require Council to plan and respond to current and future coastal hazards. Without adopting the entire RCP6.0 (2100 level as well as 2050) projection Council cannot fully adopt the Draft South Coast Sea Level Rise Policy and Planning Framework because it is based on using the whole projection to provide a range of planning responses depending upon the type of development and planning horizon.

The guidelines do not mandate a particular planning response for Council but it does provide the guiding principles on how Councils are to respond. The guideline does require Council to document how and why it has chosen to respond and plan in a particular way. This detail must be included in a CZMP.

Without adopting the whole RCP 6.0 projection and no 2100 figure, Council will not be able to implement fully the response framework which articulates Council’s policy response. Without a 2100 level, Council will also be dramatically changing its current

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planning approach which has to date, provided Council protection under the good faith provisions of s733 of the Local Government Act.

Our current DCP does include planning up to 2100 for some development and has been successfully implemented since about 2004. For most development the 2025 hazard is used. Examples of the implementation of these development controls can be observed in the areas of recent development at Mollymook Beach.

Below is a table comparing the locally adjusted projections for sea level rise for each greenhouse gas emission scenario, which is an extract from the South Coast Regional Sea Level Rise Planning and Policy Response Framework report.

RCP2.6 RCP4.5 RCP6.0 RCP8.5* Previous State Policy/SCC current DCP 2030 0.10 0.10 0.10 0.10 2050 0.23 0.24 0.23 0.26 0.35 2100 0.58 0.69 0.72 0.98 0.85

Note: All figures are in metres.

RCP = Representative Concentration Pathway (e.g. atmospheric greenhouse gas scenario)

There is a difference of 3cm between all four projections (23cm for RCP2.5 and 26cm for RCP8.5) for 2050.

The 2100 projection for RCP6.0 is 13cm lower than the previous State Government Policy sea level rise benchmarks which are currently adopted in the Shoalhaven Development Control Plan 2014, Chapter G6: Areas of Coastal Management. As stated above, these sea level rise benchmarks have been utilised by council for planning purposes since 2004.

What is Council legally required to consider in its Coastal Planning?

Shoalhaven LEP2014

The objectives of Clause 5.5 Development within the coastal zone of the Shoalhaven Local Environment Plan (SLEP) 2014, are:

a. to provide for the protection of the coastal environment of the State for the benefit of both present and future generations through promoting the principles of ecologically sustainable development. b. to implement the principles in the NSW Coastal Policy, and in particular to: i. recognise and accommodation coastal processes and Climate Change.

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Section 8 of the Local Government Act, Section 79C of the EP&A Act and Section 37A of the Coastal Protection Act all require Council to consider ESD when carrying out its legislative responsibilities. Council has a duty to consider climate change, particularly in the following areas of planning law, policy and guidelines:

• NSW Coastal Protection Act 1979. Council is required to consider ecologically sustainable development principles when carrying out its legal responsibilities. • In order to benefit from s733 of the Local Government Act 1993 (exemption from liability), Councils should consider adopting projections that are widely accepted by ‘competent scientific opinion’. Adopting the whole RCP6.0 projection, from now until 2100, which is based on widely accepted scientific opinion should provide this protection. However, adopting the same sea level rise projection for 2050 and 2100, is not based on widely accepted scientific opinion, since the vast majority of the professionally accepted scientific projections show sea level rising from now until 2100 not remaining static or the same from 2050 to 2100. • In order to benefit from s733 of the Local Government Act 1993, Councils must consider the Guidelines for Preparing Coastal Zone Management Plans 2013 when preparing a coastal zone management plan (CZMP). Section 3.2.4 of the guidelines require Councils to categorise all private property subject to coastal hazards and document the intended response to managing the risks to the property for the current hazard, 2050 hazard area and 2100 hazard area. Without a 2100 sea level rise projection based on widely accepted scientific opinion, Council would not comply with the approach set out in the guidelines and may not therefore benefit from the protection of s733. Council would need to justify why it has not following the recommended approach. • Council’s must meet the minimum requirements of the uidelines when preparing a CZMP in accordance with Section 55D(1) of the Coastal Protection Act. • The Environmental Planning and Assessment Act, 1979, requires that the NSW Coastal Policy be taken into account. The policy requires that:

o Actions should be taken to prevent problems for future generations; and o A risk-adverse approach should be taken regarding land-use planning for sea level rise. • The recent state government planning circular requires Councils to identify the current and future coastal hazards on s.149 certificates • Section 55D(1) of the Coastal Protection Act directs that Council is to prepare a draft coastal zone management plan in accordance with the Minister’s guidelines. The Minister’s adoption of the guidelines for the purposes of the Coastal Protection Act, 1979, was notified in the Government Gazette on 19 July 2013.

An approach to implementing appropriate Development Controls

# The Planning and Policy Response Framework will allow preparation of a CZMP in accordance with the guidelines. As stated above, the guidelines (Attachment A) require that a CZMP categorise all private property subject to coastal hazards and document the intended response to managing the risks to the property. Three risk and response

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categories are presented in Table 5 and 6 on page 14 in Section 3.2.4 of the guidelines. Property risk categories are listed below. These requirements are also outlined in advice from the NSW Office of Environment & Heritage (OEH) to Eurobodalla (Attachment B) which was emailed to Councillors on 3 December 2014. See specifically point 1, dot point 3 and 4.

Risk category Hazard area for property

1 Current hazard area 2 2050 hazard area (i.e. likely to be affected by erosion or recession in the next 40 years) 3 2100 hazard area (i.e. likely to be affected by erosion or recession in the next 40-90 years)

The Minister may refuse to certify a draft CZMP if it has not been prepared in accordance with the Act and guidelines.

Insurer’s Position

# Council’s insurers, Statewide Mutual, sought legal advice (Attachment C) in relation to planning for sea level rise and provided this information to Council. This advice included, in respect to sea level rise benchmarks, that:

“If a Council was to adopt a benchmark significantly less than those set out in the Policy, it places itself in a position where it may not be able to successfully rely upon the defences in the Civil Liability Act 2002 and the Local Government Act 1993. If this course is to be considered by Council, it would need to obtain compelling advice to support the benchmark it decided to select. To further protect itself and demonstrate the reasonableness of that decision, we would recommend the advice be obtained from an independent third party and supported by the necessary scientific data”.

The ‘Policy’ in the above extract refers to the previous NSW Government Sea Level Rise Policy Statement (ie. 0.4 and 0.9).

Should Council adopt an approach contrary to the guidelines the onus will be on Council to justify its action, especially as it is not only contrary to the guidelines but also the recommendation of Council’s independent expert advice. This advice is contained in the South Coast Regional Sea Level Rise Planning and Policy Framework report, which takes into account legal advice and was supported by the necessary scientific data and staff recommendations.

The following table provides a checklist and the steps that should be followed to benefit from the good faith provisions, protection from liability, in accordance with Section 733 of the Local Government Act, 1993.

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s.733 Local Government Act – Good Faith Provisions Checklist

Council action to date YES NO • Adopt a projections based on widely accepted competent scientific opinion. X Note: adopting the same projection for 2050 and 2100 (e.g. 23cm), a straight line projection, is not based on widely accepted competent scientific opinion. • Adopt a robust planning and policy response framework that complies with the guidelines that is based on independent expert advice and documents how Council ? is responding and why it has chosen to respond in a particular way. • Map the current, 2050 and 2100 coast erosion risks and ? prepare CZMP in accordance with Guidelines. • Apply the adopted sea level rise projections to review controls in consultation with the development planning ? community, using the adopted Response Framework (e.g. review chapter G6 SDCP). • Apply the adopted sea level rise projections for the preparation and review of flood studies, flood risk management studies and plans, coastal hazard studies and  asset management plans.

Minister’s announcement of Stage 2 Coastal Reforms

Relevant to this report is the Environment Minister Rob Stokes address to the NSW Coastal Conference on 13 November 2014, announcing the Stage 2 Coastal Reforms. A copy of the full address can be viewed at: http://www.environment.nsw.gov.au/resources/coasts/coastreforms-minister-speech- 13nov14.pdf

This importantly addressed the signing of CZMPs prepared in accordance with the guidelines and how future funding would be based on adopted plans. The Minister stated that:

“These reforms are essential. Our current legislative and policy settings weren’t designed for the pressures and challenges facing our coast and coastal communities today.”

“Perhaps the most fundamental challenge is the inherently dynamic character of the coastline, which is subject to the effects of erosion, accretion and inundation. Climate change is expected to increase this variability.”

“The new Coastal Management Act will change this. It will situate coastal management planning firmly within the IP&R framework, to deliver and more cohesive and integrated approach to coastal zone management planning.”

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“I have begun the process of certifying Coastal Zone Management Plans that have been prepared by councils under Ministerial direction, where those plans have been prepared in accordance with current guidelines.

My expectation is that councils will also move forward and submit these coastal zone management plans to me as soon as possible and by 30 June 2015.”

“Because we are establishing this strategic approach to coastal zone management planning, from 1 July 2015 we will no longer be providing piecemeal grants for ad-hoc works outside of a certified plan, where council is subject to Ministerial direction.”

The above statements reinforce that Council should prepare its CZMP in accordance with the guidelines and categorise private property subject to coastal hazards for the current, 2050 and 2100 areas in accordance with Section 3.2.4 of the guidelines. It is essential that Council prepare its CZMP in accordance with the guidelines to ensure the Minister certifies the CZMP which will then enable Council to seek NSW Government funding for coastal zone management. Plans not prepared in accordance with the guidelines would need to justify departures from recommended practice and illustrate compliance with the broad overarching objectives if Ministerial support is to be gained.

What do our lawyers indicate?

# Following consideration of legal advice (see Confidential Attachment D) it is staff opinion that Council, to protect itself and demonstrate reasonableness of any decision, should utilise information to develop its CZMP policy and development controls, obtained from an independent third party and supported by the necessary scientific data.

It should also be noted that the guidelines do not mandate Council’s response in relation to these hazards but require Council’s to document the way in which they will respond to these hazards. This is the purpose of preparing the South Coast Regional Sea Level Rise Planning and Policy Response Framework in partnership with Eurobodalla Council to identify an appropriate response framework that suited our communities, provides certainty around planning actions but also offers flexibility and adaptability so that the framework can be updated as new scientific information about sea level rise becomes available.

Additional sea level rise information # Additional scientific information came to Council’s attention after the Draft Response Framework report and the business paper report for the 28 October 2014 meeting of Council were completed. A link to this publication, the Global Carbon Project, 2014 (Attachment E) Betting on negative emissions”, Nature Climate Change – Fuss et al. 2014- http://sites.biology.duke.edu/jackson/ncc2014.pdf) was emailed to Councillors on 28 October 2014 and also discussed at the Councillor briefing on 27 October 2014. A copy of this report is included in the attachments.

The data illustrates that current global emissions are increasing at levels consistent with the RCP8.5 projection. This scientific data showing actual global emissions are increasing is consistent with IPCC projections that show sea level rise increasing.

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Benefits of the Response Framework

There are a number of benefits of the Response Framework including: • Consistency with the Ministerial reform agenda; • Unlike the projections that are determined by International experts, the local community will have the opportunity to contribute to how the Planning and Policy Response Framework is developed and implemented; • Broadening the range of planning periods to allow for a more flexible range of potential development outcomes depending on the type of development proposed; and • The framework also recommends adoption of four coastal hazard planning areas (CHPA’s). These four CHPA are compared to the existing precincts in the Citywide DCP chapter G6 – Coastal Management areas.

(http://dcp2014.shoalhaven.nsw.gov.au/sites/dcp2014.shoalhaven.nsw.gov.au/files/Chap ter%20G6.pdf)

CHPA Description Citywide DCP Examples of the type of recommended chapter G6 development controls by framework equivalent Current CHPA’s that would Precinct 1 High No new development allowed. Hazard be affected by Risk Minor additions and/or coastal processes (seaward of the alterations allowed subject to and flooding 2025 line) strict controls. over a 0 to 15 year time frame Medium Term CHPA’s that would Precinct 2 New single residential allowed Projected be affected within Moderate Risk subject to adaptable designs. Hazard 15 to 35 (seaward of the No medium density. No years (this 2050 line and subdivision. generation) landward of the 2025 line) Strategic CHPA’s that would Precinct 2 Same as above for residential. Projected be affected within Moderate Risk Medium density and 35 to 100 years (seaward of the subdivision allowed subject to (multigenerational) 2100 line and controls. Rezoning (more land ward of the flexible than current controls) 2050 line) Possible CHPA’s that would Precinct 3 Low Only applies to critical Maximum be affected by very Risk infrastructure. (eg. Sewerage Strategic high treatment plants, hospitals etc) estimates of sea level rise by 2100

The CHPA’s will be adjusted over time as new information and projections become available.

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The response framework recognises that areas already zoned for development should be treated differently from areas where rezoning to allow new development is proposed. A less risk adverse approach should be applied to areas already zoned for development.

CONCLUSION

To ensure preparation of a CZMP in accordance with the minimum legal requirements, afford Council protection under s733 of the Local Government Act, enable the Minister to certify Council’s draft CZMP and for Council to secure funding for coastal zone management, Council should adopt a 2100 sea level rise projection and adopt the South Coast Regional Sea Level Rise Planning and Policy Response Framework to provide the most flexible and defendable position, for basing decision making determinations.

FINANCIAL IMPLICATIONS:

Coastal and flood studies are generally reviewed on average every seven (7) years. The integration of adopted sea level rise projections in these studies will be done through this review process with a priority given to the coastal hazard studies. The costs will be met through annual budget allocation for the flood and coastal programs. The financial and resource implications are outlined in a separate report to this Committee.

COMMUNITY ENGAGEMENT:

Should the South Coast Regional Sea Level Rise Planning and Policy Response Framework be adopted by Council, community engagement on this framework will be undertaken as part of Council’s coming Coastal Community Engagement Program on the Coastal reform.

Community engagement would also be undertaken as part of the review of Chapter G6: Areas of Coastal Management and other relevant chapters of the Shoalhaven Development Control Plan. The adopted sea level rise projections would be used to review the development controls and community engagement undertaken to develop suitable planning controls based on the South Coast Regional Planning and Policy Response Framework.

Tim Fletcher DIRECTOR PLANNING AND DEVELOPMENT SERVICES

R.D Pigg GENERAL MANAGER

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