Waverley Council

PO Box 9, Bondi Junction, NSW 1355 DX 12006 Bondi Junction. Telephone: 9369 8000 Fax: 9387 1820 Email: [email protected]

10 September 2013

A meeting of COUNCIL will be held at Waverley Council Chambers, Bondi Road, Bondi Junction at:

7.00PM, TUESDAY, 17 SEPTEMBER 2013

QUORUM: Seven Councillors

APOLOGIES: E-mail the General Manager or Governance Manager

Late notice by telephone or through a Councillor attending the meeting

Tony Reed GENERAL MANAGER

MEETING DATES FOR OCTOBER 2013

Finance, Ethics & Strategic Planning Committee 01/10/2013

Community, Housing, Environmental Services & Public Works Committee 01/10/2013

Council Meeting 15/10/2013

AGENDA

1309.1 OPENING PRAYER & ACKNOWLEDGMENT OF INDIGENOUS HERITAGE

The Mayor will read the following Opening Prayer and Acknowledgment of Indigenous Heritage.

“God we pray for wisdom to govern with justice and equity. That we may see clearly and speak the truth and that we work together in harmony and mutual respect. May our actions demonstrate courage and leadership so that in all our works thy will be done. Amen.

Waverley Council respectfully acknowledges our indigenous heritage and recognises the ongoing Aboriginal traditional custodianship of the land which forms our Local Government area.”

1309.2 LEAVES OF ABSENCE AND APOLOGIES

1309.2.1 Leave of Absence – Cr Miriam Guttman-Jones (A03/0029)

Cr Guttman-Jones has applied for leave of absence from Council for the period 21 September 2013 to 6 November 2013 inclusive.

Recommendation: That Council grant leave of absence to Cr Guttman-Jones for the period 21 September 2013 to 6 November 2013 inclusive.

1309.3 DECLARATIONS OF INTEREST

1. ______

2. ______

1309.4 CONFIRMATION OF MINUTES

1309.4.1 PAGE 16 Council Meeting – 20 August 2013

Recommendation: That the Minutes of the Council meeting of 20 August 2013 be received and noted, and that such Minutes be confirmed as a true record of the proceedings of that meeting.

Waverley Council Meeting – Tuesday, 17 September 2013 2

1309.5 ADDRESSES TO COUNCIL BY MEMBERS OF THE PUBLIC

1. ______

1309.6 MAYORAL MINUTE

1309.7 OBITUARIES (A02/0017)

Elisabeth Wynhausen Christine Jard

The Mayor will ask Councillors for the submission of any other Obituary Notices.

Recommendation: That a letter of sympathy be forwarded to the families of the deceased named above expressing the condolences of the Mayor, Councillors and staff in the bereavement they have experienced.

Council will rise for a minute’s silence for the souls of people generally who have died in our Local Government area.

1309.8 QUESTIONS BY COUNCILLORS WITH NOTICE

1309.8.1 Waverley Library - Children’s Library (A05/0327)

The following questions were submitted by Cr Strewe:

What is happening at the Children’s library?

1. A once wonderful children’s collection is being reduced at an alarming rate, why?

2. Children’s librarians have a particular role to play in putting young readers in touch with literature/resources that will excite/engage them and encourage them to become readers in an ongoing way – so they need to know something about children’s literature. Do children’s librarians receive training about children’s literature (current and historical) on an ongoing basis and want form does this training entail?

3. The young adult section has recently been relocated to the adult section, essentially this means there is no interaction at all between the kids choosing Young Adult titles and children’s librarians who, in theory at least, can provide information and guidance about the books that are there. Why was this change made and were Councillors involved in any way?

Waverley Council Meeting – Tuesday, 17 September 2013 3

4. Are these changes in any policy document anywhere?

5. Councillors were assured with the outsourcing of book buying that Waverley would still choose its own titles is this happening?

6. How up to date is the Library Policy and where can interested residents find a copy?

1309.8.2 Beach Measurements (A08/1036)

The following question was submitted by Cr Strewe:

Does Council have measurements for the actual width of our beaches from sea wall to the high tide mark or are the only assessments we have, (for tides not beach width), done by the Bureau of Meteorology?

1309.8.3 Policy in regard to other vehicles parking in a designated ‘motorbike only’ space (A03/2581)

The following question was submitted by Cr Strewe:

Small spaces on streets are in places designated motorbike only spaces. Recently a very small car parked within one of these spaces on Marine Drive and received a ticket. What is the Council policy on this considering that motorbikes can park anywhere on the street and are not limited to just these spaces?

1309.9 QUESTIONS BY COUNCILLORS TO THE MAYOR WITHOUT NOTICE

Note from the General Manager: In accordance with Council’s adopted procedures, each Councillor may ask the Mayor one question without notice. Councillors are requested to submit their question in writing to the Mayor at the time the question is asked.

1. ______

1309.10 PUBLICATIONS RECEIVED

1. The Australian Local Government Year Book – 2013.

2. Government News – August / September 2013 – Volume 33 Issue 4.

Recommendation: That Council receive and note the following publication received from public bodies:

Waverley Council Meeting – Tuesday, 17 September 2013 4

1309.11 NOTICES OF MOTION SUBMITTED BY COUNCILLORS

Note from the General Manager: Council should note that for the purposes of budgetary control and planning, any Notices of Motion received and endorsed by Council, will be assessed for budgetary implications.

If they cannot be achieved within existing allocations they will be referred to the Finance, Ethics & Strategic Planning Committee for its consideration of budget implications, in conjunction with the budget estimates or at a quarterly review of the budget.

The report to Council about progress in achieving Council’s Motions will also highlight whether budget issues are involved.

1309.11.1 PAGE 36 Community Engagement Strategy for Waste (A08/1210)

The following Notice of Motion was submitted by Cr Burrill:

That the Community Engagement Strategy for Waste that was endorsed at the Finance, Ethics & Strategic Planning Committee meeting on 6 August 2013, and which is yet to be implemented, be refined as set out in the attachment to this Motion.

BACKGROUND A report came to the Finance, Ethics & Strategic Planning Committee meeting of 6 August 2013 setting out a proposal for a Community Engagement Strategy for Waste Education. The Committee endorsed this strategy under its delegated authority. In discussion with staff I have been informed that the strategy is as yet to be implemented. Accordingly, there is an opportunity to refine and clarify the broad concepts as advocated by this strategy. The proposed changes do not alter the direction and outcomes of the strategy but rather will provide the community with clarification and greater understanding of the outputs which underpin the strategy.

1309.11.2 Boot Factory - Independent Heritage Engineer Assessment (A08/1326)

The following Notice of Motion was submitted by Crs Masselos, Strewe and Wakefield:

That Council allow an independent heritage engineer access to the interior and exterior of Boot Factory to make a separate assessment of its condition. The General Manager to ensure all reasonable standards and practices are adhered to.

BACKGROUND Concerned residents have raised significant funds to engage a heritage engineer to view the Boot Factory and make an assessment of its condition. Allowing an independent heritage engineer access might allay fears that the decision to demolish is purely a decision to facilitate sale of the site to a developer. Or it might allay the fears of imminent collapse and allow for suitable refurbishment.

Waverley Council Meeting – Tuesday, 17 September 2013 5

1309.11.3 Pilot program of recording and documenting the migration experiences of post war Jewish immigrants and their descendents (A03/0336-24)

The following Notice of Motion was submitted by Cr Guttman-Jones and Goltsman:

That Waverley Council, together with the Waverley library begin the following process:

1. Investigate a pilot program of recording and documenting the migration experiences of post war Jewish immigrants and their descendents who initially settled in Waverley after their arrival in Sydney.

2. If this pilot proves to be successful, Waverley should then begin the same process for other post war groups which initially settled in Waverley and continues to do so.

BACKGROUND 17% of Waverley residents are Jewish. This concentration of Jews is higher than any other LGA in NSW.

The largest influx of Jewish immigrants arrived in Sydney in the period after World War II, in the years between 1946 and 1961, the vast majority being Holocaust survivors. Between 1946 and 1954 over 17,000 Jews arrived from Europe and Shanghai. A further 10,000 had arrived by 1961, with a significant number coming after the Hungarian uprising of 1956. In the 70’s and 80’s when the USSR opened the gates Waverley then saw a surge of Russian Jewish immigrants and Russian is now the second most common language spoken in Waverley.

The majority of post war Jewish immigrants initially settled in the Waverley LGA. As with all immigrant groups from Europe, these migrants had a lot of adjustments to make but over time contributed greatly to the LGA and they are an integral part of Waverley’s history in the changing mosaic of our local government area.

Because of the ageing of these immigrants and their descendents, it is important that this period of the history of Waverley be recorded in their own words so that their experiences are not lost and for it to be officially recognised as part of Waverley’s history. Waverley Library is now the home for the Jewish genealogical society.

1309.11.4 Planning Bill 2013 Exposure Draft (A11/0500)

The following Notice of Motion was submitted by Cr Kanak:

That:

1. Council writes to the Premier of New South Wales, The Hon. Barry O'Farrell MP, requesting he commit to a rewriting of the Planning Bill 2013 Exposure Draft and a re- exhibition of any proposed legislation, citing the major points raised in Council’s previous submissions on the Planning Legislation and in recognition of wider professional and community concerns.

2. A copy of the letter be forwarded to all Members of the NSW Parliament for their attention and to all Waverley Councillors for their information.

Waverley Council Meeting – Tuesday, 17 September 2013 6

3. Council writes to the Department of Local Government NSW urging the Chief Executive to make representations to the Premier that any new planning legislation which attracts the level of criticism from reputable bodies such as the ICAC, the Law Society of NSW, Australia ICOMOS, and peak environmental and community groups, should not be passed by Parliament until further extensive rewriting and consultation has occurred, including with Local Government, which will have primary responsibility for implementation of the Act.

BACKGROUND Widespread community concerns, and the admission of the Director-General of the NSW Department of Planning, Mr. Sam Haddad, that Departmental officers have provided ‘inaccurate or misleading’ information during public consultation on the planning legislation, is alarming. Mr Haddad admitted that key elements of the draft legislation do not accurately reflect government’s policy intent and its very real impacts on the rights of the community, and that significant drafting errors appear to have been made.

Economic growth has been placed at the forefront of the draft legislation, with heritage, including Aboriginal Archaeological heritage, the environment and environmentally sustainable development principles (ESD) and design quality downgraded. Opportunities for increased corrupt practices and constitutional challenges have been identified by ICAC and the Law Society of NSW.

1309.11.5 Bronte RSL (A05/1434)``

The following Notice of Motion was submitted by Cr Kanak:

That:

1. Council requests the Mayor to write to Mr. Don Rowe, OAM, RSL NSW State President, asking:

(a). Why the Bronte RSL (and other RSL properties in Sydney’s eastern suburbs) is/are being sold at a time when veterans are returning from Afghanistan and Iraq and having difficulty finding jobs, and accessing support services;.

(b). What role NSW RSL has in the ‘The Securing our Veterans’ Future Initiative’;

(c). What other initiatives does RSL NSW see as a priority for the benefit of our returning military veterans; and

(d). What other action is NSW RSL taking in Waverley to support troops returning from Afghanistan and Iraq to help them to connect with the community they have served, particularly with reference to land holdings and the potential they offer to provide support services, rest and respite?

2. A copy of this letter is forwarded to NSW Minister for Citizenship and Communities, Victor Dominello, for his information.

3. The NSW RSL’s response is presented to Council at the earliest opportunity

Waverley Council Meeting – Tuesday, 17 September 2013 7

BACKGROUND The RSL’s Bronte site was originally established for a worthy community benefit. This land, and other RSL sites, should continue to provide benefits both to the veterans and their families, and to the wider community.

Recently launched by NSW Minister for Citizenship and Communities, Victor Dominello, the "Securing our Veterans' Future Initiative" jointly run by the NSW Government, Clubs NSW and the RSL and Services Clubs Association, is modelled on re-employment programmes in the US. It will place former soldiers in the hospitality sector in RSL clubs around the state. Support services, training, rest and respite are also likely future needs for veterans and their families. As Council routinely demonstrates its support for all the RSL activities in Waverley, it is appropriate for Council to recognise the ‘Securing our Veterans Future’ initiative and promote the opportunities offered by the Bronte RSL facility.

1309.12 ADDITIONAL MATTERS FOR CONSIDERATION

1309.12.1 PAGE 44 12 Military Road, North Bondi – Alterations and additions to existing dwelling to create multi - dwelling housing (3 dwellings) (DA-129/2013)

Report dated 30 August 2013 from the Development and Building Unit.

Recommendation: That the application be approved in accordance with the conditions contained in this report.

1309.12.2 PAGE 76 Alcohol-Free Zone – Dudley Page Reserve and Caffyn Park, Dover Heights (A11/0738)

Report dated 2 September 2013 from the Director, Community and Recreation Services about the establishment of an Alcohol-Free Zone on the roadways and footpaths around Dudley Page Reserve and Caffyn Park on 5 October 2013.

Recommendation: That Council:

1. Receives and notes this report.

2. Endorses the re-establishment of an Alcohol-Free Zone as indicated on the attached map (Attachment 1).

3. Notes the necessary signs will be produced and erected in the key locations in accordance with the Local Government Act 1993.

Waverley Council Meeting – Tuesday, 17 September 2013 8

1309.12.3 PAGE 79 Proposed grant funding for schools and early education centres (A12/0030)

Report dated 4 September 2013 from the Director, Planning and Environmental Services about establishing an ongoing small grants program for Waverley schools and early education centres.

Recommendation: That Council supports the establishment of an ongoing small grants program for Waverley schools and early education centres.

1309.12.4 PAGE 81 Artist in Residence Program 2014 (A07/1554-11)

Report dated 5 September 2013 from the Director, Community & Recreation Services about Waverley Public Art Committee recommendations for the January-June 2014 Waverley Artist In Residence Program

Recommendation: That Council:

1. Approves offers to Cat Jones, Ella Barclay and Sean Rafferty for a place in the January – June 2014 Artist in Residence program.

2. Places Guy Francis Martin and Ella Condon on the waiting list for the January–June 2014 Artist in Residence Program.

1309.12.5 PAGE 84 Draft Annual Financial Statements Year Ended 30 June 2013 (A02/0647-09)

Report dated 9 September 2013 from the Director, Corporate & Technical Services in relation to the Draft Annual Financial Statements year ended 30 June 2013.

Recommendation: That:

1. In the opinion of the Councillors of Waverley Council:

(a) the accompanying General Purpose Financial Statements of the Council for the year ended 30 June 2013, are properly drawn up in accordance with the provisions of the Local Government Act, 1993, and the Regulations thereunder and so as to give a true and fair view of:

(i) The state of affairs of the Council as at 30 June 2013, and the operating result and cash flows for the financial year ended on that date of the Council and all controlled entities; and

(ii) The other matters required to be disclosed;

(b) The General Purpose Financial Statements are in accordance with the accounting and other records of the Council;

Waverley Council Meeting – Tuesday, 17 September 2013 9

(d) The General and Special Purpose Financial Statements are drawn up in accordance with the Australian equivalents to International Financial Reporting Standards (AIFRSs), applicable Australian Accounting Standards, Urgent Issues Group Consensus Views, the Local Government Act (1993) and Regulations and the Financial Reporting Guidelines for NSW Councils; and

(e) No circumstances have arisen which would render the report false or misleading in any way.

2. The General and Special Purpose Financial Statements be certified by the Mayor, a Councillor (to be nominated), General Manager and Responsible Accounting Officer (Financial Services Manager) in accordance with section 413 (2)(c) of the Local Government Act 1993.

3. Pursuant to the provisions of Section 413 of the Local Government Act 1993, Council hereby declares that the Draft Annual Financial Statements (including General Purpose and Special Purpose Financial Statements) for the year ending 30 June 2013, be referred for audit.

4. Public notice of the meeting to be held on Tuesday, 15 October 2013, be given to the newspapers to be published in the week commencing 7 October 2013, including the publication of all documents required under Section 418 of the Local Government Act, 1993.

5. Council resolve that at the meeting of Council to be scheduled for Tuesday, 15 October 2013, whereby Council will present its audited financial report and Auditor’s report to the public.

1309.12.6 PAGE 188 Venue hire - Expression of Interest (EOI) process. (A13/0273)

Report dated 6 September 2013 from the Director, Community and Recreation Services about the proposed introduction of an Expression of Interest (EOI) process for regular hirers of Waverley Council indoor venues.

Recommendation: That Council approve the introduction of an annual EOI process for regular hirers of Waverley Council indoor venues.

1309.12.7 PAGE 193 Renewal of membership to the Community Safety Advisory Committee (A03/0544-03)

Report dated 5 September 2013 from the Director, Community and Recreation Services about renewal of membership of the Community Safety Advisory Committee for the Committee’s third two year term.

Waverley Council Meeting – Tuesday, 17 September 2013 10

Recommendation: That Council endorses Precinct and Community representatives for a two year term on the Community Safety Advisory Committee as follows:

1. Peter Lynch and Peter Quartly - Combined Precincts representatives.

2. Ron Nothman and Ludovico Fabiano - Community representatives.

3. WAYS Youth Services - Youth organisation.

1309.12.8 PAGE 195 Classification of Council Land in Tamarama Park (A05/1644)

Report dated 6 September 2013 from the Director, Corporate and Technical Services about classification of land in Tamarama Park.

Recommendation: That Council resolves to rectify Council’s land register to reflect the proper classification of the land formerly Old Systems title Book 2662, No. 576 and now being Lot 11, DP 1153342 which adjoins Tamarama Park and is close to Illawong Avenue (as indicated on the attached diagram) as ‘community land’ in accordance with the provisions of the Local Government Act 1993.

1309.12.9 PAGE 202 Capital Works Project Review Group (A07/1529-02)

Report dated 15 August 2013 from the Director, Corporate & Technical Services regarding the establishment of a Capital Works Project Review Group.

Recommendation: That Council

1. Receive and note this report.

2. Nominate 3 Councillors as participants on the Capital Works Project Review Group for the period of this Council term.

1309.12.10 PAGE 207 Small Grants Program 2013-2014 - Round 1 (A12/0442)

Report dated 26 August 2013 from the Director, Community & Recreation Services about the Small Grants Program (Round 1) 2013-2014.

Recommendation: That Council approve the Small Grants Program (Round 1) 2013-2014 grants to the groups and activities as set out in this report.

Waverley Council Meeting – Tuesday, 17 September 2013 11

1309.12.11 PAGE 223 Additional Information for Asbestos Policy (A05/0190)

Report dated 9 September 2013 from the Director, Planning & Environmental Services regarding the draft Asbestos Policy and the provision of advice for people in the “No Licence Required” category to ensure the safe removal of asbestos.

RECOMMENDATION: That Council receive and note this report.

1309.12.12 PAGE 226 Request for the Calling of Tenders for Customer Request Management System (A13/0290)

Report dated 9 September 2013 from the Director, Community and Recreation Services to outline the findings of an Expression of Interest process and seeking to proceed to selective tender for the provision of a Customer Request Management System.

Recommendation: That Council approves the calling of selective tenders for a Customer Request Management System from:

 Origen Technology  Voltum Consulting  Open Office Pty Ltd  Merit Technology  Infor Global Solutions

1309.13 ADOPTION OF COMMITTEE MINUTES

1309.13.1 PAGE 231 Waverley Traffic Committee Meeting – 22 August 2013

Recommendation: That Part 1 of the Minutes of the Waverley Traffic Committee Meeting of 22 August 2013 be received and noted, and that the recommendations contained in Clauses WTC-1308.C1 to WTC-1308.C4, WTC-1308.V1 to WTC-1308.V3, WTC-1308.Z1 to WTC- 1308.Z3 and WTC-1308.L1 be adopted.

Save and except the following:

1. ______

The late email / report considered at Item WTC-1308.L1 by the Committee is attached to the end of the Minutes for Council’s consideration.

Waverley Council Meeting – Tuesday, 17 September 2013 12

1309.13.2 PAGE 239 Finance, Ethics & Strategic Planning Committee Meeting – 3 September 2013

Recommendation: That the Minutes of the Finance, Ethics & Strategic Planning Committee Meeting of 3 September 2013 be received and that such Minutes be confirmed as a true record of the proceedings of that Meeting and that the decisions contained in Clauses F- 1309.1, F-1309.3 and F-1309.4 be received and noted and the recommendations contained in Clauses F-1309.2 and F-1309.5 be adopted.

Save and except the following:

1. ______

1309.13.3 PAGE 246 Community, Housing, Environmental Services & Public Works Committee Meeting – 3 September 2013

Recommendation: That the Minutes of the Community, Housing, Environmental Services & Public Works Committee Meeting of 3 September 2013 be received and that such Minutes be confirmed as a true record of the proceedings of that Meeting and that the decision contained in Clause C-1309.1, C-1309.3 and C-1309.4 be received and noted, and the recommendations contained in Clauses C-1309.2 and C-1309.5 be adopted.

Save and except the following:

1. ______

1309.14 GENERAL MANAGER’S REPORT

1309.14.1 PAGE 250 Joint Venture between Waverley and Woollahra Councils to construct and operate a depot facility at 67A Bourke Road, Alexandria (A12/0782)

Report dated 6 September 2013 from the General Manager in respect to negotiations regarding a joint venture to construct and operate a central depot facility at 67A Bourke Road Alexandria.

Recommendation: That Council receive and note the report regarding the proposed joint venture between Waverley and Woollahra Councils to construct and operate a central depot facility at 67A Bourke Road, Alexandria.

Waverley Council Meeting – Tuesday, 17 September 2013 13

1309.15 PETITIONS

1309.15.1 Blake Street, Rose Bay – Request for installation of traffic calming devices (A03/0042- 04 and A03/0100)

Petition containing 34 signatures of residents of Blake Street, Rose Bay, requesting that traffic calming devices be placed in Blake Street, Rose Bay.

Recommendation: That the petition be received ad noted and forwarded to the Director, Corporate and Technical Services.

1309.16 QUESTIONS BY COUNCILLORS FOR NEXT COUNCIL MEETING

1. ______

1309.17 URGENT BUSINESS

1309.18 MATTERS TO BE DEALT WITH IN CLOSED SESSION

Note from the General Manager: It is my opinion that the business listed under this section is of a kind referred to in section 10A(2) of the Local Government Act 1993 and, under the provisions of the Act and the Local Government (General) Regulation 2005, should be dealt with in a part of the meeting that is closed to members of the public and the media.

In accordance with section 10A(2) of the Act, council may close part of its meeting to deal with business of the following kind;

(a) personnel matters concerning particular individuals.

(b) personal hardship of any resident or ratepayer.

(c) information that would, if disclosed, confer a commercial advantage on a person with whom Council is conducting (or proposes to conduct) business.

(d) commercial information of a confidential nature that would, if disclosed:

i prejudice the commercial position of a person who supplied it: or ii confer a commercial advantage on a competitor of Council; iii reveal a trade secret.

Waverley Council Meeting – Tuesday, 17 September 2013 14

(e) information that would, if disclosed, prejudice the maintenance of law.

(f) matters affecting the security of Council, Councillors, Council staff and Council property.

(g) advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the grounds of legal professional privilege.

(h) information concerning the nature and location of a place or an item of Aboriginal significance on community land.

Pursuant to section 10A(4) of the Act and clause 252 of the Regulation, members of the public may make representations to the meeting immediately after the motion to close part of the meeting is moved and seconded, as to whether that part of the meeting should be closed.

There are no matters proposed to be dealt with in Closed Session:

1309.19 SUBMISSION OF RESCISSION MOTIONS

Note from the General Manager: Rescission motions must be submitted to the General Manager, or in the absence of the General Manager a member of Council’s Governance Unit, and announced before the close of the meeting. The date and time of receipt will be noted on all rescission motions.

Rescission motions received before 10am on the next working day following the meeting will stay action to implement Council’s decision until the rescission motion has been determined. This is in line with Section 372 of the Local Government Act and Council’s Code of Meeting Practice.

Rescission motions received after 10am on the next working day following the meeting may not stay action on implementing Council’s decision.

Rescission motions will generally be dealt with at the next Council meeting.

The Chair will call for the submission of any rescission motions.

Waverley Council Meeting – Tuesday, 17 September 2013 15

MINUTES OF THE WAVERLEY COUNCIL MEETING HELD AT THE WAVERLEY COUNCIL CHAMBERS ON TUESDAY, 20 AUGUST 2013

PRESENT

Councillor Betts (Mayor) (Chair) Councillors Burrill, Clayton, Cusack, Goltsman, Guttman-Jones, Kanak, Masselos, Mouroukas, Strewe and Wakefield.

At the commencement of proceedings at 7.03pm, those present were as listed above with the exception of Cr Wakefield who arrived at 7.11pm.

1308.1 OPENING PRAYER & ACKNOWLEDGMENT OF INDIGENOUS HERITAGE

The Mayor read the following Opening Prayer and Acknowledgment of Indigenous Heritage:

Waverley Council respectfully acknowledges our indigenous heritage and recognises the ongoing Aboriginal traditional custodianship of the land which forms our Local Government Area.”

1308.2 LEAVES OF ABSENCE AND APOLOGIES

1308.2.1 Leave of Absence

Cr Kay was previously granted a leave of absence for this meeting.

1308.2.2 Apologies

There were no apologies for this meeting.

This is page 1 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 16 1308.3 DECLARATIONS OF INTEREST

The Chair called for declarations of interest and none were received.

1308.4 CONFIRMATION OF MINUTES

1308.4.1 Council Meeting – 16 July 2013

MOTION / DECISION (Guttman-Jones / Goltsman)

That the Minutes of the Council meeting of 16 July 2013 be received and noted, and that such Minutes be confirmed as a true record of the proceedings of that meeting.

1308.5 ADDRESSES TO COUNCIL BY MEMBERS OF THE PUBLIC

1. D. Corlette (Objector), R. Green (on behalf of an Objector) and A. Betros (on behalf of the Applicant) – Item 1308.12.1 – 58 Queens Park Road, Queens Park – Alterations and additions to existing dwelling (DA-541/2012).

2. P. Ciaglia (Objector) – Item 1308.13.1 – Waverley Traffic Committee Meeting Minutes – 25 July 2013 – Clause WTC.1307.C6 – 164 Bronte Road, Waverley – Bus Zone (A02/0225-02).

1308.6 MAYORAL MINUTE

1308.6.1 Motorcycle Parking in Waverley Local Government Area (A03/1214)

MOTION / UNANIMOUS DECISION (Betts)

That:

1. Council continue the current roll-out of motorbike parking in residential areas under the current plan of converting spaces between driveways to motorbike parking.

2. Council also investigate the best places in the Bondi Junction and Bondi Beach commercial centres to place more spaces dedicated for motorbikes to park free but time restricted.

This is page 2 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 17 3. A report be provided identifying a minimum of 2 new motorbike pod locations for Bondi Beach commercial centre and 3 new motorbike pod locations in Bondi Junction commercial centre for dedicated motorbike parking on a free but time restricted basis. Each pod should deliver a minimum of four free motorbike spaces. The report is to detail any options for time restrictions, details of logistical roll-out, as well as the social, environmental and economic benefits and costs of any proposals.

4. The report also includes updated information on the progress made towards achieving a 5% per annum increase in motorbike parking in Bondi Junction, as resolved by Council on 16 March 2010.

BACKGROUND Council is aware of calls for increased free parking for motorcycles. We have a number of initiatives already in place to increase motorbike parking throughout the LGA. For instance we have programmed to double the number of the free motorcycle parking spaces at Bronte towards the end of this year and are considering putting in some additional spaces in Queen Elizabeth Drive car park and Notts Avenue at the southern end of Bondi Beach. Additionally we have a policy where we will convert spaces in residential streets that are not big enough to fit a car to designated motorcycle parking spaces. These spaces are free and do not require meter tickets. On average, this program creates one or two extra motorcycle spaces per month.

Recent calls for free motorcycle parking in the metered zones on commercial streets may result in poorer sharing of space by cars and motorcycles and adversely impact the number of spaces left for cars. A better alternative is to share the road space in an orderly pattern making sure we have more space for motorbikes without losing too much for cars.

The report requested should provide options which will distribute the space properly to achieve a genuine increase in motorbike space with little, or if possible, no loss of space for the cars.

1308.7 OBITUARIES (A02/0017)

John Mouroukas

Felicity Slarke

MOTION / DECISION (Strewe / Goltsman)

That a letter of sympathy be forwarded to the families of the deceased named above expressing the condolences of the Mayor, Councillors and staff in the bereavement they have experienced.

Council rose for a minute’s silence for the souls of people generally who have died in our Local Government area.

This is page 3 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 18

1308.8 QUESTIONS BY COUNCILLORS WITH NOTICE

1308.8.1 Levy liability on Recycled Waste (A06/0377)

The following question was submitted by Cr Strewe:

Below is a quote from Inside Waste August 2013:

'Specifically, the recycler or transfer station will accrue a levy liability on receipt of waste into the premises. It can be claimed as a rebate from the EPA once the waste materials have been recycled and returned back [sic] into the productive economy.'

Can the Director clarify:

1. If the State Government is proposing a levy on all waste?

2. Does a 'levy liability' mean a book entry only or actual dollars changing hands?

3. If the levy is refundable who gets it, the recycler/transfer station or the council which presumably will have been charged the levy?

4. What specifically is 'the productive economy’?

5. Is sale of recyclable material to a reprocessor adequate to claim the rebate or does this mean something else?

6. What if, for economic reasons, a manager is retaining recyclables waiting for a price rise?

7. How will this charge, levy liability, affect Council's contracts?

The Director, Public Works & Services replied:

Councillors may recall that at the last Council meeting Council passed a resolution for Council to write to the Minister for the Environment asking what is going on with this change in legislation and asking for further consultation. We have had some further feedback from officers from the Environmental Protection Authority. Basically they are saying that the levy will apply to all waste that goes into a waste facility. There are some exclusions and that is if it is a green waste or a food organics facility, there is a blanket exemption. It has only had a second reading and there is going to be a further debate in the Lower House of Parliament in September. There is going to be some further public consultation on how the reading works and how the operation is likely to come into effect.

There has also been a another flyer put out by the EPA and basically what they are saying is that the payment will only be triggered when the waste leaves the site for disposal, when it goes to a landfill. You asked the questions: If someone has a recycled product for which they are waiting for a better commodity price? What happens when the waste stream remains on site for greater than 12 months? I guess that is part of the consultation process they will go through.

This is page 4 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 19 On waste that is stockpiled above legal limits, if you have a licensed facility for 10,000 tonnes and you have greater than that, you have to pay the levy. The levy is extinguished when the waste is transferred offsite for lawful reuse or further processing. You asked the question about the productive economy. The productive economy is talking about when the waste actually moves back into the market for sale. So basically they don’t have to pay the levy unless that happens. Our contracts are all secure in regards to what any impacts of the levy on our recycled paper and containers. Obviously our green waste will still remain exempt.

1308.8.2 Park Parade, Bondi – Proposed ‘One Way’ Traffic (Southbound) (A10/0459)

The following question was submitted by Cr Strewe:

Is the public consultation on the possibility of making Park Parade one way travelling south being widely advertised as if the change proceeds it will at the very least affect residents and traffic in Ocean and Watson Streets and potentially much further afield?

The Divisional Manager, Technical Services provided the following information in response:

Residents were informed of this proposal via a letter box drop conducted along Park Parade, Bennett Street, Ocean Street, parts of Bondi Road and parts of Birrell Street last week.

Also the issue was listed on Penkivil Precinct agenda on 5 August. Prior to this all precinct members were letter-box dropped to let them know a presentation would be taking place at the Precinct meeting about the proposal.

I gave a presentation to the Penkivil Precinct Meeting on Monday, 5 August with an opportunity for attendees to ask questions.

There is comprehensive information on Council's website about the proposal including a Q and A, FAQ, and facts and information explaining the proposed changes and the associated potential benefits and disadvantages. http://haveyoursaywaverley.com.au/parkpdeoneway

The consultation period is open until Friday, 16 August 2013.

1308.9 QUESTIONS BY COUNCILLORS TO THE MAYOR WITHOUT NOTICE

There were no questions by Councillors to the Mayor without Notice.

This is page 5 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 20

1308.10 PUBLICATIONS RECEIVED

MOTION / DECISION (Goltsman / Burrill)

That Council receive and note the following publication received from public bodies:

1. Scouts Australia NSW – Annual Review 2012 – 2013.

1308.11 NOTICES OF MOTION SUBMITTED BY COUNCILLORS

The report to Council about progress in achieving Council’s Motions will also highlight whether budget issues are involved.

1308.11.1 Free Motorcycle Parking in all Metered Street Zones in Waverley (A03/1214)

The following Notice of Motion was submitted by Cr Wakefield:

MOTION (Wakefield / Strewe)

That:

1. Council investigate the implementation of free motorcycle parking in all metered street zones in Waverley.

2. The analysis includes the financial costs, the logistical rollout and the social, economic and environment benefit of the change.

BACKGROUND: Council has an existing position to encourage more motorcycle usage. Motorcycles take up less space on the road when parked and are a viable alternative to car usage in our area. Currently motorcycles must pay the same parking fee as cars in metered areas even though motorcycles take up approximately a quarter of the space of a car. The current situation results in the incongruent outcome that motorcyclist are subsidising car users to park in Waverley.

This is page 6 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 21 DECISION: That the Motion not be adopted.

Division For the Motion Crs Guttman-Jones, Kanak, Masselos, Strewe and Wakefield. Against the Motion: Crs Betts, Burrill, Clayton, Cusack, Goltsman and Mouroukas.

1308.12 ADDITIONAL MATTERS FOR CONSIDERATION

1308.12.1 58 Queens Park Road, Queens Park – Alterations and additions to existing dwelling (DA - 541/2012)

Report dated 5 August 2013 from the Development and Building Unit.

MOTION / DECISION (Cusack / Burrill)

That the application be approved in accordance with the conditions contained in this report subject to the following additional conditions:

1. The proposed first floor is to be reduced at the rear by 1 metre on the western side and 2 metres on the eastern side so as to be set back generally in line with the existing predominant rear building line of the two adjoining properties.

2. The rear garage and cabana structure to be reduced in size and the design altered to include a pitched roof and to reflect the design character of the existing building and general area.

Division For the Motion: Crs Betts, Burrill, Clayton, Cusack, Guttman-Jones, Goltsman, Masselos, Mouroukas, Strewe and Wakefield. Against the Motion: Cr Kanak.

D. Corlette (Objector) and R. Green (on behalf of an Objector) and A. Betros (on behalf of the Applicant) addressed the meeting.

1308.12.2 Naval International Fleet Review October 2013 (A02/0197-29)

Report dated 6 August 2013 from the Director, Community and Recreation Services to inform Council of the Naval Fleet Review being held in Sydney Harbour over the October long weekend and impact on Dudley Page Reserve and Vaucluse areas.

This is page 7 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 22

MOTION / DECISION (Goltsman / Betts)

That Council

1. Receive and note this report.

2. Endorse the implementation of the New Year’s Eve traffic management arrangements to facilitate this event.

Division For the Motion: Crs Betts, Burrill, Clayton, Guttman-Jones, Goltsman, Mouroukas and Wakefield. Against the Motion: Crs Cusack, Kanak, Masselos and Strewe.

1308.12.3 Lease of Bronte House (A02/0250-03)

Report dated 8 August 2013 from the Director, Corporate and Technical Services, providing an update on progress with the lease of Bronte House and its condition.

MOTION / DECISION (Burrill / Cusack)

That:

1. Council receives and notes this update report.

2. Council makes a commitment to replace the roof of Bronte House in the near future as well as undertake any major renovations that cannot be guaranteed through a repairing lease.

3. The report to include advice on funding sources for both major and routine maintenance items such as the bay window and other cyclic repairs. Funding sources may include a repairing lease and/or options such as Historic Houses Trust and grants.

4. Discussions about the timing of any works on Bronte House be made with the tenants.

Division For the Motion: Crs Betts, Burrill, Clayton, Cusack, Guttman-Jones, Goltsman, Masselos, Mouroukas, Strewe and Wakefield. Against the Motion: Cr Kanak.

1308.12.4 Joint Regional Planning Panel (JRPP) Appointment 2013-2014 (A09/0422)

Report dated 9 August 2013 from the Director, Planning & Environmental Services providing details on the appointment of Council’s members to the JRPP due for commencement in 2013.

This is page 8 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 23

MOTION / DECISION (Betts / Clayton)

That:

1. Council endorse a recruitment process for members of our Joint Regional Planning Panel through expressions of interest.

2. Council endorse the continuation of the existing Council members until the new membership is finalised.

3. Council adopt the following documents in seeking new panel members:

 Appendix 1 – Operational Procedures – Appendix 1  Appendix 2 – Code of Conduct – Appendix 2  Appendix 3 – Complaints Handling Policy – Appendix 3

4. A further report be provided to Council at the conclusion of the recruitment process.

1308.12.5 Evaluation of Tender – External Auditing Services (A13/0192)

Report dated 12 August 2013 from the Director, Corporate and Technical Services about the tender assessment panel’s evaluation of the tender for External Auditing Services.

MOTION / DECISION (Cusack / Burrill)

That:

1. The Evaluation of Findings report attached to Council’s file be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993.

2. Council endorses the recommendation to enter into a contract with Hill Rogers Spencer Steer for a contract period of 6 years subject to agreement by both parties to contract conditions.

3. Council notify unsuccessful tenderers of the decision.

1308.12.6 Proposed sale of land, Lot 1, DP 1011994, Cnr Clyde Street and Hardy Street, North Bondi (A13/0145 & 1175/60/G)

Report dated 9 August 2013 from the Director, Corporate & Technical Services about the proposed sale of land, Lot 1, DP 1011994, Cnr Clyde Street and Hardy Street, North Bondi to the adjoining owner.

This is page 9 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 24

MOTION / DECISION (Goltsman / Betts)

That Council:

1. Proceed with the sale of land, Lot 1, DP 1011994, Cnr Clyde Street and Hardy Street, North Bondi, to the adjoining owner.

2. Authorise the Mayor and General Manager to complete negotiations, execute the necessary documents and affix the Council seal where necessary.

AMENDMENT (Wakefield / Strewe)

That before the sale of this parcel of land, a Caveat be placed on the title that prohibits structures being built within 3 metres of its eastern boundary.

THE AMENDMENT WAS PUT AND DECLARED LOST.

Division For the Amendment: Crs Guttman-Jones, Kanak, Strewe Masselos and Wakefield. Against the Amendment: Crs Betts, Burrill, Clayton, Cusack, Goltsman and Mouroukas.

DECISION: That the Motion be adopted.

Cr Kanak asked that it be recorded in the minutes that he voted against the Motion.

1308.12.7 Evaluation of Tender – Disposal of Green Waste (A13/0371)

Report dated 7 August 2013 from the Director, Public Works & Services about the tender assessment panel’s evaluation of the tender for the Disposal of Green Waste.

MOTION / DECISION (Goltsman / Burrill)

That:

2. Council endorses the recommendation to enter into a contract with Dial A Dump Industries Pty Ltd for a contract period of 3 years with a 2 x 1 Year Option subject to agreement by both parties to contract conditions.

3. Council notify unsuccessful tenderers of the decision.

This is page 10 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 25 1308.12.8 Proposal for Submission to the Review of the Liquor Act 2007 (A11/0709)

Report dated 8 August 2013 from the Director, Community and Recreation Services proposing a submission on behalf of Council to the statutory review of the Liquor Act 2007 currently being undertaken by the NSW Department of Trade and Investment Regional Infrastructure and Services.

MOTION / DECISION (Burrill / Clayton)

That Council authorises the Mayor, the Chair of the Community Safety Advisory Committee and the General Manager to approve a submission on behalf of Council to the statutory review of the Liquor Act 2007 by 30 August 2013.

1308.12.9 Exhibition of Draft Bondi Park, Beach and Pavilion Plan of Management (A12/0445)

Report dated 6 August 2013 from the Director, Community and Recreation Services regarding the public exhibition of the draft Bondi Park, Beach and Pavilion Plan of Management.

A copy of the Draft Bondi Park, Beach and Pavilion Plan of Management was issued separately.

MOTION (Clayton / Betts)

That Council:

1. Receive and note this report.

2. Authorise public exhibition of the draft Bondi Park, Beach and Pavilion Plan of Management for the statutory period of 28 days.

3. Note that the public exhibition will commence following review of the plan by the State Government Crown Lands division.

AMENDMENT (Wakefield / Burrill)

That the Draft Bondi Park, Beach and Pavilion Plan of Management be amended as follows:

Clause 9, Action Plan table, the order of the categories to be reorganised so that:

 Category A1 becomes Category A3  Category A2 becomes Category A1  Category A3 becomes Category A2:

THE AMENDMENT WAS PUT AND DECLARED CARRIED.

This is page 11 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 26 THE AMENDMENT NOW BECAME THE SUBSTANTIVE MOTION.

THE FOLLOWING SERIES OF AMENDMENTS WERE THEN MOVED AND SUBSEQUENTLY ACCEPTED BY THE MOVER AND SECONDER OF THE SUBSTANTIVE MOTION AND INCORPORATED INTO THE SUBSTANTIVE MOTION:

That Council:

1. Consider the revitalisation of the Wally Weekes Pool.

2. Investigate the potential development of the Scarborough slope.

3. Consider prohibiting dogs on the part of the walkway adjacent the children’s pool.

4. The 10 kilometre zone, that is already approved, be implemented.

5. The Director, Community and Recreation Services, inserts into the appropriate place in Clause 9, Action Plan table the phrase “to give consideration to the installation of public art.”

THE SUBSTANTIVE MOTION NOW READS AS FOLLOWS:

SUBSTANTIVE MOTION / DECISION:

That Council:

1. Receive and note this report.

2. Amend Clause 9, Action Plan table of the Draft Bondi Park, Beach and Pavilion Plan of Management as follows:

(a) The order of the categories be reorganised so that:

 Category A1 becomes Category A3  Category A2 becomes Category A1  Category A3 becomes Category A2

(b) The Director, Community and Recreation Services, inserts in the appropriate place the phrase “to give consideration to the installation of public art.”

3. Authorise public exhibition of the draft Bondi Park, Beach and Pavilion Plan of Management for the statutory period of 28 days.

4. Note that the public exhibition will commence following review of the plan by the State Government Crown Lands division.

5. Consider the revitalisation of the Wally Weekes Pool.

6. Investigate the potential development of the Scarborough slope.

7. Consider prohibiting dogs on the part of the walkway adjacent the children’s pool.

8. The 10 kilometre zone, that is already approved, be implemented.

This is page 12 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 27

THE SUBSTANTIVE MOTION WAS THEN PUT AND DECLARED CARRIED.

Crs Kanak and Strewe asked that it be recorded in the minutes that they voted against the Motion.

1308.12.10 2012/13 Year Funds Carry Forward (A03/0346)

Report dated 8 August 2013 from the Director, Corporate & Technical Services on the carry forward of budget funds from financial year 2012/13 to financial year 2013/14.

MOTION / DECISION (Cusack / Mouroukas)

That Council approve the carry forward of budget funds from financial year 2012/13 to financial year 2013/14.

1308.13 ADOPTION OF COMMITTEE MINUTES

1308.13.1 Waverley Traffic Committee Meeting – 25 July 2013

MOTION / DECISION (Mouroukas / Cusack)

That Part 1 of the Minutes of the Waverley Traffic Committee Meeting of 25 July 2013 be received and noted, and that the recommendations contained in Clauses WTC-1307.C1 to WTC-1307.C6, WTC-1307.V1 to WTC-1307.V5 and WTC-1307.Z1 and WTC-1307.Z2 be adopted.

Save and except the following:

1. Waverley Traffic Committee Meeting – 25 July 2013 – Clause WTC-1307.C6 – 164 Bronte Road, Waverley – Bus Zone (A02/0225-02).

2. Waverley Traffic Committee Meeting – 25 July 2013 – Clause WTC-1307.Z1 – Myuna Road at Military Road, Dover Heights; Birrell Street at Alfred Street, Bronte; Ocean Lane at Ocean Street, Bondi; and Victoria Street at Victoria Lane, Waverley – Installation of ‘No Stopping’ Zones (A02/0637-02).

And that these items be dealt with separately.

This is page 13 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 28 1308.13.1.1 Waverley Traffic Committee Meeting – 25 July 2013 – Minutes – Clause WTC-1307.C6 – 164 Bronte Road, Waverley – Bus Zone (A02/0225-02)

This matter was saved and excepted by Cr Betts.

MOTION / DECISION (Betts / Goltsman)

That:

1. The Waverley Traffic Committee’s recommendation not be adopted, and that

2. Council move the ‘Bus Zone (R)’ sign from the northern side of the driveway to 164 Bronte Road to the southern side of the driveway to 164 Bronte Road, Waverley.

P. Ciaglia (Objector) addressed the meeting.

1308.13.1.2 Waverley Traffic Committee Meeting – 25 July 2013 – Minutes – Clause WTC-1307.Z1 - Myuna Road at Military Road, Dover Heights; Birrell Street at Alfred Street, Bronte; Ocean Lane at Ocean Street, Bondi; and Victoria Street at Victoria Lane, Waverley – Installation of ‘No Stopping’ Zones (A02/0637-02).

This matter was saved and excepted by Cr Burrill.

MOTION / DECISION (Burrill / Cusack)

That the Waverley Traffic Committee’s recommendation be adopted subject to the deletion of Clauses 1, 3 and 4.

1308.13.2 Finance, Ethics & Strategic Planning Committee Meeting – 6 August 2013

MOTION / DECISION (Cusack / Goltsman)

That the Minutes of the Finance, Ethics & Strategic Planning Committee Meeting of 6 August 2013 be received and that such Minutes be confirmed as a true record of the proceedings of that Meeting and that the decisions contained in Clauses F-1308.1 to F-1308.9 be received and noted.

Save and except the following:

1. Finance, Ethics & Strategic Planning Committee Meeting – 6 August 2013 – Clause F- 1308.7 – Community Engagement Strategy for Waste (A08/1210).

And that this item be dealt with separately.

This is page 14 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 29

1308.13.2.1 Finance, Ethics & Strategic Planning Committee Meeting – 6 August 2013 – Minutes – Clause F-1308.7 – Community Engagement Strategy for Waste (A08/1210)

This matter was saved and excepted by Cr Burrill.

MOTION / DECISION (Burrill / Clayton)

That this matter be deferred to the next Council meeting to enable further advice and action on the issues raised by Cr Burrill at the meeting.

1308.14 GENERAL MANAGER’S REPORT

There was no report from the General Manager.

1308.15 PETITIONS

There were no petitions received.

1308.16 QUESTIONS BY COUNCILLORS FOR NEXT COUNCIL MEETING

There were no questions by Councillors for the next Council meeting.

1308.17 URGENT BUSINESS

There were no urgent business items.

This is page 15 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 30 1308.18 MATTERS TO BE DEALT WITH IN CLOSED SESSION

In accordance with section 10A(2) of the Act, council may close part of its meeting to deal with business of the following kind;

(a) personnel matters concerning particular individuals.

(b) personal hardship of any resident or ratepayer.

(c) information that would, if disclosed, confer a commercial advantage on a person with whom Council is conducting (or proposes to conduct) business.

(d) commercial information of a confidential nature that would, if disclosed:

i prejudice the commercial position of a person who supplied it: or ii confer a commercial advantage on a competitor of Council; iii reveal a trade secret.

(e) information that would, if disclosed, prejudice the maintenance of law.

(f) matters affecting the security of Council, Councillors, Council staff and Council property.

(g) advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the grounds of legal professional privilege.

(h) information concerning the nature and location of a place or an item of Aboriginal significance on community land.

Before the motion to close the meeting was put, the Chair provided an opportunity for members of the public to make representations as to whether this part of the meeting should be closed and none were received.

MOTION / DECISION (Betts)

That:

1. Council move into closed session to deal with these matters which are classified as confidential under the provisions of Section 10A (2) (c) of the Local Government Act 1993 for the following reasons:

This is page 16 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 31

(a). The information at Items 1308.18.1, 1308.18.2, 1308.18.3 and 1308.18.4 if disclosed, would confer a commercial advantage on a person with whom Council is conducting (or proposes to conduct) business.

It is not in the public interest to reveal details of Council’s position with regard to these matters as doing so would place Council at a commercial disadvantage.

2. Pursuant to Section 10A(1), 10A(2) and 10A(3) of the Local Government Act 1993, the media and public be excluded from the meeting on the basis that the business to be considered is classified confidential under the provisions of Section 10A(2) of the Local government Act 1993.

3. The correspondence and reports relevant to the subject business be withheld from the media and public as provided by section 11(2) of the Local Government Act 1993.

At 9.31pm Council moved into closed session and resumed in open session at 9.38pm.

1308.18.1 CONFIDENTIAL REPORT – Fixing of Fees and Charges for 2013-14 for Commercial Waste (A02/0162 & A12/0193)

Confidential Report dated 7 August 2013 from the Director, Public Works & Services in regard to fixing fees and charges for Council’s Commercial Waste services.

MOTION / DECISION (Cusack / Burrill)

That:

1. This report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993.

2. Council adopt the proposed fees and charges for commercial waste services for 2013- 14.

1308.18.2 CONFIDENTIAL REPORT – Tender – Sale of Lot 3, 105-115 Portman Street, Zetland NSW 2017 (A13/0216)

Confidential Report dated 8 August 2013 from the General Manager regarding the sale of Lot 3 DP1181144 – 105-115 Portman Street, Zetland NSW 2017.

This is page 17 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 32

MOTION / DECISION (Betts / Burrill)

That:

1. The report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993

2. Council enter into a Sale of Land Contract with Bridgehill (Zetland) Pty Ltd for sale of Lot 3, 105-115 Portman Street, Zetland NSW 2017 for the sum of $82,000,000.00 plus GST.

3. The General Manager and Mayor be authorised to execute contract documentation and deeds as required and affix Council’s seal to all necessary documentation

4. Notify all tenderers of the decision of Council and return the respective deposits to the unsuccessful tenderers.

1308.18.3 CONFIDENTIAL REPORT – Evaluation of Tender for the Supply, Installation and Maintenance of Parking Meters and Associated Equipment and Services (A13/0271)

Confidential Report dated 9 August 2013 from the Director, Corporate & Technical Services about the findings from the Assessment Panel created to evaluate the tender for the Supply, Installation and Maintenance of Parking Meters and associated equipment and services – A13/0271.

MOTION / DECISION (Betts / Goltsman)

That:

1. The report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993.

2. Council endorses the recommendation to enter into a contract with the preferred tenderer, Australian Parking & Revenue Control Pty Ltd (APARC) for the purchase of meters and associated equipment and services together with a maintenance agreement for a period of 60 months subject to agreement of contract conditions.

3. Council notify unsuccessful tenderers of the decision.

Cr Kanak asked that it be recorded in the minutes that he voted against the Motion.

This is page 18 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 33 1308.18.4 CONFIDENTIAL REPORT – Licence Agreements for Winter Season use of sport fields between Reserve Trusts managed by Waverley Council and various sporting clubs (A13/0166)

Confidential Report dated 6 August 2013 from the Director, Community and Recreation Services about the long term licence agreements between Waverley Park Reserve Trust (D500494) and Hugh Bamford and Williams Park Reserve Trust (D93444) and the UTS Bats Australian Football Club, Waverley Old Boys Football Club Incorporated, Waverley Rugby Football and Sporting Club Incorporated, Maccabi NSW and Sydney Roosters Rugby League Football Club.

MOTION / DECISION (Betts / Clayton)

That:

1. The report be treated as confidential in accordance with section 11(3) of the Local Government Act 1993, as it relates to a matter specified in section 10A(2) of the Local Government Act 1993;

2. Council as Waverley Park (D500494) Reserve Trust and Hugh Bamford and Williams Park Reserve Trust (D93444) approve the long term licences for UTS Bats Australian Football Club, Waverley Old Boys Football Club Incorporated, Waverley Rugby Football and Sporting Club Incorporated, Maccabi NSW and Sydney Roosters Rugby League Football Club for the use of Waverley Park Pavilion Sports Club Facilities, Waverley Park Oval, Playing Fields 2 and 3, and Hugh Bamford sport field as set out in their individuals agreements;

3. The Mayor and General Manager be authorised to finalise negotiations, sign and execute the necessary documentation and affix the Council Seal to the licence.

1308.RMP Resolutions from closed session made public

In accordance with Clause 253 of the Local Government (general) Regulation 2005, when the meeting resumed in open session the Chair announced the resolutions made by Council, including the names of the movers and seconders, while the meeting was closed to members of the public and the media.

1308.19 SUBMISSION OF RESCISSION MOTIONS

This is page 19 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 34

Rescission motions received after 10am on the next working day following the meeting may not stay action on implementing Council’s decision.

Rescission motions will generally be dealt with at the next Council meeting.

The Chair called for the submission of any rescission motions and none were received..

THE MEETING CLOSED AT 9.40PM.

SIGNED AND CONFIRMED MAYOR 17 September, 2013

This is page 20 of the Minutes of the Council Meeting held on Tuesday 20 August, 2013.

MAYOR 35 Attachment 1

Notice of Motion submitted by Cr Angela Burrill relating to the Community Engagement Strategy for Waste

Set out below and underlined are the proposed refinements to the Community Engagement Strategy for Waste:

Waste Type Action Stakeholders Timeline Residential recycling Roll out Multi Unit Dwellings (MUDS) program Internal: Commence Sept 2013 MUDS officer, PPC staff (PPC), PWS staff (PWS), Waste Education officer Develop education program on our waste services (WEO)

 New waste truck signage External: August 2013  Recycle challenge at events/schools Elton consulting  Recycle right campaign (trial in precinct) Graphic designer  Update website with recycling video or 3D animation

Conduct operational staff consultation October 2013  Workshop/consultation with key operation staff to explore incentives for maximising recycling and reducing waste to landfill, ie. pay incentives

36 Conduct community consultation October 2013

 Workshop/consultation with randomly selected residents to explore incentives for maximising recycling and reducing waste to landfill, ie. money

Review bin configuration, volume, collection and costs to ascertain Feb 2014 optimal system

Presentation to Council from Green Money to discuss community incentive programs Nov 2013

Litter Coordinate summer anti littering campaign Internal: Dec 2013 ‐ Feb 2014 PPC, PWS, WEO  Focus on cigarette butts, food outlet containers and general litter  Use innovative and interesting techniques like art External: installations, film, social media and flash mobs using Randwick Council, music and dance groups including multicultural and Woollahra Council, Jon August 2013 indigenous Australians to promote a positive anti‐ Dee, Responsible Runners litter message and other key community groups, local businesses, December 2013 Consultants (for Investigate collaboration with neighbouring councils to run a campaign design and regional program audits) July 2013

November 2013 (Bondi) Continue to run litter auditing program over 13/14 to evaluate 2014 (Bronte)

37 progress of beach and parks

As part of the summer Collaborate with community groups to roll out and/or support litter campaign – Nov programs such as plastic bag and disposable coffee cup program 2013

Roll out new public place recycling stations at Bronte Park/Bronte Beach and update Bondi Beach PPR stations.

As part of the summer litter campaign – Nov Educate the community about the smoking ban on Waverley 2013 Beaches by putting the no smoking message with a stated fine onto more visible places on the beach. E.g. beach bikes & mobile lifeguard tower.

March 2014 Investigate trial of a reusable waste bag program in conjunction with community groups and education campaign to encourage beach goers to take home their waste. E.g. "Leave only your footsteps"

As part of summer litter Work with an advertising agency to engage "Anti‐Litter Locals" campaign – Nov 2013 Ambassadors e.g. Bondi Vet Chris Brown, Michael Clark, Anthony La Paglia, Bondi Rescue etc. to promote the message and encourage other locals to join the cause using video & social media. E.g. I love Bondi Beach. Don't trash my beach. On the sand today, in the ocean

38 tomorrow. As part of summer litter campaign and ongoing

Use part of the sea wall mural to promote a positive clean beach message (Investigate grants) As part of summer litter campaign and ongoing Provide more and advertise the availability of water stations on the beach throughout Bondi to discourage sales of bottled water.

As part of summer litter campaign and ongoing Encourage local businesses to sell reusable water bottles rather than cheap bottles of water.

Illegal dumping Develop targeted illegal dumping enforcement and education Internal: Sept 2013 ‐ Ongoing program, WEO, Enforcement  2 strikes system: 1= must do the online tutorial to Officer, PWS, Civic Pride waive clean up notice fee, 2=fined Officer  Supplement staffing levels  CCTV in hot spots, show offenders on screens and urge people to report External: SSROC, Randwick and Increase promotion of household clean up services Woollahra Council, real Ongoing estate agents  Reminders for scheduled clean up – see Randwick Council smart phone app

August 2013

39 Investigate regional opportunities for illegal dumping education/enforcement

 RID Squads  Apply for Waste Less, Recycle More grant Sept 2013

Develop welcome pack for new tenants for circulation to real estate agents

March 2014

Target hot spot areas to run community engagement programs

November 2013

Dumped rubbish hotspots to be identified with signage to educate and warn of fines. E.g. Waverley is not a dump. Call for your free clean up. If you dump rubbish here you will be fined $.

March 2014 Develop a smartphone app where residents can report dumped rubbish. Ideally residents should be able to take a photo of the rubbish and report the location using GPS so that an efficient map can be used for collection purposes.

Wastes of concern Investigate regional options for waste of concern drop off centres Internal: August 2013 WEO, ES DM, PWS DM  Meet with City of Sydney Council (COS) to investigate drop off centre at new Waverley depot External: site SSROC, COS Council

40  Put in SSROC grant for mobile drop off site (currently being led by COS)

Increase promotion of services we currently run Ongoing

 Battery drop off, E‐waste drop off, mobile phone drop off

Review current drop off sites and suggest additional services August 2013

Schools Increase recycling service integration into schools Internal: Ongoing WEO, Environmental  Run recycling/waste reduction module in local Education Officer, schools Commercial Recycling  Audit school waste systems and recommend changes if needed External: Schools

Organics Investigate organic waste collection for Bondi Pavilion businesses – Internal: May 2014 grant funded Compost Rev Officer, PWS

Apply for grant to trial regional food waste collection system External: August 2013 Bondi Pav businesses, SSROC Councils

Expand Compost Revolution program Ongoing

Work with local cafe/restaurants in Waverley to investigate the May 2014 development of a separate collection for organic waste.

Reuse Continue to run re‐use programs Internal: Ongoing WEO  Garage sale trail  Clothes swaps External: Consultants, Garage Sale Ongoing Trail, community groups Explore opportunities for other re‐use programs

Ongoing Communicate reuse options in promotion of household clean ups, E waste collection and at other relevant programs or events.

Operation or compliance Undertake random compliance audits of the beach to warn beach Internal: PWS, Ongoing goers not to smoke on the beach. Use Bondi Rescue as an Compliance opportunity to Educate the community about this and explain why

it's important.

Review the beach rake cleaning operations to identify options to collect cigarette butts and straws. In addition undertake a further October 2013

processing step of recycling the bottles.

November 2013 – Coordinate additional beach rake sweeps of the beach in the March 2014 evenings during peak times in summer

Saved By: Councillor Wakefield, seconded by Councillor Kanak

Reasons: Bulk and scale, impact on neighbours. Application number DA-129/2013

Site address 12 Military Road, North Bondi

Proposal Alterations and additions to existing dwelling to create Multi dwelling housing (3 dwellings)

Date of lodgement 15 April 2013 (Amended application lodged 6 Aug, 2013)

Owner D & W Barlin

Applicant Above Board Design

Submissions Original 2, amended application 1 submission

Cost of works $ 350,000

Issues Setbacks, minimum site frontage, density, parking

Recommendation Approve subject to conditions Site Map

44 1.1 SITE AND SURROUNDING LOCALITY

A site visit was carried out on 12 June 2013.

The site is identified as Lot A in DP 363442, known as 12 Military Road, North Bondi. The site is rectangular in shape with a street frontage of 7.6m and depth of 42.6m with an overall area of 319m2. The site has a slope from the street to the rear property boundary of about 3m to 4m.

The site is occupied by a single storey semi-detached dwelling with vehicular access down the side (northern boundary) of the site. A double garage is located at the rear of the site. The subject site is adjoined by a semi-detached dwelling, No.10 to the south and a residential flat building of 2 storeys to the north. The Bondi Golf Course is located across the road.

The Locality is characterised by a variety of residential developments including semi-detached, detached dwellings and residential flat buildings. The site is located in the North Bondi special character area.

Figure 1: Subject site frontage

2 45

Figure 2: Adjoining semi at the rear

1.2 PROPOSAL

The application seeks consent for a first floor addition and internal alterations to create three dwellings.  2 x 2 bedroom dwellings  1 x 1 bedroom dwellings The development is defined as a multi dwelling housing under LEP 2012. Multi dwelling housing consists of;

3 or more dwellings (whether attached or detached) on one lot of land, each with access at ground level, but does not include a residential flat building.

1.3 RELEVANT HISTORY

DA - 26/2002 - First Floor Addition to Semi Detached House. The application was approved on 26 April, 2002. The application was not acted upon and the consent lapsed on 26 April, 2007.

The current application was deferred on 10 July, 2013 for the following reasons;

1. Given the proposal involves alterations and additions to an existing semi detached dwelling to create multi dwelling housing, Clause 1.5.1 of Part C1 of the DCP applies with regard to the streetscape appearance of the property.

In this regard, the application proposes the first floor to be set forward of the existing dwelling and the semi detached dwelling which it is paired. This proposal would result in the creation of a blank dividing wall between the semi detached dwellings at the front of the site and visually dominates the adjoining semi when viewed from the street. To address this issue, the DCP recommends setting the first floor addition behind the front roof hip of the existing dwelling.

Therefore, it is recommended that the first floor addition is to be setback behind the front roof hip of the existing dwelling (similar to the position approved under DA 26/2002).

2. The proposed roof over the rear balconies is to be modified to be a light weight style awning to reduce amenity impacts and the visual bulk of the building when viewed from the rear. In

3 46 addition, the brick wall on the southern boundary is to be modified to light weight privacy screens (fixed timber louvers or the like) to address the same issues.

3. A shadow analysis is to be provided demonstrating that the lower ground floor unit receives adequate sunlight, taking into consideration the shadow cast from the property at No.14 Military Road.

Council received amended plans from the applicant in relation to the deferral matters listed above, which have been assessed in the report below.

2. ASSESSMENT

The following matters are to be considered in the assessment of this development application under Section 79C of the Environmental Planning and Assessment Act, 1979.

2.1 SECTION 79C (1)(A) PLANNING INSTRUMENTS AND DCP

SEPP (Building Sustainability Index – BASIX) 2004

A BASIX Certificate has been submitted with the development application.

The BASIX Certificate lists measures to satisfy BASIX requirements which have been incorporated into the proposal. A standard condition is recommended ensuring the measures detailed in the BASIX Certificate are implemented.

SEPP 55 Remediation of Land

There is no known history of contamination applicable to the site. The subject site has historically been used for residential purposes. Accordingly, site land contamination is considered unlikely and no further investigation is necessary.

SEPP 65 Design Quality of Residential Flat Development

The proposed development is not considered a residential flat building under the provisions of the SEPP. In this regard, a residential flat building under the SEPP is defined as;

(a) 3 or more storeys (not including levels below ground level provided for car parking or storage, or both, that protrude less than 1.2 metres above ground level), and (b) 4 or more self-contained dwellings (whether or not the building includes uses for other purposes, such as shops), but does not include a Class 1a building or a Class 1b building under the Building Code of Australia .

The SEPP therefore is not applicable.

Waverley Local Environmental Plan (LEP) 2012

The relevant matters to be considered under the Waverley LEP 2012 for the proposed development are outlined below:

4 47

Waverley LEP 2012 – Compliance Table

Development Control Compliance Comment Part 1 Preliminary 1.2 Aims of plan The proposal does not contravene any aims of the YES plan. Part 2 Permitted or prohibited development Land Use Table - Zoning R3- Multi dwelling housing is a permissible use in the YES Medium Density Residential R3 - Medium Density Housing zone. Part 4 Principle development standards 4.3 Height of Buildings = 12.5m YES The proposal is maximum 9.8m, minimum 8.5m 4.4 Floor space ratio = 0.9:1 Permitted = 0.9:1 = 287m2 Yes Proposed = 0.64:1 = 206m2 Part 5 Miscellaneous provisions N/A Part 6 Additional local provisions 6.1 Acid sulphate soils Class 5. Yes Minimal excavation is proposed, which will unlikely disturb the water table 6.2 Earthworks The proposal is satisfactory provided appropriate Yes conditions of consent are imposed.

Waverley Development Control Plan (DCP) 2012

The relevant matters to be considered under the Waverley DCP 2012 for the proposed development are outlined below:

Waverley DCP 2012 – Part B General design provisions

Development Control Compliance Comment 1. Waste Standard conditions of consent can be imposed to Yes address the matter of waste. 2. Energy and water This matter can be addressed as a condition of conservation Yes consent.

5. Stormwater Management On site detention is required for the development. Further details of the system however have been NO requested by the Technical Services Department. This matter can be addressed as a condition of consent. 7. Transport Parking Zone B - Minimum 2 spaces required, YES maximum 3 spaces required. Double garage existing on site. 8. Heritage Bondi Golf Course, across the road from the site, due east is listed as a landscape heritage item. The YES proposal does not impact on this item, if approved as recommended.

5 48

Waverley DCP 2012 – Part C Residential development – Dwelling House and Dual Occupancy Development

Development Control Compliance Comment 2.1 - Special Character The proposal will retain the existing Areas character elements of the North Bondi North Bondi Special YES Special Character Area and conforms with Character Area the future character objectives 2.2 – Site, Scale and The proposal doesn't comply with the Frontage minimum street frontage set in the DCP,  Max FSR - 0.9:1 (287m2) YES having only a 7m frontage. This non  Min frontage – 15m NO compliance is discussed later in this report

2.3 – Height The proposal has an overall maximum  Max Height 12.5m YES height of 9.5m and maximum wall height  Max wall height – 9.5m YES of 8.5m. The lower ground level  Max no. of storeys – 3 YES constitutes the building a 3 storey building 2.4 – Excavation  No fill to raise levels N/A The application proposes excavation  Min 1.5m setback from NO within 1.5m of the southern boundary, side boundaries which adjoins the adjoining semi detached  Under building footprint YES property. A condition requesting a except main access ramp geotechnical report and report from a  Basements no more than N/A structural engineer regarding the methods 1.2m out of the ground of excavation, shoring or pile construction  Geotech report when > N/A is suggested to address this issue. 3m in depth or 25% slope 2.5 – Setbacks  Consistent street setback YES The amended proposal complies with the  Min side setback 3m NO first floor front setback guidelines as given  Min rear setback – 6m YES in the DCP. However the side setback of  Deep soil along side NO 2.6m fails the 3m requirement for class 2 boundary min 2m wide buildings. The rear setback is adequate at 12.8m. See discussion below in relation to this matter. 2.6 – Length of Buildings  Max length – 24m YES The building has length of 22m and the  Max depth of unit – 18m units have a depth of 4.2m 2.7 – Building Separation The distance between the windows on the  Min 6m btw non-habitable property and the adjoining northern  Min 9m btw non-habitable NO property would be the same as the and habitable existing separation with No.14 Military  Min 12m btw habitable Road, and would be no different if the and habitable additions were a first floor addition. In addition the RFB at No.14 is set 1.5m from the common boundary. The distance separation is accepted in these circumstances. 2.8 – Building Design and Streetscape  Respond to streetscape NO See discussion below.  Sympathetic external finishes 2.9 – Fences and Walls

6 49  Front fence Max height – YES Existing front fence to be repaired 1.2m 2.10 – Vehicular Access and Parking The proposal utilises the existing double  Integrated into the design YES garage at the rear of the site, utilising  Secondary to pedestrian existing driveway down the side of the entrance site. Minimum 2 spaces and maximum 3  Max of 1 x 2-way spaces required. This arrangement is driveways accepted.  From rear of side where possible  Pedestrian safety 2.11 – Pedestrian Access and Entry  Entry at street level YES Each dwelling has an entry at ground  Accessible entry level.  Legible, safe, well-lit 2.12 – Landscaping The existing site has limited landscaped  Min 30% landscaped NO area with the majority of the rear backyard  15% of which is deep soil concrete. The application is for alterations additions to existing building and not a new development with minimal increase in the footprint of the building. 2.13 – Communal Open Space Where developments aren't able to  Min 15% communal achieve the communal open space, they  Min dimensions 6m x 6m YES must demonstrate that amenity is  Min 30% of communal provided in the form of increased private area must receive 3 hours open space. It is considered that sunlight adequate private open space is provided.

2.14 – Private Open Space  Min 75% of dwellings to YES Each unit has the provision of private open have private open space space off a living area, however the  Must be off living area YES balconies provided for the first and second  Courtyards – Min 25m2 level do not meet the minimum depth or and 3m x 3m NO area requirements. The balconies are  Balconies – Min 10m2 and NO considered reasonable in size as any 2.5m depth further increase in balcony size may compromise neighbour amenity. 2.15 Solar Access and Solar access to proposed new units and Overshadowing to the adjoining developments will be  Min 3 hours of sunlight to YES within acceptable range given that the Min 70% of units proposed height of the building is well  Adjoining properties to below the 12.5m max height limit and retain Min 3 hours of having regard to the shadow diagrams sunlight submitted. 2.17 – Visual Privacy and The amended application proposes 2.1m Security YES high light weight privacy screens on the  Minimise overlooking southern side of the balconies to reduce visual bulk and also to provide privacy to the rear backyard of the adjoining southern semi detached property. 2.18 – Apartment Size and Layout

7 50 Minimum Size The lower ground floor unit is 1 bedroom  1 Bedroom – 50m2 NO with 45m2. The 5m2 departure from the  Bedroom – 75m2 YES control in this case is accepted.

2.19 – Ceiling Heights The lower ground floor level has a floor to  Min 2.7 for residential YES ceiling height of 2.4m. The other 2 units have 2.7m. 2.4m remains to comply with the BCA and is accepted. 2.20 – Storage Minimum Size The proposal is for alterations and  1 Bedroom – 6m3 Not specified additions to an existing building. Provision  2 Bedroom – 8m3 on plans of more space will further increase the FSR on site to the detriment of the adjoining properties and therefore variation in this regard is accepted. 2.22 – Acoustic Privacy Living areas are contained to the rear of Internal amenity by locating YES the property, similar to the adjoining semi noisy areas away from quiet detached property. areas 2.23 – Natural Ventilation YES All units are cross ventilated. Alternative  Min 60% of units cross- solutions for the windows on the side ventilated elevations will need to accommodate natural ventilation. This is a matter to be addressed at construction certificate.

ISSUES

Front setback, building design and streetscape

Although the zoning of the land permits multi unit dwellings and a higher density than the existing dwelling, it is important to note that the existing dwelling is a semi detached dwelling. In the initial proposal the development was proposed forward of the existing dwelling and the attached dwelling in which it is paired.

Clause 2.8 (b) of the Part C2 of the DCP states that the design of alterations and additions should demonstrate architectural unity with the existing building. In addition the DCP has specific controls for semi detached dwellings in Part C1, specifically Clause 1.5.1(a) which states that upper level additions to semi detached dwellings should,

(i) be designed to allow for an addition of similar design, scale and bulk to the adjoining (attached) semi; (ii) be setback from the front of the existing roof structure so that the additional storey does not dominate the appearance of the pair when viewed from the street (iii) be either designed to complement the existing character of the pair of semis or if a modern design, be setback so as to not visually dominate or detract from the appearance of the pair when viewed from the street.

Also, Clause (b) states that the first floor additions should not result in the creation of a blank dividing wall along the boundary between the semi detached dwellings and are not to be located behind the front hip of the existing semi-detached dwelling. The initial proposal was considered to be incongruent with the urban design of the attached semi detached dwelling and also failed to comply with the guidelines given in the DCP in this respect.

Having regard to the above, the application was deferred to allow the applicant to amend the design, keeping in view the guidelines given in the DCP.

8 51 Amended design was received by Council on 6 August, 2013. The amended design is considered to be now more in keeping with the architectural form of the existing pair of semis and generally comply with the controls and guidelines given in the DCP. It is noted that the amended design together with the bulk, scale and height is very similar to the previous approval granted on the subject site for alterations and additions to the existing semi on 26 April, 2002, which was not acted upon resulting in lapsing of the consent on 26 April, 2007 (DA-26/2002).

The amended design is considered to be satisfactory, where the first floor addition has been setback from the existing front building line of the existing dwelling, in a similar design to the additions approved under the application DA-26/2002. The new design allows for the first floor additions to not overwhelm the existing dwelling and the adjoining semi dethatched dwelling to the south. The large expanse of blank wall which would be seen from the streetscape when approaching from the southern side has been deleted with the first floor addition moved towards the rear to retain the front hipped roof, which provides uniformity to the existing pair of semis. The extension of the two storey common wall at the rear has been removed substituted with open balconies with light weight shading device and incorporation of privacy screens.

The amended design is considered to be acceptable, having regard to the guidelines given in the DCP and with regards to its bulk and scale when viewed in the context of pair of semis.

Site Frontage

The site is 7.6m wide, failing the DCP control which requires a minimum site frontage of 15m. The purpose of the site frontage is to ensure that the lot size and dimensions can accommodate the appropriate building envelope, landscaping and service requirements; to ensure that development sites have adequate street frontage to meet side setback and building requirements; to have lot sizes and a building form appropriate to the streetscape and to encourage amalgamation of allotments to provide for improved design outcomes.

The requirement for a minimum 15m site frontage generally applies to new multi unit developments and the objective is to ensure that new buildings are of an acceptable size and bulk in relation to the size and shape of the allotment. In addition the objective of this control is to ensure that there is reasonable area available on the sides for landscaping and separation between buildings to minimise privacy and overlooking impacts.

The subject application is for alterations and additions to an existing dwelling, where there is minimal increase in the footprint of the building and the side setbacks are not being altered. The proposed development complies with the FSR and building height development standards under the LEP and majority of built form and landscaping controls under the DCP. The departure in site frontage is therefore supported on merit.

2.2 SECTION 79C(1)(B) – OTHER IMPACTS OF THE DEVELOPMENT

It is considered that the proposal will have no significant detrimental effect relating to environmental, social or economic impacts on the locality, subject to appropriate conditions being imposed.

2.3 SECTION 79C(1)(C) – SUITABILITY OF THE SITE FOR THE DEVELOPMENT

The site is considered to be suitable for the proposed development.

2.4 SECTION 79C(1)(D) – ANY SUBMISSIONS

The application was notified for 14 days in accordance with Waverley Development Control Plan 2012, Part A – Advertised and Notified Development.

9 52 Two submissions were received during this time from the adjoining property to the south. The issues raised in the submission are summarised and discussed below.

Amended plans were submitted by the applicant on 6 August, 2013 which were renotified and during the notification period one submission was received. Issues raised in the submissions are discussed as under.

Issue: Heritage

Response: Bondi Golf Course is located across Military Road, which is designated as a Landscape Conservation Area. The amended proposal as submitted now appears as a standard addition to a semi and will have no negative impact on the landscape conservation area across the road.

Issue: Site, Scale and Frontage

Response: The application has been amended to be more in keeping with the design guidelines pertaining to alterations and additions for semi detached dwellings. Whilst it is acknowledged that the frontage of the site does not meet the minimum criteria of 15m, the amended development has an appropriate building envelope and provides adequate street frontage, which is not considered to jeopardise building form to the streetscape.

Issue: Amalgamation for improved design

Response: Though amalgamation is not proposed, the design has been amended and improved upon, which takes into account the adjoining semi to the south at No.10 Military Road. In this instance, the design has been setback from the front to maintain majority of the front hipped roof form and blank dividing wall has been removed. Given its juxtaposition with the attached semi the new urban design is considered reasonable and complements the existing character of the pair of semis.

Issue: Over shadowing due to increase in building height

Response: It is acknowledged that there will be additional overshadowing on the southern neighbour due to the new addition as the blocks are oriented east west. The height of proposal ranges between 8.5m at the front to 10m at the rear, which is well below the maximum requirement of 12.5m allowed within the zone. Given the proposed height, it is not considered that the overshadowing will be excessive to warrant refusal of the application.

Issue: Excavation

Response: There is no report submitted by a structural engineer with the DA in relation to excavation and site stability during construction. In this regard a condition is recommended to be imposed requiring a report from a suitably qualified and practising Structural Engineer detailing the proposed methods of excavation.

Issue: Front Setback

Response: The front setback has been increased with the amended proposal and the additional storey has been setback mainly behind the front hipped roof and conforms with the policy given in the DCP in relation to semi detached dwellings.

Issue: Side Setbacks

Response: The amended proposal which is now before Council reflects a standard design for alterations and additional storey to an existing semi detached dwelling. The bulk, scale and setbacks would be acceptable if the use were for a single dwelling. However, in this case the same bulk incorporates three dwellings instead of a single dwelling. The physical impacts arising from the proposed bulk will not change if the building were to incorporate three units as against one dwelling.

10 53 Having regard to the above and given that the FSR and height of the development is well below the maximum permissible limit it is considered that variation in side setbacks can be supported.

Issue: Length and depth of buildings

Response: With the amended plans submitted the depth of the building has been reduced from the front as well as from the rear. Though it does not strictly comply with the controls overall, the lower ground floor and first floor have a depth of 11.5m and 17.5m respectively.

Issue: Building separation

Response: The objective of a building separation is to provide visual and acoustic privacy and to ensure that appropriate massing between buildings. The proposal is for an additional storey to a semi, which is well below the FSR and height requirements for the zoning. The mass of the building is not considered to be excessive so as to warrant 12m separation between adjoining buildings. The glazing proposed on the northern elevation is not excessive, which may compromise visual and acoustic privacy for adjoining buildings.

Issue: Building design and streetscape

Response: The architectural design of the building has been amended, which takes into account the criterion given in the DCP for alterations and additions to semi detached dwellings. The scale and appearance of the development is in keeping with the streetscape and responds well with the attached nature of the development.

Issue: Vehicular access and parking

Response: Two parking spaces exist on site at the rear of the property, which have access from the existing driveway located next to the northern boundary. The existing two car parking spaces comply with the minimum requirements given in the code. It is recommended that in order to reduce pedestrian conflict, an area allocated for a turning bay be reserved on the western side of the lower ground floor terrace so that the vehicles can leave the site in a forward direction and pedestrian safety is not compromised, due to the shared pedestrian access proposed adjoining the northern elevation of the building.

Issue: Pedestrian access and entry

Response: A shared pedestrian access has been proposed adjoining the northern elevation of the building and in between the existing driveway to the north. It is recommended that an area located towards the west of the lower ground floor terrace be allocated for a turning bay for the vehicles to leave the site in a forward direction. A condition is recommended to be imposed in this regard. Entry and exit of vehicles in a forward direction will allow improved safety to pedestrian access, which is proposed to be shared with the existing driveway.

Issue: Landscaping

Response: The landscaping on site does not comply with Council controls. In this regard it is however noted that majority of the footprint of the building in being retained with the exception of a small addition at the rear. With the existing footprint of the building and the garage at the rear there is no scope for landscaping to be increased on site. Having regard to the existing situation it is not considered that the application be refused on these grounds.

11 54 Issue: Communal and private open space

Response: There are only three units within the development, and whilst there is no communal open space provided the units have been provided with private balconies, which are reasonable in size and not too excessive to cause privacy and acoustic impact.

Issue: Solar access and overshadowing

Response: Given that the proposal has been amended in design to reduce bulk an scale towards the front and at the rear, it is considered that overshadowing from the proposed addition will be within acceptable range. It is noted that the development is well within the height limit and does not extend past the rear building line of No.10 Military Road and though there will be some additional overshadowing it is not considered to be excessive to warrant refusal of the application.

Issue: View loss from public domain

Response: The proposed development is not encroaching on the existing side setback and the proposed height of the building is well within the maximum height controls for the site. Whilst there may be some view loss from the golf course located across the road, the impact is not considered to be unreasonable given the compliant nature of the proposal in relation to bulk, scale and height.

Issue: Visual privacy

Response: The site is zoned for medium density residential and there is an expectation that there will be some mutual overlooking in the rear yards of these properties. The rear yard of No.10 and 12 Military Road is already overlooked by the two existing residential flat buildings on either sides. The balconies proposed at the rear have been incorporated with 2.1m high privacy screens on the sides, which will to some degree mitigate overlooking impact towards No. 10.

2.5 SECTION 79C(1)(E) – PUBLIC INTEREST

It is considered that the proposal will have no detrimental effect on the public interest, subject to appropriate conditions being imposed.

3. REFERRALS

The proposal results in the building changing from a Class 1 building to a Class 2 building, as defined by the Building Code of Australia. In this regard, Council's Fire Safety officer reviewed the proposal and recommended conditions of consent including fire safety upgrading works. These matters are to be addressed prior to the issue of a Construction Certificate.

The technical services department provided comment on the manoeuvrability of vehicles to the proposed parking arrangement at the rear of the site and stormwater. Conditions have been recommended in this regard, should the application be approved.

4. SUMMARY

The proposal involves alterations and additions to an existing semi detached dwelling to provide multi dwelling housing to incorporate three dwellings.

The external design of the building has been amended which has resulted in the reduction of the bulk from the front and rear elevations. The additions have been designed taking into considerations the guidelines in Council policy, which allows for a sympathetic addition when viewed in conjunction with the neighbouring semi at No.10 Military Road.

12 55 It is acknowledged that there are some non compliances with respect to DCP controls, which are as a result of existing site constraints and due to the fact that the existing structure and footprint is being retained and alterations and additions are being carried to the existing dwelling. The bulk and scale as proposed would be very similar if alterations and addition were to be carried for a single dwelling house. The density is being increased from a single dwelling to three dwellings, which is in conformity with the objectives of the Residential R3 medium density zoning.

Having regard to all of the above the application is recommended for approval subject to the conditions given in the report.

5. RECOMMENDATION TO COUNCIL

That the Development Application be APPROVED by the Council subject to the Conditions in Appendix A:

Report Prepared by: Application determined by:

Name: Beth Matlawski Name: Arif Faruqi Position: Senior Planner Area Manager – North

(Reviewed and agreed on behalf of the Development and Building Unit by)

Date: Date: 30 August, 2013

13 56

APPENDIX A – CONDITIONS OF CONSENT

A. APPROVED DEVELOPMENT

1. APPROVED DEVELOPMENT

The development must be in accordance with:

(a) Architectural Plan Nos DA01A to DA07A, tables and documentation prepared by Above Board design, dated February 2013, and received by Council on 6 August, 2013,

(b) BASIX Certificate

(c) The Site Waste and Recycling Management Plan (SWRMP) and Checklist, in accordance with the SWRMP Checklist of Waverley DCP 2012.

Except where amended by the following conditions of consent.

2. GENERAL MODIFICATIONS

The proposal shall be amended as follows:

(a) A vehicle turning bay area is to be provided within the rear yard located towards the west of the lower ground floor terrace, so as to allow vehicles to exit the site in a forward direction. This may require the terrace area to be reduced in size to accommodate the turning bay, which needs to be designed in accordance with Australian Standards.

The amendments shall be submitted for the approval of Council prior to the issue of a Construction Certificate under the Environmental Planning and Assessment Act 1979.

3. APPROVED DESIGN

The approved design (including an element or detail of that design) or materials, finish or colours of the building must not be changed so as to affect the internal layout or external appearance of the building, without the approval of Council.

4. NEW DEVELOPMENT APPLICATION REQUIRED

This consent is for alterations and additions to the existing building only and should during the course of certification or construction a significant amount of the remaining fabric of the building be removed, a new development application will be required and need to comply with the relevant planning controls including BASIX.

5. DOMESTIC HEATERS

The provision of solid fuel heating/cooking appliances is prohibited.

6. INSTALLATION OF AIR CONDITIONING

Air conditioning unit(s) installed within the building shall:

(a) Be located a minimum of 1.5 metres from a boundary.

14 57 (b) Be located behind the front building line and if visible suitable screened and located in an appropriate location.

(d) Not reduce the structural integrity of the building.

(e) Not emit noise that is audible within a habitable room in any other residential property (regardless of whether any door or window to that room is open):

(i) before 8.00am and after 10.00pm on any Saturday, Sunday or public holiday; or (ii) before 7.00am and after 10.00pm on any other day.

(f) Not provide noise emissions that exceed 5dBA above the ambient background noise level measured at the property boundary at any other time outside of (e).

7. NOISE FROM BUILDING WORKS - RESTRICTED ACTIVITIES

Where there is a strong community reaction to noise associated with demolition, excavation and/or construction, Council may require respite periods by restricting the hours that the specific noisy activity can occur.

Notes: If this is imposed, Council will take into account: 1. Times identified by the community when they are less sensitive to noise 2. If the community is prepared to accept a longer period of construction in exchange for restrictions on construction times.

8. EXCAVATION TO BE LIMITED

Excavation shall be limited to that shown in the approved plans. Excavation, proposed or undertaken in the certification or construction of the development, that results in additional habitable or non-habitable floor space (including storage) shall require the submission of a new development application or Section 96 application to modify the approved development. During consideration of this application construction work on site shall cease without prior agreement of Council. Failure to comply with this condition may lead to Council prosecuting or taking a compliance action against the development for breach of its consent.

9. TREE PRESERVATION

A tree preservation order exists in the Waverley Local Government Area. Before any site can be developed, an application must be made in writing to Council prior to removal of tree/trees. Should permission be granted, the applicant will receive a permit to proceed.

B. COMPLIANCE PRIOR TO ISSUE OF CONSTRUCTION CERTIFICATE

10. SECTION 94A CONTRIBUTION

A cash contribution is payable to Waverley Council pursuant to section 94A of the Environmental Planning and Assessment Act 1979 and Waverley Council Development Contributions Plan 2006 in accordance with the following:

(a) A cost report indicating the itemised cost of the development shall be completed and submitted to council:

(1) Where the total development cost is less than $500,000:

15 58 "Waverley Council Cost Summary Report"; or,

(2) Where the total development cost is $500,000 or more: "Waverley Council Registered Quantity Surveyor's Detailed Cost Report".

A copy of the required format for the cost reports may be obtained from Waverley Council Customer Service Centre or downloaded from: www.waverley.nsw.gov.au/publications/

(b) Prior to the issue of the Construction Certificate, evidence must be provided that the levy has been paid to Council in accordance with this condition or that the cost of works is less than $100,000.

(c) Should a section 96 modification result in any change to the total cost of the work, the Section 94A contribution is to be revised and amended. Prior to the issue of the Construction Certificate, evidence must be provided that the revised levy has been paid to Council in accordance with this condition.

Waverley Council Development Contributions Plans 2006 may be inspected at Waverley Council Customer Service Centre.

Advisory Note

- A development valued at $100,000 or less will be exempt from the levy. - A development valued at $100,001 - $200,000 will attract a levy of 0.5%. - A development valued at $200,001 or more will attract a levy of 1% based on the full cost of the development.

11. SECURITY DEPOSIT

A deposit or guarantee satisfactory to Council for the amount of $ 6,000 must be provided as security for the payment of the cost of making good any damage caused or unauthorised works that may be caused to any Council property as a consequence of this building work.

This deposit (cash or cheque) or guarantee must be established prior to the issue of the Construction Certificate. The full amount of the difference after recovery of Council's cost for any repair of damage to Council property or rectification of unauthorised works on Council property will be refunded after satisfactory completion of the building work to the person who paid the deposit.

12. LONG SERVICE LEVY

A long service levy, as required under Section 34 of the Building and Construction Industry Long Service Payments Act, 1986, is to be paid in respect to this building work. In this regard, proof that the levy has been paid is to be submitted to Council prior to the issue of a Construction Certificate.

Note: Council acts as an agent for the Long Service Payment Corporation and the levy may be paid at Council's office. The levy rate is 0.35% of building work costing $25,000 or more.

13. NO BUILDING WORKS PRIOR TO RELEASE OF CONSTRUCTION CERTIFICATE

The building work, including demolition, must not be commenced until:

(a) a Construction Certificate has been obtained from Council or an Accredited Certifier in accordance with Section 81A(2) of the Environmental Planning & Assessment Act, 1979; and

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(b) a Principal Certifying Authority has been appointed and Council has been notified of the appointment in accordance with Section 81(A)(2)(b) of the Environmental Planning & Assessment Act, 1979 and Form 7 of Schedule 1 of the Regulations; and

The owner/applicant may make application to Council or an Accredited Certifier for the issue of a Construction Certificate and to be the Principle Certifying Authority.

14. ESSENTIAL SERVICES - EXISTING BUILDING

Details of the currently implemented and proposed essential fire safety measures shall be submitted to Council, with the Construction Certificate, in the form of a Fire Safety Schedule. This Schedule shall be prepared by a person competent to do so and shall specify the minimum standard of performance for each essential fire safety measure included in the Schedule.

At the completion of the installation, a Final Fire Safety Certificate shall be attached to the Occupation Certificate, certifying that each essential fire safety measure specified within the current Fire Safety Schedule:

(a) has been assessed by a properly qualified person; and

(b) found to be capable of performing to at least the standard required by the current Fire Safety Schedule for the building for which the Certificate is issued.

15. SERVICE AUTHORITIES

The applicant is to seek approval from the relevant service authorities regarding any possible modification to the service authorities infrastructure prior to the issue of a Construction Certificate.

16. HOARDING REQUIRED

If required, a standard Class hoarding designed and constructed in accordance with the requirements of the Work Cover Authority is to be erected on the street alignments of the property, prior to the commencement of building operations, and such hoardings to be maintained during the course of building operations. Details of the hoarding are to be provided to Council prior to issue of the Construction Certificate.

Where the hoarding is to be erected over the footpath or any public place, the approval of Council must be obtained prior to the erection of the hoarding.

17. GEOTECHNICAL ENGINEERS REPORT

A geotechnical report, regarding the stability of the subject site and stating that damage should not occur to any adjoining premises as a result of the proposed bulk excavation, driven type piles and shoring works, is to be submitted to the Principal Certifying Authority, Council and the owners of adjoining premises. The report is to be submitted prior to the issue of a Construction Certificate and commencement of any such works on the site.

18. DETAILS OF BULK EXCAVATION, SHORING OR PILE CONSTRUCTION

If required, a report shall be prepared by a suitably qualified and practising Structural Engineer detailing the proposed methods of bulk excavation, shoring or pile construction, including details

17 60 of vibration emissions and any possible damage which may occur to adjoining or nearby properties as a result of the proposed building and excavation works. The Report shall be submitted to the Principal Certifying Authority, Council and the owners of adjoining properties prior to the issue of a Construction Certificate.

Any practices or procedures specified in the Structural Engineer's report in relation to the avoidance or minimisation of structural damage to adjoining properties are to be fully complied with and incorporated into the plans and specifications together with the Construction Certificate.

19. SITE WASTE AND RECYCLING MANAGEMENT PLAN

A Site Waste and Recycling Management Plan (SWRMP) Checklist 2 shall be submitted to the Principal Certifying Authority for approval in accordance with Part G1, Waverley DCP 2010 prior to the issue of the Construction Certificate. In this regard, Council expects demolition and excavated material to be reused and/or recycled wherever possible.

The builder and all subcontractors shall comply with the approved SWRMP Part 1 and 2 at all times during construction. At least one copy of the SWRMP is to be available on site at all times during construction. Copies of demolition and construction waste dockets that verify the facility that received the material for recycling or disposal and the quantity of waste received, must be retained on site at all times during construction.

20. EROSION, SEDIMENT AND POLLUTION CONTROL

Erosion, sediment and pollution control measures are to be implemented on this site. These measures are to be in accordance with Council's Stormwater Policy and are to be implemented prior to commencement of any work or activities on or around the site. Details of these measures are to be submitted to the Principal Certifying Authority prior to the issuing of a Construction Certificate.

21. STORMWATER MANAGEMENT

Certification is to be provided from a suitably qualified professional, that the stormwater system has been designed in accordance with the Water Management Technical Guidelines. Stormwater system details are to be submitted in accordance with the Waverley Development Control Plan 2010 - Part G4 prior to the issue of a Construction Certificate.

22. ENGINEERING DETAILS

Structural details prepared and certified by a practicing Structural Engineer being furnished to Council or Accredited Certifier in connection with all structural components prior to the issue of a Construction Certificate.

23. ENGINEERING DETAILS - CERTIFICATE OF ADEQUACY

A Certificate of Adequacy prepared by a practicing Structural Engineer, certifying the adequacy of the existing building structure to carry the extra load of the proposed additions is to be provided to Council or the Accredited Certifier prior to the issue of a Construction Certificate.

24. EXISTING PARTY WALL IS TO BE EXTENDED

The existing party wall is to be extended to the underside of the roof in accordance with the requirements of the Building Code of Australia. The plans are to be notated accordingly prior to the issue of the Construction Certificate to the satisfaction of the Principal Certifying Authority.

18 61 25. FENCE NOT TO ENCROACH BEYOND BOUNDARIES

No portion of the proposed fence, including the footings, is to encroach beyond the boundaries of the subject property. Alternatively, documentary evidence that the owner of the adjoining property has no objection to the construction of the party fence wall on the common boundary between these properties is to be submitted to Council prior to the issue of a Construction Certificate.

26. ROOFWATER GUTTERING

All new or replacement roof guttering is to comply with the requirements of the Building Code of Australia and Australian Standard AS 3500 Plumbing & Drainage Standards to ensure that collected roof water does not flow back into the building.

27. BASIX

The undertakings provided in the BASIX Certificate shall be provided for in the Construction Certificate plans and documentation prior to the issue of the Construction Certificate. If required, a modified BASIX Certificate shall be provided that reflects the development as approved (eg addressing any modification required via conditions of consent). Any significant works (ie any works not able to be considered as Exempt and Complying Development) that result from changes to the BASIX Certificate or conflict with conditions of consent require Council's consent.

The Principal Certifying Authority shall be responsible for ensuring that all the undertakings are satisfied prior to the issue of an Occupation Certificate.

The above condition is a prescribed condition under the Environmental Planning and Assessment Act Regulations clause 97A and the above BASIX commitments are mandatory and can not be modified under Section 96 of the Environmental Planning and Assessment Act 1979.

28. USE OF RENEWABLE TIMBERS

Council requires, wherever possible, the use of renewable timbers and/or plantation timbers such as Radiata Pine or Oregon as an alternative to the use of non-renewable rainforest timber products in buildings so as to help protect the existing areas of rainforest. In this regard, a schedule of proposed timber products to be used in the building is to be submitted for approval by the Principle Certifying Authority prior to the issue of the Construction Certificate. Where the applicant is to use timbers not recommended in Council's Policy, reasons are to be given why the alternative timbers recommended cannot be used.

29. FIRE SAFETY UPGRADING WORKS

a) In addition to all new works fully comply with the Building Code of Australia, pursuant to Clause 94 of the Environmental Planning and Assessment Regulation 2000, the existing building must be upgraded to comply with the following provisions of the Building Code of Australia (BCA):

(i) The three sole sole-occupancy units and attached dwelling must be separated by building elements that comply with the fire resistance performance requirements set out in CP2 and CP8 of Volume 1 of the Building Code of Australia. (ii) Compartmentation and separation - Part C2; (iii) Protection of openings – Part C3 (iv) Smoke hazard management - Part E2; (v) Sanitary and other facilities - Part F2;; (vi) Damp and weatherproofing – Part F1 (vii) Room heights – Part F3; (viii) Light and ventilation – Part F4; and

19 62 (ix) Sound transmission and insulation - Part F5.

b) If compliance with the deemed-to-satisfy provisions of the BCA and the matters listed in condition (a) above cannot be achieved, an alternative building solution in accordance with Part A0 of the BCA must be prepared by a suitably qualified and accredited person and be submitted to the Certifying Authority illustrating how the relevant performance requirements of the BCA are to be satisfied. Prior to a Construction Certificate being issued, the Certifying Authority must ensure that the building complies with the Building Code of Australia.

c) The BCA matters identified in (a) above are not an exhaustive list of conditions to verify compliance or non-compliance with the BCA. Any design amendments required to achieve compliance with the BCA must be submitted to Council. Significant amendments may require an application under Section 96 of the Act to be lodged with Council to amend this consent.

Note: The provisions of Clause 94 of the Environmental Planning and Assessment Regulation 2000 have been considered in the assessment of the proposed development.

C. COMPLIANCE PRIOR TO AND DURING CONSTRUCTION

30. PRIOR TO SITE WORKS

The Principal Certifying Authority must be informed in writing before any site works, building or demolition commences of:

(a) the name and contractor licence number of the licensee who has contracted to do, or intends to do, work ; or

(b) the name and permit number of the owner/builder who intends to do the work; and

31. HOME BUILDING ACT

The builder or person who does the residential building work shall comply with the applicable requirements of Part 6 of the Home and Building Act, 1989. In this regard a person must not contract to do any residential building work unless a contract of insurance that complies with this Act is in force in relation to the proposed work. It is the responsibility of the builder or person who is to do the work to satisfy the Principal Certifying Authority that they have complied with the applicant requirements of Part 6, before any work commences.

32. CONSTRUCTION SIGNS

Prior to commencement of any works on the site and during construction a sign shall be erected on the main frontage of the site detailing the name, address and contact details (including a telephone number) of the Principal Certifying Authority and principal contractor (the coordinator of the building works). The sign shall be clearly legible from the adjoining street/public areas and maintained throughout the building works.

33. EXCAVATION AND BACKFILLING

All excavations and backfilling associated with the erection or demolition of a building must be executed safely and in accordance with the appropriate professional standards and must be properly guarded and protected to prevent them from being dangerous to life or property.

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34. EXCAVATION BELOW FOOTINGS

If an excavation associated with the erection or demolition of a building extends below the level of the footings of a building on an adjoining allotment of land, the person causing the excavation to be made, at their own expense, must:

(a) preserve and protect the building from damage; and

(b) if necessary, must underpin and support the building in an approved manner; and

(c) must, at least seven days before excavating below the level of the base of the footings of a building on an adjoining allotment of land, give notice of intention to do so to the owner of the adjoining allotment of land and furnish particulars of the excavation to the owner of the building being erected or demolished.

35. OBSTRUCTION TO PUBLIC AREAS

If a public place or pedestrian vehicular traffic may be obstructed because of the carrying out of work involved in the erection or demolition of a building; or a public place is required to be enclosed in connection with the erection or demolition of a building; then:

(a) a hoarding fence must be erected between the building site and the public place of the proposed building and the public place. If necessary, an awning sufficient to prevent any substance from, or in connection with, the work falling into the public place, is also to be erected;

(b) the work is to be kept lit during the time between sunset and sunrise if the work may be of a sort of danger to persons using the public place; and

36. TOILET FACILITIES

Toilet facilities being provided on the work site in accordance with the requirements of Sydney Water.

37. NO USE OF ORGANOCHLORIN PESTICIDES

The use of organochlorin pesticides as termite barriers in new development is prohibited pursuant to Council Policy. Only physical barriers are to be used for termite control. The building shall comply with Australian Standard 3660: Protection of building from subterranean termites - prevention, detection and treatment of infestation.

38. DILAPIDATION REPORTS

A Dilapidation surveys must be conducted and dilapidation reports prepared by a practising professional engineer (structural) of all buildings, (both internal and external), including ancillary structures located on land adjoining the site and of such further buildings located within the likely “zone of influence” of any excavation, dewatering and/or construction induced vibration. The survey must identify which properties are within the likely 'zone of influence'.

These properties must include (but are not limited to) 10 Military Road, North Bondi, and any others identified to be in the zone of influence in the Dilapidation Survey.

21 64 The dilapidation reports must be completed and submitted to Council and the Principal Certifying Authority with or prior to the Notice of Commencement and prior to the commencement of any development work. The adjoining building owner(s) must be given a copy of the dilapidation report for their building(s) prior to the commencement of any work.

Please note the following:

(a) The dilapidation report will be made available to affected property owners on request and may be used by them in the event of a dispute relating to damage allegedly due to the carrying out of the development.

(b) This condition cannot prevent neighbouring buildings being damaged by the carrying out of the development.

(c) Council will not be held responsible for any damage which may be caused to adjoining buildings as a consequence of the development being carried out.

(d) Council will not become directly involved in disputes between the Developer, its contractors and the owners of neighbouring buildings.

(e) In the event that access for undertaking the dilapidation survey is denied the applicant is to demonstrate in writing to the satisfaction of the Council that all reasonable steps were taken to obtain access to the adjoining property. The dilapidation report will need to be based on a survey of what can be observed externally.

39. DEMOLITION OR ALTERATION OF PRE 1987 BUILDINGS

At least five (5) days prior to the demolition, renovation work or alterations and additions to any building constructed before 1987, the person acting on the consent shall submit a Work Plan prepared in accordance with Australian Standard AS260-2001, Demolition of Structure and a Hazardous Materials Assessment by a person with suitable expertise and experience. The Work Plan and Hazardous Materials Assessment shall:

(a) outline the identification of any hazardous materials, including surfaces coated with lead paint;

(b) confirm that no asbestos products are present on the subject land; or

(c) particularise a method of safely disposing of the asbestos in accordance with the Code of Practice for the Safe Removal of Asbestos NOHSC 2002 (1998);

(d) describe the method of demolition;

(e) describe the precautions to be employed to minimise any dust nuisance; and

(f) describe the disposal methods for hazardous materials.

40. DEMOLITION & SITE PREPARATION

Hazardous or intractable wastes arising from the demolition process being removed and disposed of in accordance with the requirements NSW WorkCover Authority and the NSW Environment Protection Authority (EPA), and with the provisions of:

(a) Work Health & Safety Act 2011; (b) Work Health & Safety Regulation 2011; (c) Protection of the Environment Operations Act 1997 (NSW) and

22 65 (d) NSW EPA Waste Classification Guidelines 2009.

41. COMPLIANCE WITH WORKCOVER NSW REQUIREMENTS

All site works complying with the occupational health and safety requirements of WorkCover NSW.

42. SOIL AND WATER MANAGEMENT PLAN

A Soil and Water Management Plan (also known as an Erosion and Sediment Control Plan) shall be prepared according to SSROC's Soil and Water Management Brochure and the NSW Environment Protection Authority (EPA) Managing Urban Stormwater: Soils and Construction. This Plan shall be implemented prior to commencement of any works or activities. All controls in the Plan shall be maintained at all time. A copy of the Soil and Water Management Plan must be kept on site at all times and made available to Council officers on request.

43. STOCKPILES

Stockpiles of topsoil, sand, aggregate, soil or other material shall not be located on any drainage line or easement, natural watercourse, footpath or roadway and shall be protected with adequate sediment controls.

44. LOCATION OF BUILDING OPERATIONS

Building operations such as brick cutting, washing tools or brushes and mixing mortar are not permitted on public roadways or footpaths or in any locations which could lead to the discharge of materials into the stormwater drainage system.

45. TEMPORARY DIVERSION OF ROOF WATERS

Stormwater from roof areas shall be linked via a temporary downpipe to Council's stormwater system immediately after completion of the roof area. Inspection of the building frame will not occur until this is completed.

46. ALL BUILDING MATERIALS STORED ON SITE

All building materials and any other items associated with the development are to be stored within the confines of the property. No materials are to be stored on Council's footpath, nature strip, or road reserve without prior Council approval.

47. CONSTRUCTION HOURS

Demolition and building work must only be undertaken between the hours of 7am and 5pm on Mondays to Fridays and 8am to 3pm on Saturdays with no work to be carried out on:

(a) The Saturday and Sunday which form part of public holiday weekends;

(b) Sundays and public holidays; and

(c) On the Saturday (except minor renovation or refurbishment to a single dwelling construction) day (except minor renovation or refurbishment to a single dwelling construction) and Sunday which immediately precede or follow industry Rostered Days Off, as agreed by the CFMEU and the Master Builders Association of NSW.

Noise from construction activities shall comply with the Protection of the Environmental Operations (Noise Control) Regulation 2000.

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48. BUILDING CODE OF AUSTRALIA

All building work must be carried out in accordance with the requirements of the Building Code of Australia.

49. QUALITY OF CONSTRUCTION ACT - INSPECTIONS (RESIDENTIAL FLAT DEVELOPMENT AND OTHER RESIDENTIAL CLASS 2, 3 AND 4)

The building works are to be inspected during construction by the Principal Certifying Authority (PCA) and in accordance with the Building Legislation (Quality of Construction) Act 2002 and the Environmental Planning and Assessment Regulations. Also, documentary evidence of compliance with the relevant terms of conditions of development consent and standards of construction detailed in the Building Code of Australia is to be obtained prior to proceeding to the subsequent stages of construction and/or issue of an Occupation Certification.

MANDATORY Critical Stage Inspections MUST be carried out by the PCA for work undertaken during specified stages of construction and prior to issuing an Occupation Certificate.

The specified MANDATORY inspections are:

In the case of a Class 2, 3 and 4 building: (a) at the commencement of the building work; (b) prior to covering of waterproofing in any wet area for a minimum of 10% of rooms with wet area within a building; (c) prior to covering any stormwater drainage connections; and (d) after the building work has been completed and prior to any Occupation Certificate being issued in relation to the building.

The following additional inspections are required to be undertaken by the PCA:

(a) sediment control measures prior to the commencement of building work; (b) foundation material prior to undertaking building work; (c) shoring of excavation works, retaining walls, piers, piling or underpinning works; (d) steel reinforcement, prior to pouring concrete; (e) prior to covering timber or steel framework for floors, walls and roofing, including beams and columns; (f) prior to installation of fire resisting construction systems (ie fire rated ceilings and walls); and

Note: Certification may be required from a suitably qualified person, in relation to specialist matters, verifying that particular works satisfy the relevant requirements of the Building Code of Australia and standards of construction.

50. CERTIFICATE OF SURVEY - LEVELS

All construction works shall be strictly in accordance with the Reduced Levels (RLs) as shown on the approved plans. Certification from a Registered Surveyor certifying ground, upper floor/s and finished ridge levels is to be submitted to the Principal Certifying Authority during construction and prior to continuing to a higher level of the building.

51. CERTIFICATE OF SURVEY - BOUNDARIES AND LOCATION OF BUILDING

A Certificate of Survey prepared by a Registered Surveyor setting out the boundaries of the site and the actual situation of the building on the site is to be submitted to the Principal Certifying Authority to certify the building is located in accordance with the development consent plans. The

24 67 Certificate is to be submitted prior to the construction of the external walls above the ground floor level of the building.

52. STRUCTURAL STABILITY OF ADJOINING SEMI-DETECHED DWELLING'S ROOF

Adequate measures are to be undertaken to ensure structural stability and water proofing of the existing roof over the adjoining semi-detached dwelling having particular regard to the following:

(a) adequate measures are undertaken to secure the existing rafters and ridge to the brickwork of the party wall; and

(b) adequate measures are undertaken to ensure that the roof where it abuts the extended party wall is water proofed.

53. IN-SINK WASTE DISPOSAL SYSTEMS

The installation of in-sink waste disposal systems is prohibited.

54. NEW WORK TO MATCH EXISTING

The external finish of the proposed first floor addition is to have a uniform appearance to match the external finish of the existing building.

55. WATER PROOFING

The floor and wall surfaces of the proposed wet areas being protected against water in accordance with the Building Code of Australia. The wet areas are to be examined and certified by an Accredited Certifier.

Note: Water proofing is to be in accordance with AS 3740 - Water Proofing of Wet Areas within residential buildings.

56. HOT TAP WATER SCALDING

To reduce the incidence of hot tap water scalding and, for the purpose of energy efficiency, all new or replacement hot water systems shall deliver hot water to a maximum 50 degrees Celsius at the outlet of all sanitary fixtures used for personal hygiene.

57. TREE PROTECTION

Precautions shall be taken when working near trees to ensure their retention, including the following:

(a) Do not store harmful or bulk materials or spoil under or near trees; (b) Prevent damage to bark and root system; (c) Do not use mechanical methods to excavate within root zones; (d) Do not add or remove topsoil from under the drip line; (e) Do not compact ground under the drip line; (f) Do not mix or dispose of liquids within the drip line of the tree; and (g) All trees marked for retention must have a protective fence/guard placed around a nominated perimeter.

58. WORK OUTSIDE PROPERTY BOUNDARY

All work outside the property boundary is to be carried out with the approval of, and in accordance with, the requirements of Council at the applicant's expense.

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D. COMPLIANCE PRIOR TO OCCUPATION OR DURING OCCUPATION

59. FINAL OCCUPATION CERTIFICATE

The Principal Certifying Authority prior to occupation or use of the development must issue a final Occupation Certificate. In issuing an Occupation Certificate, the Principal Certifying Authority must be satisfied that the requirements of Section 109H of the Environmental Planning & Assessment Act, 1979 have been satisfied.

60. LIGHTING

Any lighting on the site shall be designed so as not to cause nuisance to other residences in the area or to motorists on nearby roads and to ensure no adverse impact on the amenity of the surrounding area by light overspill. All lighting shall comply with the Australian Standard AS 4282:1997 Control of the Obtrusive Effects of Outdoor Lighting.

61. SYDNEY WATER

A Section 73 Compliance Certificate under the Sydney Water Act 1994 must be obtained. Application must be made through an authorised Water Servicing Coordinator, for details see the Sydney Water website www.sydneywater.com.au\customer\urban\index or telephone 13 20 92.

Following application a "Notice of Requirements" will be forwarded detailing water and sewer extensions to be built and charges to be paid. Please make early contact with the Coordinator, since building of water/sewer extensions can be time consuming and may impact on other services and building, driveway or landscape design.

The Section 73 Certificate must be submitted to the Principal Certifying Authority prior to release of the subdivision plan/occupation of the development.

26 69 70 71 72 73 74 75 REPORT TO COUNCIL

Alcohol-Free Zone – Dudley Page Reserve and Caffyn Park, Dover Heights (A11/0738)

Recommendation: That Council:

1. Receives and notes this report.

2. Endorses the re-establishment of an Alcohol-Free Zone as indicated on the attached map (Attachment 1).

3. Notes the necessary signs will be produced and erected in the key locations in accordance with the Local Government Act 1993.

Purpose of report

The Alcohol-Free Zone (AFZ) will be enforceable on 5 October 2013 between 12.01am and 11.59pm. On this date the International Fleet Review (IFR) will be held on Sydney Harbour which will involve activities occurring on the harbour throughout the day.

Background / Introduction

From 3 - 11 October 2013, the Royal Australian Navy (RAN) will be hosting an International Fleet Review (IFR) to commemorate the 100th anniversary of the arrival of the first RAN Fleet to enter Sydney Harbour. The actual review and a harbour spectacular will be held on Saturday 5th October commencing at 11.00am and finishing at approximately 8.30pm.

Rose Bay Command have requested Waverley Council implement an Alcohol Free Zone around Dudley Page Reserve and Caffyn Park, being a prime locations for viewing the IFR spectacular, to assist them with the management of the area on this night.

Analysis

Whilst authorities do not believe that the IFR Spectacular will have the association with alcohol that New Year’s Eve (NYE) traditionally does, Rose Bay Police Command believe there is the potential for people to use the occasion as one to “party” especially as it is long weekend

The implementation of the AFZ will assist the Police should they be required to manage any potential anti social behaviour in the area.

Financial

There is a small cost required to manufacture and erect signs to be met from the Events and Business Development budget.

76 REPORT TO COUNCIL

Delivery Program/Operational Plan

The proposed establishment of the alcohol free zone is consistent with the adopted Delivery program being:

C5: People feel safe in all parts of Waverley

Consultation

The statutory requirements and procedures required have been followed and the following consultation process has been undertaken: 1. Publication of a notice about the proposal to renew the AFZ has been placed in a local newspaper inviting representations or objections within 14 days.

2. Formal notification of the Police Command for the area advising them of the proposal and inviting representation or objections within 30 days.

3. Formal notification to Council’s Community Safety Advisory Committee.

4. Letters were sent to Dover Heights, Rose Bay and Vaucluse Precinct Committees, advising them of the proposal inviting representation or objections within 30 days.

No responses were received.

Timeframe

The AFZ signs will be erected one week prior to the event and removed after the event.

Recommendation: That Council:

4. Receives and notes this report;

5. Endorses the re-establishment of an Alcohol-Free Zone as indicated on the attached map (Attachment 1;

6. Notes the necessary signs will be produced and erected in the key locations in accordance with the Local Government Act 1993.

Cathy Henderson Director, Community and Recreation Services

Author: Lorna Bussell, Divisional Manager, Event and Business Development Division

Attachment 1: Dudley Page Reserve and Caffyn Park Alcohol Free Zone Map 2013

77 REPORT TO COUNCIL

ATTACHMENT 1: Dudley Page Reserve and Caffyn Park Alcohol Free Zone Map 2013

REPORT TO COUNCIL

Proposed grant funding for schools and early education centres (A12/0030)

Report dated 4 September 2013 from the Director, Planning and Environmental Services about establishing an ongoing small grants program for Waverley schools and early education centres.

Recommendation: That Council supports the establishment of an ongoing small grants program for Waverley schools and early education centres.

Purpose of Report

The purpose of this report is to seek Council approval to establish an ongoing small grants program for Waverley schools and early education centres. It is proposed that the program will be funded via Environmental Services operational budget to a maximum program cost of $10000 per year.

This grant proposal is an additional layer of grant funding to the already established Small Grants Program managed by CRS and will be managed separately to this.

Background / Introduction

Until 2011 Council ran the Sustainable Schools grants program available for local schools to implement environmental improvement projects. In 2011 the program was integrated into Council's Small Grant program under the Environmental category. This program is open to community groups and educational facilities to apply for up to $3000 in two funding rounds per year.

Council also assists schools on an as needs basis using the Environmental Services recurrent budget. In the past, this has been to purchase bins and signage, provide plants and prizes and build gardens etc. These are often projects that are identified by the Environment Officer when working with the schools and that are needed in a short time frame to compliment other programs the school is working on.

Assistance with small projects like this in a timely manner, is of great help to the schools as it doesn't stall their progress and enables them to continue with their great ideas with the support of Council.

To make this process more transparent it is recommended that this assistance be made into a more formal process. It is recommended that this be in the form of an ongoing or rolling grant that could be applied for at any time in the year as long as the funds are spent in the same financial year. This grant would be for up to $1000 per application, with up to $10000 available each year. It would come directly from the current allocated Environmental Services budget. An application form would need to be completed based on the criteria and guidelines currently used for Council's Small Grant program.

The Environment Officer will asses each application on its merits when submitted. Applications will be assessed on a first in basis and when the $10000 limit has been reached no further applications will be accepted for that financial year and schools will be asked to reapply the following year.

REPORT TO COUNCIL

Formalising the assistance we provide to educational facilities in this way, will ensure a transparent and equitable system that can be advertised each year. This process will be in addition to and compliment the established Small Grants Program. It will enable a much quicker option for helping educational facilities with small environmental projects.

Analysis

 Financial

$10000 yearly, funded through the Environmental Services recurrent budget.

 Delivery Program/Operational Plan

The Sustainable Schools ongoing small grant program will help Council work towards the following Operational Plan directions:

E1: Waverley’s community contributes to the reduction of greenhouse gas emissions. E2 :Waverley and its community is well prepared for the impacts of climate change. E3 :Waverley’s community, including its visitors, reduces the amount of waste it generates and increases the amount it reuses and recycles. E4 :Water is used carefully and sparingly in Waverley’s buildings, gardens, businesses and Council operations. E5 :The waterways and beaches are clean and free of pollutants. E8 :Waverley is an environmentally educated and committed community.

 Consultation

This proposal was discussed with staff in the CRS division.

Timeframe

This program can commence in October 2013.

Recommendation: That Council supports the establishment of an ongoing small grants program for Waverley schools and early education centres.

Peter Monks Director, Planning & Environmental Services

Author: Vicky Bachelard Environmental Services

REPORT TO COUNCIL

Artist in Residence Program 2014 (A07/1554-11)

Report dated 5 September 2013 from the Director, Community & Recreation Services about Waverley Public Art Committee recommendations for the January-June 2014 Waverley Artist In Residence Program

Recommendation: That Council:

1. Approves offers to Cat Jones, Ella Barclay and Sean Rafferty for a place in the January-June 2014 Artist in Residence program;

2. Places Guy Francis Martin and Ella Condon on the waiting list for the January–June 2014 Artist in Residence Program.

Purpose of Report

This report provides information on the Artist in Residence program to date and summarises applications proposed for the first residency group in next year’s program.

Background / Introduction

This is the fifth year of the Artist in Residence Program based in the former Caretaker’s Studio in the Bondi-Waverley School of Arts building on Bondi Road, Bondi. The Waverley Artist in Residence Program offers three rent-free workspaces for periods of six months. In return for the space, resident artists enter into an agreement with Council to provide agreed community benefits such as an Open Studio Day, tutor in Waverley School Holiday Programs, give artist talks, exhibit in our galleries, and create temporary pop installations and public art works as part of our festivals.

The residency program to date has supported 22 artists: Aileen Huynh, Bernadette Jones, Emma Anna, Fiona Lowry, Gail Carson, Gretchen Keelty, Joanne Mulcahy-Zubani, Julia Kennedy, Juliet Holmes-A-Court, Kate Mitchell, Lucas Davidson, Malcolm Whittaker, Maria Buchner, Marisa Purcell, Mark Eliott, Maz Dixon, Sarah Eddowes, Sue Saxon, Tannya Harricks, Todd Fuller, Todd McMillan, and TV Moore.

On Monday 26 August 2013 the Waverley Public Art Committee reviewed the top six EOI applicants for the January – June 2014 residency period. Applications had previously been graded against a set selection criteria by internal Council staff from Arts & Cultural Services and Waverley Library Public Programs team in their responses to the EOI.

 Analysis

The Waverley Public Art Committee recommends the following three artists are offered places in the program, with the fourth and fifth placed on reserve:

1. Cat Jones: local artist Cat Jones is an interdisciplinary performance maker, artist, writer and curator currently investigating human-plant relationships through science, art and social history.

REPORT TO COUNCIL

2. Ella Barclay: local artist The cinematic installations of Ella Barclay engage with the transfixing, impulsive and intuitive behaviors brought about by new technologies.

3. Sean Rafferty: local artist Sean Rafferty works across a range of media including printmaking, photography, video, drawing and film exploring depictions of landscape in art, literature and film and how these depictions are used as representations of ideas or identities.

Artists On Reserve:

4. Guy Francis Martin: non local artist Guy Francis Martin’s practice is focused on creating oil paintings which take their subject from the human figure in its surroundings.

5. Ella Condon: non local artist Ella Condon is a Sydney based artist who interacts with spaces through photography, video and light installation. Her work explores themes of beauty and violence.

 Financial Artists are provided with in kind support from Council through the use of the artist spaces at the WWAS and staff time in delivering the project. There are no direct costs to Council in running the Artist in Residence Program.

 Delivery Program/Operational Plan The Waverley Artist in Residence program aligns with Waverley Together 3 and the Delivery Program 2013-17, as well as the Arts Plus Plan, as follows: :

Waverley Together 3 2013-2025: C6c Foster and create opportunities in the creative sector to retain local artists and cultural providers in Waverley.

Delivery Program 2013-17: C6c: Deliverable: Support, advice and affordable and accessible venues provided to assist artists and others to hold arts and cultural events and activities

Outcome: More working and exhibition space for artists

Arts Plus Plan: 2.1 Develop a creative industries profile 2.3 Support artist run initiative 2.4 Facilitate the development of arts groups and organizations in Waverley

 Consultation: On Monday 26 August 2013 the Waverley Public Art Committee reviewed the top six EOI applicants for the January – June 2014 residency period.

REPORT TO COUNCIL

Timeframe This group of artists will move into the studios in 1 January 2014 and remain in the studios until 30 June 2014.

Note: previously, an annual Artist in Residence EOI process has been run covering both the January - June six month term and the July - December six month term, the following year. This has mostly tended to attract applications for the first six month term, with few artists choosing to apply for the second six month term. This may be because artists may not be able to commit to a six month residency so far in advance.

Following discussion by the Waverley Public Art Committee, future EOI processes will be run every six months instead of on an annual basis.

Recommendation: That Council:

1. Approves offers to Cat Jones, Ella Barclay and Sean Rafferty for a place in the January-June 2014 Artist in Residence program;

2. Places Guy Francis Martin and Ella Condon on the waiting list for the January–June 2014 Artist in Residence Program.

Cathy Henderson Director, Community & Recreation Services

Author: Elizabeth Reidy, Project Officer Gallery Coordination

83 REPORT TO COUNCIL

Draft Annual Financial Statements Year Ended 30 June 2013 (A02/0647-09)

Report dated 9 September 2013 from the Director Corporate & Technical Services in relation to the Draft Annual Financial Statements year ended 30 June 2013.

Recommendations:

1. In the opinion of the Councillors of Waverley Council:

(i) The state of affairs of the Council as at 30 June 2013, and the operating result and cash flows for the financial year ended on that date of the Council and all controlled entities; and

(ii) The other matters required to be disclosed;

(b) The General Purpose Financial Statements are in accordance with the accounting and other records of the Council;

(e) No circumstances have arisen which would render the report false or misleading in any way.

3. That pursuant to the provisions of Section 413 of the Local Government Act 1993, Council hereby declares that the Draft Annual Financial Statements (including General Purpose and Special Purpose Financial Statements) for the year ending 30 June 2013, be referred for audit.

5. Council resolve that at the meeting of Council to be scheduled for Tuesday, 15 October 2013, whereby Council will present its audited financial report and Auditor's report to the public.

84 REPORT TO COUNCIL

Purpose of Report

To present Council’s Draft Annual Financial Statements for the year ended 30 June 2013 and to refer the Draft Annual Financial Statements to audit.

Background / Introduction

Part 5 of the Local Government (Financial Management) Regulations 1993 requires the Council to make a formal declaration in a particular manner to meet Section 413 of the Act and resolve to refer the Draft Annual Financial Statements for Audit. This declaration must be attached to the relevant financial statements and signed by the Mayor and one other Councillor as well as the General Manager and Responsible Accounting Officer. The purpose sought by the Act is an acceptance of responsibility by the Council's elected members for its published annual financial statements.

Following this resolution, Council will then await the receipt of the Auditor’s Report and then publicly advertise that the audited Financial Statements are available for inspection and comment by members of the public.

The Financial Services Manager has prepared and attached a set of Draft Annual Financial Statements. She now advises Council that the listed recommendations may be considered by the Council. The Draft Annual Financial Statements incorporate the:

 General Purpose Income Statement,  General Purpose Statement of Comprehensive Income,  General Purpose Balance Sheet,  General Purpose Statement of Changes in Equity and the  General Purpose Statement of Cash Flows for the financial year ended 30 June 2013,  Special Purpose Income Statement for Council’s Other Business Activities,  Special Purpose Balance Sheet for Council’s Other Business Activities.

 Delivery Program

Proposal is consistent with the adopted strategy in the Sustainable Governance chapter of the 2013-17 Delivery Program, to:

G5a - Provide financial services for the Council in an accurate, timely, open and honest manner.

 Operational Plan

Proposal is consistent with the adopted deliverable action in the Sustainable Governance chapter of the 2013/14 Operational Plan, to:

G5a – ensure end of year accounts are completed.

 Consultation

As proposed below.

Timeframe

The Local Government Act specifies the timeframe with which Council must complete its annual financial statements, present them to the public and the Division of Local Government, Department of Premier and Cabinet. The following timetable will allow these processes to be satisfied and for the Annual Financial Statements to be adopted by Council.

85 REPORT TO COUNCIL

17 September 2013 Council Meeting – Draft Annual Financial Statements presented to the Council requesting Council to refer the Financial Statements to the Auditors.

30 September 2013 Public notice of the meeting to be held on Tuesday, 15 October 2013, be given to the newspapers to be published in the week commencing 7 October 2013. The public notice will also advise that the Annual Financial Statements are available for inspection and that submissions will be received until 1 November 2013.

15 October 2013 Council Meeting – Council’s Auditors report on the Annual Financial Statements is formally presented to Council.

1 November 2013 Closing date for public submissions on the Annual Financial Statements. All submissions received must be referred to Council’s Auditor for consideration (Section 420(3)). Council may take such action as it considers appropriate with respect to any submissions received.

7 November 2013 Audited Financial Statements, including the Auditors Report, and the Financial Data Report to be submitted to the Division of Local Government, Department of Premier and Cabinet.

Recommendations:

1. In the opinion of the Councillors of Waverley Council:

(i) The state of affairs of the Council as at 30 June 2013, and the operating result and cash flows for the financial year ended on that date of the Council and all controlled entities; and

(ii) The other matters required to be disclosed;

(b) The General Purpose Financial Statements are in accordance with the accounting and other records of the Council;

(e) No circumstances have arisen which would render the report false or misleading in any way.

4. Public notice of the meeting to be held on Tuesday, 17 September 2013, be given to the newspapers to be published in the week commencing 7 October 2013, including the publication of all documents required under Section 418 of the Local Government Act, 1993.

5. Council resolve that at the meeting of Council be scheduled for Tuesday 15 October 2013, whereby Council will present its audited financial report and Auditor's report to the public.

Bronwyn Kelly Director Corporate & Technical Services Report Author: Ian Mead

87 Waverley Council Annual Financial Statements for the financial year ending 30 June 2013

DRAFT

Incorporating: ■■General Purpose Financial Statements ■■Special Purpose Financial Statements ■■Special Schedules 88 DRAFT Waverley Council GENERAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2013

"We are united by a common passion for our beautiful home between the city and the sea."

89 Waverley Council

General Purpose Financial Statements for the financial year ended 30 June 2013

Contents Page

1. Understanding Council's Financial Statements 2

2. Statement by Councillors & Management 3

3. Primary Financial Statements:

- Income Statement 4 - Statement of Comprehensive Income 5 - Statement of Financial Position 6 - Statement of Changes in Equity 7 - Statement of Cash Flows 8

4. Notes to the Financial Statements 9

5. Independent Auditor's Reports:

- On the Financial Statements (Sect 417 [2]) 78 - On the Conduct of the Audit (Sect 417 [3]) 80

Overview

(i) These financial statements are General Purpose Financial Statements and cover the consolidated operations for Waverley Council. DRAFT (ii) Waverley Council is a body politic of NSW, Australia - being constituted as a Local Government area by proclamation and is duly empowered by the Local Government Act (LGA) 1993 of NSW.

Council's Statutory Charter is detailed in Paragraph 8 of the LGA and includes giving Council;

 the ability to provide goods, services & facilities, and to carry out activities appropriate to the current & future needs of the local community and of the wider public,  the responsibility for administering regulatory requirements under the LGA and  a role in the management, improvement and development of the resources in the area.

A description of the nature of Council's operations and its principal activities are provided in Note 2(b).

(iii) All figures presented in these financial statements are presented in Australian Currency.

(iv) These financial statements were authorised for issue by the Council on 18 September 2013. Council has the power to amend and reissue these financial statements.

Introduction 5. The Statement of Cash Flows

Each year, individual Local Governments across Indicates where Council's cash came from and NSW are required to present a set of audited where it was spent. financial statements to their Council & Community. This statement also displays Council's original adopted budget to provide a comparison between What you will find in the Statements what was projected and what actually occurred.

The financial statements set out the financial About the Notes to the Financial Statements performance, financial position & cash flows of

Council for the financial year ended 30 June 2013. The Notes to the financial statements provide greater

detail and additional information on the 5 primary The format of the financial statements is standard financial statements. across all NSW Councils and complies with both the accounting & reporting requirements of Australian Accounting Standards and requirements as set About the Auditor's Reports down by the NSW Division of Local Government. Council's financial statements are required to be audited by external accountants (that generally About the Councillor/Management Statement specialize in Local Government).

The financial statements must be certified by Senior In NSW, the Auditor provides 2 audit reports: staff as "presenting fairly" the Council's financial results for the year, and are required to be adopted 1. An opinion on whether the financial statements by Council - ensuring both responsibility for & present fairly the Council's financial performance ownership of the financial statements. & position, &

About the Primary Financial Statements 2. Their observations on the conduct of the Audit including commentary on the Council's financial The financial statements incorporate 5 "primary" performance & financial position. financial statements: Who uses the Financial Statements ? 1. The Income Statement DRAFT Summarises Council's financial performance for the The financial statements are publicly available year, listing all income & expenses. documents & must be presented at a Council meeting between 7 days & 5 weeks after the date of This statement also displays Council's original the Audit Report. adopted budget to provide a comparison between what was projected and what actually occurred. Submissions from the public can be made to Council up to 7 days subsequent to the public presentation of 2. The Statement of Comprehensive Income the financial statements.

Primarily records changes in the fair values of Council is required to forward an audited set of Council's Infrastructure, Property, Plant & Equipment. financial statements to the Division of Local Government. 3. The Statement of Financial Position

A 30 June snapshot of Council's financial position indicating its Assets, Liabilities & “Net Wealth”. More information

4. The Statement of Changes in Equity A review of Council's financial performance and position for the 12/13 financial year can be found at The overall change for the year (in dollars) of Note 27 of the financial statements. Council's "Net Wealth". 91 Waverley Council

General Purpose Financial Statements for the financial year ended 30 June 2013

Statement by Councillors and Management made pursuant to Section 413(2)(c) of the Local Government Act 1993 (as amended)

The attached General Purpose Financial Statements have been prepared in accordance with:

 The Local Government Act 1993 (as amended) and the Regulations made thereunder,

 The Australian Accounting Standards and professional pronouncements, and

 The Local Government Code of Accounting Practice and Financial Reporting.

To the best of our knowledge and belief, these Financial Statements:

 present fairly the Council’s operating result and financial position for the year, and

 accords with Council’s accounting and other records.

We are not aware of any matter that would render the Reports false or misleading in any way.

Signed in accordance with a resolution of Council made on 17 September 2013. DRAFT Clr Sally Betts MAYOR COUNCILLOR

Anthony Reed Vanessa Canepa GENERAL MANAGER RESPONSIBLE ACCOUNTING OFFICER

92 Waverley Council

Income Statement for the financial year ended 30 June 2013

Budget (1) Actual Actual 2013 $ '000 Notes 2013 2012

Income from Continuing Operations Revenue: 47,189 Rates & Annual Charges 3a 47,283 41,608 29,672 User Charges & Fees 3b 28,222 25,483 2,375 Interest & Investment Revenue 3c 2,647 3,054 15,194 Other Revenues 3d 30,874 19,002 5,241 Grants & Contributions provided for Operating Purposes 3e,f 7,108 6,641 1,700 Grants & Contributions provided for Capital Purposes 3e,f 6,802 4,914 Other Income: 46,306 Net gains from the disposal of assets 5 189 - Net Share of interests in Joint Ventures & Associated - Entities using the equity method 19 - -

147,677 Total Income from Continuing Operations 123,125 100,702

Expenses from Continuing Operations 53,525 Employee Benefits & On-Costs 4a 50,682 48,500 225 Borrowing Costs 4b 194 246 17,136 Materials & Contracts 4c 17,301 15,762 15,167 Depreciation & Amortisation 4d 15,715 15,865 - Impairment 4d - 775 20,302 Other Expenses 4e 21,230 19,022 - Interest & Investment Losses 3c - - - Net Losses from the Disposal of Assets 5 - 206

106,355 Total Expenses from Continuing Operations 105,122 100,376

41,322 Operating Result from Continuing Operations 18,003 326 Discontinued OperationsDRAFT - Net Profit/(Loss) from Discontinued Operations 24 - -

41,322 Net Operating Result for the Year 18,003 326

41,322 Net Operating Result attributable to Council 18,003 326 - Net Operating Result attributable to Non-controlling Interests - -

Net Operating Result for the year before Grants and 39,622 Contributions provided for Capital Purposes 11,201 (4,588)

(1) Original Budget as approved by Council - refer Note 16

93 Waverley Council

Statement of Comprehensive Income for the financial year ended 30 June 2013

Actual Actual $ '000 Notes 2013 2012

Net Operating Result for the year (as per Income statement) 18,003 326

Other Comprehensive Income:

Amounts which will not be reclassified subsequently to the Operating Result

Gain (loss) on revaluation of I,PP&E 20b (ii) 50,303 - Total Items which will not be reclassified subsequently to the Operating Result 50,303 -

Amounts which will be reclassified subsequently to the Operating Result when specific conditions are met Nil

Total Other Comprehensive Income for the year 50,303 -

Total Comprehensive Income for the Year 68,306 326

Total Comprehensive Income attributable to Council 68,306 326 Total Comprehensive Income attributableDRAFT to Non-controlling Interests - -

94 Waverley Council

Statement of Financial Position as at 30 June 2013

Actual Actual Actual $ '000 Notes 2013 2012 2011

ASSETS Current Assets Cash & Cash Equivalents 6a 30,112 20,824 8,842 Investments 6b 14,476 19,344 25,000 Receivables 7 8,600 7,085 6,861 Inventories 8 255 118 160 Other 8 567 518 700 Non-current assets classified as 'held for sale' 22 34,685 18,240 - Total Current Assets 88,695 66,129 41,563

Non-Current Assets Investments 6b 7,000 3,000 11,514 Receivables 7 2,175 2,124 3,202 Inventories 8 - - - Infrastructure, Property, Plant & Equipment 9 695,625 637,341 638,450 Investments accounted for using the equity method 19 - - - Investment Property 14 130,543 117,823 114,827 Intangible Assets 25 - - - Non-current assets classified as 'held for sale' 22 - 26,715 44,955 Total Non-Current Assets 835,343 787,003 812,948 TOTAL ASSETS 924,038 853,132 854,511

LIABILITIES Current Liabilities Payables 10 13,504 11,039 10,770 Borrowings 10 1,252 1,289 1,185 Provisions 10 18,958 19,926 20,456 Total Current Liabilities 33,714 32,254 32,411 Non-Current Liabilities DRAFT Payables 10 - - - Borrowings 10 3,035 1,898 3,187 Provisions 10 488 485 655 Total Non-Current Liabilities 3,523 2,383 3,842 TOTAL LIABILITIES 37,237 34,637 36,253 Net Assets 886,801 818,495 818,258

EQUITY Retained Earnings 20 592,732 572,875 572,433 Revaluation Reserves 20 294,069 245,620 245,825 Council Equity Interest 886,801 818,495 818,258 Non-controlling Interest - - - Total Equity 886,801 818,495 818,258

95 Waverley Council

Statement of Changes in Equity for the financial year ended 30 June 2013

Non- Retained Reserves Council controlling Total $ '000 Notes Earnings (Refer 20b) Interest Interest Equity

2013 Opening Balance (as per Last Year's Audited Accounts) 572,875 245,709 818,584 - 818,584 a. Correction of Prior Period Errors 20 (c) - (89) (89) - (89) b. Changes in Accounting Policies (prior year effects) 20 (d) - - - - - Revised Opening Balance (as at 1/7/12) 572,875 245,620 818,495 - 818,495 c. Net Operating Result for the Year 18,003 - 18,003 - 18,003 d. Other Comprehensive Income - Revaluations : IPP&E Asset Revaluation Rsve 20b (ii) - 50,303 50,303 - 50,303 - Revaluations: Other Reserves 20b (ii) ------Transfers to Income Statement 20b (ii) ------Impairment (loss) reversal relating to I,PP&E 20b (ii) ------Other Movements (enter details here) 20b (ii) - - - - - Other Comprehensive Income - 50,303 50,303 - 50,303

Total Comprehensive Income (c&d) 18,003 50,303 68,306 - 68,306 e. Distributions to/(Contributions from) Non-controlling Interests - - - - - f. Transfers between Equity 1,854 (1,854) - - -

Equity - Balance at end of the reporting period 592,732 294,069 886,801 - 886,801

Non- Retained Reserves Council controlling Total $ '000 Notes Earnings (Refer 20b) Interest Interest Equity

2012 Opening Balance (as per Last Year's Audited Accounts) 571,953 245,825 817,778 - 817,778 a. Correction of Prior Period Errors 20 (c) 480 (89) 391 - 391 Changes in Accounting Policies (prior DRAFTyear effects) 20 (d) - - - b. - - Revised Opening Balance (as at 1/7/11) 572,433 245,736 818,169 - 818,169 c. Net Operating Result for the Year 326 - 326 - 326 d. Other Comprehensive Income - Revaluations : IPP&E Asset Revaluation Rsve 20b (ii) ------Revaluations: Other Reserves 20b (ii) ------Transfers to Income Statement 20b (ii) ------Impairment (loss) reversal relating to I,PP&E 20b (ii) ------Other Movements (enter details here) 20b (ii) - - - - - Other Comprehensive Income - - - - -

Total Comprehensive Income (c&d) 326 - 326 - 326 e. Distributions to/(Contributions from) Non-controlling Interests - - - - - f. Transfers between Equity 116 (116) - - -

Equity - Balance at end of the reporting period 572,875 245,620 818,495 - 818,495 96 Waverley Council

Statement of Cash Flows for the financial year ended 30 June 2013

Budget Actual Actual 2013 $ '000 Notes 2013 2012

Cash Flows from Operating Activities Receipts: 47,028 Rates & Annual Charges 47,019 41,460 29,597 User Charges & Fees 30,511 26,738 2,377 Investment & Interest Revenue Received 2,649 2,935 7,011 Grants & Contributions 14,430 11,765 - Bonds, Deposits & Retention amounts received 42 1,844 15,230 Other 19,736 17,527 Payments: (51,088) Employee Benefits & On-Costs (51,944) (49,681) (22,612) Materials & Contracts (19,389) (16,223) (254) Borrowing Costs (213) (262) - Bonds, Deposits & Retention amounts refunded - (1,589) (18,019) Other (23,868) (20,109) 9,270 Net Cash provided (or used in) Operating Activities 11b 18,973 14,405

Cash Flows from Investing Activities Receipts: 2,708 Sale of Investment Securities 10,255 25,978 46,306 Sale of Infrastructure, Property, Plant & Equipment 10,815 53 - Deferred Debtors Receipts 83 25 Payments: (25,170) Purchase of Investment Securities (9,119) (11,439) (33,719) Purchase of Infrastructure, Property, Plant & Equipment (22,819) (15,855) (9,875) Net Cash provided (or used in) Investing Activities (10,785) (1,238)

Cash Flows from Financing Activities Receipts: 2,500 Proceeds from Borrowings & Advances 2,500 - Payments: DRAFT (1,372) Repayment of Borrowings & Advances (1,400) (1,185) 1,128 Net Cash Flow provided (used in) Financing Activities 1,100 (1,185)

523 Net Increase/(Decrease) in Cash & Cash Equivalents 9,288 11,982

8,996 plus: Cash & Cash Equivalents - beginning of year 11a 20,824 8,842

9,519 Cash & Cash Equivalents - end of the year 11a 30,112 20,824

Additional Information:

plus: Investments on hand - end of year 6b 21,476 22,344

Total Cash, Cash Equivalents & Investments 51,588 43,168

Please refer to Note 11 for additional cash flow information 97 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Contents of the Notes accompanying the Financial Statements

Note Details Page

1 Summary of Significant Accounting Policies 10 2(a) Council Functions / Activities - Financial Information 29 2(b) Council Functions / Activities - Component Descriptions 30 3 Income from Continuing Operations 33 4 Expenses from Continuing Operations 38 5 Gains or Losses from the Disposal of Assets 42 6(a) Cash & Cash Equivalent Assets 43 6(b) Investments 43 6(c) Restricted Cash, Cash Equivalents & Investments - Details 45 7 Receivables 47 8 Inventories & Other Assets 48 9(a) Infrastructure, Property, Plant & Equipment 49 9(b) Externally Restricted Infrastructure, Property, Plant & Equipment 50 9(c) Infrastructure, Property, Plant & Equipment - Current Year Impairments 50 10(a) Payables, Borrowings & Provisions 51 10(b) Description of (and movements in) Provisions 52 11 Statement of Cash Flows - Additional Information 53 12 Commitments for Expenditure 55 13 Statement of Performance Measures: 13a (i) Local Government Industry Indicators (Consolidated) 56 13a (ii) Local Government Industry Graphs (Consolidated) 58 13b Local Government Industry Indicators (by Fund) n/a 14 Investment Properties 61 15 Financial Risk Management 62 16 Material Budget Variations 67 17 Statement of Developer Contributions 69 18 Contingencies and Other Liabilities/Assets not recognised 70 19 Controlled Entities, Associated Entities & Interests in Joint Ventures 72 n/a 20 Equity - Retained EarningsDRAFT and Revaluation Reserves 72

21 Financial Result & Financial Position by Fund 74 n/a 22 "Held for Sale" Non Current Assets & Disposal Groups 74 23 Events occurring after the Reporting Period 75 n/a 24 Discontinued Operations 75 n/a 25 Intangible Assets 75 n/a 26 Reinstatement, Rehabilitation & Restoration Liabilities 75 n/a

Additional Council Disclosures

27 Financial Review & Commentary 76 28 Council Information & Contact Details 77

n/a - not applicable

98 The principal accounting policies adopted by Council Under the Local Government Act (LGA), Regulations in the preparation of these consolidated financial and Local Government Code of Accounting Practice statements are set out below in order to assist in its & Financial Reporting, it should be noted that general understanding. Councils in NSW only have a requirement to comply with AASBs. Under Australian Accounting Standards (AASBs), accounting policies are defined as those specific (iii) New and amended standards adopted by principles, bases, conventions, rules and practices Council applied by a reporting entity (in this case Council) in preparing and presenting its financial statements. None of the new standards and amendments to standards that are mandatory for the first time for the financial year beginning 1 July 2013 affected any of (a) Basis of preparation the amounts recognised in the current period or any prior period and are not likely to affect future periods. (i) Background (iv) Early adoption of Accounting Standards These financial statements are general purpose financial statements which have been prepared in Council has not elected to apply any accordance with; pronouncements before their operative date in the annual reporting period beginning 1 July 2013. . Australian Accounting Standards and Interpretations issued by the Australian Refer further to paragraph (ab) relating to a summary Accounting Standards Board, of the effects of Standards with future operative dates. . the Local Government Act (1993) & Regulation, and (v) Basis of Accounting

. the Local Government Code of Accounting These financial statements have been prepared Practice and Financial Reporting. under the historical cost convention except for:

For the purpose of preparing these financial (i) financial assets and liabilities at fair value statements, Council has been deemed to be a not- through profit or loss, available-for-sale financial for-profit entity. assets and investment properties which are all valued at fair value, (ii) Compliance with InternationalDRAFT Financial Reporting Standards (IFRSs) (ii) the write down of any Asset on the basis of Impairment (if warranted) and Because AASBs are sector neutral, some standards either: (iii) certain classes of Infrastructure, property, plant & equipment that are accounted for at fair (a) have local Australian content and valuation. prescription that is specific to the Not-For- Profit sector (including Local Government) The accrual basis of accounting has also been which are not in compliance with IFRS’s, or applied in their preparation.

(b) specifically exclude application by Not for (vi) Changes in Accounting Policies Profit entities. Council’s accounting policies have been consistently Accordingly in preparing these financial statements applied to all the years presented, unless otherwise and accompanying notes, Council has been unable stated. to comply fully with International Accounting Standards, but has complied fully with Australian Accounting Standards.

99 There have also been no changes in accounting (b) Revenue recognition policies when compared with previous financial statements unless otherwise stated [refer Note 20(d)]. Council recognises revenue when the amount of revenue can be reliably measured, it is probable that (vii) Critical Accounting Estimates future economic benefits will flow to the entity and specific criteria have been met for each of the The preparation of financial statements requires the Council’s activities as described below. use of certain critical accounting estimates (in conformity with AASBs). Council bases any estimates on historical results, taking into consideration the type of customer, the Accordingly this requires management to exercise its type of transaction and the specifics of each judgement in the process of applying the Council's arrangement. accounting policies. Revenue is measured at the fair value of the consideration received or receivable. Estimates and judgements are continually evaluated and are based on historical experience and other Revenue is measured on major income categories as factors, including expectations of future events that follows: may have a financial impact on the entity and that are believed to be reasonable under the Rates, Annual Charges, Grants and Contributions circumstances. Rates, annual charges, grants and contributions Critical accounting estimates and assumptions (including developer contributions) are recognised as revenues when the Council obtains control over the Council makes estimates and assumptions assets comprising these receipts. concerning the future. Control over assets acquired from rates and annual The resulting accounting estimates will, by definition, charges is obtained at the commencement of the seldom equal the related actual results. rating year as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of The estimates and assumptions that have a the rates. significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within A provision for the impairment on rates receivables the next financial year are set out below. has not been established as unpaid rates represent a charge against the rateable property that will be (i) Estimated fair values of investmentDRAFT properties recovered when the property is next sold.

(ii) Estimated fair values of infrastructure, property, Control over granted assets is normally obtained plant and equipment. upon their receipt (or acquittal) or upon earlier notification that a grant has been secured, and is (iii) Estimated tip remediation provisions. valued at their fair value at the date of transfer.

Critical judgements in applying the entity's Revenue from Contributions is recognised when the accounting policies Council either obtains control of the contribution or the right to receive it, (i) it is probable that the (i) Impairment of Receivables - Council has made economic benefits comprising the contribution will a significant judgement about the impairment of flow to the Council and (ii) the amount of the a number of its receivables in Note 7. contribution can be measured reliably.

(ii) Projected Section 94 Commitments - Council Where grants or contributions recognised as has used significant judgement in determining revenues during the financial year were obtained on future Section 94 income and expenditure in condition that they be expended in a particular Note 17. manner or used over a particular period and those conditions were undischarged at balance date, the

100 unused grant or contribution is disclosed in Note Interest and Rents 3(g). Rents are recognised as revenue on a proportional Note 3(g) also discloses the amount of unused grant basis when the payment is due, the value of the or contribution from prior years that was expended payment is notified, or the payment is received, on Council’s operations during the current year. whichever first occurs. Interest Income from Cash & Investments is The Council has obligations to provide facilities from accounted for using the Effective Interest method in contribution revenues levied on developers under accordance with AASB 139. the provisions of S94 of the EPA Act 1979.

Whilst Council generally incorporates these amounts (c) Principles of Consolidation as part of a Development Consents Order, such developer contributions are only recognised as These financial statements incorporate (i) the assets income upon their physical receipt by Council, due to and liabilities of Council and any Entities (or the possibility that individual Development Consents operations) that it controls (as at 30 June 2013) and may not be acted upon by the applicant and (ii) all the related operating results (for the financial accordingly would not be payable to Council. year ended the 30th June 2013).

Developer contributions may only be expended for The financial statements also include Council’s share the purposes for which the contributions were of the assets, liabilities, income and expenses of any required but the Council may apply contributions Jointly Controlled Operations under the according to the priorities established in work appropriate headings. schedules. In the process of reporting on Council’s activities as a A detailed Note relating to developer contributions single unit, all inter-entity year end balances and can be found at Note 17. reporting period transactions have been eliminated in full between Council and its controlled entities. User Charges, Fees and Other Income (i) The Consolidated Fund User charges, fees and other income (including parking fees and fines) are recognised as revenue In accordance with the provisions of Section 409(1) when the service has been provided, the payment is of the LGA 1993, all money and property received by received, or when the penalty has been applied, Council is held in the Council’s Consolidated Fund whichever first occurs. DRAFTunless it is required to be held in the Council’s Trust Fund. A provision for the impairment of these receivables is recognised when collection in full is no longer The Consolidated Fund and other entities through probable. which the Council controls resources to carry on its functions have been included in the financial A liability is recognised in respect of revenue that is statements forming part of this report. reciprocal in nature to the extent that the requisite service has not been provided as at balance date. The following entities have been included as part of the Consolidated Fund: Sale of Infrastructure, Property, Plant and Equipment . General Purpose Operations

The profit or loss on sale of an asset is determined (ii) The Trust Fund when control of the asset has irrevocably passed to the buyer. In accordance with the provisions of Section 411 of the Local Government Act 1993 (as amended), a separate and distinct Trust Fund is maintained to account for all money and property received by the

101 Council in trust which must be applied only for the Finance Leases purposes of or in accordance with the trusts relating to those monies. Leases of property, plant and equipment where the Council has substantially all the risks and rewards of Trust monies and property subject to Council’s ownership are classified as finance leases. control have been included in these statements. Finance leases are capitalised at the lease’s Trust monies and property held by Council but not inception at the lower of the fair value of the leased subject to the control of Council, have been property and the present value of the minimum lease excluded from these statements. payments.

A separate statement of monies held in the Trust The corresponding rental obligations, net of finance Fund is available for inspection at the Council office charges, are included in borrowings. by any person free of charge. Each lease payment is allocated between the liability (iii) Joint Ventures outstanding and the recognition of a finance charge.

Council has no interest in any Joint Venture Entities, The interest element of the finance charge is costed Assets or Operations. to the income statement over the lease period so as to produce a constant periodic rate of interest on the (iv) Associated Entities remaining balance of the liability for each period.

Where Council has the power to participate in the Property, plant and equipment acquired under financial and operating decisions (of another entity), finance leases is depreciated over the shorter of ie. where Council is deemed to have “significant each leased asset’s useful life and the lease term. influence” over the other entities operations but neither controls nor jointly controls the entity, then Operating Leases Council accounts for such interests using the equity method of accounting – in a similar fashion to Joint Leases in which a significant portion of the risks and Venture Entities & Partnerships. rewards of ownership are retained by the lessor are classified as operating leases. Such entities are usually termed Associates. Payments made under operating leases (net of any (v) County Councils incentives received from the lessor) are charged to DRAFTthe income statement on a straight-line basis over Council is not a member of any County Councils. the period of the lease.

(vi) Additional Information Lease income from operating leases is recognised in income on a straight-line basis over the lease term. Note 19 provides more information in relation to Joint Venture Entities, Associated Entities and Joint Venture Operations where applicable. (e) Cash and Cash Equivalents

Cash and cash equivalents includes; (d) Leases . cash on hand, All Leases entered into by Council are reviewed and classified on inception date as either a Finance . deposits held at call with financial institutions, Lease or an Operating Lease. . other short-term, highly liquid investments with that original maturities of three months or less are readily convertible to known amounts of cash

and which are subject to an insignificant risk of

changes in value, and 102 . bank overdrafts. They arise when the Council provides money, goods or services directly to a debtor with no intention (or in Bank overdrafts are shown within borrowings in some cases ability) of selling the resulting receivable. current liabilities on the balance sheet but are incorporated into Cash & Cash Equivalents for They are included in current assets, except for those presentation of the Cash Flow Statement. with maturities greater than 12 months after the balance sheet date which are classified as non- current assets. (f) Investments and Other Financial Assets (iii) Held-to-maturity investments Council (in accordance with AASB 139) classifies each of its investments into one of the following Held-to-maturity investments are non-derivative categories for measurement purposes: financial assets with fixed or determinable payments and fixed maturities that the Council’s management . financial assets at fair value through profit or has the positive intention and ability to hold to loss, maturity.

. loans and receivables, In contrast to the “Loans & Receivables” classification, these investments are generally . held-to-maturity investments, and quoted in an active market.

. available-for-sale financial assets. Held-to-maturity financial assets are included in non- current assets, except for those with maturities less Each classification depends on the purpose/intention than 12 months from the reporting date, which are for which the investment was acquired & at the time classified as current assets. it was acquired. (iv) Available-for-sale financial assets Management determines each Investment classification at the time of initial recognition and re- Available-for-sale financial assets are non-derivatives evaluates this designation at each reporting date. that are either designated in this category or not classified in any of the other categories. (i) Financial assets at fair value through profit or loss Investments must be designated as available-for-sale if they do not have fixed maturities and fixed or Financial assets at fair value throughDRAFT profit or loss determinable payments and management intends to include financial assets that are “held for trading”. hold them for the medium to long term.

A financial asset is classified in the “held for trading” Accordingly, this classification principally comprises category if it is acquired principally for the purpose of marketable equity securities, but can include all types selling in the short term. of financial assets that could otherwise be classified in one of the other investment categories. Assets in this category are primarily classified as current assets as they are primarily held for trading They are generally included in non-current assets &/or are expected to be realised within 12 months of unless management intends to dispose of the the balance sheet date. investment within 12 months of the balance sheet date or the term to maturity from the reporting date is (ii) Loans and receivables less than 12 months.

Loans and receivables are non derivative financial Financial Assets – Reclassification assets with fixed or determinable payments that are not quoted in an active market. Council may choose to reclassify a non-derivative trading financial asset out of the held-for-trading

103 category if the financial asset is no longer held for (ii) Subsequent Measurement the purpose of selling it in the near term. Available-for-sale financial assets and financial Financial assets other than loans and receivables assets at fair value through profit and loss are are permitted to be reclassified out of the held-for- subsequently carried at fair value. trading category only in rare circumstances arising from a single event that is unusual and highly Loans and receivables and held-to-maturity unlikely to recur in the near term. investments are carried at amortised cost using the effective interest method. Council may also choose to reclassify financial assets that would meet the definition of loans and Realised and unrealised gains and losses arising receivables out of the held-for-trading or available- from changes in the fair value of the financial assets for-sale categories if it has the intention and ability to classified as “fair value through profit or loss” hold these financial assets for the foreseeable future category are included in the income statement in the or until maturity at the date of reclassification. period in which they arise.

Reclassifications are made at fair value as of the Unrealised gains and losses arising from changes in reclassification date. Fair value becomes the new the fair value of non monetary securities classified as cost or amortised cost as applicable, and no "available-for-sale" are recognised in equity in the reversals of fair value gains or losses recorded available-for-sale investments revaluation reserve. before reclassification date are subsequently made. When securities classified as "available-for-sale" Effective interest rates for financial assets are sold or impaired, the accumulated fair value reclassified to loans and receivables and held-to- adjustments are included in the income statement as maturity categories are determined at the gains and losses from investment securities. reclassification date. Further increases in estimates of cash flows adjust effective interest rates Impairment prospectively. Council assesses at each balance date whether General Accounting & Measurement of Financial there is objective evidence that a financial asset or Instruments: group of financial assets is impaired.

(i) Initial Recognition A financial asset or a group of financial assets is impaired and impairment losses are incurred only if Investments are initially recognisedDRAFT (and measured) there is objective evidence of impairment as a result at fair value, plus in the case of investments not at of one or more events that occurred after the initial “fair value through profit or loss”, directly attributable recognition of the asset (a ‘loss event’) and that loss transactions costs event (or events) has an impact on the estimated future cash flows of the financial asset or group of Purchases and sales of investments are recognised financial assets that can be reliably estimated. on trade-date - the date on which the Council commits to purchase or sell the asset. In the case of equity securities classified as available-for-sale, a significant or prolonged decline Financial assets are derecognised when the rights to in the fair value of a security below its cost is receive cash flows from the financial assets have considered in determining whether the security is expired or have been transferred and the Council impaired. has transferred substantially all the risks and rewards of ownership. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and

104 loss - is removed from equity and recognised in the will be disposed of when most financially income statement. advantageous to Council.

Impairment losses recognised in the income statement on equity instruments are not reversed (g) Fair value estimation through the income statement. The fair value of financial assets and financial If there is evidence of impairment for any of liabilities must be estimated for recognition and Council’s financial assets carried at amortised cost measurement or for disclosure purposes. (eg. loans and receivables), the amount of the loss is measured as the difference between the asset’s The fair value of financial instruments traded in active carrying amount and the present value of estimated markets is based on quoted market prices at the future cash flows (excluding future credit losses that balance sheet date. have not been incurred) discounted at the financial asset’s original effective interest rate. The fair value of financial instruments that are not traded in an active market is determined using The carrying amount of the asset is reduced and the valuation techniques. amount of the loss is recognised in profit or loss. If a loan or held-to-maturity investment has a variable Council uses a variety of methods and makes interest rate, the discount rate for measuring any assumptions that are based on market conditions impairment loss is the current effective interest rate existing at each balance date. determined under the contract. Quoted market prices or dealer quotes for similar As a practical expedient, the group may measure instruments are used for long-term debt instruments impairment on the basis of an instrument’s fair value held. using an observable market price. If the market for a financial asset is not active (and (iii) Types of Investments for unlisted securities), the Council establishes fair value by using valuation techniques. Council has an approved Investment Policy in order to undertake its investment of money in accordance These include reference to the fair values of recent with (and to comply with) Section 625 of the Local arm’s length transactions, involving the same Government Act and S212 of the LG (General) instruments or other instruments that are Regulation 2005. substantially the same, discounted cash flow DRAFTanalysis, and option pricing models refined to reflect Investments are placed and managed in accordance the issuer’s specific circumstances. with the Policy and having particular regard to authorised investments prescribed under the The nominal value less estimated credit adjustments Ministerial Local Government Investment Order. of trade receivables and payables are assumed to approximate their fair values. Council maintains its investment Policy in compliance with the Act and ensures that it or its The fair value of financial liabilities for disclosure representatives exercise care, diligence and skill that purposes is estimated by discounting the future a prudent person would exercise in investing Council contractual cash flows at the current market interest funds. rate that is available to the Council for similar financial instruments. Council amended its policy following revisions to the Ministerial Local Government Investment Order arising from the Cole Inquiry recommendations. (h) Receivables Certain investments that Council holds are no longer prescribed (eg. managed funds, CDOs, and equity Receivables are initially recognised at fair value and linked notes), however they have been retained subsequently measured at amortised cost, less any under grandfathering provisions of the Order. These provision for impairment. 105 Receivables (excluding Rates & Annual Charges) costs of completion and the estimated costs are generally due for settlement no more than 30 necessary to make the sale. days from the date of recognition. Inventories held in respect of non-business The collectibility of receivables is reviewed on an undertakings have been valued at cost subject to ongoing basis. Debts which are known to be adjustment for loss of service potential. uncollectible are written off in accordance with Council’s policy. Land Held for Resale/Capitalisation of Borrowing Costs A provision for impairment (ie. an allowance account) relating to receivables is established when Land held for resale is stated at the lower of cost and there is objective evidence that the Council will not net realisable value. be able to collect all amounts due according to the original terms of each receivable. Cost is assigned by specific identification and includes the cost of acquisition, and development The amount of the provision is the difference and borrowing costs during development. between the asset’s carrying amount and the present value of estimated future cash flows, When development is completed borrowing costs discounted at the effective interest rate. and other holding charges are expensed as incurred.

Impairment losses are recognised in the Income Borrowing costs included in the cost of land held for Statement within other expenses. resale are those costs that would have been avoided if the expenditure on the acquisition and When a receivable for which an impairment development of the land had not been made. allowance had been recognised becomes uncollectible in a subsequent period, it is written off Borrowing costs incurred while active development is against the allowance account. interrupted for extended periods are recognised as expenses. Subsequent recoveries of amounts previously written off are credited against other expenses in the (j) Infrastructure, Property, Plant and income statement. Equipment (I,PP&E)

Acquisition of assets (i) Inventories DRAFTCouncil’s non current assets are continually revalued Raw Materials and Stores, Work in Progress and (over a 5 year period) in accordance with the fair Finished Goods valuation policy as mandated by the Division of Local Government. Raw materials and stores, work in progress and finished goods in respect of business undertakings At balance date, the following classes of I,PP&E are all stated at the lower of cost and net realisable were stated at their Fair Value; value. - Investment Properties – refer Note 1(p), Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed - Water and Sewerage Networks overhead expenditure, the latter being allocated on (Internal Valuation) the basis of normal operating capacity. - Operational Land (External Valuation) Costs are assigned to individual items of inventory on the basis of weighted average costs. - Buildings – Specialised/Non Specialised Net realisable value is the estimated selling price in (External Valuation) the ordinary course of business less the estimated - Plant and Equipment (as approximated by depreciated historical cost) 106 - Roads Assets incl. roads, bridges & footpaths Asset Revaluations (including Indexation) (Internal Valuation) In accounting for Asset Revaluations relating to - Drainage Assets (Internal Valuation) Infrastructure, Property, Plant & Equipment:

- Bulk Earthworks (Internal Valuation) . Increases in the combined carrying amounts of asset classes arising on revaluation are credited - Community Land (Internal Valuation) to the asset revaluation reserve.

- Land Improvements . (as approximated by depreciated historical cost) To the extent that a net asset class increase reverses a decrease previously recognised via - Other Structures the profit or loss, then increase is first recognised (as approximated by depreciated historical cost) in profit or loss.

- Other Assets . Net decreases that reverse previous increases of (as approximated by depreciated historical cost) the same asset class are first charged against revaluation reserves directly in equity to the Initial Recognition extent of the remaining reserve attributable to the asset, with all other decreases charged to the On initial recognition, an assets cost is measured at Income statement. its fair value, plus all expenditure that is directly attributable to the acquisition. Water and sewerage network assets are indexed annually between full revaluations in accordance with Where settlement of any part of an asset’s cash the latest indices provided in the NSW Office of consideration is deferred, the amounts payable in Water - Rates Reference Manual. the future are discounted to their present value as at the date of recognition (ie. date of exchange) of the For all other assets, Council assesses at each asset to arrive at fair value. reporting date whether there is any indication that a revalued asset’s carrying amount may differ The discount rate used is the Council’s incremental materially from that which would be determined if the borrowing rate, being the rate at which a similar asset were revalued at the reporting date. borrowing could be obtained from an independent financier under comparable terms and conditions. If any such indication exists, Council determines the asset’s fair value and revalues the asset to that Where infrastructure, property, plantDRAFT and equipment amount. assets are acquired for no cost or for an amount other than cost, the assets are recognised in the Full revaluations are undertaken for all assets on a 5 financial statements at their fair value at acquisition year cycle. date - being the amount that the asset could have been exchanged between knowledgeable willing Capitalisation Thresholds parties in an arm’s length transaction. Items of infrastructure, property, plant and equipment Subsequent costs are not capitalised unless their cost of acquisition exceeds the following; Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, Land as appropriate, only when it is probable that future - council land 100% Capitalised economic benefits associated with the item will flow - open space 100% Capitalised to Council and the cost of the item can be measured - land under roads (purchases after 30/6/08) 100% Capitalised reliably.

All other repairs and maintenance are charged to the Plant & Equipment income statement during the financial period in Office Furniture > $2,000 which they are incurred. Office Equipment > $2,000 Other Plant &Equipment > $2,000 107 Buildings & Land Improvements - Sealed Roads : Structure 50 years Park Furniture & Equipment > $20,000 - Unsealed roads 20 years - Bridge : Concrete 100 years Building - Bridge : Other 20 to 75 years - construction/extensions 100% Capitalised - renovations > $50,000 - Road Pavements 60 years - Kerb, Gutter & Paths 40 years Other Structures > $20,000

Other Infrastructure Assets Stormwater Assets - Bulk earthworks Infinite Drains & Culverts > $20,000 Other > $20,000 All asset residual values and useful lives are reviewed and adjusted (where appropriate), at each Transport Assets Road construction & reconstruction > $20,000 balance sheet date. Reseal/Re-sheet & major repairs: > $20,000 Bridge construction & reconstruction > $20,000 An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated Depreciation recoverable amount – refer Note 1(s) on Asset Impairment. Depreciation on Council's infrastructure, property, plant and equipment assets is calculated using the Disposal and De-recognition straight line method in order to allocate an assets cost (net of residual values) over its estimated useful An item of property, plant and equipment is life. derecognised upon disposal or when no further future economic benefits are expected from its use or Land is not depreciated. disposal.

Estimated useful lives for Council's I,PP&E include: Any gain or loss arising on derecognition of the asset (calculated as the difference between the net Plant & Equipment disposal proceeds and the carrying amount of the - Office Equipment 5 to 10 years asset) is included in Council’s Income Statement in - Office furniture 10 to 20 years the year the asset is derecognised. - Computer Equipment DRAFT4 years - Vehicles & /Road Making equip. 5 to 8 years - Other plant and equipment 5 to 15 years (k) Land

Other Equipment Land (other than Land under Roads) is in - Playground equipment 5 to 15 years accordance with Part 2 of Chapter 6 of the Local - Benches, seats etc 10 to 20 years Government Act (1993) classified as either Operational or Community.

Buildings This classification of Land is disclosed in Note 9(a). - Buildings : Masonry 50 to 100 years - Buildings : Other 20 to 40 years (l) Land under roads

Stormwater Drainage Land under roads is land under roadways and road - Drains 80 to 100 years reserves including land under footpaths, nature strips - Culverts 50 to 80 years and median strips.

Transportation Assets Council has elected not to recognise land under - Sealed Roads : Surface 20 years roads acquired before 1 July 2008 in accordance 108 with AASB 1051. Land under roads acquired after 1 (o) Rural Fire Service assets July 2008 is recognised in accordance with AASB 116 – Property, Plant and Equipment. Under section 119 of the Rural Fires Act 1997, “all fire fighting equipment purchased or constructed wholly or from money to the credit of the Fund is to (m) Intangible Assets be vested in the council of the area for or on behalf of which the fire fighting equipment has been IT Development and Software purchased or constructed”.

Costs incurred in developing products or systems At present, the accounting for such fire fighting and costs incurred in acquiring software and equipment is not treated in a consistent manner licenses that will contribute to future period financial across all Councils. benefits through revenue generation and/or cost reduction are capitalised to software and systems. Until such time as discussions on this matter have Costs capitalised include external direct costs of concluded and the legislation changed, Council will materials and service, direct payroll and payroll continue to account for these assets as it has been related costs of employees’ time spent on the doing in previous years, which is to incorporate the project. assets, their values and depreciation charges within these financial statements Amortisation is calculated on a straight line bases over periods generally ranging from 3 to 5 years. (p) Investment property IT development costs include only those costs directly attributable to the development phase and Investment property comprises land &/or buildings are only recognised following completion of technical that are principally held for long-term rental yields, feasibility and where Council has an intention and capital gains or both that is not occupied by Council. ability to use the asset. Investment property is carried at fair value, representing an open-market value determined (n) Crown Reserves annually by external valuers.

Crown Reserves under Council’s care and control Annual changes in the fair value of Investment are recognised as assets of the Council. Properties are recorded in the Income Statement as part of “Other Income”. While ownership of the reserves DRAFT remains with the

Crown, Council retains operational control of the Full revaluations are carried out every three years reserves and is responsible for their maintenance with an appropriate index utilised each year in and use in accordance with the specific purposes to between the full revaluations. which the reserves are dedicated. The last full revaluation for Council’s Investment Improvements on Crown Reserves are also Properties was dated 30 June 2013. recorded as assets, while maintenance costs incurred by Council and revenues relating the reserves are recognised within Council’s Income (q) Provisions for close down, restoration Statement. and for environmental clean up costs –

including Tips and Quarries Representations are currently being sought across

State and Local Government to develop a consistent Close down, Restoration and Remediation costs accounting treatment for Crown Reserves across include the dismantling and demolition of both tiers of government. infrastructure, the removal of residual materials and

the remediation of disturbed areas.

109 Estimated close down and restoration costs are balance sheet date and the cost is charged to the provided for in the accounting period when the income statement. obligation arising from the related disturbance occurs, whether this occurs during the development Provision is made for the estimated present value of or during the operation phase, based on the net the costs of environmental clean up obligations present value of estimated future costs. outstanding at the balance sheet date. These costs are charged to the income statement. Provisions for close down and restoration costs do not include any additional obligations which are Movements in the environmental clean up provisions expected to arise from future disturbance. are presented as an operating cost, except for the unwind of the discount which is shown as a Costs are estimated on the basis of a closure plan. borrowing cost.

The cost estimates are calculated annually during Remediation procedures generally commence soon the life of the operation to reflect known after the time the damage, remediation process and developments, eg updated cost estimates and estimated remediation costs become known, but may revisions to the estimated lives of operations, and continue for many years depending on the nature of are subject to formal review at regular intervals. the disturbance and the remediation techniques.

Close down, Restoration and Remediation costs are As noted above, the ultimate cost of environmental a normal consequence of tip and quarry operations, remediation is uncertain and cost estimates can vary and the majority of close down and restoration in response to many factors including changes to the expenditure is incurred at the end of the life of the relevant legal requirements, the emergence of new operations. restoration techniques or experience at other locations. Although the ultimate cost to be incurred is uncertain, Council estimates the respective costs The expected timing of expenditure can also change, based on feasibility and engineering studies using for example in response to changes in quarry current restoration standards and techniques. reserves or production rates.

The amortisation or ‘unwinding’ of the discount As a result there could be significant adjustments to applied in establishing the net present value of the provision for close down and restoration and provisions is charged to the income statement in environmental clean up, which would affect future each accounting period. financial results. DRAFT This amortisation of the discount is disclosed as a Specific Information relating to Council's provisions borrowing cost in Note 4(b). relating to Close down, Restoration and Remediation costs can be found at Note 26. Other movements in the provisions for Close down, Restoration and Remediation costs including those resulting from new disturbance, updated cost (r) Non-Current Assets (or Disposal Groups) estimates, changes to the estimated lives of “Held for Sale” & Discontinued operations and revisions to discount rates are Operations capitalised within property, plant and equipment. Non-current assets (or disposal groups) are These costs are then depreciated over the lives of classified as held for sale and stated at the lower of the assets to which they relate. either (i) their carrying amount and (ii) fair value less costs to sell, if their carrying amount will be Where rehabilitation is conducted systematically recovered principally through a sale transaction over the life of the operation, rather than at the time rather than through continuing use. of closure, provision is made for the estimated outstanding continuous rehabilitation work at each The exception to this is plant and motor vehicles which are turned over on a regular basis. Plant and 110 motor vehicles are retained in Non Current Assets used as value in use, otherwise value in use is under the classification of Infrastructure, Property, estimated by using a discounted cash flow model. Plant and Equipment - unless the assets are to be traded in after 30 June and the replacement assets Non-financial assets (other than goodwill) that were already purchased and accounted for as at 30 suffered a prior period impairment are reviewed for June. possible reversal of the impairment at each reporting date. For any assets or disposal groups classified as Non- Current Assets “held for sale”, an impairment loss is Goodwill & other Intangible Assets that have an recognised at any time when the assets carrying indefinite useful life and are not subject to value is greater than its fair value less costs to sell. amortisation are tested annually for impairment.

Non-current assets “held for sale” are not depreciated or amortised while they are classified as (t) Payables “held for sale”. These amounts represent liabilities and include Non-current assets classified as “held for sale” are goods and services provided to the Council prior to presented separately from the other assets in the the end of financial year which are unpaid. balance sheet. The amounts for goods and services are unsecured A Discontinued Operation is a component of the and are usually paid within 30 days of recognition. entity that has been disposed of or is classified as “held for sale” and that represents a separate major line of business or geographical area of operations, (u) Borrowings is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a Borrowings are initially recognised at fair value, net subsidiary acquired exclusively with a view to resale. of transaction costs incurred.

The results of discontinued operations are presented Borrowings are subsequently measured at amortised separately on the face of the income statement. cost.

Amortisation results in any difference between the (s) Impairment of assets proceeds (net of transaction costs) and the redemption amount being recognised in the Income All Council's I,PP&E is subjectDRAFT to an annual Statement over the period of the borrowings using assessment of impairment. the effective interest method.

Assets that are subject to amortisation are reviewed Borrowings are removed from the balance sheet for impairment whenever events or changes in when the obligation specified in the contract is circumstances indicate that the carrying amount may discharged, cancelled or expired. not be recoverable. Borrowings are classified as current liabilities unless An impairment loss is recognised for the amount by the Council has an unconditional right to defer which the asset’s carrying amount exceeds its settlement of the liability for at least 12 months after recoverable amount. the balance sheet date.

The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. (v) Borrowing costs

Where an asset is not held principally for cash Borrowing costs are expensed. generating purposes (for example Infrastructure Assets) and would be replaced if the Council was Borrowing costs incurred for the construction of any deprived of it then depreciated replacement cost is qualifying asset are capitalised during the period of 111 time that is required to complete and prepare the Leave liabilities are recognised in the provision for asset for its intended use or sale. employee benefits in respect of employees’ services up to the reporting date with other short term employee benefit obligations disclosed under (w) Provisions payables..

Provisions for legal claims, service warranties and These provisions are measured at the amounts other like liabilities are recognised when: expected to be paid when the liabilities are settled.

. Council has a present legal or constructive Liabilities for non vesting sick leave are recognised at obligation as a result of past events; the time when the leave is taken and measured at the rates paid or payable, and accordingly no Liability . it is more likely than not that an outflow of has been recognised in these reports. resources will be required to settle the obligation; and Wages & salaries, annual leave and vesting sick leave are all classified as Current Liabilities. . the amount has been reliably estimated. (ii) Other Long Term Obligations Provisions are not recognised for future operating losses. The liability for all long service and annual leave in respect of services provided by employees up to the Where there are a number of similar obligations, the reporting date (which is not expected to be settled likelihood that an outflow will be required in within the 12 months after the reporting period) are settlement is determined by considering the class of recognised in the provision for employee benefits. obligations as a whole. These liabilities are measured at the present value of A provision is recognised even if the likelihood of an the expected future payments to be made using the outflow with respect to any one item included in the projected unit credit method. same class of obligations may be small. Consideration is given to expected future wage and Provisions are measured at the present value of salary levels, experience of employee departures management’s best estimate of the expenditure and periods of service. required to settle the present obligation at the reporting date. Expected future payments are then discounted using DRAFTmarket yields at the reporting date based on national The discount rate used to determine the present government bonds with terms to maturity and value reflects current market assessments of the currency that match as closely as possible the time value of money and the risks specific to the estimated future cash outflows. liability. Due to the nature of when and how Long Service The increase in the provision due to the passage of Leave can be taken, all Long Service Leave for time is recognised as interest expense. employees with 4 or more years of service has been classified as Current, as it has been deemed that Council does not have the unconditional right to defer (x) Employee benefits settlement beyond 12 months – even though it is not anticipated that all employees with more than 4 years (i) Short Term Obligations service (as at reporting date) will apply for and take their leave entitlements in the next 12 months. Short term employee benefit obligations include liabilities for wages and salaries (including non- (iii) Retirement benefit obligations monetary benefits), annual leave and vesting sick leave expected to be settled within the 12 months All employees of the Council are entitled to benefits after the reporting period. on retirement, disability or death.

112 Council contributes to various defined benefit plans Effective from 1 July 2013, employers are required to and defined contribution plans on behalf of its contribute additional contributions to assist in employees. extinguishing this deficit.

Defined Benefit Plans The amount of employer contributions to the defined benefit section of the Local Government A liability or asset in respect of defined benefit Superannuation Scheme and recognised as an superannuation plans would ordinarily be recognised expense and disclosed as part of Superannuation in the balance sheet, and measured as the present Expenses at Note 4(a) for the year ending 30 June value of the defined benefit obligation at the 2013. reporting date plus unrecognised actuarial gains (less unrecognised actuarial losses) less the fair The amount of additional contributions included in value of the superannuation fund’s assets at that the total employer contribution advised above is date and any unrecognised past service cost. $620,156.

The present value of the defined benefit obligation is The share of this deficit that can be broadly attributed based on expected future payments which arise to Council is estimated to be in the order of from membership of the fund to the reporting date, $2,883,319 as at 30 June 2013. calculated annually by independent actuaries using the projected unit credit method. Consideration is Council’s share of that deficiency cannot be given to expected future wage and salary levels, accurately calculated as the Scheme is a mutual experience of employee departures and periods of arrangement where assets and liabilities are pooled service. together for all member councils.

However, when this information is not reliably For this reason, no liability for the deficiency has available, Council can account for its obligations to been recognised in these financial statements. defined benefit plans on the same basis as its obligations to defined contribution plans – i.e. as an Council has, however, disclosed a contingent liability expense when they become payable. in Note 18 to reflect the possible obligation that may arise should the Scheme require immediate payment Council is party to an Industry Defined Benefit Plan to correct the deficiency. under the Local Government Superannuation Scheme, named the “Local Government Defined Contribution Plans Superannuation Scheme – Pool B” DRAFTContributions to Defined Contribution Plans are This Scheme has been deemed to be a “multi recognised as an expense as they become payable. employer fund” for the purposes of AASB 119. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the Sufficient information is not available to account for future payments is available. the Scheme as a defined benefit plan (in accordance with AASB 119) because the assets to the scheme (iv) Employee Benefit On-Costs are pooled together for all Councils. Council has recognised at year end the aggregate The last valuation of the Scheme was performed by on-cost liabilities arising from employee benefits, and th Mr Martin Stevenson BSc, FIA, FIAA on 20 in particular those on-cost liabilities that will arise February 2013 and covers the period ended 30 June when payment of current employee benefits is made 2013. in future periods.

However the position is monitored annually and the These amounts include Superannuation and Workers Actuary has estimated that as at 30 June 2013 the Compensation expenses which will be payable upon prior period deficit still exists. the future payment of certain Leave Liabilities accrued as at 30/6/13.

113 (y) Self insurance The net amount of GST recoverable from or payable to the ATO is included as a current asset or current Council does not self insure. liability in the Balance Sheet. Operating cash flows within the Cash Flow Statement are on a gross basis, ie. they are inclusive (z) Allocation between current and of GST where applicable.

non-current assets & liabilities Investing and Financing cash flows are treated on a In the determination of whether an asset or liability is net basis (where recoverable form the ATO), ie. they classified as current or non-current, consideration is are exclusive of GST. Instead, the GST component given to the time when each asset or liability is of investing and financing activity cash flows which expected to be settled. are recoverable from or payable to the ATO are classified as operating cash flows. The asset or liability is classified as current if it is expected to be settled within the next 12 months, Commitments and contingencies are disclosed net of being the Council’s operational cycle. the amount of GST recoverable from (or payable to) the ATO.

Exceptions

In the case of liabilities where Council does not have (ab) New accounting standards and UIG the unconditional right to defer settlement beyond 12 interpretations months (such as vested long service leave), the liability is classified as current even if not expected Certain new (or amended) accounting standards and to be settled within the next 12 months. interpretations have been published that are not mandatory for reporting periods ending 30 June In the case of inventories that are “held for trading”, 2013. these are also classified as current even if not expected to be realised in the next 12 months. Council has not adopted any of these standards early.

(aa) Taxes Council’s assessment of the impact of these new standards and interpretations is set out below. The Council is exempt from both Commonwealth Income Tax and Capital Gains Tax. DRAFTApplicable to Local Government with

Council does however have to comply with both implications: Fringe Benefits Tax and Goods and Services Tax (GST). AASB 9 Financial Instruments, associated standards, AASB 2010-7 Amendments to Australian Accounting Standards arising from Goods & Services Tax (GST) AASB 9 and AASB 2012-6 Amendments to

Australian Accounting Standards – Mandatory Income, expenses and assets are all recognised net Effective Date of AASB 9 and transitional of the amount of GST, except where the amount of disclosures (effective from 1 January 2015) GST incurred is not recoverable from the Australian

Tax Office (ATO). AASB 9 Financial Instruments addresses the

classification, measurement and de-recognition of In these circumstances the GST is recognised as financial assets and financial liabilities. part of the cost of acquisition of the asset or as part of the revenue / expense. The standard is not applicable until 1 January 2015

but is available for early adoption. Receivables and payables within the Balance Sheet are stated inclusive of any applicable GST.

114 When adopted, the standard will affect in particular Applicable to Local Government but no Council’s accounting for its available-for-sale implications for Council; financial assets, since AASB 9 only permits the recognition of fair value gains and losses in other AASB 2012-2 Amendments to Australian comprehensive income if they relate to equity Accounting Standards – Disclosures – Offsetting investments that are not held for trading. Financial Assets and Financial Liabilities [AASB 132 & AASB 7] (effective 1 January 2013) Fair value gains and losses on available-for-sale debt investments, for example, will therefore have to This Standard amends the required disclosures in be recognised directly in profit or loss although there AASB 7 to include information that will enable users is currently a proposal by the IASB to introduce a of an entity’s financial statements to evaluate the Fair value through Other Comprehensive Income effect or potential effect of netting arrangements, category for debt instruments. including rights of set-off associated with the entity’s recognised financial assets and recognised financial There will be no impact on Council’s accounting for liabilities, on the entity’s financial position. financial liabilities, as the new requirements only affect the accounting for financial liabilities that are This Standard also amends AASB 132 to refer to the designated at fair value through profit or loss and additional disclosures added to AASB 7 by this Council does not have any such liabilities. Standard.

The de-recognition rules have been transferred from The adoption of this standard will not change the AASB 139 Financial Instruments: Recognition and reported financial position and performance of the Measurement and have not been changed. entity, there are no impact on disclosures as there are no offsetting arrangements currently in place.

AASB 13 Fair Value Measurement and AASB AASB 2012-3 Amendments to Australian Accounting 2011-8 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Standards arising from AASB 13 (effective 1 Financial Liabilities [AASB 132] (effective 1 January January 2013) 2014).

AASB 13 explains how to measure fair value and This Standard adds application guidance to AASB aims to enhance fair value disclosures. 132 to address inconsistencies identified in applying some of the offsetting criteria of AASB 132, including Council has yet to determine which, if any, of its clarifying the meaning of “currently has a legally current measurement techniques willDRAFT have to change enforceable right of set-off” and that some gross as a result of the new guidance. settlement systems may be considered equivalent to net settlement. It is therefore not possible to state the impact, if any, of the new rules on any of the amounts recognised The adoption of this standard will not change the in the financial statements. reported financial position and performance of the entity, there are no impact on disclosures as there However, application of the new standard will impact are no offsetting arrangements currently in place. the type of information disclosed in the notes to the financial statements. Applicable to Local Government but not relevant Council does not intend to adopt the new standard to Council at this stage; before its operative date, which means that it would be first applied in the annual reporting period ending AASB 10 Consolidated Financial Statements, 30 June 2014. AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities, revised AASB 127 Separate Financial Statements and AASB 128 Investments in Associates and Joint Ventures and AASB 2011-7 Amendments to

115 Australian Accounting Standards arising from Parties to a joint operation will account their share of the Consolidation and Joint Arrangements revenues, expenses, assets and liabilities in much Standards (effective 1 January 2013) the same way as under the previous standard.

This suite of five new and amended standards AASB 11 also provides guidance for parties that address the accounting for joint arrangements, participate in joint arrangements but do not share consolidated financial statements and associated joint control. disclosures. Council's investment in the joint venture partnership AASB 10 replaces all of the guidance on control and will be classified as a joint venture under the new consolidation in AASB 127 Consolidated and rules. Separate Financial Statements, and Interpretation 12 Consolidation – Special Purpose Entities. As Council already applies the equity method in accounting for this investment, AASB 11 will not have The core principle that a consolidated entity presents any impact on the amounts recognised in its financial a parent and its subsidiaries as if they are a single statements. economic entity remains unchanged, as do the mechanics of consolidation. However, the standard AASB 12 sets out the required disclosures for entities introduces a single definition of control that applies reporting under the two new standards, AASB 10 and to all entities. AASB 11, and replaces the disclosure requirements currently found in AASB 127 and AASB 128. It focuses on the need to have both power and rights or exposure to variable returns. Application of this standard by Council will not affect any of the amounts recognised in the financial Power is the current ability to direct the activities that statements, but will impact the type of information significantly influence returns. Returns must vary disclosed in relation to Council's investments. and can be positive, negative or both. Amendments to AASB 128 provide clarification that Control exists when the investor can use its power to an entity continues to apply the equity method and affect the amount of its returns. does not remeasure its retained interest as part of ownership changes where a joint venture becomes There is also new guidance on participating and an associate, and vice versa. protective rights and on agent/principal relationships. Council does not expect the new standard to have a The amendments also introduce a “partial disposal” significant impact on its composition.DRAFT concept.

AASB 11 introduces a principles based approach to Council is still assessing the impact of these accounting for joint arrangements. amendments.

The focus is no longer on the legal structure of joint Council does not expect to adopt the new standards arrangements, but rather on how rights and before their operative date. obligations are shared by the parties to the joint arrangement. They would therefore be first applied in the financial statements for the annual reporting period ending 30 Based on the assessment of rights and obligations, June 2014. a joint arrangement will be classified as either a joint operation or a joint venture. Revised AASB 119 Employee Benefits, AASB 2011-10 Amendments to Australian Accounting Joint ventures are accounted for using the equity Standards arising from AASB 119 (September method, and the choice to proportionately 2011) and AASB 2011-11 Amendments to AASB consolidate will no longer be permitted. 119 (September 2011) arising from Reduced Disclosure Requirements (effective 1 January 2013)

116 This revised standard on accounting for employee AASB 134 - provides clarification about segment benefits requires the recognition of all re- reporting. measurements of defined benefit liabilities/assets immediately in other comprehensive income The amendments arising from this standard are not (removal of the so-called 'corridor' method) and the expected to change the reported financial position or calculation of a net interest expense or income by performance of the Council. applying the discount rate to the net defined benefit liability or asset. There are no other standards that are not yet This replaces the expected return on plan assets effective and that are expected to have a material that is currently included in profit or loss. impact on the entity in the current or future reporting periods and on foreseeable future The standard also introduces a number of additional transactions. disclosures for defined benefit liabilities/assets and could affect the timing of the recognition of termination benefits. (ac) Rounding of amounts

The amendments will have to be implemented Unless otherwise indicated, amounts in the financial retrospectively. statements have been rounded off to the nearest thousand dollars. Council does not recognise defined benefit assets and liabilities for the reasons set out in paragraph (x) (iii) and so these changes will not have an impact on (ad) Comparative Figures its reported results. To ensure comparability with the current reporting period’s figures, some comparative period line items Not applicable to Local Government per se; and amounts may have been reclassified or individually reported for the first time within these AASB 2012-5 Amendments to Australian financial statements and/or the notes. Accounting Standards arising from Annual Improvements 2009–2011 Cycle (effective 1 January 2013) (ae) Disclaimer

AASB 1 - this standard clarifies that an entity can Nothing contained within these statements may be apply AASB 1 more than once. An DRAFTentity can elect to taken to be an admission of any liability to any apply AASB 123 from the transition date or an earlier person under any circumstance. date.

AASB 101 - clarifies that a third statement of financial position is required when the opening statement of financial position is materially affected by any adjustments.

AASB 116 - clarifies the classification of servicing equipment.

AASB 132 and Interpretation 2 - clarifies that income tax relating to distributions to holders of an equity instrument and to transaction costs of an equity transaction shall be accounted for in accordance with AASB 112 Income Taxes

117 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 2(a). Council Functions / Activities - Financial Information

$ '000 Income, Expenses and Assets have been directly attributed to the following Functions / Activities. Details of these Functions/Activities are provided in Note 2(b). Grants included in Total Assets held Income from Continuing Expenses from Continuing Operating Result from Income from (Current & Operations Operations Continuing Operations Continuing Non-current) Functions/Activities Operations Original Original Original Budget Actual Actual Budget Actual Actual Budget Actual Actual Actual Actual Actual Actual 2013 2013 2012 2013 2013 2012 2013 2013 2012 2013 2012 2013 2012 Asset Management Services 6,190 10,152 10,524 19,573 19,794 16,708 (13,383) (9,642) (6,184) - 2,058 626,730 624,391 Beach Services, Maintenance & Safety 430 641 469 3,221 3,449 2,945 (2,791) (2,808) (2,476) - 5 83 33 Cemetery Services 1,244 1,331 1,284 1,170 1,151 1,047 74 180 237 3 - 36,334 24,041 Child Care Services 5,611 5,558 4,378 5,671 5,676 5,016 (60) (118) (638) 115 2,072 6,908 2,229 Community Services 739 863 763 1,957 1,944 1,869 (1,218) (1,081) (1,106) - 609 38,269 27,512 Corporate Support Services 86,153 50,825 37,131 9,089 8,906 8,254 77,064 41,919 28,877 - 2,435 27,709 16,024 Cultural Services 426 375 441 3,001 2,960 3,045 (2,575) (2,585) (2,604) 1,169 39 7 - Customer Services & Communication 17 11 17 1,100 1,109 1,070 (1,083) (1,098) (1,053) - - 3 - Development, Building & Health Services 3,718 8,435 4,618 7,872 8,690 8,273 (4,154) (255) (3,655) - 127 6,573 9,051 Emergency Management Services 68 111 35 159 134 135 (91) (23) (100) 69 - - 836 Environmental Services 54 154 171 1,527 1,320 1,284 (1,473) (1,166) (1,113) 138 107 438 133 Governance, Integrated Planning & Community Engagement 66 89 61 5,153 4,908 4,283 (5,087) (4,819) (4,222) - - 15 - Library Services 278 262 264 4,527 4,141 4,351 (4,249) (3,879) (4,087) 2,553 175 31,404 17,541 Parking Services 23,549 24,573 22,166 11,314 10,649 10,180 12,235 13,924 11,986 177 - 10,928 9,812 Parks Services & Maintenance 177 166 DRAFT995 5,768 6,064 6,712 (5,591) (5,898) (5,717) - 828 106,547 92,855 Place Management 1,177 947 1,124 1,396 687 1,231 (219) 260 (107) - 24 118 - Recreation Services 55 47 47 727 799 836 (672) (752) (789) - - 130 -

Regulatory Services 1,522 1,541 1,671 1,196 1,631 1,473 326 (90) 198 683 - 3 - 2013 Statements Financial Social & Affordable Housing 780 828 742 848 960 876 (68) (132) (134) 1,909 - 22,002 17,198 Traffic & Transport Services - 156 - 17 4 27 (17) 152 (27) - - 79 - Urban Open Space Maintenance & Accessibility 130 260 2 3,995 3,603 5,173 (3,865) (3,343) (5,171) - - 10 28 Waste Services 15,293 15,800 13,799 17,074 16,543 15,588 (1,781) (743) (1,789) 156 118 9,748 11,448 page 29 page Operating Result from Continuing Operations 147,677 123,125 100,702 106,355 105,122 100,376 41,322 18,003 326 6,972 8,597 924,038 853,132 1. Includes: Rates & Annual Charges (incl. Ex-Gratia), Untied General Purpose Grants & Unrestricted Interest & Investment Income. 118 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 2(b). Council Functions / Activities - Component Descriptions

Details relating to the Council's functions / activities as reported in Note 2(a) are as follows:

Asset Management Services This service includes planning for renewal of assets, financial management and project delivery of works on vital infrastructure. The Service contributes to every aspect of Council's operations, to our ability to deliver our services cost effectively and to the community's social, environmental and economic well being.

Beach Services, Maintenance & Safety This service includes beach safety, beach maintenance and cleaning and also supports voluntary surf lifesaving clubs.

Cemetery Services This service currently includes interment of ashes and remains at two sites, Waverley and South Head. Waverley Cemetery is a fully operational Cemetery with sales in excess of $1million per annum.

Childcare Services Providing quality, affordable long day care and family day care for children aged 0-5 as well as parenting programs and counselling for families.

Community Services Council provides a range of community services within Waverley in addition to supporting a broad range of community organisations. Our services and support for other groups and agencies ensure that the community has access to relevant, accessible and affordable facilities, spaces, programs and activities.

Corporate Support Services This service includes a range of professional support services for financial planning and management, workforce planning, organisational development and performance management, business systems improvement, risk management and insurance, procurement, telecommunications and IT and special projects to support the Executive in customer serviceDRAFT and organisational review. Cultural Services Council provides and supports a range of activities that celebrate and strengthen an appreciation or our cultural heritage and diversity.

Customer Services & Communication This area is responsible for ensuring that customer service is provided in a professional, friendly and timely way, and that our community is informed about Council's plans, initiatives, services and activities.

Development, Building & Health Services This service involves preparing new Local Environmental Plans, Development Control Plans and Planning Strategies relating to future land use planning and heritage conservation.

It also assesses and determines development applications in accordance with the EP&A Act and provides Council with a digital mapping service.

119 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 2(b). Council Functions / Activities - Component Descriptions (continued)

Details relating to the Council's functions / activities as reported in Note 2(a) are as follows:

Emergency Management Services Waverley and Woollahra have a joint relationship in funding and supporting the local SES unit and it is a requirement under the NSW State Emergency Act.

Environmental Services This is a growing service area covering all aspects of the aquatic, biological and air enviroments. Its sub- services are specifically geared to meet the requirements of our Environmental Action Plan 2 (EAP2) adopted in February 2010. EAP2 is a key element of Waverley's resourcing strategy for Waverley Togethor 2.

Governance, Integrated Planning & Community Engagement This service is designed to ensure we can engage with our community in an open and responsive way, discussing and making decisions with them about their future on the basis of sound and balanced judgement and policies. It also ensures that we can be properly held to account for planning decisions and for the efficiency and effectiveness of the services we deliver.

Library Services The Library offers information, recreation and entertainment as well as opportunities for people to train, learn or simply interact with neighbours and friends. The Library is a major education and community capacity building resource.

Parking Services This service provides substantial community safety and amenity by ensuring that our very limited supply of public parking opportunities (limited relative to demand) is shared fairly by all. This service is more effectively delivered if its implemented in close conjunction with Environmental Services and Traffic and Transport Services.

Parks Services & Maintenance This service maintains and cares for Council's 99 parks. The park and reserves are divided into a numberof categories including regional parks,DRAFT coastal reserves, small parks, pocket parks, linkages and remnant vegetation.

Place Management Bondi Beach and Bondi Junction are important places for Waverley residents and for the wider Sydney community. They contain a world famous beach and one of Sydney's most vibrant retail precincts and play a significant role in delivering recreational and commercial experiences to the region. A Place Management approach has been adopted to allow Council to give special focus to these areas, as well as ensuring that our smaller retail villages continue thrive.

An ongoing challenge for the Place Managers is to find the right balance between the needs of visitors, residents and the business sector.

Recreation Services This includes all aspects of sport and active leisure, from broad LGA-wide planning, through to the detailed design and construction of specific facilities. A newly emerging area is sports facilities management, programming and maintenance.

120 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 2(b). Council Functions / Activities - Component Descriptions (continued)

Details relating to the Council's functions / activities as reported in Note 2(a) are as follows:

Regulatory Services In the summer season there is an increased demand for this service due to the large influx of visitors. Core areas of focus are:

 Monitoring building sites to ensure adequate pollution control is in place  Ensuring companion animals are effectively and responsibly managed and cared for in accordance with the Companion Animals Act and Regulation  Providing education material and information to the public investigating reports of abandoned vehicles and removing them in accordance with Impounding Act  The quantitative volume of noise, time, place and the frequency of the noise

Social & Affordable Housing This service includes creating and managing secure housing for local people on very low incomes in addition to providing medium term accomodation at subsidised rents to those on low-to-middle income levels.

Traffic & Transport Services This service helps ensure that traffic flows as smoothly, efficiently and safely in Waverley as is possible, given the very small amount of road space we have to share, relative to the very high demand of the residents and visitors who use it.

The service also functions to help provide as many alternatives as possible to private car use including planning and design of pedestrian and cycling routes, and negotiation with the community and other levels of government for improved traffic and parking distribution systems such as residential preferred parking schemes.

Urban Open Space Maintenance & Accessibility This service maintains the roads, footpaths, drains, trees and grass along the 123.46 km of local and regional roads within Waverley Council. DRAFT Waste Services This service provides waste and recycling collection services to 28,500 residential properties as well as a commercial collection to businesses within Waverley Council.

121 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 3. Income from Continuing Operations

Actual Actual $ '000 Notes 2013 2012

(a) Rates & Annual Charges

Ordinary Rates Residential 25,039 22,033 Business 9,699 8,334 Total Ordinary Rates 34,738 30,367

Special Rates Nil

Annual Charges (pursuant to s.496, s.496A, s.496B, s.501 & s.611) Domestic Waste Management Services 12,503 11,202 Section 611 Charges 42 39 Total Annual Charges 12,545 11,241

TOTAL RATES & ANNUAL CHARGES 47,283 41,608

Council has used 2009 year valuations provided by the NSW Valuer General in calculating its rates. DRAFT

122 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 3. Income from Continuing Operations (continued)

Actual Actual $ '000 Notes 2013 2012

(b) User Charges & Fees

Specific User Charges (per s.502 - Specific "actual use" charges) Waste Management Services (non-domestic) 2,235 2,010 Total User Charges 2,235 2,010

Other User Charges & Fees

(i) Fees & Charges - Statutory & Regulatory Functions (per s.608) Hoarding/Crane Permits 842 920 Planning & Building Regulation 1,880 1,618 Section 149 Certificates (EPA Act) 233 227 Section 603 Certificates 107 101 Total Fees & Charges - Statutory/Regulatory 3,062 2,866

(ii) Fees & Charges - Other (incl. General User Charges (per s.608) Admission & Service Fees 139 154 Bus Shelter Fees 1,232 1,209 Car Parking Fees 5,765 5,628 Car Parking Meter Income 7,307 6,795 Cemeteries 1,232 1,178 Child Care 2,998 2,301 Leaseback Fees - Council Vehicles 141 141 Park Rents 974 972 Restoration Charges 1,166 627 Road Opening Permits 109 98 Temporary Truck Zone Permit 979 820 Other DRAFT 883 684 Total Fees & Charges - Other 22,925 20,607

TOTAL USER CHARGES & FEES 28,222 25,483

123 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 3. Income from Continuing Operations (continued)

Actual Actual $ '000 Notes 2013 2012

Interest & Dividends - Interest on Overdue Rates & Annual Charges (incl. Special Purpose Rates) 108 104 - Interest earned on Investments (interest & coupon payment income) 2,271 2,581 Fair Value Adjustments - Fair Valuation movements in Investments (at FV or Held for Trading) 268 369 TOTAL INTEREST & INVESTMENT REVENUE 2,647 3,054

Interest Revenue is attributable to: Unrestricted Investments/Financial Assets: Overdue Rates & Annual Charges (General Fund) 108 104 General Council Cash & Investments 2,062 2,390 Restricted Investments/Funds - External: Development Contributions - Section 94 203 124 Domestic Waste Management operations 274 361 Restricted Investments/Funds - Internal: Internally Restricted Assets - 75 Total Interest & Investment Revenue Recognised 2,647 3,054

(d) Other Revenues

Fair Value Adjustments - Investment Properties 14 12,720 2,996 Rental Income - Investment Properties 14 2,210 2,104 Rental Income - Other Council PropertiesDRAFT 3,716 3,390 Ex Gratia Rates 23 20 Fines 103 108 Fines - Parking 11,173 9,404 Legal Fees Recovery - Rates & Charges (Extra Charges) 35 35 Legal Fees Recovery - Other 69 55 Insurance Claim Recoveries 56 127 Recycling Income (non domestic) 247 241 Sale of Abandoned Vehicles 4 14 Sales - General 11 10 Other 507 498 TOTAL OTHER REVENUE 30,874 19,002

124 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 3. Income from Continuing Operations (continued)

2013 2012 2013 2012 $ '000 Operating Operating Capital Capital

(e) Grants

General Purpose (Untied) Financial Assistance - General Component 1,891 2,212 - - Financial Assistance - Local Roads Component - 305 - - Pensioners' Rates Subsidies - General Component 207 207 - - Total General Purpose 2,098 2,724 - -

Specific Purpose Pensioners' Rates Subsidies: - Domestic Waste Management 114 118 - - Aged Care 40 - - - Child Care 2,552 2,072 - - Community Care 643 609 - - Employment & Training Programs 6 21 - - Environmental Protection 69 107 - 825 Library 48 47 - - Library - per capita 130 128 - - Recreation & Culture - 66 165 1,148 Street Lighting 172 168 - - Transport (Roads to Recovery) - - 203 203 Transport (Other Roads & Bridges Funding) 40 - 554 234 Other 138 127 - - Total Specific Purpose 3,952 3,463 922 2,410 Total Grants 6,050 6,187 922 2,410 Grant Revenue is attributable to: DRAFT - Commonwealth Funding 2,987 4,461 521 1,028 - State Funding 2,736 1,526 401 960 - Other Funding 327 200 0 422 6,050 6,187 922 2,410

125 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 3. Income from Continuing Operations (continued)

2013 2012 2013 2012 $ '000 Operating Operating Capital Capital

(f) Contributions

Developer Contributions: (s93 & s94 - EP&A Act, s64 of the LGA): S 93F - Contributions using Planning Agreements - - 4,347 1,214 S 94A - Fixed Development Consent Levies - - 1,533 1,235 Total Developer Contributions 17 - - 5,880 2,449

Other Contributions: Car Parking 228 221 - - Community Services 43 7 - - Drainage 7 3 - - Kerb & Gutter 10 - - - Other Councils - Joint Works/Services 116 98 - - Paving 1 - - - Recreation & Culture 6 31 - 55 Roads & Bridges 95 7 - - Other 552 87 - - Total Other Contributions 1,058 454 - 55 Total Contributions 1,058 454 5,880 2,504

TOTAL GRANTS & CONTRIBUTIONS 7,108 6,641 6,802 4,914

Actual Actual $ '000 DRAFT 2013 2012 (g) Restrictions relating to Grants and Contributions

Certain grants & contributions are obtained by Council on condition that they be spent in a specified manner:

Unexpended at the Close of the Previous Reporting Period 2,964 2,388 add: Grants & contributions recognised in the current period but not yet spent: 4,708 1,797 less: Grants & contributions recognised in a previous reporting period now spent: (226) (1,221)

Net Increase (Decrease) in Restricted Assets during the Period 4,482 576 Unexpended and held as Restricted Assets 7,446 2,964

Comprising: - Specific Purpose Unexpended Grants 470 297 - Developer Contributions 6,550 2,667 - Other Contributions 426 - 7,446 2,964 126 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 4. Expenses from Continuing Operations

Actual Actual $ '000 Notes 2013 2012

(a) Employee Benefits & On-Costs

Salaries and Wages 36,940 34,502 Travelling 126 98 Employee Leave Entitlements (ELE) 5,888 6,611 Superannuation 4,739 4,625 Workers' Compensation Insurance 2,591 2,533 Fringe Benefit Tax (FBT) 183 189 Training Costs (other than Salaries & Wages) 251 298 Other 161 81 Total Employee Costs 50,879 48,937 less: Capitalised Costs (197) (437) TOTAL EMPLOYEE COSTS EXPENSED 50,682 48,500

Number of "Equivalent Full Time" Employees at year end 582 569

(b) Borrowing Costs

(i) Interest Bearing Liability Costs Interest on Overdraft 2 2 Interest on Loans 188 236 Interest on Building Deposits 4 8 Total Interest Bearing Liability Costs Expensed 194 246

(ii) Other Borrowing Costs Nil DRAFT TOTAL BORROWING COSTS EXPENSED 194 246

127 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 4. Expenses from Continuing Operations (continued)

Actual Actual $ '000 Notes 2013 2012

Raw Materials & Consumables 19,097 8,426 Contractor & Consultancy Costs 14,501 15,551 Contractor & Consultancy Costs (Temporary Staff) 1,490 1,272 Auditors Remuneration (1) 51 53 Infringement Notice Contract Costs (SEINS) 1,681 1,320 Legal Expenses: - Legal Expenses: Planning & Development 480 573 - Legal Expenses: Other 992 948 Operating Leases: - Operating Lease Rentals: Minimum Lease Payments (2) 1,171 1,479 Other (Fuel & Gas) 649 692 Total Materials & Contracts 40,112 30,314 less: Capitalised Costs (22,811) (14,552) TOTAL MATERIALS & CONTRACTS 17,301 15,762

1. Auditor Remuneration

During the year, the following fees were incurred for services provided by

the Council's Auditor (& the Auditors of other Consolidated Entities):

(i) Audit and Other Assurance Services - Audit & review of financial statements: Council's Auditor 51 53 Remuneration for audit and other assurance services 51 53 Total Auditor Remuneration DRAFT 51 53 2. Operating Lease Payments are attributable to: Buildings 348 424 Computers 283 314 Motor Vehicles 540 741 1,171 1,479

128 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 4. Expenses from Continuing Operations (continued)

Impairment Costs Depreciation/Amortisation Actual Actual Actual Actual $ '000 Notes 2013 2012 2013 2012

(d) Depreciation, Amortisation & Impairment

Plant and Equipment - - 1,191 1,313 Office Equipment - - 367 405 Buildings - Non Specialised - - 2,217 2,211 Buildings - Specialised - 775 3,167 2,815 Other Structures - - 458 702 Infrastructure: - Roads, Bridges & Footpaths - - 6,614 6,980 - Stormwater Drainage - - 1,117 1,111 Other Assets - Library Books - - 210 199 - Other - - 374 129 TOTAL DEPRECIATION & IMPAIRMENT COSTS EXPENSED - 775 15,715 15,865

DRAFT

129 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 4. Expenses from Continuing Operations (continued)

Actual Actual $ '000 Notes 2013 2012

(e) Other Expenses

Other Expenses for the year include the following:

Advertising 567 709 Abandonment of Fines by Office of State Debt Recovery 1,295 998 Bad & Doubtful Debts 166 858 Bank Charges 359 323 Car Park Levy 116 110 Cleaning 635 550 Computer Software Charges 982 749 Contributions/Levies to Other Levels of Government 464 290 - Department of Planning Levy 393 273 - Emergency Services Levy 87 66 - NSW Fire Brigade Levy 1,535 1,504 Councillor Expenses - Mayoral Fee 37 36 Councillor Expenses - Councillors' Fees 200 200 Councillors' Expenses (incl. Mayor) - Other (excluding fees above) 97 77 Donations, Contributions & Assistance to other organisations (Section 356) 646 578 Electricity & Heating 1,086 847 Family Day Care Subsidy 852 709 Insurance 1,176 1,252 Land Tax - Crown Land 460 581 Office Expenses (including computer expenses) 371 - Postage 194 204 Printing & Stationery 832 813 Street Lighting 1,118 1,028 Subscriptions & Publications DRAFT 232 200 Telephone & Communications 192 235 Waste Disposal Charges 5,956 4,727 Water Rates & Charges 325 334 Other 931 866 Total Other Expenses 21,304 19,117 less: Capitalised Costs (74) (95) TOTAL OTHER EXPENSES 21,230 19,022

130 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 5. Gains or Losses from the Disposal of Assets

Actual Actual $ '000 Notes 2013 2012

Plant & Equipment Proceeds from Disposal - Plant & Equipment 545 53 less: Carrying Amount of P&E Assets Sold / Written Off (57) (34) Net Gain/(Loss) on Disposal 488 19

Infrastructure Proceeds from Disposal - Infrastructure - - less: Carrying Amount of Infrastructure Assets Sold / Written Off (299) (225) Net Gain/(Loss) on Disposal (299) (225)

Financial Assets* Proceeds from Disposal / Redemptions / Maturities - Financial Assets 10,255 25,978 less: Carrying Amount of Financial Assets Sold / Redeemed / Matured (10,255) (25,978) Net Gain/(Loss) on Disposal - -

Non Current Assets Classified as "Held for Sale" Proceeds from Disposal - Non Current Assets "Held for Sale" 10,270 - less: Carrying Amount of 'Held for Sale' Assets Sold / Written Off (10,270) - Net Gain/(Loss) on Disposal - -

NET GAIN/(LOSS) ON DISPOSAL OF ASSETS 189 (206) DRAFT

131 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 6a. - Cash Assets and Note 6b. - Investments

2013 2013 2012 2012 Actual Actual Actual Actual $ '000 Notes Current Non Current Current Non Current

Cash & Cash Equivalents (Note 6a) Cash on Hand and at Bank 158 - 1,513 - Cash-Equivalent Assets1 - Deposits at Call 950 - 5,311 - - Managed Funds 5,854 - - - - Short Term Deposits 23,150 - 14,000 - Total Cash & Cash Equivalents 30,112 - 20,824 -

Investments (Note 6b) - Long Term Deposits 11,000 7,000 12,000 3,000 - NCD's, FRN's (with Maturities > 3 months) 1,616 - 4,566 - - Growth Securities 1,860 - 2,778 - Total Investments 14,476 7,000 19,344 3,000 TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS 44,588 7,000 40,168 3,000

1 Those Investments where time to maturity (from date of purchase) is < 3 mths.

Cash, Cash Equivalents & Investments were classified at year end in accordance with AASB 139 as follows:

Cash & Cash Equivalents a. "At Fair Value through the Profit & Loss" 30,112 - 20,824 - Investments DRAFT a. "At Fair Value through the Profit & Loss" - "Held for Trading" 6(b-i) 3,476 - 7,344 - - "Designated at Fair Value on Initial Recognition" 6(b-i) - - - - b. "Held to Maturity" 6(b-ii) 11,000 7,000 12,000 3,000 c. "Loans & Receivables" 6(b-iii) - - - - d. "Available for Sale" 6(b-iv) - - - - Investments 14,476 7,000 19,344 3,000

132 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 6b. Investments (continued)

2013 2013 2012 2012 Actual Actual Actual Actual $ '000 Current Non Current Current Non Current

Note 6(b-i) Reconciliation of Investments classified as "At Fair Value through the Profit & Loss" Balance at the Beginning of the Year 7,344 - - 2,514 Revaluations (through the Income Statement) 268 - 369 - Additions 119 - 4,461 - Disposals (sales & redemptions) (4,255) - - - Transfers between Current/Non Current - - 2,514 (2,514) Balance at End of Year 3,476 - 7,344 -

Comprising: - NCD's, FRN's (with Maturities > 3 months) - - 4,566 - - Growth Security - - 2,778 - - Other Long Term Financial Assets 3,476 - - - Total 3,476 - 7,344 -

Note 6(b-ii) Reconciliation of Investments classified as "Held to Maturity" Balance at the Beginning of the Year 12,000 3,000 25,000 9,000 Additions 2,000 7,000 6,978 - Disposals (sales & redemptions) (6,000) - (25,978) - Transfers between Current/Non Current 3,000 (3,000) 6,000 (6,000) Balance at End of Year DRAFT 11,000 7,000 12,000 3,000 Comprising: - Long Term Deposits 11,000 7,000 12,000 3,000 Total 11,000 7,000 12,000 3,000

Note 6(b-iii) Reconciliation of Investments classified as "Loans & Receivables" Nil

Note 6(b-iv) Reconciliation of Investments classified as "Available for Sale" Nil

133 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 6c. Restricted Cash, Cash Equivalents & Investments - Details

2013 2013 2012 2012 Actual Actual Actual Actual $ '000 Current Non Current Current Non Current

Total Cash, Cash Equivalents and Investments 44,588 7,000 40,168 3,000 attributable to: External Restrictions (refer below) 3,151 7,000 6,450 3,000 Internal Restrictions (refer below) 31,790 - 27,491 - Unrestricted 9,647 - 6,227 - 44,588 7,000 40,168 3,000

2013 Opening Transfers to Transfers from Closing $ '000 Balance Restrictions Restrictions Balance

Details of Restrictions

External Restrictions - Included in Liabilities Nil

External Restrictions - Other Developer Contributions - General (D) 2,667 6,083 (2,200) 6,550 Specific Purpose Unexpended Grants (F) 297 173 - 470 Domestic Waste Management (G) 6,353 1,282 (4,504) 3,131 Environmental Levy 133 - (133) - External Restrictions - Other 9,450 7,538 (6,837) 10,151 Total External Restrictions DRAFT 9,450 7,538 (6,837) 10,151

D Development contributions which are not yet expended for the provision of services and amenities in accordance with contributions plans (refer Note 17). F Grants which are not yet expended for the purposes for which the grants were obtained. (refer Note 1) G Water, Sewerage, Domestic Waste Management (DWM) & other Special Rates/Levies/Charges are externally restricted assets and must be applied for the purposes for which they were raised.

134 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 6c. Restricted Cash, Cash Equivalents & Investments - Details (continued)

2013 Opening Transfers to Transfers from Closing $ '000 Balance Restrictions Restrictions Balance

Internal Restrictions Plant & Vehicle Replacement 1,550 795 (618) 1,727 Infrastructure Replacement - 474 - 474 Employees Leave Entitlement 4,312 666 (1,087) 3,891 Carry Over Works 265 1,625 (265) 1,625 Deposits, Retentions & Bonds 6,638 384 - 7,022 Office Equipment 795 245 (185) 855 Insurance Claims 200 - - 200 Parking Meters 2,459 1,633 - 4,092 Parking - Off-Street 1,030 175 (639) 566 Street Tree (Sewer) Aerial Building 252 - - 252 Affordable Housing 1,008 133 - 1,141 Social Housing 166 83 - 249 Future Capital Works 4,028 563 (2,728) 1,863 Unexpended Loans 188 2,169 - 2,357 Cemetery Funds 1,501 225 (22) 1,704 Investment Strategy 1,139 10,115 (9,795) 1,459 Other 1,960 1,906 (1,553) 2,313 Total Internal Restrictions 27,491 21,191 (16,892) 31,790

TOTAL RESTRICTIONS 36,941 28,729 (23,729) 41,941 DRAFT

135 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 7. Receivables

2013 2012 $ '000 Notes Current Non Current Current Non Current

Purpose Rates & Annual Charges 975 139 652 198 Interest & Extra Charges 125 76 105 82 User Charges & Fees 1,548 - 819 45 Accrued Revenues - Interest on Investments 392 - 676 - - Other Income Accruals - - 590 - Government Grants & Subsidies 12 - 205 - Deferred Debtors - - 32 51 Net GST Receivable 4 - 376 - Parking Fines 3,054 4,144 3,626 3,769 Other Debtors 2,578 - 135 - Total 8,688 4,359 7,216 4,145 less: Provision for Impairment User Charges & Fees (88) - (131) - Parking Fines - (2,184) - (2,021) Total Provision for Impairment - Receivables (88) (2,184) (131) (2,021)

TOTAL NET RECEIVABLES 8,600 2,175 7,085 2,124

Externally Restricted Receivables Domestic Waste Management - - 409 117 Total External Restrictions - - 409 117 Internally Restricted Receivables Nil Unrestricted Receivables DRAFT 8,600 2,175 6,676 2,007 TOTAL NET RECEIVABLES 8,600 2,175 7,085 2,124

Notes on Debtors above: (i) Rates & Annual Charges Outstanding are secured against the property.

(ii) Doubtful Rates Debtors are provided for where the value of the property is less than the debt outstanding. An allowance for other doubtful debts is made when there is objective evidence that a receivable is impaired.

(iii) Interest was charged on overdue rates & charges at 10.00% (2012 11.00%). Generally all other receivables are non interest bearing.

(iv) Please refer to Note 15 for issues concerning Credit Risk and Fair Value disclosures.

136 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 8. Inventories & Other Assets

2013 2012 $ '000 Notes Current Non Current Current Non Current

Inventories Stores & Materials 255 - 118 - Total Inventories 255 - 118 -

Other Assets Prepayments 567 - 518 - Total Other Assets 567 - 518 -

TOTAL INVENTORIES / OTHER ASSETS 822 - 636 -

Externally Restricted Assets

There are no restrictions applicable to the above assets.

DRAFT

137 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 9a. Infrastructure, Property, Plant & Equipment

Asset Movements during the Reporting Period as at 30/6/2012 as at 30/6/2013 Revaluation WDV Asset Depreciation WIP Adjustments Increments of Asset At At Accumulated Carrying Additions Expense Transfers & Transfers to Equity At At Accumulated Carrying Disposals (ARR) $ '000 Cost Fair Value Dep'n Impairment Value Cost Fair Value Dep'n Impairment Value

Capital Work in Progress 5,848 - - - 5,848 2,921 - - (5,062) - - 3,707 - - - 3,707 Plant & Equipment - 13,217 8,802 - 4,415 4,146 (57) (1,191) 1,088 - - - 16,630 8,229 - 8,401 Office Equipment - 9,723 8,192 - 1,531 268 - (367) 29 (213) - - 8,844 7,596 - 1,248 Land: - Operational Land - 48,880 - - 48,880 9,520 - - - - 11,493 - 69,893 - - 69,893 - Community Land - 145,835 - - 145,835 ------145,835 - - 145,835 Buildings - Non Specialised - 76,951 28,452 - 48,499 281 - (2,217) 6 - 24,097 - 104,573 33,907 - 70,666 Buildings - Specialised - 85,237 44,571 - 40,666 1,137 (299) (3,167) 3,790 - 14,713 - 105,587 48,747 - 56,840 Other Structures - 27,792 11,674 - 16,118 147 - (458) - - - - 27,938 12,131 - 15,807 Infrastructure: - Roads, Bridges, Footpaths - 415,996 168,517 - 247,479 4,674 - (6,614) 83 - - - 420,753 175,131 - 245,622 - Stormwater Drainage - 110,952 37,170 - 73,782 500 - (1,117) 66 - - - 111,518 38,287 - 73,231 Other Assets: - Library Books - 6,051 5,076 - 975 206 - (210) - 213 - - 7,381 6,197 - 1,184 - Other - 4,595 1,282 - 3,313 252 - (374) - - - - 4,849 1,658 - 3,191 TOTAL INFRASTRUCTURE, PROPERTY, PLANT & EQUIP. 5,848 945,229 313,736 - 637,341 24,053 (356) (15,715) - - 50,303 3,707 1,023,801 331,883 - 695,625

Additions to Depreciable Land Improvements, Buildings, Other Structures & Infrastructure Assets are made up of Asset Renewals ($8.3M) and New Assets ($11.3M). Renewals are defined as the replacement of existing assets (as opposed to the acquisition of new assets). DRAFT Financial Statements 2013 Statements Financial page 49 page

138 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 9b. Externally Restricted Infrastructure, Property, Plant & Equipment

$ '000 Actual Actual 2013 2012 Class of Asset At At A/Dep & Carrying At At A/Dep & Carrying Cost Fair Value Impairm't Value Cost Fair Value Impairm't Value Domestic Waste Management Plant & Equipment - 8,772 4,577 4,195 - 7,567 5,285 2,282 Total DWM - 8,772 4,577 4,195 - 7,567 5,285 2,282

TOTAL RESTRICTED I,PP&E - 8,772 4,577 4,195 - 7,567 5,285 2,282

Note 9c. Infrastructure, Property, Plant & Equipment - Current Year Impairments

Actual Actual $ '000 Notes 2013 2012

Impairment Losses recognised in the Income Statement incl:

Boot Factory building is not fit for purpose & in poor structural condition. - (775) Total Impairment Losses - (775)

IMPAIRMENT of ASSETS - GAINS/(LOSSES) in P/L 4(d) - (775) DRAFT

139 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 10a. Payables, Borrowings & Provisions

2013 2012 $ '000 Notes Current Non Current Current Non Current

Payables Goods & Services - operating expenditure 3,097 - 3,318 - Goods & Services - capital expenditure 1,424 - 191 - Payments Received In Advance 1,002 - 380 - Accrued Expenses: - Borrowings 25 - 44 - - Other Expenditure Accruals 929 - 430 - Security Bonds, Deposits & Retentions 1,009 - 967 - Builders Deposits 5,979 - 5,671 - Other 39 - 38 - Total Payables 13,504 - 11,039 -

Borrowings Loans - Secured 1 1,252 3,035 1,289 1,898 Total Borrowings 1,252 3,035 1,289 1,898

Provisions Employee Benefits; Annual Leave 4,939 - 4,571 - Sick Leave 2,939 - 2,880 - Long Service Leave 8,540 488 9,026 485 Gratuities 2,257 - 3,196 - Time Off in Lieu 283 - 253 - Total Provisions 18,958 488 19,926 485 Total Payables, Borrowings &DRAFT Provisions 33,714 3,523 32,254 2,383 (i) Liabilities relating to Restricted Assets 2013 2012 Current Non Current Current Non Current Externally Restricted Assets Domestic Waste Management 210 129 259 - Liabilities relating to externally restricted assets 210 129 259 -

Internally Restricted Assets Nil

Total Liabilities relating to restricted assets 210 129 259 - Total Liabilities relating to Unrestricted Assets 33,504 3,394 31,995 2,383 TOTAL PAYABLES, BORROWINGS & PROVISIONS 33,714 3,523 32,254 2,383

1. Loans are secured over the General Rating Income of Council Disclosures on Liability Interest Rate Risk Exposures, Fair Value Disclosures & Security can be found in Note 15. 140 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 10a. Payables, Borrowings & Provisions (continued)

Actual Actual $ '000 2013 2012

(ii) Current Liabilities not anticipated to be settled within the next 12 months

The following Liabilities, even though classified as current, are not expected to be settled in the next 12 months.

Provisions - Employees Benefits 12,749 13,998 Payables - Security Bonds, Deposits & Retentions 4,539 4,367 17,288 18,365

Note 10b. Description of and movements in Provisions

2012 2013 Opening Remeasurement Unused Closing Additional Decrease due to Balance effects due to amounts Balance Class of Provision Provisions Payments as at 1/7/12 Discounting reversed as at 30/6/13 Annual Leave 4,571 2,786 (2,418) - - 4,939 Sick Leave 2,880 1,045 (986) - - 2,939 Long Service Leave 9,511 692 (1,175) - - 9,028 Gratuities 3,196 148 (1,087) - - 2,257 Other Leave 253 252 (222) - - 283 TOTAL 20,411 4,923 (5,888) - - 19,446

a. Employees Leave Entitlements & On-Costs represents those benefits accrued and payable and an estimate of those that will become payable in the futureDRAFT as a result of past service.

141 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 11. Statement of Cash Flows - Additional Information

Actual Actual $ '000 Notes 2013 2012

(a) Reconciliation of Cash Assets Total Cash & Cash Equivalent Assets 6a 30,112 20,824 Less Bank Overdraft 10 - - BALANCE as per the STATEMENT of CASH FLOWS 30,112 20,824

(b) Reconciliation of Net Operating Result to Cash provided from Operating Activities

Net Operating Result from Income Statement 18,003 326 Adjust for non cash items: Depreciation & Amortisation 15,715 15,865 Net Losses/(Gains) on Disposal of Assets (189) 206 Non Cash Capital Grants and Contributions - (418) Impairment Losses Recognition - I,PP&E - 775 Losses/(Gains) recognised on Fair Value Re-measurements through the P&L: - Investments classified as "At Fair Value" or "Held for Trading" (268) (369) - Investment Properties (12,720) (2,996)

+/- Movement in Operating Assets and Liabilities & Other Cash Items: Decrease/(Increase) in Receivables (1,769) (20) Increase/(Decrease) in Provision for Doubtful Debts 120 849 Decrease/(Increase) in Inventories (137) 42 Decrease/(Increase) in Other Assets (49) 182 Increase/(Decrease) in Payables (221) 805 Increase/(Decrease) in accrued Interest Payable (19) (16) Increase/(Decrease) in other accruedDRAFT Expenses Payable 499 (370) Increase/(Decrease) in Other Liabilities 973 244 Increase/(Decrease) in Employee Leave Entitlements (965) (700) NET CASH PROVIDED FROM/(USED IN) OPERATING ACTIVITIES from the STATEMENT of CASH FLOWS 18,973 14,405

142 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 11. Statement of Cash Flows - Additional Information (continued)

Actual Actual $ '000 Notes 2013 2012

S94 Contributions "in kind" - 418 Total Non-Cash Investing & Financing Activities - 418

(d) Financing Arrangements

(i) Unrestricted access was available at balance date to the following lines of credit: Bank Overdraft Facilities (1) 250 250 Credit Cards / Purchase Cards 25 25 Total Financing Arrangements 275 275

1. The Bank overdraft facility may be drawn at any time and may be terminated by the bank without notice. Interest rates on overdrafts are Interest Rates on Loans & Other Payables are disclosed in Note 15.

(ii) Secured Loan Liabilities Loans are secured by a mortgage over future years Rate Revenue only. DRAFT

143 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 12. Commitments for Expenditure

Actual Actual $ '000 Notes 2013 2012

(a) Capital Commitments (exclusive of GST)

Capital expenditure committed for at the reporting date but not recognised in the financial statements as liabilities:

Property, Plant & Equipment Buildings 12,563 937 Plant & Equipment 181 - Infrastructure 520 1,086 Total Commitments 13,264 2,023

These expenditures are payable as follows: Within the next year 13,264 2,023 Total Payable 13,264 2,023

Sources for Funding of Capital Commitments: Future Grants & Contributions 24 165 Sect 64 & 94 Funds/Reserves 105 28 Internally Restricted Reserves 13,135 1,830 Total Sources of Funding 13,264 2,023

(b) Finance Lease Commitments

Nil

(c) Operating Lease CommitmentsDRAFT (Non Cancellable) a. Commitments under Non Cancellable Operating Leases at the Reporting date, but not recognised as Liabilities are payable:

Within the next year 474 481 Later than one year and not later than 5 years 332 353 Later than 5 years 10 10 Total Non Cancellable Operating Lease Commitments 816 844 b. Non Cancellable Operating Leases include the following assets: Motor Vehicles - $682, and IT equipment - $134. Contingent Rentals may be payable depending on the condition of items or usage during the lease term.

Conditions relating to Operating Leases: - All Operating Lease Agreements are secured only against the Leased Asset. - No Lease Agreements impose any financial restrictions on Council regarding future debt etc. 144 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 13a(i). Statement of Performance Measurement - Indicators (Consolidated)

Amounts Indicator Prior Periods $ '000 2013 2013 2012 2011

Local Government Industry Indicators - Consolidated

1. Unrestricted Current Ratio Current Assets less all External Restrictions (1) 85,544 (2,3) 5.28 : 1 4.35 2.60 Current Liabilities less Specific Purpose Liabilities 16,216

2. Debt Service Ratio Debt Service Cost 1,590 1.43% 1.55% 1.95% Income from Continuing Operations 111,313 (excl. Capital Items & Specific Purpose Grants/Contributions)

3. Rates & Annual Charges Coverage Ratio Rates & Annual Charges 47,283 38.40% 41.32% 41.20% Income from Continuing Operations 123,125

4. Rates, Annual Charges, Interest & Extra Charges Outstanding Percentage Rates, Annual & Extra Charges Outstanding 1,315 2.71% 2.43% 2.20% Rates, Annual & Extra Charges Collectible 48,463

5. Building & Infrastructure Renewals Ratio Asset Renewals(4) 8,251 62.91% 25.35% 40.04% Depreciation, Amortisation & ImpairmentDRAFT 13,115

Notes (1) Refer Notes 6-8 inclusive. Also excludes any Real Estate & Land for resale not expected to be sold in the next 12 months (2) Refer to Note 10(a). (3) Refer to Note 10(a)(ii) - excludes all payables & provisions not expected to be paid in the next 12 months (incl. ELE). (4) Asset Renewals represent the replacement &/or refurbishment of existing assets to an equivalent capacity/performance

as opposed to the acquisition of new assets (or the refurbishment of old assets) that increases capacity/performance.

Asset Renewals include building and infrastructure assets only. 145 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 13a(i). Statement of Performance Measurement - Indicators (Consolidated)

Amounts Indicator Prior Periods $ '000 2013 2013 2012 2011

TCorp Performance Measures - Consolidated a. Operating Performance Operating Revenue (excl. Capital Grants & Contributions) - Operating Expenses (1,787) -1.73% -8.61% -11.03% Operating Revenue (excl. Capital Grants & Contributions) 103,335 b. Own Source Operating Revenue Rates & Annual Charges + User Charges & Fees 75,505 68.56% 68.93% 67.50% Total Operating Revenue (incl. Capital Grants & Contributions) 110,137 c. Unrestricted Current Ratio Current Assets less all External Restrictions 85,544 5.28 4.35 2.60 Current Liabilities less Specific Purpose Liabilities 16,216 d. Debt Service Cover Ratio Operating Result before Interest & Depreciation (EBITDA) 14,122 8.86 5.70 3.81 Principal Repayments (from the Statement of Cash Flows) 1,594 + Borrowing Interest Costs (from the Income Statement) e. Capital Expenditure Ratio Annual Capital Expenditure 23,697 1.51 0.98 0.94 Annual Depreciation 15,715 f. Infrastructure Backlog Ratio Estimated Cost to bring Assets to a Satisfactory Condition 10,984 0.02 0.07 0.07 Total value of Infrastructure, Building, OtherDRAFT Structures 462,166 & Depreciable Land Improvement Assets g. Asset Maintenance Ratio Actual Asset Maintenance 6,355 1.10 0.83 0.84 Required Asset Maintenance 5,790 h. Building & Infrastructure Renewals Ratio Asset Renewals 8,251 0.63 0.25 0.40 Depreciation of Building and Infrastructure Assets 13,115 i. Cash Expense Cover Ratio Current Year's Cash & Cash Equivalents 30,112 x12 4.05 2.97 1.29 (Total Expenses - Depreciation - Interest Costs) 7,434 j. Interest Cover Ratio Operating Results before Interest & Depreciation (EBITDA) 14,122 72.79 33.16 19.47 Borrowing Interest Costs (from the income statement) 194 146 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 13a(ii). Local Government Industry Indicators - Graphs (Consolidated)

1. Unrestricted Current Ratio Purpose of Commentary on 2012/13 Result Unrestricted Current 10.0 2012/13 Ratio 5.28 : 1 Ratio 8.0 To assess the 6.0 5.28 A ratio of 5.28:1 indicates that Waverley 4.35 adequacy of working Council has sufficient liquid assets on hand 4.0 2.87 2.60 capital and its ability

Ratio : Ratio 1 to meet short term obligations as they fall to satisfy obligations 2.0 in the short term for due and compares favourably with the 0.0 the unrestricted 2010/11 NSW Council average of 2.89:1 2010 2011 2012 2013 activities of Council. and the Group 2 Council average of 2.32:1.

Commentary on 2012/13 Result 2. Debt Service Ratio Purpose of Debt 5% Service Ratio 2012/13 Ratio 1.43% 4%

A ratio of 1.43% indicates that Waverley 3% To assess the impact 2.09% 1.95% Council has a relatively small portion of 2% 1.55% 1.43% of loan principal &

Ratio % revenue committed to the repayment of interest repayments 1% on the discretionary debt, compared with the 2010/11 average 0% revenue of council. for NSW Councils of 5.45% and the Group 2010 2011 2012 2013 2 Council average of 2.00%.

3. Rates & Annual Charges Coverage Ratio Purpose of Rates & Commentary on 2012/13 Result Annual Charges 100% 2012/13 Ratio 38.40% Coverage Ratio 80% To assess the degree This ratio reflects a comparative over 60% of Council's dependence on other sources of revenue 39.74% 41.20% 41.32% 38.40% dependence upon 40% with less than 40% of Waverley Council

Ratio % revenue from rates revenue from rates sources compared to 20% and annual charges and to assess the the 2010/11 average for NSW Councils of 0% security of Council's 46.38% and the Group 2 Councils average 2010 2011 2012 2013 income. of 54.39%.

4. Rates, Annual Charges, Interest & Extra Purpose of Rates & Commentary on 2012/13 Result Charges Outstanding Percentage Annual Charges 10% DRAFT2012/13 Ratio 2.71% Outstanding Ratio 8% This measure at 2.71% while up against

6% To assess the impact recent years, compares favourably with the of uncollected rates 4% 2.71% 2010/11 NSW Council average of 5.26% 2.54% 2.20% 2.43% and annual charges

Ratio % and the Group 2 Councils average of 2% on Council's liquidity and the adequacy of 4.25% and reflects that Waverley Council 0% recovery efforts. maintain its excellent collection of rates 2010 2011 2012 2013 based debt.

Commentary on 2012/13 Result 5. Building & Infrastructure Renewals Purpose of Asset Ratio 100% Renewals Ratio 2012/13 Ratio 62.91%

80% 68.75% 62.91% 60% To assess the rate at It measure at 62.74% compares favourably 40.04% which these assets with the 2010/11 NSW Council average of 40% 25.35% are being renewed 56.78% and the Group 2 Councils average Ratio % 20% relative to the rate at of 66.27% and reflects an improvement in which they are asset renewal expenditure. 0% depreciating. 2010 2011 2012 2013 147 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 13a(ii). TCorp Performance Measures - Graphs (Consolidated)

a. Operating Performance Purpose of Commentary on 2012/13 Result Operating 0% 2012/13 Ratio -1.73% Performance Ratio -2% 2011 2012 2013

-1.73% -4% This ratio measures -6% Council’s This ratio measure at negative 1.61%,

Ratio % achievement of -8% compares favourably with the TCorp -10% -8.61% containing operating expenditure within benchmark of greater than negative 4%. -12% -11.03% operating revenue. -14%

b. Own Source Operating Revenue Purpose of Own Commentary on 2012/13 Result Source Operating 70% 2012/13 Ratio 68.56% Revenue Ratio 70% 68.93%

69% 68.56% This ratio measures 69% fiscal flexibility. It is 68% 67.50% This measure shows Waverley Council is the degree of reliance 68% less reliant on external funding sources, Ratio % 67% on external funding sources such as and compares favourably with the TCorp 67% benchmark of greater than 60%. 66% operating grants & 2011 2012 2013 contributions.

c. Unrestricted Current Ratio Purpose of Commentary on 2012/13 Result Unrestricted Current 10.0 2012/13 Ratio 5.28 Ratio 8.0 To assess the 6.0 5.28 4.35 adequacy of A ratio of 5.28:1 indicates that Waverley unrestricted working Council has sufficient liquid assets on hand 4.0 2.60

Ratio (x) capital and Council's to meet short term obligation as they fall 2.0 ability to meet short due and favourably compares with the 0.0 term obligations as TCorp benchmark of 1.5x. 2011 2012 2013 they fall due.

Commentary on 2012/13 Result d. Debt Service Cover Ratio Purpose of Debt 12.0 DRAFTService Cover Ratio 2012/13 Ratio 8.86 x 10.0 8.86 8.0 5.70 This ratio measures A ratio of 8.84x shows that Waverley 6.0 the availability of 3.81 Council has a strong capacity to repay 4.0 operating cash to Ratio (x) additional debt and provides a favourable service debt including 2.0 interest, principal and comparison with the TCorp benchmark of 0.0 lease payments greater than 2x. 2011 2012 2013

Commentary on 2012/13 Result e. Capital Expenditure Ratio Purpose of Capital 2.0 Expenditure Ratio 2012/13 Ratio 1.51 x 1.51 1.5 This ratio assesses

0.94 0.98 the extent to which a A ratio of 1.51x indicates that Waverley 1.0 Council is expanding Council's spend on both new, replacement its asset base with and renewal of existing assets, compares Ratio (x) 0.5 capital expenditure (on new assets, favourably with the TCorp benchmark of 0.0 replacement & renewal greater than 1.1x 2011 2012 2013 of existing assets). 148 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 13a(ii). TCorp Performance Measures - Graphs (Consolidated) continued

f. Infrastructure Backlog Ratio Purpose of Commentary on 2012/13 Result Infrastructure 0.10 2012/13 Ratio 0.02 x Backlog Ratio 0.08 0.07 0.07

0.06 This ratio shows what A ratio of 0.02x shows that Waverley proportion the Council has a small proportion of the 0.04 backlog is against the 0.02 backlog is against its total value of Ratio (x) 0.02 total value of a Council’s Infrastructure, in line with TCorp's 0.00 infrastructure. benchmark of less than 0.02x. 2011 2012 2013

Commentary on 2012/13 Result g. Asset Maintenance Ratio Purpose of Asset 1.40 Maintenance Ratio 2012/13 Ratio 1.10 x 1.20 1.10

1.00 0.84 0.83 Compares actual vs. 0.80 required annual asset A ratio of 1.10x indicates Waverley maintenance. A ratio of 0.60 Council's spending on Asset Maintenance > 1.0x indicates Ratio (x) 0.40 is sufficient to stop the Infrastructure enough has been 0.20 spent to stop the Backlog from growing, in line with Tcopr's 0.00 Infrastructure Backlog benchmark of greater than 1.0x. 2011 2012 2013 from growing.

Commentary on 2012/13 Result h. Building & Infrastructure Renewals Purpose of Asset Ratio 1.00 Renewals Ratio 2012/13 Ratio 0.63 x

0.80 0.63 0.60 To assess the rate at A ratio of 0.63x reflects an improvement in 0.40 which these assets asset renewal spending compare to the 0.40 0.25 are being renewed Ratio (x) previous years. This measure compare 0.20 relative to the rate at which they are unfavourably with TCorp's benchmark of 0.00 depreciating. greater than 1.0x. 2011 2012 2013

i. Cash Expense Cover Ratio Purpose of Cash Commentary on 2012/13 Result Expense Cover 6.0 DRAFT2012/13 Ratio 4.05 mths Ratio 5.0 4.05 4.0 This liquidity ratio A ratio of 4.05 months indicates that 2.97 indicates the number 3.0 Waverley Council can continue paying for of months a Council its immediate expenses without additional 2.0 1.29 can continue paying 1.0 for its immediate cash inflow, compare favourably with Ratio (mths) TCorp's benchmark of greater than 3 0.0 expenses without 2011 2012 2013 additional cash inflow. months.

Commentary on 2012/13 Result j. Interest Cover Ratio Purpose of Interest 100.00 Cover Ratio 2012/13 Ratio 72.79 x

80.00 72.79 This ratio indicates 60.00 A ratio of 72.79x indicates that Waverley the extent to which a Council is in a strong capacity to service its 33.16 Council can service 40.00 loan borrowing cost and take on additional

Ratio (x) 19.47 (thru operating cash) 20.00 its interest bearing borrowings, this measure provides a favourabl comparison with Tcorp's 0.00 debt & take on 2011 2012 2013 additional borrowings. benchmark of greater than 4.0x. 149 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 14. Investment Properties

Actual Actual $ '000 Notes 2013 2012

(a) Investment Properties at Fair value

Investment Properties on Hand 130,543 117,823

Reconciliation of Annual Movement: Opening Balance 117,823 114,827 - Net Gain/(Loss) from Fair Value Adjustments 12,720 2,996 CLOSING BALANCE - INVESTMENT PROPERTIES 130,543 117,823

(b) Valuation Basis

The basis of valuation of Investment Properties is Fair Value, being the amounts for which the properties could be exchanged between willing parties in arms length transaction, based on current prices in an active market for similar properties in the same location and condition and subject to similar leases.

The 2013 revaluations were based on Independent Assessments made by: Scott Fullarton Valuations Pty. Ltd (ACN 003 683 878)

Refer to Note 12 for disclosures relating to any Capital and Service obligations that have been contracted.

(d) Leasing Arrangements

Details of leased Investment Properties are as follows; Future Minimum Lease Payments receivable under non-cancellable Investment Property Operating Leases not recognised in the Financial StatementsDRAFT are due: Within 1 year 2,036 1,916 Later than 1 year but less than 5 years 2,338 4,161 Later than 5 years - - Total Minimum Lease Payments Receivable 4,374 6,077

(e) Investment Property Income & Expenditure - summary

Rental Income from Investment Properties: - Minimum Lease Payments 2,210 2,104 - Other Income 2,844 2,796 Direct Operating Expenses on Investment Properties: - that generated rental income (1,625) (1,712) - that did not generate rental income (225) (203) Net Revenue Contribution from Investment Properties 3,204 2,985 plus: Fair Value Movement for year 12,720 2,996 Total Income attributable to Investment Properties 15,924 5,981 150 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 15. Financial Risk Management

$ '000

Risk Management

Council's activities expose it to a variety of financial risks including (1) price risk, (2) credit risk, (3) liquidity risk and (4) interest rate risk.

The Council's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Council.

Council does not engage in transactions expressed in foreign currencies and is therefore not subject to foreign currency risk.

Financial risk management is carried out by Council's Finance Section under policies approved by the Council.

A comparison by category of the carrying amounts and fair values of Council's Financial Assets & Financial Liabilities recognised in the financial statements is presented below.

Carrying Value Fair Value 2013 2012 2013 2012 Financial Assets Cash and Cash Equivalents 30,112 20,824 30,121 20,824 Investments - "Held for Trading" 3,476 7,344 3,476 7,344 - "Held to Maturity" 18,000 15,000 18,000 15,000 Receivables 10,775 9,209 10,559 9,209 Total Financial Assets 62,363 52,377 62,156 52,377

Financial Liabilities Payables DRAFT 12,502 10,659 12,502 10,659 Loans / Advances 4,287 3,187 4,287 3,187 Total Financial Liabilities 16,789 13,846 16,789 13,846

Fair Value is determined as follows:

- Cash & Cash Equivalents, Receivables, Payables - are estimated to be the carrying value which approximates mkt value.

- Borrowings & Held to Maturity Investments - are based upon estimated future cash flows discounted by the current market interest rates applicable to assets & liabilities with similar risk profiles, unless quoted market prices are available.

- Financial Assets classified (i) "at fair value through profit & loss" or (ii) Available for Sale - are based upon quoted market prices (in active markets for identical investments) at the reporting date or independent valuation.

151 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 15. Financial Risk Management (continued)

$ '000

(a) Fair Value Measurements

The fair value of financial assets and financial liabilities must be estimated in accordance with Accounting Standards for either recognition and measurement requirements or for disclosure purposes.

AASB 7 Financial Instruments: Disclosures, requires the disclosure of how fair valuations have been arrived at for all financial assets and financial liabilities that have been measured at fair value.

Arriving at fair values for financial assets & liabilities can be broken up into 3 distinct measurement hierarchies:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

The following table presents the financial assets and financial liabilities that have been measured & recognised at fair values:

2013 Level 1 Level 2 Level 3 Total Financial Assets Investments - "Held for Trading" 3,476 - - 3,476 Total Financial Assets 3,476 - - 3,476

2012 Level 1 Level 2 Level 3 Total Financial Assets DRAFT Investments - "Held for Trading" 2,778 - - 2,778 Total Financial Assets 2,778 - - 2,778

152 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 15. Financial Risk Management (continued)

$ '000

(b) Cash & Cash Equivalents, Financial assets 'at fair value through the profit & Loss' "Available-for-sale" financial assets & "Held-to-maturity" Investments

Council's objective is to maximise its return on cash & investments whilst maintaining an adequate level of liquidity and preserving capital.

Council's Finance area manages the Cash & Investments portfolio with the assistance of independent advisors.

Council has an Investment Policy which complies with the Local Government Act & Minister's Investment Order. This Policy is regularly reviewed by Council and it's staff and an Investment Report is tabled before Council on a monthly basis setting out the portfolio breakup and its performance.

The major risk associated with Investments is price risk - the risk that the capital value of Investments may fluctuate due to changes in market prices, whether there changes are caused by factors specific to individual financial instruments or their issuers or are caused by factors affecting similar instruments traded in a market.

Cash & Investments are also subject to interest rate risk - the risk that movements in interest rates could affect returns and income.

A further risk associated with Cash & Investments is credit risk - the risk that the investment counterparty) will not complete their obligations particular to a financial instrument, resulting in a financial loss to Council - be it of a capital or income nature.

Council manages these risks (amongst other measures) by diversifying its portfolio and only purchasing investments with high credit ratings or capital guarantees.

Council also seeks advice from independent advisers before placing any funds in Cash Equivalents & Investments. DRAFT

The following represents a summary of the sensitivity of Council's Income Statement and Accumulated Surplus (for the reporting period) due to a change in either the price of a financial asset or the interest rates applicable.

It is assumed that the change in interest rates would have been constant throughout the reporting period.

Increase of Values/Rates Decrease of Values/Rates 2013 Profit Equity Profit Equity Possible impact of a 10% movement in Market Values 347 347 (347) (347) Possible impact of a 1% movement in Interest Rates 488 488 (488) (488)

2012 Possible impact of a 10% movement in Market Values 278 278 (278) (278) Possible impact of a 1% movement in Interest Rates 386 386 (386) (386)

153 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 15. Financial Risk Management (continued)

$ '000

Council's major receivables comprise (i) Rates & Annual charges and (ii) User Charges & Fees.

The major risk associated with these receivables is credit risk - the risk that debts due and payable to Council may not be repaid in full.

Council manages this risk by monitoring outstanding debt and employing stringent debt recovery procedures. It also encourages ratepayers to pay their rates by the due date through incentives.

Credit risk on rates and annual charges is minimised by the ability of Council to secure a charge over the land relating to the debts - that is, the land can be sold to recover the debt. Council is also able to charge interest on overdue rates & annual charges at higher than market rates which further encourages the payment of debt.

There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and/or regions.

The level of outstanding receivables is reported to Council monthly and benchmarks are set and monitored for acceptable collection performance.

Council makes suitable provision for doubtful receivables as required and carries out credit checks on most non-rate debtors.

There are no material receivables that have been subjected to a re-negotiation of repayment terms.

A profile of Council's receivables credit risk at balance date follows:

DRAFT2013 2013 2012 2012 Rates & Rates & Annual Other Annual Other (i) Ageing of Receivables Charges Receivables Charges Receivables Current (not yet overdue) 975 7,587 653 4,059 Overdue 139 4,346 197 6,452 1,114 11,933 850 10,511

(ii) Movement in Provision for Impairment 2013 2012 of Receivables Balance at the beginning of the year 2,152 1,303 + new provisions recognised during the year 163 858 - amounts already provided for & written off this year (43) (9) Balance at the end of the year 2,272 2,152

154 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 15. Financial Risk Management (continued)

$ '000

(d) Payables & Borrowings

Payables & Borrowings are both subject to liquidity risk - the risk that insufficient funds may be on hand to meet payment obligations as and when they fall due.

Council manages this risk by monitoring its cash flow requirements and liquidity levels and maintaining an adequate cash buffer.

Payment terms can (in extenuating circumstances) also be extended & overdraft facilities utilised as required.

The contractual undiscounted cash outflows (ie. principal and interest) of Council's Payables & Borrowings are set out in the Liquidity Table below:

$ '000 Subject Total Actual to no payable in: Cash Carrying maturity ≤ 1 Year 1-2 Yrs 2-3 Yrs 3-4 Yrs 4-5 Yrs > 5 Yrs Outflows Values

2013 Trade/Other Payables 6,988 5,513 - - - - - 12,501 12,502 Loans & Advances - 1,252 1,117 837 667 414 - 4,287 4,287 Total Financial Liabilities 6,988 6,765 1,117 837 667 414 - 16,788 16,789

2012 Trade/Other Payables 6,638 4,021 - - - - - 10,659 10,659 Loans & Advances - 1,289 794 635 331 138 - 3,187 3,187 Total Financial Liabilities 6,638 DRAFT 5,310 794 635 331 138 - 13,846 13,846 Borrowings are also subject to interest rate risk - the risk that movements in interest rates could adversely affect funding costs & debt servicing requirements. Council manages this risk through the diversification of borrowing types, maturities & interest rate structures.

The following interest rates were applicable 2013 2012 to Council's Borrowings at balance date: Carrying Average Carrying Average Value Interest Rate Value Interest Rate Trade/Other Payables 12,502 0.0% 10,659 0.0% Loans & Advances - Fixed Interest Rate 4,287 6.0% 3,187 6.0% 16,789 13,846

155 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 16. Material Budget Variations

$ '000

Council's Original Financial Budget for 12/13 was adopted by the Council on 19 June 2012.

While the Income Statement included in this General Purpose Financial Report must disclose the Original Budget adopted by Council, the Local Government Act requires Council to review its Financial Budget on a Quarterly Basis, so that it is able to manage the various variations between actuals versus budget that invariably occur throughout the year.

This Note sets out the details of MATERIAL VARIATIONS between Council's Original Budget and its Actual results for the year as per the Income Statement - even though such variations may have been adjusted for during each Quarterly Budget Review.

Note that for Variations* of Budget to Actual : Material Variations represent those variances that amount to 10% or more of the original budgeted figure. F = Favourable Budget Variation, U = Unfavourable Budget Variation

2013 2013 2013 $ '000 Budget Actual ------Variance* ------

REVENUES Rates & Annual Charges 47,189 47,283 94 0% F

User Charges & Fees 29,672 28,222 (1,450) (5%) U

Interest & Investment Revenue 2,375 2,647 272 11% F Council recorded with interest revenue of $2.65m which is $272k better than the original budget, this favourable result is delivered by an, unbudgeted, upward movement in the investment fair valuation by $268k.

Other Revenues DRAFT 15,194 30,874 15,680 103% F This big favourable variation is delivered by an upward revaluation of the investment properties by $12.72m and additional parking fine revenue of $1.67m.

Operating Grants & Contributions 5,241 7,108 1,867 36% F The childcare benefit grant is greater than the original estimates by $1.06m. The original budget is anticipated with a lower FAG by $330k, and the WaSIP subsidies is $426k not in the original estimates.

Capital Grants & Contributions 1,700 6,802 5,102 300% F This favourable variation is mainly as a result of additional $4.3m in developer contributions.

Net Gains from Disposal of Assets 46,306 189 (46,117) (100%) U Council originally budgeted for the completion of sale of the complete Council Depot in 2012/13 however this did not occur with only a portion of the Council Depot being sold in this financial year.

156 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 16. Material Budget Variations (continued)

2013 2013 2013 $ '000 Budget Actual ------Variance* ------

EXPENSES Employee Benefits & On-Costs 53,525 50,682 2,843 5% F

Borrowing Costs 225 194 31 14% F The borrowing costs is higher than in the original budget because when the budget was being prepared it was forecast expected that the Local Infrastructure Renewal Scheme (LIRS) subsidy would be received in 2012/13 however the first instalment of the loan subsidy will not be made until October 2013.

Materials & Contracts 17,136 17,301 (165) (1%) U

Depreciation & Amortisation 15,167 15,715 (548) (4%) U

Other Expenses 20,302 21,230 (928) (5%) U

Budget Variations relating to Council's Cash Flow Statement include:

Cash Flows from Operating Activities 9,270 18,973 9,703 104.7% F The Grant & Contributions revenue are better than originally estimated by $7m, cash from other revenue is. also better.

Cash Flows from Investing Activities (9,875) (10,785) (910) 9.2% U Cash Flows from Financing ActivitiesDRAFT 1,128 1,100 (28) (2.5%) U

157 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 17. Statement of Developer Contributions

$ '000

Council recovers contributions, raises levies & enters into planning agreements on development works that are subject to a development consent issued by Council. All contributions must be spent/utilised for the specific purpose they were levied and any interest applicable to unspent funds must be attributed to remaining funds.

The following tables detail the receipt, interest and use of the above contributions & levies and the value of all remaining funds which are "restricted" in their future use.

SUMMARY OF CONTRIBUTIONS & LEVIES Projections Cumulative Contributions Interest Expenditure Internal Held as Exp Over or Internal PURPOSE Opening received during the Year earned during Borrowing Restricted Future still (under) Borrowings Balance Cash Non Cash in Year Year (to)/from Asset income outstanding Funding due/(payable) S94A Levies - under a Plan 467 1,533 - 203 (1,736) - 467 - Total S94 Revenue Under Plans 467 1,533 - 203 (1,736) - 467 -

S93F Planning Agreements 2,200 4,347 - - (464) - 6,083 Total Contributions 2,667 5,880 - 203 (2,200) - 6,550 - - - -

S94A LEVIES - UNDER A PLAN DRAFT CONTRIBUTION PLAN NUMBER XX Projections Cumulative

Contributions Interest Expenditure Internal Held as Exp Over or Internal 2013 Statements Financial PURPOSE Opening received during the Year earned during Borrowing Restricted Future still (under) Borrowings Balance Cash Non Cash in Year Year (to)/from Asset income outstanding Funding due/(payable) Roads 467 1,533 - 203 (1,736) - 467 - - - Total 467 1,533 - 203 (1,736) - 467 - page 69 page 158 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 18. Contingencies & Other Assets/Liabilities Not Recognised

$ '000

The following assets and liabilities do not qualify for (iii) StateCover Limited recognition in the Statement of Financial Position, but their knowledge & disclosure is considered relevant Council is a member of StateCover Mutual Limited to the users of Council's Financial Report. and holds a partly paid share in the entity.

StateCover is a company providing workers LIABILITIES NOT RECOGNISED: compensation insurance cover to the NSW Local Government Industry and specifically Council. 1. Guarantees Council has a contingent liability to contribute further (i) Defined Benefit Superannuation equity in the event of the erosion of the Company's Contribution Plans capital base as a result of the company's past performance and/or claims experience or as a result Council participates in an employer sponsored of any increased prudential requirements from APRA. Defined Benefit Superannuation Scheme, and makes contributions as determined by the Superannuation These future equity contributions would be required Scheme's Trustees. to maintain the company’s minimum level of Net Assets in accordance with its Licence Requirements. Member Councils bear responsibility of ensuring there are sufficient funds available to pay out the required (iv) Other Guarantees benefits as they fall due. Council has provided no other Guarantees other than The Schemes most recent full actuarial review those listed above. indicated that the Net Assets of the Scheme were not sufficient to meet the accrued benefits of the Schemes Defined Benefit member category with 2. Other Liabilities member Councils required to make significantly higher contributions in future years. DRAFT(i) Third Party Claims

The Local Government Superannuation Scheme The Council is involved from time to time in various however is unable to provide Council with an accurate claims incidental to the ordinary course of business estimate of its share of the net deficit and accordingly including claims for damages relating to its services. Council has not recorded any net liability from it's Defined Benefit Scheme obligations in accordance Council believes that it is appropriately covered with AASB 119. for all claims through its Insurance Coverage and does not expect any material liabilities to eventuate. Future contributions made to the defined benefit scheme to rectify the net deficit position will be recognised as an expense when they become payable - similar to the accounting for Defined Contributions Plans.

159 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 18. Contingencies & Other Assets/Liabilities Not Recognised (continued)

$ '000

LIABILITIES NOT RECOGNISED (continued): (iv) Legal Expenses

2. Other Liabilities (continued) Council is the planning consent authority for its area under the Environmental Planning & Assessment Act Council levies Section 94/94A Contributions upon (as amended). Pursuant to that act, certain persons various development across the Council area through aggrieved by a planning decision of the Council may the required Contributions Plans. appeal to the Land & Environment Court. It is the Court's normal practice that parties bear their own As part of these Plans, Council has received funds legal costs. for which it will be required to expend the monies in accordance with those Plans. At reporting date, all known costs have been recognised, but the amount of further costs As well, these Plans indicate proposed future cannot be known until the appeals are determined. expenditure to be undertaken by Council, which will be funded by making levies and receipting funds in future years or where a shortfall exists by the use of ASSETS NOT RECOGNISED: Council's General Funds. (i) Affordable Housing These future expenses do not yet qualify as liabilities as of the Reporting Date, but represent Councils Under Council's Development Consent Policy 1 intention to spend funds in the manner and timing (DCP1) developers can if they wish so gain increased set out in those Plans. floor space ratio.

(iii) Potential Land Acquisitions due to Planning To offset the increased floor space ratio the developer Restrictions imposed by Council makes available to council Affordable Housing for low to moderate income persons. Council has classified a number of privately owned land parcels as Local Open Space orDRAFT Bushland. Council and the applicant enter into a Deed of Agreement to offer council a unit or units in either As a result, where notified in writing by the various perpetuity or fixed periods of time. owners, Council will be required to purchase these land parcels. These units are managed by a Community Organisation identified by Council. Affordable Housing At reporting date, reliable estimates as to the value units offered to council in perpetuity are recognised as of any potential liability (& subsequent land asset) an asset while those fixed for periods of time are not from such potential acquisitions has not been recognised in council's accounts. possible. (i) Land Under Roads

As permitted under AASB 1051, Council has elected not to bring to account Land Under Roads that it owned or controlled up to & including 30/6/08.

160 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 19. Controlled Entities, Associated Entities & Interests in Joint Ventures

$ '000

Council has no interest in any Controlled Entities, Associated Entities or Joint Ventures.

Note 20. Equity - Retained Earnings and Revaluation Reserves

Actual Actual $ '000 Notes 2013 2012

(a) Retained Earnings

Movements in Retained Earnings were as follows: Balance at beginning of Year (from previous years audited accounts) 572,875 571,953 a. Correction of Prior Period Errors 20 (c) - 480 b. Net Operating Result for the Year 18,003 326 c. Transfers between Equity 1,854 116 Balance at End of the Reporting Period 592,732 572,875

(b) Reserves

(i) Reserves are represented by:

- Infrastructure, Property, Plant & Equipment Revaluation Reserve 294,069 245,709 Total 294,069 245,709 (ii) Reconciliation of movements DRAFTin Reserves: Infrastructure, Property, Plant & Equipment Revaluation Reserve - Opening Balance 245,709 245,825 - Revaluations for the year 9(a) 50,303 - - Transfer to Retained Earnings for Asset disposals (1,854) (116) - Correction of Prior Period Errors 20(c) (89) - - Balance at End of Year 294,069 245,709

TOTAL VALUE OF RESERVES 294,069 245,709

(iii) Nature & Purpose of Reserves

Infrastructure, Property, Plant & Equipment Revaluation Reserve - The Infrastructure, Property, Plant & Equipment Revaluation Reserve is used to record increments/decrements of Non Current Asset values due to their revaluation. 161 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 20. Equity - Retained Earnings and Revaluation Reserves (continued)

Actual Actual $ '000 Notes 2013 2012

Correction of errors disclosed in this year's financial statements:

As part of the revaluation of the Building and Operation Land asset class, Council identified one residential unit building (91-93 O'Brien Street) - has been incorrectly recognised as being co-owned by Council. - This resulted in the carrying value for the Non-Specialised Building Asset - Class being over stated. To correct this error the opening balane for - the Infrastructure, Property,Plant & Equipment (IPP&E) asset class - has been decreased. This adjustment has resulted in a descrease to - the opening 1 July 2011 Retained Earnings Balance (89) - - - -

Correction of errors as disclosed in last year's financial statements:

Council identified one residential unit from s94 dedication had not be 480 recognised as being owned by Council. This resulted in the carrying value for the Building-Non-Specialised asset class being under stated. To correct this error the opening balance for the Infrastructure, Property, Plant & Equipment (IPP&E) has been increased. This adjustment has resulted in an increase to the opening 1 July 2010 Retained Earnings Balance. DRAFT In accordance with AASB 108 - Accounting Policies, Changes in Accounting Estimates and Errors, the above Prior Period Errors have been recognised retrospectively.

These amounted to the following Equity Adjustments:

- Adjustments to Opening Equity - 1/7/11 (89) 480 (relating to adjustments for the 30/6/11 reporting year end and prior periods) - Adjustments to Closing Equity - 30/6/12 - - (relating to adjustments for the 30/6/12 year end) Total Prior Period Adjustments - Prior Period Errors (89) 480

(d) Voluntary Changes in Accounting Policies

Council made no voluntary changes in any accounting policies during the year. 162 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 21. Financial Result & Financial Position by Fund

$ '000

Council utilises only a General Fund for its operations.

Note 22. "Held for Sale" Non Current Assets & Disposal Groups

2013 2013 2012 2012 $ '000 Current Non Current Current Non Current

(i) Non Current Assets & Disposal Group Assets

Non Current Assets "Held for Sale" Land 34,685 - 18,240 21,480 Buildings - - - 5,235 Total Non Current Assets "Held for Sale" 34,685 - 18,240 26,715

Disposal Group Assets "Held for Sale" None

TOTAL NON CURRENT ASSETS CLASSIFIED AS "HELD FOR SALE" 34,685 - 18,240 26,715

DRAFTDisposal Groups Assets "Held for Sale" $ '000 2013 2012 2013 2012

(ii) Reconciliation of Non Current Assets "Held for Sale" & Disposal Groups - i.e. Discontinued Operations

Opening Balance - - 44,955 44,955 less: Carrying Value of Assets/Operations Sold - (10,270) - Balance still unsold after 12 months: - - 34,685 44,955 Closing Balance of "Held for Sale" Non Current Assets & Operations - - 34,685 44,955

163 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 23. Events occurring after the Reporting Period

$ '000

Events that occur between the end of the reporting period (ending 30 June 2013) and the date when the financial statements are "authorised for issue" have been taken into account in preparing these statements.

Council has adopted the date of receipt of the Auditors' Report as the applicable "authorised for issue" date relating to these General Purpose Financial Statements.

Accordingly, the "authorised for issue" date is 18/09/13.

Events that occur after the Reporting Period represent one of two types:

(i) Events that provide evidence of conditions that existed at the Reporting Period These financial statements (and the figures therein) incorporate all "adjusting events" that provided evidence of conditions that existed at 30 June 2013.

(ii) Events that provide evidence of conditions that arose after the Reporting Period Note 22 reflects non-current assets (Waverley Depot) held for sale with a carrying amount of $34.685 million. On 3 September 2013 a contract for sale of the Waverley Depot was executed for $82 million (ex GST) with settlement due in December 2014.

Council is unaware of any material or significant "non-adjusting events" that should be disclosed. Note 24. Discontinued OperationsDRAFT Council has not classified any of its Operations as "Discontinued".

Note 25. Intangible Assets

Intangible Assets represent identifiable non-monetary asset without physical substance. Council is unaware of any control over Intangible Assets that warrant recognition in the Financial Statements, including either internally generated and developed assets or purchased assets.

Note 26. Reinstatement, Rehabilitation & Restoration Liabilities

Council has no outstanding obligations to make, restore, rehabilitate or reinstate any of its assets/operations. 164 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 27. Financial Review

$ '000

Key Financial Figures of Council over the past 5 years (consolidated)

Financial Performance Figures 2013 2012 2011 2010 2009

Inflows: Rates & Annual Charges Revenue 47,283 41,608 38,673 36,737 35,715 User Charges Revenue 28,222 25,483 24,610 23,657 21,979 Interest & Investment Revenue (Losses) 2,647 3,054 3,016 2,274 2,368 Grants Income - Operating & Capital 6,972 8,597 7,238 6,238 7,807 Total Income from Continuing Operations 123,125 100,702 93,857 92,437 80,889

Sale Proceeds from I,PP&E 10,815 53 94 1,783 26 New Loan Borrowings & Advances 2,500 - - - -

Outflows: Employee Benefits & On-cost Expenses 50,682 48,500 47,966 46,949 43,416 Borrowing Costs 194 246 327 401 489 Materials & Contracts Expenses 17,301 15,762 16,232 19,188 18,911 Total Expenses from Continuing Operations 105,122 100,376 98,631 91,542 87,798

Total Cash purchases of I,PP&E 22,819 15,855 13,904 10,529 11,777 Total Loan Repayments (incl. Finance Leases) 1,400 1,185 1,345 1,377 1,421

Operating Surplus/(Deficit) (excl. Capital Income) 11,201 (4,588) (9,697) (3,101) (11,181)

Financial Position Figures 2013 2012 2011 2010 2009

Current Assets 88,695 66,129 41,563 42,615 42,865 Current Liabilities DRAFT 33,714 32,254 32,411 30,113 28,550 Net Current Assets 54,981 33,875 9,152 12,502 14,315

Available Working Capital 46,473 26,638 5,503 4,174 4,211 (Unrestricted Net Current Assets)

Cash & Investments - Unrestricted 9,647 6,227 3,041 1,045 300 Cash & Investments - Internal Restrictions 31,790 27,491 32,981 36,245 35,629 Cash & Investments - Total 51,588 43,168 45,356 48,220 48,186

Total Borrowings Outstanding 4,287 3,187 4,372 5,717 7,094 (Loans, Advances & Finance Leases)

Total Value of I,PP&E (excl. Land & Earthworks) 811,780 756,362 742,996 722,347 512,946 Total Accumulated Depreciation 331,883 313,736 297,513 279,719 207,793 Indicative Remaining Useful Life (as a % of GBV) 59% 59% 60% 61% 59%

Source: Published audited financial statements of Council (current year & prior year) 165 Waverley Council

Notes to the Financial Statements for the financial year ended 30 June 2013

Note 28. Council Information & Contact Details

Principal Place of Business: Cnr. Paul St and Bondi Rd Bondi Junction NSW 2022

Contact Details Mailing Address: Opening Hours: PO Box 9 Customer Service Centre Bondi Junction NSW 1355 55 Spring Street, Bondi Junction Monday to Friday 8:30am to 5:00pm

Telephone: 02 9369 8000 Internet: www.waverley.nsw.gov.au Facsimile: 02 9387 1820 Email: [email protected]

Officers Elected Members GENERAL MANAGER MAYOR Anthony Reed Clr Sally Betts

RESPONSIBLE ACCOUNTING OFFICER COUNCILLORS Vanessa Canepa Clr Leon Goltsman Clr Miriam Guttman-Jones PUBLIC OFFICER Clr Joy Clayton Bronwyn Kelly Clr Dominic Wy Kanak Clr John Wakefield AUDITORS Clr Angela Burrill Hill Rogers Spencer Steer, Chartered Accountants Clr Andrew Cusack Clr Paula Masselos Clr Tony Kay DRAFTClr Bill Mouroukas Clr Ingrid Strewe

Other Information ABN: 12 502 583 608

166 DRAFT Waverley Council SPECIAL PURPOSE FINANCIAL STATEMENTS for the year ended 30 June 2013

"We are united by a common passion for our beautiful home between the city and the sea."

167 Waverley Council

Special Purpose Financial Statements for the financial year ended 30 June 2013

Contents Page

1. Statement by Councillors & Management 2

2. Special Purpose Financial Statements:

Income Statement - Water Supply Business Activity n/a Income Statement - Sewerage Business Activity n/a Income Statement - Other Business Activities 3

Statement of Financial Position - Water Supply Business Activity n/a Statement of Financial Position - Sewerage Business Activity n/a Statement of Financial Position - Other Business Activities 5

3. Notes to the Special Purpose Financial Statements 7

4. Auditor's Report 11

Background

(i) These Special Purpose Financial Statements have been prepared for the use by both Council and the Division of Local Government in fulfilling theirDRAFT requirements under National Competition Policy.

(ii) The principle of competitive neutrality is based on the concept of a "level playing field" between persons/entities competing in a market place, particularly between private and public sector competitors.

Essentially, the principle is that government businesses, whether Commonwealth, State or Local, should operate without net competitive advantages over other businesses as a result of their public ownership.

(iii) For Council, the principle of competitive neutrality & public reporting applies only to declared business activities.

These include (a) those activities classified by the Australian Bureau of Statistics as business activities being water supply, sewerage services, abattoirs, gas production and reticulation and (b) those activities with a turnover of over $2 million that Council has formally declared as a Business Activity (defined as Category 1 activities).

(iv) In preparing these financial statements for Council's self classified Category 1 businesses and ABS defined activities, councils must (a) adopt a corporatisation model and (b) apply full cost attribution including tax equivalent regime payments & debt guarantee fees (where the business benefits from councils borrowing position by comparison with commercial rates).

168 Waverley Council

Special Purpose Financial Statements for the financial year ended 30 June 2013

Statement by Councillors and Management made pursuant to the Local Government Code of Accounting Practice and Financial Reporting

The attached Special Purpose Financial Statements have been prepared in accordance with:

 The NSW Government Policy Statement “Application of National Competition Policy to Local Government”.

 The Division of Local Government Guidelines “Pricing & Costing for Council Businesses - A Guide to Competitive Neutrality”.

 The Local Government Code of Accounting Practice and Financial Reporting.

 The NSW Office of Water (Department of Environment, Climate Change and Water) Guidelines - "Best Practice Management of Water and Sewerage".

To the best of our knowledge and belief, these Financial Statements:

 Present fairly the Operating Result and Financial Position for each of Council's declared Business Activities for the year, and

 Accord with Council’s accounting and other records.

We are not aware of any matter that would render these Statements false or misleading in any way.

Signed in accordance with a resolution of Council made on 17 September 2013. DRAFT

Clr Sally Betts MAYOR COUNCILLOR

Anthony Reed Vanessa Canepa GENERAL MANAGER RESPONSIBLE ACCOUNTING OFFICER

169 Waverley Council

Income Statement of Council's Other Business Activities for the financial year ended 30 June 2013

Property Commercial Waste

Category 1 Category 1 Actual Actual Actual Actual $ '000 2013 2012 2013 2012

Income from continuing operations Access charges - - - - User charges 6,113 5,965 2,577 2,004 Fees - - - - Interest - - - - Grants and contributions provided for non capital purposes - - - - Profit from the sale of assets - - - - Other income 12,720 - - - Total income from continuing operations 18,833 5,965 2,577 2,004

Expenses from continuing operations Employee benefits and on-costs 591 627 923 915 Borrowing costs - - - - Materials and contracts 1,008 931 40 43 Depreciation and impairment 49 54 3 3 Loss on sale of assets - - - - Calculated taxation equivalents - - - - Debt guarantee fee (if applicable) - - - - Other expenses 770 849 1,554 838 Total expenses from continuing operations 2,418 2,461 2,520 1,799 Surplus (deficit) from Continuing Operations before capital amounts 16,415 3,504 57 205

Grants and contributions provided for capital purposes - - - - Surplus (deficit) from Continuing Operations after capital amounts 16,415 3,504 57 205

Surplus (deficit) from discontinued operations - - - - Surplus (deficit) from ALL Operations before tax 16,415 3,504 57 205 less: Corporate Taxation Equivalent (30%)DRAFT [based on result before capital] (4,925) (1,051) (17) (62)

SURPLUS (DEFICIT) AFTER TAX 11,491 2,453 40 144 plus Opening Retained Profits 113,190 110,349 77 (18) plus/less: Prior Period Adjustments - - - - plus Adjustments for amounts unpaid: - Taxation equivalent payments - - - - - Debt guarantee fees - - - - - Corporate taxation equivalent 4,925 1,051 17 62 add: - Subsidy Paid/Contribution To Operations 667 - - - less: - TER dividend paid - - - - - Dividend paid - (663) (20) (110) Closing Retained Profits 130,272 113,190 114 77

Return on Capital % n/a 3337.1% 80.3% 247.0% Subsidy from Council - - - -

170 Waverley Council

Income Statement of Council's Other Business Activities for the financial year ended 30 June 2013

Cemetery

0 Category 2 Actual Actual $ '000 2013 2012

Income from continuing operations Access charges - - User charges 1,232 1,178 Fees - - Interest 74 75 Grants and contributions provided for non capital purposes - - Profit from the sale of assets - - Other income 25 30 Total income from continuing operations 1,331 1,283

Expenses from continuing operations Employee benefits and on-costs 614 620 Borrowing costs - - Materials and contracts 377 294 Depreciation and impairment 45 44 Loss on sale of assets - - Calculated taxation equivalents - - Debt guarantee fee (if applicable) - - Other expenses 115 98 Total expenses from continuing operations 1,151 1,056 Surplus (deficit) from Continuing Operations before capital amounts 180 227

Grants and contributions provided for capital purposes - - Surplus (deficit) from Continuing Operations after capital amounts 180 227

Surplus (deficit) from discontinued operations - - Surplus (deficit) from ALL Operations before tax 180 227 less: Corporate Taxation Equivalent (30%)DRAFT [based on result before capital] (54) (68)

SURPLUS (DEFICIT) AFTER TAX 126 159 plus Opening Retained Profits 36,241 36,304 plus/less: Prior Period Adjustments - - plus Adjustments for amounts unpaid: - Taxation equivalent payments - - - Debt guarantee fees - - - Corporate taxation equivalent 54 68 add: - Subsidy Paid/Contribution To Operations - - less: - TER dividend paid - - - Dividend paid (265) (290) Closing Retained Profits 36,156 36,241

Return on Capital % 0.5% 0.7% Subsidy from Council 1,126 829

171 Waverley Council

Statement of Financial Position - Council's Other Business Activities as at 30 June 2013

Property Commercial Waste

Category 1 Category 1 Actual Actual Actual Actual $ '000 2013 2012 2013 2012

ASSETS Current Assets Cash and cash equivalents - - - - Investments - - - - Receivables 50 45 147 140 Inventories - - - - Other - - - - Non-current assets classified as held for sale - - - - Total Current Assets 50 45 147 140

Non-Current Assets Investments - - - - Receivables - - - - Inventories - - - - Infrastructure, property, plant and equipment - 105 71 83 Investments accounted for using equity method - - - - Investment property 130,543 113,291 - - Other - - - - Total Non-Current Assets 130,543 113,396 71 83 TOTAL ASSETS 130,593 113,441 218 223

LIABILITIES Current Liabilities Bank Overdraft - - - - Payables 179 74 47 86 Interest bearing liabilities - - - - Provisions 65 100 57 60 Total Current Liabilities DRAFT 244 174 104 146

Non-Current Liabilities Payables - - - - Interest bearing liabilities - - - - Provisions - - - - Other Liabilities - - - - Total Non-Current Liabilities - - - - TOTAL LIABILITIES 244 174 104 146 NET ASSETS 130,349 113,267 114 77

EQUITY Retained earnings 130,272 113,190 114 77 Revaluation reserves 77 77 - - Council equity interest 130,349 113,267 114 77 Non-controlling equity interest - - - - TOTAL EQUITY 130,349 113,267 114 77 172 Waverley Council

Statement of Financial Position - Council's Other Business Activities as at 30 June 2013

Cemetery

Category 2 Actual Actual $ '000 2013 2012

ASSETS Current Assets Cash and cash equivalents 1,713 1,631 Investments - - Receivables 6 27 Inventories - - Other - - Non-current assets classified as held for sale - - Total Current Assets 1,719 1,658

Non-Current Assets Investments - - Receivables - - Inventories - - Infrastructure, property, plant and equipment 34,636 34,843 Investments accounted for using equity method - - Investment property - - Other - - Total Non-Current Assets 34,636 34,843 TOTAL ASSETS 36,355 36,501

LIABILITIES Current Liabilities Bank Overdraft - - Payables - 16 Interest bearing liabilities - - Provisions 199 244 Total Current Liabilities DRAFT 199 260

Non-Current Liabilities Payables - - Interest bearing liabilities - - Provisions - - Other Liabilities - - Total Non-Current Liabilities - - TOTAL LIABILITIES 199 260 NET ASSETS 36,156 36,241

EQUITY Retained earnings 36,156 36,241 Revaluation reserves - - Council equity interest 36,156 36,241 Non-controlling equity interest - - TOTAL EQUITY 36,156 36,241 173 Waverley Council

Special Purpose Financial Statements for the financial year ended 30 June 2013

Contents of the Notes accompanying the Financial Statements

Note Details Page

1 Summary of Significant Accounting Policies 8

2 Water Supply Business Best Practice Management disclosure requirements n/a

3 Sewerage Business Best Practice Management disclosure requirements n/a

DRAFT

174 These financial statements are a Special Purpose The pricing & costing guidelines outline the process Financial Statements (SPFS) prepared for use by for identifying and allocating costs to activities and Council and the Division of Local Government. provide a standard of disclosure requirements. These disclosures are reflected in Council’s pricing For the purposes of these statements, the Council is and/or financial reporting systems and include not a reporting not-for-profit entity. taxation equivalents; council subsidies; return on investments (rate of return); and dividends paid. The figures presented in these special purpose financial statements, unless otherwise stated, have been prepared in accordance with: Declared Business Activities

. the recognition and measurement criteria of In accordance with Pricing & Costing for Council relevant Australian Accounting Standards, Businesses - A Guide to Competitive Neutrality, Council has declared that the following are to be . other authoritative pronouncements of the considered as business activities: Australian Accounting Standards Board (AASB) &

. Australian Accounting Interpretations. Category 1

(where gross operating turnover is over $2 million) The disclosures in these special purpose financial statements have been prepared in accordance with: a. Waverley Council Property Services

. the Local Government Act and Regulation, and Comprising the whole of the operations and assets of the property services, commercial . the Local Government Code of Accounting properties controlled by Waverley Council. Practice and Financial Reporting.

b. Waverley Council Trade Waste Services The statements are also prepared on an accruals basis, based on historic costs and do not take into Comprising the whole of the operations and account changing money values nor current values assets of the commercial waste services which of non-current assets (except where specifically service the area of Waverley. stated). This service collects and disposes of waste Certain taxes and other costs (appropriately collected from commercial premises. described) have been imputed for the purposes of the National Competition Policy. DRAFTCategory 2

(where gross operating turnover is less than $2 million) National Competition Policy

a. Waverley & South Head Cemeteries Council has adopted the principle of ‘competitive neutrality’ to its business activities as part of the Comprising the whole of the operations and national competition policy which is being applied assets of both the Waverley & South Head throughout Australia at all levels of government. Cemeteries.

The framework for its application is set out in the This business operates from offices located at June 1996 Government Policy statement on the Waverley Cemetery dealing with maintenance, “Application of National Competition Policy to Local sales and burials. Government”.

The “Pricing & Costing for Council Businesses A Monetary Amounts Guide to Competitive Neutrality” issued by the Division of Local Government in July 1997 has also Amounts shown in the financial statements are in been adopted. Australian currency and rounded to the nearest one thousand dollars. 175 (i) Taxation Equivalent Charges Income Tax is only applied where a positive gain/(loss) from ordinary activities before capital Council is liable to pay various taxes and financial amounts has been achieved. duties in undertaking its business activities. Where this is the case, they are disclosed in these Since this taxation equivalent is notional - that is, it is statements as a cost of operations just like all other payable to the “Council” as the owner of business costs. operations, it represents an internal payment and has no effect on the operations of the council. However, where Council is exempt from paying taxes Accordingly, there is no need for disclosure of which are generally paid by private sector internal charges in Council's General Purpose businesses (such as income tax), equivalent tax Financial Statements. payments have been applied to all Council nominated business activities and are reflected in The rate applied of 30% is the equivalent company these financial statements. tax rate prevalent as at balance date.

For the purposes of disclosing comparative Local Government Rates & Charges information relevant to the private sector equivalent, the following taxation equivalents have been applied A calculation of the equivalent rates and charges to all council nominated business activities (this does payable on all Category 1 businesses has been not include council’s non-business activities): applied to all land assets owned or exclusively used by the Business Activity. Notional Rate Applied %

Corporate Income Tax Rate – 30% Loan & Debt Guarantee Fees

Land Tax – The first $406,000 of combined land The debt guarantee fee is designed to ensure that values attracts 0%. From $406,001 to $2,482,000 the council business activities face “true” commercial rate is 1.6% + $100. For the remaining combined borrowing costs in line with private sector land value that exceeds $2,482,000, a premium competitors. marginal rate of 2.0% applies. In order to calculate a debt guarantee fee, council Payroll Tax – 5.45% on the value of taxable salaries has determined what the differential borrowing rate and wages in excess of $689,000. would have been between the commercial rate and the council’s borrowing rate for its business activities. DRAFT Income Tax (ii) Subsidies An income tax equivalent has been applied on the profits of each reported Business Activity. Government policy requires that subsidies provided to customers and the funding of those subsidies Whilst income tax is not a specific cost for the must be explicitly disclosed. purpose of pricing a good or service, it needs to be taken into account of in terms of assessing the rate Subsidies occur where council provides services on of return required on capital invested. a less than cost recovery basis. This option is exercised on a range of services in order for council Accordingly, the return on capital invested is set at a to meet its community service obligations. pre-tax level (gain/(loss) from ordinary activities before capital amounts) as would be applied by a Accordingly, Subsidies disclosed (in relation to private sector competitor – that is, it should include a National Competition Policy) represents the provision equivalent to the corporate income tax rate, difference between revenue generated from ‘rate of currently 30%. return’ pricing and revenue generated from prices set by the council in any given financial year.

176 The overall effect of subsidies is contained within the Income Statement of each reported Business Activity.

(iii) Return on Investments (Rate of Return)

The Policy statement requires that councils with Category 1 businesses “would be expected to generate a return on capital funds employed that is comparable to rates of return for private businesses operating in a similar field”.

Such funds are subsequently available for meeting commitments or financing future investment strategies.

The Rate of Return on Capital is calculated as follows:

Operating Result before Capital Income + Interest Expense

Written Down Value of I,PP&E as at 30 June

As a minimum, business activities should generate a return equal to the Commonwealth 10 year bond rate which is 3.77% at 30/6/13.

The actual rate of return achieved by each Business Activity is disclosed at the foot of each respective Income Statement. DRAFT

(iv) Dividends

Council is not required to pay dividends to either itself (as owner of a range of businesses) or to any external entities.

177 DRAFT Waverley Council SPECIAL SCHEDULES for the year ended 30 June 2013

"We are united by a common passion for our beautiful home between the city and the sea."

178 Waverley Council

Special Schedules for the financial year ended 30 June 2013

Contents Page

Special Schedules1

- Special Schedule No. 1 Net Cost of Services 2

- Special Schedule No. 2(a) Statement of Long Term Debt (all purposes) 4 - Special Schedule No. 2(b) Statement of Internal Loans (Sect. 410(3) LGA 1993) 5

- Special Schedule No. 3 Water Supply - Income Statement n/a - Special Schedule No. 4 Water Supply - Statement of Financial Position n/a

- Special Schedule No. 5 Sewerage Service - Income Statement n/a - Special Schedule No. 6 Sewerage Service - Statement of Financial Position n/a

- Notes to Special Schedules No. 3 & 5 n/a

- Special Schedule No. 7 Condition of Public Works 6

- Special Schedule No. 8 Financial Projections 8

1 Special Purpose Schedules are notDRAFT audited. Background

(i) These Special Schedules have been designed to meet the requirements of special purpose users such as;

 the NSW Grants Commission  the Australian Bureau of Statistics (ABS),  the NSW Office of Water,  the Department of Environment, Climate Change and Water, and  the Division of Local Government (DLG).

(ii) The financial data is collected for various uses including;

 the allocation of Financial Assistance Grants,  the incorporation of Local Government financial figures in national statistics,  the monitoring of loan approvals,  the allocation of borrowing rights, and  the monitoring of the financial activities of specific services.

179 Waverley Council

Special Schedule No. 1 - Net Cost of Services for the financial year ended 30 June 2013

$'000 Expenses from. Income from Net Cost. Function or Activity Continuing. continuing operations of Services. Operations. Non Capital. Capital.

Governance - - - -

Administration 9,488 7,093 - (2,395)

Public Order and Safety Fire Service Levy, Fire Protection, Emergency Services 1,836 226 - (1,610) Beach Control 3,236 484 - (2,752) Enforcement of Local Govt. Regulations 1,562 2,715 - 1,153 Animal Control 84 41 - (43) Other - - - - Total Public Order & Safety 6,718 3,466 - (3,252)

Health 1,190 278 - (912)

Environment Noxious Plants and Insect/Vermin Control - - - - Other Environmental Protection 2,090 72 - (2,018) Solid Waste Management 14,015 16,276 - 2,261 Street Cleaning 3,387 - - (3,387) Drainage 2,185 7 - (2,178) Stormwater Management 6 - - (6) Total Environment 21,683 16,355 - (5,328)

Community Services and Education Administration & Education 1,971 44 - (1,927) Social Protection (Welfare) 125 3 - (122) Aged Persons and Disabled 1,658 1,134 - (524) Children's Services 7,111 5,519 165 (1,427) Total Community Services & Education 10,865 6,700 165 (4,000)

Housing and Community Amenities DRAFT Public Cemeteries 1,148 1,329 - 181 Public Conveniences 103 - - (103) Street Lighting 1,127 172 - (955) Town Planning 5,320 - 5,513 193 Other Community Amenities 285 1 - (284) Total Housing and Community Amenities 7,983 1,502 5,513 (968)

Water Supplies - - - -

Sewerage Services - - - -

180 Waverley Council

Special Schedule No. 1 - Net Cost of Services (continued) for the financial year ended 30 June 2013

$'000 Expenses from. Income from Net Cost. Function or Activity Continuing. continuing operations of Services. Operations. Non Capital. Capital.

Recreation and Culture Public Libraries 4,936 267 - (4,669) Museums - - - - Art Galleries 1 - - (1) Community Centres and Halls 106 41 - (65) Performing Arts Venues - - - - Other Performing Arts - - - - Other Cultural Services 4,017 620 - (3,397) Sporting Grounds and Venues 1,431 211 - (1,220) Swimming Pools 156 - - (156) Parks & Gardens (Lakes) 7,538 286 - (7,252) Other Sport and Recreation 772 224 - (548) Total Recreation and Culture 18,957 1,649 - (17,308)

Fuel & Energy - - - -

Agriculture - - - -

Mining, Manufacturing and Construction Building Control 697 180 - (517)

Other Mining, Manufacturing & Construction - - - - Total Mining, Manufacturing and Const. 697 180 - (517)

Transport and Communication Urban Roads (UR) - Local 9,689 1,064 1,124 (7,501) Urban Roads - Regional - - - - Sealed Rural Roads (SRR) - Local 3 40 - 37 Sealed Rural Roads (SRR) - Regional - - - - Unsealed Rural Roads (URR) - Local - - - - Unsealed Rural Roads (URR) - Regional - - - - Bridges on UR - Local - - - - Bridges on SRR - Local - - - - Bridges on URR - Local DRAFT - - - - Bridges on Regional Roads - - - - Parking Areas 11,451 24,632 - 13,181 Footpaths 4,818 1 - (4,817) Aerodromes - - - - Other Transport & Communication 269 11,219 - 10,950 Total Transport and Communication 26,230 36,956 1,124 11,850

Economic Affairs Camping Areas & Caravan Parks - - - - Other Economic Affairs 1,311 3,115 - 1,804 Total Economic Affairs 1,311 3,115 - 1,804 Totals – Functions 105,122 77,294 6,802 (21,026) General Purpose Revenues(2) 39,029 39,029 Share of interests - joint ventures & associates using the equity method - - - (1) NET OPERATING RESULT 105,122 116,323 6,802 18,003

(1) As reported in the Income Statement (2) Includes: Rates & Annual Charges (incl. Ex Gratia, excl. Water & Sewer), Non Capital General Purpose Grants, Interest on Investments (excl. Ext. Restricted Assets) & Interest on overdue Rates & Annual Charges 181 Waverley Council

Special Schedule No. 2(a) - Statement of Long Term Debt (all purpose) for the financial year ended 30 June 2013

$'000 Principal outstanding New Debt redemption Principal outstanding at beginning of the year Loans during the year Transfers Interest at the end of the year raised to Sinking applicable Non From Sinking Non Current Total during Funds for Year Current Total Classification of Debt Current the year Revenue Funds Current

Loans (by Source) Commonwealth Government ------Treasury Corporation ------Other State Government ------Public Subscription ------Financial Institutions 1,289 1,880 3,169 2,500 1,400 - - 188 1,252 3,017 4,269 Other - 18 18 ------18 18 Total Loans 1,289 1,898 3,187 2,500 1,400 - - 188 1,252 3,035 4,287

Other Long Term Debt Ratepayers Advances ------Government Advances ------Finance Leases ------Deferred Payments ------Total Long Term Debt - - DRAFT ------Special Schedules2013 Total Debt 1,289 1,898 3,187 2,500 1,400 - - 188 1,252 3,035 4,287

Notes: Excludes (i) Internal Loans & (ii) Principal Inflows/Outflows relating to Loan Re-Financing.

page 4 This Schedule is prepared using the face value of debt obligations, rather than fair value (which are reported in the GPFS). 182 Waverley Council

Special Schedule No. 2(b) - Statement of Internal Loans [Section 410(3) LGA 1993] for the financial year ended 30 June 2013

$'000

Summary of Internal Loans

Total repaid during the year Principal Outstanding Borrower (by purpose) Amount originally raised (Principal & Interest) at end of year

General 2,035 263 1,726 Water Sewer Domestic Waste Management Gas Other

Totals 2,035 263 1,726

Note: The summary of Internal Loans (above) represents the total of Council's Internal Loans categorised according to the borrower.

Details of Individual Internal Loans Date of DRAFT Amount Total repaid Principal Borrower Lender Minister's Date Raised Term Dates of Rate of Originally during year Outstanding (by purpose) (by purpose) Approval (years) Maturity Interest raised (Princ. & Int.) at end of year

General Fund Domestic 12/01/11 30/06/11 10 30/06/21 4.83% 692 103 551 Special Schedules2013 Waste Management 12/01/11 30/11/11 10 30/11/21 4.88% 677 83 566

12/01/11 30/11/12 10 30/11/22 3.22% 666 77 609 page 5 Totals 2,035 263 1,726 183 Waverley Council

Special Schedule No. 7 - Condition of Public Works as at 30 June 2013

$'000 Estimated Dep'n. Dep'n Accum. cost to Depreciation Rate Expense Carrying bring up to a Required(2) Current(3) Amortisation (%) ($) Amount Asset satisfactory Annual Annual & #. Cost Valuation Impairment (WDV) Condition condition / Maintenance Maintenance ASSET CLASS Asset Category standard (1) per Note 1 per Note 4 <<<<<<<<<<<< per Note 9 >>>>>>>>>>>> Buildings Council Offices 1.67% 589 21,870 10,191 11,679 1 329 203 224 Council Works Depot 1.67% 14 376 167 209 4 467 55 59 Council Halls 1.67% 2,535 73,767 34,837 38,930 4 3,586 1,268 283 Council Houses 1.67% 767 40,193 10,591 29,602 2 435 153 125 Library 1.67% 847 45,178 15,107 30,071 1 546 211 223 Childcare Centre(s) 1.67% 188 11,557 3,453 8,104 1 217 424 253 Amenities/Toilets 1.67% 430 17,821 9,838 7,983 4 88 27 40 Commercial 1.67% 14 1,220 292 928 2 1,925 58 58 sub total 5,384 - 211,982 84,476 127,506 7,593 2,399 1,265

Other Structures Assets not included in Buildings 4.35% 458 29,067 13,260 15,807 - - - - sub total 458 - 29,067 13,260 15,807 - - -

Public Roads Sealed Roads 1.30% 1,323 69,704 23,352 46,352 2 1,263 1,263 1,930 Sealed Roads Structure 1.64% DRAFT 1,226 141,580 74,155 67,425 2 - - - Footpaths 2.40% 1,500 50,483 16,407 34,076 2 975 975 2,221 Kerb and Gutter 1.04% 840 80,306 26,521 53,785 2 - - -

Road Furniture 16.10% 1,725 78,680 34,696 43,984 2 128 128 10 Special Schedules2013 sub total 6,614 - 420,753 175,131 245,622 2,366 2,366 4,161 page 6 184 Waverley Council

Special Schedule No. 7 - Condition of Public Works (continued) as at 30 June 2013

TOTAL - ALL ASSETS 13,573 - 773,321 311,155 462,166 10,984 5,790 6,355

Notes: (1). Satisfactory refers to estimated cost to bring the asset to a satisfactory condition as deemed by Council. It does not include any planned enhancements to the existing asset. (2). Required Annual Maintenance is what should be spent to maintain assets in a satisfactory standard. (3). Current Annual Maintenance is what has been spent in the current year to maintain assets.

# Asset Condition "Key" - as per the DLG Integrated Planning & Reporting Manual

1 Excellent - No work required (normal maintenance)

2 Good - Only minor maintenance work required

3 Average - Maintenance work required 4 Poor - Renewal required DRAFT 5 Very Poor - Urgent renewal/upgrading required Special Schedules2013 page 7 185 Waverley Council

Special Schedule No. 8 - Financial Projections as at 30 June 2013

Actual(1) Forecast(3) Forecast(3) Forecast(3) Forecast(3) Forecast(3) Forecast(3) Forecast(3) Forecast(3) Forecast(3) Forecast(3) $'000 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23

(i) OPERATING BUDGET Income from continuing operations 123,125 157,490 118,242 124,956 125,281 132,120 137,376 139,982 146,007 150,701 154,590 Expenses from continuing operations 105,122 111,962 115,846 116,880 121,469 124,913 129,190 133,055 137,530 141,034 145,031

Operating Result from Continuing Operations 18,003 45,528 2,396 8,076 3,812 7,207 8,186 6,927 8,477 9,667 9,559

(ii) CAPITAL BUDGET New Capital Works (2) - 17,885 11,682 11,318 1,327 3,735 4,444 2,504 7,463 673 2,833 Replacement/Refurbishment of Existing Assets - 19,314 15,774 17,120 10,593 23,489 16,004 20,772 19,253 19,300 17,908 Total Capital Budget - 37,199 27,456 28,438 11,920 27,224 20,448 23,276 26,716 19,973 20,741

Funded by: – Loans - 4,710 4,500 3,100 - 2,148 - - - - - – Asset sales - 13,700 426 505 158 1,105 358 250 1,206 855 323 – Reserves - 8,395 10,707 2,003 595 12,129 1,618 5,370 7,916 2,216 1,119 – Grants/Contributions - 2,264 2,481 5,541 2,387 2,112 4,168 2,226 2,285 2,346 2,409 – Recurrent revenue - DRAFT 8,130 9,342 17,289 8,780 9,730 14,304 15,430 15,309 14,556 16,890 – Other ------37,199 27,456 28,438 11,920 27,224 20,448 23,276 26,716 19,973 20,741 Special Schedules2013

Notes: (1) From 12/13 Income Statement. (2) New Capital Works are major non-recurrent projects, eg new Leisure Centre, new Library, new Swimming pool etc.

page 8 (3) Financial projections should be in accordance with Council’s Integrated Planning and Reporting framework. 186 Waverley Council Cnr Paul Street & Bondi Road BondiDRAFT Junction PO Box 9 Bondi Junction 1355 DX 12006 Bondi Junction Email [email protected] Web www.waverley.nsw.gov.au

Telephone Enquiries General business 9369 8000 General fax 9387 1820 TTY for hearing impaired 9389 9827 After hours emergencies 9369 8000

Your call will be directed to the appropriate area. 187

REPORT TO COUNCIL

Venue hire - Expression of Interest (EOI) process. (A13/0273)

Recommendation: That Council approve the introduction of an annual EOI process for regular hirers of Waverley Council indoor venues.

Purpose of Report

The purpose of this report is to outline the rationale for the proposed introduction of an EOI process for regular hirers of Council’s indoor venues.

Background / Introduction

Waverley Council provides a range of venues that are available for hire by the local community, cultural organisations, businesses and private individuals. The facilities are suitable for a wide variety of different activities including meetings, workshops, classes, exhibitions, recreation activities, weddings, seminars, corporate presentations, Bar Mitzvahs/Bat Mitzvahs and children's birthday parties.

The Council’s suite of venues includes the Bondi Pavilion, Waverley Pavilion, Waverley Library, the Mill Hill Centre, the School of Arts and Wairoa, Kimberley and Thomas Hogan Reserve Community Halls. The hiring of these venues provides valuable amenity to the community while also generating significant revenue for Council.

The majority of Council venues are available for both regular and casual hire. In this context regular hire is defined as an individual or group that utilises a venue for more than 10 bookings in a calendar year on an ongoing basis. Casual hire is defined as bookings of 10 or less occasions in a calendar year or “one off” bookings.

There are currently 105 groups who have regular hire booking agreements across Councils venues. Graph 1. indicates how these current regular hirers of Council venues are distributed across current fee levels.

Graph 1. Current regular hirers by fee level

No. of groups

Commercial 47

Community / Non for profit 31

Free of charge / reduced fee 27

0 5 10 15 20 25 30 35 40 45 50

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Commercial groups are individual sole traders or businesses who charge for attendance at their activity e.g Bondi Dance Company, Zumba Australia.

Community or Non for Profit groups are individuals or organisations that charge no entry or that are registered as Non for Profit organisations e.g Eastern Suburbs Poetry group.

Free or Charge or reduced fee groups are Council supported community service groups such as NSW Russian War Veterans, drug and alcohol support groups, IDEAS disability group etc.

Context

As part of Council’s ongoing commitment to customer service an internal report was commissioned in March 2013 to review venue hire service, with a focus on the customer experience. The review included interviews with key internal stakeholders including one or more staff members from BSP, Finance, Bondi Pavilion, Library, Mill Hill Administration, Waverley Pavilion and Customer Service. There was also some benchmarking done with neighbouring Councils. Process mapping of four different customer scenarios was undertaken. The objectives of this review were to:

 Describe the customers’ experience and journey when hiring a venue from Waverley Council.  Identify where the venue hire service can be delivered more efficiently and effectively for both the customer and Council.  Recommend improvements to Council’s venue hire services.

Out of this review a number of recommendations were made aimed at improving the customers’ experience when hiring Councils’ venues.

An implementation project was commenced in August 2013. In summary the scope of the project is to include:

1. Improved online information and functionality to improve the customer experience. To include an expanded and updated venue hire web page, an online venue availability module and an online inquiry form. 2. Consistent and effective booking system processes. To include the standardisation of booking and payment processes. 3. Annual EOI process for long term (regular hire) bookings. 4. Review fee levels and descriptors. 5. Establish ongoing monitoring and review process of venue hire service.

It is intended that the implementation project will take approximately six months to complete.

The implementation of an Annual EOI process for regular hire bookings is seen as a priority outcome from the project and is the focus of this report.

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Analysis

Review of current regular hire booking process

The six current venue hire sites within council all operate a different approach to managing regular bookings.

Some of the sites have written guidelines to manage regular hirers and their requests; others do not. Similarly, some of the sites rely on custom and practice and others use a case by case approach to manage regular hires with ongoing yearly requests.

The absence of guidelines and clear information about the management of regular hires may create a perception of inequity and lack of transparency in councils’ allocation of resource to the community.

For example Bondi Pavilion and the Library (School of Arts) operate a custom and practice system. The hirer enters into a venue hire agreement with Council with no specified end date. This may lead to a perception that the hirer is able to continue the booking indefinitely.

For the Bondi Pavilion, the person and/or or organisation who is unable to secure a venue are placed on a waiting list. There is no clear process for how this waiting list is managed.

Some of the existing regular hire groups have continued the same booking over many years. Often these groups have bookings during “peak periods”, i.e. after 5pm on weekdays and daytime on weekends. New groups are therefore excluded from being able to hire Council venues during these periods due to the “ongoing” nature of these existing bookings.

The Waverley Pavilion is the only Council venue currently operating an annual EOI process for the use of its facilities. It is recommended that such a process be introduced across all other Council venues that accept regular hirers.

It is anticipated that some existing hirers may have concerns about the introduction of an EOI process. Council staff will provide support and assistance throughout the period in which the process is introduced.

It is anticipated that Council venues have existing capacity that means it will be able to accommodate the large majority of submissions it receives through the EOI process.

Benefits of an EOI process

The introduction of an EOI process will allow an open and transparent process ensuring fair access and equity within the hiring of Councils community facilities. The opportunity should exist for all community members as individuals or groups to access Council facilities.

The introduction of an EOI process will allow Council staff to program a variety of community groups to deliver a wide variety of activities that benefit people of all ages, backgrounds, levels of interest and skills in line with Councils Delivery Plan.

Council will be able to ensure that the activities programmed are suitable and meet the primary intended use of each facility.

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It is important to make clear that all Council venues will continue to accept casual, ad hoc bookings on an ongoing basis throughout the calendar year.

Fee review

A review of current fee levels is also planned as part of the Venue hire review implementation project. This will involve the bench marking of current fee levels against comparable facilities both across Waverley venues and against comparable venues in other council areas.

It has already been identified through the Venue hire service review that in a few cases, inequities exist in the current fee levels of similar council facilities. Two particular examples are the fee levels at the School of Arts building and for Children’s Parties across all venues. It is intended that the fee levels will be standardised or made consistent for similar facilities as part of the implementation project.

These changes may lead to a significant readjustment in fees for a small number of venues.

A report will be brought to Council late 2013/ early 2014 with proposed changes to venue hire fees. Any approved changes will be adopted in the Pricing Policy Fees and Charges 2014-15 and will take effect from 1 July 2014.

Criteria for assessing regular hire applications.

It is recommended that Venue hire allocations continue to be made by Council staff. An assessment panel will be created who will consider all applications against the following criteria.

 Is the activity aligned with Council’s Waverley Together 3 Community Strategic Plan along with other planning documents and Council priorities?  Is the group based in Waverley and what proportion of participants live in the Waverley LGA?  Does the activity meet the primary goals of the requested venue? e.g. Recreation, Arts activities.  Does the activity encourage participation by Waverley residents, including residents of diverse backgrounds and ages?

 Financial Introduction of an Annual EOI process for indoor venue hire should not directly cost Council any funds, and may potentially lead to an increase in income.

The review of indoor venue hire fees will impact income but this will be the subject of a separate report to Council in late 2013/early 2014.

 Delivery Program/Operational Plan

The introduction of an annual EOI process will assist in delivering the following Delivery Program strategies:

C2a Provide a broad range of relevant, affordable and accessible facilities, spaces, programs and activities that promote harmony, respect and togetherness

 Affordable and accessible community facilities

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 A coordinated program of social, recreational and cultural events targeting diverse groups  Arrange of venue hire places for and accessible to the local community and corporate sector

C6 Enrich the community’s cultural life and support lifelong learning through a variety of cultural events and activities, balancing the needs of residents and visitors.

C7b Recreation opportunities provided in response to community needs

The Venue hire review which lead to the recommendation to introduce an EOI process is a direct action outlined in the Operational Plan 2013-14 which states: “Undertake a review of hiring arrangements for Council indoor venues”

Consultation

If approval is received then all existing groups will be contacted immediately to inform them of council’s intent to introduce an EOI process for regular hire. An information and procedures document has been prepared to inform all existing hirers of the new process. A specific phone number and email address will be created for groups to obtain information relating to the process. Information sessions will be held for existing groups if required.

Timeframe

Following approval of the introduction of an EOI process the following timeframe will be followed.  Existing hirers to be notified of the introduction of an EOI process as soon as possible following council approval and offered assistance.  The proposed EOI application period will run from Monday 30 September to Friday 25 October 2013.  EOI process along with the relevant contact information to be advertised in the local press and through other means.  All applications will be assessed and applicants advised of the outcome of their applications by mid to late November.  Venue hire agreements will be in place with all regular hirers prior to the start of the agreement period on 1 January, 2014  A report on the venue hire fee review will be brought to Council late 2013 / early 2014.

Recommendation: That Council approve the introduction of an annual EOI process for regular hire of Waverley Council indoor venues.

Cathy Henderson Director, Customer and Recreation Services

Author: Andrew Best, Facility Coordinator, Waverley Pavilion

192

REPORT TO COUNCIL

Renewal of membership to the Community Safety Advisory Committee (A03/0544-03)

Report dated 5 September 2013 from the Director, Community and Recreation Services about renewal of membership of the Community Safety Advisory Committee for the Committee’s third two year term.

Recommendation: That Council endorses Precinct and Community representatives for a two year term on the Community Safety Advisory Committee as follows: . Peter Lynch and Peter Quartly - Combined Precincts representatives . Ron Nothman and Ludovico Fabiano - Community representatives . WAYS Youth Services - Youth organisation.

Purpose of Report

This Report describes the actions taken to renew membership of Council's Community Safety Advisory Committee for 2013-15, and seeks endorsement of Precinct and Community representatives following the recruitment processes specified in the Committee's Charter.

Background / Introduction At its meeting of 18 June 2013, Council endorsed a revised Charter for its Community Safety Advisory Committee. According to the newly endorsed Charter, Committee membership for its next term should include: . The Mayor or Mayor’s nominee and two Councillors, appointed by Council . A Representative of the Eastern Suburbs Local Area Police Command, nominated by the Police . A representative of the Rose Bay Local Area Police Command, nominated by the Police . A representative from the Chamber of Commerce, nominated by the Chamber of Commerce . A Representative from a relevant youth organisation, WAYS Youth Service is proposed . Two representatives from the Combined Precincts Committee, elected at a Combined Precincts Meeting . Two Community Representatives, appointed by Council following a public recruitment campaign.

Following Council's endorsement of the revised Charter, existing Committee members were advised of the intention to renew the Committee's membership. The Combined Precincts Group was invited to hold an election for representatives at its meeting of 10 July 2013. An invitation to community members to nominate for the two community representative positions, in addition to the Combined Precincts positions, was placed in the Wentworth Courier 24 July edition, with a closing date of 7 August 2013. The invitation to nominate was also placed on Council's web site, and extended via various email networks.

At the Combined Precincts Meeting Peter Lynch and Peter Quartly were elected to the two Combined Precincts positions available. Two expressions of interest were received for the community positions, from Ron Nothman and Ludovico Fabiano. As the number of

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REPORT TO COUNCIL

expressions of interest matched the number of positions available, no selection panel was convened. Council's endorsement of the nominees for Precinct and Community representatives, as required in its Charter (2013), is sought.

Analysis

 Financial There are no financial implications of adopting the recommendation made in this report.

 Delivery Program/Operational Plan Council’s Operational Plan requires the Divisional Manager Recreation and Community Planning to maintain and facilitate regular meetings of Council’s Community Safety Advisory Committee.

 Consultation Members of the Community Safety Advisory Committee were surveyed in December 2012, prior to revision and update of the Committee's Charter. The revised Charter was endorsed by Council at its meeting of 18 June 2013.

Timeframe Regular Committee meetings have continued during implementation of the process described in this report. The recommendation can be implemented immediately.

Cathy Henderson Director: Community and Recreation Services Author: Alexandra Kiel, Community Safety Development Officer, RCP

194 REPORT TO COUNCIL

Classification of Council Land in Tamarama Park (A05/1644)

Report dated 6 September 2013 from the Director, Corporate and Technical Services, about classification of land in Tamarama Park.

Recommendation: That Council resolves to rectify Council’s land register to reflect the proper classification of the land formerly Old Systems title Book 2662 No. 576 and now being Lot 11 DP 1153342 which adjoins Tamarama Park and is close to Illawong Avenue as indicated on the attached diagram) as ‘community land’ in accordance with the provisions of the Local Government Act 1993.

Purpose of Report

This report deals with the classification under the Local Government Act 1993 (LG Act) of Council land in Tamarama Park, and specifically the land contained in folio 11/1153342 (Subject Land) being a qualified title issued under the Real Property Act 1900.

Background

The Subject Land was acquired in 1963 from the estate of the late Marianne Fletcher with Council papers of the time reflecting it was acquired for addition to Tamarama Park. That conveyance was registered as Old Systems Title Book 2662 No. 576. In 2010, the Land & Property Information (LPI) issued a qualified title, under the Real Property Act 1900, folio 11/1153342 for the Subject Land.

Classification of public land

At the time of its commencement in 1993, the LG Act required all councils to classify their land holdings as either ‘community land’ or ‘operational land’. On 28 June 1994 (1994 Resolution), for reasons which are not clear, Council purported to classify part of Tamarama Park, being the Subject Land as ‘operational land’ and noted this classification in its register. At that time, that the Subject Land was also zoned under the LEP as ‘open space’.

Despite the above, Council has for all intents and purposes been managing Tamarama Park as though it were ‘community land’ and in June 2007 adopted a document entitled “Tamarama Park Plan of Management”.

Comment

Council has obtained legal advice from Norton Rose Fulbright by letter dated 29 August 2013 (enclosed) which:

1. identifies certain provisions of the LG Act which relevantly deemed that all public land zoned ‘open space’ was automatically classified as ‘community land’ upon the commencement of the LG Act in 1993; and 2. confirms that despite the entry in Council’s land register, the whole of Tamarama Park is properly classified as ‘community land’ and has properly held such a classification since the commencement of the LG Act in 1993.

Accordingly, Council’s legal advice indicates that Council had acted without power in purporting to classify the Subject Land as ‘operational land’ in 1994 and it should have been recorded in Council’s land register as ‘community land’. Council’s legal advice recommends that the error in Council’s register be rectified.

195 REPORT TO COUNCIL

Analysis

 Financial:: NA  Delivery Program: Accords with the Delivery Program 2013-2017 direction of C7A “Retain, protect and improve the quality, flexibility and usability of parks, reserves and other green spaces to meet recreational needs, whilst considering and ameliorating any negative environmental impacts.”  Consultation: NA  Timing: Council’s land register will be updated following Council approval and the LPI notified.

Bronwyn Kelly Director Corporate and Technical Services, (Author Greg Worner)

196 A NORTON ROSE FULBRIGHT

29 August 2013 Norton Rose Fulbright Australia ABN 32 720 868 049 Level18, Grosvenor Place Email: Gre W@waverIe .nsw. ovau 225 George Street SYDNEY NSW 2000 AUSTRALIA

Tel +61 2 9330 8000 Attention: Greg Worner- Manager Business, Services & Fax +61 2 9330 8111 Properly Division GPO Box3872, Sydney NSW 2001 DX 368 Sydney norionrosefulbright. coin The General Manager Direct line WaverIey Council +61 2 9330 8568 DX 12006 Bondi Junction Email matthew. barry@norionroseiulbright. coin Your reference: Our reference: 2755647

Dear Sir

Advice concerning the proper classification of Tamarama Park under the Local Government Act 1993

We have been requested by Mr Worner, Manager Business, Services & Property Division to provide legal advice on the proper classification of land known as Tamarama Park, under the LocaleovemmentAct1993 (NSW)(LG Act).

Background

I .I We are instructed that Council owns and/oris the trustee of a number of land parcels atTamarama NSW, which together are known as Tamarama Park. Some parcels are the subject of reserve trusts under the Crown Lands Act1989 (NSW)(CL Act), whilst other parcels have been resumed or acquired by Council.

I .2 Forthe purposes of this advice, those parts of Tamarama Park which:

(1) are the subject of the reserve trust(s) under the CL Act;

(2) have beenformally dedicated as a public park; and

(3) are properly recorded incouncil'SIand register,

are notrelevant to our recommendations, and accordingly references to Tamarama Park within this advice only focus on those parts of Tamarama Park omitted from Council's land register or which have been recorded as 'operational land'.

1.3 We are also instructed that:

(I ) on 28 June 1994, Council purported to classify numerous parcels of public land as either 'community land' or 'operational land' under the LG Act (, 994 Resolution). Relevantly, Councilresolved to classify part of Tamarama Park as 'operational land'. A copy of the 1994 Resolution, and the relevant extract of the register as of that date, are enclosed;

(2) since that time, Council's internal register has identified part of Tamarama Park as 'operational land'; and

APAC-#19953596-v2

Norton Rose FUbrighl AUSlralia is a law firm as defined in the Legal Profession ACis of Ihe AUSlralian slates and territory in Milch it practises. Norton Rose FulbrlqhlAuslralia. Norton Rose FulbrlghlLLP, Norton Rose FulbrighlCanada LLP. Norton Rose Fulbright South Africa jincorporale, as Deneys Reitz Incl and Fulbrighl& Jaworski LLP, each Dimich is a separate legal entity. are members of Norton Rose FulbrighlVerein. a Swiss Verein. Details of each entity. with certain regulatory information. are at norionrosefulb, ight. coin. Norton Rose FulbrighlVerein helps coordinate the activities oilhe members but does noii!self provide197 legal services to clients' A 29 August 2013 NORTON ROSE FULBRIGHT

(3) despite the above, Council has for allintents and purposes been managing Tamarama Park as though it were 'community land'in accordance with the provisions of Part 2 of Chapter 6 of the LG Act. In particular, Council adopted in June 2007 a document entitled 'Tamarama ParkPlan of Management:

2 Advice

2.1 Council has requested we provide advice on whether:

(1) those parts of Tamarama Park omitted from the land register or which have been recorded as 'operational land' are properly to be regarded as 'community land' or 'operational land' under Part 2 of Chapter 6 of the LG Act; and

(2) thereareerrorsinCouncil'SIandregister.

2.2 Our view is that:

(1) the 1994 Resolution properly classified those parts ofTamarama Park which:

(a) are the subject of the reserve trust(s) under the CL Act; (b) havebeenformallydedicatedasapublicpark,

as 'community land'.

(2) with respectto the land omitted from the 1994 Resolution and Council's land register being the land resumed by Council on 29 July 1955, that land is properly regarded as 'community land'-

(3) with respect to the 1994 Resolution which purported to classify parts of Tamarama Park as 'operationaltand'that resolution so far as those particular parts of Tamarama Park are concerned was made by Council, withoutjurisdiction, and is therefore, in respect of those parts of Tamarama Park, invalid and of no force or effect; and

(4) despite the entry in Council's land register, the whole ofTamarama Park is properly classified as 'community land' and has properly held such a classification since the commencement of the LG Actin 1993.

2.3 The reasons supporting this view are as follows:

Relevantle isIative rovisions

( I ) When the LG Act commenced in 1993, Tamarama Park was public land owned by Council and zoned as 'open space'. A copy of the relevant zoriing map from 1985 is enclosed.

(2) The zoriing of Tamarama Park is relevant because at the time the LG Act commenced, it contained the following savings and transitional provision (as relevant) in Schedule 7: '6 Classification of existingpublicland

I) This clause applies to allpublie land within a council!$3 area as at the commencement of Part2 of Chapter6 (the relevant commencement),

2) On the relevant commencement, the following land that is vested in orunderthe controlofa council^^ taken to have been classified as community land, ' (a) landcomprising a public reserve,

(b) landsubjectto a trustfora publ^b purpose,

APAC-#19953596-v2 2 198 A 29 August 20t3 NORTON ROSE FULBRIGHT

(d) landreserved, zoned or otherwise designated for use under an environmental planning instrument as open space,

3) Within 7 yearafi'erthe relevantcommencement, a councilmay, by resolution, classify, as community land or operationalland, anypublic land that I^ vested in it orunderits controland that is not classified by subclause (2)."(emphasis added).

(3) We understand that the 1994 Resolution was passed by Councilin order to comply with clause 6(3) of Schedule 7 of the LG Act by classifying numerous parcels of public land as either 'community land' or 'operational!and'.

(4) As part of the 1994 Resolution, part of Tamarama Park was classified as 'operational land' despite the requirement to automatically classify Tamarama Park as 'community land' - given the zoriing of the land as 'open space'. (5) As Council did not otherwise follow the procedure under the LG Act to have any part of Tamarama Park reclassified from 'community land' to 'operational land', the whole of Tamarama Park remains 'community land'.

Case law authorit

(6) The High Court of Australia considered a similar set offacts in Bathurst City Councilv PWG Properties PtyLtd[1998] HCA 0059 (Bathurst Decision). That case is authority forthe proposition that the effect of clause 6 of Schedule 7 is that at the time the LG Act commenced in I 993:

(a) any public land falling within clause 6(3) was taken to have been classified as 'community land'; and

(b) a councilresolution purporting to classify that land as 'operational land'(without complying with the statutory requirements forthe reclassification of 'community land' to 'operational land') was beyond power.

(7) There are also various decisions of the NSW Court of Appeal which are consistent with the Bathurst Decision including City of Canada Bay Councilv Bonaccorso Pty Ltd (2007) 71 NSWLR 424, Kogarah MunicjoalGouncilv Golden Paradi^e Corporation andAnor[2005] NSWCA 230 and North Cronulla Precinct Committee Incorporated vSutherlandShire Council(1999) 107 LGERA 274.

(8) In light of the Bathurst Decision, the legal position as regards the true classification of Tamarama Park is clear in that the 1994 Resolution (irisofar as it related to those parts of Tamarama Park classified as 'operational land') was beyond power and therefore void - meaning that since 1993 the proper classification of Tamarama Park has been as 'community land',

3 Recommendations

3.1 As the purported classification of part of Tamarama Park as 'operational land' by way of the 1994 Resolution was beyond power and invalid, the true classification of Tamarama Park - as 'community land' - is determined by the operation of clause 6(2) and (3) of Schedule 7 of the LG Act.

3.2 The rectification of the register is not significant irisofar as the classification of the land is concerned.

APAC-#19953596-v2 3 199 A 29 August 2013 NORTON ROSE FULBRIGHT 3.3 Despite this, we recommend that Councilresolve to amend the Council's land register to reflectthe proper classification of the whole of Tamarama Park as 'community land' under the LG Act given Council's obligations in relation to maintenance of that register under section 53 of the LG Act.

3.4 Our view is that this should be by way of a new resolution, rather than an amendment to the I 994 Resolution.

3.5 In preparing this advice it has come to our attention that the land resumed by Council on 29 July 1955 as shown in miscellaneous plan Ms15558 (copy attached) is currently shown in folio 7101/1060141 as belonging to the State of New South Wales. We recommend that Councillodge a Request - Form 11R requesting a certificate of title be issued to Council. That parcel should also be included in the Council's resolution and land register.

Please contact us if you have any questions or would like to discuss any aspect of our advice,

Yo faithfully I 17

I' Nicholas Afaras Partner Norton Rose Fulbright Australia Contact: Matlhew Barry Encl.

APAC-#19953596-v2 4 200 Tamarama

Disclaimer: This report has been generated by various sources and is provided for information purposes only. Land and Property Information (LPI), a division of the Department of Finance and Services does not warrant or represent that the information is free from errors or omission, or that it is exhaustive. LPI gives no warranty in relation to the information, especially material supplied by third parties. LPI accepts no liability for loss, damage, or costs that you may incur relating to any use or reliance upon the information in this report.

201 REPORT TO COUNCIL

Capital Works Project Review Group (A07/1529-02)

Report dated 15 August 2013 from the Director, Corporate & Technical Services regarding the establishment of a Capital Works Project Review Group.

Recommendation: That Council

1. Receive and note this report.

2. Nominate 3 Councillors as participants on the Capital Works Project Review Group for the period of this Council term.

Purpose of Report

The purpose of this report is to notify Council of a proposal by the Executive Team to establish a Councillor/Officer Capital Works Project Review Group.

Background/Introduction

On two previous occasions Council has established a Councillor Capital Works Budget Review Committee:

 further to the Council Meeting of 18 December 2007 and  further to the Council Meeting of 17 August 2010.

On each occasion the Committee was only established for a period of 12 months.

Proposal

It is proposed that rather than establish a formal Committee it would be more fitting to establish a Capital Works Project Review Group which would meet at minimum on a quarterly basis in line with the quarterly budget review process. It may also meet should a particular project necessitate it.

It is felt that this process will allow for efficiency and flexibility in communications and decision making and keep the councillors more closely involved in major projects delivery and promotions.

The group could be comprised of:

 3 Councillors - as nominated by Council  General Manager  Director Public Works & Services  Divisional Manager Technical Services  Divisional Manager Finance & Information Systems & Services

The terms of reference of this group would be determined at the initial meeting. However, they would be largely based on the terms of reference adopted by the Councillor Capital Works Budget Review Committee (see draft Terms of Reference attached).

Analysis

Financial: There is no financial impost associated with the establishment of this group.

Consultation: NA.

Delivery Program/Operational Plan: 202 REPORT TO COUNCIL

The establishment of this group meets the following directions from the 2013/17 Delivery Program:

. Direction: G5 Waverley is financially sustainable with the revenue and resources required to support implementation of the community’s plans and to provide the infrastructure performance and services our community needs.

. Direction: G6 Waverley assets are well maintained for their current purpose and for future generations.

. Direction: G7 In service delivery sound safety and risk management practices are maintained to protect the community and service agency staff.

Timeframe: It is proposed that the Group first meets in October 2013 to review the Capital Works Program as at quarter 1 for financial year 2013/14.

Recommendation: That Council,

1. Receive and note this report.

2. Nominate 3 Councillors as participants on the Capital Works Project Review Group for the period of this Council term.

Bronwyn Kelly Director Corporate & Technical Services Author: Ian Mead

Attachment 1 Draft Capital Works Project Review Group Terms of Reference

203 REPORT TO COUNCIL

ATTACHMENT 1

DRAFT Capital Works Budget Review Group

Terms of Reference

204 REPORT TO COUNCIL

Date Created: 15 August 2013

1. PURPOSE

1.1. To review and monitor project performance, risk and financial tracking on all capital work projects in excess of $1 million.

1.2. To provide advice on capital works projects during their construction phase which are at risk of going over budget by more than the “trigger“ level (see table below).

1.3. To provide advice on capital works projects during concept and detailed design development when issues emerge which may result in the project increasing in cost by more than the trigger level as compared to the project budget which was first approved in the capital works program.

1.4. The Trigger Level for each project is defined in the following table.

CAPITAL BUDGET TRIGGER LEVEL PROJECT SIZE (ABOVE CAPITAL BUDGET) $1 - < $100,000 $10,000 Small $100,000 - < $500,000 10% of Capital Budget Medium $500,000+ $50,000 Large

2. BUSINESS OF THE GROUP

The Group will:

2.1. Provide an early warning mechanism for potential cost increases to project budgets.

2.2. Interrogate the reasons for such increases.

205 REPORT TO COUNCIL

2.3. For urgent matters, provide advice to assist the General Manager and the Mayor (as appropriate under the Act) to take decisions under delegation about whether the budget for a capital works project should be increased prior to a quarterly budget review, or alternatively, whether the project scope, quality, budget, schedule and/or resourcing should be changed.

2.4. Provide comment about any process improvements for future works projects that may reduce unexpected budget increases.

3. MEMBERSHIP

3.1. The core membership shall comprise: . 3 Councillors – nominated by Council . General Manager . Director Public Works & Services . Divisional Manager, Technical Services . Divisional Manager, Finance & Information Systems & Services

3.2. There may also be the following in attendance: . Council staff members as required to report on specific Capital Works projects . Resource person/minute taker for the Group.

4. PROCEDURES

4.1. Chairperson The General Manager shall chair the Group meetings.

4.2. Term of the Group The term of the Group will be for the period of the Council, at which time Council will determine the Councillor/s membership of the Group.

4.3. Quorum Group meetings can be convened provided that at least two Councillors are available in addition to the General Manager or the General Manager’s nominee.

4.4. Frequency of Meetings Meetings of the Group shall normally be held ahead of the quarterly reviews to FESP or Council on the budget/capital works program (October, February, April).

Urgent meetings to discuss individual projects may also be called by the General Manager at short notice to deal with problems e.g. during the construction or tendering phase of a capital works project.

4.5. Minutes Minutes of the Group will be distributed to Councillors within 10 days of the meeting.

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Small Grants Program 2013-2014 - Round 1 (A12/0442)

Report dated 26 August 2013 from the Director, Community & Recreation Services about the Small Grants Program (Round 1) 2013-2014.

Recommendation: That Council approve the Small Grants Program (Round 1) 2013-2014 grants to the groups and activities as set out in this report.

Purpose of Report

This report provides an outline of all applications and recommendations for grant approvals under the Small Grants Program (Round 1) 2013-2014.

Background / Introduction

The Small Grants Program is run in two funding rounds each year, in August and February. Information about the Grants Program is available on Council’s web site throughout the year Submissions are accepted at any time but are assessed only twice a year. Because of the highly competitive nature of the program and restricted funds, applications are limited to one per organisation in each round. Groups receiving a grant are advised that acquittal is required before they become eligible to receive another grant.

Applicants must describe how their proposal will deliver outcomes that have an environmental, social, cultural or recreational benefit to the Waverley community and support the vision of Waverley as a safe, culturally rich, inclusive and cohesive community, clearly complementing Council’s Strategic Plan, Waverley Together 3.

The program allows sufficient funds to either support interesting new initiatives or to provide enhanced services to existing programs. In certain circumstances Council may decide to offer groups funding in successive years but generally groups are encouraged not to depend on small grants. Most groups have applied for up to $3,000 as recommended in the criteria. Council may approve higher amounts

Since 2006 Council has offered environmental grants to schools in Waverley to support local environmental improvement projects. In 2010 it was decided to broaden the scope of the grants and invite schools, childcare centres and community groups to apply. The objectives of the Environmental Grants are to:

1. Encourage schools, childcare centres and community groups to identify and implement projects that work towards building a sustainable community and environment.

2. Develop skills and knowledge in participants that equip them to play an active and ongoing role in protecting and improving the environment.

3. Encourage and support community projects that assist Waverley Council to reach its EAP targets.

The Program has a full year budget of up to $80,000 for the Community category (groups and activities meeting social, recreational and cultural outcomes), while $20,000 is available for groups meeting Environmental Sustainability outcomes. The following table summarises the budget and the total value of the recommended grants:

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Table 1: Small Grants Program Round 1 2013-14 summary of budget and recommendations:

Grant Category Budget - Budget - No. of grants $ Value of total full year per round recommended cash grants recommended* Community $80,000 $40,000 9 $26,465 Environment $20,000 $10,000 6 $10,000

* Note: figures in this table exclude in kind support and fee waivers

Additional promotion will be undertaken for Round 2 of the Small Grants - Community Category in 2013-14, with a view to increasing the number of applications

Analysis

Applications for the Small Grants Program (Round 1) for 2013-2014 are identified in a table following, with summary information and recommendations. Most groups are requesting a grant payment with a few asking for a fee waiver for use of Council’s rooms or facilities. There are suggestions for higher grants for 2 groups in this round.

Organisation Caretakers Cottage (Options Youth Housing A13/0442 Program) The Activity Tenancy Management Record Keeping System Assistance Sought $625.00 Background Caretakers Cottage has become a registered housing provider through the NSW Housing Registrar’s Office. As a result, the applicant has requested funds to upgrade the current tenancy management system so that they can deliver tenancy management to an appropriate standard. Caretakers Cottage is located in Waverley and provides semi- independent transitional housing to young people experiencing homelessness. Comment Registration is a positive step for this organisation which is supporting highly vulnerable young people in Waverley. Recommendation Recommended $625

Organisation Bondi Outreach Project A13/0442 The Activity Professional Development and Crisis Assistance Assistance Sought $2,740 Background BOP provides an outreach service on week-ends, late at night in Bondi, Bondi Junction and other key locations for young people who may be on the streets. The funding request for this project is in two parts. 1. Skills development in mental health and conflict resolution for staff and

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2. To provide an after-hours phone service for 2 nights per week. This will allow young people and families to call for advice and support in times of crisis. Comment This service provides an important service in the Waverley area at the beach and in other hot spots late at night, receives annual funding from Council of $45,600 and has received other small grants. This project clearly identifies need but may need some further clarification. Recommendation Recommended $2,740

Organisation Sculpture by the Sea (SxS) A13/0442 The Activity Tactile Tours for children and adults with a disability Assistance Sought $5,000 Background This project aims to provide tactile tours to include and involve people with a disability including children and older people in the annual SxS exhibition. Previously Council has funded Accessible Arts NSW who worked with SxS to deliver the program while growing numbers from 6 people in 2009 to 151 in 2012 (excluding carers). The program is promoted as part of the schools program as well as to community groups. This year SxS is proposing to organise the Tours directly. The program provides audio description tours for participants who are mainly visually impaired using trained and experienced guides from the Art Gallery of NSW. SxS are also seeking $5,000 from another sponsor for this project. SxS are proposing to set up an advisory committee made up of participants and interested parties to guide the development of future programs and given the specialist nature of this work, this development is to be encouraged. Comment This is a worthwhile project to make Waverley's biggest cultural event more accessible. It has been funded in previous years through Accessible Arts NSW. Given the broad interest in this exhibition across Sydney and elsewhere SxS should be encouraged to seek the support of other Councils ( particularly Eastern Sydney Councils) for this project. (Normally, most small grants are capped at $3,000 but in this round Council has enough funds available to choose to offer the full request, $5,000 for this grant.) Recommendation Recommended $5,000

Organisation The Actors Forum A13/0442 The Activity The Actors Forum 2013-2014 Season Assistance Sought $2,000 plus $1,000 in kind Background The Actors Forum is a co-operative which produces rehearsed play readings and performs them within the community. This project is to produce 5 play readings aimed at Senior audiences including people who have disabilities and people who have enjoyed the theatre but can

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no longer afford to go. Ticket prices are kept at $15. The playing times are also held in the afternoon at the week-ends, which suit elderly people who don’t want to go out in the evenings. Comment This is an interesting program provided mainly for older residents in different Council areas. Waverley residents can attend at the Waverley Library. The grant assists with running costs. In kind assistance is provided in the form of staff time, marketing and promotion. There have been earlier grants which have been acquitted. Recommendation Recommended $2,000 and $1,000 in kind

Organisation Kelly Sports Bondi A13/0442 The Activity Kelly Sports Bondi Charity Netball Cup Assistance Sought $1,344 Background This project was started in 2010 by Kelly Sports. The Charity Netball League is for primary school children in the Waverley LGA with the aim of providing an affordable 6 week netball competition while making a donation to Barnardos. A $700 donation is expected to be made available to charity. The amount of funds requested is to cover the difference in costs from $22 (commercial rate) to $8 (community rate) per netball court for the 6 week period. Comment Kelly Sports hires Council’s netball courts and paid the community rate in 2012 with the agreement of the former Director. Though Kelly Sports is a commercial operation the netball courts had no commercial rate prior to 2011. With the advent of the indoor sports court there are now many businesses running programs in the indoor court and these are all required to pay a commercial rate as are any commercial groups using the outdoor courts. Some of these may also choose to make donations to charity. The operator is requesting a discount as a result of their donation to Barnardos and suggests that they have not had sufficient advice of the cost from Council and have already advised parents of charges for this year. There are other options for this group including increased charges to parents though given the above it is suggested that the fee in this instance should be waived by an amount of $700 but that this should be a one off arrangement Recommendation Recommended $700 fee waiver.

Organisation Bondi Sings Incorporated A13/0442 The Activity Bondi Sings Community Choir Assistance Sought $2,600 Background This is a community choir in Bondi that is trying to encourage people within the local community to join and increase numbers. Membership is open to anyone who enjoys singing and for a number of years the choir has provided entertainment for families. The choir has also made a number of annual appearances at ‘Carols by the Sea’. Comment The 'Community Choir' 'Bondi Sings' became an incorporated not-for- profit group at the end of the 2013 financial year. The group has grown into a solid independent entity after years of support through the Bondi Pavilion Cultural Services Office. The group provides a unique

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opportunity for residents of Waverley to take part in a community choir. Bondi Sings is open to all peoples, of all ages and the Arts and Cultural services team would use this group for Waverley's festivals and events , e.g. Festival of the Winds and Carols By The Sea. In the past the group has always donated their time for no cost to perform at community events and they plan to do the same for the future. Recommendation Recommendation $2,600

Organisation Bondi Toy Library (BTL) A13/0442

The Activity Bondi Toy Library - Special Assistance Assistance Sought $6,000 Background This project is a request for special assistance from Council for an additional one off $6,000 grant. The Bondi Toy Library (BTL) has recently weathered a period of instability caused by factors such as higher staff costs, changes in management, a drop in membership numbers, factors which taken together resulted in a financial deficit that threatened the existence of the service in April 2013. Having to raise fees to make up the shortfall and without sufficient funds to invest in new toys, the BTL also experienced difficulties in attracting and retaining members.

The new committee installed earlier this year is working hard to make up the deficit. Recent management initiatives include:

 Reviewing membership costs to attract more members by creating package deals and graduated payments  Strategic planning  Re - organised opening hours to adjust staffing costs down and increase access to working parents  Targeting grandparent membership  Working with day care centres on fee for service basis  Party package toy loans offers  Partnerships with new mum's groups through Early Childhood nursing teams and playgroup at Wairoa Avenue.  Marketing through web linkages to Waverley Library children's page and new street signage.  Christmas Vouchers

Council’s support to the organisation includes subsidised rental, an annual grant of $17,000 and active support provided by RCP staff to assist with capacity building, information, strategic planning, promotion and fundraising, networking and submission writing.

Current income is $38,392 and the BTL estimates they will be in credit by $2,538 in June 2014. This will require increased membership and continued fundraising. With such a finely honed budget and 2 part time staff the BTL must ensure appropriate reserves are held while continuing to upgrade and improve toys. They must also follow up on

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their strategic plan which includes better equipment, training and improved technology. The $6,000 will assist with the continued implementation of the strategic plan.

Current membership is around 120 families who predominantly live in the Waverley LGA but the optimum is closer to 200. High numbers of working families and children in care in Waverley has probably contributed to reduced membership numbers. Many local areas have a Toy Library and frequently these are run by Councils.

Comment This is an important community asset for Waverley families which has been running for 30 years. The library promotes child development through a toy lending service that encourages families to recycle rather than buy children’s toys and play equipment. It is popular across all cultural and socio-economic groups and provides a soft entry point to a range of services and supports. The service is co-located in a Council owned building and collaborates with the Early Childhood nurses and the Bondi Playgroup one of a range of services used by families with young children in the area.

The BTL are also seeking to increase their annual grant from $17,000 to $20,000 and while this could be included in recurrent budgets within the Community Grants program it is suggested that this decision should be made after a review for the year with Council in December 2013.

The BTL Committee have been working hard to ensure this service survives and have been transparent in their discussions with Council about their future. They believe the service which does not have a generous budget is at risk of closure.

Recommendation Recommended $6,000 with a review to be conducted of the 2013 operations in December with Council.

Organisation Waverley Action for Youth Services (WAYS) A13/0442 The Activity Safe Summer Survival Assistance Sought $3,000 Background WAYS is a youth based service located at Bondi Beach and operates a variety of different services throughout the Waverley LGA. Safe Summer Survival (SSS) is a youth based peer education program providing health education about risks associated with drugs and alcohol and unsafe sex practices. Volunteers (youth peers) are recruited and trained and provide information to young people on our beaches and in other key locations during summer. Comment This project is supported by the State Government and other Councils and is a well targeted program delivered in an accessible way to local young people during summer. Recommendation Recommended $3,000

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Organisation Flickerfest Pty Ltd A13/0442 The Activity Flickerfest International Short Film Festival, Bondi Assistance Sought $3,000 Background Flickerfest is a well-known and popular cultural film and arts event based at Bondi Pavilion. This project is Flickerfest’s 23rd annual event held over 10 days and nights featuring short films from all around the world. The festival will be held at the Bondi Pavilion from 10th to the 19th January 2014. Funds are requested to support the program generally. Comment Council charges a community/not for profit rate for the venue in the rear of the Pavilion, with subsidised small office space. This event adds significantly to the cultural profile of Waverley Council.

Recommendation Recommended $3,000

Organisation 19th Biennale of Sydney You Imagine What You A13/0442 Desire The Activity 19th Biennale of Sydney: A Sign in Space by Gunilla Klingberg Assistance Sought $18,000 plus in kind support Background Biennale of Sydney is a non-profit organisation that presents contemporary visual arts every 2 years with a 3 month exhibition which is free to the public, with usual major venues being Cockatoo Island, Museum of Contemporary Art etc.

This proposal is about Swedish artist Gunilla Klingberg who creates large scale installations that focus on the repetition of patterns, textures and shapes appropriating objects and symbols from all areas of everyday life. She has been invited to create a large scale ephemeral piece entitled “A Sign in Space” on a Sydney beach. The Biennale has proposed to use Bondi Beach or Tamarama Beach and to present the project in conjunction with Council.

The work will be a graphic star pattern printed as a relief on sand during low tide vanishing as the sea rises. The exhibition would be open to the public from 21 March – 9 June 2014 in the quieter months running up to Council's Winter Magic program. The pattern will be made with a steel cylinder encased with the pattern which is then attached to the beach rake each morning.

Following the lunar calendar the pattern is remade again and again on all possible days at low tide following the beach rake operator’s usual routine. The work is intended to encourage reflection on the impermanence of life as the rising tide and footsteps of curious beach goers gradually erase the work.

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Public education programs can be developed to possibly include artist talks, free beach yoga and so on depending on funding and Council input.

Discussions are still underway to see whether this can be organised at Bondi. $34,547 is the estimated cost of the project and the organisers are seeking some support from other sponsors. Some of this could be delivered in kind with the beach rake operator’s involvement thus reducing the cost. These discussions are still to be finalised regarding in kind support and staff involvement.

Comment This project is an exciting proposal and would be an opportunity to be part of Australia’s largest contemporary visual arts event.

If held at Bondi, would certainly offer local economic benefit in the autumn months, leading into Bondi Winter Magic.

Although significant cash outlay would be required of Council (perhaps $15K), if it was of sufficient priority for Council this could have been found through a special Small Grant and a contribution from the Events & Business Development budget

However, the project relies heavily on Council staffing, as well as Council funds. Council staff would need to clean the beach with the beach rake, and then go over that portion of the beach with the steel cylinder attached to a tractor. This will significantly reduce staffing available for cleaning other beaches.

Recommendation Not recommended.

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Organisation Rock Surfers Theatre Company A13/0442 The Activity Artistic & Cultural Development & Audience Development Assistance Sought In kind with a value up to $21,696 Background Rock Surfers Theatre Company is Waverley Council’s resident theatre company, based at Bondi Pavilion Theatre. Rock Surfers have 4 programs for which they are seeking in kind fee waivers for 2014. These are: Summer Camp providing free workspace to emerging artists to develop new works; Werk which is a cross-cultural exchange between Australian & Irish playwrights, a one night only festival style event across multiple spaces; Bondi Feast is a festival of new Australian theatre; and Sydney Comedy Festival Sydney’s foremost comedy event. Use of various rooms and venues is sought for rehearsal space and productions exclusively at Bondi Pavilion. Hire waiver of banner poles and way finding signage is also sought.

Comment A similar arrangement was developed during 2012-13 and worked well. As this could result in lost opportunity for income it is suggested (as with last year) that potential provision of in kind support be developed with the relevant Divisional Managers, Community and Cultural Services and Events and Business Development. This can mean that underutilised space in the Pavilion at non-peak times is able to be utilised for the benefit of the Rock Surfers. Recommendation In kind support to be developed up to $21,696 in negotiation with the relevant Divisional Managers.

Organisation Life Education NSW A13/0442 The Activity Improving Children’s health in the Waverley LGA Assistance Sought $3,000 Background Life Education is a non-profit provider of preventative drug & health education in Australian schools. This project is to bring the importance of healthy living, drug & alcohol program to 3,000 children each year via a take home work book for each child. Schools will be St Catherine's School Waverley, Cranbrook School Bellevue Hill, Moriah War Memorial College Bondi Junction, Kambala School for Girls Rose Bay and Cranbrook Prep Rose Bay. Comment The $3,000 is for $1 contribution towards printed handbooks for each of 3,000 children. The project already has $18,000 in other government funding sources. Schools formerly provided funds for this well-known program and it has received funding by the State Government in the past. While several of the chosen schools are not within Waverley boundaries, they undoubtedly include children from Waverley along with children from outside Waverley. This is well known program run across NSW. Recommendation Recommend partial funding of $1,500.

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Organisation NSW Floorball Association (NSWFA) A13/0442 The Activity Bondi Raptors Floorball Assistance Sought $3,000 Background Floorball (similar to floor hockey)is a fast growing sport which was originally developed in Sweden. It is a game which is played by both children and adults. Australia has been represented regionally and internationally in competitions. For Floorball to be successful in the Eastern Suburbs a fit out with an IFF accredited rink and goals is the aim of the Bondi Raptors. Currently, the Margaret Whitlam Centre is being used twice weekly to play and practice and fit out will assist in expanding the sport in Waverley. This group wishes to purchase the temporary rink and goals needed to set up for competition at the centre. This equipment will also need to be stored. Comment This is a growing and inclusive sport. However it is suggested that there is a need to develop playing numbers and capacity before an investment in infrastructure/facilities can be considered. The $3000 sought is a portion of the $8,000 needed to fit out the MWRC sports court with an official IFF accredited floorball rink.

The club is using other facilities for competition and it is not clear whether it would be possible to sustain a larger club requiring space for training and competition in the facility.

Recommendation Not recommended but it is suggested that the Recreation Planner discusses development with the club for a possible future application.

Organisation Sydney Special Children’s Christmas Party A13/0442 The Activity Sydney Special Children’s Christmas Party Assistance Sought $2,750 Background This is an annual Sydney wide charity event. This project is to hold a free Christmas party for children with disabilities and illnesses at Rose Hill Race Course. Tickets are provided for distribution following funding. Comment Given the location, it is not clear that many children in the Waverley LGA would benefit from this event. Recommendation Not recommended

Organisation Chapel by the Sea A13/0442 The Activity From Little Things, Big Things Grow Assistance Sought $3,000 Background The project is for a wall mural 4m x 4m which has already been painted on the corner of Gould Lane & Roscoe St, Bondi Beach. It is a

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representation of Social Justice for Indigenous Australians and to help educate people about the celebration of Aboriginal social justice. Retrospective funding is requested to pay two artists and for some costs associated with production of the mural. Comment It is suggested that as this requires retrospective funding it sets a precedent which would be difficult to sustain in future rounds. Recommendation Not recommended

Environmental Grants:

Organisation Anglesea Street Communal Garden Project A13/0442 The Activity Anglesea Street Communal Garden Assistance Sought $3,000 Background This application seeks funds for a 12 week project to develop a communal garden in an otherwise unused space located on Housing NSW (HNSW) land on Anglesea St. The area is well known for being a prime target for littering, illegal dumping and graffiti. The group has the support of the local community, HNSW and the program Better Homes & Gardens. Comment Great demonstration of a small scale community project with support from the Anglesea St community and Housing NSW. The project engages the community and directly contributes to Council’s EAP target of less pollution in water ways through a reduction in littering. The project will directly benefit the community living in Anglesea St. The construction of the garden will be aired on TV in the program “Better Homes & Gardens” thus there is potential to reach the wider community. The TV show will provide the bulk of the resources necessary to develop the communal garden. As it is unclear which resources will be provided by BHG and which by council only partial funding for this project is recommended. Recommendation Recommended up to $2,200. Council is willing to provide in kind support in the form of mulch and workshops for the group.

Organisation Wee Care Kindergarten and Wee Care 2 Childcare A13/04421 Centre The Activity WEE SUSTAIN Assistance Sought $3,000 Background This project aims at educating children and their families in the sustainable practices of reusing, recycling and growing food. This will be done through daily involvement in recycling, reusing and gardening. The project was identified through a needs analysis and is to be carried out in two different childcare centres. The application is divided in three initiatives which the organisation is seeking funds for: 1. Purchase of garden beds and gardening tools to develop a

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vegetable garden to be used for educational purposes. 2. Purchase small, child friendly bins for their waste reduction initiative. This includes recycling, general waste and food waste bins. 3. Produce a book to share the children’s journey in the world of sustainability. Comment The project has a clear link to the EAP target of waste reduction and recovery of commercial and residential waste. There is a solid environmental educational component that will directly benefit the children, staff and family members involved in the project. Not enough information about the production of the book is provided in this application and costings for bins and garden beds seem expensive. Partial funding for this project is recommended and they will be invited to apply in round two for the book development. Recommendation Partial funding of $1,400 recommended for the purchase of small bins, gardening tools and gardening resources.

Organisation Bondi Beach Public School A13/0442 The Activity We’re Water Wise Assistance Sought $3,000 Background Bondi Beach Public School is seeking funds to replace current toilets with dual flush toilets with the aim of reducing water use and enhancing the environmental education program at the school. Comment The application clearly shows the project meets all the selection criteria and strongly links to the EAP target of zero increase of 2005/2006 levels of mains water consumption. The project was identified through the "Three Council's Program water assessments. The project is for a total of $6,000. The school is providing half of the funds $3,000. Recommendation Full funding of $3,000 recommended provided the project is promoted to families in the school community and savings are reported to both the school community and Council. A full acquittal for a former grant will be provided before the grant is made.

Organisation Waterford Preschool A13/0442 The Activity Waterford Water Tank Assistance Sought $3,000 Background The project aims to educate preschool children on how to optimise the use of natural resources and the benefits of sustainable water use. The group is seeking funds to purchase and install a water tank to carry out the water educational component of the project. Comment The project has a strong educational component with potential links to the EAP target of zero increase of 2005/2006 levels of main water consumption. The project will directly benefit the preschool community (children, staff and family members). We recommend the centre to research for a cheaper option for purchasing and installing the water tank.

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Recommendation Partial funding of $2,000 recommended.

Organisation Bondi Food Collective A13/0442 The Activity Resilience, empowerment & sustainability through food, education and community engagement Assistance Sought $3,000 Background The Bondi Food Collective is a non-for profit run by community members. It currently runs a bulk food buying co-op out of Chapel by the Sea and it provides cost effective organic food to the community. The organisation is seeking funds to purchase food-grade storage containers and to provide community education workshops to further develop their current food project. The project consists of 3 semi- autonomous projects: 1. Bulk food buying project offering customisable produce boxes. 2. Weekly pop-up dry food stores 3. Monthly food education workshops on food survival, cooking and up-skilling Comment The packaging free aspect of the project is in line with Council’s EAP targe of waste reduction and will benefit the wider community. The educational component of the project however (content, facilitation and long term sustainability) is unclear and might be doubling up on Council existing workshop program. There is a willingness to accept partial funding. Recommendation Partial funding of $1,000 recommended for the purchase of food-grade storage containers.

Organisation Responsible Runners A13/0442 The Activity No time to waste: running for a sustainable future Assistance Sought $3,000 Background The grant is being sought to expand and streamline already-existing activities. The project is divided in three components that aim to reduce littering and waste production while creating civic responsibility. Components are as follow: 1. Promote volunteer participation in fun weekly cleanups and data collection on marine debris; 2. Engage with cafes at a local and national level to adopt more sustainable business practices through the Responsible Cafes initiative which aims at reducing waste by providing a small discount to people that get their beverage in reusable cups. 3. Provide Waste education targeting students at Waverley schools

Comment The project has strong links to Council’s EAP targets of increasing resource recovery, increasing waste awareness and decreasing waste generation and water pollution. A lot of the project’s work, including art

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work is already in place and efficiently running. Seven cafes are already involved in the Responsible Cafes initiative and the group has a number of committed volunteers that carry out clean up activities in the area. The educational component of the project (content, facilitation and long term sustainability) is unclear and will double up with Council existing initiatives. There is a willingness to accept partial funding. Recommendation Partial funding of $400 recommended to support the Responsible Cafes program. Council is willing to provide in-kind contribution in the form of clean up equipment i.e. bags and gloves.

 Financial Sufficient funds area available in recurrent budgets for this program from 1022, 2250, 2252, 2253 and 4360.

 Management Plan The Small Grants Program is outlined in the Operational Plan 2012-2013 and the two small grant rounds will provide funds which support Council’s vision as outlined in the Strategic Plan WT3.

 Consultation Consultation was undertaken with relevant Council staff including staff of Environmental Services, Community Workers, and staff and managers Library and Customer Services, Community and Cultural Services and Events and Business Development

Timeframe

The disbursement of funds can take place immediately after approval provided any conditions are met.

Recommendation: That Council approve the Small Grants Program (Round 1) 2013-2014 grants to the groups and activities as set out in the report.

Cathy Henderson Director, Recreation Customer and Community Services

Author: Maree Girdler Divisional Manager, Recreation and Community Planning

Attachment 1: Small Grants Program Guidelines

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Attachment 1:

Small Grants Program Guidelines Waverley Council has a small fund of money available for distribution to the local community. Grant applications up to $3,000 will be considered for community groups delivering projects meeting the criteria below. In a small number of cases grants over this amount may be made.

The following general criteria apply:

1. Projects should be able to demonstrate that they support the vision of Waverley as a safe, culturally rich, inclusive, cohesive community (see Waverley’s Community Vision) and provide recreational, cultural, social or environmental benefits for the Waverley community. 2. Projects are encouraged from groups which address issues associated with environmental sustainability and education. 3. As this is a one off grant program, projects must be potentially self-sustaining or have a limited timeframe. 4. Applicant organisations must be located in and/or primarily deliver services to the Waverley community and be able to demonstrate this. 5. Projects are encouraged from groups which address the needs of:

o Young children and families

o older people

o people with disability

o Aboriginal and Torres Strait Islanders

o young people

o the culturally and linguistically diverse population 6. Programs should have measurable outcomes that benefit the Waverley community. 7. All applicants must agree to submit a short report on the project and to provide an audited statement at the end of the project. 8. Only one application may be lodged by each organization in each Round.

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9. Organisations must submit the following paperwork with their application in order for their application to be considered:

o most recent audited statement

o most recent annual report

o copy of constitution 10. Applicants must acknowledge Council support in promotional or printed matter related to the project. Failure to do so will be deemed as a failure to acquit the grant (if awarded) and preclude awarding of future grants. Acknowledgement must take the following form:

o a legible line of text specifically acknowledging Waverley Council for its support

o Where practical this line is to be accompanied by a Council logo (supplied on request). 11. Organisations who have received a grant under the Small Grants Program must acquit the grant by completing the Small Grants Acquittal form and submitting any other required material, upon completion of the project for which funding is granted. Failure to acquit will affect any future funding requests. 12. Applications received after the closing dates will be assessed in the next round.

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Additional Information for Asbestos Policy (A05/0190)

RECOMMENDATION: That Council receive and note this report.

PURPOSE OF REPORT

The purpose of this report is to advise Council on what advice would be appropriate for people in the “No Licence Required” category of the draft Asbestos Policy to ensure the safe removal of asbestos as requested at the Community, Housing, Environmental Services and Public Works Committee meeting held on 3 September 2013.

BACKGROUND

At the Community, Housing, Environmental Services and Public Works Committee meeting on 3 September, a report providing additional information on the draft Asbestos Policy was considered and it was resolved:

1. That the matter be deferred to allow for Council Officers to prepare a report for consideration at the next Council meeting on what advice would be appropriate for people in the “NO Licence Required” category to ensure the safe removal of asbestos.

INTRODUCTION

The removal of 10 square metres or less of non-friable asbestos may be undertaken without a licence. This amount is based on the national standard and is specified in Section 458 of the Work Health and Safety Regulation 2011. Basically, as the legislation permits this in NSW, the requirement has been transferred into the Draft Waverley Asbestos Policy to remain consist with existing laws. The requirement was developed to allow people to remove small quantities of non friable material themselves without being onerous and to permit the replacement of the material with non-asbestos alternatives. This scenario often arises during small renovations, for example a bathroom, where a plumber relocating pipes may discover and remove a small amount of asbestos cement sheeting and replace it with an alternate material prior to the wall being tiled. This category of “No Licence Required” has been developed to facilitate the prompt removal of small amounts of bonded asbestos that are commonly found in homes, without incurring contractor’s costs for such small jobs. However, Council encourages residents to consider engaging a licensed asbestos removal contractor, particularly in situations where they are undertaking the renovations/work themselves. Irrespective of who removes the asbestos material, the work must still be carried out in accordance with “The Code of Practice on how to safely remove asbestos”, (catalogue no. WC03561) produced by WorkCover NSW. This Code requires safe work methods to be used and the work to be conducted in a manner that does not create a risk to the health and safety of others. It contains a section dedicated

223 REPORT TO COUNCIL to the safe removal of asbestos that does not require a licence and outlines duties that are to be complied with. For example use of the wet method where reasonable practicable to prevent dust.

DISCUSSION

The advice given to people who fall within the “No Licence Required” category is that Council recommends a contractor with a current licence be engaged to carry out the work regardless of the amount to be removed. However, in situation where individuals wish to do the work themselves, they are referred to the Code of Practice as well as pamphlets and educational material produced by the NSW EPA, WorkCover NSW and the Asbestos Disease Research Institute. These pamphlets outline the Do’s and Don’ts for the safe removal of asbestos and provide website addresses where additional information can be obtained. Copies of these pamphlets will also be available at Council’s Customer Call Centre.

There is a need for increased community education in this area that has been acknowledged and discussed with the Department of Local Government. There are a number of initiatives being developed including features spots on home renovations shows, Asbestos Awareness Week and “BETTY – The ADRI House” (an asbestos education model home the size of a caravan) that visits various Local Government areas in NSW providing education to local communities. It is envisaged that the adoption of the draft Asbestos Policy, is the first step in addressing Asbestos issues faced by Waverley and will be supported by strong internal procedures.

ANALYSIS

The current requirements are adequate and consistent with the national requirements and NSW legislation. Providing increased community education and awareness is considered the key to ensuring a high standard of public health is maintained when small amounts of asbestos are removed by unlicensed personnel.

 Financial

Nil

 Management Plan

The adoption of the Asbestos Policy meets the objectives of Council’s Management Plan by implementing requirements considered necessary to ensure a high public health standard is set in Waverley. It also ensures that Waverley has consistent requirements with other local Councils and state governments and are able to fulfil their statutory obligations.

 Consultation

Consultation was carried out with the Department of Local Government and NSW WorkCover.

224 REPORT TO COUNCIL

TIMEFRAME

N/A

RECOMMENDATION: That Council receive and note this report.

Peter Monks DIRECTOR PLANNING & ENVIRONMENTAL SERVICES

Report Author: Simone Brennan

225 REPORT TO COUNCIL

Request for the Calling of Tenders for Customer Request Management System (A13/0290)

Recommendation: That Council approves the calling of selective tenders for a Customer Request Management System from:

 Origen Technology  Voltum Consulting  Open Office Pty Ltd  Merit Technology  Infor Global Solutions

Purpose of Report The purpose of this report is to outline the findings of the Expression of Interest process and seek Council’s approval for the calling of selective tenders for a new Customer Request Management System (CRM).

Background Since March 2006 Waverley Council has been managing customer requests received through various communication channels including over the telephone, face-to-face, email, letter and via Council’s website utilising our current customer request system, Service Desk.

The system manages and monitors staff activities through adherence to agreed service requirements linked to service requests. It reports on the management of customer requests, including meeting request deadlines and escalating un-actioned requests.

There are a number of concerns about the current and future ability of this system to adequately manage and expedite requests by customers to Council. To maintain Council's commitment to improving customer service we need a CRM which enables staff to meet the changing needs of our community.

Customer expectations and the methods by which they contact Council are continually evolving and increasing and Service Desk has a number of limitations in terms of customer contact and self-service options.

Service Desk is limited in terms of information management (in particular, limited reporting functionality and data integrity, e.g. the ability to identify duplicate requests).

The system is also operating with in-house maintenance support only, as the Company no longer offers support for this version of its software.

To address these concerns Expressions of Interest (EOI) for a new CRM have been sought from providers who could demonstrate capability and a track record of providing integrated CRMs to organisations with a strong focus on the customer experience and ideally within the local government environment.

Current Situation The Expression of Interest process was advertised with a closing date of 30th July 2013. Fifteen (15) responses were received, and following an evaluation against the advertised 1

226 REPORT TO COUNCIL selection criteria, a number of companies are recommended to proceed to a selective tender process.

EOI Assessment Fifteen (15) Expressions of Interest were received from;

. ABYOR International . Acresta Mobile . BluLeader Pty Ltd . Datacom . Dialog Information Pty Ltd . Fusion 5 Pty Ltd . HCL Australia Services Pty Ltd . Infor Global Solutions . Merit Technology . OBS Pty Ltd . Open Office Pty Ltd . Oracle CMA Pty Ltd . Origen Technology . SDS Group Pty Ltd . Voltum Consulting

The EOI’s were evaluated strictly in accordance with Council’s Purchasing Policy, Procedures and Evaluation Plan, and in accordance with the provisions of the Local Government Act 1993 and Tendering Regulation 2005.

The following EOI evaluation criteria were weighted and scores applied to assess the value for money offered by the EOI’s.

1. System meets the requirements set out in the EOI 2. Experience and Expertise 3. Capacity 4. Human Resources 5. Quality & Service 6. Price

Following an evaluation against the above criteria, the evaluation panel have shortlisted 5 companies to be invited to submit a selective tender response. The five companies selected in are: . Origen Technology . Voltum Consulting . Open Office Pty Ltd . Merit Technology . Infor Global Solutions

The tender panel agreed scores and weighted selection criteria matrix are attached to file A13/0290

The Local Government Act requires Council to call tenders for any purchase of goods or services over $150,000. 2

227 REPORT TO COUNCIL

Analysis With a strong commitment to its community, Waverley Council places a high priority on providing exceptional service to all its customers. The aim of this project is to implement a current customer request management system which allows customers easy access to request a service, monitor its progress and communicate to Council staff through various communication channels including smart phones. The broad scope of the project is to provide an end-to-end solution for the CRM project from design of the solution to full implementation, training as well as ongoing support and maintenance.

The broad requirements of the proposed CRM is to enhance the customers experience by providing self-service options and improving internal staff response times through ease of use, internal connectivity and enhanced management and planning through superior operational reporting functionality.

Features addressed in the Expressions of Interest included:

Access and Ease of Use The CRM must be user-friendly at all levels. It must be intuitive and easy for customers and Council staff to use. The screens must be easily and logically navigated with as few ‘clicks’ as possible, auto fill options or drop-down ‘point and click options’ and easy to scroll through data selection lists must be features. GPS location and auto fill options would be highly desirable for the use of Council’s customers.

The CRM must be easily accessible by all Council employees as well as external customers.

Integration with mobile devices The CRM must have the functionality to enable use by mobile devices such as smart phones and tablets to create efficiencies in the field, reduce back of house administration and improve response times to customers.

Reporting and Forecasting To improve staff management of requests the CRM must have strong features in reporting functionality which must include various types of pictorial representations such as graphs rather than simply data reporting as our current system currently provides.

Customer Service Mobile App Mobile applications are increasingly being used to connect different Council software and provide better access to Council systems for customers. Providers were asked to demonstrate the ability to partner with a provider of a mobile app friendly solution to ‘front- end’ the CRM and to partner or incorporate a system to interface the CRM with Council’s other databases and information sources such as TRIM and GIS.

Escalation of Requests To improve waiting times for outstanding requests the system must have the functionality to automatically escalate or flag outstanding requests in accordance with business rules and designated response times.

228 REPORT TO COUNCIL

Improved Visibility of Service Standards Our current CRM system does not allow customer service officers to see service standards for requests at first point of entry. To promote best practice the CRM must have the functionality to enable service standards to be visible to customer service officers and other employees, including alerts to any pending or actual breaches.

Duplicate Requests Our current system is not able to identify duplicate requests, this results in repetition of follow through on requests and unclear messages to customers. The CRM must have the functionality to support ongoing data integrity, including identifying and flagging duplicated requests and duplicated customer records.

Financial An allocation has been made from the Computer Services Reserve for funding of this project.

Management Plan The project supports Council's continuing focus on improving customer service as per directions and strategies in Waverley Together 3:

G3 Services are accessible and provided in a professional, friendly and timely manner. No. Strategy Key Partners G3a Promote and advocate systems and procedures that support efficient and effective service delivery which meets or exceeds customer satisfaction goals. G3b Monitor and report regularly against the service standards for customer service.

G4 Coordinated, efficient and effective services are delivered through the most appropriate agencies and partnerships.

G4b Provide a range of efficient and effective corporate support services.

Consultation A cross council group of key stakeholders was involved in developing a list of key business requirements for a new CRM. A comparative analysis was then conducted of a number of different Council CRMs to identify those which would meet our business needs. Council's current CRM was included in that process.

The Customer Service Leadership Team and Business and Information Systems Steering Committee were also consulted during development of the brief for EOI process.

The Customer Service Manager and DM Library and Customer Services together with Manager Corporate Procurement are involved in formulating this tender.

229 REPORT TO COUNCIL

Timeframe Tenders would be called as soon as possible with a further report to Council on the outcome of the tender process. This would comply with an implementation date for the new CRM with an indicative timetable as follows:

Expressions of Interest Closing Date 31 July 2013 Selective Tender Closing Date 31st October 2013 Award Contract 10 December 2013 Project Commencement 1 January 2014 Go Live 1 May 2014

Recommendation: That Council approves the calling of selective tenders for a Customer Request Management System from:

 Origen Technology  Voltum Consulting  Open Office Pty Ltd  Merit Technology  Infor Global Solutions

Cathy Henderson Director Community and Recreation Services

Author: Linda Bathur, Manager Library & Customer Services

230 MINUTES OF THE WAVERLEY TRAFFIC COMMITTEE MEETING HELD AT THE WAVERLEY COUNCIL CHAMBERS ON THURSDAY, 22 AUGUST 2013

Voting Members Present:

Cr B Mouroukas Waverley Council (Chair) Mr S Brown Roads and Maritime Services – Traffic Management (South) Snr Cst N Rutgers NSW Police – Traffic Services, Eastern Suburbs Local Area Command Mr J Morrison Representing Gabrielle Upton, MP, Member for Vaucluse and also representing Bruce Notley-Smith, MP, Member for Coogee Mr S Brown Roads and Maritime Services – Traffic Management (South)

Also Present:

Mr E Graham Sydney Buses – Eastern Region Mr R Horne Roads and Maritime Services – Traffic Management (South) Mr D Joannides Waverley Council – Divisional Manager, Technical Services Ms Q Liu Waverley Council – Traffic Engineer, Technical Services Mr S Samadian Waverley Council – Professional Engineer

Administrative Support:

Mrs J Reid Waverley Council – Assistant Secretary / Governance & Integrated Planning Officer Mr R Russo Waverley Council – Secretary / Governance Manager

At the commencement of proceedings at 10.01am, those present were as listed above, with the exceptions of Mr R Horne and Mr E Graham who arrived at 10.05am and 10.42am respectively.

WTC-1308.A Apologies

Apologies were received and accepted from Cr T Kay.

WTC-1308.DI Declarations of Interest

The Chair called for Declarations of Interest and none were received.

Minutes of the Waverley Traffic Committee Meeting – Thursday, 22 August 2013 1 231 WTC-1308.AM Adoption of Previous Minutes by Council – 25 July 2013

The recommendations contained in Part 1 – Matters Proposing That Council Exercise its Delegated Functions – of the Minutes of the Waverley Traffic Committee meeting held on 25 July 2013 were adopted by Council at its meeting on 20 August 2013 subject to the following changes:

1. Waverley Traffic Committee Meeting – 25 July 2013 – Minutes – Clause WTC- 1307.C6 – 164 Bronte Road, Waverley – Bus Zone (A02/0225-02)

Council resolved that:

1. The Waverley Traffic Committee’s recommendation not be adopted, and that

2. Council move the ‘Bus Zone’ sign from the northern side of the driveway to 164 Bronte Road to the southern side of the driveway to 164 Bronte road, Waverley.

2. Waverley Traffic Committee Meeting 25 July 2013 Minutes – Clause WTC-1307.Z1 – Myuna Road at Military Road, Dover Heights; Birrell Street at Alfred Street, Bronte; Ocean Lane at Ocean Street, Bondi; and Victoria Street at Victoria Lane, Waverley – Installation of ‘No Stopping’ Zones (A02/0637-02)

Council resolved that:

The Waverley Traffic Committee’s recommendation be adopted subject to the deletion of Clauses 1, 3 and 4.

Council’s Proposal: That the Committee receive and note this information.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

Voting members present for this item: Representative of the Member for Vaucluse also representing the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Chair).

PART 1 – MATTERS PROPOSING THAT COUNCIL EXERCISE ITS DELEGATED FUNCTIONS

NOTE: The matters listed under this part of the Agenda propose that Council either does or does not exercise the traffic related functions delegated to it by the RMS. The recommendations made by the Committee under this part of the Agenda will be submitted to Council for adoption.

Minutes of the Waverley Traffic Committee Meeting – Thursday, 22 August 2013 2 232 WTC-1308.C STATE ELECTORATE OF COOGEE

WTC-1308.C1 Watson Street, Bondi – Short-term Parking (A02/0638)

Report dated 12 August 2013 from the Divisional Manager, Technical Services about the installation of short-term parking in Watson Street, Bondi.

Council’s Proposal: That the existing 13m long ‘Loading Zone 8.30am-6pm Mon-Fri’ and 13m long ‘Loading Zone 8.30am-6pm Mon-Fri, ½P 8.30am-12.30pm Sat’ on the eastern side of Watson Street, Bondi, south of Bondi Road, be replaced with ‘Loading Zone 8.30am-3.30pm Mon-Fri, ½P 3.30pm-8.00pm Mon-Fri 8.30am-1.30pm Sat-Sun'.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

Voting members present for this item: Representative of the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Chair).

WTC-1308.C2 York Lane, Queens Park – No Parking Opposite Driveway to 26 Ashton Street, Queens Park (A02/0637-02)

Report dated 12 August 2013 from the Divisional Manager, Technical Services about the installation of ‘No Parking’ opposite a driveway in York Lane, Queens Park.

Council’s Proposal: That Council install a 14m long ‘No Parking’ zone in York Lane, along the rear fence between the two driveways at 47 York Road, Queens Park, at the residents’ cost.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

Voting members present for this item: Representative of the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Chair).

WTC-1307.C3 Fitzgerald Lane, Queens Park – ‘No Parking’ and ‘No Stopping’ (A02/0637-02)

Report dated 12 August 2013 from the Divisional Manager, Technical Services about changes to parking restrictions in Fitzgerald Lane, Queens Park, to improve large vehicle access.

Council’s Proposal: That Council:

1. Signpost the eastern-most 5 m of existing ‘2P 8am-6pm Mon-Sat PHE Area 23’ in Fitzgerald Lane, Queens Park with ‘No Parking’.

2. Install 10 m of ‘No Stopping’ on the eastern side of Fitzgerald Street, both sides of Fitzgerald Lane, Queens Park.

Minutes of the Waverley Traffic Committee Meeting – Thursday, 22 August 2013 3 233 WTC RECOMMENDATION (UNANIMOUS SUPPORT): That the matter be deferred to allow Council Officers to investigate the feasibility of relocating the existing parking to the southern side of Fitzgerald Lane.

Voting members present for this item: Representative of the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Chair).

B Fitzpatrick and G Connery addressed the meeting.

WTC-1308.C4 ADDITIONAL ITEM - Read Lane at Read Street, Bronte – ‘Stop’ Sign and Linemarking (A03/0042)

Report dated 13 August 2013 from the Divisional Manager, Technical Services about the installation of a ‘Stop’ sign and linemarking in Read Lane, at the intersection of Read Street, Bronte.

Council’s Proposal: That Council:

1. Install 10m of ‘No Stopping’ on the southern side of Read Street, both sides of Read Lane, Bronte.

2. Install a ‘Stop’ sign and linemarking in Read Lane, at the intersection of Read Street, Bronte.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

Voting members present for this item: Representative of the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Chair).

WTC-1308.V STATE ELECTORATE OF VAUCLUSE

WTC-1308.V1 Liverpool Street, Rose Bay – No Stopping (A02/0637-02)

Report dated 12 August 2013 from the Divisional Manager, Technical Services about installing ‘No Stopping’ signs to improve sight distance along the northern side of Liverpool Street, east of Bangalla Road.

Council’s Proposal: That Council install ‘No Stopping’ on the northern side of Liverpool Street, Rose Bay, from Bangalla Road to 1m east of the driveway to 70 Liverpool Street.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

Voting members present for this item: Representative of the Member for Vaucluse, NSW Police representative, RMS representative and Waverley Council representative (Chair).

Minutes of the Waverley Traffic Committee Meeting – Thursday, 22 August 2013 4 234 WTC-1308.V2 Hastings Parade, North Bondi – No Parking (A02/0637-02)

Report dated 12 August 2013 from the Divisional Manager, Technical Services regarding the installation of a ‘No Parking’ zone in Hastings Parade, North Bondi.

Council’s Proposal: That Council install 7m of ‘No Parking’ on the northern side of Hastings Parade, North Bondi, between the driveways to No. 152 and No. 154 Hastings Parade.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

Voting members present for this item: Representative of the Member for Vaucluse, NSW Police representative, RMS representative and Waverley Council representative (Chair).

WTC-1308.V3 Francis Street, Bondi Beach – ‘P Motor Bikes Only’ Zone (A02/0637-2)

Report dated 12 August 2013 from the Divisional Manager, Technical Services regarding the installation of a ‘P Motor Bikes Only’ zone in Francis Street, Bondi Beach.

Council’s Proposal: That Council install 3.5m of ‘P Motor Bikes Only’ between the driveways of 119 Francis Street and 119A Francis Street, Bondi Beach.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

Voting members present for this item: Representative of the Member for Vaucluse, NSW Police representative, RMS representative and Waverley Council representative (Chair).

WTC-1308.Z ELECTORATES OF COOGEE AND VAUCLUSE

WTC-1308.Z1 Edward Street, Hastings Parade, Paul Street, Ramsgate Avenue, St James Road - Additional locations for car share parking zones (A05/0078-02)

Report dated 8 August 2013 from the Divisional Manager, Technical Services about the installation of five additional car share parking zones.

Council’s Proposal: That Council:

1. Receive and note the contents of this report.

2. Approve the installation of signage for a 5.5m car share parking zone in the following locations:

(a). Edward Street, Bondi Beach, north side adjacent to reserve, between 7 and 7a Edward Street.

Minutes of the Waverley Traffic Committee Meeting – Thursday, 22 August 2013 5 235

(b). Hastings Parade, North Bondi, north side just east of Mitchell Street.

(c). Paul Street, Bondi Junction, west side just south of Old South Head Road.

(d). Ramsgate Avenue, North Bondi, west side adjacent to Biddigal Reserve.

(e). St James Road, Bondi Junction, west side opposite 20 St James Road.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

WTC-1308.Z2 Bronte Road at High Street, Waverley; Wairoa Avenue at O’Donnell Street, North Bondi – Installation of ‘No Stopping’ Zones (A02/0637- 02)

Report dated 12 August 2013 from the Divisional Manager, Technical Services about installing ‘No Stopping’ zones to improve sight distance and manoeuvrability at the intersections of Bronte Road at High Street, Waverley; and Wairoa Avenue at O’Donnell Street, North Bondi.

Council’s Proposal: That Council install 10 m of ‘No Stopping’ at:

1. Bronte Road at High Street, Waverley: (a). on the northern side of Bronte Road, east of High Street.

2. Wairoa Avenue at O’Donnell Street, North Bondi: (a). on the northern side of O’Donnell Street, west of Wairoa Avenue. (b). on the southern side of O’Donnell Street, west of Wairoa Avenue. (c). on the northern side of O’Donnell Street, east of Wairoa Avenue. (d). on the southern side of O’Donnell Street, east of Wairoa Avenue. (e). on the western side of Wairoa Avenue, south of O’Donnell Street. (f). on the eastern side of Wairoa Avenue, north of O’Donnell Street; and (g). on the eastern side of Wairoa Avenue, south of O’Donnell Street.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

Minutes of the Waverley Traffic Committee Meeting – Thursday, 22 August 2013 6 236 WTC-1308.Z3 Edward Street, Bondi Beach; Gibson Street, Waverley and Park Parade, Bondi – Disability Parking Zones (A02/0273-02)

Report dated 12 August 2013 from the Divisional Manager, Technical Services about the provision of ‘P Disability Only’ zones in Edward Street, Bondi Beach; Gibson Street, Waverley; and Park Parade, Bondi.

Council’s Proposal: That Council:

1. Install 5.5m of ‘P Disability Only’ in Edward Street, outside 17 Edward Street, Bondi Beach.

2. Remove the existing ‘P Disability Only’ zone in Gibson Street, located outside 4 Gibson Street, Waverley.

3. Remove the existing ‘P Disability Only’ zone in Park Parade, located outside 36 Park Parade, Bondi.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

WTC-1308.L ITEMS WITHOUT NOTICE

WTC-1308.L1 Sandridge Street, (eastern side, north of Fletcher Street) Bondi - Proposal to extend Bus Zone

Email dated 22 August 2013 from the Regional Traffic & Services Manager (Eastern Region), Sydney Buses to the Divisional Manager, Technical Services about the extension of the bus zone on the eastern side of Sandridge Street, north of Fletcher Street, Bondi to provide for sufficient draw-in to the bus zone and to minimise potential damage to the bus shelter.

Council’s Proposal: That the Bus Zone on the eastern side of Sandridge Street, north of Fletcher Street, Bondi be extended to the east from 15 metres to approximately 20 metres.

WTC RECOMMENDATION (UNANIMOUS SUPPORT): That Council’s proposal be supported.

Voting members present for this item: Representative of the Member for Coogee, NSW Police representative, RMS representative and Waverley Council representative (Chair).

Minutes of the Waverley Traffic Committee Meeting – Thursday, 22 August 2013 7 237 238 MINUTES OF THE FINANCE, ETHICS & STRATEGIC PLANNING COMMITTEE MEETING HELD AT WAVERLEY COUNCIL CHAMBERS ON TUESDAY, 3 SEPTEMBER 2013

VOTING MEMBERS PRESENT

Councillor Cusack (Chair) Crs Betts, Burrill, Goltsman, Guttman-Jones, Kay and Masselos. Also Present: Crs Clayton, Kanak, Mouroukas and Strewe.

At the commencement of proceedings at 7.30pm, those present were as listed above with the exception of Cr Kanak who arrived at 7.55pm.

F-1309.O OPENING PRAYER & ACKNOWLEDGMENT OF INDIGENOUS HERITAGE

The Chair read the following Opening Prayer and Acknowledgment of Indigenous Heritage.

Waverley Council respectfully acknowledges our indigenous heritage and recognises the ongoing Aboriginal traditional custodianship of the land which forms our Local Government area.”

F-1309.A Apologies

Apologies were received and accepted from Cr Wakefield.

F-1309.DI Declarations of Interest

The Chair called for Declarations of Interest and none were received.

This is Page 1 of the Minutes of the Finance, Ethics & Strategic Planning Committee Meeting held on Tuesday, 3 September 2013.

MAYOR 239 F-1309.1 Investment Portfolio Reporting (A03/2211)

Report dated 14 August 2013 from the Director, Corporate and Technical Services providing an update on the performance of Council’s investment portfolio for the 2013/14 financial year to 31 July 2013.

DECISION (Betts / Kay) That Council:

1. Receive and note this report.

2. Note that all investments have been made in accordance with the requirements of section 625 of the Local Government Act 1993 and directions from the Minister for Local Government, including Ministerial Investment Orders and Council’s Investment Policy.

F-1309.2 Draft Waverley Bike Plan (A11/0612)

Report dated 26 August 2013 from the Director, Planning and Environmental Services about the Draft Waverley Bike Plan which specifies a package of infrastructure and behavioural strategies to improve the environment for cycling in the Waverley LGA. The Draft Waverley Bike Plan has been prepared in accordance with the actions specified by the Waverley Transport Plan.

MOTION / RECOMMENDATION (Burrill / Goltsman)

That Council:

1. Exhibit the Draft Waverley Bike Plan with public submissions closing on Friday, 1 November 2013 subject to the following amendments:

(a). On page 31 of the agenda paper, remove the Section titled, ‘More people are cycling’ and Figure 1 and replace with the following:

“Who is cycling in Waverley?

A survey of cycling participation in May 2012 showed that 12.9% of Waverley residents rode a bike in the past 7 days (excluding 2-9 year olds). Distribution of these residents by age are categorised as follows:

 14% are 10-17 year olds;  16% are 18-29 year olds;  55% are 33-49 year olds; and  15% are aged 50 and over.

This is Page 2 of the Minutes of the Finance, Ethics & Strategic Planning Committee Meeting held on Tuesday, 3 September 2013.

MAYOR 240 According to Australian road rules, 2-11 year olds are permitted to ride on the footpath throughout the LGA. However, those aged 12 or over must ride on the road or a marked bike path such as a shared use path. It is for this reason that Council has excluded the 2-9 year old age group from our data analysis and why the focus of the Waverley Bike Plan is on cyclists aged 12 and over.

Due to limitations in the national cycling participation survey we have continued to include cyclists aged 10 and 11 in our data analysis. We understand that this will have a slight impact on the cycling statistics presented in this plan but will in no way alter the objectives of this plan that result from using these figures.”

(b). On page 31 of the agenda paper, under the Section titled, ‘Low cycling rates among women’, remove Figure 2 and replace the paragraph with the following:

“The national survey also shows that participation by women in cycling throughout the Waverley LGA is much lower than for men. Of Waverley cyclists in the 18-29 age group, 15% are male whereas 2% are female. Similarly in the 30–49 age group, 38% are male and 16% are female.”

i. Resulting from the above changes on page 31 of the agenda paper, update all Figure Numbers in the text and Figure Headings where appropriate.

ii. All data included in the Bike Plan be recalculated to exclude the 2-9 year old age group.

(c). On page 33 of the agenda paper, under the Section titled, ‘Implications for Bicycle Strategy’ remove the last two paragraphs.

(d). On page 39 of the agenda paper, under Diagram R8-3, correct the spelling of ‘separated’.

(e). On page 40 of the agenda paper, under Figure 11, include examples of a ‘Slow Zone’ cycling sign.

(f). On page 42 of the agenda paper, amend the sentence under the map to read as follows:

“Waverley Council is planning to establish a bike parking compound at the Bondi Junction Interchange to care for and encourage further use of the bicycle for short trips.”

(g). On page 48 of the agenda paper, under the Section titled, ‘Enforcement’ amend the paragraph to read as follows:

“NSW Police have the sole legislative responsibility to enforce traffic regulations such as dangerous cycling and ensuring adequate safety equipment on bikes and cyclists. Council will continue to work with NSW Police to target shared use paths where regular problems are identified. Enforcement will be done to

This is Page 3 of the Minutes of the Finance, Ethics & Strategic Planning Committee Meeting held on Tuesday, 3 September 2013.

MAYOR 241 support the proposed education and behaviour programs performed by Council staff.

(h). On page 35 of the agenda paper, under Figure 6, amend the map by changing ‘Military Road’ to ‘Portland Street’.

(i). On page 35 of the agenda paper, under Figure 6, amend the legend contained within the map in regard to Route 2 by changing ‘Bondi Road to Rose Bay’ to ‘Bondi Beach to Rose Bay.’

(j). On page 36 of the agenda paper, under ‘Route 1’, amend paragraph 3, second sentence, so that it now reads as follows:

“Objectives of this plan include improved legibility and comprehension for bike riders and providing greater safety overall, particularly on the existing shared use paths where cyclists share footpaths with pedestrians.”

(k). On page 36 of the agenda paper, under ‘Route 1’ amend paragraph 4, first sentence, by changing ‘Birriga Street’ to ‘Birriga Road’.

(l). On page 36 of the agenda paper, under ‘Route 1’ amend paragraph 4 by deleting the second sentence and replacing with the following:

“The Birriga Road route connects to the north side of Old South Head Road at Victoria Road. Improving the connectivity and safety of the shared use path (SUP) on the north side of Old South Head Road will enhance its use and thereby balance loads between the SUPs on the north and south sides of Old South Head Road. In this way, bikes are much more likely to travel in the direction of the morning and afternoon peak time traffic, leading to an increased percentage of single direction use and improved pedestrian safety.”

(m). On page 36 of the agenda paper, under ‘Route 3’, replace the third sentence with the following:

“The route through Waverley Park and Henrietta Street is largely complete, subject to proposed changes that include the intersection of Henrietta Street and Salisbury Street.”

(n). On pages 44 – 46 of the agenda paper, delete the second paragraph of descriptions that commence with the word, “This facility type……” for all types of infrastructure treatments.

(o). On page 49 of the agenda paper, make the following changes to ‘Table 2’:

(i). In the table heading, add “(SUP)” after the words “shared use path”. (ii). Add a new second column to the table that identifies the Priority Route No. (iii). At No. 1, under location, move “(Bondi Road to Victoria Street)” to No. 2 and change “Victoria Street” to “Victoria Road”. (iv). At No. 2, under the section, ‘Existing and Proposed Infrastructure Treatment” replace the existing wording with the following:

This is Page 4 of the Minutes of the Finance, Ethics & Strategic Planning Committee Meeting held on Tuesday, 3 September 2013.

MAYOR 242

“Existing SUP on the south side of Old South Head Road to be upgraded with new pavement markings and regulatory signage. Work with Woollahra Council to install kerb ramps across the exit of Syd Einfeld Drive at Old South Head Road so that there is access to the SUP on the north side of Old South Head Road. Behavioural signage to be installed in problem areas.”

(p). On page 51 of the agenda paper, under ‘Table 3: Priority route treatment’, remove the line that reads, “Install No Right Hand Turn from Martins Avenue to Penkivil Street”.

(q). On page 61 of the agenda paper, under ‘Route L’, add a second sentence to read as follows:

“Install shared use path behavioural signage.”

2. Receive a report with the outcomes of the public exhibition period in November 2013.

3. During the public exhibition period of the draft Waverley Bike Plan, run consultation sessions with local residents on shared use paths, including Old South Head Road and Oxford Street Mall. BikeEast and the appropriate precinct committees should also be consulted.

F-1309.3 Interim Heritage Orders (A13/0492)

Report dated 21 August 2013 from the Director, Planning and Environmental Services regarding authorisation given to local councils which allows them to make Interim Heritage Orders.

MOTION / DECISION (Betts / Goltsman)

That Council receive and note the report.

F-1309.4 September 2013 Information Bulletin

Reports were provided in the September 2013 Information Bulletin distributed separately with the Agenda.

This is Page 5 of the Minutes of the Finance, Ethics & Strategic Planning Committee Meeting held on Tuesday, 3 September 2013.

MAYOR 243 MOTION / DECISION (Goltsman / Burrill)

That the September 2013 Information Bulletin be received and noted.

F-1309.5 Bondi Junction Complete Streets Project (A12/0422-03)

Report dated 26 August 2013 from the Director, Planning and Environmental Services recommending endorsement of the Bondi Junction Complete Streets Project Report for public exhibition.

A copy of the Bondi Junction Complete Streets Project Report and Appendices (Attachment A) was distributed separately.

MOTION / RECOMMENDATION (Burrill / Cusack)

That Council:

A. Endorse the Bondi Junction Complete Streets Project Report as attached at Attachment A for public exhibition. B. Note that the Bondi Junction Complete Streets Project: - is a high level strategic document to guide detailed designs of the public domain - forms part of Council's vision for Bondi Junction as expressed in Waverley Together 3 C. Note that funding for construction of public domain improvements will be sourced from a combination of capital works budget and Voluntary Planning Agreements. D. Receive feedback from the Bondi Junction Precinct Committee, businesses in the local area and the Waverley Business Forum as part of the community engagement process. E. Note that following the community engagement a further report will be prepared for Council summarising the consultation process and key feedback, recommended revisions to the report if required and to adopt the Bondi Junction Complete Streets Project.

F. Make the following revisions to Attachment A prior to exhibition:

(i) On page 39, under the section, ‘Oxford Street Mall Recommendations’, dot point 3 - revise wording to read, “Develop a night time activation strategy which may include night markets, concerts, performances, buskers, creative lighting of sails and incorporate public art opportunities into the detailed design stage”.

(ii) On page 39, under the section, ‘Oxford Street Mall Recommendations’, dot point 4 - revise wording to read, “Investigate a strategy to make arcades open for

This is Page 6 of the Minutes of the Finance, Ethics & Strategic Planning Committee Meeting held on Tuesday, 3 September 2013.

MAYOR 244 public access 24 hours a day and the use of CCTV to improve opportunities for public art and community safety.”

(iii) On page 39, under the section, Oxford Street Mall Recommendations’ add a new dot point to read, “Investigate free footpath leasing for restaurant seating at night.”

(iv) On page 41, under the section, ‘Public Spaces’ – ‘Fingleton Reserve Recommendations’, delete dot point 4.

(v) Add two new pages after page 55 mapping existing public art and items of cultural interest located within the public domain. Add recommendations supporting public art and items of cultural interest as an integral part of public domain improvements.

(vi) On page 55, ‘Evening Activity, Lighting & Safety’ under ‘Recommendations - Short Term’ - Add a new dot point to read, “Investigate installation of CCTV in Oxford Street Mall”.

F-1309.RM SUBMISSION OF RESCISSION MOTIONS

Rescission motions received after 10am on the next working day following the meeting may not stay action on implementing Council’s decision.

Rescission motions will generally be dealt with at the next Council meeting.

The Chair called for the submission of any rescission motions and none were received.

THE MEETING CLOSED AT 8.20PM.

SIGNED AND CONFIRMED MAYOR 17 SEPTEMBER 2013

This is Page 7 of the Minutes of the Finance, Ethics & Strategic Planning Committee Meeting held on Tuesday, 3 September 2013.

MAYOR 245 MINUTES OF THE COMMUNITY, HOUSING, ENVIRONMENTAL SERVICES & PUBLIC WORKS COMMITTEE MEETING HELD AT THE WAVERLEY COUNCIL CHAMBERS ON TUESDAY, 3 SEPTEMBER 2013

VOTING MEMBERS PRESENT

Cr Mouroukas (Chair) Crs Betts, Burrill, Clayton, Goltsman, Guttman-Jones Kanak and Masselos. Also Present: Crs Cusack, Kay and Strewe.

At the commencement of proceedings at 8.22pm those present were as listed above.

C-1309.O OPENING PRAYER & ACKNOWLEDGMENT OF INDIGENOUS HERITAGE

The Chair read the following Opening Prayer and Acknowledgment of Indigenous Heritage.

Waverley Council respectfully acknowledges our indigenous heritage and recognises the ongoing Aboriginal traditional custodianship of the land which forms our Local Government area.”

C-1309.A Apologies

There were no apologies.

C-1309.DI Declarations of Interest

The Chair called for Declarations of Interest and none were received.

This is page 1 of the Minutes of the Community, Housing, Environmental Services & Public Works Committee Meeting held on Tuesday, 3 September 2013.

MAYOR246 C-1309.1 Park Parade, Bondi - Proposal for one-way traffic southbound with an additional parking lane and traffic calming devices (A10/0459)

Report dated 19 August 2013 from the Director, Corporate & Technical Services about the outcomes of the consultation on the proposal to make Park Parade, Bondi one-way and introduce an additional lane of parking as well as traffic calming devices.

MOTION / UNANIMOUS DECISION (Mouroukas / Betts)

That Council receive and note this report.

C-1309.2 Asbestos Policy - Additional Information (A05/0190)

Report dated 22 August 2013 from the Director, Planning & Environmental Services regarding results of investigation into Clause 9.4.1 of the Asbestos Policy.

MOTION / RECOMMENDATION (Burrill / Goltsman)

That the matter be deferred to allow for Council Officers to prepare a report for consideration at the next Council meeting on what advice would be appropriate for people in the “No Licence Required” category to ensure the safe removal of asbestos.

Cr Kanak voted against the Motion.

C-1309.3 Energy-saving Retrofit Program at Council sites – Outcomes (A12/0419)

Report dated 23 August 2013 from the Director, Planning and Environmental Services about the outcomes of the recently completed energy efficiency retrofit program at Council's top 10 sites.

MOTION / UNANIMOUS DECISION (Goltsman / Clayton)

That Council receive and note this report.

C-1309.4 Lifeguard Season 2012/13 (A06/2019)

Report dated 18 August 2013 from the Director, Public Works and Services about the lifeguard season 2012/13.

This is page 2 of the Minutes of the Community, Housing, Environmental Services & Public Works Committee Meeting held on Tuesday, 3 September 2013.

MAYOR247 MOTION / UNANIMOUS DECISION (Betts / Clayton)

That Council receive and note this report.

C-1309.5 Tree Management Policy Review (A02/0760-04)

Report dated 22 August 2013 from the Director, Public Works and Services about the review of Council’s Tree Management Policy.

MOTION / RECOMMENDATION (Mouroukas / Goltsman)

That Council:

1. Receive and note this report.

2. Adopt the revised Tree Management Policy subject to the following:

(a). On page 67 of the agenda paper, amend bullet point 3, under Section 1.2 – ‘Pruning Clearances for Street Trees’ so that it now reads as follows:

‘branches overhanging into properties to be 3 metres clear of structures.’

(b). On page 77 of the agenda paper, amend bullet point 4, under Section 1.2 – ‘Tree Assessment’ so that it now read as follows:

‘its location within 3 metres of a residence, main building or other significant structure.’

3. Include the ‘Acknowledgement of Indigenous Heritage’ statement on the inside cover or in another appropriate place in the Policy.

Division For the Motion: Crs Betts, Burrill, Clayton, Goltsman, Guttman-Jones and Mouroukas. Against the Motion: Crs Kanak and Masselos.

C-1309.RM SUBMISSION OF RESCISSION MOTIONS

This is page 3 of the Minutes of the Community, Housing, Environmental Services & Public Works Committee Meeting held on Tuesday, 3 September 2013.

MAYOR248

Rescission motions received after 10am on the next working day following the meeting may not stay action on implementing Council’s decision.

Rescission motions will generally be dealt with at the next Council meeting.

The Chair called for the submission of any rescission motions and none were received.

THE MEETING CLOSED AT 9.32PM

SIGNED AND CONFIRMED MAYOR 17 SEPTEMBER 2013

This is page 4 of the Minutes of the Community, Housing, Environmental Services & Public Works Committee Meeting held on Tuesday, 3 September 2013.

MAYOR249 General Managers Report

Joint Venture between Waverley and Woollahra Councils to construct and operate a depot facility at 67A Bourke Road, Alexandria (A12/0782)

Report dated 6 September 2013 from the General Manager in respect to negotiations regarding a joint venture to construct and operate a central depot facility at 67A Bourke Road Alexandria.

Recommendation: That:

1. Council receive and note the report regarding the proposed joint venture between Waverley and Woollahra Councils to construct and operate a central depot facility at 67A Bourke Road, Alexandria.

Purpose of the Report

The purpose of the report is to advise Council of the current status of the proposal to construct a central depot facility at Alexandria which is to be jointly occupied by Waverley and Woollahra Councils.

Background

Waverley and Woollahra Councils have, over a number of years, been meeting at an officer level to discuss the issues facing both councils in regard to the need to vacate their current central depot facilities in Portman and O’Dea Streets, with a view to occupying a new site as a joint venture.

Waverley Council’s current depot facility in Portman Street is located within the Green Square Town Centre development area and the site is integral to the primary infrastructure corridor to the Town Centre. Therefore Waverley Council needed to progress the identification of an appropriate site and preparation to transition from the existing site to a new depot facility.

In preparing the strategy for identification of the site and the development of a new depot facility, Waverley and Woollahra, at an officer level, identified their respective requirements for the joint occupation of a depot facility. Waverley Council has proceeded to purchase an appropriately zoned property at 67A Bourke Road, Alexandria. Waverley Council has also processed a development application approval for a depot facility specifically designed to house plant, equipment and staff requirements for both Waverley and Woollahra Councils, and it also includes a provision for housing the waste services section of the City of Botany Bay.

250 General Managers Report

The approved development application consists of a two storey open decked car parking / garage area with an administration /amenities / office building attached at the north eastern end of the site. The administration area will be housed above the truck garaging / workshop and storage area and will comprise a single level plus mezzanine area totalling 1200m2 and accommodating approximately 50 staff.

Waverley and Woollahra officers interrogated the respective footprint allowances and agreed that the share of costs associated with the joint occupancy of the central depot facility would be 59% to Waverley Council and 41% to Woollahra Council. It is assumed that the occupation by City of Botany Bay will be on a tenancy basis.

A summary of the current estimate of costs associated with purchase of the land, construction of the depot facility and fit out of the building is detailed below.

Item Cost Purchase of 67A Bourke Road, Lots 12-16 $9,500,000 Design and construction of depot $10,550,000 Fit out of specialist areas $1,150,000 Contingency $1,590,000 Project Management $250,000 TOTAL $23,040,000

The purpose of the current estimate is to provide an indicative cost should Woollahra Council wish to become a co-owner of the facility. The estimate indicates that the initial capital contribution by Woollahra Council into this project would be in the order of $9,500,000.

Council would be aware that Waverley and Woollahra Councils have worked in partnership before in operating a joint venture enterprise, namely the Waverley/Woollahra Process Plant Joint Venture.

As part of the discussions between the two councils it has been agreed that given that there would be one store and one mechanical workshop operated jointly when the co-location occurs a number of functions needed to be managed centrally as follows:

. Depot management including property maintenance and operations . Depot reception . Mechanical workshops . Store

The preferred methodology for providing these centralised activities is along similar lines to the establishment of the entity known as the Waverley Woollahra Process Plant Joint Venture. However, this arrangement is yet to be agreed to by both parties.

A Working Group has been established at officer level, including officers from both Waverley and Woollahra Councils to analyse the issues that need to be addressed in respect to the transition to an operational model that suits the joint venture proposal.

251 General Managers Report

Waverley Council has recently written to the General Manager of Woollahra Council seeking confirmation that Woollahra Council wishes to enter into arrangements to jointly occupy the new depot facility at 67A Bourke Road, Alexandria and whether the occupancy is to be undertaken on a shareholder basis or as a tenant.

Recommendation: That:

1. Council receive and note the report regarding the proposed joint venture between Waverley and Woollahra Councils to construct and operate a central depot facility at 67A Bourke Road, Alexandria.

252