Board Papers 19 September 2019

Board

Papers

19 September 2019 10.00am

Jubilee Room NSW Parliament House

Macquarie Street, Sydney

Board Papers 19 September 2019

Contents 1. Welcome & Acknowledgement to Country ...... 3 2. Attendees and apologies ...... 3 3. Presentations & Guests including Parliamentary Members ...... 4 4. Meeting Opening ...... 4 4.1 Confirmation of previous minutes ...... 4 4.2 Actions arising from previous minutes ...... 4 4.3 Correspondence ...... 5 4.4 Consideration of Late Business ...... 5 4.5 Declaration of Interest ...... 5 5. Reports ...... 6 5.1 Chairman’s minute ...... 6 ...... 6 5.2 Department of Premier & Cabinet update ...... 7 5.3 Department of Planning, Industry & Environment update ...... 8 5.4 General Managers’ Committee report ...... 12 5.5 Management report of Chief Executive ...... 14 6. Matters for Strategic Decision Making ...... 17 6.1 ISJO’s Business Model Options ...... 17 6.2 NSW Government’s Joint Organisation Capacity Building Fund ...... 18 6.3 Western Sydney and Illawarra Shoalhaven Roadmap to Collaboration ...... 20 6.4 South Coast Councils’ Forum ...... 22 7. Matters for Board Endorsement ...... 24 7.1 ISJO’s End of Year Statements FY 18/19 ...... 24 7.2 ISJO Collaborations and Shared Services Summary – FY 18/19 ...... 25 7.3 Illawarra District Weeds Authority Agreement ...... 26 8. Matters for Noting ...... 27 8.1 Smart Water Project Media Coverage ...... 27 8.2 IDWA’s David Pomery Awarded the NSW Stephenson Local Government Weeds Professional Award ...... 28 8.3 ISJO Expenditure and Progress Report for JO Establishment Funding ...... 29 8.4 Community Recycling Centres – Communication Funding – received ...... 30 9. Late Business item ...... 31 10. Next Meeting...... 32

Illawarra Shoalhaven Joint Organisation 2 Board Papers 19 September 2019

1. Welcome & Acknowledgement to Country The Hon. Gareth Ward MP, Minister for Families, Communities and Disability Services and Member for Kiama, will open the meeting with the Welcome and Acknowledgement to Country.

Possible time for discussion on topical issues as requested.

2. Attendees and apologies Department Planning, Industry & Member Council voting delegates: Environment: Office of Local Government Wollongong City Elizabeth Dixon, Council Engagement Manager Clr Gordon Bradbery, Chairman Clr David Brown ISJO Leanne Taylor, Chief Executive Shellharbour City Tracey Maguire, Procurement Coordinator Clr Marianne Saliba, Deputy Chairman Charmain North, Executive Assistant Clr John Murray Guests Kiama Municipal David Hartmann, Project Director, Corridor Clr Mark Honey Preservation, Transport NSW Clr Neil Reilly Geoff Cahill, Director Corridor Preservation, Transport NSW Shoalhaven City Dr Chris Beer, Project Manager Corridor Clr Amanda Findley Preservation, Transport NSW Clr John Wells

Member Council General Managers Non-voting Delegates Carey McIntyre, Shellharbour City Kerry McMurray, Kiama Municipal Stephen Dunshea, Shoalhaven City Apologies Greg Doyle, Wollongong City

Department of Planning Industry and Environment: Regional NSW Anthony Body, Director Illawarra Shoalhaven Kirstan Fulton, Deputy Director Illawarra Shoalhaven

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3. Presentations & Guests including Parliamentary Members Parliamentary Members: The Hon. Gareth Ward MP, Minister for Families, Communities & Disability Services The Hon. Shelley Hancock MP, Minister for Local Government The Hon. Rob Stokes MP, Minister for Planning & Public Spaces The Hon Andrew Constance MP, Minister for Transport & Roads Greg Warren MP, Shadow Minister for Local Government, Shadow Minister for Western Sydney

Presentation: Dr Chris Beer, Transport NSW – Orbital Stage 2 project. David Hartmann, Project Director, Corridor Preservation, Transport NSW Geoff Cahill, Director Corridor Preservation, Transport NSW

4. Meeting Opening 4.1 Confirmation of previous minutes Recommendation that the Board endorse the minutes of the meeting held on 14 June 2019 hosted by Kiama Municipal Council.

4.2 Actions arising from previous minutes 4.2.1 Local Government Elections 2020 On 30 August 2019 IPART submitted its Final Report on the review on the costs of local government elections to the Minister for Local Government. The Final Report recommends a costing methodology to be applied in determining the amount the NSW Electoral Commissioner charges councils for local government election services. The Minister is currently considering the Report - Regional Procurement of election providers will be investigated after formal notification is received from the Minister. 4.2.2 ISJO Insurances Immediately after the June Board Meeting both Statewide Mutual and Civic Risk Mutual were approached to provide a quote for ISJO business insurance for the next three years. Unfortunately Civic Risk Mutual are unable at this time to reduce their premium from approximately $17,000 as ISJO is not able to join the pool. This is because Civic Risk Mutual can only deal with wholesale clients and one of the ASIC rules to define wholesale business as opposed to retail is that the member must have more than 20 employees. As ISJO has 9 employees, Civic Risk Mutual will need to apply for an exemption from ASIC – this was discussed at their Executive Meeting on 11 September, the outcome of which that they are now commencing the exemption application process. This process is likely to take up to 3 months after which they have indicated that the next year’s insurance premium would be $9,000. For following years the premium may shift by 5% but this depends on the total pool. See Attachment 1 for further information. Statewide Mutual have provided their 3 year quote offering ISJO insurance for zero premium – Attachment 2. A comparison of insurance coverage between the two providers has also been developed where there is no material difference between insurance coverage – Attachment 3.

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Recommendation: That the ISJO Board endorse the recommendation to accept the Statewide Mutual quote, saving the organisation approximately $9,000 pa for the next three years.

4.2.3 IDWA Aerial Spraying Consultants ‘Wild Matters’ has been engaged to undertake the review of the IDWA Aerial Spraying practice using Glyphosate. The final report from this engagement is due mid- November 2019.

4.3 Correspondence Attachment 4 - Letter from Deputy Premier re Snowy Hydro Legacy Fund Attachment 5 – Email from Minister Hancock re Joint Organisation’s funding Copies are available on ISJO extranet

4.4 Consideration of Late Business The ISJO Constitution allows for the consideration of late business if, at the commencement of the meeting, items are listed for possible discussion at the conclusion of tabled business and if there is general agreement by delegates that it is appropriate to discuss the matters on the day. Recommendation that any items of late business be noted for later discussion.

4.5 Declaration of Interest In accordance with ISJO’s Code of Meeting Practice and specifically Section 451 for the Local Government Act 1993, declarations of interest are required by Councillors and designated staff attending the meeting.

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5. Reports 5.1 Chair’s minute

Recommendation That the information be received and noted.

I’m pleased to advise the NSW Government has invited both myself and our Chief Executive to represent the Illawarra Shoalhaven Joint Organisation (ISJO), together with Chairs and Chief Executives from three other Joint Organisations (JOs) to form a NSW Joint Organisation Steering Committee that reports direct to the Minister for Local Government. This NSW Joint Organisation Steering Committee, representing the 13 JOs in NSW, will focus on developing strategy for business models to ensure financial sustainability, making recommendations, communicating case studies and providing advice to the Minister for Local Government, Shelley Hancock. This is a great opportunity to get things done by elevating the matters that we consider important for ISJO into a focussed State Government Forum where co-design principles will be followed.

This Steering Committee is just one example of how ISJO works closely with the NSW Government to identify regional priorities, plan and deliver projects. Over the years that I’ve been the Chair of ISJO and its earlier iterations, our partnership with our Regional NSW (aka DPC) and our Office of Local Government colleagues has resulted in the planning for and delivery of a large number of regional projects. For us in the Illawarra Shoalhaven it’s all about regional relationships and collaboration.

The most recent of these collaborative projects is the Western Sydney Illawarra Shoalhaven Roadmap to Collaboration which will be formally launched the afternoon of our September Board meeting. This project is important as ISJO will be providing the governance framework for the project in formalising partnerships with neighbouring Councils and entities in the Western and SW Sydney region as well as leading a number of the strategies. This is going to be an interesting time as ISJO’s influence ramps up from providing not only a leadership role for the Illawarra Shoalhaven region, but also leading cross regional opportunities. It is important that ISJO realise its potential and the expectation placed upon its role in facilitating economic and community development opportunities for our region.

Clr Gordon Bradbery AM ISJO Chair

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5.2 Department of Premier & Cabinet update Referred by: Anthony Body, Director Illawarra Shoalhaven Attachments: Attachment 6A and 6 - DPC Update

Recommendation That the Board accept and note the report

Background

See attachment 6A for a copy of the report.

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5.3 Department of Planning, Industry & Environment update Referred by: Elizabeth Dixon, Council Engagement Manager Attachments: Nil

Recommendation That the Board accept and note the report.

Background Funding Update On 31 July 2019 at the Joint Organisations Chairs meeting, the Minister for Local Government announced a one-off funding opportunity of $150,000 per JO in addition to the original $300 000 establishment payment. That is an additional investment of $1,950,000 in the success of this collaboration model and is designed to further strengthen to capability of JOs to partner with the State Government.

Over the coming weeks, OLG will work with you to identify and develop suitable projects to increase the organisational capacity to better enable the JO to work with state agencies to delivery regional priorities into the future.

Summary of recent circulars 19-18 Calendar of Compliance and Reporting Requirements 2019-2020 The Calendar of Compliance and Reporting Requirements has been updated for the 2019-20 financial year and is available on OLG’s website at http://www.olg.nsw.gov.au (under circulars). The Calendar of Compliance and Reporting Requirements 2019-20 includes key statutory and other reporting deadlines for councils.

Councils’ statutory and other reporting deadlines are not limited to those included in the Calendar of Compliance and Reporting Requirements 2019-20. For new councils, some dates may have changed by Proclamation.

19-17 Appointment and dismissal of senior staff Purpose is to remind councils of the requirements of the Local Government Act 1993 (the Act) relating to the appointment and dismissal of senior staff other than the general manager. There have been no changes.

19-16 New Property Acquisition Standards to apply immediately to all acquiring authorities in New South Wales, including all general purpose and county councils The Department of Finance, Services and Innovation (DFSI) has produced revised Property Acquisition Standards that apply to all acquiring authorities in NSW, including General Purpose and County Councils. The objectives of the revised Property Acquisitions Standards are to:-  establish key requirements for all agencies that undertake acquisitions under the Land Acquisition (Just Terms Compensation) Act 1991;  commit all acquiring authorities to improving the experience of property owners when dealing with the compulsory acquisition of their land; and  increase the consistency and transparency of the compulsory acquisition process, across

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all acquiring authorities. Council staff and consultants undertaking the acquisition of land, should review their current processes to ensure they comply with the revised Property Acquisition Standards.

19-15 End of Year Financial Reporting 2018-19 End of year financial reporting information has been updated for 2018-19. A circular was issued to provide guidance on preparing the 2018-19 Financial Statements. The Financial Data Return (FDR) was emailed to councils on 5 July 2019. The Financial Statements and FDR are to be sent electronically to OLG by 31 October 2019.

The Code of Accounting Practice and Financial Reporting (Code) - Update No. 27 is available on OLG’s website at https://www.olg.nsw.gov.au/strengtheninglocal-government/supporting-and-advising- councils/accounting-practice. Code of Accounting Practice and Financial Reporting Circular 19-04, issued 29 March 2019

19-14 Recent amendments to the Local Government Act 1993 The Local Government Amendment Act 2019 was assented to on 24 June 2019 and a number of provisions came into effect on 25 June 2019. This has amended the Local Government Act 1993, including:  Councils have until 1 October 2019 to resolve to enter into arrangements with the Electoral Commissioner, or an electoral services provider, to administer the 2020 ordinary council elections, and have until 1 January 2020 to enter into these arrangements (commenced).  Councils formed in 2016 will be have their rate path freeze extended until 1 July 2021, unless they resolve to apply to the Minister to vary the existing rates path freeze determination and the determination is varied (commenced).  The tendering threshold, below which councils do not have to undertake a competitive tendering process, has been increased to $250,000. However, the threshold for contracts involving services provided by council employees at the time of entering the contract remains at $150,000 (commenced).  The Public Interest Disclosures Act 1994 has been amended with the intention of allowing councils to report on their obligations under that Act in their own annual reports under the Local Government Act 1993, rather than by the current requirement to table a special report in Parliament (commenced). Councils should also note that further changes to relevant legislation and regulations will be made to facilitate this.  Councils can procure the services of pre-qualified disability employment organisations approved under the Public Works and Procurement Act 1912, without having to go to tender (commenced).  Councils should also note that the Minister intends to enable, by a future regulation, councils to access the National Prequalification System for Civil Construction (Roads and Bridges) Contracts after further consultation.  Councils are able to delegate regulatory functions to another council, and to joint organisations of which they are not a member, with approval of that council or joint organisation. Further, joint organisations will be able to sub-delegate regulatory functions to their committees, in addition to their Executive Officer (commences by proclamation).  Regulations are able to be made to exempt councils from the need to publicly notify fees relating to certain defined commercial activities and from the need to determine those fees based on an

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adopted pricing methodology. This will ensure councils are not placed at unfair disadvantage during commercial negotiations (commences by proclamation).  Regulations are able to be made to prescribe a scheme for mutual recognition of council approvals for regulatory activities issued under section 68 of the Act (commences by proclamation).

19-13 The development of template social media and councilor/staff interaction policies – initial consultation In support of the prescription of the new Model Code of Conduct for Local Councils in NSW, the Office of Local Government (OLG) is developing template policies on social media use and councilor/staff interactions.  The template policies will be designed to be policies that incorporate and reflect best practice in the sector using a “best of breed” approach to existing council policies.  The template policies will not be mandatory and councils will be free to choose whether to use them or to adapt them for their own purposes. If adopted, the policies will operate to supplement the provisions of councils’ adopted codes of conduct. OLG sought examples from councils (closed on 26 July) and will now use information gathered during the initial consultation to develop drafts of the template policies. OLG will consult further with the sector on the drafts of the template policies.

OLG also invited councils to identify other template governance policies they would like OLG to develop.

19-12 Consultation by IPART on recommended reforms to local government election costs and extension of the deadline for councils to make a decision on the administration of their elections The Government has asked the Independent Pricing and Regulatory Tribunal (IPART) to review the costs of conducting local government elections in NSW. IPART is now seeking feedback on its recommended changes to what councils pay for election services provided by the NSW Electoral Commission (NSWEC). IPART’s draft report and other information is available on IPART’s website. The Local Government Act 1993 (the Act) has been amended to extend the timeframes for councils to make a decision on the administration of their September 2020 ordinary elections so that these decisions may be made in light of the outcomes of IPART’s inquiry.

Other amendments made to the Act mean that councils are no longer able to administer their own elections. If councils do not enter into an election arrangement with the NSWEC, they must engage an electoral services provider to administer their elections.

19-11 Release of IPART Reports into rating and compliance matters for consultation The Government is releasing the final reports on three IPART reviews for feedback prior to developing final responses. The reviews focused on complex areas of government regulation that require detailed consideration. Together the recommendations propose changes to local government which, if implemented, will have a significant impact on councils and communities.

Some of the recommendations have already been implemented through other reform initiatives. The reviews are: 1. Review of the Local Government Rating System (submissions close 13 September)

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2. Review of Reporting and Compliance Burdens on Local Government (submissions close 25 October) 3. Review of Local Government Compliance and Enforcement (submissions close 15 November)

Councils are encouraged to provide feedback on the recommendations in each report by the relevant closing dates to further inform the Government’s response.

GC - 148 - 2019-20 Financial Assistance Grants (FAGs) – advance payment and on-going transition to implement improvements to the existing allocation model The Deputy Prime Minister, Minister for Infrastructure, Transport and Regional Development, the Hon Michael McCormack MP has advised that the Australian Government will again bring forward the first two instalments of the estimated 2019-20 FAGs. The advance payment will represent approximately 52% of the amount council is entitled to. Further adjustments will need to be made to the remaining payments to take into account:  the determination by the Commonwealth Treasurer of the final adjustments for 2018-19  the Grants Commission's recommendations for 2019-20. While transition arrangements remain in place, the Commission is continuing to consider ways to re- direct the General Purpose Component (GPC) of the grant towards councils with the greatest relative disadvantage. The 2019-20 GPC grant will be calculated using the 2018-19 year’s allocation. No council will receive less than in 2018-19. What this will mean for your council  The balance of the grant will be paid with a corresponding reduction to the quarterly instalments during 2019-20.  The first quarterly instalment is expected to be paid to councils in mid-August 2019, with subsequent instalments in November 2019; February 2020; and May 2020.  All councils will be advised by letter of individual council’s estimated entitlements for 2019-20 FAGs.

19-10 Consultation on webcasting guidelines On and from 14 December 2019, all councils in NSW will be required to webcast meetings of the council and committees whose membership comprises only of councillors. Many councils already webcast their meetings. The Office of Local Government (OLG) is seeking to utilise the experience and expertise of these councils to provide guidance to those councils that do not currently webcast meetings. While the formal submission period finished on 12 July, if you have examples you would like to share with OLG please send them to your Council Engagement Manager. The guidance will include:  case studies of different models for webcasting meetings  strategies for managing defamation and other legal risks  information about councils’ obligations with respect to privacy and records management when webcasting meetings. Back to top

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5.4 General Managers’ Committee report Referred by: Leanne Taylor, Chief Executive Attachments: ISJO Collaborations and Shared Services Annual Report 2018 - 2019

Recommendation That the Board receive and note the report.

Background The General Managers’ Committee met this reporting period on Thursday 5 September. The outcomes for the meeting are as follows:

5.4.1 ISJO Business Model ISJO’s financial viability was discussed and a number of additional options for ISJO’s business model were reviewed. (These options will be further described in the next section of the Board papers.) While recognising the need to position the JO for a sustainable future, the General Managers were also cognizant of the need to ensure member councils’ needs were met in terms of advocacy and inter-council collaborations. General Managers expressed concern that the amount of time required to establish entrepreneurial activities could result in these other important requirements taking a lesser priority. The general consensus was to explore options to strengthen the secretariat support to allow the Chief Executive to maintain a strategic focus and undertake advocacy related to regional matters such as strategic town planning, transport, infrastructure with NSW Government Agencies and Ministers.

There was consensus among General Managers that the Regional Procurement Program continue with the recruitment of a Regional Procurement Manager to take the program to the next level; and that any other consideration of entrepreneurial activity would need to ensure a risk management perspective following a staged approach.

5.4.2 ISJO Staffing Capabilities The contracts for both the Manager Regional Programs and Operations and Office Manager will come to an end in late 2019. This provides an opportunity to review the staffing structure and capabilities required to support any changes to the ISJO Business Model. The General Managers reviewed an options paper where a range of structures and roles were explored - the outcome was to ensure that any new structure needed to support the Chief Executive’s role in undertaking regional leadership and advocacy; partnering with the NSW Government and regional stakeholders; and having oversight of inter-council collaborations and shared services.

5.4.3 State Government funding for JOs Consideration was given to a range of options ISJO could undertake to build capacity and financial viability that satisfy the NSW Government’s funding criteria for the $150,000 grant offered to all Joint Organisations recently. These options included commissioning studies to develop evidence to underpin future grant applications; commissioning consultancies to undertake business case analysis for entrepreneurial activities; and so on. Some of the ideas suggested were related to works for bridge building, trades contracts, culverts as well as the

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exploration of a Regional Tourism Entity. A workshop has been arranged with Regional NSW and the Office of Local Government for General Managers and ISJO’s Chief Executive on Friday 27 September to fully explore the opportunities to build the capabilities of ISJO for a sustainable future.

5.4.4 City Deals Narrative The regional working group led by RDA Illawarra (where ISJO’s Chief Executive; and Wollongong City Council’s General Manager and Director Community Services also participate) has now developed a draft City Deals Narrative. The draft City Deal Narrative was reviewed by the General Managers who reinforced the need to approach this from a regional context.

Following from the meeting, both ISJO’s Chief Executive and Wollongong City Council’s General Manager have held further discussions with RDAI Chief Executive – the outcome is that while the Narrative is for a Wollongong City Deal, the economic reach of the City Deal will be regional.

5.4.5 ISJO Collaborations and Shared Services Annual Report and presentation ISJO’s Regional Programs and Operations, Jim Fraser gave a presentation summarising the Annual Report that has been added to the extranet for your information. General Managers gave recognition to the volume of work undertaken by ISJO to develop the capacity of member Councils.

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5.5 Management report of Chief Executive Referred by: Leanne Taylor, Chief Executive Attachments: Nil

Recommendation That the Board: 1. Receive and note the Report

This reporting period has been a productive time for ISJO, with the following outcomes:

5.5.1 Advocacy

 ISJO Regional Priority: Connectivity Princes Highway Corridor Study ISJO’s Chief Executive provided feedback on ISJO’s transport priorities for the Princes Highway at a regional consultation session facilitated by consultants GHD on 20 August.

Western Sydney – Illawarra Shoalhaven Roadmap to Collaboration ISJO’s Chief Executive met with Minister Ward on 2 August to provide a briefing on the Launch event, the Roadmap and those strategies ISJO will be responsible for delivering.

Wingecarribee Shire Council ISJO’s Chief Executive met with General Manager Ann Prendergast on 23 July. The purpose of the meeting was primarily a ‘meet and greet’ plus to explore future collaborations. At this stage Wingecarribee Shire Council will continue with the regional waste and illegal dumping programs that ISJO facilitates and have indicated an interest in attending ISJO forums relating to transport connectivity.

 ISJO Regional Priority: Jobs Growth Investment Showcase of Illawarra Shoalhaven Activation Precincts The NSW Government has created Activation Precincts across the state to ensure a focus on jobs growth, investment and economic activity. In the Illawarra Shoalhaven region there are 10 of these Activation Precincts:  University of Wollongong Innovation Campus  Wollongong Central Business District  Port Kembla International Trade Hub  West Dapto Employment Lands  Tallawarra Business Park  Illawarra Regional Airport Technology Park  Shell Cove Business and Technology Park  Bombo Quarry Redevelopment Precinct  Albatross Aviation Technology Park  Flinders Industrial Estate

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ISJO and its four member councils have partnered with NSW Department of Planning, Industry and Environment (DPIE) and NSW Treasury to run an Investment Showcase on 11 and 12 November 2019 where representatives from the NSW Government investment attraction ecosystem (Invest NSW, Invest Regional NSW, Precinct Activation, Sector Strategy and International Trade Teams and Resources within NSW Treasury, DPIE will visit our region’s Activation Precincts with a view to increasing their knowledge and awareness of investment opportunities.

 ISJO Regional Priority: Liveability Domestic and Family Violence After the Illawarra Women’s Health Centre presentation at the June Board meeting, where support for research into a new service delivery model to be delivered in purpose built Trauma Centres was sought, ISJO facilitated a meeting with the University of Wollongong’s Global Challenges team – the outcome of which is that funding will now be provided to secure the research needed to develop a new service delivery model. In addition to this ISJO has partnered with Shoalhaven City Council to involve the Illawarra Women’s Health Centre in the masterplanning for the Shoalhaven Community and Recreational Precinct at Bomaderry, so that a pilot Trauma Centre can be included in the planned development.

Secure Electricity Supply ISJO’s Chief Executive attended the first meeting of the Endeavour Energy Peak Customer and Consultative Council meeting where supply issues experienced in some Shoalhaven villages was reported – planning is now underway to prepare for a supply demand study for the villages of Milton and Huskisson.

Property Council ISJO’s Chief Executive gave a briefing to the Property Council’s Illawarra Committee on ISJO’s regional priorities, regional strategies and so on this reporting period. In addition to this, ISJO’s Chief Executive joined Shoalhaven City Council’s Chief Executive Officer on the panel discussion at the Property Council’s lunch event held in Nowra on 6 September.

5.5.2 JO Chairs’ Meeting All JO Chairs and CE/EOs met at NSW Parliament House on 1 August. ISJO’s Chair, Clr Gordon Bradbery was the appointed meeting Chair, and ISJO’s Chief Executive undertook the secretariat function. Following is a summary of the meeting’s outcomes:  Deputy Secretary for Local Government and Regional Planning, Tim Hurst, explained his expanded portfolio which now includes local and regional planning; planning policy; and local government. The portfolio’s reforms (which have been outlined in 5.3 above) were discussed. Chairs provided feedback on the IPART Review of the Cost of Council Elections in suggesting that the timeframe for pre-polling be reduced. The cost of external audits for Joint Organisations was also discussed, with Tim Hurst and the JO Chairs deciding to contact the Auditor General to express their concern.  Steve Orr, who filled in for Gary Barnes, Coordinator General Regions Industry and Agriculture and Resources with the Department of Planning, Industry and Environment outlined the Premier’s priorities and the priorities for Regional NSW.  Clr Linda Scott, LGNSW’s President gave an overview of the advocacy LGNSW are

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undertaking and discuss upcoming forums, two of which are: JO and ROC Taskforce to be held on 1 and 2 October; and Crown Lands Forum to be held in November.  Minister Ward also attended to give an update on his portfolio.  Minister Hancock gave an overview of her portfolio’s reforms and announced additional funding for FY 19/20 of $150,000 per Joint Organisation.  The formation of a NSW JO Steering Committee was also agreed to, with Illawarra Shoalhaven JO, Canberra Region JO, Namoi JO and Northern Rivers JO Chairs and CE/EOs participating. This Committee is charged with exploring possibilities of funding models for JOs, identifying and sharing examples of best practice, investigating opportunities for JOs to generate new revenue streams, and developing new tools/methodologies for all JOs to share. This Steering Committee will report direct to Minister Hancock. Throughout the meeting, JO Chairs questioned the presenters on how Joint Organisations can better partner with the State Government to co-design regional service delivery; how Joint Organisations can access NSW data to inform strategic decision making; and how Joint Organisations can meet both state and local government expectations while remaining viable.

5.5.3 ISJO Member Satisfaction Survey ISJO has engaged IRIS to undertake a member satisfaction survey during October 2019. The purpose of this survey is to create baseline data which will inform a range of ISJO strategies –such as the ISJO Communication Strategy; collaboration and engagement strategies; and the ISJO secretariat function. All Board Members, along with member council staff who participate in inter-council collaborations and working groups will be emailed a survey link in early October. The results of this survey will be reported back at the November Board Meeting.

5.5.4 ISJO Site Visit to Origin Energy’s Hydro-electricity Generator, Kangaroo Valley ISJO facilitated a site visit to Origin Energy’s Hydro-electricity generator in Kangaroo Valley on 12 September – this site visit was offered to all Mayors and General Managers. The Hydro-electricity generator is a significant renewable energy asset in our region and is in the process of undertaking site investigations to double its capacity through duplicating a pipeline which will require significant tunneling up the escarpment. The proposed development will cost approximately $334m and generate around 300 local jobs.

5.5.5 New Collaborations On Monday 2 September Human Resources and Organisational Development Practitioners drawn from eight Councils across not only the Illawarra Shoalhaven but also South West Sydney and the South Coast met at Shellharbour City Council to develop a community of practice. In an environment of needing to do more with less, the idea of collectively coming together to share best practice, resources, share strategic projects and reduce duplication is the driving force for this new collaboration. Recognition needs to be given to the team at Shellharbour City Council for facilitating the event. A strategic plan is now being developed from the outcomes of the event, which will be implemented by this new Community of Practice.

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6. Matters for Strategic Decision Making 6.1 ISJO’s Business Model Options Referred by: Leanne Taylor, Chief Executive Attachments: Nil

Recommendation That the Board 1. Note and receive the Report 2. Discuss and make recommendations based on the business model opportunities listed.

Background When the NSW Government established Joint Organisations as local government entities in May 2018, it required Joint Organisations to undertake a number of additional responsibilities over what was previously required from a Region of Councils. This has meant that ISJO is operating with a deficit budget this financial year, drawing on existing cash reserves to cover a short fall of approximately $115,000. A review of ISJO’s Business Model has identified a number of opportunities that potentially have the ability to not only add value to member Councils, but also have the opportunity to generate an ongoing income stream.

A summary of the opportunities has been distributed to the Board as confidential item.

Reason for Confidentiality: Local Government Act - Section 10A(2)(c) - Information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

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6.2 NSW Government’s Joint Organisation Capacity Building Fund Referred by: Leanne Taylor, Chief Executive Attachments: Nil

Recommendation That the Board: 1. Note and receive the Report 2. Endorse the suggested ideas for expenditure 3. Endorse the Chief Executive to apply for Grant Funding incorporating the outcomes from the Workshop scheduled for 27 September

Background In May 2018 the NSW Government amended the Local Government Act to establish 13 Joint Organisations across regional NSW as local government entities. As local government entities, Joint Organisations are required to implement compliance strategies and measures similar to that of member councils. In addition, one of the primary functions for Joint Organisations is to work closely with NSW Government in the development of regional plans and the implementation of strategy. At the time of establishment each Joint Organisation was granted establishment funding of $300,000 to assist in the development of the organisation and its systems.

Current Situation After a year of operating as a Joint Organisation the majority reported at the JO Chairs meeting in May 2019 that they would be moving into the 19/20 Financial Year with a deficit budget. This is the case with ISJO where we have a deficit of approximately $115,000. After considerable lobbying by all JO Chairs, the Minister for Local Government announced at the most recent JO Chairs meeting in August that she had secured an additional one off grant of $1,950,000 of which each JO will receive $150,000 to develop strategies for financial sustainability.

JO Capability Building Fund Criteria: The Grant funding can be spent on the following strategies: program design; program promotion; program prioritization (EOI process and business case development); funding application assessments; contract management; project management; project and program delivery; funding/project acquittal; and program evaluation.

Projects must meet the following criteria:  Address one or more of a JO’s strategic regional priorities  Deliver measurable outcomes  Demonstrate commitment from member councils to provide in-kind support in the development and or implementation of the project/s  Contribute to a JO Business Plan, demonstrating ongoing financial sustainability.

Ideas for ISJO to Submit for Funding These have been distributed as a confidential item to the Board.

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Financial/Resource Implications Any funding shortfall or funding for ongoing operational activity will need to be funded by the JO. Back to top

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6.3 Western Sydney and Illawarra Shoalhaven Roadmap to Collaboration Referred by: Leanne Taylor, Chief Executive Attachment: Western Sydney and Illawarra Shoalhaven Roadmap to Collaboration (available on the extranet)

Recommendation That the Board: 1. Note and accept the Report 2. Endorse ISJO to establish a governance structure for the Roadmap to Collaboration by way of Associate Memberships and MOUs 3. Endorse ISJO to plan and run two Cross Regional Events in 2020 for Transport and Defence 4. Endorse ISJO establishing a Visitor Economy cross-regional working group in early 2020 5. Acknowledge that ISJO will require additional resourcing to deliver on the priority actions; and give approval for the General Managers to consider what levels additional resourcing will be required when they meet in November.

Background In December 2018 ISJO, the Department of Premier and Cabinet Illawarra Shoalhaven, the University of Wollongong and RDA Illawarra partnered to engage a consultant to develop a Western Sydney – Illawarra Shoalhaven Action Plan. The consultancy engaged to undertake this work was Elton Consulting.

For some time the strategic nature of the relationship between our region and Western Sydney has been recognised, but has not been formally led by key decision makers across both regions. Development of the Action Plan commenced in March with key regional and industry stakeholders from both regions surveyed in April to determine current levels of relationships and engagement; as well as to scope out potential opportunities, challenges and key drivers for change. The outcomes of the survey provided the foundation for a series of workshops where Mayors, General Managers, ISJO’s Chief Executive and other key stakeholders from both regions participate on 29 April and 13 May. It had been intended to have a third workshop to finalise the development of an action plan but this did not occur. After the 13 May workshop the need to step back and firm up cross regional relationships and understanding was recognised prior to developing an action plan. The project then used the data collected to reshape the project into what is now known as the Western Sydney and Illawarra Shoalhaven Roadmap to Collaboration.

Current Situation The Western Sydney and Illawarra Shoalhaven Roadmap to Collaboration is the first step towards unlocking significant growth opportunities for both regions. The Roadmap has identified six priority areas for developing opportunities that are mutually beneficial to both regions:

1. Advanced manufacturing 2. Education 3. Freight and passenger transport 4. Smart City technology 5. Visitor economy

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6. Western Sydney Airport and Aerotropolis

For each of these priority areas a number of potential collaboration opportunities have been identified and documented as priority actions. Of these priority actions, there are a number that require ISJO to take a leadership role. These relate to:

Governance: ISJO will be responsible for establishing a governance structure to support the implementation of the Roadmap to Collaboration. This is likely to be in the form of Associate Membership and Memorandum of Understanding between ISJO and the four SW Sydney councils, WSROC and the Western Sydney City Deal Delivery Office and the University of Wollongong.

Freight and Passenger Transport: A cross-regional forum focusing on Freight and Passenger Transport with the Minister for Transport, the Minister for Regional Transport, representatives from Transport NSW and RMS and UOW Researchers (working on the SWIRL project with IBC) presenting and consulting on initiatives that impact both regions will be run by ISJO. At this stage we are planning to hold this forum in March/April 2020.

In addition to this ISJO will play a role in advocating for a range of transport and infrastructure related projects:

Smart Technology: ISJO’s Illawarra Shoalhaven Smart Regions Strategy will need to be reviewed to explore opportunities for cross-regional projects and data sharing. In addition, additional funding to support any strategies will need to be sourced.

Visitor Economy: ISJO to lead a cross-regional visitor economy working group to develop regional tourism initiatives, visitor experiences and advocate for related infrastructure.

Western Sydney Airport and Aerotropolis: ISJO to partner with the Shoalhaven Defence Industry Group to arrange a Showcase Event in mid to late 2020. The purpose of the event is to expose Western Sydney decision makers to the existing capacity in the Shoalhaven so that any initiatives planned for the Aerotropolis are complementary and collaborative.

Launch Event for the Roadmap to Collaboration The formal Launch of the Roadmap to Collaboration will be held at 4pm on 19 September at the Theatrette in NSW Parliament House. Along with ISJO Board members, Cabinet Members, State Government Agency leadership, Western Sydney, South West Sydney and Illawarra Shoalhaven regional leaders will also be in attendance.

Financial/Resource Implications To undertake these additional functions detailed in the Western Sydney and Illawarra Shoalhaven Roadmap to Collaboration will require resourcing for the Secretariat. Consideration of additional resources will be explored via the OLG Grant application and at the November General Managers’ Committee meeting. Back to top

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6.4 South Coast Councils’ Forum Referred by: Leanne Taylor, Chief Executive Attachments: Nil

Recommendation That the Board: 1. Accept and note the report. 2. Endorse ISJO to provide the Secretariat function for ongoing Forums. 3. Agree to travel to Bega Valley the morning of 28 November to attend the next South Coast Council’s Forum with a site tour the afternoon of 28 November; and a South Coast Council’s Forum meeting the morning of 29 November. 4. Agree to hold the November ISJO Board Meeting at Bega Valley Shire Council on 29 November followed by travel back to the Illawarra Shoalhaven that afternoon.

Background For many years ISJO’s earlier iteration as a Region of Councils - the Southern Councils Group – had membership that included Eurobodalla Shire Council and Bega Valley Shire Councils as well as councils from the Illawarra Shoalhaven. This enabled a forum for a “whole of south coast” consideration of issues to occur. After these two councils chose to align themselves with the Canberra Region, there have been intermittent meetings but without any formal structure.

Shortly after commencing as ISJO’s Chief Executive, I arranged to meet with the two General Managers from Eurobodalla Shire and Bega Valley Shire Councils – the purpose of both was to introduce myself and start relationship building.

Current Situation On 16 August the Mayor and General Manager from Bega Valley Shire Council and the General Manager from Eurobodalla Shire Council met with the ISJO Board Delegates and non-voting Delegates as well as representatives from Regional NSW and Destination NSW at Shoalhaven City Council.

At this South Coast Councils’ Forum the research being undertaken on the whole of the south coast by the University of Wollongong’s (UOW) Blue Economy was explored with presentations from the UOW’s Global Challenges research team.

At the conclusion of the Forum, all participants agreed to meet again in late November 2019 with Bega Valley Shire Council hosting. When considering the date for this to occur (where the ISJO Board were available) it was suggested to align it with ISJO’s Board meeting, ie Coastal Councils meet and tour the Bega Valley priority sites, eg Port of Eden the afternoon of Thursday 28 November. This would be followed with two meetings held in Bega on 29 November: South Coast Councils Forum meeting from 8.30 – 10.00; and the ISJO Board meeting from 10 – 1pm. ISJO Delegates would travel the morning of 28 November and return the afternoon of 29 November, staying in Merimbula overnight on 28 November. The Forum attendees identified the follow topics for future meetings: Coastal Management – resilience; Delivery of infrastructure; Transport; Native Title; Crown Lands Management Financial/Resource Implications

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Additional secretariat function to arrange and facilitate meetings.

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7. Matters for Board Endorsement 7.1 ISJO’s End of Year Statements FY 18/19 Referred by: Leanne Taylor, Chief Executive Attachments: 2018/19 draft Statements which will be tabled at the Board Meeting

Recommendation That the Board: 1. Note the draft 2018/2019 Financial Statements. 2. Approve the application of the signatures of the Chair, the Chief Executive and the Responsible Accounting Officer to the Statements. 3. Approve the referral of the Annual Financial Statements to external auditors for audit.

Background

As part of the process to endorse the work of the audit, the draft Statement for the 2018-19 financial year (including May 2019) is presented to the auditors by Kiama Municipal Council on behalf of ISJO. Kiama Council's Financial Services staff have prepared the draft 2018/2019 Statements which are intended to be tabled at the meeting.

ISJO’s external auditors have been working with Kiama Council staff this month in preparation of their audit later this month.

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7.2 ISJO Collaborations and Shared Services Summary – FY 18/19 Referred by: Leanne Taylor, Chief Executive Attachments: Report on ISJO’s Collaborations and Shared Services for FY 18/19

Recommendation That the Board: Review the outcomes of ISJO’s Collaborations and Shared Services Annual Report 2018-2019 and endorse the continuation of these activities.

Background ISJO facilitates inter-council collaborative working groups with key personnel drawn from a range of disciplines from each member council to deliver on regional priorities. This is an important function that is highly valued by ISJO’s member councils as it enables regional capacity building, business improvements and best practice to become the ‘norm’ across all member councils.

In addition, ISJO operates with an entrepreneurial mindset to reduce duplication across its member councils by operating a range of shared services that ultimately result in collective member council economies of scale with greater reach in achieving regional outcomes.

Current Situation A total of 12 inter-council collaborative working groups were facilitated during ISJO’s first year of operations. The attached report sets out the frequency of these meetings and the outcomes achieved for the 2018 – 19 financial year. Currently ISJO operates three shared services for member councils:  Illawarra District Weeds Authority  Regional Waste and Illegal Dumping Program  Regional Procurement The attached report summarises the outcomes from each of the services for the 2018 – 19 financial year.

Financial/Resource Implications To facilitate these inter-council working groups and oversight of shared services requires resources from ISJO’s Secretariat function. A review of the capabilities required to support this function, as well as accommodate any changes to the ISJO business model is currently being undertaken. Back to top

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7.3 Illawarra District Weeds Authority Agreement Referred by: Leanne Taylor, Chief Executive Attachments: Nil

Recommendation That the Board: 1. Receive and note the report. 2. Accept the delegation of weed control functions under the Biosecurity Act 2015 from Shellharbour City Council, Wollongong City Council and Kiama Municipal Council as the Local Control Authorities to it pursuant to section 377(3) of the Local Government Act. 3. Authorise the Chief Executive to sign any documentation associated with the Illawarra District Weeds Authority Agreement.

Background The Illawarra District Weeds Authority (IDWA) was established in 1992 to undertake weed control functions of priority weeds as listed under the Biosecurity Act 2015 across the three local government areas of Wollongong City, Shellharbour City and Kiama Municipality. The IDWA operates under the auspices of the Illawarra Shoalhaven Joint Organisation (ISJO) on behalf of Kiama Council who is the nominated Manager.

Current Situation The three participating councils have resolved to continue to exercise their weed control functions under the Biosecurity Act 2015 jointly as the IDWA and have entered into a new Agreement in perpetuity for the management of the IDWA by the Illawarra Shoalhaven Joint Organisation. The updated Agreement has been developed, in consultation with the IDWA Committee, which has technical staff and nominated Councillor Representation from all three Councils. The Agreement outlines the joint venture relationship and the roles and responsibilities of all parties under the Biosecurity Act 2015.

Each Council made these resolutions at the following meetings  Kiama Municipal Council: 20 August 2019 (Min. 19/333OC)  Wollongong City Council: 2 September 2019 (Min. 283)  Shellharbour City Council: 3 September 2019 (Min. 170)

Under Section 377 (3) of the Local Government Act 1993: A council may delegate functions to a joint organisation only with the approval, by resolution, of the board of the joint organisation. Back to top

Illawarra Shoalhaven Joint Organisation 26 Board Papers 19 September 2019

8. Matters for Noting 8.1 Smart Water Project Media Coverage Referred by: Leanne Taylor, Chief Executive Attachments: Smart Water Project article on the website

Recommendation That the Board note the media release dated 6 August 2019 which highlighted the work being undertaken on the regional Smart Water Project.

Background Along with introducing smart technology sensors in select storm water drains and gross pollutant traps across the Illawarra Shoalhaven to better understand our waterways and manage storm water effectively, ten high schools throughout the region have been engaged to provide students studying STEM (science, technology, engineering and mathematics) with a real life experience in applying smart technology.

Financial/Resource Implications Nil.

Illawarra Shoalhaven Joint Organisation 27 Board Papers 19 September 2019

8.2 IDWA’s David Pomery Awarded the NSW Stephenson Local Government Weeds Professional Award Referred by: Jim Fraser, Manager Regional Programs and Operations Attachments: Nil.

Recommendation That the Board congratulate David Pomery for receiving the 2019 NSW Stephenson Local Government Weeds Professional Award in recognition of his outstanding contribution to planning and coordinating weed management programs in NSW.

Background In late October the 20th biennial NSW Weeds Conference was held in Newcastle for NSW weeds officers, researchers, industry analysts and policymakers. At this event, the Illawarra District Weeds Authority’s Chief Weeds Officer, David Pomery was announced as the winner of the NSW Stephenson Local Government Weeds Professional Award. The biennial prize is awarded to recognise an outstanding contribution to planning and coordinating weed management programs in NSW.

Nominated by Local Land Services, David was recognised by his peers for his dedication and valuable contribution to land management during his 27 years at the Authority to date. The prize of $1000 from the State Weeds Committee is to be used towards his ongoing professional development.

Financial/Resource Implications Nil.

Illawarra Shoalhaven Joint Organisation 28 Board Papers 19 September 2019

8.3 ISJO Expenditure and Progress Report for JO Establishment Funding

Referred by: Leanne Taylor, Chief Executive Attachments: Expenditure and Progress Report for JO Establishment Funding

Recommendation That the Board note the expenditure and progress of activities funded by the NSW Government to assist Joint Organisation establishment. In order to deliver strategic projects into 2019/20, it is proposed to move the final report to 31 March 2020. This is permitted within the funding guidelines.

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8.4 Additional Grant Funding received for regional Community Recycling Centres Referred by: Jim Fraser, Manager Regional Programs Attachments: Nil.

Recommendation That the Board note the report and update the budget to reflect grant income.

Background ISJO has been successful in securing an additional $100,000 in funding over the next two years (ie $50,000 each year) through the NSW EPA to deliver a communication and education program to raise community awareness of Community Recycling Centres (CRCs). The Southern Region Waste Program, coordinated by ISJO has delivered the CRCs communication program for the ISJO councils and Wingecarribee Shire for the past two years. There are fourteen CRCs located across the region – ten in the Shoalhaven and elsewhere at Minnamurra (Kiama); Dunmore (Shellharbour); Moss Vale (Wingecarribee) and Kembla Grange (Wollongong).

Over the past two years, ISJO’s regional campaigns focused on CRCs have been successful in diverting 709 tonnes of problem waste from landfill or being illegally dumped. The campaign has included print, cinema, radio advertising, bus and taxi backs, rates notice flyers, letterbox drops, bar coasters, decals on Council vehicles, retailer point-of-sale collateral, attendance at community events, and in-store information displays at shopping centres and hardware stores.

Evaluation of these communication methods has determined the most effective method as being face-to- face engagement, supported by direct mail and some other print media. This will inform the strategy for the 2019-21 activities.

Financial/Resource Implications Budget to be updated to reflect the first grant payment of $50,000 for 2019/20 activities.

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9. Late Business item Referred by

Attachments:

Recommendation

Background

Current Situation

Financial/Resource Implications

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10. Next Meeting The next scheduled meeting for 2019 will be held on Friday 29 November – venue to be in Bega (if the Board agrees to 6.4 Recommendations listed above).

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