Shoalhaven City Council

Strategy and Assets Committee

Meeting Date: Tuesday, 20 February, 2018 Location: Council Chambers, City Administrative Centre, Bridge Road, Nowra Time: 5.00pm

Membership (Quorum - 5) Clr John Wells - Chairperson Clr Bob Proudfoot All Councillors General Manager or nominee

Please note: Council’s Code of Meeting Practice permits the electronic recording and broadcast of the proceedings of meetings of the Council which are open to the public. Your attendance at this meeting is taken as consent to the possibility that your image and/or voice may be recorded and broadcast to the public.

Agenda

1. Apologies / Leave of Absence 2. Confirmation of Minutes  Strategy and Assets Committee - 23 January 2018 ...... 1 3. Declarations of Interest 4. Mayoral Minute 5. Deputations and Presentations 6. Notices of Motion / Questions on Notice SA18.22 Notice of Motion - Native Nursery - Berry ...... 14 SA18.23 Notice of Motion - Establishment Local Library - Sussex Inlet ...... 15 SA18.24 Notice of Motion - Representation - Construction of a Grade Separated Intersection - Jervis Bay Road - Princes Hwy ...... 17 SA18.25 Notice of Motion - Culburra Youth Skate Park ...... 18 SA18.26 Notice of Motion - Old - Childrens Playground, BBQ Area and Public Amenities ...... 21 7. Reports SA18.27 Bi-Annual Delivery Program and Operational Plan Report - 1 July 2017 to 31 December 2017 ...... 23

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SA18.28 Progress Report - Development Application for Motor Sports Facility...... 24 SA18.29 Donation Increase Request - Eisteddfod Inc Nowra ...... 27 SA18.30 December 2017 Quarterly Budget Review ...... 32 SA18.31 Classification of Land - Lot 1 DP553658 (No.333) Illaroo Road Bangalee ...... 54 SA18.32 Proposed Leases - Illawarra Area Child Care Incorporated - Four Sites- 2* - - Nowra ...... 57 SA18.33 Proposed Temporary Licence- South Coast Branch NSW of Surf Life Saving Australia Inc.- 177-179 Illaroo Rd, ...... 63 SA18.34 Proposed sale of Lot 2 DP1217124 Wire Lane Berry to Merveilleux Pty Ltd and consolidation with Lot 14 DP253806 ...... 67 SA18.35 Proposed New Charge for Commercial Quantities of Recyclable Materials ...... 70 SA18.36 Request Refund of Fees Associated with William Campbell College - 16 Gannet Rd, ...... 76 SA18.37 Easements for Access at Coolangatta - Shoalhaven Heads Water Reservoir ...... 79 SA18.38 SF10572 - Connection to Town Sewerage System - Lot 8 DP776949 and Lot 6 DP703243 Larmer Avenue ...... 83 8. Confidential Reports Notices of Motion / Questions on Notice CSA18.1 Notice of Motion - Purchase of Land - Sanctuary Point 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. There is a public interest consideration against disclosure of information as disclosure of the information could reasonably be expected to reveal commercial-in-confidence provisions of a contract, diminish the competitive commercial value of any information to any person and/or prejudice any person’s legitimate business, commercial, professional or financial interests.

Reports CSA18.2 Portable Drawdown Device - Commercialisation Potential Local Government Act - Section 10A(2)(d)(i) - Commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it. There is a public interest consideration against disclosure of information as disclosure of the information could reasonably be expected to reveal commercial-in-confidence provisions of a contract, diminish the competitive commercial value of any information to any person and/or prejudice any person’s legitimate business, commercial, professional or financial interests.

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Strategy and Assets Committee

Delegation THAT pursuant to s377 (1) of the Local Government Act 1993 the Committee is delegated the functions conferred on Council by the Local Government Act 1993 (LG Act) or any other Act or delegated to Council, as are specified in the Schedule, subject to the following limitations: i. The Committee cannot exercise any function delegated to the Council which by the terms of that delegation cannot be sub-delegated; ii. The Committee cannot exercise any function which s377(1) of the LG Act provides cannot be delegated by Council; iii. The Committee cannot exercise a function which is expressly required by the LG Act or any other Act to be exercised by resolution of the Council; and iv. The Committee cannot exercise any function which is a function of the General Manager under s335 of the LG Act. Schedule a. Make recommendations to Council and, where permitted under legislation consider, formulate, review and adopt policies in relation to Council’s corporate & community planning under Part 2 of Chapter 13 of the LG Act, asset management and in connection with the other functions listed in this Schedule and in particular to Make recommendations to Council in respect of the content of Council’s community strategic plan, delivery program, resourcing strategy and operational plan within the meaning of Part 2 of Chapter 13 of the LG Act; b. Make recommendations to Council and consider, formulate, review and adopt Council policies, plans and strategies other than those in respect of town planning and environmental matters, and any other matter referred to the Committee by the General Manager. c. Make recommendations in respect of the introduction of new fees or charges or the alteration of existing fees and charges for inclusion in the Council’s next operational plan within the meaning of s405 of the LG Act; d. Monitor, review and consider matters relating to the operations and strategic direction of Council’s Holiday Haven Tourist Parks Group; e. All functions in respect of the management of, and facilities provided on Crown Land in respect of which Council is the ‘reserve trust manager’ within the meaning of s92 of the Crown Lands Act 1989, and the making of recommendations to Council regarding such matters where the function cannot be delegated by Council; f. Provision of corporate direction to the Shoalhaven Water Group in respect of powers delegated to it by Council regarding the construction, alteration or maintenance of water and sewerage works, effluent works and pump out removal; g. Authorise the expenditure of funds raised under s64 of the LG Act within the limits outlined in, and in accordance with Council’s adopted Development Servicing Plan and other relevant adopted Council policies; h. Make recommendations to Council in respect of fees and charges for water and wastewater services provided by Council; i. Develop, implement, review and adopt strategic policies for water, sewerage and effluent operations of Council;

Strategy and Assets Committee – Tuesday 20 February 2018 Page iv j. Undertake preliminary investigations (feasibility, cost benefit, risk analysis, etc.) into development opportunities for Council’s strategic land holdings and make recommendations to Council. k. Review and make recommendations to Council in relation to: i. The sale prices of land in connection with residential and industrial Council subdivisions; ii. The sale of Council property or the purchase or resumption of land; iii. The compensation to be offered in respect of land resumed by Council; and iv. Properties leased or rented by Council, other than those delegated to the General Manager for approval and execution in accordance with MIN14.912 and MIN15.237 of the Council. l. To determine tenders except those tenders required by law to be determined by full Council (MIN17.334).

Shoalhaven City Council

MINUTES OF THE STRATEGY AND ASSETS COMMITTEE

Meeting Date: Tuesday, 23 January 2018 Location: Council Chambers, City Administrative Centre, Bridge Road, Nowra Time: 5.00pm

The following members were present:

Clr John Wells - Chairperson Clr Joanna Gash Clr Patricia White Clr Kaye Gartner Clr Nina Cheyne Clr Annette Alldrick Clr Amanda Findley Clr John Levett Clr Mitchell Pakes Clr Greg Watson Clr Mark Kitchener Clr Bob Proudfoot Ms Carmel Krogh – Acting General Manager

Apologies / Leave of Absence

An Apology was received from Clr Guile.

Confirmation of the Minutes RESOLVED (Clr Gash / Clr Levett) MIN18.11 That the Minutes of the Strategy and Assets Committee held on Tuesday 12 December 2017 be confirmed. CARRIED

Declarations of Interest

Nil

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MAYORAL MINUTES

Nil

DEPUTATIONS AND PRESENTATIONS

Dr Morgan Sant (Hyams Beach CCB) addressed the Committee in relation to SA18.2 – Notice of Motion - Hyams Beach page 16 Ms Lynette Clark addressed the Committee in relation to SA18.6 – Rescind Tree Planting - Schools Policy page 27

Procedural Motion - Bring Item Forward RESOLVED (Clr Gartner / Clr Gash) MIN18.12 That the matters of the following items be brought forward for consideration:  SA18.2 – Notice of Motion - Hyams Beach CARRIED

SA18.2 Notice of Motion - Hyams Beach HPERM Ref: D18/16365 Recommendation (Item to be determined under delegated authority) That Council organise an urgent meeting to discuss the issues that have been identified over the 2016/2017 Christmas holidays in the village of Hyams Beach 1. Meeting to take place as soon as possible. 2. Meeting to include, General Manager, Councillors, Compliance Staff, Asset Management Staff, Tourism Staff, Hyams Beach Villages Association, Hyams Beach business owners. 3. General Manager to invite any other relevant staff he thinks may need to attend.

RESOLVED (Clr Pakes / Clr Gash) MIN18.13 That Council organise an urgent meeting to discuss the issues that have been identified over the 2016/2017 Christmas holidays in the village of Hyams Beach, and that the 1. Meeting to take place as soon as possible. 2. Meeting to include, General Manager, Councillors, Compliance Staff, Asset Management Staff, Tourism Staff, Hyams Beach Villages Association, Hyams Beach business owners Jerrinja Land Council, Booderee National Park, Rural Fire Services and Crown Lands. 3. General Manager to invite any other relevant staff and agencies he thinks may need to attend. 4. That Council investigate the feasibility of another road out of Hyams Beach – as shown on the attached sketch plan 5. General Manager (Director Assets and Works) look into the use of the old tip site for use as car parking for a Park and Ride option – as shown on the attached sketch plan 6. Items from Parts 4 & 5 above be given consideration at the above requested meeting. CARRIED

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NOTICES OF MOTION / QUESTIONS ON NOTICE

SA18.1 Notice of Motion - Council Policy Review - New Years HPERM Ref: Eve Fireworks D17/425612 Recommendation (Item to be determined under delegated authority) That Council review the policy on New Year’s Eve Fireworks.

The Mayor raised a Point of Order against Clr Pakes. The Chairperson ruled as a Point of Order and asked that Clr Pakes apologise and withdraw his comments that were factually incorrect regarding the Greens Party – Clr Pakes withdrew his comments.

RESOLVED (Clr Gartner / Clr Findley) MIN18.14 That Council review the policy on New Year’s Eve Fireworks in line with the Donations Policy. CARRIED

SA18.2 Notice of Motion - Hyams Beach HPERM REF: D18/16365 Item dealt with earlier/later in the meeting see MIN18.13

SA18.3 Notice of Motion - Quarry HPERM Ref: D18/17076 Recommendation (Item to be determined under delegated authority) That the General Manager provide a detailed report to the Council with respect to the operations of Tomerong Quarry at Lot 4 DP775296, Parnell Rd Tomerong. The report is to include explanations, answers and assurances on the following points: 1. Details of enforcement action and the issuing of infringements for breach of consent conditions since the commencement of Quarry operations, including reasons as to why the issue of infringements: a. Were determined under delegated authority and with minimal community consultation thereby attracting concerns from the Community about the transparency of the decision making; b. Were not applied to each individual breach; and c. Did not amount to the greatest possible financial penalty available. 2. Assurance to the Community that Council has applied the same standard of scrutiny to the Tomerong Quarry as it has to similar operations such as the SCCCR Quarry at . 3. Assurance that the following consent conditions in relation to DA90/1912 have been adhered to: a. (6b) Base level quarrying is to keep pace with overburden stripping; b. (6c) Overburden to be used to revegetate the quarry walls; and c. (6d) Revegetation and rehabilitation to keep pace with quarrying activities. 4. Details of any instances Council is aware of where significant tonnage of overburden set aside for rehabilitation has been sold off for profit by the proprietors of the Quarry and if this material has been purchased by the Council. 5. Assurance that Quarry rehabilition that occurs on the site:

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a. Will require a Development Application to allow for Community consultation and will consider the impact on local residents, and b. Will not be at the expense of Shoalhaven Ratepayers. 6. An explanation as to why after 14 months the Council has not determined the Section 96 Amendment Application (DS16/1532) for the site. 7. An explanation as to why the Mining Operation Plan D13MOP has still not been assessed by the Council, despite being lodged over 5 years ago. 8. Advice as to whether the record of non- compliance of the current Quarry Operators will be taken into account by Council when it assesses any future Development Applications submitted for the site. 9. Details of any plan known to the Council of the NSW Government transporting stockpiled excavation material from the M5 WestConnex Project from the old Marrickville Tip to the Tomerong Quarry for disposal.

Clr Watson raised a Point of Order against Clr Levett. The Chairperson did not rule as a Point of Order, however asked that Clr Levett replace the word “failure” in relation to his comments about Council’s actions. Clr Levett replaced “failure” with “apparent failure in his opinion.” The Mayor raised a Point of Order against Clr Watson. The Chair ruled as a Point of Order and asked that Clr Watson withdraw his comment that Council was putting its “grubby hands” on the matter. Clr Watson withdrew the comment.

RESOLVED (Clr Levett / Clr Pakes) MIN18.15 That the General Manager provide a detailed report to the Council with respect to the operations of Tomerong Quarry at Lot 4 DP775296, Parnell Rd Tomerong. The report is to include explanations, answers and assurances on the following points: 1. Details of enforcement action and the issuing of infringements for breach of consent conditions since the commencement of Quarry operations, including reasons as to why the issue of infringements: a. Were determined under delegated authority and with minimal community consultation thereby attracting concerns from the Community about the transparency of the decision making; b. Were not applied to each individual breach; and c. Did not amount to the greatest possible financial penalty available. 2. Assurance to the Community that Council has applied the same standard of scrutiny to the Tomerong Quarry as it has to similar operations such as the SCCCR Quarry at South Nowra. 3. Assurance that the following consent conditions in relation to DA90/1912 have been adhered to: a. (6b) Base level quarrying is to keep pace with overburden stripping; b. (6c) Overburden to be used to revegetate the quarry walls; and c. (6d) Revegetation and rehabilitation to keep pace with quarrying activities. 4. Details of any instances Council is aware of where significant tonnage of overburden set aside for rehabilitation has been sold off for profit by the proprietors of the Quarry and if this material has been purchased by the Council. 5. Assurance that Quarry rehabilition that occurs on the site: a. Will require a Development Application to allow for Community consultation and will consider the impact on local residents, and

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b. Will not be at the expense of Shoalhaven Ratepayers. 6. An explanation as to why after 14 months the Council has not determined the Section 96 Amendment Application (DS16/1532) for the site. 7. An explanation as to why the Mining Operation Plan D13MOP has still not been assessed by the Council, despite being lodged over 5 years ago. 8. Advice as to whether the record of non-compliance of the current Quarry Operators will be taken into account by Council when it assesses any future Development Applications submitted for the site. 9. Details of any plan known to the Council of the NSW Government transporting stockpiled excavation material from the M5 WestConnex Project from the old Marrickville Tip to the Tomerong Quarry for disposal. FOR: Clr Wells, Clr Gash, Clr White, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Findley, Clr Levett, Clr Pakes, Clr Kitchener, Clr Proudfoot and Carmel Krogh AGAINST: Clr Watson CARRIED

Procedural Motion - Matters of Urgency RESOLVED (Clr White / Clr Proudfoot) MIN18.16 That an additional item of the cost of council kerbside bins for tourist operators and others at Council waste depots and during the peak tourist season, be introduced as a matter of urgency. CARRIED

The Chairperson ruled the matter as urgent as the matter requires advertisement prior to the next holiday period.

SA18.21 Charges for Emptying Council Kerbside Bins at Waste Depots RECOMMENDATION (Clr White / Clr Proudfoot) That Council 1. Support the introduction of a council kerbside bin symbol on the non-weight bridge fees and charges section. 2. From the 30th March 2018 until 30th June 2018 the charge for the bins at the non-weight bridge Waste Depots will be $10.00 per council kerbside bin. 3. Determine the new fees for kerbside bins at non-weight bridge Waste Depots from 1st July 2018 in the fees and charges annual review. 4. Advertise the changes to the Fees & Charges for Council Kerbside bin disposal at non weight bridge Waste Depots for 28 days and if no objections are received the changes to the fees be accepted. 5. Receive a report on this matter at Next Weeks’ Ordinary Council meeting CARRIED

REPORTS

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SA18.4 Eco-Cities Summit 2017 - Shoalhaven District Liaison HPERM Ref: D18/9900 Committee - Emergency Response - Natural Disaster Events - Bushfire Risk Education - EMPLAN - Bushfire Fuel Reduction - Climate Adaption Plans Recommendation (Item to be determined under delegated authority) That Council receive the report of the General Manager regarding Eco-Cities Summit 2017 attended by Clr Kitchener for information

RESOLVED (Clr Proudfoot / Clr Pakes) MIN18.17 That Council receive the report of the General Manager regarding Eco-Cities Summit 2017 attended by Clr Kitchener for information. CARRIED

SA18.5 Ulladulla Blessing of the Fleet Festival Continuation HPERM Ref: D17/424380 Recommendation That Council 1. Commit an additional $5000 to the Blessing of the Fleet Committee for the 2018 Festival 2. That the sponsorship/donation to the Blessing of the Fleet Festival be considered in the current review of donations and sponsorships.

RECOMMENDATION (Clr Proudfoot / Clr Gartner) That Council 1. Commit an additional $5000 to the Blessing of the Fleet Committee for the 2018 Festival 2. That the sponsorship/donation to the Blessing of the Fleet Festival be considered in the current review of donations and sponsorships. CARRIED

Note: The meeting adjourned, the time being 7.16pm. Note: The meeting reconvened, the time being 7.27pm

When the following members were present: Clr John Wells - Chairperson Clr Joanna Gash Clr Patricia White Clr Kaye Gartner Clr Nina Cheyne Clr Annette Alldrick Clr Amanda Findley Clr John Levett Clr Mitchell Pakes Clr Greg Watson Clr Mark Kitchener Clr Bob Proudfoot Ms Carmel Krogh – Acting General Manager

SA18.6 Rescind Tree Planting - Schools Policy HPERM Ref: D18/6809

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Recommendation (Item to be determined under delegated authority) That Council rescind the Tree Planting - Schools Policy (POL12/215).

RESOLVED (Clr Gartner / Clr Cheyne) MIN18.18 That Council retain the Tree Planting - Schools Policy and amend it to reflect the following: 1. The Policy offering $200 per school be communicated in writing to all local School Principals and Parents and Citizens Clubs annually, in the term prior to National Tree Day. 2. Council staff, Bushcare and Parkcare teams continue to offer technical advice on tree selection and planting where possible. 3. Council allow trees to be planted on or around school property. 4. The General Manager provide a report on the take up of the program by schools after 12 months. FOR: Clr Wells, Clr Gash, Clr White, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Findley and Clr Levett AGAINST: Clr Pakes, Clr Watson, Clr Kitchener, Clr Proudfoot and Carmel Krogh CARRIED

SA18.7 Bay and Basin Community Hub - Draft Master Plan HPERM Ref: Exhibition Complete - Request for Detailed Design D17/311244 Phase Recommendation (Item to be determined under delegated authority) That Council: 1. Adopt the Draft Bay & Basin Master Plan, with minor wording changes to the report as outlined in the submission table. 2. During development of detailed design Council incorporate additional Learn to Swim/ Therapy Pool. 3. Continue the licence with the Department of Education for the existing building at Sanctuary Point and staff liaise with the local community and user groups to determine its best use.

Clr Pakes raised a Point of Order against Clr Findley. The Chairperson ruled as a Point of Order and asked Clr Findley to withdraw her comment that Clr Pakes would cut services to prevent a rate rise. Clr Findley withdrew the comment.

RESOLVED (Clr Gartner / Clr Alldrick) MIN18.19 That Council: 1. Adopt the Draft Bay & Basin Master Plan, with minor wording changes to the report as outlined in the submission table. 2. During development of detailed design Council incorporate additional Learn to Swim/ Therapy Pool. 3. Continue the licence with the Department of Education for the existing building at Sanctuary Point and staff liaise with the local community and user groups to determine its best use.

FOR: Clr Wells, Clr Gash, Clr White, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Findley, Clr Levett, Clr Guile and Carmel Krogh

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AGAINST: Clr Pakes, Clr Watson, Clr Kitchener and Clr Proudfoot CARRIED Note: There was a rescission motion received on this item

SA18.8 Successful Grant Funding - Community Building HPERM Ref: Partnership Grants 2017 D17/428349 Recommendation That Council 1. Accept the NSW Government Community Building Partnership Grants 2017 - $30,000 ‘Ulladulla Civic Centre Amenities Refurbishment’ and vote the funds. 2. Write to the Hon. Shelley Hancock, Member for South Coast accepting and thanking her for the grant funding.

RECOMMENDATION (Clr Gash / Clr Gartner) That Council 1. Accept the NSW Government Community Building Partnership Grants 2017 - $30,000 ‘Ulladulla Civic Centre Amenities Refurbishment’ and vote the funds. 2. Write to the Hon. Shelley Hancock, Member for South Coast accepting and thanking her for the grant funding. CARRIED

SA18.9 Amendment of POL16/186 Investment Policy HPERM Ref: D18/8724 Recommendation (Item to be determined under delegated authority) That Council adopt POL16/186 Investment Policy, as amended.

RESOLVED (Clr Gartner / Clr Findley) MIN18.20 That Council adopt POL16/186 Investment Policy, as amended. CARRIED

SA18.10 Compulsory Acquisition of Right of Access for Bushfire HPERM Ref: Vehicles at Jerberra Estate - Lot 66 DP11629, Invermay D17/346793 Ave, Tomerong Recommendation That Council: 1. Resolve to compulsorily acquire a right of access for bushfire vehicles over part of Lot 66 DP11629, known as Lot 66, Invermay Ave, Tomerong (Jerberra Estate). 2. Pay compensation for the acquisition including all ancillary costs, in accordance with the determination of the Valuer General under the terms and conditions of the Land Acquisition (Just Terms) Compensation Act 1991 from job number 85291; 3. Approve the making of the necessary applications to the Minister for Local Government and the Governor; and

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4. Approve that the Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed and that otherwise the General Manager is authorised to sign any documentation necessary to give effect to the resolution.

RECOMMENDATION (Clr Gartner / Clr Cheyne) That Council: 1. Resolve to compulsorily acquire a right of access for bushfire vehicles over part of Lot 66 DP11629, known as Lot 66, Invermay Ave, Tomerong (Jerberra Estate). 2. Pay compensation for the acquisition including all ancillary costs, in accordance with the determination of the Valuer General under the terms and conditions of the Land Acquisition (Just Terms) Compensation Act 1991 from job number 85291; 3. Approve the making of the necessary applications to the Minister for Local Government and the Governor; and 4. Approve that the Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed and that otherwise the General Manager is authorised to sign any documentation necessary to give effect to the resolution. CARRIED

SA18.11 Classification of Land - Lot 140 DP11629 Inglewood HPERM Ref: Crescent Tomerong D17/398369 Recommendation That Council resolve to classify the land described as Lot 140 DP11629 Inglewood Crescent Tomerong as Operational Land.

RECOMMENDATION (Clr Gartner / Clr Alldrick) That Council resolve to classify the land described as Lot 140 DP11629 Inglewood Crescent Tomerong as Operational Land. FOR: Clr Wells, Clr Gash, Clr White, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Findley, Clr Levett, Clr Guile, Clr Pakes, Clr Watson, Clr Kitchener and Carmel Krogh AGAINST: Clr Proudfoot CARRIED

SA18.12 Classification of Land - Lot 1 & 2 DP721820, Lot 194 HPERM Ref: DP658421, Lot 197 DP658422 and Lot 1 DP722982 D17/398787 Recommendation That Council resolve to classify the land described as Lot 1 & 2 DP721820, Lot 194 DP658421, Lot 197 DP658422 and Lot 1 DP722982 Woollamia as Operational Land.

RECOMMENDATION (Clr Findley / Clr Gash) That Council resolve to classify the land described as Lot 1 & 2 DP721820, Lot 194 DP658421, Lot 197 DP658422 and Lot 1 DP722982 Woollamia as Operational Land. FOR: Clr Wells, Clr Gash, Clr White, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Findley, Clr Levett, Clr Guile, Clr Pakes, Clr Watson, Clr Kitchener and Carmel Krogh

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AGAINST: Clr Proudfoot CARRIED

SA18.13 Classification of Land - Lot 550 DP1237093 Quinns Lane, HPERM Ref: South Nowra D17/401721 Recommendation That Council resolve to classify the land described as Lot 550 DP1237093 Quinns Lane South Nowra as Operational Land.

RECOMMENDATION (Clr Gash / Clr White) That Council resolve to classify the land described as Lot 550 DP1237093 Quinns Lane South Nowra as Operational Land. FOR: Clr Wells, Clr Gash, Clr White, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Findley, Clr Levett, Clr Guile, Clr Pakes, Clr Watson, Clr Kitchener and Carmel Krogh AGAINST: Clr Proudfoot CARRIED

SA18.14 Proposed Lease - Ulladulla Children's Centre - 31 HPERM Ref: Hollywood Avenue, Ulladulla D17/400043 Recommendation That Council: 1. Advertise its intent to enter into a lease agreement with Ulladulla Children’s Centre Incorporated for the property at 31 Hollywood Avenue, Ulladulla; 2. Provided no objections are received within the submission period, enter into a 5 year lease agreement with a 5 year option period with Ulladulla Children’s Centre Incorporated for the use and occupation of Lots 97, 98 and 99 in Deposited Plan 26132 and Lot 1 in Deposited Plan 785819 known as 31 Hollywood Avenue, Ulladulla with incremental increases in rent for the first three years as follows: a. Year 1 - $2,836 plus GST; b. Year 2 - $5,672 plus GST; and c. Year 3 - $8,509 plus GST and with rental increases to CPI from year 3 to year 5 and continual CPI increases annually from commencement of the option period; 3. Approve the allocation of rent received under the lease agreement into the Property Reserve restricted account; 4. Authorise the General Manager to sign all documentation required to give effect to this resolution and to affix the Common Seal of the Council of the City of Shoalhaven to all documentation required to be sealed.

RECOMMENDATION (Clr Pakes / Clr Cheyne) That Council: 1. Advertise its intent to enter into a lease agreement with Ulladulla Children’s Centre Incorporated for the property at 31 Hollywood Avenue, Ulladulla;

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2. Provided no objections are received within the submission period, enter into a 5 year lease agreement with a 5 year option period with Ulladulla Children’s Centre Incorporated for the use and occupation of Lots 97, 98 and 99 in Deposited Plan 26132 and Lot 1 in Deposited Plan 785819 known as 31 Hollywood Avenue, Ulladulla with incremental increases in rent for the first three years as follows: a. Year 1 - $2,836 plus GST; b. Year 2 - $5,672 plus GST; and c. Year 3 - $8,509 plus GST and with rental increases to CPI from year 3 to year 5 and continual CPI increases annually from commencement of the option period; 3. Approve the allocation of rent received under the lease agreement into the Property Reserve restricted account; 4. Authorise the General Manager to sign all documentation required to give effect to this resolution and to affix the Common Seal of the Council of the City of Shoalhaven to all documentation required to be sealed. CARRIED

SA18.15 Shop 41 (Pump House Pies), 43 Kinghorne Street Nowra HPERM Ref: - Assignment of Lease D17/422406 Recommendation (Item to be determined under delegated authority) The execution of the Deed of Consent and Assignment of Lease for Shop 41, 43 Kinghorne Street Nowra from Christian Mathew Wykniet to Alex John Legge be authorised.

RESOLVED (Clr Proudfoot / Clr Levett) MIN18.21 That Council authorise the execution of the Deed of Consent and Assignment of Lease for Shop 41, 43 Kinghorne Street Nowra from Christian Mathew Wykniet to Alex John Legge. CARRIED

SA18.16 Proposed Retail Lease of Shop 43 Kinghorne Street, HPERM Ref: Nowra D17/425892 Recommendation That Council enter into a lease with Julia Donn (trading as Kinghorne Canteen) for three (3) years with a three (3) year option at a commencing annual rent of $26,936.77 per annum plus GST with annual 3% fixed increases with a review to market at the expiry of the initial 3 year period; and authorise the General Manager to sign all documentation required to give effect to this resolution and to affix the Common Seal of the Council of Shoalhaven to all documentation required to be sealed.

RECOMMENDATION (Clr Proudfoot / Clr White) That Council enter into a lease with Julia Donn (trading as Kinghorne Canteen) for three (3) years with a three (3) year option at a commencing annual rent of $26,936.77 per annum plus GST with annual 3% fixed increases with a review to market at the expiry of the initial 3 year period; and authorise the General Manager to sign all documentation required to give effect to this resolution and to affix the Common Seal of the Council of Shoalhaven to all documentation required to be sealed.

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CARRIED

SA18.17 Environmental Health Australia NSW State Conference HPERM Ref: 2018 Nomination D17/423120 Recommendation (Item to be determined under delegated authority) That Council: 1. Support hosting the 2018 Environmental Health Australia State Conference; and 2. Support allocation of $6,700 (excluding GST) within the 2018/19 budget (job number 15900).

RESOLVED (Clr Proudfoot / Clr Findley) MIN18.22 That Council: 1. Support hosting the 2018 Environmental Health Australia State Conference; and 2. Support allocation of $6,700 (excluding GST) within the 2018/19 budget (job number 15900). CARRIED

SA18.18 Support Request - Byron Shire Council - Tourism HPERM Ref: Accommodation Levy (Bed Tax) D17/424962 Recommendation (Item to be determined under delegated authority) That Council provide a letter of support to Byron Shire Council regarding an Expression of Interest process through the NSW Government for a trial for the implementation and management of a Trial Tourism Accommodation Levy (Bed Tax).

RESOLVED (Clr Gash / Clr Pakes) MIN18.23 That the matter of support to Byron Bay Council be referred to the Shoalhaven Tourism Advisory Group Meeting to be held on 26 February 2018 and reported back to Council. FOR: Clr Wells, Clr Gash, Clr White, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Findley, Clr Guile, Clr Pakes, Clr Watson, Clr Kitchener, Clr Proudfoot and Carmel Krogh AGAINST: Clr Levett CARRIED

SA18.19 Acquisition - Easement for Water Supply - 16 Wason HPERM Ref: Street Ulladulla D17/402937 Recommendation That 1. Council rescind MIN16.916 for the acquisition of an Easement for Water Supply 0.1m wide over Lot 22 DP576042 and Lot 11 DP856300, Nos 20 & 2/18 Wason Street Ulladulla, marked (A) & (B) and highlighted yellow on the easement plan attached. 2. Council resolve to acquire an Easement for Water Supply 0.025m wide over Lot 1 DP786425, No 16 Wason Street Ulladulla, shown by red line on the easement plan, attached. 3. Council pay compensation of $2,000 plus GST and reasonable legal costs associated with the acquisition, in accordance with the Land Acquisition (Just Terms Compensation) Act 1991

Minutes Confirmed Tuesday 20 February 2018 – Chairperson ......

Minutes of the Strategy and Assets Committee 23 January 2018 Page 13

from Council’s Water Fund. 4. The Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed.

RECOMMENDATION (Clr Proudfoot / Clr White) That 1. Council rescind MIN16.916 for the acquisition of an Easement for Water Supply 0.1m wide over Lot 22 DP576042 and Lot 11 DP856300, Nos 20 & 2/18 Wason Street Ulladulla, marked (A) & (B) and highlighted yellow on the easement plan attached. 2. Council resolve to acquire an Easement for Water Supply 0.025m wide over Lot 1 DP786425, No 16 Wason Street Ulladulla, shown by red line on the easement plan, attached. 3. Council pay compensation of $2,000 plus GST and reasonable legal costs associated with the acquisition, in accordance with the Land Acquisition (Just Terms Compensation) Act 1991 from Council’s Water Fund. 4. The Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed. CARRIED

SA18.20 Beyond Plastic Conference 2017 HPERM Ref: D17/426105 Recommendation (Item to be determined under delegated authority) That Council receive the report from Clr Patricia White on the Beyond Plastic Conference 2017 for information.

RESOLVED (Clr Proudfoot / Clr White) MIN18.24 That Council receive the report from Clr Patricia White on the Beyond Plastic Conference 2017 for information CARRIED

Note: A Rescission Motion was received in relation to SA18.7 - Bay and Basin Community Hub - Draft Master Plan Exhibition Complete - Request for Detailed Design Phase signed by Clr Proudfoot, Clr Kitchener, Clr Watson and Clr Pakes.

There being no further business, the meeting concluded, the time being 8.49pm.

Clr Wells CHAIRPERSON

Minutes Confirmed Tuesday 20 February 2018 – Chairperson ......

Strategy and Assets Committee – Tuesday 20 February 2018 Page 14

SA18.22 Notice of Motion - Native Nursery - Berry

HPERM Ref: D18/38736

Submitted by: Clr Joanna Gash

Purpose / Summary The following Notice of Motion, of which due notice has been given, is submitted for Council’s consideration.

Recommendation (Item to be determined under delegated authority) That Council be requested to send a letter of congratulations to Mrs Lyn Clark of Berry and

her volunteers on the outstanding native nursery that they maintain and where they propagate the many varieties of plants.

Background Council will recall that Mrs Clark spoke at a recent meeting in regards to the available funding,and issued an invitation to come and visit..this I did and I can assure council staff SA18.22 that all the applicable native plants to will be purchased from this nursery. Not only was I impressed by the variety but the knowledge of each plant certainly put my little knowledge to shame. I also congratulate Mrs Clark and her volunteers for the role they undertake in educating the students from Berry Public School in native plant propogation and gardening.

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SA18.23 Notice of Motion - Establishment Local Library - Sussex Inlet

HPERM Ref: D18/46399

Submitted by: Clr Bob Proudfoot

Purpose / Summary The following Notice of Motion, of which due notice has been given, is submitted for Council’s consideration.

Recommendation (Item to be determined under delegated authority)

That Council staff prepare a report on suitable sites for the establishment of a local library in the township of Sussex Inlet. The report would also address the possibility of re-locating the current Sanctuary Point library, once the district library had been completed in that community.

Note by the General Manager SA18.23 Provision of a stand alone library at Sussex Inlet is not identified within the Draft Library Strategy adopted by council last meeting and to go on public exhibition shortly. This part of the Strategy may need amendment after exhibition depending on council’s decision and consideration of public submissions.

However the s94 Plan (currently under review and to be reported back to council) still includes a new District Library for Sussex Inlet.

Further, the Community Infrastructure Strategic Plan (CISP) (adopted June 2017) makes reference within the Executive Summary in the following terms:

“Once the Vincentia library is operational, is it recommended that Council upgrade the Sussex Inlet Community Centre and make it the home for the proposed library.” “The future vision for planning area four is to develop one community hub in the area. The ideal location is Sussex Inlet where the Thomson Street Sporting Complex, Sussex Inlet Aquatic Centre and the Sussex Inlet Community Centre are all located on Thomson Street. As such, future financial investment is to focus on upgrading existing recreation and sports parks to increase passive and active recreation use and consolidating the network of community buildings into one community hub.”

The Notice of Motion raises the possibility of relocating the curent Sanctuary Point library - this is consistent with the CISP which also states within the Executive Summary :

“Over 85% of the community use the Sanctuary Point Library, with many users suggesting that it needs to be bigger. To meet this demand, a new district sized library is to be included in the proposed community hub at the Bay and Basin Leisure Centre. Once this library is operational, it is recommended that the relocatable library at Sanctuary Point be relocated to Sussex Inlet (planning area four).”

The mobile library presently services Sussex Inlet, and with the addition of the 2nd mobile, the service can be increased if warranted.

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The Home Delivery Service also operates in Sussex Inlet too and the mobile stops at the primary school, retirement villages and the town centre – the boat ramp being the most popular spot for mobile library user visits. The mobile also services surrounding areas including Swanhaven and .

SA18.23

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SA18.24 Notice of Motion - Representation - Construction of a Grade Separated Intersection - Jervis Bay Road - Princes Hwy

HPERM Ref: D18/48263

Submitted by: Clr John Wells

Purpose / Summary The following Notice of Motion, of which due notice has been given, is submitted for Council’s consideration.

Recommendation That Council make vigorous representations to the Minister for Roads and Maritime and Freight the Hon Melinda Pavey, the Parliamentary Secretary for the Illawarra and South Coast Gareth Ward and the Member for South Coast the Hon Shelley Hancock to give high priority to the construction of a grade separated intersection at Jervis Bay Road and the Princes Highway.

SA18.24 Background The pattern of human settlement in the city of Shoalhaven has, not un-naturally resulted in the development of numerous coastal towns and villages, most of which have a generally east- west connector roads linking them to the north/south Princes Highway. As a result, the Princes Highway has several significant intersections including Bolong Road, Kalander Street, Forrest Road, Jervis Bay Road, Island Point Road, Sussex Inlet Road, Road and several others. Some of these intersections are signalised, some are not. With the growing urban expansion of the Bay and Basin area with developments like Bayswood taking place, and others like the Worrowing Heights / the cross roads precinct forecast for development, traffic loadings for Jervis Bay Road (and Island Point Road) are growing. Add to this a booming tourism industry promoted largely through highly effective marketing and reduced travel times from the ‘big smoke’ as a result of highway upgrading, and a significant traffic problem becomes a chronic traffic problem at the Jervis Bay Road/Princes Highway intersection. Perhaps a more correct statement would be chronic traffic problems, combining increased accident risk with poor transport economics, inefficient energy consumption and human frustration. During the recent summer school holidays, the line of traffic from the highway back towards Huskisson extended for kilometres resulting in wait times to access the highway in excess of forty minutes. I guess there’s a perverse sort of irony in spending hundreds of millions, of dollars improving travel times between the Jervis Bay turn off and the Illawarra/metro and creating a chronic situation at the southernmost point of the upgrading. The solution is a grade separated intersection. In this regard if the Shaolin Temple development had proceeded as originally planned, the State Government and its agencies were insisting on grade separation for the Forest Road intersection. The current situation at the Jervis Bay Road intersection is far worse than would have obtained had the Comberton Grange property been developed. This would seem to strongly justify actioning the motion above. I ask Councillors to support this motion.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 18

SA18.25 Notice of Motion - Culburra Youth Skate Park

HPERM Ref: D18/48787

Submitted by: Clr Mitchell Pakes

Purpose / Summary The following Notice of Motion, of which due notice has been given, is submitted for Council’s consideration.

Recommendation (Item to be determined under delegated authority) That Council:

1. Allocate $75,000 to the Culburra Beach Youth Skate Park Project 2. Allocate the $75,000 from the Council’s Skate Park Budget 3. Acknowledge the work of Mr Alex McNeily and the committee for their work to date

Background SA18.25 Our project and budget for the Curley’s Bay Recreational Park at Culburra Beach is unable to provide funding for the build of a new dual sex single unit disability accessible toilet amenity as part of the final stage 3 of the park build and master plan. Our project committee fundraised over $600,000 directly to build our new community park that was designed by our community for our community through extensive consultation sessions and surveys. An incredible effort that should be applauded by Shoalhaven City Council and promoted further to empower township communities to take action and ownership to improve community assets and facilities. Since completing Stage 1 in May 2017, the skate park facility is being used excessively by infants, youth, young adults, families plus tourists on a daily basis. The entire township has embraced the park and project as we work together to complete Stage 2 before Christmas and Stage 3 by February-March 2018. As the project manager we have negotiated hard and reduced prices on all works and equipment but have a budget shortfall to include the toilet amenity due to: 1. Increased concrete costs per square cubic meter increasing 32% in 2017 2. Additional costs for power pole, underground power lines and connections 3. Increased building costs due to local demand for trades and building services, very competitive and challenging to schedule on-site works. 4. Fencing to improve safety – block off the adjoining storm water creek on site 5. Providing the park equipment our community have requested. The Culburra Beach – Curley’s Bay Recreational Park project committee are appealing to Shoalhaven City Council to directly support additional funding to plan-build the toilet amenity our park and community need on-site at Curley’s Bay Reserve. The park currently attracts 60-90 users per day in the off-peak season.

The park user levels will at minimum triple and higher in peak holiday periods once we complete the upcoming final stages of the project which include:

Strategy and Assets Committee – Tuesday 20 February 2018 Page 19

 Outdoor Fitness Gymnasium Area and Equipment  Half-Court Basketball Court  Pathways and Footpaths  Kids Play Area (Swings, Climbing Net, Carousel, Infant Rides)  Electric BBQ  Sheltered Covered BBQ Area  Tables and Bench Seating  Landscaping, Tidy & Signage Consultation with council staff has indicated the total cost is $73,000 for the toilet amenity building, same as the facility installed at Clifton Park, Sanctuary Point this year. We are unable to secured additional funding for this project and are requesting that Shoalhaven City Council support the build and or costs of a new toilet facility at Curley’s Bay

Recreational Park urgently to avoid lack of facilities and potential impacts on the surrounding environmental areas.

Note by the General Manager Public Amenities (toilet) were not proposed in the initial design for the Curley Bay Reserve and was added after community consultation and included in the design / masterplan - however it was not a funded element of the project. This requested public amenity (toilet) is identified in Council’s list of requested facilities of which there are over 30 requested across SA18.25 the City – (see http://doc.shoalhaven.nsw.gov.au/Displaydoc.aspx?Record=d15/78961

Based on City-wide priorities, staff had previously advised and recommended that a new facility was not required given there is an existing public amenity / toilet located within 550 meters. It is also relevant that Culburra Beach currently has 7 public amenities and adjoining town of Orient Point has 2 public amenities. Overall Shoalhaven City Council has 119 public amenities buildings. The provision of public amenities is an integral part of the provision of other services such as:  Waterways (beaches, estuaries or lakes)

 Commercial / shopping centres

 Parks / Reserves

The public amenity proposed for Sanctuary Point Clifton reserve is a Single use unisex not dual. Detail design has not been undertaken of the Curleys Bay public amenity which would identify budget costs for connection to public amenity of electricity, water, sewer and a complying path for persons with disabilities. A cost of $75,000 is reasonable for conceptual.

When Commissioning a new asset for the community there is ongoing operating costs. The NOM identifies current park patrons at 60 to 90 per day. Should council decide to fund the new facility at Curleys Bay staff have identified an opportunity to transfer the maintenance and cleaning costs from an existing facility at Orient Point which could be decommissioned because of extremely low usage. Otherwise there will be a requirement to increase operating budget to allow for increased cleaning, operating & maintenance cost.

No funding has been allocated in the current Financial Year 2017/18 or Financial Year 2018/19. The funding source identified in the nom is the reallocated loan funds resolved by council last meeting. Following last meeting I have requested staff to provide a priority list of

Strategy and Assets Committee – Tuesday 20 February 2018 Page 20 skatepark and community pathway projects so this can be reported back to council and the budget allocated.

SA18.25

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SA18.26 Notice of Motion - - Childrens Playground, BBQ Area and Public Amenities

HPERM Ref: D18/51080

Submitted by: Clr John Levett

Purpose / Summary The following Notice of Motion, of which due notice has been given, is submitted for Council’s consideration.

Recommendation (Item to be determined under delegated authority)

That Council, in consultation with the Old Erowal Bay community, develop plans and source funding of up to $100,000, for a children's playground, BBQ area and public amenities at an appropriate site in the village.

Background

SA18.26 The village of Old Erowal Bay is changing with new and younger families coming into the area. Over the last five years remaining vacant blocks have been taken up and older lower price homes purchased for renovation. The area's close proximity to schools, Vincentia Market Place, the Bay and Basin Leisure Centre and Booderee National Park underpin its popularity. The existing Elsie Young Park on the Coronado is outdated and in an unpopular location. A suggested alternative site is the grassed area at the south end of Prentice Street. Note by the General Manager The suggested alternate site is subject to inundation and further investigation would be required as to its suitability, especially given the changes in Natural Disaster funding that now excludes recreation facilities from eligibility. The Reserve is heavily impacted by drainage and flooding from the Basin e.g. August 2015 flood event. Staff have been consulting with the community on their priorities and advice received in November 2017 indicated the following requests in priority order:

1. Kayak ramp; 2. A tap for drinking water and washing down the kayaks; 3. An under cover table; 4. Play equipment to suit whatever budget will be allocated (I have been informed that there is not a flying fox In the Shoalhaven); 5. BBQ- one like at St Georges Basin will work; 6. Toilet.

It is suggested that, a desk top audit be undertaken to identify other potential locations in the township which are not impacted by inundation, drainage and water issues. Further community consultation is undertaken once the desk top audit has been completed, with a report back to Council at that time.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 22

The current staff level is already stretched to progress existing tasks & works program so it may be some time before new projects such as this can proceed to the initial planning stages.

SA18.26

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SA18.27 Bi-Annual Delivery Program and Operational Plan Report - 1 July 2017 to 31 December 2017

HPERM Ref: D18/33202

Group: General Manager's Group Section: Executive Strategy

Attachments: 1. Six Monthly Report July to December 2017 (under separate cover) ⇨

Purpose / Summary The purpose of this report is to provide information on how the organisation has performed against targets in the Delivery Program and Operational Plan during the first six months of the 2017/18 financial year commencing 1 July 2017.

Recommendation (Item to be determined under delegated authority) That the report of the General Manager (Executive Strategy) regarding progress to 30 June 2017 on the 2017/2021 Delivery Program and 2017/2018 Operational Plan be received for

information, endorsed and published on Council’s website. SA18.27

Options 1. As recommened Implications: Council will meet its Legislative requirements under the Local Government Act and inform the community of progress towards Community Strategic Plan Key Priorities.

2. Adopt the recommendation and seek a further report on specific aspects of the six monthly report Implications: Additional staff resources required to produce additional information

Background Attached (Attachment ‘1’) is a summary of the six-monthly Progress Report on the Delivery Program and Operational Plan providing a snapshot of how the organisation has performed against targets during the first six months of the 2017/2018 financial year. Whilst most Goals are ‘on’ target, some are ‘below’ target. Comments on what has been achieved over the past six months is provided for all Goals. Highlights for each Key Priority have been provided to document the range and depth of work currently being completed.

Community Engagement Community engagement on the development of the Delivery Program and Operational Plan is maintained through the feedback mechanism provided by this report.

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SA18.28 Progress Report - Development Application for Motor Sports Facility

HPERM Ref: D18/49821

Group: General Manager's Group Section: Economic Development

Purpose / Summary To provide an update on progress of the preparation of the Development Application for a motor sports facility

Recommendation (Item to be determined under delegated authority) That Council accept the report on progress of preparing a development application for a motor sports facility for information.

Options

SA18.28 1. Accept the recommendation as written 2. Propose an alternate recommendation

Background Council has resolved (17th October 2017) to prepare a Development Application for a motor sports facility (MIN17.915). RESOLVED That: 1. In recognition of the strategic importance and economic value of developing a motor sports complex in our area, that Council, after reviewing the previous development application (DA) by Motorcycling NSW, prepares and submits a DA as proponent for this project. 2. Council establish a project working group to oversee the process, comprising relevant Council staff and representatives of the South Coast Motor Sports Club Inc. 3. Council continue to explore and where applicable apply to both Federal and State Government programs to facilitate funding for the project and private partnership. 4. That initial costs associated with the review and DA submission be funded through the economic development budget 5. Recoupment of all costs be factored into any future lease arrangements 6. The General Manager provide a detailed report on how “serious and irreversible impacts” have been addressed in similar situations, and what precedents have been established in that regard.

A report on the project was provided to Council in December 2017 and this provides a further update. Part 6 of the resolution was actioned and a report submitted to Development Committee on 14th November 2017 by the Planning, Environment & Development Group.

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Since the October 2017 resolution, Locale Consulting has been engaged to provide planning and project management advice to the Economic Development Office (EDO). A suitably qualified ecological consultant (GHD) was also engaged to undertake an initial assessment of the site at with respect to the new Biodiversity legislation and to provide the EDO with guidance on a way forward. This work has now concluded and has been reported to the EDO. Key outcomes of the consultant report included the confirmation of the existence of the Leafless Tongue Orchid on the site, as well as a number of other species, generally reflecting the previous studies that had been undertaken. The report suggest that there are currently no serious and irreversible impact (SAII) entities having been recorded at the site, based on the information at hand and that the Leafless Tongue Orchid does not meet the criteria for SAII entities. Nevertheless, with the presence of the Leafless Tongue Orchid (and other listed species albeit not SAII entities) existing on the site, the Biodiversity Conservation Act will apply to the project (thresholds will be met). As such the Biodiversity Assessment Method (BAM) will apply, and a Biodiversity Development Assessment Report (BDAR) will be required. The

BDAR must identify the biodiversity values to be impacted by a development, detail the avoidance methods undertaken to minimise impacts, and identify any offset requirements. Previous work on the project included modification of track design and other subsequent avoidance and mitigation measures and whilst identification of offsets was not included in GHD’s brief, indications were provided of the extent of primary and potential Leafless Tongue Orchid habitat at the site.

As such, investigation of offset site opportunities is therefore the next body of work that is SA18.28 required for this project (also noting that any offset opportunities identified would also potentially benefit other Council projects). Initially this can be undertaken as a desktop investigation to narrow down the areas of potential offsets before a suitably qualified person with field verification expertise is used to assess candidate sites at the appropriate flowering or other identification windows. This work will now be pursued once a suitably qualified person is identified at a reasonable cost to undertake the work. GHD have identified key windows for potential species identification (including some indicator species) in April, September/October, and December/January. The desktop work and associated follow up identification is essential to the preparation of a DA for a motor sports facility. The nexus between the motor sports facility and the industrial area is essential to deliver the substantial economic and employment benefits to the Shoalhaven, a primary driver for the pursuit of the project by the EDO and others. For this reason, the preferred site for a motor sports facility remains at the current Yerriyong site, however other sites will also be examined and the desktop habitat analysis will inform that work. The consideration of alternative sites is also essential to justify any environmental offset program being implemented (i.e. demonstrating avoidance). The project working group, comprising staff from the EDO and members of the South Coast Motor Sports Club Inc, has had a formation meeting and a number of meetings to receive progress updates. These meetings will continue during 2018. Parts 3 and 5 of the above resolution will not require actioning in the immediate future. Part 4 was addressed in the report to council as part of the September Quarterly Budget report. As mentioned at the outset of this report, Part 6 was actioned and a report submitted to Development Committee on 14th November 2017 by the Planning, Environment & Development Group.

Community Engagement

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No community engagement has taken place since the commencement of the work by EDO. Community engagement will occur in association with a DA at the appropriate time and once further details of the project have been confirmed.

Financial Implications To date expenditure in the order of $30,000 has been committed.

Risk Implications The risk issues relate primarily to the environmental constraints of the site and any cost implications arising or risk that approval cannot be obtained. Converse to these risks are the substantial economic and social benefits that have been identified for the project.

SA18.28

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SA18.29 Donation Increase Request - City of Shoalhaven Eisteddfod Inc Nowra

HPERM Ref: D17/394783

Group: Finance Corporate & Community Services Group Section: Human Resources, Governance & Customer Service

Attachments: 1. Request for Increase in Annual Donation Amount ⇩

Purpose / Summary To notify Council of a request from City of Shoalhaven Eisteddfod Inc. Nowra sent 1 November 2017, to increase their donation from Council from $6,800 to $13,000 per year.

Recommendation (Item to be determined under delegated authority) That Council continue to provide the City of Shoalhaven Eisteddfod Inc. Nowra $6,800 as an annual allocated donation.

SA18.29 Options 1. As recommended Implications: Nil.

2. To increase the donation annually from 2018/2019 onwards Implications: Shoalhaven City Council currently provides $281,910 of allocated donations annually. Council has resolved to undertake a review of all donations. This will be undertaken prior to 2018/2019 financial year. It is recommended any adjustments be considered as part of this process.

3. An alternative recommendation Implications: unknown.

Background Council received a request from City of Shoalhaven Eisteddfod Inc. Nowra dated 1 November 2017 to increase the current annual donation to $13,000 per year.

The donation currently provided by Shoalhaven City Council annually is $6,800. The City of Shoalhaven Eisteddfod Inc. Nowra was originally provided the donation through the Shoalhaven Arts Board Grants since 2007. The City of Shoalhaven Eisteddfod Inc. Nowra state in their request that although the current donation amount is a welcome contribution to their income stream (which comprises of donations and sponsorships in addition to entry fees and admission charges) the growth of the Eisteddfod has now outgrown the School of Arts and is staging three major events each year.

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The Shoalhaven Entertainment Centre has been the venue for these community events and the City of Shoalhaven Eisteddfod Inc. Nowra are charged community rates for these events (approximately $13,000 per annum). The Shoalhaven Eisteddfod Inc. Nowra have advised that whilst they believe the donation was adequate to subsidise the fees for the School of Arts, they do not believe it is adequate now that the shows are held at the Shoalhaven Entertainment Centre. They also advise that their audiences are largely comprised of participant’s parents and families and therefore cannot seek to fully recover Shoalhaven Entertainment Centre hiring charges by increasing their admission charges. The City of Shoalhaven Eisteddfod Inc. Nowra has asked for increases of their allocated donation in 2016, 2015 and 2014. The Shoalhaven Eisteddfod have paid the following Hire fees for the Nowra School of Arts and Annex: 2016 - $2,850

2017 - $1,879.80 2018 - $2,092.88 For the Eisteddfod Schools Choral event held in the Shoalhaven Entertainment Centre on May 24, 2017 the total cost of venue hire was $3,213. The Shoalhaven Entertainment Centre sponsored this event to the value of $1,339.51 by way of reducing venue hire.

For the Stars of the Eisteddfod on June 17, 2017 the hire of the Shoalhaven Entertainment SA18.29 Centre cost $2,499.37. The Shoalhaven Entertainment Centre sponsored this event to the value of $924.89

For the Shoalhaven Eisteddfod Schools Verse Speaking on June 7 2017. The venue hire bill was $3,503.93. The Shoalhaven Entertainment Centre sponsored the event to the value of $1,490.32.

In 2017, they spent a total of $9,166.30 and received sponsorship of $3,754.72 from the Shoalhaven Entertainment Centre.

The Shoalhaven Entertainment Centre have had a number of meetings with the Eisteddfod Committee and suggested that ticket prices could be increased; however, they are not inclined to increase them.

Entertainment Centre admission fees for Eisteddfod events in 2017:

Two schools Eisteddfod events were held in the Auditorium, the Schools’ Choral Eisteddfod and Schools’ Verse Speaking & Choirs. These were ticketed as a ‘batch print’ and sold on the day by Eisteddfod volunteers. This means we charged the Eisteddfod committee $600 (75 cents per ticket) to print a total of 800 tickets, which were then on-sold at $5 per ticket in the foyer by Eisteddfod volunteers to parents and family members. This practice will not be continued, as it does not comply with the provisions of the Entertainment Centre’s Hire Policy POL: .

The Stars Of The Eisteddfod Concert 2017: 417 tickets sold - $4,077.50 net (less booking fees) to the Shoalhaven Eisteddfod.

Ticket prices were: Adult – $20.00 Concession – $15.00

Strategy and Assets Committee – Tuesday 20 February 2018 Page 29

Child – $10.00 Group 5+ - $50.00

These prices were lower than 2016. In 2017 the Eisteddfod Committee introduced a group price to make family tickets more affordable. The result was they sold an additional 137 tickets, but their income was reduced by $1,206.70. (Their total income from Stars of Eisteddfod 2016 was $5,284.20).

For Eisteddfod admission charges to the Nowra School of Arts is $5.00 per adult and Children are permitted free of charge.

Policy Implications

Council has resolved to undertake a review of all donations. This will be undertaken prior to the commencement of the 2018/2019 financial year.

Financial Implications There is $2,546.86 remaining in the unallocated donations budget for 2017/2018.

SA18.29

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Attachment 1

-

SA18.29

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Attachment 1

-

SA18.29

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SA18.30 December 2017 Quarterly Budget Review

HPERM Ref: D18/40621

Group: Finance Corporate & Community Services Group Section: Finance

Attachments: 1. Quarterly Budget Review Statement December 2017 (under separate cover) ⇨

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

the 2017/18 financial year.

Recommendation

That Council: SA18.30 1. Receive the December Quarterly Budget Review for information 2. Adopt the adjustments, including movements to and from Reserves as outlined in the December Quarterly Budget Review Statement.

Options 1. Adopt the recommendation Implications: Nil

2. Not adopt the recommendation and make an alternative resolution Implications: Staff will need to rework the quarterly budget review in accordance with the alternative resolution.

Background The budget review involves an analysis of Council’s annual budget for each Group to determine whether any changes in votes are required for the period. This process has been undertaken for the period to 31 December 2017, and any changes have been reported in the Quarterly Budget Review Document. This report also analyses the progress of each group in achieving its financial objectives.

Council’s Funds General Fund The budget adopted by Council produced an operating profit of $4.4M after capital grants, an operating loss before Capital Grants and Contributions of $2.6M, a reduction in cash and

Strategy and Assets Committee – Tuesday 20 February 2018 Page 33 investments of $15M and an unrestricted cash deficit of $138K. The revotes carried forward and adjustments made in this quarterly review have resulted in the following:

December Projected Original Current Review Year End Budget Budget Adjustment Result Recommended

Operating Result 4,482 16,520 (788) 15,732 Operating Result before Capital Grants and (2,611) (8,323) (1,042) (9,365) Contributions Net Cash & Investments (15,071) (46,199) 6,953 (39,246) Movement

Unrestricted Cash Movement (138) 28 (83) (55)

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

SA18.30

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Income As at 31 December 2017, General Fund has achieved 65% of the revised budget. This is primarily due to the raising of rates revenue in full. Excluding rate income, General Fund has achieved 47% of the revised budget. The December Quarterly Budget Review Statement recommends an increase of $849K. The major adjustments (offset by a corresponding adjustment in expenditure, unless otherwise stated) in the review are:

Amount Category ($’000) Reason User Charges & 613  Realignment of income between Internal Revenue and Fees User Charges for Mechanical Services $29K  Revision of Holiday Haven projections $343K  Proponent Funded works $116K  Visitor Centre income adjustment to match income

received and forecast income to end of year $60K  Parking sign changes $49K  Private works weed control $8K  Kerb & Gutter contributions $13K  Cost recoupment $14K

SA18.30  Downward adjustment for Family Day Care ($16K), Road Safety Officer grant claimable due to vacant position ($3K), Interest & 1  Low interest community loan payable Investment Revenue Other Revenues 31  Tourism $6K: Advertisement placement higher than anticipated  Property lease income changes $25K (multiple properties) Internal (105)  Adjust budget for dividend to be received in Q3 $19K Revenue  Reduce Project Delivery internal revenue – staff vacancies ($115K)  Realign budget for Traffic internal roads unit after restructure $112K  Revision of Holiday Haven projections ($106K)  Realignment of Mechanical Services to User Fees and Charges ($29K)  Realignment of Noxious Weeds revenue stream $14K Grants & 55  Reduction in Road Safety Officer grant claimable (vacant Contributions - position) ($16K) Operating  Adjust to Grant receivable from Noxious Weeds Coordinating Council (new agreement) $19K  RID programme – milestone payments to be received

Strategy and Assets Committee – Tuesday 20 February 2018 Page 35

this financial year $54K  Youth Week Grant $2K  Emergency Services Levy work reduction ($13K)  Increase in Grant budget Road $10 Grants & 254  Section 94 funds received $170K Contributions – Capital  Berry School of Arts grant $61K  EPA grant recycling facility vehicle and signage $23K Operating Expenditure General Fund is on target with operating expenditure at 47% of the revised budget. The December Quarterly Budget Review Statement recommends an increase of $1.64M, part of which is outlined above. The balance is made up of:

Category Amount Reason ($’000) Employee (262)  Transfer from Internal Expenses to Governance – fund Benefits & increased staffing costs due to additional Council Oncost meetings $45K

 Bushcare $50K increase per MIN17.1067 for Indigenous SA18.30 Regenerators  Net increase Noxious Weeds, offset by income $14K  Increase in Staffing at Visitor Centre over peak period $60K  Reduction Project Delivery due to staff vacancies ($115K)  Reduction Road Safety Officer due to vacancy ($37K)  Payroll tax adjustment (no longer required to pay) - Swim and Fitness ($206K), SEC ($48K)  Reduction Property Officer conference – finalised ($17K)  Revision of Holiday Haven projections ($8K)

Strategy and Assets Committee – Tuesday 20 February 2018 Page 36

Materials & 734  East Coast Low restoration works $100K, transferred Contracts from reserves  Revision of Holiday Haven projections $508K  Proponent funded works, offset by income $115K  Increase in Tourism $7K, (Marketing, offset by income $30K, Tourism campaign ($23K)  SEC refurbishment $37K (transferred from capital)  Transfers from Capital area for Nowra CBD access improvements $14K  Transfers to Capital from Car parking Basin ($25K) for new streetlights in Basin area  Contract completion Privet ($25K)  Transfer to capital – maintenance component of RPA

works ($15K)  Family Day Care additional costs $15K  Community Services Youth Week $2K Depreciation 860  Net effect of changes in depreciable assets in open spaces and other structure categories and the addition of

SA18.30 2016-17 completed assets Other Expenses 205  Revision of Holiday Haven projections $150K  Changes in leasehold property expenses $35K  Additional funding Shoalhaven River Festival $15K  Additional funding Shoalhaven Heads Fireworks $5K Internal 100  Transfer to Employee Benefits ($45K) for Council Expenses meeting costs  Transfer to Other Expenses (River Festival & SH Fireworks) ($20K)  Realign budget for Traffic internal roads unit after restructure $113K  Revision of Holiday Haven projections $48K  Spend on leased properties $4K

Non-Operating Expenditure Capital Expenditure as at 31 December is 36% of the revised budget (excluding commitments). The December Quarterly Budget Review Statement recommends a budget decrease of $5.76M, of which $5.8M relates to the reforecast of the spend at the Northern Indoor Sporting Complex. Other adjustments in the capital are as follows:

Program Amount Reason ($’000) Buildings and 113  Fund expenses relating to sales from reserves $58K, Property

Strategy and Assets Committee – Tuesday 20 February 2018 Page 37

transfer from operating for re-roofing $55K Commercial (37)  Transfer to operating – SEC – refurbish Café Undertakings Internal Corporate 5  Transfer from operating – retaining wall $5K Services Open Space (5,930)  Reforecast of SISC spend to 18/19 budget ($5,880)  Narang Rd lighting project completion ($50) Roads and 62  $14K from KG contributions, $13K recoupment of costs Transport $10K additional grant for Greenwell Pt Road, $20K from operating to fund maintenance component of RPA Kerb & Gutter, Other transfers to and from operating $5K Waste and 24  Grant from EPA for purchase of vehicle and digital Recycling Program curtains

Asset Sales Asset sales are at 49% of the December Adjusted Budget. The recommended adjustment is an increase of $1.52M for proceeds from sale of assets $1.515M and sale of investments $7K

SA18.30

Strategy and Assets Committee – Tuesday 20 February 2018 Page 38

Reserve Movements The December Quarterly Budget Review recommends $7.5M being put to the General Fund Reserves. Below is a summary of the major movements to General Fund Reserves recommended in the review:

Reserve Amount Reason ($’000) Property (1,448)  Proceeds from sale of properties: ($1,515K) Reserve  Costs related to sales 67K Section 94 (1,407)  Contributions received for future development $169K (Developer Contributions –  Section 94 component of SISC $1,238 General Fund) Committed (4,210)  Reforecast of SISC spend $4,210

Capital Works Land (430)  Reforecast of SISC spend Decontamination

Water Fund The budget adopted by Council produced an operating profit of $2.1M, an operating profit before Capital Grants and Contributions of $607K and a reduction in cash and investments of SA18.30 $5.9M. The revotes carried forward and adjustments made in this quarterly review have resulted in the following:

December Projected Original Current Review Year End Budget Budget Adjustment Result Recommended

Operating Result 2,107 2,542 (1,106) 1,436 Operating Result before Capital Grants and 607 1,042 (1,106) (64) Contributions Net Cash & Investments (5,900) (8,426) 3,550 (4,876) Movement

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

Strategy and Assets Committee – Tuesday 20 February 2018 Page 39

Water Fund 30,000

25,000

20,000

15,000 $'000 10,000

5,000

0 Revenue Operating Non-Operating Asset Sales Expenditure Expenditure

Projected Year End Result Actual to Date

Income As at 31 December, Water Fund has achieved 54% of the revised budget, there is an adjustment of $200K for resource recoupment, additional water meter installs and increased

revenue from overdue accounts. SA18.30

Operating Expenditure Water Fund is on target with operating expenditure at 48% of the revised budget. The December Quarterly Budget Review Statement recommends an increase of $1.3M, mainly due to a depreciation adjustment.

Non-Operating Expenditure Capital Expenditure, as at 31 December, is 32% of the revised budget (excluding commitments). A reduction of $3.3M is recommended after reviewing the timing of a number of key projects and expected outflow of payments.

Asset Sales Asset sales is at 58% of the revised budget. No adjustments are recommended.

Dividend / Tax Equivalent Payment An adjustment of $17k is recommended to align the dividend payment with the 2016-17 financial statements.

Sewer Fund The budget adopted by Council produced an operating profit of $11.9M, an operating profit before Capital Grants and Contributions of $10.4M and a reduction in cash and investments of $43M. The revotes carried forward and adjustments made in this quarterly review have resulted in the following:

Strategy and Assets Committee – Tuesday 20 February 2018 Page 40

December Projected Original Current Review Year End Budget Budget Adjustment Result Recommended

Operating Result 11,930 12,800 (265) 12,535 Operating Result before Capital Grants and 10,430 11,300 (265) 11,035 Contributions Net Cash & Investments (43,165) (47,035) 465 (46,570) Movement

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

Sewer Fund 120,000

100,000

SA18.30 80,000

60,000 $'000 40,000

20,000

0 Revenue Operating Non-Operating Asset Sales Expenditure Expenditure

Projected Year End Result Actual to Date

Income As at 31 December, Sewer Fund has achieved 53% of the revised budget, an adjustment of $450K is recommended for increased chargeable private works $100k and reforecasting of interest received $350k, due to changes in the timing of capital disbursements.

Operating Expenditure Sewer Fund is slightly below target with operating expenditure at 46% of the revised budget. The December Quarterly Budget Review Statement recommends an increase of $714K due to a depreciation adjustment.

Non-Operating Expenditure Capital Expenditure as at 31 December is 31% of the revised budget (excluding commitments). A decrease of $20K is recommended after reviewing the timing of a number of key projects and expected outflow of payments this has been offset by an increase in chargeable private works $100K.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 41

Asset Sales Asset sales is at 36% of the revised budget. No adjustments are recommended.

Dividend / Tax Equivalent Payment An adjustment of $2K is recommended to align the tax equivalent payment with the 2016-17 financial statements.

Key Performance Indicators The impact of the variations highlighted above has led to a deterioration in a number of Council’s key performance indicators:

Operating performance ratio

During Quarter 2, the ratio has decreased from -3.8% (at the end of Quarter 1) to -4.3% mostly due to the depreciation adjustment. Most of the other adjustments have corresponding impacts on revenue and expenditure.

SA18.30 Unrestricted current ratio

During Quarter 2, the Unrestricted Current Ratio has improved from 1.28 to 1.48. This is due to the reforecasting of the capital spend.

For Sewer Fund, the ratio is impacted by the large borrowings for REMs, causing the current liabilities to increase with the current assets remaining at a normal operating level. This will improve in future years as the cash balance is planned to increase to cover the additional loan repayments.

Cash expense ratio

During Quarter 2, the Cash Expense Ratio has shown some improvement from 2.09 to 2.51, which is largely attributable to the reforecasting of the capital spend.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 42

Council’s Groups General Manager’s Group

General Manager 5,000 4,500 4,000 3,500 3,000 2,500

$'000 2,000 1,500 1,000 500

0 Revenue Operating Non-Operating Asset Sales Expenditure Expenditure

Projected Year End Result Actual to Date

The recommended budget changes, revised budget and result to date for the General

Manager’s Group are summarised below, details of the adjustments and variances are SA18.30 included in the December Quarterly Budget Review Statement.

December Projected Original Current Review Actual to Year End % Budget Budget Adjustment Date Result Recommended Revenue 1,262 2,420 0 2,420 786 32% Operating Expenditure 2,752 4,570 20 4,590 1,741 38% Non-Operating Expenditure 4,060 4,065 2 4,067 166 4% Asset Sales 1,800 1,800 0 1,800 721 40%

General Manager’s Comments: Revenue received to date is lower than anticipated due to delay in been able to commence the Ulladulla Harbour Berthing Project. This matter will be subject to a separate report to council. Capital Expenditure is tracking low however is also reflecting the delayed progress with the Berthing Project. Subdivision construction works will commence at Woollamia Industrial Estate will commence in the 3rd & 4th quarters. Asset sales will be achieved for the full year.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 43

Finance, Corporate and Community Services

The recommended budget changes, revised budget and result to date for the Finance, Corporate and Community Services Group are summarised below, details of the adjustments and variances are included in the December Quarterly Budget Review Statement. SA18.30

December Projected Original Current Review Actual to Year End % Budget Budget Adjustment Date Result Recommended Revenue 113,749 109,261 229 109,490 89,182 81% Operating Expenditure 55,303 56,556 (21) 56,535 28,753 51% Non-Operating Expenditure 12,372 24,113 (5,912) 18,201 5,849 32% Asset Sales 0 0 7 15 12,660 84400%

Group Director’s Comments:

Revenue and Operating Expenditure are in line with projections. As part of the December 2017 review there has been an adjustment to the 17/18 capital projects budget for the Shoalhaven Indoor Sport Centre to align with the progress of works and spend resulting in a transfer of $5,880 of non-operating expenditure to the 18/19 financial year.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 44

Planning, Environment and Development Services

Planning, Environment & Development Services 24,000

20,000

16,000

12,000 $'000 8,000

4,000

0 Revenue Operating Expenditure Non-Operating Expenditure

Projected Year End Result Actual to Date

The recommended budget changes, revised budget and result to date for the Planning, Environment and Development Services Group are summarised below, details of the adjustments and variances are included in the December Quarterly Budget Review SA18.30 Statement. December Projected Original Current Review Actual to Year End % Budget Budget Adjustment Date Result Recommended Revenue 7,224 9,785 201 9,986 4,257 43% Operating Expenditure 17,129 21,857 347 22,204 9,287 42% Non-Operating Expenditure 1,190 2,019 0 2,019 696 34% Group Director’s Comments: Revenue has been above initial projections in the Development, Building and Compliance fields, reflective of the increased activity in these areas. Expenditure is in line with projections

Strategy and Assets Committee – Tuesday 20 February 2018 Page 45

Small Lot Rural Subdivision REZONING INVESTIGATIONS Updated 31st December 2017

Jerberra Verons Nebraska

Funding Loan Funded 350,000 150,000 200,000 Loan Funded (transferred from Road Design) 12,968 Special Rates (from construction) 6,626 Special Rates (from construction) (returned) -5,213 Strategic Planning Consultants Budget 25,000 Previous Contributions (Pre 1996) 0 2,571 0 Transfer to Road Construction -55,049 294,951 191,952 200,000 0 0 0

Expenditure Salaries 157,224 32,614 48,929 Consultants 123,636 157,396 61,876 Other 14,091 1,942 20,085

Commitments in 2017/18 0 0 0

294,951 191,952 130,890 SA18.30

Variance 0 0 69,110

ROAD DESIGN AND INVESTIGATIONS Updated 31st December 2017

Jerberra Verons Nebraska

Funding Loan Funded 184,438 50,281 50,281 Transfer to road construction -168,616 0 -22,800 Transfer to rezoning 0 -12,968 0 15,822 37,313 27,481

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

Commitments in 2017/18 0 0 0

15,821 37,313 16,835

Variance 0 0 10,646

Strategy and Assets Committee – Tuesday 20 February 2018 Page 46

ROAD CONSTRUCTION Updated 31st December 2017

Jerberra Verons Nebraska

Funding Loan Funded (from investigations) 168,616 0 22,800 General Fund 0 3,000 0 Strategic Projects (2008/09) 82,020 41,738 11,750 Special Rate Funded 232,640 141,011 77,108 Infrastructure Special Rate (Loan) 7,200,000 2,130,000 0 Transfer to Estate Rezoning -6,626 Transfer to Estate Rezoning (returned) 5,213 Transfer from Estate Rezoning 55,049 7,738,325 2,314,336 111,658 0 0 0 Expenditure Salaries 50,282 33,432 5,569 Consultants 11,662 0 12,575 Other 2,017,611 146,554 79,996

Commitments in 2017/18 205,828 0 0

2,285,383 179,986 98,139 SA18.30

Variance 5,452,942 2,134,351 13,519

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

Nebraska Estate: $69,110 remains for progressing rezoning investigations.

Verons Estate: The $150,000 borrowed in 2006 to fund the rezoning investigations has been fully spent. A total of $25,000 has now been transferred from the Strategic Planning Consultants budget. This will need to be recouped from the landowners at a later date. $1,413 has also been transferred from road construction to rezoning investigations. Further transfer(s) may be necessary to complete the project.

Road investigations and construction: The balance of the roadwork design budget for Nebraska Estate for 2017/2018 is $10,646. The balance of the construction budgets for Jerberra, Verons and Nebraska Estates for 2017/2018 are $5.4M, $2.1M and $13,519 respectively.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 47

Assets and Works

The recommended budget changes, revised budget and result to date for the Assets and SA18.30 Works Group are summarised below, details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

December Projected Original Current Review Actual to Year End % Budget Budget Adjustment Date Result Recommended Revenue 97,288 117,986 371 118,357 60,160 51% Operating Expenditure 140,243 140,334 1,300 141,634 66,146 47% Non-Operating Expenditure 44,632 78,074 148 78,222 30,375 39% Asset Sales 1,940 2,069 1,515 3,584 1,892 53% Group Director’s Comments: Operating expenditure is tracking well, as is the operating revenue. Capital is falling behind in a pro-rata comparison in the report. The items contributing to this are:  Plant and Fleet – The commitment of almost $1M for plant isn’t reflected in reports. When taking this into account, they are tracking at 54% at the end of December. Additional purchases will be committed in early February, and all deliveries are expected prior to the end of financial year.  Pedestrian Facilities – Chris Creek SUP – a grant has just been offered in the vicinity of $930K to supplement this project budget. The project will then proceed to design and construct with a 2 year timeframe, estimated completion is by December 2019. Headland commenced at the end of the second quarter. Pedestrian Infrastructure around schools project will be actioned during the April school holidays, when traffic movements are at their lowest. The Pedestrian Signals project has been a joint project with the RMS. It is envisaged the works will be going to tender late February, works to commence in April with completion in June/July this year.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 48

 Holiday Haven – Two sites have had unexpected issues with mains breaks during this financial year, requiring additional funding. In addition to this, the 17/18 budget was lean, amendments have been made in consultation with Finance.  Roads – all categories of the Roads programme are tracking well with the exception of the Bridge programme pro-rata. Bridge replacement is due for commencement during Quarter 4.

Stormwater Levy Spending against the Stormwater Levy is 49% of budget.

Stormwater Levy Progress 2017/18

Stormwater Levy Budget Budget 2016/17 Adjustment Actual % Spent 2017/18 Adjustment Current Remaining unspent Notes

Drainage Program St Andrews Way Coolangatta Stage 2 $122,062 $0 $122,062 $2,535 $119,527 2% The Park Dr Sanctuary Pt $141,988 $0 $141,988 $16,771 $125,217 12% Dacres St Vincentia Drainage $29,739 $0 $23,270 1, 3,5 $53,009 $76,099 $0 100% 802 Sussex Inlet Road - Drainage $15,501 $150,000 -$165,501 2, 3 $0 $0 $0 100% Greville Ave Sanctuary Point $5,519 $250,000 -$164,196 4 $91,323 $4,578 $86,745 5% Drainage Sth Nowra Industrial $47,125 $0 $47,125 $1,454 $45,671 3% Bolong Rd Bomaderry Culvert upgrade $73,065 $250,000 $131,532 6 $454,597 $474,745 $0 100% Adelaide & Church St Greenwell Point $76,425 $107,500 $183,925 $53,919 $130,007 29% Sunset Strip $38,177 $0 $38,177 $2,841 $35,336 7% River Rd Sussex Inlet Drainage $27,092 $0 $27,092 $9,188 $17,904 34% SA18.30 Waratah Cres Sanctuary Point - Drainage $0 $143,000 $13,155 7 $156,155 $155,720 $435 100% Reserve Road, - Drainage $0 $100,000 $100,000 $0 $100,000 0% River Road, Shoalhaven Heads - Drainage $0 $100,000 $100,000 $998 $99,003 1% 89 Sussex Inlet Road - Drainage $0 $0 $150,000 2 $150,000 $3,145 $146,855 2% Links Avenue Sanctuary Point $0 $0 $17,513 8 $17,513 $17,472 $41 100%

Total Stormwater Levy $576,694 $1,100,500 $5,773 $1,682,967 $819,464 $906,741 49%

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

1. September Quarterly Review - additional stormwater levy received $5,378 2. September Quarterly Review - transfer $150K from 802 Sussex Inlet Road to 89 Sussex Inlet Road 3. September Quarterly Review - transfer $15,501 from 802 Sussex Inlet Road to Dacres St Vincentia 4. December Quarterly Review - transfer to other projects - unexpected delays on site 5. December Quarterly Review - transfer $2,351 from Greville Ave to Dacres St Vincentia 6. December Quarterly Review - transfer $131K from Greville Ave to Bolong Road 7. December Quarterly Review - transfer $13,155 from Greville Ave to Waratah Cres 8. December Quarterly Review - additional stormwater levy received $395; transfer $17,118 from Greville Ave

Group Director’s Comments: Greville Ave drainage has had unexpected delays due to the discovery of asbestos. As it is now unlikely that this project will be completed this financial year, the stormwater levy has been reallocated to other projects for this financial year. Greville Avenue will receive additional funding next financial year once a new project plan has been established. Bolong Road culvert project was a project spanning two stages. Issues were encountered on site that were not estimated in the initial project budget. There was additional backfilling and road seal required, headwall construction, crane hire and additional contingencies to protect water mains & Telstra assets. In addition to these, the subgrade conditions encountered were worse than originally anticipated.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 49

Special Rate Variations

Spending against the Special Rate Variation from 2013/14 is 48% of budget.

Special Rate Variation Progress 2017/18 - (2013/14 SRV )

Special Rate Variation Budget Budget 2016/17 Adjustment Actual % Spent 2017/18 Adjustment Current Remaining unspent Notes

Special Rate Variation Program Agars Lane Sealing $15,745 $0 $15,745 $0 $15,745 0% Beach Res Cycleway - Mitchell Pde $28,988 $0 $28,988 $28,988 $0 100% Coolangatta Road $533,756 $0 $533,756 $533,756 $0 100% Jacobs Dr, Sussex Inlet $375,548 $0 -$375,548 1 $0 $0 $0 100% Naval College Road $319,533 $0 $319,533 $319,533 $0 100% Bendalong Rd Ch 1.6-2.4 $0 $800,000 $800,000 $16,255 $783,745 2% Warden St Ulladulla Ch 0.32-0.566 $0 $300,000 -$93,231 2 $206,769 $15,862 $190,907 8% The Wool Rd Old Erowal Bay Ch 9.727-11.120 $0 $800,000 $800,000 $11,247 $788,753 1% Coonemia Rd Ch 0-2 $0 $603,613 -$603,613 3 $0 $0 $0 0%

Ulladulla Traffic & Pedestrian Improvements $93,231 2 $93,231 $93,231 $0 100% Naval College Road intersection $603,613 3 $603,613 $603,613 $0 100%

Total Special Rate Levy $1,273,569 $2,503,613 -$375,548 $3,401,634 $1,622,484 $1,779,150 48%

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

1. September QBR - combine Jacobs Drive Streetscape into one project budget (combine with SRV 2018 funds)

2. September QBR - combine Ulladulla Projects together SA18.30 3. September QBR - defer Coonemia Road project and transfer funds to completed Naval College Road project

Group Director’s Comments: The spend against the 2013/14 SRV is tracking well at the half way point of the year. Bendalong Road is scheduled to commence early February, with the contract spanning 8 weeks. Weather permitting, this project will be completed at the end of Quarter 3. Warden Street Ulladulla is scheduled to commence in April (Quarter 4).

Spending against the Special Rate Variation from 2017/18 is 32% of budget.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 50

Special Rate Variation Progress 2017/18 - one year only

Budget Adjustment Actual % Spent 2017/18 Adjustment Current Remaining Notes

Special Rate Variation Program Public Halls Programmed Mtce $200,000 $200,000 $119,358 $80,642 60% Parks Core Maintenance $200,000 $200,000 $53,265 $146,735 27% Local Rds Routine Maintenance $600,000 $600,000 $316,545 $283,455 53% Millbank Road Local Road Repair $400,000 $400,000 $4,260 $395,740 1% Hillcrest Ave Local Road Repair $300,000 $300,000 $16,167 $283,833 5% Jindy Andy Lane $700,000 -$100,000 2 $600,000 $2,769 $597,231 0% Local Road Resurface $1,996,012 $1,996,012 $1,064,576 $931,436 53% Rd 1.8 to 3.3 km - Stage 1 $400,000 $400,000 $138,630 $261,370 35% Jacobs Drive Streescape $500,000 $375,548 1 $875,548 $360 $875,188 0% Graham Road $0 $100,000 2 $100,000 $100,000 $0 100%

Total Special Rate Levy $5,296,012 $375,548 $5,671,560 $1,815,931 $3,855,629 32%

Note: - The projects may have other additional funding, but only the 2017/18 Special Rate Levy is included in this table

1. September QBR - Jacob's Drive project combined with 2013/14 SRV funds 2. September QBR - transfer $100K from Jindy Andy Ln to Graham Road Group Director’s Comments:

Public Halls is 60% spent as at the end of December. Contracts have been entered into which will complete the use of the Special Rate funds in this category. SA18.30

Parks funds are at 27% which is consistent with the cyclical nature of their spend.

The roads maintenance and resurfacing projects are tracking well. The other roads (Millbank, Hillcrest and Jindy Andy) haven’t substantially commenced as at end December, however Hillcrest is underway during the month of January. This spend will be reflected in the March Quarterly Review report.

Jacobs Drive streetscape works are under negotiation after an unsuccessful tender.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 51

Shoalhaven Water

Shoalhaven Water (General Fund) 5,000 4,500 4,000 3,500 3,000 2,500

$'000 2,000 1,500 1,000 500 0 Revenue Operating Expenditure Non-Operating Expenditure

Projected Year End Result Actual to Date

The recommended budget changes, revised budget and result to date for the Shoalhaven Water (General Fund) Group are summarised below, details of the adjustments and variances are included in the September Quarterly Budget Review Statement. SA18.30

December Projected Original Current Review Actual to Year End % Budget Budget Adjustment Date Result Recommended Revenue 4,420 4,420 0 4,420 2,230 50% Operating Expenditure 4,034 4,034 (11) 4,023 1,926 48% Non-Operating Expenditure 8 8 0 8 0 0% Group Director’s Comments: The Shoalhaven Water General Group is operating on target, with revenue at 50.5% of budget and operational expenditure at 47.9% of budget. The recommended adjustment of $11k to operating expenditure relates to a depreciation adjustment.

Strategy and Assets Committee – Tuesday 20 February 2018 Page 52

Water Fund

Water Fund 30,000

25,000

20,000

15,000 $'000 10,000

5,000

0

Revenue Operating Non-Operating Asset Sales Expenditure Expenditure

Projected Year End Result Actual to Date

The recommended budget changes, revised budget and result to date for the Shoalhaven

Water (Water Fund) Group are summarised below, details of the adjustments and variances SA18.30 are included in the December Quarterly Budget Review Statement.

December Projected Original Current Review Actual to Year End % Budget Budget Adjustment Date Result Recommended Revenue 27,261 27,749 200 27,949 14,966 54% Operating Expenditure 25,153 25,207 1,306 26,513 12,665 48% Non-Operating Expenditure 16,065 19,275 (3,395) 15,880 5,081 32% Asset Sales 182 182 0 182 105 58%

Group Director’s Comments: The Water Fund is operating on target, with operational expenditure at 47.8% and revenue at 53.5% of budget. The adjustment for revenue relates to the reallocation of resources to capital projects $150k, water meter installations exceeding forecasts $30k and increased revenue from overdue accounts; while the adjustment to operating expenditure relates to an increase in the depreciation charge with the addition of 2016-17 completed assets. The capital program is progressing at 32.0% of budget and requires an adjustment of $3,395k. This reduction is due to a change in the timing of a number of capital projects and expected outflow of payments

Strategy and Assets Committee – Tuesday 20 February 2018 Page 53

Sewer Fund

Sewer Fund 120,000

100,000

80,000

60,000 $'000 40,000

20,000

0 Revenue Operating Non-Operating Asset Sales

Expenditure Expenditure

Projected Year End Result Actual to Date

The recommended budget changes, revised budget and result to date for the Shoalhaven Water (Sewer Fund) Group are summarised below, details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

SA18.30 December Projected Original Current Review Actual to Year End % Budget Budget Adjustment Date Result Recommended Revenue 48,016 48,886 450 49,336 25,934 53% Operating Expenditure 36,087 36,087 714 36,801 16,791 46% Non-Operating Expenditure 111,467 113,401 (20) 113,381 35,315 31% Asset Sales 122 122 0 122 44 36%

Group Director’s Comments: The Sewer Fund is operating on target, with operating expenditure at 45.6% of budget and revenue at 52.6%. The adjustment to revenue relates to income from chargeable private works $100K and additional interest income due to changes in the timing of capital expenditure. The adjustment to operating expenditure of $714k relates to the change in the depreciation charge with the addition of 2016-17 completed assets. The capital program is at 31.1% of the budget. A minor reduction of $20k to the capital program is recommended in this review.

Financial Implications Adjustments made in the December quarter budget review has resulted in a projected cash deficit budget. Council will need to be mindful of the situation and not introduce new works or services unless a funding source is clearly identified.

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SA18.31 Classification of Land - Lot 1 DP553658 (No.333) Illaroo Road Bangalee

HPERM Ref: D17/430490

Group: Assets & Works Group Section: Business & Property

Attachments: 1. Plan - Lot 1 DP553658 ⇩

Purpose / Summary To seek approval from Council to classify the land described as Lot 1 DP553658 (No.333) Illaroo Road Bangalee as Operational Land.

Recommendation That Council resolve to classify the land described as Lot 1 DP553658 (No.333) Illaroo Road Bangalee as Operational Land.

SA18.31 Options 1. Resolve as recommended. Implications: The land will be able to be used in part to facilitate the construction of the Far North Collector Road. Should any objections be received prior to the close of submission on 15 February 2018 Council will be notified at its meeting on 20 February 2018. 2. Not resolve as recommended. Implications: The land will default to Community Land and be subject to the Community Land provisions as outlined in the Local Government Act 1993 (LGA93). This will have a negative impact on Council’s ability to deal with the land for any reason including dedication and construction of the Far North Collector Road.

Background Lot 1 DP553658 (No.333) Illaroo Road Bangalee (refer to Attachment 1) is being acquired (Approved at Council’s Ordinary Meeting dated 19th December 2017 per MIN17.1078) to provide for the construction of the Far North Collector Road linking Illaroo Road to the south with Moss Vale Road to the north. Once the Far North Collector Road is constructed a further report will be provided to Council outlining options and recommendations for any residual land.

Section 31(2) of the Local Government Act, 1993 (LGA93) provides that before Council acquires land, or within 3 months after it acquires land, Council may resolve to classify it.

There are two classifications available:

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1. Operational Land – land which Council owns as a business entity and upon which it conducts Council business, and 2. Community Land – Land in Council’s ownership which is held for and on behalf of the Community subject to the Community Land provisions of the LGA93. Land will automatically be classified community land if it is acquired or dedicated (under Section 94 of the EPA Act 1979) being “subject to a trust for public purposes” i.e land intended for public access or use. The advantage of community land is it will restrict the alienation and use of the land, thereby protecting the public interest. Operational land on the other hand has no special restrictions other than those that may apply to any parcel of land. The advantage of operational land is to afford Council flexibility in its use and any future dealings. A resolution of Council, within the time frame prescribed in the LGA93, is required to finalise the classification of land as Operational. Should the classification process not be completed, the land will default to Community Land. Land incorrectly classified (via resolution or by default) that subsequently requires an ability to be dealt with will require a reclassification to operational land that involves the making of an LEP amendment under the EPA Act 1979. This is a timely and costly exercise with no budget having been provided.

Community Engagement

In accordance with Section 34 of the LGA93, a public notice of Council’s intention to classify SA18.31 the land as Operational was placed in the local press 17 January 2018 allowing 28 days for written submissions, closing 15 February 2018. At the time of writing this report no submissions have been received and any submissions received prior to the closing time will be revealed at the Committee meeting.

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Attachment 1

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SA18.31

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SA18.32 Proposed Leases - Illawarra Area Child Care Incorporated - Four Sites- 2*Sanctuary Point - Shoalhaven Heads - Nowra

HPERM Ref: D18/3459

Group: Assets & Works Group

Purpose / Summary To seek Council approval to enter into lease agreements with Illawarra Area Child Care Inc. for the continued use and occupation of the following four (4) sites as Preschools:  34 Paradise Beach Rd, Sanctuary Point

 210 Kerry St, Sanctuary Point  42 Clipper Rd, Nowra  16 Celia Pl, Shoalhaven Heads

SA18.32 Recommendation That Council: 1. Enter into a 5 year lease agreement commencing 1 July 2018 with Illawarra Area Child Care Inc. for the continued use and occupation as a preschool of: a) The Basin Preschool at 34 Paradise Beach Rd, Sanctuary Point with an annual rent of $11,553.07 (plus GST) with annual CPI increases; and b) Sanctuary Point Children’s Centre at 210 Kerry St, Sanctuary Point with an annual rent of $6,460.80 (plus GST) with annual CPI increases; and c) Clipper Road Children’s Centre at 42 Clipper Rd, Nowra with an annual rent of $4,172.50 (plus GST) with annual CPI increases; and 2. Advertise its intention to enter into a 5 year lease agreement with Illawarra Area Child Care Inc. and if no objections are received, authorise the lease for the continued use and occupation of Jerry Bailey Children’s Centre at 16 Celia Pl, Shoalhaven Heads for the purpose of a preschool with an annual rent to commence at 01 July 2018 of $8,516.16 (plus GST) with annual CPI increases; 3. Approve the allocation of the rent received under each lease agreement into the Property Reserve restricted account; and 4. Authorise the General Manager to sign all documentation required to give effect to this resolution and to affix the Common Seal of the Council of the City of Shoalhaven to all documentation required to be sealed.

Options 1. Resolve as recommended Implications: Illawarra Area Child Care Inc. will continue its occupation of these properties thereby providing a learning environment for up to 160 children per day.

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2. Not resolve as recommended and place the properties on the open market for lease. Implications: Illawarra Area Child Care Inc. operaties these four preschools and has already accepted enrolments for the coming year. To terminate the existing occupation by the preschools would cause stress to the parents of children who attend. Further, there is no guarantee that a replacement lessee could be found in the short term.

3. Not resolve as recommended and renegotiate lease terms. Implications: A deferred rent commencement date of 01 July 2018 as recommended is in line with previous concessions offerred to all preschools to facilitate appropriate budgeting action and to reduce any financial burden in the early stages of the lease term. The proposed lease terms are in accordance with Council’s adopted Occupation of Council Owned and Managed Land Policy.

Background

Illawarra Area Child Care Inc. (IACC) is a not for profit community owned organisation established in 1984 and incorporated in 1985. IACC operates six long day care services, two occassional care services and two multifunction services in the Illawarra and Shoalhaven. Council has been in lease negotiations with IACC for a number of years. The lease negotiations commenced with a “preschool co-operative” group as initial concerns were

shared with each preschool. SA18.32 Negotiations with the co-operative group were finalised in June 2017 and now each preschool is negotiating with Council directly on any remaining issues. Negotiations with IACC have now concluded and agreements have been reached in relation to each site as outlined below:

The Basin Preschool

Existing Arrangement In June 2007 Council proposed that IACC enter into a ten (10) year lease for The Basin Preschool at an annual rental of $1. No lease was ever formally offered or entered into.

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Proposed Agreement

Lessee Illawarra Area Child Care Inc.

Lessor Shoalhaven City Council

Premises Part Lot 2 DP805351 – 34 Paradise Beach Rd, Sanctuary Point

Land Classification Operational

Term 5 years

Assessed Market Rent $65,091 plus GST per annum

Rent Payable $11,553.07 plus GST per annum, payable monthly in advance

Application of Rent Rental subsidy = 83% Assessment Policy

Rent Review Annually by CPI

Percentage of Outgoings 100%, outgoings refers to all charges for gas, electricity, telephone and any water rates and usage, garbage or SA18.32 sanitary rates or user charges relating to the Lessee’s use of the Premises.

Permitted Use The operation of a Preschool and all activities incidental thereto.

Public Risk Insurance Twenty million dollars ($20,000,000.00)

Sanctuary Point Children’s Centre Existing Agreement In December 2005 IACC entered into a ten (10) year lease for the Sanctuary Point Children’s Centre at an annual rental of $1. Since the expiration of that Lease in 2015, the Centre has remained in occupation on a holding over basis.

Proposed Agreement

Lessee Illawarra Area Child Care Inc.

Lessor Shoalhaven City Council

Premises Lots 952, 953 & 954 DP27857

Land Classification Operational

Term 5 years

Assessed Market Rent $ 65,091 plus GST per annum

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Rent Payable $ 6,460.80 plus GST per annum, payable monthly in advance

Application of Rent Rental subsidy = 90% Assessment Policy

Rent Review Annually by CPI

Percentage of Outgoings 100%, outgoings refers to all charges for gas, electricity, telephone and any water rates and usage, garbage or sanitary rates or user charges relating to the Lessee’s use of the Premises.

Permitted Use The operation of a Preschool and all activities incidental thereto.

Public Risk Insurance Twenty million dollars ($20,000,000.00)

Clipper Road Children’s Centre On the 4th September 1988 Council as lessee entered into a lease with Land & Housing Corporation for the property located on the corner of Clipper Road and Kameruka Cres (Lots 141-143 DP 703670), Nowra for a period of 99 years at $1pa.

SA18.32 The lease stipulates the premises are to be used for no other purpose than as a Child Care Centre and to only make alterations with the consent of the Lessor. Council is also responsible for all maintenance and outgoings associated with the premises. Initially the premises were sub-let to Clipper Road Children’s Centre Incorporated for 10 years and this reverted to a monthly hold over till July 2004 when a request was received to transfer management of the Centre to Illawarra Area Child Care Inc. Protracted negotiations ensued with Council resolving at its Ordinary meeting held 24 July 2007 under MIN07.1055 to grant a five year lease at $1pa.

Existing Agreement In August 2007 IACC entered into a five (5) year lease for Clipper Road Children’s Centre at an annual rental of $1 with a back dated commencement date of 1st December 2004. Since the expiration of that lease in 2009, IACC has remained in occupation on a holding over basis.

Proposed Agreement

Lessee Illawarra Area Child Care Inc.

Lessor Shoalhaven City Council

Owner Land & Housing Corporation

Premises Lots 141, 142 & 143 DP 703670 Clipper Road Nowra

Term 5 years

Term of Head Lease 3rd September 2088 (Refer to above)

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Assessed Market Rent $41,725.00 plus GST per annum

Rent Payable $4,172.50 plus GST per annum, payable monthly in advance

Application of Rent Rental subsidy = 90% Assessment Policy

Rent Review Annually by CPI

Percentage of Outgoings 100%, outgoings refers to all charges for gas, electricity, telephone and any water rates and usage, garbage or sanitary rates or user charges relating to the Lessee’s use of the Premises.

Permitted Use The operation of a Preschool and all activities incidental thereto.

Public Risk Insurance Twenty million dollars ($20,000,000.00)

Jerry Bailey Children’s Centre Existing Agreement

SA18.32 The Centre operated under a Management Committee until 1 January 2012 when all assets and liabilities were transferred to IACC. Since this time, the Centre has not had a formal occupation agreement.

Proposed Agreement

Lessee Illawarra Area Child Care Inc.

Lessor Shoalhaven City Council

Premises Part Lot 42 DP14490 – 16 Celia Pde, Shoalhaven Heads

Land Classification Community (must be advertised – see advice under “Community Engagement”)

Term 5 years

Assessed Market Rent $48,401.00 plus GST per annum

Rent Payable $8,516.16 plus GST per annum, payable monthly in advance

Application of Rent Rental subsidy = 83% Assessment Policy

Rent Review Annually by CPI

Percentage of Outgoings 100%, outgoings refers to all charges for gas, electricity, telephone and any water rates and usage, garbage or sanitary rates or user charges relating to the Lessee’s use

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of the Premises.

Permitted Use The operation of a Preschool and all activities incidental thereto.

Public Risk Insurance Twenty million dollars ($20,000,000.00)

Council obtained market valuations for each property from Opteon Property which assessed the current market rents. The assessed market rents represents the rents Council could reasonably expect to receive if the properties were leased to commercial child care operators. Market valuations for child care centres are based on a Government set ratio of indoor and outdoor space with the fees charged by the centre and it is noted that the success (or otherwise) of the business has no impact on the market rental. IACC completed and returned proposal documentation for each facility to enable Council to apply the rental assessment framework to the market valuations. Given the high level of service that each Preschool provides, it was determined that a rental subsidy of 83% and 90% would apply (each facility has unique operating characteristics which are reflected in the variation of subsidy percentage).

Community Engagement

SA18.32 Jerry Bailey Children’s Centre is located on land classified as Community Land under the Local Government Act 1993 and accordingly the lease proposal is required to be advertised for a period 28 days. Sanctuary Point Childrens Centre and The Basin Preschool properties are classified as Operational land under the Local Government Act 1993 and accordingly, there is no requirement for any public notification of these two lease proposals. As the Clipper Road Children’s Centre property is owned by Land & Housing Corporation with Council being the sub-lessor there is no requirement for any public notification of this lease proposal.

Policy Implications The proposed lease terms are in accordance with Council’s Occupation of Council Owned or Managed Land Policy.

Financial Implications Entering into the lease agreements, as recommended, will increase Council’s revenue by $30,702 per annum which will assist Council in maintaining its assets into the future.

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SA18.33 Proposed Temporary Licence- South Coast Branch NSW of Surf Life Saving Australia Inc.- 177-179 Illaroo Rd, North Nowra

HPERM Ref: D18/4819

Group: Assets & Works Group

Attachments: 1. Aerial View - 177 to 179 Illaroo Road, North Nowra ⇩

Purpose / Summary To provide Council with an opportunity to consider the possibility of entering into a temporary licence agreement with South Coast Branch NSW of Surf Life Saving Australia Incorporated for the use and occupation for storage purposes of the building at 177 – 179 Illaroo Rd, North Nowra.

Recommendation

That Council: SA18.33 1. Enter into a 12 month licence agreement with South Coast Branch NSW of Surf Life Saving Australia Incorporated for the use and occupation of Lots 3 & 4 DP234757 and Lot 1 DP814265, 177 – 179 Illaroo Rd, North Nowra for storage purposes with an annual rent of $486 (plus GST); and 2. Authorise the General Manager to sign all documentation required to give effect to this resolution and to affix the Common Seal of the Council of the City of Shoalhaven to all documentation required to be sealed.

Options 1. Resolve as recommended. Implications: Permitting South Coast Branch NSW of Surf Life Saving Australia Incorporated to use this unoccupied facility will meet their interim storage needs.

2. Not resolve as recommended and pursue other options for 177 – 179 Illaroo Rd, North Nowra. Implications: If other options or users of the property are considered, the South Coast Branch NSW of Surf Life Saving Australia Incorporated will continue to pay for storage at a commercial facility.

Background

Subject Property

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The subject property (see Attachment 1) was used by the Rural Fire Service (RFS) as a functioning fire station until 2016, at which time the RFS relocated to their new facility at Albatross Rd, South Nowra. Council subsequently had an inquiry from St John’s Ambulance Service to lease the site. An independent compliance auditor inspected the building and determined that it complied only as a Class VII Building (National Construction Code’s Building Classification.) The only permissible uses for this type of building are:  Class 7a – carparks; and  Class 7b - warehouses, storage or buildings for the display of goods (or produce) that are for wholesale. The cost of bringing the structure to compliance for other uses was estimated at that time to be in excess of $80,000. St John’s Ambulance were advised that should they wish to use the building for more than storage only, they would be required to submit a Development Application and make modifications to the building at their expense. Upon receiving this information, St John’s Ambulance withdrew their interest.

With the property continuing to be vacant, in June 2017 the Property Unit sought internal comments for the potential disposal of this site. Strategic Planning flagged the property as an ideal site for affordable housing, either in its own right or in conjunction with the adjoining property. Rezoning of the site from R2 Low Density Residential to R3 Medium Density Residential (same as the adjoining land to the South) may be required to facilitate this option.

SA18.33

Surf Life Saving

In July 2017 a Notice of Motion (MIN17.641) sought a report on the suitability of the site for the interim needs of the South Coast Branch NSW of Surf Life Saving Australia Incorporated (SLS). In December 2017 Council staff met with SLS on site to view the property. In line with the Building Classification, should the property be offered to SLS, it could be used for storage purposes only. SLS is agreeable to this restriction.

Council have also been working with SLS since October 2014 to allocate a site for a Headquarters building at Council’s Emergency Management facility at Albatross Rd, South Nowra. Over the last year progress on this matter has gained momentum, with SLS lodging a Development Application. SLS propose to construct a modest building 18.4m x 17.1m (comprising offices, training rooms and storage) with additional undercover storage of 12m x 12m. SLS have not as yet secured funding for the construction of the proposed facility.

SLS seek to use the Illaroo Rd property for storage as an interim measure until such time as their new Headquarters are constructed at Albatross Rd. Currently commercial storage is being utilised by SLS to store boats, trailers and sundry items at a significant cost to the association.

In accordance with POL16/150 Occupation of Council Owned or Managed Land, should a temporary licence for storage at Illaroo Rd be offered, Council will seek a rent equivalent to the minimum statutory rent. SLS has agreed to pay the Statutory Minimum Rent (set by Dept. of Industry) currently $486 (plus GST) per annum.

Suitability of the Site

The property is zoned R2 Low Density Residential and use by SLS is permissible with consent under the Shoalhaven LEP 2014.

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The use of the building for storage complies with the building’s Classification - Class VII Building.

Should the property be made available to SLS for a temporary licence, SLS will be responsible for any consents and approvals (development or otherwise) that may be required for the use of the facility. A temporary licence will be offered under the condition that the building is not to be used for any purpose other than storage and that the building is provided on an ‘as is’ basis.

Policy Implications The proposed Temporary Licence terms comply with POL16/150 Occupation of Council Owned or Managed Land.

SA18.33

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Attachment 1

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SA18.33

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SA18.34 Proposed sale of Lot 2 DP1217124 Wire Lane Berry to Merveilleux Pty Ltd and consolidation with Lot 14 DP253806

HPERM Ref: D18/7298

Group: Assets & Works Group Section: Business & Property

Attachments: 1. Area Plan - Lot 2 DP 1217124 ⇩

Purpose / Summary To allow Council to consider selling Lot 2 DP1217124 Wire Lane, Berry (shown by hatching on Attachment “1”) to the adjoining land owner, Merveilleux Pty Ltd for consolidation with its existing adjacent land holding.

Recommendation That Council:

SA18.34 1. Authorise the sale of Lot 2 DP1217124 Wire Lane, Berry to the owner of the adjoining Lot 14 DP253806, Merveilleux Pty Ltd for $50,000 (plus GST if applicable) provided that each party is to pay its own costs in relation to the sale; 2. Fund all costs associated with the sale from Job Number 88750 and the net proceeds from the sale be placed in the Property Reserve – Roads; to fund future road acquisitions and/or works on public roads; and 3. Authorise the affixing of the Common Seal of the Council of the City of Shoalhaven to any documents requiring to be sealed and that the General Manager be authorised to sign any documents necessary to give effect to this resolution.

Options 1. Resolve as recommended. Implications: The proceeds of the sale of the land will increase Council’s revenue base.

2. Not resolve as recommended. Implications: Council will remain in ownership of the surplus land and continue to be liable for all costs associated with it into the future. Council will also forego the opportunity to maximise income generated through the sale of the land.

Background Council resolved at its Ordinary meeting dated 22 August 2017, per MIN17.742 “That Council:

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1. Advertise its intention to sell Lot 2 DP1217124 Wire Lane, Berry to the adjoining land owner, Merveilleux Pty Ltd, on the condition that land is consolidated with its adjoining land in Lot 14 DP253806; and 2. Receive a further report in due course regarding the sale and finalisation of the sale terms and conditions.”

During September 2017, Council advertised its intention to sell Lot 2 DP1217124 by way of newspaper advertisement, notification on Council’s Website, notification to adjoining and surrounding land owners and to the Berry Forum Committee. One submission was received during the public notice period in relation to Council’s process which covers direct dealing with an adjoining land owner. Council is advised that due to the lot having been created by way of road closure and having regard for the impacts on the land due to easements and planning restrictions Council’s interest will be best served by offering the land for sale to the adjoining land owners in the first instance, on the provision that the land be consolidated with the adjoining lot.

The market value of Lot 2 DP1217124 has been assessed by Consultant Valuers Walsh & Monaghan at $50,700 and Poulton Property Valuers at $50,000 on the basis of the land being consolidated with the adjoining land. Based on these valuations the adjoining land owners have agreed subject to Council approval to pay $50,000 excl GST for the land.

Both parties will be liable to pay their own costs in relation to the sale.

SA18.34

Community Engagement The proposed sale of this land is considered to be a local area low impact issue as outlined in Council’s Community Engagement Policy and Handbook and appropriate community consultation has been carried out.

Financial Implications If Council resolves to sell Lot 2 DP1217124 to the adjoining land owners, the $50,000 in sale proceeds will be transferred to the Property Reserve – Roads, for use on future road projects in accordance with Section 43 of the Roads Act 1993.

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Attachment 1

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SA18.34

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SA18.35 Proposed New Charge for Commercial Quantities of Recyclable Materials

HPERM Ref: D18/21924

Group: Assets & Works Group Section: Works & Services

Attachments: 1. EPA - Letter to NSW Country Mayors Association - Chinas Green Sword ⇩

Purpose / Summary This report is to advise Councillors of the changes in markets for recyclable materials and allow Council to consider a proposal to introduce a new charge for low value recyclable materials received from commercial sources.

Recommendation That Council:

1. Include a charge of $100/tonne in the Draft 2018/19 Fees & Charges for the acceptance SA18.35 of commercial quantities (>1m3) of low value recyclable materials (soft plastics, hard plastics, polystyrene and glass) delivered to Council’s Waste Facilities 2. For the remainder of the 2017/18 financial year, authorise the General Manager to apply a 70% discount to the general waste charge for the acceptance of commercial quantities (>1m3) of low value recyclable materials (soft plastics, hard plastics, polystyrene and glass) delivered to Council’s Waste Facilities

Options 1. Accept Recommendation as drafted (Preferred Option) Implications: Council will be able to support the recycling efforts of commercial operators without relying on subsidisation from the overall waste disposal activities. Community feedback on the proposal will be provided through the public exhibition process. Council can then assess this feedback before further consideration.

2. Not support the introduction of fee for commercial quantities of low value recyclable materials. Implications: Council will need to reject the loads or subsidise the commercial operators.

Background Council actively promotes and encourages the recycling and reuse of materials to minimise the volume of waste that is landfilled. Council manages 2 primary streams of recyclable materials:  Kerbside collected recyclables that are placed in the yellow lidded kerbside recycling bin.

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Materials accepted in the kerbside bin are limited to paper and cardboard, plastic containers, glass containers, steel or aluminium cans and liquid paper board. Many other “recyclable materials” cannot be accepted in this bin due to potential for cross contamination or potential to obstruct the sorting machinery at the Materials Recovery Facility (MRF).  Drop off recyclables at the Recycling and Waste Transfer Facilities. These facilities receive all the materials that can go into the yellow lidded recycling bin, as well as scrap metals, white goods, electronic waste, tyres, mattresses, green waste, brick and concrete, polystyrene, batteries (car and household), gas cylinders, fluorescent globes, smoke detectors, paints, oils and reusable / resalable goods. As markets or processes for further materials are identified they will be added to this list. The cost of collecting the yellow bin is included in the Domestic Waste Charge and no charge applies to domestic loads of materials that are dropped at transfer stations, except for mattresses, tyres and green waste. Council is increasing being requested to accept commercial loads of recyclable materials, particularly plastics. This is likely due to the value for these materials being very low and it is no longer financially viable to transport these products directly to a recycler (who are based in major cities). With the downward slide in the value of recyclables expected to continue, it is anticipated more companies will be looking to find alternative ways to dispose of recyclable materials. Council can play a role by collecting larger volumes of low value recyclables to gain efficiencies in the transport of bulk volumes. Although, costs will still apply. SA18.35

As a case in point, a local commercial business has stockpiled a large number of bales of soft plastic and has raised concerns that Council is unable to accept these bales at no charge. There is currently a significant cost to accept, process and transport recyclable materials to recyclers, often with a further gate charge when it reaches the recycler. While the cost of recycling domestic recyclable materials collected at the kerbside is incorporated in the annual domestic waste charge, the cost of recycling at the recycling and waste transfer facilities is not. It is considered reasonable to apply a charge to recover the cost, but the only currently available charge is the mixed waste charge of $346/t.

Current Global Recycling Market Global prices for recyclable materials (recyclate) are continually subject to very large fluctuations. China has for a long time been a destination for recyclate, but their announcement last year of their “Green Sword” crackdown on importing scrap plastics and other recyclables, is impacting the recycling market in Australia and globally. A Canadian based paper in October 2017 provides a sound summary of the global market (http://www.waste360.com/commodities-pricing/eight-thoughts-current-recycling-market- upheaval) and key points are summarised below:  Recyclables are commodities. Their market value fluctuates due to supply and demand, and in fact, their value fluctuates more than that of any other commodity. Recyclables are at the tail end of raw material demand because their quantity and quality are not as predictable as that of their virgin raw material competitors.  Demand and supply. Recyclate is bought not sold. As a result there has to be a demand for the materials, but recyclables collected at the kerbside provide an unending and continual supply that is unconstrained by market demand. With no

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demand, the choices are to pay high prices to get it into the market chain, to value add or improve quality (at a high cost) or to dump it.  It’s happened before. Internationally there have been regular (some massive) collapses in recyclable markets (late 80’s, early 90’s, late 90’s, two in the 2000’s, a dip in 2013 and the current, possibly largest collapse). However, the markets have historically bounced back after some time.  New markets will arise. New markets, local, national and international, will come about, but these take time to establish.  Quality and specifications. The receivers of recyclable materials are looking at higher quality and are able to be fussy in the current market. Small amounts of contamination (plastic in a cardboard load, steel cap on a glass bottle, etc.) results in a whole load being rejected. In summary, continuing to operate in the current recycling market is costly. The impact is being felt by Councils throughout NSW (refer to attached copy of the response from EPA to the Country Mayors Association who raised concerns about the future of recycling programs). Discussion While Council is reluctant to reduce the efforts of our business community and residents to recycle, it is necessary to cover the cost of recycling and ensure that user pays. A significant subsidy to recycle is unsustainable. Council, therefore, needs to consider these market demand risks in working out the viability for recycling different and specific materials.

SA18.35 For the past 18 months Council have been actively seeking recyclers to take a variety of recyclable materials from the recycling and waste transfer facilities. In reality upstream recyclers are prepared to pay the best price for very clean, uncontaminated and baled material. However, all recyclers retain their right to reject a whole load if there is any form of contamination within the load, or alternatively offer a much lower price or charge a gate fee. Domestic kerbside recycling is different in that Council is locked into a contract with Shoalhaven Recycling which will be honoured until the end of the contract period. So the fluctuations in commodity prices has no impact on the householder. However, there are many commercial operators who bring large amounts of low value recyclable materials to Councils Recycling and Waste Transfer facilities. A gate fee on these recyclables will assist to support and encourage the efforts of the business community. In order to encourage householders to continue recycling, it is recommended that domestic loads of recycling continue to be accepted at no charge. Staff are investigating more sophisticated levels of processing to achieve higher quality recyclate. The required plant and equipment for implementing further recycling comes at a significant cost. Council have applied to the EPA for specific recycling grant funding to reduce the capital cost of processing equipment. Council is very hopeful that a grant for a screen to improve the quality of the shredded green waste product will be successful. Council have also applied for grant funding for a second polystyrene processing machine to be located at Ulladulla, and a baler (for plastics and cardboard) to be located at . Proposal Introduce, with the 2018/19 financial year fees and charges, a gate charge for commercial quantities of specific recyclable materials that have traditionally been a very low cost, or not a cost, to Council. The recyclable materials to include soft plastics, hard plastics, polystyrene and glass. The gate charge will be related to the costs (acceptance, cleaning, baling or shredding, transport and recyclers gate fee) and is anticipated to be between $50/t and $200/t. The current gate fee for waste is $346/t and the greenwaste charge is $98/t.

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Commercial quantities are to be defined as recyclables sourced from a commercial enterprise and any amount of one type of recyclable material with a volume greater than 1m3. The gate price for 1m3 of compacted plastic at $100/t would be approximately $15.60.

Financial Implications The introduction of a user pays fee for large/commercial volumes of recyclables will cover the cost of recycling without having to subsidise it through other avenues.

SA18.35

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Attachment 1

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SA18.35

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Attachment 1

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SA18.35

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SA18.36 Request Refund of Fees Associated with William Campbell College - 16 Gannet Rd, Nowra Hill

HPERM Ref: D18/34772

Group: Planning Environment & Development Group Section: Development Services

Purpose / Summary This report is for Council to consider a request made by the William Campbell Foundation for the reimbursement of the plan checking and construction inspection fees associated with Stage 1 of William Campbell College at 16 Gannet Rd, Nowra Hill approved pursuant to Development Consent DA12/1419.

Recommendation (Item to be determined under delegated authority) That in accordance with the Committee’s delegated authority from Council, the Committee reimburse the plan checking and construction inspection fees ($808.60) for William Campbell College as identified in the report in accordance with Waiving of Development Application SA18.36 Fees and Other Fees For Charitable Organisations and Community Groups Policy (POL17/10).

Options 1. Council adopt the recommendation. Implications: Council will be required to reimburse the plan checking and construction inspection fees ($808.60) paid by the applicant in relation to DA12/1419.

2. Council support the applicant’s request in part and grant a partial reimbursement, as determined by Council, of plan checking and construction inspection fees paid by the applicant in relation to DA12/1419. Implications: Council will reimburse a portion of the plan checking and construction inspection fees paid.

3. Council not reimburse the plan checking and construction inspection fees ($808.60) paid by the applicant in relation to DA12/1419. Implications: All plan checking and construction inspection fees paid by the applicant in relation to DA12/1419 will be retained and will not be reimbursed to the applicant.

Background  Council approved development Application DA12/1419 for Stage 1 of a permanent school/education facility on 12 November 2012. The consent (DA12/1419) being associated with an approved masterplan (DA07/1466) for the future overall development of the site for William Campbell College.

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 On 12 June 2012, Council resolved to support a request for the partial refund ($2,500) of the development application fees (total $3,451.90) associated with DA12/1419.  On 22 August 2013, an application (DS13/1305) was lodged with Council to modify DA12/1419, no fees were charged as the applicant met the criteria for the waiver of fees under POL17/10.  On 8 January 2018, William Campbell Foundation wrote to Council requesting a refund of the following plan checking and construction inspection fees paid on 6 June 2017. The refund being requested on the grounds that William Campbell Foundation is a registered charity.

Plan Checking fees: Road – Rural within public or crown road reserve $139.35 Road – Rural within public or crown road reserve – per metre $253.75 Drainage (from road to discharge) $117.50

Construction Inspection fee: 50% of fee calculated for Construction Certificate $298.00

TOTAL: $808.60

Community Engagement SA18.36 Nil.

Policy Implications Council’s Policy for the Waiving of Development Application Fees and Other Fees for Charitable Organisations and Community Groups, sets out the parameters for reimbursement of fees. Firstly, the exemption criteria must be met which includes being a registered charity and evidence as a charity being provided to Council and secondly a written request must be made to Council for the reimbursement of the fees. William Campbell Foundation is a registered charity and have provided satisfactory evidence to Council. William Campbell College is the trading name of the William Campbell Foundation. Clause 2.4 of POL17/10 states as follows: If a reimbursement of the fees is sought, a written request outlining the grounds for reimbursement must be submitted. The matter will then be referred to Council’s Strategy & Assets Committee for consideration by Council. Any donations by way of whole or partial reimbursement determined by the Council will be paid out of the “unallocated donations” budget or a source identified in Council’s resolution.’’ The request for reimbursement of fees is considered to be in accordance with clause 2.4 of POL17/10 and is recommended for support.

Financial Implications

At the time of preparing this report, the ‘unallocated donations’ budget had available funds of $1,346.86. The request for reimbursement is $808.60 leaving $538.26 in the budget for future donations.

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Conclusion Council’s adopted policy allows for the refund of fees associated with either a DA or CC. So, whilst these fees are not strictly application fees they are associated therewith. The refund is considered acceptable and is cable of being funded via the ‘unallocated donations’.

SA18.36

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SA18.37 Easements for Access at Coolangatta - Shoalhaven Heads Water Reservoir

HPERM Ref: D18/26278

Group: Shoalhaven Water Group Section: Water Asset Planning & Development

Attachments: 1. DP451468 ⇩ 2. Extract of DP1076887 ⇩

Purpose / Summary This report is submitted to seek Council approval to:

 Extinguish an Easement for Access 6 wide over Lots 1 & 2 DP223278 and Lot 1 DP525517 Bolong Road Coolangatta.  Accept an alternative Easement for Access 6 wide over Lot 722 DP1076887 Edward Wollstonecraft Lane Coolangatta in favour of Council. The above properties are owned by (the late) C J Bishop.

SA18.37 Recommendation That: 1. Council resolve to: a. Extinguish an existing Easement for Access 6 wide over Lots 1 & 2 DP223278 and Lot 1 DP525517 Bolong Road Coolangatta. The easement is shown by pink colour on copy of DP451468, attached. b. Accept an alternative Easement for Access 6 wide over Lot 722 DP1076887 Edward Wollstonecraft Lane Coolangatta in favour of Council. The proposed new easement is shown by hatching and blue colour on extract of DP1076887, attached. 2. Council to pay its own costs associated with the transactions from Shoalhaven Water’s Water fund. The transactions are to be at $nil consideration. 3. The Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed.

Options 1. Resolve as recommended. The transactions are required to formalise existing access arrangements to the Shoalhaven Heads Water Reservoir. 2. Not resolve as recommended and provide further directions to staff.

Background The existing legal access to the Shoalhaven Heads Water Reservoir is via two Easements for Access extending from Bolong Road. The route is through the car park of the Coolangatta Estate winery then along a rural road to the reservoir and is shown by pink and yellow colour on attached extract of DP1076887.

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However, vehicular access is not possible from Bolong Road due to road improvements and relocated access to the Coolangatta Estate from a side road, Alexander Berry Drive. Council now gains access to the reservoir off Edward Wollstonecraft Lane, via a rural road within Lot 722 shown by blue colour on DP1076887, which links to the existing road/easement shown by yellow colour on that plan.

A representative for the landowners (the Bishop family) have requested that the obsolete easement off Bolong Road be extinguished and replaced by a new access easement off Edward Wollstonecraft Lane to formalise the existing arrangements. Shoalhaven Water Operations have advised the proposal is acceptable.

The easement transactions will be effected by an 88B instrument associated with a subdivision plan to be prepared by Surveyors Allen Price & Scarratts on behalf of the landowners. No monetary consideration is to be applied to either transaction. The easement terms for the new easement are proposed to be the same as for the easement to be extinguished.

Financial Implications Council’s own costs are to be funded from Shoalhaven Water’s Water fund. No compensation is to be paid on the transactions. Risk Implications The transactions are necessary to secure Shoalhaven Water’s access for the operation and maintenance of essential public infrastructure. SA18.37

The proposed action is administrative and has no environmental impact.

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Attachment 1

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SA18.37

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Attachment 2

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SA18.37

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SA18.38 SF10572 - Connection to Town Sewerage System - Lot 8 DP776949 and Lot 6 DP703243 Larmer Avenue Worrowing Heights

HPERM Ref: D18/31255

Group: Shoalhaven Water Group Section: Water Asset Planning & Development

Purpose / Summary Council is in receipt of an application for a subdivision (boundary adjustment) for two properties (Lot 8 DP 776949 and Lot 6 DP 703243, at Larmer Avenue, Worrowing Heights). The applicant is seeking approval to connect to Council’s sewerage system. The lots are zoned rural (RU2) and Environmental Conservation (E2) and as such must be considered by the Council following assessment under its Rural Wastewater Connection Policy (POL16/95).

Recommendation (Item to be determined under delegated authority)

That Council approve the connection of the proposed lots under SF10572, to its sewerage SA18.38 system, by pressure sewer, subject to the applicant complying with all conditions specified on a Shoalhaven Water Development Application Notice.

Options 1. Adopt the recommendation. Implications: This is recommended as there is sufficient capacity in the St Georges Basin Sewerage Scheme and the proposal is considered a minor development.

2. Council could choose not to permit the property to connect to the town sewerage system Implications: Following extensive discussions with Councils Subdivision Unit and reports by the applicant’s consultant/s, onsite disposal is not recommended due to insufficient suitable land area for an on-site disposal system and adjacent Endangered Ecological Community (EEC) land.

Background Council received an application (SF10572) for a two lot boundary adjustment/subdivision for Lot 8 DP 776949 and Lot 6 DP 703243, at Larmer Avenue, Worrowing Heights. The original application proposed onsite disposal for sewage services.

Subsequent investigation and report/s detail that there is inadequate suitable land area for on-site sewage disposal.

The properties are zoned part RU2 (Rural Landscape) and Part E2 (Environmental Conservation). As such an assessment of the application is required in accordance with Council’s Rural Wastewater Connection Policy (POL16/95).

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According to Council’s GIS information, both lots are currently vacant and not levied the wastewater availability charge.

Pressure Sewer Servicing Shoalhaven Water has considered pressure sewer connection service to each new lot. Pressure sewer option will provide connection to the St Georges Basin sewerage system. Detailed assessment can be found under “Policy Implications”. The design and construction work would include:

 the on-site pressure sewer unit, boundary kit and control panel (these works are carried out by Shoalhaven Water staff), and  approximately 500 metres of DN50mm diameter pipe (from the 300mm uPVC/12 Sewer Rising Main located along Larmer Ave, extending along Larmer Avenue in a northerly direction to The Wool Road and then along The Wool Road in an easterly direction terminating near the proposed driveway entrance, and  interconnection works to the 300mm uPVC/12 Sewer Rising Main.

In addition the developer will need to obtain written approval for works within the road reserves of Larmer Ave and The Wool Road from Council.

SA18.38

General Arrangement Plan of Pressure Sewer

Community Engagement No community engagement is required.

Policy Implications Assessment under the Rural Wastewater Connection Policy (POL16/95):

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Council’s policy provides for rural zoned properties to connect to the town sewerage system subject to compliance with Section 3.2 Criteria For Determination of an Application for a Rural Property to Connect to Council’s Sewerage System, which states: “Connection to Council’s sewerage system will only be made available to rural properties upon written application in the following circumstances:  Where capacity exists in the existing system, and  Where the current levels of service can be provided, and  Where the property is paying the wastewater availability charge. Properties not paying the wastewater availability charge will only be considered for connection to Council’s sewerage system if it is not possible to manage wastewater by on site treatment. Approval in this situation is subject to Council resolution.”

Assessment in accordance with each of these criterion is outlined below: 1. Where capacity exists in the existing system The proposed development is for a 2 lot boundary adjustment/subdivision which will ultimately result in further development applications for dwellings to be constructed. The sewerage system does have capacity to take on this proposed development and future dwellings (subject to Council approval) now and into the future.

2. Where the current levels of service can be provided Current services are normally provided by gravity means. However, a gravity connection is not possible as the subject property is located too far from the existing gravity sewer system. In this instance the proposed lots can be serviced by pressure sewer system in

accordance with Shoalhaven Water’s requirements. SA18.38

3. Where the property is paying the wastewater availability charge The properties do not pay the wastewater availability charge.

Properties not paying the wastewater availability charge will only be considered for connection to Council’s sewerage system if it is not possible to manage wastewater by on site treatment. Approval in this situation is subject to Council resolution. As part of the assessment of SF10572 and following discussions with Council’s Subdivision Unit and Environmental Services Unit the applicant is not able to dispose of effluent by on-site means as a result of lands designated as Endangered Ecologically Community and Flood Planning issues. As such the available areas for on-site disposal for each proposed lot are reduced and inadequate.

Financial Implications There is no negative financial implication to council. If approval is granted Council would benefit by way of the annual sewer availability charge ($830.00 for 2017/18) per lot.

The development will be levied the Section 64 (Sewerage) Charge by way of a condition under the Shoalhaven Water Development Application Notice for SF10572. The development would be levied based on a minimum of one equivalent tenement loading per lot. After applying the Water and Sewerage Headworks Charges (Section 64 Contributions) – Assistance for Developments policy the amount payable is $2,084.75 (2017/18) per lot.

The developer would also be required to pay the full cost for a simplex pressure sewer unit. The minimum cost per Council’s Fees and Charges is $9,622.00 (2017/18) per lot.

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In addition the developer will also be required to design and construct a pressure sewer main from The Wool Road to the 300mm uPVC/12 sewage rising main (located along Larmer Avenue) including interconnection work.

A request for a quotation from Shoalhaven Water for the proposed works (at the applicant’s full cost) may be possible should there be capacity in the current Shoalhaven Water Operations Section program, or the applicant may engage the services of a suitably qualified contractor to carry out the proposed works. However, the interconnection works to the 300mm uPVC/12 sewage rising main may need to be undertaken by Shoalhaven Water at the applicant’s expense.

Risk Implications Shoalhaven Water’s Operation Section must modify procedures to ensure that the pressure sewer main is not in operation during planned or unplanned maintenance to the 300mm uPVC/12 sewage rising main, including notification to the property owners.

SA18.38

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LOCAL GOVERNMENT AMENDMENT (GOVERNANCE & PLANNING) ACT 2016

Chapter 3, Section 8A Guiding principles for councils (1) Exercise of functions generally The following general principles apply to the exercise of functions by councils: (a) Councils should provide strong and effective representation, leadership, planning and decision-making. (b) Councils should carry out functions in a way that provides the best possible value for residents and ratepayers. (c) Councils should plan strategically, using the integrated planning and reporting framework, for the provision of effective and efficient services and regulation to meet the diverse needs of the local community. (d) Councils should apply the integrated planning and reporting framework in carrying out their functions so as to achieve desired outcomes and continuous improvements. (e) Councils should work co-operatively with other councils and the State government to achieve desired outcomes for the local community. (f) Councils should manage lands and other assets so that current and future local community needs can be met in an affordable way. (g) Councils should work with others to secure appropriate services for local community needs. (h) Councils should act fairly, ethically and without bias in the interests of the local community. (i) Councils should be responsible employers and provide a consultative and supportive working environment for staff. (2) Decision-making The following principles apply to decision-making by councils (subject to any other applicable law): (a) Councils should recognise diverse local community needs and interests. (b) Councils should consider social justice principles. (c) Councils should consider the long term and cumulative effects of actions on future generations. (d) Councils should consider the principles of ecologically sustainable development. (e) Council decision-making should be transparent and decision-makers are to be accountable for decisions and omissions. (3) Community participation Councils should actively engage with their local communities, through the use of the integrated planning and reporting framework and other measures.

Chapter 3, Section 8B Principles of sound financial management The following principles of sound financial management apply to councils: (a) Council spending should be responsible and sustainable, aligning general revenue and expenses. (b) Councils should invest in responsible and sustainable infrastructure for the benefit of the local community. (c) Councils should have effective financial and asset management, including sound policies and processes for the following: (i) performance management and reporting, (ii) asset maintenance and enhancement, (iii) funding decisions, (iv) risk management practices. (d) Councils should have regard to achieving intergenerational equity, including ensuring the following: (i) policy decisions are made after considering their financial effects on future generations, (ii) the current generation funds the cost of its services

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Chapter 3, 8C Integrated planning and reporting principles that apply to councils The following principles for strategic planning apply to the development of the integrated planning and reporting framework by councils: (a) Councils should identify and prioritise key local community needs and aspirations and consider regional priorities. (b) Councils should identify strategic goals to meet those needs and aspirations. (c) Councils should develop activities, and prioritise actions, to work towards the strategic goals. (d) Councils should ensure that the strategic goals and activities to work towards them may be achieved within council resources. (e) Councils should regularly review and evaluate progress towards achieving strategic goals. (f) Councils should maintain an integrated approach to planning, delivering, monitoring and reporting on strategic goals. (g) Councils should collaborate with others to maximise achievement of strategic goals. (h) Councils should manage risks to the local community or area or to the council effectively and proactively. (i) Councils should make appropriate evidence-based adaptations to meet changing needs and circumstances.