Council Meeting

Notice of Extraordinary Meeting

 

Thursday, 22 December 2016

 

Mr John Rayner

 

An Extraordinary Council meeting will be held at 5.00pm in Council Chambers, Hurstville Civic Centre, MacMahon Street, Hurstville, on Thursday, 22 December 2016 for consideration of the business available on Council's website at http://www.georgesriver.nsw.gov.au/Council/Council-Meetings

 

 

 

Gail Connolly

General Manager

 

 

 

BUSINESS

1. Apologies

2. Disclosures of Interest

3. Minutes of previous meetings

4. Environment and Planning

5. Finance and Governance

 

 

 

 


Extraordinary Meeting

Summary of Items

Thursday, 22 December 2016

 

 

MINUTES:  COUNCIL MEETING - 5 DECEMBER 2016

 

MINUTES:  EXTRAORDINARY COUNCIL MEETING – 13 DECEMBER 2016

 

Environment and Planning

CCL135-16       Extension of Waste Collection Contract

(Report by Manager Environmental Services, Fiona Stock).................................. 2

Finance and Governance

CCL136-16       Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

(Report by Chief Financial Officer, Tino Caltabiano).............................................. 5

CCL137-16       Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

(Report by Chief Financial Officer, John Maunder).............................................. 55

 


Georges River Council – Extraordinary Meeting -  Thursday, 22 December 2016                                                           Page 1

 

AGENDA

1.      Apologies 

2.      Disclosure of Interest

3.      Adoption of previous Council meeting Minutes

 


Georges River Council – Extraordinary Meeting -  Thursday, 22 December 2016                                                           Page 3

Environment and Planning

 

Item:                   CCL135-16        Extension of Waste Collection Contract 

Author:              Manager Environmental Services, Fiona Stock

Directorate:      Environment and Planning

Matter Type:     Environment and Planning

 

Recommendation

(a)     That Council approve the extension of the current waste collection contract  with Suez Environmental Service for 5 years from February 2018 (until 2 February 2023), as per Australian Consumer Competition Commission approval dated 14 September 2016 Authorisation Number (A91530).

(b)     That the General Manager be given delegated authority to sign the extension of the waste collection contract with Suez Environmental Service.

 

Executive Summary

1.      Georges River Council has been part of the St George Waste Collection contract since Kogarah and Hurstville’s collection contracts commenced in November 2009 and June 2010 respectively.  The waste collection service has been a landmark contract in the industry and has also provided financial, environmental and service efficiencies to the communities of Georges River Council and, Bayside west, (previously Hurstville City Council, Kogarah City Council and Rockdale City Council, respectively, also sometime phrased as the St George Region of Councils).

 

2.      The Georges River and Bayside (Former Rockdale) residents each year have benefitted from financial savings of approximately 33% lower than industry benchmark prices, this equates to approximately $2.6 million per annum.   The current contract has an option to extend for an additional 5 years, and Council has sought the Australian Competition and Consumer Commission (ACCC) approval prior to executing the Contract extension provision. The ACCC granted authorisation on 14 September 2016, to Georges River Council and Rockdale City Council (Proclamation had not been announced for Rockdale) to continue to jointly contract for the provision of waste and recycling collection services in their respective local government areas until 2 February 2023.

3.      This report recommends that Council approve the extension of the current waste collection contract with Suez Environmental Service for 5 years from February 2018  as per ACCC approval  - Authorisation Number (A91530).

 

Background

4.      The former Hurstville and Kogarah City Councils’ have been part of the St George Waste Collection contract since it was resolved at an Extraordinary Council meeting held on 31 July 2007 to accept the tender of WSN Environmental Services (now Suez Environmental Services).  Kogarah and Hurstville’s collection contracts commenced in November 2009 and June 2010 respectively with a simultaneous expiration date with Rockdale City Council of 8 February 2018.  The Joint waste collection service contract was the first of its kind in Australia. It has provided financial, environmental and service efficiencies to all three Councils. 

 

5.      Each year the residents have benefitted from financial savings of approximately 33% lower than industry benchmark prices.  This benefit was provided directly to each resident through a $60 rebate provided in the first year of the contract.  Subsequent years have seen the Domestic Waste Management charge lower than other Councils and it remained the same for the 14/15 financial year and the 15/16 financial year.   This saving has equated to approximately $2.6 million per annum lower than the current industry standard for Waste Collection costs.

 

6.      Councils’ current service efficiencies are seen through two service collection days per week to reduce traffic congestion and the sharing of vehicle resources across the three Councils.  Other savings have been seen with education programs shared across Councils.  Several joint education programs have also resulted since the commencement of the contracts, including:

·        Joint contamination strategy for the contracts including shared contamination notices.

·        Promotion of the e-waste drop off (hosted by Georges River)

·        Promotion of the household chemical cleanout (hosted by Georges River)

·        Promotion for Clean Up Australia Day

·        Enviroworks and Compost revolution programs.

 

7.      The administration of the contract has seen the introduction of an online service request system and call centre both run by the Contractor.  Since the commencement of the contract, Council reports on the contract performance as a quantitate figure within the Georges River Operational Plan (2.10) which of the approximately 74,000 garbage services provided to residents per week, we are consistently meeting our target of less than 35 missed collections per week. 

 

8.      The current contract has an expiration date of February 2018, with an option to extend for another 5 years.  Extending the current contract now would ensure residents of Georges River benefit from the current collection savings of 33% per annum based on industry collection prices until 2023, whilst maintaining a sustainable level of service.  The table below shows projected Waste and Recycling Collection costs with and without the extension, (assumptions 2% increase in services per annum and CPI increase of 2.5% per annum).

 

Date

Extension approval projected Collection Costs ($millions)

Without extension projected Collection Costs ($ millions)

Minimum Savings to all three Councils per annum

2016/2017

8.05

10.71

2.66

2017/2018

8.41

11.19

2.78

2018/2019

8.79

11.69

2.90

2019/2020

9.19

12.22

3.03

2020/2021

9.60

12.77

3.17

2021/2022

10.03

13.34

3.31

 

9.      The three Councils have written to the ACCC (Australian Consumer Competition Commission) requesting their approval to invoke part (B) of the contract terms, extending the Contract for a further “5 year maximum extension period” as per a condition of consent within the original ACCC approval. The Councils received the original approval on 21 March 2007 (A91019) since that date the ACCC have approved 12 applications for Joint tendering Councils throughout Australia.  This includes two joint tenders for Waste Collection with 15 year terms and three joint tenders for Waste Processing with 15 year terms.

 

10.    On 1 June 2016 The Councils received a draft determination (A91530) to grant authorisation for the Councils to extend the collection contract until 2 February 2023.  This draft determination also included information that the ACCC would place the application made by the Councils on public exhibition until 24 June 2016.   The ACCC received two (2) submissions, one from Cleanaway and another from the Waste Contractors and Recyclers Association.  In summary, the submission from Cleanaway did not support the extension and the Waste Contractors Recyclers Association in principle approved the extension.  

 

11.    In contrast, Council would be required to produce and invite tenders within the next two (2) months the cost of preparing tender documents, inclusive of initial investigations, writing the documents, administering the tendering process and evaluating tenders was estimated to be as high as $200,000.  The Georges River Community would benefit from having surety of waste collections costs into the future.

 

12.    The Councils have been in communication with the ACCC for over seven months. The Councils have been able to confirm and demonstrate to the ACCC the benefits to rate payers and the broader community (such as environmental, financial and service delivery) are significant. The ACCC on 14 September 2016, Authorisation Number (A91530) granted approval to the Councils to extend the contract for a further 5 year period starting February 2018 and ending on 2 February 2023.

 

 

SUMMARY

13.         The contract extension option allows councils to maximise the length and value of a contract that has proven to be successful and beneficial, as is the case with the current collection contract.  Also by amortising the cost of this tender process over 15 years, instead of 10 years, will secure for all three communities financial saving of 33% below industry benchmark for waste collection costs and ensure the current level of service is maintained.

 

Financial Implications

14.    Within budget allocation.

 

 

 

   


Georges River Council – Extraordinary Meeting -  Thursday, 22 December 2016                                                           Page 6

Finance and Governance

 

Item:                   CCL136-16        Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016   

Author:              Chief Financial Officer, Tino Caltabiano

Directorate:      Office of the Chief Operating Officer

Matter Type:     Finance and Governance

 

Recommendation

(a)     That in accordance with Section 419 (1) of the Local Government Act 1993, the audited Financial Statements and the Auditors’ Report for 2015/2016 are hereby received and noted.

 

(b)     That a report to Council be presented to a subsequent Council Meeting detailing any submissions received in respect of Council’s audited Financial Statements, if applicable.

 

Executive Summary

1.      To receive Council’s audited 2015/2016 Financial Statements in accordance with Section 419 (1) of the Local Government Act 1993.

 

Background

2.      At the Council meeting on 13 December 2016, Council referred its former Hurstville City Council 2015/2016 General Purpose Financial Statements for the year ended 12 May 2016 to Council’s External Auditors for audit. The Auditors' Report was subsequently received by Council and has been attached to the General Purpose Financial Statements in accordance with Section 417(1) of the Act.

 

3.      The audited Financial Statements and a copy of the Auditors' Report have been available for public inspection at Council’s Civic Centre and by viewing on Council’s website since 14 December 2016 and are now presented to Council in accordance with Section 419(1) of the Act.

 

4.      The Council is required to submit the Auditors' Report to a public meeting during the public exhibition period.  Submissions on the Auditors' Report or the audited Financial Statements close on 20 January 2017.  At the time of writing this report no submissions had been received.

 

5.      The table below shows a summary of the Annual Financial Statements for 2015/16 compared to the previous year.  The information was published in The Leader on 14 December 2016.

 

 

 

 

 

 

 

 

 

 

Summary of 2015/2016 Financial Statements

Current

Year

Previous

Year

 

$'000

$'000

Income Statement

 

   Total Income from Continuing Operations

84,467

83,948

   Total Expenses from Continuing Operations

61,261

70,223

   Operating Result from Continuing Operations

23,206

13,725

Net Operating Result for the Year

23,206

13,725

Net Operating Result before Grants and Contributions provided for Capital Purposes

12,500

1,014

 

 

Statement of Financial Position

 

    Total Current Assets

58,193

43,092

    Total Current Liabilities

(20,998)

(19,688)

    Total Non-Current Assets

719,481

687,880

    Total Non-Current Liabilities

(2,924)

(5,677)

    Total Equity

753,752

705,607

 

 

Other Financial Information

 

Unrestricted Current Ratio

3.37:1

3.06:1

Operating Performance Ratio (%)

10.6%

-0.8%

Debt Service Cover Ratio (Months)

4.57

7.40

Rates & Annual Charges Outstanding Ratio (%)

19.9%

2.8%

Infrastructure renewals ratio (%)

130.8%

74.5%

Own source operating revenue ratio (%)

78.9%

76.6%

Cash expense cover ratio (months)

9.40 mths

9.18 mths

 

6.      The audited Financial Statements, which include the Auditors Report are attached.

 

 

Financial Implications

7.      No budget impact for this report.

 

File Reference

15/1423

 

 

ATTACHMENTS

Attachment View1

2015/16 Financial Statements on Exhibition

 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 8

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 35

 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 38

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 52

 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 55

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 69

 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 72

 


 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 77

 


 


 


 


 


 


 


 


 


 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 90

 


 




 


 


 


 


 


 


 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 104

 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL136-16          Audited Financial Statements for Former Hurstville City Council for the Year Ended 12 May 2016 

[Appendix 1]         2015/16 Financial Statements on Exhibition

 

 

Page 106

 


 


Georges River Council – Extraordinary Meeting -  Thursday, 22 December 2016                                                           Page 108

Item:                   CCL137-16        Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.  

Author:              Chief Financial Officer, John Maunder

Directorate:      Office of the Chief Operating Officer

Matter Type:     Finance and Governance

 

 

Recommendation

(a)     That any written submissions with respect to Council’s General Purpose Financial Statements or Auditor’s Reports for the reporting period 1 July 2015 to 12 May 2016 be referred to Council’s auditor in accordance with section 420 of the Local Government Act (NSW) 1993.

(b)     That the appropriate action be taken with respect to any submissions received, including the giving of notice to the Director-General of the Office of Local Government of any matter that would require amendment to Council's General Purpose Financial Statements for the reporting period 1 July 2015 to 12 May 2016.

 

Executive Summary

1.      Section 419 of the Local Government Act (NSW) 1993 requires that the audited general purpose financial statements together with the auditor’s reports be publicly presented to a meeting of Council.

 

Background

2.      At its extraordinary meeting of 13 December 2016 Council resolved (Min No. CCL130-2016) in part:

“That the audited financial reports be presented at a Meeting of Council to be held on 22 December 2016 in accordance with Section 418 of the Local Government Act (NSW) 1993.”

“That arrangements be made to place copies of the audited financial reports on public exhibition and the necessary notice in required form be published on Council’s website and in the St George and Sutherland Shire Leader.”

 

3.      A public notice was placed in the St George & Sutherland Shire Leader on Wednesday, 14 December 2016.  The public notice contained a summary of Council’s Financial Reports. Notice was also published on Council’s website.

 

4.      In accordance with section 420 of the Local Government Act (NSW) 1993, submissions in relation to the audited financial and auditor’s reports must be in writing and lodged with Council within seven days of this meeting.  At the time of the preparation of this report, no submissions had been received.

 

5.      Any written submissions received by Council will be forwarded to Council’s Auditor in accordance with section 420 of the Local Government Act (NSW) 1993.

 

6.      Council’s Auditor will give a brief presentation on the General Purpose Financial Statements and Auditor’s Reports for the reporting period 1 July 2015 to 12 May 2016 during the meeting.

 

Financial Implications

7.      No budget impact for this report.

 

File Reference

< Enter Records Reference Number Here >

 

 

 

ATTACHMENTS

Attachment View1

Public presentation of former Kogarah City Council’s Financial Statements

Attachment View2

Financial Statements former Kogarah City Council for the period ended 12 May 2016

 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL137-16          Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

[Appendix 1]         Public presentation of former Kogarah City Council’s Financial Statements

 

 

Page 109

 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL137-16          Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

[Appendix 2]         Financial Statements former Kogarah City Council for the period ended 12 May 2016

 

 

Page 111

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL137-16          Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

[Appendix 2]         Financial Statements former Kogarah City Council for the period ended 12 May 2016

 

 

Page 139

 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL137-16          Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

[Appendix 2]         Financial Statements former Kogarah City Council for the period ended 12 May 2016

 

 

Page 142

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL137-16          Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

[Appendix 2]         Financial Statements former Kogarah City Council for the period ended 12 May 2016

 

 

Page 158

 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL137-16          Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

[Appendix 2]         Financial Statements former Kogarah City Council for the period ended 12 May 2016

 

 

Page 161

 


 


 


 


 


 


 


 



 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL137-16          Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

[Appendix 2]         Financial Statements former Kogarah City Council for the period ended 12 May 2016

 

 

Page 173

 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL137-16          Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

[Appendix 2]         Financial Statements former Kogarah City Council for the period ended 12 May 2016

 

 

Page 178

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL137-16          Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

[Appendix 2]         Financial Statements former Kogarah City Council for the period ended 12 May 2016

 

 

Page 206

 


 


Georges River Council - Extraordinary Meeting - Thursday, 22 December 2016

CCL137-16          Public presentation of the former Kogarah City Council's Financial Statements and Auditor's Reports for the period ending 12 May 2016.

[Appendix 2]         Financial Statements former Kogarah City Council for the period ended 12 May 2016

 

 

Page 209

 


 

 


Georges River Council – Extraordinary Meeting -  Thursday, 22 December 2016                                                           Page 210