Finance and Governance Committee

Notice of Meeting

Tuesday, 12 June 2018

 

 

 

A meeting of the Finance and Governance Committee will be held at 6.00pm on Tuesday 12 June 2018 in the River Room, Level 1, Georges River Civic Centre, corner Dora and MacMahon Streets, Hurstville, for the consideration of the business available on Council’s website at  http://www.georgesriver.nsw.gov.au/Council/Council-Meetings

 

 

 

 

BUSINESS

1.      Apologies

2.      Disclosures of Interest

3.      Minutes of previous meetings

4.      Committee Reports

 


Finance and Governance Standing Committee Meeting

Summary of Items

Tuesday, 12 June 2018

 

Previous Minutes

MINUTES: Finance and Governance - 14 May 2018

Committee Reports

FIN048-18         Draft 2018/19 Budget - Consideration of Waratah Private Hospital Car Parking Rates

(Report by Strategic Property Specialist).................................................................... 2

FIN049-18         Container Deposit Scheme - Status of Reverse Vending Machines within Georges River Council

(Report by Head of Strategic Property)..................................................................... 17

FIN050-18         Open Space and Parklands Program Funding - Oatley Park Nature Based Inclusive Adventure Playground (NSW Department of Planning and Environment Grant)

(Report by Manager Project Delivery)....................................................................... 23

FIN051-18         Draft 2018/19 Budget - Consideration for the Future Use of the Kogarah War Memorial Swimming Pool

(Report by Executive Manager Premium Facilities and Properties)................... 26

FIN052-18         Advice on Costs and Status of Council's Court Proceedings - May 2018

(Report by General Counsel)..................................................................................... 38

FIN053-18         Audit, Risk and Improvement Committee Minutes from 30 October, 2017

(Report by Internal Auditor)........................................................................................ 51

FIN054-18         Stronger Communities Funding Update

(Report by Manager Community & Cultural Development).................................. 59

FIN055-18         Investment Report as at 30 April 2018

(Report by Coordinator Systems, Revenue and Analysis)................................... 65   

 


Georges River Council – Finance and Governance Standing Committee Meeting -  Tuesday, 12 June 2018          Page 2

4.      Committee Reports

Item:                   FIN048-18          Draft 2018/19 Budget - Consideration of Waratah Private Hospital Car Parking Rates 

Author:              Strategic Property Specialist

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation:

(a)     That Council continue with 1 hour free parking (as per the 2018/19 exhibited Fees and Charges) to offset the operating loss currently incurred at the Waratah Private Hospital Car Park.

(b)     That the General Manager investigate the consolidation of all Council-owned car spaces onto discrete basement levels with a view to being able to install boom gates or other devices which would enable separate management of the Council car parking spaces and report back to Council on options.

 

 

Executive Summary

1.      At present Council is losing approximately $231,000 per annum after operating expenses, for the 150 Council owned spaces located within the Waratah Private Hospital Car Park.

 

2.      Should Council increase the 1 hour free parking to 3 hours free parking, the cost to Council is estimated to be in the order of $400,000 per annum after operating expenses. This figure is inclusive of the compensation that may be payable to the hospital owners’ (consortium) for the decrease in its revenue arising from the increase in free parking.

 

3.      At its meeting of 28 May 2018, Council resolved:

 

(a)     That this report is deferred to the Finance and Governance Standing Committee meeting to be held on Tuesday 12 June for further discussion. 

(b)    That current Councillors from the former Hurstville Council provide further information regarding the timeline and activities relating to the agreement between Council and the hospital owner at the time (being Cortez Enterprises), and that staff amend the report, if applicable, to be presented to the June Standing Committee.

(c)   That Council investigate the possibility of providing registered or bona fide volunteer persons with passes which reduces their cost of entry and stay.

 

4.      Pursuant to part (b) of Council’s resolution above, a review of the file, the Contract for Sale, the Development Consent and advice from HWL Ebsworth Lawyers has confirmed that no free 3 hour time limit applied to the parking spaces and that it was always the intention of the Council to adopt a non-differential pricing policy for the public spaces, with only the first hour of parking to be free. No additional information has been provided by former Hurstville Councillors on this matter.

 

 

Background

5.      Council is the registered proprietor of a 150 space stratum public car park legally described as Lot 1 in DP1157338 and located at 31 Dora Street, Hurstville. The public car parking spaces are located predominantly on levels B3 and B4 within the basement car park, with some spaces being located on levels B2 and B5. In addition to the Council owned parking, the Hospital, as part of the development consent for this property, is required to make an additional 100 car parking spaces available for public and patients/visitor parking.

 

6.      Prior to construction of the hospital, the land was used as an at grade public car park by the former Hurstville City Council. Council sold the site to Cortez Enterprises on a commercial basis in 2008 and there was no requirement as part of the sales agreement for Cortez Enterprises to provide free public or private parking on the site.

 

Council Purchase of Car Parking Spaces

 

7.      Council subsequently purchased car parking spaces back from the owner for the purpose of public parking. A number of ground floor retail suites were also purchased.

 

8.      Annexed to the Contract for Sale of car parking spaces and retail was a Functional Design Brief that identified that a 3 hour time limit was to be applied to the public car parking spaces. No free parking was required to be provided as part of the purchase of the spaces by Council.

 

9.      Furthermore, Clause 55 (b) of the Contract for Sale stated that:

 

 “The vendor and purchaser confirm they will enter into negotiations in good faith with a view to reaching agreement in respect of the purchaser’s management of the car spaces designed as public spaces in the car parking allocation documents by the date which is 19 months from the date of this contract including the purchaser have the opportunity to tender for cleaning all of the Centre Owned car parking areas within the building. Any agreement will take into account the car parking report of Parking Consultants International dated August 2006, which is attached to this contract and any policy as regards paid public parking in respect of the land then adopted by the Council”.

 

This clause was included as the parties had not reached an agreement in the management and operation of the car park and further negotiation, in good faith, between the parties was required.

 

COW060-09 Paid Public Parking within the Medica Centre Building

10.    As stated above Council entered into a purchase contract for 160 car parking spaces within the Medica Centre (Waratah Hospital) building upon completion of the building. Clause 55 of the contract required the owner and Council to negotiate, in good faith, the implementation of paid parking in late 2009.

 

11.    On 16 December, 2009 the former Hurstville City Council via COW060-09 resolved in relation to paid public car parking that only the first hour of parking was to be free.  Minute No.450 (copy annexed as Attachment 1) indicates that the resolution was moved by Councillor C Wong, seconded by Councillor C Hindi.

 

12.    Furthermore Council considered the imposition of a 3 hour maximum time limit for parking within the building, to be enforced by parking officers. However, this option did not proceed as the financial returns to Council from fines were significantly lower than the returns possible under a paid public parking arrangement.

 

13.    On 7 January, 2010 Council wrote to Cortez Enterprises (Medica Centre) advising that Council wished to proceed with paid parking on the basis that the first hour of all 260 public car parking spaces (both Council owned and privately owned spaces) was to be free with commercial rates to apply thereafter.  A copy of this correspondence is attached as Attachment 2.

14.    Furthermore, the development consent for the Hospital did not specify any parking rates or include a requirement that any public or private parking should be provided free of charge for any period of time.  The development consent allows for the entire car park to be operated as a commercial car park, consistent with the original sales agreement. 

 

15.    It should be noted that Council has never actively managed its spaces and has outsourced the management of the public car spaces to a car parking management company since commencement of the car park operation.

 

16.    For the avoidance of doubt, there was no requirement in the contract for sale to Cortez Enterprises or in the subsequent development consent, that Council or the owner had to reinstate any 3 hour free parking within the development.

 

Council Subsidises 2 Hour Free Parking 2013

 

17.    In the years that followed, Council requested that the free parking arrangement be increased from 1 hour free to first 2 hours free. This was agreed to by the Hospital owner at the time (being Cortez Enterprises) in August 2013 (CCL245-13) on the basis that Council subsidised the loss in revenue for the additional free hour. 

 

18.    The parking fees were subsequently changed following the appropriate regulatory public notification process (28 day exhibition period) as required under the Local Government Act, 1993, to amend the fees applying to all of the publically available car spaces.

 

19.    As a result of the above mentioned changes, the former Hurstville City Council in December 2013 was advised that it was incurring losses for this facility in excess of $470,000 per annum due to a combination of high strata fees and car park revenue losses.

 

20.    In 2014 due to a best practice approach by the Hospital (being a Consortium made up of Waratah Private Hospital, Generation Healthcare and Goldman Sachs, who bought the Hospital (debt) from Suncorp Bank following the previous owner being declared bankrupt), the operational costs relating to the strata were drastically reduced for the building, that in turn, reduced Council’s operational expenses for the car park from $337,000 per annum to $265,000 per annum, significantly reducing Council’s annual loss at this facility.

 

Council Subsidises 3 hour Free Parking (2015)

 

21.    In February 2015, Mayor Hindi, by way of media release, informed the public that the first 3 hours parking at the hospital would now be free.  Unfortunately, the formal process to amend Council’s fees and charges, as is required by the Local Government Act, 1993 did not take place.

 

22.    Without a public consultation process, there was subsequently no formal opportunity for the Hospital’s owners’ consortium to comment on the proposed changes.  The increase in free parking for all the publically available spaces was not supported by the owners’ consortium.

 

23.    However, in a sign of goodwill, the owners’ agreed to change the parking to first 3 hours free, on the basis that Council would once again compensate them for the loss in revenue that would result from the change. 

 

24.    The owners’ agreement was provided on the condition that the commercial situation would be reviewed once the long term contractual agreements with Secure Parking, (which the previous owner Cortez had established) expired (February 2016).

 

25.    Based on actual statistical data provided by Secure Parking, the increase to the free parking period from 2 to 3 hours resulted in the level of Council compensation increasing from approximately $1,500 per month to over $4,000 per month. In what would be a general upward trend, Council’s file indicates that by the month of October 2015, a reimbursement amount of approximately $7,000 was occurring.

 

26.    On 25 February 2016 following the expiry of the Secure Parking management contract, Council resolved:

 

“THAT paid public parking continues according to Council’s adopted Schedule of Fees & Charges (i.e.; – first 3 hours free).

 

THAT, notwithstanding the two previous resolutions, should Waratah Private Hospital not wish to proceed on the same basis with Secure Parking for management of their public parking spaces, then Council’s public spaces will revert to unpaid 3 hours timed parking patrolled by Council rangers.”

 

27.    The above resolution to retain the 3 hour free arrangement gave the Consortium little choice on how the car park would be managed, and appears to be a departure from the 2008 Contract for Sale (Clause 55(b)) that neither party could impose its will on the other in managing the shared car park.

 

28.    Pursuant to the resolution, Council advised the owners’ consortium that it would no longer subsidise the free parking period and that if the consortium didn’t agree, then Council would manage its spaces independently.

 

29.    Council additionally advised that it did not want to pay for any parking equipment costs including the boom gate as Council did not require security to its part of the car park.  Despite being a shared facility with Council and Hospital spaces co-located across various basement levels, Council reasoned that if the Hospital required controlled access then it should be up to the owners’ consortium to pay. Council resolved to send its rangers to patrol the Council-owned car parking spaces (and issue fines for overstaying designated parking limits).

 

30.    The owners’ consortium would then be left to manage its spaces independently of Council’s.  However, being a shared facility, the approved configuration of the parking levels does not allow for individual spaces to be separated and/or managed separately from the Hospital’s spaces. 

 

31.    In the face of mounting costs in relation to the management and operation of the car park and significant loss of revenue, the owners’ consortium met with the General Manager on several occasions and prepared a submission to the draft Georges River Operational Plan 2017-2018 (the draft Budget’s Fees and Charges). 

 

32.    The submission outlined the business case for changing the 3 hour free parking back to 1 hour free, which based on financial modelling, should offset the current losses incurred by Council and the consortium, if car parking occupancy rates reached a level of 80%.

 

33.    The submission also advised Council that the consortium would reserve its legal rights to pursue compensation for any ongoing loss of revenue due to Council’s failure to operate its car parking spaces in a manner that was not financially detrimental to the owners’ consortium.

 

34.    There is no doubt that the Waratah Private Hospital is considered to be a valuable community asset.  However, it should be noted that the previous Hospital owner (Cortez) encountered financial hardship and was placed in receivership as a result of (amongst other things) the exorbitant operational costs associated with running the facility.

 

35.    While costs have reduced for both Council and the owners’ consortium (due to an industry best practice approach by the consortium), Council’s 150 public car park component of this facility continues to operate at a significant annual loss of more than $230,000 per annum.

 

36.    It is anticipated that any attempt to again reduce the commercial viability of the Hospital’s car park by reinstating the 3 hour free parking regime will be met with opposition by the owners’ consortium and a request for significant financial compensation.

 

37.    Waratah Hospital has lodged a submission on the draft 2018/2019 fees and charges which requests that the 1 hour free parking and other daily parking rates remain as shown in the draft fees and charges.

 

Next Steps

38.    Council officers are currently investigating the consolidation of all Council-owned car spaces onto discrete basement levels with a view to being able to install boom gates or other devices which would enable separate management of the Council spaces.

 

39.    Until such time as that consolidation and separate management can be achieved, it is recommended that Council continue with the existing 1 hour free parking period at the site (consistent with the draft 2018/19 fees and charges).

 

Current Position

40.    Council’s public car parking spaces currently operate at an annual loss of approximately $231,000.  Council strata fees amount to approximately $265,000 per annum.

 

41.    Reducing free parking back to a 1 hour period in 2017/18 has increased Council’s revenue at the facility by approximately $50,000 per annum with upward trends continuing.  Current utilisation rate for the Council car parking spaces is between 45% and 55%.

 

42.    It is anticipated that the car park could break even or may possibly become profitable at a utilisation rate of 80%. Based on the consortium’s modelling, the car park operating at 80% capacity with only the first hour free, could potentially result in Council’s current operational costs becoming cost neutral.

 

43.    A new car parking management company (Metro Parking) has been engaged to manage the shared car parking facility. The operator is considered to be a specialist with hospital associated parking facilities. In this regard, both Council and the Waratah Consortium believe that as prudent and responsible asset managers, the car parking management company should be given an opportunity to increase revenue to at least a position of cost neutrality for both parties.

 

44.    In respect to part (c) of the Council Resolution of 28 May 2018 (FIN029-18) whereby

Council resolved;

“That Council investigate the possibility of providing registered or bona fide volunteer persons with passes which reduces their cost of entry and stay”,

it is intended that a further report will be submitted to Council at its July meeting, following technical discussions with the Consortium and parking manager.

 

45.    The table below shows forecast budget details based on the 1 and 3 hour free models:

 

Waratah Private Hospital Car Parking - Impact on Decision for 3 Hours Free Parking

 

 

 

 

Current Arrangement - 2017 -18 Fees and Charges

 

1 Hour Free Parking

 

 

Per Annum

 

Income

                              70,000.00

 

 

 

Strata fees

                           265,000.00

 

OPEX

                              36,704.00

Secure Parking management

 

 Total expenses

                           301,704.00

 

 

 

 

 

 

 

Loss

-                          231,704.00

 

 

 

 

Proposed Arrangement – Draft 2018-19 Fees and Charges

 

3 Hours Free Parking with likely compensation payable to the Consortium

 

 

 

 Income

                              20,000.00

 

 

 

 Strata fees

                           265,000.00

 

 OPEX

                              40,920.00

Metro Parking management

 

 Compensation

                           114,000.00

Estimate based on 2015-16 + CPI

 

 Total expenses

                           419,920.00

 

 

 

 

 

 

 

 Loss

-                          399,920.00

 

 

 

 

 

 

 

 

 

Options

46. The following options are available to Council for consideration:

Option 1:   Status Quo – No change to 1 hour free parking.

Option 2:   Investigate the possibility of having separate parking areas and operation. This would include installing separate boom gates and Council management of its spaces; Council rangers to provide infringement and enforcement; consortium applies no free parking, difficult to implement and costly amendment to stratum to consolidate car spaces.

Option 3:   Increase to 3 hours free parking - compensation will be payable to the consortium for extra 2 hours free parking - significant income reduction to Council, cost increase of approximately $168,000 per annum including compensation to the Consortium.

Option 4:   Increase to 2 hours free parking - reduces compensation payable to approximately $57,000 per annum.  This option is unlikely to be agreed to by the consortium.

Option 5:   Investigate disposal of Council car spaces.

 

Financial Implications

47.    Possible financial impacts are:

·        Approximately $50,000 decrease in revenue should free parking change from 1 hour free parking to 3 hours free parking.

 

·        Approximately $114,000 in compensation to the consortium should the free parking increase to 3 hours.

 

·        Approximately $57,000 payable in compensation to the consortium should the free parking increase to 2 hours free.

 

·        It is acknowledged that pursuant to Clause 55(b) of the Contract for Sale neither party can confer upon the other its will in relation to the shared parking facility.  With this in mind, there is the possibility of incurred legal expenses to Council from a legal challenge arising from parking arrangements not agreed to by both parties and certainly not negotiated in good faith.

 

Community Engagement

48.    Community consultation has been conducted through the draft 2018/19 Budget (Fees and Charges) public exhibition period.

 

49.    Only 1 submission was received (from the owners) in regard to the Waratah Hospital car parking rates. No other public submissions were received.

 

File Reference

D13/1543

 

 

ATTACHMENTS

Attachment 1

Minute 450 - Paid Public Car Parking (16 December 2009)

Attachment 2

Letter to Cortez - Paid Parking (dated 7/1/2010)

Attachment 3

COW060-09 - Paid Public Parking Within Medica Centre Building

 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN048-18              Draft 2018/19 Budget - Consideration of Waratah Private Hospital Car Parking Rates

[Appendix 1]          Minute 450 - Paid Public Car Parking (16 December 2009)

 

 

Page 10

 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN048-18              Draft 2018/19 Budget - Consideration of Waratah Private Hospital Car Parking Rates

[Appendix 2]          Letter to Cortez - Paid Parking (dated 7/1/2010)

 

 

Page 11

 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN048-18              Draft 2018/19 Budget - Consideration of Waratah Private Hospital Car Parking Rates

[Appendix 3]          COW060-09 - Paid Public Parking Within Medica Centre Building

 

 

Page 12

 


 


 


 


 


Georges River Council – Finance and Governance Standing Committee Meeting -  Tuesday, 12 June 2018          Page 17

Item:                   FIN049-18          Container Deposit Scheme - Status of Reverse Vending Machines within Georges River Council 

Author:              Head of Strategic Property

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation:

(a) That the report be received and noted.

 

(b) That the General Manager be authorised to sign the licence agreement for the Reverse Vending Machine located within Olds Park, Penshurst (off Olds Lane, Beverly Hills but known as 630 Forest Road, Penshurst) as generally detailed in this report.

 

(c)  That the General Manager be authorised to sign the licence agreement for the Reverse Vending Machine located within Carss Bush Park – Parking Area (on part of the land fronting Bunyala Street, Blakehurst but known as 74-78 Carwar Avenue, Carss Park) as generally detailed in this report.

 

 

 

Executive Summary

 

1.      Following a resolution of Council at its meeting of 18 December 2017 Council staff undertook a review of Council owned land-holdings that would be considered suitable for the introduction of Reverse Vending Machines that formed part of the NSW Environmental Protection Agency’s Container Deposit Scheme (aimed at reducing waste from used drink containers).

 

2.      The review has now identified two Council locations that are considered suitable for the installation of the Reverse Vending Machines being contained within public car parking areas of Olds Park, Penshurst and Carss Bush Park, Blakehurst.  Each facility will occupy approximately 39 square metres. 

 

3.      This report seeks Council endorsement to the proposed locations and approval to enter into appropriate tenure agreements for the proposed facilities with TOMRA Collection Pty Ltd (being the NSW Government’s contractor in this matter).

 

 

Background

 

4.      Council at its meeting of 18 December 2017 endorsed the following:

 

(a)     That the General Manager provide a report to Council in early 2018 which identifies ways in which Council can assist the community to participate in the NSW government’s ‘Return and Earn’ Container Deposit Scheme.

 

(b)     The report should include a review of existing and proposed suitable locations for the placement of return kiosks within the City to ensure adequate coverage and also include an appropriate community engagement and education campaign.

 

5.      The NSW EPA introduced the NSW Container Deposit Scheme (CDS) from 1 December 2017.  One of the reasons for the commencement of the scheme was that litter research conducted by the EPA found that 86% of people think litter is an important issue facing NSW.  This is further confirmed as currently drink containers make up approximately 44% of the volume of all litter in NSW. 

 

6.      The EPA has called the Container Deposit Scheme “Return and Earn”.  The NSW government’s goal is to reduce by 40% the volume of litter in the state by 2020.  Eligible containers under this scheme include most empty 150mL to 3L drink containers.  The containers need to be uncrushed and have a barcode which is scanned by the machine. From the commencement of the scheme, any eligible container presented at a CDS Collection Point will be refunded 10c and any eligible container processed by a Material Recovery Facility through kerbside recycling (MRF) can be counted towards a 10c/container refund claim.

 

7.      The scheme is run by a scheme coordinator, Exchange for Change who is responsible for financial management of the scheme and a Network Operator TOMRA Cleanaway, who is responsible for the set up and running of the network collection points.  The most common collection points include over the counter and Reverse Vending machines.  At the Reverse Vending machines money can be deposited into a pay pal account, donated to charity or redeemed via a Woolworths voucher.

 

8.      There are currently 565 collection points in NSW and as at the end of April 2018, 269 million containers have been returned.  At the commencement of the scheme, Georges River LGA had seven collection points that were advertised on the EPA’s Return and Earn website as well as Councils website.  As the scheme has continued, issues arose at some of the collection points within our LGA.  These included the irregular collection of containers and the over the counter collection points becoming overwhelmed with the response.  To date there are three collection points that are still operating, located at 54 Thurlow Street, Riverwood, Lugarno News and Post, 1028 Forest Road, Lugarno and Oatley Auto Centre, 12A Oatley Parade, Oatley. 

 

9.      TOMRA originally approached Council in January 2018 with a proposal to install Reverse Vending Machines within the LGA.  Its initial guidelines required locations adjacent to high pedestrian traffic areas.  Under the guidelines Council was also responsible for:

 

·        providing and paying for electricity to the machines,

·        cleaning the front (container receival point) of the machine twice a day, and

·        removing any rubbish accumulated around the Reverse Vending Machines.

 

10.    However, in contrast to the above arrangements, TOMRA pay rent to business operators who provide a Reverse Vending Machine on their property and TOMRA also pay for electricity, cleaning and rubbish removal. The discrepancy in TOMRA’s approach between private and publicly owned sites has resulted in delays in the take-up of machines by councils.

 

11.    Without any allocated funding in Council’s current budget to pay for cleaning, electricity and additional rubbish removal, Council met with TOMRA and suggested the privately owned car parks of various Woolworths stores, Grandview Bowling Club and St George Leagues club as suitable sites.  These locations would allow a reverse vending machine to be located within the LGA without impacting upon Council’s budget.  TOMRA approached the nominated contact at each suggested site with Grandview Bowling Club meeting the TOMRA operational requirements and agreeing to be a location for a Reverse Vending Machine which is now operating.

 

12.    Council and TOMRA have since had a follow up meeting to review 5 Council-owned locations within the LGA to locate reverse vending machines.  Council and TOMRA have agreed in principle to locate Reverse Vending at two specific locations, being Olds Park, Penshurst and Carss Park Bush Park, Blakehurst.  An aerial photo is annexed as Attachments 2 and 3 to this report.  In relation to the agreement, TOMRA will:

 

·        Enter into a commercial tenure agreement (based on the terms as detailed in the confidential Attachment 1 to this report).

·        Pay for the installation and supply of electricity to the machines.

·        Maintain the machines on a regular basis.

·        Remove any dumped rubbish from around the machine.

 

13.    Eligible containers can also be processed through Council’s kerbside collection as part of the Return and Earn scheme.  Section 18 of the Waste Avoidance and Resource Recovery (Container Deposit Scheme) Regulation, 2017 sets out arrangements for the allocation of refund amounts arising from kerbside recycling. The refund value must be shared between Material Recovery Facility (MRF) operators and councils. MRF operators will have 12 months from the 1 December to negotiate a ‘refund sharing agreement’ with their council clients, to the satisfaction of the council.

 

14.    Without agreement of the Council, Material Recovery Facility (MRF) operators will not be able to claim a refund on eligible containers from kerbside collections processed through their MRF after the 1st anniversary of the Scheme i.e. 1 December 2018. Council is currently working with SSROC and the Office of Local Government to develop industry wide guidelines on how to best negotiate this agreement. 

 

15.    In addition to the facilities located in the Council reserves, Council staff are preparing to install Return and Earn Collection points in each of the Council’s Civic Centre kitchens with all monies collected being donated to the charities nominated via the Reverse Vending Machine program.

 

Conclusion

 

16.    The proposed negotiated terms are consistent with or better than those achieved by private sites and councils in the greater Sydney area and therefore represent fair market value.  The proposal is in the best interest of ratepayers as Council considers that it has obtained optimum value from the CDS Scheme while reducing waste.

 

17.    Council will continue to work with SSROC and the Office of Local Government to ensure that Council develops a fair and reasonable Refund Sharing Agreement with the Material Recovery Facility (MRF) operators.  Updates regarding additional reverse vending machine locations will be communicated to the community via Council’s website and the Return and Earn Program.

 

Financial Implications

 

18.    Council’s general revenue will increase in accordance with the annual rental received for each facility as detailed in the confidential commercial terms in this matter.

 

Community Engagement

 

19.    Public notification of any proposed licence agreement will be advertised in accordance with the community provisions of the Local Government Act, 1993 where applicable.

 

File Reference

17/1831 and D18/89997

 

 

 

ATTACHMENTS

Attachment 1

Term Sheet (Confidential)

Attachment 2

Location Plan - Olds Park

Attachment 3

Location Plan - Carss Bush Park

 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN049-18              Container Deposit Scheme - Status of Reverse Vending Machines within Georges River Council

[Appendix 2]          Location Plan - Olds Park

 

 

Page 21

 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN049-18              Container Deposit Scheme - Status of Reverse Vending Machines within Georges River Council

[Appendix 3]          Location Plan - Carss Bush Park

 

 

Page 22

 


Georges River Council – Finance and Governance Standing Committee Meeting -  Tuesday, 12 June 2018          Page 23

Item:                   FIN050-18          Open Space and Parklands Program Funding - Oatley Park Nature Based Inclusive Adventure Playground (NSW Department of Planning and Environment Grant) 

Author:              Manager Project Delivery

Directorate:      Assets and Infrastructure

Matter Type:     Committee Reports

 

 

 

Recommendation

(a)     That Council accept $1 million from the Department of Planning and Environment as part of their Open Space and Parklands Program for the construction a nature based inclusive adventure playground at Oatley Park and irrigation of the sports field.

(b)     That Council allocate $1 million from the Hurstville Section 94 Development Contributions Plan 2012 (Open Space) as part of the 2018-2019 budget to match the grant funding.

 

(c)     That the General Manager be authorised to sign all the necessary grant documentation.

 

 

Executive Summary

1.      At its meeting of 28 May 2018, Council delegated authority to the General Manager to apply for funding via any available NSW grant funding programs for suitable projects within the five-year capital works program.

2.      This report is presented to Council to obtain approval to accept $1 million from the Department of Planning and Environment as part of its Open Space and Parklands Program for the construction of a nature based inclusive adventure playground at Oatley Park and irrigation of the sports field.  Approval is also sought to allocate $1 million from Hurstville Section 94 Development Contributions Plan 2012 (Open Space) to match the grant funding.

 

Background

3.      The goal of the Office of Open Space and Parklands is for everyone in NSW to enjoy attractive, safe and accessible parks and outdoor spaces.  The focus of the Open Space and Parklands Program is building and promoting places that meet the needs of our unique communities, and are used as a part of everyday life.

4.      Oatley Park is located in the southern Sydney suburb of Oatley, adjoining the Georges River. Situated on a peninsula, three of the park’s boundaries are defined by water. Its northern and western boundaries are marked by Lime Kiln Bay, whilst Jewfish Bay forms its southern boundary.

5.      The park is predominantly a bushland reserve, being the largest and most intact parcel of remnant bushland in the St George region, and contains threatened and locally rare plant species.

6.      It is also a popular recreational and sporting facility, incorporating such well known features as the tidal Oatley Park Baths, the Steamroller Park, Oatley Park Castle, Oatley Park Oval, and many walking tracks. 

7.      The project includes the construction of a new nature based inclusive adventure playground, which will cater for all ages and will include the installation of new picnic facilities and public amenities .In addition the installation of an irrigation system on the adjacent sporting oval will provide a safe, maintainable even playing surface for all users.

8.      This project provides a long term vision for the park and aims to create a first class recreational asset for the community that caters for a diverse range of passive and active recreational pursuits.

9.      Due to normal wear and age deterioration, the existing playground at the steamroller park (17 years old) is due for replacement.  The Oatley Park Plan of Management (2004) states “The opportunity to develop an adventure playground designed around and for the site specifically, using natural materials and sensitive to the surroundings, may be considered at a time when the current equipment needs upgrading.”

10.    The Oatley Park oval was re-turfed by Council late in 2017.  The need to refurbish the oval has been a regular occurrence over recent years due to increased usage of the field, dry conditions and poor access to water.  The introduction of an efficient irrigation system to the sports oval will help maintain this asset and provide a safe, much improved well grassed playing surface for the local sporting associations and general public at the same time reduce the ongoing resurfacing costs for Council.

11.    As identified in the Georges River Council Stronger Communities Framework, this project will provide the community with outstanding infrastructure that will meet the growing needs of residents, businesses and visitors.

12.    The Georges River Council 2017-2018 Operational Plan and Budget adopted by Council on 29 June 2017, identified that “Council plays an important role in developing opportunities for its residents to be physically active through the provision of local infrastructure such as paths, open space and sport fields, as well as though services such as leisure programs, sport and community group support, along with information about activities and facilities.”   A key deliverable from this plan is to ensure that playing fields are accessible and ‘playable’ for all key stakeholders for both passive and active recreation.

13.    Council Officers have identified an opportunity to construct a nature based and inclusive adventure playground at Oatley Park that would accommodate all park patrons and would meet the objectives of the Open Space and Parklands Program.  This project is currently included in Council’s five-year capital works program (identified in year 2019/20) but remains unfunded at this time.

 

14.    The Nature Based and Inclusive Adventure Playground will enhance the Park by improving accessibility throughout the park and creating new recreational facilities for the local community.  It is anticipated that the new irrigation system will deliver significant energy and water efficiencies and therefore cost savings. The installation of the irrigation system will also reduce overall resurfacing/ returfing, weeding maintenance and watering costs considerably.

 

15.    It is anticipated that the total project will cost $2 million and as such the Department of Planning and Environment as part of its Open Space and Parklands Program has advised it will contribute $1 million to this project.

 

16.    As this grant will be 50/50 contribution, it is proposed that Council allocate $1 million from the Hurstville Section 94 Development Contributions Plan 2012 (Open Space) as part of the 2018-2019 Budget.

 

Financial Implications

17.    This project is currently included in Council’s five-year capital works program (identified in year 2019/20) but remains unfunded at this time.

18.    In addition to the $1 million Department of Planning and Environment Open Space and Parklands Program Grant, Council will need to allocate $1 million from the Hurstville Section 94 Development Contributions Plan 2012 (Open Space) as part of the 2018-2019 Budget to ensure delivery of the project.

 

Risk Implications

19.    No risks identified.

 

Community Engagement

20.    Community engagement was undertaken as part of the development of the Oatley Park Plan of Management in 2004.  This proposal is entirely consistent with the objectives of the Plan of Management and in particular, the following clause:

“The opportunity to develop an adventure playground designed around and for the site specifically, using natural materials and sensitive to the surroundings, may be considered at a time when the current equipment needs upgrading.”

 

File Reference

18/1311

 

 

 

  


Georges River Council – Finance and Governance Standing Committee Meeting -  Tuesday, 12 June 2018          Page 26

Item:                   FIN051-18          Draft 2018/19 Budget - Consideration for the Future Use of the Kogarah War Memorial Swimming Pool 

Author:              Executive Manager Premium Facilities and Properties and Manager Project Delivery

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation

(a)  That Council approve the decommissioning and demolition of the Kogarah War Memorial Swimming Pool at the end of the 2018/19 summer season, as the structure has reached its design life.

(b)  That Council develop the Kogarah War Memorial Swimming Pool site to accommodate additional parking and active recreation (Option C) as an interim arrangement until such time as various strategic studies for the LGA and the precinct are completed and Council has determined a final use for the site.

(c)   That the cost of the works be funded from operational budget savings and the Aquatic Facilities Investment Reserve.

 

 

Executive Summary

1.   This report is presented to Council to seek endorsement for the decommissioning and demolition of Kogarah War Memorial Pool and the construction of active and passive recreation at the site.

 

Background

2.   In 2016, Georges River Council commissioned Building Services and Structural Evaluation Reports and Building Assets Condition Assessments for its Leisure Centres and swimming pools.  This was undertaken by Cardno Pty Ltd to capture the existing condition of each asset, develop an overall service assessment and estimate the capital expenditure required at each facility.  The assessment was used to develop an Asset Management Plan for each facility which fed into Georges River Council’s Long Term Financial Plan.

 

3.   The Building Assets Condition Assessment for Kogarah War Memorial Pool highlighted a number of issues relating to the electrical, mechanical, hydraulics and fire services plus critical issues relating to the structural condition of the pool and associated building.

 

4.   The Cardno summary of the issues relating to the structural condition of the facility is outlined below:

“The original structure at Kogarah War Memorial Swimming Pool is believed to be approximately 50 years ago. It is our opinion that the current gym structure/reception building does not comply with current Australian Standards in term of loading requirement. Foundation settlement is evident throughout the site in the forms of cracking to slab and brick walls. Significant corrosion to the steel framed awning structure is evident throughout. The overall condition of the structure throughout is in poor condition and our major concerns are generally as follows:

a)   Foundation settlement cause excessive cracking to load brick walls.

b)   Extensive corrosion to the steel framed awning adjoining swimming pool.

c)   Extensive water ingress throughout the reception and gym areas.

d)   Existing roof structure is likely to be under sized according to current code requirement and sagging to the roof sheeting is evident.”

It is noted that since the date of this assessment, the steel framed awning collapsed during a windy weather in late 2017.

 

5.   Furthermore, comments relating to the 50m pool were outlined as follows:

·    Cracking to the swimming pool edge due to aging was evident during our inspection.

·    Based on our experience in similar structure around this age, it is possible that there is no dowel bars between base slab movement joints; therefore each panel of the base slab may move independently; thus causing jointing sealant to crack. Water within the swimming may be

·    Penetrating through the joints and cause soil erosion on site; this may be the other contributing factor for excessive water bill.

·    Due to the age of this outdoor poor, the chloride-ion from chlorine may have penetrated the concrete cover if the waterproofing layer has not been maintained; thus it is highly likely that the reinforcement inside the base slab may have been corroded. This can only be confirmed by carrying out invasive investigation.

·    It is very likely that there might be localised failure of the plumbing system below the pool base slab if no maintenance works have been carried out in the past.

 

6.   Following this assessment, Cardno concluded that “It is our opinion that the building structure has reached its design life and rebuilding of the facility may be a more cost effective solution”.

 

7.   On 6 February 2017, the Cardno Building Assets Condition Assessments for all three (3) aquatic facilities were tabled at the Council Meeting where it was resolved:

 

(a) That Council receives and notes the Building Services and Structural Evaluation Report for Hurstville Aquatic Leisure Centre, the Building Assets Conditions Assessment for Sans Souci Leisure Centre and the Building Assets Conditions Assessment for Kogarah War Memorial Swimming Pool.

(b) That Council develops an Aquatic Facility Strategy that identifies the longer term needs of the community.

(c)  That $30,000 is allocated for the Georges River Council Property Asset Reserve to fund the Georges River Council Aquatic Facility Strategy.

(d) That all necessary action is taken to ensure fire and life safety standards are monitored immediately at each aquatic facility.

 

8.   In accordance with the Council resolution, all rectification works were undertaken at Kogarah War Memorial Pool to ensure fire safety standards were met. However, structural issues relating to the pool and associated buildings have continued to deteriorate.  Funding of $60,000 was provided by Council to address immediate maintenance and safety issues at this time.

9.   In May 2018, Council commissioned Elton Consulting to develop an Open Space, Recreation and Community Facilities Strategy that would also incorporate an Aquatic Facility Strategy for the local government area.  Community consultation has commenced as part of Phase 1 of the Strategy.

 

10. Since 1 July 2017, Kogarah War Memorial Swimming Pool has been managed by Council with assistance from employees seconded from BlueFit Pty Ltd.  BlueFit Pty Ltd has provided Council with detailed attendance figures as outlined below:

 

Carss Park Attendance

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aquatic

 

 

 

 

 

 

 

 

 

 

 

 

 

Casual Swim and Squad

216

269

512

790

901

1,667

2,226

1,417

795

958

399

Spectator

2

1

13

17

108

175

189

397

187

24

4

Child Under 5 (previously not tracked)

0

0

0

0

0

0

0

2

0

1

0

Visit Pass

7

32

62

77

75

83

164

153

160

228

209

Squad

0

0

304

1,344

2,000

2,500

3,000

2,500

2,000

1,160

380

Squad Parents

0

0

365

1,613

2,400

3,000

3,600

3,000

2,400

1,392

456

School Entry

0

0

0

0

800

423

0

3,000

500

500

331

Total Aquatic

225

302

1,256

3,841

6,284

7,848

9,179

10,469

6,042

4,263

1,779

51,488

 

Health Club

Member

304

214

302

394

431

359

428

438

382

460

404

Visit Pass

0

0

0

0

0

0

0

0

0

0

0

Casual

87

66

102

94

89

59

79

85

67

78

74

Staff

2

3

1

3

2

2

1

2

1

2

2

Total Health Club

393

283

405

491

522

420

508

525

450

540

480

5,017

 

Facility Total

618

585

1,661

4,332

6,806

8,268

9,687

10,994

6,492

4,803

2,259

56,505

 


 

2017/18 expenses for Kogarah War Memorial Swimming Pool (to date) are as follows:

 

Item

Cost

Power

$25,000

Gas

$90,000

Water

$70,000

Maintenance

$150,000

Operating Costs (swim coaches, staff, etc)

$560,000

Total expenses

$895,000

Total income

$240,000

Net loss

$655,000

 

Draft expenses for Kogarah War Memorial Swimming Pool (draft 2018-2019 budget):

 

Item

Cost

Power

$25,000

Gas

$90,000

Water

$70,000

Maintenance

$60,000

Operating Costs (swim coaches, staff, etc)

$475,000

Total expenses (estimated)

$720,000

Total income (estimated)

$240,000

Net loss

$480,000

 

11. As outlined above, the net loss of this facility is tracking at $655,000 for the 2017-2018 financial year, with attendances less than 60,000 patrons per year or 1,100 patrons per week.

Future Use

12. Kogarah War Memorial Pool is located at (DP 752056 Lot 511) within Carss Park Flats, which falls under the “Carss Bush Park and Todd Park Plan of Management” which was adopted by the former Kogarah Council in December 2004.  The pool falls within the Category of “General Community Use” in accordance with Local Government Act 1993.  The objective of the Plan of Management for General Community Use states “The core objectives for the management of this category focuses on promoting, encouraging and providing for the use of the land, and to provide facilities on the land, to meet the current and future needs of the local community and of the wider public”.

 

13. As outlined in the Georges River Council “Characteristics of a Strong Council “the council is a robust, flexible and capable organisation that delivers the needs of the community” and as such “Operations are efficient and efficiencies are reinvested to the benefit of the community”.

 

14. As such, it is deemed that the continued operation of the facility would not be best value for money for the community.  The number of regular patrons attending the facility is documented in the table above.  For the nine months to the end of March, this number is around 49,000 in total. Casual swim patrons for the 9 month period were around 10,000 and squad swimmers at around 14,000.  By contrast, Hurstville Leisure Centre in the same period has attracted around 900,000 visitors and swimmers.

 

15. In line with the core objectives of the Carss Bush Park and Todd Park Plan of Management, Council Officers have prepared four options for the site:

Option A – Status Quo

The ongoing operation of the Kogarah War Memorial Swimming Pool will continue to present Council with a liability in excess of $480,000 per year (as outlined in the draft 2018-2019 Budget).  In addition, significant long term investment would be required to ensure the facility meets appropriate Council and statutory legislation standards (safety, food and health).

The construction of new amenities (including entry, gym, changerooms, etc) would cost in excess of $2 million.  Furthermore, the construction of a new plant room would require investment of over $1 million.  Additional funds would also be required to undertake extensive refurbishment and repair of the toddler and 50m pools – these works would exceed $2 million as a conservative estimate.

In summary, Option A would incur an annual loss of $490,000 per year plus capital expenditure in excess of $5 million.

 

Option B – Additional Parking

 

This option would require the decommissioning and demolition of Kogarah War Memorial Swimming Pool.  An estimate for the demolition of pool is outlined below:

 

Item

Cost

Preliminaries

$30,000

Demolition and disposal of all single storey buildings

$770,000

Demolition and disposal of all awnings structures

Demolition and disposal of swimming pool

Removal of existing swimming pool plant and equipment

Removal of contaminated soil Provisional allowance: 300 m3

Backfill to make safe the pool after removal. Provisional allowance: 900 m3 due to unknown ground condition

Estimated Cost of Decommissioning and Demolition

$800,000

 

The site could then be converted to provide 200 additional hard stand public parking spaces at a cost of approximately $600,000.

This option would increase parking capacity for Carss Bush Park which is currently over capacity during the weekend and summer season.

In summary, Option B would require capital expenditure of $1.4 million. Refer Attachment1.

Option C – Additional Parking and Construction of Multipurpose Courts

This option would require the decommissioning and demolition of Kogarah War Memorial Swimming Pool.  As outlined above, the estimated cost of decommissioning and demolition is $800,000.

The site could then be converted to provide 140 additional parking spaces and 3 mini multipurpose courts (futsal, basketball, netball, etc) at a cost of $900,000.

In summary, Option C would require capital expenditure of $1.7 million. Refer Attachment 2.

Option D – Additional Parking and Passive Recreation

This option would require the decommissioning and demolition of Kogarah War Memorial Swimming Pool.  As outlined above, the estimated cost of decommissioning and demolition is $800,000.

The site could then be converted to provide 60 additional parking spaces and passive recreation such as landscaping, installation of BBQs and shelters and an enhanced green space at a cost of $250,000.  (Due to the limited size of the space available post-demolition, construction of a sporting field is not recommended.

In summary, Option D would require capital expenditure of $1.15m. Refer Attachment 3.

Draft designs for Options B, C and D are attached for information.

 

Summary

16. The objective of the Carss Bush Park and Todd Park Plan of Management states that that the “the management of this category focuses on promoting, encouraging and providing for the use of the land”.  As outlined in this report, it is evident that patronage at Kogarah War Memorial Swimming Pool continues to decline, with Council incurring a financial loss of $655,000 in the 2017-2018 financial year which contradicts Council’s “Characteristics of a Stronger Council”.

 

17. It is evident from the Cardno Building Assets Conditions Assessment that the pool, plant and buildings are beyond their useful life and present a number of risks to Council should the pool remain open.  Significant capital expenditure would be required to meet current standards and guidelines.

 

18. Options B, C and D all provide a number of passive and active recreation options consistent with the Carss Bush Park and Todd Park Plan of Management.

 

19. A summary of each option is provided as follows:

 

Option

Description

Cost

Comments

A

Status Quo

$480,000 per year plus capital expenditure in excess of $5 million

Significant long term investment would be required to ensure the facility met appropriate Council and statutory legislation standards

B

Additional Parking

$1,400,000

200 additional parking spaces

C

Additional Parking and Construction of Multipurpose Courts

$1,700,000

140 additional parking spaces and 3 mini multipurpose courts

D

Additional Parking and Passive Recreation

$1,150,000

60 additional parking spaces, BBQ’s shelters and landscaping

 

20. As such, it is recommended that Council approve Option C, which provides a balance of additional parking and recreation that meet the needs of the community and objective of the Carss Bush Park and Todd Park Plan of Management.  If approved, works could commence after Sans Souci Leisure Centre reopens in October 2018.

 

21. Alternatively, the Pool could remain open until the end of the 2018/19 summer season which would enable the usual school swimming carnivals to be hosted in February 2019.  However, this would incur losses of approximately $360,000 to Council which would then make those funds unavailable to Council to put towards any of the abovementioned options.

 

Financial Implications

22. It is proposed that Council fund Option C utilising the 6 months of savings that would arise of approximately $240,000 in the budget and funds from the Aquatic Facilities Reserve which has a forecast balance of $1,438,808 at 30 June 2018.

Community Engagement

23. Community engagement will be conducted including notification of proposed works via a Communications Strategy to ensure that all stakeholders are aware of the works.

 

File Reference

17/552

 

 

 

ATTACHMENTS

Attachment 1

Kogarah War Memorial Swimming Pool - Option B

Attachment 2

Kogarah War Memorial Swimming Pool - Option C

Attachment 3

Kogarah War Memorial Swimming Pool - Option D

Attachment 4

Kogarah War Memorial Swimming Pool - Multipurpose Court Options

 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN051-18              Draft 2018/19 Budget - Consideration for the Future Use of the Kogarah War Memorial Swimming Pool

[Appendix 1]          Kogarah War Memorial Swimming Pool - Option B

 

 

Page 33

 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN051-18              Draft 2018/19 Budget - Consideration for the Future Use of the Kogarah War Memorial Swimming Pool

[Appendix 2]          Kogarah War Memorial Swimming Pool - Option C

 

 

Page 34

 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN051-18              Draft 2018/19 Budget - Consideration for the Future Use of the Kogarah War Memorial Swimming Pool

[Appendix 3]          Kogarah War Memorial Swimming Pool - Option D

 

 

Page 35

 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN051-18              Draft 2018/19 Budget - Consideration for the Future Use of the Kogarah War Memorial Swimming Pool

[Appendix 4]          Kogarah War Memorial Swimming Pool - Multipurpose Court Options

 

 

Page 36

 


Georges River Council – Finance and Governance Standing Committee Meeting -  Tuesday, 12 June 2018          Page 37

Item:                   FIN052-18          Advice on Costs and Status of Council's Court Proceedings - May 2018 

Author:              General Counsel

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation:

That the report, Advice on Costs and Status of Council’s Court Proceedings – May 2018, be received and noted.

 

 

Executive Summary

1.      Advice on Council’s Court Proceedings for the period 29 March 2018 to 30 May 2018 is contained within this report.

2.      Total nett costs to date for the 2017/18 financial year for Court proceedings are $602,011. This is within Council’s legal budget of $1million.

3.      Total legal costs recovered to date for the 2017/18 financial year are $205,528.

4.      Total costs for Court proceedings in the 2016/17 financial year were $736,241 [$575,161 (Hurstville) and $161,080 (Kogarah)].

 

Background

5.      The current Court Proceedings for the reporting period are broken down as follows:

Supreme Court

·   1 x Application under s88K for property easements (Telado) over Council’s land

Land and Environment Court

·   26 x Class 1 (Merit/DA)

·   5 x Class 4 Proceedings (including 2 x Contempt of Court proceedings)

·   2 x Appeals from Local Court

District Court

·   1 x Workers Compensation

Local Court

·   8 x Prosecutions

NSW Civil and Administrative Tribunal

·   1 x Application (Briscoe-Hough v Tegg & Ors)

Cost Recovery

·   4 x cost recovery matters

 

Overview – New Matters

6.      Three new matters were received during the reporting period where Council is the respondent: Land and Environment Court Class 1 appeal (Ezra 1 Pty Limited, Carlton Investments No 1 P/L and 95 Regent Street Kogarah Pty Limited).

7.      One Local Court matter (Karkoulas) and one Class 4 proceedings (Lowe) were finalised, as was one cost recovery matter (D R Design).  Judgment was handed down in 1 x Class 1 appeal (Prajna Monastery).

Current Table

8.      The Court Proceedings current for the reporting period are set out below. The external costs include both external legal and expert consultants’ fees.

 

 

 

No.

Property Address / Applicant / Proceedings Number

Description of Matter

Status / Critical Dates

External Costs to Date From 2017/18 FY

Land and Environment Court Proceedings – Class 1 Appeals

1

58 and 60 Blackshaw Avenue

MORTDALE

 

Applicant:

Marion McDowell and Associates

 

Proceedings No.

241879 of 2016

Class 1 Appeal against Council Order for demolition of existing unauthorised structure.

Judgment handed down on 13 June 2017.  Council’s order was upheld. Compliance period extended to 13 September 2017, pending outcome of building certificate application.  Building certificate application refused.  Appeal lodged.

Awaiting outcome of appeal to commence enforcement.

$7,765.00

2

70 – 78 Regent Street, Kogarah

 

Applicant: Regent Land Pty Limited ATF Regent Land Unit Trust

 

Proceedings No. 215083 of 2017

Kogarah North Precinct

Class 1 Appeal against deemed refusal of DA 2017/111 for the demolition of existing buildings over eight lots (5 properties), amalgamation of the lots and development of an 11 storey residential flat building with 127 apartments and 145 car parking spaces.

 

Matter not resolved at S34 Conference on 6 December 2017.  Matter has now been listed for hearing on 5 and 6 July 2018.  External urban design, planning and traffic consultants briefed.

$42,018.00

3

11 Stanley Street & 28 – 36 Victoria Street, Kogarah

 

Applicant: No. 1 Victoria Dragons Pty Limited

Proceedings No. 217118 of 2017

Kogarah North Precinct

Class 1 Appeal against deemed refusal of DA9/2017/110/1 for demolition of existing buildings and construction of a residential flat building comprising 96 residential dwellings over 3 levels of basement parking.

Matter not resolved at S34 Conference on 4 December 2017.   Matter listed for hearing on 5 and 6 July 2018.  External urban design, planning and traffic consultants briefed.

$37,834.00

4

2 – 10 Palmerston Street, Kogarah

 

Applicant: Palmerston Dragon No. 1 Pty Limited

 

Proceedings No. 217105 of 2017

Kogarah North Precinct

Class 1 Appeal against deemed refusal of DA9/2017/112/1 for demolition of existing buildings and construction of a residential flat building comprising 67 residential dwellings over 2 levels of basement parking.

Matter not resolved at S34 Conference on 5 December 2017. Matter now listed for hearing on 15 & 16 August 2018.  External urban design, planning and traffic consultants briefed.

$24,239.00

5

41 – 47 Princes Highway, Kogarah

 

Applicant:

GCK Investments Pty Limited

 

Proceedings No.  235909 of 2017

Kogarah North Precinct

Class 1 Appeal against refusal of DA183/2016 for the demolition of existing buildings and construction of a 10 storey mixed use development consisting of ground floor commercial tenancy and 51 residential apartments over basement car parking.

Matter not resolved at S34 Conference on 19 December 2017.  Matter now listed for hearing on 28 & 29 August 2018. External urban design, planning, heritage and traffic consultants briefed.

$25,691.00

6

58 and 60 Blackshaw Avenue

MORTDALE

 

Applicant:

Marion McDowell and Associates

 

Proceedings No.

294745 of 2017

Class 1 Appeal against refusal of Building Certificate Application No. 149D2016/0038 lodged on 21 September 2016 and refused on 20 September 2017.

Matter listed for contested hearing on 2 March 2018.  Applicant ordered to carry out structural rectification works to the warehouse building within 28 days, to pay $7,000 for contribution to storm water works and to obtain Sydney Water consent relative to the sewer assets within 3 months.

$20,137.00

7

1 – 5 Treacy Street, Hurstville

 

Applicant: G R Capital Group Pty Limited

 

Proceedings No. 304530 of 2017

Class 1 Appeal against refusal of DA2017/0205 for the construction of five additional levels (31 apartments) to an approved mixed development under Development Consent DA2014/0183 (as modified)

Matter was listed for hearing on 29 May 2018. External town planner and traffic consultant briefed. Matter was resolved by way of S34 Agreement.

$44,106.00

8

6 The Crescent, Kingsgrove

 

Applicant: One Funds Management Ltd ATF Kingsgrove Property Trust

 

Proceedings No. 2017/309712

Class 1 Appeal against actual refusal of DA2017/0151 for construction of new off-street entry to premises along Vanessa Street, Kingsgrove.

Matter was unresolved at the S34 Conference on 22 March 2018 and 4 April 2018.  The matter has now been set down for hearing on 13 and 14 September 2018.  External traffic and counsel briefed.

$0

9

16 – 20 Tooronga Terrace, Beverly Hills

 

Applicant: Nicole Saoud

 

Proceedings No. 328848 of 2017

Class 1 appeal against refusal of DA 2016/0230 seeking development consent for retention of existing development fronting Tooronga Terrace, Beverly Hills and construction of a 3 storey building at rear for use as a boarding house of 15 rooms with parking at ground level

Matter was listed for S34 Conference on 30 April 2018 and adjourned to 8 June 2018 to allow provision of amended scheme. Negotiations are continuing.  External town planner and traffic consultant briefed.

$14,290.00

10

70 Carwar Crescent, Carss Park

 

Applicant: Belinda Sun

 

Proceedings No. 335225 of 2017

Class 1 appeal against refusal of DA263/2016 for demolition of existing structure and construction of a new 2 storey attached dual occupancy with sub floor garage.

Matter was listed for S34 Conference on 1 May 2018. Council’s experts are satisfied that amended plans are capable of approval subject to conditions.  S34 Agreement to be filed.  Section 8.15(3) costs to be paid in the amount of $4,000.

$250.00

11

27 Newman Street, Mortdale

 

Applicant: Morgan Ng

 

Proceedings No. 343784/2017

 

Class 1 appeal against deemed refusal of DA2017/0121 for demolition of existing structure and construction of a new boarding house (12 rooms) and carport.

Matter was listed for S34 Conference on 8 May 2018.  Council’s experts are satisfied that the amended plans are capable of approval subject to conditions.

$0

12

849 King Georges Road, South Hurstville

 

Applicant: Urban Link Pty Limited

 

Proceedings No. 351493 of 2017

Class 1 Appeal against refusal of DA for demolition of existing structures and construction of a 4 storey flat building with 13 units and basement parking.

Matter was listed for S34 Conference on 16 May 2018.  External planner briefed.  Matter has been adjourned to 8 June 2018 to allow the applicant to provide amended plans.

$6,362.50

13

14 Wright Street, Hurstville

 

Applicant:

Prajna Monastery Australia Incorporated

 

Proceedings No. 2017/353101

Class 1 appeal against Council’s deemed refusal of DA 2017/0384 for demolition of an existing single storey dwelling and construction of a place of worship (Buddhist monastery).

Matter was heard on 21 & 22 May 2018. External planning, traffic and noise consultants briefed.  Judgment handed down and appeal dismissed.  Development consent refused.

$19,979.00

14

2 – 10 Woniora Road, Hurstville

 

Applicant:

Stellar Hurstville Pty Limited

 

Proceedings No. 2017/370324

Class 1 Appeal against deemed refusal of DA262/2016 for demolition of existing buildings and ancillary structures and construction of a new mixed use commercial residential building comprising three basement levels containing car parking and storage, ground floor commercial and basement parking and 12 residential apartment levels containing 112 apartments.

Matter has been listed for S34 Conference on 15 June 2018.  External heritage and urban design expert retained.

$38,891.00

15

2 – 4 Gladstone Street & 10 Victor Street, Kogarah

 

Applicant: Vortex Property Group

 

Proceedings No. 2017/377046

Kogarah North Precinct

Class 1 appeal against Council’s deemed refusal of DA 2017/0519 for demolition of existing structures and construction of eleven (11) storey residential flat building containing thirty eight (38) units with basement car parking at 2 – 4 Gladstone Street and 10 Victor Street, Kogarah.

Matter has been listed for S34 Conference on 11 July 2018.  External traffic and urban design briefed.

$8,282.00

16

832 – 836 King Georges Road & 51 Connells Point Road, South Hurstville

 

Applicant:  Cash Warwick Pty Limited

 

Proceedings No. 2017/384934

Class 1 appeal against Council’s deemed refusal of modification application no. MOD2017/0169 seeking to modify development consent structures and construction of a part 5, part 7 storey residential flat building containing sixty seven (67) units to provide for internal reconfigurations and addition of a storey to building B at 832-836 King Georges Road and 51 Connells Point Road, South Hurstville.

Matter listed for S34 Conference on 25 June 2018.

$11,882.00

17

35 – 37 Empress Street, Hurstville

 

Applicant: Tribeca Property Developers Pty Limited

 

Proceedings No. 2017/385110

Class 1 appeal against Council’s deemed refusal of DA 2017/0496 lodged on 20 October 2017 for the demolition of existing structures and construction of a four (4) storey residential flat building comprising of fifteen (15) units with partially below ground basement car parking at 35 – 37 Empress Street, Hurstville.

Matter was listed for S34 Conference on 29 May 2018.  Matter has been adjourned to 7 June 2018 to allow Applicant to put on amended plans.

$7,987.00

18

2D The Crescent, Kingsgrove

Applicant:  W & J Lee Property Investments Pty Limited

Proceedings No. 2018/9499

Class 1 appeal against Council’s refusal of DA 2016/0107 for the construction and operation of a Resource Recovery Facility at 2D The Crescent, Kingsgrove.

 

Matter listed for S34 Conference on 6 September 2018.  Council asserts application is designated development.  Council to file motion for a preliminary hearing on designated development issue.

$38,163.00

19

5 – 9 John Street, Kogarah Bay

 

Applicant: Touma Property Developments

Proceedings No. 2018/38420

Class 1 appeal against Council’s deemed refusal of DA 2017/0663 for demolition of existing structures and construction of a six storey residential flat building with 44 units with associated 2 levels of basement parking.

 

 

Matter listed for S34 Conference on 30 July 2018.

$0

20

80 Penshurst Street, Penshurst

 

Applicant: 80 Penshurst St Pty Ltd ATF 80 Penshurst St Trust

 

Proceedings No. 2018/84104

Class 1 appeal against Council’s deemed refusal of Modification Application MOD2018/0007 to modify Development Consent 2016/0363 to add an additional unit on level 4, modifications that increase floor space to units on level 3, reduction of floor space for ground floor retail and addition of a substation.

Matter was listed for first directions hearing on 17 April 2018 and adjourned to 4 May 2018 to allow for Statement of Facts and Contentions to be provided by Council’s external planner.

$0

21

1 – 3 John Street, Kogarah Bay

 

Applicant: Al Abrahim

 

Proceedings No. 2018/114721

Class 1 appeal against deemed refusal to grant development consent to the Applicant for the demolition of existing structures and construction of a 7 storey residential flat building compromising 25 residential apartments and basement parking to

1 – 3 John Street, Kogarah Bay.

Matter listed for S34 Conference on 26 September 2018.

$0

22

22 Vaudan Street, Kogarah Bay

 

Applicant: Nelson Architecture Pty Limited

 

Proceedings No. 2018/121980

Class 1 appeal against deemed refusal of Development Application DA2017/0571 for the demolition of existing house, driveways and parking areas at 22 Vaudan Street, Kogarah Bay.

Matter listed for directions hearing 1 June 2018.

$0

23

25 Koorabel, 25A Koorabel, 25B Koorabel Street

LUGARNO

 

Parties:

Daoud & Daoud Developments Pty Ltd

Appeals against Penalty Notices issued for carrying out development not in accordance with development consent.

Defendant found guilty of 2 offences of carrying out development without consent.  Judgment handed down on 16 March 2018 with penalty of $30,400 and costs of $12,000 (total $42,400) ordered.  Appeals lodged in the Land and Environment Court.  First directions hearing is listed on 15 June 2018.

$12,299.00

24

10 – 12 Mimosa Street, Oatley

 

Applicant: Ezra 1 Pty Limited

 

Proceedings No: 2018/140860

Class 1 appeal against deemed refusal of Development Application DA2018/0071 for demolition of existing structures and construction of basement car park and 8 attached units to be used as seniors living housing and other ancillary works

Matter listed for first S34 Conference on 17 October 2018.  External planner, traffic, acoustic and urban design consultants briefed.

$0

25

313 – 323 Princes Highway, Carlton

 

Applicant: Carlton Investments No. 1 Pty Limited

 

Proceedings No: 2018/ 140963

Class 1 appeal against deemed refusal of DA2018/0102 for demolition of existing structures and construction of a part five (5) part six (6) storey mixed use development with three (3) levels of basement carparking.

Matter is listed for first directions on 1 June 2018.  External solicitors and planner have been retained.

$0

26

71 – 97 Regent Street, Kogarah

 

Applicant: 95 Regent Street Kogarah Pty Limited

 

Proceedings No: 2018/140943

Kogarah North Precinct

Class 1 appeal against deemed refusal of DA2017/0438 for demolition of existing structures and construction of a part twelve (12) part thirteen (13) storey residential flat building development with three (3) levels of basement car parking.

Matter listed for first directions hearing on 1 June 2018.  External experts for planning, urban design and traffic have been retained.

$0

27

12 John Street, Kogarah Bay

 

Applicant: C A A E Consulting Pty Limited

 

Proceedings No: 2018/168099

Class 1 appeal against deemed refusal of DA2017/0595 for demolition of existing structures and construction of attached 1 and 2 storey dual occupancy with pools to each dwelling and Torrens title subdivision.

Matter listed for first directions hearing on 27 June 2018.

$0

 

Subtotal

 

 

$360,175.50

Land and Environment Court Proceedings – Class 4 Proceedings

1

117 Kyle Parade, Kyle Bay

 

Parties: Michael Stanley Lowe

 

Proceedings No. 127157 of 2017

Class 4 proceedings commenced (arising from Meet the Administrator community sessions) in relation to the long standing issue of the removal of a crane

Matter heard 16 and 17 October 2017.  Orders made for crane to be removed by 17 April 2018 and costs of $30,000 to be paid by 17 February 2018.  Costs received.  Respondent has complied with the Court orders.  Matter is now complete.

$19,054.00

2

977 Forest Road, Lugarno

 

Parties: The Congregational Christian Church in Samoa, Parish of Sydney Incorporated and Taeipo Malifa

 

 

Proceedings No. 2018/23816

Proceedings commenced against Respondents for a declaration that the First and Second Respondents have each breached the Protection of the Environment Operations Act 1997 by failing to comply with prevention notices given to each of them under section 96 of that Act by Council.

 

Mediation on 2 occasions has failed to resolve noise issues.  Matter listed for directions on 1 June 2018.

$13,892.00

3

34 Milsop & 47 Jersey Avenue, Mortdale

 

Robert Stojanovski &

Steven Stojanovski

 

Proceedings No. 2018/99739

 

Proceedings commenced for unauthorised erection of structures and slabs, including habitation of structure at the premises.

Matter listed for hearing on 21 August 2018.

$6,341.00

Land and Environment Court Proceedings – Class 4 Proceedings (Contempt)

4

84D Roberts Avenue

MORTDALE

 

Parties:

 

Romanous Developments Pty Ltd

 

Proceedings No.

40883 of 2013

Court orders entered on 24 July 2015 for Class 4 proceedings requiring remediation works under supervision of independent site auditor.

 

Class 4 Proceedings for Contempt of Court commenced.

Respondent sought variation to complete works the subject of DAs for Wall and Drainage Works (as defined) which were to be completed in December 2017.    Respondents have repeatedly failed to comply with timeframes within the orders.  Contempt proceedings have been commenced.  Contempt now purged.  Matter discontinued with Respondent to pay Council’s costs.

$4,981.00

5

58 and 60 Blackshaw Avenue, Mortdale

 

Applicant: Marion McDowell and Associates

Proceedings No. 114546 of 2018

Contempt of Court proceedings arising out of continued use of premises as waste transfer station.

Evidence filed.  Matter listed for hearing on 14 August 2018.

$2,696.00

 

Subtotal

 

 

$46,964.00

Supreme Court

1

296 Forest Road and Diment Way, Hurstville

 

Applicant: Telado Pty Limited

 

Proceedings No. 299079 of 2017

Applicant seeks s88K order for property rights in perpetuity over Council land known as Central Plaza.

Evidence filed.  Mediation formerly fixed for 6 April 2018 now vacated following successful motion by Council (opposed by Applicant). Applicant has lodged a s96 modification application to delete conditions requiring easements.  Hearing dates vacated at Council’s request.

$90,087.00

 

Subtotal

 

 

$94,842.00

District Court

1

Proceedings commenced by former employee for work injury damages

 

StateCover has issued a response to the Work Injury Damages Claim declining liability.  Statecover has served pre-filing defence.  Awaiting advice from StateCover. Council has watching brief only.

$0 (StateCover funded)

 

Subtotal

 

 

$0

Local Court Proceedings

1

13-17 Peake Parade

PEAKHURST

 

Parties:

Oxford (NSW) Pty Ltd

Appeal against Penalty Notice for breaches of development consent. Defendant pleaded not guilty.

Defendant has been found guilty and judgment to be delivered on 4 June 2018.

$2,277.00

2-6

13-17 Peake Parade

PEAKHURST

 

Parties:

Oxford (NSW) Pty Ltd

Appeals against five Penalty Notices for breaches of development consent and one water pollution offence under POEO Act.

Defendant has been found guilty and judgment to be delivered on 4 June 2018.

$4,428.00

7

33 Robyn Street, Peakhurst Height and Gannons Park, Peakhurst Heights

 

Parties:

Hassan Abbas

Local Court prosecution for unlawful tree removal.

Matter was heard on 2 May 2018.  Conviction recorded with a fine of $450 and court costs of $450.

$6,300.00

8

8 Kimberley Road, Hurstville

 

Parties:

Petre Dimovski

Local Court prosecution for unlawful tree removal.

Matter was heard on 8 May 2018.  A conviction was recorded with matter adjourned for sentencing on 10 August 2018.

$0

 

Subtotal

 

 

$13,005.00

NSW Civil & Administrative Tribunal

1

Briscoe-Hough v Tegg & Ors

Gregory Briscoe-Hough v Warren Tegg, Constantine Hindi, Lupco Konjarski, Gavin Tennant & Greg Copson

Applicant has commenced proceedings alleging, “seeking the voiding of the election held on 9 September 2017 for the Mortdale Ward of Council due to electoral irregularities perpetrated by the Electoral Commission being of a nature that these defects strike at the entire election”.

Counci

A decision was handed down on 25 May 2018 with the application against the NSW Electoral Commissioner being dismissed. The applicant is to pay most of the costs of the second and third respondent and the Electoral Commissoner.  Applicant is appealing decision to the Supreme Court.

$0

 

Sub Total

 

 

$0

Costs Recovery

1

The Baptist Church Union of NSW and The Baptist Churches of NSW Property Trust

 

No. 83357 of 2017

 

Church has taken proceedings to  prevent gazettal of the acquisition notice relating to 4 – 6 Dora Street, Hurstville

Council was successful in resisting the Church’s injunction.  Property acquired by Council on 31 March 2017.  Costs initially agreed (approximately $40,000). However, the Church has now refused to pay Council’s costs.

Matter with costs assessor and awaiting receipt of determination.

$2,568.00

2

37 Boronia Street

KYLE BAY

 

Parties:

Mrs Megan McOnie

 

Proceedings No.

40940 of 2015

Class 4 commenced in relation to failing to comply with Council Notices/Orders relating to a non-compliant swimming pool fence, overgrown vegetation and unhealthy swimming pool water.

Court Orders in support of Council’s Notices/Orders made including costs.  Pool safety works to be completed and Mortgagee to sell property.  Council will seek to recover outstanding rates and costs upon sale. 

$0

3

977 Forest Road, Lugarno

 

Applicant: Congregational Christian Church Samoa Parish of Sydney

 

Proceedings No: 103967 of 2017

Class 1 Appeal against refusal of DA2015/0443 for a child care centre

Council successful in obtaining costs order for $1,200 following applicant’s application being out of time.  Costs recovery action being undertaken as payment has not been made, following refusal by the Church to pay.

$0

4

1 Arnold Street

PEAKHURST

 

Parties:

Mofeed Louis Tanious

 

Proceedings No.

2017/32320

 

Class 2 Land and Environment Court commencing in relation to failing to comply with Council Notices/Orders concerning keeping of poultry at the premises.  Orders upheld by Court with extension of time to comply to 25 April 2017.

Council was successful in resisting the applicant’s leave application to the Court of Appeal and High Court.  Matter raised with Minister and Local Member.

$1,350.00

 

Subtotal

 

 

$3,918.00

 

9.       The cost savings to date by virtue of S34 delegations are as follows:

 

Month (2017/18)

Savings

July

$0

August

$32,000

September

$32,000

October

$0

November

$0

December

$16,000

January

$16,000

February

$32,000

March

$0

April

$0

May

$16,000

 Total

$144,000

 

Financial Implications

10.    Within budget allocation.

 

File Reference

09/1077

 

 

 

  


Georges River Council – Finance and Governance Standing Committee Meeting -  Tuesday, 12 June 2018          Page 50

Item:                   FIN053-18          Audit, Risk and Improvement Committee Minutes from 30 October, 2017 

Author:              Internal Auditor

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation:

 

That Council note the Minutes of the Audit, Risk and Improvement Committee for 30 October 2017 provided as an attachment to this report.

 

 

Executive Summary

1.   Council’s Audit, Risk and Improvement Committee Charter provides in Cl 5.1 for the periodic reporting of Audit, Risk and Improvement Committee (ARIC) Minutes to the Council. The Charter provides for a time interval in between the ARIC meeting and the reporting of its minutes. The ARIC Committee met on 30 October 2017.

 

2.   The Minutes of the ARIC meeting held 30 October, 2017 were confirmed by ARIC at their meeting of 12 February 2018 and are now presented for Council’s information.

 

Background

3.   Council’s Audit, Risk and Improvement Committee Charter adopted by Council’s Finance and Governance Committee on 13 November 2017, provides in Cl 5.1 for the periodic reporting of Audit, Risk and Improvement Committee Minutes to the Council, as follows:

“The Committee shall report back to Council within a six (6) months period following each meeting. Summary reports may be presented to the Council. The report shall provide Council with the following as appropriate and applicable:

 

- Minutes of each meeting

- All significant issues which can be reported without prejudice to the audit function.

 

This provision is to permit the implementation of Committee recommendations in a reasonable window of confidentiality, to optimise the effectiveness of Committee actions.”

 

Financial Implications

4.   No budget impact for this report.

 

 File Reference

D17/195764

 

ATTACHMENTS

Attachment 1

Minutes - Audit, Risk and Improvement Committee 30 October 2017

 


Georges River Council - Ordinary Meeting - Tuesday, 12 June 2018

FIN053-18              Audit, Risk and Improvement Committee Minutes from 30 October, 2017

[Appendix 1]          Minutes - Audit, Risk and Improvement Committee 30 October 2017

 

 

Page 51

 

Audit, Risk and Improvement Committee

 

MINUTES OF MEETING

Monday, 30 October 2017

 

 

Present

Council Members

Councillor Warren Tegg (part)

Councillor Christina Wu (part)

Independent Members

Mr John Gordon (Chair) (JG)

Ms Elizabeth Gavey (EG)

Mr Stephen Horne (SH)

External Auditor

Ms Karen Taylor (KT),  Audit Office of NSW (AO) (part)

Council Staff

General Manager, Ms Gail Connolly (GC)

Chief Operating Officer, Ms Carole Todd (CT)

Director Transformation and Change, Ms Marissa Racomelara (MR)

Manager, Governance, Risk and Procurement, Ms Popy Mourgelas (PM)

Acting Manager Finance, Mr Francis Mangru (FM)

Coordinator Financial Reporting, Ms Carolyn Long (CL)

Internal Auditor, Mr Tony Gearon (TG)

 

 

Opening

Commencing at 3:05pm and immediately preceding the scheduled meeting, there was an “in camera” meeting between the whole Committee and the External Audit Manager, Karen Taylor. The “in camera” meeting closed at 3:40pm.

 

The Chair, John Gordon, opened the scheduled meeting at 3:45pm.

JG welcomed all in attendance and in particular the newly elected Councillor members, Cr Wu and Cr Tegg, noting that Cr Tegg had had to depart following the “in camera” session just concluded.

 

 

Apologies 

An apology was received from Cr Tegg, who had attended the earlier held  “in camera” meeting with the External Auditor.

Disclosures of Interests

There were no disclosures of Pecuniary Interests nor Conflicts of Interests made. As a matter of general interest for the Committee to note, JG advised the meeting that he has recently been appointed to the Audit and Risk Management Committee of the NSW Audit Office.

 

Minutes of previous meetings

Audit, Risk and Improvement Committee - 17 July 2017

Resolved

That the Minutes of the Audit, Risk and Improvement Committee held on 17 July 2017 be adopted with the agreed minor corrections.

 

Finance and Governance

JG advised that item AUD028 would be brought forward to this point on the agenda.

 

AUD028-17       Strategic and Formation Related Issues

(Report by Internal Auditor)

GC indicated the Client Service Report for the period to 30 June 2017, recently received from the NSW Audit Office and the subject of the “in camera” meeting held between KT and the Independent and Councillor Committee members, just prior to this meeting.  GC advised the meeting of the significant challenges faced by Council’s Finance team, in merging two organisational teams, two sets of accounts, two financial systems and records, to produce the Financial reports for the period ended 30 June 2017. She indicated that it was no surprise that there were delays in finalising the accounts. She noted  that every effort was being made to ensure that the reports were audited and forwarded to the Office of Local Government by the extended due date of 14 November.

GC informed the Committee of the matter related to the election of councillors in Mortdale ward and currently before the Administrative Decisions Tribunal.

Councillor CW left the meeting at 3:56pm

GC advised that the Finance team was undergoing restructuring to address professional requirements and that a “before and after” restructuring report would be submitted to a future meeting of the Committee.

GC advised of the programme for presentation of the Financial reports to the Council on November 27th and of the pre-meeting briefing of Councillors, about the Financial reports. GC requested JG or another member of ARIC attend that briefing, if necessary to indicate support for the process, noting that staff will be responding either immediately or on notice, to any questions about the reports.

GC requested that TG issue JG with a reminder about that briefing.

KT confirmed that she would give a brief presentation in  the Council meeting, on the conduct of the audit, by the AO.

JG indicated that he may request a further “in camera” meeting of the Committee with the AO, prior to the February Committee meeting when both KT and Carl Millington the contract auditor would be available.

JG offered to meet with Councillors if required, for any induction about the role of the ARIC.JG agreed with GC that with regard to disclosures of ARIC and relevant Committee memberships by Committee members, all Committee members would make a revised, complete disclosure of memberships once each year, generally at the time that Council’s Designated Officers are making their disclosures under S449 of the Act.

 

KT left the meeting at 4:04pm.

 

Resolved

1.   That the strategic and formation related Issues reported by the General Manager to the Committee be received and noted.

2.   That TG forward a reminder about the Councillor briefing of 27 November, to JG and KT.

3.   That with regard to disclosures of ARIC and relevant Committee memberships by Committee members, all Committee members would make a revised, complete disclosure of memberships once each year, generally at the time that Council’s Designated Officers are making their disclosures under S449 of the Act. TG is to issue a reminder.

 

 

AUD025-17       Draft Financial Reports for the period 12 May 2016 to 30 June 2017

(Report by Internal Auditor)

CT introduced FM and CL to explain the process of preparation of the Financial Statements and indicated that Council had rebuttals to make about some comments and observations made by the Auditor in the recently received draft Client Service Report.

FM  advised that the draft Client Service report was still being analysed by management and that they would be seeking correction of specific areas of the report with the AO.

JG advised that the immediate task is to resolve outstanding audit issues with auditor Carl Millington and ensure that the audit is completed and reports are lodged with the Office of Local Government by the deadline of 14 November. JG, SH and EG noted that the 2017 Financial Period/Year had been challenging for all councils undergoing Council amalgamations and transition of all NSW Local Government Councils’ audits to the AO during the year. Following finalisation of the Georges River Council audit, it is expected that management would de-brief with the AO and contract auditor, to examine lessons learned for all involved and to determine an improved process for 2018. 

 

Resolved

1.   That the Committee await the completion of the Financial statement and Audit reports and then consider the draft Reports, Financial Statements and Special Schedules “out of session” before determining if it can endorse those reports for presentation to the community, at the Ordinary Council meeting scheduled for 27 November 2017. TG to circulate marked-up Financial Statements, a summary of changes and final Client Service Report to ARIC members, for out of session endorsement when available.

 

2.   That the AO Conduct of the Audit Report and Management letter, will be further considered at the February 2018 Committee meeting. 

 

 

AUD026-17       Update on Civica security related concerns raised by Chair

(Report by Internal Auditor)

The Committee noted that there were no issues about CIVICA in the draft Client Service Report.

Resolved

(a)     That the information provided be received and noted;

(b)     That the Committee note the existence of an unspecified but remote degree of risk of unauthorised or inappropriate access to Council’s Civica system, during the period in which the audit trail was inoperative.

(c)     That the Committee note that there have been no consequences identified to date from the period of disability of the particular Civica access audit trail.

(d)    That a report on Council’s introduction and use of an activity log of Civica “Super Users” and defining who should examine this log, be submitted to the next meeting.

 

 

 

AUD027-17       External Audit Update

(Report by Internal Auditor)

Resolved

(a)     That the Committee note the information earlier provided “in camera” by KT, the AO Director of Audit and any implications for Council’s Audit Plan.

(b)     That the attached advice from the Auditor General related to auditing of Council entities be received and noted.

 

 

 

AUD028-17       Strategic and Formation Related Issues

(Report by Internal Auditor)

This item was dealt with at the beginning of the meeting.

 

 

AUD029-17       Government and ICAC sourced Information - Operation Ricco - Response by Georges River Council

(Report by Internal Auditor)

In response to a question from JG, TG advised that the EFTSure application and system were in operation at Council and were judged to be very effective as another line of defence against Accounts Payable system fraud.

JG requested an update of the EFTSure implementation to the February meeting.

JG requested a regular dashboard style summary of internal and external audit recommendations.

GC advised that there is to be a standing item on the agenda, for Senior management responses to Audit recommendations. TG noted that this agenda had been shortened to accommodate the Financial reports and that this standing item was on the February agenda. 

Resolved

That the ARIC receive and note this report, the recommendations adopted by Council’s Executive team and the actions taken by Council in implementing EFTsure assurance, to improve security over Council’s Vendor Master File.

 

 

AUD030-17       Assessment of ARIC performance

(Report by Internal Auditor)

Resolved

That this Self-assessment be completed by members and returned by 30th November to the Internal Auditor, to be summarised in an MS Word document, accompanied by a report including any recommendations arising from this assessment process, to the next committee meeting of 12 February 2018. Following this, the outcomes will be reported to a meeting of the Council, as provided by Section 2.4 of the Committee Charter.

 

 

 

AUD031-17       Fraud and Corruption Control Plan

(Report by Governance Officer)

JG indicated that it was pleasing to see that the plan mentions and deals with both “fraud” and “corruption”.  He expressed general satisfaction with the document, subject to some small detail improvements.

He noted that there was some inconsistency with terminology around staff or management or Councillors or officials description and that the document may benefit from a review for consistency and a Glossary of Terms.  

SH indicated that the Fraud and Corruption control Plan all turns on a comprehensive Risk assessment, which we have not yet completed. He further noted that to his knowledge Council has not yet done a specific fraud risk assessment.  

TG indicated that a Risk assessment report was deferred  to allow for the Financial reports to come to this meeting.

MR explained that the Enterprise Risk Management Strategy progress report will be circulated out of session and comments are requested by 10 November. The report will be presented to the 21 November Executive Team Meeting.

The Committee noted the need for staff awareness training and an associated checklist.

Resolved

That the ARIC endorses the attached, draft Fraud and Corruption Control Plan and will respond by Friday, 10 November by email to the Internal Auditor, with any feedback and the Committee’s in-principle endorsement of the Enterprise Risk Management Strategy progress report , to be circulated on the Portal.

 

  

AUD032-17       General Business

                            (Report by Internal Auditor)

TG advised the Committee of the upcoming Local Government Internal Audit Forum conducted by the Institute of internal Auditors (IIA) at the SMC Conference Centre Sydney, on Wednesday 8 and Thursday 9 November 2017. Committee members and TG indicated that they would be attending one or both days.

JG enquired whether members could be included in Council’s system for advising Councillors etc. of matters coming to the attention of the media.  CT is to add Committee members’ names to the mail-out list for such information.

 

 

 

Conclusion

The Meeting was closed at 5:50pm

 

 

 

 

J.A. Gordon

Chairperson

 

 

 

D17/193439


Georges River Council – Finance and Governance Standing Committee Meeting -  Tuesday, 12 June 2018          Page 57

Item:                   FIN054-18          Stronger Communities Funding Update 

Author:              Manager Community & Cultural Development

Directorate:      Community and Culture

Matter Type:     Committee Reports

 

 

 

Recommendation:

 

(a)     That Council receive and note the Stronger Communities Fund projects as listed in this report.

 

(b)     That Council continue to receive regular reports, on a half-yearly basis, on the progress of the Stronger Communities Fund projects to ensure that both Council and the public are kept informed on the progress of each project until completed.

 

 

Executive Summary

1.      The Stronger Communities Fund was established by the NSW Government to provide merged councils with funding for the delivery of projects that improve community infrastructure and services.

 

2.      The program was divided into two categories:

a)      Community Grants Program – allocation of $1 million in grants to community organisations for projects that build vibrant local communities. These funds have already been allocated by Council to community organisations and were the subject of a report presented to Council at its meeting held on Monday 7 November 2016.

 

b)      Major Project Program – allocation of $9 million to larger scale priority infrastructure and services that deliver long term economic and social benefits to communities.

 

Background

3.      Council’s commitment was to fund projects that delivered new or improved infrastructure or services to the community that met the following criteria. Projects that:

·        have been through a community consultation process;

·        demonstrate a social and/or economic benefit to the community;

·        consideration to issues of sustainability and equity across the broader community have taken place;

·        demonstrate project feasibility and value for money, including full life cycle costs;

·        do not have funds allocated by the former Kogarah or Hurstville Councils;

·        have given consideration to the processes and procedures outlined in the capital expenditure review guidelines issued by the Office of Local Government.

 

Community Grants Program

4.      The Lugarno Progress Association (LPA) has withdrawn its application for $50,000 grant funding under the Community Grants Program for construction of the Willsher Pavilion in Evatt Park, Lugarno. The General Manager contacted the LPA on 9 May 2018 to request the return of unspent grant funds, including any interest accrued. Stronger Community Fund Panel Members will subsequently be contacted to determine how to re-allocate the funds to the next most suitable non-funded application from 2016/17.

 

5.      Progress updates for projects under the Community Grants Program to 31 December 2017 are listed below. As grant recipients report 6-monthly, progress to 30 June 2018 will be reflected in the next report:

 

Funded organisation

Project name

 Amount

 Expenditure as at 31/12/2017

% completion

Australian Kookaburra Kids Foundation

Helping Vulnerable Kids Living in Families Affected by Mental Illness project.

$  50,000.00

 $ 22,985.00

 26-50%

3Bridges, The IDF of St George, Sunnyhaven and Civic

Inclusive Volunteering Program for People with a Disability.

$  50,000.00

 $ 12,500.00

 26-50%

CanRevive Inc

Cancer Awareness Project for the Chinese Community.

$  50,000.00

 $ 33,734.00

 51-75%

ProjectYouth

Outreach Project.

$  50,000.00

 $ 29,511.30

 51-75%

The Kogarah Storehouse

Kitchen Upgrade

$ 50,000.00

 $ 5,000.00

 0-25%

Kogarah Community Services

The Year of Yes (YOY).

$ 49,625.00

 $ 8,303.70

 0-25%

Verge Collaborative Limited

Ignition and Beyond

$  31,625.00

 $ 19,073.55

 51-75%

Resourceful Australian Indian Network Inc. (completed)

RAIN Centre Enhancement with Storage Outfits.

$ 19,250.00

$19,250.00

 100%

St George Creative Art & Craft Centre

Interior refurbishment of the St George Creative Art & Craft Centre in Penshurst.

$ 46,590.00

 $ 41,762.94

 76-100%

Shopfront Arts Co. Op. Ltd. (completed)

Recording Studio Upgrade

$  44,700.00

 $ 44,700.00

 100%

Jubilee Community Services Inc

Mental Health Arts Development (MHAD) Program.

 $ 21,800.00

 $ 15,414.46

 51-75%

Fiestaville Multicultural Arts

Fiestaville Multicultural Community Choir

$  21,000.00

 $ 15,000.00

 51-75%

Janaranjani

Website and Technology

 $ 20,800.00

 $ 15,862.00

 76-100%

Australian Macedonian Theatre of Sydney Inc (completed)

Theatre

$ 15,000.00

$ 15,000.00

100%

St George Arts and Entertainment Centre Inc (completed)

Timothy Reserve Softfall and Shade

$50,000.00

$50,000.00

100%

Lugarno Progress Association Inc.

covered pavilion in H.V Evatt Park

$ 50,000.00

 $                   -  

 Withdrawn

Beverley Park Golf Club Limited

Tree removal

$ 50,000.00

 $ 29,177.00

 51-75%

OFFCS Inc with Oatley Heritage and History Society; Lugarno Progress Association; Menai Wildflower Group and Friends of Oatley

Oatley Castle

$ 30,000.00

 $                   -  

 26-50%

Oatley Flora and Fauna Conservation Society Inc (OFFCS)
(
completed)

Myra Wall Garden

$30,000.00

$30,000.00

100%

Jubilee Community Services Inc with Outreach St George TAFE and Georges River College - Oatley Campus

Gardening/Volunteering Project.

$ 11,460.00

 $ 3,920.40

 51-75%

Renown United Sports Club Inc

Renown Park Amenities Block

$ 50,000.00

 $                   -  

 0-25%

NSW Cycling
(completed)

Resurfacing of Hurstville Oval Velodrome

$50,000.00

$50,000.00

100%

St George Cycling Club (completed)

Resurfacing of Hurstville Oval Velodrome

$50,000.00

$50,000.00

100%

Oatley RSL Soccer

The redevelopment of existing amenities block at Renown Park, Mortdale.

$ 50,000.00

 $                   -  

 0-25%

Old Park Netball Association Inc (completed)

Olds Park Penshurst

$30,000.00

$30,000.00

100%

Connells Point Rovers Football Club (completed)

Poulton Park.

$ 18,151.00

 $ 18,151.00

 100%

St Joseph's Riverwood Sports Club

Equipment

$ 10,000.00

 $ 4,822.40

 26-50%

 

Major Project Program

6.      Projects under the Major Project Program adopted by Council to be built and funded by the Stronger Communities Fund meet the State Government’s criteria. A list of projects and expenditure to date are listed below:

 

Project Name

Estimated Costs

Expenditure as at 24/05/2018

Status

Community Amenities Building – Peakhurst Park (Eastern end), Peakhurst

$800,000

$18,513

Tenders closed – currently assessing tender submissions with a report to be tabled to the June Council Meeting

Gannons Park Stormwater Harvesting & Irrigation Project, Peakhurst Heights

$1,000,000

$22,805

Stage 1 currently underway and due to be completed late June 2018

Community Amenities Building – Riverwood Park, Riverwood

$800,000

$685

Tenders closed – currently assessing tender submissions with a report to be tabled to the June Council Meeting

Community Amenities Buildings – Renown Park, Peakhurst

$1,200,000

$49,697

Tender report tabled to the May Council Meeting. Construction to commence late June 2018

New or upgraded public toilet facilities at Oatley Memorial Gardens – including disabled toilet

$250,000

$13,698

Tender report tabled to the May Council Meeting. Construction to commence late June 2018

Community Pavilion Amenities Building – Harold Fraser Oval, Kogarah Bay

$1,100,000

$107,723

Tender report tabled to the May Council Meeting. New tender to be called in late June 2018

New Public Toilet Facilities – Carss Bush Park, Carss Park

$350,000

$12,672

Tenders closed mid-May – currently assessing tender submissions with a report to be tabled to the June Council Meeting

Georges River Aquatic Facilities Refurbishment Program – Sans Souci Pool

$1,000,000

$118,466

Sans Souci Pool Refurbishment works currently underway including 50m and toddler pools, new plant room and new amenities. Completion due September 2018

Sports Amenities Building – Claydon Reserve

$600,000

$287

Tenders closed – currently assessing tender submissions with a report to be tabled to the July Council Meeting

Customer Service Hubs (Stage 1: Kogarah Library – roof replacement, customer service one-stop-shop and technology upgrade; Stage 2: public Wi-Fi in Kogarah, Beverley Hills and Riverwood Town Centres; Stage 3: Roll-out of Wi-Fi in other town centres)

$1,500,000

$32,896

Kogarah Library Roof replacement commenced 23/05/2018

Expected completion mid-August.

Architectural designs for upgrade of Hurstville Service Centre and Kogarah Library Service Centre completed.

CDC is lodged with Council. Approval expected week ending 08/06/2018.

Tender process for demolition and construction – will occur between June-July.

Report to August Council Meeting for approval of preferred Tenderer.

Stage one expected for completion December 2018.

 

 

 

Town Centres’ Place-Making and Economic Development Program (Public domain works, job expo, business attraction and investment, activation of centres, retail strategy, footway dining projects, shop-front makeovers and easy-to-do-business program)

$1,100,000

$144,742

Funding from the Stronger Communities Fund has been made available to develop a Place Making Works Program for our centres, as well as centre beautification works, a Masterplan for Beverly Hills and an Economic Development Strategy.  Place Making Works Program has included ‘The Big Wash’ Hurstville, Kogarah ‘noons with Tunes’ and Hurstville Makeover Month.

Shade Structure – Carss Cottage Museum Carss Bush Park

$40,000

$40,000

Completed

 

7.      Completion of all projects must occur before 31 December 2019.

Financial Implications

8.      The listed Major Projects will be funded by the $9m Stronger Communities Grant Funding – Major Projects Program. Any additional funding will be funded from Council’s Asset Reserve, as the cost estimates for projects that have not yet commenced are preliminary only. Council will be advised of any additional funds needed.

Community Engagement

9.      Community engagement was conducted to select the projects during the initial stages, which included the following: letters to community groups, Stronger Communities Fund Panel and the Implementation Advisory Committee; weekly advertisements in the local newspaper; Council’s website and social media platforms. The community consultation period was from 14 December 2016 to 17 February 2017.

 

File Reference

D18/109594

 

 

 

  


Georges River Council – Finance and Governance Standing Committee Meeting -  Tuesday, 12 June 2018          Page 63

Item:                   FIN055-18          Investment Report as at 30 April 2018 

Author:              Coordinator Systems, Revenue and Analysis

Directorate:      Office of the Chief Operating Officer

Matter Type:     Committee Reports

 

 

 

Recommendation

That Council receives and notes the Investment Reports as at 31 March 2018 and 30 April 2018.

 

Executive Summary

1.   This report details Council’s performance of its investment portfolio for March and April 2018 and compares it against key benchmarks.  The report includes the estimated market valuation of Council’s investment portfolio, loan liabilities and an update on Council’s legal action against various parties.

2.   As at 31 March 2018, Council’s annualised rate of return is 2.99%, which is 1.26% above benchmark. Income from interest on investments totalled $4,188M, which is $506k above 2017/18 year-to-date adopted budget of $3,682M.

3.   As at 30 April 2018, Council’s annualised rate of return is 3.03%, which is 1.28% above benchmark. Income from interest on investments totals $4,580M, which is $496k above 2017/18 year-to-date adopted budget of $4,084M.

Background

4.   Council’s Responsible Accounting Officer is required to report monthly on Council’s Investment Portfolio and certify that the Investments are held in accordance with Council’s Investment Policy and Section 625 of the Local Government Act. This report contains both March and April’s Investment Portfolio report.

Investment Performance Commentary

5.   Council’s performance against the benchmark for returns of its investment portfolio for March and April 2018, was as follows:

 

 

March 2018

April 2018

 

1 Month

3 Month

12 Month

1 Month

3 Month

12 Month

Portfolio Performance

0.16%

0.63%

2.99%

0.22%

0.58%

3.03%

Performance Index

0.14%

0.43%

1.73%

0.16%

0.44%

1.75%

Excess

0.02%

0.20%

1.26%

0.06%

0.14%

1.28%

Notes:                                                      

·    Portfolio performance is the rate of return of the portfolio over the specified period.

·    The Performance Index is the rate of return of the market (comparable securities) over the specified period.                                  

·    Excess performance is the rate of return of the portfolio in excess of the Performance Index.

 

6.   Council’s investment portfolio as at the end of March 2018 and April 2018 was as follows:

 

March 2018

April 2018

Security Type

Market Value $000's

% Total
Value

Market Value $000's

% Total
Value

Cash at Bank

3,913

2.04%

4,565

2.47%

11am Cash

9,027

4.72%

 6,103

3.28%

31 Day Notice Account

22

0.01%

 22

0.01%

Flexi Deposit (Fix/Float)

5,016

2.62%

 5,000

2.71%

Floating Rate Deposit

5,005

2.61%

 5,000

2.71%

Floating Rate Note

65,426

34.18%

 66,451

35.98%

Floating Rate TCD

3,537

1.85%

 3,537

1.92%

Term Deposit

93,454

48.83%

 88,041

47.67%

Managed Funds Trust

5,997

3.13%

 5,997

3.25%

Total Cash and Investments

191,397

100.00%

 184,716

100.00%

 

7.   At the end of February 2018, Total Cash and Investments were $198.67M and have decreased by $7.28M at the end of March 2018 as a result of operational expenditure.

8.   At the end of March 2018, Total Cash and Investments were $191.39M and have decreased by $6.68M at the end of April 2018 as a result of operational expenditure.

9.   Council continues to utilise the Federal Government’s current guarantee ($250k) investing in Term Deposits with a range of Authorised Deposit Taking Institutions (ADI’s) on short to medium term investments (generally 30 days to 180 days maturity) where more competitive rates are available.

 

Legal Issues

10. Nil.

Loan Liability

11. Council’s loan liability as at 30 April 2018 was $2.25m which represents the balance of a $5m ten (10) year loan drawn down on 16 November 2012 for Jubilee Park upgrade in Mortdale. Next repayment of $125k is due 28 June 2018.

The outstanding balance on this facility is at a variable interest of 194 basis points over three month BBSW. At the current three month BBSW rate, the interest rate payable is 4% pa.

12. Council receives a 4% p.a. subsidy under the NSW Government’s Local Infrastructure Renewal Scheme funding agreement for this Jubilee Park upgrade facility. It is intended to continue this financially-advantageous arrangement through to full term in 2022.

Policy Limits

13. The following graph shows the limits as a percentage of total cash investments of the          amount by periods, as allowed under Council’s policy, and comparing them to the amounts actually invested, as a percentage of the total cash investments.

 

14. It shows that the funds invested are within the limits set in the Investment Policy.

 

 

Investment Income

15.    As at 31 March 2018, Income from interest on investments totals $4.19M which is $506k above 2017/18 year-to-date adopted budget of $3.68M.

          As at 30 April 2018, Income from interest on investments totals $4.58M which is $496k above 2017/18 year-to-date adopted budget of $4.08M.

Certificate by Chief Operating Officer (Responsible Accounting Officer): David Tuxford

16.    Investments have been made in accordance with the Local Government Act, Minister’s Guidelines, Regulations and Council’s Investment Policy.

Analysis of Investments

Investment Duration – April 2018

Investment Term

Market Value ‘000

% Total Value

Policy Limits

0 to < Year

59,248

32.08%

100%

1 to < 3 Years

105,187

56.95%

70%

3 to < 5 Years

20,281

10.98%

50%

Portfolio Total

184,716

100.00%

 

 

17.  Council’s portfolio is liquid, with 32.08% of assets maturing within 12 months. FRNs, funds and fixed bonds also provide additional liquidity in an emergency.

 

18.    The following graphs show analysis of the total cash investment by Institution:

 

 

Type of Investments

 

19.    Council’s investment portfolio is mainly directed to fixed term deposits, which account for approximately 50% of total investments. Yields have steadily contracted, while tracking bond market volatility in the short term.

20.    Bank Floating Rate Notes (FRN) offer liquidity and a higher rate of income accrual, which is highly recommended by our Investment Advisors (CPG Research & Advisory) going forward.

21.    The following are the types of investments held by Council:

a)      Cash & Call Accounts refer to funds held at a financial institution and can be recalled by Council either same day or on an overnight basis.

b)      A Floating Rate Note (FRN) is a debt security issued by a company with a variable interest rate. This can either be issued as Certificates of Deposit (CD) or as Medium Term Notes (MTN). The interest rate can be either fixed or floating, where the adjustments to the interest rate are usually made quarterly and are tied to a certain money market index such as the Bank Bill Swap Rate.

c)      A Fixed Term Deposit is a debt security issued by a company with a fixed interest rate over the term of the deposit.

d)      A managed fund is a professionally managed investment portfolio that individual investors can buy into, purchasing 'units' rather than shares. Each managed fund has a specific investment objective. This is usually based around the different asset classes (cash, fixed interest, property and shares). The money you invest is used to buy assets in line with this investment objective. When you invest in a managed fund, you are allocated a number of 'units'. The value of your units is calculated on a daily basis and changes as the market value of the assets in the fund rises and falls.

These managed funds have been grandfathered since the NSW State Government changed the list of Approved Investments as a result of the Cole enquiry (which was reflected in the Ministerial Order dated 31/7/2008).

 

 

Credit Rating

22.    Credit ratings are generally a statement as to an institution’s credit quality. Ratings ranging from A1+ to NR (Short Term) & AAA to NR (long term) are considered investment grade.

23.    A general guide as to the meaning of each credit rating that Council deals with is as follows:

Short-term

A1+: the best quality companies, reliable and stable. An obligor has extremely strong capacity to meet its financial commitments.

A1:    Adequate capacity to meet financial commitments, many positive investments attributes but also elements susceptible to adverse effects of changes in economic conditions.

A2:    Adequate capacity to meet financial commitments, but also speculative or lack of protection against changes of economic conditions.

B1:    Moderate characteristic capacity to meet financial commitments, also in good economic conditions.

Unrated:    This category includes unrated Authorised Deposit-Taking Institutions (ADI’s) such as some Credit Unions and Building Societies to the extent not Commonwealth-guaranteed. No rating has been requested, or there is insufficient information on which to base a rating.    

Long-term

AAA: the best quality companies, reliable and stable. An obligor has extremely strong capacity to meet its financial commitments.

AA:   quality companies, a bit higher risk than AAA. An obligor has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree.

A:      economic situation can affect finance. An obligor has strong capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories.

BBB: medium class companies, which are satisfactory at the moment. An obligor has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.

Unrated:  This category includes unrated Authorised Deposit-Taking Institutions (ADI’s) such as some Credit Unions and Building Societies to the extent not Commonwealth-guaranteed. No rating has been requested, or there is insufficient information on which to base a rating.

24.    The credit quality of Council’s portfolio is relatively high with approximately 68% of assets rated ‘A’ or higher. The ‘AAA’ assets represent the deposit investments covered by the Federal Government’s Financial Claims Scheme (FCS).

25.    The remaining 32% rated ‘BBB’ or ‘unrated’ reflects the deposit and Floating Rate Notes (FRN) investments with the regional and unrated ADIs.

Council’s Investment Powers

26.    Council’s investment powers are regulated by Section 625 of the Local Government Act, which states:

·    A council may invest money that is not, for the time being, required by the council for any other purpose.

·    Money may be invested only in a form of investment notified by order of the Minister published in the Gazette.

·    An order of the Minister notifying a form of investment for the purposes of this section must not be made without the approval of the Treasurer.

·    The acquisition, in accordance with section 358, of a controlling interest in a corporation or an entity within the meaning of that section is not an investment for the purposes of this section.

 

27.    Council’s investment policy and strategy requires that all investments are to be made in accordance with:

·    Local Government Act 1993 – Section 625

·    Local Government Act 1993 – Order (of the Minister) dated 12 January 2011

·    The Trustee Amendment (Discretionary Investments) Act 1997 – Sections 14A (2), 14C (1) & (2)

·    Local Government (Financial Management) Regulation 1993

·    Investment Guidelines issued by the Department of Local Government

 

Financial Implications

28.    Within budget allocation.

 

File Reference

D18/114577

 

 

 

ATTACHMENTS

Attachment 1

Investment Portfolio as at 31 March 2018

Attachment 2

Investment Portfolio as at 30 April 2018

 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN055-18              Investment Report as at 30 April 2018

[Appendix 1]          Investment Portfolio as at 31 March 2018

 

 

Page 70

 


 


 


 


 


 


 


 


 


Georges River Council - Finance and Governance Standing Committee Meeting - Tuesday, 12 June 2018

FIN055-18              Investment Report as at 30 April 2018

[Appendix 2]          Investment Portfolio as at 30 April 2018

 

 

Page 79