Finance and Governance Committee

Notice of Meeting

Monday, 10 September 2018

 

 

 

 

A meeting of the Finance and Governance Committee will be held at 6.00pm on Monday, 10 September 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

5.      Confidential items

 


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 2

Finance and Governance Committee Meeting

Summary of Items

Monday, 10 September 2018

 

Previous Minutes

MINUTES: Finance and Governance - 13 August 2018  

Committee Reports

FIN069-18         Provision of Additional Annual Leave (Grant Days) in 2018 - 2021 During the Festive Period

(Report by Executive Manager People and Culture)............................................... 3

FIN070-18         Delegations to the General Manager

(Report by Manager Governance and Risk).............................................................. 8

FIN071-18         2018-19 Chief and Senior Executive Service - Annual Determination

(Report by Executive Manager People and Culture)............................................. 12

FIN072-18         Property Matter - Proposed Disposal of Surplus Land - 21a Queens Road Connells Point, Lot E in DP373733

(Report by Strategic Property Specialist)................................................................. 24

FIN073-18         Audit, Risk and Improvement Committee Minutes from 4 June 2018

(Report by Internal Auditor)........................................................................................ 28

FIN074-18         Audit, Risk and Improvement Committee Independent Member Appointment Extension

(Report by Internal Auditor)........................................................................................ 35

FIN075-18         Advice on Costs and Status of Council's Court Proceedings - August 2018

(Report by General Counsel)..................................................................................... 37

FIN076-18         Draft Georges River Council Loan Borrowing Policy

(Report by Coordinator Financial Management).................................................... 50

FIN077-18         2017/18 Budget Expenditure Carry Over Requests

(Report by Coordinator Financial Management).................................................... 59

FIN078-18         Investment Report as at 31 July 2018

(Report by Financial  Accounting Officer)............................................................... 63

FIN079-18         Property and Rating Integration Project Closure Report

(Report by Project Manager)...................................................................................... 79  

Confidential (Closed Session)

FIN004A-18       Property Matter - Former Kogarah Council Civic Centre Building, 2 Belgrave Street Kogarah

(Report by Head of Strategic Property)  

Committee Reports

Item:                   FIN069-18          Provision of Additional Annual Leave (Grant Days) in 2018 - 2021 During the Festive Period 

Author:              Executive Manager People and Culture

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

 

Recommendation:

That Council consider the preferred options for additional staff annual leave during the festive period (Christmas and New Year) as identified in this report and adopt the option to be implemented for the period December 2018 through to June 2021.  

 

 

Executive Summary

1.      In 2017 Council resolved to provide eligible Council staff with three days of additional annual leave (traditionally known as ‘grant days’) to be taken within the festive period. Council further resolved that the General Manager explore options for the provision of leave for staff during the close down period for Christmas and New Year 2018.

2.      The cost to ratepayers of providing three additional annual leave days to all eligible staff between Christmas and New Year in 2018 is approximately $535,000 (an increase of approximately $40,000 over 2017 costs).

3.      This practice of providing additional annual leave days exceeds the leave provisions provided to staff under the Local Government State Award 2017. 

4.      As it is not an automatic entitlement and does not form part of employees’ terms and conditions of employment, it requires a Council resolution to vary Council’s workforce policy to increase employees’ annual leave from 20 days to 23 days in any given year.

5.      Council’s adopted Long Term Financial Plan indicates a negative or downward trending financial result from 2021-22 onwards as a result of the expiration of the former Hurstville Council’s Special Rate Variation. This expiration has an adverse compounding effect that sees an exponential rise in Council’s operating deficit from 2021. The cost of providing additional annual leave days to all employees in the period leading up to 2021 will be more than $1.6 million.

6.      Council has resolved to take strategic action to address the emerging deficit (a rates restructure) and is committed to improving the financial strength of the organisation. However, sustaining operations through informed decision-making enables Council to continue providing services, not just at existing standards, but at enhanced levels to ultimately benefit its community.

 

Background

7.      Traditionally both former Councils have closed to the public for a period of three days between Christmas and New Year. Both former Councils provided staff with three paid annual leave days to cover this period in addition to staff Award entitlements.  Additional annual leave was also granted by Georges River Council during the Christmas 2017/18 period.

8.      Staff that are required to work during this period have previously received three leave days to take at a later date. Council maintains appropriate staffing levels to meet the community’s needs, particularly in the engineering operations and waste areas.

9.      Many areas of service have customised hours of work around this time, including services such as libraries, customer service, childcare centres and outdoor operations.

Proposed 2018 Leave Options

10.    In order of preference, the following options are provided for Council’s consideration on the provision of additional leave days for eligible staff  for the 2018 festive period and beyond:

 

11.    Option 1 – Transitional Arrangement

 

Implement a transitional arrangement in relation to additional annual leave days for eligible Council staff over the next three festive seasons commencing in 2018 as follows:

i.       Three additional annual leave days would be provided during the
2018 - 2019 festive period;

ii.      Two additional annual leave days would be provided during the
2019 - 2020 festive; and

iii.     One additional annual leave day would be provided during the
2020 - 2021 festive period.

iv.     For the 2021 - 2022 festive period and beyond, a report will be provided to Council recommending additional annual leave days cease and staff to use their own leave entitlements, RDO or flexi accrual for all leave during the festive periods from 2021 - 2022 onwards (a similar approach to that adopted by some Unions).

 

(Option 1: estimated cost is $1.1 million)

 

12.    Option 2 – Maintain Additional Leave Days Only Until 2021

 

i.       To continue to provide three additional annual leave days to eligible staff in each festive period through to June 2021;

ii.      For the 2021 - 2022 festive period a report will be provided to Council recommending additional annual leave days cease and staff to use their own leave entitlements, RDO or flexi accrual for all leave during the festive periods from 2021 - 2022 onwards (a similar approach to that adopted by some Unions).

(Option 2: estimated cost is $1.6 million)

 

 

13.    Option 3 – Staff to Use Flexi-time/RDO Arrangements


Commencing in 2018, adjust Council’s flexible working hour’s policy to allow staff to increase their maximum accrual from 10 hours to 21 hours of flexi-time. The extended accrual period will commence from 1 November each year.  Additional accrual must be used during the annual festive season otherwise forfeited. In this option staff on a rostered day off (RDO) system will have the ability to extend their shifts to accrue RDO leave for this period. This is a similar approach to that currently adopted by some Unions.

 

(Option 3: estimated cost is $0)



14.    Option 4 – Cessation of Additional Annual Leave Days


Commencing in 2018, Council not provide eligible staff with any additional annual leave days during the festive period.  (The usual annual leave, long service and flexi-leave/RDO arrangements would apply).

 

(Option 4: estimated cost is $0)



15.    Option 5 – Grandfather Arrangements for Existing Employees


Commencing in 2018, Council ‘grandfather’ this above-Award benefit/advantage for current eligible staff.  Effective immediately, new staff commencing with Council will not be eligible to receive the additional three annual leave days (which is likely to be considered highly inequitable by new employees with resultant impacts on staff morale).  With consideration to current rates of natural attrition and increasing employment costs this option in perpetuity is expected to be an annual cost of more than $500,000.

16.    Council officers have advised the Staff Consultative Committee and relevant Unions of these options.

Current Above-Award Benefits and Advantages

17.    Council currently provides an annual program of additional benefits to all employees which extend beyond current Award entitlements. These additional benefits and advantages are valued at over $1.5 million per year as shown in Table 1.

18.    Whilst this is discretionary expenditure, it is considered that these benefits provide value for money to Georges River Council as they contribute towards increased productivity, reduced sick leave and workers compensation claims, higher morale and improved organisational culture.  They also assist in the attraction and retention of high calibre staff as Georges River Council is now regarded as an employer of choice in the sector.

Summary of Above-Award Benefits (Table 1)

ENTITLEMENT/ PROGRAM

ANNUAL COST TO COUNCIL

Three additional annual leave days provided to full time and part time (pro rata) staff during the festive period.

$535,000

Annual Health and Well Being Fair

$30,000

Annual All Staff Corporate Governance and Engagement Conference – River Run

$100,000

Annual preventative health program. Flu Shots and Skin Cancer Checks.

$33,841

Fitness Passport Implementation and Management

$10,400

Monthly communication BBQs for Depot staff

$3,600

Apprentice and traineeship program

$174,000

Employee Assistance Program

$5,000

Annual Learning and Development program

$450,000

Recognition of Length of Service

$10,000

Rewards and Recognition Program

$10,000

Safety Innovation Fund (allocation of received insurer high performance incentive funding)

$100,000

Operational staff Winter Warm-Up Program

$30,000

Study Assistance

$20,000

Total     

$1,511,841

 

Other Councils’ Annual Leave (Grant Day) Policies 2018  (Table 2)

COUNCIL

PROCESS

Bayside

Yes

3 days incorporated into a local Council Agreement.

Blacktown

Yes

3 days

Canterbury-Bankstown

No

 

Inner West

Unknown

Not yet decided

Randwick

No

No grant days.  However, 3 additional days are included in a local agreement being a total of 23 days per year.

Waverley

Yes

3 industrial days. Staff on probation/disciplinary action are not entitled to access them.

Liverpool

No

Ryde

Yes

3 days

Parramatta

Yes

3 days

The Hills

No

Penrith

Yes

2 days provided only if 1 day is worked, otherwise annual leave to be taken for the whole period

Sutherland

No

No grant days.  However, 7 days of additional personal leave are already provided via a local agreement.

 

Financial Implications

19.    The approximate cost for the three additional annual days of paid leave during the festive period for 2018 is $535,000.

Risk Implications

20.    Potential risk of a reduction in staff morale and equity with the removal or grandfathering of grant days.

 

File Reference

17/2895         

 

 

 

  


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 7

Item:                   FIN070-18          Delegations to the General Manager 

Author:              Manager Governance and Risk

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

 

Recommendation:

(a)     That Council revoke all previous delegations granted to the General Manager by the           Administrator on 6 June 2016.  

(b)     That Council, in accordance with clause 131(2) of the Local Government (General)    Regulation 2005, fix the amount of rates and charges at $10,000, above which any      individual rate or charge may be written off only by resolution of the Council, equal to and        below that amount can be written off by the General Manager.

(c)     That Council, in accordance with clause 213(3) of the Local Government (General)    Regulation 2005, fix the amount of debts at $10,000, above which any individual debt to      Council may be written off only by resolution of the Council, equal to and below that amount can be written off by the General Manager.

(d)     That Council, in accordance with section 380 of the Local Government Act 1993, delegate           to the General Manager the General Manager’s Delegations (Instrument of Delegation)      as attached to this report.

 

 

Executive Summary

1.      It is proposed to revoke all the delegations granted to the General Manager by the Administrator on 6 June 2016, and to adopt revised delegations, taking into account recent legislative changes to the Local Government Act 1993 (the Act), the Local Government (General) Regulation 2005 (the Regulation), Environmental Planning and Assessment Act 1979 and the Crown Lands Management Act 2016.

2.      Council, by resolution, may delegate to the General Manager any of the functions of the Council as declared in section 377 the Act, other than the functions listed under section 377(1) of the Act.

3.      In accordance with clause 131(1) of the Regulation, Council must, from time to time, by resolution, fix the amount of rates and charges above which any individual rate or charge may be written off only by resolution of Council. An amount of rates or charges of or below that amount can be written off by the General Manager - clause 131(2) of the Regulation.

4.      In accordance with clause 213(2) of the Regulation, Council must, from time to time, by resolution, fix an amount above which debts to Council may be written off only by resolution of Council. A debt of or below that amount can be written off by the General Manager – clause 213(3) of the Regulation.

Background

5.      In accordance with section 380 of the Act, Council must review all its delegations during the first 12 months of each term of office. A comprehensive review has now taken place, which has included an external legal review by Lindsay Taylor Lawyers. A revised set of delegations for the General Manager are attached to this report. (Refer to Attachment 1)

6.      This report is also seeking to allow rates and charges to be written off by the General Manager for the amount of $10,000 or below in accordance with clause 131(2) of the Regulation only:

(a)     if there is an error in the assessment, or

(b)     if the amount is not lawfully recoverable, or

(c)     as a result of a decision of a court, or

(d)     if the council or General Manager believes on reasonable grounds that an attempt to recover the amount would not be cost effective.

7.      The writing off of rates or charges in accordance with this clause does not prevent Council from taking legal proceedings to recover the amount. The General Manager must advise Council of rates and charges written off and this would occur annually.

Council's Annual Report must also include the amount of rates and charges written off during the year.

8.      In addition, this report is also seeking to allow debts to Council to be written off by the General Manager for the amount of $10,000 or below in accordance with clause 213(3) of the Regulation only:

(a)     if the debt is not lawfully recoverable, or

(b)     as a result of a decision of a court, or

(c)     if the council or General Manager believes on reasonable grounds that an attempt to recover the amount would not be cost effective.

9.      The writing off of a debt in accordance with this clause does not prevent Council from taking legal proceedings to recover the debt.

Financial Implications

10.    The writing off of any rates, charges or debts will have a negative impact on Council’s budget through the potential loss of income.

Risk Implications

11.    Any risks associated with delegations have been captured in Council’s Enterprise Risk Management Plan, which is currently in draft and will be presented to Council later in 2018.

Community Engagement

12.    Council is not required to undertake public consultation prior to delegating functions to the General Manager or writing off of rates, charges or debts. However, the public will be made aware of the amount of rates and charges written off each year via a report to Council and inclusion of relevant information in Council’s Annual Report.

File Reference

 

 

 

ATTACHMENTS

Attachment 1

General Manager's Delegations - Instrument of Delegation

 


Georges River Council - Finance and Governance Committee Meeting - Monday, 10 September 2018

FIN070-18              Delegations to the General Manager

[Appendix 1]          General Manager's Delegations - Instrument of Delegation

 

 

Page 9

 


 


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 11

Item:                   FIN071-18          2018-19 Chief and Senior Executive Service - Annual Determination 

Author:              Executive Manager People and Culture

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

 

Recommendation:

(a) That the determination by the Statutory and Other Officers Remuneration Tribunal in relation to the amount of increase of 2.5% in remuneration for senior executive office holder’s in accordance with the Standard Contract for General Managers and Senior Staff through the Office of Local Government, be received and noted.

(b) That the increase be implemented on the anniversary of the commencement date for the General Manager and Senior Staff.

 

Executive Summary

1.      On 7 August, 2018 the report and determination under section 24C of the Statutory and Other Offices Remuneration Act 1975 was published.

 

2.      In accordance with the Standard Contract for General Managers and Senior Staff each anniversary of the commencement date, the total remuneration package will be increased by a percentage amount that is equivalent to the latest percentage amount increase in remuneration for senior executive office holders as determined by the Statutory and Other Officers Remuneration Tribunal.

 

3.      This report is to inform Councillors of the percentage amount that will be applied to the remuneration packages of the General Manager and Council’s Senior Staff.

Background

4.      The employment of the General Manager and Senior Staff is administered through the Office of Local Government, Standard Contract of Employment for Local Councils. Clause 8 of the employment contract outlines the structure of the remuneration package and how increases to this package are applied.

5.      In accordance with Clause 8.5 on each anniversary of the commencement date, the total remuneration package will be increased by a percentage amount that is equivalent to the latest percentage amount increase in remuneration for senior executive office holders as determined by the Statutory and Other Officers Remuneration Tribunal.

6.      On 7 August, 2018 the report and determination under section 24C of the Statutory and Other Offices Remuneration Act 1975 was published. (Refer to Attachment 1) The Tribunal has determined a general increase of 2.5% for all senior executive officers, effective 1 July 2018.

7.      This increase will apply to the remuneration package of the General Manager and Council’s Senior Staff. The increase will be effective from the individual officer’s anniversary commencement date.

Financial Implications

8.      Within budget allocation.

 

Risk Implications

9.      No risks identified.

 

File Reference

D18/187827

 

 

 

ATTACHMENTS

Attachment 1

2018-19 Chief and Senior Executive Service - Annual Determination

 


Georges River Council - Finance and Governance Committee Meeting - Monday, 10 September 2018

FIN071-18              2018-19 Chief and Senior Executive Service - Annual Determination

[Appendix 1]          2018-19 Chief and Senior Executive Service - Annual Determination

 

 

Page 13

 


 


 


 


 


 


 


 


 


 


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 23

Item:                   FIN072-18          Property Matter - Proposed Disposal of Surplus Land - 21a Queens Road Connells Point, Lot E in DP373733 

Author:              Strategic Property Specialist

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation:

(a)     That the land known as 21a Queens Road Connells Point, Lot E in DP373733 be sold to the adjoining owners of 15 and 21 Queens Road Connells Point.

(b)     That the General Manager be authorised to execute the Contract for Sale, Transfer Document and all other associated documentation to effect the disposal of Lot E in DP373733.

 

 

Executive Summary

 

1.      To consider the proposed disposal of a surplus parcel of vacant land located at 21a Queens Road, Connells Point and legally described as Lot E in Deposited Plan (DP) 373733, to the immediate adjoining owners of 15 and 21 Queens Road Connells Point.  Refer to Attachment 1 for a location plan.

2.      To gain authorisation for the General Manager to execute the Contract for Sale, Transfer Document and all other associated documentation to effect the disposal of Lot E in DP373733 at market value.

 

Background

 

3.      21a Queens Road, Connells Point was acquired by the former Kogarah City Council to form a foreshore link to Redin Place Reserve.

4.      Some time ago, the continuation of the foreshore link was abandoned and as a consequence, the subject lot remained as an isolated parcel of open space land, only accessible from the water.

5.      The former Kogarah City Council considered that the use of this community land was restricted due to the lack of pedestrian and general public access.  As such, the former Council considered the land to be surplus and that the site could be sold at market value to the adjoining owners.

6.      To effect a sale, the former Kogarah City Council reclassified the land from “community” to “operational” land via the 2012 Kogarah Local Environmental Plan.

7.      The subject lot has an area of approximately 543.79m2 and has been rezoned to R2 – Low Density Residential, consistent with the adjoining zoning.

8.      The land, which cannot be developed in its own right, is landlocked and is only accessible from the water, has no public benefit and is considered surplus to requirements.

9.      The land falls steeply from its southerly rear boundary towards the waterfront with a small steep rock outcrop forming the water frontage line. Elsewhere the land is partially grassed and has also been improved by adjoining owners (landscaping, steps and two private jetties) to permit greater access to the water frontage.

10.    A sewer main runs through the parcel.

11.    Re-development potential is limited except for waterfront facilities. It should be noted, however, that the water frontage is tidal with extremely low water levels at low tide that expose the river mud flats.

12.    The subject site is currently licenced to the adjoining land owners at No. 15 and No. 21 Queens Road, as an extension to their private open space and provides these properties with waterfront access.

13.    In July 2017, Georges River Council received an unsolicited offer to purchase Council Land being Lot E in DP 373733 from the adjoining land owners (15 and 21 Queens Road Connells Point).

 

Current Position

 

14.    On 21 March 2018 Council received a formal offer from the adjoining owners to purchase the subject land. (Refer to Attachment 2) This offer was received before formal valuation advice was obtained.

15.    Council entered into private treaty discussions with the adjoining owners of 15 and 21 Queens Road Connells Point who wish to purchase the land jointly.

16.    Council obtained an independent valuation report in order to ascertain the current market value of the land proposed for disposal.  This report was paid for by the adjoining owners.

17.    Following a review of the market, the valuer recommended that Council adopt a market value as outlined in the confidential valuation report. (Refer to Attachment 3)

18.    Based on the valuation advice, Council wrote to adjoining owners with the attached confidential terms which are subject to a formal Council resolution. (Refer to Attachment 4)

19.    On 16 August 2018 the adjoining owners agreed to purchase as per valuation advice. (Refer to confidential Attachment 5).

20.    In accordance with Council’s Acquisition and Disposal Policy, only one valuation is required, however, Strategic Property is obtaining a second valuation report in order to satisfy their due diligence and ensure that the proposed sale price reflects true market value.  A second confidential valuation report will be tabled in due course.

 

Financial Implications

 

21.    The terms of sale are considered to represent fair market value.  The sale will result in unbudgeted income which will be allocated towards Council’s Asset, Road and Infrastructure Management Reserve.

 

Community Engagement

 

22.    Community engagement is not required.

 

Conclusion

 

23.    As the land is landlocked and not accessible by the public other than by water, it would be difficult to dispose of the land to anyone other than the adjoining owner(s). It is therefore recommended that Council proceed to dispose of this surplus land in accordance with the independent valuation advice received.

 

 

File Reference

 

17/2326

 

 

 

ATTACHMENTS

Attachment 1

Location Plan

Attachment 2

Formal offer from adjoining owners to purchase (Confidential)

Attachment 3

Valuation Report - 21a Queens Road Connells Point (Confidential)

Attachment 4

Proposed Sale Offer to Adjoining Owners (Confidential)

Attachment 5

Letter of Acceptance from Adjoining Owners - 21A Queens Road Connells Point (Confidential)

 


Georges River Council - Finance and Governance Committee Meeting - Monday, 10 September 2018

FIN072-18              Property Matter - Proposed Disposal of Surplus Land - 21a Queens Road Connells Point, Lot E in DP373733

[Appendix 1]          Location Plan

 

 

Page 26

 


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 27

Item:                   FIN073-18          Audit, Risk and Improvement Committee Minutes from 4 June 2018 

Author:              Internal Auditor

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation:

That the Minutes of the Audit, Risk and Improvement Committee Meeting held on the 4 June 2018 provided as an Attachment 1, be noted.

 

 

Executive Summary

1.      Council’s Audit, Risk and Improvement Committee Charter provides in Clause 5.1 for the reporting of Audit, Risk and Improvement Committee (ARIC) Minutes to the Council.         

 

2.      The Minutes of the ARIC meeting held 4 June 2018 were confirmed by ARIC at their meeting of 6 August 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 Clause 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.”

 

4.      The Audit, Risk and Improvement Committee meet four times per year to review, note and recommend on items identified in their Charter.

 

5.      These Minutes relate to the ARIC meeting held on 4 June 2018 and were confirmed at the ARIC meeting held on 6 August 2018.

 

Financial Implications

6.      There are no budget impacts for this report.

 

 File Reference

D17/195764

 

 

 

ATTACHMENTS

Attachment 1

ARIC meeting Minutes 4 June 2018

 


Georges River Council - Finance and Governance Committee Meeting - Monday, 10 September 2018

FIN073-18              Audit, Risk and Improvement Committee Minutes from 4 June 2018

[Appendix 1]          ARIC meeting Minutes 4 June 2018

 

 

Page 29

 


 


 


 


 


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 34

Item:                   FIN074-18          Audit, Risk and Improvement Committee Independent Member Appointment Extension 

Author:              Internal Auditor

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation:

That the Audit, Risk and Improvement Committee endorsed recommendation for the extension of the appointment of independent member, Mr Stephen Horne, be approved by Council.

 

 

Executive Summary

1.      Mr Stephen Horne’s initial 2 year appointment to Council’s Audit, Risk and Improvement Committee (ARIC) concludes in October 2018.

2.      Mr Horne has re-nominated to be an independent member of the ARIC for an additional extension period in accordance the Audit, Risk and Improvement Committee Charter -Clause 2.3 Tenure.

 

3.      The ARIC, excluding Mr Horne, endorsed the extension at their meeting on 6 August 2018.

 

4.      Mr Horne’s extension requires approval by the Council under Clause 2.3 of the Charter.

 

Background

5.      In 2016, Georges River Council invited expressions of interest for membership of Council’s Audit and Risk Management Committee. Council required two appointments, including the Chair, to be for three years and one appointment to be for two years.

Mr Stephen Horne was selected for the two year appointment. This was approved by the Administrator, Mr John Rayner, on 17 August 2016 with the appointment taking effect until October 2018.

6.      Clause 2.3 of the Council-approved Audit, Risk and Improvement Committee Charter states:

“The independent, external members will be appointed for a term of three years, with one member in the first term of the Committee being appointed for an initial two years period, so that the triennial spilling and changeover of memberships will allow for continuity and transfer of corporate knowledge, with one member being replaced or reappointed on a different three year cycle to the other two. Members may be eligible for extension of appointments or re-appointment by the Council.

 

Further to the above provisions, independent membership of the Committee will expire at the end of the financial year in which a Local Government General election takes place. This is to allow the new Council to review the membership and provide for transition to a new membership.”

 

7.        Mr Horne has nominated for an extension to the ARIC in accordance with the above clause.

 

Financial Implications

8.      Within budget allocation.

The three independent ARIC members received $1,000 each per meeting.

Risk Implications

9.      Operational risk/s identified and management process applied as follows:

Requirement for independent assurance, oversight and advice over council operations.

 

Community Engagement

10.     Community engagement was conducted in 2016 during the Expression for Interest process for selection of ARIC independent membership. The ARIC endorsed this appointment extension at their meeting on 6 August 2018, fulfilling the requirements of the Council adopted Audit, Risk and Improvement Committee Charter.

 

File Reference

SF16/569

 

 

 

  


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 36

Item:                   FIN075-18          Advice on Costs and Status of Council's Court Proceedings - August 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 – August 2018”, be received and noted.

 

 

Executive Summary

 

1.      Advice on Council’s Court proceedings for the period 31 July 2018 to 27 August 2018 is contained within this report.

 

2.      Total nett costs to date for the 2018/19 financial year for Court proceedings are $158,564.12.

 

3.      Total legal costs recovered to date for the 2018/19 financial year are $212,758.00.

 

Background

 

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

Supreme Court

·        1 x Summons

Land and Environment Court

·        24 x Class 1 (Merit/DA)

·        2 x Class 4 proceedings (including 1 x Contempt of Court proceedings)

·        18 x Class 5 (Environmental Prosecutions) Summons’

Local Court

·        7 x Prosecutions

·        3 x Prosecutions (brought by NSW Police)

Cost Recovery

·        5 x cost recovery matters

 

New Matters

 

5.      Four new Class 1 appeal matters were received during the reporting period (Rod Zoabi T/A ZTA Architects, Marilyn Kidd, Riverwood Development Company Pty Limited and Picciau & Zhang) and three new Local Court matters were received (Nourmeir, SAF Developments Pty Limited and Austyle Projects Pty Limited). 

 

 

 

 

Finalised matters

 

6.      Four matters were finalised – (Saoud, Tribeca Property Developers Pty Limited, Telado and Ng).

 

Current Table

 

7.      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

Land and Environment Court Proceedings – Class 1 Appeals

1

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 was listed for hearing on 15 and 16 August 2018 however was vacated by the Commissioner at a case management conference.  The matter has now been listed for hearing on 12 & 13 March 2018.  External urban design, planning and traffic consultants briefed.

2

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 20 & 21 September 2018.  External urban design, planning and traffic consultants briefed.

3

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 prior to the Council issuing building information certificate. Structural certification and Sydney Water approval received. Only outstanding matters are the works required by the |Sydney Water approval that were said to commence June 2018. Awaiting update from Applicant as to the status of the works required by Sydney Water. Council may issue building information certificate once relevant certification received and confirmation of payment of $7,000.

4

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.

5

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 was not resolved at the S34 Conference on 15 June 2018 and has been set down for hearing on 11 – 13 February 2018.  External heritage, traffic and urban design expert retained. 

6

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, heritage and urban design briefed.  Matter is listed for hearing on 4, 5 and 6 March 2018.

7

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 did not resolve at S34 conciliation and has been terminated with a further directions hearing and amended proposal being considered.

8

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.  Applicant has suggested changes to the proposal.  Section 34 process adjourned to 22 August 2018 for applicant to prepare amended plans.

9

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 has been listed for hearing on 18 & 19 October 2018.  External planner and lawyer have been retained.

10

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.

11

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 is listed for hearing on 8 & 9 November 2018.  Section 8.15(3) costs paid in the amount of $3,000.  Amended scheme submitted.

12

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.

13

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 listed for S34 Conference on 27 November 2018.  External solicitor and planner have been retained.

14

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 S34 Conference on 16 November 2018.  External experts for planning, urban design and traffic have been retained.

15

12 John Street, Kogarah Bay

 

Applicant: CAAE 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 s34AA hearing on 4 & 5 December 2018.

16

22 – 26 Montgomery Street, Kogarah

 

Applicant: Icon Consulting Group Pty Limited

 

Proceedings No: 2018/167910

Class 1 appeal against deemed refusal of Development Application DA2018/0138 for partial demolition of existing buildings, restoration of existing heritage listed terraces and construction of a 12 storey plus rooftop, mixed use development consisting of 27 residential units, commercial retail floor area and basement car parking.

Matter listed for S34 Conference on 3 December 2018.  External planner, heritage and urban design experts retained.

17

36 Bunyala Street, Blakehurst

Applicant: Lateral Estate Pty Limited

 

Proceedings No: 2018/201275

Class 1 appeal against deemed refusal of DA2017/0649 for the demolition of existing structures, tree removal, excavation, shoring, piling works and the construction of a residential flat development comprising 49 apartments, basement car parking and landscape works.

Matter has been listed for S34 Conference on 21 February 2019.

18

44 Mulga Road, Oatley

 

Applicant: Franco & Susan Lynette Bonamici

 

Proceedings No: 2018/208552

Class 1 appeal against order to remove unauthorised paving dated 8 June 2018.

Matter listed for S34 Conference on 11 January 2019.

19

2 – 4 Allen Street & 42 – 44 Connells Point Road, South Hurstville

 

Applicant:  C A Camperdown Pty Limited

 

Proceedings No: 2018/213640

Class 1 appeal against deemed refusal of DA2017/0421 for the construction of an 8 storey mixed use building containing 64 residential units & 2 retail/commercial tenancies and 4 levels of car parking.   DA includes part of Council land (public car park).

 

 

Matter listed for S34 Conference on 20 December 2018.

20

158 Connells Point Road, Connells Point

 

Applicant: Chung Kei Ng

 

Proceedings No: 2018/223668

Class 1 appeal against LPP refusal of DA2017/0286 for alterations and additions to a dwelling, construction of a new building to rear and change of use into a child care centre.

 

Matter listed for S34 Conference on 24 January 2019.

21

7 Wharf Road, Kogarah Bay

 

Applicant: Rod Zoabi T/A ZTA Architects

 

Proceedings No: 2018/234703

Class 1 appeal against refusal of DA2017/0024 for demolition of existing structures and construction of three storey attached dual occupancy premises with swimming pools and outbuildings and subdivision of land.

Matter listed for directions hearing on 28 August 2018.

22

70 Kyle Parade, Kyle Bay

 

Applicant: Marilyn Kidd

 

Proceedings No: 2018/214451

Class 1 Appeal against deemed refusal of DA2017/0625 for subdivision into 2 allotments and demolition of carport structure.

Matter is listed for S34 Conference on 13 November 2018.

23

279 – 281 Belmore Road, Riverwood

 

Applicant: Riverwood Development Company Pty Limited

 

Proceedings No: 2018/244694

 

Class 1 appeal for refusal of DA2016/0219 for demolition of existing structures and construction of a mixed use development.

Matter is listed for first directions hearing on 6 September 2018.

24

44 Caloola Crescent, Beverly Hills

 

Applicant: Riverwood Development Company Pty Limited

 

Proceedings No: 2018/246713

Class 1 Appeal against refusal of DA2018/0081 for demolition of existing buildings and construction of a new two storey dual occupancy including outbuildings, front fences and swimming pools.

Matter is listed for first directions hearing on 31 August 2018.

Land and Environment Court Proceedings – Class 4 Proceedings

1

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 further directions on 31 August 2018. Council’s evidence filed.

2

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.  Justice Pepper handed down judgment ex tempore and made orders for demolition of unauthorised building within 28 days.

Land and Environment Court Proceedings – Class 5 Proceedings

1

111 Gungah Bay Road, Oatley

 

Parties: W K Strong Pty Limited

Proceedings No: 2018/227315, 2018/227316, 2018/227317, 2018/227361, 2018/227362 and 2018/227363.

 

Parties: Nader Haidar

Proceedings No: 2018/227331, 2018/227332, 2018/227333, 2018/227377, 2018/227378 and 2018/227379.

 

Parties: Khaled Awada

Proceedings No: 2018/227336, 2018/227337, 2018/227338, 2018/227399, 2018/227400 and 2018/227401.

 

 

Class 5 appeals in relation to lopping and injuring trees and development not in accordance with development consent at 111 Gungah Bay Road, Oatley.

 

First directions hearing on 7 September 2018.  Council’s evidence in chief filed.

Local Court Proceedings

1

8 Kimberley Road, Hurstville

Parties:

Petre Dimovski

Local Court prosecution for unlawful tree removal.

Guilty plea entered.  A conviction was recorded, defendant has agreed to pay $10,000 prosecutor’s costs.  Judgment to be handed down on 5 December 2018.

2

7 Isaac Street, Peakhurst

Parties:

Christina King

Local Court prosecution for no PCA signage erection and site fence down on ground.

Matter is listed on 24 September 2018 for hearing.

3

6 Loch Maree Crescent, Connells Point

Parties:

Mende Dimovski

Local Court prosecution for 2 offences of development without consent involving failure to display sign and storage of building materials on public road.

Defendant pleaded not guilty.  Matter fixed for hearing on 26 September 2018.

4

10 Tasker Avenue, Peakhurst

Parties:

Steve Krimizis

Mr Krimizis has been charged by Police with making threats to and intimidation of Council’s environmental health officer and customer service officer. 

Matter has been adjourned to 2 October 2018.  Council has a watching brief only.

5

24 Ballantyne Road, Mortdale

Parties:

Gavin McLennan

Local Court prosecution for development without consent – no sign erected showing PCA.

Matter listed for first directions hearing on 16 August 2018.

6

47 Croydon Road, Hurstville

Parties:

Van Lam

Police prosecution for failure to comply with requirements of authorised officers under s40 of the Food Act, 2003.

Matter has been stood over to 30 August 2018.  Council has a watching brief only.

7

Parties: Mr Xie

Police prosecution for an assault on Council’s parking officer.

Matter has been stood over to 4 September 2018.  Council has a watching brief only.

 

8

20 Torrens Street, Blakehurst

Parties: Danny Noumeir

Offences of development without consent involving non compliant signage, non compliant sediment and erosion controls, required documentation not being supplied to Council and a possible pollution incident with materials being tracked off the site.

 

First directions hearing listed on 4 September 2018.

9

50 Queens Road, Connells Point

 

Parties: SAF Developments Pty Limited

Offences of development without consent involving unauthorised road closures, materials being stored on the road reserve area, defective/non compliant sediment and erosion controls , defective non compliant signage, defective tree protection facilities and allowing materials to enter the stormwater system.

 

Matter listed for first directions on 4 September 2018.

10

46 Terry Street, Blakehurst

 

Parties: Austyle Projects Pty Limited

 

Offences of development without consent involving unauthorised road closures, materials being stored on the road/footpath reserve area and non compliant signage.

 

Matter listed for first directions on 6 September 2018.

Supreme Court

1

220 – 226 Princes Highway, Kogarah Bay.

 

Parties:

Nikolaos & Marianna Sykalos

Proceedings No.

2018/215935

 

Supreme Court appeal seeking transfer of ownership of public car park on corner of Princes Highway and Park Road to the plaintiffs as adjoining land owners allegedly pursuant to an historic Deed.

Matter listed for further directions hearing on 30 October 2018.

Costs Recovery

1

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.  Awaiting further advice from Mortgagee in possession.

2

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 and Rev Malifa to pay.  Matter sent for external debt recovery.  Debtor has been given extension of time by Council until 19 September 2018 to pay the outstanding amount.  Follow up action to commence immediately if the debt is not paid in full.

3

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. Plaintiff’s s96 modification application to delete conditions requiring easements approved by SSPP.  Matter discontinued with plaintiff to pay Council’s costs on a solicitor/client basis.  Plaintiff now paid Council’s costs  of $145,084.57 – matter complete.

4

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.

 

Appeal upheld with amended plans for 104 apartments on 24 July 2018.  Council awarded costs – currently preparing calculation of costs thrown away.

5

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 resolved by way of S34 Agreement.  Section 8.15(3) costs in the amount of $12,000 to be paid.  Awaiting payment.

 

8.      Costs to date are as follows:

 

Type

Amount

Class 1 Appeals – Consultants for Court Proceedings

$86,470.00

Class 1 Appeals – Planning DA External Lawyers

$62,246.00

Class 2 Appeals

$0

Class 3 Appeals

$0

Class 4 Appeals

$77.23

Class 5 Appeals

$6,536.86

Local Court Prosecutions/Enforcements

$3,234.03

Industrial Relations Commission (IRC)

$0

Total

$158,564.12

 

Financial Implications

9.      Within budget allocation.

 

Risk Implications

10.    No risks identified.

 

File Reference

17/1831

 

 

 

  


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 49

Item:                   FIN076-18          Draft Georges River Council Loan Borrowing Policy 

Author:              Coordinator Financial Management and Senior Management Accountant

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

 

Recommendation:

a)   That Council endorse the public exhibition of the Draft Georges River Council Loan Borrowing Policy for a period of not less than 28 days to allow for community submissions on the policy.

b)   That after the public exhibition period, a further report be provided detailing any submissions received and seeking the adoption of the Draft Georges River Council Loan Borrowing Policy.

 

 

Executive Summary

1.   The Draft Loan Borrowing Policy outlines Council’s borrowing of funds strategy with the aim of minimising overall debt and utilising the borrowing options primarily for projects of a capital nature.

2.   The Policy will ensure the sound management of Council’s existing and future debt, bearing in mind Council’s financial aim is to have balanced annual budgets and long term financial sustainability.

 

Background

 

3.   The Local Government Act 1993 - Principles of sound financial management; section 8B(c) and (d), stipulates the following in regard to councils:

(c)  Councils should have effective financial and asset management, including sound policies and processes for the following:

(i)      performance management and reporting,

(ii)     asset maintenance and enhancement,

(iii)    funding decisions,

(iv)    risk management practices.

(d)  Councils should have regard to achieving intergenerational equity, including ensuring the following:

(i)      policy decisions are made after considering their financial effects on future generations,

(ii)     the current generation funds the cost of its services.

4.   Council recognises that borrowing can be an important funding option for capital works. It provides the opportunity to bring unfunded projects forward and ensures the full cost of infrastructure is not borne entirely by present-day ratepayers.

5.   Prior to undertaking any borrowing, Council shall assess its capacity to repay the loan ensuring that the community is not burdened with unnecessary risk, including interest rate changes.

6.   The Minister for Local Government issued a revised Borrowing Order pursuant to section 624 of the Local Government Act 1993. The revised Order replaced the previous Order dated 27 September 1993. The revised Order dated 29 May 2009 retains the limitation on councils to borrow only in Australia and in Australian currency. All other limitations or restrictions have been removed.

 

Financial Implications

 

7.   There are no budget impacts as a result of this report.

 

File Reference

< Enter Records Reference Number Here >

 

 

 

ATTACHMENTS

Attachment 1

Draft Loan Borrowing Policy - September 2018

 


Georges River Council - Finance and Governance Committee Meeting - Monday, 10 September 2018

FIN076-18              Draft Georges River Council Loan Borrowing Policy

[Appendix 1]          Draft Loan Borrowing Policy - September 2018

 

 

Page 51

 


 


 


 


 


 


 


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 58

Item:                   FIN077-18          2017/18 Budget Expenditure Carry Over Requests 

Author:              Coordinator Financial Management

Directorate:      Office of Chief Operating Officer

Matter Type:     Finance and Governance

 

 

 

Recommendation:

That Council adopted the list of carry overs from the 2017/2018 financial year budget for uncompleted works to enable these projects to be completed in the 2018/2019 budgeted financial year.

 

 

Executive Summary

 

1.      The Local Government (General) Regulation 2005, sub-Clause 211(3) states that all approvals of expenditure and votes lapse at the end of the financial year, except for works, services, goods and materials or facilities already started or contracted to be carried out or to be provided before the end of the year concerned. 

2.      The total amount requested to be carried over to 2018/2019 financial budget is $15.79m.

 

Background

 

3.      A Schedule of Carryovers for 2017/2018 (attached) outlines the budget amounts (votes) approved for the 2017/2018 financial year that have not been finalised and therefore are required to be carried-over in the current financial year, being 2018/19.

 

4.      The total amount requested to be carried over from 2017/2018 is $15.79m. 

 

5.      Carry overs by directorate:

       ($’000)

   Assets & Infrastructure                                       11,780

   Business & Corporate Services                              150

   Community & Culture                                            1,365

   Environment & Planning                                               2,304

   Transformation & Change                                      195

                                                                             15,794

 Financial Implications

 

6.   2017/18 carry overs are projects that have been endorsed in Council quarterly reviews, adopted budget or in specific project reports that have been adopted by Council. 

7.   Following Council adoption of carry overs, the 2018/19 budget will include these additions and be reported to Council in quarter one. 

 

Risk Implications

 

8.   Enterprise risk/s identified and management process applied.

 

Community Engagement

 

9.   No community engagement will be conducted as a result of this report. However, this report and the carry over list will be included in the Finance and Governance Committee agenda, which will be posted on Council’s website for community members viewing.

 

File Reference

17/2686

 

 

 

ATTACHMENTS

Attachment 1

Attachment 1 Schedule of Carry Overs for 2017-18

 


Georges River Council - Finance and Governance Committee Meeting - Monday, 10 September 2018

FIN077-18              2017/18 Budget Expenditure Carry Over Requests

[Appendix 1]          Attachment 1 Schedule of Carry Overs for 2017-18

 

 

Page 60

 


 


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 62

Item:                   FIN078-18          Investment Report as at 31 July 2018 

Author:              Financial  Accounting Officer

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

 

Recommendation:

That Council receive and note the contents of the Investment Report as at 31 July 2018.

 

 

Executive Summary

1.      This report details Council’s performance of its investment portfolio as at 31 July 2018 and compares it against key benchmarks. Note that year-end reconciliations are currently being finalised and if there are any changes to the information contained in this report as a result of the reconciliations, they will be highlighted to Council in the 2017/18 General Purpose Financial Statements report.

2.      This report also includes the estimated market valuation of Council’s investment portfolio, loan liabilities and an update on Council’s legal action against various parties.

3.      Council’s annualised rate of return is 2.85%, which is 1.02% above benchmark. Income    from interest on investments totals $456k which is in line with 2018/19 year-to-date adopted budget.

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.

Investment Performance Commentary

5.      Council’s performance against the benchmark for returns of its investment portfolio for July 2018, are as follows:

 

 

1 Month

3 Month

12 Month

Portfolio Performance

0.25%

0.71%

2.85%

Performance Index

0.19%

0.52%

1.83%

Excess

0.06%

0.19%

1.02%

Notes:                                                      

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

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

c)      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 July was as follows:

Security Type

Market Value $000's

% Total Value

Cash at Bank

7,328

4.22%

11am Cash

 994

0.57%

31 Day Notice Account

 22

0.01%

Flexi Deposit (Fix/Float)

 6,000

3.45%

Floating Rate Deposit

 5,000

2.88%

Floating Rate Note

 63,986

36.80%

Floating Rate TCD

 3,512

2.02%

Term Deposit

 81,041

46.61%

Managed Funds Trust

 5,989

3.44%

Total Cash and Investments

 173,872

100.00%

 

7.      At the end of June 2018, Total Cash and Investments were $182.16M and have decreased by $9.29M at end of July 2018 because of operational and capital expenditure and timing of rates revenue.

 

8.      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

 

9.      Nil.

 

Loan Liability

 

10.    Council’s loan liability as at 31 July was $2.125m which represents the balance of a $5m 10 year loan drawn down on 16 November 2012 for Jubilee Park upgrade in Mortdale. Next repayment of $125k is due 28 September 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 3.95% pa.

 

11.    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

 

12.       The following graph below 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.       It shows that the funds invested are within the limits set in the Investment Policy.

 

Investment Income

13.    Income from interest on investments to the 31 July 2018 is estimated at $456k, which is in line with 2018/19 year-to-date adopted budget.

Certificate by Director Business and Corporate Services (Responsible Accounting Officer):                          David Tuxford

14.    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

Investment Term

Market Value ‘000

% Total Value

Policy Limits

0 to < Year

56,608

32.56%

100%

1 to < 3 Years

85,474

49.16%

70%

3 to < 5 Years

31,790

18.28%

50%

Portfolio Total

173,872

100.00%

 

 

15.    Council’s portfolio is liquid, with 32.56% of assets maturing within 12 months. FRNs, funds and fixed bonds also provide additional liquidity in an emergency.

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

 

Type of Investments

17.    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.

18.    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.

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

a)      Cash and 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 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

20.    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.

21.    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.

21.    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).

22.    The remaining 32% rated ‘BBB’ or ‘unrated’ reflects the deposit and FRN investments with the regional and unrated ADIs.

Council’s Investment Powers

23.    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.

24.    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

25.    Within budget allocation.

 

 

File Reference

D18/186682

 

 

 

ATTACHMENTS

Attachment 1

Investment Portfolio as at 31 July 2018

 


Georges River Council - Finance and Governance Committee Meeting - Monday, 10 September 2018

FIN078-18              Investment Report as at 31 July 2018

[Appendix 1]          Investment Portfolio as at 31 July 2018

 

 

Page 69

 


 


 


 


 


 


 


 


 


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 78

Item:                   FIN079-18          Property and Rating Integration Project Closure Report 

Author:              Project Manager

Directorate:      Transformation and Change

Matter Type:     Committee Reports

 

 

 

Recommendation:

That report “Property and Rating Integration Project Closure” be received and noted.

 

Executive Summary

1.      Council is one of a few amalgamated councils currently operating out of one Property and Rating (P&R) system. 

 

2.      To achieve this, the organisation has invested substantial resources including materials and contractor costs and staff time.

 

3.      In doing so, Council has secured data integrity, process and procedural improvements and consistently applied outcomes and service delivery to customers. As a direct result of the P&R Integration project there have also been ongoing annual savings and income generation.

 

Background

4.      The primary objective of the P&R Integration project was to have all the data associated with P&R captured, housed and utilised in a single system. This is critical to the organisation’s operation as the data supports a vast array of Council’s resident and customer services.

5.      The integration was completed on 2 July 2018.  This report provides an overview of the P&R project for Council’s information and to mark the formal closure of the project. Although the project commenced in 2017 the bulk of the work was undertaken in 2018.

6.      Ensuring that one system is used for P&R is critical to the success of amalgamated councils moving forward. Research recently conducted has indicated that Council is one of only four amalgamated councils to currently operate under one system, with Northern Beaches, Federation and Snowy Valleys Councils being the other three who have to date achieved a system integration.  Amongst the remaining councils there is a mixed project status from “just commenced” to “due for completion at the end of this year” and until 2020. Balancing the complexities of the project and day to day operations has meant longer time frames for councils, including Georges River.

 

Process

The process can be grouped in three distinct preliminary phases culminating with the data migration taking place over an extended weekend period. This was designed to minimise disruption to services and avoid customer confusion.

 

7.      The complexity of the project rests with the need for complete accuracy across over  2 million data points, and the breadth of interdependent functions including:

·        Service requests (36)

·        Customer Service lodgement and receipting functions

·        Development Assessment Applications:

·        Standard Development Assessment

·        Modification

·        Review of Determination

·        Bonds

·        Building Certifications

·        Complying Development Certificates

·        Construction Certificates

·        Occupancy Certificates

·        Orders and notices

·        Food premise inspections

·        Tree applications/permits

·        Section 94 and 94a charges

·        603 Rating Certificates

·        149 Certificates

·        Receipt and refund of bonds

·        Local Government and Road Act approval applications

·        Property searches.

 

Overview of project resourcing

8.      Significant time and cost was associated with the P&R project. The project was delivered primarily with in house staff and supported by external contractual engagements where we had a knowledge or skill gap.

 

9.      The costs associated with the project are summarised below.

 

 

Costs

Total

Materials and Contracts (actual)

$673,804

Staff time (estimate)

$301,914

Entire project

$975,718

 

10.    Costs have been included for the following time periods:

·           Materials and Contracts project costs from amalgamation to August 2018.

·           Indicative staff costs have been calculated since January 2018.

 

11.    Material and Contracts costs were 85% funded by the New Council Implementation Fund (NCIF). Staff costs were covered by existing salaries budget allocation, except for weekend overtime which was covered by the NCIF.

 

Savings

12.    The use of primarily internal resources for Technology One consolidation has resulted in considerable project costs savings for Council than if the entire project was outsourced

.

13.    The move to one system has delivered direct recurring annual savings of $225,000, incorporating a $75,000 saving on annual licencing maintenance fees.

 

14.    In addition, the ‘cleansing’ of data in preparation for migration has resulted in the identification of 285 properties of both former councils which require valuation by Council. These properties are a product of subdivision. The use of one system has enabled the streamlining of rating procedures so that consistency can now be applied to process the identified properties’ Valuer General’s assessment. These will generate an expected future income of at least $150,000 per annum.

 

Benefits

15.    The significant investment in the property and rating system integration early in Georges River Council’s evolution will deliver an abundance of both short and longer term benefits for both the organisation and our customers.

Customer oriented

a.      Consistency across the Local Government Area with respect to the way Council receives and responds to service, rates, and regulatory requests.

b.      Decreased call handling time at the counter and over the phone.

c.       Improved service with quick and easy access to the same information.

d.      From October 2018, increased online service functionality for former Kogarah residents requiring Section 149 Certificates (with 95% being able to meet customer expectation of 2 business days across the Local Government Area, an improvement from the previous 5 day period).

Organisation oriented

e.      The use of in-house resources for P&R has meant an internal investment in the success of the outcome with staff working on ensuring data accuracy and process improvements that they work with each day. The organisation has been able to capitalise on the knowledge and skill of staff, whilst building organisational capacity, capability and cross collaboration. From now on, existing and new staff will be trained in the one system. Removing training and support requirements for Authority will free up staff across several directorates to do their operational work.

 

16.    Specifically, the move to one system has positive impacts on Council’s Rates, Regulatory and Customer Service teams.

a.      Customer Service: One system for customer service has had a positive impact on frontline staff with the removal of duplicate processes. It has:

·        Reduced call handling times;

·        Improved service request procedures;

·        Simplified cash receipting.

·        Shortened end of day banking process simpler and quicker with the balance only coming out of one system. 

 

b.      Regulatory Functions: One P&R system has enabled the implementation of a standardised regulatory framework for Council. In particular it has enabled: 

·        Simplicity of workflows, removal of duplication and consistency in the assessment of development applications and requests for certificates;

·        Statistical reporting (extracting from one system as opposed to two and which then required consolidation);

·        One accurate data base for fire safety;

·        Land data base consistency;

·        Easier reconciliation of regulatory income and expenditure;

·        Reduction of the likelihood of error in the issuing of Section 149s;

·        Removal of duplicate processes for State Government annual performance reporting;

·        Ease of data extraction for Australian Bureau of Statistics population forecasting;

·        This has freed up staff resources to be redirected to the provision of advisory services to customers.

 

17.    Rating Operations: Streamlining of rating processes with previously many of the rating functions were split between two staff members, using two systems. The following can now be achieved with one staff member one system:

·        Downloading of  rates payment files;

·        Processing direct debit payment files;

·        Processing of waste charges;

·        Creation and distribution of all rates notices;

·        Processing supplementary rate changes;

·        Processing change of address notifications;

·        Creation of new properties;

·        Rates refunds;

·        Debt recovery.

 

Reputation

18.    Having consistency in approach, timeframes and standard operating procedures for Council across the functions which P&R supports is important to Council’s ongoing positive relationship with the Georges River community. It enables an efficient, professional customer interface with the removal of mixed messages and duplication.

 

19.    The complexities of the P&R project and the broad impact on customers and staff alike necessitated a strong communications and internal support program.  There was significant risk that if customers were adversely affected without understanding why, damage to council’s reputation could occur. Council’s multi-faceted and strategically timed communications which supported the transition from two systems into one were successful in terms of:

·    Notifying ratepayers of changes and helping them understand why the changes;

·    Notifying customers of impacts during shutdown period;  

·    Making it simpler for people to make rates payments.

 

20.    An analysis of feedback on Council’s Website’s rates changes and payments pages immediately pre and post Go-Live (23 July to 15 August) demonstrates that for many ratepayers the information provided has been useful.  Of the total feedback (57):

·     54% agreed or strongly agreed that the page was useful;

·     30% disagreed or strongly disagreed; and

·     16% indicated the page was neutral.

Customers stated that the website was “easy to follow” and that it was “very important to know that the code has changed and the news is expressed clearly”.

21.    When compared to the same time last year, Council has experienced a 7% increase in rate related calls. 28% of all calls in 2018 (1379) compared to 21% (1183) of calls in 2018. Again this suggests that the communications were effective and provided ratepayers with all the necessary information.

 

22.    In addition, more people have paid their rates this year compared to the same period last year.  For the period until 13 August 2018 there has been an increase of $1,449,504 (1,197 transactions). This increased initial payment further reinforces clarity and appropriateness of communications.

 

Financial Implications

23.    There are no budget impacts for this report.

 

Risk Implications

24.    Operational risk/s were identified and a management process applied.

 

Community Engagement

25.     Community engagement was conducted including implementation of two Communications Plans.

 

File Reference

D18/190107

 

 

 

    


Georges River Council – Finance and Governance Committee Meeting -  Monday, 10 September 2018                 Page 84

Confidential items (Closed Council Meeting)

Council's Code of Meeting Practice allows members of the public present to indicate whether they wish to make representations to the meeting, before it is closed to the public, as to whether that part of the meeting dealing with any or all of the matters listed should or should not be considered in closed session.

 

Recommendation

That in accordance with the provisions of Part 1 of Chapter 4 of the Local Government Act 1993, the following matters be considered in closed Council Meeting at which the press and public are excluded.

 

FIN004A-18       Property Matter - Former Kogarah Council Civic Centre Building, 2 Belgrave Street Kogarah

(Report by Head of Strategic Property)

THAT in accordance with the provisions of Part 1 of Chapter 4 of the Local Government Act 1993, the matters dealt with in this report be considered in closed Council Meeting at which the press and public are excluded. In accordance with Section 10A(2) (c) it is considered the matter information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

THAT in accordance with Section 10D it is considered that if the matter were discussed in an open Council Meeting, it would on balance, be contrary to the public interest as it information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

 

That in accordance with the provisions of Section 11(2) of the Act, the reports and correspondence relating to these matters be withheld from the press and public.