Agenda


Finance and Governance Committee

 

Monday, 03 December 2018

6.00pm

 

Georges River Civic Centre

Hurstville

 

 

 

 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 2

 

          Finance and Governance Committee

ORDER OF BUSINESS

 

1.      Acknowledgement of Country

2.      Apologies

3.      Disclosures of Interest

4.      Public Addresses to the Meeting

5.      Confirmation of Minutes of Previous Meeting

MINUTES: Finance and Governance Committee - 12 November 2018 (17/1831)  

6.      Committee Reports

FIN106-18         Advice on Costs and Status of Council's Court Proceedings - November 2018

(Report by Director Legal Services and General Counsel).................................... 4

FIN107-18         Increasing Transparency and Accountability for Council Funded Entities

(Report by Director Business and Corporate Services)........................................ 18

FIN108-18         Georges River Council Loan Borrowing Policy

(Report by Senior Business Performance Accountant)........................................ 31

FIN109-18         Investment Report as at 31 October 2018

(Report by Senior Financial Accountant - Reporting)........................................... 40

FIN110-18         Property Matter - Licence Agreement for Penshurst West Football Club, Olds Park

(Report by Strategic Property Officer)....................................................................... 59

FIN111-18         Property Matter - Licence Agreement for Penshurst Panthers Junior AFL Club, Olds Park

(Report by Strategic Property Officer)....................................................................... 63

FIN112-18         Property Matter - Licence Agreement for St George Little Athletics, Olds Park

(Report by Strategic Property Officer)....................................................................... 67

FIN113-18         Property Matter - Licence Agreement for Riverwood Legion Club, Riverwood Park

(Report by Strategic Property Officer)....................................................................... 71

FIN114-18         Property Matter - Licence Agreement for Kingsgrove Colts, Beverly Hills Park

(Report by Strategic Property Officer)....................................................................... 74

FIN115-18         Property Matter - Proposed Lease of 31 Thurlow Street Riverwood, Riverwood Community Centre

(Report by Strategic Property Officer)....................................................................... 78

FIN116-18         Property Matter - Deed of Licence for St George Creative Art and Craft Centre

(Report by Strategic Property Officer)....................................................................... 82

FIN117-18         Membership of Southern Sydney Region Organisation of Councils (SSROC)

(Report by Executive Services Officer).................................................................... 87  

7.      Confidential (Closed Session)

FIN017A-18       Supreme Court Proceedings 2018/215935 (Request for Land Owner's Consent - 59 Park Road, Kogarah Bay)

(Report by Director Legal Services and General Counsel)

FIN018A-18       Jubilee Stadium Naming Rights Expressions of Interest

(Report by Executive Manager Premium Facilities and Properties)

 

 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 4

Committee Reports

Item:                   FIN106-18          Advice on Costs and Status of Council's Court Proceedings - November 2018 

Author:              Director Legal Services and General Counsel

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation

(a)     That the report “Advice on Costs and Status of Council’s Court Proceedings – November 2018” be received and noted.

 

Executive Summary

1.        Advice on Council’s Court proceedings for the period 30 October 2018 to 23 November 2018 is contained within this report.

2.        Total costs to date for the 2018/19 financial year for Court proceedings are $540,499.

3.        Total legal costs recovered to date for the 2018/19 financial year are $349,173.

4.        Total nett costs are $191,326.

 

Background

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

Supreme Court

·        2 x Summons

Land and Environment Court

·        24 x Class 1 (Merit/DA)

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

·        18 x Class 5 (Environmental Prosecutions) Summons’

Local Court

·        6 x Council Prosecutions

·        2 x Prosecutions (brought by NSW Police)

Cost Recovery

·        4 x cost recovery matters

 

New Matters

6.      There were two new Local Court matters during this period, one commenced by Council (Spicy Orient) and the other received by Council (SAF Developments Pty Limited.)

Finalised matters

7.      Two matters were finalised – (Nelson Architecture) and (CAAE Consulting Pty Limited).


 

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’ (Court witnesses’) fees.

 

 

 

No.

Property Address / Applicant / Proceedings Number

Description of Matter

Status / Critical Dates

Land and Environment Court Proceedings – Class 1 Appeals

1

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, 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 (BIC). Structural certification and Sydney Water approval received. Awaiting final certification from applicant (due 28 November 2018) before BIC can be issued.

2

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, 12 and 13 February 2018.

External heritage, traffic and urban design expert retained. 

3

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 was not resolved at the S34 Conference on 11 July 2018 and has been listed for hearing on 4, 5 and 6 March 2018.

External traffic, heritage and urban design briefed. 

4

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 an amended proposal being considered.   Matter has been set down on 12 November 2018 to enter into a S34 Agreement.  Awaiting finalised orders from the Court. 

5

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 was not resolved at the S34 Conference on 26 September 2018 and has been listed for hearing on 9 and 10 April 2019.

 

6

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 s34AA hearing on 8 and  9 November 2018. Following amended plans, S34 Agreement entered into.

7

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 was not resolved at the S34 Conference on 17 October 2018 and has been listed for hearing on 3 and 4 June 2019.

External planner, traffic, acoustic and urban design consultants briefed.

8

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 car parking.

Matter listed for S34 Conference on 27 November 2018. 

External solicitor, planner and traffic expert have been retained.

9

71 – 97 Regent Street, Kogarah

 

Applicant: 95 Regent Street Kogarah Pty Limited

 

Proceedings No: 2018/140943

Kogarah North Precinct

SSPP concurrence authority

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

Matter was not resolved at the S34 Conference on 16 November 2018 and is listed for further directions on hearing on 23 November 2018.

External planning, urban design and traffic experts have been retained.

10

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 and 5 December 2018.

External planning expert retained.

Matter has now been discontinued by Applicant.  Costs of $3,000 are to be paid by 21 December 2018.

11

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.

12

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.

 

13

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.

14

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

 

Applicant:  C A Camperdown Pty Limited

 

Proceedings No: 2018/213640

SSPP concurrence authority

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.

External lawyer, planner and urban design experts briefed.

15

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.

16

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 s34AA Conciliation Conference on 13 and 14 March 2019.

 

17

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 was not resolved at the S34 Conference on 13 November 2018 and is now listed for hearing on 17 & 18 June 2019.

External lawyer retained.

18

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 S34 Conference on 4 March 2019.

External lawyer together with planning, traffic, urban design and acoustic experts retained.

19

44 Caloola Crescent, Beverly Hills

 

Applicant: Oscar Picciau & Xianyong Zhang

 

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 S34 Conference on 7 and 8 March 2019.

20

32 – 38 Montgomery Street, Kogarah

 

Applicant:  Lateral Estate Pty Limited

 

Proceedings No: 2018/260971

Class 1 Appeal against deemed refusal of DA2018/0139 for the demolition of existing structures and construction of a 12/13 storey mixed use development comprising a residential flat building with 74 apartments over ground floor retail, basement car parking and landscaping.

 

Matter listed for S34 Conference on 12 December 2018. 

External planning, urban design and heritage briefed.

21

10 Renn Street, Kogarah Bay

 

Applicant: Zeina Masri

 

Proceedings No: 2018/281447

 

Class 1 Appeal against deemed refusal of DA2017/0662 for the construction of a two storey dwelling house with a basement pool, front fence and cabana.

Matter has been set down for S34AA conciliation on 11 and 12 April 2019. 

External planning consultant retained.

22

513 Princes Highway, Blakehurst

 

Applicant: Borina Pty Limited

 

Proceedings No: 2018/296856

Class 1 Appeal against deemed refusal of DA2018/303 for the demolition of the existing motel and improvements and the erection of a residential flat building development comprising 43 units being 1 x 1 bed and 42 x 2 bed apartments over two levels of basement parking (77 cars).

Matter is set down for a S34 Conference on 29 April 2019. 

External planning consultant retained.

23

505 – 507 Rocky Point Road, Sans Souci

 

Applicant: Al Abrahim

 

Proceedings No: 2018/317003

Class 1 Appeal against deemed refusal of DA 2018/0252 for the demolition of existing dwellings and ancillary structures and the construction of a

mixed-use development over basement parking.

Matter is listed for S34 Conference on 24 May 2018. 

External planning and urban design experts retained.

24

125 Boundary Road, Peakhurst

 

Applicant: Australian Fitness Management Pty Limited

 

Proceedings No: 2018/310085

 

Class 1 Appeal against deemed refusal of DA2018/0129 for the fit

out and use as a fitness studio (recreation facility (indoor)opening 24 hours, 7 days and associated signage.

 

Matter is listed for S34 Conference on 20 May 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.  Council’s evidence filed. 

Matter has been listed for hearing on 12 and 13 December 2018. 

External lawyers and acoustic expert briefed.

2

34 Milsop & 47 Jersey Avenue, Mortdale

 

Parties: 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.  Respondent has failed to comply with Court Orders.  Contempt proceedings have commenced and are listed for hearing on 15 April 2019.

External lawyers briefed.

3

39 – 41 Park Road, Hurstville

Parties: Owners of 63227

Proceedings No. 2018/282459

 

 

Proceedings commenced for non- compliance with fire safety orders.

Council’s evidence filed.

Matter is listed for further directions hearing on 7 December 2018.

4

East Quarter – 93 Forest Road,
Hurstville

 

Parties:  Hville FCP Pty Limited

 

Proceedings No: 2018/311231

Proceedings commenced for non-payment of contributions under a Voluntary Planning Agreement for Stage 3 of East Quarter site.

Partial payment made in October 2018.

Respondent and respondent’s lawyer both failed to appear in Court on 9 November 2018 and the matter was adjourned to 14 December 2018.

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.

 

Matter listed for further directions and on 7 December 2018.  Council’s evidence in chief filed.

Local Court Proceedings

1

8 Kimberley Road, Hurstville

Parties:

Petre Dimovski

Prosecution for unlawful tree removal.

Guilty plea entered.  A conviction was recorded and defendant has agreed to pay $10,000 prosecutor’s costs. 

Judgment on sentence to be handed down by Magistrate Bartley on 5 December 2018.

 

2

10 Tasker Avenue, Peakhurst

Parties:

Steve Krimizis

Police prosecution for making threats to and intimidation of Council’s environmental health officer and customer service officer. 

 

Matter has been adjourned for hearing to 8 February 2019.

Council has a watching brief.

3

Parties: Mr Xie

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

Matter has been listed for hearing on 13 December 2018.

Council has a watching brief. 

 

4

20 Torrens Street, Blakehurst

Parties: Danny Noumeir

Prosecution for 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.

Matter was listed for hearing on 20 November 2018.  On that occasion, defendant pleaded guilty to two PINs however Court found defendant guilty in relation to all three PINs.

Defendant was ordered to pay $1,000 fine and $1,980 in costs with a 12 month bond.

5

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 storm water system.

 

On 2 October 2018 the defendant was found guilty and the Court imposed fines of $227,000 and costs of $2,500.

The defendant subsequently lodged an annulment application on the basis of the penalty, which was upheld on 13 November 2018.

Matter has now been listed for plea or mention on 18 December 2018.

6

46 Terry Street, Blakehurst

 

Parties: Austyle Projects Pty Limited

 

Prosecution for 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 contested hearing on 1 February 2019.

7

 

7 Elwin Street, Peakhurst

 

Parties:  WVB Constructions Pty Limited

Prosecution for construction out of hours.

Matter listed for hearing on 16 November 2018.  Defendant was found guilty and ordered to pay fine of $5,250 and costs of $1,980.

8

Shop 5 & 6, 309 Forest Road, Hurstville (Spicy Orient)

 

Parties: Jiongyao Lin & L Z Infinity Pty Limited

 

Prosecution for breaches of the Food Act.

Matter is listed for plea or mention on 18 December 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 11 December 2018. 

2

Sans Souci Bathers Pavilion

 

Parties: Blakehurst Marina Pty Limited

Proceedings No.  2018/297522

 

Proceedings in relation to an Agreement to Lease and allegations of misleading and deceptive conduct by Council relating to the Sans Souci Bathers Pavilion.

Matter is being handled by Council’s insurers who have briefed Mills Oakley Lawyers and retained Jason Lazarus of Counsel.

The matter is listed for further directions on 7 December 2018.

Mills Oakley have been instructed to file a strike out application with respect to the Statement of Claim.

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.  Property listed for auction on 1 December 2018.

 

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 by external costs recovery agency as the Church and Rev Malifa refused to pay. Recovery action being commenced. 

 

3

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 negotiating costs amount.

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 was listed for hearing on 20 & 21 September 2018.  External urban design, planning and traffic consultants briefed. S34 Agreement was entered into on 20 September 2018 following amended plans which are height and FSR compliant.

The Applicant to pay Council’s s8.15(3) costs of $84,000 by 30 November 2018.

6

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.

S34 Agreement entered into.  Appeal upheld with amended plans on 23 October 2018.

The Applicant to pay Council’s s8.15(3) costs of $88,000 by 21 December 2018 and additional contributions for public amenities in Kogarah North Precinct in the amount of $2.31million.

 

9.      Costs to date are as follows:

 

Type

Amount

Class 1 Appeals – Consultants for Court Proceedings

$246,867.00

Class 1 Appeals – Planning DA External Lawyers

$218,354.00

Class 2 Appeals

$0

Class 3 Appeals

$0

Class 4 Appeals

$17,881.00

Class 5 Appeals

$22,694.00

Local Court Prosecutions/Enforcements

$32,023.00

Supreme Court Proceedings

$2,680.00

Industrial Relations Commission (IRC)

$0

Total

$540,499.00

 

 

Financial Implications

 

10.    Within budget allocation.

 

Risk Implications

 

11. No risks identified.

 

Community Engagement

 

12. No community engagement is required.

 

 

File Reference

17/1831

 

 

 

  


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 18

Item:                   FIN107-18          Increasing Transparency and Accountability for Council Funded Entities 

Author:              Director Business and Corporate Services

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

 

Recommendation

(a)       That Council advise all entities who receive Council community grant funding, venue hire grants, rental subsidies, heritage grants, event sponsorship and/or donations totalling $15,000 or more in any financial year, that they must provide to Council an Audited set of Financial Statements during any financial year in which they receive such funding or subsidies.

(b)       That the Audited Financial Statements must be received by Council on/before 1 September each year that the funding is provided to the entities.

(c)       That Council introduce this process as from 1 January 2019 and advise all affected entities accordingly.

(d)       That Council exclude legislated funding, subsidies and memberships, such as SES funding and the like, from this process.

(e)       That any entity who receives or requires funding totalling $15,000 or more in financial assistance that cannot meet this condition be excluded from the community grant funding, venue hire grants, rental subsidies, heritage grants, event sponsorship and/or donations program.

(f)        That Council receive, on a yearly basis, a report from the General Manager containing all relevant information on the Financial Statements submitted by the organisations who receive the funding and this information be reported with the presentation of Council’s Annual Financial Statements in October/November of each year.

(g)       That the $15,000 financial funding threshold for reporting include the combination of both cash and in-kind funding.

(h)       That Council makes the appropriate changes to all documentation, including Policies and Procedures relating to community grant funding, venue hire grants, rental subsidies, heritage grants, event sponsorship and/or donations, to ensure a clear and consistent approach to the new process being adopted by Council.

 

Executive Summary

1.  At the Council meeting held on 29 October 2018 the following Notice of Motion was adopted by Council unanimously:

a)   That the GM prepare a report to the November 2018 meeting of the Finance and Governance Committee which details the operational procedures and processes that can be established to ensure that local entities provide a sufficiently transparent account of expenditure of public monies.

b)   That the report address the following matters:

(i)   That all entities in the Georges River LGA that receive Council funding or subsidies be required to provide Council with an audited set of financial statements during any year in which they receive such funding or subsidies;

(ii)  That the requirement only apply to entities that receive Council community grant funding, venue hire grants, rental subsidies, heritage grants, event sponsorship or donations totalling $15,000 or more in any financial year and excludes legislated funding and memberships such as SES funding;

(iii) That the audited financial statements be required to be submitted by 1 September each year;

(iv) The preparation of a standard template/guidelines for use by local entities which details the minimum level of information to be audited and provided to Council;

(v)  The reporting of the submitted information by the GM to Council on an annual basis, including the extent of expenditure and public benefit arising from the subsidies; and

(vi) Any other relevant operational or procedural matters that will increase transparency and accountability on the reporting on the expenditure of public funds.

Background

2.  As a result of the Council resolution, the preparation of a standard template and guidelines to be used by local entities, which details the minimum level of information to be audited and provided to Council, has been compiled and attached to this report. The Financial Statements template includes: 

 

·    Auditors Report which is signed by the Auditor and should contain the Report, the Committee’s Responsibility, Auditors Responsibility and the Auditors Opinion.

·    Committee’s Report, which states the committee members names, function of the organisation, significant changes that may have occurred during the financial year, operating result of the organisation and the ongoing outlook of the organisation (whether it is an ongoing concern or not). The Committee’s Report should also be signed by at least two members of the Committee (usually the President and Treasurer) with a Committee’s resolution that the Committee accepts the Audited Financial Statements.

·    Income Statement (Profit and Loss) which presents the revenues, expenses, and profits/losses generated during the reporting period. This is usually considered the most important of the financial statements, since it presents the operating results of an entity.

·    Balance Sheet which presents the assets, liabilities and equity of the entity as of the reporting date. Thus, the information presented is as of a specific point in time. The report format is structured so that the total of all assets equals the total of all liabilities and equity (known as the accounting equation). This is typically considered the second most important financial statement, since it provides information about the liquidity and capitalisation of an organisation.

·    Statement of Cash Flows which presents the cash inflows and outflows that occurred during the reporting period. This can provide a useful comparison to the income statement, especially when the amount of profit or loss reported does not reflect the cash flows experienced by the business. This statement should be presented when issuing financial statements to outside parties.

·    Notes to the Financial Statements which provide additional information pertaining to the entities operations and financial position.

 

3.  It is estimated that upwards of 10 entities will be required to submit an Audited set of Financial Statements for the financial year ending 30 June 2019 with the new reporting process being recommended to commence as from 1 January 2019. It is expected that more than 20 entities will be required to submit an Audited set of Financial Statements for the financial year ending 30 June 2020.

 

4.  Most entities though will already have in place the yearly process of producing Audited Financial Statements, with the larger Not for Profit entities producing an Annual Report as well. Therefore, the additional requirement requested by Council for the production of Audited Financial Statements for entities who receive $15,000 or more funding will have a minor impact on most organisations and will increase transparency and accountability on the reporting of the expenditure of public funds.

 

5.  On a yearly basis the General Manager will submit a report to Council with all relevant information on the Financial Statements submitted by the entities who receive the funding, including the extent of expenditure and public benefit arising from the subsidies. This will occur in line with the presentation of Council’s own Annual Financial Statements in October/November of each year.

Financial Implications

6.  The impact on Council’s budget will be covered within Council’s adopted budget and will form part of Council’s community grant funding, venue hire grants, rental subsidies, heritage grants, event sponsorship and/or donations totalling $15,000 acquittal process. The new reporting process is recommended to commence as from 1 January 2019.

Risk Implications

7.   Operational risks have been identified and management process applied.

 

Community Engagement

8.   Community engagement occurs as part of the Annual Budget process. Members of the public are also able to register to speak at Council Meetings in line with Council’s Code of Meeting Practice.

 

File Reference

D18/251954

 

Do not delete this line

ATTACHMENTS

Attachment 1

Draft Financial Statements Document

 

 

 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN107-18              Increasing Transparency and Accountability for Council Funded Entities

[Appendix 1]          Draft Financial Statements Document

 

 

Page 21

 

Text Box: Financial Statements

<INSERT ORGANISATION NAME>
For the year ended 30 June 20XX
 

 

 

Contents

Instructions for Completing Financial Statements. 2

Auditor’s Report 3

Committee’s Report 4

Income Statement (Profit and Loss) 6

Balance Sheet 7

Statement of Cash Flows. 8

Notes to the Financial Statements. 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Instructions for Completing Financial Statements

This template has been designed by Georges River Council to assist community organisations in completing Financial Statements, ensuring that the fundamental financial reporting obligations are met, and that the data is presented in the correct order.

A description of each component of the data required for the Financial Statements is as follows:

·     Auditors Report - This report must be supplied by a qualified/ accredited Auditor.  This report must be signed by the Auditor, and should contain the Report, the Committee’s Responsibility, Auditors Responsibility and the Auditors Opinion.

·     Committee’s Report – This report is supplied by an organisation’s committee which states committee members names, function of the organisation, significant changes that may have occurred during the financial year, operating result of the organisation and the ongoing outlook of the organisation (whether it is an ongoing concern or not). The Committee’s Report should also be signed by at least two members of the Committee (usually the President and Treasurer) with a Committee’s resolution that the Committee accepts the Audited Financial Statements.

·     Income Statement (Profit and Loss) - This statement presents the revenues, expenses, and profits/losses generated during the reporting period. This is usually considered the most important of the financial statements, since it presents the operating results of an organisation.

·     Balance Sheet – This document presents the assets, liabilities and equity of the organisation as of the reporting date. Thus, the information presented is as of a specific point in time. The report format is structured so that the total of all assets equals the total of all liabilities and equity. This is typically considered the second most important financial statement, since it provides information about the liquidity and capitalisation of an organisation.

·     Statement of Cash Flows – This document presents the cash inflows and outflows that occurred during the reporting period. This can provide a useful comparison to the income statement, especially when the amount of profit or loss reported does not reflect the cash flows experienced by the business. This statement should be presented when issuing financial statements to outside parties.

·     Notes to the Financial Statements – This document provides additional information pertaining to the entities operations and financial position.

 

 

 

Auditor’s Report

<Insert Copy of Auditor’s Report>

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Committee’s Report

Your committee members submit the financial report of <INSERT ORGANISATION NAME> for the financial year ended 30 June 20XX.

 

Committee Members

The names of committee members throughout the year and at the date of this report are:

Committee Member

Position

<Insert Name>

<Insert Position>

<Insert Name>

<Insert Position>

<Insert Name>

<Insert Position>

 

Principal Activities

<Insert commentary on principal activities>

 

Significant Changes

<Insert commentary on any significant changes>

 

Operating Result

<Insert commentary on operating result>

 

Going Concern

<Insert commentary on whether the organisation is a going concern or not>

 

 

 

 

 

 

 

 

Committee’s Report Sign Off

 

Signed in accordance with a resolution of the Members of the Committee on:

 

________________________

Insert Name (President)

Date:  __ / __ / ____

 

________________________

Insert Name (Treasurer)

Date:  __ / __ / ____


 

Income Statement (Profit and Loss)

<INSERT ORGANISATION NAME>

For the year ended 30 June 20XX

 

 

 

20XX

20XX

Income

 

 

<Insert income item>

$

$

<Insert income item>

$

$

<Insert income item>

$

$

<Insert income item>

$

$

<Insert income item>

$

$

<Insert income item>

$

$

<Insert income item>

$

$

<Insert income item>

$

$

Total Service Income

$

$

Total Income

$

$

 

 

Expenses

$

$

<Insert expense item>

$

$

<Insert expense item>

$

$

<Insert expense item>

$

$

<Insert expense item>

$

$

<Insert expense item>

$

$

<Insert expense item>

$

$

<Insert expense item>

$

$

<Insert expense item>

$

$

Total Expenses

$

$

Total Income

$

$

 

Net Profit/(Loss)

$

$

 

 

 

 

 

 

 

 

Balance Sheet

<INSERT ORGANISATION NAME>

As at 30 June 20XX

 

 

 

30 June 20XX

30 June 20XX

Assets

$

$

Current Assets

$

$

<Insert current assets>

$

$

<Insert current assets>

$

$

<Insert current assets>

$

$

<Insert current assets>

$

$

<Insert current assets>

$

$

<Insert current assets>

$

$

Total Current Assets

$

$

 

 

 

 

Non-Current Assets

$

$

<Insert Non-Current Asset>

$

$

<Insert Non-Current Asset>

$

$

<Insert Non-Current Asset>

$

$

<Insert Non-Current Asset>

$

$

Total Non-Current Assets

$

$

Total Assets

 

 

 

Current Liability

<Insert Current Liability Item>

$

$

<Insert Current Liability Item>

$

$

<Insert Current Liability Item>

$

$

<Insert Current Liability Item>

$

$

<Insert Current Liability Item>

$

$

<Insert Current Liability Item>

$

$

Total Current Liability

$

$

 

Non-Current Liability

<Insert Non-Current Liability Item>

$

$

<Insert Non-Current Liability Item>

$

$

<Insert Non-Current Liability Item>

$

$

<Insert Non-Current Liability Item>

$

$

<Insert Non-Current Liability Item>

$

$

<Insert Non-Current Liability Item>

$

$

Total Non-Current Liability

$

$

Total Liabilities

$

$

Net Assets (Total Assets less Total Liabilities

$

$

 

Equity

$

$

Retained Earnings

$

$

Total Equity

$

$

 

$

$

 

 

Statement of Cash Flows

<INSERT ORGANISATION NAME>

For the year ended 30 June 20XX

 

 

20XX

Operating Activities

$

<Insert operating activities>

$

<Insert operating activities>

$

<Insert operating activities>

$

<Insert operating activities>

$

<Insert operating activities>

$

<Insert operating activities>

$

<Insert operating activities>

$

 

$

Net Cash Flows from Operating Activities

 

$

Net Increase/(Decrease) in Cash and Cash Equivalents

$

Cash and Cash Equivalents at Beginning of Year

$

Cash and Cash Equivalents at the End of the Year

$

 

 

Cash and Cash Equivalents

 

<Insert cash and cash equivalents>

$

<Insert cash and cash equivalents>

$

<Insert cash and cash equivalents>

$

<Insert cash and cash equivalents>

$

<Insert cash and cash equivalents>

$

<Insert cash and cash equivalents>

$

<Insert cash and cash equivalents>

$

<Insert cash and cash equivalents>

$

Net Change in Cash for period

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the Financial Statements

<INSERT ORGANISATION NAME>

For the year ended 30 June 20XX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 31

Item:                   FIN108-18          Georges River Council Loan Borrowing Policy 

Author:              Senior Business Performance Accountant

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

 

Recommendation

That Council adopt the attached Draft Georges River Council Loan Borrowing Policy which will become effective as from the date of adoption.

 

 

Executive Summary

1.   The 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 to have balanced annual budgets and long term financial sustainability.

 

Background

3.   At the Council meeting held on 24 September 2018, the following was resolved by Council:

 

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.

4.   The policy was on public exhibition for a period of 28 days, which ended on 7 November 2018 inviting submissions on the draft document. No submissions were received during the public exhibition period.

5.   Whilst there is no direct requirement for a council to have a loan borrowing policy, it is looked upon as best practice and it demonstrates to the council’s community of being open and transparent and displays that the council is following the principles of good governance.

 

6.   The NSW 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 enhancemen;,

(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.

7.   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.

8.   Prior to undertaking any borrowing, council’s must demonstrate their capacity to repay the loan; ensuring that the community is not burdened with unnecessary risk, including interest rate changes.

9.   The Minister for Local Government issued a revised Borrowing Order pursuant to section 624 of the NSW 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

 

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

 

Risk Implications

11. Operational risks have been identified and management process applied.

 

File Reference

D18/263352

 

 

 

ATTACHMENTS

Attachment 1

Draft Loan Borrowing Policy - November 2018

 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN108-18              Georges River Council Loan Borrowing Policy

[Appendix 1]          Draft Loan Borrowing Policy - November 2018

 

 

Page 33

 


 


 


 


 


 


 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 40

Item:                   FIN109-18          Investment Report as at 31 October 2018 

Author:              Senior Financial Accountant - Reporting

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

 

Recommendation:

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

 

Executive Summary

1.      This report details Council’s performance of its investment portfolio as at 31October 2018 and compares it against key benchmarks.

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

3.      Council’s annualised rate of return is 2.75%, which is 0.86% above benchmark. Income from interest on investments totals $1.80m, 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 October 2018, are as follows:

 

1 Month

3 Month

12 Month

Portfolio Performance

0.23%

0.69%

2.75%

Performance Index

0.17%

0.49%

1.89%

Excess

0.06%

0.20%

0.86%

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 October was as follows:

Security Type

Market Value $000's

% Total Value

Cash at Bank

10,028

5.18%

11am Cash

 1,099

0.57%

31 Day Notice Account

 22

0.01%

Flexi Deposit (Fix/Float)

 6,000

3.10%

Floating Rate Deposit

 5,000

2.58%

Floating Rate Note

 63,986

33.04%

Floating Rate TCD

 3,512

1.81%

Term Deposit

 98,042

50.62%

Managed Funds Trust

 5,989

3.09%

Total Cash and Investments

193,678 

100.00%

 

7.      At the end of September 2018, Total Cash and Investments were $199.20m and have decreased by $5.52m at end of October 2018 because of capital and operational expenditures in the month of October.

 

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 October was $1.875m which represents the balance of a $5m 10 year loan drawn down on 16 November 2012 for Jubilee Park upgrade in Mortdale. The next repayment of $125k is due on 27 December 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 3.87% 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 31 October 2018 is estimated at $1.80m, 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 < 1 Year

85,920

44.36%

100%

1 to < 3 Years

78,987

40.78%

70%

3 to < 5 Years

 28,771

14.85%

50%

Portfolio Total

193,678

100.00%

 

 

15.    Council’s portfolio is liquid, with 44.36% 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 54% 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.

22.    The credit quality of Council’s portfolio is relatively high with approximately 69% of assets rated ‘A’ or higher. The ‘AAA’ assets represent the deposit investments covered by the Federal Government’s Financial Claims Scheme (FCS).

 

23.    The remaining 31% rated ‘BBB’ or ‘unrated’ reflects the deposit and FRN investments with the regional and unrated ADIs.

 

Council’s Investment Powers

24.    Council’s investment powers are regulated by Section 625 of the NSW Local Government Act (1993), 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.

 

25.    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

 

26.    Within budget allocation.

 

Risk Implications

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

 

28.    Council’s enterprise risk identified was ‘poor financial management adversely impacts Council’s long term financial sustainability’. The risk has been managed by Council’s management of investments in accordance with the relevant act and regulations, along with Council adopted Investment Policy. To further minimise the risk, Council will progressively move towards placement of investments only in investments rated A and above.

 

Community Engagement

 

29.    No community consultation is required as a result of this report. Members of the community are able to attend and address Council at the Council meeting in relation to this matter in accordance with Council’s Code of Meeting Practice.

 

File Reference

D18/264477

 

 

 

 

ATTACHMENTS

Attachment 1

Investment Portfolio as at 31 October 2018

 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN109-18              Investment Report as at 31 October 2018

[Appendix 1]          Investment Portfolio as at 31 October 2018

 

 

Page 47

 


 


 


 


 


 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN109-18              Investment Report as at 31 October 2018

[Appendix 1]          Investment Portfolio as at 31 October 2018

 

 

Page 53

 


 


 


 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN109-18              Investment Report as at 31 October 2018

[Appendix 1]          Investment Portfolio as at 31 October 2018

 

 

Page 57

 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 58

Item:                   FIN110-18          Property Matter - Licence Agreement for Penshurst West Football Club, Olds Park  

Author:              Strategic Property Officer

Directorate:      Community and Culture

Matter Type:     Committee Reports

 

 

 

Recommendation

That the report “Property Matter – Licence Agreement for Penshurst West Football Club, Olds Park” be received and noted.

 

 

Executive Summary

1.      During the General Manager’s recent performance review it was requested that future lease and licence agreements be reported to Council.

2.      Following the construction of new amenities facilities for the Penshurst West Football Club, it is now intended to enter into a licence agreement between Council and the Club for occupation of part of the sporting amenities facility.

3.      The facility which is located within Olds Park at 630 Forest Road, Penshurst, will be occupied under licence for a three (3) year period with a further two (2) year option.  The purpose of the proposed licence agreement will be for storage of sporting equipment.

 

Background

4.   Georges River Council is the owner of Lot 2 in Deposited Plan (DP) 433674 known as Olds Park at 630 Forest Road, Penshurst.

5.   In June 2018, a report to Council outlined a proposal to undertake refurbishment works at the Olds Park Amenities Building.

6.   The purpose of the works was to upgrade the existing change room facilities and storage facilities for the sporting associations that currently use these facilities. 

7.   Construction of the refurbishment works is currently underway and due to be completed in December 2018.

8.   Once construction is complete, a licence agreement is to be entered into between Council and Penshurst West Football Club, to obtain occupancy of a specified area within the building comprising of approximately 15m2 of storage space.  A location plan is annexed to this report as Attachment 1.

9.   In order to progress the matter, Council must now enter into licence with the Club in accordance with Council’s Community Lease Policy.

10. The General Manager has delegated authority to enter into a licence agreement with Penshurst West Football Club at Olds Park for a period of three (3) years with a further two (2) year option.  It is intended to enter into a licence agreement as generally detailed in this report.

 


 

Financial Implications

11.    Council’s minimum rental in accordance with the Community Lease Policy is $479 per annum plus GST. 

12.    Whilst Council’s Valuer has adopted a rate of $20 per square metre per annum plus GST for storage areas on community land ($300 per annum plus GST for this site), the minimum rental will be applied in accordance with the Policy.

 

Community Engagement

13. Public notification of the proposed licence to Penshurst West Football Club will be advertised in accordance with Section 47A of the Local Government Act, 1993.

 

File Reference

18/491

 

 

 

ATTACHMENTS

Attachment 1

Location Plan

 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN110-18              Property Matter - Licence Agreement for Penshurst West Football Club, Olds Park

[Appendix 1]          Location Plan

 

 

Page 60

 


 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 62

Item:                   FIN111-18          Property Matter - Licence Agreement for Penshurst Panthers Junior AFL Club, Olds Park 

Author:              Strategic Property Officer

Directorate:      Community and Culture

Matter Type:     Committee Reports

 

 

 

Recommendation

That the report “Property Matter - Licence Agreement for Penshurst Panthers Junior AFL Club, Olds Park” be received and noted.

 

 

Executive Summary

1.      During the General Manager’s recent performance review it was requested that future lease and licence agreements be reported to Council.

2.      Following the construction of a new amenities facility for the Penshurst Panthers Junior AFL Club, it is now intended to enter into a licence agreement between Council and the Club for occupation of part of the facility.

3.      The facility which is located within Olds Park at 630 Forest Road, Penshurst, will be occupied under licence for a three (3) year period with a further two (2) year option.  The purpose of the proposed licence agreement will be for storage of sporting equipment.

 

Background

4.   Georges River Council is the owner of Lot 2 in Deposited Plan (DP) 433674 known as Olds Park and located at 630 Forest Road, Penshurst.

5.   In June 2018, a report to Council outlined a proposal to undertake refurbishment works at the Olds Park Amenities Building.

6.   The purpose of the works was to upgrade the existing change room and storage facilities for the sporting associations that currently use this building.  

7.   Construction of the refurbishment works is currently underway and due to be completed in December 2018.

8.   Once construction is complete, a licence agreement is to be entered into between Council and Penshurst Panthers Junior AFL Club, to have occupancy of a specified area within the building comprising of approximately 15m2 of storage space.  A location plan is annexed to this report (Attachment 1).

9.   In order to progress the matter, Council must now enter into licence with the Club in accordance with Council’s Community Lease Policy.

10. The General Manager has delegated authority to enter into a licence agreement with Penshurst Panthers Junior AFL Club at Olds Park for a period of three (3) years with a further two (2) year option.  It is intended to enter into a licence agreement as generally detailed in this report.

 


 

Financial Implications

11.    Council’s minimum rental in accordance with the Community Lease Policy is $479 per annum plus GST. 

12.    Whilst Council’s Valuer has adopted a rate of $20 per square metre per annum plus GST for storage areas on community land ($300 per annum plus GST for this site), the minimum rental will be applied in accordance with the Policy.

 

Community Engagement

13. Public notification of the proposed licence to Penshurst Panthers Junior AFL Club will be advertised in accordance with Section 47A of the Local Government Act, 1993.

 

File Reference

18/491

 

 

 

ATTACHMENTS

Attachment 1

Location Plan

 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN111-18              Property Matter - Licence Agreement for Penshurst Panthers Junior AFL Club, Olds Park

[Appendix 1]          Location Plan

 

 

Page 64

 


 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 66

Item:                   FIN112-18          Property Matter - Licence Agreement for St George Little Athletics, Olds Park  

Author:              Strategic Property Officer

Directorate:      Community and Culture

Matter Type:     Committee Reports

 

 

 

Recommendation

That the report “Property Matter - Licence Agreement for St George Little Athletics, Olds Park” be received and noted.

 

 

Executive Summary

1.      During the General Manager’s recent performance review it was requested that future lease and licence agreements be reported to Council.

2.      Following the construction of a new amenities facility for St George Little Athletics, it is now intended to enter into a licence agreement between Council and the Club for occupation of part of the facility.

3.      The facility which is located within Olds Park at 630 Forest Road, Penshurst, will be occupied under licence for a three (3) year period with a further two (2) year option.  The purpose of the proposed licence agreement will be for storage of sporting equipment.

 

Background

4.   Georges River Council is the owner of Lot 2 in Deposited Plan (DP) 433674 known as Olds Park at 630 Forest Road, Penshurst.

5.   In June 2018, a report to Council outlined a proposal to undertake refurbishment works at the Olds Park Amenities Building.

6.   The purpose of the works was to upgrade the existing change room and storage facilities for the sporting associations that currently use this building. 

7.   Construction of the refurbishment works is currently underway and due to be completed in December 2018.

8.   Once construction is complete, a licence agreement is to be entered into between Council and St George Little Athletics, to have occupancy of a specified area within the building comprising of approximately 15m2 of storage space.  A location plan is annexed to this report (Attachment 1).

9.   In order to progress the matter, Council must now enter into licence with the Club in accordance with Council’s Community Lease Policy.

10. The General Manager has delegated authority to enter into a licence agreement with St George Little Athletics at Olds Park for a period of three (3) years with a further two (2) year option.  It is intended to enter into a licence agreement as generally detailed in this report.

 


 

Financial Implications

11.    Council’s minimum rental in accordance with the Community Lease Policy is $479 per annum plus GST. 

12.    Whilst Council’s Valuer has adopted a rate of $20 per square metre per annum plus GST for storage areas on community land ($300 per annum plus GST for this site), the minimum rental will be applied in accordance with the Policy.

 

Community Engagement

13. Public notification of the proposed lease to St George Little Athletics will be advertised in accordance with Section 47A of the Local Government Act, 1993.

 

File Reference

18/491

 

 

 

ATTACHMENTS

Attachment 1

Location Plan

 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN112-18              Property Matter - Licence Agreement for St George Little Athletics, Olds Park

[Appendix 1]          Location Plan

 

 

Page 68

 


 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 70

Item:                   FIN113-18          Property Matter - Licence Agreement for Riverwood Legion Club, Riverwood Park  

Author:              Strategic Property Officer

Directorate:      Community and Culture

Matter Type:     Committee Reports

 

 

 

Recommendation

That the report “Property Matter - Licence Agreement for Riverwood Legion Club, Riverwood Park” be received and noted.

 

 

Executive Summary

1.      During the General Manager’s recent performance review it was requested that future lease and licence agreements be reported to Council.

2.      Following the construction of a new amenities facility for the Riverwood Legion Club, it is now intended to enter into a licence agreement between Council and the Club for occupation of part of the facility.

3.      The facility, which is located within Riverwood Park at 79 Coleridge Street, Riverwood, will be occupied under licence for a three (3) year period with a further two (2) year option.  The purpose of the proposed licence agreement will be for storage of sporting equipment.

 

Background

4.   Georges River Council is the owner of Lot A in Deposited Plan (DP) 325838.  The land is known as Riverwood Park and is located at 79 Coleridge Street, Riverwood.

5.   In June 2018, a report to Council outlined a proposal to undertake refurbishment works at the Riverwood Park Amenities Building.

6.   The purpose of the works was to upgrade the existing change room and storage facilities for the sporting association currently located at Riverwood Park, being the Riverwood Legion Club. 

7.   Construction of the refurbishment works is currently underway and due to be completed in December 2018.

8.   Once construction is complete, a licence agreement is proposed to be entered into between Council and the Riverwood Legion Club, for the occupancy of approximately 30m2 within the building for storage purposes.  A building plan is annexed to this report (Attachment 1).

9.   In order to progress the matter, Council must now enter into licence with the Club in accordance with Council’s Community Lease Policy.

10. The General Manager has delegated authority to enter into a licence agreement with Riverwood Legion Club at Riverwood Park for a period of three (3) years with a further two (2) year option.  It is intended to enter into a licence agreement as generally detailed in this report.

 


 

Financial Implications

11.    Council’s minimum rental in accordance with the Community Lease Policy is $479 per annum plus GST. 

12.    Whilst Council’s Valuer has adopted a rate of $20 per square metre per annum plus GST for storage areas on community land ($300 per annum plus GST for this site), the minimum rental will be applied in accordance with the Policy.

 

Community Engagement

13.    Should Council resolve to enter into licence, public notification will be undertaken in accordance with Section 47A of the Local Government Act,1993.

 

File Reference

18/491

 

 

 

ATTACHMENTS

Attachment 1

Building Plan

 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN113-18              Property Matter - Licence Agreement for Riverwood Legion Club, Riverwood Park

[Appendix 1]          Building Plan

 

 

Page 72

 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 73

Item:                   FIN114-18          Property Matter - Licence Agreement for Kingsgrove Colts, Beverly Hills Park 

Author:              Strategic Property Officer

Directorate:      Community and Culture

Matter Type:     Committee Reports

 

 

 

Recommendation

That the report “Property Matter - Licence Agreement for Kingsgrove Colts, Beverly Hills Park” be received and noted.

 

 

Executive Summary

1.    During the General Manager’s recent performance review it was requested that future lease and licence agreements be reported to Council.

2.    Following the construction of a new amenities facility for the Kingsgrove Colts, it is now intended to enter into a licence agreement between Council and the Club for occupation of part of the facility.

3.    The facility which is located within Beverly Hills Park, located at 199 Vanessa Street, Beverly Hills, will be occupied under licence for a three (3) year period with a further two (2) year option.  The purpose of the proposed licence agreement will be for storage of sporting equipment.

 

Background

4.   Georges River Council is the owner of Lot 506 in Deposited Plan (DP) 14854 known as Beverly Hills Park and located at 199 Vanessa Street, Beverly Hills.

5.   In June 2018, a report to Council outlined a proposal to undertake refurbishment works at the Beverly Hills Amenities Building.

6.   The purpose of the works was to upgrade the existing change room and storage facilities for the sporting associations that currently use the building. 

7.   Construction of the refurbishment works is currently underway and due to be completed in December 2018.

8.   Once construction is complete, a licence agreement is proposed to be entered into between Council and the Kingsgrove Colts, for occupancy of a specified area within the building that comprises approximately 350m2 of storage space.  A location plan is annexed to this report (Attachment 1).

9.   In order to progress the matter, Council must now enter into licence with the Club in accordance with Council’s Community Lease Policy.

10. The General Manager has delegated authority to enter into a licence agreement with Kingsgrove Colts at Beverly Hills Park for a period of three (3) years with a further two (2) year option.  It is intended to enter into a licence agreement as generally detailed in this report.

 


Financial Implications

11.  Council’s Valuer has adopted a rate of $20 per square metre per annum plus GST for storage areas on community land.  This will equate to $7,000 per annum plus GST.  Should the Club apply for a subsidy in accordance with the Community Lease Policy, the minimum rental applicable will be $479 per annum plus GST.

 

Community Engagement

12. Public notification of the proposed lease to the Kingsgrove Colts will be advertised in accordance with Section 47A of the Local Government Act, 1993.

 

 

File Reference

18/491

 

 

 

ATTACHMENTS

Attachment 1

Location Plan

 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN114-18              Property Matter - Licence Agreement for Kingsgrove Colts, Beverly Hills Park

[Appendix 1]          Location Plan

 

 

Page 75

 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 76

Item:                   FIN115-18          Property Matter - Proposed Lease of 31 Thurlow Street Riverwood, Riverwood Community Centre  

Author:              Strategic Property Officer

Directorate:      Community and Culture

Matter Type:     Committee Reports

 

 

 

Recommendation

That the report “Property Matter – Proposed Lease of 31 Thurlow Street Riverwood, Riverwood Community Centre” be received and noted.

 

 

Executive Summary

1.   During the General Manager’s recent performance review it was requested that future lease and licence agreements be reported to Council.

2.   Riverwood Community Centre wish to enter into a lease agreement to occupy the premises at 31 Thurlow Street, Riverwood for period of three (3) years with a further two (2) year option.  The purpose of the proposed lease will be for the provision of community services.

3.   Following the application of subsidies in accordance with Council’s Community Lease Policy, the Lessee will be required to pay the minimum community rental lease fee of $479 per annum plus GST with all lease terms as detailed in the table below. 

 

Background

4.   Georges River Council is the owner of the Riverwood Community Centre which is situated upon on land described as Lot 29 in Deposited Plan (DP) 35640 and located at 31 Thurlow Street, Riverwood.  A location plan is annexed to this report as Attachment 1.

5.   Riverwood Community Centre entered into a lease agreement with the former Hurstville City Council between the periods January 2003 to January 2010 and has been managed thereafter in accordance with the lease holdover provisions. 

6.   Council commenced negotiations Riverwood Community Centre to ensure that their occupancy is secured by a current lease agreement in accordance with Council’s Community Lease Policy.  In this regard, the terms of the new lease have now been agreed to in principle between the parties.

7.   An independent valuation was undertaken to determine a suitable market rental for the premises.  Details of the valuation are provided as Attachment 2 to this report (confidential).  Please note that the subject valuation advice is for multiple community facilities.  Details for Riverwood Community Centre can be found on page 9.

8.   Riverwood Community Centre has made a submission for a rental subsidy in accordance with Council’s Community Lease Policy.   The panel assessing the subsidy application determined that the community group was eligible for a rental subsidy in the order of 100%.

9.   A 100% subsidy is less than the Policy’s minimum rental amount of $479 per annum plus GST.  As such the minimum rental amount of $479 per annum (plus GST) will apply.   Further terms of the proposed lease are provided in the table below:

 

Lessor

Georges River Council

Lessee

Riverwood Community Centre

Address

31 Thurlow Street, Riverwood

Area

Land – 334 sqm

Building – 235 sqm

Rental

$479 per annum gross plus GST

Usage

Community Services

Lease Term

Three (3) years

Option

Two (2) year option

Lease Commencement

1 January 2019

Rent Commencement

1 January 2019

Rent Review

In accordance with fees and charges

Lease Expiry

31 December 2021

Guarantee/Bond

Security - $120.00 (Equivalent to 3 months’ rent)

Key Bond - $200 (cost of replacement – 1x key)

 

Lessor Works

 Painting to exterior

Lessee Works

Lessee to be responsible for all maintenance works

Legal Costs

Lessee to pay Council’s reasonable legal costs

Special Conditions

1.   Subject to Council approval

2.   Insurance – lessee to keep a current policy covering public liability ($20 million) noting the lessor an interested party.

 

10. The General Manager has delegated authority to enter into a lease agreement with Riverwood Community Centre at 31 Thurlow Street, Riverwood for a period of three (3) years with a further two (2) year option.  It is intended to enter into a lease agreement as generally detailed in this report.

 

Financial Implications

11.  In accordance with Council’s Community Lease Policy, Riverwood Community Centre is eligible for a total subsidy.  In this regard, the Centre will be charged the minimum rental of $479 per annum plus GST.

 


 

Community Engagement

12. Advertising of this lease is not required in accordance with the community provisions of the Local Government Act, 1993 as 31 Thurlow Street, Riverwood is classified as operational land.

 

File Reference

18/491

                                                

 

 

ATTACHMENTS

Attachment 1

Location Plan - 31 Thurlow St Riverwood

Attachment 2

Valuation Advice - Community Properties (Confidential)

 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN115-18              Property Matter - Proposed Lease of 31 Thurlow Street Riverwood, Riverwood Community Centre

[Appendix 1]          Location Plan - 31 Thurlow St Riverwood

 

 

Page 79

 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 80

Item:                   FIN116-18          Property Matter - Deed of Licence for St George Creative Art and Craft Centre  

Author:              Strategic Property Officer

Directorate:      Community and Culture

Matter Type:     Committee Reports

 

 

 

Recommendation

That the report “Property Matter - Deed of Licence for St George Creative Art and Craft Centre” be received and noted.

 

 

Executive Summary

1.   During the General Manager’s recent performance review it was requested that future lease and licence agreements be reported to Council.

2.   St George Creative Art and Craft Centre wish to enter into a Deed of Licence (Licence) to occupy the building at 23 St Georges Road, Penshurst for a three (3) year term with a further two (2) year option. The purpose of the proposed Licence will be for the provision of community services.

3.   Following the application of subsidies in accordance with Council’s Community Lease Policy, the tenant will be required to pay $1,100 per annum plus GST.

 

Background

4.   Georges River Council is the owner of the St George Creative Art and Craft Centre which is located on land described as Lot 101 in Deposited Plan (DP) 586060, located at the rear of Pole Depot Park at 23 St Georges Road, Penshurst.  A location plan is provided (Attachment 1).

5.   St George Creative Art and Craft Centre have been in occupation at the premises for over fifteen years and have been providing art and craft related services to the community during this time.

6.   Georges River Council has now engaged with St George Creative Art and Craft Centre in relation to entering into a new Licence for the facility in accordance with Council’s Community Lease Policy.  In this regard, the terms of the new Licence have now been agreed to in principle between the parties.

7.   An independent valuation was undertaken to determine a suitable market rental for the property.  Details of the valuation are provided as Attachment 2 to this report (confidential).  The valuation advice on property can be found on page 9.

8.   St George Creative Art and Craft Centre has made a submission for a rental subsidy in accordance with Council’s Community Lease Policy.   The panel assessing the subsidy application determined that the community group was eligible for a rental subsidy of 90-100%.

9.   Details of the proposed Licence terms are provided below:

 

Lessor

Georges River Council

Licensee

St George Creative Art and Craft Centre

Address

23 St Georges Road, Penshurst 

Area

Building – 440sqm

Rental

$  1,100 per annum (plus GST)

Usage

Community Services

Licence Term

Three (3) years

Option

Two (2) year option

Commencement Date

1 January 2019

Rent Commencement

1 January 2019

Rent Review

In accordance with fees and charges

Expiry Date

31 December 2021

Guarantee/Bond

Security - $120.00

Key Bond - $200.00 (cost of replacement – 1x key)

Licensor Works

 Licensor to be responsible for all external maintenance woks  

Licensee Works

Licensee to be responsible for all internal maintenance works

Legal Costs

Licensee to pay Council’s reasonable legal costs

Special Conditions

1.   Subject to Council approval

2.   Insurance – Licensee to keep a current policy covering public liability ($20 million) noticing Council as an interested party.

 

10. The General Manager has delegated authority to enter into a deed of licence with St George Creative Art and Craft Centre at 23 St Georges Road, Penshurst for a period of three (3) years with a further two (2) year option.  It is intended to enter into a deed of licence as generally detailed in this report.

 

Financial Implications

11. Council’s Valuer has adopted a rate of $22,000 per annum plus GST for the building on community land.  The St George Creative Art and Craft Centre will receive a 95% rental subsidy in accordance with the policy.  The applicable rental will be $1,100 per annum plus GST.

 


 

Community Engagement

12.  Should the Licence be approved, public notification of the proposed agreement to St George Creative Art and Craft Centre will be undertaken in accordance with Section 47A of the Local Government Act, 1993.

 

 

File Reference

17/3230

 

 

 

ATTACHMENTS

Attachment 1

Location Plan

Attachment 2

Valuation Advice - Council's Community Properties (Confidential)

 


Georges River Council -         Finance and Governance Committee - Monday, 3 December 2018

FIN116-18              Property Matter - Deed of Licence for St George Creative Art and Craft Centre

[Appendix 1]          Location Plan

 

 

Page 83

 


 


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 85

Item:                   FIN117-18          Membership of Southern Sydney Region Organisation of Councils (SSROC) 

Author:              Executive Services Officer

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation:

That Council investigate the costs and benefits of not renewing membership of the Southern Sydney Regional Organisation of Councils, and that a further report be provided to Council at the earliest opportunity regarding the outcome of these investigations.

 

 

Executive Summary

1.      Council currently holds membership with the Southern Sydney Regional Organisation of Councils (SSROC), the cost of which is $77,000 for the 2018/2019 financial year.

2.      In addition to this membership, Council is also currently a member of Local Government New South Wales (LGNSW) which has a procurement function through Local Government Procurement (LGP) and provides a duplication of benefits to those provided by SSROC. Membership to LGNSW has cost $66,408 for the financial year.

3.      As Council is a party to a number of procurement contracts tendered by SSROC, it is recommended that further investigation be undertaken to determine the financial and contractual consequences of not renewing Council’s SSROC membership.

4.      Additionally, it is recommended that Council investigate alternate models to determine which model would provide the best value in terms of advocacy, regional strategic policy and plan making and alignment with communities of interest.

Background

5.      Council at its meeting held 28 May 2018 considered item FIN041-18 and Resolved;

(a)     That Council endorse the Southern Sydney Regional Organisation of Councils (SSROC) proposal to establish a Council of Mayors and the implementation of an appropriate business model as outlined in the attached report - SSROC Council of Mayors and Incorporation (December 2017).

(b)     That SSROC be advised that Council requires the alternate delegate to the Mayor to be appointed by a resolution of Council.

(c)     That the General Manager provides a report reviewing the ongoing membership of SSROC.

6.      SSROC was formed in 1986 and currently consists of eleven member councils being Bayside, Burwood, Canterbury Bankstown, City of Canada Bay, City of Sydney, Georges River, Inner West, Randwick City, Sutherland Shire, Waverley and Woollahra.

7.      SSROC membership affords the following advantages and benefits:

(a)     SSROC provides a forum through which member councils can interact, exchange ideas and work collaboratively to solve regional issues and contribute to the future sustainability of the region.

(b)     The organisation advocates on behalf of the region to ensure that the major issues are addressed by all levels of government, including responsive planning mechanisms, infrastructure services and amenities, waste and resource recovery, urban development strategy, environment, transport and procurement. A comprehensive overview of advocacy issues and other SSROC programs are contained in its Member Value Statement available on its website http://ssroc.nsw.gov.au/ssroc-member-value-statement/

(c)     Participation by Council staff in specialist interest groups established by SSROC.  The benefits include combined purchasing power, information on the latest innovation and technology trends and regional transport changes and initiatives.

8.      The challenges associated with continuing membership of SSROC include:

(a)     Cost and value of ongoing membership, which for the 2018/2019 period is $77,000.

(b)     Differences between member councils as to advocacy being undertaken by SSROC which may not be relevant to their community or identity.

(c)     Procurement services offered by SSROC are available through other procurement bodies that Council is already accessing including LGP, State Government Contracts and Procurement Australia.  Contracts that can be sourced via these methods can be done so without additional subscription costs.

9.      Council is also a member of LGNSW. This organisation provides a range of services similar to SSROC such as procurement services, advocacy on local and regional issues across all levels of government, strong media presence, industry research, training (staff and councillor), special interest groups for staff and major projects which benefit local government as a whole.

10.    In regards to LGNSW, the 2018/2019 membership fee is $66,408.  In addition to this, management fees for the utilisation of LGP are charged at a minimum of 1% calculated on the total expenditure involved in utilising its vendor panel.  A rebate is then paid annually calculated on total contract value awarded.   As evidenced above, Council is essentially paying membership of two organisations to attract the same benefit in terms of advocacy and procurement services.

11.    If Council was to no longer be a member of the SSROC, Council would still be able to access the procurement services of LGNSW - LGP and utilise State Government Contracts and Procurement Australia endorsed suppliers, which could allow Council to achieve the same purchasing outcomes without the additional outlay of $77,000 per year.

12.    Council should investigate the economic viability of establishing a cooperative arrangement with other neighbouring councils via the pooling of resources in regard to larger group procurement on identified contracts.

 

Financial Implications

13.    For the financial year 2018/2019 Council will pay a membership fee of $77,000 for SSROC and an LGNSW membership fee of $66,408, being a total of $143,408. Council can potentially save $77,000 per annum if it chooses to not renew its SSROC Membership.

14.    In the event of the establishment of an alternate model of procurement the ongoing operational costs could possibly be offset by cost savings as compared to Council’s current model of procurement. Further detailed research on possible financial benefits will need to be undertaken.

 


 

Risk Implications

15.   Legal advice was sought on the potential ramifications to Council vis a vis its SSROC Supplier Contracts if it withdraws from the SSROC. The advice has confirmed that Council has entered into those contracts directly with the specific suppliers.  Accordingly, Council’s withdrawal from SSROC does not directly impact upon the individual Supplier Contracts.  However, under the SSROC Constitution, Council must give six (6) months written notice of its withdrawal from SSROC.  It must also continue to pay any fees due to SSROC for the financial year in which the Supplier Contract was executed by Council, and further, any fees or commissions due to SSROC under a Supplier Contract will remain payable for the term of that contract.

 

Conclusion

16.    There is a large overlap between the services offered by SSROC and LGNSW.  On this basis, and subject to final legal advice on individual SSROC contracts, it does not appear that Council would be disadvantaged in the long term, from a procurement or advocacy perspective, by not renewing its membership in SSROC.  This is because of Council’s membership of LGNSW and its ability to participate in procurement schemes offered by LGNSW, Procurement Australia and State Government Contracts.

17.    Before a final decision is made, the status of Council contracts arising from SSROC procurement must be clarified to determine whether there are any short term impacts for Council on current contracts through not renewing membership of SSROC.

18.    However, based on initial investigation it appears that membership of both SSROC and LGNSW creates a duplication of services and it is likely to be in Council’s financial interests to remove this duplication.

19.    At this stage it is recommended that further investigation of the short and long term financial and contractual implications of Council not renewing SSROC membership be undertaken to ascertain the financial benefits/costs and to investigate alternate models to determine which model would provide the best value in terms of advocacy, regional strategic policy and plan making and alignment with communities of interest.

 

File Reference

D18/107189

 

 

 

 

ATTACHMENTS

Attachment 1

SSROC Case Membership - Legal Opinion for Council Report 26 11 2018 (Confidential)

   


Georges River Council – Finance and Governance Committee -  Monday, 3 December 2018                                    Page 88

Confidential items (Closed 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 Meeting at which the press and public are excluded.

 

FIN017A-18       Supreme Court Proceedings 2018/215935 (Request for Land Owner's Consent - 59 Park Road, Kogarah Bay)

(Report by Director Legal Services and General Counsel)

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) (g) it is considered the matter contains advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege.

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 contains advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege.

 

FIN018A-18       Jubilee Stadium Naming Rights Expressions of Interest

(Report by Executive Manager Premium Facilities and Properties)

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.