Agenda


Finance and Governance Committee

 

Monday, 11 March 2019

Description: C:\Users\scamilleri\AppData\Local\Hewlett-Packard\HP TRIM\TEMP\HPTRIM.5492\D17 69371  GRC logo_STYLE 4(2).JPG6.00pm

 

Georges River Civic Centre

Hurstville

 

 

 

 


Georges River Council – Finance and Governance Committee -  Monday, 11 March 2019                                          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 - 11 February 2019

6.      Committee Reports

FIN012-19         Advice on Costs and Status of Council's Court Proceedings - February 2019

(Report by Director Legal Services and General Counsel).................................... 3

FIN013-19         Property Matter - 25D Rona Street Peakhurst - Proposed Easement to Drain Water

(Report by Strategic Property Officer)......................................................................... 5

FIN014-19         Review of Council's Code of Conduct and the Procedures for the Administration of the Code of Conduct

(Report by Manager Governance and Risk).............................................................. 5

FIN015-19         Adoption of new Georges River Council Code of Meeting Practice incorporating mandatory provisions of the Model Code of Meeting Practice

(Report by Manager, Office of the General Manager)............................................. 5

FIN016-19         Georges River Council Property Portfolio Report

(Report by Strategic Property Specialist).................................................................... 5

FIN017-19         Investment Report as at 31 January 2019

(Report by Senior Financial Accountant - Reporting)............................................. 5

FIN018-19         2018/19 Half Yearly Progress Report and Quarterly Budget Review Statement for Quarter Ending 31 December 2018.

(Report by Senior Corporate Planner)........................................................................ 5

FIN019-19         Audit, Risk and Improvement Committee Minutes from 29 October 2018

(Report by Internal Auditor).......................................................................................... 5  

 

 


Georges River Council – Finance and Governance Committee -  Monday, 11 March 2019                                          Page 3

Committee Reports

Item:                   FIN012-19 Advice on Costs and Status of Council's Court Proceedings - February 2019 

Author:              Director Legal Services and General Counsel

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

Recommendation

That the report “Advice on Costs and Status of Council’s Court Proceedings – February 2019” be received and noted.

 

Executive Summary

1.      Advice on Council’s Court proceedings for the period 31 January 2019 to 28 February 2019 is contained within this report.

2.      Total costs to date for the 2018/19 financial year for Court proceedings are $852,966.

3.      Total legal costs recovered to date for the 2018/19 financial year are $520,236.

4.      Total nett costs are $332,730.

 

Background

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

Supreme Court

·        3 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

·        4 x Council Prosecutions

·        1 x Prosecutions (brought by NSW Police – concerning threats/assaults on staff)

Cost Recovery

·        3 x cost recovery matters

New Matters

6.      There was one new Supreme Court matter received during this period (Taeipo Malifa).

Finalised matters

7.      Five matters were finalised – (Lateral Estate Pty Limited), (Stellar Hurstville Pty Limited), (Austyle Projects Pty Limited), (Krimzis) and (Mitchell).

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

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 2019.  S34 Agreement has been reached and is being finalised by the Court.

External heritage, traffic and urban design expert retained.

2

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 2019.

External traffic, heritage and urban design briefed. 

3

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.

 

4

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.

5

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 was not resolved at the S34 Conference on 27 November 2018 and has been listed for hearing on 27 & 28 June 2019. 

External solicitor, planner and traffic expert have been retained.

 

6

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 hearing on 24 & 25 June 2019.

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

7

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 was not resolved at S34 Conference on 3 December 2018 and has been listed for hearing on 1 and 2 July 2019. 

External planner, heritage and urban design experts retained.

8

36 Bunyala Street, Blakehurst

Applicant: Lateral Estate Pty Limited

 

Proceedings No: 2018/201275

 

SSPP concurrence authority

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.  S34 Agreement entered into.

 

9

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 was not resolved at S34 Conference on 20 December 2018   Matter is listed for a further directions hearing on 15 March 2019 with a view to entering into a S34 Agreement.

External lawyer, planner and urban design experts briefed.

10

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 was listed for S34 Conference on 24 January 2019 however was not resolved. 

Matter is listed for hearing on 15 and 16 August 2019.

11

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.

 

12

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 and 18 June 2019.

External lawyer retained.

13

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.

14

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.

15

32 – 38 Montgomery Street, Kogarah

 

Applicant:  Lateral Estate Pty Limited

 

Proceedings No: 2018/260971

 

SSPP concurrence authority

 

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 was listed for S34 Conference on 12 December 2018 however was not resolved.  Matter has been set down for hearing on 29, 30, 31 July and 1 August 2019. 

External planning, urban design and heritage briefed.

16

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.

17

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.


 

18

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 2019. 

External planning and urban design experts retained.

19

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 2019.

External traffic expert briefed.

20

31 & 31A Regent Street, Kogarah

 

Applicant:  Peter Thanos

 

Proceedings No: 2018/363618

Class 1 Appeal against deemed refusal of DA2018/0214 for the demolition of existing building and construction of a 16 room new generation boarding house comprising 1 ground floor commercial tenancy and a car park for 5 vehicles and 4 motorcycle spaces.

 

Matter listed for S34 Conference on 23 July 2019.

21

143 – 145 Rocky Point Road, Beverley Park

 

Applicant:  Adouni & Raad Pty Limited

 

Proceedings No: 2018/369087

 

Class 1 Appeal against deemed refusal of DA2018/0429  for the demolition of existing building and the construction of a residential flat building, basement car parking, landscaping and associated works

Matter listed for S34 Conference on 31 July 2019.


 

22

3 Gray Street, Kogarah

 

Applicant: Best Build NSW Pty Limited

 

Proceedings No: 2018/393349

 

Class 1 Appeal against deemed refusal of DA2018/0201 for the demolition of existing building and the construction of a 6 storey boarding house comprising 44 rooms including site manager room over basement car parking

Matter listed for S34 Conference on 28 August 2019.

23

301 Kingsgrove Road, Kingsgrove

 

Applicant: Futuristic Design Pty Limited

 

Proceedings No: 2018/390589

 

Class 1 Appeal against refusal of DA2017/0487 for the demolition of all structures and construction of a two (2) storey child care centre for forty seven (47) children and basement car parking

Matter listed for S34 Conference on 19 August 2019.

External lawyer has been briefed.

24

22 Empress Street, Hurstville

 

Applicant: Erdogan Kasif

 

Proceedings No: 2019/9753

 

Appeal against deemed refusal of DA2018/0441 for partial demolition of existing structures and construction of a residential flat building containing 6 apartments with basement car parking

Matter listed for S34 Conference on 13 September 2019.

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.

At the hearing on 12 and 13 December 2018 Consent Orders were entered, which the respondent has failed to comply with.  Matter is listed for hearing of a Notice of Motion on 18 March 2019.

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.

Respondent has failed to comply with Court Orders dated 21 August 2018 requiring demolition of unauthorised structure.

Contempt proceedings are listed for hearing on 15 April 2019.

External lawyers briefed.

3

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 payments made in October and December 2018.  Respondent has agreed to Consent Orders to pay Council’s costs and finalise payment of all outstanding monies and obligations by 31 March 2019.

4

297 Rocky Point Road, Sans Souci

Parties:

Alan Frederick Goddard

Proceedings No.:

2018/366019

Proceedings commenced for hoarding at property.

Matter is listed for hearing on 2 September 2019.

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.

 

Council’s evidence in chief filed.

Matter listed for further directions 8 March 2019 at which time defendants are to enter a plea.

Local Court Proceedings

1

10 Tasker Avenue, Peakhurst

Parties:

Steve Krimizis

Police prosecution

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

 

Matter has heard on 8 February 2019. Defendant was found guilty and served with a 2 year Community Corrections Order and $500 infringement.

Council has a watching brief.

2

50 Queens Road, Connells Point

 

Parties: SAF Developments Pty Limited

Prosecution for 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.

 

Defendant has pleaded guilty to 4 offences.  Matter fixed for hearing on sentence 14 June 2019.

 

3

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.  Defendant entered a late guilty plea during the course of the hearing and was ultimately fined $30,000 for DA breaches, $800.00 for the Roads Regulation contraventions and Council was awarded $3,000 in costs.  Total amount payable by the Defendant is $33,800.

 

4

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

 

Parties: Jiongyao Lin & L Z Infinity Pty Limited

 

Prosecution for multiple breaches of the Food Act.  Defendant has closed business and is unable to be located.  Application for substituted service to be made.

Matter is listed for plea or mention on 12 March 2019. 

 

5

Parties: Ross Mitchell

 

Parking matter

Matter is listed for plea or mention on 21 February 2019.  The Defendant entered a guilty plea and sought a Section 10 which was granted by the Magistrate.

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 formal mediation on 25 February 2019 before Mr Ian Cullinan.  Matter was unable to be resolved.  Proceedings are now listed for directions on 29 March 2019 in the Real Property List.  Strike out application to be filed and returnable on that day.

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.  Matter is listed for Council’s strike-out application of the proceedings on 15 March 2019.

 

3

977 Forest Road, Lugarno

 

Parties: Taeipo Malifa

Proceedings No. 2019/43432

Proceedings seeking leave to appeal Land and Environment Court decision of 12 December 2018.

Matter is listed for first directions on 18 March 2019.

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.  Awaiting sale of property.  Auction scheduled to take place on 16 March 2019.

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. Matter referred to Council’s debt recovery team. A Writ of Execution has been filed and we are awaiting notification from the sheriff’s office.

3

11 Stanley Street & 28 – 36 Victoria Street, Kogarah

 

Applicant: No. 1 Victoria Dragons Pty Limited

Proceedings No. 217118 of 2017

Kogarah North Precinct

 

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

Section 34 Agreement entered into.  Appeal upheld with amended plans on 23 October 2018 which are height and FSR compliant.

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.  Costs not paid.  Matter referred to Council’s debt recovery team.  A Creditor’s Statutory Demand will be issued.

 

9.   Costs to date are as follows:

 

Type

Amount

Class 1 Appeals – Consultants for Court Proceedings

$381,475.00

Class 1 Appeals – Planning DA External Lawyers

$280,158.00

Class 2 Appeals

$0

Class 3 Appeals

$0

Class 4 Appeals

$88,061.00

Class 5 Appeals

$27,636.00

Local Court Prosecutions/Enforcements

$36,153.00

Supreme Court Proceedings

$39,483.00

Industrial Relations Commission (IRC)

$0

Total

$852,966.00

 

 

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, 11 March 2019                                          Page 16

Item:                   FIN013-19          Property Matter - 25D Rona Street Peakhurst - Proposed Easement to Drain Water 

Author:              Strategic Property Officer

Directorate:      Community and Culture

Matter Type:     Committee Reports

 

Recommendation

(a) That Council grant an Easement to Drain Water over Lot 15 in Deposited Plan (DP) 26426 and Lot A in DP400173 being part of Beale Reserve, Peakhurst as generally detailed in this report.

(b) That the General Manager be authorised to execute the s88B Instrument or Transfer Granting Easement and all associated documentation to create the easement and under Common Seal of the Council, if required.

(c)  That all costs associated with the granting of the easement be met by the applicant.

 

 

Executive Summary

1.   As a condition of Development Consent DA2018/0199, the owner of 25 Rona Street, Peakhurst is required to obtain an Easement to Drain Water over adjoining Council owned land described as Lot 15 DP 26426 and Lot A DP 400173 and situated within Beale Reserve.

2.   The proposed easement is 1m wide by 143m long and will permit a subsurface drainage connection to an existing drainage facility located within the reserve.

3.   The purpose of this report is to seek approval to grant the proposed easement at market value.

 

Background

4.   Georges River Council is the registered proprietor of a parcel of open space land known as Beale Reserve.  The reserve is located at 25D Rona Street, Peakhurst and is legally described as Lot 15 in DP 26426 and Lot A in DP 400173.  A location plan is annexed to this report as Attachment 1.

5.   Council has received a request from the owner of 25 Rona Street, Peakhurst for an easement to drain water from their property to the existing public drainage infrastructure located within the adjoining Beale Reserve.

6.   The proposed easement is a condition of approved Development Consent DA2018/0199.  This development consent relates to the construction of a granny flat.

7.   The proposed easement to drain water will be granted over a Council owned parcel of “community classified land”.  In accordance with community provisions of the Local Government Act 1993, Council is permitted to grant easements for drainage over community classified land in order to allow connection into existing public storm water drainage facilities located within public reserves.

8.   The proposed subsurface easement will encumber Council’s land by approximately 143.5m2 and will permit connection into the existing public drainage infrastructure within Beale Reserve.

 

Financial Implications

9.   In exchange for granting the proposed easement, the applicant will be required to pay market value consideration for encumbering Council’s land.  The market value determination is annexed to this report as Attachment 2

10. In addition to the determined market value, the applicant has agreed to pay Council’s incurred valuation, legal and all associated easement survey, lodgement and registration costs as well as costs for the necessary infrastructure works and subsequent make good. 

 

Risk Implications

11. No risks identified.

 

Community Engagement

12. Community engagement is not required for this report.

 

File Reference

18/1559

 

 

 

ATTACHMENTS

Attachment 1

Finance and Governance Committee 11 March 2019 - 25D Rona St Peakhurst - Easement Location Plan

Attachment 2

Valuation Advice - 25 Rona St Peakhurst - Proposed Easement to Drain Water (Confidential)

 


Georges River Council -         Finance and Governance Committee - Monday, 11 March 2019

FIN013-19              Property Matter - 25D Rona Street Peakhurst - Proposed Easement to Drain Water

[Attachment 1]        Finance and Governance Committee 11 March 2019 - 25D Rona St Peakhurst - Easement Location Plan

 

 

Page 18

 


Georges River Council – Finance and Governance Committee -  Monday, 11 March 2019                                          Page 21

Item:                   FIN014-19          Review of Council's Code of Conduct and the Procedures for the Administration of the Code of Conduct 

Author:              Manager Governance and Risk

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 Recommendation

(a)     That the Draft Code of Conduct and Draft Procedures for the Administration of the Code of Conduct be placed on public exhibition for a period of 14 days.

(b)     That upon the completion of the exhibition period, a further report be provided to Council for the adoption of the Draft Code of Conduct and Draft Procedures for the Administration of the Code of Conduct after considering any submissions and/or feedback received during the public exhibition period.

(c)     That a copy of the Draft Code of Conduct and Draft Procedures for the Administration of the Code of Conduct be forwarded to the Office of Local Government (OLG) and the Independent Commission Against Corruption (ICAC) during the public exhibition period, to seek their feedback on both documents.

 

Executive Summary

1.      With the prescription of the Model Code of Conduct for Local Councils in NSW (the Model Code of Conduct) and Procedures for the Administration of the Model Code of Conduct for Local Councils in NSW (Procedures) in December 2018, Council is now required to adopt a Code of Conduct and Procedures based on these models by the 14 June 2019.

2.      This report outlines amendments that are proposed to the Model Code of Conduct which would see the inclusion of supplementary information in regards to details of Council’s Ethical Conduct Framework (contained in the forward), gifts and benefits, fraud and corruption, a minor change to the definition of Council Official and clauses, which were included in versions of the Draft Model Code of Conduct released prior to the December 2018 Draft.

3.      In line with the Draft Code of Conduct, the Draft Procedures for the Administration of the Model Code of Conduct also includes a forward, which explains Council’s Ethical Conduct Framework and a minor change to the definition of Council Official.

 

Background

4.      A briefing was provided to Councillors on the 18 February 2019 by Dr Lindsay Taylor from Lindsay Taylor Lawyers regarding the key changes to the Model Code of Conduct 2018. Feedback from Councillors at that briefing has been incorporated into the draft documents.

5.      Council has six months from the date of prescription (14 December 2018) to adopt a Code of Conduct and Procedures based on the Prescribed Model Code of Conduct and Procedures, that being the 14 June 2019.

6.      The attached OLG circular provides advice in regards to the processes now required to be undertaken by council, details of the procedures followed in the development of these two documents and changes made by the OLG to the 2018 version of the Model Code of Conduct and Procedures.

7.      In adopting a new Code of Conduct and Procedures Council is able to include supplementary provisions. The following is a summary of supplementary provisions recommended for inclusion (note that supplementary provisions are highlighted in the attached documents in blue):

 

Procedures for the Administration of the Model Code of Conduct

 

Forward

·        A forward has been included outlining Council’s Ethical Conduct Framework, which includes the Code of Conduct, the Code of Meeting Practice and Statement of Business Ethic;

 

Part 2 - Definitions

·        The definition of a Council Official has been expanded to include contractors, members of the Audit Risk and Improvement Committee and members of Reference Panels.

 

Code of Conduct

 

The Code of Conduct has been amended in line with the supplementary provisions as detailed above for the Procedures; additionally it is recommended that the following supplementary provisions be included:

 

Part 3 - General Conduct Obligations

 

Land use planning, development assessment and other regulatory functions

 

·        Clauses 3.15 and 3.16 require the recording of meetings and communications with applicants or objectors to planning applications and the disclosure of these by Councillors at council or committee meetings where the planning application is under consideration.

 

Fraud and corruption prevention

 

·        Clauses 3.25, 3.26 3.27 require that you must not engage in any act of fraud and/or corruption, and place a positive onus on the individual to report, and must not ignore or condone any act of such a nature.

 

Part 6 – Personal Benefit

 

·        Clauses 6.5, 6.6, 6.7, 6.8 and 6.9 include supplementary information which is consistent with Council’s current adopted Code of Conduct, being that when Council Officials are offered a gift or benefit that they decline. The sections in the Model Code of Conduct titled ‘Gifts and benefits of token value’ and ‘Gifts and benefits of more than token value’ have been removed from the draft Code of Conduct document as it conflicts with Council’s current stance of zero acceptance of gifts or benefits.

 

 

Part 8 – Access to Information and Council Resources

 

Internet access and use of social media

 

·        Clause 21 requires that you do not utilise social media to share information that would:

 

o   divulge confidential Council information;

o   breach the Privacy and Personal Information Protection Act 1998;

o   contain allegations of a suspected breach of the Code of Conduct or information regarding the consideration of a matter under the Procedures; and

o   constitute an offence under the Criminal Code Act 1995.

 

Financial Implications

8.      There are no direct financial impacts associated with the adoption of the Code of Conduct and Procedures; costs associated with training of Council officials and Councillors are currently accounted for within relevant training budgets.

 

Risk Implications

9.      The adoption of a revised Code of Conduct supports actions 3.1 and 9.1 of the Enterprise Risk Management Strategy, being the defining and implementation of a strong Code of Conduct. 

 

Community Engagement

10.   The Draft Code of Conduct and Procedures will be placed on public exhibition for a period of 14 days seeking public submissions and/or feedback on both documents. Both documents will also be forwarded to the OLG and the ICAC during the exhibition period, to seek their feedback as well.

 

File Reference

D19/048126; D19/048056; D19/048119

 

 

 

ATTACHMENTS

Attachment 1

OLG Circular 18-44

Attachment 2

Draft Code of Conduct

Attachment 3

Draft Procedures for the Administration of the Code of Conduct

 


Georges River Council -         Finance and Governance Committee - Monday, 11 March 2019

FIN014-19              Review of Council's Code of Conduct and the Procedures for the Administration of the Code of Conduct

[Attachment 1]        OLG Circular 18-44

 

 

Page 30

 


 


 


 


 


 


 


 


 


Georges River Council -         Finance and Governance Committee - Monday, 11 March 2019

FIN014-19              Review of Council's Code of Conduct and the Procedures for the Administration of the Code of Conduct

[Attachment 2]        Draft Code of Conduct

 

 

Page 81

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Georges River Council -         Finance and Governance Committee - Monday, 11 March 2019

FIN014-19              Review of Council's Code of Conduct and the Procedures for the Administration of the Code of Conduct

[Attachment  3]       Draft Procedures for the Administration of the Code of Conduct

 

 

Page 123

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Georges River Council – Finance and Governance Committee -  Monday, 11 March 2019                                          Page 124

Item:                   FIN015-19          Adoption of new Georges River Council Code of Meeting Practice incorporating mandatory provisions of the Model Code of Meeting Practice 

Author:              Manager, Office of the General Manager

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

Recommendation

That Council consider the Supplementary Report on this matter which will be circulated to Councillors prior to the Council Meeting.

 

 

Executive Summary

1.      As soon as the draft Code of Meeting Practice document has been finalised, the Manager, Office of the General Manager will issue a Supplementary Report on this matter.

2.      The Supplementary Report will be published for Councillor consideration.

 

File Reference

D19/50969

 

 

 

  


Georges River Council – Finance and Governance Committee -  Monday, 11 March 2019                                          Page 128

Item:                   FIN016-19          Georges River Council Property Portfolio Report 

Author:              Strategic Property Specialist

Directorate:      Community and Culture

Matter Type:     Committee Reports

 

Recommendation:

That the Council Property Portfolio report be received and noted.

 

 

Executive Summary

1.      At its meeting on 1 May 2017, Council resolved to report regularly on the commercial property portfolio and other associated leases and licences.

 

Background

2.      This report details the performance of Council’s property portfolio. The report includes information on Council’s commercial properties, community properties, commercial car parking and sporting facilities.

3.      There are currently zero (0) arrears on leases and licences.

4.      The report is an evolving document and responds to the ongoing audit of Council’s leases and licences and the execution of new leases and licences.

5.      Commercial Property

Property Address

No. of Current Leases

No. of Vacant Premises

Monthly Rent       (incl. GST)

Annual Rent – Estimated (incl. GST)

Comment

Commercial Office Building - 34 MacMahon Street, Hurstville – (Hurstville House)

24

0

$109,812

$1,317,744

 

Commercial Office Building - 38 Humphreys Lane, Hurstville

3

0

$58,457

$701,484.00

 

Other Leases

 

 

 

 

 

Commercial

17

0

$92,617

$1,111,404

Retail

4

0

$21,615

$259,380

Telecommunications

3

0

$3,974

$47,688

Kogarah Civic Centre Building - 2 Belgrave Street Kogarah

2

1

$17,296

$207,552

Offer accepted on remaining vacant suite. Rental per annum (inc GST) = $66,000.

Total

53

1

$303,771

$3,645,252

 

There is currently a 2% vacancy rate across the commercial property portfolio.

6.      Sporting Facilities

Property

No. of Current Agreements

Hirer or Club

Agreement

Monthly Revenue   (excl. GST)

Annual Revenue    (excl. GST)

Comment

Golf Courses

 

 

 

 

 

$79,134 pa Golf Course Rental + $29,015 pa Club House Rental.

Beverley Park Golf Course

1

Beverley Park Golf Club Ltd

Lease
Beverley Park Golf Club Ltd

$9,012

$108,144

 

 

 

 

 

 

Hurstville Golf Course

2

Hurstville Golf Club

Bluefit Management Agreement

$49,686

$596,232

Revenue includes contribution to utilities and maintenance. Not a NET figure.

Hurstville Golf Club (MoU)

$2,486

$29,832

Swimming Pools/Aquatic Facilities

 

 

 

 

 

Revenue includes contribution to utilities and maintenance. Not a NET figure.

Hurstville Aquatic Leisure Centre

1

NA

Bluefit Management Agreement

$148,865

$1,786,380

Sans Souci Leisure Centre

1

NA

Lease
Hinarni Pty Ltd

$8,800

$105,600

Lease option negotiation finalised.
Asset Management Plan required.

Kogarah War Memorial Pool

Nil

Council

Nil

-$17,830

-$213,960

Council agreed to continue to subsidise the annual losses of the pool.

Tennis Courts

 

 

 

 

 

Term from September 2016 to September 2019.

Ken Rosewell

1

NA

Management Agreement
Evolution Tennis

$7,083

$85,000

Parkside Drive

1

NA

Lease
Graeme Wardrop

$3,098

$37,176

Term from June 2016 to June 2021 with a 5 year option.

Jubilee Oval

 

 

 

 

 

Revenue includes on-costs for matches.

St George NRL Club

1

St George NRL Club

Hire Agreement

-

$410,000

St George District Football Club

1

St George District Football Club

Lease includes use of venue for fixtures

-

$71,500

Sydney Football Club

1

Sydney Football Club

Hire Agreement

-

$560,000

Hurstville Oval

 

 

 

 

 

6 month seasonal arrangement - October to March.

St George District Cricket Club

1

St George District Cricket Club

Licence

-

$1,802

Total

11

 

 

$211,200

$3,577,706

 

 

7.      Commercial Car Parking

Car Park

No. Permanent Parking

No. of Public Parking Spaces

Management Agreement

Monthly Revenue       (incl. GST)

Annual Revenue Estimate (incl. GST)

Comment

Waratah Hospital Car Park

-

150

Secure Parking

$6,403

$76,836

$265,000 Strata Fees

31 Dora St Hurstville

(Average)

Operational losses of $188,164 per annum.

 

 

 

Kogarah Town Square Car Park

4

224

APARC

$33,901

$406,812

Annual Strata Fees of $94,509.

6 Derby St Kogarah

TDN

Empress/Woniora Gardens Car Park

5

100

APARC

$10,692

$128,304

Annual Strata Fees of $2,778.

588-604 Railway Pde Hurstville

TDN

ATO spaces
12-22 Woniora Road, Hurstville

-

79

Council as Lessee

-

$150,000

Handover of stratum title to Council expected in mid 2019.

Total

9

553

 

$50,996

$761,952

 

 

8.      Community Leases

Community Leases

No. of Properties

Vacancies

Annual Rent

NOTE

(excl. GST)

Scouts & Girl Guides

10

0

$63

 

Community Centres

6

0

 

 

1. Jubilee Community Services

(2B-2C Boundary Road, Mortdale)

 

 

$0

Nil income due to 100% Council reimbursement of $63,000 annual rent.

2. Kingsgrove Community Aid Centre

(30 Morgan Street, Kingsgrove)

 

 

$0

Nil income due to 100% Council reimbursement of $54,798 annual rent.

3. Kogarah Community Services

(49 English Street, Kogarah)

 

 

$10,920

Council resolution to relocate tenant from 27 Joffre Street, South Hurstville. 5 year lease term expiries August 2020.  Further 5 year option available.

4. Riverwood Community Centre

(31 Thurlow Street, Riverwood)

 

 

$479

Rental assessed at $11,750 per annum.  100% rental subsidy applied in line with Community Lease Policy. Minimum rental of $479 applies.

5 Three Bridges

(Pole Depot, Part 23 St Georges Road, Penshurst)

 

 

$1

Subsidised rental due to extensive capital investment by tenant over the 10 year lease period.  Further 2 x 5 year options available

6. Youth Outreach Kogarah

(27 Railway Lands, Kogarah)

 

 

$1,000

 

Licence on a week to week basis. Used for the operation of social support networks

Community Sports

3

0

$19,362

 

St George Business Chamber of Commerce (Commercial office space located at Part 16-32 MacMahon Street, Hurstville)

1

0

$0

$22,000 annual office rental subsidy plus additional payment of $30,000 per annum (Council contribution to assist with program development over 5 years).

Radio 2NBC

(Commercial office space located at Level 1, 84 Railway Parade, Kogarah)

1

0

$1

$1 income to Council as per Council resolution to provide $50,000 annual rental subsidy.

Hurstville District Small Bore Rifle Club

(Industrial land located at 100 Roberts Avenue, Mortdale)

1

0

$1

$1 income to Council as per Council resolution to provide annual rental subsidy.

Misc. Others

9

0

$2,047

 

Total

31

0

$33,874

 

 

Financial Implications

9.      No budget impact for this report.

 

File Reference

17/2939

 

 

 

ATTACHMENTS

Attachment 1

Commercial Properties

Attachment 2

Community Properties

 


Georges River Council -         Finance and Governance Committee - Monday, 11 March 2019

FIN016-19              Georges River Council Property Portfolio Report

[Attachment 1]        Commercial Properties

 

 

Page 130

 


Georges River Council -         Finance and Governance Committee - Monday, 11 March 2019

FIN016-19              Georges River Council Property Portfolio Report

[Attachment 2]        Community Properties

 

 

Page 131

 


Georges River Council – Finance and Governance Committee -  Monday, 11 March 2019                                          Page 139

Item:                   FIN017-19 Investment Report as at 31 January 2019 

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 January 2019.

 

Executive Summary

1.      This report details Council’s performance of its investment portfolio as at 31 January 2019 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 2.62%, which is 0.67% above benchmark. Income from interest on investments totals $3.2m, 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 (1993).

Investment Performance Commentary

5.      Council’s performance against the benchmark for returns of its investment portfolio for January 2019, are as follows:

 

1 Month

3 Month

12 Month

Portfolio Performance

0.27%

0.65%

2.62%

Performance Index

0.18%

0.49%

1.95%

Excess

0.09%

0.16%

0.67%

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 January was as follows:

Security Type

Market Value $000's

% Total Value

Cash at Bank

4,474

2.53%

11am Cash

1,207

0.68%

31 Day Notice Account

23

0.01%

Covered Floating Bond

1,014

0.57%

Flexi Deposit (Fix/Float)

6,000

3.39%

Floating Rate Deposit

5,000

2.82%

Floating Rate Note

51,342

28.99%

Floating Rate TCD

3,512

1.98%

Term Deposit

98,541

55.65%

Managed Funds Trust

5,989

3.38%

Total Cash and Investments

177,102

100.00%

 

7.      At the end of December 2018, Total Cash and Investments were $195,112m and have decreased by $18,010m at end of January 2019 due to capital and operational expenditures in the month of January. $12.2m of the decrease was in relation to the acquisition of 4-6 Dora Street Hurstville, being the former Baptist Church site.

 

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.      Georges River Council is participating in a Group Class Action against Fitch Ratings Inc., in respect of losses suffered on the Corsair (Cayman Islands) No.4 Ltd Series 6 Kakadu Collateralised Debt Obligation (CDO) notes. Council suffered a capital loss of $214,812 on these investments dating back to December 2006, and will seek damages of the Capital Loss including lost interest as part of the action.

 

Loan Liability

10.    Council’s loan liability, as at 31 January 2019, was $1.875m which represents the balance of a $5m 10 year loan drawn down on 16 November 2012 for the Jubilee Park upgrade in Mortdale. The next repayment of $125k is due on 25 March 2019.

 

11.    The outstanding balance on this facility is at a variable interest rate of 194 basis points above the three month BBSW. At the current three month BBSW rate, the interest rate payable is 4.01% pa.

 

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

 


 

Policy Limits

 

13.    The following graph 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

14.    Income from interest on investments to 31 January 2019 is estimated at $3.2m, which is in line with 2018/19 year-to-date adopted budget.

 

15.    Investments have been made in accordance with the Local Government Act 1993, 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

85,982

48.55%

100%

1 to < 3 Years

65,349

36.90%

70%

3 to < 5 Years

 25,771

14.55%

50%

Portfolio Total

177,102

100.00%

 

 

16.    Council’s portfolio is liquid, with 48.55% of assets maturing within 12 months. FRNs, At-Call Funds and Fixed Bonds also provide additional liquidity in an emergency.

 

 

 


 

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

 

 

 

Type of Investments

18.    Council’s investment portfolio is mainly directed to fixed term deposits, which accounts for approximately 59% of total investments.

 

19.    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).

 

20.    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)      An 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

21.    Credit ratings are generally a statement as to an institution’s credit quality. Ratings ranging from AA to BBB (Short Term) & AA to BBB (long term) are considered investment grade.

 

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

Short-term

AA:            The best quality companies, reliable and stable. An obligor’s capacity to meet its financial commitments on the obligation is very strong.

A:               The obligor’s capacity to meet its financial commitments on the obligation is still strong but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions.

BBB:          Adequate capacity to meet financial commitments, but adverse economic conditions or changing circumstances are more likely to weaken the obligor’s capacity 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.         

Long-term

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.

23.    The credit quality of Council’s portfolio is relatively high with approximately 71% of assets rated ‘A’ or higher. The ‘AAA’ assets represent the deposit investments covered by the Federal Government’s Financial Claims Scheme (FCS).

 

24.    The remaining 29% rated ‘BBB’ or ‘unrated’ reflects the deposit and FRN investments with the regional and unrated ADIs.

 

Council’s Investment Powers

25.    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.

 

26.    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

 

Reserve Movement Overview

27.    Council’s investment portfolio is composed of a variety of reserves which are used for funding future projects such as capital works or asset acquisitions. The Council has two types of reserves: Externally Restricted Reserves and Internally Restricted Reserves.

 

28.    Externally Restricted Reserves refer to funds that are kept restricted and cannot be used for general purpose, as they are subject to external legislative or contractual obligation.

 

29.    Internally Restricted Reserves refer to funds that are restricted by resolution of Council. These restrictions are developed by Council to cover future commitments/obligations that are expected to arise.

 

30.    In January 2019, the there was a material movement of the Internally Restricted Commercial Property Reserve with the acquisition of the Hurstville Baptist Church to the value of $12.24m. This movement resulted in a projected year-end reserve balance for 30 June 2019 of $6.04m.

 

31.    The table below highlights balances of restricted cash reserves for Council:

 

Description

Audited Balance 30/06/18

Closing Balance 31/12/18 

 ($'000)

 ($'000)

Externally Restricted Cash Reserves

96,047

99,020

Internally Restricted Cash Reserves

77,119

71,817

Total  Restricted Cash Reserves

173,166

170,837

 

Financial Implications

32.    Within budget allocation.

 

Risk Implications

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

 

34.    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 the placement of investments only in investments rated A or above.

 

Community Engagement

35.    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

D19/19966

 

 

 

 

ATTACHMENTS

Attachment 1

Investment Report as at 31 January 2019

 


Georges River Council -         Finance and Governance Committee - Monday, 11 March 2019

FIN017-19              Investment Report as at 31 January 2019

[Attachment 1]        Investment Report as at 31 January 2019

 

 

Page 145

 


 


 


 


 


 



 


 


 



Georges River Council – Finance and Governance Committee -  Monday, 11 March 2019                                          Page 154

Item:                   FIN018-19  2018/19 Half Yearly Progress Report and Quarterly Budget Review Statement for Quarter Ending 31 December 2018. 

Author:              Senior Corporate Planner and Chief Financial Officer

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

Recommendation

(a)     That Council receive and note the Half Yearly Progress Report July 2018 – December 2018 (Attachment 1) of performance made against Georges River Council’s Delivery Program 2018/19 to 2020/21 and Operational Plan 2018/19 including the Quarterly Budget Review for Quarter Ending 31 December 2018.

(b)     That Council approve the variances to the 2018/19 Budget, as detailed in Attachment 1, as a result of the Quarter Ending 31 December 2018 Budget Review.

(c)     That Council endorse the Delivery Program and Operational Plan items recommended for cancellation, being placed on hold, altered or proposed to be carried over, as detailed in Attachment 1.

(d)     That a copy of the Half Yearly Progress Report July 2018 – December 2018 be published on Council’s website.

 

Executive Summary

1.      The July 2018 – December 2018 Half Year Progress Report of performance made against Georges River Council’s Delivery Program 2018/19 to 2020/21 and Operational Plan 2018/19 including the Quarterly Budget Review for Quarter Ending 31 December 2018 is submitted for the information of Council and the community.

Background

2.      Section 405(5) of the Local Government Act 1993 requires that the General Manager ensure that regular progress reports are provided to the Council on its progress with respect to the principal activities detailed in its Delivery Program at least every six months. This is the first progress report on the 2018/19 to 2020/21 Delivery Program and 2018/19 Operational Plan.

3.      Section 203 of the Local Government (General) Regulation 2005 requires that a Quarterly Budget Review be considered by Council that shows current estimates for income and expenditure for the year, indicates whether Council’s financial position is satisfactory and makes recommendations for remedial action, if required.

4.      Council’s Three Year Delivery Program 2018/19 to 2020/21 and One Year 2018/19 Operational Plan sets the strategic and financial objectives of the year. The Plans also detail the goals and strategies for Council’s six pillars which underpin Council’s planning, their relevant performance measures and the projects Council plans to deliver initially in 2018/2019 and within the next three years.

Progress against Delivery Program and Operational Plan

5.      Attachment 1 includes details for each of the six pillars and the 25 goals, detailing the targets adopted by Council and the performance to date in achieving these targets by 30 June 2019.

6.      All departments are progressing well towards delivering their Operational Plan actions with 85% of items either complete, ongoing or on track.

7.      Less than 5% of projects are behind schedule or on hold, and approximately 7% of projects are not yet due to commence.

8.      A total of 7 projects are being carried over to future years due to changing priorities or situations outside Council’s control, 1 item is proposed for cancellation and 1 project has been placed on hold pending the outcome of a legal matter. 

9.      Progress against Council’s Three Year Delivery Program 2018/19 to 2020/21 is also tracking well with 91% of items either complete, ongoing or on track. Less than 3% of projects are behind schedule or on hold and only 1 item is proposed for cancellation. Approximately 6% of items are not yet due to commence.

10.    Any projects that are proposed to be carried over, placed on hold, altered or cancelled are listed in this report for Council’s consideration.  One item is proposed to be altered as the project is actually two separate projects with different timeframes.

Cancellations, Carry Overs, Proposed Alteration and Holds

Cancellations

CSP Goal

Strategy

Delivery Program (DP) or Operational Plan (OP) item

Project Description

Reason

5.2 Affordable and quality housing options are available.

5.2.5 Council-led development proposals incorporate, where feasible, options that support affordable and diverse housing.

DP

Complete the Planning Proposal for Oatley Aged Care Centre and, if approved, engage an aged care service provider to manage the facility. Investigate the potential to include affordable housing in Council-led developments.

The planning proposal for Oatley Aged Care Centre has been withdrawn following a Council resolution to not proceed with the project, remediate the contamination of the site and dedicate the land to open space.

5.2 Affordable and quality housing options are available.

5.2.5 Council-led development proposals incorporate, where feasible, options that support affordable and diverse housing.

 

 

OP

Complete the Planning Proposal for Oatley Aged Care Centre.

As above.


 

Carry Overs

CSP Goal

Strategy

Delivery Program or Operational Plan item

Project Description

Reason

3.1 The LGA has a range of transport options to connect people, goods and businesses

3.1.2 Work with the NSW Government to develop an integrated transport and land use plan and a 20-year precinct plan as part of Future Transport 2056 initiatives.

OP

Commence work on an integrated transport and land use plan.

The New (City Wide Transport Study was not funded in the 18/19 Budget and will therefore carry over into 19/20 financial year.

5.2 Affordable and quality housing options are available.

5.2.4 Develop policies that encourage a greater supply of housing diversity and choice.

OP

Include initiatives to encourage greater housing diversity and choice in the comprehensive LEP and DCP and planning guidelines.

Council commenced a Housing Strategy for the Georges River LGA and has also commenced the Inclusive Housing Strategy. Given the scope of these projects they will carry over into 19/20 financial year.

5.3 The community is socially and culturally connected.

5.3.4 Provide high quality, affordable and economically viable education and care across Council’s children’s services.

OP

Relocate the Hurstville Early Learning Centre to new premises.

Awaiting outcomes of service model review to determine alternative locations or changes to existing services.

5.3 The community is socially and culturally connected.

5.3.4 Provide high quality, affordable and economically viable education and care across Council’s children’s services.

OP

Establish a 40-place long day-care centre within the LGA close to transport and business within the LGA.

Oatley West Long Day Care Centre is scheduled to open in March 2020.

 

 

 

5.3 The community is socially and culturally connected.

5.3.4 Provide high quality, affordable and economically viable education and care across Council’s children’s services.

OP

Establish a 23-place occasional care service within the LGA.

Hurstville Early Learning Centre will transition to a 23 place occasional centre to coincide with the opening of Oatley West Long Day Care Centre in 2020.

6.3 Leadership focuses on innovation and improving the customer experience.

6.3.2 Demonstrate a culture of continuous improvement and effective governance throughout Council services.

OP

Implement a consistent project management

methodology with overarching reporting for consistency and service delivery.

The Strategy and Innovation team was recruited late

December 2018. This project will form part of their

2019/2020 work program.

Proposed Alteration

CSP Goal

Strategy

Delivery Program or Operational Plan item

Project Description

Reason

6.4 Council's assets and resources are managed responsibly and with accountability.

6.4.3 Actively manage Council's property portfolio to maximise returns on investment in community assets and programs.

DP

Complete Planning Proposal for the Treacy Street residential development and the Hurstville Civic Centre precinct.

Planning Proposal for Hurstville Civic Centre precinct is on track and to remain.  Planning Proposal for Treacy Street carpark will form part of a comprehensive LEP for Georges River which will be developed in 2020-21. Therefore the Treacy Street Planning Proposal needs to be carried over to become a separate item in the 2019-2020 Operational Plan and associated Delivery Program.

 

Holds

CSP Goal

Strategy

Delivery Program or Operational Plan item

Project Description

Reason

4.3 The ambitions for Hurstville and Kogarah as strategic centres are realised.

4.3.1 Advocate at all levels of government to ensure critical infrastructure accompanies significant residential and employment growth.

DP

Work with the NSW Government and Canterbury-Bankstown Council on the orderly development of Riverwood as a Planning Precinct.

On 7 June 2018 the Department of Planning and Environment advised that the Riverwood Planning Precinct has been placed on hold until after the 2019 State elections.

6.4 Council's assets and resources are managed responsibly and with accountability.

6.4.3 Actively manage Council's property portfolio to maximise returns on investment in community assets and programs.

OP

Redevelop Sans Souci Bathers' Pavilion to provide commercial leasing opportunity.

Options for development program are being explored whilst legal proceedings continue. Further progress cannot occur until legal proceedings are completed.

 

 

Quarter Budget Review for period ending 31 December 2018

Financial Performance

11.    The overall financial performance of Council is considered to be satisfactory and reflects sound management of income and expenditure. While the Operating Surplus over the 6 month period is ahead of the year-to-date budget by $7.1m, this is mainly due to timing issues on the receipt of capital grants which are expected to be addressed over the latter half of the year. This has been reflected in the year end forecast surplus of $14.1m.

12.    The capital works program at the quarter ending 31 December 2018 had year to date (YTD) actuals of $18.7m.

13.    In preparation of the 2019/20 capital budget the 2018/19 capital program has been phased over the next two years based on the expected completion, capacity and start dates of projects. The budget has been revised to $76.6m, which is a reduction of $4.8m from Quarter 1 Council revised budget.

14.    The movement in Externally Restricted Reserves is expected to follow the current pattern reflected in the year to date expenditure. The purchase of the property at Dora Street Hurstville in January 2019 reduces the projected Internally Restricted Reserves to $51.9m

 

Financial Implications

15.    Details of the financial impact are outlined in Attachment 1.

16.    Proposed quarter 2 budget changes result in a favourable increase to Council’s operating surplus of $14.1m. Council’s surplus is heavily supported by Capital Grants & Contributions. Without this income, Council shows a projected operating deficit of $10.1m

 

Risk Implications

17.    Enterprise risk identified and management process applied.

 

18.    Council’s enterprise risk identified was ‘poor financial management adversely impacts Council’s long term financial sustainability’. The purpose of this report is to provide an update to Council on the financial performance each quarter. This is to enable financial information for sound decision making, to ensure financial sustainability of Council.

 

Community Engagement

19.    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

D19/40515

 

 

 

ATTACHMENTS

Attachment 1

Half-Yearly Progress Report July-December 2018-2019

 


Georges River Council -         Finance and Governance Committee - Monday, 11 March 2019

FIN018-19              2018/19 Half Yearly Progress Report and Quarterly Budget Review Statement for Quarter Ending 31 December 2018.

[Attachment 1]        Half-Yearly Progress Report July-December 2018-2019

 

 

Page 157

 



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



Georges River Council – Finance and Governance Committee -  Monday, 11 March 2019                                          Page 213

Item:                   FIN019-19          Audit, Risk and Improvement Committee Minutes from 29 October 2018 

Author:              Internal Auditor

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation:

That the Minutes of the Audit, Risk and Improvement Committee Meeting held on the 29 October 2018, provided as Attachment 1, be noted.

 

 

Executive Summary

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

 

2.      The Minutes of the ARIC meeting held 29 October 2018 were confirmed by the ARIC at their meeting of 18 February 2019 and are now presented for Council’s information.

Background

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

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

 

- Minutes of each meeting

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

 

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

 

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

 

5.      These Minutes relate to the ARIC meeting held on 29 October 2018 and were confirmed at the ARIC meeting held on 18 February 2019.

Financial Implications

6.      There are no budget impacts for this report.

 File Reference

D18/1219

 

ATTACHMENTS

Attachment 1

ARIC Minutes 29 October 2018 Final PDF

 


Georges River Council -         Finance and Governance Committee - Monday, 11 March 2019

FIN019-19              Audit, Risk and Improvement Committee Minutes from 29 October 2018

[Attachment 1]        ARIC Minutes 29 October 2018 Final PDF

 

 

Page 214