Agenda of Council Meeting - 23 October 2017

Georges River Council – Ordinary Meeting - Monday, 23 October 2017 Page 6

Ordinary Meeting

Summary of Items

Monday, 23 October 2017

Previous Minutes

MINUTES: ORDINARY COUNCIL MEETING – 04 SEPTEMBER 2017 (17/396)

MINUTES: Extraordinary Council Meeting - 25 September 2017 (17/396)

MINUTES: Extraordinary Council Meeting - 04 October 2017 (17/396)

Mayoral Minute

Nil at time of printing

Reports from Committees

CCL220-17 Report of the Environment and Planning Committee - Meeting held on 09 October 2017

(Report by Head of Executive Services).................................................................... 2

CCL221-17 Report of the Finance and Governance Committee - Meeting held on 09 October 2017

(Report by Head of Executive Services).................................................................... 9

CCL222-17 Report of the Community and Culture Committee - Meeting held on 09 October 2017

(Report by Head of Executive Services).................................................................. 18

CCL223-17 Report of the Assets and Infrastructure Committee - Meeting held on 09 October 2017

(Report by Head of Executive Services).................................................................. 21

Environment and Planning

Nil

Finance and Governance

CCL224-17 Tabling of Annual Disclosure of Interest Returns Register for Designated Persons (Staff)

(Report by Coordinator Corporate Governance).................................................... 26

CCL225-17 Tabling of Disclosure of Pecuniary Interests Returns from Recently Elected Councillors

(Report by Executive Manager, Office of the General Manager)........................ 27

CCL226-17 Voting Delegates - 2017 Local Government NSW LGNSW Annual Conference - Hyatt Regency, Sydney - 4 to 6 December 2017

(Report by Executive Manager, Office of the General Manager)........................ 28

CCL227-17 Code of Conduct Statistics 2017

(Report by Coordinator Corporate Governance).................................................... 40

Assets and Infrastructure

CCL228-17 Property Matter - Central Plaza, 292 to 296 Forest Road, Hurstville

(Report by Property Portfolio Manager).................................................................... 42

Community and Culture

Nil

Notices of Motion

NM001-17 Notice of Motion 1: Telecommunications Facility Redin Place Reserve Connells Point

(Councillor Grekas)................................................................................................... 200

NM002-17 Notice of Motion 2: Construction of Synthetic Sports Field at Peakhurst Park

(Councillor Hindi)...................................................................................................... 201

NM003-17 Notice of Motion 3: Membership of Major Events Advisory Committee

(Councillor Wu).......................................................................................................... 202

NM004-17 Notice of Motion 4: Georges River Car Parking Strategy and Hurstville City Centre Transport Management and Accessibility Plan 2013

(Councillor Liu).......................................................................................................... 203

NM005-17 Notice of Motion 5: Councillor Membership of Georges River Council Community Grants Assessment Panel

(Councillor Wu).......................................................................................................... 204

NM006-17 Notice of Motion 6: Georges River Council Payroll Consolidation

(Councillor Tegg)....................................................................................................... 205

NM007-17 Notice of Motion 7: Georges River Council Childcare Centres' Operations

(Councillor Tegg)....................................................................................................... 206

NM008-17 Notice of Motion 8: Sharing Facilities and Infrastructure with the Department of Education

(Councillor Grekas)................................................................................................... 207

NM009-17 Notice of Motion 9: Georges River Council Environment and Planning Committee Membership

(Councillor Tegg)....................................................................................................... 208

NM010-17 Notice of Motion 10: Georges River Council Payroll Consolidation

(Councillor Badalati)................................................................................................. 209

NM011-17 Notice of Motion 11: Speeding/Driver Hotspots Investigation

(Councillor Elmir)....................................................................................................... 210

NM012-17 Notice of Motion 12: Georges River Council Mayor and Councillors Expenses and Facilities Policy

(Councillor Badalati)................................................................................................. 211

Reports from Committees

Item: CCL220-17 Report of the Environment and Planning Committee - Meeting held on 09 October 2017

Author: Head of Executive Services

Directorate: Office of the General Manager

Matter Type: Finance and Governance

Recommendation

That the Committee recommendations for items ENV001-17 – ENV003-17 (inclusive), detailed below, be adopted by Council in accordance with the delegations set out in the Terms of Reference for the Environment and Planning Standing Committee:

ENV001 Planning Proposal PP2017/001 – 84D Roberts Avenue, Mortdale

(Councillor Katris and Councillor Agius)

(a) That Council endorse the Planning Proposal to amend Hurstville Local Environmental Plan 2012 by way of a Schedule 1 amendment to permit the uses of retail premises, bulky goods premises and centre-based child care facility, in relation to 84D Roberts Avenue

(legally known as Lot 21 DP 542051).

(b) That Council endorse the Planning Proposal to be forwarded to the delegate of the Greater Sydney Commission for a Gateway Determination under Section 56 of the Environmental Planning and Assessment Act 1979.

Record of Voting:

For the Motion: Unanimous

ENV002-17 Planning Proposal (PP17/42) - Nos 73 Vista Street, Sans Souci

(Councillor Hindi and Councillor Payor)

(a) That Council not support the Planning Proposal to amend Kogarah Local Environmental Plan 2012 (“Kogarah LEP 2012”) in relation to Lots 1 DP320605, Lot 1 DP1115986, Lot 392 DP752056 and Lot 489 DP752056 known as No 73 Vista Street, Sans Souci for the following reasons:

(i) The height and density proposed on the subject site is inconsistent with the Seniors Housing SEPP, Clause 6.8 of Kogarah LEP 2012, the former Kogarah Council’s endorsed Housing Strategy and the objectives of the R2 Low Density Residential zone in the recently gazetted Kogarah LEP 2012 (Amendment No 2); and

(ii) The proposed development resulting from the Planning Proposal is inappropriate in terms of built form, scale and density and will be out of context with the character of the immediate locality when viewed both from Vista Street and the Georges River foreshore; and

(iii) There is inadequate justification provided in the documentation submitted with the Planning Proposal to support the increased height and density on the subject site; and

(iv) The outcomes of the Planning Proposal do not have strategic merit and the development, as proposed is inconsistent with the Strategic Merit Test as outlined in the NSW Department of Planning’s Rezoning Reviews (August 2016); and

(v) The Department of Planning does not support the use of prescriptive Schedule 1 Amendments such as that proposed in the Planning Proposal.

b) That for the reasons outlined in (a) above, the Council not forward the Planning Proposal to the delegate of the Greater Sydney Commission for a Gateway Determination under Section 55 and 56 of the Environmental Planning and Assessment Act 1979.

Record of Voting:

For the Motion: Unanimous

ENV003-17 Planning Proposal PP2015 0006 37-41 Treacy Street, Hurstville Treacy Street Car

(Councillor Katris and Councillor Hindi)

(a) That Council note the conditions of the NSW Department of Planning and Environment’s Gateway Determination for Planning Proposal PP2015/0006 (Planning Proposal) for 37-41 Treacy Street, Hurstville (Treacy Street Car Park Land);

(b) That should the NSW Department of Planning and Environment indicate that the Minister for Planning is willing to enter into a Voluntary Planning Agreement in respect of the Planning Proposal, that Council:

(i) Endorse the preparation of a draft Voluntary Planning Agreement between Council and the Minister for Planning, which is to meet the provisions of the Georges River Council Policy on Voluntary Planning Agreements and including the provision of public car parking spaces (to be determined at a workshop by Councillors) and the provision of Gross Floor Area for residential purposes of any development, for affordable housing (to be determined at a workshop by Councillors);

(ii) Forward the draft Voluntary Planning Agreement to the Minister for Planning with an irrevocable offer to enter into the Voluntary Planning Agreement prior to the public exhibition and the making of the Planning Proposal;

(iii) Publicly exhibit both the draft Voluntary Planning Agreement and the Planning Proposal;

(iv) Delegate to the General Manager the authority to negotiate the final terms of, and execute the Voluntary Planning Agreement, following public exhibition, at the General Manager's discretion, provided the VPA contains the requirements in clause (b)(i); and

(v) Register the Voluntary Planning Agreement on the title of the Treacy Street Car Park Land as soon as practicable after the Planning Proposal has been made.

(c) That should the NSW Department of Planning and Environment indicate that the Minister for Planning is not willing to enter into a Voluntary Planning Agreement in respect of the Planning Proposal, that Council defer the matter so that Council Officers can prepare a report on the following for further consideration by Councillors:

The legal ramifications and possibility of:

(i) Placing of a covenant on title of the land which requires that public car parking spaces; affordable housing floor area; and any other public benefits necessary to address the impacts of the development;

(ii) Modifying Clause 1.9A of Hurstville LEP 2012 so that the suspension of covenants, agreements and instruments does not apply to Council owned land and whether Clause 1.9A(2)(a) is adequate enough to cover this aspect of suspension of covenants;

(iii) Preparing a site specific DCP to require controls for building form and design excellence, and including the provision of public car parking spaces (to be determined at a workshop by Councillors) and the provision of Gross Floor Area for residential purposes of any development, for affordable housing (to be determined at a workshop by Councillors).

Record of Voting:

For the Motion: Unanimous

Executive Summary

1. On Monday 09 October 2017, Georges River Council held its inaugural Standing Committee meetings.

2. The Committee recommendations from the Environment and Planning Committee meeting of 09 October 2017, detailed above, are submitted to Council for determination.

File Reference

D17/180390

ATTACHMENTS

Attachment View1

Minutes of Environment & Planning Committee - 09 October 2017

Georges River Council – Ordinary Meeting - Monday, 23 October 2017 Page 11

Item: CCL221-17 Report of the Finance and Governance Committee - Meeting held on 09 October 2017

Author: Head of Executive Services

Directorate: Office of the General Manager

Matter Type: Finance and Governance

Recommendation:

That the Committee recommendations for items FIN001-17 – FIN007-17 (inclusive), detailed below, be adopted by Council in accordance with the delegations set out in the Terms of Reference for the Finance and Governance Standing Committee:

FIN001-17 Southern Sydney Regional Organisation of Councils SSROC - Minutes of the Ordinary Meeting

(Councillor Tegg and Councillor Liu)

That the minutes of the Ordinary Meeting of the Southern Sydney Regional Organisation of Councils (SSROC) held on 17 August 2017 are noted and endorsed.

FIN002-17 Georges River Council Access to Information Policy

(Councillor Wu and Councillor Konjarski )

That Council adopt the Georges River Council Access to Information Policy as contained in Attachment 1.

FIN003-17 Cleaning Services Tender for Georges River Council buildings

(Councillor Konjarski and Councillor Symington)

(a) That the report be received and noted.

(b) That the separate report on this agenda relating to the Tender for Cleaning Services at Georges River Council be considered in closed session, in accordance with Part 1, Chapter 4 of the Local Government Act 1993, Section 10A(2)(c) as it is considered the information, if disclosed confers a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business with.

FIN004-17 Georges River Council Privacy Management Plan

(Councillor Tegg and Councillor Liu)

(a) That Council adopt the Georges River Council Privacy Management Plan as contained in Attachment 1.

(b) That it be noted that following adoption, a copy of the Georges River Council Privacy Management Plan will be provided to the NSW Privacy Commissioner.

FIN005-17 Investment Report as at 31 August 2017

(Councillor Konjarski and Councillor Symington)

That the Investment Report as at 31 August 2017 be received and noted.

FIN006-17 Grant Days and Working Arrangements During the Christmas Period 2017-18

(Councillor Tegg and Councillor Symington)

That Council;

(a) Approve that staff not required to work during 2017/18 Christmas and New Year period receive three grant days (additional paid annual leave days).

(b) Approve that staff required to work over the Christmas and New Year period be credited three grant days which are to be taken by 1 March 2018.

(c) Acknowledge that the proposed working hours detailed in the Appendix to this report during the 2017/2018 Christmas period provide an appropriate level of service to the Georges River community.

(d) That the General Manager in consultation with staff and their representatives explore options for the provision of leave for staff during the close down period for Christmas and New Year 2018.

FIN007-17 Communications and Media Management Policy

(Councillor Konjarski and Councillor Liu)

That Council endorse the attached draft Communications and Media Management Policy.

Consideration of Confidential Recommendations

CON023-17 Cleaning Services Tender for Council Buildings

(Councillor Konjarski and Councillor Symington)

(a) That for the tendered price of $235,149.08 (exc GST), International Cleaning Services be awarded the contract for the cleaning of the;

• Civic Centre

• Kogarah Library

• Hurstville Library

• Penshurst Library

• Oatley Library

• South Hurstville Library

• Riverwood Child and Family Health

• Hurstville Child and Family Health

• South Hurstville Child and Family Health

• Oatley Child and Family Health

• Kogarah SES

• Hurstville Museum and Gallery

(b) That for the tendered price of $272,709.24 (exc GST), Academy Services be awarded the contract for the cleaning of the;

• Marana Auditorium

• Civic Theatre

• Hurstville Senior Citizens Centre

• Kingsgrove Community Centre

• Mortdale Community Centre

• Oatley Community Hall

• Carss Park Lifesaving Hall

• PJ Ferry Reserve Community Hall

• Kogarah School of Arts

• Jack High Child Care Centre

• Penshurst Long Day Care Centre

• Hurstville Early Learning Centre

• Carss Park Narani Child Care Centre

• South Hurstville Kindergarten

• Ocean Street Kindergarten

Executive Summary

1. On Monday 09 October 2017, Georges River Council held its inaugural Standing Committee meetings.

2. The Committee recommendations from the Finance and Governance Committee meeting of 09 October 2017, detailed above, are submitted to Council for determination.

File Reference

D17/180402

ATTACHMENTS

Attachment View1

Minutes of Finance and Governance Committee - Meeting held on 09 October 2017

Georges River Council – Ordinary Meeting - Monday, 23 October 2017 Page 20

Item: CCL222-17 Report of the Community and Culture Committee - Meeting held on 09 October 2017

Author: Head of Executive Services

Directorate: Office of the General Manager

Matter Type: Finance and Governance

Recommendation

That the Committee recommendations for all items COM026-17 – COM028-17 (inclusive), detailed below, be adopted by Council in accordance with the delegations set out in the Terms of Reference for the Community and Culture Standing Committee:

COM026-17 Georges River Council Christmas Lights Competition Policy

Recommendation: Councillor Hindi and Councillor Liu

(a) That Council adopts the attached draft Georges River Council Christmas Lights Competition Policy subject to amendments regarding the number of Councillor judges per ward and alternates per ward, and options being presented regarding cash and other prizes.

(b) That Council encourage entrants in the Christmas Lights Competition to complete their registration form in full online on the Georges River Council website between 1 November and up to 5pm on 5 December 2017; however hardcopies will be accepted at both the Hurstville and Kogarah Service Centres only.

(c) That Council carry out the judging of the Christmas Lights Competition from 11 December to 15 December 2017, with the winners to be announced and awarded their prize at a function to be held on a date to be determined within the week commencing 18 December 2017.

COM027-17 Draft Collection Management and Conservation Policy

Recommendation: Councillor Hindi and Councillor Wu

That Council adopts the draft Georges River Council Collection Management and Conservation Policy.

COM028-17 Sponsorship request from Southern Asian Australian Association Hindi School Kogarah for the Diwali Mela 2017

Recommendation: Councillor Hindi and Councillor Liu

That Council approves the financial sponsorship of $2,000 for the Southern Asian Australian Association Hindi School Kogarah to host the Diwali Mela 2017.

Executive Summary

1. On Monday 09 October 2017, Georges River Council held its inaugural Standing Committee meetings.

2. The Committee recommendations from the Community and Culture Committee meeting of 09 October 2017, detailed above, are submitted to Council for determination.

File Reference

D17/180398

ATTACHMENTS

Attachment View1

Minutes of Community and Culture Committee - 09 October 2017

Georges River Council – Ordinary Meeting - Monday, 23 October 2017 Page 28

Finance and Governance

Item: CCL224-17 Tabling of Annual Disclosure of Interest Returns Register for Designated Persons (Staff)

Author: Coordinator Corporate Governance

Directorate: Office of the Chief Operating Officer

Matter Type: Finance and Governance

Recommendation

That the report regarding the tabling of the annual Disclosure of Interest Returns Register for Designated Persons (Staff) be received and noted.

Executive Summary

1. The Local Government Act 1993 (the Act) requires designated persons to lodge Disclosure of Interest Returns (Returns) in accordance with section 449 of the Act. Section 450A of the Act requires the General Manager to keep a Register of Returns and to table Returns at the first Council meeting after the last date for lodgement (30 September 2017).

2. It is necessary for the Returns for the period 1 July 2016 to 30 June 2017 to be tabled at this Council meeting for the purpose of legislative compliance.

Background

3. In accordance with section 449(3) of the Act a designated person holding that position at 30 June in any year must lodge with the General Manager within three months after that date a Return as prescribed by the regulations.

4. Under section 450A(2)(b) of the Act, Returns for the period ending 30 June 2017 must be tabled at the first Council Meeting held after the last day of lodgement (30 September 2017).

5. At the time of writing the report, all Returns of designated persons were received by 30 September 2017, with the exception of one staff member who was on a period of extended leave. Completion of the Return for this staff member will be followed up upon their return from leave.

6. Returns for those staff who were recently ‘nominated’ as a designated person within the new organisation structure, completed their Returns as at 30 June 2017. Whilst all continuing designated persons completed their Returns for the reporting period 1 July 2016 – 30 June 2017.

7. In addition, two newly appointed designated persons who have commenced employment with Council after 30 June 2017, have completed their Returns in accordance with section 449(1) of the Act, which requires that they complete and lodge a Return within 3 months after becoming a designated person. These positions are the Coordinator Procurement and Risk and Coordinator Corporate Governance.

Financial Implications

8. No budget impact for this report.

File Reference

D17/165017

Georges River Council – Ordinary Meeting - Monday, 23 October 2017 Page 30

Item: CCL226-17 Voting Delegates - 2017 Local Government NSW LGNSW Annual Conference - Hyatt Regency, Sydney - 4 to 6 December 2017

Author: Executive Manager, Office of the General Manager

Directorate: Office of the General Manager

Matter Type: Finance and Governance

Recommendation

(a) That Council nominate nine (9) Councillors to attend the 2017 Local Government NSW Annual Conference as voting delegates and other Councillors as observers.

(b) That Council note that the General Manager will nominate staff to attend the Conference.

Executive Summary

1. This report is presented to Council for its consideration of Councillor voting delegates and attendance at the 2017 Local Government NSW (LGNSW) Annual Conference, to be held at the Hyatt Regency in Sydney from Monday, 4 December 2017 to Wednesday, 6 December 2017.

Background

2. The 2017 Local Government NSW Annual Conference will be held in Sydney from Monday, 4 December 2017 to Wednesday, 6 December 2017. This year the Conference will involve two types of voting: delegates will vote on motions which determine the policies and priorities for Local Government NSW and the sector, and eligible delegates will vote in elections for the Local Government NSW Office Bearers and Board. The entitlements in relation to voting are outlined in Attachment 1 from LGNSW.

3. The Conference will be held at the Hyatt Regency, Sydney. Attached is a copy of the Draft Program for the Conference (Attachment 2). The Conference is the annual policy-making event for all Councils of New South Wales. It is the pre-eminent event of the Local Government year where local Councillors come together to share ideas and debate issues that shape the way we are governed.

4. Local Government NSW notified members of the number of voting delegates that they are entitled to send to the Conference to vote on motions.

5. In 2016, the newly amalgamated Georges River Council was entitled to 1 voting delegate whilst under Administration.

6. In 2015, the former Hurstville City Council was entitled to 6 voting delegates and resolved on 15 July 2015 to nominate Councillors Badalati, Kastanias, Sansom and Wu as voting delegates. As Councillor Hindi was, at the time a member of the LGNSW Board, he was “already entitled to his own vote, and as such it is recommended that Council does not nominate Cr Hindi as one of the voting delegates”.

7. The former Kogarah City Council, in 2015, was allocated 5 voting delegates and resolved on 27 July 2015 to nominate Councillors Agius, Aroney, Katris, Smith and Stratikopolos as voting delegates.

Financial Implications

8. Georges River Council’s LGNSW membership fee for 2017-2018 was $63,938.15.

9. Currently there are funds of $45,000 in the 2017/2018 budget for Councillor attendance at Conferences.

10. Early-bird registration cost for the Conference is $899 per person.

11. Standard registration cost for the Conference is $999 per person.

File Reference

17/396

ATTACHMENTS

Attachment View1	LGNSW Conference 2017 - Voting entitlements
Attachment View2	LGNSW Annual Conference 2017 - Draft Program

Georges River Council – Ordinary Meeting - Monday, 23 October 2017 Page 42

Item: CCL227-17 Code of Conduct Statistics 2017

Author: Coordinator Corporate Governance

Directorate: Office of the Chief Operating Officer

Matter Type: Finance and Governance

Recommendation

That the report on the Code of Conduct Complaints Statistics for the period end 30 September 2017 be received and noted.

Executive Summary

1. Clause 12.1 of the Procedures for the Administration of the Code of Conduct requires Council’s Code of Conduct Complaints Coordinator to report details of any complaints received about Councillors and the General Manager under the Code of Conduct, within three months of the end of September of each year.

2. This report provides statistics on the complaints received.

Background

3. Council is required to adopt a Code of Conduct in accordance with s440 of the Local Government Act 1993. Additionally clause 193 of the Local Government (General) Regulation 2005 requires Council to adopt the model Procedures for the Administration of the Code of Conduct.

4. The statistics provided in this report are required to be reported in accordance with the adopted Procedures for the Administration of the Code of Conduct.

Total number of code of conduct complaints made about Councillors and the General Manager under the code of conduct in the year to September 2017	NIL
The number of code of conduct complaints referred to a conduct reviewer	NIL
The number of code of conduct complaints finalised by a conduct reviewer at the preliminary assessment stage and the outcome of those complaints	NIL
The number of code of conduct complaints investigated by a conduct reviewer	NIL
The number of code of conduct complaints investigated by a conduct review committee	NIL
The outcome of code of conduct complaints investigated by a conduct reviewer or conduct review committee under these procedures (without identifying particular matters)	NIL
The number of matters reviewed by the Division and, without identifying particular matters, the outcome of the reviews	NIL
The total cost of dealing with code of conduct complaints made about Councillors and the General Manager in the year to September, including staff costs.	NIL

5. Council’s consideration of this report ensures that the requirements of Council’s Procedures for the Administration of the Code of Conduct are met.

6. Council is to provide the Division with a report containing the statistics referred to in clause 12.1 within 3 months of the end of September of each year.

Financial Implications

7. No budget impact for this report.

Georges River Council – Ordinary Meeting - Monday, 23 October 2017 Page 44

Assets and Infrastructure

Item: CCL228-17 Property Matter - Central Plaza, 292 to 296 Forest Road, Hurstville

Author: Property Portfolio Manager

Directorate: Office of the General Manager

Matter Type: Assets and Infrastructure

Recommendation

That, having regard to the legal proceedings commenced in the Supreme Court against Council, all negotiations with the Coombes Property Group shall cease.

Executive Summary

1. On 7 August 2017, Council resolved (CCL176-17) to enter into negotiations with the owner of 282 to 290 Forest Road, Hurstville (CPG Land) (Coombes Property Group, known as CPG) for certain property rights over Council’s Central Plaza land required by CPG as part of a deferred commencement development consent.

2. Following numerous discussions between the parties, agreement for the subject property rights was not reached within the 30 day time period provided for within the Council resolution. Accordingly, in accordance with part (b) of the resolution, this report provides an update to Council on the outcome of the negotiations and a recommended way forward.

3. On 4 October, 2017 Telado Pty Limited, an associated entity of CPG, commenced Supreme Court proceedings against Council seeking an order pursuant to s88K of the Conveyancing Act, 1919 for the grant of the property rights. The summons is listed for 27 October, 2017.

Background

4. On 7 August, 2017 Georges River Council considered report CCL176-17, that generally sought to:

a. authorise the Administrator and General Manager to negotiate commercial terms for Property Rights (as defined) sought by CPG over part of Council’s land described as Lot 16 in Deposited Plan 4799 located at 292 to 296 Forest Road, Hurstville (known as Central Plaza) as part of a proposed development on the CPG Land; and

b. (in the event that agreement was reached on commercial terms), enable Council to prepare a planning proposal to reclassify those parts of the Central Plaza land from Community to Operational land to permit the grant of the Property Rights should commercial agreement on the value of the Property Rights be reached.

5. The resolution of CCL176-17 is as follows:

“That subject to the grant of development consent for the proposed retail and commercial redevelopment of 282-290 Forest Road, Hurstville, by the Coombes Property Group (CPG), that will provide for sufficient activation between the proposed building and the ground level of land at Lot 16 in DP4799 being 292-296 Forest Road, Hurstville and known as Central Plaza:

(a) That the Administrator and General Manager be authorised to negotiate and finalise, within 30 days, the commercial terms associated with the draft Agreement – Grant of Property Rights up to $3.4 million;

(b) Should negotiations referred to in (a) above not be finalised within 30 days, a further report be submitted to Council outlining progress to date and providing options for satisfactory completion of the matter;

(c) That subject to satisfactory finalisation of the commercial terms referred to in (a) above, Council acting as land owner, submit an application to reclassify part of Central Plaza from Community to Operational land;

(d) That subject to satisfactory finalisation of the commercial terms referred to in (a) above the General Manager be delegated authority to prepare and lodge a Planning Proposal to reclassify part of Central Plaza Land from Community to Operational land;

(e) That if the Planning Proposal is given Gateway determination, the General Manager be delegated authority to appoint a former Judge of the NSW Land and Environment Court or a person with equivalent standing, expertise and experience, to chair the Public Hearing and make recommendations following that hearing;

(f) That the General Manager be delegated authority to appoint an independent consultant to prepare a post-Gateway exhibition report;

(g) That following any reclassification, an Easement for Egress and Access (or Right of Way), a Restrictive Covenant for Fire Separation and an Easement for Encroaching Structure (together known as Property Rights) be granted over the applicable part(s) of the Central Plaza land;

(h) That the General Manager and the Administrator/Mayor be authorised to execute the s88B Instrument or Transfer Granting Easement and all associated documentation to create the covenant and easements, (under the Common Seal of the Council, if required) as generally detailed in this report; and

(i) That all Council’s costs associated with the reclassification and granting of the Property Rights including legal and valuation costs be met by the owner of the CPG Land.”

6. In accordance with the above resolution, the General Manager, Administrator and General Counsel commenced negotiations in good faith for the Property Rights with CPG.

7. As detailed in Council’s earlier report, independent valuation advice received by Council from Knight Frank, determined reasonable market consideration for the subject Property Rights to be in the order of $3.4 million.

8. A further valuation report was provided by Knight Frank on the basis of CPG obtaining the Property Rights subject to section 88K of the Conveyancing Act, 1919. The valuation advice for the s88K approach concluded a compensation figure in the order of $850,000.

9. CPG’s initial valuation advice suggests that the value of the Property Rights is in the order of $20,000. CPG maintains that because the Plaza is a community asset owned by the Council and set aside for community purposes, the impact on the value of the land in granting the Property Rights is negligible and should not attract a commercially valued market consideration.

10. It should be noted that in 2011, Council in acquiring the Central Plaza land for community purposes, was required to pay a commercial market value, as determined by the NSW Valuer General, in accordance with the Land Acquisition (Just Terms Compensation) Act, 1991. In this regard, the former Hurstville City Council paid the dispossessed owner compensation in excess of $12 million. The community purpose of the acquisition was disregarded in the Valuer General’s determination of market value for the site.

11. Whilst the previous Council has committed the site for civic purposes in the form of a plaza, a future Council (perhaps many decades from now) may decide to redevelop the site for alternate community or operational use. The proposed Property Rights, if granted, will have a severe impact on Council’s ability to maximise the development potential of its own land. For this reason, Council as a prudent custodian of public land, has a duty to ensure that fair and reasonable consideration is received in exchange for the burden that the Property Rights will create in perpetuity, over the public’s land.

12. It is considered that CPG has not made a genuine attempt to exhaust all avenues to negotiate the grant of the subject Property Rights. Furthermore, CPG has now brought proceedings against Council in the NSW Supreme Court to have the Court determine the Property Rights in accordance with Section 88K of the Conveyancing Act, 1919 (S.88k).

13. Section 88k is used generally as a last resort by a property owner where, if the property rights sought were not granted, the land in question would be sterilised from development. In this case, the CPG land has frontage to both Forest Road and Humphreys Lane. Council argues that the granting of the Property Rights is not required for CPG to develop its land.

14. However, while Council does see some benefit in a complementary interface between the Plaza and the CPG land, it is not essential from Council’s perspective in order to achieve the on-going operation and enjoyment by the public for the use of the Plaza. For the avoidance of any doubt, the community benefit is the Plaza itself. The benefit to the adjoining owner in securing Property Rights on to Council’s Plaza is a significant commercial and financial uplift in the value of its land.

15. Furthermore, it may be argued that a party seeking to employ section 88K to permanently encumber public land for its own commercial gain, in circumstances where commercial negotiations have not been exhausted, would appear to show contempt for the community provisions of the Local Government Act, 1993 (LG Act).

16. In any case and specifically in order to grant the Property Rights in this matter, Council would have to reclassify the land from its current Community classification to Operational, via a planning proposal. The community provisions of the Local Government Act 1993 require such reclassifications to undertake a public or community consultation process. The actions of CPG in applying to obtain the Property Rights through the Court by way of section 88K, seek to pre-emptively preclude the community consultation process involved in the reclassification.

Current Position

17. In accordance with Council’s resolution (b) above, Council and CPG met on several occasions to negotiate the grant of Property Rights. Following the conclusion of the 30 day period, Council is advised that the parties were unable to agree to commercial terms. The status of each party’s financial offer is as follows:

Georges River Council

Council valuation advice indicates that the Property Rights have a commercial market value of $3.4 million and a value of $850,000 should S.88k be applied based on the CPG requested easement width of 6 metres. Council concedes that there could be some inherent public benefit in an active interface between the Council land and the CPG land. During the negotiation process, Council allowed a discount of $400,000 in recognition of such benefit, resulting in the consideration payable to Council being in the order of $3 million.

CPG

CPG has previously offered Council $20,000 for the proposed Property Rights. Following numerous meetings and tele-conferences, CPG has advised that it now only requires easement widths of 3 metres for the Property Rights. CPG ascertains that if the Property Rights are valued at $850,000 under S.88k (a 6 metre wide easement), then the value of the easements at half the width of 3 metres wide would be $425,000.

In an attempt to avoid litigation, CPG advised that it was prepared to pay Council $600,000 for the Property Rights, despite believing that the rights were valued considerably less.

18. The proposed Property Rights will effectively provide a third retail frontage to the CPG land facing Central Plaza. In exchange for the increased amount of retail frontage, Council’s land will be burdened in perpetuity effectively precluding it from any further development. In the public interest, it is considered appropriate that Council receive reasonable consideration for granting of the Property Rights.

19. In order to demonstrate the benefits that a third retail frontage will provide to the CPG development, as proposed under the current configuration (and approved with a deferred commencement consent), Council has undertaken an analysis of the market and has determined the following:

i. The entrance of the Plaza into the CPG development will allow an additional 93m² retail tenancy fronting Forest Road (shown as Retail 3 on attached plan). Rental values are in excess of $1,000 per square metre nett, so adopt a rental value of $93,000 per annum nett.

ii. The Property Rights also allow for three retail shops to front the Plaza (shown as Retail 6, 7 and 8 on attached plan). The area of the three shops is 308m². Again, prime retail that would not exist without the Plaza. Like Forest Road, these shops would attract $1,000 per square metre nett resulting in an annual rental of $307,000 per annum nett.

iii. The proposed DA shows the entire Level 1 of the development to be eateries with kitchens and outdoor dining on the balconies overhanging the park. Such configuration would attract $300 per square metre above that which would normally be achieved if Level 1 was to be conventional office space. At 1134m², an additional $300 per square metre would provide a return of $340,200 per annum nett.

iv. There is considered to be additional benefits to the remainder of the building and general attractiveness to tenants in being located adjacent to a Plaza. Access to the lower ground retail from the lobby could allow retail values of the lower ground floor to achieve rentals in the order of $500 per square metre per annum nett which in this case equates to $132,500 per annum nett.

v. In summary, the possible rental uplift for this development as a result of the Property Rights being granted by Council is in the order of $863,000 per annum nett. It should be noted that the proposed building will be the newest and best located building in Hurstville that will ensure rental increases under current market conditions of 3% annually.

20. In securing the subject Property Rights, the commercial benefit to CPG, at say a yield of 6.5%, is expected to provide an uplift in value to the CPG land-holding in excess of $13 million.

Conclusion

21. As the matter is now before the NSW Supreme Court it is recommended that all negotiations with CPG cease and that Council consider withdrawing from any further dealings for the grant of permanent Property Rights over Central Plaza.

Financial Implications

22. No budget impact for this report.

File Reference

C06/3-3

ATTACHMENTS

Attachment View1

Previous Council Report CCL176-17