HURSTVILLE CITY COUNCIL
CIVIC CENTRE, MACMAHON STREET, HURSTVILLE.
__________________________________

SUMMARY OF ITEMS TO BE ADDRESSED AT
THE ADMINISTRATION MEETING
TO BE HELD ON 16TH APRIL, 2003


Summary:


Item No: ADM046 - 03 - LOCAL GOVERNMENT MANAGERS AUSTRALIA NSW DIVISION - THE 2003 LGMA FORUM
(Report by Administrative Officer, Mr T Hopwood) P/00260


Item No: ADM047 - 03 - REQUEST FOR FINANCIAL ASSISTANCE - BRONWYN JARVIS
(Report by Administrative Officer, Mr T Hopwood) F/00035


Item No: ADM048 - 03 - DISPOSAL/RETENTION OF AUDIO TAPES OF COUNCIL MEETINGS
(Report by Archivist, Ms G Pracy) R/00582


Item No: ADM049 - 03 - THE UNITING CHURCH COUNCIL OF MISSION TRUST ASSOCIATION - NON RATEABLE LAND CLASSIFICATION
(Report by Report by Manager - Rates, Mr W Wood) 004285


Item No: ADM050 - 03 - WEBSITE RE-DEVELOPMENT
(Report by Manager - Customer Relations, Mr P Spyve)


Item No: ADM051 - 03 - DAILY EXPENSE ALLOWANCES
(Report by Senior Manager - Administration, Mr W Park) P/00246


Item No: ADM052 - 03 - ANZAC DAY COMMEMORATION SERVICES - 2003
(Report by Administrative Officer, Mr T Hopwood) C/00030


Item No: ADM053 - 03 - KEY PERFORMANCE AND PERFORMANCE INDICATORS
(Report by Director - Administration, Mr D Rosenbaum) M/00011


Item No: ADM054 - 03 - CERTIFICATE OF CASH AND INVESTMENTS AS AT 31ST MARCH, 2003
(Report by Director - Administration, Mr D Rosenbaum)


Item No: ADM055 - 03 - TENDER - SUPPLY OF A COMPACT WHEEL LOADER
(Report by Administrative Officer, Mr T Hopwood) C/00270


Item No: ADM056 - 03 - TENDER - CRUSHING OF CONCRETE STOCKPILE
(Report by Administrative Officer, Mr T Hopwood) C/00271


Item No: ADM057 - 03 - DISCLOSURE OF INTERESTS BY DESIGNATED PERSONS
(Report by Manager - Administration, Mr L Mifsud) P/00005


Item No: ADM058 - 03 - ST GEORGE SMALL BUSINESS AWARDS
(Report by Manager - Customer Relations, Mr P Spyve) C/00138


Item No: ADM059 - 03 - COMPUTERFLEET - MANAGED IT LEASING PROPOSAL
(Report by Director - Administration, Mr D RosenbaumChief Financial Officer, Mr T Sjahry)


Item No: ADM060 - 03 - MATTERS SUBMITTED FOR THE INFORMATION OF MEMBERS
(Report by Senior Manager - Administration, Mr W Park) C/00122




___________________________________________________________________________
Meeting No. 3 to be held on 16th April, 2003


9th April, 2003

His Worship the Mayor and the Councillors

Dear Member,

I have by direction to inform you that a meeting of the ADMINISTRATION COMMITTEE of the Council will be held at the Civic Centre, Hurstville, on WEDNESDAY 16 APRIL, 2003 at 7.00 P.M. to deal with the Business herein mentioned.

Yours faithfully,


GENERAL MANAGER

B U S I N E S S:


5.30 p.m. Dinner

7.00 p.m. 1. Apologies

2. Disclosure of Interest

3. Consideration of reports submitted to the:

Administration CommitteeCOMMITTEE MEMBERSHIP: QUORUM: 3

His Worship the Mayor, Councillor V Badalati (Chairperson)
Deputy Mayor, Councillor C Wong
Councillor C Lee
Councillor S McMahon



Meeting Date: 16/04/2003

ADM046 - 03LOCAL GOVERNMENT MANAGERS AUSTRALIA NSW DIVISION - THE 2003 LGMA FORUM

REPORT AUTHOR/S

Administrative Officer, Mr T Hopwood

FILE REFERENCE

P/00260

REASON FOR REPORT

Inform Councillors of the upcoming 2003 LGMA Forum

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

Possible use of delegates expenses

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
This report provides Members with the details of the upcoming 2003 Local Government Managers Australia NSW Division Forum.

RECOMMENDATION
THAT interested Councillors and staff, as considered appropriate by the General Manager, be authorised to attend the LGMA Forum to be held on 2nd June, 2003 and that registration fees and out-of-pocket expenses by met by Council.

REPORT DETAIL
Advice has been received from the Local Government Managers Australia NSW Division that the Annual LGMA Forum will be held on Monday, 2nd June, 2003 and the title of this year's Forum is “The Meaning of Life - a Local Government Perspective".The Forum will be held at the Sydney Convention & Exhibition Centre, Darling Harbour. The Forum’s program will incorporate prominent and entertaining speakers covering a wide range of industry relevant topics and issues, such as:
The LGMA Forum is included in the list of key conferences and in the past Council has authorised the attendance of interested Councillors and appropriate officers at the Forum and it is considered that this action will once again be appropriate. The registration fee for the Forum is $295.00 per person, including G.S.T.

The Director - Administration has advised that of the budgeted allocation of $65,000 for Staff Delegate Expenses, $58,537.00 has been expended and as such $6,463.00 is available for expenditure. Additionally, of the original budget allocation of $55,000 for Councillors' Delegates Expenses, $24,755.83 has been expended and as such $30,244.17 is available for expenditure.

In view of the above information, the above-mentioned recommendation is referred to Council for consideration.


APPENDIX


COMMITTEE RECOMMENDATION
THAT interested Councillors and staff, as considered appropriate by the General Manager, be authorised to attend the LGMA Forum to be held on 2nd June, 2003 and that registration fees and out-of-pocket expenses by met by Council.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT interested Councillors and staff, as considered appropriate by the General Manager, be authorised to attend the LGMA Forum to be held on 2nd June, 2003 and that registration fees and out-of-pocket expenses by met by Council.

(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM047 - 03REQUEST FOR FINANCIAL ASSISTANCE - BRONWYN JARVIS

REPORT AUTHOR/S

Administrative Officer, Mr T Hopwood

FILE REFERENCE

F/00035

REASON FOR REPORT

Request for financial assistance to be considered by Council

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

Funds available in budget

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
This report details a request from Bronwyn Jarvis for financial assistance to help defray the costs of competing for the New South Wales Country Women’s Baseball Team at the National Championships to be held in Perth between 17th – 27th April, 2003.

RECOMMENDATION
THAT Council provide a grant of $200 under the provisions of Section 356 of the Local Government Act, 1993, to Miss Bronwyn Jarvis to assist her with expenses associated with her participation in the New South Wales Country Women’s Baseball Team at the National Championships to be held in Perth between 17th – 27th April, 2003.

FURTHER, THAT Miss Jarvis be requested to submit a report on her results achieved at the Championships.

REPORT DETAIL
The following letter received by Council on 14th March, 2003 has been received from Bronwyn Jarvis seeking financial assistance from Council to help defray the costs of competing for the New South Wales Country Women’s Baseball Team at the National Championships to be held in Perth between 17th – 27th April, 2003.
Note: This doesn't include the uniform and food whilst
in Perth.
I have a long history in representative sports including:
Members will be aware that Council adopted a policy in respect of requests such as that submitted by Miss Jarvis at its meeting held on 14th December, 1994

The policy provides sporting, cultural, art and academic grants to enable individuals selected by the governing or sponsoring body of a recognised competition or exhibition to participate, subject to:-

(1) the individual concerned being eighteen years of age or under.
(2) the individual being a resident or attending school in the Hurstville City area.
(3) the activity being a recognised regional, state, national or international competition or exhibition.
(4) the individual being required to submit a report on the results achieved at the competition or exhibition notwithstanding whether the individual participated on an individual or team basis.

Council's policy also provides for such donations to be an amount of up to $200 to offset expenses for competitions and exhibition.

Bronwyn Jarvis appears to meet requirements 1, 2 and 3 of Council's policy referred to above as she lives in the Hurstville City area. In view of the Council's policy, the above-mentioned recommendation is submitted for Council's consideration.

APPENDIX


COMMITTEE RECOMMENDATION
THAT Council provide a grant of $200 under the provisions of Section 356 of the Local Government Act, 1993, to Miss Bronwyn Jarvis to assist her with expenses associated with her participation in the New South Wales Country Women’s Baseball Team at the National Championships to be held in Perth between 17th – 27th April, 2003.

FURTHER, THAT Miss Jarvis be requested to submit a report on her results achieved at the Championships.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT Council provide a grant of $200 under the provisions of Section 356 of the Local Government Act, 1993, to Miss Bronwyn Jarvis to assist her with expenses associated with her participation in the New South Wales Country Women’s Baseball Team at the National Championships to be held in Perth between 17th – 27th April, 2003.

FURTHER, THAT Miss Jarvis be requested to submit a report on her results achieved at the Championships.

(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM048 - 03DISPOSAL/RETENTION OF AUDIO TAPES OF COUNCIL MEETINGS

REPORT AUTHOR/S

Archivist, Ms G Pracy

FILE REFERENCE

R/00582

REASON FOR REPORT

To implement a disposal program as authorised under the General Disposal Authority for Local Government (GDA 10).

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

If recommendation adopted, an ongoing cost-saving to Council.

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
The purpose of this report is to obtain approval from Council with regard to the destruction of audio cassette tapes of Council meetings. At present, there are 1,309 tapes of Council meetings covering the period 1978 to 1994 held by Council's Archives. All of these tapes are now in need of re-copying and all require specialist archival storage conditions if they are to be retained.

RECOMMENDATION
THAT Council dispose of audio tapes of Council meetings at the expiration of twelve (12) months after their last use as allowed under General Disposal Authority (10).

FURTHER, THAT Council dispose of all tapes that are currently in storage that are more than twelve (12) months old.

REPORT DETAIL
Background
In 1972 Council commenced the practice of taping, on audio cassette tapes, all Council meetings. The reason for this was to provide the Minute Clerk with a backup resource to ensure all information from the meetings was accurately transcribed into the official record, ie the Council Minutes.

This practice has resulted in a large quantity of tapes being accrued (1,309) and now requiring costly preservation action, ie stored in archival conditions (minus 0.5 degrees Celsius) and copied every ten years to ensure the information on them is retained.

At present, the archival holdings are stored in two locations, the Government Records Repository (GRR) at Kingswood which holds seven boxes (566 tapes) and the Civic Centre basement, which has twelve boxes containing 743 tapes. It should be noted that if a decision is made to continue retaining the tapes as a permanent record, these twelve boxes must also be transferred to the GRR. The current holdings (660 tapes), dating from 1994 are housed at present in a filing cabinet in the Minute Clerk’s office.

In February 1978, a report was written by the Town Clerk and titled “Disposal of Tape Recordings of Council Meetings”. This report sought permission to erase the tape recordings of Council proceedings as authorised under the provisions of the Ordinance 1, Clause 55(b) of the Local Government Act. The Act allowed for the audio tapes of Council proceedings to be erased three months after the relevant Meeting. Council accepted the recommendation of the Town Clerk’s report, but in reality the recommendation was never acted upon.

In the past, the audio tapes were transferred to Archives whenever the Minute Clerk’s cabinet became full. Prior to the transfer, tapes were copied, (a preservation measure) and once in the archives each tape was documented and boxed. Such a transfer of tapes to the Archives is once again due.


Retention of the tapes
It has become Council’s practice to retain the audio tapes of Council meetings permanently. This is in spite of the fact that:
· the audio tapes are not a permanent record
· are produced only as a backup resource for the Minute Clerk
· Council’s resolution of February 1978 authorising disposal of the tapes and
· recommendations of both the past and present disposal schedule for Local Government Records.
Cost of continuing current practices
To continue this current practice will prove costly in the new financial year. Council currently pays storage fees to retain some of these tapes and should a decision be made to continue retaining them permanently, this cost will increase substantially.

Also, Council will have to fund the cost of replacement audio cassette tapes as well as the associated staff costs incurred in reproducing the audio tapes as a preservation measure, listing the individual tapes, boxing them etc.

The minimum cost (associated staff costs have not been included) of retaining permanently the present archival holdings of audio tapes of Council Meetings in the new financial year would be $3,053. This would be made up of:
· $2,000 The cost of new replacement audio tapes · $1,053 The cost of specialist archival storage
Options
Council has three options in regard to the retention of the audio-tapes:
1. continue to retain the tapes permanently, with Council willing to fund the increasing expenditure that will be incurred for storage, replacement tapes and associated staff costs
2. follow the recommendations of the GDA 10 and destroy the tapes three months after the relevant meeting or
3. retain the tapes for a period of twelve months. This period would:
· allow ample time for referral
· eliminate the need for expensive off-site storage
· eliminate the expense of purchasing replacement audio tapes
· effect staff cost savings as the copying process would be eliminated.

Conclusion
It is recommended that option three be adopted. The retention period being provided is still greater than that recommended by the GDA 10. Council would still have sufficient time to complete all its administrative usage of the tapes, and disposal of the tapes could be undertaken periodically as an organised and systematic process.

APPENDIX


COMMITTEE RECOMMENDATION
THAT the matter be referred to Council for consideration.
(Moved Clr C Lee /Seconded Clr C Wong)
COUNCIL RESOLUTION
RESOLVED THAT the matter be deferred in order for Council to seek advice from the Local Government Minister's Office and also legal advice from Council's Solicitors.

It being noted that this motion was carried unanimously.
(Moved Clr M Frawley /Seconded Clr P Sansom)


Meeting Date: 16/04/2003

ADM049 - 03THE UNITING CHURCH COUNCIL OF MISSION TRUST ASSOCIATION - NON RATEABLE LAND CLASSIFICATION

REPORT AUTHOR/S

Report by Manager - Rates, Mr W Wood

FILE REFERENCE

004285

REASON FOR REPORT

To re-classify land for rating purposes

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

Yes

FINANCIAL IMPLICATIONS

Loss of Rate Income

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
To grant rate exemption to The Uniting Church Council of Mission Trust Association in respect of their property located at 26 Salisbury Street Penshurst, under Section 555(1)(e)(iv) of the Local Government Act.

RECOMMENDATION
THAT as a matter of policy, Council approve requests for land to be reclassified non-rateable, only from the financial rating year at which time the Council determines such requests or if a property is purchased within the financial rating year, the non-rateability only be granted from when the date of usage for non-rateability complies with the requirements of the Local Government Act and that this policy apply to the current request.

THAT Council grant rate exemption to The Uniting Church Council of Mission Trust Association in respect of their property located at 26 Salisbury Street Penshurst, from 1st July 2002 under Section 555(1)(e)(iv) of the Local Government Act.

FURTHER, THAT a refund of rates paid by The Uniting Church Council of Mission Trust Association in respect of their property located at 26 Salisbury Street Penshurst since 1st July 2002 be refunded.


REPORT DETAIL
The Uniting Church Council of Mission Trust Association has applied for rate exemption under Section 555 (1)(e)(iv) of the Local Government Act, on their property located at 26 Salisbury Street Penshurst. The Trust Association is a company established to promote the activities and interests of the Uniting Church in Australia and to act as and allow its name to be used as Trustee or Agent for the Uniting Church in Australia.

The Trust Association acquired the property on the 14 December 2000, and the building is occupied solely as the residence of their minister Reverend Terence Corkin and his family. Reverend Corkin is an accredited full time Uniting Church minister and he is currently ‘General Secretary’ of the National Assembly of the Church. This position is equivalent to that of Chief Executive Officer of the Church.

The responsibilities of the General Secretary are defined in Clause 3.6.16 of the Uniting Church in Australia regulations as follows: -
“The responsibilities of the General Secretary, as executive officer of the Assembly, shall be to give general leadership to the Church, to ensure execution of Assembly policy, to coordinate Assembly activities, to oversee the management of Assembly staff and to do such other things as the Assembly may require. The General Secretary shall be a member ex-officio of all Assembly bodies.”

Land that is exempt from rating charges is defined under Sections 555 & 556 of the Local Government Act and provided that the land is used for the purposes as specified under the Act, the land will be classified by Council as non-rateable land.

In determining whether land is non-rateable, it is incumbent of the owner to apply for rate exemption, verify that the land should be classified as non-rateable due to its current usage under the relevant provisions of sections 555 & 556 of the Local Goverment Act.

Section 555 (1)(e)(iv) of the Local Government Act provides that land is exempt from all rates that (e) belongs to a religious body and is occupied and used in connection with (iv) a building used or occupied solely as the residence of the official head or the assistant official head (or both) of any religious body in the State or in any diocese within the State.

In this regard, it is considered that the Trust Association’s request is in accordance with the Act, the land should be classified as non-rateable land.

However, the Local Government Act does not provide any reference in situations where a request for non-rateable status is received for a retrospective rate adjustment to previous rating periods.

To continue to grant rate income adjustments for previous rating periods, is a burden on Council's Rate Levy Budget and a policy is required to reduce the level of a retrospective rate adjustment. An applicable adjustment would be to limit the adjustment to the commencement of the current rating period, or if a property is purchased within the financial rating year the non-rateability only be granted from when the date of usage for non-rateability complies with the requirements of the Local Government Act for which a rate exemption request is determined by Council.


APPENDIX


COMMITTEE RECOMMENDATION
THAT as a matter of policy, Council approve requests for land to be reclassified non-rateable, only from the financial rating year at which time the Council determines such requests or if a property is purchased within the financial rating year, the non-rateability only be granted from when the date of usage for non-rateability complies with the requirements of the Local Government Act and that this policy apply to the current request.

THAT Council grant rate exemption to The Uniting Church Council of Mission Trust Association in respect of their property located at 26 Salisbury Street Penshurst, from 1st July 2002 under Section 555(1)(e)(iv) of the Local Government Act.

FURTHER, THAT a refund of rates paid by The Uniting Church Council of Mission Trust Association in respect of their property located at 26 Salisbury Street Penshurst since 1st July 2002 be refunded.
(Moved Clr C Lee /Seconded Clr C Wong)
COUNCIL RESOLUTION
RESOLVED THAT as a matter of policy, Council approve requests for land to be reclassified non-rateable, only from the financial rating year at which time the Council determines such requests or if a property is purchased within the financial rating year, the non-rateability only be granted from when the date of usage for non-rateability complies with the requirements of the Local Government Act and that this policy apply to the current request.

THAT Council grant rate exemption to The Uniting Church Council of Mission Trust Association in respect of their property located at 26 Salisbury Street Penshurst, from 1st July 2002 under Section 555(1)(e)(iv) of the Local Government Act.

FURTHER, THAT a refund of rates paid by The Uniting Church Council of Mission Trust Association in respect of their property located at 26 Salisbury Street Penshurst since 1st July 2002 be refunded.

(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM050 - 03WEBSITE RE-DEVELOPMENT

REPORT AUTHOR/S

Manager - Customer Relations, Mr P Spyve

FILE REFERENCE

N/A

REASON FOR REPORT

To update Council on the redesign of the Council's website

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

None as the project already has funding allocated for its implementation.

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
Since the middle of last year Website Working Group chaired by the Manager - Customer Relations has been examining options for the upgrade of the Council’s website. A report was produced by the Working Group in December 2002 recommending Council engage a consultant to undertake the revision of the site and also establish a Website Users Group coordinated by the position of Web Coordinator to internally manage the content of the site. A total of six companies were invited to outline their content management system and redesign options. Out of this a company has been selected and they are about to commence work on the new site.

RECOMMENDATION
THAT the report be received and noted.

REPORT DETAIL
On 19th June 2002 the Manager Community Liaison forwarded a memo to the General Manager recommending that a review of Council’s website be urgently undertaken. A customer survey undertaken by Community Liaison had revealed that 60% of the respondents were not aware that Hurstville had a website with 76% of them hardly ever using it. A further 78% of respondents said that the website did not provide them with relevant information.

The memorandum also pointed out that apart from the results provided by the Customer Survey, the website’s physical design was in urgent need of an upgrade. Council’s website had been developed in the early 1990s and not much had been done to it since despite there being significant advances in website design and presentation. It had developed in a haphazard way which meant its content was often out of date and its layout made it difficult to navigate. It was felt that a complete overhaul was long overdue.

To make matters worse there was a tremendous amount of dated material on the website which in the absence of a disclaimer being on the site, had the potential to leave the Council open to liability issues.

For this purpose a Working Group was established to undertake a review of Council’s website. The Working Group was made up of representatives from across the Council to ensure that there was input from all the operational areas of Council.

Membership of the Working Group consisted of:

Paul Spyve Manager Customer Relations (Chair)
Lisa Smith Community Liaison
Warren Park Administration/Customer Service
Craig Nakkan Customer Service
Alison Horne Engineering
Aaron Grimston GIS
Michael Andon GIS
Brett Harrison MIS
Susan McAnna MIS
Gary Ryland MIS
Cheryl Flynn Town Centre Manager
Cindy Cunningham Policy Planning & Environment
Matthew Jericho Policy Planning & Environment
David Linden Community Services
Mark D’Astoli Community Services
David Rosenbaum Business & Finance
Glenn McCarthy GM’s office
Grace Thoo Library
Graham Blewett Library
Gaye Pracey Archivist
Rebekah Schulz St George Regional Museum
Greg Scotton Development & Health
Gary Dickens Development & Health
Patricia Sarsero Records
Peter Jackson Divisional Manager Corporate & Community Services

The brief of the Working Group was:
1. To review the content and design of Hurstville’s current website and to examine options for improving its look and content.
2. To examine possible options for the revamp of the website
3. To examine what other information needed to be contained on the website.
4. To look at ways of better integrating the various sub-websites currently being run by the Council to provide for a single easy to maintain site.
5. To look at the Council’s intranet and examine ways that its content can be extended and better integrated with the material on the internet site.
6. To look at options for the future management and maintenance of the website.
7. To report back to the General Manager through the Divisional Manager Corporate and Community Services on possible options for the future design and management of the website.
8. To examine the technical issues relating to the Website’s domain address and its hosting arrangements with the State Library.
9. To review the website’s domain name.

The old website was originally designed to function as a kind of community portal for the wider Hurstville Community. Its homepage reflected this approach with a graphic that represented the broader community that showed a stylised map of the city. Although the intent was quite advanced for its time, this frontpage never really delivered on its potential. The shopping, schools, transport, directory and childcare sections provided only minimal information. Hurstville’s website was also characterised by two subsites consisting
of the Library and the St George Regional Museum which had a separate design and feel to the parent site.

Once past the Homepage, the user was confronted by a largely disorganised site that had grown in a random fashion over the years. As a new topic arose, it was just added to the site.
This meant that the content was very disorganised and very difficult to navigate around. Also, a lot of this material was dated which meant that users often received information that was out of date or irrelevant. To make matters worse, the site also lacked a search engine facility that would have greatly assisted users in quickly finding the information they were seeking.

To sort out many of the initial problems with the website, once the Web Coordinator was appointed in January, her first task was to undertake a ‘clean-up’ of the site to remove dated files. A temporary website was created at the end of February and has been in operation since with the intent that it will be replaced by something more permanent once the Content Management System had been decided upon.

The company ‘Creative Engine’ has been engaged to implement the new Content Management System for Council’s Website. Creative Engine have undertaken redesigns of several councils’ websites, the most notable of which is Manly’s. They are currently working on Willoughby’s new site as well.

Council will shortly be establishing a Website Users Group that will have representatives from all the operational areas of council. This group will be responsible for managing the day-to-day content of the website with the Web Coordinator being the quality control officer to ensure this material is relevant and up to date and that they are operating within the parameters of the Content Management System.

As funding is currently available for the website redesign it is envisaged that the project will be completed by the end of this financial year.


APPENDIX


COMMITTEE RECOMMENDATION
THAT the report be received and noted.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT the report be received and noted.

(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM051 - 03DAILY EXPENSE ALLOWANCES

REPORT AUTHOR/S

Senior Manager - Administration, Mr W Park

FILE REFERENCE

P/00246

REASON FOR REPORT

To review the process for setting the daily allowance when Councillors & staff attend conferences

DOES AN EXISTING POLICY COVER THIS MATTER?

Yes

IF "NO" - SHOULD A POLICY BE DEVELOPED?

Existing Policy to be updated

FINANCIAL IMPLICATIONS

Anticipated reduction in the total amount of allowances paid per annum

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
To review the process for setting the daily allowance for when Councillors and staff attend Conferences approved by the Council and how that allowance is determined on an annual basis to ensure there is accountability and transparency in the payment/reimbursement of expenses to Councillors (staff), particularly as public moneys are being expended.

RECOMMENDATION
THAT daily expense allowances continue to be be paid to Councillors and staff when attending duly authorised conferences on the Council's behalf in accordance with the method approved by the ATO for reasonable expenses up to the limit of $101.15 per day and in future years as amended by ATO rulings – i.e. if meals are provided within the conference registration costs, the relevant amount be deducted from the allowance & that the allowance be paid in advance with no further substantiation required.

THAT the procedure and policy be implemented from 1st July 2003.

FURTHER, THAT in accordance with S253 [2] of the Act, and the view that Council is of the opinion that this amendment to the policy is not substantial, the amendment to Council's "Civic Office Expenses & Facilities Policy" be adopted without giving public notice.

REPORT DETAIL
By Department of Local Government Circular 2/55 dated 1st November, 2002 it was advised that Clause 42A of the Local Government (General) Regulation 1999 had been amended as of 1st November, 2002 as follows.
This matter was discussed at a Local Government "Governance Network Group" meeting in December and it was decided to request the Department to clarify whether this amendment had any affect on "Allowances" to Councillors / staff when attending conferences, etc., authorised by the Council.

The Department has now responded by letter dated 5th February, 2003, as follows.
In relation to Circular 2/55, Council does not pay a "General Expense Allowance" to Councillors and therefore no further action is required in this regard. However, the requirement that there needs to be “accountability and transparency in the reimbursement of expenses to Councillors”, particularly as public moneys are being expended, should be noted.

With respect to the letter from the Department dated 5th February, 2003, there is no prohibition on Council continuing to pay a daily allowance to Councillors / staff when attending duly authorised conferences and in this respect Council's policy on "Civic Office Expenses and Facilities" does not require amendment unless it is being amended.

Notwithstanding the above, it would be desirable to review Council's policy in respect to the level of and the procedures for payment of the "daily allowance" to ensure the Department's statement "there needs to be accountability and transparency in the reimbursement of expenses to Councillors (staff), particularly as public moneys are being expended" is being complied with.

Level of Allowance
Council's policy on "Civic Office Expenses and Facilities" provides –

"Expenses"
1. Conferences and SeminarsCouncil sets the level of the allowance annually when adopting the Draft Program Budget and Management Plan in June of each year. The current allowance is $90 per day and has been this amount for a substantial number of years (prior to 1986).The allowance is paid to cover expenses other than registration, travel, accommodation and official functions, i.e. conference dinner and meals included in the Conference registration costs.

Prior to the Council's policy being implemented in 1994, Council followed very similar guidelines and in fact this is how the Policy was developed. In the 1980s and early 1990s, the allowance covered a number of meals that were not provided in the Conference registration costs, telephone and taxi expenses and other minor ancillary costs that may be incurred when attending conferences away from the normal work environment.

Conferences now generally include all Conference lunches within the registration costs and some Hotels provide breakfasts within accommodation costs. Council has also now issued a Cabcharge Card to Councillors as well as a mobile phone.In view of the changing circumstances of how Conferences are now being organised and the additional facilities being provided by the Council, it would appear to be an opportune time to consider the appropriateness of the allowance, and if to continue, how the level of the allowance should be set.

"Level Determined by Whom".
1. Council can continue to set the allowance.
2. Follow Federal / State Government guidelines (set by the relevant Remuneration Tribunal).
3. Adopt the process provided for within the Australian Taxation Guidelines.


Council to Set Allowance.
This option may be open for the public to suggest it is not transparent enough in relation to the level and how payment is made. However a number of councils set their own allowance but with conditions attached. ie only on a reimbursement basis and within certain time limits.

The higher the allowance generally requires the production of receipts and in most cases the allowance is paid on a reimbursement basis rather than in advance or a lower allowance, say $50.00, is not required to be substantiated.


Government Remuneration Tribunal.
State - Currently $95 per day when accommodation is met by another entity and not the officeholder (comprised of Dinner - $35; Lunch - $25; Breakfast - $16; Incidentals - $19.)
Federal - Other than the Prime Minister, Ministers of State and Officeholders are entitled to a travelling allowance of $80 per day when accommodation is met by the Government and is made on a reimbursement basis.


Australian Taxation Guidelines (Reasonable Allowances – TR 2002/12)
A determination as to the amount is made annually. It currently provides for $101.15 (comprising Dinner - $37; Lunch - $26.35; Breakfast - $18.65; Incidentals - $19.15.) for employees on an annual salary of $72,451 to $129,730.

No matter what agency sets the level of the allowance, it must be seen to be appropriate and there should be checks and balances as to how it is paid (i.e. in advance or reimbursement) subject to either production of receipts or a statutory declaration for the expenditure.

The current practice of payment of allowances without the need to substantiate the advance by way of the production of receipts, may have other implications for Council with regard to PAYG and GST.

In this regard I requested a report from Council’s Manager - Financial Projects and the report is summarised as follows:


Allowance Method:

Staff
PAYG As long as the ATO Reasonable Expenses allowance is adopted Council does not have to deduct PAYG tax and does not have to show the allowance amount on annual payment summaries for staff who have received an allowance throughout the year.

GST There is no GST component within the allowance paid in advance but Council would be losing the ability for claiming GST credits as the recipient does not have to submit invoices / receipts for expenditure incurred.

Councillors
PAYG No PAYG is required as Councillors are not deemed “employees” under the Tax Act. It is up to the individual Councillors to account for any allowances received within their own tax return.

GST Same as staff above


Re-imbursement Method:

Staff / Councillors
PAYG/GST As this is a re-imbursement method there is no PAYG or GST implications and re-imbursements should continue to be made through Accounts Payable or Petty Cash.

Through this method Council currently claims GST credits for the expenditure incurred subject to tax invoices being received or other documentation where the GST exclusive value is less than $50.Summary

Council should now review its procedures for the payment of allowances to Councillors and Staff when attending authorised conferences on the Council’s behalf. The method of fixing the allowance could be one of four mentioned – i.e. Council, ATO, State or Federal Government formulas whilst keeping in mind the Department of Local Government's comments about the payment of allowances being accountable and transparent.

Options to consider are –

(a) Council discontinue the payment of Allowances and all reasonable expenses from conferences be met by Council – i.e. meals not provided within the Conference registration, reasonable refreshment costs, other expenses that Council would normally meet upon production of receipts / tax invoices etc.
.
(b) Council continue to set its own level for Councillors (say approximately $90 per day) and it be paid as either an advance or reimbursement on production of receipts or a statutory declaration stating the allowance was expended on Conference and official expenses; or if set at a lower level, say $50 per day, then no substantiation is required and all staff be entitled to re-imbursement of all reasonable costs incurred upon production of receipts / tax invoices etc.

(c) That allowances be paid to Councillors in accordance with the method approved by the ATO for reasonable expenses up to the limit of $101.15 per day and in future years as amended by ATO rulings – i.e. if meals are provided within the conference registration costs, the relevant amount be deducted from the allowance & that the allowance be paid in advance with no further substantiation required.

Subject to how this issue is resolved an amendment to Council’s policy “Civic Office Expenses and Facilities” may be required and if this is the case, the policy will need to be advertised as required by the Act (S253 [1]). However S253 [2] of the Act states "However, if the Council is of the opinion that any amendments to a policy are not substantial, it may adopt the amended policy without giving public notice".

As council is not creating a new policy but only changing the method of setting the level of the allowance which is only marginally more than that currently paid, it is considered the amendment is not substantial and does not need to be advertised.


APPENDIX


COMMITTEE RECOMMENDATION
THAT the matter be referred to Council for consideration.
(Moved Clr C Lee /Seconded Clr C Wong)
COUNCIL RESOLUTION
RESOLVED THAT Council maintain the existing allowances as they currently stand.
(Moved Clr P Sansom /Seconded Clr B Giegerl)


Meeting Date: 16/04/2003

ADM052 - 03ANZAC DAY COMMEMORATION SERVICES - 2003

REPORT AUTHOR/S

Administrative Officer, Mr T Hopwood

FILE REFERENCE

C/00030

REASON FOR REPORT

Information regarding 2003 Anzac Day Commemoration Services

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

N/A

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

Yes. Item ADM040-03 - Administration Committee report to Council Meeting of 26th March, 2003


EXECUTIVE SUMMARY
This report gives details regarding 2003 Anzac Day Commemoration Services to be held in the Hurstville Council area and Council's official representative at each service.

RECOMMENDATION
THAT the information be received and noted.

REPORT DETAIL
Members will recall that at the Council Meeting held on 26th March, 2003, a summary was provided of the Anzac Commemoration Services to be held during April 2003.As His Worship the Mayor is unable to attend all the Anzac Commemoration Services, the Mayor has appointed the following Councillors to make the official Council presentation at the services. The list also details other Councillors also attending each service.
Members are invited to attend any of the above services and a memo has been sent to Councillors under separate cover outlining the details of each service.

APPENDIX


COMMITTEE RECOMMENDATION
THAT the information be received and noted.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT the information be received and noted with an amendment being made to Item ADM052-03 - ANZAC DAY COMMEMORATION SERVICE - 2003 that Councillor P Sansom be listed as attending the St George Masonic Club Commemoration Service at 3.00pm.
(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM053 - 03KEY PERFORMANCE AND PERFORMANCE INDICATORS

REPORT AUTHOR/S

Director - Administration, Mr D Rosenbaum

FILE REFERENCE

M/00011

REASON FOR REPORT

Monthy Update

DOES AN EXISTING POLICY COVER THIS MATTER?

Yes

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

N/A

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
Regular monthly updates.

RECOMMENDATION
THAT the information be received and noted.

REPORT DETAIL
Attached below are the KPI’s in respect of March, 2003. The file can be viewed by utilising the following instructions:-
APPENDIX
Kpimar03.exe

COMMITTEE RECOMMENDATION
THAT the information be received and noted.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT the information be received and noted.

(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM054 - 03CERTIFICATE OF CASH AND INVESTMENTS AS AT 31ST MARCH, 2003

REPORT AUTHOR/S

Director - Administration, Mr D Rosenbaum

FILE REFERENCE

N/A

REASON FOR REPORT

Monthly update

DOES AN EXISTING POLICY COVER THIS MATTER?

Yes

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

No

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY


RECOMMENDATION
THAT the report be received and noted.

REPORT DETAIL
The file can be viewed by utilising the following instructions:

* Double click on the file attached below
* Lotus Notes users only – Click on Launch
* Internet Users only – Select “Open It” (Netscape) or “Run this program from its current location” and “Yes” (Internet Explorer) and OK
* Click on OK
* Microsoft Excel will automatically start
* Click on Enable Macros.

The Certificate of Cash and Investments is available on Council’s Internet site at www.hurstville.org/kpi’s and instructions for viewing the document are available at this location. A standard installation of Microsoft Office is required to view the Certificate of Cash and Investments.

APPENDIX
certmar03.exe

COMMITTEE RECOMMENDATION
THAT the report be received and noted.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT the report be received and noted.

(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM055 - 03TENDER - SUPPLY OF A COMPACT WHEEL LOADER

REPORT AUTHOR/S

Administrative Officer, Mr T Hopwood

FILE REFERENCE

C/00270

REASON FOR REPORT

List of tenders received

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

N/A

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
The report provides a list of tenders received

RECOMMENDATION
THAT the information be received and noted.

REPORT DETAIL
The receipt of tenders for the supply, delivery and registration of a Compact Wheel Loader closed at 10.00am on Wednesday, 2nd April, 2003.

The tenders have been referred to the Manager - Works for a report to Council are as follows.

1. Case Equipment Sales, 31-63 Kurrajong Road, St Marys.
2. Construction Equipment Australia, 100-102 Redfern Street, Wetherill Park, NSW 2164.
3. AWD Equipment Sales, Lot 3B, Hill Road, Homebush.
4. CJD Equipment Pty Ltd., 10 Anzac Avenue, Smeaton Grange.
5. Gough & Gilmour Holdings, 1 Crescent Street, Granville.
6. BT Equipment, 6 Ferngrove Place, South Granville.
7. Komatsu Aust. Pty Ltd., Cnr Lisbon & Mandarin Streets, Fairfield.
8. Comlease AFG Limited, Level 10, 68 Alfred Street, Milsons Point.

APPENDIX


COMMITTEE RECOMMENDATION
THAT the information be received and noted.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT the information be received and noted.

(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM056 - 03TENDER - CRUSHING OF CONCRETE STOCKPILE

REPORT AUTHOR/S

Administrative Officer, Mr T Hopwood

FILE REFERENCE

C/00271

REASON FOR REPORT

List of tenders received

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

N/A

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
The report provides a list of tenders received.

RECOMMENDATION
THAT the information be received and noted.

REPORT DETAIL
The receipt of tenders for the crushing of the concrete stockpile within the Council's Depot closed at 2.00pm on Tuesday, 1st April, 2003.

The tenders which have been referred to the Manager - Technical Services for a report to Council are as follows.

1. Waste Consulting Pty Ltd., 9 Pacific Avenue, Penshurst 2222.
2. Davis Earthmoving and Quarrying Pty Ltd., PO Box 19, Terry Hills 2084.
3. State Wide Crushing & Screening Pty Ltd., PO Box 1770, South Coast Mail Centre 2521.
4. Nustas Pty Ltd., 16 Kerr Road, Ingleburn 2565.
5. John F Taylor & Sons (NSW) Pty Ltd., 26 Bosli Road, Ingleburn 2565.
6. Metropolitan Demolitions & Recycling Pty Ltd., 396 Princes Highway, St Peters 2044.

APPENDIX


COMMITTEE RECOMMENDATION
THAT the information be received and noted.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT the information be received and noted.

(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM057 - 03DISCLOSURE OF INTERESTS BY DESIGNATED PERSONS

REPORT AUTHOR/S

Manager - Administration, Mr L Mifsud

FILE REFERENCE

P/00005

REASON FOR REPORT

Statutory requirement

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

Nil

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
Section 450A of the Local Government Act, 1993, requires all Disclosure of Interest Returns lodged to be tabled at the first meeting of the Council after the last day for lodgment of the Returns.

The Director - Service Delivery has now lodged his Section 449(1) Return.

RECOMMENDATION
THAT the information be received and noted.

REPORT DETAIL
As Members may be aware, Chapter 14 of the Local Government Act, 1993 concerns "Honesty and Disclosure of Interests".
APPENDIX


COMMITTEE RECOMMENDATION
THAT the information be received and noted.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT the information be received and noted.

(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM058 - 03ST GEORGE SMALL BUSINESS AWARDS

REPORT AUTHOR/S

Manager - Customer Relations, Mr P Spyve

FILE REFERENCE

C/00138

REASON FOR REPORT

Update on Council’s sponsorship of the St George Small Business Awards

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

Yes, but with only a minor impact – Sponsorship amount has been budgeted for in 2002/3 budget (40931 – 700). Only $7000 (excl. GST) has been budgeted for so the account will be overdrawn by around $220.

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

Item ADM033-03 of 26th March 2003


EXECUTIVE SUMMARY
The St George & Sutherland Shire Leader is seeking $7920 (including GST) to sponsor the 2003 Small Business Awards. At the Administration Committee Meeting of 18th February the report recommending sponsorship of the awards was held over until the Mayor had discussions with his fellow St George Mayors. This consultation has now taken place and Council is willing to provide the sponsorship requested.

RECOMMENDATION
THAT Council provide sponsorship of $7920 including GST to the St George & Sutherland Shire Leader for the 2003 St George Small Business Awards.

REPORT DETAIL
The Leader has approached the Council seeking its support for this year’s St George Small Business Awards which will be held on Friday 27th June 2003. Council has traditionally been a supporter of this event by being a sponsor along with the Kogarah and Rockdale councils. The sponsorship cost for this year is $7920 including GST. Council has budgeted for this sponsorship in its 2002/03 Management Plan.

At the Administration Committee Meeting of 18th March the report was set aside with a request for the Mayor to consult with his fellow St George Mayors to see if they would be supporting this year’s awards. This consultation has now taken place and it appears these councils will be providing sponsorship for this year.

APPENDIX


COMMITTEE RECOMMENDATION
THAT Council provide sponsorship of $7920 including GST to the St George & Sutherland Shire Leader for the 2003 St George Small Business Awards with a review to follow for future years.
(Moved Clr C Lee /Seconded Clr C Wong)
COUNCIL RESOLUTION
RESOLVED THAT Council provide sponsorship of $7920 including GST to the St George & Sutherland Shire Leader for the 2003 St George Small Business Awards with a review to follow for future years.

(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM059 - 03COMPUTERFLEET - MANAGED IT LEASING PROPOSAL

REPORT AUTHOR/S

Director - Administration, Mr D Rosenbaum
Chief Financial Officer, Mr T Sjahry

FILE REFERENCE

N/A

REASON FOR REPORT

To seek Council approval to set-up & utilise an Operating Lease Facility with Computer Fleet in relation to HCC Capital Expenditure on IT Hardware Software & Communication Equipment

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

Yes

FINANCIAL IMPLICATIONS

- Sale & Leaseback of existing Software Expenditure to CivicView
- Quarterly in Arrears Rental Charge on IT & Communication equipment rather than immediate upfront purchases
- Cashflow Implication on HCC Budgeting Process & Strategic Planning

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
The Report seeks to outline the case for utilising an Operating Lease facility in relation to IT & Communication Equipment purchases. In particular, the facility proposed by Computer Fleet Management Pty Ltd (a company strategically aligned & 50% owned by the Commonwealth Bank).

Commonwealth Bank/Computer Fleet has pre-approved Council an operating lease facility limit of $2 million.

RECOMMENDATION
THAT Council accepts the pre-approved $2 million Commonwealth Bank / Computer Fleet facility limit in relation to the leasing of IT & Communication Equipment and executes the Master Leasing Agreement & Master Asset Management Agreement with Commonwealth Bank / Computer Fleet.

THAT Council’s external Auditor (Mr Carl Millington of Millington SBS) reviews final documentation and formally certifies that the facility represents a “true Operating Lease” and hence does not fall under Department of Local Government lending limits.

THAT once the Agreements are signed and Certification received, the facility be immediately utilised by the sale & leaseback of the Software expenditure in relation to the new CivicView Financial System (Pacific Software).

FURTHER THAT a policy be developed in relation to the utilisation of the facility for future IT & Communication Equipment which must be consistent with Council Approved Budgets & Strategic Plans.

REPORT DETAIL
Background

Council has recently commenced the implementation of a new Financial System (CivicView). Under contracts executed with Pacific Software, payments totalling approximately $700,000 will be incurred by Council in relation to the installation of the new system software.

Council’s Management Information Systems & Administration departments have also identified the need to upgrade hardware (desktops, laptops & peripherals) & communication equipment (eg Council Chamber’s microphones, projectors …etc) in order to fully utilise existing & future operating environments. These bids (totalling between $200,000 to $600,000) will be submitted during the 2003-2006 Budget Planning Process.

Council is also undertaking other facility reviews (eg Library) which may have future IT & Communication Equipment requirements.

The potential drawdown on Council’s current available working capital & reserves will range from $700,000 to $2,000,000.

As Cashflow Management and Long Term Financial Viability are mandates of the Executive Team & were specifically identified priorities of Councillors, other financing options needed to be explored.


Details

What is an operating lease as oppose to finance lease, hire purchase or outright purchase?

Outright purchase and hire purchase implies some transfer of legal ownership (vendor to purchaser).

A lease (as oppose to a sale) is an agreement conveying the right from lessor to the lessee to use an asset for a stated period of time in return for consideration paid by the lessee without the transfer of legal ownership.

- If substantially all the risks and benefits incidental to ownership is effectively passed to the lessee without the transfer of legal ownership, then it’s a finance lease.
- If substantially all the risks and benefits incidental to ownership are retained by the lessor, then it is an operating lease.

Therefore, an operating lease is an arrangement whereby the lessees do not recognise an assets and liability (ie Off Balance Sheet). Rental payments under the lease are charged as expenses on the basis that reflects the pattern of consumption of the benefit by the lessee (ie a Rental Arrangement).


Why operating lease instead of outright purchase?

Outright purchase involves a greater degree of funds outlay to obtain legal ownership and use of an asset.

Today’s pace of technology improvement means that quite often “State of the Art” equipment becomes redundant in a matter of months rather than years. Operating leases decreases technology risk by avoiding ownership and allows flexibility in turnover & updating of assets.


There are also Cash Flow Benefits in adopting an Operating Lease strategy.

Example (per Computer Fleet details)

Interest Rates 5%
Desktop PC Costs $1,000
Useful Life 3 years
Rental - 3 years $ 83 per quarter / $333 per annum


COMPARISON
Year 0
Year 1
Year 2
Year 3
Purchase Option
Purchase
-1,000
0
0
0
Depreciation
333
333
333
P&L Impact
-333
-333
-333
Cash Flow Impact
-1,000
0
0
0
Net Present Value
-1,000
Lease Option
Lease Rental
-331
-331
-331
Stamp Duty
-2
-2
-2
P&L Impact
-333
-333
-333
Cash Flow Impact
-333
-333
-333
Net Present Value
-900
NPV Difference
-100
Leasing Option Benefit
10.00%

Are there any restrictions placed on Council from utilising an Operating Lease facility?

Hire Purchase, Loans & Borrowings and Finance leases will come under the umbrella of the Department of Local Government lending limits.

Accordingly, provided a facility is a true Operating Lease (ie simple rental) then it will not be deemed any form of loan / lending arrangement.

We have provided all the relevant documentation to our External Auditor (Mr Carl Millington of Millington SBS) to certify whether the facility represents a “true Operating Lease”.

As at the date of this Report, Mr Millington has verbally certified that all the draft documentation indicates that it is a true Operating Lease. However, he will again formally review & certify the final documents once provided before the facility is utilised.


Who is Computer Fleet?

Computer Fleet Management Pty Limited was introduced to Council through our existing banking institution, the Commonwealth Bank of Australia. Computer Fleet is an Australian company that commenced operations in 1990. In 1998, it became a strategic alliance partner of and 50% owned by the Commonwealth Bank. The Commonwealth Bank provides the necessary Operating Lease Facilities whilst Computer Fleet provides necessary the Fleet Management Support.

Computer Fleet is currently the largest provider of managed IT lease programs to NSW Government Departments and Authorised Agencies (through NSW Master IT Leasing Facility ITS981/2033) and is currently a recognised NSW Panel Supplier.

Some NSW Councils currently utilising the services of Computer Fleet include:
· Lake Macquarie City Council
· Mudgee Shire Council
· Wyong Shire Council

(Mr Graham Thomas, Manager Finance – Wyong City Council, was happy to provide Computer Fleet a customer reference from a local government perspective and outline Wyong Council’s progressive view towards IT and membership of the Council Online Project)

As computer equipment fleet managers, they have over 250,000 assets and A$1Billion in facilities under management.


What are the benefits of using Computer Fleet?

· Provision of independent managed lease program providing capability to reduce costs through creating standard operating environments;
· Flexible financing facility (eg 24 to 60 months terms) which can competitively fund a broad range of IT equipment to ensure transparency in pricing from the provision and supply of the hardware; and
· Improve monitoring and measurement of the IT Fleet through the provision of value-add services including:
- access to on-line database
- systems interfacing capability
- cost centre billing management
- fleet audit capability; and
- an aggregated purchasing solution.

Computer Fleet can also provide Sale & Leaseback Transaction on existing fleet, which means that Council can immediately free up some already committed capital (eg CivicView Financial Systems software costs) and the fleet program can progress by covering all equipment, not just new equipment as it is acquired.

Computer Fleet have indicated (depending on arrangements) a well-administered leasing program can reduce the total cost of ownership by up to 12%.


ANNEXURES

1. Computer Fleet Proposal to HCC (dated 13 March 2003)
2. Sample of Computer Fleet Standard Reports


APPENDIX
ComFleet Proposal.doc


Sample Reports.doc

COMMITTEE RECOMMENDATION
THAT Council accepts the pre-approved $2 million Commonwealth Bank / Computer Fleet facility limit in relation to the leasing of IT & Communication Equipment and executes the Master Leasing Agreement & Master Asset Management Agreement with Commonwealth Bank / Computer Fleet.

THAT Council’s external Auditor (Mr Carl Millington of Millington SBS) reviews final documentation and formally certifies that the facility represents a “true Operating Lease” and hence does not fall under Department of Local Government lending limits.

THAT once the Agreements are signed and Certification received, the facility be immediately utilised by the sale & leaseback of the Software expenditure in relation to the new CivicView Financial System (Pacific Software).

FURTHER THAT a policy be developed in relation to the utilisation of the facility for future IT & Communication Equipment which must be consistent with Council Approved Budgets & Strategic Plans.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT Council accepts the pre-approved $2 million Commonwealth Bank / Computer Fleet facility limit in relation to the leasing of IT & Communication Equipment and executes the Master Leasing Agreement & Master Asset Management Agreement with Commonwealth Bank / Computer Fleet.

THAT Council’s external Auditor (Mr Carl Millington of Millington SBS) reviews final documentation and formally certifies that the facility represents a “true Operating Lease” and hence does not fall under Department of Local Government lending limits.

THAT once the Agreements are signed and Certification received, the facility be immediately utilised by the sale & leaseback of the Software expenditure in relation to the new CivicView Financial System (Pacific Software).

FURTHER THAT a policy be developed in relation to the utilisation of the facility for future IT & Communication Equipment which must be consistent with Council Approved Budgets & Strategic Plans.
(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM060 - 03MATTERS SUBMITTED FOR THE INFORMATION OF MEMBERS

REPORT AUTHOR/S

Senior Manager - Administration, Mr W Park

FILE REFERENCE

C/00122

REASON FOR REPORT

For the information of Members

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

N/A

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
To review reports, publications, minutes and correspondence submitted.

RECOMMENDATION
THAT the reports, publications, minutes and correspondence be received and noted.

REPORT DETAIL
In addition to the reports and publications listed below Members attention is also drawn to the “Hurstville Council Reports” database, which has been provided separately to Councillors, which contains a numbers of “standard” information items made available for the information of Council. Members may directly access this database on their computers by clicking on the following icon. Please note that this does not, at this stage, operate over the internet.
Hurstville Council Reports 2003

APPENDIX


COMMITTEE RECOMMENDATION
THAT the reports, publications, minutes and correspondence be received and noted.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT the reports, publications, minutes and correspondence be received and noted.
(Moved Clr B Giegerl /Seconded Clr S McMahon)


Meeting Date: 16/04/2003

ADM061 - 03GREENHANDS PROJECT

REPORT AUTHOR/S

Manager - Customer Relations, Mr P Spyve

FILE REFERENCE

T/01481

REASON FOR REPORT

To update Council on progress with the Greenhands Project

DOES AN EXISTING POLICY COVER THIS MATTER?

No

IF "NO" - SHOULD A POLICY BE DEVELOPED?

No

FINANCIAL IMPLICATIONS

No - funding is provided in a budget allocation for this prooject and it also has recently received a $25,000 grant from the Environment Trust.

DOES THIS REPORT REFERENCE AN EARLIER REPORT? (If so, then indicate full report reference details)

No


EXECUTIVE SUMMARY
The Manager Customer Relations met with representatives from the Barraba and Manilla Shires and the Landcare Coordinator on Wednesday, 9th April to discuss the implementation of the Greenhands Project. The meeting examined the relationships between the participating parties, community involvement, other possible sites where plantings could take place, and the reporting procedures to the respective Councils.

RECOMMENDATION
That the information be received and noted.

REPORT DETAIL
On Wednesday, 9th April the Manager Customer Relations travelled to Manilla to hold a meeting to discuss the implementation of the Greenhands Project. The drought has greatly impacted upon the project in that planting conditions have been far from ideal. The result of the dry conditions has meant that the project is running approximately 12 months behind schedule.

Those who attended the meeting were:
Paul Spyve (Hurstville) Clr Cheryl Randall (Mayor Manilla), Hein Basson (GM Manilla), Peter Ullman (Manilla), Julie McInnes (Hurstville), Clr Shirley Close (Mayor Barraba), Stephen Wilton (GM Barraba), Rob Sweeney (Barraba), Clr Noel Cotterell (Barraba), Brenda Shepherd (Landcare Coordinator).

The meeting discussed:
· the relationships between the various parties participating in the project
· community involvement
· other sites where plantings could take place
· reporting to the participating Councils.

The three participating Councils agreed to set in place an administrative structure and protocols to oversee the implementation of the project. To achieve this, a Technical Team has been established consisting of:
Rob Sweeney (Barraba Shire Council)
Peter Ullman (Manilla Shire Council).

It was agreed that the Technical Team should be responsible for overseeing and coordinating the project and that they should report back on a regular basis to the three Councils. It was also agreed that Brenda Shepherd (Landcare Coordinator) should function in an advisory role to assist Julie McInnes in overseeing the implementation of the project. This will help Julie as the Hurstville representative on the Technical Team, as she needs someone locally to let her know how the project is proceeding and to brief her on local conditions.

The meeting recognised the need to formalise correspondence and ordering procedures for tree stock and materials. To achieve this, it has been agreed that correspondence relating to the project should be produced on Council letterheads and each Council to have in place a ‘Greenhands’ File to provide a clear record on all aspects of the project. All Councils will now forward each other copies of any correspondence relating to the project to place upon their respective files. Hurstville will also coordinate the requisition of plant stock and materials. This means that Hurstville will generate purchase orders for the above items and they will now be coordinated by Paul Spyve and Julie McInnes.

The meeting was informed that the Manilla site is now ready for planting from late April to early May. However, it was recognised that due to the elevation of the Barraba site the ideal planting time for them will not be until early next Spring (September – November). With this in mind, preparations are immediately commencing for the planting of the first group of trees at the Manilla site.

The trees for the Barraba site still need to be sourced and Julie McInnes will talk to the Botanist to try and arrange for these to be ready by next Spring.

In respect of community involvement, it was agreed that local schools be invited to participate in the project. Possibilities could be to include the project as part of Youth Week or to get schools to adopt certain areas of the project. It was felt that this aspect of community involvement should be looked at for next year’s plantings. Because the Manilla plantings are ready to be undertaken shortly, it was agreed that local service clubs should be invited to assist with the first planting. All three Councils will approach service clubs in their respective areas to seek their participation.

The extra funding provided by the Environmental Trust grant, means that Greenhands may end up with a situation where there will be more trees than land available at the two sites. With this in mind, the two Councils identified possible sites where these extra trees could be planted.

Manilla noted that they would seek to have further areas around Split Rock Dam planted where they have identified soil conservation problems. The area they are proposing is located just to the south of the Boat Ramp site.

Barraba suggested four possible options within their shire consisting of:
· around the Barraba Tip
· at the showgrounds
· along the river bank
· at two parks in the town

It was stressed to Barraba that whatever alternative site they choose, it must clearly identify the environmental benefit which will be provided by the trees as the Environmental Trust Grant specifies funding cannot be used for beautification purposes.

Finally, the meeting agreed that regular reports (quarterly) will be sent to the participating Councils by the Technical Team to update them on progress with the project. Each Council will circulate copies of their reports (with resulting minutes) for inclusion on each other’s file.


APPENDIX


COMMITTEE RECOMMENDATION
THAT the information be received and noted.

FURTHER, THAT Mr P Spyve and Ms J McInnes be congratulated on the work undertaken for the extra funding on the Greenhands Project.
(Moved Clr C Wong /Seconded Clr C Lee)
COUNCIL RESOLUTION
RESOLVED THAT the information be received and noted.

FURTHER, THAT Mr P Spyve and Ms J McInnes be congratulated on the work undertaken for the extra funding on the Greenhands Project.
(
(Moved Clr B Giegerl /Seconded Clr S McMahon)