Coffs Harbour City Council

05 February 2020

 

Ordinary Council Meeting

 

The above meeting will be held in the Council Administration Building

Cnr Coff and Castle Streets, Coffs Harbour on:

 

Thursday, 13 February 2020

 

The meeting commences at 5.00pm and your attendance is requested.

 

 

AGENDA

 

1.         Opening of Ordinary Meeting

2.         Acknowledgment of Country

3.         Public Forum

4.         Disclosure of Interest

5.         Apologies

6.         Leaves of Absence

7.         Mayoral Minute

8.         Confirmation of Minutes

9.         Rescission Motion

10.      Notices of Motion – General

11.      General Manager’s Reports

12.      Notices of Motion – Business Services

13.      Directorate Reports – Business Services

14.      Notices of Motion – Sustainable Communities

15.      Directorate Reports – Sustainable Communities

16.      Notices of Motion – Sustainable Infrastructure

17.      Directorate Reports – Sustainable Infrastructure

18.      Questions On Notice

19.      Matters of an Urgent Nature

20.      Consideration of Confidential Items (if any)

21.      Close of Ordinary Meeting

 

 

Steve McGrath

General Manager

 

 


Order of Business

 

  

General Manager's Reports

GM20/01         Federal Government Financial Support for Bushfire Affected Communities............................................................................................................ 3

GM20/02         Contract No. SGC-1192-TI - Cultural and Civic Space Project - Project Management........................................................................................ 18

GM20/03         Contract No. SGC-1191-TI - Cultural and Civic Space Project - Head Design Consultant............................................................................................ 23

GM20/04         Contract No. SGC-1193-TI - Cultural and Civic Space Project - Cost Manager.................................................................................................................. 27

Directorate Reports - Business Services

BS20/02          Bank and Investment Balances for November 2019............................ 31

BS20/03          Bank and Investment Balances for December 2019............................ 53

BS20/04          Monthly Financial Performance Report for the Month Ended 30 November 2019...................................................................................................... 75

BS20/05          Business Incentive Policy - Amendment.................................................... 91

BS20/06          Contract No. RPT-1112-TO - Supply and Delivery of Concrete and FRC Pipes and Associated Products (Regional Procurement Tender No. REGPRO621920)..................................................................................................... 101

BS20/07          Contract No. RFT-1138-TO - Provision of Plumbing Maintenance and Repair Services to Council Facilities (Panel Contract)................ 104

BS20/08          Contract No. RPT-1144-TO - Supply, Delivery and Placement of Road Resurfacing (Regional Procurement Tender No. T611920MNC).... 107

BS20/09          CitySmart Solutions Commercial Bids................................................... 110

BS20/10          Release of Restriction on Use Affecting 64A King Street, Coffs Harbour................................................................................................................ 113

Directorate Reports - Sustainable Communities

SC20/01          Development Application No. 0199/20 - Demolition (of Existing Buildings) - 23 Gordon Street (Lot 20, Section 6, DP 758258), 25 Gordon Street (Lot B, DP 346105) and 27-31 Gordon Street (Lot 123, DP 749233), Coffs Harbour.................................................................................................. 120

SC20/02          Waive Fees (Various) for Bushfire Affected Property Owners Seeking to Repair or Rebuild Damaged and Destroyed Dwellings and Associated Structures........................................................................ 152

Directorate Reports - Sustainable Infrastructure

SI20/03           Coastal Works Commercial Bids............................................................... 156   


GM20/01      Federal Government Financial Support for Bushfire Affected Communities

Author:                        General Manager

Authoriser:                  General Manager

MyCoffs:                      D.2 We have effective use of public resources.

Attachments:              ATT1  GM20/01  Prime Ministers Announcement

ATT2  GM20/01  Ministerial Letter from Scott Morrison - Financial Commitment for National Bushfire Recovery

ATT3  GM20/01  Orara Valley Bushfire Recovery Meeting  

 

Executive Summary

Following the devastating bushfires across the eastern states of Australia in the latter part of 2019 and early 2020, the Commonwealth Government announced an immediate payment of $1 million to bushfire impacted councils and Coffs Harbour City Council is in receipt of a $1 million payment.

 

The funds are to be deployed to the benefit of bushfire affected communities following the adoption of a Program of Works within three months.  An acquittal report to the Commonwealth is required 12 months after the allocation of the funding.

 

This report provides information regarding initial community consultation/engagement and suggests an interim Program of Works.  The remaining projects/activities proposed will be reported to Council following the further community engagement proposed.  This approach will allow several readily identifiable projects to get underway and in part at least enable the expeditious deployment of the funding.

 

Recommendation:

That Council:

1.   Adopt an interim Program of Works totalling $338,000 consisting of the following projects/activities:

1.1.    Nana Glen Community Hall, solar panels and air-conditioning, $70,000;

1.2.    Community Led Recovery Event, $50,000; and

1.3.    Business and Tourism support, strategies to move visitors to affected areas, $68,000.

1.4.    Appointment of a 12 month Community Recovery Officer resource, $150,000;

2.   Continue to engage with the Orara Valley community and more broadly with a view to identifying the most appropriate application of the remaining $662,000 of the $1 million funds available from the Federal Government financial support;

3.   Receive a further report at the earliest opportunity following the engagement mentioned in 2. above, with a view to allocating the remaining $  in a final Program of Works.

 

Report

Description of Item:

By way of a joint media release on 9 January 2020 (copy attached), the Prime Minister, Deputy Prime Minister, Minister for Infrastructure, Transport and Regional Development and Minister for Water Resources, Drought, Rural Finance, Natural Disaster and Emergency Management announced the provision of an initial and immediate base payment of $1 million to 42 of the most severely bushfire impacted councils in NSW, Victoria, South Australia and Queensland to help quickly rebuild vital infrastructure and strengthen community resilience.  Coffs Harbour City Council was one of the 42 recipients.

 

The media release states that the only condition placed on councils is that they develop a Program of Works within three months and report back to the Commonwealth in 12 months’ time.  The release further advised that Councils will be able to spend their $1 million payments on projects and activities that they deem essential for the recovery and renewal of their communities, including:

 

·    Rebuilding damaged or destroyed council assets such as key local roads, bridges, and community facilities;

·    Employing additional local staff to take on specialist recovery or planning roles to help coordinate and plan the rebuilding effort;

·    Hosting new public activities and events to bring communities together and attract visitors back to affected regions; and

·    Immediate maintenance and repairs to relief and evacuation centres.

 

Correspondence dated 14 January 2020 was received by Council from the Prime Minister on
28 January 2020 confirming the grant, (copy attached).

 

Whilst there is no doubt that the November 2019 bushfire event impacted the Coffs Harbour local government area, predominantly in the Orara Valley locality, in terms of public assets, Council was relatively fortunate.

 

The majority of the impact from the November 2019 bushfire event saw the loss of a number of dwellings, outbuildings and other private infrastructure and material.  Whilst somewhat difficult to quantify, there was an impact on local businesses as a result of loss of trade to businesses within the Orara Valley area as well as broader impacts upon visitation in the lead up to the Coffs Coast Region peak tourist trade period.  A variety of financial assistance packages have been developed by the Commonwealth and NSW State Governments designed to provide assistance to individuals, property owners, primary producers and businesses.  In fact, it is fair to suggest that these financial assistance packages are continuing to evolve.

 

With the above in mind, Council officers have over the weeks following the announcement of the
$1 million funding set about considering how the funding could be most appropriately deployed to enable longer term community benefit.  These internal considerations have also been informed following the community recovery meeting held at the Nana Glen Community Hall on 28 January 2020.  Within the Issues section of this report, several principles are explored and a number of proposed projects and activities are put forward with a view to establishing an approach suggesting an interim Program of Works and further community engagement to ensure the most appropriate deployment of the remaining funds.

Issues:

There is a fine line between deploying the $1 million funding as quickly as possible and also ensuring that the funds are deployed in the most beneficial manner for the affected community.

 

Also, given the funding was announced on 9 January 2020, it is fair to suggest that some further refinement of any suggested projects and activities will be required as further investigations occur.  For that reason, the outline provided within the proposed interim Program of Works and the projects/activities nominated for further consultation/engagement should be considered and adopted by Council in the context of being the framework for deployment, acknowledging that some of the detail will require further research/action by Council officers, in conjunction with the community.

 

Councillors are referred to Attachment 3 to this report which sets out the outcomes from the community meeting held at the Nana Glen Community Hall.  As set out in Attachment 3, the recovery issues/ideas nominated at the community meeting perhaps fall in to the following broad categories:

 

·    Matters that may require a longer term fix via advocacy/lobbying to other agencies and/or State/Commonwealth Government.

·    Matters that may be part of Council’s normal business as usual but may require some prioritisation.

·    Matters that Council may consider as potential candidate projects/activities for funding from the $1 million Federal funding for Bushfire Affected communities.

·    Matters that may result in being candidate projects potentially for access to other State/Commonwealth funding programs.

 

The projects and/or activities proposed for consideration in an interim Program of Works are:

 

i.    Solar panels and air conditioning, Nana Glen Community Hall                     $70,000

Whilst conducting the community meeting at the Hall on 28 January 2020, the conditions inside the Hall were oppressive and many, if not all, of the attendees indicated that improving the amenity of the Hall for community gatherings would prove invaluable for the community, not only in times of emergency but throughout the year as the Hall is utilised by a variety of community groups from throughout the Orara Valley. This project would also go some way toward achieving point 5 in the candidate projects for the $1m funding.

 

ii.    Community Led Recovery Event                                                                   $50,000

A single whole-of-community event with a program of activities and entertainment to bring the community together, strengthen community connections and acknowledge what has happened, the progress to date and also acknowledge the work of key organisations, groups and individuals.  This event reflects points 1 and 2 in the candidate projects for the $1m funding.

 

The exact nature of the event and venue is yet to be confirmed, however it would be expected to be delivered within the next 3-5 months in the Orara Valley area.  Council support may include the delivery of specific program elements, such as children’s story-time and craft activities, visual arts workshops and/or mobile cinema, as well as advice and support around event planning and provision of temporary infrastructure and equipment.

 

Further engagement with the community is required to define the scope of this event which could also incorporate pre-event engagement activities focussed around community healing themes that could then culminate/be presented at the event, should there be adequate lead-time and resources provided (currently included in the cost estimate).  The cost estimate also includes a temporary event organiser as it is not currently confirmed whether there is a community member with the required expertise and availability within the Orara Valley community.

 

The approach would be as a community development opportunity, engaging community members in the scoping, planning and delivery as much as possible to maximise their involvement and ownership, proposed to be achieved through a community based working group.  It is anticipated that outcomes achieved would include a more resilient, empowered and united community.

 

iii.   Business and Tourism Support, strategies to move visitors to affected areas       $68,000

This strategy supports points 3 and 6 in the candidate projects for the $1m funding.  The initial activities/events include:

 

·    Creation of new monthly events and support of existing events in hinterland areas including promotion activity, support for organisers, development of unique offering, development of small businesses ($3k per month for 3 months)

·    Promote unique local food flavours with ‘long lunch’ in the hinterland. ($35k for event delivery, local food producer’s support and additional imagery/videography and content for local food businesses continued promotion)

·    Tourist trail map – development of a map (digital and print) showcasing events and businesses in the Orara Valley to be given out at tourist accommodation and through local paper.  ($15k for production, distribution and advertising & $3k per month for 3 months for TV campaign)

 

iv.  Appointment of a 12 month Community Recovery Officer resource             $150,000 (inc. on-costs)

This action supports point 7 in the candidate projects identified in Attachment 3 and enables a dedicated resource to work with the affected community and liaise with Council, the various State Agencies and other support groups to enable the community to recover in a timely manner.  It is further anticipated that costs will be incurred in establishing a location “presence” in Nana Glen, through the acquisition/hire of a fitted out office/meeting room (perhaps with the use of a repurposed container).

 

Should Council support an interim Program of Works containing points i. to iv. above, this would consume $338,000 of the $1 million funding available, effectively preserving $662,000 for other projects/activities that could evolve from further community engagement and research into needs of the affected community.  This of course would need to be allocated in a final Program of Works within three months of 9 January 2020.

 

Without going into immense detail, the nature of the other projects/activities that may be considered following further community engagement and research include:

 

·    An emergency operations repository (re-purposed shipping container), point 4 in the candidate projects;

·    Further research into the community hub safe place, point 5 in the candidate projects;

·    Improvements to community facilities/infrastructure;

·    Longer term activities and events designed to drive visitation to the Coffs Harbour area and further support point iv. above.  The principle here is that whilst the Orara Valley, in particular Nana Glen, felt the largest direct impact to the built environment within the local government area from the November bushfires, other parts of the business community throughout the wider local government area also suffered as a result.  Impacts arose due to WRC cancellation; road closures; air and water quality; safety concerns of travelling; warning notices; and staff interruptions;

·    Collaborative opportunities with neighbouring LGA’s;

·    Potential employment of a local funding/grant writer to assist local business and community to access other government funding packages;

·    Targeted community wellbeing programs; and

·    Potential to effectively preserve some funds that may be available for access by community groups by a submission/EoI process.  Submissions/EoI’s would of course need to demonstrate recovery outcomes for the community.

 

To enable the further community engagement a “Have Your Say” page has been developed specific to the bushfire recovery, within Council’s wider Have Your Say platform.  Indeed, this was a suggestion made by community representatives at the Nana Glen Community Hall meeting on
28 January 2020.

 

Once the further community engagement and research has been carried out, a further report will be presented to Council enabling the adoption of a final Program of Works.

Options:

1.    Adopt the proposed interim Program of Works, thus enabling the deployment of part of the
$1 million funding in a timely manner;

2.    Amend the proposed interim Program of Works and then adopt, thus enabling the deployment of part of the $1 million funding in a timely manner;

3.    Reject the proposed interim Program of Works and seek further information to enable consideration of all projects and/or activities proposed.

Sustainability Assessment:

•     Environment

It is not envisaged that there are any immediate environmental issues associated with Council’s consideration of this report.  In pursuing the deployment of any projects/activities contained within the interim Program of Works, relevant environmental considerations will be taken into account.

•     Social

Community wellbeing and resilience are just a couple of the aspects that this report and the proposed interim Program of Works are looking to affect in a positive manner.  Whilst there have been detrimental impacts on our community as a result of the bushfires, the aim of the deployment of the $1 million funding, and other funding that may become available, is to provide opportunities for communities to rebuild and lift community wellbeing and resilience.

•     Civic Leadership

It is Council’s responsibility to adopt a Program of Works that will enable the timely deployment of the $1 million funding designed to assist in recovery following the effect of bushfires on the community.  Whilst several projects have been identified and would benefit from early planning with the community, equally it would seem appropriate for Council to seek further input from the community with regard to the deployment of the remaining funding in the most appropriate manner to benefit the community.

•     Economic – Broader Economic Implications

It is envisaged that the deployment of the projects identified within the proposed interim Program of Works will act as an economic and resilience lift to the Coffs Harbour local government area, in particular the Nana Glen community, both in the short and long term.

•     Economic - Delivery Program/Operational Plan Implications

Whilst the $1 million funding was not envisaged at the time of adopting Council’s current Delivery program and Operational Plan, nor were the damaging bushfires envisaged. Every endeavour shall be made to ensure that the interim Program of Works and ultimately the final Program of Works is delivered in a timely manner. It should be noted that the current redirection of resources into recovery activities and further efforts required in this space will impact the adopted Delivery Program and Operational Plan.

Risk Analysis:

It is not anticipated that significant risk is associated with the nominated projects within the proposed interim Program of Works, given what seemed to be a strong indication of support for these style of initiatives at the Nana Glen Community Hall meeting.  It should be noted however that in delivering each of the nominated projects, Council’s adopted Risk Management framework shall be applied to ensure any risk is adequately mitigated.

 

From a reputational risk perspective, the benefit of adopting an interim Program of Works is the timely deployment of partial funding to benefit the immediately affect community.

Consultation:

Consultation has occurred internally within the Organisation and was also the subject of discussion at the community meeting held at the Nana Glen Community Hall on 28 January 2020 through an initial recovery workshop facilitated by representatives from the NSW Office of Emergency Management (OEM).

 

Whilst the initial meeting/workshop provided an indication of several projects that would be very suitable to be funded by the $1 million federal funding, it was considered that further consultation/engagement with the community through the creation of a “Have Your Say” page on Council’s website, supported by other communication would assist greatly in informing Council as to the most appropriate other projects/activities. Indeed, the question of using the “Have Your Say” platform was raised by community representatives at the Nana Glen Community Hall.

Related Policy, Precedents and / or Statutory Requirements:

Not applicable to this report.

Implementation Date / Priority:

It is understood that the Federal Government has a desire that the $1 million funding is applied within Bushfire affected communities as expeditiously as possible.  Subject to Council endorsing the proposed interim Program of Works, the aim will be to expedite delivery of those interim projects/activities in a timely manner.

Conclusion:

Whilst the $1 million funding was only announced on 9 January 2020 (with the funds deposited into Council’s account within days), there is no doubt that there is an expectation that the funds will be deployed within bushfire affected communities as quickly as possible.  This of course needs to be balanced with applying the funds to projects that will have the best possible long term community benefit.  It is suggested that the two staged approach with an interim Program of Works as identified in this report, coupled with further community engagement to confirm the most appropriate spend of the remaining funds has the potential to achieve this outcome for the community.

 

 


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GM20/02      Contract No. SGC-1192-TI - Cultural and Civic Space Project - Project Management

Author:                        Strategic Projects Officer

Authoriser:                  General Manager

MyCoffs:                      B.2 A community achieving its potential

Attachments:              ATT1  GM20/02  CONFIDENTIAL Contract No. SGC-1192-TI - Tender Assessment

Confidential in accordance with Section 10A(2)(d)(i),(d)(ii) of the Local Government Act as it contains commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it, and information that would, if disclosed, confer a commercial advantage on a competitor of the council.

ATT2  GM20/02  CONFIDENTIAL Contract No. SGC-1192-TI - Probity Report   

 

Executive Summary

Council utilised the NSW Government’s Procurepoint scheme for Consultants in Construction (Scheme 1191) to Request a Tender for SGC-1192-TI Project Management Services for the design finalisation, procurement and construction of the Cultural and Civic Space Project.  Assessment criteria and tender acceptance recommendation details are contained in the Confidential Attachment (ATT1) to this report.  The associated report of the project’s independent Probity Advisor is also a Confidential Attachment (ATT2) to this report.

 

 

Recommendation:

That Council considers the tenders received for Contract SGC-1192-TI Project Management Services for the design finalisation, procurement and construction of the Cultural and Civic Space Project, and adopts the recommendation in the Confidential Attachment.

 

Report

Description of Item:

The works associated with this contract are part of Council’s Cultural & Civic Space Project.

 

The project management services include, but are not limited to, management of:

 

-     Completion of the project’s design

-     Construction of the Cultural and Civic Space

-     Options to address pre-construction work including demolition of existing buildings on the subject site and procurement of a building contractor if the Early Contractor Involvement is unsuccessful

 

Invitations for Tender were called for a Lump Sum contract via Procurepoint Scheme 1191. Tenders closed at 10am on Wednesday 18 December 2019 with a 90-day valid period ending 17 March 2020.

 

Submissions were received from four organisations, which were:

 

1.    APP Corporation Pty Ltd

2.    Coffey Services Australia Pty Ltd

3.    MBB Group Pty Ltd

4.    Turner & Townsend Thinc Pty Ltd

 

The tenders have been evaluated on the following criteria:

 

-     Tender price

-     Relevant Company experience, capability and references

-     Team experience, capability, capacity, organisation structure and roles

-     Project management approach, methodology and quality

-     Project appreciation and value add

 

In accordance with the adopted Delivery Program this project is to be completed and capitalised before the end of the 2023/2024 financial year.

 

All companies provided compliant tender submissions.

Issues:

1.    That the Cultural and Civic Space Project can’t be successfully progressed and completed without the services of a professional construction project management provider.

2.    That this is one of five major contracts required to progress and complete the project.  The contract for construction is anticipated to be considered by Council later in 2020, however this contract and the other three are anticipated for consideration early in 2020.  The other three contracts are:

 

a.    Cost Management services

b.    Head Design Consultant services (i.e. architect and design team sub-contractors)

c.    Early Contractor Involvement (i.e. a builder to participate in Design Development from 30% to 80% documentation and, potentially, to undertake construction)

Options:

1.    Adopt the recommendation. This would allow the project to progress in accordance with Council’s resolutions.

2.    Reject the recommendation and re-direct the Cultural and Civic Space Project.

Sustainability Assessment:

•     Environment

The building design is developing to respond to the unique environmental conditions of the Coffs Harbour region by implementing low embodied energy construction systems and materials.  It aims to minimise energy use and harness the climate to improve the quality of spaces through passive and active solar and system design.  Sustainability of the people is equally important - the physical space shall support the health and well-being of the occupants, encourage them to thrive, and be a catalyst for them reaching purpose and potential.  The building will target a wide range of sustainability initiatives to align with Council’s Sustainability Policy.  The Building Services & Sustainability section above provides a detailed analysis.

•     Social

A range of community and cultural benefits will flow from the development including a vibrant cultural hub, improved literacy, educational and lifelong learning, improved social and wellbeing outcomes, increased exhibition spaces and programs, increased visitor numbers and a variety of cultural facilities and spaces that don’t exist today.

 

The CCS Project Concept Business Case projected that the annual visitation to these facilities by Year 5 post-construction to be around 412,000.

•     Civic Leadership

Civic leadership is shown through the ongoing implementation of MyCoffs Community Strategic Plan.  Council sees an opportunity to match the needs of our growing population, civic leadership and to add value to the city as an urban renewal opportunity and a cultural, community, business and visitor destination.

•     Economic – Broader Economic Implications

An independent economic assessment identified a host of benefits to the CBD including a variety of financial benefits over a 30-year period totalling $57m, 31 on-going jobs and an extra $2m per annum Gross Regional Product.

•     Economic - Delivery Program/Operational Plan Implications

All Tender prices received are within Council’s allocated budget for this Project.

Risk Analysis:

There are some key risks specifically related to this procurement of the Project Management Consultant.

 

·    The key project manager in the appointed firm may leave that firm and create continuity problems for the project.  This is mitigated through tender document specification of a central document repository and associated document management to ensure the capture of project information.

·    The newly appointed Project Management Consultant may not sufficiently grasp aspects of the project such as its history, established direction, management style to-date and the needs of stakeholders.  This will be mitigated through on-boarding activities and the establishment of a deep working relationship with Council’s project office.

 

A project risk register has been developed and reported to Council previously.  Risks continue to be monitored and mitigated.

 

To further enable mitigation of the risks and to ensure good governance for the Project, a Project Board was established.  This Board is chaired by the General Manager and has met formally on a regular basis over the last 18 months to consider Project Status Reports and review the status of the risk register.  The Project Board also undertook the role of value managing the project aspects to ensure the outcomes delivered on the Project Brief and remained within the allocated budget.

Consultation:

Extensive community and staff engagement was conducted from September 2018 to June 2019.  Additionally, targeted stakeholder consultation was undertaken to further inform the design of the building.  Throughout the process the Library and Gallery Planning Advisory Group (LGPAG) have remained closely engaged as the formal community advisory group.

 

There were many avenues for the community to be informed of the design (print and radio media, newsletters, information stands, meetings and forums, rate notice information and much more) and provide comment.  Ten targeted groups were identified for more detailed consultation and engagement including Migrants, people experiencing homelessness, Youth and Indigenous.  Many of these groups were engaged on multiple occasions throughout the Schematic Design phase.

 

At the public release of the Schematic Design, feedback was open from 10 – 31 May 2019.  Extensive promotion was conducted that enabled written feedback to be provided through a range of platforms.  78 written feedback submissions were received.  Overall written feedback was 51% positive and supportive of the project, 23% neutral, suggestions or unrelated and 26% opposed to the project in part or its entirety.  After extensive communication and engagement, a limited amount of written feedback was received.  It should be noted that a percentage of the negative feedback was in respect to there being no performance space in the Cultural and Civic space project.  As council is aware, the performance space was intentionally separated from this project at the outset and is the subject of a separate body of work.

 

Since completion of Schematic Design the State Significant Development application has been submitted and submissions are currently being assessed and responded to by the CCS Project Office and the Project’s Planning Consultant.  A Development Application for demolition of existing buildings on the project site has also been submitted and is in process.

Related Policy, Precedents and / or Statutory Requirements:

The calling, receiving and reviewing of tenders was carried out in accordance with Part 7 Tendering of the NSW Local Government (General) Regulations 2005.  Tendering procedures were carried out in accordance with Council's policy.

 

Enabling of strategic outcomes:

 

·    MyCoffs Community Strategic Plan

·    The City Centre Master Plan 2031 and its desired outcomes are enabled in part by this project through activation of the Gordon St site and freeing up of the 2 Castle St site for future activation.

·    The Creative Coffs – Cultural Strategic Plan 2017 – 2022

·    The Coffs Harbour City Library Strategic Plan 2012 – 2016

·    Economic Development Strategy 2017-2022

·    Coffs Coast Tourism Strategic Plan 2020

·    Coffs Harbour Events Strategy 2020

·    Disposal of Assets Policy

Implementation Date / Priority:

 

Key Project Milestones

Start date

End date

1

Development application processing and approval

Jul 2019

May 2020

2

Detailed Design (to 80% design documentation)

Feb 2020

Oct 2020

3

Demolition

Feb 2020

Apr 2020

4

Award Design & Construction Contract (remaining 20% design documentation and construction)

Oct 2020

Dec 2020

5

Construction

Feb 2021

Feb 2023

6

Construction contingency

Mar 2023

May 2023

Conclusion:

This report provides Council with the opportunity to approve the project management contract for detailed design and construction of the Cultural and Civic Space Project.

 

 

 


GM20/03      Contract No. SGC-1191-TI - Cultural and Civic Space Project - Head Design Consultant

Author:                        Strategic Projects Officer

Authoriser:                  General Manager

MyCoffs:                      B.2 A community achieving its potential

Attachments:              ATT1  GM20/03  CONFIDENTIAL Contract No. SGC-1191-TI - Tender Assessment

Confidential in accordance with Section 10A(2)(d)(i),(d)(ii) of the Local Government Act as it contains commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it, and information that would, if disclosed, confer a commercial advantage on a competitor of the council.

ATT2  GM20/03  CONFIDENTIAL Contract No. SGC-1191-TI - Probity Report   

 

Executive Summary

Council utilised the NSW Government’s Procurepoint scheme for Consultants in Construction (Scheme 1191) to Request a Tender for SGC-1191-TI Head Design Consultant Services for the Cultural and Civic Space Project.  Assessment criteria and tender acceptance recommendation details are contained in the Confidential Attachment (ATT1) to this report.  The associated report of the project’s independent Probity Advisor is also a Confidential Attachment (ATT2) to this report.

 

Recommendation:

That Council considers the tenders received for Contract SGC-1191-TI Head Design Consultant Services for the Cultural and Civic Space Project, and adopts the recommendation in the Confidential Attachment.

 

Report

Description of Item:

The works associated with this contract are part of Council’s Cultural and Civic Space Project.

 

The head design consultant services include, but are not limited to, performing the role of architect as well as sub-contracting the services of the majority of the design team and managing the sub-consultants.

 

Invitations for Tender were called for a Lump Sum contract via Procurepoint Scheme 1191.  Tenders closed at 10am on Wednesday 15 January 2020 with a 90-day validity period ending 14 April 2020.

 

Submissions were received from two organisations, which were:

 

1.   BVN Architecture Pty Ltd

2.   KANN FINCH Group Pty Ltd

 

The tenders have been evaluated on the following criteria:

 

-     Tender price

-     Company capability and experience

-     Consultant capability and experience

-     Methodology

-     Value add

-     Project appreciation

In accordance with the adopted Delivery Program this project is to be completed and capitalised before the end of the 2023/2024 financial year.

 

Both companies provided compliant tender submissions.

Issues:

1.    That the Cultural and Civic Space Project can’t be successfully progressed and completed without the services of a professional architect and design team.

 

2.    That this is one of five major contracts required to progress and complete the project.  The contract for construction is anticipated to be considered by Council later in 2020, however this contract and the other three are anticipated for consideration early in 2020.  The other three contracts are:

 

a.    Project Management services

b.    Cost Management services

c.    Early Contractor Involvement (i.e. a builder to participate in Design Development from 30% to 80% documentation and, potentially, to undertake construction)

Options:

1.    Adopt the recommendation.  This would allow the project to progress in accordance with Council’s resolutions.

2.    Reject the recommendation and re-direct the Cultural and Civic Space Project.

Sustainability Assessment:

•     Environment

The building design is developing to respond to the unique environmental conditions of the Coffs Harbour region by implementing low embodied energy construction systems and materials.  It aims to minimise energy use and harness the climate to improve the quality of spaces through passive and active solar and system design.  Sustainability of the people is equally important - the physical space shall support the health and well-being of the occupants, encourage them to thrive, and be a catalyst for them reaching purpose and potential.  The building will target a wide range of sustainability initiatives to align with Council’s Sustainability Policy.

•     Social

A range of community and cultural benefits will flow from the development including a vibrant cultural hub, improved literacy, educational and lifelong learning, improved social and wellbeing outcomes, increased exhibition spaces and programs, increased visitor numbers and a variety of cultural facilities and spaces that don’t exist today.

 

The CCS Project Concept Business Case projected that the annual visitation to these facilities by Year 5 post-construction to be around 412,000.

•     Civic Leadership

Civic leadership is shown through the ongoing implementation of MyCoffs Community Strategic Plan.  Council sees an opportunity to match the needs of our growing population, civic leadership and to add value to the city as an urban renewal opportunity and a cultural, community, business and visitor destination.

•     Economic – Broader Economic Implications

An independent economic assessment identified a host of benefits to the CBD including a variety of financial benefits over a 30-year period totalling $57m, 31 on-going jobs and an extra $2m per annum Gross Regional Product.

•     Economic - Delivery Program/Operational Plan Implications

All Tender prices received are within Council’s allocated budget for this Project.

Risk Analysis:

There are two key risks specifically related to this procurement of the Head Design Consultant (i.e. Architect plus design team sub-consultants).

 

·    There could be communication and design challenges given the distance between the offices of the design team members and the project site.  These have been mitigated through specification of site visits by the design team in the RFT documents and planned attendance to Sydney-based design team meetings by Council’s project office.

·    A newly appointed Architect and design team may not sufficiently grasp Council’s design intent and/or may attempt to change the architectural direction of the project.  This has been mitigated to-date through the issue of comprehensive tender documentation including clear direction to maintain the intent developed to-date.  This will be further mitigated upon appointment of the Head Design Consultant as required.

 

A project risk register has been developed and reported to Council previously.  Risks continue to be monitored and mitigated.

 

To further enable mitigation of the risks and to ensure good governance for the Project, a Project Board was established.  This Board is chaired by the General Manager and has met formally on a regular basis over the last 18 months to consider Project Status Reports and review the status of the risk register.  The Project Board also undertook the role of value managing the project aspects to ensure the outcomes delivered on the Project Brief and remained within the allocated budget.

Consultation:

Extensive community and staff engagement was conducted from September 2018 to June 2019.  Additionally, targeted stakeholder consultation was undertaken to further inform the design of the building.  Throughout the process the Library and Gallery Planning Advisory Group (LGPAG) have remained closely engaged as the formal community advisory group.

 

There were many avenues for the community to be informed of the design (print and radio media, newsletters, information stands, meetings and forums, rate notice information and much more) and provide comment.  Ten targeted groups were identified for more detailed consultation and engagement including Migrants, people experiencing homelessness, Youth and Indigenous.  Many of these groups were engaged on multiple occasions throughout the Schematic Design phase.

 

At the public release of the Schematic Design, feedback was open from 10 – 31 May 2019.  Extensive promotion was conducted that enabled written feedback to be provided through a range of platforms.  78 written feedback submissions were received.  Overall written feedback was 51% positive and supportive of the project, 23% neutral, suggestions or unrelated and 26% opposed to the project in part or its entirety.  After extensive communication and engagement, a limited amount of written feedback was received.  Itw should be noted that a percentage of the negative feedback was in respect to there being no performance space in the Cultural and Civic space project.  As council is aware, the performance space was intentionally separated from this project at the outset and is the subject of a separate body of work.

 

Since completion of Schematic Design the State Significant Development application has been submitted and submissions are currently being assessed and responded to by the CCS Project Office and the Project’s Planning Consultant.  A Development Application for demolition of existing buildings on the project site has also been submitted and is in process.

Related Policy, Precedents and / or Statutory Requirements:

The calling, receiving and reviewing of tenders was carried out in accordance with Part 7 Tendering of the NSW Local Government (General) Regulations 2005.  Tendering procedures were carried out in accordance with Council's policy.

 

Enabling of strategic outcomes:

 

·    MyCoffs Community Strategic Plan

·    The City Centre Master Plan 2031 and its desired outcomes are enabled in part by this project through activation of the Gordon St site and freeing up of the 2 Castle St site for future activation.

·    The Creative Coffs – Cultural Strategic Plan 2017 – 2022

·    The Coffs Harbour City Library Strategic Plan 2012 – 2016

·    Economic Development Strategy 2017-2022

·    Coffs Coast Tourism Strategic Plan 2020

·    Coffs Harbour Events Strategy 2020

·    Disposal of Assets Policy

Implementation Date / Priority:

 

Key Project Milestones

Start date

End date

1

Development application processing and approval

Jul 2019

May 2020

2

Detailed Design (to 80% design documentation)

Feb 2020

Oct 2020

3

Demolition

Feb 2020

Apr 2020

4

Award Design and Construction Contract (remaining 20% design documentation and construction)

Oct 2020

Dec 2020

5

Construction

Feb 2021

Feb 2023

6

Construction contingency

Mar 2023

May 2023

 

Conclusion:

This report provides Council with the opportunity to approve the Head Design Consultant contract for detailed design and construction of the Cultural and Civic Space Project.

 


GM20/04      Contract No. SGC-1193-TI - Cultural and Civic Space Project - Cost Manager

Author:                        Strategic Projects Officer

Authoriser:                  General Manager

MyCoffs:                      B.2 A community achieving its potential

Attachments:              ATT1  GM20/04  CONFIDENTIAL Contract No. SGC-1193-TI - Tender Assessment

Confidential in accordance with Section 10A(2)(d)(i),(d)(ii) of the Local Government Act as it contains commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it, and information that would, if disclosed, confer a commercial advantage on a competitor of the council.

ATT2  GM20/04  CONFIDENTIAL Contract No. SGC-1193-TI - Probity Report   

 

Executive Summary

Council utilised the NSW Government’s Procurepoint scheme for Consultants in Construction (Scheme 1191) to Request a Tender for SGC-1193-TI Cost Management Consultant Services for the Cultural and Civic Space Project.  Assessment criteria and tender acceptance recommendation details are contained in the Confidential Attachment (ATT1) to this report.  The associated report of the project’s independent Probity Advisor is also a Confidential Attachment (ATT2) to this report.

 

Recommendation:

That Council considers the tenders received for Contract SGC-1193-TI Cost Management Consultant Services for the Cultural and Civic Space Project, and adopts the recommendation in the Confidential Attachment.

 

Report

Description of Item:

The works associated with this contract are part of Council’s Cultural & Civic Space Project.

 

The cost management services include, but are not limited to, advise on the cost management aspects of the Project; and cost plans and advice provided by the cost manager will be relied upon by council and the project team.

 

Invitations for Tender were called for a Lump Sum contract via Procurepoint Scheme 1191. Tenders closed at 10am on Wednesday 18 December 2019 with a 90-day valid period ending 17 March 2020.

 

Submissions were received from two organisations, which were:

 

1.   Altus Group Cost Management Pty Ltd

2.   Slattery Australia Pty Ltd

 

The tenders have been evaluated on the following criteria:

 

-      Tender price

-      Relevant Company experience, capability and references

-      Team experience, capability, capacity, organisation structure and roles

-      Project management approach, methodology and quality

-      Project appreciation and value add

 

In accordance with the adopted Delivery Program this project is to be completed and capitalised before the end of the 2023/2024 financial year.

 

All companies provided compliant tender submissions.

Issues:

1.   That the Cultural and Civic Space Project can’t be successfully progressed and completed without the services of a professional construction cost management provider.

2.   That this is one of five major contracts required to progress and complete the project.  The contract for construction is anticipated to be considered by Council later in 2020, however this contract and the other three are anticipated for consideration early in 2020.  The other three contracts are:

a.   Project Management services

b.   Head Design Consultant services (i.e. architect and design team sub-contractors)

c.   Early Contractor Involvement (i.e. a builder to participate in Design Development from 30% to 80% documentation and, potentially, to undertake construction)

Options:

1.   Adopt the recommendation.  This would allow the project to progress in accordance with Council’s resolutions.

2.   Reject the recommendation and re-direct the Cultural and Civic Space Project.

Sustainability Assessment:

•     Environment

The building design is developing to respond to the unique environmental conditions of the Coffs Harbour region by implementing low embodied energy construction systems and materials.  It aims to minimise energy use and harness the climate to improve the quality of spaces through passive and active solar and system design.  Sustainability of the people is equally important - the physical space shall support the health and well-being of the occupants, encourage them to thrive, and be a catalyst for them reaching purpose and potential.  The building will target a wide range of sustainability initiatives to align with Council’s Sustainability Policy.  The Building Services & Sustainability section above provides a detailed analysis.

•     Social

A range of community and cultural benefits will flow from the development including a vibrant cultural hub, improved literacy, educational and lifelong learning, improved social and wellbeing outcomes, increased exhibition spaces and programs, increased visitor numbers and a variety of cultural facilities and spaces that don’t exist today.

 

The CCS Project Concept Business Case projected that the annual visitation to these facilities by Year 5 post-construction to be around 412,000.

•     Civic Leadership

Civic leadership is shown through the ongoing implementation of MyCoffs Community Strategic Plan.  Council sees an opportunity to match the needs of our growing population, civic leadership and to add value to the city as an urban renewal opportunity and a cultural, community, business and visitor destination.

•     Economic – Broader Economic Implications

An independent economic assessment identified a host of benefits to the CBD including a variety of financial benefits over a 30-year period totalling $57m, 31 on-going jobs and an extra $2m per annum Gross Regional Product.

•     Economic - Delivery Program/Operational Plan Implications

All Tender prices received are within Council’s allocated budget for this Project.

Risk Analysis:

There are some key risks specifically related to this procurement of the Cost Management Consultant.

 

·    Council has issued tender documentation that clearly outlines the cost management role required however some providers may revert to a cost calculator and cost reporter role.  This is mitigated through the tender documentation, tender evaluation of proposed methodology and working with the Project Management Consultant to manage the Cost Manager’s work.

·    The Cost Manager could provide incorrect cost advice which could impact the design.  This is mainly mitigated through the parallel costing work being undertaken by the builder in their Early Contractor Involvement role.

 

A project risk register has been developed and reported to Council previously.  Risks continue to be monitored and mitigated.

 

To further enable mitigation of the risks and to ensure good governance for the Project, a Project Board was established.  This Board is chaired by the General Manager and has met formally on a regular basis over the last 18 months to consider Project Status Reports and review the status of the risk register.  The Project Board also undertook the role of value managing the project aspects to ensure the outcomes delivered on the Project Brief and remained within the allocated budget.

Consultation:

Extensive community and staff engagement was conducted from September 2018 to June 2019.  Additionally, targeted stakeholder consultation was undertaken to further inform the design of the building.  Throughout the process the Library and Gallery Planning Advisory Group (LGPAG) have remained closely engaged as the formal community advisory group.

 

There were many avenues for the community to be informed of the design (print and radio media, newsletters, information stands, meetings and forums, rate notice information and much more) and provide comment.  Ten targeted groups were identified for more detailed consultation and engagement including Migrants, people experiencing homelessness, Youth and Indigenous.  Many of these groups were engaged on multiple occasions throughout the Schematic Design phase.

 

At the public release of the Schematic Design, feedback was open from 10 – 31 May 2019.  Extensive promotion was conducted that enabled written feedback to be provided through a range of platforms.  78 written feedback submissions were received.  Overall written feedback was 51% positive and supportive of the project, 23% neutral, suggestions or unrelated and 26% opposed to the project in part or its entirety.  After extensive communication and engagement, a limited amount of written feedback was received.  It should be noted that a percentage of the negative feedback was in respect to there being no performance space in the Cultural and Civic space project.  As council is aware, the performance space was intentionally separated from this project at the outset and is the subject of a separate body of work.

 

Since completion of Schematic Design the State Significant Development application has been submitted and submissions are currently being assessed and responded to by the CCS Project Office and the Project’s Planning Consultant.  A Development Application for demolition of existing buildings on the project site has also been submitted and is in process.

Related Policy, Precedents and / or Statutory Requirements:

The calling, receiving and reviewing of tenders was carried out in accordance with Part 7 Tendering of the NSW Local Government (General) Regulations 2005.  Tendering procedures were carried out in accordance with Council's policy.

 

Enabling of strategic outcomes:

 

·      MyCoffs Community Strategic Plan

·      The City Centre Master Plan 2031 and its desired outcomes are enabled in part by this project through activation of the Gordon St site and freeing up of the 2 Castle St site for future activation.

·      The Creative Coffs – Cultural Strategic Plan 2017 – 2022

·      The Coffs Harbour City Library Strategic Plan 2012 – 2016

·      Economic Development Strategy 2017-2022

·      Coffs Coast Tourism Strategic Plan 2020

·      Coffs Harbour Events Strategy 2020

·      Disposal of Assets Policy

Implementation Date / Priority:

 

Key Project Milestones

Start date

End date

1

Development application processing and approval

Jul 2019

May 2020

2

Detailed Design (to 80% design documentation)

Feb 2020

Oct 2020

3

Demolition

Feb 2020

Apr 2020

4

Award Design & Construction Contract (remaining 20% design documentation and construction)

Oct 2020

Dec 2020

5

Construction

Feb 2021

Feb 2023

6

Construction contingency

Mar 2023

May 2023

 

Conclusion:

This report provides Council with the opportunity to approve the cost management contract for detailed design and construction of the Cultural and Civic Space Project.

  


BS20/02       Bank and Investment Balances for November 2019

Author:                        Section Leader Financial Planning

Authoriser:                  Director Business Services

MyCoffs:                      D.2 We have effective use of public resources.

Attachments:              ATT1  BS20/02   Investment Performance Report for the Month Ended 30 November 2019  

 

Executive Summary

Council’s Bank Balances and Investments as at 31 November 2019 totalled $222,766,003.32.  Council receives independent advice and invests surplus funds in accordance with Council’s Investment Policy to maximise investment income and preserve capital to assist with funding requirements for projects listed under the My Coffs Community Strategic Plan.

 

Also included in the monthly report is a summary of Council’s Socially Responsible Investment Performance (refer Attachment 1).

 

 

Recommendation:

That Council note the bank balances and investments totalling $222,766,003.32 (including from loans, Developer Contributions and other avenues that form the restricted accounts and are committed for future works) as at 30 November 2019.

 

Report

Description of Item:

A copy of the state of Bank Balances and Investments as at 30 November 2019 is attached.  Also included is a summary of Council’s Socially Responsible Investment Performance.  It should be noted that Council is required to account for investments in accordance with the Australian International Financial Reporting Standards.  Term deposits are shown at face value and all other investment balances at the end of each month reflect market value movements, which would be inclusive of accrued interest.

 

Interest when paid, say quarterly, would result in reductions in the market value of the investments.  The Investment Report reflects the above requirements and reflects the interest earned (or accrued) on each investment, based on the acquisition price.

 

Reports written by Laminar Group Pty Ltd (Council’s investment portfolio advisors), which examine economic and financial markets data for November 2019 are available in the Councillors’ Resource Centre.

Issues:

There are no issues associated with the report.

Options:

As the report is for noting only, an options analysis is not required.

Sustainability Assessment:

•     Environment

There are no perceived current or future environmental impacts from the information contained in this report.

•     Social

There are no perceived current or future social impacts from the information contained in this report.

•     Civic Leadership

Council invests surplus funds to maximise investment income and preserve capital to assist with funding requirements for projects listed under the My Coffs Community Strategic Plan.

•     Economic – Broader Economic Implications

Council’s investments are held according to the requirements stated within Council’s Investment Policy and the returns are acceptable in relation thereto.  In the long term, earnings from investments can vary due to economic conditions and financial markets.  Council constructs its investment portfolio with consideration of current conditions and to comply with the Office of Local Government Investment Policy Guidelines.

•     Economic - Delivery Program/Operational Plan Implications

As at 30 November 2019, it is noted that the total bank and investment balance was $222,766,003.32 comprising restricted and unrestricted General, Trust, Water and Sewerage Fund cash and investments.

Risk Analysis:

The likelihood of risks associated with New South Wales Local Government’s investing funds is now remote due to the conservative nature of investments permitted under statutory requirements.  The risk of capital not being returned in relation to each individual investment Council owns is indicated in the attachment.

 

The main risks for Council’s investment portfolio are liquidity and credit risk, both of which are being managed under the advice of Laminar Group Pty Ltd.  Liquidity risk is the risk that the Council is unable to redeem the investment at a fair price within a timely period and thereby incurs additional costs (or in the worst case is unable to execute its spending plans).  Credit risk is the risk of loss of principal stemming from a financial institutions failure to repay that principal when that principal is due.  Council is compensated for assuming credit risk by way of interest payments from the financial institutions issuing the investment security.

 

Credit risk is rated by various rating agencies.  Investment securities in Council’s current portfolio are rated by either Standard and Poors or Fitch, with the majority of the portfolio rated by Standard and Poors.  Standard and Poors credit ratings and an explanation of their ratings are as follows:

 

Rating

Ratings Explanation

AAA

Extremely strong capacity to meet financial commitments.  Highest Rating.

AA

Very strong capacity to meet financial commitments.

A

Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.

BBB

Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.

BBB-

Considered lowest investment grade by market participants.

BB+

Considered highest speculative grade by market participants.

BB

Less vulnerable in the near term but faces major ongoing uncertainties to adverse business, financial and economic conditions.

B

More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.

CCC

Currently vulnerable and dependent on favourable business, financial and economic conditions to meet financial commitments.

CC

Currently highly vulnerable.

C

Currently highly vulnerable obligations and other defined circumstances.

D

Payment default on financial commitments.

 

Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

 

Types of investment securities by credit risk ranking from highest to lowest are as follows:

 

·    Deposits/Covered Bonds – these share first ranking

·    Senior debt – Floating Rate Notes/Fixed Coupon Bonds.

·    Subordinated debt

·    Hybrids

·    Preference shares

·    Equity shares (common shares).

 

Subordinated debt, hybrids, preference and equity shares are not a permitted investment under the current Ministerial Order.  Term deposits of $250,000 or less per financial institution are covered under the Commonwealth Government Deposit Guarantee Scheme and therefore by default have the same credit rating as the Commonwealth Government, i.e. AAA.

 

All credit unions, building societies and mutual banks are Authorised Deposit-taking Institutions (ADIs) and are regulated in the same way as all other Australian banks.  ADIs are regulated by the Australian Securities and Investment Commission under the Corporations Act 2001, and by the Australian Prudential Regulatory Authority under the Banking Act 1959.

Consultation:

Council’s investment advisors, Laminar Group Pty Ltd have been consulted in the preparation of this report.

Related Policy, Precedents and / or Statutory Requirements:

Council funds have been invested in accordance with Council’s Investment Policy (POL‑049), which was adopted on 24 August 2017.

Local Government Act 1993 – Section 625

Local Government Act 1993 – Investment Order (dated 12 January 2011)

Local Government General Regulation 2005

The Trustee Amendment (Discretionary Investments) Act 1997 – Sections 14A(2), 14C(1) and 14C(2)

Implementation Date / Priority:

Nil.

Conclusion:

Council should consider the information provided in the report and the Councillors’ Resource Centre and the recommendation provided.

 

 

 


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BS20/03       Bank and Investment Balances for December 2019

Author:                        Section Leader Financial Planning

Authoriser:                  Director Business Services

MyCoffs:                      D.2 We have effective use of public resources.

Attachments:              ATT1  BS20/03   Investment Performance Report for the Month Ended 31 December 2019  

 

Executive Summary

Council’s Bank Balances and Investments as at 31 December 2019 totalled $220,570,563.95.  Council receives independent advice and invests surplus funds in accordance with Council’s Investment Policy to maximise investment income and preserve capital to assist with funding requirements for projects listed under the My Coffs Community Strategic Plan.

 

Also included in the monthly report is a summary of Council’s Socially Responsible Investment Performance (refer Attachment 1).

 

 

Recommendation:

That Council note the bank balances and investments totalling $220,570,563.95 (including from loans, Developer Contributions and other avenues that form the restricted accounts and are committed for future works) as at 31 December 2019.

 

Report

Description of Item:

A copy of the state of Bank Balances and Investments as at 31 December 2019 is attached.  Also included is a summary of Council’s Socially Responsible Investment Performance.  It should be noted that Council is required to account for investments in accordance with the Australian International Financial Reporting Standards.  Term deposits are shown at face value and all other investment balances at the end of each month reflect market value movements, which would be inclusive of accrued interest.

 

Interest when paid, say quarterly, would result in reductions in the market value of the investments.  The Investment Report reflects the above requirements and reflects the interest earned (or accrued) on each investment, based on the acquisition price.

 

Reports written by Laminar Group Pty Ltd (Council’s investment portfolio advisors), which examine economic and financial markets data for December 2019 are available in the Councillors’ Resource Centre.

Issues:

There are no issues associated with the report.

Options:

As the report is for noting only, an options analysis is not required.

Sustainability Assessment:

•     Environment

There are no perceived current or future environmental impacts from the information contained in this report.

•     Social

There are no perceived current or future social impacts from the information contained in this report.

•     Civic Leadership

Council invests surplus funds to maximise investment income and preserve capital to assist with funding requirements for projects listed under the My Coffs Community Strategic Plan.

•     Economic – Broader Economic Implications

Council’s investments are held according to the requirements stated within Council’s Investment Policy and the returns are acceptable in relation thereto.  In the long term, earnings from investments can vary due to economic conditions and financial markets.  Council constructs its investment portfolio with consideration of current conditions and to comply with the Office of Local Government Investment Policy Guidelines.

•     Economic - Delivery Program/Operational Plan Implications

As at 31 December 2019, it is noted that the total bank and investment balance was $220,570,563.95 comprising restricted and unrestricted General, Trust, Water and Sewerage Fund cash and investments.

Risk Analysis:

The likelihood of risks associated with New South Wales Local Government’s investing funds is now remote due to the conservative nature of investments permitted under statutory requirements.  The risk of capital not being returned in relation to each individual investment Council owns is indicated in the attachment.

 

The main risks for Council’s investment portfolio are liquidity and credit risk, both of which are being managed under the advice of Laminar Group Pty Ltd.  Liquidity risk is the risk that the Council is unable to redeem the investment at a fair price within a timely period and thereby incurs additional costs (or in the worst case is unable to execute its spending plans).  Credit risk is the risk of loss of principal stemming from a financial institutions failure to repay that principal when that principal is due.  Council is compensated for assuming credit risk by way of interest payments from the financial institutions issuing the investment security.

 

Credit risk is rated by various rating agencies.  Investment securities in Council’s current portfolio are rated by either Standard and Poors or Fitch, with the majority of the portfolio rated by Standard and Poors.  Standard and Poors credit ratings and an explanation of their ratings are as follows:

 

Rating

Ratings Explanation

AAA

Extremely strong capacity to meet financial commitments.  Highest Rating.

AA

Very strong capacity to meet financial commitments.

A

Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.

BBB

Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.

BBB-

Considered lowest investment grade by market participants.

BB+

Considered highest speculative grade by market participants.

BB

Less vulnerable in the near term but faces major ongoing uncertainties to adverse business, financial and economic conditions.

B

More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.

CCC

Currently vulnerable and dependent on favourable business, financial and economic conditions to meet financial commitments.

CC

Currently highly vulnerable.

C

Currently highly vulnerable obligations and other defined circumstances.

D

Payment default on financial commitments.

 

Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

 

Types of investment securities by credit risk ranking from highest to lowest are as follows:

 

·    Deposits/Covered Bonds – these share first ranking

·    Senior debt – Floating Rate Notes/Fixed Coupon Bonds.

·    Subordinated debt

·    Hybrids

·    Preference shares

·    Equity shares (common shares).

 

Subordinated debt, hybrids, preference and equity shares are not a permitted investment under the current Ministerial Order.  Term deposits of $250,000 or less per financial institution are covered under the Commonwealth Government Deposit Guarantee Scheme and therefore by default have the same credit rating as the Commonwealth Government, i.e. AAA.

 

All credit unions, building societies and mutual banks are Authorised Deposit-taking Institutions (ADIs) and are regulated in the same way as all other Australian banks.  ADIs are regulated by the Australian Securities and Investment Commission under the Corporations Act 2001, and by the Australian Prudential Regulatory Authority under the Banking Act 1959.

Consultation:

Council’s investment advisors, Laminar Group Pty Ltd have been consulted in the preparation of this report.

Related Policy, Precedents and / or Statutory Requirements:

Council funds have been invested in accordance with Council’s Investment Policy (POL‑049), which was adopted on 24 August 2017.

Local Government Act 1993 – Section 625

Local Government Act 1993 – Investment Order (dated 12 January 2011)

Local Government General Regulation 2005

The Trustee Amendment (Discretionary Investments) Act 1997 – Sections 14A(2), 14C(1) and 14C(2)

Implementation Date / Priority:

Nil.

Conclusion:

Council should consider the information provided in the report and the Councillors’ Resource Centre and the recommendation provided.

 

 

 


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BS20/04       Monthly Financial Performance Report for the Month Ended 30 November 2019

Author:                        Senior Finance Business Partner

Authoriser:                  Director Business Services

MyCoffs:                      D.2 We have effective use of public resources.

Attachments:              ATT1  BS20/04   Monthly Financial Performance Report for the Month Ended 30 November 2019  

 

Executive Summary

This report presents the Monthly Financial Performance Report for 30 November 2019.  The report provides information on the actual to budget position at the financial statement level and capital expenditure reports for the current financial year.  The projected year to date surplus is $61.5 million with the actual year to date being $65.6 million.

 

The explanation of year to date variances is contained within the Income Statement commentary under Variance Comments for variances greater than 10%.  There are individual recurrent revenue sources with variances but overall recurrent revenue is on track, similarly for recurrent expenditure.

 

The capital expenditure target for the current financial year is $93.2 million with $22.6 million expended to the end of November.

 

 

Recommendation:

That Council note the Monthly Financial Performance Report for 30 November 2019.

 

Report

Description of Item:

The Monthly Financial Performance Report provides information on Council’s actual to budget performance.  The report provides accrual based information to Council on a monthly basis and designed to identify and explain any major variances between budgeted and actual results.

 

The report includes:

 

Financial Management Summary

·     The net operating surplus at the end of November is $4.1 million ahead of budget expectations.  The total surplus after capital grants is $65.6 million against a budget of $61.5 million.  Operating expenditure to the end of November is $66.9 million against a budget of $71.2 million.

·     Capital expenses is on track of YTD budget expectations with total capital expenditure to the end of November of $22.6 million versus a YTD budget of $22.5 million and annual targeted expenditure of $93.2 million.  Further details are provided in the Capital Expenditure Report comments.

 

Income Statement

·     This is a comprehensive income statement detailing the monthly performance for November 2019.  This statement compares actual to budget on a monthly and year to date basis at the financial statement level.  In terms of monthly percentages, although some percentages may be large in dollar terms, they have a minor impact on financial performance.  There are individual comments for any monthly and YTD variances greater than 10%.

 

Capital Expenditure Summary and Detailed

·     Capital expenditure by cost centre and then at a more detailed level is also provided in the attachment.  Explanations have been provided for any variances greater than $200,000.

Issues:

Income Statement commentary as at 30 November 2019 for Year to Date (YTD) variances:

 

Revenue

·     Interest and Investment Revenue:  This timing difference is due to interest coupons on investments received in November. Coupons are received based on investment and maturity dates. This variance is expected to continue decreasing as higher rate term deposits mature and are re-invested at current lower rates due to several rate decreases.  Interest and Investment Revenue should meet or slightly exceed budget by the end of the financial year.

·    Grants & Contributions – Operating Purposes:  The IT Conference income was higher than expected and container deposit scheme refunds from Handybin were received that were not budgeted for; this is to be addressed in the December Quarterly Budget Review Statement (QBRS).

 

Expenditure

·    Other Expenses:  The primary shortfall relates to some budgets allocated to other expenses whereas actuals are being charged to materials and contracts.  This will be reviewed within the December QBRS.

 

Income Statement commentary as at 30 November 2019 for Monthly variances:

 

Revenue

·    Rates and Annual Charges:  There is a minor variation in dollar terms; pension rebates for General, Water, Sewer and Domestic Waste are higher than expected this month.

·    Grants & Contributions – Operating Purposes:  The Financial Assistant Grant payment has been allocated to a project component that will be reviewed in the December QBRS.

 

Expenditure

·     Materials & Contracts:  Northern Beaches Fibre Optic project's budget is included in materials and contracts, however City Smart Solutions are delivering the project and therefore the actual expenditure is on an internal natural account creating the variance. This will be reviewed within the December QBRS.

·     Other Expenses:  The primary shortfall relates to some budgets allocated to other expenses whereas actuals are being charged to materials and contracts.  This will be corrected in 2020/21 and future budgets.

Options:

An options analysis is not provided as the report is for noting only.

 


 

Sustainability Assessment:

•      Environment

There are no perceived short or long-term environmental impacts for the information contained within the report.

•      Social

There are no perceived short or long-term social impacts for the information contained within the report.

•      Civic Leadership

Council supports the delivery of high quality, sustainable outcomes for Coffs Harbour by monitoring financial performance which assists the decision making process to allocate funding for projects listed under the MyCoffs Community Strategic Plan.

•      Economic – Broader Economic Implications

This report assesses the current year’s budget position only.  Any variations approved by Council are subsequently reflected in Council’s Delivery Plan and may affect future economic sustainability.

•      Economic - Delivery Program/Operational Plan Implications

The year to date surplus, after capital revenue, is projected to be $61.5 million as at 30 November 2019 with the actual year to date being $65.6 million.

Risk Analysis:

There are no risks associated with this report.

Consultation:

Group Leaders and their relevant staff have been provided with budget reports for each cost centre on a monthly basis for review.  Any variations will be provided to Council for adoption through the Quarterly Budget Review process.

Related Policy, Precedents and / or Statutory Requirements:

Local Government regulations require the Responsible Accounting Officer to submit a quarterly budget review to Council.  There is no obligation to provide monthly financial performance reports but as part of prudent financial management, we have opted to do so.

Implementation Date / Priority:

This report is for noting only and therefore there are no implementation actions.

 

Conclusion:

 

This Monthly Financial Performance Report provides information on the actual to budget results at the financial statement level along with capital expenditure reports for the current financial year.

 

The Responsible Accounting Officer confirms the Monthly Financial Performance Report for the month ended 30 November 2019 indicates the financial position of the Council is satisfactory, having regard to the projected estimates of income and expenditure and the original budgeted income and expenditure.


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BS20/05       Business Incentive Policy - Amendment

Author:                        Developer Contributions Officer

Authoriser:                  Director Business Services

MyCoffs:                      D.1 Our leaders give us confidence in the future

Attachments:              ATT1  BS20/05   Business Incentive Policy - Amendment  

 

Executive Summary

At the Council meeting held on the 14 November 2019 the reviewed Business Incentive Policy with proposed amendments was adopted by Council.  At the time a detailed review was undertaken and proposed amendments to the policy along with outcomes achieved after 12 months were reported to Council.

 

Since the revised Business Incentive Policy was adopted it has been identified that a specific definition contained within the Business Incentive Policy is significantly restricting many commercial businesses from being eligible by way of qualification for the Employment Generating and Enhanced Deferred Payments Incentive.  This report seeks a change to wording within the policy and its definition to remove this eligibility restriction.

 

The Business Incentive Policy was implemented to provide a holistic approach to support business investment and reinvestment in the regional economy, when the investment may not otherwise occur.  It also encourages diversification and seeks to stimulate business development and growth across the Coffs Harbour Local Government Area (LGA).

 

Recommendation:

That Council adopt the amended Business Incentive Policy (attachment 1) with the following changes:

·    Replace the term “Business Premises” with the term “Commercial Premises” with the inclusion of specific and broader types of business within the definition.

·    Replace the term “business use” with “commercial use” for consistency.

 

Report

Description of Item:

Since the recently revised Business Incentive Policy which was adopted by Council at its meeting on the 14 November 2019 it has been identified that a specific definition contained within the Business Incentive Policy is significantly restricting many commercial businesses from being eligible and qualifying for the Employment Generating & Enhanced Deferred Payments Incentives.

 

Within the eligibility section of the policy (see below extract 2.1.1 and 2.2.1) the term “Business Premises” is referenced as the same definition as the term within the Coffs Harbour Local Environment Plan (LEP) 2013 (see below extract 3).

 

 

 

 

The term “Business Premises” restricts a significant number of new or expanding commercial businesses from being eligible from a 40% discount off car parking developer contributions and the option to deferred contribution payments.  Under the current wording the following business uses are deemed ineligible:

 

·    All types of food and drink premises

·    Retail shops

·    Offices and administration buildings

 

At the time of the original Business Incentive Policy being written it was the intention of the policy to extend to a wide range of commercial businesses.  It is therefore recommended that the eligibility wording and definition contained within the policy be changed from “Business Premises” to “Commercial Premises” in order to reflect the intended objective of the policy.  Other specific business uses have also been added to extend beyond the LEP definition of commercial premises.

 

Also, the term “business use” is used for eligibility for the Small Business Enterprise Incentive.  Although to date this has not caused any issues, for consistency, it is recommended that the wording be changed to “commercial use”.

Issues:

When the policy was originally being drafted it was the intention that the policy would benefit a wide range of commercial businesses.  In addition, there is a market perception that the current Employment Generating Incentive and Enhanced Deferred Payments Incentive does already cater for a majority of commercial businesses.  By initiating this change to the wording and definition within the policy it will clearly align with the intended objective of the policy.

 

Given this is a minor wording change to the Policy to bring about the original intent of the Council, it is considered that a further public exhibition period is not required.

Options:

In considering this report Council has the following options:

 

1.    Adopt the amended Business Incentive Policy (attachment 1) which includes the recommended changes to the policy wording/definition.

2.    Retain the current Business Incentive Policy.

 

Option 1 is recommended to ensure the policy is framed to meet its intended objectives.

Sustainability Assessment:

•     Environment

Environmental impacts are considered with all development applications. It is not expected that this policy will have any environmental impact.

•     Social

Policies are an important communication tool used by Council for providing our community and general public detail on strategic aims, commitments and obligations.

•     Civic Leadership

Policies are important for ensuring transparency and accountability in local government.  Their implementation enables Council to identify and respond to the community.  This is consistent with the MyCoffs Community Strategic Plan Strategy D.1 Our leaders give us confidence in the future.

•     Economic – Broader Economic Implications

The economic implications were considered more recently by Council at its meeting on the 12 September 2019.

 

The continuation of the Business Incentive Policy is expected to generate further economic activity within the Local Government Area.

•     Economic - Delivery Program/Operational Plan Implications

It is expected that a proportion of development covered by the policy will not have occurred except for the fact the policy is in place, and therefore, it is not expected to have a detrimental impact on the financial sustainability of the organisation.

Risk Analysis:

By not initiating this change to the wording and definition within the policy it will significantly limit the number of businesses that qualify for the Employment Generating and Enhance Deferred Payments Incentives.  This will likely have a negative impact on the intended outcomes of policy, which is stimulating commercial development and economic growth within the Coffs Harbour LGA.

Consultation:

Relevant Council officers and working group members across Council have been consulted in the preparation of this report. 

Related Policy, Precedents and / or Statutory Requirements:

The relevant statutory requirements for the preparation of developer contribution plans and collection of contributions are principally the Environmental Planning and Assessment Act 1979, the Environmental Planning and Assessment Regulation 2000, the Local Government Act 1993 and the Water Management Act 2000.

Implementation Date / Priority:

The amended Business Incentive Policy will become available immediately upon adoption by Council.

Conclusion:

It is expected that the adoption of this amended policy will generate further economic development within the Coffs Harbour LGA as was originally intended and provide incentives to generate further employment and business opportunities into the future.

 


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BS20/06       Contract No. RPT-1112-TO - Supply and Delivery of Concrete and FRC Pipes and Associated Products (Regional Procurement Tender No. REGPRO621920)

Author:                         Team Leader Contracts and Procurement

Authoriser:                  Director Business Services

MyCoffs:                      B.1 A thriving and sustainable local economy

Attachments:              ATT1  BS20/06   CONFIDENTIAL Contract No. RPT-1112-TO - Tender Assessment

Confidential in accordance with Section 10A(2)(d)(i),(d)(ii) of the Local Government Act as it contains commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it, and information that would, if disclosed, confer a commercial advantage on a competitor of the council.  

 

Executive Summary

Coffs Harbour City Council is a financial and Associate Member of the Regional Procurement Initiative (RPI) for the Mid North Coast Procurement Alliance Group of Councils. RPI on behalf of the Mid North Coast Procurement Alliance Group of Councils, called tenders for the Supply and Delivery of Concrete and FRC Pipes and Associated Products, Tender No REGPRO621920 that closed on 11 June 2019.

 

RPI advertised the tender as a contract for a three (3) year period with an additional option of one (1) year that may be taken up based on satisfactory performance by the successful supplier.

 

RPI advised tenderers the preference was to award the tender as a single source supplier, by Category. There were two (2) categories, being:

 

Category 1 – Reinforced Concrete (RC) Pipes & Associated Products; and

 

Category 2 – Fibre Reinforced Concrete (FRC) Pipes & Associated Products.

 

Recommendation:

That Council considers the tenders received for the Supply and Delivery of Concrete and FRC Pipes and Associated Products, Regional Procurement Contract No. REGPRO621920, Contract No. RPT-1112-TO, and adopts the recommendation in the Confidential Attachment.

 

Report

Description of Item:

Regional Procurement Initiative on behalf of the Mid North Coast Procurement Alliance Group of Councils, has called tenders for the Supply and Delivery of Concrete and FRC Pipes and Associated Products Tender No. REGPRO621920.

 

Tenders were evaluated on the following criteria:

 

·    Tender price

·    Quality assurance

·    Work health and safety

·    Referees

 

Three (3) tenders were received from the following companies for the Supply and Delivery of Concrete and FRC Pipes and Associated Products:

 

1.   Advanciv Pty Ltd

2.   Holcim(Australia) P/L T/as Humes

3.   Reinforced Concrete Pipes Australia (NSW)

Issues:

Issues relating to this tender are discussed in the Confidential Attachment.

Options:

The options available to Council with respect to this report are:

 

1.    Recommend approval of a single source supplier for each category; or

2.    Reject all tenders.

Sustainability Assessment:

•     Environment

RPI have addressed major environmental issues in the form of a compulsory questionnaire in their Tender Schedules.  The successful tenderer must comply with the Protection of the Environment Operations Act, 1997, at all times with respect to pollution from noise, air, water, land and waste sources when supplying and delivering their products.

•     Social

The Supply and Delivery of Concrete and FRC Pipes and Associated Products works under this Contract is mostly used for civil construction and road maintenance works. Road Maintenance works plays an integral part in providing and maintaining infrastructure for the community.

•     Civic Leadership

The tender is consistent with the MyCoffs Community Strategic Plan. Council supports the delivery of high quality, sustainable outcomes for Coffs Harbour. Council also illustrates strong leadership in encouraging local business participation, resulting in permanent and casual employment for Coffs Harbour residents.

•     Economic – Broader Economic Implications

There are no major economic impacts on Council in the awarding of this tender.

•     Economic - Delivery Program/Operational Plan Implications

All orders for the Supply and Delivery of Concrete and FRC Pipes and Associated Products will be based on project requirements that have been approved and budgeted for over each financial year of the term of the contract.

Risk Analysis:

Tender documentation has been developed to minimise Council’s exposure to risk. Quality, safety and environmental risks will be supervised by experienced and qualified Council Project Managers in the engagement of applicable preferred suppliers throughout the term of the contract.

Consultation:

Consultation was undertaken with relevant Council staff.

Related Policy, Precedents and / or Statutory Requirements:

By actively participating in this Tender with RPI, the calling, receiving and reviewing of tenders was carried out in accordance with Part 7 Tendering of the Local Government (General) Regulations 2005.

 

Regional Procurement’s Tender Value Selection System was applied during the tender review process to determine the most advantageous offer. Regional Procurement’s policy is that the tender with the highest weighted score becomes the recommended tender (refer Confidential Attachment).

Implementation Date / Priority:

The advertised contract is for a three (3) year period with an additional one (1) year option.

Conclusion:

Council should consider the recommendation as outlined in the Confidential Attachment.

 

 

 


BS20/07       Contract No. RFT-1138-TO - Provision of Plumbing Maintenance and Repair Services to Council Facilities (Panel Contract)

Author:                        Strategic Contract Administrator

Authoriser:                  Director Business Services

MyCoffs:                      B.1 A thriving and sustainable local economy

Attachments:              ATT1  BS20/07   CONFIDENTIAL Contract No. RFT-1138-TO - Tender Assessment

Confidential in accordance with Section 10A(2)(c) of the Local Government Act as it contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.  

 

Executive Summary

Council called tenders for the Provision of Plumbing Maintenance & Repair Services Contract No-RFT-1138-TO that closed on 14 August 2019.

 

The tender was advertised as a contract for a two (2) year period with a further one (1) year option based on satisfactory supplier performance.

 

Prospective tenderers were advised that it was Council’s preference to award the tender as a single source supplier or alternatively as a panel supplier contract, but Council simultaneously reserved the right to award sections of the contract to individual tenderers.

 

Recommendation:

That Council considers the tenders received for the Provision of Plumbing Maintenance & Repair Services to Council Facilities, Contract No. RFT-1138-TO, and adopts the recommendation in the Confidential Attachment.

 

Report

Description of Item:

Council called tenders for the Provision of Plumbing Maintenance & Repair Services to Council Facilities, Tender No RFT-1138-TO that closed on 14 August 2019.

 

Tenders were evaluated on the following criteria:

·        Schedule of Rates

·        Demonstrated Capability & Capacity

·        Process for attendance for urgent and after hours work

·        Demonstrated Experience and Past Performance

·        Key Personnel

 

Tender offers were received from 13 proponents as follows:

 

1.    All Kerb Pty Ltd

2.    Coffs Harbour Plumbing

3.    Emerald Beach Plumbing

4.    Ernie Burnett Plumbing

5.    Jetty Plumbing

6.    Joel Cutting

7.    Joel Street Plumbing

8.    Laser Plumbing

9.    Mr Plummer

10.  Park Beach Plumbing

11.  Pureflow Plumbing

12.  RH Plumbing

13.  Solo Services Group

Issues:

The assessment panel identified the following issues to consider:

 

·    Tenderers were advised that Council reserved the right to appoint a Panel of Tenderers, or alternatively award the tender to a single source contractor; and

·    The number of proponents whom tendered for consideration on the Panel.

 

The results and further discussion of these issues are included in the Confidential Attachment.

Options:

The options available to Council with respect to this report are:

 

1.   Recommend approval of a single source supplier.

2.   Recommend approval of a panel of Contractors based on the application of Council’s Tender Evaluation process.

3.   Reject all tenders.

Sustainability Assessment:

•     Environment

There are no major environmental issues to consider in respect of this tender, as the majority of work will be undertaken in Council work hours and within Council buildings. Council employees responsible for the scheduling of plumbing maintenance work are required to have a sound knowledge of environmental policies and issues.

 

Council has an environmental officer on call for all after-hours issues and the approved Contractors will be provided with a list of names of which to contact in regards to environmental problems that may need to be addressed.

•     Social

There are no adverse social implications involved in this contract

•     Civic Leadership

This tender is consistent with MyCoffs Community Strategic Plan .  As referenced above, item B1.1  Council champions business, events, innovation and technology to stimuate economic growth, investment and local jobs. Council illustrates strong leadership in encouraging local business participation, resulting in permanent and casual employment for Coffs Harbour residents.

•     Economic – Broader Economic Implications

Council has demonstrated due diligence in going out to tender and testing the market place for these services.

 

Should Council accept a tender(s) it is expected that cost of this service could increase with the  rise and fall clause in this agreement for each subsequent year of the tender which is in line with any CPI rise and then applying the appropriate formula using the Producers Price Index Australia bureau of Statistics Catalogue.

•     Economic - Delivery Program/Operational Plan Implications

The majority of all plumbing maintenance on Council’s buildings and properties is budgeted for within the Logistics Section of the Directorate of Business Services. Funds are allocated under the maintenance and repair account project or work order number on a need only basis, where a purchase order is raised for the service.

 

All other service request costs are budgeted for under each departmental sectional maintenance and repairs account job number on a service need basis.

Risk Analysis:

All risks have been considered and outlined in the attached Confidential Attachment.

Consultation:

Consultation was undertaken with relevant Council staff.

Related Policy, Precedents and / or Statutory Requirements:

Tendering procedures were carried out in accordance with Council’s own policy and procedures as well as meeting statutory obligations under the Local Government (General) Regulation 2005 - Part 7 Tendering Division 1 Preliminary 163 Section 55.

Implementation Date / Priority:

The advertised contract is for a two (2) year period with a further one (1) year option.

Conclusion:

Council should consider the recommendation as outlined in the Confidential Attachment.

 

 


BS20/08       Contract No. RPT-1144-TO - Supply, Delivery and Placement of Road Resurfacing (Regional Procurement Tender No. T611920MNC)

Author:                        Strategic Contract Administrator

Authoriser:                  Director Business Services

MyCoffs:                      B.1 A thriving and sustainable local economy

Attachments:              ATT1  BS20/08   CONFIDENTIAL Contract No. RPT-1144-TO - Tender Assessment

Confidential in accordance with Section 10A(2)(d)(i),(d)(ii) of the Local Government Act as it contains commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it, and information that would, if disclosed, confer a commercial advantage on a competitor of the council.  

 

Executive Summary

Coffs Harbour City Council is a financial and Associate Member of the Regional Procurement Initiative (RPI) for the Mid North Coast Procurement Alliance Group of Councils. RPI on behalf of the Mid North Coast Procurement Alliance Group of Councils, has called tenders for the Supply, Delivery and placement of Road Resurfacing Tender No T611920MNC that closed on 25 June 2019.

 

RPI advertised the tender as a contract for a three (3) year period with an additional option of one-year that may be taken up based on satisfactory performance by the successful supplier.

 

RPI advised tenderers this would be awarded as an open panel by category. There were five (5) categories of which Coffs Harbour City Council signed a letter of participation with RPI for one (1) of the Road Resurfacing categories, being Crack Sealing: Rigid and Bituminous Road Surfaces (category 4).

 

Recommendation:

That Council considers the tenders received for the Supply, Delivery and Placement of Road Resurfacing for Category 4: Crack Sealing, Regional Procurement Contract No. T611920MNC, Contract No. RPT-1144-TO, and adopts the recommendation in the Confidential Attachment.

 

Report

Description of Item:

Regional Procurement Initiative on behalf of the Mid North Coast Procurement Alliance Group of Councils, has called tenders for the Supply, Delivery and placement of Road Resurfacing Tender No T611920MNC (Panel Tender)

 

Coffs Harbour City Council signed a letter of participation with Regional Procurement for one (1) of the Road Resurfacing categories, being Crack Sealing: Rigid and Bituminous Road Surfaces (category 4).

 

Tenders were evaluated on the following criteria:

 

·   Tender price

·   Referees

·   Quality assurance

·   Work health and safety

·   Customer service

·   Previous experience

 

Six (6) tenders were received from the following proponents for the Supply, Delivery & Placement of Road Resurfacing Category: Crack Sealing: Rigid and Bituminous Road Surfaces (category 4).

 

1.   Colas NSW

2.   Crack Sealing Aust

3.   Pacific Blue Metal

4.   Road Maintenance

5.   Supersealing

6.   Total Crack Sealing

Issues:

All of the above proponents were conforming to tender document requirements.

Options:

The options available to Council with respect to this report are:

 

1.   Recommend approval of a panel of suppliers for nominated category; or

2.   Reject all tenders.

Sustainability Assessment:

•     Environment

On behalf of the Mid North Coast Procurement Alliance Group of Councils, Regional Procurement Initiative has addressed major environmental issues in the form of a compulsory questionnaire in the Tender Schedules.

 

As per Regional Procurement's Tender documents the successful tenderer must comply with the Protection of the Environment Operations Act, 1997, at all times with respect to pollution from noise, air, water, land and waste sources.

•     Social

The supply and delivery of cracked sealing works under this contract are mostly used for civil construction and road maintenance works. Road maintenance works plays an integral part in providing and maintaining infrastructure for the community.

•     Civic Leadership

The tender is consistent with the MyCoffs Community Strategic Plan. Council supports the delivery of high quality, sustainable outcomes for Coffs Harbour. Council also illustrates strong leadership in encouraging local business participation, resulting in permanent and casual employment for Coffs Harbour residents.

 

•     Economic – Broader Economic Implications

There are no major economic impacts on Council in the awarding of this tender and approval will not commit Council to any set order expenditure over the contract period.

•     Economic - Delivery Program/Operational Plan Implications

All orders for the Supply, Delivery and Placement of Road Resurfacing will be based on project requirements that have been approved and budgeted for over each financial year of the term of the contract.

Risk Analysis:

Tender documentation has been developed to minimise Council’s exposure to risk.

 

Quality, safety and environmental risks will be supervised by experienced and qualified Council Project Managers in the engagement of applicable preferred suppliers throughout the term of the contract.

Consultation:

Consultation was undertaken with Council’s Team Leader – Contracts & Procurement and Coastal Works Construction Maintenance team members to discuss this Regional Procurement contract outcome and the evaluation panel recommendation.

Related Policy, Precedents and / or Statutory Requirements:

The calling, receiving and reviewing of tenders was carried out in accordance with Part 7 Tendering of the Local Government (General) Regulations 2005.

 

Tendering procedures were carried out by Regional Procurement Initiative also in accordance with Council policy.

 

Regional Procurement’s Tender Value Selection System was applied during the tender review process to determine the most advantageous offer. Regional Procurement’s policy is that the tender with the highest weighted score becomes the recommended tenderers (refer Confidential Attachment).

Implementation Date / Priority:

The advertised contact is for a three (3) year period with an additional one (1) year option.

Conclusion:

Council should consider the recommendation as outlined in the Confidential Attachment.

 


BS20/09       CitySmart Solutions Commercial Bids

Author:                        Director Business Services

Authoriser:                  Director Business Services

MyCoffs:                      D.2 We have effective use of public resources.

Attachments:              Nil

 

Executive Summary

A response to an external agency tender by a Council commercial business unit is in essence a “binding bid” in that it binds the business unit to enter a contract for the tendered works if the business unit’s tender submission is ultimately accepted as the winning bid by the external agency.

 

Council’s resolution on 28 November 2019 requires all future contracts with a value exceeding $250,000 to be reported to Council prior to execution and therefore also requires any commercial bid exceeding $250,000 from any of Council’s commercial business units to be reported to Council prior to it being submitted to an external agency.

 

The purpose of this report is therefore to request that Council authorises the release of Commercial Bids from Council’s Coastal Works Business Unit in response to one known tender opportunities issued by external agencies.

 

Also, from time to time Council’s CitySmart Solutions commercial business unit receives requests for quotations from other Councils outside the tender process. This report presents to Council three such quotations for external works authorisation should the quotations be accepted, consistent with Council’s resolution applying to all contracts.

 

 

Recommendation:

That Council authorises:

1.   The release the following tender response from Council’s CitySmart Solutions commercial business unit:

1.1. Client Wingecarribee Shire Council / Head Contractor – RFT 6330/20.2 – Tender for Sewer Pump Station Electrical Panel Upgrade.

2.   External works acceptance for the following quotations submitted from Council’s CitySmart Solutions commercial business unit:

2.1. Client Clarence Valley Council - Shannon Creek Dam VSD Upgrades;

2.2. Client MidCoast Council – Fibre Optic Link from New Administration Building to Library; and

2.3. Client MidCoast Council – Fibre Optic Link from New Administration Building to Transgrid Connection (including Treatment Plant Connection).

 

Report

Description of Item:

The following commercial opportunity requires the submission of a tender bid from Council’s CitySmart Solutions commercial business unit:

 

Tender #

 

Description

 

Client

 

Approx .Tender Value

 

Closing Date

Comments

RFT 6330/20.2

Sewer Pump Station Electrical Panel Upgrade

Wingecarribee Shire Council / Head Contractor

Expected value may exceed $250,000

25.02.2019

Upgrade sewer pump station electrical panels by removing the old electrical panels and installing and commissioning new electrical panels, including on site Civil works and supply of Switchboards to 41 sites

 

Also, the following quotations have been submitted outside the tender process at the request of the clients.  For consistency these are presented to Council for external works authorisation should the quotations be accepted.

 

Description

Client

Approx. Works Value

Quotation Date

Comments

Shannon Creek Dam – VSD Upgrades

Clarence Valley Council

Final works value may exceeds $250,000

18.11.2019

Upgrade and replacement of Variable Speed Drives

Fibre Optic Link from New Administration Building to Library

MidCoast Council

Final works value may exceed $250,000

19.12.2019

Design and Installation of Fibre Optic Link

Fibre Optic Link from New Administration Building to Transgrid Connection (including Treatment Plant Connection)

MidCoast Council

Final works value may exceeds $250,000

19.12.2019

Design and Installation of Fibre Optic Link

Issues:

Councils in New South Wales can contract direct with other Councils. Section 55(3)(c) of the Local Government Act 1993 provides an exemption to follow the tender process under this circumstance. However, the quotations are being reported to Council for approval in accordance with Council’s resolution on 28 November 2019 which relates to all contracts.

Options:

Council has the following options to consider in relation to this report:

1.   Adopt the recommendation; or

2.   Forego the potential of external commercial revenue.

Sustainability Assessment:

•     Environment

There are no environmental issues arising from this report.

•     Social

There are no social issues arising from this report.

•     Civic Leadership

The recommended action is in line with Council’s resolved position and advancement of commercial activities.

•     Economic – Broader Economic Implications

Council’s Long Term Financial Plan is predicated on a flow of non-rates revenue from its five commercial business units.

•     Economic - Delivery Program/Operational Plan Implications

The level of expenditure committed to in Council’s current Delivery Program is predicated on a stream of commercial revenue from Council’s commercial business units.

Risk Analysis:

Risks are managed as part of project management.

Related Policy, Precedents and / or Statutory Requirements:

Councils in New South Wales can contract direct with other Councils. Section 55(3)(c) of the Local Government Act 1993 provides an exemption to follow the tender process as follows:

 

55   Requirements for tendering …

(3)   This section does not apply to the following contracts— …

(c)   a contract entered into by a council with another council, …

Implementation Date / Priority:

Immediate upon resolution.

Conclusion:

Significant commercial revenue opportunities will be detrimentally impacted due to the inability of CitySmart Solutions to submit commercial bids in response to opportunities tendered by external clients. This potential risk can be mitigated in the short term by adoption of the recommendation.

Request for quotations submitted by Council’s CitySmart Solutions commercial business unit invited by external agencies are also reported for consistency and recommended for Council’s authorisation.

 

 


BS20/10       Release of Restriction on Use Affecting 64A King Street, Coffs Harbour

Author:                        Team Leader Property Development

Authoriser:                  Director Business Services

MyCoffs:                      B.2 A community achieving its potential

Attachments:              ATT1  BS20/10   Location Plan - 64A King Street, Coffs Harbour

ATT2  BS20/10   Consultant's Report Including Photos

ATT3  BS20/10   CONFIDENTIAL RFS Email Response

Confidential in accordance with Section 10A(2)(a) of the Local Government Act as it contains personnel matters concerning particular individuals (other than Councillors).  

 

Executive Summary

Council has been requested by the legal representative of Mr and Mrs Battaglia who own 64A King Street, Coffs Harbour to release a restriction on use affecting their land.  The restriction was imposed on the land as a requirement of a development consent when the land was created to protect future housing from bushfire risk due to vegetation on an adjoining property that existed at the time.  The vegetation on the adjoining property has subsequently been legally removed which in turn has negated the fire risk to the property at 64A King Street.  Given the events that have occurred it is considered appropriate for Council to release the restriction on use which now provides no purpose.

 

Recommendation:

That Council:

1.    Agree to release the restriction on use that affects 64A King Street, Coffs Harbour.

2.    Agree that all costs associated with this matter will be the responsibility of the proponent.

3.    Agree to execute under seal if necessary any legal documents that maybe required to affect the release of the restriction.

 

Report

Description of Item:

Council has been requested by the legal representative of Mr and Mrs Battaglia who own 64A King Street, Coffs Harbour to release a restriction on use affecting their land.  The restriction was imposed on the land as a requirement of Development Consent no. 1084/17 when the land was created to protect future housing from bushfire risk due to vegetation on an adjoining property that existed at the time.  The restriction was imposed under an 88B Instrument as part of DP1239476 that was registered on 31 January 2018.

 

The restriction terms are as follows:

 

The construction of a dwelling on the burdened lot is subject to the following:

 

·   A 5.3-metre-wide asset protection zone (APZ) along the rear (Western) boundary of the allotment.  The APZ shall be maintained as an inner protection area (IPA) as outlined within section 4.1.3 and appendix 5 of “Planning for Bushfire Protection 2006” and the NSW Rural Fire Service’s document “Standards for asset protection zones”.

·   No dwelling is permitted to be constructed within the required APZ.

·   No dwelling is to be erected upon the lot that exceeds BAL-29 construction as per the requirements of; AS 3959 – “Construction of Buildings in Bushfire Prone Areas” and Addendum Appendix 3 of PBP 2006.

 

Name of person empowered to release, vary or modify restriction.

Coffs Harbour City Council.”

 

The property at 64A King Street has been created as a battle axe lot and has an area of some 552.3 square metres making it a small lot with part of its area accommodating an access handle.  The property remains undeveloped land and is zoned R2 Low Density Residential as are the properties directly to the north, south and east whilst the property to the west is zoned RU2 Rural Landscape.

 

Attachment 1 to this report shows the location of the property and the location of the restriction 5.3 metres wide as it applies to the land.

 

The vegetation on the adjoining property zoned RU2 has subsequently been legally removed which in turn has negated the fire risk to the property at 64A King Street.  Given the events that have occurred it is considered appropriate for Council to release the restriction on use which now provides no purpose.

Issues:

The imposition of the restriction on use was originally required to protect the property and any improvements subsequently erected from bushfire risk.  This risk has now been removed legally and the requirement for the restriction no longer exists.  Its release will not create any issues.

Options:

Council have two options available:

 

1.    Agree to the release of the restriction as proposed which is recommended.

2.    Not agree to the release of the restriction.

Sustainability Assessment:

•     Environment

There is no removal of vegetation proposed as a result of this legal process.

•     Social

The release of the restriction will allow the development of this property in line with the current planning requirements of Council.

•     Civic Leadership

Release of the restriction will facilitate appropriate development of this land now that the bushfire risk has been removed.

•     Economic – Broader Economic Implications

There are no implications.

•     Economic - Delivery Program/Operational Plan Implications

All costs associated with the matter are to be the responsibility of the land owner.  There will be no cost to Council.

Risk Analysis:

There is considered little or no risk in processing the release of the restriction.

Consultation:

Relevant Council staff have advised that the vegetation on the adjoining property to the west and related to this matter has been removed legally and that they support the removal of the restriction on use as proposed by this report.

 

The NSW Rural Fire Service (RFS) have advised in writing on 18 October 2019 That “The NSW RFS does not object to the “building envelope” restriction being removed from the title (applicable to the rear lot), subject to CHCC accepting that the western hazard has been removed legally”.

 

City and Country Enviroservices who have been engaged by the owners surveying consultant provided an updated report on 1 August 2019 detailing that vegetation previously existing in June 2017 has now been removed.  Their report went on to advise that “there is now no significant vegetation, constituting a fire hazard to the north or west of the site”.

 

The updated report from City and Country Enviroservices, which documents and shows at Figure 1 and 2 photographs of the removed vegetation and retained banana plants adjoining the subject property is included as Attachment 2, and the documented response from RFS is included as Confidential Attachment 3 to this report.

Related Policy, Precedents and / or Statutory Requirements:

The release of the restriction affecting the property requires a resolution of Council pursuant to Section 377(1) (h) of the Local Government Act 1993.

 

Council is the benefiting party to the restriction and is empowered by the 88B instrument with the authority to release the restriction.

Implementation Date / Priority:

The matter will be actioned immediately upon Council’s resolution by executing the appropriate legal documentation.

Conclusion:

The restriction on use as it currently applies to 64A King Street was required on the property to protect it and subsequent development from Bushfire risk that existed at the time the property was originally created.  The vegetation that originally created the risk has now been legally removed and as such there is currently no risk to the property and no need for the restriction to apply.  It is considered appropriate and good planning practice to remove the restriction.

 

 


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SC20/01       Development Application No. 0199/20 - Demolition (of Existing Buildings) - 23 Gordon Street (Lot 20, Section 6, DP 758258), 25 Gordon Street (Lot B, DP 346105) and 27-31 Gordon Street (Lot 123, DP 749233), Coffs Harbour

Author:                        Development Assessment Officer

Authoriser:                  Director Sustainable Communities

MyCoffs:                      C.1 Liveable neighbourhoods with a defined identity

Attachments:              ATT1  SC20/01   Development Application No. 0199/20 - 4.15 Evaluation Report

ATT2  SC20/01   Development Application No. 0199/20 - Plan

ATT3  SC20/01   Development Application No. 0199/20 - Draft Conditions

ATT4  SC20/01   CONFIDENTIAL Development Application No. 0199/20 - Submissions

Confidential in accordance with Section 10A(2)(e) of the Local Government Act as it contains information that would, if disclosed, prejudice the maintenance of law.

ATT5  SC20/01   Development Application No. 0199/20 - Development Assessment Summary  

      

 

 

Executive Summary

This report describes Development Application No. 0199/20 for demolition of the existing buildings on 23 Gordon Street (Lot 20, Section 6, DP 758258), 25 Gordon Street (Lot B, DP 346105) and 27-31 Gordon Street (Lot 123, DP 749233), Coffs Harbour and provides a copy of assessment documents for the application’s determination.

At its meeting of 12 September 2019, Council resolved the following:

That Council’s development application 0199/20DA for the demolition of building at 27-31 Gordon Street, Coffs Harbour be brought back to Council for decision.

At its meeting of 12 October 2017, Council adopted the ‘Development Applications - Consideration by Council Policy’, which outlined:

That development applications for approval involving substantial aspects of the following elements be referred to Council for determination:

-     Significant public interest and community input;

-     A proposed variation to the Local Environmental Plan that varies from the development standard by more than 10%;

-     Significant land use; and

-     Major environmental issues.

Following public exhibition of the application Council received sixty submissions. Accordingly, this matter is reported to Council for determination due to the resolutions above and ‘significant public interest and community input’.

This application has been assessed externally by Armidale Regional Council.  A copy of a Summary Report, S4.15 Evaluation Report and Draft Conditions that they have provided as documentation of their assessment is appended to this report.

 

Recommendation:

That Council:

1.       Approve Development Application No. 0199/20 for Demolition (of existing buildings) at 23 Gordon Street (Lot 20, Section 6, DP 758258), 25 Gordon Street (Lot B, DP 346105) and 27-31 Gordon Street (Lot 123, DP 749233), Coffs Harbour subject to the conditions in Attachment 3.

2.       Advise persons who made a submission on Development Application No. 0199/20 of Council’s decision.

 

REPORT:

Applicant:

Coffs Harbour City Council 

Land:

23 Gordon Street (Lot 20, Section 6, DP 758258), 25 Gordon Street (Lot B, DP 346105) and 27-31 Gordon Street (Lot 123, DP 749233), Coffs Harbour

Zone:

B3 – Commercial Core

Description:

Demolition (of existing buildings)

Description of Item:

•     The Site

The site consists of three separate land parcels, as follows:

-     23 Gordon Street (Lot 20, Section 6, DP 758258)

-     25 Gordon Street (Lot B, DP 346105)

-     27-31 Gordon Street (Lot 123, DP 749233)

The site is located within the Coffs Harbour central business district.  The three land parcels have an area of approximately 3248m².

A large fig tree is located within Riding Lane and overhangs 27-31 Gordon Street (Lot 123, DP 749233).

•     The Development

The development involves the demolition of all existing buildings and associated infrastructure, including disconnection of main utility services (power, telecommunications, water, sewer and stormwater) and removal of redundant utility networks within the site. 

The development does not propose removal of existing slabs, foundations, bitumen/asphalt/concrete pavements and paving. 

Existing vegetation is proposed to be removed and protection of the fig tree is proposed during demolition works.

Issues:

In recognition that Coffs Harbour City Council is the applicant for the subject development application and the strong community interest in the broader development opportunities, the assessment of the application has been undertaken by Armidale Regional Council

It should also be noted that at its meeting of 12 September 2019, Council resolved:

That Council’s development application 0199/20DA for the demolition of building at 27-31 Gordon Street, Coffs Harbour be brought back to Council for decision.

The assessment issues for the development application are outlined and considered in the Section 4.15 Evaluation Report provided by Armidale Regional Council (Attachment 1 to this report).  This includes an assessment of the submissions that have been received on the application.

Options:

1.   Adopt the recommendation thereby granting approval to the application, subject to conditions.

2.   Refuse the application and list reasons for refusal.

Sustainability Assessment:

•     Environment

A complete assessment of potential environmental impacts is provided in the Section 4.15 Evaluation Report provided by Armidale Regional Council (Attachment 1 to this report).

•     Social

A complete assessment of potential social impacts is provided in the Section 4.15 Evaluation Report provided by Armidale Regional Council (Attachment 1 to this report).

•     Civic Leadership

The proposed development is considered to be consistent with the ‘MyCoffs Community Strategic Plan’ particularly the ‘A Place for Community’ theme, which requires amongst other things that development occur in a way that is environmentally, socially and economically responsible.

•     Economic – Broader Economic Implications

The proposed development is not expected to result in any significant broader economic implications.

•     Economic - Delivery Program/Operational Plan Implications

There are no implications for Council’s Delivery Program/adopted Operational Plan.

Risk Analysis:

A risk analysis has been undertaken and it is considered that approval of the development application as recommended, does not pose a significant risk to Council.

Consultation:

The development was advertised and notified in accordance with the requirements of the Coffs Harbour Development Control Plan 2015 from 09 October 2019 to 22 October 2019.  Sixty submissions were received.

A full copy of all of the submissions is a confidential attachment to this report (Attachment 4 to this report) as the submissions may contain personal or private information or other considerations against disclosure as prescribed under the Government Information (Public Access) Act 2009.

Related Policy, Precedents and / or Statutory Requirements:

The statutory instruments relevant to the development application assessment are outlined and considered in the Section 4.15 Evaluation Report provided by Armidale Regional Council (Attachment 1 to this report).

Implementation Date / Priority:

In the event that Council adopts the recommendation, a formal notice of determination will be issued for the development application. A formal notice of determination is valid for five years and the applicant can act on the development consent at any time within that period, subject to meeting any relevant conditions of the consent.

Conclusion:

A comprehensive assessment of the application has been undertaken in accordance with all statutory requirements.  It is recommended that the application be approved subject to the Draft Conditions provided by Armidale Regional Council (Attachment 3 to this report).

 

 


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SC20/02       Waive Fees (Various) for Bushfire Affected Property Owners Seeking to Repair or Rebuild Damaged and Destroyed Dwellings and Associated Structures

Author:                        Section Leader Compliance and Regulatory Enforcement

Authoriser:                  Director Sustainable Communities

MyCoffs:                      B.1 A thriving and sustainable local economy

Attachments:              Nil

 

Executive Summary

The recovery from the recent bushfires that has devastated many areas of NSW including parts of the Coffs Harbour local government area is progressing.  The NSW Rural Fire Service (RFS) has been conducting Building Impact Assessments of impacted properties and buildings as part of the initial recovery phase.  Data is being collated and recorded relevant to each local government area.  Data, as at 8 January 2020, for the Coffs Harbour City Council area indicates that 100% of Building Impact Assessments have been completed with results as follows:

-     17 homes destroyed, 7 damaged

-     2 facilities destroyed

-     27 outbuildings destroyed, 7 damaged

-     41 impacted rural landholders (as at 08/01/2020) 

The NSW and Australian Governments have announced a range of initiatives that will assist those affected and includes funding being provided for the clean-up of homes and properties damaged and destroyed. There is also opportunity for Council to assist fire affected property owners with the financial strain associated with rebuilding through the waiver of various fees and charges.  This report sets out a range of fees and charges recommended for waiver for property owners identified as being impacted through the RFS Building Impact Assessment.

 

Recommendation:

That Council waive rebuilding development and construction related application fees and charges for bushfire impacted property owners identified by the Rural Fire Service Building Impact Assessment process.

 

Report

Description of Item:

As Council may recall, in response to the then emerging bushfire threat, Council resolved at its meeting of 14 November 2019 to exempt waste fees for greenwaste as set out in the below resolution:

That Council:

Delegate authority to the General Manager to exempt the community of the Coffs Harbour Local Government Area from fees and charges related to the disposal of household green waste transported to Councils Englands Road Waste Management Facility for the following four weekends comprising 16th and 17th November, 23rd and 24th November, 30th November and 1st December, 7th and 8th December. The loads must only contain household green waste being uncontaminated and not containing timber palings, treated timbers, palm trunks, logs, stumps or mixed waste.

Further, at its meeting of 28 November 2019, Council considered a Mayoral Minute on the bushfire emergency within the Orara Valley, and resolved the below:

That Council:

1.    Convey our deepest sympathy to the fire affected communities and especially those who have recently lost houses and other buildings.

2.    Acknowledge the amazing ongoing efforts of the RFS, community services, and other emergency agencies, including our own Council staff, in response to the fires.

3.    Thank the previously unheralded local community leaders and groups who have appeared out of the ranks to rally their communities around those who need it.

4.    Thank all the volunteers both locally and interstate who have come to our aid and also acknowledge the ongoing State and Federal Government recovery support.

5.    Notes that a temporary supply of free potable tank water replenishment to fire affected households in the RFS mapped fire zones has recently been provided.  

6.    Actively promotes the Rates, Charges and Fees – Financial Hardship Policy, including payment arrangements (deferred payments) and the writing-off of interest, where applicable.

7.    Work with Clarence Valley Council on a possible Blaze Aid camp at Glenreagh or Nana Glen.

8.    Continue to work closely with the North Coast Regional Bushfire Recovery Committee to ensure all affected residents within our Local Government Area receive the assistance they require to recover from the event.

As we enter the bushfire recovery phase, focus is now turning to the rebuilding of damaged houses and structures.  Fire damaged and destroyed homes will in many cases require property owners to seek and obtain a range of approvals before the repair or rebuilding phase can be commenced.  It may be some time before owners can return to their properties and recommence occupation of their repaired and new homes.

The RFS Building Impact Assessment identified the following number of properties as being impacted by the Liberation Trail Fire in late 2019:

-     17 homes destroyed, 7 damaged

-     2 facilities destroyed

-     27 outbuildings destroyed, 7 damaged

-     41 impacted rural landholders (as at 08/01/2020) 

The affected property owners impacted by damage or loss of their homes will need to seek approval to rebuild in accordance with the relevant NSW planning provisions.  It is expected that the rebuilding process may encompass delays given the scale and widespread extent of the bushfire impacts and the resources involved across all facets of the building and development processes.

Whilst the need to obtain legislative approvals cannot be waived, Council has the opportunity to waive a range of fees and charges to assist and ease the financial burden on impacted property owners. The fee waivers would only be considered in relation to the properties identified through the RFS Building Impact Assessment as being damaged or destroyed that seek to repair or rebuild their destroyed homes and associated buildings.  

The following fees and charges are an indicative list of the development related fees being recommended for Council’s consideration to waiver:

Development Applications and Related Approvals

-     Development Application fee

-     Development Application Notification fee

-     Complying Development Certificate fee

-     Construction Certificate and Inspection fees

-     Private Certifier submitted Complying Development/Construction Certificate Lodgement fee 

-     Bushfire Attack Level Assessment fee

-     Plumbing and Drainage Application and Inspection fees

-     Amendment to Onsite Sewer Management System and Inspection fees

-     Search of building records fee

The State Government are in the process of considering fee waiver for State agency related fees. Council staff will continue to highlight the opportunity for State Government to waiver relevant fees in upcoming meetings with State agencies.

Other Charges

There may be potential to waive other property related charges which can be dealt with in accordance with Council’s existing hardship consideration framework.  As set out by Council on 28 November 2019, affected property owners are encouraged to contact Council to discuss their individual circumstances in order to fully explore and provide assistance where provisions exist.

Issues:

It is understood that the number of homes and associated structures identified by the RFS Building Impact Assessment process as being damaged or destroyed was not undertaken with consideration of the subject building’s approval status.  It is likely that a number of the buildings do not have a relevant approval and/or may not be benefitted by a dwelling entitlement.  This will be a likely limiting factor in regard to the number of property owners who seek formal approval to rebuild and thereby qualify for fee waivers.

State planning provisions allow a range of farm buildings and structures ancillary to dwelling house to be constructed without need for formal approval subject to compliance with the relevant development standards provided for in the legislation.  This also will be a factor in terms of the number of applications that are submitted for Council approval and may otherwise benefit from a fee waiver.

It is expected there will be a small spike in applications seeking development and construction approval to repair or replace damaged or destroyed homes and associated structures. The increase in applications is expected to be manageable within the existing resources.  Any associated foregone income is not expected to have a significant impact on the budgets assigned to these activities.

Options:

-     Option 1 Provide fees and charges relief to bush fire impacted property owners identified through the RFS Building Impact Assessment.

-     Option 2 Apply Council’s adopted fees and charges. 

This report recommends that Council adopt option 1.

Sustainability Assessment:

•     Environment

There are no significant considerations relevant from an environmental perspective.

•     Social

The impacts from the Liberation Trail bushfire is causing significant emotional and financial stress, particularly on property owners who have been left homeless.  The provision of financial assistance through the waiver of various Council fees and charges will assist and ease the financial impacts on bushfire affected property owners. 

•     Civic Leadership

The provision of financial assistance through the waiver of fees and charges demonstrates Council’s awareness and empathy toward the property owners who have been affected by this natural disaster.

•     Economic – Broader Economic Implications

The rebuilding process is likely to result in an increase in economic activity within the region, amongst trade service businesses.  It may also have a positive impact on productivity of employed residents within the businesses they work in which can produce positive economic benefits.  The waiving of the fees and charges is not expected to have any negative impacts from a broader economic perspective.   

•     Economic - Delivery Program/Operational Plan Implications

Revenue forgone by the waiving of the fees and charges recommended within the report is revenue that was not expected to be generated by Council when the budget was prepared and adopted by council as the bushfires were not a consideration at this time.  The foregoing of any revenue arising from these considerations will have no material effect on the financial position of the Council. There will be some additional resource which will be used in assessing applications and associated work however it is not envisaged that this will place a significant increase in demand on the resources already in place.

•     Risk Analysis:

There is minimal risk associated with Council resolving to adopt the recommendations as proposed. 

There is potential reputational risk if the recommendations are not adopted. A number of Council’s have either, or are in the process, of adopting similar positions that will provide fee relief to bushfire affected property owners.  The NSW Government is also in the process of considering the waiver of State based fees associated with development application related assessment processes.

Consultation:

The proposed waiver of fees and charges has been considered in consultation with relevant internal staff with budgetary oversight considerations.

Related Policy, Precedents and / or Statutory Requirements:

The following legislation / Council Policy is relevant giving consideration to waiver fees:

-     Local Government Act 1993 - Section 567

-     Rates, Charges and Fees – Financial Hardship Policy

Implementation Date / Priority:

The waiver of fees and charges will be implemented in accordance with the provisions of this report as they arise upon receipt of relevant applications. Retrospective consideration will also be applied to any cases meeting the provisions of this report that may arise prior to the adoption of the report recommendations.

Conclusion:

The impacts from the devastating bushfires have been substantial and none more so than to the property owners and residents that have lost their houses.  The waiver of Council’s fees and charges is one way that Council can demonstrate understanding and empathy to the affected parties and assist them with rebuilding their homes and their lives.

  


SI20/03         Coastal Works Commercial Bids

Author:                        Directorate Coordinator

Authoriser:                  Director Sustainable Infrastructure

MyCoffs:                      D.2 We have effective use of public resources.

Attachments:              Nil

 

Executive Summary

A response to an external agency tender by a Council commercial business unit is in essence a “binding bid” in that it binds the business unit to enter a contract for the tendered works if the business unit’s tender submission is ultimately accepted as the winning bid by the external agency.

Council’s recent adoption of a motion to require all future contracts with a value exceeding $250,000 to be reported to Council prior to execution therefore also requires any commercial bid exceeding $250,000 from any of Council’s commercial units to also be reported to Council prior to it being submitted to an external agency.

The purpose of this report therefore is to request that Council authorises the release of Commercial Bids from Council’s Coastal Works Business Unit in response to two known tender opportunities issued by external agencies.

 

Recommendation:

That Council authorises the release the following Tender Responses from Council’s Coastal Works Commercial Business Unit:

1.       Client Tamworth Regional Council – T052/2020 – Tender for upgrading of two bridges, Lucella Creek and Middleton Creek; and

2.       Client Rail First JV – N2NS – Tender for work packages for Narrabri to North Star Inland Rail Project.

 

Report

Description of Item:

The following commercial opportunities require the submission of bids from Council’s Coastal Works business unit:

Tender #

Description

Client

Approx Tender Value

Closing Date

Comments

T052/2020

Upgrading of two bridges, Lucella Creek and Middleton Creek

Tamworth Regional Council

Expected contract value exceeds $250,000

18.02.2020

Upgrade required for HML B-Double loading

N2NS

Work packages for Narrabri to North Star (N2NS) Inland Rail Program

Rail First JV

Expected contract value exceeds $250,000

Unknown

Rail First is a joint venture of Downer and Seymour White

 

Issues:

Ensuring the timeliness of the Coastal Works commercial bid process prior to tender closing dates.

Options:

1.   Adopt the recommendation.

2.   Forego the potential of external commercial revenue.

Sustainability Assessment:

•     Environment

There are no environmental issues arising from this report.

•     Social

There are no social issues arising from this report.

•     Civic Leadership

The recommended action is in line with Council’s resolved position and policy on commercial activities.

•     Economic – Broader Economic Implications

Council’s Long Term Financial Plan is predicated on a flow of non-rates revenue from its five commercial business units.

•     Economic - Delivery Program/Operational Plan Implications

The level of expenditure committed to in Council’s current Delivery Program is predicated on a stream of commercial revenue from Council’s commercial business units.

Risk Analysis:

Coastal Works operates a commercial risk reserve.

Consultation:

All internal stakeholders have been consulted.

Related Policy, Precedents and / or Statutory Requirements:

Coastal Works Commercial policy and practice.

Implementation Date / Priority:

Immediate upon resolution.

Conclusion:

Significant commercial revenue opportunities will be detrimentally impacted due to the inability of Coastal Works to submit commercial bids in response to opportunities tendered by external clients.

This potential risk can be mitigated in the short term by adoption of the Recommendation.