Ordinary Council Meeting Minutes                                                11 February 2021

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MINUTES

coffs harbour CITY cOUNCIL
Ordinary Council Meeting
Council Administration Building

Cnr Coff and Castle Streets, Coffs Harbour
ON
Thursday, 11 February 2021 AT 5.00pm

 

PRESENT:              Cr Denise Knight, Cr Michael Adendorff, Cr Paul Amos, Cr John Arkan,
Cr George Cecato, Cr Keith Rhoades, Cr Tegan Swan, Cr Sally Townley (via video link)

STAFF:                    General Manager, Director Sustainable Infrastructure, Director Sustainable Communities, Director Business Services and Executive Assistant

 

Leave of Absence       Nil

 

Opening of Ordinary Meeting

The meeting commenced at 5.00pm with the Mayor, Cr D Knight in the chair.

 

Acknowledgement of Country

We respectfully acknowledge the traditional custodians of the land on which we meet, the Gumbaynggirr people, who have cared for this land since time immemorial. We pay our respects to their Elders, past, present and emerging, and commit ourselves to a future with reconciliation and renewal at its heart.

 

Statement in relation to Recording of Meetings

The mayor reminded the Chamber that the meeting is being recorded and broadcast live, the recording will be made publicly available on Council’s website once the minutes are finalised.

 

Cr Rhoades informed the Council and the community of the passing of Lady Mayoress Faye Smith, wife of the late John Smith, Shire President and Mayor of Coffs Harbour and in so doing so acknowledged her commitment to the Coffs Harbour community.

 

Public forum commenced at 5.00pm

No public forum.

 


 

Disclosure of Interest

Councillor

Items

Type of Interest

Cr Michael Adendorff

BS21/04 Deferred 2020/21 City Centre Special Rate

Pecuniary interest as he has property interests.

 

Apologies

No apologies.

 

REQUEST FOR LEAVE OF ABSENCE

No request for leave of absence.

 

Confirmation of Minutes

2021/1

Resolved (Cr John Arkan / Cr George Cecato)

That the minutes of the Ordinary Meeting held on 10 December 2020 be confirmed.

 

The Motion on being put to the meeting was carried unanimously.

Carried

 

Directorate Reports - Business Services

 

BS21/01          Bank and Investment Balances for November 2020

 

Executive Summary

Council’s Bank Balances and Investments as at 30 November 2020 totalled $233,033,949.38.  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 Delivery Program and associated Operational Plans.

 

2021/2

Resolved (Cr Paul Amos / Cr Tegan Swan)

That Council note the bank balances and investments totalling $233,033,949.38 (including from loans, Developer Contributions and other avenues that form the restricted accounts and are committed for future works) as at 30 November 2020.

 

The Motion on being put to the meeting was carried unanimously.

Carried

 

 

 

BS21/02          Bank and Investment Balances for December 2020

 

Executive Summary

Council’s Bank Balances and Investments as at 31 December 2020 totalled $230,076,618.02.  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 Delivery Program and associated Operational Plans.

 

2021/3

Resolved (Cr George Cecato / Cr Tegan Swan)

That Council note the bank balances and investments totalling $230,076,618.02 (including from loans, Developer Contributions and other avenues that form the restricted accounts and are committed for future works) as at 31 December 2020.

 

The Motion on being put to the meeting was carried unanimously.

Carried

 

 

 

BS21/03          Monthly Financial Performance Report for the Month Ended 30 November 2020

 

Executive Summary

This report presents the Monthly Financial Performance Report for the month ended 30 November 2020. The report provides information on the actual to budget position at the financial statement level and capital expenditure reports for the current financial year. As at 30 November 2020 the budget year to date surplus is $66.9 million with the actual year to date surplus being $68.4 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 $137 million with $20.4 million expended to the end of November.

 

 

2021/4

Resolved (Cr George Cecato / Cr Tegan Swan)

That Council note the Monthly Financial Performance Report for 30 November 2020.

 

The Motion on being put to the meeting was carried unanimously.

Carried

 

Cr Michael Adendorff declared an interest in the following item, vacated the chamber and took no part in the discussion or voting, the time being 5:09pm.

 

 

BS21/04          Deferred 2020/21 City Centre Special Rate

 

Executive Summary

Council has previously adopted a revised budget for the expenditure of City Centre Special Rate monies to reflect the priorities recommended by the City Centre Master Plan Committee (CCMPC), particularly in light of the deferral of the 2020/21 Special Business Rate.  This report discusses the issue of recouping the deferred rate revenue following advice received from the Independent Pricing and Regulatory Tribunal (IPART).

 

It is recommended that Council not recoup the previously deferred 2020/21 Special Business Rate revenue, in accordance with the recommendation from the CCMPC and based on the advice received from IPART.

2021/5

Resolved (Cr Tegan Swan / Cr George Cecato)

That Council not recoup the previously deferred 2020/21 Special Business Rate revenue.

 

The Motion on being put to the meeting was carried unanimously.

Carried

 

Cr Michael Adendorff returned to the meeting, the time being 5.09pm.

 

 

BS21/05          Coffs Harbour Airport Enterprise Park Funding Update

 

Executive Summary

In November 2017, Council resolved to advance the initial stages of the Airport Enterprise Park (AEP) development and seek ministerial approval for internal loan funding from the Water and/or Sewer Funds of $10.5 million.  The funding has been subsequently approved by the minister from the Sewer Fund and included in Council’s budgets.

 

At its meeting of 14 November 2019, Council received an update report on preliminary works, cost breakdown and funding for the full AEP development of approximately $25 million.  At that time, to enable the construction of the full project to proceed, Council resolved to adopt a funding model of $10 million Federal Government Grant, $10.5 million internal loan from the Sewer Fund and $4.5 million through an interim internal loan from the Plant and Vehicle Replacement Reserve, noting that the final funding model would be determined following the outcome of Council’s grant application to the State Government.

 

With a final State Government grant outcome now confirmed the final funding for the AEP development is as follows:

 

·      $10 million Federal Government Grant (Regional Growth Fund)

·      $10 million State Government Grant (Restart NSW Fund)

·      $5 million Council Internal Loan (Sewer Fund)

 

2021/6

Resolved (Cr George Cecato / Cr Michael Adendorff)

That Council notes the final funding for the Airport Enterprise Park development as follows:

·     $10 million Federal Government Grant (Regional Growth Fund)

·     $10 million State Government Grant (Restart NSW Fund)

·     $5 million Council Internal Loan (Sewer Fund)

 

The Motion on being put to the meeting was carried unanimously.

Carried

 

 

 

BS21/06          Release of Positive Covenant - 91 Mimiwali Drive, Bonville

 

Executive Summary

Council has been requested by the local firm, Resource Design and Management Pty Ltd, on behalf of the owners of 91 Mimiwali Drive Street, Bonville, to release a Positive Covenant affecting their land.  The Positive Covenant was imposed on the land as a requirement of a Development Consent for the Sawtell Ridge Estate in an early stage.  However, subsequent stages that have been developed have made the imposition of positive covenant unreasonable and not relevant.  Given the events that have occurred and the current situation it is considered appropriate for Council to release the Positive Covenant.

 

2021/7

Resolved (Cr John Arkan / Cr George Cecato)

That Council:

1.    Agree to release the Positive Covenant that affects 91 Mimiwali Drive, Bonville as detailed in the report.

2.    Agree that all costs associated with this matter be the responsibility of the owners of 91 Mimiwali Drive, Bonville or their representative.

3.    Agree to execute all required legal documents to facilitate the release of the Positive Covenant.

 

The Motion on being put to the meeting was carried unanimously.

Carried

 

 

 

BS21/07          Draft Plan of Management for Nine Crown Reserves

 

Executive Summary

Council has a statutory obligation under both the Crown Land Management Act 2016 (CLM Act) and the Local Government Act 1993 (LG Act) to adopt Plans of Management (PoMs) for all Crown reserves that are classified as ‘community’ land and for which Council has been appointed land manager.  The statutory timeframe for the adoption of PoMs is on or before 30 June 2021; however, indications have been given that this timeframe will be extended.

 

A draft PoM for Nine Crown Reserves (Attachment 1) has been finalised following wide consultations across multiple groups of Council.  It is now ready for consideration by Council and if agreed, a resolution made to refer the document to the Department of Planning, Industry and Environment (DPIE).  It is also a requirement that Native Title Manager advice (Attachment 2) be considered by Council prior to the draft PoM being referred to DPIE.

 

 

After DPIE have reviewed and approved the draft PoM, it must be publicly exhibited for not less than 28 days and the opportunity for submissions to be made over a period of not less than 42 days.  The draft PoM, including any revisions resulting from public exhibition, will then be presented to Council for formal adoption.

 

2021/8

Resolved (Cr John Arkan / Cr Tegan Swan)

That Council:

1.    Refer the draft Plan of Management for Nine Crown Reserves as listed:

·      Crown Reserve 46273 Drainage Reserve, Market Street, Woolgoolga;

·      Crown Reserve 68342 Former Night Soil Depot, Crossley Road, Woolgoolga;

·     Crown Reserve 80935 Part of Park Avenue Car Park, 7A Park Avenue, Coffs Harbour;

·      Crown Reserve 84092 Former Red Rock Waste Depot, 339 Red Rock Road, Red Rock;

·      Crown Reserve 85429 Drainage Reserves between Schafer & Rudder Streets & Ford Street to Corindi River, Red Rock;

·      Crown Reserve 86561 Reserve for Public Recreation and Access, 530 Orara Way, Coramba;

·      Crown Reserve 91265 Corindi SES & RFS Brigade Station, 31 Coral Street, Corindi Beach;

·      Crown Reserve 91584 Former Bruxner Park RFS, 220 Bruxner Park Road, Korora; and

·      Crown Reserve 97097 Plantation Reserve off Nightingale Street, Woolgoolga

to the Crown Lands Division of Department of Planning, Industry and Enivronment to obtain approval to place the document on public exhibition.

2.    Place the draft Plan of Management for Nine Crown Reserves on public exhibition for a period of at least 42 days once approval is received.

 

The Motion on being put to the meeting was carried unanimously.

Carried

 

 

Directorate Reports - Sustainable Communities

 

SC21/01          Bushfire Recovery Action Plan 2020-2022 - December 2020 Quarterly Update

 

Executive Summary

Between October and December 2019, the Coffs Harbour Local Government Area (LGA) was directly impacted by three bushfires.  In particular, the fast burning Liberation Trail fire posed an extreme risk to many communities within the LGA and the locality of Nana Glen was devastated on November 12.  In total, 17 dwellings were lost, seven homes damaged and a large number of buildings and infrastructure damaged.

 

The Bushfire Recovery Action Plan 2020-2022 summarises Council’s response to the bushfire event and outlines the recovery process for bushfire affected residents, the Orara Valley community and the broader LGA.

 

This Plan has been prepared to provide an overview of the social, economic, environmental and infrastructure recovery activities and programs including the allocation of State Government and Federal Government Disaster Recovery Funding Arrangement (DRFA) funding.

 

This report provides a quarterly update on the progress of the plan highlighting the status of projects and any changes or amendments that were required.

 

2021/9

Resolved (Cr John Arkan / Cr Tegan Swan)

That Council note the December 2020 quarterly update against the deliverables in the Bushfire Recovery Action Plan 2020-2022.

 

The Motion on being put to the meeting was carried unanimously.

Carried

 


 

 

SC21/02          RFT-1324-TO Building Works for the West Woolgoolga Sports Complex

 

Executive Summary

The West Woolgoolga Sports Complex (WWSC) project is the development of a new integrated sport and community facility, located on the north western end of the township of Woolgoolga.

The project is jointly funded by all three levels of government.

Following completion of detailed design in late 2020, Council released a Design and Construct Tender (RFT-1324-TO) for Building Works for the West Woolgoolga Sports Complex.

Tenders have now been received and assessed. All conforming tenders received were above the project budget, and an exhaustive value management process was undertaken to reduce the deficit as much as possible, without compromising the project deliverables as detailed in both the NSW State Government and the Federal Government funding agreements.

This report recommends that Council adopt the recommendation in the attached confidential report.

 

2021/10

Resolved (Cr Tegan Swan / Cr John Arkan)

That Council:

1.         In accordance with Clause 178(1)(a) of the Local Government (General) Regulation 2005, accepts the tender offer of the proponent Lahey Constructions Pty Ltd, ABN 36 002 314 810, for Contract RFT-1324-TO Building Works for the West Woolgoolga Sports Complex for the lump sum contract amount of $26,924,125.94 including GST.

This recommendation is made on the basis that:

1.1.     The tender offer is the most suitable and advantageous following the application of Council’s Tender Value Selection System; and

1.2.     The successful Proponent has the necessary experience in similar works, with their ability and performance references assessed as being satisfactory; and

1.3.     The tenderer’s financial capacity is acceptable

1.4.     The successful proponent is willing to enter into a binding legal agreement with Council for the works

2.         Delegate authority to the General Manager to execute the contract documents.

3.         Allocate an additional $4.165 million to be expended on the project, via an external loan and this be reflected in the March 2021 Quarterly Budget Review Statement.

The Motion on being put to the meeting was carried unanimously.

Carried

 

 

SC21/03          Naming - Wiigulga Sports Complex

 

Executive Summary

The West Woolgoolga Sports Complex will be an inclusive, vibrant and healthy community space for locals and visitors to gather, play, compete, practice, learn, perform and celebrate.

Various stakeholders, including Council’s Yandaarra Aboriginal Advisory Committee and the Local Aboriginal Land Council, have proposed for the naming of the site (currently referred to as the West Woolgoolga Sports Complex) to be named Wiigulga Sports Complex to recognise its significance to the Gumbaynggirr and Garby community.

Consultation relating to the naming was undertaken with the Yandaarra Aboriginal Advisory Committee, the Coffs Harbour District Local Aboriginal Land Council, the Garlambirla Guuyu Girrwaa Elders Corporation and Aboriginal community members who have a connection to the historical site. All stakeholders consulted have recommended and endorsed the naming proposal.

 

 

2021/11

Resolved (Cr John Arkan / Cr Tegan Swan)

That Council:

1.       Adopt the proposal to name the future development site currently referred to as West Woolgoolga Sports Complex as ‘Wiigulga Sports Complex’, 2033 Solitary Islands Way, Woolgoolga.

2.       Submit an application to the Geographical Names Board of New South Wales to have the site named as ‘Wiigulga Sports Complex’.

3.       Write to the project funding partners including Federal and State Government to advise of the name change.

 

The Motion on being put to the meeting was carried unanimously.

Carried

 

 

 

SC21/04          Coffs Harbour Local Growth Management Strategy - Chapter 8 Employment Lands - Response Letter from NSW Government

 

Executive Summary

At its Ordinary Meeting of 26 November 2020, Council reviewed a conditional approval from the NSW Government dated 27 October 2020 for the Coffs Harbour Local Growth Management Strategy – Chapter 8 Employment Lands (referred to for the remainder of this report as ‘Chapter 8 Employment Lands’). Chapter 8 Employment Lands was updated in accordance with the conditional approval and presented to Council at that meeting; and is now in effect.

The conditional approval advised that the North Boambee Valley West Investigation Area and the South Bonville Investigation Area were not approved for inclusion within Chapter 8. At that meeting, Council resolved to send a request to the NSW Government seeking a detailed justification for the two areas being eliminated from Chapter 8 Employment Lands. The detailed justification was received on 9 December 2020 (Attachment 1).

 

 

Motion (Cr John Arkan / Cr Keith Rhoades)

That Council:

1.      Note the response received from the NSW Government in relation to the Coffs Harbour Local Growth Management Strategy – Chapter 8 Employment Lands (Attachment 1).

2.      Resolve to undertake further studies to provide evidence for the inclusion of the North Boambee Valley West Investigation Area.

3.      Notify those who made a submission to the draft Coffs Harbour Local Growth Management Strategy – Chapter 8 Employment Lands of the response from the NSW Government.

 

 

Amendment

 

Motion (Cr George Cecato / Cr Tegan Swan)

That Council:

1.    Note the response received from the NSW Government in relation to the Coffs Harbour Local Growth Management Strategy – Chapter 8 Employment Lands (Attachment 1).

2.    Receive a further report outlining a proposed scope of works and associated costing to undertake further environmental and flooding investigation on the North Boambee Valley West Investigation Area.

3.    Notify those who made a submission to the draft Coffs Harbour Local Growth Management Strategy – Chapter 8 Employment Lands of the response from the NSW Government.

 

 

Cr Swan gave notice of a Foreshadowed Motion.

 

For:         Crs Cecato and Rhoades

Against:  Crs Knight, Adendorff, Amos, Arkan, Swan and Townley

 

The AMENDMENT on being put to the meeting was LOST.

 

 

Motion

 

(Cr John Arkan / Cr Keith Rhoades)

That Council:

1.      Note the response received from the NSW Government in relation to the Coffs Harbour Local Growth Management Strategy – Chapter 8 Employment Lands (Attachment 1).

2.      Resolve to undertake further studies to provide evidence for the inclusion of the North Boambee Valley West Investigation Area.

3.      Notify those who made a submission to the draft Coffs Harbour Local Growth Management Strategy – Chapter 8 Employment Lands of the response from the NSW Government.

 

For:         Crs Arkan and Rhoades

Against:  Crs Knight, Adendorff, Amos, Cecato, Swan and Townley

 

The MOTION on being put to the meeting was LOST.  Cr Swan’s Foreshadowed Motion was brought forward as follows:

 

 

Foreshadowed MOTION

2021/12

Resolved (Cr Tegan Swan / Cr Sally Townley)

That Council:

1.    Note the response received from the NSW Government in relation to the Coffs Harbour Local Growth Management Strategy – Chapter 8 Employment Lands (Attachment 1).

2.    Notify those who made a submission to the draft Coffs Harbour Local Growth Management Strategy – Chapter 8 Employment Lands of the response from the NSW Government.

 

For:         Crs Knight, Adendorff, Amos, Cecato, Swan and Townley

Against:  Crs Arkan and Rhoades

Carried

 

 

 

SC21/05          Investigation into Fencing and Signage for Koala Protection

 

Executive Summary

The local koala population is at threat from disease, bush fires, road death, dog attack and clearing and fragmentation of koala habitat. While broader actions to improve koala populations will be the focus of a review of the current Coffs Harbour Koala Plan of Management 1999, work to date has highlighted that Hogbin Drive continues to be a major blackspot for koalas.

 

Council, in collaboration with the NSW Department of Planning, Industry and Environment -Biodiversity and Conservation Division, has analysed the feasibility of various options to reduce the instances of vehicle strike along Hogbin Drive.  The installation of koala exclusion fencing was found to be the only viable long term solution. Discussions have commenced with the NSW Government regarding options to fund the work as proposed along Hogbin Drive (Attachment 1); however, if funding is received, work will likely need to commence in the 2020/2021 financial year.

 

2021/13

Resolved (Cr Sally Townley / Cr Tegan Swan)

That Council endorse the commencement of a project in the 2020/2021 financial year to install koala exclusion fencing along priority sections of Hogbin Drive, should external funding become available.

 

For:         Crs Knight, Amos, Arkan, Rhoades, Swan and Townley

Against:  Crs Adendorff and Cecato

Carried

 

 

 

SI21/01           Water Security Negotiations

 

Executive Summary

The Regional Water Supply Scheme (RWSS) and Council’s raw water supply is significantly dependent upon the Nymboida River water source via the Shannon Creek Dam.

The key mechanisms of extraction from the Nymboida water source are comprised of three primary assets:

·    The Water Abstraction Licence (WAL) which provides for the annual extraction of up to 23,000 megalitres per annum for the purpose of a Town Water Supply;

·    The Nymboida Weir, which acts as a low level dam within the river to create the water extraction point;

·    Tunnel Number 1 which transports water extracted at the weir to a connection point with the Regional Water Supply reticulation system for distribution to both CVC and CHCC local government areas.

All three primary assets described above currently remain within the historical ownership and control of Essential Energy.

As expanded upon in Councillor Briefing Note “Regional Water Supply System – Water Access Security” dated 17 September 2020, the Regional Water Supply System partners (Clarence Valley Council and Coffs Harbour City Council) have raised the potential of a transfer of ownership of these assets from Essential Energy to the Regional Water Supply System.

 

2021/14

Resolved (Cr Paul Amos / Cr George Cecato)

That Council adopts the recommendation in the confidential attachment.

 

The Motion on being put to the meeting was carried unanimously.

Carried

 

 

Questions on Notice

 

QON21/01      Airport Lease Value

 

The following question on notice was received from Councillor Amos.

Question

“The recent awarding of the long term lease over the Coffs Harbour Regional Airport was supported publicly by a forward cumulative “forecast“ based on projections provided by the bidder over 99 years.

 

Due to significant variations in the continuity of when income is expected to be received, what is the actual net present value of the income stream, as presented to counsellors and applying the diligence of consultants KPMG for the Coffs Harbour councillor’s ultimate consideration?

 

That is, what is value to the community expressed in today’s dollars, of the proposed 99-year lease term?”

Response

The net present value of the negotiated 50 year airport lease and 49 year option is calculated to provide a benchmark to compare to valuations and to other offers received as part of the evaluation process. The net present value is between $127.5 million and $132.3 million and is significantly higher than two independent valuations, the net asset value recorded in the Coffs Harbour Airport’s balance sheet, and also higher than the binding bids received in October 2019 before the COVID-19 pandemic.

 

The airport lease has not been structured for Council to receive a single upfront lease premium (such as the net present value) but as a combination of an upfront payment, deferred payments and a share of revenue each year.  The cumulative value of these payments are estimated to be in the order of $500 million, in nominal dollar terms, over the lease and option periods.

 

 

Matters of an Urgent Nature

 

No matters of an urgent nature.

 

 

Close of Meeting

The Meeting closed at 5.58pm.

 

Confirmed: 25 February 2021

 

 

 

 

...................................................

Denise Knight

Mayor