Ordinary Council Meeting Minutes                                                           22 July 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, 22 July 2021 AT 5.00pm

 

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

STAFF:                    General Manager, Director Sustainable Infrastructure (via video link), 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 was to be recorded and live audio streamed, and that no other recordings of the meeting would be permitted.

 

 

PROCEDURAL Motion

2021/158

Resolved (Cr Denise Knight / Cr John Arkan)

That the declarations of interest be moved forward and considered prior to the public forum commencing.

 

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

Carried

 

Disclosure of Interest

Councillor

Items

Type of Interest

Cr Denise Knight

SC21/41 Donations by Council Program

Non-Pecuniary - Less Than Significant Conflict as she is a patron of Sawtell Surf Club.

Cr Denise Knight

BS21/43 Business Incentive Policy Administration – History of Impacted Applicants

Pecuniary interest as Scarba Street – her husband works in High Street Medical Centre.

Cr Michael Adendorff

BS21/40 Sale of Council Property at 2 Castle Street, Coffs Harbour

Non-Pecuniary - Less Than Significant Conflict as he has property interests.

Cr Michael Adendorff

BS21/41 Loan Borrowing – Cultural and Civic Space

Non-Pecuniary - Less Than Significant Conflict as he has property interests.

Cr Paul Amos

BS21/44 State Government Jetty Foreshores Public Domain Works

Non-Pecuniary - Less Than Significant Conflict as he is a member of the Jetty Foreshores Steering Committee.

Cr George Cecato

SI21/16 Contract No.RFT-1399-TI Waste Transport and Disposal of Mixed Waste Organic Output

Non-Pecuniary - Less Than Significant Conflict as through Council and previous position on the Chamber of Commerce, met the owners of two of the tendering organisations.

 

Public forum commenced at 5.05pm

Speaker

Item

Ann Leonard

Against BS21/40 Sale of Council Property at 2 Castle Street, Coffs Harbour

Against BS21/41 Loan Borrowing – Cultural and Civic Space

Margaret England

For BS21/41 Loan Borrowing - Cultural and Civic Space

Kath Puddey (Northern Beaches Residents association Inc.)

For NOM21/16 Woolgoolga Whale Trail

Joanne Grainger

For NOM21/16 Woolgoolga Whale Trail

 

Apologies

No apologies.

 

 

REQUEST FOR LEAVE OF ABSENCE

No requests for leave of absence.

 


 

Confirmation of Minutes

2021/159

Resolved (Cr John Arkan / Cr Sally Townley)

That the minutes of the Ordinary Meeting held on 8 July 2021 be confirmed.

 

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

Carried

 

 

 

BS21/40          Sale of Council Property at 2 Castle Street, Coffs Harbour

 

Executive Summary

Council resolved after previous resolutions on this matter at its meeting of 25 February 2021 to enter into negotiations with prospective purchasers for the sale of 2 Castle Street Coffs Harbour with a view to achieving a reasonable offer in line with market value.

 

The property at 2 Castle Street, Coffs Harbour, comprises a two level commercial office building with basement security car parking.  The proposed sale forms part of the funding model for the Cultural and Civic Space Project in Gordon Street, Coffs Harbour.

 

Council was provided a report on this sale matter (BS21/38 – Attachment A) and a subsequent addendum report (BS21/39) at its last meeting. Council resolved to defer these items to this current Ordinary meeting. These reports presented two offers recently received through Council’s real estate agent, Burgess Rawson.

 

Subsequently, a revised offer has now been received, noting that all recent offers are above valuation. Given the quantum of the most recent offers and to achieve the highest sale value for Council, it is recommended that Council authorise the General Manager to negotiate the sale of the property in accordance with the recommendation in Confidential Attachment ATT1 BS21/40 CONFIDENTIAL Summary of Recent Offers and Recommendation.

 

Coffs Harbour City Council as part of the sale will continue to occupy the whole of the property. This arrangement will be formalised upon settlement of the sale by Council entering into a 3-year lease with 3 x 1 year options for continuing tenure from the date of transfer initially at a rental of $850,000 per annum on a net lease basis.

 

2021/160

Resolved (Cr Denise Knight / Cr Tegan Swan)

That Council:

1.         Reject all offers.

2.         Withdraw Lots 1 and 2 DP566885 and Lot 8 Section 6 DP 758258 known as 2 Castle Street, Coffs Harbour from sale until such time as the Scoping and Feasibility Study for the Coffs Harbour Entertainment Venue Stage 1 is reported to Council.

3.         Note the need to review the interim loan funding source prior to its term expiry.

4.         Inform the potential purchasers of Council’s decision.

 

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

Carried

 


 

 

BS21/41          Loan Borrowing - Cultural and Civic Space

 

Executive Summary

At the Council meeting held on 14 June 2018, Council endorsed the Concept Business Case for the Cultural and Civic Centre Project. Included in this Business Case was approval for the funding mix. The recommended base option was endorsed for an initial cost estimate of $76.52M which was offset by estimated asset sales ($20M), T2S contribution ($10.5M) and the remaining $46.02M from an external loan. At a subsequent Council meeting held on 25 February 2021, Council approved further $4.245M loan borrowings for this project, bringing the total project cost to $81.265M, with loan funds to be sourced to $50.265M.

 

The financial modelling within the Business Case also showed that the Council is in a strong financial position to undertake the project and that the project only has a short term impact on the financial performance ratio of the Council. Under Council’s current Long Term Financial Plan Council was due to have a positive operating performance ratio in the 2020/21 financial year. Projections at that time also determined that if the project proceeded as recommended, Council’s positive operating performance ratio would be pushed back two years to 2022/23.

 

From these resolutions, Council has sought Expressions of Interest (EOIs) from four financial institutions in accordance with its Loan Policy. Indicative rates were received from Westpac Banking Corporation, National Australia Bank, ANZ Bank and Commonwealth Bank of Australia.  The indicative rates quoted by these financial institutions are contained in the Confidential Attachment.

 

As at 12 July 2021, TCorp’s indicative interest rate offered to Local Government generally for 20-year fixed rate amortising funds was 2.21%. An indicative rate was not sourced from TCorp through the EOI process as they are unable to offer a borrowing over a 30-year term. In addition, the other requirements set out by TCorp ultimately make their overall proposition less attractive than those from the commercial lenders.

 

From the EOIs received, it is recommended that Council enter into a fixed interest rate loan agreement to borrow $50.265M over 30 years with the Westpac Banking Corporation, noting that this is subject to the normal formal credit approval process.

 

 

Motion (Cr George Cecato / Cr Sally Townley)

That Council:

1.    Enter into a fixed interest rate loan agreement to borrow $50.265 million over 30 years with the Westpac Banking Corporation for the Cultural and Civic Space Project.

2.    Authorise the General Manager under delegated authority to execute the loan agreement.

 

Cr Arkan gave notice of a Foreshadowed Motion.

 

 

Motion put

2021/161

Resolved (Cr Denise Knight)

That the motion be put.

 

For:         Crs Knight, Adendorff, Cecato and Townley

Against:  Crs Amos, Arkan, Rhoades and Swan

 

The MOTION on being put to the meeting resulted in a tied vote. The Mayor used her casting vote and the MOTION was declared CARRIED.

Carried

2021/162

Resolved (Cr George Cecato / Cr Sally Townley)

That Council:

1.    Enter into a fixed interest rate loan agreement to borrow $50.265 million over 30 years with the Westpac Banking Corporation for the Cultural and Civic Space Project.

2.    Authorise the General Manager under delegated authority to execute the loan agreement.

 

For:         Crs Knight, Adendorff, Cecato and Townley

Against:  Crs Amos, Arkan, Rhoades and Swan

 

The MOTION on being put to the meeting resulted in a tied vote. The Mayor used her casting vote and the MOTION was declared CARRIED.

Carried

 

The Motion was carried, therefore the Foreshadowed Motion lapsed and was not considered.

 

 

FORESHADOWED Motion

 

(Cr John Arkan)

That Council at this point not apply for loan funding until such time that Council’s resolved position in regards to the sale of 2 Castle Street and Rigby House and the results of the feasibility study are known.

 

 

 

 

NOM21/16      Woolgoolga Whale Trail

2021/163

Resolved (Cr Tegan Swan / Cr John Arkan)

That Council:

1.         Write to Infrastructure Australia to request an extension of time for changes in project delivery timelines, and deliverables, and in the event that the extension is granted that Council;

1.1    Create concept drawings of possible path alignment options and put on public display.

1.2    Pending path alignment chosen undertake relevant environmental and engineering studies.

1.3    Bring proposed path back to council for determination.

2.      Continue with completion of broader project interfaces, where possible.

 

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

Carried

 

 

The meeting adjourned for a short recess, the time being 7.09pm and reconvened at 7.17pm.

 


 

Notices of Motion – Business Services

 

NOM21/15      Public Half Basketball Court in Sawtell

2021/164

Resolved (Cr Denise Knight / Cr Sally Townley)

That a report be bought back to Council on the feasibility of providing a public half basketball court in or near the Sawtell Caravan Park adjacent to the existing playground.

 

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

Carried

 

 

Directorate Reports - Business Services

 

BS21/42          Bank and Investment Balances for June 2021

 

Executive Summary

Council’s Bank Balances and Investments as at 30 June 2021 totalled $253,784,788.14.  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.

 

2021/165

Resolved (Cr George Cecato / Cr Paul Amos)

That Council note the bank balances and investments totalling $253,784,788.14 (including from loans, Developer Contributions and other avenues that form the restricted accounts and are committed for future works) as at 30 June 2021.

 

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

Carried

 

 

Cr Denise Knight declared an interest in the following item, vacated the chamber and took no part in the discussion or voting, the time being 7:18pm.  Cr Cecato assumed the Chair.

 

 

BS21/43          Business Incentive Policy Administration - History of Impacted Applicants

 

Executive Summary

At its meeting on 22 April 2021, Council requested a report covering the history of six affected applicants who were previously excluded from accessing the Business Incentive Policy under the old wording, whom may be eligible for a refund if refunds are to be applied.

 

This report outlines the history of the affected applicants as well as a profile of other commercial developments that have been approved under the Small Business Enterprise Incentive and Business Incentive Policies.

 

 

 

2021/166

Resolved (Cr Keith Rhoades / Cr John Arkan)

That Council:

1.       Note the report.

2.       Refunds Section 64 and Car Parking Contributions to businesses who were excluded from the Business Incentives Policy due to the term ‘business premises/use’ rather than ‘commercial use/commercial premises’ in the original policy.

3.       Transfer applicants who have previously requested the High Consumption Incentive to the Enhanced Deferred Payments Incentives.

 

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

Carried

 

Cr Knight resumed Chair of the meeting, the time being 7.21pm.

 

 

BS21/44          State Government Jetty Foreshores Public Domain Works

 

Executive Summary

In September 2020, the State Government announced $20 million in economic stimulus funding to fast-track essential civil, maintenance and public domain works required for the future of the Coffs Harbour Jetty Foreshores Precinct.  In particular, $5 million is earmarked for the design and implementation of public domain works across the precinct.

 

The scope of the public domain works was announced by the State Government on 7 April 2021 to include the redevelopment of the TS Vendetta building.  The project is consistent with both the adopted Jetty Foreshores Concept Plan and the current adopted Plan of Management.  Delivery of this project is being led by the State Government and they have now prepared a Coffs Harbour Jetty Foreshores Community Building Development Agreement to formalise the arrangements between Property NSW and Council to deliver the project and provide the completed works to Council for one (1) dollar.

 

It is recommended that Council execute the Development Agreement.

 

2021/167

Resolved (Cr Sally Townley / Cr Tegan Swan)

That Council:

1.       Authorise the General Manager under delegation to execute the Coffs Harbour Jetty Foreshores Community Building Development Agreement (Attachment 2) with Property NSW.

2.       Write to Property NSW requesting the incorporation of the South Solitary Island lighthouse optic into the building in a manner that protects and preserves the heritage significance of the optic.

 

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

Carried

 


 

 

BS21/45          Lease of Community Land to Woolgoolga Regional Community Gardens Association

 

Executive Summary

The Woolgoolga Regional Community Gardens Association (WRCGA) have held a licence to occupy community land in Scarborough Street at Woolgoolga since 2015. This licence expired 31 January 2020. 

 

Council staff have been liaising with the WRCGA in assessing the trialled occupation and the Group’s plans for future occupation on the site. 

 

The efforts of the WRCGA have seen a strong and positive use of the property engaging a large range of community as members and volunteers, and now seek to ensure a long-term occupation of the land to continue their programs and development of the garden space.

 

2021/168

Resolved (Cr John Arkan / Cr Paul Amos)

That Council:

1.       Authorises the lease of part Lot 102 DP 632009 being Council owned community land to Woolgoolga Regional Community Gardens Association for 21 years.

2.       Fund a survey in registerable format in order to register the lease on the property title.

 

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

Carried

 

Directorate Reports - Sustainable Communities

 

SC21/40          2021/22 Arts and Cultural Development Grants Program

 

Executive Summary

The Arts and Cultural Development Grants Program is a key action outlined in the Creative Coffs - Cultural Strategic Plan 2017-2022.  It provides an annual source of funds that artists and community groups can access to assist Council in delivering the overall vision and goals of Council’s Cultural Strategic Plan.

The assessment process is competitive and applicants must present clear, well planned projects with appropriate support material in line with the guidelines.

Council sought applications from the community for projects and activities. Of the 14 applications received, nine were recommended for funding by the assessment panel. The total funding for the nine recommended applications is $40,184.

 

2021/169

Resolved (Cr Sally Townley / Cr George Cecato)

That Council approves the allocation of 2021/22 Arts and Cultural Development Grants Program funding as follows:

 

APPLICANT

AMOUNT

Gamumbi Early Childhood Education Centre

$2,500

Coastal Claymakers Inc.

$6,863

Bellingen Readers and Writers Festival

$5,000

Friends of Coffs Harbour Regional Gallery

$5,000

GenHealth (t/a headspace Coffs Harbour)

$3,535

Woolgoolga Art Group

$2,100

Coffs Harbour City Orchestra

$3,011

Arts Mid North Coast, for Screenwave

$6,200

Toormina High School

$5,975

TOTAL

$40,184

 

 

 

 

 

 

 

 

 

 

 

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

Carried

 

 

 

 

SC21/41          2021/22 Donations by Council Program

 

Executive Summary

Each financial year, Council is required under Section 356 of the Local Government Act 1993 to assess and approve applications submitted under the Donations by Council Program.

Funds are distributed in accordance with the Donations Policy to ensure funds are allocated in the most effective manner.  This enables Council to be accountable to the community in regard to the spending of Council funds and to be transparent about the level of financial support to community events and organisations.

The suggested funding cost is $267,282 for the 2021/22 year.

 

2021/170

Resolved (Cr Sally Townley / Cr Tegan Swan)

That Council:

1.       Adopt the 2021/22 Donations by Council Program (including Rates Subsidy) as detailed in the table below:

Donations and Contributions

 

Recipient

Amount($)

Donations Unallocated (Mayor)

11,500

Unallocated Community Covid-19 Recovery Donations

15,361

Westpac Rescue Helicopter

1,000

Schools Annual Presentations

6,325

North Coast Academy of Sport

6,000

Event Subsidies (Road Closures for Anzac Day Parades)

10,500

Southern Cross University Presentations

300

TAFE Presentations

300

Development Application Fees

5,000

Other Health Services – Life Education Van

4,000

Coffs Harbour City Council Academic Scholarships

6,875

Park Run Licence Fee

525

Reimbursement of Legal Fees for Lease Preparation

5,500

Variety Special Children’s Christmas Party

250

Coffs Ladies Silks Day

1,000

Coffs Harbour Agricultural Show

5,000

New Year’s Eve Fireworks

5,000

Coffs Harbour Eisteddfod

1,000

Christmas Carols

16,000

Total

102,436


Rates Subsidy – Sporting and Cultural Groups

Amount($)

Advocate Park

14,677

Sawtell Toormina Sports & Recreation Club

14,219

Coffs Harbour Rugby Club

8,790

Coffs Harbour Hockey Fields

5,625

Coffs Harbour Kart Racing Track

1,488

Coffs Harbour Motor Cycle Club

2,953

Coffs Harbour Pistol Club

650

Woolgoolga Art Group (first instalment)

1,071

Coffs Harbour & District Aero Club

3,310

Glenreagh Mountain Railway

1,769

Woolgoolga Senior Citizens Centre

5,802

Nana Glen Hall

2,346

Bonville Hall

2,300

Ayrshire Park

36

Upper Orara Hall

2,212

Upper Orara Recreational Ground

732

Eastern Dorrigo (Ulong) Hall & Showground

36

Coramba Community Centre

2,367

Lower Bucca Community Centre

732

Woolgoolga Neighbourhood Centre

4,318

Nana Glen Sportsground

768

Lowanna Hall

731

Girl Guide Associate (Waste Service)

695

Total

77,627

Rates Subsidy – Surf Life Saving Clubs

Amount($)

Coffs Harbour Surf Club

6,652

Woolgoolga Surf Club – New

13,427

Red Rock Corindi Surf Club

1,713

Sawtell Surf Club

6,927

Total

28,719

Total Rates Subsidy

106,346

Direct Subsidy to Surf Clubs

36,000

Subsidy to Woolgoolga & Sawtell Chambers of Commerce

23,500

Total Donations & Rates Subsidy

267,282

 

 

2.         Allocate additional funding of $16,217 to the 2021/22 Donations by Council Program (including Rates Subsidy), representing $15,029 from the General Fund and $1,188 from the Water/Sewer Fund.

 

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

Carried

 

 

SC21/42          Coffs Harbour Heritage Strategy 2021-2024 – Post Exhibition

 

Executive Summary

At its Ordinary Meeting of 13 May 2021, Council resolved to endorse the draft Coffs Harbour Heritage Strategy 2021 to 2024 for public exhibition for a 28-day period.

The purpose of this report is to inform Council on the outcomes of the public exhibition process and to seek endorsement of the final Coffs Harbour Heritage Strategy 2021 – 2024 (Attachment 1).

 

2021/171

Resolved (Cr Sally Townley / Cr Paul Amos)

That Council:

1.       Endorse the Coffs Harbour Heritage Strategy 2021 - 2024 (Attachment 1).

2.       Forward a copy of the Coffs Harbour Heritage Strategy 2021 – 2024 (Attachment 1) to the NSW Department of Premier and Cabinet (Heritage NSW).

3.       Inform those whom made a submission to the draft Coffs Harbour Heritage Strategy 2021 - 2024 of Council’s decision.

 

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

Carried

 

 

SC21/43          Affordable / Social Housing Policy - Project Scope

 

Executive Summary

At its meeting of 13 May 2021, Council resolved to investigate the opportunities and constraints which shape Council’s ability to participate in the provision of affordable and/or social housing, including a review of case studies undertaken by local government elsewhere.

Further, at its meeting of 24 June 2021, Council resolved to receive a report on a budget allocation to resource the development of a policy and direction for affordable housing within the Coffs Harbour LGA.

Accordingly, this report provides an estimated scope of work (Attachment 1) in response to these resolutions.

 

2021/172

Resolved (Cr Sally Townley / Cr Tegan Swan)

That Council:

1.    Endorse the project scope for the development of an Affordable/Social Housing Policy (Attachment 1).

2.    Consider the allocation of $110,000 at the next quarterly budget review to progress the development of an Affordable/Social Housing Policy.

 

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

Carried

 

Notices of Motion – Sustainable Infrastructure

 

NOM21/17      Summary of Actions Relating to Waste Management in the Coffs Harbour LGA

2021/173

Resolved (Cr Tegan Swan / Cr Sally Townley)

That Council:

From 2018 to present, provide a chronological list of discussions, negotiations, offers, tenders and current contracts between Coffs Harbour City Council and,

a.       Biomass

b.       Handybin

c.       EPA

d.       Tripartite agreement members – Bellingen and Nambucca Councils

e.       All other relevant parties including local government areas, government agencies and private operators.

NB: All above mentioned interactions, including those deemed to be “confidential” are to be signed off as accurate representations by all parties involved.

2.       Provide details of Council’s total legal costs, including legal fees, advice, contract management, participation in arbitration process and any costs awarded against council. Present a comparison between above costs versus cost of proceeding with the original tender and agreement. This should encompass all elements of the original agreement including curb side collection, container deposit scheme, MWOO and any other component not captured here.

3.       Make available to the public and Councillors,

a.       A copy of the “Coffs Coast Regional Resource Recovery and Waste Management Strategy 2015 – 2027” along with Coffs Harbour City Councils Waste Strategy.

b.       An analysis of the actions and outcomes from the above documents and their status of achievement.

c.       Waste educational campaigns and initiatives undertaken or proposed, including budget allocated to and spent on waste education.

4.       Present future waste options currently being investigated including plan for actively engaging the community and relevant stakeholders in opportunities for input in designing our future waste management and education.

5.       Provide a report on the performance of the current bulky goods collection process. Including number of vouchers used, number of paid collections used and total tonnages collected.

6.       Prepare a list of council resolutions relating to waste in the previous and current terms of council and the status of their implementation.

 

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

Carried

 

NOM21/18      Compensation from the NSW State Government re the Failed Mixed Waste Scheme

2021/174

Resolved (Cr Paul Amos / Cr John Arkan)

Council enter into negotiations for compensation from the NSW State Government for assurances provided to council that encouraged Coffs Harbour Council to participate in the failed mixed organic waste scheme.

Coffs Harbour Council make representations that State Government lands at the Coffs Harbour Jetty Foreshores being relinquished could potentially be considered as part of compensation package to the community of Coffs Harbour.

 

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

Carried

 

Directorate Reports - Sustainable Infrastructure

 

SI21/14           Traffic Committee Meeting 15 June 2021

 

Executive Summary

The Local Traffic Committee (LTC) Meeting minutes of 15 June 2021 are presented to Council for noting. Eleven of the nineteen recommendations were items requiring action by Council (such as the installation of signage) and were of a minor nature and were therefore approved under the delegated authority issued by Council. The remaining eight items were items not requiring further action by Council such as event approvals, or requests which were not supported by the LTC. The details of those items are contained in the attached minutes.

 

2021/175

Resolved (Cr George Cecato / Cr Paul Amos)

That Council:

1.    Note the Traffic Instruments T.12–2021; T13, T14, T15, T16, T17, T19, T20, T21, T22 and T25–2021 (Attachment 2) which were approved under delegated authority.

2.    Note the outcomes contained in Minutes.

 

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

Carried

 

 

 

SI21/15           Regional Water Supply Essential Energy Agreement

 

Executive Summary

At its meeting of 11 February 2021 Council considered report DSI 21/01 Water Security Negotiations regarding the problematic external ownership arrangements of various critical components of the Regional Water Supply Scheme (RWSS).

The report discussed that the two RWSS partner councils’ raw water supply is significantly dependent upon the Nymboida River water source via the Shannon Creek Dam. The report also discussed the ongoing issue that the water licence and water access assets upon which both the Clarence Valley and Coffs Harbour communities relied actually resided within the historical ownership and control of Essential Energy.

Consequently, Council authorised the General Manager to provide support and assistance to Clarence Valley Council in order to assist in concluding a Memorandum of Understanding between CVC and Essential Energy (“the MoU”) to effect a transfer of ownership of the critical Nymboida Water Supply assets to CVC.

NSW Treasury Guidelines require that the transfer of such assets (i.e. non-tradeable) must meet certain stipulated ‘fair value’ methodology tests during any transfer process. The transfer process has now reached a stage where this final test has been met.

Council’s resolution to the initial Report on this matter (DSI 21/01) noted that a further report containing details of any future fair value agreement would be presented for Council’s consideration before proceeding further. CVC, with CHCC’s involvement and support, and Essential Energy have now agreed to a fair value for the Nymboida assets and the agreement is now presented for Council’s further consideration.

Final agreement on all key aspects has now been achieved between the parties. The final step is to gain the formal consent of Clarence Valley Council and the Essential Energy Board to conclude the transaction to transfer the assets to Clarence Valley Council ownership.

This report updates Council on the key elements and structure of the transfer.

 

2021/176

Resolved (Cr Paul Amos / Cr Keith Rhoades)

That Council note the report.

 

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

Carried

 

 

 

SI21/16           Contract No. RFT-1399-TI Waste Transport and Disposal of Mixed Waste Organic Output

 

Executive Summary

As a consequence of the NSW Government’s revocation of the Exemption for Mixed Waste Organic Output (MWOO) in October 2018 the overall cost of managing the Red Bin waste service in Coffs Harbour increased because MWOO was no longer able to be applied to land and as a consequence was required to go to landfill. As a result of the NSW Government’s decision to no longer support MWOO processing, two new and additional cost drivers were automatically imposed on the MWOO process in the form of:

-        The additional per tonne cost of having to transport MWOO to a landfill; and

-        The additional per tonne cost of having to pay a landfill gate fee for MWOO.

In the period between October 2018 and January 2021, when the imposed MWOO transport and disposal process was outside of the direct control of Council, the combined impact of the two cost drivers above was an additional average cost increase of $246.00 (incl GST) per tonne of MWOO.

During the period prior to 26 January 2021 these additional costs were initially entirely borne by the NSW State Government, and later, partly borne by the MWOO producer and partly borne by Council.

Given that the current Red Bin system produces approximately 11,000 tonnes of MWOO annually, this equated to a total cost increase to Council, post 26 January 2021, of approximately $2.7m per annum compared with the costs of the Red Bin service prior to the NSW Government’s MWOO decision. 

In January 2021, when Council was able to take sole and direct control of the MWOO transport and disposal process for the first time, Council was able to work with local transport firms and Tamworth Council (the landfill provider) to achieve an immediate cost reduction of approximately 9% down from $246 to $226 per tonne. This outcome reduced Council’s annual additional costs by approximately $220,000 per annum down to $2.5m from the original $2.7m.

This report requests that Council now consider a further opportunity to reduce the transport and disposal costs of MWOO by a further 49% down to an average cost of $114 per tonne of MWOO.

The recommendation, if adopted, would see Council’s additional MWOO-related costs fall by a further $1.2m per annum, to an expected annual cost of $1.3m, down from the initial $2.7m.

For clarity, the recommendation involves the transport of MWOO to South East Queensland for disposal during the period of the contract.

 

 

Motion (Cr Sally Townley / Cr Paul Amos)

1.         Council defer a decision on entering into a binding contract for transportation of mixed organic waste until after councillors are fully and broadly informed via the proposed meeting with stakeholders that include Nambucca and Bellingen councils, Handybin waste, EPA and Coffs Harbour Councillors.

2.         Council continue existing casual arrangement in transportation of mixed organic waste to the Tamworth tip site whilst also exploring the potential of back loading recyclables from Tamworth LGA for processing.

 

Cr Arkan left the meeting, the time being 8:04 pm.

Cr Arkan returned to the meeting, the time being 8:10pm.

 

Cr Knight left the meeting, the time being 8.38pm and Cr Cecato assumed the Chair.

 

Cr Arkan left the meeting, the time being 8:41 pm.

Cr Arkan returned to the meeting, the time being 8:47pm.

 

The meeting adjourned for a short recess, the time being 8.48pm and reconvened at 8.50pm.

Cr Knight resumed Chair of the meeting, the time being 8.50pm.

 

For:         Crs Amos, Arkan, Swan and Townley

Against:  Crs Knight, Adendorff, Cecato and Rhoades

 

The MOTION on being put to the meeting resulted in a tied vote and was therefore LOST.

 

 

Motion

2021/177

Resolved (Cr George Cecato / Cr Michael Adendorff)

That Council:

1.         Accept the tender from Crampo’s Tippers Pty Ltd (ABN 567 450 387 919) for Part A of RFT-1399-TI Waste Transport for a scheduled rate of $55.00 per tonne (Inc. GST).

2.         Accept the tender from Veolia Pty Ltd (ABN  56 104 525 699) for Part B of RFT-1399-TI Waste Disposal for a scheduled rate of $58.80 per tonne (Inc. GST) (excluding ‘waste levy’).

3.         Note that the basis of the recommendations above is due to the Tender Selection Panel’s assessment that:

a)    The tenders are the most advantageous tenders following the application of Councils Tender Value Selection System.

b)    The tenderers have the necessary experience in similar work and have demonstrated their ability to meet Council’s Safety, Quality and Environmental requirements.

c)    The tenders offer a substantial saving compared to the existing contracts.

4.       Endorse that the contract documents be executed under delegated authority by the General Manager.

 

For:         Crs Knight, Adendorff, Arkan, Cecato and Rhoades

Against:  Crs Amos, Swan and Townley

 

The MOTION on being put to the meeting was declared CARRIED.

Carried

 

Questions on notice

 

QON21/06      Contingency Allowance - Cultural and Civic Space Project

 

 

The response was noted.

 

 

 

Matters of an Urgent Nature

 

No matters of an urgent nature.

 

 

 

Close of Meeting

The Meeting closed at 9.04pm.

Confirmed: 12 August 2021.

 

 

 

 

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

Denise Knight

Mayor