Coffs Harbour City Council

18 August 2021

 

Ordinary Council Meeting

 

The above meeting will be held remotely via audio-visual link on:

 

Thursday, 26 August 2021

 

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

 

 

Mayoral Minute

MM21/02        Support of Clarence Valley Councils adopted position on mining in the clarence valley water catchment..................................................... 3

General Manager's Reports

GM21/13         Council Meeting Dates..................................................................................... 19

Directorate Reports - Business Services

BS21/47          Bank and Investment Balances for July 2021........................................ 21

BS21/48          Certification of Draft 2020/21 Annual Financial Statements......... 43

BS21/49          Park Beach Area Contributions Plan Review - Post Exhibition... 159

BS21/50          Loan Borrowing - Cultural and Civic Space........................................ 190

BS21/51          Sale of 27-29 Duke Street, Coffs Harbour............................................ 194

Directorate Reports - Sustainable Communities

SC21/46          Delivery Program 2017-2022 - Six-Monthly Progress Report - 1 January to 30 June 2021.................................................................................. 199

SC21/47          Submission to Regional Housing Taskforce....................................... 244


MM21/02      Support of Clarence Valley Councils adopted position on mining in the clarence valley water catchment

Author:                        Mayor

Authoriser:                  Mayor

Attachments:              ATT1  MM21/02 Letter from Clarence Valley Council  

 

Recommendation:

That:

1.    Coffs Harbour City Council support the adopted stance taken by Clarence Valley Council to oppose mining in areas affecting the Clarence River catchment

2.      The Mayor write to the Clarence Valley Council Mayor advising of Coffs Harbour City Council support of their stance on opposing mining on the Clarence River Catchment

 

Rationale

The Mayor’s Office is in receipt of a request from the Mayor of Clarence Valley Council (CVC) for Coffs Harbour City Council to support CVC’s opposition to mining in the Clarence River catchment and to pass a similar resolution to oppose mining in areas affecting the catchment.  A copy of the correspondence is attached as attachment 1.

 

CVC has resolved as detailed in the attachment 6a.20.04.049 24 November 2020.  In summary, CVC have adopted a position to oppose mining in the Clarence River catchment and to seek both Federal and State support to impose a moratorium on further mining exploration licences and to cancel existing licences.

 

CVC considered the issue further in April 2021 and resolved a number of actions including to write to adjoining councils to seek their support in CVC’s stand.

 

Mining conducted in a designated water catchment presents risks to water quality.  Parts of the Coffs Harbour LGA feed into the Clarence River Catchment.  (eg, the Nymboida Catchment which supplies the Shannon Creek Dam from which both CVC and CHCC obtain water supply).  Existing regulation and checks on mining company’s activities at State level is the only current protection from substandard mining practices.  There appears to be limited consultation with Local Water Authorities (eg, CHCC and CVC) as a key stakeholder when licences are issued.

 

It is in Councils interest to support the CVC adopted position.

 

 


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


PDF Creator

PDF Creator


GM21/13      Council Meeting Dates

Author:                        Governance Coordinator

Authoriser:                  Group Leader Governance

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

Attachments:              Nil

 

Executive Summary

Recently, the NSW Government postponed the Local Government Elections to 4 December 2021.  This has impacted the Coffs Harbour City Council Ordinary Meeting schedule for 2021.  This report seeks a Council resolution to schedule Ordinary meetings on 9 and 23 September 2021, and cancel the 9 December 2021 meeting.

 

Recommendation:

That Council, in response to the postponing of the local government elections to 4 December 2021:

1.    Schedule ordinary meetings on both 9 and 23 September 2021.

2.    Cancel the ordinary meeting scheduled for 9 December 2021.

3.    Amend the current Caretaker Policy to reflect the revised caretaker period dates.

 

Report

Description of Item:

As the local government elections were planned for Saturday, 4 September 2021, Council did not schedule any ordinary meetings for September 2021.  In response to the escalating outbreak of the COVID-19 virus in Greater Sydney and the potential for further outbreaks in regional areas, the NSW Government postponed all local government elections to Saturday, 4 December 2021.

 

This means meetings should now be scheduled in September, and with the declaration of Polls not due until 21-23 December 2021, the 9 December 2021 is to be cancelled.

 

This report seeks a Council resolution to:

 

·     Schedule ordinary meetings on both 9 and 23 September 2021

·     Cancel the ordinary meeting on 9 December 2021

Issues:

The postponing of the local government elections to 4 December 2021, means that the caretaker period will start on 5 November 2021.  The dates within Council’s Local Government Elections Caretaker Period Policy will be updated to reflect this.

Options:

1.    Adopt the recommendation provided to Council.

2.    Amend the recommendation being the proposed council meeting dates provided to Council and then adopt.

3.    Reject the recommendation provided to Council.  This would mean that no Council meetings will be held in September 2021.  Under s365 of the Local Government Act, Council is required to meet at least 10 times each year, each time in a different month, therefore Council would be in breach of the legislation.

Sustainability Assessment:

•     Environment

There are no environmental impacts as a result of this report.

•     Social

There are no social impacts as a result of this report.

•     Civic Leadership

The notification of Council Meeting dates to the community is consistent with the Council’s MyCoffs Community Strategic Plan, D.1 Our leaders give us confidence in the future.

•     Economic – Broader Economic Implications

There are no broader economic implications as a result of this report.

•     Economic - Delivery Program/Operational Plan Implications

The number of council meetings in a calendar year has no delivery program/operational plan implications.

Risk Analysis:

There are no significant risks associated with this report.

Consultation:

Internal consultation has occurred.

Related Policy, Precedents and / or Statutory Requirements:

Council’s practice is to meet on the second and fourth Thursday of each month at 5.00 pm.  Council has changed meeting dates by resolution as the need has arisen.

 

s365 of the Local Government Act provides for Council to meet at least ten times a year in different months.

Implementation Date / Priority:

Immediately.

Conclusion:

That Council adopt the recommendations of this report.

 

 


BS21/47       Bank and Investment Balances for July 2021

Author:                        Section Leader Financial Planning

Authoriser:                  Director Business Services

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

Attachments:              ATT1  BS21/47   Investment Performance Report for the Month Ended 31 July 2021  

 

Executive Summary

Council’s Bank Balances and Investments as at 31 July 2021 totalled $242,415,346.83.  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.

 

Recommendation:

That Council note the bank balances and investments totalling $242,415,346.83 (including from loans, Developer Contributions and other avenues that form the restricted accounts and are committed for future works) as at 31 July 2021.

 

Report

Description of Item:

A copy of the state of Bank Balances and Investments as at 31 July 2021 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.

 

The bank balances and investment total of $242,415,346.83 as at 31 July 2021 is allocated between Council’s external restrictions, internal restrictions and unrestricted funds.

 

The balance of Council’s cash, cash equivalents and investments as at 30 June 2021 was attributable to external restrictions, internal restrictions and unrestricted funds as follows:

 

Fund

$000

External Restrictions

139,150

Internal Restrictions

110,426

Unrestricted

4,467

Total

254,043

 

Final draft calculations have been carried out to determine external and internal restrictions for the year ended 30 June 2021 during End of Financial Year Financial Statement preparation.  These amounts are included in Noted C1-3 of the draft Annual Financial Statements presented to Council on 26 August 2021.

 

External restrictions account for over 55% of the cash, cash equivalent and investments held by Council; comprising of Developer Contributions, unexpended grants, unexpended loans, Water fund reserves, Sewer fund reserves and the Domestic Waste Management reserve as reported in Council’s Annual Financial Statements.

 

The below graph provides a breakdown of the bank and investment balances by Fund as at 31 July 2021.

 

 

The following line graph shows the rolling trend of Council’s bank balance and investment totals for a period of 13 months to 31 July 2021.

 

 

 

 

Reports written by Laminar Group Pty Ltd (Council’s investment portfolio advisors), which examine economic and financial markets data for July 2021 are available in the Councillors’ Resource Centre.

Issues:

There are no issues associated with this report.

Options:

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

Sustainability Assessment:

•     Environment

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

•     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 Delivery Program and associated Operational Plans.

•     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 July 2021, it is noted that the total bank and investment balance was $242,415,346.83 comprising restricted and unrestricted General, Trust, Water and Sewer Funds’ 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.  Council officers have considered the risk to its portfolio in light of the COVID-19 pandemic.  Council has portfolio policy limits and risk management related strategy that provide protection against exposure to investment related risks.  Council also has maximum holding limits based on credit quality and counterparty limits and there is not considered to be a significant increase in these risks at this point in time.

 

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.

 

 

 


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


BS21/48       Certification of Draft 2020/21 Annual Financial Statements

Author:                        Section Leader Financial Support

Authoriser:                  Director Business Services

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

Attachments:              ATT1  BS21/48   2020-2021 DRAFT General Purpose Financial Statements

ATT2  BS21/48   2020-2021 DRAFT Special Purpose Financial Statements  

 

Executive Summary

The draft Annual Financial Statements, which include the General Purpose Financial Statements and the Special Purpose Financial Statements, are required to be certified to meet legislative requirements in relation to the completion and audit of the Annual Financial Statements for 2020/2021.

 

The Special Schedules are not included in this report as certification is not required for audit of the Annual Financial Statements to commence.

 

Recommendation:

That Council approve the General Purpose Financial Statements – Statement by Councillors and Management and Special Purpose Financial Statements – Statement by Councillors and Management forms for 2020/2021 for completion by the designated signatories.

 

Report

Description of Item:

Tabled at this meeting are the draft Annual Financial Statements, which includes General Purpose Financial Statements and Special Purpose Financial Statements, for 2020/2021.

 

Included are two statements:

 

1.    General Purpose Financial Statements – Statement by Councillors and Management; and

2.    Special Purpose Financial Statements – Statement by Councillors and Management.

 

Both Statements by Councillors and Management are required to be signed prior to the submission of the Annual Financial Statements to the Office of Local Government.  The auditor does not provide the audit reports (which are also required to be included in the Statements sent to the Office of Local Government), until signed copies of the Statements have been received.

 

The Special Schedules included with the final Annual Financial Statements submitted to the Office of Local Government are not included in this report, as they do not require certification prior to submission to the Audit Office of NSW.  The “Permissible Income for General Rates” Special Schedule is subject to a separate audit undertaken by The Audit Office of NSW and the “Report on Infrastructure Assets” Special Schedule is not audited at all.

 

No analysis of the draft documents is provided in this report.  Council staff will provide an analysis of the audited Annual Financial Statements after a review of the draft documents has been undertaken by Council’s auditors, The Audit Office of NSW.

 

It should be noted that the Special Purpose Financial Statements for the Coffs Harbour Airport is reported to the period ending 31 May 2021.

 

Due to the lease agreement which took effect from 1 June 2021, the Coffs Harbour Airport operations became discontinued as disclosed in Note 3-3 of the General Purpose Financial Statements and the assets pertaining to the lease agreement were transferred to “Airport Investment Property Assets” in Note C1-9.

Issues:

Failure to approve the draft Annual Financial Statements will result in non-compliance with relevant legislation.

Options:

This report is to enable Council to ‘certify’ the draft Annual Financial Statements for 2020/2021.  This is required by legislation and therefore is the only option available to Council.

Sustainability Assessment:

•     Environment

There are no perceived current or future environmental impacts.

•     Social

There are no perceived current or future social impacts.

•     Civic Leadership

There are no perceived current or future civic leadership impacts.

•     Economic – Broader Economic Implications

There are no perceived current or future economic impacts.

•     Economic - Delivery Program/Operational Plan Implications

There are no Delivery Program or Operational Plan implications.

Risk Analysis:

A risk assessment has been carried out and it is considered that endorsement of the recommendation does not present a risk to Council.  However, non-endorsement of the statements provides a risk of non-compliance with legislation to the Council.

Consultation:

The draft Annual Financial Statements were collated with the assistance of various Council staff members in accordance with the Office of Local Government Code of Accounting Practice and Financial Reporting 2020/21 issued in December 2021 and Australian International Financial Reporting Standards.

Related Policy, Precedents and / or Statutory Requirements:

The Financial Statements are prepared and presented on an annual basis in accordance with statutory and regulatory requirements.

 

The Annual Financial Statements have been prepared in accordance with:

 

1.    The Local Government Act 1993 and amendments

2.    Local Government Regulations

3.    Australian Accounting Standards (AASBs)

4.    The “Local Government Code of Accounting Practice and Financial Reporting 2020/21” published by the Office of Local Government

5.    The “Asset Accounting Manual” published by the Office of Local Government

6.    Instructions issued in circulars released by the Office of Local Government

7.    NSW Government Policy Statements “Application of National Competition Policy to Local Government”

8.    Office of Local Government guidelines “Pricing & Costing for Council Businesses:  A guide to Competitive Neutrality”

9.    Council’s Policies and Procedures

Implementation Date / Priority:

The draft Annual Financial Statements will be authorised for issue within statutory timelines.

Conclusion:

This report provides Council with the draft Annual Financial Statements for the 2020/2021 financial year.  Once audited, the final Annual Financial Statements will be presented to Council with an analysis.

 

 

 


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


PDF Creator


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


PDF Creator


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


PDF Creator

PDF Creator


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


PDF Creator

PDF Creator


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


PDF Creator

PDF Creator


PDF Creator


PDF Creator


PDF Creator

PDF Creator

PDF Creator


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


PDF Creator


PDF Creator


PDF Creator

PDF Creator

PDF Creator


 

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


BS21/49       Park Beach Area Contributions Plan Review - Post Exhibition

Author:                        Group Leader Financial Services and Logistics

Authoriser:                  Director Business Services

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

Attachments:              ATT1  BS21/49   Amended Park Beach Area Contributions Plan 2020

ATT2  BS21/49   CONFIDENTIAL Submissions - Combined

Confidential in accordance with Section 10A(2)(d)(i) 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.  

 

Executive Summary

At its meeting held on 23 July 2020, Council resolved to place the amended draft Park Beach Area Contributions Plan on public exhibition for a second time.  The plan has been on public exhibition for a further 42 days with seventeen submissions received during this period.

 

At its meeting held on 22 October 2020, Council resolved as follows:

 

That Council:

1.    Defer until Councillors are provided with a briefing.

2.    Staff review the application of the public health order as it relates to attendance at the Council meeting and also investigate a site visit with relevant stake holders in line with COVID-19 requirements and code of conduct provisions.

 

An onsite meeting with relevant stakeholders within the contributions plan area was held on 19 May 2021 with a further briefing for Councillors held on 8 June 2021.

 

This contributions plan seeks a financial contribution towards the development and level of infrastructure that is required to support the needs of this growing area.  The existing Park Beach Area Contributions Plan has been reviewed and necessary amendments to the plan are proposed.

 

The purpose of this report is to inform Council of the outcome of the additional public exhibition process and to seek adoption of the amended Park Beach Area Contributions Plan.

 

Recommendation:

That Council:

1.       Adopt the attached amended Park Beach Area Contributions Plan (Attachment 1).

2.       Inform the parties who made submissions of the outcome.

 

Report

Description of Item:

The revised draft Park Beach Area Contributions Plan was provided to Council in April 2020 when it was resolved to place the draft plan on public exhibition for a period of 28 days.  Seven submissions were received during the first exhibition period; which resulted in an amended draft Park Beach Area Contributions Plan being presented to Council on 23 July 2020.  An additional second public exhibition period was endorsed by Council, thereby inviting submissions for the amended draft Park Beach Area Contributions Plan.

 

Summary of the Previous Amendments:

 

Based on feedback from the first public exhibition period and further internal consideration, the revised Park Beach Area Contributions Plan was amended with the following:

 

-     Extending the designated catchment area (refer map 1 in Attachment 1) to include lands to the north and west of Hogbin Drive.  This will align the catchment area to the adopted Local Growth Management Strategy.  Additional key infrastructure items have also been identified, providing safe pedestrian connectivity links to meet the demands of the growing population.  It will also ensure all new local population, within easy walking distance to the facilities will contribute to these facilities.

-     Increasing the projected lot yield to 791, which includes lands to the west of Hogbin Drive and with consideration given to the future development in the area known as East Arthur Street/Richmond Drive.

-     Reducing the term of the draft contributions plan from 15 years to 10 years, to enable a more-timely delivery of infrastructure in line with projected new development.

-     Consideration has been given to the use of this space and facilities by the broader LGA community.  An apportionment rate for new local residents and tourist guests frequenting this area has been applied at 88%.  The remaining 12% could be apportioned in a future LGA wide contributions plan.

 

In response to anticipated development and having regard to the level of facilities currently available and the expected profile of the new population, it will be necessary to provide improved traffic calming, footpath/cycle ways, street scaping, additional car parking, enhanced active recreation space, and an amenities block.  Providing these facilities will result in the following changes to the contribution rates.

 

Table 1:

Issues:

At the conclusion of the second public exhibition period, 17 submissions were received by Council (Confidential Attachment 2).  A summary of the issues raised by the submissions along with assessment comments are provided as follows:

 

Submission 1:  Notes their formal request for information and requests an extension to the public exhibition period.

 

Comments:  Council provided a reply to the submitter on 1 September 2020, explaining that Council had exceeded the statutory exhibition period.  That is, Council resolved on 23 July 2020 to undertake the second public exhibition for a period of 42 days instead of the usual 28 days.  Given this, officers did not anticipate a further extension to the public exhibition period.  Also, Council officers held a meeting with the submitter’s client to discuss the amended draft Park Beach Area Contributions Plan on 2 September 2020.  It is noted that a detailed formal submission was made within the submission period.

 

Submissions 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 and 16:  Objects to the revised Park Beach Area Contributions Plan citing concerns that the new plan will penalise development in the extended catchment area and that an increase greater than the Consumer Price Index or in excess of 70% for the proposed contributions is not reasonable.

 

Comments:  As noted above, the revised contributions plan is necessary in response to anticipated development and having regard to the level of facilities currently available and the expected profile of the new population, it will be necessary to provide improved traffic calming, footpath/cycle ways, street scaping, additional car parking, enhanced active recreation space and an amenities block.  The figure of a greater than 70% increase in contributions is inaccurate and was a figure that has been calculated on the revised draft plan exhibited in May 2020.

 

Submissions 5 and 7:  Objects to the revised Park Beach Area Contributions Plan and request that scheduled works within the area are incorporated in a broader Plan.

 

Comments:  An apportionment rate of 88% for new local residents and tourist guests frequenting this area is included in the amended draft Park Beach Area Contributions Plan.  The remaining 12% could be apportioned in a future update of the LGA wide contributions plan.  This rate is supported given the predominant use of these new facilities are being provided to meet the demands of new local residential activity and to cater for the new tourist population that is expected to holiday in this specific area.

 

Submission 17:  This is a very extensive submission which covers the following matters:

 

1.    The submission relates specifically to two prominent properties not previously contained within an area specific Contributions Plan and located within the draft Contributions Plan area.

2.    There has been a lack of consultation on the draft plan.

3.    The population and dwelling/lot yield projections are not well founded.

4.    The determination of project included within the Contributions Plan has been made in isolation of the community and should be funded by sources other than developers.

5.    The causal, temporal and spatial nexus for the plan is not well founded.

6.    All footpath and shared-way projects with frontage or connections with private development should be excluded from the plan to avoid double dipping.

7.    The car parking works components of the plan seem to have increased significantly in costs and apportionment seems unreasonable.

8.    The population assessment within the plan is not consistent with the LGMS 2020.

9.    Amenities Block price increase seems unreasonable.

10.  Some land has been removed from the second draft of the Contributions Plan, Is there an explanation for that?

11.  Catchment for the draft contributions plan has increased.

12.  Disclosure of changes in contributions for land added into the contributions plan is not disclosed.

13.  Alternative funding sources should be considered for projects.

 

Comments:  Council has provided community consultation through advertising on local media and Council’s website and two public exhibition periods, with the amended draft Park Beach Area Contributions Plan receiving an extended public exhibition period of 42 days.  Following the resolution of Council in October 2020, Council has held a stakeholder engagement meeting on site to which all submitters were invited to attend.  Only representatives of one submitter attended this meeting.  Council officers have also met individually with the submitter, at their request, prior to and after the close of submission on the amended draft plan.

 

The population estimates from the Department of Planning, Industry and Environment population forecasts as used for the development of the Local Growth Management Strategy.  These figures were then refined for the Park Beach area.  The projection of lot yield is considered reasonable as it was reached using figures from the adopted Local Growth Management Strategy.  Contributions are considered the primary funding source as the infrastructure works proposed are required to enable the safe and efficient movement of the growing population.

 

The projects included within the amended draft Park Beach Area Contributions Plan include those projects previously identified as part of the current Contributions Plan, with updated costings, and projects determined by council officers based on needs assessed as part traffic and movement data, place score data and the experience of providing infrastructure and community facilities for a growing urban area.

 

The temporal, causal and spatial nexus are determined by considering the population forecasts/yields, projected growth and physical accessibility; that is, within walking distance to the community facilities within the amended draft Park Beach Area Contributions Plan.  The area covered by the draft plan aligns with the Council’s Park Beach Precinct and the causal nexus is clearly articulated in the draft plan.

 

It is considered that thought does need to be provided within the Contributions Plan area that no longer should conditions of consent be included in development approvals to mandate a footpath is provided by the developer as footpaths required within the precinct are identified within this amended draft plan.  It is also considered that developments who have already provided footpaths as part of a previous development consent on the property should be provided with a contributions offset for costs already incurred on footpath construction for a period of five years prior to the commencement of this new plan should Council resolve to adopt it.

 

Additional development will burden the existing on street parking – such as visitors (families and friends) related to new dwellings.  Additional use of new park and recreational amenity will place further demands on current street parking.  Providing an additional 52 car parking spots (Foster Street / Ocean Parade) will assist in alleviating these pressures and ensure safer roads for pedestrians and cyclists.

 

The population data used for the drafting of the amended draft Park Beach Area Contributions Plan was the same data used for the Local Growth Management Strategy; however, as the time period to which these apply vary, it is understood how this might appear to be inconsistent.

 

The amenity block design has been reviewed and improved since the original formulation of the current contributions plan and a new park and recreational area have also been added.  The impact of COVID-19 has also further impacted Contribution Plan budgets and most will need to be investigated over the next 12 months.  Costs have increased significantly since the original design was incorporated in the original plan.

 

The Park Beach Area map has been updated within the amended draft Park Beach Area Contributions Plan to include lands to the east of Ocean Parade in line with the original approved plan map.

 

The proposed plan’s geographic area has been expanded to align with the Council’s Park Beach Precinct to provide for more alignment of Council’s strategic planning documents.

 

12% of the funds required for the to complete projects within the amended draft Contribution Plan will be sourced from revenue sources other than the amended draft Park Beach Contributions Plan.  Council will continue to seek grant funds where they are available; however, the projects within the plan have been determined to be needed to facilitate and provide for the growth of the precinct and it is considered appropriate under apportionment that the developers provide for the required infrastructure through the application of the amended draft Park Beach Area Contributions Plan.

 

Summary:  The amended draft Park Beach Area Contributions Plan will support the increased demand on infrastructure within the catchment due to the local growing residential community as well as the new tourist population that is expected to frequent this area over coming years.

 

Key infrastructure items have been identified throughout the catchment area to provide improved traffic calming, footpath/cycle ways, street scaping, additional car parking, enhanced active recreation space, and an amenities block, to meet the demands of the growing population.

 

A number of submitters have suggested that the contributions for the area are increasing by in excess of 70%.  This calculation is incorrect and through further consultation with the submitters it has been determined that this figure had been calculated based on the revised draft Contributions Plan which was exhibited in May 2020 and not on the Plan subject of this report.

 

The following table shows that for lots outside of the current Park Beach Contributions Plan there will be an overall increase total contributions of 12% or 61% for Section 7.11 contributions only.  It also shows that for those lots currently within the Park Beach Contributions Plan there will be an overall decrease of 2% or 5% for Section 7.11 contributions only.

 

Table 2:

Options:

In considering this report Council has the following options:

 

1.    Accept the recommendation of this report and adopt the amended draft Park Beach Area Contributions Plan.

2.    Detail any proposed amendments to the amended draft Park Beach Area Contributions Plan.

3.    Reject the recommendation of this report and retain the current contributions plan.

Option one is recommended to ensure the plan is aligned with projected lot yields and reflects the current infrastructure costs and requirements for the Park Beach Area.  Not progressing the amended draft Park Beach Area Contributions Plan could result in public facilities being insufficient to meet the demands of the growing population.

Sustainability Assessment:

•     Environment

Environmental issues are considered in the preparation of the Development Control Plans applicable to the relevant area.  Detailed environmental issues are assessed at the design stage for infrastructure works and at the time of assessment of development applications.

•     Social

The completion of the works included in the amened draft Park Beach Area Contributions Plan will have a positive effect on the future population of the release area, through improved provision of infrastructure for use by local residents and holiday makers.

•     Civic Leadership

The MyCoffs Community Strategic Plan provides for the objectives A-2 An active, safe and healthy community and D-2 We have effective use of public resources.  The provisions outlined in the amended draft Park Beach Area Contributions Plan are in line with Council achieving these objectives.

•     Economic – Broader Economic Implications

Contribution plans provide a mechanism for the collection of funds to enable the provision of infrastructure required as a result of new development.  Future maintenance costs will come from the provision of the facilities; however, funding for this is generally derived from increased general revenue resulting from additional urban development.

 

As provided in Table 1 the current contribution rates applicable under the amended draft Park Beach Area Contributions Plan has decreased for Traffic/Transport, decreased for Open Space Facilities and increased for Car Parking.  The contribution rates have increased for lands located to the west and north of Hogbin Drive.  It is worth noting that car parking contributions are only relevant for commercial properties.  The Business Incentive Policy may be available and be relevant to certain commercial developments that attract car parking contributions.

•     Economic - Delivery Program/Operational Plan Implications

There are no immediate Delivery Program/Operational Plan implications associated with this report.

Risk Analysis:

Not progressing the amended draft Park Beach Area Contributions Plan could result in public facilities being insufficient to meet the demands of the growing population.

 

The amended draft Park Beach Area Contributions Plan is based on cost estimates for the proposed works and these estimates may require adjustment as final costings are prepared prior to the commencement of works.  To minimise the risk of cost variances significant effort has been made to ensure accurate costing of projects are included within the works schedule.  Quarterly indexation of the levied charges will also assist with pricing fluctuations.

The delivery times of the infrastructure items are included within the amended draft Park Beach Area Contributions Plan and have been estimated in line with projected population growth.  The collection of contributions is dependent on development proceeding.  There may be instances where the collection of contributions will not be sufficient to provide complete funding to construct the infrastructure within the specified time frame and the Council may need to forward fund the construction.  In these instances, the forward funding would then be recouped by Council over future years under the Contributions Plan.

Consultation:

The amended draft Park Beach Area Contributions Plan was placed on a second public exhibition from 27 July 2020 to 6 September 2020; that is, for an extended period of 42 days.  The public exhibition was advertised through Council’s communication forums and on Council’s website under the Have Your Say community engagement process.  During the second public exhibition period 17 submissions were received.

 

After receiving the public feedback relevant staff across Council considered the submissions lodged.

 

As a result of a Council resolution in October 2020, a stakeholder meeting was held, on site in May 2021, to discuss the draft plan with Councillors and a further briefing was held in June 2021 to provide further detail to Councillor’s on the amended draft Contribution Plan.

 

A further meeting was held with an individual submitter to gain further information and clarity on the contents of submission 17 post the onsite stakeholder meeting.

Related Policy, Precedents and / or Statutory Requirements:

The relevant statutory requirements for the preparation of 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.

 

Section 31 of the Environmental Planning and Assessment Regulation 2000 states that Council must give public notice of its decision on its website within 28 days after the decision is made.

Implementation Date / Priority:

The adopted Park Beach Area Contributions Plan will be made available to the public within 28 days after Councils decision.

Conclusion:

The revised draft Park Beach Area Contributions Plan was provided to Council in April 2020 when it was resolved to place the draft plan on public exhibition for a period of 28 days.  Seven submissions were received during the first exhibition period; which resulted in an amended draft Park Beach Area Contributions Plan being presented to Council on 23 July 2020.

 

An additional second public exhibition period was endorsed by Council, thereby inviting submissions for the amended draft Park Beach Area Contributions Plan.  During the second public exhibition period Council received 17 public submissions, which have been addressed within the Issues section of this report.

 

As a result of a Council resolution in October 2020, a stakeholder meeting was held on site in May 2021 to discuss the amended draft Park Beach Area Contributions Plan with Councillors and a further briefing was held in June 2021 to provide further detail to Councillors.

 

Based on the information provided it is recommended that Council now adopt the amended Park Beach Area Contributions Plan.

 


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


BS21/50       Loan Borrowing - Cultural and Civic Space

Author:                        Senior Finance Business Partner

Authoriser:                  Director Business Services

MyCoffs:                      B.1 A thriving and sustainable local economy

Attachments:              ATT1  BS21/50   CONFIDENTIAL Westpac Banking Corporation Expression of Interest Proposal

Confidential in accordance with Section 10A(2)(d)(i) 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.

ATT2  BS21/50   CONFIDENTIAL Westpac Banking Corporation Correspondence  

ATT3  BS21/50   CONFIDENTIAL Financial Institutions' EOI - Indicative Loan rates   

 

Executive Summary

At the Council meeting held on 22 July 2021, Council resolved to enter into a fixed interest rate loan agreement to borrow $50.265 million over 30 years with the Westpac Banking Corporation (Westpac) for the Cultural and Civic Space Project.  This loan offer was subject to the normal formal credit approval process.  Despite Council meeting all the parameters of this approval, including ratios, financial metrics and affordability, Westpac decided it was not in a position to offer a 30-year term even though this was the terms provided for in the Expression of Interest (EOI) process.  The response from Westpac is contained in the Confidential Attachment 2 and this correspondence indicates they are willing to provide a borrowing over a 20-year period.  This offer demonstrates that Westpac deemed Council to be a credit worthy applicant in its assessment process.  Council officers have highlighted Council’s disappointment that an EOI would be submitted without having first considered an internal sign-off of the salient points of the offering.

 

As a result, Council has gone back to market and sought revised EOIs from the remaining three financial institutions from the original EOI, being National Australia Bank, ANZ Bank and Commonwealth Bank of Australia.  The only option requested was a 30-year loan term.  The updated indicative rates quoted by these financial institutions are contained in the Confidential Attachment 2.

 

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 Commonwealth Bank of Australia.  For clarity, Council has had further correspondence with the institution who is recommended and can confirm that the institution has approval to offer a 30-year term for the proposed borrowing.

 

 

Recommendation:

That Council:

1.    Enter into a fixed interest rate loan agreement to borrow $50.265 million over 30 years with the Commonwealth Bank of Australia.

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

 

Report

Description of Item:

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 to source $46.02M of the funding via an external loan.  At a subsequent Council meeting held on 25 February 2021, Council approved a further $4.245M loan borrowings for this project, bringing total loan funds sought to $50.265M.

 

As a result, Council 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.

 

At the Council meeting held on 22 July 2021, Council resolved to enter into a fixed interest rate loan agreement to borrow $50.265 million over 30 years with the Westpac Banking Corporation (Westpac) for the Cultural and Civic Space Project.  This loan proposal was subject to the normal formal credit approval process as outlined in the correspondence received from Westpac on 15 July 2021 (Confidential Attachment 1).  Despite Council meeting all the parameters of this approval, including ratios, financial metrics and affordability, and also providing all of the requested information, Westpac decided it was not in a position to offer a 30-year term, even though this was the terms provided for in the Expression of Interest (EOI) process.  The correspondence from Westpac is contained in Confidential Attachment 2 and indicates they are willing to provide a borrowing over a 20-year period; however, this is not in line with Council’s previously resolved position to borrow the funding over a 30-year term.  However, this offer confirms that Westpac deemed Council to be a credit worthy applicant in its assessment process.

Issues:

On 25 February 2021 Council resolved to enter into a contract with Lipman Pty Ltd for Design and Construction Services for the Cultural and Civic Space project. One component of the funding mix for this project is loan borrowings.  The Business Case adopted 14 June 2018 approved an initial $46.02M of loan borrowings.  At a subsequent Council meeting held on 25 February 2021, Council approved a further $4.245M loan borrowings for this project, bringing total loan funds sought to $50.265M.  This report addresses the most financially attractive EOI over a 30-year term.

 

With this delay in sourcing loan funds Council has considered any cash flow implications and is satisfied we will meet its contractual obligations well within adopted timeframes.  Council has confirmed that once a resolution has been adopted, the loan document can be signed off by the General Manager with a short turnaround to drawdown, anticipated to be by 1 September 2021.  For clarity, Council has had further correspondence with the institution who is recommended and can confirm that the institution has approval to offer a 30-year term for the proposed borrowing.

Options:

The options available to Council in this matter are:

1.    Accept the offer to borrow $50.265M over a 30 year fixed term from the Commonwealth Bank of Australia.

2.    Reject all loan offers and seek another source of funding.

The offers are based on indicative rates and will be confirmed on the day of drawdown.

Sustainability Assessment:

•     Environment

The borrowing of funds is not expected to have any direct environmental implications.

•     Social

The borrowing of funds is not expected to have any direct social implications.

•     Civic Leadership

Council supports the financially sustainable outcomes for the Council and the Coffs Harbour community and seeks to minimise borrowing costs.  This assists with funding requirements for services and other projects.

Economic – Broader Economic Implications

The borrowing of funds is expected to have broader economic implications.  The Capital Expenditure Review document has addressed the long term implications and viability of this project.

•     Economic - Delivery Program/Operational Plan Implications

Council engaged TCorp to complete an independent assessment of Council’s borrowing capacity and provided a report in April 2020.  This report concluded that Council met all ratio benchmarks and has capacity to service its existing and forecast debt repayments.  The key observations from this analysis revealed:

 

-     Operating performance was above benchmark from 2017 to FY2019 as Council increased its revenue base while being able to contain costs to an extent.  Operating performance is forecast to go into deficit for FY2022, however, it trends back into surplus from FY2023.

-     The Cash Expense Ratio (CER), used to measure liquidity, is forecast to remain above benchmark and indicates Council can continue paying for its immediate expenses without additional cash inflow for around 10 months.

-     Council is able to generate sufficient own source revenue to not have to materially rely on external sources of funding over the review period.

-     Council’s DSCR and ICR ratios indicate that Council has sufficient capacity to service its existing and forecast debt repayments on an on-going basis over the review period.

 

This project and the sources of funding are included in the 2021/22 Operational Plan and 2017-2022 Delivery Program.  The loan repayments within these documents are based on a 2.3% interest rate over a 30-year term.  Based on the best current indicative interest rate provided, interest costs over the entire 30-year term will be on average an additional $79K per annum compared to the funding model; however, this ensures no risk of a further interest rate increase after 20 years.

 

The repayments in the Operational Plan will be revised via the Quarterly Budget Review process in line with Council’s decision.

Risk Analysis:

The loan offers are based on a fixed interest rate for the period of the loan and therefore the Council is minimising any interest rate exposure risk as part of this borrowing.  In addition, Council mitigates its interest rate risk by opting for the longer term of 30 years rather than 20 years.

 

Consideration has been given to the option of borrowing through a credit facility for the build component and then locking in a fixed rate loan post construction.  However, given timing of the project’s cash flow requirements, Council will achieve a far better outcome in terms of risk by locking in a fixed rate loan over 30 years now.

Consultation:

The Office of Local Government, via TCorp, has been advised of the proposed borrowing.

Related Policy, Precedents and / or Statutory Requirements:

The procedures within the Loans Policy have been met.

Implementation Date / Priority:

It is proposed to drawdown the loan by 1 September 2021.

Conclusion:

In order to meet Council’s contractual commitments for the Cultural and Civic Space project it is recommended that Council progress the borrowing of funds in line with adopted Council minutes.  Three EOIs have been received offering funds to fulfil Council’s loan requirements and it is recommended that Council accept the loan offer to borrow $50.265M at a fixed rate over 30 years with the Commonwealth Bank of Australia.

 

 


BS21/51       Sale of 27-29 Duke Street, Coffs Harbour

Author:                        Group Leader Financial Services and Logistics

Authoriser:                  Director Business Services

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

Attachments:              ATT1  BS21/51   Location Plan

ATT2  BS21/51   CONFIDENTIAL Valuation Report

Confidential in accordance with Section 10A(2)(d)(i) 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.

ATT3  BS21/51   CONFIDENTIAL Desk Top Assessment Valuation  

ATT4  BS21/51   CONFIDENTIAL Proposed Purchaser   

 

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 27-29 Duke Street Coffs Harbour with a view to achieving a reasonable offer in line with market value.

 

27-29 Duke Street, Coffs Harbour, comprises a three level commercial office building with basement security car parking.  The proposed sale will reduce the Council’s reliance upon the interim loan which it resolved to undertake in the instance it was unable to sell 27-29 Duke Street, Coffs Harbour and 2 Castle Street, Coffs Harbour for the Cultural and Civic Space Project in Gordon Street, Coffs Harbour.

 

Council has held the property since February 2000 when it was purchased and the property has since operated as a commercial investment of Council providing Council office space on level 1 and has also accommodated the Coffs Harbour Library and Regional Art Gallery both on the ground floor.  The property is described legally as Lot 110 DP777398 and has a site area of some 2,023 square metres.  The lettable area of the building is approximately 4,185 square metres and some 52 car spaces are located in a secure basement car park.

 

The offered price of $11,750,000 plus GST is considered fair and reasonable and in line with current market conditions.  The prospective purchaser is noted within Confidential Attachment 4 to this report.  The property has been extensively exposed to the market and although other offers have been received, all have been below the current offer.  It is recommended that Council accept the offer.

 

Coffs Harbour City Council as part of the sale will continue to occupy those parts of the building, which it currently occupies on the ground level, level 1 and a small area on level 2.  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 $940,000 per annum gross.

 

Recommendation:

That Council:

1.    Approve the sale of Lot 110 DP 777398, 27-29 Duke Street, Coffs Harbour at the agreed price of $11,750,000 exclusive of GST.

2.    Note that each party will pay their own conveyancing costs in relation to the matter.

3.    Authorise the General Manager to execute all documents necessary to facilitate the sale and registration of the transfer and under the common seal of Council if required.

4.    Authorise the General Manager to execute a lease, for the components of the property Council currently occupies, for a three year period.

 

Report

Description of Item:

Council resolved on 14 May 2020 to decline previous offers received and pause the sale of both the properties known as 2 Castle Street and 27-29 Duke Street, Coffs Harbour.  The relevant part of the Resolution No. 2020/100 was as follows:

 

That Council:

 

1.   Decline to accept the amounts tendered via the expression of Interest process for the sale of Council properties that concluded on 9 April 2020, being

a.  Property (a) Administration Building, 2 Castle St, Coffs Harbour (Lot 2 DP 566885, Lot 1 DP 566855, Lot 8 Sec 6 DP 758258),

b. Property (b) Rigby House, 27-29 Duke Street Coffs Harbour (Lot 110 Sec DP 777398),

c. Property (c) Museum, 215A Harbour Drive, Coffs Harbour (Lot 101 Sec DP 1041655).

2.   Place a temporary pause on the inclusion of Property (a) Administration Building and Property (b) Rigby House from any Expression of Interest for sale process.

3.   …….

 

Council further resolved (Resolution No. 2021/18), in part, on 25 February 2021 to proceed with the sale of 27-29 Duke Street, Coffs Harbour as follows:

 

That Council:  ……..

 

5.   Authorise the General Manager to engage in negotiations with prospective buyers via the commercial real estate agent engaged by Council under the current agency agreement with a view to achieving a reasonable offer in line with market value for the following properties with or without Council lease back options:

5.1.    Administration Building, 2 Castle St, Coffs Harbour (Lot 2 DP 566885, Lot 1 DP 566855, Lot 8 Sec 6 DP 758258);

5.2.    Rigby House, 27-29 Duke Street Coffs Harbour (Lot 110 Sec DP 777398);

5.3.    Museum, 215A Harbour Drive, Coffs Harbour (Lot 101 Sec DP 1041655).

 

The proposed sale will reduce the Council’s reliance upon the interim loan which it resolved to undertake in the instance it was unable to sell 27-29 Duke Street, Coffs Harbour and 2 Castle Street, Coffs Harbour for the Cultural and Civic Space Project in Gordon Street, Coffs Harbour.

 

27-29 Duke Street, Coffs Harbour, comprises a three level commercial office building with basement security car parking.  Council has held the property since February 2000 at which time it was purchased for $3,100,000 and the property has since operated as a commercial investment of Council whilst also providing Council occupied office space on level 1 and has accommodated the Coffs Harbour Library and Regional Art Gallery both on the ground floor.

 

The property is legally described as Lot 110 DP777398 and has a site area of some 2,023 square metres.  The lettable area of the building is approximately 4,185 square metres and some 52 car spaces are located in a secure basement car park.

 

The property is zoned B3 Commercial Core under the provisions of the Coffs Harbour LEP 2013.

 

The offered price of $11,750,000 plus GST is considered fair and reasonable and in line with current market conditions.  The property has been extensively exposed to the market and although other offers have been received, all have been below the current offer.  It is recommended that Council accept the offer.

 

Coffs Harbour Council as part of the sale will continue to occupy those parts of the building, which it currently occupies on the ground level, level 1 and a small area on level 2.  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 $940,000 per annum gross.

 

The property is located on the corner of Duke and Coff Streets as shown by the location plan attached to this report as Attachment 1.

Issues:

In relation to the sale of the property, the main issue to resolve is the decision to proceed with the sale.  The offer made for the purchase of the property is considered fair and reasonable and in line with current market conditions and is also in line with a recent independent valuation obtained by Council and dated 9 June 2020 with a desktop review conducted on 13 August 2021 (Confidential Attachments 2 and 3).  Commercial property market conditions have remained strong in recent months.

Options:

Council has the following options available regarding sale of the property:

 

1.    Accept the offer and proceed with the sale and disposal of the asset.

2.    Reject the offer and continue negotiations to try to seek a higher offer.

3.    Reject the sale of the property, resolve to remove the property from sale and maintain it as a Council asset and consider alternative funding options for the Civic and Cultural Space project.

Sustainability Assessment:

•     Environment

The property comprises an existing building and associated facilities.  There is no further development proposed as a result of this report.  The transfer will have no environmental impacts, as this is a change of ownership only.

•     Social

The sale of the asset will allow the Council to contribute the proceeds from this component of the property sales towards the funding of the Cultural and Civic Space Project which will have significant social benefits for the whole Coffs Harbour.

•     Civic Leadership

The sale of the property is proposed because it will assist with the funding of the new Cultural and Civic Space building in Gordon Street, which will promote and extend Council facilities and services to the community.

•     Economic – Broader Economic Implications

There will be minimal impact because of the transfer.

•     Economic - Delivery Program/Operational Plan Implications

There are no major Delivery Program/Operational Plan implications from maintaining Council’s current position on the funding model for the sale of this property.  The sale proceeds and rentals have been included in Council’s updated Long Term Financial Plan for the Cultural and Civic Space Project.

Risk Analysis:

The risk in relation to this matter is considered low to medium.  The purchaser could change their mind at any point prior to exchange of contracts and if this occurred, the sale would not proceed.

Consultation:

All internal stakeholders have been consulted and no issues have been raised that would suggest the sale could not proceed.

Related Policy, Precedents and / or Statutory Requirements:

Section 377(1) (H) of the Local Government Act 1993 requires the formal approval of Council in regard to the sale or exchange or surrender of land.

 

The land to be transferred is classified as Operational Land.  Operational Land can be disposed of by Council via sale or transfer and is not bound by the restrictions imposed by Section 45 of the Local Government Act 1993.

Implementation Date / Priority:

This matter will be actioned immediately upon a resolution of Council.

Conclusion:

This report is brought back to Council as required by previous Council resolutions for further consideration of the highest offer that has been received for the property at 27-29 Duke Street, Coffs Harbour.  The offer is a result of further negotiations conducted by Burgess Rawson who are the commercial property real estate agents engaged by Council to sell the property.  The price offered is considered fair and reasonable and in line with current property market conditions.  The offer is in line with the values assessed by property group Savills Pty Ltd who provided an independent valuation of the property on Council’s behalf.

 


PDF Creator 


SC21/46       Delivery Program 2017-2022 - Six-Monthly Progress Report - 1 January to 30 June 2021

Author:                        Senior Corporate Planner

Authoriser:                  Director Sustainable Communities

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

Attachments:              ATT1  SC21/46   Delivery Program 2017-2022 - Six-Monthly Progress Report - 1 January to 30 June 2021  

 

Executive Summary

Under the Local Government Act, Council is required to report six-monthly on its progress against the principal activities detailed in the Delivery Program.

The Six-Monthly Progress Report (for the period 1 January to 30 June 2021) on the Coffs Harbour City Council 2017-2022 Delivery Program (Year 4) is tabled at this time. The Six-Monthly Progress Report identifies achievements and challenges recorded during the reporting period against its 2020/21 Operational Plan and provides updates on Council services, projects and key operational activities.

There are 272 Operational Plan actions detailed in the six-monthly report. The majority are recorded as being On Track; 35 are listed as Needing Attention, five as Critical and nine On Hold, generally reflecting the impacts of competing operational priorities or external factors such as COVID-19.

The report represents a considerable record of achievement by Council and its workforce in delivering positive outcomes for the Coffs Harbour community.

 

Recommendation:

That Council endorse the attached Six-Monthly Progress Report (for the period 1 January to 30 June 2021) on the Coffs Harbour City Council 2017-2022 Delivery Program (Year 4) for public release.

 

Report

Description of Item:

Coffs Harbour City Council began implementing its 2017-2022 Delivery Program (Year 4) on 1 July 2020 via its 2020/21 Operational Plan. The Delivery Program must include a method of assessment to determine the effectiveness of Council’s principal activities in achieving the objectives of the MyCoffs Community Strategic Plan (CSP). Progress reports must be provided to Council at least every six months. While it is a legislative requirement, the Six-Monthly Progress Report also represents a valuable opportunity for the organisation to evaluate its performance and account to the local community.

This report presents to Council the Six-Monthly Progress Report (for the period 1 January to 30 June 2021) for endorsement and public release.

Issues:

The Six-Monthly Progress Report is an overview of Council’s activities outlined in the 2020/21 Operational Plan that responds to the objectives and strategies of Coffs Harbour’s MyCoffs CSP. It refers to the period 1 January to 30 June 2021.

The progress updates include ‘traffic lights’ which indicate whether an action is On Track (green light), Needs Attention (yellow light), or Critical (red light). A grey traffic light indicates an action is On Hold - in these cases, the action may be yet to start, not active this reporting cycle, or awaiting funding.

A total of 29 Operational Plan actions progressed to completion during the reporting period, reducing the number of actions from 294 to 265. The updates indicate the majority of actions are On Track. A total of 35 actions are recorded as Needing Attention, five as Critical and nine On Hold; these reflect resourcing/workload issues and actions not funded in the 2021/21 financial year. Progress reports indicate how it is proposed to bring these actions back On Track.

The report represents the considerable record of achievement by Council and its workforce in delivering positive outcomes for the Coffs Harbour Local Government Area (LGA) community. The reporting period saw many highlights, including:

-     Commencement of the construction of the Coffs Harbour Cultural and Civic Space.

-     The commencement, from 1 June 2021, of the 50-year lease of the Coffs Harbour Airport.

-     The new sports complex site in Woolgoolga was named the Wiigulga Sports Complex in tribute to local Gumbaynggirr heritage and culture.

-     The construction of the Coffs Coast Regional Sports Hub is nearing completion.

-     Community Capital Infrastructure Grants totalling $258,816 were given to community groups in 2020/21.

-     A new playground opened at the Woolgoolga Main Beach.

-     Three Festival of New Thinking events were held and covered strategy, innovation and sustainability.

-     A Positive Ageing Committee was established to oversee the delivery of the Positive Ageing Strategy.

-     Council was a finalist at the 2021 NSW Local Government Excellence Awards for its approach to helping the community recover from the impacts of the 2019 bushfires and COVID-19.

-     The construction of the Botanic Gardens Glasshouse neared completion.

-     Construction and landscaping of the North Wall car park commenced.

-     Preparations for the Coffs Harbour Bypass are on track.

-     Extensive water, sewer and transport asset works were undertaken.

-     Delivery of land management, environmental and sustainability initiatives.

-     Delivery of a range of community, economic and sporting programs.

Options:

As this report is to enable compliance with a legislative requirement and the public release of an information resource for Council and the community, an options analysis is not required.

Sustainability Assessment:

•     Environment

The report considers Council’s progress and performance in regard to the delivery of environmental strategies for the Coffs Harbour Local Government Area.

•     Social

The report considers Council’s progress and performance in regard to the delivery of social strategies for the Coffs Harbour local government area. The preparation and publication of the report is consistent with Council’s commitment to accountability to the community.

•     Civic Leadership

The Integrated Planning and Reporting Framework enables Council to identify and respond to community aspirations and co-ordinate the provision of appropriate works and services to help achieve the objectives of the MyCoffs CSP. This is consistent with the CSP strategy D.2 ‘We have effective use of public resources’.

•     Economic – Broader Economic Implications

The report considers Council’s progress and performance in regard to the delivery of strategies aimed at stimulating the economic sustainability of the Coffs Harbour local government area.

•     Economic - Delivery Program/Operational Plan Implications

The annual development and review of the Delivery Program and Operational Plan are accommodated within Council’s budget structure. This expenditure is monitored through Council’s monthly and quarterly budget reviews.

Risk Analysis:

The preparation of a Six-Monthly Progress Report is a legislative requirement. A risk analysis is not applicable in this instance.

Consultation:

The preparation of this report involved engagement with Executive Leadership, Group Leaders and staff responsible for reportable actions across Council.

Related Policy, Precedents and / or Statutory Requirements:

Section 404 of the Local Government Act 1993 applies to this Progress Report. In summary, it requires that:

-     A council must have a Delivery Program, detailing the principal activities it will undertake to achieve the objectives established in the CSP, within the resources available under the Resourcing Strategy.

-     The Delivery Program must include a method of assessment to determine the effectiveness of each principal activity detailed in the Delivery Program in achieving the objectives at which the activity is directed.

-     The General Manager must ensure that progress reports are provided to the council, with respect to the principal activities detailed in the Delivery Program, at least every 6 months.

Implementation Date / Priority:

If endorsed by Council, the Six-Monthly Progress Report (for the period 1 January to 30 June 2021) on the Coffs Harbour City Council 2017-2022 Delivery Program (Year 4) will be published as soon as it is practical to do so.

Conclusion:

The Six-Monthly Progress Report (for the period 1 January to 30 June 2021) on the Coffs Harbour City Council 2017-2022 Delivery Program (Year 4) identifies specific achievements or challenges recorded during the reporting period and provides updates on Council Services, projects and key operational activities.

While it satisfies a legislative requirement, the report is a valuable resource to assist the community to understand what Council does and how effective it is in helping to achieve the objectives of the MyCoffs CSP.

It is recommended that Council endorse the report for public release.

 


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


SC21/47       Submission to Regional Housing Taskforce

Author:                        Section Leader Local Planning

Authoriser:                  Director Sustainable Communities

MyCoffs:                      B.2 A community achieving its potential

Attachments:              ATT1  SC21/47   Submission to the Regional Housing Taskforce  

 

Executive Summary

The Regional Housing Taskforce (the Taskforce) was formally announced in June 2021 by the Minister for Planning and Public Spaces to identify challenges in the planning system that are preventing the delivery of housing supply in regional NSW. The Taskforce will focus on technical planning barriers to new housing and will formulate recommendations to improve housing outcomes in regional NSW.

The Taskforce is required to submit its findings and recommendations to the Minister for Planning and Public Spaces in September and October 2021. It is accepting written submissions to 27 August 2021.  The purpose of this report is to endorse a submission for lodgement with the Taskforce (Attachment 1).

 

Recommendation:

That Council endorse and lodge a submission to the Regional Housing Taskforce (Attachment 1).

 

Report

Description of Item:

The Taskforce has been set up to identify challenges in the planning system that are preventing the delivery of housing supply in regional NSW. It will focus on the technical planning barriers that prevent new housing being delivered within the strategic context of the NSW Housing Strategy and will formulate recommendations to improve housing outcomes.

The purpose of the Taskforce is to:

-     undertake consultation with local government and experts from the development and housing sectors to identify barriers in the planning system to new supply and develop potential solutions;

-     advise the Minister for Planning and Public Spaces on the findings of the consultation and research and recommendations to achieve better housing outcomes for regional NSW though the planning system; and

-     contribute to the evidence base identifying housing challenges and planning barriers to housing delivery, building on existing background work to inform future government housing initiatives and provide advice to the Housing Expert Advisory Panel, when established.

The Taskforce will utilise a collaborative approach between agencies, drawing on the expertise and statutory powers of each agency.

Issues:

In addition to the challenges faced by Australian housing markets nationally, regional NSW faces unique housing challenges, linked to diverse economic, environmental and social pressures, and a complex policy context. Changes in migration patterns and housing preferences resulting from COVID-19, growing unaffordability, low rental vacancy rates and mismatches between supply and demand are increasingly placing pressure on regional communities.

The issue is complex. The high cost of housing in Australia has been at the forefront of a range of recent policy debates including Australia’s taxation arrangements and their impact on housing affordability in Australia for both owners and renters. Traditionally, the provision of affordable housing has been more the responsibility of state governments than local governments or the private sector. The issue needs a whole of government approach to be addressed well.

On 22 July 2021, Council resolved to develop an Affordable/Social Housing Policy, which will delve into the issues as they relate to Coffs Harbour at the local government level. This work is due to commence once funding becomes available. In the meantime, it is important that Council make a submission to the Taskforce to express the matters of concern that are known at this time.

The Taskforce is focussed on barriers within the NSW planning framework. Council’s submission (Attachment 1) addresses some of these issues. However, it also makes the point that property economics, federal tax policies, development feasibilities, market conditions, economic incentives and other factors also influence the delivery of housing; and that it is not solely caused by barriers created by the NSW planning framework.

Options:

Council has a number of options available in relation to this matter. They include:

1.   Resolve to adopt the recommendations of this report.

2.   Resolve to undertake an alternative approach.

Option 1 is recommended as the suitable course of action.

Sustainability Assessment:

•     Environment

Council’s adopted Local Growth Management Strategy 2040 includes a housing strategy that promotes the facilitation of infill development to meet the forecast housing demand within the LGA for the next 20 years. The adopted compact city model will ensure that the urban footprint expansion will be contained to protect the local environment.

•     Social

Lodgement of the submission is consistent with the MyCoffs Community Strategic Plan strategies A1.2, A1.3 and B1.2; Objective P5 of Council’s Local Strategic Planning Statement (and actions A5.1, A5.2, A5.3 and A5.4); and Council’s adopted Local Growth Management Strategy 2040.

•     Civic Leadership

Providing information to the NSW Government on local and regional issues is important to ensure all levels of government better understand these complex issues. 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 findings of the Taskforce may result in changes to NSW housing policies, planning law and future updates of the North Coast Regional Plan.

•     Economic - Delivery Program/Operational Plan Implications

This submission has been prepared in-house by Council staff and has no impact on Council’s adopted Delivery Program and Operational Plan.

Risk Analysis:

It is important that Council’s thoughts on this matter be considered by the Taskforce. The biggest risk associated with this submission is if Council chooses not to lodge it, Council’s thoughts will not be provided to the NSW Government.

Consultation:

There is no consultation associated with this submission. However, the community will be fully engaged during the preparation of Council’s anticipated Affordable / Social Housing Policy.

Related Policy, Precedents and / or Statutory Requirements:

-     North Coast Regional Plan 2036 - Direction 25

-     My Coffs Community Strategic Plan

-     Coffs Harbour Local Strategic Planning Statement 2020

-     Coffs Harbour Local Growth Management Strategy 2040.

-     NSW Environmental Planning and Assessment Act 1979 - Section 7.32 & Section 7.11

-     NSW State Environmental Planning Policy (Affordable Rental Housing) 2009

-     NSW State Environmental Planning Policy 70 Affordable Housing (Revised Schemes)

Implementation Date / Priority:

This submission will be forwarded to the Taskforce immediately it is endorsed by Council.

Conclusion:

This report provides a submission for lodgement with the Regional Housing Taskforce (Attachment 1). The Taskforce will then report submissions, findings and recommendations to the Minister for Planning and Public Spaces to identify challenges in the NSW planning system and to formulate recommendations to improve housing outcomes in regional NSW.

 

 


PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator