Ordinary Council Meeting Minutes                                                     26 August 2021

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MINUTES

coffs harbour CITY cOUNCIL
Ordinary Council Meeting
VIA AUDIO VISUAL lINK

ON Thursday, 26 August 2021 AT 5.00pm

 

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

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

 

Leave of Absence      Nil

Opening of Ordinary Meeting

The meeting commenced at 5.01pm with the Mayor, Cr Denise 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.

The Mayor acknowledged the passing of Uncle Trevor Wilson, and held a minutes silence in his honour.

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.

Public forum

No public forum.

 

 

PROCEDURAL Motion

2021/185

Resolved (Cr Denise Knight / Cr Sally Townley)

That the disclosures of interest be moved forward.

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

Carried

 

Disclosure of Interest

Councillor

Items

Type of Interest

Cr Denise Knight

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

Non-Pecuniary - Less Than Significant Conflict as she is a Director on Prosper Coffs.

Cr Michael Adendorff

BS21/50 Loan Borrowing – Cultural and Civic Space

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

Cr Michael Adendorff

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

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

 

 

Apologies

No apologies.

 

 

 

LEAVE OF ABSENCE

No leave of absence.

 

 

Mayoral Minute

 

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

2021/186

Resolved (Cr Denise Knight)

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.

 

 

Cr Amos gave notice of a Foreshadowed Amendment.

 

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

Against:  Cr Amos

 

Carried

 

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

 

FORESHADOWED Motion

 

(Cr Paul Amos)

That Coffs Harbour City Council support all NSW local Government areas in opposing any activities in the proximity of their respective drinking water catchments that may impact on the purity of that drinking water.

Confirmation of Minutes

2021/187

Resolved (Cr George Cecato / Cr Tegan Swan)

That the minutes of the Ordinary Meeting held on 12 August 2021 be confirmed.

 

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

Carried

 

 

General Manager's Reports

 

GM21/13         Council Meeting Dates

 

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.

 

2021/188

Resolved (Cr Paul Amos / Cr George Cecato)

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.

 

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

Carried

 

 

Directorate Reports - Business Services

 

BS21/47          Bank and Investment Balances for 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.

 

2021/189

Resolved (Cr George Cecato / Cr Tegan Swan)

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.

 

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

Carried

 

BS21/48          Certification of Draft 2020/21 Annual 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.

 

2021/190

Resolved (Cr Sally Townley / Cr George Cecato)

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.

 

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

Carried

 

 

 

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

 

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.

 

 

Motion (Cr Sally Townley / Cr Tegan Swan)

That Council:

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

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

 

Amendment

2021/191

RESOLVED (Cr Paul Amos / Cr Keith Rhoades)

That Council:

1.       Adopt the attached amended Park Beach Area Contributions Plan (Attachment 1) to commence on 30 November 2021.

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

 

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

 

The AMENDMENT then became the MOTION.

 

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

 

Carried

 

 

 

BS21/50          Loan Borrowing - Cultural and Civic Space

 

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.

 

2021/192

Resolved (Cr Denise Knight / Cr George Cecato)

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.

 

 

Cr Amos gave notice of a Foreshadowed Motion.

 

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

Against:  Crs Amos, Arkan and Rhoades

 

Carried

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

 

FORESHADOWED Motion

 

(Cr Paul Amos)

Council accept the loan option of option C in attachment 1 as the resolved funding solution.

 

 

 

 

BS21/51          Sale of 27-29 Duke 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 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.

 

 

Motion (Cr Denise Knight / Cr George Cecato)

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.

 

 

Cr Arkan gave notice of a Foreshadowed Motion.

 

Motion put

2021/193

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

 

Motion

2021/194

Resolved (Cr Denise Knight / Cr George Cecato)

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.

 

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:

1.      Delay the sale of Lot 110 DP 777398, 27-29 Duke Street, Coffs Harbour and arrange an auction marketing process.

2.      Commence a marketing strategy to advertise the sale of the property immediately.

 

 


 

Directorate Reports - Sustainable Communities

 

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.

 

Motion (Cr Sally Townley / Cr George Cecato)

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.

 

Amendment

2021/195

RESOLVED (Cr Paul Amos / Cr Tegan Swan)

That Council:

1.    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.

2.      Include an additional report relating to items removed or included from the original 2020/2021 operational plan.

3.      In future when preparing the six monthly progress reports for presentation to Council are to include a section that identifies items removed from or addended to the original operational plan.

 

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

 

The AMENDMENT then became the MOTION.

 

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

Carried

 

 


 

 

SC21/47          Submission to 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).

 

2021/196

Resolved (Cr Sally Townley / Cr John Arkan)

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

 

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

 

Carried

 

 

Questions on notice

No questions on notice.

 

 

Matters of an Urgent Nature

 

MUN21/10      Developer Contributions and our plans

 

Cr Rhoades would like presented to the next ordinary meeting of Council, a Mayoral Minute or staff report highlighting that Coffs Harbour City Council supports the current position of LGNSW, in opposing the environmental planning and assessment (infrastructure contirbution) Bill.

 

 

 

MUN21/11      Covid-19 Situation in Coffs Harbour

 

Cr Denise Knight encouraged everyone to get vaccinated and advised she is advocating for a vaccination hub to be set up in the CBD.

 


 

 

Close of Meeting

The Meeting closed at 7.05pm.

 

Confirmed:  9 September 2021.

 

 

 

 

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

Denise Knight

Mayor