commencing at 9:00 am Corner Tozer and Elbow Streets, West ... · 7/28/2020 · 7.1 NEW SOUTH...

Ordinary Council Meeting - 28 July 2020

A Council meeting will be held on Tuesday 28 July 2020 in the Council Chambers located Corner Tozer and Elbow Streets, West Kempsey

commencing at 9:00 am


INDEX 1 OPENING PRAYER ..............................................................................................................................3 2 ACKNOWLEDGEMENT OF COUNTRY .................................................................................................3 3 APOLOGIES AND APPLICATIONS FOR A LEAVE OF ABSENCE BY COUNCILLORS ................................3 4 CONFIRMATION OF MINUTES ...........................................................................................................3 5 DISCLOSURES OF INTEREST ...............................................................................................................3 6 ITEMS PASSED BY EXCEPTION ...........................................................................................................4 7 MAYORAL MINUTES ..........................................................................................................................5

7.1 NEW SOUTH WALES LOCAL ROADS CONFERENCE COMMUNIQUE ...........................................................5 8 REPORTS OF COMMITTEES ...............................................................................................................7 9 REPORTS TO COUNCIL .......................................................................................................................8

9.1 OPERATIONAL PLAN 2020-21 AND INTEGRATED PLANNING AND REPORTING ITEMS .............................8 9.2 YOUR FUTURE MACLEAY - GROWTH & CHARACTER LOCAL STRATEGIC PLANNING STATEMENT ...........19 9.3 KLEP2013-AM-29 - VILLAGE OF HAT HEAD ..............................................................................................22 9.4 MAYORAL AND COUNCILLOR FEES FOR 2020/2021 ................................................................................28 9.5 NEW SOUTH WALES ROAD CLASSIFICATION REVIEW AND TRANSFER ....................................................30 9.6 FIXING LOCAL ROADS GRANT ANNOUNCEMENTS ...................................................................................35 9.7 KEMPSEY AIRPORT - SUCCESSFUL FUNDING APPLICATION UNDER THE REGIONAL AIRPORTS PROGRAM

.................................................................................................................................................................38 9.8 COUNTRY UNIVERSITY CENTRE - FUNDING APPLICATION UPDATE .........................................................41 9.9 FRAUD AND CORRUPTION CONTROL POLICY ..........................................................................................43 9.10 DEVELOPMENT ACTIVITY AND LEP VARIATIONS - QUARTERLY SNAPSHOT - 4TH QUARTER ...................45 9.11 STATEMENT OF CASH AND INVESTMENTS - JUNE 2020 ..........................................................................47

10 NOTICES OF MOTION/QUESTIONS WITH NOTICE ...........................................................................49 10.1 QUESTIONS ON NOTICE ...........................................................................................................................49

11 CONFIDENTIAL MATTERS ................................................................................................................60 11.1 LEGAL MATTERS .......................................................................................................................................61

12 CONCLUSION OF THE MEETING ......................................................................................................61


1 OPENING PRAYER “Dear Lord, help us in our deliberations today so that our decisions will be for the greater good for the whole of Kempsey Shire - Amen”. 2 ACKNOWLEDGEMENT OF COUNTRY “Council acknowledges that this meeting is being held on the traditional lands of the Dunghutti People”. 3 APOLOGIES AND APPLICATIONS FOR A LEAVE OF ABSENCE BY COUNCILLORS That the apology submitted by Councillors for non-attendance at the meeting be accepted and leave of absence granted. 4 CONFIRMATION OF MINUTES That the minutes of the ordinary meeting of Kempsey Shire Council dated 16 June 2020 be confirmed. Attachments 1. 2020-06-16-draft-minutes-r 2 [4.1.1 - 19 pages] 5 DISCLOSURES OF INTEREST That Councillors' declared interests be noted.


6 ITEMS PASSED BY EXCEPTION The council or a committee of council may, at any time, resolve to adopt multiple items of business on the agenda together by way of a single resolution. Before the council or committee resolves to adopt multiple items of business on the agenda together, the chairperson must list the items of business to be adopted and ask councillors to identify any individual items of business listed by the chairperson that they intend to vote against the recommendation made in the business paper or that they wish to speak on. The council must not resolve to adopt any item of business that a councillor has identified as being one they intend to vote against the recommendation made in the business paper or to speak on. RECOMMENDED: That the recommendations contained in the following items be adopted:

9.3 KLEP2013-AM-29 - VILLAGE OF HAT HEAD 9.4 MAYORAL AND COUNCILLOR FEES FOR 2020/2021 9.5 NEW SOUTH WALES ROAD CLASSIFICATION REVIEW AND TRANSFER 9.6 FIXING LOCAL ROADS GRANT ANNOUNCEMENTS 9.7 KEMPSEY AIRPORT - SUCCESSFUL FUNDING APPLICATION UNDER THE REGIONAL

AIRPORTS PROGRAM 9.8 COUNTRY UNIVERSITY CENTRE - FUNDING APPLICATION UPDATE 9.9 FRAUD AND CORRUPTION CONTROL POLICY 9.10 DEVELOPMENT ACTIVITY AND LEP VARIATIONS - QUARTERLY SNAPSHOT - 4TH

QUARTER 9.11 STATEMENT OF CASH AND INVESTMENTS - JUNE 2020 11.1 LEGAL MATTERS


7 MAYORAL MINUTES 7.1 NEW SOUTH WALES LOCAL ROADS CONFERENCE COMMUNIQUE Councillor Liz Campbell, Mayor File No F19/1720 Attachments 1. 2020 NSW Local Roads Conference Communique [7.1.1 - 8 pages]

PURPOSE To provide an overview of the Institute of Public Works Engineering Australasia (“IPWEA”) 2020 (annual) NSW Local Roads Conference and to support the Conference Communique.

RECOMMENDATION That Council:

1. Note the information provided within this report on the annual Local Roads Conference held for 2020.

2. Endorse the Conference Communique. 3. Progress the Conference Communique by writing to the following Ministers and Local NSW

and Australian Government MPs, seeking their support for the 2020 NSW Local Roads Conference outcomes:

a. Member for Oxley, the Honourable Melinda Pavey MP b. Member for Cowper, the Honourable Pat Conaghan MP c. The Honourable Shelley Hancock MP, Minister for Local Government d. The Honourable Andrew Constance MP, Minister for Transport and Infrastructure e. The Honourable Paul Toole MP, Minister for Regional Transport and Roads f. The Honourable Michael McCormack MP, Deputy Prime Minister and Minister for

Infrastructure, Transport and Regional Development BACKGROUND The NSW Roads and Transport Directorate is a joint initiative between IPWEA NSW and Local Government NSW to optimise roads and transport throughout the State.

The Directorate coordinates the annual Local Roads Conference, which is an invaluable tool in managing and maintaining the road network throughout NSW.

2020 Local Roads Conference

The annual conference recognises the critical role of Local Government as a provider of local and regional transport infrastructure in partnership with the NSW and Australian Governments.

Kempsey Shire Council is a member of IPWEA and both myself and the Director Operations & Planning, Robert Fish, attended relevant parts of this years’ annual conference held on 1 and 15 June 2020.

Due to the current COVID climate within which we find ourselves, this years’ conference was delivered as a virtual conference.

This years’ conference focused on “Connecting the Dots” being the link between Emergency Management, Management of Assets, Road Safety and Resources - strategic areas which are interrelated and of primary importance to Local Government.


Day 1 of the conference focused on challenges associated with ‘Saving lives on local roads’ and road safety in general. Safe roads for our community is imperative and the conference highlighted the need for all levels of Government to work together in order to achieve this.

Day 2 of the conference focused on the demands related to ‘Addressing future infrastructure needs of local communities’. Limited funding and natural disasters of late, have seen a number of challenges faced with respect to maintaining our road and transport network.

A key outcome of this years’ conference was the production of the Conference Communique (see attached). The Communique focuses on:

Saving Lives on Local Government Roads; NSW Road Classification Review; Funding Levels to Maintain Local Government Road Assets; and Disaster Recovery

The Communique also called on all Council’s in NSW to progress the Communique by writing to the relevant Ministers and our Local NSW and Australian Government MPs seeking their support for the conference outcomes. It also calls on the NSW Government to develop a sustainable funding model for Local Government in NSW and to find equitable and sustainable ways to maintain and increase current funding for infrastructure investment and long-term asset management.

CONCLUSION This years’ conference called for continued action from all levels of Government to use the current challenges our local communities are facing with respect to increasing infrastructure maintenance backlogs, aftermath of bushfires, ongoing drought and COVID in order to deliver safe, efficient and resilient road and transport infrastructure throughout New South Wales and particularly, our Shire.

The issues raised at this years’ conference are applicable not only to Kempsey Shire Council, but all Council’s throughout NSW.

It is recommended that Council formally support the outcomes as outlined in the attached Conference Communique and lobby government to implement those applicable outcomes for the betterment of our Shire and NSW as a whole.


8 REPORTS OF COMMITTEES Nil


9 REPORTS TO COUNCIL 9.1 OPERATIONAL PLAN 2020-21 AND INTEGRATED PLANNING AND REPORTING ITEMS Officer Kathryn Parker, Corporate Performance Coordinator File No F19/2079 Attachments 1. Operating Plan 2020-21 FINAL [9.1.1 - 49 pages]

2. Revenue Policy 2020-21 FINAL [9.1.2 - 10 pages] 3. LTFP 2020-21 FINAL [9.1.3 - 37 pages] 4. Rate Categories-2020-2021 FINAL [9.1.4 - 11 pages] 5. Submissions Summary July 2020 [9.1.5 - 9 pages] 6. Combined Public Submissions OP Redacted [9.1.6 - 43 pages]

PURPOSE To adopt the draft Operational Plan 2020-21 and associated integrated planning and reporting documents (Revenue Policy, Long Term Financial Plan and Rate Categories maps) following public exhibition, consideration of submissions and internal review.

This follows the adoption of the 2020-21 Fees and Charges and 2020-21 Rates by Council on 16 June 2020.

RECOMMENDATION That Council adopt the following Integrated Planning and Reporting documents with the changes outlined in this report for the 2020-21 year:

1. Operational Plan 2020-21 2. Revenue Policy 2020-21 3. Long Term Financial Plan 2020-30 4. Rate Categories 2020-21

BACKGROUND In 2009, the NSW Government adopted a new Integrated Planning and Reporting (IP&R) framework within the Local Government Act (1993) which legislates the way councils draw their plans together, and the attached plans and policy reflect the statutory IP&R requirements.

As a result of the COVID-19 pandemic, the Office of Local Government (Circular 20-12) announced changes to support Councils with a one month extension to adopt their Operational Plan 2020-21 (including Revenue Policy, Fees and Charges and annual budget) and final suite of IP&R documents before 31 July 2020.

Under normal circumstances, the Schedule of Fees and Charges would be adopted at the same time as Council’s full suite of IP&R documents, including the Revenue Policy. However, given the impacts of the COVID-19 pandemic and a need to review forecast income and expenditure, Council availed itself of the extension option, deferring the adoption of its Operational Plan 2020-21 and Long Term Financial Plan (LTFP) until this meeting. The 2020-21 Schedule of Fees and Charges were adopted on 16 June 2020 so that fees and charges could take effect from 1 July 2020.

The draft IP&R documents were placed on exhibition for 28 days following a resolution of the 21 April 2020 Ordinary Council meeting. The exhibition period closed on 22 May 2020 with 16 submissions received in relation to the Operational Plan, the Revenue Policy, and the LTFP. There were also three submissions received in relation to Fees and Charges and these submissions were considered at the 16 June 2020 meeting.


The extension of time has also enabled Council to re-consider its plans for the 2020-21 year. In accordance with the resolution from the 21 April 2020 Council meeting, a workshop with Councillors was held on 27 May 2020 to review Council’s budget and consider options that would result in an improved budget position. As a result of these processes, there has been internal revision and remodelling of the ten-year financial plan and a reassessment of the 2020-21 budget and operating and capital works program.

The changes to the various plans are summarised in this report at Table 2.

Copies of the submissions received are included as an attachment to this report. A summary of the submissions, which includes responses from Council staff, has also been attached to this report.

KEY CONSIDERATIONS Operational Plan

The one-year Operational Plan details the activities, performance measures and budgets for the 2020-21 financial year to achieve Council's commitments in the Delivery Program 2017-2021.

The Operational Plan 2020-21 has been developed in accordance with section 405 of the Local Government Act.

The Operational Plan is organised by the community themes in the Delivery Program 2017-2021 being Healthy, Wealthy, Safe, Connected and Governance. These also directly link to Council’s Macleay Valley 2036 Community Strategic Plan.

The Operational Plan includes a 2020-21 Budget Statement that projects a consolidated operating surplus, inclusive of income associated with capital grants and contributions, of $22.6M based on total income of $98.4M and total expenses of $75.7M. Excluding capital grants and contributions, the consolidated operating result is a $1.7M deficit. The General Fund has a projected 2020-21 net operating surplus of $15.2M, but a $3.2M deficit when capital grants and contributions are excluded.

The 2020-21 financial year will see Council continue to deliver a large capital investment program ($54M in total across all three funds) with significant continued investment in the ongoing maintenance and rehabilitation of sealed and unsealed roads, and our water and sewer networks. The 2020-21 year also includes various grant funded projects across the Shire that will result in improved sports grounds, new playgrounds and new amenities. A key component of Council’s Operational Plan will also be the delivery of numerous projects identified in the Recovery Action Plan. These projects are predominantly grant funded projects that will be delivered from Federal and State Government bushfire and drought funding.

Appendix 7 in the Long Term Financial Plan provides a complete listing of all capital projects greater than $50k. These projects account for around 94% of the total budgeted capital expenditure. Some of the significant community projects that will be undertaken during the 2020-21 year are detailed below, noting that for some projects the listed capital expenditure amount represents only the 2020-21 portion of that project's total investment.

Sealing of Point Plomer Road ($3.4M) South West Rocks High Performance Centre ($2.7M) – subject to additional funding

contributions Verge / Eden sports complex implementation of Masterplan ($2M) Major roads including South West Rocks ($1.15M), Plummers Lane ($1.87M) and Stuarts

Point Road ($1.35M)


Armidale Road safety improvements ($655k) Airport – Apron hardstand with fuel water interceptor ($730k) Clyde Street Mall car park renewal ($889k) Parks improvements such as: Smithtown Nestle Park ($208k), Willawarrin playground

replacement ($179k) and Willawarrin showground ($221k) Kempsey Library upgrade ($461k) Crescent Head cabin replacement program ($1.85M) Crescent Head Water Treatment Plant ($3.62M) Willawarrin Water Treatment Plant ($574k) Steuart McIntyre Dam Emergency Water Treatment Plant ($2.0M) South Kempsey Pressure Sewer ($2.2M) Construction of a new cell at Waste Management Centre ($1M)

Additionally, $2.6M will be invested in replacing and upgrading Council’s fleet, while a further $1.2M will be invested in Councils IT infrastructure.

It should be noted that several significant projects have not been incorporated into the 2020-21 Operational Plan or budget, or the LTFP, due to the recent timing of the grant funding announcements. These projects, which are the subject of a separate report to this Council meeting, will be addressed in the September Quarterly Budget Review and include the following projects:

Sealing of Maria River Road (a joint $17M project with Port Macquarie-Hastings Council) South West Rocks Road (between Kinchela and Jerseyville) rehabilitation and resurfacing

project ($2M) Rural Road heavy patching and resealing program ($935k)

Furthermore, Council will continue to make critical improvements across the operation and management of the Council organisation through the implementation of the adopted Financial Sustainability Strategy and ongoing focus on seven (7) priority areas within Council’s Corporate Improvement Program. These priority areas are still considered fundamental to moving the council organisation forward to meet the expectations of the community in a sustainable way over the long term.

Revenue Policy

Council delivers a wide range of fees and chargeable services to the community. In determining the appropriate level of fees to be charged, a range of issues are considered such as what is fair and equitable, and how much the service costs to provide.

These factors are detailed in Council’s Revenue Policy which has been developed in accordance with the Operational Plan requirements of Section 405(2) of the Local Government Act and its regulations.

Additional modifications of the policy have been made to reference Council’s Hardship Relief and Ratepayers procedure, and other relief measures in relation to COVID-19 that were considered important and adopted at the 21 April 2020 Council meeting.

The policy has also been updated to reflect changes made to Income and Expenditure forecasts for General Fund, Water Fund and Sewer Funds, as well as tables relating to Ordinary Rates, Water Supply Access Charges, Sewerage Access and Usage Charges and Stormwater Management Service Charges. Additionally, Interest on Overdue Rates and Charges and Proposed Borrowings for the


2020-21 year have also been updated to reflect updated assumptions. These changes are detailed in Table 2 as a result of the internal review.

There were no submissions received on the Revenue Policy during the exhibition period.

Long Term Financial Plan

The Long Term Financial Plan (LTFP) is an important part of Council’s integrated and strategic planning process. The LTFP is required to have a minimum ten (10) year time horizon and is updated annually as part of the development of the Operational Plan.

The LTFP shows how Council has analysed and planned its financial resources to manage its assets, infrastructure and operations over the next ten years. It shows how Council will manage its finances to implement the strategies outlined in the Community Strategic Plan that have a ten year plus timeframe, the four-year Delivery Program and the annual Operational Plan.

While long term financial planning is a requirement of the legislation, the inherent uncertainty of these predictions should be noted when assessing these forecasts. These difficulties are even more acute given the ongoing COVID-19 pandemic, and the uncertainty likely to prevail in local, regional, state and international economic (financial, housing, employment) markets over the medium term. Council’s forecasts therefore, reflect known impacts and are based on currently available information, and reflect its planning to sustain its local workforce, community, economic and infrastructure priorities.

The attached 2020-30 LTFP contains detailed 10-year forecasts for all three (3) funds – General Fund, Water Fund and Sewer Fund. Of note is Council’s General Fund, which is currently in a deficit position and this operating deficit is forecast to continue over the 10-year time horizon of the LTFP (2020-21 to 2029-30). This indicates that Council is not generating enough revenue to fund its operating costs.

As previously noted, a workshop with Councillors was held on 27 May 2020, in accordance with the resolution from the 21 April 2020 Council meeting, to review Council’s budget and consider options that would result in an improved budget position. A number of budget saving opportunities – pertaining to both operating and capital expenditure – were identified as opportunities to reduce expenditure and improve the budget position, particularly in relation to the General Fund. Subsequently, further detailed budget reviews were undertaken and a number of additional savings opportunities identified. This resulted in the 2020-21 General Fund operating deficit (excluding income from capital grants and contributions) improving from a deficit of $7.6M in the draft budget and LTFP to a deficit of $3.2M in the proposed final budget and LTFP. The outer year forecast deficits have similarly reduced, resulting in substantially improved longer term financial forecasts.

The improved 2020-21 operating deficit can primarily be attributed to the following changes:


2020-21 Draft LTFP Operating Result [surplus/(deficit)] ($7.6M)

Deprecation – reduced depreciation expense $3.3M

Reduced Employee Costs $1.2M

Other – various offsetting budget adjustments (increases and decreases) ($0.1M)

2020-21 Final LTFP Operating Result [surplus/(deficit)] ($3.2M)

While significant improvements to the General Fund operating deficit position have been achieved, the forecast position is still not acceptable as deficits are forecast for the life of the LTFP. Additional work is planned to continue to address the deficit position and longer term financial sustainability remains a key priority and focus area.

Key initiatives to deliver longer term financial sustainability include:

Financial Sustainability Strategy – Council is continuing to deliver a number of the actions and initiatives detailed within its adopted Financial Sustainability Strategy. A number of financial system improvements have been made and these systems, combined with better processes, are providing improved financial reporting and management.

Asset management – improvements are continuing to be progressed via several key projects and initiatives. These projects will deliver improved asset condition information and reporting and enable better decisions to be made with regards to the management, maintenance and future replacement of Council’s various assets.

Environmental sustainability projects are actively being identified and assessed, such as the recently delivered streetlight replacement project, which have the potential to reduce Council’s ongoing operational costs, in addition to delivering environmental benefits.

Integrated Water Cycle Management – a review of the Water Fund and Sewer Fund financial sustainability is currently in progress. This is in light of Council’s substantial capital works programs across these asset categories over the next 10 years. This review will deliver advice on the affordability of current and forward programs and determine whether further consideration of project delivery options is required. The review is being undertaken with the aim of ensuring the financial position of these Funds can be managed appropriately.

Corporate Projects Team – with the delivery of Council’s corporate business system largely complete, staff resources have been reallocated from the corporate business system project implementation team to form a small Corporate Projects Team with responsibility for delivering Council’s Financial Sustainability Strategy initiatives and other financial business process improvements.

The LTFP includes a sizeable capital expenditure program for 2020-21, representing $54M in total across all three funds. This program has been reviewed to ensure planned capital expenditure programs are achievable and can ultimately be delivered to not only deliver important infrastructure but also support economic and business recovery associated with the COVID-19 pandemic. A detailed listing of all capital expenditure projects greater than $50k is included as Appendix 7 within the LTFP.

As detailed in the 2020-21 Revenue Policy $8.5M of loan borrowings have been assumed within the LTFP for the 2020-21 financial year. This represents $6M in the General Fund and $2.5M in the Water Fund. The loans are to fund capital expenditure associated with the proposed new landfill


cell, IT infrastructure projects, Corporate Business System implementation, bridges, foreshore works, airport and water augmentation works.

There were 2 submissions received on the proposed LTFP during Council’s public exhibition. These were noted as support for Council’s proposed capital works and roads infrastructure programs, such as the sealing of Point Plomer Road.

Changes are recommended to the LTFP 2019-2029 as a result of the detailed analysis of budget inputs and underlying assumptions. The changes are summarised in Table 2 below.

Community Engagement

There were a series of community engagement actions undertaken as part of the public exhibition period to promote the opportunity for the community to have a say on the draft IP&R documents.

These actions are summarised in the table below.

Table 1: Community Engagement

Item Description

Your Say Macleay Site

(dedicated community engagement website)

IP&R document suite posted on Your Say Macleay, to monitor downloads and participation:

Over 1,000 visits to the Your Say Macleay project site

527 document downloads

190 Operational Plan (draft) downloads

37 Revenue Policy (draft) downloads

35 Long Term Financial Plan (draft) downloads

23 Rate categories 20-21 (draft) downloads

Mayors Column Referenced in the Mayors Column – 4 May

Website Promotion Banner slider on Council website and link on KSC website on Public Exhibition homepage for the same exhibition period as Your Say Macleay

Media Promotion Media releases distributed 24 April and 20 May

Social Media Promotion Facebook posts during the period to promote plans and opportunity to comment.

26 posts from 27 April to 22 May – Average engagement = 18.2 people

Post with most reach – How can we better celebrate Aboriginal culture in the Kempsey


Item Description

Shire? (4 May) Post with least reach – Are we lost in the weeds? (21 May)

Post with most engagement – How can we better celebrate Aboriginal culture in the Kempsey Shire? (4 May)

1 video posted on 21 May – Reach = 2400, Engagement = 43, Average watch time = 6 secs, Top audience = Women 35-44

Direct Messages April / May community newsletter – email newsletter to 1,500 subscribers

28 April E Newsletter to all members – 844 recipients

Story in Rates Newsletter – printed newsletter direct to approx. 13,000 rate payers

Face to Face Engagement Not undertaken due to COVID-19 Public Health Order restrictions during this time

Council Notices Macleay Argus – 5, 12, 19 May

Submissions Review

The separate attachment to this report provides a council response to each of the 16 submissions made during the exhibition period. Only minor wording changes to the Operational Plan 2020-21 or associated documents have been made as a result of the submissions received.

Internal Review

While the draft Integrated Planning and Reporting document suite was on public exhibition, an internal staff review was conducted that has proposed a number of corrections. The review considered:

Budget and Operational Plan changes to improve the 2020-21 operating deficit position and longer term financial sustainability

Projects that may have been omitted from the original draft Operating Plan Revised action delivery dates Council’s current organisational structure and the sections responsible for actions Grant applications subsequently made / announced Budget assumptions Subsequent resolutions of Council Grammatical corrections

A summary of the changes made to the Operational Plan as a result of the internal review are detailed in Table 2 below.


Table 2: IP&R Document Suite Changes Recommended

Item Draft Details Changes Proposed Changes

New Action, Performance Measure, Program, Funding and Responsibility

HS01.2.5: Delivery of Mid North Coast High Performance Centre, South West Rocks

This project was initially not included due to an oversight.


WS05.3.12: Actively participate in the Regional Roads Transport and Road Classification Review being undertaken in NSW

This is a new project and opportunity to participate in regional roads classification review at the state level.

Changes to Operational Plan Actions


CO04.1.3: Engage with the community regarding a name change for the Kempsey Local Government area

This is a new project and outstanding action in the 2017-2021 Delivery Program ‘Renaming the Shire’ to be undertaken prior to the 2021 local government elections.

Deletion of completed action item

HS04.1.12 Implementation of the Rudder Park Flying Fox Management Plan

And its Performance measure, program, funding and responsibility

Deletion of item Work in line with the management plan has recently been undertaken. This will be subject to ongoing review in accordance with the management plan.

Deletion of action, performance measure, program, funding and responsibility due to internal funding review

WS05.1.8: construct new linkage between KSC Civic Centre and Library to enable multi functioning Customer Service/ Library operations

Deletion of item This action has been removed due to insufficient funds available to undertake the project in the 2020-21 year. Funding for the project has been included in future years within the LTFP forecasts and this project will be revisited in the preparation of future



Operational Plans

Deletion of action, performance measure, program, funding and responsibility

WS05.1.3 Review Kempsey Airport Masterplan

Deletion of item This action has been removed due to insufficient funds available to undertake the project in the 2020-21 year and higher priority airport related projects

Other Changes to Operational Plan arising from internal reviews

Rationalisation of actions at HS05.2.2 and HS05.2.3: for the inspection of onsite septic systems to minimise pollution to ground and waterways

Deletion of HS05.2.3 action, performance measure, Program

Duplication of actions and measures

Other typos, design & substantial changes

5. Our Finances changes:

o new budget statement

o new revenue and expenditure forecasts

o 5.3: revised expenditure for key services for the 2020-21 financial year.

Clarification of responsibilities of various actions (e.g SS03.1.1 Governance and Information Services)

Typos: HS03.1.1 Protection of the Environment Operations Act, HS03.1.4 Waste Management Centre, HS03.3.1 ‘plans’ to ‘programs’, HS04.1.6 Kempsey Local Aboriginal Land Council, HS04.1.10 ‘Shire’ to ‘Kempsey CBD’,

Refining performance measures, such as:

o HS01.1.8 Steuart McIntyre Dam

o HS01.1.15 Plant Improvements at South West Rocks Water Treatment Plan

o HS01.3.2 Replacement of Willarwin Playground

Moving various items (including 2020-21 Action, Performance Measure, Program, Funding and Responsibility) following internal review to a more appropriate Delivery Program theme, including:

o Moved WS05.1.8 (in exhibition draft) to HS03.1.7: Develop a



Masterplan for the Waste Precinct,

o HS05.3.2 (in exhibition draft) moved to HS05.2.5 ranger and local law enforcement to reflect Delivery Program public health risk theme

o WS05.1.8 (in exhibition draft) to CO01.1.10: Public amenities renewal program,

o WS05.1.9 (in exhibition draft) to CO01.2.5: New SES Facility West Kempsey,

o WS05.1.10 (in exhibition draft) to CO01.2.6: RFS Assets maintain, built and or upgraded

o WS05.1.13 (in exhibition draft) to CO01.2.7: External refurbishment of Gladstone Hall & Art Gallery

Revenue Policy

Insertion of references to Hardship Relief and Ratepayers procedure to reflect resolution of Council on 21 April 2020

New charts for General Fund, Water Fund and Sewer Fund as a result of internal review

Amendments to Tables 1-4 based on 16 June Council report

Interest on overdue rates confirmed by Local Government Circular as 0% from 1 July 2020 to 31 December 2020 and 7% from 1 January 2021 to 30 June 2021

Long Term Financial Plan 2020-21

Changes in Appendix 1, 2, 3, 4 and 5: following the internal review and updated budget and forecast assumptions and modelling

Changes to details in Capital Works Program table (Appendix 7) following the internal review

Minor wording changes throughout the document to reflect updated budget assumptions

Updated financial scenarios to reflect updated budget and forecast assumptions and modelling

CONCLUSION

Council exhibited its suite of IP&R documents as required under the Local Government Act (1993) following the Council resolution from the 21 April 2020 Council meeting.

There was a total of 16 submissions received during the public exhibition period (excluding the three submissions relating to Fees & Charges reported to the 16 June 2020 Council meeting), and these were considered in the preparation of the final draft IP&R documents attached to this report for Council adoption. Additionally, a number of other changes to the IP&R documents have been recommended following internal review of the documents by Council staff, as documented in the table above.

Legislatively, the final suite of planning documents are required to be presented to Council and adopted no later than 31 July 2020 (taking into account the 1-month extension provided by the


Office of Local Government in response to the COVID-19 pandemic). It is recommended that Council adopt the Operational Plan 2020-21 and its associated IP&R documents for the 2020-21 financial year.


9.2 YOUR FUTURE MACLEAY - GROWTH & CHARACTER LOCAL STRATEGIC PLANNING STATEMENT

Officer Peter Orr, Senior Strategic Planning Officer File No F19/2576 Attachments 1. Discussion Document [9.2.1 - 17 pages]

2. Draft Local Strategic Planning Statement [9.2.2 - 33 pages] PURPOSE

The purpose of this report is to: 1. Provide Council with the draft Your Future Macleay – Growth & Character Local Strategic

Planning Statement (LSPS), which is Council’s 20-year strategic vision for land use in the Kempsey local government area.

2. Obtain Council endorsement for the attached draft LSPS to be placed on public exhibition for a period of 28 days.

RECOMMENDATION

That Council:

1. Place the draft Your Future Macleay – Growth & Character Local Strategic Planning Statement on public exhibition for a period of 28 days.

2. Receive a report on the outcome of the exhibition period, along with a final draft LSPS, for consideration at a future Council meeting.

BACKGROUND

Emanating from the passing of amendments to the Environmental Planning and Assessment Act 1979 (EP&A Act) in November 2017, each Council in NSW is required to prepare a Local Strategic Planning Statement (LSPS). Section 3.9(2) of the EP&A Act states that the LSPS is to include:

a) the basis for strategic planning in the area, having regard to economic, social and environmental matters,

b) the planning priorities for the area that are consistent with any strategic plan applying to the area and (subject to any such strategic plan) any applicable community strategic plan under section 402 of the Local Government Act 1993,

c) the actions required for achieving those planning priorities, d) the basis on which the Council is to monitor and report on the implementation of those

actions. In effect, the LSPS will become Council’s long-term reference point for strategic land use planning in the Shire to:

provide clarity to the community and developers as to future growth expectations and how this growth will be managed across our settlements,

align Council’s land use strategy with our Community Strategic Plan and the North Coast Regional Plan,

identify the long-term priorities, actions and timeframes for the delivery of specified land use outcomes,

provide a benchmark to align Council’s Local Environmental Plan (LEP) and Development Control Plan (DCP),


ensure that development aligns with Council’s current and intended infrastructure rollout, provides a clear record of the land use studies and initiatives that will be undertaken.

KEY CONSIDERATIONS

Strategic Alignment

The LSPS must be reviewed at least every 7 years. It is proposed that the LSPS be initially reviewed in 2021 and every 4 years thereafter, to ensure continued alignment with each iteration of the Community Strategic Plan. It is anticipated that the initial reviews proposed will not result in significant changes to the LSPS.

Stakeholder Engagement

Commencing in 2019, Council staff prepared a Discussion Document (attached) to provide background on the upcoming LSPS and encourage informed discussion within the community as to potential future development opportunities and constraints across the Kempsey Shire LGA.

This project was placed on the Your Say Macleay website in August 2019 and included the discussion document, a fact sheet and an online survey questionnaire. At the same time Council officers undertook informal pop-up information stalls across the shire (at 12 localities) to promote the project and capture community opinion.

An earlier draft of the LSPS was provided to the Department of Planning, Industry and Environment (DPIE) on 13 December 2019 for preliminary review and feedback. Suggestions provided by DPIE have been incorporated into the current draft.

With the current restrictions on gatherings and the social distancing protocols, public consultation will be undertaken principally through Councils on-line platforms. However, if restrictions are further eased it may be possible to engage more directly with the community.

The minimum period which the LSPS may be exhibited is 28 days.

The DPIE have asked that the LSPS be finalised no later than the 30 September 2020. To comply with this timeframe, it is planned to exhibit the LSPS for a period of 28 days, and present a report on the outcome of the exhibition process along with a final draft LSPS for Council’s consideration to the meeting scheduled for 15 September 2020.

It should be noted that other recent projects such as the Community Infrastructure Strategic Plan and the Crescent Head Public Domain Plan were placed on exhibition for an extended period (6 weeks) to better enable public and agency engagement and participation in response to the COVID-19 situation. However, an extended exhibition period in this case would mean the LSPS could not be brought back to Council for further consideration until after 30 September 2020. Council staff have been advised that the DPIE are considering issuing Performance Improvement Orders in instances where the 30 September 2020 timeframe is not met.

CONCLUSION

The draft LSPS (attached) has been prepared by Council staff in response to legislative requirements enacted in late 2017. The concept behind the LSPS is sound, in that it establishes a clear line of sight for land use, from the regional plan through to the CSP, LEP and DCP. Additionally, it provides Council, the community and other stakeholders with a long-term strategic land-use plan with specified priorities, actions and timeframes which is a crucial component of the NSW planning framework that has been missing. Following the consultation period, a report on the outcome of the


exhibition process will be prepared and presented along with a final draft LSPS for consideration at a future Council meeting.


9.3 KLEP2013-AM-29 - VILLAGE OF HAT HEAD Officer Marnie Jeffery, Town Planner File No KLEP2013-AM-29 Attachments 1. KLEP 2013 - AM-29 Minimum Lot Size and Zone Objective Changes [9.3.1 -

29 pages] 2. Hat Head Vacuum Sewerage System Capacity Investigation - Council Meeting

Report 16 April 2019 [9.3.2 - 5 pages] 3. Extract from Minutes of Council Meeting 16 April 2019 [9.3.3 - 1 page] 4. Gateway Determination - KLEP 2013 Amendment No. 29 [9.3.4 - 2 pages] 5. Kempsey Development Control Plan Chapter F 2 - Hat Head [9.3.5 - 7 pages] 6. Rural Fire Service Advice [9.3.6 - 1 page]

PURPOSE To consider the following planning proposal for progression to the next stage of the local plan making process.

Proposal: Amend KLEP 2013 to amend RU5 zone objectives and minimum lot size that applies to land zoned RU5 Rural Village at Hat Head

Location: Village of Hat Head

Proponent: Kempsey Shire Council

Status: Planning proposal lodged, gateway determination issued and community consultation undertaken

Council must now consider any matters raised in the community submissions and decide whether to exercise delegation to make the proposed amendment to KLEP 2013.

RECOMMENDATION That:

1. the planning proposal which seeks to amend the RU5 Rural Village zone objectives to ensure compatibility with infrastructure capacity be progressed to making the amendment to the local environmental plan, to be described as KLEP 2013 (Amendment 29).

2. the planning proposal which seeks to amend the Lot Size Map for RU5 zoned land in Hat Head Village from a minimum lot size of 500m2 to 1,400m2 be progressed to making the amendment to the local environmental plan, to be described as KLEP 2013 (Amendment 29).

3. Council staff request the Parliamentary Counsel’s Office to draft the legal instrument, KLEP 2013 (Amendment 29), under s3.36(1) of the Environmental Planning and Assessment Act 1979 to give effect to the final planning proposal.

4. the General Manager exercise delegation from the Minister for Planning to make the amending instrument, KLEP 2013 (Amendment 29).

5. upon the making of KLEP 2013 (Amendment 29), the Department of Planning & Environment be requested to notify the plan on the NSW Legislation webpage.

6. Council amend Kempsey Development Control Plan 2013 Chapter F2 – Hat Head development requirements by imposing water and sewer infrastructure limits on new development and no new or expansion of On-site Disposal systems is permitted.


ISSUES A delegate for the Minister for Planning has issued authorisation for Council to exercise delegation to make the amending LEP. This means that Council undertakes the role of:

instructing Parliamentary Counsel’s Office to draft the legal instrument which will give effect

to the planning proposal; making the amending local environmental plan; and requesting the amending local environmental plan be notified on the NSW Legislation

website. The plan comes into effect the day that it is published on the legislation website.

BACKGROUND Subject site The intent of the LEP amendments are to ensure that development within the Shire’s Rural Villages is compatible with the infrastructure capacity, being water supply and sewerage supply. The amendment to the minimum lot size for Hat Head Village is to ensure future subdivision does not create additional allotments which may generate demand for additional sewer capacity.

Kempsey Development Control Plan (KDCP) 2013 Chapter F2: Hat Head is amended to ensure dwelling density does not exceed the capacity of the local sewerage scheme.

The land to which this LEP amendment refers to is that within the Hat Head Sewerage Scheme Catchment Area as shown in Figure 1.

Figure 1: Area to which LEP amendment applies.

Hat Head Village

Hat Head dune infiltration area

Hat Head NP

Hat Head NP

Hat Head Sewer Treatment Plant


Planning Proposal The planning proposal seeks to amend the KLEP 2013 RU5 Rural village zone objectives and amend the Lot Size Map for the subject area.

The inclusion of an additional KLEP 2013 RU5 zone objective is to ensure that development within the Shire’s rural villages is compatible with the infrastructure capacity (water supply and sewerage). A review was conducted on the Hat Head Vacuum Sewerage Scheme which found it to be at full capacity. Therefore, additional measures are required for the rural village to ensure new development does not overload the sewerage scheme. The Lot Size Map for RU5 zoned land within Hat Head Village is to be amended to increase the permissible minimum lot size from 500m2 to 1,400m2. The general intent of this amendment is to ensure further subdivision does not create additional allotments in the village which may generate demand for additional sewer capacity.

The proposed amendments are imposed to avoid any inherent public health, environmental, financial and social risks from potential overloading of the Hat Head Vacuum Sewerage Scheme

Council considered the planning proposal at its Ordinary Meeting of 16 April 2019 and resolved:

That Council take the necessary steps to prepare and exhibit a planning proposal pursuant to section 3.33 of the Act, expressing the objective and intended outcomes of proposed changes to the Kempsey Local Environmental Plan 2013 (LEP) described in this report, and Council receive a further report at the conclusion of community consultation; and

That Council take the necessary steps to amend the Kempsey Development Control Plan 2013 Chapter F2: Hat Head (DCP) pursuant to section 3.43 of the Act and as described in the report, including removing the reference to on-site sewerage treatment as an option for new development, and Council receive a further report at the conclusion of community consultation.

A delegate of the Minister for Planning issued a Gateway determination on 3 October 2019, deciding that the planning proposal should proceed subject to the following conditions.

Condition Comment

1. Public exhibition is required under section 3.34(2)(c) and schedule 1 clause 4 of the Act as follows:

(a) The planning proposal must be made publicly available for a minimum of 28 days; and

(b) The planning proposal authority must comply with the notice requirements for public exhibition of planning proposals and the specifications for material that must be made publicly available along with planning proposal as identified in section 6.5.2 of A guide to preparing local environmental plans

The planning proposal was placed on public exhibition for a period of 35 days in accordance with the relevant notice requirements.


(Department of Planning, Industry and Environment, 2018).

2. Consultation is required with the NSW Rural Fire Service under section 3.3.4(2)(d) of the Act. The NSW Rural Fire Service is to be provided with a copy of the planning proposal and any relevant supporting material and given at least 21 days to comment on the proposal.

These public authorities were consulted, and discussion is provided further in this report.

3. A public hearing is not required to be held into the matter by any person or body under section 3.34(2)(e) of the Act. This does not discharge Council from any obligation it may otherwise have to conduct a public hearing (for example, in response to a submission or if reclassifying land).

Noted

4. The planning proposal authority is authorised as the local plan-making authority to exercise the functions under section 3.36(2) of the Act subject to the following:

(a) the planning proposal authority has satisfied all the conditions of the Gateway determination;

(b) the planning proposal is consistent with section 9.1 Directions or the Secretary has agreed that any inconsistencies are justified; and

(c) there are no outstanding written objections from public authorities.

All conditions of Gateway determination have been met, the planning proposal is consistent with s9.1 Directions and there are no outstanding written objections from public authorities.

5. The time frame for completing the LEP is to be 12 months following the date of the Gateway determination.

The Gateway Determination requires the completion of the LEP by 3 October 2020.

Community consultation Public exhibition

The planning proposal was placed on public exhibition from Tuesday 5th May 2020 to Tuesday 9th June 2020. Three public submissions were received during the exhibition period.

Submission Comment/Response

Limits to be made on connections to the sewage system per lot. Already numerous examples in Hat Head where multiple connections have occurred to accommodate

Multiple connections may have been approved in the past as no previous limitation has been placed on sewer connections, other than


B&B and studio-type holiday income forms of buildings.

standard conditions that would normally apply.

The proposed introduction of state legislation for Short-Term Rental Accommodation, i.e. holiday rentals, will provide Council with defined standards to investigate these types of premises. The legislation proposes to introduce time frames and land constraints for holiday accommodation as exempt development and when consent is required. This will enable more definitive controls for compliance. The number of connections per lot could be investigated for permissibility as part of compliance with legislation.

More rigorous patrolling (or auditing) of actual toilet connections per lot is required.

Investigations into non-compliance with development standards or approvals are generated from complaints made to Council, generally from the public.

As indicated above, the proposed introduction of state legislation for Short-Term Rental Accommodation, i.e. holiday rentals, will provide Council with defined standards to investigate a number of premises in Hat Head Village. As a result, the number of connections per lot could be investigated for permissibility.

Furthermore, KDCP 2013 Chapter F2: Hat Head outlines Council staff will undertake an onsite facilities assessment to confirm existing approved facilities for any new Section 68 approvals.

Exemption from amendments for specific lot due to contradicting planning advice received from Council during pre-purchase investigations (September 2019).

Clause 4.6 of KLEP 2013 enables a degree of flexibility to development standards to be presented to Council for consideration. Furthermore, a planning proposal for a specific lot could be submitted to Council for consideration.

Without detailed information regarding the proposed development and services for the specific lot, Council does not recommend an amendment to this Planning Proposal be considered.

Sewerage system is the problem and should be upgraded as a matter of urgency.

In line with the North Coast Regional Plan, Hat Head is not an urban growth area for Kempsey Shire. Kempsey Shire has many years supply of serviced, zoned and undeveloped land in identified growth areas elsewhere.

Additionally, Hat Head Village, the sewerage system, sewage treatment plant and effluent


discharge point are all within or adjacent to sensitive ecosystems. There is not sufficient planning need to justify encouraging further housing supply, nor have the costs to upgrade the system been planned as the system has capacity for the existing lots within the serviced area. Higher priority sewerage scheme improvements exist at other locations within the Shire, noting that Council’s Sewer Fund has limited capacity to undertake any further major projects in the short-medium term at least.

Limiting block sizes will reduce Council income from rates.

The limitation on block sizes will reduce impact on the environment and Council infrastructure and potentially avoid unnecessary financial costs from environmental harm or system failure.

Reduce/limit number of sites in the caravan park during peak holiday seasons to lighten load on sewerage system as alternative to reducing block sizes.

Council has no plans to reduce the number of visitors to Hat Head Holiday Park. The holiday park is a valuable asset and funds from holiday park income assists in providing maintenance and upgrade to Councils public reserves.

NSW Rural Fire Service (RFS)

The NSW RFS has considered the information submitted and subsequently raised no concerns or issues in relation to bush fire.

CONCLUSION The NSW Department of Planning has issued Council delegation to make the plan. Council is now requested to resolve to use the delegation in completing the plan as outlined in the recommendations.


9.4 MAYORAL AND COUNCILLOR FEES FOR 2020/2021 Officer Daniel Thoroughgood, Manager – Governance and Information Services File No F19/2261 Attachments 1. 2020 Annual Determination Local Government Remuneration Tribunal [9.4.1

- 24 pages]

PURPOSE Set mayor and councillor fees for Kempsey Shire Council for 2020/2021 following the determination of the Local Government Remuneration Tribunal.

RECOMMENDATION That the Kempsey Shire Council Mayor and Councillor fees payable for the 2020/2021 year be the maximum allowed for regional rural categorised councils as determined by the Local Government Remuneration Tribunal, being $44,250 for the Mayor and $20,280 for Councillors

BACKGROUND The Local Government Remuneration Tribunal is required to report to the Minister for Local Government by 1 May each year as to its determination of categories and the maximum and minimum amounts of fees to be paid to mayors, councillors, and chairpersons and members of county councils.

In response to the COVID-19 pandemic the Minister for Local Government, the Hon Shelley Hancock MP, made the Local Government (General) Amendment (COVID-19) Regulation 2020 which extends the time for the making of this determination to no later than 1 July 2020.

The Tribunal delivered its report on 10 June 2020.

KEY CONSIDERATIONS

Policy and Legislation The Local Government Remuneration Tribunal (the Tribunal) each year sets the range of fees for all councillors and mayors in NSW. The Tribunal’s attached report provides an update on local government reform, review of categories – including criteria for categories and allocation of councils into categories and fees.

The Tribunal has determined that there will be no increase in the minimum and maximum fees applicable to each existing category.

The report concludes that Kempsey Shire Council is listed as a regional rural council. The levels of fees for this category for 2020/2021 are:

Mayor Councillor

Minimum Maximum Minimum Maximum

$19,580 $44,250 $9,190 $20,280

It has been this Council’s past practice to adopt the maximum fee determined by the Tribunal.

Strategic Alignment N/A


Impact on Financial Sustainability The total mayoral and councillor fees payable if the maximum limit is adopted is $226,770 and this has been fully budgeted for in the 2020/2021 draft budget.

Stakeholder Engagement N/A

Other Matters N/A

CONCLUSION It is recommended that the Kempsey Shire Council Mayor and Councillor fees payable for the 2020/2021 year be the maximum allowed for regional rural categorised councils as determined by the Local Government Remuneration Tribunal.


9.5 NEW SOUTH WALES ROAD CLASSIFICATION REVIEW AND TRANSFER Officer Robert Fish, Director Operations & Planning File No F19/1314 Attachments 1. NSW Road Classification Review and Transfer Information Paper June 2020

[9.5.1 - 21 pages] 2. NSW Road Classification Review and Transfer Community Update June 2020

[9.5.2 - 4 pages]

PURPOSE The purpose of this report is to inform Council with respect to the New South Wales Government’s advice in 2019 that they will seek to transfer up to 15,000km of Council owned and managed roads back to the State Government. In light of this advice an Independent Panel has been formed to oversee a process to review the road classification system and the classification of roads across regional areas in the state.


1. Note the NSW Government has commenced the Road Classification Review and Transfer process by way of appointment of an Independent Panel.

2. Prepare a submission/s with the Mid North Coast Joint Organisation to the NSW Road Classification Review and Transfer Independent Panel as opportunities arise to do so through the process.

3. Prepare a submission/s with Armidale Regional Council to the NSW Road Classification Review and Transfer Independent Panel with respect to the Kempsey-Armidale Road as a priority road for reclassification and/or transfer to the State as opportunities arise to do so through the process.

4. As part of the preparation of these submissions, identify and assess roads throughout the Kempsey Shire Local Government Area that may be considered for reclassification or transfer to the State.

BACKGROUND With the last road reclassification review being undertaken some ten years ago, it was a welcome announcement by the New South Wales Government in February 2019, that as part of an overall $1 billion package to help fix local roads and repair country bridges, a review of road classifications and transfer of up to 15,000km of Council-owned roads back to the State Government would occur. The transfer of these roads will assist Councils to better maintain and manage the road network and will ensure that the current framework is still fit for purpose.

Attached are recent publications on the planned review. These include:

Independent Panel Road Classification Review and Transfer Information Paper June 2020 Independent Panel Road Classification Review and Transfer Project Update June 2020

Further information is available via the following link:

https://yoursay.transport.nsw.gov.au/regional-road-transfer-and-road-classification-review

Road Classification System

To manage the extensive network of roads for which Councils are responsible under the Roads Act 1993, Roads and Maritime Services (now Transport for NSW) in partnership with local government established an administrative framework of State, Regional, and Local Road categories. State Roads


are managed and financed by Transport for NSW and Regional and Local Roads are managed and financed by Councils.

Regional Roads perform an intermediate function between the main arterial network of State Roads and Council controlled Local Roads. Due to their network significance RMS provides financial assistance to Councils for the management of their Regional Roads. The Regional Road category comprises two subcategories: those Regional Roads that are classified pursuant to the Roads Act 1993 (per Part 5, Division 1), and those Regional Roads that are unclassified.

Local Roads are unclassified roads. Local Roads provide for local circulation and access.

The attachments provide further background on the road classification system.

Kempsey Shire Council Roads

Current Regional Roads are identified on the Transport for NSW website via the following link:

https://www.rms.nsw.gov.au/classification/map

In summary Regional Roads within the Kempsey Shire include:

Road To From

Armidale Road*

(including Belgrave, Elbow and River Streets)

Smith Street, Kempsey West Street, Bellbrook

Crescent Head Road Lachlan Street, South Kempsey East Street, Crescent Head

Gregory Street* South West Rocks Road, South West Rocks

Livingstone Street, South West Rocks

Macleay Valley Way*

(incl Lachlan, Lord, Smith and Macleay Streets)

Pacific Highway Interchange, South Kempsey

Pacific Highway Interchange, Stuarts Point Road

Plummers Lane* Macleay Valley Way, Clybucca South West Rocks Road, Jerseyville

Smithtown Road* South West Rocks Road, Gladstone

Macleay Valley Way, Seven Oaks

South West Rocks Road*

(incl Rudder, Bissett aand Washington Streets)

Lord Street, East Kempsey Smithtown Road, Gladstone

South West Rocks Road*

Plummers Lane, Jerseyville Gregory Street, South West Rocks

Stuarts Point Road Pacific Highway Interchange Marine Parade, Stuarts Point


*Regional Roads that are classified pursuant to the Roads Act 1993

Kempsey Shire Council does not maintain any roads classified as a State Road. The only State Road within the Kempsey Shire is the Pacific Highway.

Through the period 2018 – 2019, both Kempsey Shire Council and Armidale Regional Council undertook considerable advocacy work to seek the reclassification of the Kempsey – Armidale Road from Bellbrook to Waterfall Way. In early 2019, Adam Marshall MP announced that the Government would restore its classification back to a Regional Road. Reclassification of this road would mean that the community (and Council) would no longer be fully burdened with the cost of maintaining and upgrading the key east-west route through both Local Government Areas (LGA). At that time funding was allocated to the Armidale Regional Council for work on specific sections of the road that were of poor alignment, width and condition.

The handover to Council of the former Pacific Highway route to the south of Kempsey (Ravenswood Road from Bloodwood Ridge to the South Kempsey Interchange) remains unresolved. On opening to traffic of the newly upgraded Pacific Motorway through the Kempsey Shire Council area, the bypassed sections of former Highway automatically reverted to Local Road status and with Council as the roads authority. This is a consequence of the provisions of the Roads Act 1993 relating to road classification (Section 56), which required no administrative action. However, in light of the state-wide road classification review process underway, Transport for NSW have delayed the formal asset transfer and as an interim arrangement and in good faith continue to maintain this length.

Independent Panel

An Independent Panel has been established to consult with Councils, provide advice and recommendations, review submissions and identify eligible roads to be recommended for transfer to the New South Wales Government (State). The establishment of this Panel will ensure that appropriate mechanisms are in place to deliver an effective Road Classification Review and Regional Road Transfer. As part of their role the Panel will consider existing Regional Roads for State Road Classification and fresh roads for Regional Road of State Road classification.

The Independent Panel along with an Interdepartmental advisory group will work collaboratively to investigate work necessary to complete a thorough review of the NSW Road network. The Panel will report to the NSW Government throughout the process with regard to their recommendations for ultimate decision by the Government.

Consultation

The Independent Panel will undertake consultation with Councils and stakeholders state-wide.

All NSW Council’s will have the opportunity to meet with the Panel. It is noted that Kempsey Shire Council, as part of the Mid North Coast Joint Organisation (“MNCJO”) and other surrounding Councils, will meet with the Panel on 5 August 2020. This consultation will enable the MNCJO and surrounding Councils to understand the planned process of the review and to provide feedback, which will ultimately assist in informing the Panel’s recommendations with respect to the classification system and roads to be reclassified or transferred back to the State. At the time of writing this report further information on the proposed consultation session was being sought.

Submission to the Independent Panel

Opportunity is available to provide a submission to the Independent Panel on the Road Classification Review and Regional Road Transfer. Submissions as part of Joint Organisations and with


surrounding Councils where roads cross LGA boundaries are strongly encouraged and will be viewed favourably by the Independent Panel.

The Panel has outlined strategic principles for submissions to align with, which will inform the high level decision-making of the Panel (as outlined in section 5 of the NSW Road Classification Review and Transfer attachment). Submissions are open until the end of August for priority roads, which are those subject to a government commitment for reclassification or those where a Council is able to demonstrate immediate need. Further opportunity for submissions is envisaged following this, however will be confirmed.

Accordingly, it is recommended that Council proceed to consider and assess roads throughout the Kempsey Shire LGA and in accordance with the strategic and classification criteria, identify roads that could be transferred back to the State or that are suited to reclassification.

Council Officers have begun considering roads with the potential to be transferred back to the State or for classification change. An initial list is provided below:

Armidale Road (Kempsey to Bellbrook) - Currently Regional Road classification. Consider pursuing State Road classification (or transfer to the State).

Armidale Road (Bellbrook to Waterfall Way) - Currently Local Road classification. Pursue minimum Regional Road classification. Consider pursuing State Road classification (or transfer to the State).

Belmore River Right Bank Road/Loftus Road/Belmore Street – Currently Local Road classification. Consider pursuing Regional Road classification.

Grassy Head Road – Currently Local Road Classification. Consider pursuing Regional Road classification.

Hat Head Road - Currently Local Road Classification. Consider pursuing Regional Road classification.

Macleay Valley Way - Currently Regional Road Classification. Consider pursuing State Road classification for full length, or alternatively Frederickton Interchange to Plummers Lane (or transfer to the State).

Plummers Lane/South West Rocks Road/Gregory Street - Currently Regional Road classification. Consider pursuing State Road classification (or transfer to the State).

Second Lane/North Street - Currently Local Road classification. Consider pursuing Regional Road classification.

South West Rocks Road (Gladstone to Jerseyville) - Currently Local Road classification. Consider pursuing Regional Road classification.

Other roads considered, although unlikely to present a reasonable justification, include Sherwood Road, Gowings Hill Road, Maria River Road and Hickeys Creek Road/Sundowner Road. No further assessment of these roads is currently planned.

As part of any submission appropriate assessment against the relevant criteria per the NSW Road Classification Review and Transfer attachment will occur to determine the strength of the case made prior to inclusion. Financial implications shall also be a significant consideration, where in general it would be expected that a Local Road reclassified to a Regional or State Road Classification, or a Regional Road reclassified to a State Road or to State control, would be of financial benefit to Council from an operational and capital cost perspective. Further information provided via the Independent Panel’s Consultation may also specifically inform consideration of those Regional Roads that may be transferred to the State.


CONCLUSION In order to better maintain and manage the road network throughout the Kempsey LGA, it is recommended that Council, as part of the MNCJO, make submission/s to the Independent Panel as part of its review process. It is also recommended that Council further collaborate with Armidale Regional Council with respect to the Kempsey-Armidale Road, with a joint submission intended.

Such submissions shall consider individual roads for reclassification or transfer to the State. Suggested roads for consideration for assessment were outlined within this report.

Further to requests related to specific roads, submission/s to the Independent Panel shall focus on broader objectives and concerns with regard to the reclassification process and potential transfer of Regional Roads to the State. Such considerations would include: Councils are no worse off as a result of the process; Federal Assistance Grant is not adversely affected with respect to its benefit for the Local Road network; Council workforces are not adversely impacted; and allocation of funding to existing Regional Roads across the state is not adversely impacted.


9.6 FIXING LOCAL ROADS GRANT ANNOUNCEMENTS Officer Robert Fish, Director Operations & Planning File No F20/2750 Attachments Nil

PURPOSE To advise Council on the successful application for grant funding for the rehabilitation and resurfacing of South West Rocks Road, the Rural Roads Heavy Patching and Resealing Program and the sealing of Maria River Road under Round One of the Fixing Local Roads Program.


1. Accept the following offers of grant funding under the Fixing Local Roads Program: a. $2 million for the rehabilitation and resurfacing of South West Rocks Road

(between Kinchela and Jerseyville) b. $935,000 for rural road heavy patching and resealing within the Kempsey Shire c. $17 million for the sealing of Maria River Road within the Kempsey Shire and Port

Macquarie-Hastings Local Government Areas 2. Allocate components of the grant funding and required Council contributions, not already

allocated, within the 2020/21 financial year at the first quarterly budget review BACKGROUND Fixing Local Roads is a $500 million NSW Government program which provides funding to Councils to assist in reducing the local roads maintenance backlog. The Federal Government have also committed supplementary funding to the program in light of the impacts of the 2019-20 Bushfire season and the COVID-19 pandemic.

Well maintained roads are vital and ensure smoother, safer and more reliable journeys for members of and visitors to the Kempsey Shire.

Funding under the NSW Fixing Local Roads program was applied for in late 2019 for three projects.

Applications for Round 1 Funding

Kempsey Shire Council submitted the following applications:

Rehabilitation and Resurfacing of South West Rocks Road

South West Rocks Road has a deteriorated road pavement requiring rehabilitation works and resurfacing. Significant community interest in the road has also been received over a sustained period.

Accordingly, an application was submitted for funding in the sum of $2 million to repair up to a 7.3km section of South West Rocks Road to the south of Spencers Creek Bridge at Jerseyville. The funding application outlined that this funding would supplement existing Council funding of $2 million planned for pavement rehabilitation works on this road.

Rural (Local) Roads Heavy Patching & Resealing Program

A comprehensive inspection of rural sealed local roads throughout the Kempsey Shire was undertaken to identify and prioritise high risk pavement failures requiring heavy patching. 3,850m2 of pavement area was identified as suited to heavy patching work to occur through this undertaking.


Accordingly, an application was submitted seeking funding in the sum of $935,000 in order to repair and improve the quality of various rural local roads throughout the Shire via heavy patching work.

In association with this program a resealing program would be implemented, with Council needing to contribute $812,132 in total over the next two financial years to provide for this program. Resealing programs have had limited investment until the 2019/20 financial year, with the focus having been on rehabilitation and reconstruction programmes. Reseal programs are critical to a sound asset management strategy to protect pavement condition and therefore useful life.

Maria River Road Sealing (joint application with Port Macquarie-Hastings Council)

A commitment to funding was made in March 2019 for the bitumen sealing of Maria River Road. This arose from community interest in the project over a long period and previous unsuccessful applications for funding made by both Kempsey Shire and Port Macquarie-Hastings Councils. Application was made under the Fixing Local Roads program to secure the funding committed to the project. $17 million of funding was applied for in a joint application by Kempsey Shire and Port Macquarie-Hasting Councils.

Maria River Road comprises a 30km length of road linking Kempsey Shire Local Government Area with Port Macquarie-Hastings Council Local Government Area.

The existing 25km unsealed stretch of the road often has compromised safety due to fluctuating condition, particularly after wet weather events. The road is identified as a priority for sealing in Council’s 2017-2021 Delivery Program.

2020 Funding Announcements

In response to Council’s applications for the rehabilitation of South West Rocks Road and the Rural Heavy Patching & Resealing, on 1 July 2020 by joint media release of Pat Conaghan MP and Melinda Pavey MP, it was announced that Council had successfully secured the $2,935,000 applied for.

On 9 July 2020, the Members for Oxley and Port Macquarie announced $17 million for the sealing of Maria River Road under the Fixing Local Roads Program.

The announcement of the successful funding of the three projects is an excellent outcome for residents, business/industry and visitors to the Kempsey Shire. Formal offers of funding will soon be received to confirm the announced projects.

KEY CONSIDERATIONS With Maria River Road spanning the Kempsey Shire and Port Macquarie-Hastings Local Government Areas, a collaborative delivery approach will be required. Council officers from the two Councils will put in a place necessary instruments to facilitate this approach. To expedite the project planning and design phase, detailed survey work has already been commissioned for the route and has recently commenced. Given the scale and location of the project significant design and investigation work is required, with the likelihood of some property matters requiring resolution in advance of works.

Strategic Alignment Works applied for funding under the Fixing Local Roads Program strongly align with identified strategies and priorities from Council’s Macleay Valley 2036 Community Strategic Plan and 2017-2021 Delivery Program. Maria River Road sealing is a specific identified priority within the Delivery Program, while the expediting of works on South West Rocks Road and for rural road resealing/heavy patching is also consistent with the aims and priorities of the Delivery Program.


Impact on Financial Sustainability Council will need to allocate required contributions to the South West Rocks Road and rural road resealing/heavy patching projects. The contribution for the South West Rocks project shall be made from existing funding identified for the road over the next two financial years. The rural roads resealing/heavy patching project shall require an increase in the current commitment in the 2020-21 financial year from $232,038 to $406,066.

Allocation of project funding (both grant and Council) not already in place for the 2020-21 financial year shall occur as a part of the first quarterly budget review, a recommendation of this report.

The South West Rocks Road and rural road resealing/heavy patching projects will enable Council to renew or improve the useful life of these key road assets. The works are consistent with sound asset management practices. With the improvement in condition the asset value shall increase accordingly via capitalisation, thereby likely having a corresponding minor increase in annual depreciation. Renewal of these road assets provides for a reduced maintenance burden in coming years, allowing an enhanced focus on resourcing to other areas of the road network in need.

Sealing of Maria River Road at no cost to the community is a significant benefit in terms of providing for the upfront capital cost. Maria River Road provides for a significant maintenance cost burden for both Local Government Areas due to traffic use, environmental conditions (drainage) and poor subgrades. Sealing of the road provides for significant benefit in terms of maintenance costs for the immediate coming years where minimal pavement maintenance will be required.

Life cycle cost comparisons for unsealed versus sealed roads were outlined in a report to Council in May 2019 with regard to a Strategy for Upgrading High Traffic Volume Unsealed Roads to Bitumen Standard. Whilst this report did not consider Maria River Road as it was already an identified priority for Council to pursue the sealing of, with a funding commitment being already received, it provides for an initial indication of the financial impacts.

However, with specific consideration of Maria River Road, the increased life cycle cost between unsealed versus sealed road would be expected to narrow as gravel road rehabilitation (gravel resheeting) and maintenance (grading) costs would be higher than that outlined in that report. Annual depreciation will increase due to the increase in valuation of the asset following sealing. Overall the variance in life cycle operating costs would be anticipated to be less than $1,000/km/year. It is noted that this analysis does not account for community and economic benefit arising from the sealing of the road.

CONCLUSION The funding secured from Round 1 of the Fixing Local Roads Program will allow Council to further improve roads throughout the Kempsey Shire Local Government Area and improve the safety of the community and those who visit. It is recommended that Council accept the funding announced following formal offer.


9.7 KEMPSEY AIRPORT - SUCCESSFUL FUNDING APPLICATION UNDER THE REGIONAL AIRPORTS PROGRAM

Officer Gayleen Burley, Manager Commercial Business File No F20/2736 Attachments 1. 20200612 Media release Deputy Prime Minister- Conaghan- Kempsey

Airport receives vital maintenance f [9.7.1 - 2 pages]

PURPOSE To advise Council on the outcome of an application made for grant funding under the Federal Government’s Regional Airports Program which will enhance Kempsey Airport’s safety and accessibility through much needed airside pavement upgrades.

RECOMMENDATION That Council authorise the General Manager to enter into a funding deed for the airside pavement improvement and upgrade projects announced under the Regional Airports Program.

BACKGROUND In December 2020, Council applied for funds under the Regional Airports Program. The Regional Airports Program provides grants to enhance the safety and accessibility of aerodromes in regional areas of Australia by funding critical air infrastructure that will:

improve the safety of aircraft, operators and passengers using regional airports or aerodromes;

facilitate improved delivery of essential goods and services such as food supplies, health care and passenger air services;

improve the connectivity of Australia’s regions to domestic and global market opportunities; and

meet the operational requirements of aeromedical and other emergency services in the region.

The grant amount is up to 50% of eligible project costs, unless you and a third party are both contributing to eligible project costs. In this case, the grant amount will be up to 33.3% of eligible project costs. On Friday 12 June 2020, Council was advised that it has been successful in achieving $327,928 from the Regional Airports Program to fund a total project scope of $730,000 as outlined below:

1. Re-surface and widen areas of the General Aviation (GA) apron to rectify deteriorated and potentially unsafe pavement conditions, and allow simultaneous use by multiple aircraft and additionally accommodate larger aircraft, including medivac and Rural Fire Service (RFS) fixed wing and non-fixed wing aircraft. Re-surface approx. 3,400sqm of GA apron with nominal 50mm thick asphalt overlay laid to airport finished level tolerances and surface finish acceptability;

o Widen GA apron on Northern side by installing approx. 240 sqm of pavement, constructed of 550mm subgrade and nominal 100mm thick asphalt surface;

o Re-grading to outside edge of overlaid apron to achieve compliant grades, adequate drainage and safe access to hangars;

o Undertake new compliant line marking on new surfaces


2. Re-surface taxiways E, C and C1 to stabilise and resolve potentially unsafe pavement conditions:

o Re-surface approx. 2,200sqm of taxiways with nominal 100mm thick asphalt overlay, laid to airport finished level tolerances and surface finish acceptability.

o Tie-ins to intersections of main taxiway and hanger accesses, approximately 860 sqm tapered asphalt overlay average of 75mm thick.

o Re-grading of taxiway graded strip to approx. 7.5m outside edge of overlaid taxiway is to achieve compliant grades and adequate drainage.

o Undertake new compliant line marking on new surfaces The above project aims to achieve:

1. Safety improvement of aircraft, operators and passengers: o Improved safety to all aircraft and passengers, particularly the high volume of RFDS,

aero-medical and emergency services aircraft operators frequently utilising Kempsey Airport;

o Decrease in potential damage to aircraft and associated maintenance; and o Mitigate risk of aviation accidents/incidents occurring on GA apron and taxiway

pavements.

2. Meet operational requirements of the Royal Flying doctors Service (RFDS): o Increased usability of apron area for emergency services – currently not suitable due

to deterioration and could cause significant damage to aircraft; o Allow for larger aircraft such as those used by RFDS and CareFlight to safely

manoeuvre on apron area; and o Improved pavement surface on apron increases safety for aero-medical ground

crews and patients, when undertaking patient transfers (ie moving patients along apron area on stretcher to load or unload into aircraft or ambulance).

3. Facilitate improved delivery of essential goods and services:

o Upgrading the adjoining taxiways will reduce congestion on apron and main taxiway by providing alternative route of travel, reducing potential delays to aero-medical operations and RFS aircraft; and

o Improved safety for aero-medical and firefighting aircraft when accessing and utilising the fuel facility, which is vital for these operations, particularly the firefighting aircraft, which rely on this facility

KEY CONSIDERATIONS

Strategic Alignment The project and funding is consistent with the 2019/20 and 2020/21 Operational Plan action WS05.1.5 Provide an Airport facility in accordance with CASA requirements.

Impact on Financial Sustainability The total project cost is estimated to be $730,000. The Regional Airports Program will contribute $327,928 towards the project costs. A 2020/21 General Fund budget allocation of $402,072 is therefore required and has been included in the 2020-21 budget. The Regional Airport Program


funds 50% of eligible project costs (which do not include project planning, investigation and design cost elements), which is why the funding has not contributed a full 50% of the total project cost.

The delivery of this project will result in increased depreciation expense of approximately $18k per annum and this has been factored into the 2020-21 budget and Long Term Financial Plan.

Stakeholder Engagement The Commercial Business Unit of Council engaged with the following internal and external stakeholders prior to submitting the application, with four (4) letters of support being provided to be included in support of the project:

KSC Infrastructure Delivery Unit KSC Grants Officer Rural Fire Service (Letter of Support was provided with the funding application) Royal Flying Doctors Services (Letter of Support was provided with the funding application) CareFlight (Letter of Support was provided with the funding application) MicroFlite (Letter of Support was provided with the funding application)

Engagement with current Airport tenants will occur during the project planning/design phase.

CONCLUSION Council will be required to enter into a funding deed for the project with the Federal Government’s Department of Infrastructure, Transport and Regional Development, which will set out the requirements for Council to deliver the projects. Once the funding deeds are finalised it is recommended that Council accept the funding through execution of the deeds by the General Manager.


9.8 COUNTRY UNIVERSITY CENTRE - FUNDING APPLICATION UPDATE Officer Stephen Mitchell, Director Corporate & Commercial File No F19/1930 Attachments 1. Joint media release Kempsey to gain a Country Universities Centre [9.8.1 - 2

pages]

PURPOSE To advise that both NSW State and Federal Government funding has been confirmed for the establishment of a Country Universities Centre (CUC) in Kempsey, to be known as CUC Macleay Valley.


1. Notes that NSW State and Federal Government funding has been confirmed for the establishment of the CUC Macleay Valley in Kempsey.

2. Notes the significant contribution made by Council staff in the successful establishment of the CUC Macleay Valley to date.

BACKGROUND At the Council meeting of 20 August 2019, a Mayoral Minute was tabled outlining the work being undertaken by Council with Regional Development Australia to investigate the opportunities for establishing regional study facilities within the Shire to provide avenues for tertiary study for local residents and school leavers and sought the support of Councillors for this project.

Council unanimously agreed to the recommendation to:

support the establishment of a CUC in Kempsey; and that the General Manager work with Regional Development Australia and Country

Universities Centre to seek funding from relevant funding bodies, including the State and Federal Governments for this purpose.

At the Council meeting of 17 September 2019, Council unanimously resolved to note that the General Manager, in consultation with Country Universities Centre, is taking the following steps to establish a Country Universities Centre in Kempsey:

a. Locate a suitable location for a Country Universities Centre Macleay Valley in Kempsey, b. Explore appropriate governance structure, including board membership, and c. Assist in the development of grant applications to the State and Federal Government to

provide funding to the Country Universities Centre Macleay Valley. Since that time Council staff have actioned these resolutions resulting in the following outcomes:

Funding announcements being made by both the State and Federal Governments to establish the CUC Macleay Valley. A copy of the joint media release by Pat Conaghan MP, Federal Member for Cowper and Melinda Pavey MP, State Member of Oxley has been attached to this report.

The establishment of both the CUC Macleay Valley Limited entity (a company limited by guarantee) and its Board of Directors.

The identification of various potential locations for the CUC Macleay Valley in Kempsey. The CUC Macleay Valley Board has identified currently vacant commercial space within Kempsey Central as its preferred location for the CUC Macleay Valley.


The CUC Macleay Valley Board, with support from Council staff, are developing plans that will see the CUC Macleay Valley commence operation from Semester 1 in 2021.

Further information can be found at the website for the Country Universities Centre at https://www.cuc.org.au/. Additionally, CUC Macleay Valley also now has its own Facebook account as follows https://www.facebook.com/cucmacleayvalley/

Strategic Alignment Horizon 2030: Macleay Valley Economic Development and Tourism Strategy, which was adopted by Council on 22 October 2019, includes as a key pillar the undertaking of an Education Masterplan. The proposal to support the Country University Centre is an important component of this masterplan. This was included at WS03.1.1 of the 2019-20 Operating Plan.

The establishment of a Country Universities Centre is also consistent with the Delivery Plan 2017-21 Priority Action to undertake a strategic environmental audit of education and training facilities available for future growth and development.

Impact on Financial Sustainability The funding of the CUC Macleay Valley is from State and Federal Government grants and covers the establishment costs plus operational funding for a three-year period. Council’s support of the CUC Macleay Valley project has been through the commitment of staff time to assist with grant applications to both levels of government, the establishment of the CUC Macleay Valley Limited entity and the sourcing of possible locations for consideration by the Board of the CUC Macleay Valley Limited.

Additionally, Council staff continue to provide advice and assistance to the CUC Macleay Valley Limited Board as needed, to ensure the successful establishment of the CUC Macleay Valley in time for its opening for Semester 1, 2021.

The continued support by Council staff to the CUC Macleay Valley Board has no budget impact as it does not require additional funding and it represents only a small proportion of existing budgeted positions and is consistent with actions associated with the implementation of the Horizon 2030: Macleay Valley Economic Development and Tourism Strategy.

CONCLUSION The establishment of the CUC Macleay Valley in Kempsey will assist local industry and employers to access skilled and qualified workforce from within the region. It will also provide an expanded and unique opportunity to raise the tertiary education opportunities for local residents.

https://www.cuc.org.au/

https://www.facebook.com/cucmacleayvalley/


9.9 FRAUD AND CORRUPTION CONTROL POLICY Officer Daniel Thoroughgood, Manager – Governance and Information Services File No F19/1933 Attachments 1. Draft Policy 5.16 V1 Fraud and Corruption Control Policy [9.9.1 - 2 pages]

PURPOSE Report to Council on the status of the development of a fraud and corruption prevention program and seek Council’s adoption of the Draft Fraud and Corruption Control Policy.

RECOMMENDATION That Council adopt the Fraud and Corruption Control Policy with a commencement date of 29 July 2020.

BACKGROUND The Corporate Governance Internal Audit identified that Council’s Fraud and Corruption Control framework required reiew.

Attached is a draft fraud control policy, that has been endorsed by the Audit & Risk Committee for adoption by Council. KEY CONSIDERATIONS

Policy and Legislation Council has an existing Fraud and Corruption Prevention Strategy, and Fraud Control Plan, but no overarching policy. This report establishes a policy position.

The policy addresses:

Council’s commitment to good governance, Minimizing the opportunities for fraudulent or corrupt conduct, Detecting, investigating, discipling and prosecuting fraudulent or corrupt conduct, Reporting fraudulent or corrupt conduct to ICAC and/or the NSW Police where appropriate, A commitment to implement appropriate systems Acknowledging that all Council officials have a duty to report Encouraging members of the public to report A commitment to report to the Audit & Risk Committee, and others where appropriate.

The policy is designed to align to AS 8001:2008, Fraud and Corruption Control.

Strategic Alignment This procedure is an output of the implementation of Council’s Corporate Improvement Program and links to item GS03.1.4 in the 2019-2020 Operational Plan.

Impact on Financial Sustainability Nil

Stakeholder Engagement The draft policy has been reviewed and endorsed by the Audit & Risk Committee on 15 July 2020. The committee made a single amendment, that was to require the reporting of incidents to the committee.

There is no legislative requirement for this policy to be exhibited before it’s adoption.


Other Matters A Fraud Control Plan and Strategy is currently being developed and will be adopted by the Executive Leadership Team, prior to being reported to the Audit & Risk Committee.

CONCLUSION It is recommended that the draft policy be adopted.


9.10 DEVELOPMENT ACTIVITY AND LEP VARIATIONS - QUARTERLY SNAPSHOT - 4TH QUARTER

Officer Graham Snow, Manager Development & Compliance File No F18/1831 Attachments Nil

PURPOSE To report to Council quarterly on any approvals that included variations to Council’s Kempsey Local Environmental Plan (KLEP) 2013, which involved the use of Clause 4.6, and to provide information on development approvals for the period of April, May and June 2020.

RECOMMENDATION That the information be noted.

BACKGROUND In accordance with a Department of Planning, Industry & Environment direction, all development applications determined involving the use of State Environmental Planning Policy 1 or clause 4.6 of KLEP 2013 to vary a development standard are required to be reported to Council for information.

During the April to June 2020 quarter there has been no applications approved which involved variations to the KLEP 2013. The Department of Planning, Industry & Environment are informed of any variations via quarterly reporting and any variations are also listed on Council’s website.

Development Activity Information and Statistics The Environmental Planning and Assessment Regulations specify that the approval time for a development application is 40 days.

Listed below are development statistics for the report period being April, May and June 2020, financial year to date totals and a comparison from the same period the previous financial year. It is noted that as a result of unprecedented bushfires during the latter part of 2019, Council planning resources have been heavily involved in assistance and provision of information for those impacted. This will continue through 2020 and will impact on development assessment services as will the current COVID restrictions.

Month No. of DA’s determined

within 40 days

Total No. of DA’s

determined

% Value (Approx)

~ No. of new dwellings approved

April 37 38 97.2 $3.9M 13 May 32 43 73.8 $15.7M 10 June 40 42 95.2 $2.7M 13 YTD TOTALS 2019-20 406 515 78.8 $75M 166 2018-19 YTD TOTALS COMPARISON

303 395 76.7 $29.9 127

Please note:

Private certifier determinations are included in the number of determinations

During this quarter, four development applications have been withdrawn and one development application has been refused. The application that was refused was for the Continued Use of 160 Hives for Beekeeping at Aldavilla.


KEY CONSIDERATIONS Policy and Legislation In accordance with a Department of Planning, Industry & Environment direction, all applications determined involving the use of SEPP 1 or Clause 4.6 to vary a development standard are required to be reported to Council for information and a return submitted to the Department quarterly.

Stakeholder Engagement Public notification is conducted in accordance with the controlling legislation and Council policy.

CONCLUSION That Council note the information on development standard variations and development activity.


9.11 STATEMENT OF CASH AND INVESTMENTS - JUNE 2020 Officer Ron Wood, Manager Financial Services File No N/A Attachments 1. Statement of Cash & Investments [9.11.1 - 3 pages]

PURPOSE In accordance with the Local Government (General) Regulation 2005 (the Regulation), a report on investments is to be provided monthly to Council.

RECOMMENDATION That the information be noted.

BACKGROUND Clause 212 of the regulation states:

Local Government (General) Regulation 2005

Part 9 Division 5 Clause 212

212 Reports on council investments

(1) The responsible accounting officer of a council:

(a) must provide the council with a written report (setting out details of all money that the council has invested under section 625 of the Act) to be presented:

(i) if only one ordinary meeting of the council is held in a month, at that meeting, or

(ii) if more than one such meeting is held in a month, at whichever of those meetings the council by resolution determines, and

(b) must include in the report a certificate as to whether or not the investment has been made in accordance with the Act, the regulations and the council’s investment policies.

(2) The report must be made up to the last day of the month immediately preceding the meeting.

Note: Section 625 of the Act specifies the way in which a council may invest its surplus funds.

KEY CONSIDERATIONS Council's investments are in accordance with the Local Government Act (1993) and Council's investment policy.

Council is currently holding $55.8M in cash and investments as at 30 June 2020. This is $0.7M higher than last month.

Council’s average return on its $35.9M term deposit investments is 1.36%, which is comparable to last month (1.48%).

Investment income year to date is $717k and is higher than budget. The current budget for the full year as adopted in the March Quarterly Budget Review (QBR) is $685k.


A review of Council’s treasury management functions, including investments and borrowings, is currently underway to optimise financial outcomes. These have been delayed as a result of higher priority items due to the COVID-19 pandemic. Proposed changes to treasury management resulting from this review will be tabled at a future council meeting.

CONCLUSION Council is holding $55.8M in cash and investments. Investment income generated is lower than the original 2019-20 budget, mainly due to lower market interest rates than was assumed but is above the current budget adopted in the March Quarterly Budget review.


10 NOTICES OF MOTION/QUESTIONS WITH NOTICE 10.1 QUESTIONS ON NOTICE

COUNCILLOR A P PATTERSON DR QFNM1 Can Council do something about the damage to the pavement and possible trip hazards caused by the delivery of fuel trucks at the United Service Station in Belgrave Street? RESPONSE Staff will make contact with the United Service Station management during July, with the intent of requesting extending the concrete access to enable delivery tankers to appropriately access the station without causing damage. Currently, the driveway does not allow for the delivery tanker to access the refueling points due to the angle of approach from Belgrave Street and the combined length of the truck and trailer.

COUNCILLOR D F SAUL DR QFNM1 Can Council consider slashing behind houses in Leith St due to complaints about overgrown grass and excessive amounts of mosquito's? RESPONSE The Council and Crown owned land between Tozer and Cochrane Streets and Leith and Polwood Streets are slashed periodically as arranged by Council Staff. This work is arranged on a periodic basis depending on need and available funds. Access in the heavily vegetated areas can be difficult, however the area is slashed where accessible. Accessible areas were slashed recently.

COUNCILLOR D F SAUL DR QFNM2 Trucks parking in Smith St, around homes and the lack of visibility when leaving driveways. Can something be done? RESPONSE This matter will be referred for further investigation and discussion at the traffic committee, in order to allow the appropriate response to be collated.

COUNCILLOR S M McGINN DR QFNM1 Can you please advise when maintenance to Left Bank Road, Kinchela is scheduled for? RESPONSE Maintenance activities have occurred on Left Bank Road, Kinchela in late June 2020. This was focused on large potholes that had formed due to wet weather. This work enabled the road to be trafficable, however further works are required to achieve the desired level of service. Due to the low-lying nature of this area, recent wet weather has rendered the road unsuitable for maintenance grading. Works will be prioritised when conditions are appropriate for grading.

COUNCILLOR B J MORRIS DR QFNM1 Does the 2020/2021 Operational Plan include a reseal program? If so, what is the financial allocation for resealing? RESPONSE Operational Plan Action WS05.3.2 “Deliver the sealed road network renewal and rehabilitation


program across regional, rural and local roads” highlights network renewal and rehabilitation. Resealing is a renewal activity and is funded in the 2020-2021 financial year. The Operational Plan reported to the July 2020 Council meeting (this meeting) includes $232,038 for resealing works on local rural roads (and associated heavy patching). In addition to this approximately $300,000 is intended for regional road resealing works from the annual Regional Roads Block Grant. With the recent announcement of $935,000 for a rural road heavy patching and reseal program under the Fixing Local Roads Program, to be spent over the 2020/21 and 2021/22 financial years, additional resealing and heavy patching works will be able to be delivered. Council will need to increase the $232,038 currently allocated to rural road resealing to approximately $405,000 to meet contribution requirements under the grant. The grant funding will focus on a heavy patching program of works, which will allow the benefit of Council’s allocation to be maximised on resealing work.

COUNCILLOR L J HAUVILLE LJH QFNM1 What is the breakdown of costs associated with installing the donated sculpture at Willawarrin? RESPONSE $20,000 has been allocated to this project to cover costs of transporting the completed sculpture to Willawarrin, and constructing a suitable cement base pad, plinth and reinforcements for permanent installation. Any excess budget will contribute towards the cost of capturing production quality footage of the sculptures installation and community unveiling.

COUNCILLOR L J HAUVILLE LJH QFNM2 What does the four instances of “complete” mean when written beside items in 514 10.3A 2020.40 in “Matters in Progress” presented at May 2020 Council? RESPONSE They note that each of the four parts of the resolution are now complete and there are no further actions to occur in relation to these items.

COUNCILLOR L J HAUVILLE LJH QFNM3 In relation to answers provided in Questions on Notice at the May Council Meeting what is the explanation for the dichotomy between QFNM4 and the other answers to QFNM8 and QFNM11? RESPONSE We understand that this question refers to Questions For Next Meeting that were asked during the May Council Meeting but which were answered in the June Council Meeting business paper. In relation to the QFNM submitted to the June 2020 meeting, there is no dichotomy in the answers provided to the QFNM regarding the specific actions relating to the Urgency Motion resolved at the March 2020 Council. Clear responses have been provided that due to a staff oversight and the workload impact of the COVID-19 pandemic, the specific actions were not addressed, particularly in relation to promoting to the community the opportunity to make submissions to the Royal Commission. However, in the course of ongoing advocacy, representation in emergency management networks and government relations, Council did make representation to the Local Federal Member regarding


advocating for Royal Commission hearings; Council's submission was completed and addressed directly as part of the hearings. An outcomes-based assessment would indicate that the objective of representing the issues faced in the Kempsey Shire during the 2019-20 bushfire season has been met.

COUNCILLOR L J HAUVILLE GMB QFNM4 In relation to Airport Landing Charges being exempt for one nominated aircraft per leased hanger at Kempsey Airport have there been any exemptions from this ruling in present leases? RESPONSE The exemption of one nominated aircraft per leased hangar is not a set term or condition within the hangar leases but is included within the annual Kempsey Shire Council published Fees and Charges. The exemption has the opportunity to be amended annually when the Fees and Charges are being reviewed and adopted by Council.

COUNCILLOR L J HAUVILLE SMM QFNM5 What response has been received from letters/emails sent to eleven Members of Parliament (Federal and State) seeking their support for increased financial assistance and stimulus funding for local government to help councils maintain essential services and employment during the COVID-19 pandemic? RESPONSE To date, Council has received four responses and five acknowledgments, while three have not responded as outlined below. Copies of the responses received to date were provided to Councillors in the Weekly Councillor Information Update that was distributed on Friday 26 June 2020. Responses received from:

1. The Hon. Shelley Hancock MP, Minister for Local Government; 2. The Hon. Ben Morton MP, Assistant Minister to the Prime Minister and Cabinet; 3. The Hon. Anthony Albanese MP, Leader of the Australian Labor Party jointly with 4. The Hon. Jason Clare MP, Shadow Minister for Regional Services, Territories and Local

Government. Acknowledgement receipt of email received from:

1. Office of Jodi McKay MP, NSW Opposition Leader; 2. Office of the NSW Premier, the Hon Gladys Berejiklian MP; 3. NSW Shadow Minister for Local Government, Greg Warren MP; 4. Pat Conaghan MP; and 5. The Hon. Melinda Pavey MP.

*No response received from:

1. Federal Minister for Local Government, the Hon. Mark Coulton (received notification KSC will receive pre-payment of $3.3m on next year’s financial assistance allocation – received);

2. Federal Treasurer, the Hon Josh Frydenburg MP; and 3. NSW Treasurer, the Hon Dominic Perrottet MP.

*the above three mentioned letters were sent via mail, not email, therefore not receiving an acknowledgement email.


COUNCILLOR L J HAUVILLE GMS QFNM6 Would the General Manager inform Councillors of any Development Applications (such as the recent Bunnings development) that costed greater than $2 million as soon as they are received, in the interest of transparent oversight? RESPONSE Council Officers are guided by the eleven principles in the 2019 Council adopted Community Engagement Strategy, which strives to achieve effective community engagement in a meaningful and timely way. The level of impact of a Development Application is the key determination of the level of engagement. The Appendix also outlines the statutory requirements for various Development Application types under the Environmental Planning & Assessment Act 1979. With regards to the Bunnings development, Councillors were informed in the 13 September 2019 “Development Activity Update” of the pre-lodgment meeting between Council Officers and the proponent. The 12 June 2020 “Councillors Update” provided information regarding the 20 May 2020 development consent. The Development Application was publicly notified in accordance with Council policy, from 3 March 2020 to 16 March 2020.

COUNCILLOR L J HAUVILLE DR QON1 With the February 2019 Council Meeting resolution for Council to remove the five existing Red Cedar trees and replace them with the same species in larger planting plots to continue the avenue of trees along Smith Street, removal of which subsequently occurred, and with reference to the answer to QFM2 of February 2020 Council Agenda, when will the removal of the stumps, placement of larger planting plots and replanting eventuate? RESPONSE The project along Smith Street will proceed in late August, with reference to the QFNM2 in the Agenda for the February Ordinary Council Meeting, the ideal time of year to undertake this work is in the cooler months, particularly leading into Spring.

COUNCILLOR L J HAUVILLE LJH QON2 With the use of “Macleay Valley Recovery” in the badge for Kempsey Shire Council’s assistance for bushfire affected properties what cooperative involvement has there been with Armidale Regional Council (operating in two thirds of the Macleay Valley) in this action? RESPONSE Council has not undertaken any formal cooperative involvement with Armidale Regional Council in the development of the Recovery Action Plan or branding. As resolved by Council in resolution 2020.60 from the April Council meeting: “The colloquial term Macleay Valley is well known by locals as referring to the Kempsey Shire Council Local Government Area.” The areas of the Kempsey Shire most significantly impacted by fires and drought and therefore targeted recipients of the Recovery program are in the upper Macleay. The media reporting and referencing of the fires in the Kempsey Shire commonly uses the term Macleay Valley. Similarly, the fundraising and support groups that were generated by the community after the fires and the Blaze Aid camp that was established use the term Macleay Valley. For these reasons the colloquial term


Macleay Valley has been used as the Recovery brand.

COUNCILLOR L J HAUVILLE SMM QON3 In the Cinema VPA definitions of a Force Majeure Event a pandemic (such as Covid-19) is not specified, therefore what are any financial and legal impacts in relation to the Federal Government Grant of $2 million on Kempsey Shire Council due to the Riverside Movies at Kempsey Central not being operational for over three months? RESPONSE There are no financial or legal impacts on Kempsey Shire Council as a result of Riverside Movies at Kempsey Central not being operational due to COVID-19.

COUNCILLOR L J HAUVILLE GMS QON4 Does the Kempsey Shire Council Asbestos Register list and/or require the location of stockpiles of asbestos waste on private property in Kempsey Shire? RESPONSE No. The purpose of an Asbestos Register is outlined by the Work Health and Safety Regulation where it directs individual businesses to maintaining a register for their respective assets where asbestos is present.

COUNCILLOR L J HAUVILLE DR QON5 With reference to the statement on the Council website “The existing fence no longer meets safety standards and is (sic) need of replacing.” announcing the replacement of the Kempsey Traffic Bridge fencing, what date was it assessed as no longer meeting safety standards? RESPONSE As improvements are made to the design and functionality of infrastructure over time, it is expected that when an asset has reached the end of its service life, that the replacement meets the requirements of the current standard. As such, there is no specific date for the assessment, however it is recognised that the previous pedestrian fence did not meet the requirements of the Roads and Maritime Services Technical Direction RTD2019/001 | RMS.19.1272 June 2019, or the standard drawings that are referenced R0800 fencing series.

COUNCILLOR L J HAUVILLE JPG QON6 With the State Government announcement of a wage freeze for Public Servants on 27th May will Council employees have a 12-month wage freeze? If not, what will the increase percentage be? RESPONSE The minimum rates of pay and annual wage increases for employees at Kempsey Shire Council are underpinned by the Local Government (State) Award 2020. This Award is renegotiated every three years. In June 2020, the NSW Industrial Relations Commission approved the current 2020 Award which came into effect from 1 July 2020. Over the life of this Award, employees are to receive an annual wage increase from I July of 1.5% (2020), 2% (2021), and 2% (2021). The wages and conditions of State Government public servants are set out in different awards. This announcement by the NSW Premier does not affect Local Government employees.


COUNCILLOR L J HAUVILLE DST QON7 With the State Government announcement of a wage freeze for Public Servants on 27th May will Councillors (including the Mayor) have a 12-month remuneration freeze? If not, what will the increase percentage be? RESPONSE A copy of the Local Government Remuneration Tribunals Report was provided to all Councillors on 19 June 2020. The Local Government Act 1993 (the LG Act) requires the Local Government Remuneration Tribunal (the Tribunal) to report to the Minister for Local Government by 1 May each year as to its determination of categories of councils and the maximum and minimum amounts of fees to be paid to mayors, councillors, and chairpersons and members of county councils. In response to the COVID-19 pandemic the Minister for Local Government, the Hon Shelley Hancock MP, made the Local Government (General) Amendment (COVID-19) Regulation 2020 which extends the time for the making of this determination to no later than 1 July 2020. The Tribunal has determined that there will be no increase in the minimum and maximum fees applicable to each existing category. Councillors may determine, by resolution, to be remunerated any amount between the minimum and maximum established for the Council’s category by the Tribunal. This determination for the 2020/2021 year is reported to this meeting.

COUNCILLOR L J HAUVILLE JPG QON8 With the State Government announcement of a wage freeze for Public Servants on 27th May will the General Manager and Senior Staff have a 12-month wage freeze? If not, what will the increase percentage be, excluding any performance-based increase? RESPONSE In relation to the General Manager the Standard Contract for General Managers states: 8.3 Council may, on only one occasion during each year of this contract, approve an increase in the total remuneration package where the employee’s performance has been assessed in accordance with a performance review as being of a better than satisfactory standard. 8.4 Any increase in remuneration approved under subclause 8.3 will not be paid as a lump sum. 8.5 On each anniversary of the commencement date, the total remuneration package will be increased by a percentage amount that is equivalent to the latest percentage amount increase in remuneration for senior executive office holders as determined by the Statutory and Other Officers Remuneration Tribunal. In relation to 8.3 this increase is at the discretion of the Council and can only be considered “where the employee’s performance has been assessed in accordance with a performance review as being of a better than satisfactory standard.” Remuneration increases for designated Senior Officers (as determined by Council under s332 of the


Local Government Act) is determined by the Statutory and Other Officers Remuneration Tribunal (SOORT). Determinations are published in August – September each year. This approved increase is paid from the employment anniversary date of each senior officer (s8.5 of the Standard Contract of Employment – Department of Local Government). The approved increase is not known at this point in time.

COUNCILLOR L J HAUVILLE EF QON9 With regard to the Answer Provided to Question QFN5 on the June Council Agenda regarding the speed limit on Plummers Lane (length being 9.6 kilometres) is the number of multiple property accesses relevant when there are 48 accesses (approx.) but 53 (approx.) from 60 Armidale Road for 9.6 kilometres west and it is a 100 kilometre an hour speed limit? RESPONSE Transport for NSW (“TfNSW”) authorise speed zones based on criteria outlined in the NSW Government’s Speed Zone Guidelines (“the Guidelines”). A copy of the Guidelines can be located via the following link https://roadsafety.transport.nsw.gov.au/downloads/nsw_sza.pdf. Note roadside development (property accesses) is one of many criteria applied when assessing speed zones. TfNSW also normally consult with the relevant Council’s and have regard to similar zones in other LGA’s to ensure a reasonable level of consistency in the application of speed zones throughout NSW.

COUNCILLOR B J MORRIS WJT QON1 Has Council been successful in seeking amendment to the grant funding deed under the Safe and Secure Water Program for the revised project scope associated with Crescent Head Water Treatment Plant? RESPONSE Council is currently working with Department Planning Industry & Environment for a satisfactory outcome for the Crescent Head community. Once a clear direction is determined the Safe and Secure funding deed will be updated with Infrastructure NSW to reflect the refined scope. Given the project objectives are consistent with that originally intended there is no current concern.

COUNCILLOR B J MORRIS GMB QON2 What have been the total number of complaints received and/or recorded in the complaints register for Kempsey Airport, broken down by the following type; for noise, for low flying/safety or other concerns; by month for the period 1 July 2019 to 30 June 2020? RESPONSE Council’s register of aviation related complaints is updated monthly and published on Council’s website as follows: http://www.kempsey.nsw.gov.au/econodev/pubs/ksc-airport-complaints-register-2020.pdf This data has been recorded and published since the adoption of the Fly Neighbourly Advice in December 2019 and consequently, only 6 months data is available. There have been 7 complaints received by Council in the six-month period from January to June 2020.

https://roadsafety.transport.nsw.gov.au/downloads/nsw_sza.pdf

http://www.kempsey.nsw.gov.au/econodev/pubs/ksc-airport-complaints-register-2020.pdf


COUNCILLOR B J MORRIS GMB QON3 What have been the total number of aircraft movements at Kempsey Airport, by month for the period 1 July 2019 to 30 June 2020? RESPONSE

Jul 19 – 1,640 Aug 19 – 1,229 Sep 19 - 888

Oct 19 – 2,748 Nov 19 – 1,883 Dec 19 - 702

Jan 20 - 462 Feb 20 - 780 Mar 20 – 1,108

Apr 20 - 986 May 20 - 216 Jun 20 - 354

COUNCILLOR B J MORRIS GMB QON4 What has been the total income, expenditure and depreciation at Kempsey Airport, by quarter for the period 1 July 2019 to 30 June 2020? RESPONSE 2019-20 financial data is currently incomplete due to preparation for end of financial year statements (i.e. annual capitalisation of assets is required for the depreciation schedule to be finalised). Information requested will be presented to the September 2020 Council meeting when more accurate data is available.

COUNCILLOR B J MORRIS WJT QON5 Has the detailed design and documentation of the South Kempsey Pressure Sewerage Scheme been finalised RESPONSE The design is largely complete, however staff are resolving at present a design change related to a landowner request arising from discussions had with them, which benefits Council and the landowner. Provided there are no issues ultimately with the landowner in terms of an easement creation then this should not impact timelines too much.

COUNCILLOR B J MORRIS WJT QON6 When is it anticipated that a report will be presented to Council to award a contract for the construction of the South Kempsey Pressure Sewerage Scheme? RESPONSE It is anticipated that a report will be presented to Council for the award of a contract for the construction of the South Kempsey Pressure Sewerage Scheme late 2020, or if not the February 2021 Council meeting.

COUNCILLOR B J MORRIS WJT QON7 What is the anticipated commissioning date for the South Kempsey Pressure Sewerage Scheme? RESPONSE It is anticipated that the South Kempsey Pressure Sewer Scheme will have a practical completion in late 2021 per the draft Operating Plan action.


COUNCILLOR B J MORRIS DR QON8 Does Council have a Quality System for Road Construction and Maintenance? If, yes when was this system adopted and when was this system last reviewed RESPONSE Council has a basic quality system for road construction and maintenance; however, it is not independently certified and does not currently meet Transport for NSW standards for example. Knowledge and skills of staff with regard to system implementation also vary and is a future area of focus. The quality system is currently under review, and includes the implementation of a quality, safety and environmental management systems, inclusive of testing as stipulated within relevant standards and specifications. Training to support staff development in such systems will be an important aspect of this process. Enhanced processes in project development through pavement investigation and pavement design are in place for much of Council’s road construction and renewal programs.

COUNCILLOR B J MORRIS DR QON9 What was the cost to Council for the insitu stabilisation and pavement rework resulting from the pavement and primer seal failure on Crescent Head Road in the vicinity of Blairs Lane? RESPONSE The in situ stabilisation completed costed $43,470, inclusive of the supply of lime, plant and labour to complete the rework. This work is expected to have been undertaken within or close the original allocation for the project.

COUNCILLOR B J MORRIS DR QON10 The condition of the abutments, including the wing walls of the Mungay Creek bridge on Armidale Road was raised and inspected as a part of the Willawarrin Community Catch-up on 5 December 2018. Has the scope of works to repair the erosion to this structure been finalised? When is this work scheduled to be undertaken? RESPONSE The scope of works to repair erosion occurring at the abutments on the Mungay Creek Bridge is not yet finalised, however a repair concept is complete. Work is programmed for late in the 2020-2021 financial year, due to the bridge team’s commitments elsewhere at present. Work is not considered urgent in comparison to other priorities for bridge works.

COUNCILLOR B J MORRIS EF QON11 What is the status of the Voluntary Planning Agreement (VPA), preparation and negotiations in support of the Planning Proposal at 600 Macleay Valley Way, South Kempsey? When is it anticipated that this VPA will be finalised? RESPONSE


Further to the last Matters in Progress update in May 2020, the proponent (Spectrum Pty Ltd) has provided their comments on the draft planning agreement very recently. Staff will review and continue to work towards a final draft planning agreement ready for public exhibition. The earliest this could be, subject to no significant matters arising from the recent comments, would be by end September. A 28-day mandatory public exhibition period would then be required, and following that, Council decision to enter into the agreement. The best case for finalisation of the planning agreement is prior to the end of this calendar year.

COUNCILLOR B J MORRIS GMB QON12 Has the new licence agreement for Stuarts Point Tennis Courts been finalised? If not implemented, when is it anticipated that the new agreement will be implemented? RESPONSE Council’s property consultant is currently drafting the new licence agreement which will form the basis of all future licences/lease agreements for tennis facilities within the Shire. It is expected that the new licence agreement will be issued to the Committee on or before 31 July 2020.

COUNCILLOR B J MORRIS SMM QON13 Council has recently undertaken Survey work on Council owned land on both sides of Old Aerodrome Road, including land within the Kempsey Airport. What is the purpose of this work? RESPONSE The surveying relates to the proposed Macleay Valley Adventure Recreation Park project. The draft 2020-21 Operating Plan included an action in relation to this project and it is an action (WS05.1.7) within the 2020-21 Operating Plan tabled for adoption at this Council meeting.

COUNCILLOR B J MORRIS RRW QON14 What has been the outcome to date of Council Resolution 2020.109 of 16 June 2020 which reads: That Council: 1. Authorise the General Manager to continue to investigate access to T-Corp loan funding arrangements 2. Request the General Manager further investigate the need for any loan borrowings prior to 30 June 2020 3. Authorise the General Manager to accept the offer of loans for the General Fund to the determined amount, not exceeding $5,300,000, from the institutions providing the most advantageous outcome to Council should loan borrowings be required before 30 June 2020 4. Note that by not undertaking borrowings in the 2019-20 financial year that internally restricted cash and investments will need to be used to cover any shortfall in unrestricted cash in the short-term 5. Note that the 2020-21 Long-Term Financial Plan, to be adopted at the 28 July 2020 Council meeting, will identify potential borrowings to cover the period to 30 June 2021 RESPONSE As advised to Councillors during the IP&R briefing on 1 July 2020, further discussions have been held with T-Corp regarding their requirements and the T-Corp credit assessment process. The formal application process with T-Corp will commence after adoption of the 2020-21 IP&R documents at the 28 July 2020 Council Meeting as the 2020-21 budget and LTFP are prerequisites


for this process. No borrowings were undertaken as of 30 June 2020. The borrowings included in the IP&R documents for the 2020-21 financial year take this into account.


11 CONFIDENTIAL MATTERS MOTION FOR CONFIDENTIAL SESSION In accordance with the Local Government Act 1993 and the Local Government (General) Regulation 2005, in the opinion of the General Manager, the following business is of a kind as referred to in section 10A(2) of the Act, and should be dealt with in a part of the meeting closed to the media and public. Set out below is section 10A(2) of the Local Government Act 1993 in relation to matters which can be dealt with in the closed part of a meeting. The matters and information are the following: (a) personnel matters concerning particular individuals (other than councillors) (b) the personal hardship of any resident or ratepayer (c) information that would, if disclosed, confer a commercial advantage on a person with whom

the Council is conducting (or proposes to conduct) business (d) commercial information of a confidential nature that would, if disclosed;

(i) prejudice the commercial position of the person who supplied it, or

(ii) confer a commercial advantage on a competitor of the Council, or

(iii) reveal a trade secret (e) information that would, if disclosed, prejudice the maintenance of law (f) matters affecting the security of the Council, councillors, council staff or Council property (g) advice concerning litigation, or advice that would otherwise be privileged from production in

legal proceedings on the grounds of legal professional privilege (h) information concerning the nature and location of a place or an item of Aboriginal significance

on community land. Councillors are reminded of their statutory obligations in relation to the non-disclosure to any outside person of matters included in this section. That Council form itself into the Confidential Session, and at this stage, the meeting be closed to the public to permit discussion of the confidential business items listed for the reasons as stated in the Agenda.


11.1 LEGAL MATTERS Officer Daniel Thoroughgood, Manager Governance & Information Services File No F19/1960 Section 10A(2)(g) – Legal Proceedings

This report is submitted on a confidential basis as it involves advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege. (Local Government Act 1993, section 10A(2)(g))

On balance, the public interest in preserving the confidentiality of the advice, outweighs the public interest in openness and transparency in council decision making by discussing the matter in open meeting.

12 CONCLUSION OF THE MEETING

commencing at 9:00 am Corner Tozer and Elbow Streets, West ... · 7/28/2020 · 7.1 NEW SOUTH...

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