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ADELAIDE HILLS COUNCIL ORDINARY COUNCIL MEETING Tuesday, 22 September 2015

CONFIDENTIAL AGENDA BUSINESS ITEM

Item: 19.1 Originating Officer: Lachlan Miller, Manager Governance & Risk Responsible Director: Terry Crackett, Director Corporate Services Subject: Acquisition of land adjoining Checker Hill Road, Kersbrook to

open as road For: Decision

1. Acquisition of land adjoining Checker Hill Road, Kersbrook to open as road – Exclusion of the Public

Pursuant to section 90(2) of the Local Government Act 1999 the Council orders that all members of the public, except:

CEO, Andrew Aitken

Director Engineering & Assets, Deb Richardson

Director Strategy & Development, Marc Salver

Director Corporate Services, Terry Crackett

Director Community & Customer Service, David Waters

Manager Governance & Risk, Lachlan Miller

Minute Secretary, Pam Williams be excluded from attendance at the meeting for Agenda Item 18.1: Purchase of a portion of land adjoining Checker Hill Road, Kersbrook to open as road. The Council is satisfied that, pursuant to section 90(3)(d) of the Act, the information to be received, discussed or considered in relation to this Agenda Item is commercial information of a confidential nature (not being a trade secret) the disclosure of which could reasonably be expected to prejudice the commercial position of the person who supplied the information, or to confer a commercial advantage on a third party. In addition, the disclosure of this information would, on balance, be contrary to the public interest. The public interest in public access to the meeting has been balanced against the public interest in the continued non-disclosure of the information. The benefit to the public at large resulting from withholding the information outweighs the benefit to it of disclosure of the information. The Council is satisfied that the principle that the meeting be conducted in a place open to the public has been outweighed in the circumstances because the disclosure of this information may be detrimental to person who supplied the information.

Adelaide Hills Council – Ordinary Council Meeting 22 September 2015 CONFIDENTIAL - Purchase land adjoining Checker Hill Road, Kersbrook to open as road

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2. Purchase of land adjoining Checker Hill Road, Kersbrook to open as road – Confidential Item

SUMMARY

A portion of Checker Hill Road in Kersbrook, refer Appendix 1, was reconstructed in 2014 to improve the safety of one of the bends on a steep section of the road. The Design Engineer recommended the realignment of the road to improve the safety. The realignment required the acquisition of a portion of land from the adjoining landowner. The land owner agreed to the boundary re-alignment through a land division process and the project proceeded. This report seeks to finalise the purchase of the land for a cost of $8,400 plus associated expenses. RECOMMENDATION Council resolves:

1. That the report be received and noted 2. That the Mayor and CEO be authorised to execute and seal all relevant documents

required to acquire two portions of land, approximately 469 m2, within Certificate of Title 5649 Folio 692, to be incorporated with the existing road to form proposed Lot 800, as detailed in Appendix 2, for the purchase price of $8,400 plus expenses for the purpose of road widening.

3. That the acquired land form part of the adjoining road reserve.

1. GOVERNANCE

Strategic Management Plan/Council Policy Goal 2 Sustainable Natural and Built Environs Key Issue 2.4 Facilities and Built Form Key Issue 2.6 Transport and Movement Legal Implications

Section 190 of the Local Government Act 1999 (the Act) permits a council to acquire land by agreement. The acquired land will become road reserve and will not be classified as community land under s193 of the Act.

Adelaide Hills Council – Ordinary Council Meeting 22 September 2015 CONFIDENTIAL - Purchase land adjoining Checker Hill Road, Kersbrook to open as road

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Section 191 of the Act provides that a council may, with the Minister’s written approval, acquire land compulsorily in accordance with the provisions of the Land Acquisition Act 1969. Section 208 of the Local Government Act 1999 provides that all public roads in a council area are vested in the council in fee simple under the Real Property Act 1886. Council does not currently have a policy position on the purchase of land as it is excluded from the Procurement and Purchasing Policy. Risk Management Implications Council’s acquisition of the land to widen the Checker Hill road reserve will assist in mitigating the risk of:

Inability to voluntarily acquire required property leading to the initiation of a compulsory acquisition process

Inherent Risk Residual Risk Target Risk

High (3B) Medium (3C) Low (2E)

Note: The resolution of the Checker Hill acquisition will bring about a reduction in the risk rating from Residual to Target. Financial and Resource Implications The costs associated with the land acquisition will be capitalised with the project for the road reconstruction. In addition to the recommended purchase price of $8,400, there will be expenses incurred in surveying the land, valuations and Land Title Office fees. Customer Service and Community/Cultural Implications The road re-alignment will improve the safety to all users of Checker Hill Road. Environmental Implications This area of land was burnt in the recent Sampson Flat Bushfires with much of the road side vegetation lost. The proposed boundary re-alignment has taken into consideration the topography of the land and will enable the land owner to access his land to manage the re-growth. Engagement/Consultation with Committee, Regional Subsidiary, Advisory Group

and Community

Consultation occurred with the adjoining land owner.

2. BACKGROUND In 2013/14 a section of Checker Hill Road at Kersbrook was reconstructed and as part of the works, the road was realigned to improve the radius of one of the bends on a steep section.

Adelaide Hills Council – Ordinary Council Meeting 22 September 2015 CONFIDENTIAL - Purchase land adjoining Checker Hill Road, Kersbrook to open as road

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This realignment involved encroaching upon a small part of a larger rural allotment. The owner of the land agreed to the boundary realignment subject to a reasonable price being paid for the land. Appendix 1 shows a portion of Checker Hill Road with the realigned section on the bend toward the right side of the aerial image. Red lines on that bend show the two areas of land to be acquired. Appendix 2 shows the proposed plan to be lodged. Proposed Lot 800 will be created by the existing Checker Hill Road reserve and the two pieces to be added (which total 469m2) which are shown in Enlargements 2 and 3 (which are both circled).

3. ANALYSIS Following a verbal agreement with the land owner to encroach upon the land, the road reconstruction project proceeded and an independent valuation for the land was sought. Council originally sought to purchase only 315.7m² from the land owner, Mr Kempster, but the market valuation for the subject land, $5,000, was rejected. Following a detailed survey the final size of the land encroached upon by Council’s road was determined to be 469m2. A second valuation was sought in May 2015 and it was determined that the market value of the subject land was $7,000. Council’s offer to purchase the land from Mr Kempster for $7,000 was rejected and Mr Kempster made a counter offer of $8,400 which he believes better reflects the value of the land and the time he has spent preparing the site for the land transfer. The offer before Council is reasonable and it should be noted that Mr Kempster agreed to allow for the project to proceed in good faith. Mr Kempster is very keen to have this matter finalised in a timely manner. The land to be acquired will be incorporated into the road reserve by simple boundary realignment. No additional allotments would be created.

4. OPTIONS Council has the following options: 1. To resolve to offer $8,400 for the acquisition of the subject land (Recommended). 2. To determine not to offer $8,400 for the acquisition of the subject land, either by

nominating an alternative figure or instructing the Administration to initiate a compulsory acquisition process. The latter would be a lengthy process and is likely to involve costs greater that the $1,400 differential between the valuation and the land owner’s request and is therefore not recommended.

5. APPENDICES

(1) Checker Hill Road, Kersbrook (2) Survey Plan of portions of land proposed to be purchased

Appendix 1 Checker Hill Road, Kersbrook

D51475 Q203

Sec: 481 PL:105700 CT:256/185

Lot 21 Sec: P6087 DP:35016 CT:5094/185

Lot 20 Sec: P6087 DP:35016 CT:5094/184

Lot 200 DP:51475 CT:5649/690

Lot 2 Sec: P6368 DP:15430 CT:5625/266

Lot 1 Sec: P6393 DP:15430 CT:5753/109

Lot 71 Sec: P6393 FP:155286 CT:5770/902

Pce: 203DP:51475 CT:5649/692Lot 51 Sec: P6380 DP:91435 CT:6144/524

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CHECKER HILL ROAD

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Appendix 2 Survey Plan of portions of land proposed to be

purchased

3. Purchase of land adjoining Checker Hill Road, Kersbrook to open as road – Period of Confidentiality

That having considered Agenda Item 18.1 in confidence under section 90(2) and 90 (3) (d) of the Local Government Act 1999, the Council, pursuant to section 91(7) of that Act, orders that the documents, reports and minutes pertaining to this matter, including discussions and considerations, be retained in confidence until the documentation is executed, but not longer than 12 months, pursuant to section 91(9).