agenda – public 17 january 2017 - shire of ashburton · 2017-01-11 · november 2016 and december...

Agenda – Public 17 January 2017

Clem Thompson Sports Pavilion Stadium Road Tom Price 1.00pm

The Shire of Ashburton respectfully acknowledges the traditional custodians of this land.

AGENDA - ORDINARY MEETING OF COUNCIL 17 JANUARY 2017

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SHIRE OF ASHBURTON ORDINARY MEETING OF COUNCIL

AGENDA

Clem Thompson Sports Pavilion,

Stadium Road, Tom Price 17 January 2017

1.00 pm


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SHIRE OF ASHBURTON

ORDINARY MEETING OF COUNCIL

Dear Councillor Notice is hereby given that an Ordinary Meeting of Council of the Shire of Ashburton will be held on 17 January 2017 at Clem Thompson Sports Pavilion, Stadium Road, Tom Price commencing at 1:00 pm. The business to be transacted is shown in the Agenda. Neil Hartley CHIEF EXECUTIVE OFFICER

DISCLAIMER The recommendations contained in the Agenda are subject to confirmation by Council. The Shire of Ashburton warns that anyone who has any application lodged with Council must obtain and should only rely on written confirmation of the outcomes of the application following the Council meeting, and any conditions attaching to the decision made by the Council in respect of the application. No responsibility whatsoever is implied or accepted by the Shire of Ashburton for any act, omission or statement or intimation occurring during a Council meeting.


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1. DECLARATION OF OPENING ............................................................................. 4 1.1 ACKNOWLEDGEMENT OF COUNTRY ............................................................................ 4

2. ANNOUNCEMENT OF VISITORS ........................................................................ 4 3. ATTENDANCE ...................................................................................................... 4

3.1 PRESENT ........................................................................................................................... 4 3.2 APOLOGIES ....................................................................................................................... 4 3.3 APPROVED LEAVE OF ABSENCE ................................................................................... 4

4. QUESTION TIME .................................................................................................. 4 4.1 RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE ....................... 4 4.2 PUBLIC QUESTION TIME ................................................................................................. 4

5. APPLICATIONS FOR LEAVE OF ABSENCE ...................................................... 5 6. DECLARATION BY MEMBERS ........................................................................... 5

6.1 DUE CONSIDERATION BY COUNCILLORS TO THE AGENDA ..................................... 5 6.2 DECLARATIONS OF INTEREST ....................................................................................... 5

7. ANNOUNCEMENTS BY THE PRESIDING PERSON WITHOUT DISCUSSION . 6 8. PETITIONS / DEPUTATIONS / PRESENTATIONS ............................................. 6

8.1 PETITIONS ......................................................................................................................... 6 8.2 DEPUTATIONS .................................................................................................................. 6 8.3 PRESENTATIONS ............................................................................................................. 6

9. CONFIRMATION OF MINUTES OF PREVIOUS MEETING ................................ 6 9.1 ORDINARY MEETING OF COUNCIL HELD ON 16 DECEMBER 2016 ........................... 6

10. AGENDA ITEMS ADOPTED "EN BLOC" ............................................................ 7 10.1 MOVE AGENDA ITEMS 'EN BLOC' ................................................................................... 7

11. GOVERNANCE & EXECUTIVE SERVICE REPORTS ......................................... 8 11.1 PROGRESS OF IMPLEMENTATION OF COUNCIL DECISIONS DECEMBER 2016 ..... 8 11.2 USE OF COMMON SEAL AND ACTIONS PERFORMED UNDER DELEGATED

AUTHORITY FOR THE MONTH OF DECEMBER 2016 ................................................. 10 12. COMMUNITY DEVELOPMENT REPORTS ........................................................ 12 13. CORPORATE SERVICES REPORTS ................................................................ 12

13.1 RECEIPT OF FINANCIALS AND SCHEDULE OF ACCOUNTS FOR MONTH OF NOVEMBER 2016 AND DECEMBER 2016 ..................................................................... 12

13.2 AUDIT AND RISK COMMITTEE - ADOPTION OF RECOMMENDATIONS ................... 14 14. DEVELOPMENT AND REGULATORY SERVICES REPORTS ......................... 16

14.1 MEMORANDUM OF UNDERSTANDING BETWEEN LOCAL GOVERNMENTS IN THE PILBARA EMERGENCY MANAGEMENT DISTRICT – RECOVERY ACTIVITIES ........ 16

15. INFRASTRUCTURE SERVICES REPORTS ...................................................... 19 15.1 AWARD OF RFT 26/17 - DESIGN & CONSTRUCTION OF AIRCRAFT HANGAR AT

ONSLOW AIRPORT ......................................................................................................... 19 16. STRATEGIC AND ECONOMIC DEVELOPMENT REPORTS ........................... 24

16.1 PARABURDOO COMMUNITY HUB - ARCHITECTURAL SERVICES TENDER ........... 24 17. COUNCILLOR AGENDA ITEMS / NOTICES OF MOTIONS ............................. 28 18. NEW BUSINESS OF AN URGENT NATURE INTRODUCED BY DECISION OF

MEETING ............................................................................................................ 28 19. CONFIDENTIAL MATTERS ............................................................................... 28 20. NEXT MEETING ................................................................................................. 28 21. CLOSURE OF MEETING.................................................................................... 28


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1. DECLARATION OF OPENING

1.1 ACKNOWLEDGEMENT OF COUNTRY As representatives of the Shire of Ashburton Council, we respectfully acknowledge the local Indigenous people, the traditional custodians of this land where we are meeting upon today and pay our respects to them and all their elders both past and present.

2. ANNOUNCEMENT OF VISITORS

3. ATTENDANCE 3.1 PRESENT Cr K White Shire President, Onslow Ward Cr L Rumble Deputy Shire President, Paraburdoo Ward Cr D Dias Paraburdoo Ward Cr L Thomas Tableland Ward Cr M Lynch Tom Price Ward Cr D Diver Tom Price Ward Cr P Foster Tom Price Ward Cr M Gallanagh Pannawonica Ward Mr N Hartley Chief Executive Officer Mr F Ng Acting Executive Manager, Corporate Services Mr T Davis Executive Manager, Infrastructure Services Ms A Serer Executive Manager, Strategic &

Economic Development Ms L Reddell Executive Manager, Development &

Regulatory Services Ms L O’Reilly Executive Manager, Community Development Mrs T Forbes CEO & Councillor Support Officer Miss J Forward Corporate Services Support Coordinator 3.2 APOLOGIES Cr G Dellar Ashburton Ward 3.3 APPROVED LEAVE OF ABSENCE

There are no Councillors on approved leave of absence.

4. QUESTION TIME 4.1 RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE There were no previous public questions taken on notice. 4.2 PUBLIC QUESTION TIME


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5. APPLICATIONS FOR LEAVE OF ABSENCE

6. DECLARATION BY MEMBERS

6.1 DUE CONSIDERATION BY COUNCILLORS TO THE AGENDA That Councillors ……………have given due consideration to all matters contained in the Agenda presently before the meeting.

6.2 DECLARATIONS OF INTEREST Councillors to Note

A member who has a Financial Interest in any matter to be discussed at a Council or Committee Meeting, that will be attended by the member, must disclose the nature of the interest:

(a) In a written notice given to the Chief Executive Officer before the Meeting

or;

(b) At the Meeting, immediately before the matter is discussed.

A member, who makes a disclosure in respect to an interest, must not:

(c) Preside at the part of the Meeting, relating to the matter or;

(d) Participate in, or be present during any discussion or decision-making procedure relative to the matter, unless to the extent that the disclosing member is allowed to do so under Section 5.68 or Section 5.69 of the Local Government Act 1995.

NOTES ON FINANCIAL INTEREST (FOR YOUR GUIDANCE)

The following notes are a basic guide for Councillors when they are considering whether they have a Financial Interest in a matter.

I intend to include these notes in each agenda for the time being so that Councillors may refresh their memory.

1. A Financial Interest requiring disclosure occurs when a Council decision might advantageously or detrimentally affect the Councillor or a person closely associated with the Councillor and is capable of being measure in money terms. There are exceptions in the Local Government Act 1995 but they should not be relied on without advice, unless the situation is very clear.

2. If a Councillor is a member of an Association (which is a Body Corporate) with not less than 10 members i.e. sporting, social, religious etc), and the Councillor is not a holder of office of profit or a guarantor, and has not leased land to or from the club, i.e., if the Councillor is an ordinary member of the Association, the Councillor has a common and not a financial interest in any matter to that Association.

3. If an interest is shared in common with a significant number of electors or ratepayers, then the obligation to disclose that interest does not arise. Each case needs to be considered.

4. If in doubt declare.


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5. As stated in (b) above, if written notice disclosing the interest has not been given to the Chief Executive Officer before the meeting, then it MUST be given when the matter arises in the Agenda, and immediately before the matter is discussed.

6. Ordinarily the disclosing Councillor must leave the meeting room before discussion commences. The only exceptions are:

6.1 Where the Councillor discloses the extent of the interest, and Council carries a motion under s.5.68(1)(b)(ii) or the Local Government Act; or

6.2 Where the Minister allows the Councillor to participate under s.5.69(3) of the Local Government Act, with or without conditions.

Declarations of Interest provided:

Item Number/ Name Type of Interest Nature/Extent of Interest

7. ANNOUNCEMENTS BY THE PRESIDING PERSON

WITHOUT DISCUSSION

8. PETITIONS / DEPUTATIONS / PRESENTATIONS 8.1 PETITIONS 8.2 DEPUTATIONS 8.3 PRESENTATIONS

9. CONFIRMATION OF MINUTES OF PREVIOUS MEETING 9.1 ORDINARY MEETING OF COUNCIL HELD ON 16 DECEMBER 2016

Officer’s Recommendation That the Minutes of the Ordinary Meeting of Council held on 16 December 2016, as previously circulated on 21 December 2016, be confirmed as a true and accurate record.


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10. AGENDA ITEMS ADOPTED "EN BLOC"

10.1 MOVE AGENDA ITEMS 'EN BLOC' The following information is provided to Councillors for guidance on the use of En Bloc voting as is permissible under the Shire of Ashburton Standing Orders Local Law 2012:

“Part 5 – Business of a meeting Clause 5.6 Adoption by exception resolution:

(1) In this clause ‘adoption by exception resolution’ means a resolution of the Council that has the effect of adopting, for a number of specifically identified reports, the officer recommendation as the Council resolution.

(2) Subject to subclause (3), the Local Government may pass an adoption by exception resolution.

(3) An adoption by exception resolution may not be used for a matter; (a) that requires a 75% majority or a special majority; (b) in which an interest has been disclosed; (c) that has been the subject of a petition or deputation; (d) that is a matter on which a Member wishes to make a statement; or (e) that is a matter on which a Member wishes to move a motion that is different

to the recommendation.”


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11. GOVERNANCE & EXECUTIVE SERVICE REPORTS

11.1 PROGRESS OF IMPLEMENTATION OF COUNCIL DECISIONS DECEMBER 2016

FILE REFERENCE: GV04 AUTHOR’S NAME AND POSITION:

Tahnee Forbes CEO & Councillor Support Officer

NAME OF APPLICANT/ RESPONDENT:

Not Applicable

DATE REPORT WRITTEN: 4 January 2017 DISCLOSURE OF FINANCIAL INTEREST:

The author has no financial interest in the proposal.

PREVIOUS MEETING REFERENCE:

Agenda Item 10.1 (Minute: 11477) – Ordinary Meeting of Council 10 April 2013

Summary The purpose of this agenda item is to report back to Council on the progress of the implementation of Council decisions. Background The purpose of this agenda item is to report back to Council on the progress of the implementation of Council decisions. Comment Wherever possible, Council decisions are implemented as soon as practicable after a Council meeting. However there are projects or circumstances that mean some decisions take longer to action than others.

This report presents a summary of the “Decision Status Reports” for Office of the CEO, Corporate Services, Infrastructure Services, Strategic & Economic Development, Community Development and Development & Regulatory Services.

ATTACHMENT 11.1 Consultation Chief Executive Officer Executive Management Team Statutory Environment Not Applicable Financial Implications Not Applicable


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Strategic Implications Shire of Ashburton 10 Year Community Strategic Plan 2012-2022 Goal 05 – Inspiring Governance Objective 04 – Exemplary Team and Work Environment Risk Management This item has been evaluated against the Shire of Ashburton’s Risk Management Policy CORP5 Risk Matrix. The perceived level of risk is considered to be “Low” risk and can be managed by routine procedures, and is unlikely to need specific application of resources. Policy Implications Not Applicable Voting Requirement Simple Majority Required Recommendation That Council receives the “Decision Status Reports” as per ATTACHMENT 11.1.

Author: Tahnee Forbes Signature: Manager: Neil Hartley Signature:


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11.2 USE OF COMMON SEAL AND ACTIONS PERFORMED UNDER DELEGATED AUTHORITY FOR THE MONTH OF DECEMBER 2016

FILE REFERENCE: GV21 AUTHOR’S NAME AND POSITION:

Janyce Smith Executive Officer Sheree Selton Administration Assistant Planning


Not Applicable


The authors have no financial interest in the proposal.


Not Applicable

Summary The purpose of this agenda item is to report to Council for information, Use of the Common Seal and actions performed under delegated authority requiring referral to Council, for the month of December 2016. Background Council has historically sought a monthly update of the more significant activities for the organisation relative to (1) use of the Common Seal, and (2) actions performed under delegated authority requiring referral to Council as per the Shire of Ashburton Delegated Authority Register 2016. Comment A report on use of the Common Seal and relevant actions performed under delegated authority has been prepared for Council.

ATTACHMENT 11.2 Consultation Relevant officers as listed in the Attachment. Statutory Environment Local Government Act 1995 Clause 9.3 of the Shire of Ashburton Town Planning Scheme No. 7 Financial Implications As outlined in Attachment 11.2.


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Strategic Implications Shire of Ashburton 10 Year Community Strategic Plan 2012-2022 Goal 05 – Inspiring Governance Objective 04 – Exemplary Team and Work Environment Risk Management This item has been evaluated against the Shire of Ashburton’s Risk Management Policy CORP5 Risk Matrix. The perceived level of risk is considered to be “Low” in light of the report being for information purposes only and the risk and can be managed by routine procedures, and is unlikely to need specific application of resources. Policy Implications ELM 13 – Affixing the Shire of Ashburton Common Seal. FIN12 – Purchasing and Tendering Policy. Voting Requirement Simple Majority Required Recommendation That Council accept the report “11.2 Use of Common Seal and Actions Performed Under Delegated Authority for the Month of December 2016”.

Author: Janyce Smith Signature: Manager: Neil Hartley Signature:


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12. COMMUNITY DEVELOPMENT REPORTS There were no reports presented

13. CORPORATE SERVICES REPORTS

13.1 RECEIPT OF FINANCIALS AND SCHEDULE OF ACCOUNTS FOR MONTH OF NOVEMBER 2016 AND DECEMBER 2016

FILE REFERENCE: FM03 AUTHOR’S NAME AND POSITION:

Freemond Ng Acting Executive Manager, Corporate Services


Not Applicable




Not Applicable

Summary In accordance with Regulation 34 of the Local Government (Financial Management) Regulations, the Shire is to prepare a monthly Statement of Financial Activity for consideration by Council. Background Regulation 34 of the Local Government (Financial Management) Regulations requires the Shire to prepare a monthly statement of Financial Activity for consideration by Council. Comment This report presents a summary of the financial activity for the following month: November 2016

Statements of Financial Activity and associated statements for the Month of November 2016.

ATTACHMENT 13.1A

December 2016 Schedule of Accounts and Credit Cards paid under delegated authority for the Month

of December 2016.

ATTACHMENT 13.1B


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Consultation Executive Manager - Corporate Service Executive Management Team Finance Manager Finance Coordinator Finance Officers Consultant Accountant Statutory Environment Section 6.4 Local Government Act 1995, Part 6 – Financial Management, and regulation 34 Local Government (Financial Management) Regulation 1996. Financial Implications Financial implications and performance to budget are reported to Council on a monthly basis. Strategic Implications Shire of Ashburton 10 year Community Strategic Plan 2012-2022 Goal 5 - Inspiring Governance Objective 4 - Exemplary Team and Work Environment Risk Management This item has been evaluated against the Shire of Ashburton’s Risk Management Policy CORP5 Risk Matrix. The perceived level of risk is considered to be “Low” risk and can be managed by routine procedures, and is unlikely to need specific application of resources. Policy Implications There are no policy implications in this matter. Voting Requirement Simple Majority Required Recommendation That Council: 1. Accepts the Financial Reports for November 2016 ATTACHMENT 13.1A; and 2. Notes the Schedule of Accounts and Credit Cards paid in December 2016 as approved

by the Chief Executive Officer in accordance with delegation DA03-1 Payments from Municipal Fund and Trust Funds as per ATTACHMENT 13.1B.

Author: Freemond Ng Signature: Manager: Neil Hartley Signature:


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13.2 AUDIT AND RISK COMMITTEE - ADOPTION OF RECOMMENDATIONS FILE REFERENCE: FM14.16.17 AUTHOR’S NAME AND POSITION:

Deborah Cleary Administration Manager


Not Applicable


The author has no financial interest in this matter.


Not Applicable

Summary The Audit and Risk Committee is meeting on the morning of the Council meeting. The purpose of this agenda item is to allow the Recommendation(s) of that Committee to progress in a timely manner. Background The Audit and Risk Committee is meeting on the morning of the Council meeting. The purpose of this agenda item is to allow the Recommendation(s) of that Committee to be progressed in a timely manner. Comment The early adoption of the Audit and Risk Committee recommendation will enable the prompt progression of those recommendations. Consultation Audit and Risk Committee Chief Executive Officer Executive Manager Corporate Services Finance Manager Statutory Environment Section 7.3. Local Government Act 1995 - Appointment of auditors Regulation 17 Local Government Audit Regulations 1996. Local Government Operational Guidelines Number 09 -Audit in Local Government – Revised September 2013 Financial Implications Auditor’s fees will be incorporated into the Council Annual Budget. Other financial implications are highlighted within the Audit & Risk Committee Agenda.


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Strategic Implications Shire of Ashburton 10 Year Community Strategic Plan 2012-2022 Goal 5 – Inspiring Governance Objective 4 – Exemplary Team & Work Environment Risk Management Adoption of this item has been evaluated against the Shire of Ashburton’s Risk Management Policy CORP5 Risk Matrix. The perceived level of risk is considered to be “Medium” risk ( l a rge l y due t o t he cos t s o f deve lop ing / imp lemen t i ng new p rocedu res , e t c ) but can be managed by routine procedures and monitoring by the Executive Manager Corporate Services.

Policy Implications There are no policy implications to this matter, other than those highlighted within the Audit & Risk Committee Agenda. Voting Requirement Simple Majority Required Recommendation That Council endorse the following Audit and Risk Committee recommendations: 1. …………. 2. …………. (to be inserted following the completion of the Audit and Risk Committee meeting)

Author: Deborah Cleary Signature: Manager: Freemond Ng Signature:


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14. DEVELOPMENT AND REGULATORY SERVICES REPORTS

14.1 MEMORANDUM OF UNDERSTANDING BETWEEN LOCAL GOVERNMENTS IN THE PILBARA EMERGENCY MANAGEMENT DISTRICT – RECOVERY ACTIVITIES

FILE REFERENCE: ES08 AUTHOR’S NAME AND POSITION:

Morgwn Jones Emergency Management Co-ordinator


Not Applicable




Not applicable

Summary With the onset of the tropical cyclone and bush fire seasons in the Pilbara, it is an opportune time for Council to consider a proposed memorandum of understanding (MOU) between the Local Governments in the Pilbara Emergency Management District for the purpose of formalising cooperation in respect of recovery activities. Background A draft MOU was forwarded to local government emergency management staff within the Pilbara Emergency Management District (which includes the Pilbara and Exmouth local government areas) in October 2016. The draft MOU was developed in response to ongoing discussions between the Shire’s Emergency Management Coordinator and emergency management staff at the Town of Port Hedland, City of Karratha, the Shire of East Pilbara. Letters were sent to all relevant CEO’s on 22 December 2016 requesting their review and support of the MOU.

ATTACHMENT 14.2A ATTACHMENT 14.2B

The Shire of Exmouth has been included in all correspondence, however at this stage they have not provided a formal response. There has however been dialogue with the Pilbara–Kimberley District Emergency Management Advisor, Helen Kent on their behalf. Comment Under the Emergency Management Act 2005 Local Government has the legislative responsibility for Recovery following a disaster. The purpose of the draft MOU is to formalise the “handshake agreement” of mutual aid and support that currently exists during emergencies and post incident recovery operations.


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The MOU sets out the basic framework for cooperation between the local governments, to promote cooperation in a disaster event which affects one or more of the partnering local governments. The guiding principle of the MOU is that any support given to an affected local government during or after an emergency event shall be voluntary and at a level that will not unduly compromise the operability of those organisations providing the support. The Shire has driven discussion on this issue with the other local governments for some time in the hope of formalising any previous informal agreements between neighbouring LG areas regarding disaster recovery assistance. The Shire is seeking to coordinate a review, make any necessary changes and formalise the MOU prior to the end of the current tropical cyclone and bushfire season so that there is clear understanding and direction moving forward should any of the affected local governments be impacted by a major emergency event requiring a significant recovery effort. Consultation Chief Executive Officer Executive Manager Development and Regulatory Services Emergency Management Coordinator Shire of Ashburton Inland LEMC Onslow LEMC Pannawonica LEMC Town of Port Hedland Coordinator Emergency Services Shire of East Pilbara Community Safety Manager City of Karratha Manager Regulatory Services Pilbara–Kimberley District Emergency Management Advisor Statutory Environment Emergency Management Act 2005 Sec 36(b) State Emergency Management Policy Part 6 State Emergency Management Plan Part 6 State Emergency Management Procedure Part 5 Financial Implications Costs associated with staff and resources assisting affected Local Governments if assistance is requested. Strategic Implications Shire of Ashburton 10 Year Community Strategic Plan 2012-2022 Goal 4 - Distinctive and Well Serviced Places Objective 2 - Accessible and Safe Towns Risk Management This item has been evaluated against the Shire of Ashburton’s Risk Management Policy CORP5 Risk Matrix. The perceived level of risk is considered to be “Medium to High” and can be managed by routine procedures and monitoring by Executive Managers. The risk is driven by cost and likelihood, with the costs of any assistance likely to be reasonably high (equipment and staff) but the likelihood considered to be infrequent but likely. Policy Implications There are no policy implications associated with this item at this point in time.


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Voting Requirement Simple Majority Required Recommendation That Council support the MOU between Local Governments in the Pilbara Emergency Management District – Recovery Activities “in principle” (acknowledging that minor wording modifications and clarifications will likely be suggested by the other local governments) and that the CEO be authorised to endorse the MOU so long as the final version is reasonably consistent with ATTACHMENT 14.1A.

Author: Morgwn Jones Signature: Manager: Lee Reddell Signature:


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15. INFRASTRUCTURE SERVICES REPORTS

15.1 AWARD OF RFT 26/17 - DESIGN & CONSTRUCTION OF AIRCRAFT HANGAR AT ONSLOW AIRPORT

FILE REFERENCE: TT06 AUTHOR’S NAME AND POSITION:

Troy Davis Executive Manager Infrastructure Services


Not Applicable

DATE REPORT WRITTEN: 30 December 2016 DISCLOSURE OF FINANCIAL INTEREST:

The author has no financial interest in the matter


Agenda Item 18.1 (Minute No. 78) – Ordinary Meeting of Council 22 November 2016

Summary On 22 November 2016, Council resolved to, 1. Approve the budget variation amount of $750,000 to be transferred from the Airport Reserve to the Airport capital operating budget; 2. Authorise the Chief Executive Officer to put the ‘Supply and Installation of a Hangar’ project out to tender; and 3. Authorise the Chief Executive Officer and Shire President to execute the relevant contract documentation and affix the Shire’s common seal to the Contract. Subsequently, tenders were invited for RFT 27/16 Design and Construction of an Aircraft Hangar at Onslow Airport with eight compliant submissions received. The price range of all the tender submissions was in excess of the approved budget for these works and therefore for the purposes of awarding a contract under RFT 27/16, Council’s approval will be required for an increased budget allocation. This report summarises the tender responses and makes recommendation to Council to amend the budget for this project and to delegate authority to the Chief Executive Officer to award the tender to H & M Tracey. Additionally, there is a need for a ‘heliport briefing room’ and there is the opportunity to utilise the disused transportable office located at the Onslow Business House for this purpose. The relocation of that facility to the Onslow Airport is therefore also proposed. In light of the extended budget requirement and commentary in the Onslow Airport Master Plan, it would be prudent to consider if a Business Case is warranted as part of the tender consideration process.


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Background In order to attract rotary wing (helicopter) and other business opportunities to the Airport, a need has been identified for the Onslow Airport to provide hangar leasing opportunities. Onslow Airport currently does not have any hangars that exist with direct access to the airside facilities (i.e. aprons, taxiways and runway). It is proposed to build a hangar that can be leased out as required. The location of Onslow makes it suitable for the establishment of a helicopter operations base to support offshore oil and gas activities in the North West Shelf. These activities are currently supported from Karratha and Exmouth, however Onslow could be an attractive location due to its greater coverage within typical helicopter mission capability. Based on similar facilities at other locations, and information previously provided to the Shire by major offshore helicopter operators, access to hangar space is an essential requirement for their operations. Comment RFT 27/16 was advertised on 30 November 2016. Submissions closed on 20 December 2016. The Shire received over 35 requests for the tender documents and received nine submissions with one being non-compliant. The price range of all these submissions was in excess of the budgeted allocation for this project. However given the fact that all tenders have been publicly invited with strong responses received from a wide range of contractors with relevant experience in this field, it is considered that the tendered prices that have been submitted are market related and competitive. Therefore, due to the urgency of the works to meet anticipated market interest in local helicopter hangar space (based on discussions with providers regarding potential contracts), it is recommended that Council resolve to increase the budget allocation for this project to allow for a contract to be awarded. A tender evaluation panel was formed to evaluate all tender submissions and the tenders were assessed in accordance with the Shire’s “Tender Assessment Criteria” Policy FIN14 to award. The recommendation is to award the tender to H & M Tracy. In summary, the compliant tenders, prices and scoring are included below.

Tenderer Tendered Amount

ex GST

Tendered Amount

inc GST

Score

H & M Tracey 1,415,610.00 1,557,171.00 71.5 TDC projects 1,260,000.00 1,386,000.00 70.1 Keman Contracting 1,534,642.59 1,688,106.85 68.4 Q Design & Construct 1,190,290.00 1,309,319.00 68.0 Pindan 1,594,284.00 1,753,712.00 58.7 Cockram Construction 2,248,698.00 2,473,567.80 54.2 Argonaut 2,116,482.55 2,328,130.83 51.1 Formstruct 2,375,017.24 2,612,518.96 49.5

A copy of the more comprehensive evaluation is attached.

CONFIDENTIAL ATTACHMENT 15.1 Additionally, there is currently the opportunity to utilise a disused transportable office in Onslow as a ‘heliport briefing room’. The office building is the former supplementary office located at the Onslow Business House. A briefing room/area is required as before being transferred to


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the helicopter, all passengers (approx. 12 each trip) are required to undergo a safety briefing, D&A testing, weighing, security check, fitted with life jackets etc. before they can board the helicopter. This all needs to be done privately, hence the need for a briefing room/area. It was initially intended to use existing airport facilities for this function, however the transportable office would be more suited as it has toilet facilities and we would not be losing office space in the terminal. Additionally when not in use it could also double up as a rest area for flight crew when the aircraft is on the ground for several hours. If we can provide them with toilet facilities airside then they go directly from the RPT flight to the briefing room without having to use the terminal and be subject to screening, escorts etc. This will keep operating expenses to a minimum for all involved. Originally it was planned to relocate this office to Paraburdoo Depot however the transport costs were far in excess of the budget ($10,000) and outweighed the benefits of a ‘free’ unit. An alternate option to upgrade the Paraburdoo Depot office has been developed with the proposed relocation of another smaller, obsolete office facility that will still meet the needs of the Paraburdoo Depot. The estimate to undertake and complete the office relocation to the Onslow Airport is $75,000, however this is inclusive of vandalism repairs that will be reimbursed under insurance. It is proposed to include these costs in the overall ‘helicopter precinct project’ budget. Overall, this is a substantial increase to the preliminary budget, although it should be noted that the adopted Onslow Airport Master Plan accommodates the potential of new infrastructure to provide for helicopter operations. Generally the Onslow Airport Master Plan presents a strategy for the ongoing operations, maintenance and development of the Onslow Airport for the next 20 years, taking into account demand forecasting, development opportunities and the Shire’s specific development objectives. The Master Plan includes a recommendation that the Shire should continue plans to upgrade the airport facility at Onslow reflecting increased energy sector activity focused around Onslow. To understand the possible opportunities for future aviation-related activities, feedback from stakeholder consultation was reviewed, and is continually being sought to identify potential development opportunities at Onslow Airport; an off shore helicopter operations base has been identified as one the key aviation related business opportunities for the Onslow airport with one of the likely requirements being the implementation of a hangar with a passenger processing facility possibly integrated with the hangar. However, the Master Plan states that key development proposals for both short term and long term development should be subject to preliminary design work and an investment feasibility study and business case, based on a formal engineering assessment of costs and an appraisal of commercial benefits, prior to undertaking any investment decision. Given the lack of firm commitments, the extended budget requirement and commentary in the Onslow Airport Master Plan, Council might wish to seek a Business Case to be prepared if it has any reservations about the overall viability of the proposal; noting the unquantifiable but supplementary positive aspect that the Onslow community is likely to benefit from a more secure, publically accessible flight service to/from Perth, and that there will be flow on broad based economic development and “economic multiplier benefits” also evident in the local community.


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Consultation Chief Executive Officer Onslow Airport Manager Statutory Environment Local Government Act 1995 s.3.57 relates to Tenders for provision of goods and services. Local Government Act s.6.8(1)(b) relates to expenditure from municipal fund not included in annual budget (Absolute Majority Required). Local Government Act s.3.59 relates to Major Land Transactions of $2million+. This project is estimated to be under that threshold at this point in time but is close enough to warrant consideration of the requirement for a Business Case. Financial Implications The Shire’s total budget (authorised at the 22 November 2016 Council Meeting) for the design and construction of the new hangar is $750,000. The initial estimates were based on preliminary enquiries to hangar manufacturers, however the specifications, once further developed, realised a more complex project than initially thought. If approved, the contract value will be $1,415,610 (excluding GST). This amount does not include any allowances for potential contingencies/variations, nor does it provide for minor apron connection works. Generally the project budget should allow for an additional amount up to 10% of the contract value for these purposes. A better estimate of the maximum required budget would therefore be $1,415,610 + 10% or $1,557,171 (approximately $1,600,000). Given the existing budget of $750,000 this would mean an additional allocation of $850,000. An additional $75,000 is also requested to enable the relocation and fit out of the transportable office from the Onslow Business House. The additional funds can be accessed from the Airport Reserve (as per the November 2016 Council resolution) which currently exceeds $8million and can support this cost. It should be noted that projected income from Airport operations this financial year will be in excess of $2 million ahead of what was originally budgeted for in the 2016/2017 budget, therefore an alternative is to simply accommodate the construction cost with the higher than anticipated income stream for 2016/17 (and leave the reserve unimpacted). That funding source modification can occur at Budget Review if thought beneficial. Additionally, income generated from leasing the facility and charges associated with aircraft landing fees will be realised but have not been factored into the long term financial plan. A further consideration with respect to expenditure from the Airport Reserve is that, per previous advice to Councillors in the latter part of last year, investigations into scouring on the runway and taxiways have revealed a remediation estimate of approximately $2.5million based on a preliminary report from the Consultant. This work will need to be completed before the next ‘wet season’ and has not been included in any of the Onslow Airport financial plans. Strategic Implications Shire of Ashburton 10 Year Community Strategic Plan 2012-2022 Goal 04 – ‘Distinctive and Well planned Serviced Places’ Objective 02 – ‘Accessible and safe town’ Onslow Airport Master Plan and Asset Management Plan


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Risk Management Adoption of this item has been evaluated against the Shire of Ashburton’s Risk Management Policy CORP5 Risk Matrix. The perceived level of risk is considered to be ‘High’ but can be managed by specific monitoring by the Onslow Airport Manager. Risks relate to overall cost, the potential of any further costs escalations, and the securing of lease commitments. A Business Case would likely lower that risk to “Medium or Low” by clarifying demand and defining other social and economic flow on benefits, and so incorporating the conditional words ‘on the proviso a Business Case indicates an acceptable nett position for the Shire’ could be incorporated within the below recommendation if that is thought warranted by Council. Policy Implications AMP01 – Asset Management Policy FIN12 – Purchasing and Tender Policy FIN04 – Buy Local – Regional Price Preference Policy Voting Requirement Absolute Majority Required (Local Government Act S6.8(1)(b)). Recommendation That Council:

1. Approve up to an additional $925,000 to be transferred from the Airport reserve; to provide an amended total budget of $1,675,000 for the design and construction of an aircraft hangar plus the relocation and fitout of the obsolete transportable office from the Onslow Business House for use as a helicopter briefing room at Onslow Airport;

2. Award RFT 27/16 D & C Aircraft Hangar to H & M Tracey for the contract value of $1,415,610 exc GST;

3. Review as part of the Shire 2016/17 Budget Review (scheduled for March 2017) the

most appropriate source of funds for the project.

4. Authorise the Chief Executive Officer to execute the relevant contract documentation; and

5. Authorise the Chief Executive Officer to approve any construction/contract variations

within the level of the budget allocation.

Author: Troy Davis Signature: Manager: Neil Hartley Signature:


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16. STRATEGIC AND ECONOMIC DEVELOPMENT REPORTS

16.1 PARABURDOO COMMUNITY HUB - ARCHITECTURAL SERVICES TENDER

FILE REFERENCE: RC42129 AUTHOR’S NAME AND POSITION:

Neil Hartley Chief Executive Officer


Not Applicable


The author has not financial interest in the matter.


Agenda Item 18.2 – (Minute No. 12109) – Ordinary Meeting of Council 21 June 2016 Agenda Item 16.1 – (Minute No. 12083) – Ordinary Meeting of Council 26 April 2016 Agenda Item 7.1 – Special Meeting of Council 12 November 2014 Agenda Item 13.1 (Minute No. 11753) – Ordinary Meeting of Council 19 February 2014

Summary With grant and other contributory funding secured from Royalties for Regions (June 2016) and Rio Tinto (September 2016) documentation for the provision of Architectural Services for the Paraburdoo Community Hub was prepared and advertised. The scope of this work includes full design, documentation (for issue of construction tender) and support throughout the construction process. Tenders were called and submissions assessed, with a proponent suggested after compilation of the scoring matrix. Appointment of an Architect is an important step in enabling the Paraburdoo CHUB project to progress to full design and specification, and its eventual construction. Background A Memorandum of Understanding (MOU) between RTIO and Shire of Ashburton (SoA) was signed in July 2012, creating a long term partnership to work together to revitalise existing and develop new civic, sporting and community facilities and programs in the towns that Rio Tinto has a significant presence. The Paraburdoo CHUB is a project that is be one of the focuses of that partnership. The consultation and development of the Paraburdoo CHUB has therefore been a priority project for both the SoA and RTIO. Significant work has been undertaken to scope and design


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the facility, including consultation with community and sporting groups, review of existing facilities and stakeholder engagement. The concept design provides for a new indoor multi-purpose hall/emergency shelter, swimming pool and oval change rooms, first aid, public toilets, spectator viewing area, commercial kitchen, function area and swimming pool administration. The concept also provides for the refurbishment and repurposing of the existing sports hall as a community centre. With the Shire’s 2016/17 budget allocation and then other grant and other contributory funding secured from Royalties for Regions (June 2016 - $5m) and Rio Tinto (September 2016 - $6m) Request For Tender documentation for the provision of Architectural Services (RFT23/16 Architectural Services for Paraburdoo Community Hub) was prepared and advertised. The scope of this work includes full design, documentation (for issue of construction tender) and support throughout the construction process. Tenders were advertised on 5 November 2016 closing on 29 November 2016. Tender proposals were assessed by a tender evaluation panel against the following predetermined criteria: Key Personnel and Resources: 20% Relevant Past Company Performance 25% Methodology, Innovation, Program, Systems and Risk 15% Value for Money 40% Thirteen submissions were received and attached is the Tender assessment spreadsheet.

CONFIDENTIAL ATTACHMENT 16.1 Comment Below is a summary of the tenders received and the scores achieved as a result of the evaluation–

Tenderer/s Total Score $ VALUE (inc GST) Hodge Collard Preston Architects 69.3 $349,140.00 Peter Hunt Architect 68.9 $473,443.30 Donovan Payne Architects 67.7 $418,770.00 Paterson Group Architects 67.4 $389,917.00 Gresley Abas Architects 64.0 $533,335.00 Holton Connor Architects & Planners 63.7 $343,783.00 Bollig Design Group 62.4 $504,977.00 CHRISTOU Design Group Pty Ltd 61.7 $556,253.50 MODE Design Corp Pty Ltd 60.4 $393,632.66 Slavin Architects Pty Ltd 58.3 $669,900.00 Lycopodium Infrastructure Pty Ltd 57.1 $494,263.00 Site Architecture Studio 56.8 $497,508.00 Cameron Chisholm Nicol (WA) 55.8 $526,350.00

Hodge Collard Preston is the preferred Tenderer on 69.3 points and it is recommended that the contract be awarded in accordance with the submission, totalling $349,140 (including GST). This price includes an additional $29,400 of services not included in the original RFT scope but identified by Hodge Collard Preston as being necessary for the best overall outcome (additional fire engineering, contamination testing and NBN/Telstra design services). The additional works still placed Hodge Collard Preston as the most competitively priced tender, and all works are within the allocated budget.


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Consultation Executive Manager – Strategic & Economic Development Strategic Partnership Manager Manager Operations Facilities Manager Statutory Environment Section 3.57 of the Local Government Act 1995 - Tenders for providing goods and services. Financial Implications The proposed budget for the Paraburdoo Community Hub is reflected in the table below: Item Income (ex GST) Expense (ex GST) Rio Tinto - Capex $6,000,000.00 Royalties for Regions $5,000,000.00 Shire of Ashburton $3,396,065.00 Total $14,396,065.00 Construction $7,758,230.00Pilbara Allowance $4,405,026.00Other costs, contingencies, fit out, professional fees, project management etc.

$2,232,809.00

Total $14,396,065.00 The budget for Architectural Services (i.e. part of the professional fees component) was estimated at $500,000. Strategic Implications Shire of Ashburton 10 Year Community Strategic Plan 2012-2022 Goal 01 – Vibrant and Active Communities Objective 01 – Connected, Caring and Engaged Communities Objective 02 – Active People, Clubs and Associations Goal 02 – Enduring Partnerships Objective 02 – Enduring Partnerships with Industry and Government Goal 04 – Distinctive and Well Serviced Places Objective 01 – Quality Public Infrastructure Objective 03 – Well Planned Towns Risk Management Adoption of this item has been evaluated against the Shire of Ashburton’s Risk Management Policy CORP5 Risk Matrix. The perceived level of risk is considered to be “High”. The high level of risk is being driven by the high financial value of this project. As a high risk matter, the Executive Manager Strategic & Economic Development is monitoring progress. Policy Implications AMP1 – Asset Management Policy FIN 12 – Purchasing and Tender Policy FIN 04 – Buy Local – Regional Price Preference Policy Voting Requirement Simple Majority Required


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Recommendation That Council 1. Approve Hodge Collard Preston as the preferred Tenderer (RFT 23/16 - Architectural

Services for Paraburdoo Community Hub) and that the contract be awarded in accordance with its submission and clarifications, totalling $349,140 (including GST); and

2. Authorises the Chief Executive Officer to negotiate, execute and manage the Contract,

including any variations, providing these variations do not exceed the allocated budget provision $500,000 or reduce the overall scope.

Author: Neil Hartley Signature: Manager: Neil Hartley Signature:


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17. COUNCILLOR AGENDA ITEMS / NOTICES OF MOTIONS

18. NEW BUSINESS OF AN URGENT NATURE INTRODUCED BY DECISION OF MEETING

19. CONFIDENTIAL MATTERS

20. NEXT MEETING The next Ordinary Meeting of Council will be held on 14 February 2017, at the Ashburton Hall, Ashburton Avenue, Paraburdoo, commencing at 1.00 pm.

21. CLOSURE OF MEETING

agenda – public 17 january 2017 - shire of ashburton · 2017-01-11 · november 2016 and december...

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