agenda: date · 2017-05-04 · at the conclusion of the allotted four (4) minutes, ... d2 closing...

Agenda: Corporate & Works Committee

Date: Monday 8 May 2017

Time: 6.00pm

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Outline of Meeting Protocol & Procedure:

The Chairperson will call the Meeting to order and ask the Committee/Staff to present apologies or late

correspondence.

The Chairperson will commence the Order of Business as shown in the Index to the Agenda.

At the beginning of each item the Chairperson will ask whether a member(s) of the public wish to address the

Committee.

If person(s) wish to address the Committee, they are allowed four (4) minutes in which to do so. Please direct

comments to the issues at hand.

If there are persons representing both sides of a matter (eg applicant/objector), the person(s) against the

recommendation speak first.

At the conclusion of the allotted four (4) minutes, the speaker resumes his/her seat and takes no further part in

the debate unless specifically called to do so by the Chairperson.

If there is more than one (1) person wishing to address the Committee from the same side of the debate, the

Chairperson will request that where possible a spokesperson be nominated to represent the parties.

The Chairperson has the discretion whether to continue to accept speakers from the floor.

After considering any submissions the Committee will debate the matter (if necessary), and arrive at a

recommendation (R items which proceed to Full Council) or a resolution (D items for which the Committee has

delegated authority).

Recommendation only to the Full Council:

Such matters as are specified in Section 377 of the Local Government Act and within the ambit of the

Committee considerations.

The voting of money for expenditure on works, services and operations.

Rates, Fees and Charges.

Donations

Matters which involve broad strategic or policy initiatives within responsibilities of the Committee.

Matters not within the specified functions of the Committee.

Asset Rationalisation.

Corporate Operations:-

- Statutory Reporting;

- Adoption of Council's Community Strategic Plan, Delivery Program and Operational Plan;

- Delegations; and

- Policies.

Tenders as per Regulation requirements.

Leases required to be determined by Full Council by specific legislative requirements

Matters reserved by individual Councillors in accordance with any Council policy on "safeguards" and

substantive changes.

Delegated Authority:

General financial and corporate management of the Council, except those specifically excluded by statute, by

Council direction or delegated specifically to another Committee.

Note: This not to limit the discretions of nominated staff members exercising Delegated Authorities granted by

the Council.

Statutory reviews of Council's Delivery Program and Operational Plan;

Finance Regulations, including:-

- Authorisation of expenditures within budgetary provisions where not delegated;

- Quarterly review of Budget Review Statements;

- Quarterly and other reports on Works and Services provision; and

- Writing off of rates, fees and charges because of non-rateability, bad debts, and impracticality of

collection.

Auditing.

Property Management.

Asset Management.

Works and Services - Monitoring and Implementations.

Legal Matters and Legal Register.

Parks and Reserves Management.

Infrastructure Management, Design and Investigation.

To require such investigations, reports or actions as considered necessary in respect of matters contained within

the Business Agenda (and as may be limited by specific Council resolution).

Confirmation of the Minutes of its Meetings.

Any other matter falling within the responsibility of the Corporate & Works Committee and not restricted by the

Local Government Act or required to be a Recommendation to Full Council as listed above.

Committee Membership: 6 Councillors

Quorum: The quorum for a Committee meeting is 4 Councillors.

Woollahra Municipal Council

Corporate & Works Committee Agenda 8 May 2017


Notice of Meeting

3 May 2017

To: Her Worship the Mayor, Councillor Toni Zeltzer ex-officio

Councillors Peter Cavanagh (Chair)

Greg Levenston

Andrew Petrie

Deborah Thomas

Susan Wynne (Deputy)

Dear Councillors

Corporate & Works Committee – 8 May 2017

In accordance with the provisions of the Local Government Act 1993, I request your attendance at

Council’s Corporate & Works Committee meeting to be held in the Council Chambers, 536

New South Head Road, Double Bay, on Monday 8 May 2017 at 6.00pm.

Gary James

General Manager



Meeting Agenda Item Subject Page

1. Leave of Absence and Apologies

2. Late Correspondence

3. Declarations of Interest

Items to be Decided by this Committee using its Delegated Authority

D1 Confirmation of Minutes of Meeting held on 24 April 2017 - 17/57050 .................... 7

D2 Closing and Sale of Road Reserve - 18 Hopetoun Avenue, Vaucluse (SC3742)

- 17/55570 .................................................................................................................... 9

D3 Closing and Sale of Road Reserve - 5 Queens Avenue, Vaucluse (SC3736) -

17/57451 ..................................................................................................................... 15

D4 Closing and Sale of Road Reserve - 7 Queens Avenue, Vaucluse (SC3816) -

17/57470 ..................................................................................................................... 21

Items to be Submitted to the Council for Decision with Recommendations from this

Committee

R1 Review of Council's Investment Policy (SC305) - 17/51588 .................................... 27



Item No. D1

Item No: D1 Delegated to Committee

Subject: CONFIRMATION OF MINUTES OF MEETING HELD ON 24

APRIL 2017

Author: Sue O'Connor, Secretarial Support - Governance

File No: 17/57050

Reason for Report: The Minutes of the Corporate & Works Committee of 24 April 2017 were

previously circulated. In accordance with the guidelines for Committees’

operations it is now necessary that those Minutes be formally taken as

read and confirmed.

Recommendation:

That the Minutes of the Corporate & Works Committee Meeting of 24 April 2017 be taken as read

and confirmed.



Item No. D2


Subject: CLOSING AND SALE OF ROAD RESERVE - 18 HOPETOUN

AVENUE, VAUCLUSE (SC3742)

Author: Anthony Sheedy, Senior Property Officer

Approvers: Zubin Marolia, Manager - Property & Projects

Tom O'Hanlon, Director - Technical Services

File No: 17/55570

Reason for Report: To consider the closing and sale of road reserve adjoining 18 Hopetoun

Avenue, Vaucluse

Recommendation:

A. That the proposal to sell a portion of road reserve adjoining 18 Hopetoun Avenue, Vaucluse

be advertised and notified to adjoining properties.

B. That a further report be submitted to the Committee.

1. Background:

The Corporate & Works Committee resolved at their Meeting of 24 April 2017 that:

1. That the site be inspected prior to the Corporate and Works Committee meeting of

8 May 2017.

2. That a further report be submitted to the Committee.

A site inspection has been arranged for Monday 8 May 2017, prior to the Committee’s further

consideration of the matter at its Meeting that evening.

The owner of 18 Hopetoun Avenue, Vaucluse has previously entered into a positive covenant with

Council for encroachments comprising a timber bridge, garden landscaping, and stairs which

traverse the soil bank leading down to their residence.

The have now obtained Development Application DA 390/2012 consent for construction of a steel

carport (complete with motor vehicle turntable) and associated stairs upon the Hopetoun Avenue

road reserve. The consent condition requires them to formalise the encroaching structure, which is

estimated to be 70 sqm in size subject to final survey. They request to purchase the road reserve

portion, or if that is not supported then obtain a grant of easement for the carport structure.

Council’s Team Leader of Infrastructure Asset Management has inspected the site and supports sale

of the of the road reserve portion to construct the carport structure.

2. Proposal:

The owner No 18 believes that the use of a steel carport (fitted with a motor vehicle turntable) will

considerably improve the safety of their egress and access to Hopetoun Avenue, Vaucluse.

In accord with DA 390/2012 consent; the owner requests that Council sells them a portion of

Hopetoun Avenue to enable construction of the carport, or grant an easement to formalise the

encroachment.



Item No. D2

3. Conclusion:

The owner of 18 Hopetoun Avenue, Vaucluse has made a request to Council to purchase an

estimated 70 sqm land parcel, subject to final survey.

It is recommended that the encroachments proposed in DA 390/2012 in the Hopetoun Avenue road

reserve are formalised by the owner purchasing the subject road reserve portion at the market price

as determined by valuation. If the sale is not supported, then to formalise by grant of an easement

from Council which permits the encroaching structure to remain for the life of the building.

In accordance with Council’s policy and procedure for the sale of Council land, the next step is to

arrange for advertisement of the subject road reserve portion. Upon completion of the

advertisement process, a further report will be submitted to the Corporate and Works meeting.

Annexures

1. Road reserve for sale or easement ⇩

2. Plan and section of proposed carport / stairs ⇩

3. Site photo and indicative view of proposed carport ⇩



Annexure 1 Road reserve for sale or easement



Annexure 2 Plan and section of proposed carport / stairs



Annexure 3 Site photo and indicative view of proposed carport



Item No. D3


Subject: CLOSING AND SALE OF ROAD RESERVE - 5 QUEENS AVENUE,

VAUCLUSE (SC3736)




File No: 17/57451

Reason for Report: To consider the closing and sale of road reserve adjoining 5 Queens

Avenue, Vaucluse

Recommendation:

A. That the site be inspected prior to the Corporate and Works Committee meeting of

22 May 2017.


1. Background:

The owner of 5 Queens Avenue, Vaucluse have made a request to purchase a portion of the Queens

Avenue road reserve adjoining their property.

The subject road reserve area has steeply sloping topography and is rectangular in shape. It is an

estimated 80 sqm in size subject to final survey (see Annexures 1&2). An owner of No 5 has

placed encroachments on the subject land comprising a concrete pathway, stairs, steel handrail,

stone retaining walls and landscape vegetation, which traverse the road reserve soil bank leading up

to their residence.

Council’s Team Leader of Infrastructure Asset Management has inspected the subject road reserve;

and in their email dated 8 March 2017 stated that they had no objection to this proposal for closing

and sale of the subject road reserve portion.

2. Proposal:

There are no plans for widening the road, and Council has recently resolved to close and sell the

road reserve portion adjoining 3 Queens Avenue (Annexure 1). The sale was subject to a height

limiting positive covenant being applied to a 1m setback area from the road kerb, to maintain an

appropriate sightline for motor vehicle movements within this part of Queens Avenue. The owners

Architect and representative has agreed in principle to this arrangement.

It is proposed that the subject road reserve frontage be tapered in a tangential way as shown in the

yellow highlight area of Annexure 1, to continue the sightline benefits for safer motor vehicle

movement. A height limiting positive covenant would be registered over this small section of land

once sold to the owner No 5.

Because the land is surplus to Council requirements it is considered appropriate that the owner

purchase the subject road reserve at the market price as determined by valuation.

The owner of 5 Queens Avenue, Vaucluse has agreed to pay all Council’s costs in connection with

the purchase of the subject road reserve portion.



Item No. D3

3. Conclusion:

The owner of 5 Queens Ave, Vaucluse has made a request to Council to purchase an estimated

80 sqm land parcel, subject to final survey.

It is recommended that the encroachments in the subject road reserve are formalised by the owner

purchasing the subject road reserve at the market price as determined by valuation.

In accordance with Council’s ‘Policy and Procedure for the Sale of Council Land’, the next step is

to arrange for Councillor’s inspection of the subject road reserve portion prior to the next Corporate

and Works Committee meeting of 22 May 2017, and a further report be submitted.

Annexures

1. Road reserve for closing and sale with restrictive covenant ⇩

2. Aerial view showing road reserve for closing and sale ⇩

3. Site photos of subject road reserve ⇩



Annexure 1 Road reserve for closing and sale with restrictive covenant



Annexure 2 Aerial view showing road reserve for closing and sale



Annexure 3 Site photos of subject road reserve



Item No. D4


Subject: CLOSING AND SALE OF ROAD RESERVE - 7 QUEENS AVENUE,

VAUCLUSE (SC3816)




File No: 17/57470

Reason for Report: To consider the closing and sale of road reserve adjoining

7 Queens Avenue, Vaucluse

Recommendation:

A. That the site be inspected prior to the Corporate and Works Committee meeting of

22 May 2017.


1. Background:

The owner of 7 Queens Avenue, Vaucluse has made a request to purchase a portion of the Queens

Avenue road reserve adjoining their property.

The subject road reserve area has steeply sloping topography and is rectangular in shape. It is an

estimated 100 sqm in size subject to final survey (see Annexures 1&2). An owner of No 7 has

previously placed encroachments on the subject land comprising concrete retaining walls, stairs,

steel fencing and landscape vegetation, which provide support for the soil bank leading up to their

residence.

Council’s Team Leader of Infrastructure Asset Management has inspected the subject road reserve;

and in their email dated 8 March 2017 stated that they had no objection to this proposal for closing

and sale of the road reserve portion.

2. Proposal:

There are no plans for widening the road, and Council has recently resolved to close and sell the

road reserve portion adjoining 3 Queens Avenue (Annexure 1).

Because the land is surplus to Council requirements it is considered appropriate that the owner

purchase the subject road reserve at the market price as determined by valuation.

The owner of 7 Queens Avenue, Vaucluse has agreed to pay all Council’s costs in connection with

the purchase of the subject road reserve portion.



Item No. D4

3. Conclusion:

The owner of 7 Queens Avenue, Vaucluse has made a request to Council to purchase an estimated

100 sqm land parcel, subject to final survey.

It is recommended that the encroachments in the subject road reserve are formalised by the owner

purchasing the subject road reserve at the market price as determined by valuation.

In accordance with Council’s ‘Policy and Procedure for the Sale of Council Land’, the next step is

to arrange for Councillor’s inspection of the subject road reserve portion prior to the next Corporate

and Works meeting of 22 May 2017, and a further report be submitted.

Annexures

1. Road reserve portion for closing and sale ⇩

2. Aerial view of road reserve for closing and sale ⇩

3. Site photos of subject road reserve ⇩



Annexure 1 Road reserve portion for closing and sale



Annexure 2 Aerial view of road reserve for closing and sale



Annexure 3 Site photos of subject road reserve



Item No. R1

Item No: R1 Recommendation to Council

Subject: REVIEW OF COUNCIL'S INVESTMENT POLICY (SC305)

Author: Don Johnston, Chief Financial Officer

Approver: Stephen Dunshea, Director Corporate Services

File No: 17/51588

Reason for Report: To provide the Committee with a review of the performance of Council’s

current Investment Policy, recommend improvements to the current Policy

and the adoption of a revised Investment Policy.

Recommendation:

A. THAT Council’s current Investment Policy be amended to:

i. correct references to Division of Local Government and make minor grammatical

changes;

ii. set separate maximum holdings for BBB and Unrated ADIs of 15% and 10%

respectively; and

iii. limit the Chief Financial Officer’s temporary extension discretion

B. THAT the revised Investment Policy with changes from A above marked-up, presented as

Annexure 1 to this report, be adopted as Council’s Investment Policy.

1. Background:

Council last reviewed its Investment Policy in September 2015 when it resolved:

A. THAT the report on opportunities to improve investment returns be received and noted.

B. THAT Council’s Investment Policy be amended to:

i. move away from named institutions to a ratings based methodology;

ii. increase counterparty limits to the following levels:

a. ‘AAA’ category: 40%

b. ‘AA’ Category (or major Bank) 30%

c. ‘A’ Category 15%

d. ‘BBB’ Category 10%

e. Unrated ADIs 5%

iii. allow up to 25% of the portfolio to be invested with BBB or unrated ADIs with

individual counterparty limits of 10% and 5% of the portfolio respectively; and

iv. give effect to operational improvements

C. THAT the revised Investment Policy presented as Annexure 1 inclusive of the

amendments in Recommendation B above be adopted.

The changes to the Policy were made in consultation with Council’s investment advisors, CPG

Research & Advisory.



Item No. R1

The Policy was due for review in September 2016 but has been held over as a consequence of the

State Government’s Council merger proposal. With the start of a new financial year approaching,

and continuing uncertainty around any potential merger, it is prudent to present a review of the

Investment Policy to Council.

2. Investment performance under the September 2015 Policy:

While the current Policy was adopted in September 2015, the first investments made under it were

placed in January 2016. As such, this review of investment performance relates to just 15 months

to March 2017. Further, as Council only holds three floating rate notes, two of which are with

major banks and could have been placed under the previous Policy, the review has been limited to

term deposits.

Under the previous Policy, with a tiered structure and name institutions, Council’s portfolio was

dominated by the four major banks and their subsidiaries. To provide an indication of the improved

returns achieved under the current Policy, a comparison of actual interest returns and the best major

bank rate available on the same day has been made. For example, a term deposit placed with the

Bank of Queensland in April 2016 at 3.15% compared favourably to the best major bank rate on the

day of 2.9%, a difference of 25 basis points.

The differences in rates under the current and previous Policies range from just 5 basis points to as

high as 38 basis points. The average across the 34 term deposits placed since January 2015 is 14

basis points. In dollar terms the higher interest rates achieved under the current Policy have

generated an additional $78,689 in interest earnings ($2,106,997 compared to $2,028,308).

3. Discussion:

In consultation with Council’s investment advisor, CPG Research & Advisory, a number of

amendments to the current Investment Policy are being recommended. The proposed changes

reflect the practical application of the Policy since it was adopted and will improve the potential risk

profile of Council’s portfolio.

Apart from minor grammatical changes, and correcting a reference to the Division of Local

Government, two improvements to the Policy are recommended.

Update credit quality limits by separating BBB and Unrated ADIs (approved deposit-

taking institutions) maximum holding limits.

Currently, BBB and Unrated ADIs are grouped together and allow up to 25% of

Council’s portfolio to be invested with them. Theoretically, this allows up to 25% of

our portfolio to be invested in Unrated ADIs which is considered too high in terms of an

optimum risk profile.

To improve this it is recommended that BBB and Unrated ADIs be separated and their

percentage limits be 15% and 10% respectively. It should be noted that these

recommended limits are complemented and strengthened by the counterparty limits

(how much we can invest with one institution) of 10% for BBB and 5% for Unrated

ADIs.



Item No. R1

This recommendation improves the potential risk profile of Council’s portfolio while

still providing access to BBB and Unrated ADIs which provides both diversification

and improved return opportunities while mitigating overall risk.

Limit the Chief Financial Officer’s discretion to temporarily extend credit quality and

counterparty limits.

This discretion is provided to facilitate temporary extension of the credit quality and

counterparty limits to allow a particularly good interest rate to be captured that the

limits would otherwise prevent.

For example, an opportunity may be available with a BBB institution that is 35 basis

points above major bank rates which is significantly more than other BBB rate

available. However, 15% of the portfolio may already be invested with BBB

institutions, so no further investments can be placed. Also, there may be a BBB

maturity in two weeks’ time.

This discretion was provided in the Policy to allow that standout rate to be taken up in

these circumstances. However, it was open-ended. The recommended improvement to

the Policy is to limit the term of the temporary extension to 30 days.

These recommendations reflect the practical application of the current Policy since its adoption and

will have little or no effect on current investment returns.

In relation to the application of the Policy, it is also important to note that individual investments

are guided by Council’s investments advisor. Council receives a rates sheet from CPG Research &

Advisory every morning that provides a range of suitable investment opportunities. Council also

receives rates sheets from a number of other sources. If one of them identifies a better rate from an

institution not on CPG’s rate sheet, CPG is asked for a recommendation before an investment is

placed with that institution. This advice is particularly important in the BBB and Unrated ADIs

space.

4. Conclusion:

Council’s current Investment Policy has been effective in terms of generating improved returns

while maintaining an acceptable risk profile and good diversification. The current Policy has been

reviewed in consultation with Council’s investments advisor. Apart from minor grammatical

changes, and correction of a reference to the Division of Local Government, two improvements to

the Policy have been recommended.

The revised Policy, presented as ANNEXURE 1 including the recommended changes marked-up

for ease of reference, is recommended for adoption.

Annexures

1. Revised Investment Policy - recommended changes marked-up ⇩



Annexure 1 Revised Investment Policy - recommended changes marked-up



Political Donations – matters to be considered by Councillors at Meetings

Action Declare a significant non-pecuniary conflict of

interest, absent yourself from the meeting and take no further part in the debate or vote on the matter

(Code of Conduct Cl 4.16(b))

Action

Consider appropriate action required. This could include limiting involvement by:

1. participating in discussion but not in decision making (vote), 2. participating in decision making (vote) but not in the discussion

3. not participating in the discussion or decision making (vote)

4. removing the source of the conflict

Do you believe the political contribution creates a significant non-pecuniary conflict of interest

for you?

(Code of Conduct Cl 4.23)

Action Declare a significant non-

pecuniary conflict of interest, absent yourself from the meeting

and take no further part in the debate or vote on the matter

(Code of Conduct Cl 4.16(b))

Staff to record decision process (motions/amendments) and Division of votes for the determinative resolution or recommendation in the

meeting minutes.

Matter before Committee or

Council Meeting

Did the applicant, owner (if not the applicant) or someone close

to the applicant make a donation in excess of $1,000 that directly benefited your

election campaign? (Code of Conduct Cl 4.21)

Is the matter before the meeting a Planning Matter?

Action

Participate in debate and vote on the matter

Did the applicant or someone close to the applicant make a donation less than $1,000 that directly benefited your election

campaign?

(Code of Conduct Cl 4.2)

Staff to record decision process (motions/amendments) and Division of votes for the determinative resolution or recommendation in the

meeting minutes.

No

No No

No

Yes

Yes Yes

Yes

Yes

agenda: date · 2017-05-04 · at the conclusion of the allotted four (4) minutes, ... d2 closing...

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