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Agenda for the Ordinary Meeting of Council – Mount Alexander Shire Council – 27 May 2014 of 102

AGENDA

FOR THE ORDINARY MEETING OF COUNCIL TO BE HELD ON

TUESDAY 27 MAY 2014 COMMENCING AT 7.30 PM IN THE

COUNCIL CHAMBER, MOUNT ALEXANDER SHIRE CIVIC CENTRE

CORNER LYTTLETON AND LLOYD STREETS, CASTLEMAINE.


TABLE OF CONTENTS

1. PRESENT 4

2. APOLOGIES 4

3. DECLARATIONS OF INTEREST/CONFLICTS OF INTEREST 4

4. MINUTES 5

4.1. ORDINARY MEETING OF COUNCIL – 13 MAY 2014 5

5. PUBLIC QUESTION TIME 5

6. PETITIONS AND JOINT LETTERS 5

7. COMMITTEE REPORTS 6

7.1. GOLDFIELDS REGIONAL LIBRARY CORPORATION 6

8. ASSEMBLIES OF COUNCILLORS 15

8.1. ASSEMBLIES ON 29 APRIL AND 1, 6 AND 13 MAY 2014 15

9. OFFICER REPORTS 27

9.1. A VIBRANT HEALTHY COMMUNITY (VIB) 27 VIB 09 COUNCIL RESPONSE TO NEWSTEAD COMMUNITY PLAN 27 VIB 10 COUNCIL RESPONSE TO TARADALE COMMUNITY ACTION PLAN 37 VIB 11 AWARDING OF CONTRACT M1078-2014 CASTLEMAINE SOUTH

KINDERGARTEN – NEW BUILDING AND REFURBISHMENT 42

9.2. BETTER COMMUNITY FACILITIES (BET) 47 NO REPORTS. 47

9.3. A THRIVING LOCAL ECONOMY (ECO) 48 ECO 14 PLANNING PERMIT APPLICATION 037-2014 – CONSTRUCT A

FENCE AT CROWN ALLOTMENT 1, SECTION 1A, PARISH OF CASTLEMAINE, BRUCE STREET, CASTLEMAINE 48

ECO 15 PLANNING PERMIT APPLICATION 084/2013 – DEMOLITION OF A DWELLING AND OUTBUILDINGS AT CROWN ALLOTMENT 17, SECTION 4, PARISH OF CASTLEMAINE, 21 TEMPLETON STREET, CASTLEMAINE 59

ECO 16 PLANNING PERMIT APPLICATION 233/2013 – USE OF THE LAND FOR A COMMUNITY MARKET, PLACE OF ASSEMBLY, RESTAURANT, VARIOUS ASSOCIATED LIQUOR LICENCES, REDUCTION OF CAR PARKING (126 CAR PARKS DOWN TO 87 CAR PARKS) AND BICYCLE FACILITY REQUIREMENTS, AND BUILDINGS AND WORKS ASSOCIATED WITH THE CONSTRUCTION OF CAR PARKING AT CROWN ALLOTMENT 23B, SECTION 115, PARISH OF CASTLEMAINE, 36 – 48 BOWDEN STREET, CASTLEMAINE 70

9.4. BUILDING SUSTAINABLE COMMUNITIES (COM) 90 COM 19 COUNCIL COMMITMENT TO LOCAL GOVERNMENT FUNDING

VEHICLE 90 COM 20 ADOPTION OF DRAFT PRICING POLICY 2014 95


10. DELEGATES REPORTS 102

11. NOTICE OF MOTION 102

12. URGENT SPECIAL BUSINESS 102

13. MEETING CLOSE 102

SEPARATE ATTACHMENTS: Separate Attachment VIB 09A: Newstead Community Plan Separate Attachment VIB 10A: Taradale Community Action Plan Confidential Attachment VIB 11A: Tender Evaluation Report, Tender M1078-2014 Castlemaine South Kindergarten – New

Building and Refurbishment


ACKNOWLEDGEMENT OF COUNTRY

To start the official proceedings I would like to acknowledge that we are meeting on Jaara country

of which the members and elders of the Jaara Jaara community and their forebears have been custodians for many centuries and have performed age old ceremonies of

celebration, initiation and renewal. We acknowledge their living culture and their unique role in the life of this region.

WELCOME OF COUNCILLOR TONY CORDY

The Victorian Electoral Commission conducted a by-election for a vacancy in Calder Ward in April and May 2014. The results were declared in the Civic Centre Council Chamber on 17 May 2014 at 3.00 pm. Anthony Glenn Cordy was the successful candidate.

In order for Councillor Cordy to participate in Council business as soon as possible, he took the oath of office as a Councillor of Mount Alexander Shire Council, in the presence of the Chief Executive Officer on Tuesday 20 May 2014, consistent with Section 63 of the Local Government Act 1989.

The original copy of Councillor Cordy’s Declaration and Oath will form part of the Minutes of this Meeting as required under Section 63 of the Local Government Act.

1. PRESENT

2. APOLOGIES

3. DECLARATIONS OF INTEREST/CONFLICTS OF INTEREST


4. MINUTES

4.1. ORDINARY MEETING OF COUNCIL – 13 MAY 2014

The unconfirmed minutes of the Ordinary Meeting of the Mount Alexander Shire Council held at 7.30 pm on 13 May 2014 at the Mount Alexander Shire Civic Centre have been circulated to Councillors.

The unconfirmed minutes have also been posted on the Mount Alexander Shire Council website, pending confirmation at this meeting.

RECOMMENDATION

That the Minutes of the Ordinary Meeting of the Mount Alexander Shire Council held on 13 May 2014 be confirmed.

5. PUBLIC QUESTION TIME

6. PETITIONS AND JOINT LETTERS


7. COMMITTEE REPORTS

7.1. GOLDFIELDS REGIONAL LIBRARY CORPORATION

RECOMMENDATION

That the unconfirmed Minutes of the Goldfield Regional Library Corporation meetings held on 21 February and 28 March 2014 be noted (Attachments 7.1A and 7.1B).


8. ASSEMBLIES OF COUNCILLORS

8.1. ASSEMBLIES ON 29 APRIL AND 1, 6 AND 13 MAY 2014

RECOMMENDATION

That the Records for the Assemblies of Councillors on 29 April, 1 May, 6 May at 1.00 pm and 2.00 pm, and 13 May 2014 be noted (Attachments 8.1, 8.2, 8.3, 8.4 and 8.5).


9. OFFICER REPORTS

9.1. A VIBRANT HEALTHY COMMUNITY (VIB)

VIB 09 COUNCIL RESPONSE TO NEWSTEAD COMMUNITY PLAN

Responsible Director: Director Sustainable Communities Responsible Officer: Community Planner Original Document: DOC/14/16636

1. Purpose

The purpose of this report is for Council to formally respond to the Newstead Community Plan.

Refer to:

Separate Attachment VIB 09A: Newstead Community Plan Attachment VIB 09B: Local Community Planning Project

Implementation Framework

2. Background

The Local Community Planning Project (LCPP) provides for a staged approach to community planning by working with local communities in the Mount Alexander Shire to enable them to identify needs and opportunities for the future of each town.

The Newstead Community Plan (Separate Attachment VIB 09A) was developed through the LCPP. It has a 15 to 20 year timeframe, to be reviewed every 3 to 5 years. It was officially launched by the Newstead Community Planning Project Committee in August 2013.

The Newstead Community Planning Project Committee presented their plan and the main priorities at a Council briefing in November 2013.

While the community plans are not Council documents, Council has developed a Local Community Planning Implementation Framework. (Refer Attachment VIB 09B.) This identifies how Council will ensure that community plans inform Council planning and program development. The Local Community Planning Implementation Framework specifies that Council will formally respond to the local community plan after representatives from a town have briefed Councillors on their aspirations for their community as listed in their action plan.

3. Policy and Statutory Implications

Including consideration of Economic, Social and Environmental impacts.

The Council Plan 2013-2017 specifically refers to Council’s commitment to achieving the vision set out in the MAP2020 Community Plan. The Council Plan makes reference to the Local Community Planning Project, through a possible action of “responding to opportunities identified in local community plans”, to achieve the goal of A Vibrant and Healthy Community.

The Public Health and Wellbeing Plan 2013 - 2017 includes the following strategy, “Respond to opportunities identified in local community plans’”


The Economic Development Strategy 2013-2017 objective 5.5 states Council will “Actively respond to local initiatives identified in the range of community plans established through Council’s Community Planning Project 2013-2014”.

Council’s Local Community Planning Project Implementation Framework (Attachment VIB 09B) outlines Council’s commitment to community plans through recognising the aspirations of the plans, and aligning where possible the priorities of the communities with Council plans and strategies. It also outlines how Council in partnership with communities will support particular actions of each community action plan in regards to resources, assistance and where appropriate advocate on the community’s behalf.

4. Issues

Community plans and Council response

The ownership of all the community’s priorities ultimately rests with each community. Where feasible and when alignment of town priorities occurs with Council plans and strategies, Council can play a role by:

• Providing advocacy and or leadership in assisting to leverage influence with other potential partners such as other tiers of government;

• Aligning and embedding the town’s priorities with future plans and strategies when they match Council’s priorities;

• Providing resources where feasible including staff time or funding. Council can take local priorities into account when developing Council’s annual budget. Community planning groups can also encouraged to apply for funding under Council’s community grants scheme;

• Enabling partnership and coordination with other government agencies and funding bodies to attract and/or contribute funding and support for various projects. Council can also identify opportunities to build partnerships between towns for joint applications that link communities that have similar themed project; and

• Facilitating community strengthening in capacity building, skills development and sharing of information between the community planning groups through an annual Shire-wide congress and provision of training and workshops.

The Newstead Community Plan details an extensive list of 20 town objectives and 102 strategies and actions. The plan focuses on the community’s ten top priorities for the future of Newstead. The following outlines Council’s response to the top ten priorities in the Newstead Community Plan.

Priority 1: Refurbishing and revitalising the Newstead Station as an arts precinct

Council has given in-principle support to entering into a five year lease with VicTrack for the former Newstead Railway Station, with the purpose of assisting in the establishment of a local community arts facility.

In proposing this arrangement it is not anticipated that Council will contribute to any of the costs associated with the project including theannual lease payment, fit-out of the building, staffing, operations or maintenance.

Council’s role is limited to acting as lessee with all associated costs being passed on to the local community via a sub-lease. Council will investigate funding opportunities and will advise VicTrack of its intention.

The Council Unit contact is Community Activity and Culture.


Priority 2: Creating a pedestrian bridge across the Loddon River to connect both sides of town

The Newstead pedestrian bridge is listed as one of Council’s project priorities for 2013-2017.

A feasibility study in February 2010 outlined objectives for the new link. A detailed site investigation and notional design in 2013 explored options for both the route and construction methods and provided construction costing for the bridge and connecting paths of approximately $1.0 million.

Council will continue to advocate and investigate possible funding.

The Council Unit contact is Infrastructure.

Priority 3: Establishing a skate and bike park and community activity centre

Council is not able to prioritise or give direct support for this project at this point in time.

The Community Activity and Culture Unit of Council can provide advice to Newstead representatives regarding potential external funding sources.

Council will continue to provide resources such as guidelines for facility development from the appropriate Government departments.

The Council unit contact is Community Activity and Culture.

Priority 4: Establishing a connected network of walking and bike paths and trails between Newstead and surrounding towns using existing easements and bushland areas

This priority aligns with actions in the Council Plan 2013-2017, the Walking and Cycling Strategy 2010-2020, the Economic Development Strategy and the Public Health and Wellbeing Plan 2013-2017.

Council’s Walking and Cycling Advisory Group will consider the prioritisation of path and trail developments across the Shire.


Priority 5: A major renewal of street trees within the town precinct

Council has an annual budget allocation for street tree renewal. The implementation plan arising from the community tree audit can be considered in planning for this allocation.

Council is developing a policy regarding street trees across the Shire; however this policy may not address the expectations of this project.

The Council Unit contact is Infrastructure - Parks and Gardens.

Priority 6: Establishing a “Support and Sustain our Volunteers” initiative for volunteers and community

Council’s Economic Development Strategy 2013-2017- Strategy 3.6 states that Council with event organisers will “Support volunteer committees involved in arts


and cultural events to develop the necessary skills and resources to ensure events are viable and sustainable”.

It is recommended that the Newstead Community Planning Group apply for Council’s community grants funding program and philanthropic organisations to support this initiative.

Council supports the Mount Alexander Volunteer Network to assist with training opportunities for volunteers.

Council will share materials from Council’s volunteer policy and procedures for local groups to adapt and make use of.

The Council Unit contact is Community Development.

Priority 7: Developing a local business strategy for Newstead to build business and employment opportunities

This initiative aligns with several of the objectives of Council’s Economic Development Strategy 2013-2017.

Mount Alexander Shire Council will continue to support local businesses though the following avenues:

• Funding and provision of various Council resources to support of Newstead events;

• Delivery of training and networking events to assist business development; • Promotion of Newstead as a destination for visitors, investors and residents

through Council’s marketing activities; • Improving recreation facilities to attract new business and families; and • Support for the Rural Transaction Centre.

The Council Unit contact is Local Economy.

Priority 8: Planning for a liveable Newstead to ensure Newstead retains its unique built and natural values into the future

As part of Council project priorities for 2013-2017, Council is undertaking a review of the Mount Alexander Planning Scheme. One of the benefits of seeking to implement a review is to identify, protect and conserve heritage assets in the Shire, including landscapes and heritage significance. It should be noted that the review is not recommending any specific changes to policy or direction for Newstead from those currently in place.

Council will continue to ensure planning controls and heritage overlays are complied with.

The Council Unit contact is Development Services.

Priority 9: Catering for our ageing population through access and accommodation

Council’s Access and Inclusion Officer can provide advice and support on housing that is accessible for all ages and enables ageing in place.


Council will continue to support the Accessible Newstead project through the Access and Inclusion Officer and assist in advocating for external funding where appropriate.

The Council Plan 2013-2017 has an objective to “Facilitate housing that meets the needs of the community.” This includes development of a Local Planning Policy on affordable and adaptable housing.

The Council unit contact is Community Development.

Priority 10: A road safety focus to minimise traffic impacts and create a safe and quiet township

Council has an ongoing challenge to plan and provide for road and footpath infrastructure.

Council will advocate in conjunction with the Newstead Community Planning group to other major stakeholder/partners such as VicRoads, Department of Environment and Primary Industries and the Federal Government for funding to enable planned ongoing works.


5. Financial and Resource Implications

Priorities identified in the Newstead Community Plan that could attract Council funding were considered in the 2014/2015 Budget process. Council may provide support through advocacy, staff support or assistance with grant applications that support the community plan.

6. Consultation

During the development of the Newstead Community Plan it is estimated that one in four residents participated in the planning process which resulted in the ten priority actions listed for this community. The community planning group demonstrated a commitment to providing a range of ways to engage with people and hear their ideas.

In identifying Council responses to the priorities in the Newstead community plan, Council’s Corporate Management Team participated in a workshop which identified Council roles and what Council is currently doing or could be doing in the future for each priority area.

Councillors participated in a workshop at one of the scheduled Councillor briefing sessions in March to assist in formulating the response to the Newstead community planning group. The outcome of this workshop has been incorporated into this report.

7. Conclusion

The finalisation and presentation of the Newstead Community Plan to Council represents an important milestone in achieving the objectives of the Local Community Planning Project.

It is evident that Council is already playing a role with respect to a number of priorities identified in each of the local community plans, in terms of partnering with the local community, providing resources such as community grants, advocating to


other levels of government and supporting and enabling community members to get involved.

This formal response to Newstead’s local community plan reflects Council’s recognition of the process the community has embarked on in identifying shared priorities for the future of their town. It identifies what Council will do in broad terms to support the Newstead community to achieve their aspirations.

The Newstead Community Plan aligns strongly with the Council Plan. The ten priorities and associated objectives represent a clear direction for Newstead residents to work together to achieve a positive future for their community.

RECOMMENDATION

That Council:

1. Accept the Newstead Community Plan and provide support where it is relevant for Council to be involved with the implementation of priority projects; and

2. Formally respond in writing to the Newstead Community Planning Group of Council’s response to the Newstead Community Plan.


VIB 10 COUNCIL RESPONSE TO TARADALE COMMUNITY ACTION PLAN

Responsible Director: Director Sustainable Communities Responsible Officer: Community Planner Original Document: DOC/14/16936

1. Purpose

The purpose of this report is to request Council to formally respond to the Taradale Community Action Plan.

Refer to:

Separate Attachment VIB 10A: Taradale Community Action Plan Attachment VIB 09B: Local Community Planning Project

Implementation Framework (From previous report)

2. Background

The Local Community Planning Project (LCPP) provides for a staged approach to community planning by working with local communities in the Mount Alexander Shire to enable them to identify needs and opportunities for the future of each town.

The Taradale Community Action Plan (Separate Attachment VIB 10A) is the culmination of approximately forty local people and community groups and organisations working together to outline what they want for the future of Taradale. Members of the Taradale Forum consulted regularly with the residents of Taradale to ensure this Plan is owned by people within the town and they will work together to deliver on the actions identified in the Plan.

Members of the Taradale Community Forum presented their priorities at a Council briefing in November 2013.

While the community plans are not Council documents, Council has developed a Local Community Planning Implementation Framework. (Refer Attachment VIB 09A from previous report.) This identifies how Council will ensure that community plans inform Council planning and program development. The Local Community Planning Implementation Framework specifies that Council will formally respond to the local community plan after representatives from a town have briefed Councillors on their aspirations for their community as listed in their action plan.



The Council Plan 2013-2017 specifically refers to Council’s commitment to achieving the vision set out in the MAP2020 Community Plan. The Council Plan makes reference to the Local Community Planning Project, through a possible action of “responding to opportunities identified in local community plans”, to achieve the goal of A Vibrant and Healthy Community.

The Health and Wellbeing Plan 2010-2013 includes the following strategy, “Support community leadership and participation in the development of local community action plans to inform the evolution of the MAP2020 Community Plan”.


The Economic Development Strategy 2013-2017 objective 5.5 states Council will “Actively respond to local initiatives identified in the range of community plans established through Council’s Community Planning Project 2013-2014”.

Council’s Local Community Planning Project Implementation Framework (Attachment VIB 09B) outlines Council’s commitment to community plans through recognising the aspirations of the plans, and aligning where possible the priorities of the communities with Council Plans and strategies. It also outlines how Council in partnership with communities will support particular actions of each community action plan in regards to resources, assistance and where appropriate advocate on the community’s behalf.

4. Issues

Community plans and Council response

The ownership of all the community’s priorities ultimately rests with each community. Where feasible and when alignment of town priorities occurs with Council plans and strategies, Council can play a role by:

• Providing advocacy and or leadership in assisting to leverage influence with other potential partners such as other tiers of government;

• Aligning and embedding the town’s priorities with future plans and strategies when they match Council’s priorities;

• Providing resources where feasible including staff time or funding. Council can take local priorities into account when developing Council’s annual budget. Community planning groups can also be encouraged to apply for funding under Council’s community grants scheme;

• Enabling partnership and coordination with other government agencies and funding bodies to attract and/or contribute funding and support for various projects. Council can also identify opportunities to build partnerships between towns for joint applications that link communities that have similar themed project; and

• Facilitating community strengthening in capacity building, skills development and sharing of information between the community planning groups through an annual Shire-wide congress and provision of training and workshops.

The Taradale Community Action Plan focuses on five key themes. Under these themes there are 16 strategies and a detailed list of 31 actions. This report addresses the eight priority strategies identified in the Plan.

Priority strategy 1: Promote and support local business

After the threatened closure of the Taradale service station/post office/store, Council supported the formation of the Taradale General Store Working Group.

This initiative aligns with Council’s Economic Development Strategy 2013-2017 which includes the establishment of a Shire-wide business network.

Mount Alexander Shire Council will continue to support local businesses though the following avenues:

• Funding and provision of various Council resources to support of Taradale events;

• Promote Taradale through the “Promote Liveability in Mount Alexander” video; • Facilitate grant applications to support business initiatives;


• Installation of signage to attract people to Taradale and therefore spend money at local businesses; and

• Provide ongoing advocacy, support and advice to the Taradale Community Forum.


Priority strategy 2: Attract visitors to the town

Council is supportive of the Taradale Community Forum in its initiative of attracting visitors to the town enabling both opportunities for business and employment of local residents.

This initiative aligns with Council’s Economic Development Strategy 2013-2017 Objective 6: Promote Mount Alexander Shire as a desirable place to live or visit.

Council has been successful in securing funding to update the Taradale Mineral Springs Master Plan and to complete identified works within the 2014/2015 financial year.

Mount Alexander Shire Council supports tourism though the following avenues:

• Funding and provision of various Council resources to support of Taradale events;

• Promoting Taradale through the “Promote Liveability in Mount Alexander” video;

• Promoting Taradale through Council’s tourism website; and • Featuring businesses from the Taradale area on the Food and Wine app being

developed through Council’s Local Economy Unit.


Priority strategy 3: Support and sustain existing community events and activities and promote new community events and activities.

Council’s Economic Development Strategy 2013-2017- Strategy 3.6 states that Council alongside event organisers will “Support volunteer committees involved in arts and cultural events to develop the necessary skills and resources to ensure events are viable and sustainable”.

The Mount Alexander Shire Council Events kit can assist organisers of events and activities.

Council continues to give assistance in terms of funding and traffic management for events.

Event organisers are encouraged to apply for Council’s Community grants.


Priority strategy 4: Improving and protecting local landscapes

Council’s Environment Strategy 2011-2014 – includes the Direction, ‘Supporting and enabling community action’ with the Action 1.5.1 ‘Seek funding and develop partnerships in increase Landcare and other Land restoration’ and Action 1.5.2 ‘Continue support to volunteer groups such as Landcare, MASG, and other community organisations programs’.


Council will support and enable the local Landcare groups to complete restoration works along local waterways such as Kangaroo and Back Creeks by providing access to Council’s Community Grant Scheme.

The Council unit contact is Healthy Communities.

Priority strategy 5: Access to and use of Taradale Hall including a new kitchen, renovations to the stage and painting of the ceilings and walls

Council has repaired termite damage to parts of the hall and will work with the Taradale Hall Committee to continue to maintain the facility.

The new kitchen is proposed in the Budget 2014/2015.


Priority strategy 6: Ensuring the Taradale Primary School remains open and viable

Council has limited capacity to assist in this priority however it will assist the Forum to promote the school facilities for community use through whatever means possible.


Priority strategy 7: Increase access to sustainable transport options

This priority aligns with Council’s Economic Development Strategy 2013-2017, Strategy 4.4 “Advocate for improved passenger and freight rail infrastructure and services”.

Under this priority in the Taradale Community Action Plan, two of the actions refer to improving bus links with train lines and to campaign for limited train stops at Taradale station. Council will continue to advocate with the Department of Transport to assist with these two actions.


Priority strategy 8: Promote walking tracks and trails

This priority aligns with the Council Plan 2013- 2017, the Walking and Cycling Strategy 2010-2020, the Economic Development Strategy and the Public Health and Wellbeing Plan 2013-2017.

Actions identified in the Action Plan are to obtain signage for Royal Oaks Walk, and to update maps and leaflets for other walks to include routes and information. The Taradale Community Forum is invited to work with Council to achieve this action.

The Council Unit contact is Community Activity and Culture.


Priorities identified in the Taradale Community Action Plan that may attract Council funding support were considered in the 2014/2015 Budget process. Council may


provide support through advocacy, staff support or help with grant applications that support the community plan.

6. Consultation

The Taradale Community Action Plan is the result of eighteen months of hard work by the Taradale Community Forum, with many local people contributing ideas and input to develop this vision for their town.

The Plan has been the culmination of approximately forty local people and their community groups and organisations working together to outline what they want for the future of Taradale. Members of the forum consulted regularly with the residents of Taradale to ensure this Plan is owned by people within the town and they we will work together to deliver on the actions identified in the Plan.

In identifying Council responses to the priorities in the Taradale Community Action Plan, Council’s Corporate Management Team participated in a workshop which identified Council roles and what Council is currently doing or could be doing in the future for each priority area.

Councillors participated in a workshop at one of the scheduled Councillor briefing sessions in March to assist in formulating the response to the Taradale Community Action Planning group. The outcome of this workshop has been incorporated into this report.

7. Conclusion

The finalisation and presentation of the Taradale Community Action Plan to Council represents an important milestone in achieving the objectives of the Local Community Planning Project.

It is evident that Council is already playing a role with respect to a number of priorities identified in each of the local community plans, in terms of partnering with the local community, providing resources such as community grants, advocating to other levels of government and supporting and enabling community members to get involved.

This formal response to Taradale’s Community Action Plan reflects Council’s recognition of the process the community has embarked on in identifying shared priorities for the future of their town. It identifies what Council will do in broad terms to support the Taradale community to achieve their aspirations.

RECOMMENDATION

That Council:

1. Accept the Taradale Community Action Plan and provide support where it is relevant for Council to be involved with the implementation of priority projects; and

2. Formally respond in writing to the Taradale Forum of Council’s response to the Taradale Community Action Plan.


VIB 11 AWARDING OF CONTRACT M1078-2014 CASTLEMAINE SOUTH KINDERGARTEN – NEW BUILDING AND REFURBISHMENT

Responsible Director: Director Sustainable Communities Responsible Officer: Director Sustainable Communities Original Document: DOC/14/21887

1. Purpose

The purpose of this report is for Council to consider and determine the awarding of tender M1078-2014 for Castlemaine South Kindergarten new building and refurbishment.

Refer to:

Confidential Attachment VIB 11A: Tender Evaluation Report, Contract M1078-2014 for Castlemaine South Kindergarten new building and refurbishment.

2. Background

Council has undertaken to construct a new modular kindergarten classroom with associated amenities at the Castlemaine South Kindergarten. The scope of works also includes refurbishment works to the existing kindergarten building and includes the kitchen and children’s toilets and replacement of existing vinyl floor coverings. The final detail of these works will be determined in consultation with the kindergarten staff and the kindergarten committee.

The new kindergarten building will accommodate three year old programs and has the capacity to accommodate 22 children. The building has been designed to meet all current standards of new child care facilities and includes:

• a classroom space with bench and sinks, • a kitchen for meal preparation, • disabled toilet for universal access, • children’s toilet and change facilities, • an office,and • a store and toy library store.

The new kindergarten building will increase the capacity of the existing kindergarten so that the facility can be licensed to accommodate 51 children.

The scope of work also includes a ramp that will provide universal access and link the existing kindergarten building with the new kindergarten building.

Hede Architects Pty Ltd was appointed in August 2013 to undertake the design and contract documentation services for the Castlemaine South Kindergarten project. There has been significant input into the design process from the Castlemaine South Kindergarten Project Group, which included the YMCA who operate the kindergarten, the Department of Education and Early Childhood Development (DEECD), Castlemaine South Kindergarten staff, Castlemaine South Kindergarten Committee, and Council officers.

The tender documentation including invitation to tender, drawings and specifications were completed in March 2014. The project has been structured as a design and construct contract.


Tenders were invited from suitably qualified building contractors for construction of the M1078-2014 Castlemaine South Kindergarten New Building and Refurbishment contract and advertised in:

The Age - Saturday 29 March 2014 Bendigo Advertiser - Saturday 29 March 2014 Midland Express - Tuesday 1 April 2014

The tender documentation was also uploaded onto the E-tender website, where subscribers are alerted to the new construction works project.

The documentation includes tender drawings and specifications of architectural, structural, and landscape, mechanical, electrical and hydraulic services disciplines. Tenderers were also required to demonstrate local content in both contractors and materials proposed.

Six tenders were received by the closing date of 2.00pm, Wednesday 30 April 2014.



In accordance with the Council’s Procurement Policy, a public tender process was adopted for this contract value.

In accordance with the Mount Alexander Shire Planning Scheme, a Planning Permit is not required for the works.

A Building Permit is required for the works and an application has been lodged, approval pending.

The Council Plan 2013-2017 includes a goal to “Ensure community buildings are well maintained, suitable and accessible to community groups, organisations and individuals”.

The Council Plan 2013-2017 includes strategies to “Identify opportunities for improved access and shared use by community groups” and ”Identify opportunities to upgrade buildings to increase use.

In addition, Council’s Disability Action Plan 2011–2015 includes the action “Ensure that all youth and children’s programs provided by Council enable young people with a disability to become involved”

The current Castlemaine South Kindergarten does not provide compliant disability access due to stairs leading from the outdoor verandah to the outdoor play space.

The Castlemaine South Kindergarten new building and refurbishment works will provide an accessible ramp from the existing kindergarten building to the outdoor play space. A compliant accessible ramp also extends to link the new kindergarten building with the existing building, thereby enabling children with a disability full use of all indoor and outdoor facilities within the kindergarten site.

The new kindergarten building and refurbishment works have been designed to meet the requirements of the Education and Care Services National Law, and the Education and Care Services National Regulations 2011.


The new kindergarten building and refurbishment works have been designed to meet the requirements of the National Construction Code of Australia.

The existing kindergarten has capacity to accommodate 29 children. The new kindergarten has the capacity to accommodate 22 children under the Education and Care Services National Regulations 2011.

All tender panel members completed Conflict of Interest and Confidentiality Declarations and no conflicts were declared.

4. Issues

Six tenders were received by the closing date of 2.00 pm, Wednesday 30 April 2014.

Tenders were received from the following:

TENDERER

1 BRB Modular Pty Ltd T/As Fleetwood 2 Chris Wright Constructions 3 Colbrico Pty Ltd T/As Searle Bros 4 Grove (Aust) Pty Ltd 5 MKM Constructions 6 Quip Smart

The tender evaluation panel identified that the tender submitted by Grove (Aust) Pty Ltd was deemed to be a non-conforming tender as it was for the construction of the modular building only. In addition, the breakdown of the lump sum works was not provided, therefore the full scope of works was not tendered. Therefore it was not subject to detailed evaluation.

Five tenders were evaluated according to the following criteria for shortlisting purposes:

1. Cost to Council – Direct and Indirect 2. Experience and Qualifications 3. Response to Specification 4. Sustainability In addition, the shortlisted tenderers were evaluated against the following criteria: 5. Risk Quality Management 6. Business Capacity Financial Capacity

The Tender Evaluation Panel met on 5 May 2014 to evaluate the conforming tenders against the evaluation criteria for shortlisting purposes. The three highest scoring tenderers were shortlisted and interviewed. The interviews were conducted on the 12, 13 and 14 May 2014 and the tender evaluation was finalised following the interviews.

Following interviews with the shortlisted tenderers, MKM Constructions was deemed to be a non-conforming tender.


Risk and Quality Management criteria was assessed by Council’s Risk and Safety Officer concurrently with the interview process.

Business and Financial Capacity criteria was assessed concurrently with the interview process.

Following a full evaluation against all criteria Colbrico Pty Ltd T/As Searle Bros achieved the highest score of 8.0.

Members of the tender evaluation panel met with Colbrico Pty Ltd T/As Searle Bros at 9.00am, Tuesday 13 May 2014.

During the interview Colbrico Pty Ltd T/As Searle Bros confirmed that their pricing included all tender options.

Management of the construction site would include temporary fencing, dust proofing and solid plinth that would prevent children from entering the site. Colbrico Pty Ltd T/As Searle Bros gave an example of a previous project where this site establishment was successfully implemented, these included a learning centre in Flora Hill and Eaglehawk Primary School where the school was operating whilst building works were being undertaken.

Colbrico Pty Ltd T/As Searle Bros is a Bendigo and Ballarat based company and have proposed to engage Central Air for mechanical services if successful in being awarded this contract.

The referee checks that were undertaken confirm that Colbrico Pty Ltd has a sound reputation for delivering construction projects and all referees contacted would recommend them for future projects.


In April 2012, Mount Alexander Shire Council was the successful recipient of a $300,000 Early Learning Facility Upgrade Grant from the DEECD. The funding submission identified the need to extend the South Castlemaine Kindergarten in support of the move to universal access to four year old kindergarten for children. The project budget previously allocated for the project is $470,000 (including DEECD grant of $300,000). In addition, project savings within the capital works program are available to support a total project cost of $607,340 (GST Exc).

6. Consultation

The Castlemaine South Kindergarten Project Group was made up of YMCA, DEECD, Castlemaine South Kindergarten staff, Castlemaine South Kindergarten Committee members and Council officers. Consultation has occurred on a regular basis with the Project Group during the design and documentation phases of the project.

The tender evaluation panel consisted of: • Director Sustainable Communities • Major Projects Facilitator • Procurement Coordinator • Manager Community Services • Risk and Safety Officer completed the evaluation of Risk and Quality

Management


7. Conclusion

The Castlemaine South Kindergarten new building and refurbishment project provides a new three year old kindergarten building and includes refurbishment of the kitchen in the existing building as well as installation of a ramp and paths. The project will enable children with disabilities to participate by providing universal access.

Five conforming tenders were received by 2.00pm, Wednesday 30 April 2014. The Tender Evaluation Panel assessed each of the conforming tenders against the tender evaluation criteria. Of the tenders received, three were shortlisted and interviewed by the Tender Evaluation Panel. Following interview the tender from MKM Constructions was also deemed to be non-conforming.

Following the interviews and finalising the tender evaluation, Colbrico Pty Ltd T/As Searle Bros achieved the highest score. Referee checks undertaken confirmed that Colbrico Pty Ltd T/As Searle Bros has a sound reputation for delivering similar projects.

RECOMMENDATION

That Council:

1. Award Contract M1078-2014 for the Castlemaine South Kindergarten new building and refurbishment works to Colbrico Pty Ltd T/As Searle Bros to a maximum contract price of $607,340.00 (GST exclusive);

2. Authorise the Chief Executive Officer to confirm the scope of the project and delivery timeframes; and

3. Authorise the Chief Executive Officer to sign and affix the Common Seal to the contract documentation for Contract M1078-2014 for Colbrico Pty Ltd T/As Searle Bros.


9.2. BETTER COMMUNITY FACILITIES (BET)

NO REPORTS.


9.3. A THRIVING LOCAL ECONOMY (ECO)

ECO 14 PLANNING PERMIT APPLICATION 037-2014 – CONSTRUCT A FENCE AT CROWN ALLOTMENT 1, SECTION 1A, PARISH OF CASTLEMAINE, BRUCE STREET, CASTLEMAINE

Responsible Director: Director Sustainable Development Responsible Officer: Town Planner Original Document: DOC/14/20782

1. Purpose

The purpose of this report is to enable Council to make a determination on an application to construct a fence at CA 1, Sec 1A, Parish of Castlemaine, Bruce Street, Castlemaine. The application has been referred to Council for a decision as there is one outstanding objection to the granting of a planning permit.

Refer to:

Attachment ECO 14A: Context and site aerial with photographs and plans submitted with application

2. Background

The site is on the south-west edge of the Castlemaine CBD within the Residential 1 Zone (R1Z). The site is not covered by any overlays.

The subject site comprises two new lots (Lots 2 & 3) created by a three lot subdivision of a larger lot. The two new lots face Bruce Street with the existing original house facing Forest Street. Planning approval for the subdivision and multi -unit development was granted in 2004. The new lots have been registered with Land Victoria but not yet finalised for the issue of new titles.

Each proposed parcel of land is approximately 250m². The sites are irregular in shape having a total frontage of 41 metres to Bruce Street and extending for a depth of 20 metres at the apex of the common boundary.

Extensive excavation of the whole site had been undertaken prior to the subdivision. The land drops more than three metres at the rear, with the lot being generally flat, before dropping off at the front with an embankment fronting Bruce Street. The lots facing Bruce Street are separated from the lot fronting Forest Street by a retaining wall.

Further excavation was undertaken as part of the development of the approved dwellings making each new lot level with the roadway.

Flooding in 2011 affected the levelled area of the site. The threat of further flooding prompted the landowner to fill the sites back to the previous ground level. A one metre high retaining wall was built along the full extent of the side boundary and along the front boundary to the new dwelling.

The new development on the site comprises two mirror-image dwellings which share a wall on the common boundary. Vehicle access to each site is via an inclining driveway to a garage on the outer aspect of each dwelling, setback eight metres from each side boundary.


There is a separate vacant site to the east that has also been excavated to street level. This results in a ground level lower than both its adjoining lots fronting Bruce Street, and again being approximately five metres lower than the dwelling to the north on Forest Street. A retaining wall of this height has been constructed to the rear of this lot also.

Proposal

The application was submitted on 4 April 2014 proposing the construction of a fence to each of the dwellings. It proposed to construct a 1.8 metre high Colourbond fence to match existing fences. On Lot 3 the fence will sit on top of the retaining wall which is approximately one metre in height.

Only fencing within three metres of the road requires a planning permit. The front fence and first three metres of the side fence need planning permission, and is the subject of this application. None of the other fencing requires a planning permit.

Part of the fence has been commenced without a planning or building permit. Construction was ceased when the landowner was alerted to the need for permits.

Prior to the submission of the application, an objection was submitted by an adjoining landowner. The same party submitted a further objection once notice of the application was given.



State Planning Policy Framework (SPPF)

Clause 15.01 Built Environment and Heritage

This clause includes the goal for the creation of urban environments that are safe, functional and provide good quality environments and to ensure the conservation of places of heritage significance.

Officer comment This particular site is constrained by the topography of the land, the proximity to Forest and Barkers creeks and the railway embankment, as well as the early and recent excavations of the site.

Clause 16.01 Residential Development – Integrated housing

The relevant objectives of this clause aim to provide a diversity of housing stock to meet the requirements of community needs and affordability, in areas that have access to services and infrastructure and to promote a housing market that meets community needs. Strategies to meet this objective include:

• Increase the supply of housing in existing urban areas by facilitating increased housing yield in appropriate locations, including under-utilised urban land; and

• Ensure that the planning system supports the appropriate quantity, quality and type of housing, including the provision of aged care facilities.

Housing in Castlemaine has been largely developed as single storey dwellings on quarter acre blocks (1000m²) aimed at accommodating family living. Single person households now account for 32% of the demographic in Mount Alexander Shire. Policy within the planning scheme supports residential infill and consolidation to


utilise existing infrastructure and services, over urban expansion. It is recognised that the provision of a diversity of housing choice at a higher density will alter the appearance of neighbourhood character in these locations.

Local Planning Policy Framework (LPPF)

Clause 21.03 Municipal Vision and Framework Plan

This clause sets out the land use planning and development vision for the Shire. It contains planning directions for the Shire as a whole and for towns and areas within the Shire. Plan 3 (Castlemaine Framework Plan) identifies the site as within the Castlemaine Central Residential Area; Plan 1 (Strategic Framework Plan) identifies Castlemaine as the preferred location for future commercial, industrial and residential expansion; Plan 2: Mount Alexander Urban Living Strategy identifies a predicted need for an extra 770 households to house an extra 1,300 people, between 2011 and 2021.

The Castlemaine Residential Strategy supports opportunities for residential infill and consolidation and recommends more housing opportunities be made available close to and within the town centre.

The proposed fence differs from usual front fencing for houses in Castlemaine which are usually setback from the street frontage. A higher fence constructed in front of a standard dwelling on a smaller lot might hide the dwelling and create a shut-off feel from the street. However, the existing dwellings have been constructed to the front title boundary. The proposed front fence will not be sited in front of the dwellings but will extend for only a section of the frontage, from the side of the house to the side boundary, and then along the side boundary. In this case, the dwellings present as very much part of the streetscape and will not be obscured by the fence at the proposed height.

Zoning

Clause 32.01 Residential 1 Zone (R1Z)

The site is located within the Residential 1 Zone. The purpose of the Residential 1 Zone is to implement the State and Local Planning Policy Framework, providing for residential development at a range of densities with a variety of dwellings to meet the needs of all households and which respects neighbourhood character.

Under the provisions of Clause 32.01-4 of the R1Z a planning permit is required to … construct or extend a fence within 3 metres of a street if … the fence is associated with two or more dwellings on a lot and … the fence exceeds the maximum height specified in Clause 54.06-2. This clause states that a front fence within three metres of a street should not exceed a maximum height of two metres if the street is a Road Zone Category 1 or 1.5 metres for any other street.

As Bruce Street is not a Road Zone 1 Category road, 1.5 metres is the maximum height.

All development must be assessed against the decision guidelines of the R1Z, the Responsible Authority must consider:

• The State Planning Policy Framework and the Local Planning Policy Framework including the MSS and local policies; and

• The objectives and standards and decision guidelines of Clause 54.


The natural ground level varies widely over the subject sites. Therefore planning permission is not required for all sections of the proposed fence. The sections of the fence along the front boundary and for three metres along the side boundary are subject to planning permission. This section and the next 8.3 metres of the side fence will require a building permit as the height exceeds two metres above natural ground level. The rear 12 metres of the fence is able to be constructed without any permits.

Particular provisions

Clause 55 Two or more dwellings on a lot

An application for development associated with the construction of one dwelling on a lot of less than 300m² in the Residential Zone must meet the standards and objectives of Clause 54 of the Mount Alexander Planning Scheme.

A development must meet all of the objectives of this clause and should meet all of the standards of this clause.

Clause 55.06-2 Front fence objective

This is the relevant clause for assessment of the fence; the objective is to encourage front fence design that respects the existing or preferred neighbourhood character.

Standard B32 seeks that the design of front fences should complement the design of the dwelling and any front fences on adjoining properties.

A front fence within three metres of a street should not exceed:

• The maximum height specified in the schedule to the zone, or • If no maximum height is specified in the schedule to the zone, the maximum

height specified in Table B3, in this instance 1.5 metres.

The decision guidelines of this clause require that before deciding on an application, the responsible authority must consider:

• Any relevant neighbourhood character objective, policy or statement set out in this scheme; and

• The design response; and • The setback, height and appearance of front fences on adjacent properties;

and • The extent to which slope and retaining walls reduce the effective height of the

front fence; and • Whether the fence is needed to minimise noise intrusion.

The existing neighbourhood form is of single dwellings setback from street frontage, on larger lots. Private open space for these dwellings is generally to the rear. Due the odd lot shape and topography of the subject land, the dwellings on the subject sites have private open space to the side of each dwelling. If it were not for the raising of the natural ground level of the corner of these sites by the construction of the retaining wall, a fence of 1.5 metres in height could be constructed without any permits. The extra 30 centimetres is not considered to impact on how the dwellings on the subject site relate to the neighbourhood, nor on the visual amenity and appearance of the streetscape.


4. Issues

Outstanding objections to the application

Following advertisement of the application in accordance with Sections 52(1)(a) and 52(1)(d) of the Planning and Environment Act 1987, an objection was received.

Issues raised are summarised below with a comment from the assessing officer.

The proposed fence is inconsistent with the design of existing fences in the street.

The existing dwellings offer a new architectural element to the streetscape. The proposed fence allows some privacy outside the dwellings in the small outside areas. As the fence is to be constructed only part way along the title boundary, it is not considered that it will close off the dwellings from the streetscape.

The height of the proposed wall will make the adjoining lot feel enclosed.

It is recognised that the adjoining lot will feel enclosed. However, development on this odd shaped lot will most likely be to the rear, where the boundary fence can be constructed without any permissions and where the neighbouring adjoining landowner has already constructed an approximately six metre high retaining wall along the rear of their own lot.

The section of the fence that requires planning permission will have little impact on the adjoining lot. At this point the dwelling is already close to the boundary and is much higher than the proposed fence.

The neighbouring lot owned by the objector is much lower than the subject site and also lower than the adjoining lot to its east. It is likely this lot would flood in the event of another 1:100 year flood event. It could be expected that this site would also have to be raised prior to any construction on the lot.

The proposed fence height exceeds that previously agreed between the land owner of the subject site and the objector and the fence is being constructed without the objector’s (adjoining land owners) consultation or permission.

Survey pegs indicating the common boundary between the subject site and that of the objector’s suggest the retaining wall is constructed within the bounds of the subject site and does not intrude onto the actual common boundary. The proposed fence will be a further 100 mm into the subject land.

The construction of the retaining wall was not authorised and it is not constructed to standard.

The retaining wall has been assessed as structurally sound and has engineering sign off. The planning permit application was lodged as a result of the planning enforcement work.


Cost of potential appeal to the Victorian Civil and Administrative Tribunal if the matter progresses to appeal.


6. Consultation

Advertising

Notice of the application was given in accordance with Sections 52(1)(a) and 52(1)(d) of the Planning and Environment Act 1987 by placing a sign on the land.

Much of the content of the objection relates to matters that are beyond the bounds of planning assessment. It was not considered that these matters could be resolved as part of the planning process or that an outcome which satisfied both applicant and objectors could be reached. Therefore an applicant objector meeting was not convened. Specific comments on those matters relating to the planning approval are outlined in Section 4 of this report.

External Referrals - nil

Internal Referrals

Discussions with Council’s Building Unit to determine consistency of approach and permissions.

7. Conclusion

Council has received an application for the construction of a fence at CA 1, Sec 1A, Parish Castlemaine, Bruce Street, Castlemaine. The site is located within the Residential 1 Zone and not covered by any Overlay.

One objection has been received and not withdrawn.

The proposal has been assessed against the relevant state and local policy and decision guidelines of the relevant overlays. The proposal generally complies with the Mount Alexander Shire Planning Scheme and should be supported.

RECOMMENDATION

That Council issue a Notice of Decision to Grant a Planning Permit for the construction of a fence at CA 1, Sec 1A, Parish of Castlemaine, Bruce Street, Castlemaine subject to the following conditions:

1. NO LAYOUT ALTERATION 1.1 The development allowed by this permit as shown on the endorsed plan(s)

and/or described in the endorsed documents must not be altered or modified (for any reason) except with the prior written consent of the Responsible Authority.

2. PERMIT EXPIRY – TIME FOR STRATING AND COMPLETION 2.1 This permit will expire if the development permitted by this permit is not

completed within two years of the issue of this permit.

Council may extend the periods referred to if a request is made in writing before the permit expires or within six months afterwards.

If the development has lawfully commenced prior to the expiry date identified in the condition above, an application to complete the development may be made within twelve months after the permit expired.


ECO 15 PLANNING PERMIT APPLICATION 084/2013 – DEMOLITION OF A DWELLING AND OUTBUILDINGS AT CROWN ALLOTMENT 17, SECTION 4, PARISH OF CASTLEMAINE, 21 TEMPLETON STREET, CASTLEMAINE


1. Purpose

The purpose of this report is to enable Council to make a determination on an application for the demolition of a dwelling and outbuildings at CA17 Sec 4, 21 Templeton Street, Castlemaine. The application has been referred to Council for a decision because the officer recommendation is to refuse the application.

Refer to:

Attachment ECO 15A: Context and site aerial with photographs and Plans submitted with application.

2. Background

The application was lodged on 29 April 2013 and proposes to remove the existing dwelling and outbuildings on the site and to relocate the dwelling to an undetermined location. The correct planning description is for the demolition of the dwelling and outbuildings.

The subject site is located to the north of the Commercial zoned area of Castlemaine. The site is a typical 1000 m² block with a 20 metre frontage to the north side of Templeton Street and extending for a depth of 50 metres.

The site is developed with a Californian bungalow architectural style dwelling setback seven metres from the street frontage. There are two large outbuildings to the rear of the dwelling. Vehicle access to the site is from Templeton Street along the west boundary.

The land is Commercial 1 Zone and covered by a Heritage Overlay – HO667 Castlemaine Central Conservation Area.

Surrounding sites to the west, south and east are located within the Commercial 1 Zone and are generally utilised for a range of commercial and recreational activities with some scattered residential uses. Land to the north is located within the Residential 1 Zone and is generally utilised for residential purposes.

The application was submitted without any supporting submission that might provide justification for the removal of a building affected by a Heritage Overlay. Further information was requested and provided that suggested the proposed vacant site may be developed with a medium density residential mews type complex.




Clause 15.03-1 Heritage conservation

The objective of this policy is to ensure the conservation of places of heritage significance.

Strategies to achieve this goal include:

• Identify, assess and document places of natural and cultural heritage significance as a basis for their inclusion in the planning scheme;

• Provide for the protection of natural heritage sites and man-made resources and the maintenance of ecological processes and biological diversity;

• Provide for the conservation and enhancement of those places which are of, aesthetic, archaeological, architectural, cultural, scientific, or social significance, or otherwise of special cultural value;

• Encourage appropriate development that respects places with identified heritage values and creates a worthy legacy for future generations;

• Retain those elements that contribute to the importance of the heritage place; • Encourage the conservation and restoration of contributory elements. • Ensure an appropriate setting and context for heritage places is maintained or

enhanced; and • Support adaptive reuse of heritage buildings whose use has become

redundant.

It is policy that planning must consider as relevant the findings and recommendations of the Victorian Heritage Council.

Officer comment

Refer to Heritage Advisor advice in Section 3 of this report.

Municipal Strategic Statement (MSS)

The Municipal Strategic Statement sets out the future directions for the Shire and states objectives and strategies for how key issues may be addressed.

21.04-2 Strengthening Castlemaine’s Regional Role

Castlemaine is a heritage town of local, regional and State significance. The Central Conservation Area is possibly of national significance. Heritage protection is a priority issue and a major challenge at a time when Castlemaine is experiencing unprecedented development pressures.

This clause also provides for future growth with the aim to ensure that business zonings are appropriately related to the role of each town centre and the anticipated population growth in the catchment area.

21.04-5 Built and Cultural Heritage

The cultural heritage of the Shire is recognised as outstanding. The pre-eminent historic theme and significance of the Shire lies in the concentrated evidence in the landscape of successive phases of gold mining and associated patterns of settlement, particularly the clear evolution from transient gold mining sites to permanent townships. The spatial relationships, condition and integrity of remnant


structures, types of structures and their distribution contribute to the unique character of the Shire.

Officer comment

The dwelling at 21 Templeton Street has been identified by Council’s Heritage Advisor as an excellent example of the California bungalow architectural style which is under represented in Mount Alexander Shire.


Clause 22.01 – 2 Commercial Development

Objectives • The primacy of the Castlemaine Central Business District will be protected by

reinforcing the role of the centre and accommodating commercial development within the existing commercial precinct.

• The rezoning of land for Business purposes involving substantial retail activities outside the existing commercial business area will not be considered.

• The redevelopment of land within the existing retail area will be encouraged.

Policy

It is policy that when considering applications for use and development in the Castlemaine Central Business District the following should be considered: • the surrounding environment; • its location along roads, both major and minor; • the streetscape landscape features; • height, scale, mass and colour to reflect building forms and types that are

typical to the area; and • any comments from Council’s heritage adviser.

Future commercial development is located in Castlemaine’s retail and commercial activity centre so as to strengthen the role of the town as a regional service centre.

The restoration of shopfronts and sympathetic streetscape design is supported.

Further redevelopment of the central business district will need to reflect the existing character of the centre, especially aspects of car parking, street furniture, pavements, lighting, tree planting and streetscape aesthetics.

Officer comment

While this application is only for demolition of the dwelling, it has been suggested that the primary re-use of the land is desired to be residential. Residential use and development in the Commercial 1 Zone is an allowable land use, however the key intent of the zone is for commercial purposes. It would not be desirable to remove the subject land from the potential for commercial purposes. Future requirements for commercial land are likely to be greater than now and need to be considered.

Clause 22.01 - Castlemaine Central Conservation Area (identified as HO667)

Key policy of this clause states: • The remaining evidence of buildings and works of the Victorian and Edwardian

era are preserved.


• All new development is compatible and in harmony with the character of the area.

• Any maintenance and refurbishment of building facades will enhance the character of the area.

Officer comment

The emphasis of the protection of buildings and works of the Victorian and Edwardian era probably comes from the time of the architectural study of Castlemaine undertaken in 1979 which focused solely on early settlement associated with the gold mining past.

Council’s Heritage Advisor has identified that the building at 21 Templeton Street is an excellent example of later settlement pattern, considered a contributory element to the streetscape, which would be identified in any subsequent heritage study as significant to the precinct.

Cause 22.20 Natural and Cultural Heritage

This policy applies to all buildings, works, sites and landscapes of local natural and cultural significance, including those buildings or places which are listed in the schedule to the Heritage Overlay.

Mount Alexander Shire exhibits important natural and cultural heritage which is fundamental to the Shire’s character and attractiveness as a place to live, invest and visit.

These natural and cultural assets include buildings, streetscapes, remnants of settlements, mining sites, sites of aboriginal cultural significance and significant landscapes and natural features.

This heritage is highly valued by the community and the conservation, protection and maintenance of this heritage is an important objective of Council.

The objectives of this clause seek to: • Ensure that the Shire’s local heritage is preserved and maintained; • Ensure that new uses and developments are of a type which are in harmony

with, and complement the historic and architectural integrity, character and appearance of the surrounding buildings, works, site or landscape;

• Recognise the buildings, works, sites and landscapes which are of local historical and architectural significance and the role they play and the need to ensure their preservation and maintenance; and

• Identify and protect places, items and sites of Aboriginal cultural heritage.

Relevant policy states that Council will have regard for comments from Council’s Heritage Adviser or any other Council appointed heritage advisory board or committee when considering any application for land use and development of a heritage building, site or area.

Officer comment

Though the building at 21 Templeton Street is not individually listed, the land is included in the Castlemaine Central Conservation Area Heritage Overlay and is considered a building that contributes to the significance of the heritage place, and precinct.


Zoning

Residential 1 Zone

The site is located within the Residential 1 Zone. Demolition is exempt from the requirement for a planning permit under the provisions of Clause 62.02-2 unless specifically required.

Planning permission is not triggered by the R1Z.

Overlays

Heritage Overlay

The site requires a planning permit under the provisions of the Heritage Overlay which affects the land. The purpose of the overlay is:

• To implement the State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies;

• To conserve and enhance heritage places of natural or cultural significance; • To conserve and enhance those elements which contribute to the significance

of heritage places; • To ensure that development does not adversely affect the significance of

heritage places; and • To conserve specifically identified heritage places by allowing a use that would

otherwise be prohibited if this will demonstrably assist with the conservation of the significance of the heritage place.

The relevant decision guidelines of the Heritage Overlay require that consideration must be given to whether the proposal will adversely affect the significance, the character or appearance of the heritage place, any applicable statement of significance, heritage study and any applicable conservation policy and whether the demolition, removal or external alteration will adversely affect the significance of the heritage place.

The site is located within the Castlemaine Central Conservation Area which has a range of heritage buildings that have an identified significance. Within this precinct it is policy that:

• The remaining evidence of buildings and works of the Victorian and Edwardian era are preserved;

• All new development is compatible and in harmony with the character of the area;

• The height of the major horizontal and vertical elements of any near building shall be in alignment with those of its neighbouring buildings, except with the permission of the responsible authority;

• The building line for any new building should be that of the existing buildings in the street. Where this line is not uniform, it should be the line of the adjoining neighbouring building whose setback is the greater;

• The design of new buildings should be in harmony (rather than in contrast) with other buildings in the vicinity in terms of size, proportion and distribution of openings and other elements;

• The choice of materials for new buildings should harmonise with the materials that create the character of Castlemaine and should also aim to harmonise with the materials of neighbouring buildings; and


• Particularly bright or synthetic colours designed to create extreme contrast and hence to draw particular attention to the premise concerned shall not be permitted.

The common intent of this policy is to retain evidence of early historical development of the town and to prevent development that dominates or detracts from the integrity of the heritage character of the area.

The application has been referred to Council’s Heritage Advisor and the following response returned:

“The present assessment of HO667 does not identify contributory and non-contributory properties but merely gives a boundary within which there may be individually significant places. 21 Templeton Street is a contributory place to HO667, and therefore it is difficult to support the removal of the house and total redevelopment of the site. Heritage Victoria provides the following guidance in this regard. Precincts Within a heritage area or precinct, the main objective is to ensure conservation of elements that contribute to the area’s significance. Not every building or landscape element will be significant. Removing or altering non-contributory elements or developing these sites is not usually a major concern. It’s important that where development occurs, it occurs in a manner appropriate to the significance, character and appearance of the heritage area. Demolition The primary purpose of the Heritage Overlay is to protect the heritage significance of a building, place or area. If the heritage place is significant, or if it contributes to the significance of an area, a permit for demolition may be refused. It is my view that this building does contribute to the significance of the precinct through its authenticity and quality as a fine example of an inter-war bungalow residence. Consequently I would not be supportive of its demolition or removal.

Council’s Heritage Advisor has also highlighted the document The Heritage Overlay Guidelines, Chapter 4 – Removal and relocation which contains the guidance that within a Heritage Place covered by an Area Heritage Overlay, the significant parts of contributory elements to a heritage place should be retained for cultural heritage significance to be conserved. Accordingly, relocation of the whole of a building which is a contributory element generally has an adverse effect on the significance of a heritage place, and should only occur in limited circumstances.

4. Issues

The application was referred to Council’s Heritage Advisor who recommended that the application for demolition not be supported as the building contributes to the significance of the precinct through its authenticity and quality as a fine example of an inter-war bungalow residence.

Officer response


The building at 21 Templeton Street, Castlemaine is a rare example of mid-war development, the exterior provides an excellent example of the details and treatments typical of this architectural era, and appears in good structural condition.

The application does not include justification for the removal of this contributory element from the heritage precinct.


Cost of potential appeal to the Victorian Civil and Administrative Tribunal should this matter proceed to appeal.

6. Consultation

Advertising

Section 52 (1) of the Planning and Environment Act 1987 states ‘Unless the Responsible Authority requires the applicant to give notice, the Responsible Authority must give notice of an application in a prescribed form (a) to the owners (except persons entitled to be registered under the Transfer of Land Act 1958 as proprietor of an estate in fee simple) and occupiers of allotments or lots adjoining the land to which the application applies unless the responsible authority is satisfied that the grant of the permit would not cause material detriment to any person’. However Section 52 (1A) allows the Responsible Authority may refuse an application and, if it does so, it does not have to comply with subsections (1) and (1AA) [1]. For this reason the application was not advertised.

External Referrals

• Nil.

Internal Referrals

• Council’s Heritage Advisor – refer to previous comments in this report.

7. Conclusion

It is considered that the applicant has not demonstrated that the demolition of this dwelling and associated outbuildings is warranted.

Council’s Heritage Advisor has advised that the building is considered to be an excellent example of the California bungalow style, within this heritage precinct.

On this basis it is recommended that the application be refused on a number of grounds.

http://www.austlii.edu.au/au/legis/vic/consol_act/paea1987254/s3.html#owner

http://www.austlii.edu.au/au/legis/vic/consol_act/tola1958160/

http://www.austlii.edu.au/au/legis/vic/consol_act/paea1987254/s3.html#occupier

http://www.austlii.edu.au/au/legis/vic/consol_act/paea1987254/s3.html#land

http://www.austlii.edu.au/au/legis/vic/consol_act/paea1987254/s3.html#permit


RECOMMENDATION

That Council issues a Refusal to Grant a Planning Permit for the demolition of a dwelling and outbuildings at CA17 Sec 4, 21 Templeton Street, Castlemaine for the following reasons:

1 The proposal is contrary to the key intent and objectives of the Heritage Overlay;

2 The proposal is contrary to policy relating to heritage protection in the Mount Alexander Planning Scheme, including Clause 15.03-1 Heritage Conservation, Clause 21.04-5 Built and Cultural Heritage, and Local policies Clauses 22.01 and 22.20; and

3 The proposal is inconsistent with the objectives and guidelines of the Commercial 1 Zone.


ECO 16 PLANNING PERMIT APPLICATION 233/2013 – USE OF THE LAND FOR A COMMUNITY MARKET, PLACE OF ASSEMBLY, RESTAURANT, VARIOUS ASSOCIATED LIQUOR LICENCES, REDUCTION OF CAR PARKING (126 CAR PARKS DOWN TO 87 CAR PARKS) AND BICYCLE FACILITY REQUIREMENTS, AND BUILDINGS AND WORKS ASSOCIATED WITH THE CONSTRUCTION OF CAR PARKING AT CROWN ALLOTMENT 23B, SECTION 115, PARISH OF CASTLEMAINE, 36 – 48 BOWDEN STREET, CASTLEMAINE


1. Purpose

The purpose of this report is to enable Council to make a determination on an application to use the land at Crown Allotment 23B, Section 115, Parish of Castlemaine, 36 – 48 Bowden Street, Castlemaine for a community market, place of assembly, restaurant, various associated liquor licences, associated reduction of car parking (126 car parks down to 87 car parks) and bicycle facility requirements, and buildings and works associated with the construction of car parking.

The application has been referred to Council for a decision as there are six outstanding objections to the granting of a planning permit.

This is a further report to Council following an applicant objector meeting held on 2 April 2014, as previously resolved by Council.

Refer to:

Attachment ECO 16A: Site and Context Aerial Attachment ECO 16B: Plans submitted with application

2. Background

The subject site is situated in the north-west section of the town of Castlemaine. It is approximately 500 metres from the centre of town, 150 metres from the railway station, 100 metres from the sporting ground and 50 metres from the Railway Hotel.

The subject land lies within the Residential 1 Zone (R1Z) and is affected by a Heritage Overlay (HO600) which is also registered on the Victorian Heritage database (VHR990). The schedule to the Heritage Overlay identifies the site as one where prohibited uses may be permitted.

The site of 1.7 hectares is an irregular rectangle aligned on an east west axis measuring approximately 150 metres x 120 metres. The site is generally elevated above surrounding streets and has a levelled area to the north and west, falls moderately in the south-west corner and dramatically to the east.

The site has been developed and used for penitentiary purposes (the old Gaol) from 1857 until it was decommissioned in 1990. The sandstone and red brick building was developed on the Pentonville model of prisons and consists of radial wings extending from a central hall with exercise yards enclosed within tall razor-wired red brick walls. Subsequent uses have been as a hotel, tourist attraction, restaurant and a venue for the local radio station.


The site is bounded by Edward Street to the north, Bowden Street to the west, Charles Street to the south and six residential properties adjoin the east property boundary.

Proposal

The application was lodged on 14 October 2013 and proposes to use the land for a community market, a place of assembly (public, private and restricted), restaurant, various associated liquor licences and associated reduction of car parking and bicycle facility requirements.

It has been proposed that uses be limited to specific days and times and that multiple uses are further limited so that all uses proposed are not operating at full capacity together. This approach will assist with the more efficient use of on-site car parking.

An amended proposal was submitted 4 April 2014 reducing the use of the site in terms of number of patrons and opening hours.

The community market is proposed as operating on a maximum of four occasions per year on a Saturday or a Sunday from 9.00 am to 4.00 pm.

The place of assembly is proposed to operate for a maximum of two occasions per week for private functions between the hours of 5.00 pm and 12.00 midnight (the same day) on a Friday or Saturday only.

For public functions (performance, exhibitions, etc.) operations will be between the hours of 5.00 pm to 11.00 pm on a Friday or Saturday for indoor functions and between the hours of 6.00 pm to 10.00 pm on a Thursday, Friday or Saturday and between 12.00 midday and 6.00 pm on a Sunday for outdoor functions.

A restricted place of assembly is proposed to operate between 9.00 am and 9.00 pm daily. The purpose of this space is for meetings of teams, community groups, clubs, etc.

The restaurant is proposed to operate from Sunday to Thursday from 8.00 am to 5.00 pm and on Friday and Saturday from 8.00 am until midnight.

Especially relevant is that no more than 220 persons will be on the site at any one time.

Car parking is proposed on the site for 87 car spaces around the east, north and west of the wall. Some levelling of the site required to the west of the building, associated fencing or bollards may be required.

The application was advertised pursuant to the provisions of the Planning and Environment Act, 1987. During the notice period objections have been received from six households and not withdrawn.

The application was put before Council for a determination 11 March 2014. Council determined to defer a decision to allow an applicant objector meeting to be convened.

An applicant objector meeting was held 2 April 2014. Subsequent to this meeting the applicant has submitted an amended proposal reducing numbers of patrons and opening hours.





Clause 15.03 Heritage

The objective of this clause is to ensure the conservation of places of heritage significance.

A particularly relevant strategy to this proposal is to support adaptive reuse of heritage buildings whose use has become redundant.

Clause 17 Economic Development

Planning should provide for a strong and innovative economy, and contribute to the economic wellbeing of communities and the State by supporting and fostering economic growth.

This proposal seeks to meet this objective as generally outlined below.

Clause 17.01-1 Commercial/Business

This clause seeks to encourage development which meets the communities’ needs for retail, entertainment, office and other commercial services and provides net community benefit in relation to accessibility, efficient infrastructure use and the aggregation and sustainability of commercial facilities. Clause 17.03-1 Facilitating tourism

This clause seeks to encourage tourism development to maximise the employment and long-term economic, social and cultural benefits of developing the State as a competitive domestic and international tourist destination.

Strategies to achieve this goal include to encourage the development of a range of well-designed and sited tourist facilities, including integrated resorts, motel accommodation and smaller scale operations such as host farm, bed and breakfast and retail opportunities; seek to ensure that tourism facilities have access to suitable transport and be compatible with and build upon the assets and qualities of surrounding urban or rural activities and cultural and natural attractions.

Tourism is an increasingly important contributor to the economy of the Mount Alexander Shire. The Old Gaol complex offers a rare and distinctive venue for the promotion of tourism and opportunities to stimulate economic development. The location within a residential neighbourhood requires that potential off site impacts be managed to retain amenity.

Municipal Strategic Statement (MSS)

Clause 21.01 Overview of the Mount Alexander Shire

This clause identifies that new opportunities exist in the expansion of cluster industries, such as the modified motor vehicle sector, the arts, tourism, special engineering and the “land repair” sectors and provision will be made to encourage the development of these and other emerging sectors. It recognises that tourism is a growing industry, which is built around heritage, gardens, festivals and events. This proposal seeks to meet this objective as generally outlined below.


Clause 21.03 Municipal Vision and Framework Plan

This clause sets out the land use planning and development vision for the Shire. It acknowledges the importance of places and areas of natural and cultural heritage and states that the land use planning and development vision for the Shire will be achieved in part, by “facilitation of economic development opportunities”.


Clause 22.01 Castlemaine

Castlemaine is acknowledged as an important cultural centre, especially in the arts and heritage areas. Castlemaine contains a unique collection of heritage buildings and significant streetscapes which contribute to the unique character of the town.

Clause 22.20 Natural & Cultural Heritage

This clause recognises that heritage is highly valued by the community and the conservation, protection and maintenance of this heritage is an important objective of Council. It is policy to ensure that the Shire’s local heritage is preserved and maintained and most relevantly, alternative uses of heritage buildings or places will be considered to achieve the protection of significant buildings.

Officer comments on policy context

This application is submitted as an interim proposal, prompted by the need to secure an income generation to continue with the extensive repair and restoration works that are required to be undertaken on the buildings at this site.

The Old Gaol complex proposes to offer a venue for events that is currently not available in Castlemaine. The proposed use accords with policy, listed above, encouraging the expansion of tourism ventures within the Shire and has the added bonus of contributing to the restoration of a significant heritage place.

The allowance within the planning scheme for permitting prohibited uses at significant heritage places recognises the limiting constraints often imposed by these old buildings and the sometimes enormous financial burden for the owners.

However, the benefits of the proposal need to be balanced against the potential detriment to the amenity of the surrounding residential neighbourhood and the needs of residents.

The revised proposed hours of operation and corresponding Liquor Licences would allow 220 patrons on the premises which would be open until 10.00 pm on a Thursday, and on Friday and Saturday until 12.00 midnight, as well as the restaurant open until midnight.

Surrounding residents suggest that these opening hours mean that patrons could still be leaving the premises up until an hour later. Objectors have suggested that more appropriate opening hours might be until 10.00 pm, 11.00 pm, or 11.30 pm.

Only a few other venues in Castlemaine have a Liquor Licence that extends to 1.00 am. The nearby Railway Hotel does. However, it has a maximum patron capacity of 100 persons


Zoning

Clause 32.01 Residential 1 Zone (R1Z)

The purpose of the residential 1 zone is to implement the State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies; to provide for residential development at a range of densities with a variety of dwellings to meet the housing needs of all households; to encourage residential development that respects the neighbourhood character; and in appropriate locations, to allow educational, recreational, religious, community and a limited range of other non-residential uses to serve local community needs.

The planning scheme does not offer any decision guidelines against which the range of land uses must be assessed, nor for the assessment of the works that may be associated with the construction of the car parking. Clause 65 sets out matters that must be considered for any application, relevant considerations include the purpose of the zone, overlay or other provision; any matter required to be considered in the zone, overlay or other provision; the orderly planning of the area; and the effect on the amenity of the area.

The Residential 1 Zone does allow for the consideration of uses that are not residential, to be considered in the context of the site and surrounds. It is recognised there is potential for a negative impact on the amenity of the area. Any planning permit that may issue requires conditions to control such impacts.

Overlays

Heritage Overlay – HO600

The purpose of this clause is to implement the State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies; to conserve and enhance heritage places of natural or cultural significance; to conserve and enhance those elements which contribute to the significance of heritage places; to ensure that development does not adversely affect the significance of heritage places; and again of particular relevance, to conserve specifically identified heritage places by allowing a use that would otherwise be prohibited if this will demonstrably assist with the conservation of the significance of the heritage place.

The Old Gaol is affected by Heritage Overlay HO600 and is also listed on the Victorian Heritage Register. Clause 43.01-2 states that no permit is required under this overlay... to develop a heritage place which is included on the Victorian Heritage Register.

Any buildings or works associated with the construction of the car parking will not be assessed by Council under the provisions of the Heritage Overlay. A permit for works will be required from Heritage Victoria.

Clause 43.01-5 allows that a permit may be granted to use a heritage place (including a heritage place which is included on the Victorian Heritage Register) for a use which would otherwise be prohibited if all of the following apply:

• The schedule to this overlay identifies the heritage place as one where prohibited uses may be permitted;

• The use will not adversely affect the significance of the heritage place; and


• The benefits obtained from the use can be demonstrably applied towards the conservation of the heritage place.

The schedule to the overlay identifies the site as one where prohibited uses may be permitted.

The applicants originally considered proposing a “market”, prohibited in the Residential 1 Zone but permitted under the provisions of this Clause. For the ease of assessment the application stipulated “community market” which is a Section 2 use in the R1Z, however limited in its operation.

Particular provisions

Clause 52.06 – Car Parking

The relevant purpose of this clause is to ensure that car parking is provided in accordance with the State Planning Policy Framework and Local Planning Policy Framework; to ensure the provision of an appropriate number of car parking spaces having regard to the demand likely to be generated, the activities on the land and the nature of the locality; to support sustainable transport alternatives to the motor car; to promote the efficient use of car parking spaces through the consolidation of car parking facilities; to ensure that car parking does not adversely affect the amenity of the locality; to ensure that the design and location of car parking is of a high standard, creates a safe environment for users and enables easy and efficient use.

Clause 52.06-3 requires a planning permit to reduce (including reduce to zero) the number of car parking spaces required under Clause 52.06-5 or in a schedule to the Parking Overlay.

The number of car parking spaces required for this site has been calculated against the provisions of the planning scheme as part of the revised application. These are outlined below.

Community market – eight car spaces per 100 m² of market area (1110m² total market area) and one visitor bike parking space to each 10 stalls (maximum 32 stalls), requirement is for 89 car spaces and three bike parking spaces.

Place of assembly (larger events with 220+ patrons limited to 12 occasions per calendar year) – 0.3 car spaces per patron permitted (300 maximum patrons), requirement for 90 car spaces and four bike car parking spaces.

Restaurant - 0.4 car spaces per patron permitted (maximum 70 patrons), requirement for 28 car spaces and 2 bike parking spaces.

The plans submitted with the application indicate 87 on site car spaces available for regular use events. It is not clear that all these can be constructed to appropriate construction standards.

The plans also indicate an extra 20 car spaces available for overflow use when 220+ patrons are in attendance. These car spaces are proposed on a grassy slope; construction plans have not been submitted to indicate that this area can in fact be constructed with car parking to appropriate standards. These overflow car spaces are not considered adequate.


The applicant has calculated a maximum car parking requirement for regular events as a total of 94 car spaces – 66 for the place of assembly and 28 for the restaurant.

For the sixteen occasions per calendar year when the number of patrons is expected to exceed 220, provision of car parking remains uncertain.

Clause 52.07 - Loading and unloading of vehicles

The purpose of this zone is to set aside land for the loading and unloading of commercial vehicles to prevent loss of amenity and adverse effect on traffic flow and road safety.

There is ample area available on the site for the requirements of this clause.

Clause 52.27 – Licensed Premises

This clause recognises the potential for detrimental impacts from patrons of licensed premises that may be inappropriately sited. It seeks to ensure that licensed premises are situated in appropriate locations and to ensure that the impact of the licensed premises on the amenity of the surrounding area is considered.

The decision guidelines require consideration of the following specific matters:

• The impact of the sale or consumption of liquor permitted by the liquor licence on the amenity of the surrounding area;

• the impact of the hours of operation on the amenity of the surrounding area; • the impact of the number of patrons on the amenity of the surrounding area,

and the cumulative impact of any existing licensed premises and the proposed licensed premises on the amenity of the surrounding area.

The liquor licences that will be required are a Restaurant and café licence which allows on premises sale and consumption and requires that seating is available for 75% of patrons, and a Renewable limited licence or the place of assembly.

Objections from surrounding residents highlight the impacts of uncontrolled patron behaviour resulting in offensive behaviour, littering and vandalism when patrons are leaving premises in a state of intoxication.

A patron management plan is recommended for this proposal which will be required, stipulating the measures that will be undertaken to control patron behaviour on and off the premises, including inspecting the neighbourhood for littering and vandalism.

Clause 52.34 Bicycle Facilities

The purpose of this clause is to encourage cycling as a mode of transport and to provide secure, accessible and convenient bicycle parking spaces and associated shower and change facilities.

The application has acknowledged the requirement for bike spaces to be provided, conditions will be imposed on the permit to encourage green transportation and to maximise bike parking spaces.


4. Issues

Outstanding objections to the application

Following advertisement of the application in accordance with Sections 52(1)(a) and 52(1)(d) of the Planning and Environment Act 1987, objections were received from six households. A further four objections have since been submitted.

Issues raised are summarised below with a comment from the assessing officer.

Car parking in surrounding streets could impact on traffic flow and pose a danger for vehicles. Overflow on street car parking will negatively affect street trees and the amenity of neighbouring properties.

The plans submitted with the application indicate 87 car spaces on the site, almost the statutory requirement. It is recognised that at time of maximum capacity, the number of occasions when this is likely is further restricted to 12 public functions and four community markets in any one calendar year. A travel and traffic management plan is also required to address this concern.

The 1.00 am closing hour is too late and is likely to result in patrons dispersing until 2.00 am, objections suggest 10.00 pm, 11.00 pm or 11.30 pm as an appropriate closing time.

If the facility is operating at full capacity, there could be up to 118 vehicles leaving the premises after midnight, it is considered this could cause an unreasonable impact on the residential amenity of the neighbourhood. A closing hour of 11.00 pm for all activities would seem more appropriate. As with any planning permit, there is an opportunity to seek an amendment to the planning permit to allow later trading hours at a later date, if a positive record of events and management of the site, has been established.

Proposed gravel surfacing of proposed car parks will create the potential for dust.

The proposed car parking spaces will be required to be constructed to relevant standards determined by Council’s Infrastructure Unit.

Littering and vandalism around the site by patrons leaving the premises poses a clean-up cost that may be borne by ratepayers.

Again, the responsibility for the clean-up of litter in the surrounding neighbourhood, after an event, can be imposed onto the managers of the venue.

Castlemaine already has an abundance of coffee shops, markets and arts/music/crafts.

This is not a planning consideration, but a matter for market forces to control.

Liquor licensing in a residential area is inappropriate and likely to lead to bad behaviour by intoxicated patrons.

Given the proximity of the venue to the Railway Hotel and reports of bad patron behaviour as they leave this venue, this is a serious consideration. Conditions can be imposed requiring the land owners or managers of facilities to be responsible for limiting off site impacts.

Opening hours are therefore restricted to 11.00 pm for all uses.


Neighbouring landowners are doctors, both providing on call After Hours Medical care, who require safe unobstructed access and exit to and from their property.

It would be required to address this matter in the travel management plan.


Cost of potential appeal to the Victorian Civil and Administrative Tribunal should this matter progress to appeal.

6. Consultation

Advertising

Notice of the application was given in accordance with Sections 52(1)(a) and 52(1)(d) of the Planning and Environment Act 1987 to owners and occupiers of adjoining land and. A sign was also placed on-site.

Local radio, newspaper and television reported the sale of the gaol and a website has been set up by the owners with the express intention of advertising the Interim Uses proposal. http://www.oldcastlemainegaol.com.au/

A public information session was held by the owners in November 2013 to inform the community of the proposal.

Applicant-objector meeting

An applicant objector meeting was held on 2 April 2014 to try to achieve a resolution to objections. It appeared clear that most objectors attending the meeting were generally happy with hours of operation reduced to an 11.00 pm closing time.

The applicant also had some concerns with conditions proposed to be imposed on any permit that may have issued. The applicant suggested that it likely the facility would be utilised to maximum patron capacity on only a limited number of occasions per year and suggested therefore that a reduced car parking requirement could be considered.

An amended proposal was subsequently submitted limiting the number of patrons on the site at any one time and reducing the late night operating hours. The amended proposal was distributed to objectors. Two responded requesting that operating hours be restricted to no later than 11.00 pm and suggesting that overflow car parking arrangements were adequately addressed.

7. Conclusion

Council has received an amended application to use the land for a community market, place of assembly, restaurant, various associated liquor licences, associated dispensation of car parking & bicycle facility and buildings and works associated with the construction of car parking requirements at CA 23B, Sec 115, Parish of Castlemaine, 36-48 Bowden Street, Castlemaine.

In assessing this proposal consideration must be given to relevant state and local policy, the purpose and decision guidelines of the zone and overlay, the policy framework of the planning scheme, the impact (positive and negative) the proposed development may have on the significance of the heritage place, any un-

http://www.oldcastlemainegaol.com.au/


reasonable off-site amenity impacts, the waiver of car parking requirements and the possible impact of licensing the premises.

All the proposed uses are allowed as discretionary in the Residential 1 Zone. The Heritage Overlay nominates the place as one where prohibited uses may be permitted if it can be demonstrated that the heritage building will benefit from that use.

The Old Gaol is currently an underutilised building requiring extensive ongoing maintenance. The enormity of the building offers scope for events that are hard to facilitate elsewhere in the town or even Shire.

The proposal generally complies with the policy framework and the intent of the planning scheme and especially with the restoration and conservation of significant heritage buildings.

It is acknowledged that the proposed use will have some impacts on the residential neighbourhood. Conditions can be imposed to control and mange patron behaviour and drunkenness, and traffic and car parking in the neighbourhood.

These conditions have been reviewed following the applicant objector meeting and amended where considered appropriate.

The proposal has been assessed against the relevant state and local policy and decision guidelines of the relevant zone and overlay. The proposal generally complies with the intent of the Mount Alexander Planning Scheme.

RECOMMENDATION

That Council issue a Notice of Decision to Grant a Planning Permit to Use the subject land for a community market, Place of assembly, Restaurant, various associated liquor licences, associated reduction of car parking (126 car parks down to 87 car parks) and bicycle facility requirements at Crown allotment 23B, Section 115, Parish of Castlemaine, 36 – 48 Bowden Street, Castlemaine subject to the following conditions:

1. NO LAYOUT ALTERATION 1.1 The use and development allowed by this permit as shown on the endorsed

plan(s) and/or described in the endorsed documents must not be altered or modified (for any reason) except with the prior written consent of the Responsible Authority.

2 TRAVEL, TRAFFIC AND PARKING MANAGEMENT PLAN 2.1 Prior to commencement of the use hereby permitted, a Travel Management

Plan must be submitted to and approved by the Responsible Authority. The Plan must incorporate, as a minimum, actions to manage: • on site car parking including the identification and management of

regular use and periodic use of car parking areas, • traffic generation on nearby streets, • traffic movements and patron movements associated with the site, • traffic movements through the site, • deliveries to and from the site, • vehicle movements involved in setting up or disassembly of events,


• to promote use of public transport and green travel measures including bike riding and pedestrian travel (including the potential for an upgrade of the Governor’s Walk),

• overflow car parking in side streets (a telephone number of an on-duty staff member must be provided to residents, in the event that on-street car parking causes an inconvenience).

• Provision for a reporting and review process undertaken 12 months following the commencement of the use if requested by the Responsible Authority.

The site must thereafter operate in accordance with the approved Travel Management Plan, to the satisfaction of the Responsible Authority.

3 PATRON MANAGEMENT PLAN 3.1 Prior to commencement of the use hereby permitted, a Patron Management

Plan must be submitted to and approved by the Responsible Authority. When approved, the plan will be endorsed and will then form part of the permit. All activities forming part of the use must comply with the plan. The plan must include: • how patron numbers will be controlled and monitored including entering

and leaving the site, • staffing and other measures which are designed to ensure the orderly

arrival and departure of patrons, • signage, fixed in a prominent position, to be used to encourage

responsible off-site patron behaviour, drawing attention to the requirements for considerate and quiet behaviour of patrons,

• the training of staff in the management of patron behaviour, • staff communication arrangements, • measures to control noise emissions and litter from the premises • the size and type of event during which use of a crowd controller(s) is

required, • where the Patron Management Plan will be displayed for staff and

patrons, • measures to control littering of surrounding streets and vandalism by

patrons leaving the premises, this will include an inspection, and clean-up if necessary, of the neighbourhood by a staff member on days following the use of the premises,

• how the Patron Management Plan will be implemented. • Provision for a reporting and review process undertaken 12 months

following the commencement of the use if requested by the Responsible Authority.

The site must thereafter operate in accordance with the approved Patron Management Plan, to the satisfaction of the Responsible Authority.

4 RESTRICTIONS ON PATRON NUMBERS 4.1 No more than 220 patrons are permitted to be in attendance on the site at

any one time, except for the 12 public functions permitted in any one calendar year when no more than 300 patrons may be in attendance, and on the occasion of the 4 community markets permitted in any one calendar year.

5 HOURS OF OPERATION AND RESTRICTIONS – COMMUNITY MARKET

5.1 Hours of operation for the community market are 9am-4pm on Saturdays or Sundays and only for a maximum of 4 occasions per year.


5.2 Loading/assembly/disassembly of equipment will occur only between 8am and 5pm on the market day or one day either side of the market day only.

5.3 No more than 32 market stalls are permitted at any one time. 5.4 The community market must be organised and run by community

organisations. 5.5 During community market operation, performances/exhibitions, functions or

meetings are not permitted. Tours may occur at the same time as a community market.

6. HOURS OF OPERATION AND RESTRICTIONS - PLACE OF ASSEMBLY

(General conditions applying to functions, performances/exhibitions, tours and meetings)

6.1 No more than one function, performance/exhibition or meeting may occur at any one time except where the total number of guests, patrons or members does not exceed 220 at any one time, or 300 on the 16 occasions per year stated in condition 4.1.

6.2 At all times during a function and/or performance/exhibition the permit holder must ensure that the front doors on the east elevation of the gaol remain closed.

6.3 No more than 100 guests or patrons are permitted to attend performances/exhibitions or functions solely utilising external spaces at any one time.

6.4 No amplified live music or broadcast is permitted except within the gaol walls during the hours of operation specified below.

6.5 No amplified live music is permitted in external spaces after 9.00 pm.

7. HOURS OF OPERATION AND RESTRICTIONS – PUBLIC EXHIBITION CENTRE (PERFORMANCES/EXHIBITIONS AND TOURS)

7.1 No more than 12 public functions exceeding 220 persons at any one time are permitted on the site in any one calendar year.

7.2 No more than two performances/exhibitions are permitted per week. 7.3 Indoor performances/exhibitions will have a three hour maximum duration

between the hours of 5.00 pm and 11.00 pm on Fridays and Saturdays. 7.4 Outdoor performances/exhibitions will have a two hour maximum duration

between the hours of 6.00 pm and 10.00 pm on Thursdays, Fridays and Saturdays and 12.00 pm and 6.00 pm on Sunday afternoons (except during market hours).

7.5 Liquor and food for immediate consumption is served one hour before, during and one hour after performances/exhibitions and only during the operating hours specified above, except where the appropriate liquor licence restricts.

8. HOURS OF OPERATION AND RESTRICTIONS – PRIVATE FUNCTION CENTRE (CONFERENCES, WEDDINGS AND PARTIES)

8.1 No more than two functions are permitted per week. 8.2 No more than 220 patrons are permitted to be in attendance at any one time. 8.3 Functions are permitted on Fridays and Saturdays only and are permitted to

operate between 5.00 pm and 11.00 pm on the same day. 8.4 Liquor and food for consumption may be served between 5.00 pm and 11.00

pm on the same day.


9. HOURS OF OPERATION AND RESTRICTIONS – RESTRICTED PLACE OF ASSEMBLY (CLUB MEETING SPACE)

9.1 No more than 100 members and guests are permitted to be in attendance at any one time.

9.2 Hours for team, community groups and club meetings are between 9am-9pm daily.

10. HOURS OF OPERATION AND RESTRICTIONS - RESTAURANT (GOVERNORS RESIDENCE)

10.1 Hours for restaurant trading are between 8.00 am and 5.00 pm Sunday to Thursday with extended hours on a Friday and Saturday night to 11.00 pm.

10. 2 Seats associated with the restaurant must be provided for 75% of patrons in the venue at any one time.

10.3 The maximum number of persons permitted in the restaurant must not exceed 70 with no more than 40 at any one time in internal spaces and 30 at any one time in external spaces associated with the restaurant.

11. SERVING AND CONSUMPTION OF ALCOHOL

a. The sale and consumption of alcohol must only occur in the approved areas within the hours of:

Cafe and Restaurant Licence (Governor’s residence):

8.00 am to 5.00 pm Sunday to Thursday (Excluding ANZAC Day),

8.00 am to 11.00 pm Friday and Saturday night (Excluding Good Friday),

12.00 noon to 11.00 pm on ANZAC Day and Good Friday.

Renewable Limited Licence:

8.00 am to 9.00 pm Sunday to Wednesday (Excluding ANZAC Day),

8.00 am to 11.00 pm Thursday, Friday and Saturday night (Excluding Good Friday),

12.00 noon to 11.00 pm on ANZAC Day and Good Friday.

12. NOISE CONTROL 12.1 The licensee shall ensure that the level of noise emitted from the licensed

premises shall not exceed the permissible noise levels for entertainment noise as specified in the State Environment Protection Policy (Control of Music Noise from Public Premises) No.N-2.

12.2 Noise level emanating from the premises must not exceed those required to be meet under the State Environment Protection Policy – Control of noise from Commerce, Industry and Trade) – No: N-1. Any form of public address where provided, must only be audible within the building or the site.

13. ACOUSTIC REPORT 13.1 Within six months of the uses commencing, a report by an appropriately

qualified acoustic engineer must be prepared to the satisfaction of the Responsible Authority. The report must include an assessment of the capability of the building to attenuate noise from mechanical


plant/equipment; music and patrons. The report must include a schedule of recommended measures and/or works required, to ensure compliance with State Environment Protection Policy (Control of Noise from Commerce, Industry and Trade) No. N-1 and State Environment Protection Policy (Control of Music Noise from Public Premises) No. N-2 and the timing as to when they are to be implanted. The recommendations set out in the report must be implemented to the satisfaction of the Responsible Authority.

14 INFRASTRUCTURE REQUIREMENTS

14.1 Prior to commencement of any construction works associated with the development, detailed access, car parking and drainage construction plans must be submitted to and approved by Council. When approved, the plans will be endorsed and form part of the permit. All works constructed or carried out must be in accordance with those endorsed plans.

14.2 The applicant shall submit scaled drawings to the satisfaction of Council’s infrastructure unit to demonstrate that vehicles accessing the property can enter and exit in a forward manner.

14.3 The land owner is required to formalise the open drain in Bowden Street and Charles Street so that overland flows are directed to the culvert at the corner of Bowden and Charles Streets, to the satisfaction of the responsible authority.

14.4 Provision must be made for the parking of more bicycles on the subject land to the satisfaction of Council with end of trip facilities for bicycle riders.

14.5 The unmade internal driveway sections to car spaces shall be constructed to appropriate engineering standards approved by council along with appropriate cut off table drains and cross culverts. The spray sealing of unmade sections of main access ways / aisles to the requirements and satisfaction of the infrastructure unit.

14.6 Unmade on-site parking areas must be treated to the satisfaction of Council’s Infrastructure Unit if complaints are received by Council regarding loss of amenity to the neighbourhood by the emission of dust or discharge of drainage.

14.7 Vehicle crossovers appropriate to the development and existing site conditions are to be constructed to the levels/requirements of Council including Low profile driveable culvert end-walls to all culvert ends.

14.8 Areas set aside for the parking of vehicles together with the aisle and access lanes must be properly formed to such levels that they can be utilised in accordance with the endorsed plans. The area must be constructed, drained and maintained in a continuously useable condition to the satisfaction of Council.

14.9 The boundaries of all car spaces, access and egress lanes and the direction in which vehicles should proceed along the lanes must at all times be clearly indicated on the ground and signs must be provided to direct drivers to the on-site car-parking areas to the satisfaction of Council.

14.10 The surface of the car parking areas together with aisles and access lanes must be treated to the satisfaction of Council so as to prevent loss of amenity to the neighbourhood by the emission of dust or the discharge of uncontrolled drainage.

14.11 The loading and unloading of vehicles and the delivery of goods must at all times be undertaken within the boundaries of the subject land.

14.12 In areas set aside for parking, kerbs, barriers, fences, retaining walls or other means of protection must be installed to the satisfaction of Council to ensure the maximum safety for the car parking and bicycle parking users.

14.13 The egress and ingress from internal roads to Council roads including the internal traffic movements are to comply with current traffic management practice in accordance with Australian standards.


14.14 Before the use starts, traffic and parking management plan to the satisfaction of the responsibility authority must be submitted to and approved by Council.

14.15 Sediment pollution Control The developer must restrict sediment discharges from any construction

sites within the land in accordance with Construction Techniques for Sediment Pollution Control (EPA 1991) and Environmental Guidelines for Major Construction Sites (EPA 1995).

14.16 Other All existing road reservation assets are to be protected and maintained

throughout the works including all utilities and services. Any damage is to be restored prior to issuing of statement of compliance.

14.17 Council is to be paid a fee of 0.75% of the total construction costs for these works for the approval of said plans plus 2.5% for supervision of construction. Said fees to be paid prior to commencement of any road/ drainage works.

14.18 Consent for constructions Prior to the commencement of any works on the road reserve the

owner/applicant must submit an application and be issued a permit to occupy the road for works pursuant to Local Laws No 2.

15 ENVIRONMENTAL HEALTH REQUIREMENTS

15.1 All areas where food is prepared for sale and/or is offered for sale must comply with the design and construction requirements of the Food Act 1984 and the Food Standards Code 2001.

15.2 Activities where food (including drinks) is prepared for sale and/or is offered for sale must have the appropriate Food Act registration or notification.

15.3 All food vendors selling food (including drinks) at the community market must hold the appropriate food notification or registration as per the requirements of the Food Act 1984.

16. SECURITY ALARMS 16.1 All security alarms or similar devices installed on the land must be of a

silent type in accordance with any current standard published by Standards Australia International Limited and be connected to a security service to the satisfaction of the Responsible Authority.

17. PLANT AND EQUIPMENT

17.1 Any plant, equipment or ancillary items including air conditioner units must be located within the walled area of the site and must not unreasonably impact the amenity of the dwellings on adjoining sites in compliance with the relevant State Environment Protection Policy.

18. EXTERNAL LIGHTING

18.1 All outdoor lighting must be designed, baffled and located to the satisfaction of the responsible authority such that no direct light is emitted outside the boundaries of the subject land and so that there is no light spilling into any residential properties. Any security lighting is to be connected to a sensor so that illumination of the site is not continuous.


19. WASTE MANAGEMENT PLAN

19.1 Prior to the commencement of the development, a Waste Management Plan specific for the development must be submitted to and approved by the responsible authority. Such a plan will include the following information;

• details of separation of resources to encourage waste minimisation in accordance with the State Government's Zero Waste Strategy;

• collection points within the development; • use of labour and mechanical equipment to satisfy occupational

health and safety requirements relating to waste collection; and • method and frequency of collection.

20. PERMIT EXPIRY – TIME FOR STRATING AND COMPLETION

20.1 This permit will expire if one of the following circumstances applies:-

(a) The use is not commenced within two years; or

(b) Three years from the date of this permit.

Council may extend the periods referred to if a request is made in writing before the permit expires or within six months afterwards.

PERMIT NOTES:

COMPLIANCE WITH BUILDING REGULATIONS The proposal will require permission for a change of use.


9.4. BUILDING SUSTAINABLE COMMUNITIES (COM)

COM 19 COUNCIL COMMITMENT TO LOCAL GOVERNMENT FUNDING VEHICLE

Responsible Director: Director Corporate Support Responsible Officer: Finance Manager Original Document: DOC/14/18488

1. Purpose

The purpose of this report is to recommend Council commit to participating in the inaugural issuance of the Local Government Funding Vehicle (LGFV) being undertaken by the Municipal Association of Victoria (MAV).

Council is required to advise MAV by 30 May 2014, whether it will commit to participating in the inaugural issuance of the LGFV. The LGFV provides a new source of funding for future Council borrowing requirements in addition to existing bank loans.

2. Background


MAV has progressed the establishment of a pooled borrowing vehicle on behalf of its 79 Victorian member Councils, namely the Local Government Funding Vehicle (LGFV). The objective of the LGFV is to raise funding from the public bond market on behalf of participating Councils, providing a more cost competitive financing solution to Victorian Councils.

The LGFV initiative arose following the Vision Super defined benefit superannuation shortfall identified in late 2011. A funding options evaluation was undertaken to review the debt procurement model of the sector. The purpose of this review was to determine the optimal funding platform to address the defined benefit shortfall and ongoing borrowing requirements of the sector.

MAV established a Defined Benefit Taskforce in response to the $453 million defined benefit shortfall to provide recommendations that will reduce the cost of the shortfall to Councils and reduce the risk of future calls arising. The first recommendation of the taskforce was to establish a working group to:

• develop detailed specifications for a debt placement; • prepare a tender for aggregated debt for the sector; • test the sector’s firm commitment to borrowing; and • ensure that transactional banking is excluded from the specifications.

Aggregated Borrowing

MAV engaged Ernst & Young’s (EY) independent Debt and Capital Advisory team to undertake a funding options analysis to evaluate available funding sources and structures to determine the optimal funding platform for Victorian Councils. The EY report identified significant savings could be achieved through aggregating Council borrowings, obtaining a credit rating on a pooled basis and subsequently issuing a bond into the wholesale bond market. Savings identified are as follows:


• Approximately a 100 basis point (i.e. 1%) reduction in the interest rate when compared to borrowing directly from banks through a tender process;

• For each $100 million of debt procured via the LGFV, the sector can save up to $10 million over a ten year period; and

• Based on the total sector debt of $1 billion, the LGFV could save the sector $100 million over ten years.

EY assisted MAV in establishing an interim funding facility in June 2013, through conducting a competitive tender on behalf of 23 Councils. The tender was highly successful and confirmed the benefits of scale and collective borrowing. The LGFV long term financing strategy was presented to Councils in November 2013, with 56 Councils responding positively to the expressions of interest (EOI) totalling in excess of $450 million of borrowing requirements. Based on the widespread Council support, MAV made the decision to proceed with the LGFV financing strategy on behalf of the sector.

Bank Commitment and Involvement

Commonwealth Bank of Australia and National Australia Bank were appointed by MAV as co-arrangers for the LGFV bond issuance following an EOI. MAV has worked with EY and the banks over the last two months to finalise the LGFV financing structure. MAV presented the final structure to Councils at the end of March 2014 advising that Council commitments for the inaugural July 2014 bond issuance were required by May 2014.

Section 144 of the Local Government Act confers upon Council the right to borrow money to enable Council to perform its functions, subject to the principles of sound financial management. A bond is a form of loan for the purposes of Section 144.

Future planned borrowings that would use the LGFV will still need to be approved by Council in the adopted budget for that year. Refinancing of existing borrowings does not need to be included in the budget.



Section 144 of the Local Government Act 1989, confers upon Council the right to borrow money to enable Council to perform its functions, subject to the principles of sound financial management. A bond is a form of loan for the purposes of Section 144.

Future planned borrowings that would use the LGFV will still need to be approved by Council in the adopted budget for that year. Refinancing of existing borrowings does not need to be included in the budget.

4. Issues

The bond market

A bond is simply a loan from another source – the wholesale bond market. Cheaper funding is available in the wholesale bond market than from banks for highly rated borrowers such as Councils. The investors (or lenders) in the bond market are institutional investors such as superannuation funds, banks and foreign governments. The bond market is a key source of funding for the Commonwealth Government of Australia, State Governments (e.g. Treasury Corporation Victoria) and major corporations. There are numerous examples of local government bonds


in other jurisdictions such as New Zealand, USA, Canada and Europe. The LGFV transaction is a market standard structure of “pooling” loans to access the bond market and is considered tried and tested.

Inter-generational savings

MAV Procurement has accessed the wholesale market to deliver savings to the Victorian Council sector in other tenders (e.g. purchase of plant). The LGFV represents a change in the debt procurement model which “cuts out the middle person” to deliver cheaper funding costs by going direct to the wholesale bond market. Banks currently borrow money from the wholesale bond market and on lend these funds to Councils but in the process add in a profit margin. Access to the wholesale bond market is achieved through the credit strength, collective bargaining, scale and diversification that the LGFV delivers.

The savings are estimated at approximately 100 basis points (i.e. 1%), with pricing savings expected to improve over time. The final pricing will be determined at the time of the first bond issuance via a wholesale market bidding process which ensures transparency, probity and best price. The wholesale market provides a step change improvement in pricing compared to borrowing rates available in the bank market.

LGFV loan terms

Aggregated purchasing arrangements lead to savings where there are standard terms. The first bond issue will be on a five and/or seven year basis with a fixed interest rate and repayment of interest only over the term.

Other terms and conditions such as security, conditions precedent, representations and warranties, covenants and undertakings, event of default and reporting requirements will be in line with existing standard terms in the bank market.

While the LGFV first bond issuance necessitates a change in how Councils borrow, the standardised terms proposed will drive an optimal pricing outcome and will be the most advantageous solution for the sector

Borrowing process

The borrowing process for Councils will be simplified under the LGFV. Councils submit a drawdown notice to the LGFV, with no requirement to undertake a tender to determine best price. Debt is available on an “as needs” basis during the year through a combination of regular bond issuances (annual or more frequently based on demand by Councils) and an ongoing interim finance facility which provides short term funding which will be refinanced through subsequent bond issuances.

Governance

The LGFV will be governed by a small board comprising of representative and independent skills based members, likely to include Council CEOs, or nominees, MAV and independent financial market experts. The skills possessed by board members will include technical expertise relevant to bond insurance (financial/legal).

The LGFV Board will be appointed by the MAV Board for a period of two years.


The role of the LGFV Board will include:

• Reporting to councils; • Risk management; • Market review and analysis; • Management / selection of service providers; and • Future and ongoing strategic decision making.

The LGFV Board terms of reference and composition will be finalised by MAV prior to the first bond issuance in July 2014.


Analysis suggests the LGFV will provide Councils with an approximately 100 basis point (i.e. 1%) reduction in the interest rate when compared to a tender process undertaken with the banking sector. This saving is significant when the borrowing amounts are considered.

The alternative to participation in the LGFV is for Councils to solely source funds via a tender process with the major banks on a bilateral basis, as the sector has done historically.

A one off payment to MAV of $4,000 is payable following confirmation of participation. MAV have invested heavily to date on upfront costs including Ernst and Young (financial advisor), Moody’s (credit rating) and legal costs.

For the first issuance of bond funding a fixed interest rate is applicable for the life of the bond and the repayments are interest only, on a quarterly basis.

Security for the bond is to comprise a mortgage over the rates of each individual Council. Each Council will borrow on an individual basis and so will only be liable for their portion of borrowings.

Principal is to be repaid on maturity, at either the five or seven year term.

6. Consultation

MAV has undertaken, on behalf of the 79 Victorian Councils, significant consultation through its Defined Benefits Taskforce. Ernst & Young’s independent Debt and Capital Advisory team were engaged to undertake a funding options analysis. Commonwealth Bank of Australia and National Australia Bank were appointed by MAV as co-arrangers for the LGFV bond issuance following an EOI.

7. Conclusion

MAV has progressed the establishment of a pooled borrowing vehicle on behalf of its 79 Victorian member Councils, namely the LGFV. The objective of the LGFV is to raise funding from the public bond market on behalf of participating Councils, to provide a more cost competitive financing solution to Victorian Councils.

Council is required to advise the MAV by 30 May 2014 whether it will commit to participating in the inaugural issuance of the LGFV.


RECOMMENDATION

That Council:

1. Approve the LGFV as a new source of funding for Council’s future borrowing requirements;

2. Participate in the first LGFV bond issuance in July 2014 for an amount of $1,000,000, being the re-financing of an existing loan; and

3. Authorise the Chief Executive Officer to sign the Local Government Funding Vehicle (LGFV) Participation Agreement.


COM 20 ADOPTION OF DRAFT PRICING POLICY 2014

Responsible Director: Director Corporate Support Responsible Officer: Director Corporate Support Original Document: DOC/14/21425

1. Purpose

The purpose of this report is for Council to adopt a Pricing Policy that provides guidance for setting appropriate levels of fees and charges.

Refer to Attachment COM 20A: Draft Pricing Policy

2. Background

Council’s internal auditors conducted a review of fees and charges and the key findings were as follows:

• A policy and fee setting framework for ‘local circumstances’ needs to be developed by line departments;

• The framework will need to include how fees are determined and calculated; and

• Management needs to develop policies and procedures with respect to the Trade Practices Act and the National Competition Policy

In addition the Victorian Auditor General conducted a sector audit on fees and charges in 2009 and found that none of the councils reviewed had adequate policies on service costing and fee setting.



Local councils provide a wide range of services to their communities, often for a fee or charge. The nature of these fees and charges generally depends on whether they relate to compulsory or discretionary services. Some of these, such as statutory planning fees, are set by State Government statute and are commonly known as ’regulatory fees’. In these cases, councils usually have no control over service pricing.

The Local Government Act 1989 (the Act) gives councils the power to set fees and charges to offset the cost of providing services. A widely accepted public sector pricing principle is that fees and charges should be set at a level that recovers the full cost of providing the services, unless there is an overriding policy or imperative in a favour of subsidisation.

4. Issues

The draft Pricing Policy provides guidance for setting appropriate levels of fees and charges, taking into account community benefit, user groups and corporate objectives.


This policy seeks to ensure that the following key objectives are met:

• Efficiency – the fees are simple to administer; • Equity – the fees are fairly applied across a range of users considering users’

capacity to pay; • Effectiveness – the fees provide appropriate signals to users, value for

money and ensure that everyone contributes appropriately to the delivery of services (promoting both efficiency and equity);

• Clarity – users are clear about when and how fees are applied; and • Transparency – the nature and use of the service is easily understood and

accessible to all applicable users.

The Pricing Policy will need to be implemented over a two year period, as pricing reviews using this methodology require significant input from business units in providing background information, activity levels, identifying direct and indirect costs and providing rationale/evidence for subsidising a service.


The implementation of the Pricing Policy will result in changes to the fees and charges currently charged by Council. When using the principles of the policy in relation to the fees charged for Building Services, a number of significant increases in fees were proposed (and are included in the Draft Budget 2014/2015). This may result in an increase in revenue earned from fees and charges in the future.

6. Consultation

In preparing the Pricing Policy reference has been made to the VAGO report, a draft guide developed by Local Government Victoria (although never finalised) and pricing policies from Greater Bendigo and the City of Boorandara.

An initial pilot of the policy has been undertaken with Building Services. This has included the development of an overhead apportionment model. The apportionment model is based on a model developed by the Municipal Association of Victoria (MAV).

The draft Pricing Policy was reviewed by Council’s Audit and Risk Advisory Committee at its meeting held on 6 March 2014. The Committee recommended two changes to the draft policy; reformatted headings to clearly define different sections of the policy and suggested a table of examples of the different pricing methods would help users of the Policy.

Headings were reformatted to clearly define the different sections of the policy. A table of examples will be included in procedures to be developed to support the implementation of the policy.

7. Conclusion

A draft pricing policy has been prepared in response to recommendations from an Internal Audit Review. It is recommended that the draft Pricing Policy be adopted by Council and implemented over a two year period.

RECOMMENDATION

That Council adopt the Pricing Policy.


10. DELEGATES REPORTS

11. NOTICE OF MOTION

12. URGENT SPECIAL BUSINESS

13. MEETING CLOSE

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