council - 07 august 2017 - item 6 - report of the ... · 8/7/2017 · 2016/17 quarter 4 review -...

COUNCIL 7 AUGUST 2017

REPORT OF THE CORPORATE, FINANCE, PROPERTIES AND TENDERS COMMITTEE - 31 JULY 2017 16173011

ITEM 6. REPORT OF THE CORPORATE, FINANCE, PROPERTIES AND TENDERS COMMITTEE - 31 JULY 2017

ITEM 6.1

DISCLOSURES OF INTEREST

No Councillors disclosed any pecuniary or non-pecuniary interests in any matter on the agenda for this meeting of the Corporate, Finance, Properties and Tenders Committee.



The Committee recommends the following:-

ITEM 6.2

2016/17 QUARTER 4 REVIEW - DELIVERY PROGRAM 2014-2017 (S096187)

It is resolved that Council:

(A) note the financial performance of Council for the year ending 30 June 2017, including the Net Operating Surplus of $96.1M as outlined in the subject report and summarised in Attachment A to the subject report;

(B) note the full year Capital Works expenditure of $225.7M, and approve the proposed revote of budget and other adjustments, which will decrease the adopted 2017/18 budget of $305.5M by $0.5M to $304.9M and note the forward estimates as detailed in Attachment B to the subject report;

(C) note the Information Services Capital Works expenditure of $8.8M, net of disposals, and approve the proposed revote of $1.5M to increase the adopted 2017/18 budget to $9.0M;

(D) note the full year Plant and Assets expenditure of $11.7M, net of disposals, and approve the proposed net revote of $2.8M to increase the adopted 2017/18 net budget to $20.9M;

(E) note the full year Property Acquisition expenditure of $43.0M, net of divestments;

(F) note the operational performance indicators and quarter and full year achievements against the Delivery Program 2014-2017 objectives, as detailed in Attachment C to the subject report;

(G) note the supplementary reports, including contracts issued over $50,000, major legal issues and the Quick Response, Banner Pole and Reduced Rate Grant Programs in Quarter 4, as detailed in Attachment D to the subject report; and

(H) note the Environmental Sustainability Progress Report, as shown at Attachment E to the subject report

(At the meeting of the Corporate, Finance, Properties and Tenders Committee, this recommendation was moved by the Chair (the Lord Mayor), seconded by Councillor Kok and carried unanimously




ITEM 6.3

INVESTMENTS HELD AS AT 30 JUNE 2017 (X005605)

It is resolved that the Investment Report as at 30 June 2017 be received and noted.

(At the meeting of the Corporate, Finance, Properties and Tenders Committee, this recommendation was moved by the Chair (the Lord Mayor), seconded by Councillor Kok and carried unanimously.)




ITEM 6.4

INVESTMENTS HELD AS AT 31 JULY 2017 (X005605)

It is resolved that the Investment Report as at 31 July 2017 be received and noted. (At the meeting of the Corporate, Finance, Properties and Tenders Committee, this recommendation was moved by the Chair (the Lord Mayor), seconded by Councillor Kok and carried unanimously.)




ITEM 6.5

COUNCILLORS' EXPENSES AND FACILITIES POLICY 2017 - ADOPTION (S048524)

It is resolved that:

(A) Council adopt the draft Councillors’ Expenses and Facilities Policy 2017, shown at Attachment A to the subject report;

(B) authority be delegated to the Chief Executive Officer to make amendments to the draft Councillors’ Expenses and Facilities Policy 2017 in order to correct any minor drafting errors and finalise design.

(Note - At the meeting of the Corporate, Finance, Properties and Tenders Committee, this recommendation was moved by the Chair (the Lord Mayor), seconded by Councillor Miller and declared carried following an equality of voting as follows: Ayes (5) The Lord Mayor, Councillors Kok, Miller, Scully and Thalis. Noes (5) Councillors Phelps, Chung, Forster, Scott and Vithoulkas. The Lord Mayor exercised her casting vote in favour of the motion.)




ITEM 6.6

DELEGATIONS OF AUTHORITY TO THE LORD MAYOR AND THE CHIEF EXECUTIVE OFFICER (S083948)


(A) endorse the Delegations to the Lord Mayor, as shown at Attachment A to the subject report;

(B) endorse the Delegations to the Chief Executive Officer, as shown at Attachment B to the subject report;

(C) confirm all other delegations by Resolution of Council continue in force; and

(D) endorse the Code of Conduct, as shown at Attachment D to the subject report.

(At the meeting of the Corporate, Finance, Properties and Tenders Committee, this recommendation was moved by the Chair (the Lord Mayor), seconded by Councillor Miller and carried on the following show of hands –

Ayes (6) The Lord Mayor, Councillors Kok, Miller, Scott, Scully and Thalis.

Noes (4) Councillors Phelps, Chung, Forster and Vithoulkas.)




ITEM 6.7

NON-RESIDENTIAL REGISTER METHODOLOGY AND PLAN 2017 - 2020 (X001907.006)

It is resolved that consideration of this matter be deferred to a future meeting of Council to enable a briefing of Councillors to be held.

(Note – this matter was dealt with by the Corporate, Finance, Properties and Tenders Committee as follows –

Moved by the Chair (the Lord Mayor), seconded by Councillor Kok -


(A) note that it remains impossible for the City to fully comply with the amendments to the City of Sydney Act 1988 regarding the non-residential register and rolls that commenced on 6 February 2015;

(B) note that the inability of the City to fully comply with the amendments to the City of Sydney Act 1988 represents a significant risk and may result in legal challenge, including challenge to the validity of the outcome of any City election;

(C) endorse the Non-residential Register Methodology and Plan 2017 - 2020 to maintain the non-residential register to 2020, as shown at attachment A to the subject report; and

(D) note that a review of the Non-residential Register Methodology and Plan 2017-2020 by an independent auditor identified no very high, high, medium, or low risk findings and that this review was tabled at the Audit Risk and Compliance Committee meeting on 25 May 2017.

Following discussion, the Chair (the Lord Mayor) withdrew her motion. It was then moved by the Chair (the Lord Mayor), seconded by Councillor Kok – It is resolved that consideration of this matter be deferred to a future meeting of Council to enable a briefing of Councillors to be held.

Carried.)




ITEM 6.8

POST EXHIBITION - DIGITAL STRATEGY (S118878)


(A) note the matters raised in the submissions received following the exhibition of the draft Digital Strategy, as shown at Attachment A to the subject report;

(B) adopt the Digital Strategy, as shown at Attachment B to the subject report;

(C) approve advertising for Expressions of Interest (EOI) for the installation of a free public Wi-Fi network in the City of Sydney Local Government Area within the next few months; and

(D) approve funding of $150,000 from the 2017/18 General Contingency Budget to enable EOI documentation preparation, advertising, assessment and contract finalisation for a free public Wi-Fi network in the City of Sydney Local Government Area.

(Note – At the meeting of the Corporate, Finance, Properties and Tenders Committee, this recommendation was moved by the Chair (the Lord Mayor), seconded by Councillor Scully, and carried unanimously.)




ITEM 6.9

PROPOSED NAMING OF A PRIVATE LANE AT 18-32 OXFORD STREET, DARLINGHURST AS "WINNS LANE" (X006676)


(A) approval be given to name the private lane linking Liverpool Street with Norman Street, Darlinghurst as “Winns Lane”; and

(B) notice of the new name be published in the NSW Government Gazette, a local newspaper, and notification be forwarded to the relevant authorities in accordance with the requirements of the Roads Regulation 2008.

(Note - At the meeting of the Corporate, Finance, Properties and Tenders Committee, this recommendation was moved by the Chair (the Lord Mayor), seconded by Councillor Thalis and carried.)




ITEM 6.10

PROPERTY INVESTMENT STRATEGY – CITY’S INVESTMENT PROPERTIES IN OXFORD STREET, DARLINGHURST (X009837)


(A) note the private sector interest received to acquire, masterplan, reposition and manage the City’s three main commercial properties in Oxford Street: 56-76 Oxford Street; 82-106 Oxford Street; and 110-122 Oxford Street;

(B) endorse an Expression of Interest to identify entities with the expertise and capacity to reposition these investment properties on a long-term ground lease; and

(C) note that the criteria to identify suitable partners will be developed around:

(i) expertise, experience and resources to acquire, implement and manage a successful transformation of these properties based on a masterplan developed in collaboration with Council and the public;

(ii) demonstrated strong track record in successfully selecting, planning, implementing and managing redevelopment and/or adaptive re-use or refurbishment of heritage buildings and creating high quality land uses with unique destinational environments; and

(iii) preserving an amount of equivalent effective floor space for the 22 cultural and creative tenancies within any future redevelopment.

(Note - At the meeting of the Corporate, Finance, Properties and Tenders Committee, this recommendation was moved by the Chair (the Lord Mayor), seconded by Councillor Thalis and carried unanimously.)



ITEM 6.11

REAL PROPERTY DISPOSALS – SURPLUS OPERATIONAL PROPERTY – DEPOTS - AND SURPLUS STRATEGIC PROPERTY - COMMERCIAL (X007669)

The Corporate, Finance, Properties and Tenders Committee decided that consideration of this matter be deferred to the meeting of Council on 7 August 2017.

Officer’s Recommendation

The officer’s recommendation to the Corporate, Finance, Properties and Tenders Committee was as follows –


(A) Council note the adopted 2007 Depot Strategy to consolidate southern operations from the following three locations to a single facility currently under construction along the Alexandra Canal:

(i) 94-106 Epsom Road Depot, Zetland (Epsom Road Depot);

(ii) 11 Gibbons Street (including 5-7 Marian Street), Redfern (Redfern Depot); and

(iii) 36 Gerard Street, Alexandria (Alexandria Depot);

(B) Council endorse the disposal of the surplus property at 94-106 Epsom Road, Zetland (Epsom Road Depot);

(C) in respect of the Redfern Depot:

(i) Council note that the Future Living Community Housing Limited were unsuccessful in their bid for State Government funding to purchase the Redfern Depot for the purpose of affordable and social housing;

(ii) Council endorse the sale of the property at 11 Gibbons Street, Redfern (including 5-7 Marian Street) for the provision of affordable and social housing; and

(iii) authority be delegated to the Chief Executive Officer to enter into negotiations with Community Housing Providers for them to acquire the site for redevelopment in the supply of affordable and social housing (Common Ground style), together with the ongoing management, and a report be brought back to Council on the outcomes of these negotiations;

(D) in respect of the Alexandria Depot, Council:

(i) endorse making an application for the subdivision of 73 Garden Street, Alexandria to create separate lots, being land occupied by the Alexandria Town Hall, to include a heritage curtilage informed by a Heritage Impact Statement and the Conservation Management Plan;

(ii) endorse making an application for rezoning the surplus lot to include public consultation, being the land generally occupied by the Alexandria Depot operations at 36 Gerard Street; and



(iii) endorse the sale of the surplus lot subject to D(i) and D(ii) above;

(E) Council endorse the sale of the following commercial assets:

(i) Stockton House 73-75 William Street, East Sydney;

(ii) 545-549 South Dowling Street, Moore Park; and

(iii) 90 Regent Street, Redfern, noting that:

a. the property is leased to the Salvation Army until 30 June 2017;

b. the City will undertake investigations to identify opportunities for the Salvation Army to continue this service; and

c. the owners of the adjoining properties have expressed interest in acquiring the property, with an option to include a quantum of space in the future redevelopment of the consolidated site;

(F) Council endorse the proceeds:

(i) from the sale of Surplus Operational Property (Depots) being placed into the General Fund in order to recoup capital expended on land purchases, construction of the new southern depot and the upgrade works at Bay Street, Ultimo;

(ii) from the sale of 545-549 South Dowling Street, Moore Park being placed in community properties reserve, given its origin as a community centre; and

(iii) from the sale of the remaining Surplus Strategic Properties (Commercial) properties being placed into the Commercial Properties Reserve to allow for future reinvestment in commercial property, further supplementing the City’s non-rate-based income; and

(G) authority be delegated to the Chief Executive Officer to develop due diligence material for each of the properties endorsed for sale, including, but not limited to, a disposal plan, including implementing opportunities to leverage value, determining the optimum method of sale, negotiating with interested parties as required, and entering into all necessary documentation to effect the sale at a price to be supported by at least two independent valuations.

Officer’s Report The officer’s report on this matter can be found at Item 11 of the agenda paper for the meeting of the Corporate, Finance, Properties and Tenders Committee on 31 July 2017 - Volume 2.

(Note – this matter was dealt with by the Corporate, Finance, Properties and Tenders Committee as follows – Moved by the Chair (the Lord Mayor), seconded by Councillor Kok – That the recommendation contained in the officer’s report to the Corporate, Finance, Properties and Tenders Committee be adopted, subject to the deferral of Stockton House 73-75 William Street, East Sydney, in order to obtain further information.



Following discussion, the Chair (the Lord Mayor) withdrew her motion and the Corporate, Finance, Properties and Tenders Committee decided that consideration of this matter be deferred to the meeting of Council on 7 August 2017.)




ITEM 6.12

TENDER - MEETING PAPER SYSTEM AND BOARD PORTAL (X005027)


(A) Council accept the tender offer of Tenderer ‘C’ for the implementation, licensing, training and support of a Meeting Paper System and Board Portal solution for a period of five years, with the option of two extensions, the first for three years and the second for two years;

(B) authority be delegated to the Chief Executive Officer to negotiate, execute and administer the contracts relating to the tender; and

(C) authority be delegated to the Chief Executive Officer to exercise the options referred to in clause (A), if appropriate, and negotiate the price to extend the contract accordingly.

(Note - At the meeting of the Corporate, Finance, Properties and Tenders Committee, this recommendation was moved by the Chair (the Lord Mayor), seconded by Councillor Kok and carried unanimously – as part of an in globo motion.)




ITEM 6.13

TENDER – BARGES AND TUGS FOR 2017 AND 2018 SYDNEY NEW YEAR’S EVE (X008402.001)


(A) Council accept the tender offer of Tenderer ‘A’ for the provision of barges and tugs for a period of two years to cover 2017 and 2018 Sydney New Year’s Eve, with the option of an extension of three years (to cover the event in 2019, 2020 and 2021);


(C) authority be delegated to the Chief Executive Officer to exercise the option referred to in clause (A), if appropriate, and negotiate the price to extend the contract accordingly.





ITEM 6.14

TENDER - PIRRAMA PARK EVENT MANAGEMENT FOR 2017 SYDNEY NEW YEAR’S EVE (X008402.001)


(A) Council accept the tender offer of Tenderer ‘B’ for the event management of Pirrama Park for a period of one year to cover 2017 Sydney New Year’s Eve, with the option of an extension of two years (to cover the event in 2018 and 2019);


(C) authority be delegated to the Chief Executive Officer to exercise the option referred to in clause (A), if appropriate, and negotiate the price to extend the contract accordingly.

(Note – At the meeting of the Corporate, Finance, Properties and Tenders Committee, this recommendation was moved by the Chair (the Lord Mayor), seconded by Councillor Kok, and carried.)




ITEM 6.15

TENDER - 2017 SYDNEY CHRISTMAS TREES AND DECORATIONS (X010147.001)


(A) Council accept the tender offer of Tenderer ‘B’ for 2017 Trees and Decorations – Option B; and

(B) authority be delegated to the Chief Executive Officer to negotiate, execute and administer the contracts relating to the tender.





ITEM 6.16

TENDER - 2017 SYDNEY CHRISTMAS PROJECTIONS, LIGHTING AND CANOPY OF LIGHT (X010147.001)


(A) Council accept the tender offer of Tenderer A for Part A: Building Projections;

(B) Council accept the tender offer of Tenderer C for Part C: Canopy of Light – Pitt Street Mall;

(C) Council cancel Part B: Lighting Installation of the tender;

(D) Council not invite fresh tenders for Part B: Lighting Installation on the basis that it is unlikely a more satisfactory result would be achieved; and

(E) authority be delegated to the Chief Executive Officer to negotiate, execute and administer the contracts relating to the tender.





ITEM 6.17

TENDER – KGV RECREATION CENTRE OUTDOOR COURT RESURFACING (X006145)


(A) Council accept the tender offer of Tenderer ‘C’ for KGV Recreation Centre Outdoor Court Resurfacing; and

(B) authority be delegated to the Chief Executive Officer to negotiate, execute and administer the contracts relating to the tender.





ITEM 6.18

TENDER – SUPPLY AND DELIVERY OF BULK LANDSCAPING MATERIALS - REJECT AND NEGOTIATE (X008365)


(A) Council reject the tender submissions received for the supply and delivery of bulk landscaping materials for the reasons set out in confidential Tender Evaluation Summary, shown at Attachment A to the subject report;

(B) Council enter into negotiations with suppliers who are suitable and demonstrate an ability to supply bulk landscape materials required for use by the City. It is noted that:

(i) inviting fresh tenders may not attract additional suitable suppliers over and above those that have responded to this tender; and

(ii) Council’s reasons for determining to enter into negotiations with suppliers are to ensure the best value for money outcome for the supply of all landscaping materials required by the City;

(C) authority be delegated to the Chief Executive Officer to enter into a contract subject to the conclusion of negotiations with suitable companies for the supply and delivery of bulk landscaping materials; and

(D) Council be informed of the successful supplier by CEO Update.





ITEM 6.19

CANCELLATION OF TENDER - NEW PARK AT 222 PALMER STREET, DARLINGHURST - CONSTRUCTION (X007770)


(A) cancel the proposal to contract construction works under Tender 1648 for the new park at 222 Palmer Street, Darlinghurst; and

(B) invite tenders for the two separate packages of works to attract a broader and more competitive response.





ITEM 6.20

TENDER - VARIATION TO CONTRACT - SYDNEY PARK BRICK KILNS - CHIMNEY REPAIR WORKS (S097239)

It is resolved that Council approve a variation to contract to include the latent conditions and to manage additional remediation works as described in the subject report.


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