finance and budget committee - city of perth · pdf fileminutes of the meeting of the city of...

I:\CPS\ADMIN SERVICES\COMMITTEES\DRAFT MINUTES\FB090324MINS.DOC

FB CTE MINS 24 MARCH 2009

MINUTES

FINANCE AND BUDGET COMMITTEE

24 MARCH 2009

P R E S I D I N G M E M B E R ’ S S I G N AT U R E

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

DATE:- - - - - - - - - - - - - - - - - - - - - - - - - - - - -



INDEX

Item Description Page

FB59/09 DECLARATION OF OPENING 1

FB60/09 APOLOGIES 1

FB61/09 MEMBERS ON LEAVE OF ABSENCE AND APPLICATIONS FOR LEAVE OF ABSENCE 1

FB62/09 CONFIRMATION OF MINUTES 2

FB63/09 DISCLOSURE OF MEMBERS’ INTERESTS 2

FB64/09 PAYMENTS TO CREDITORS - FEBRUARY 2009 2

FB65/09 FINANCIAL STATEMENTS AND FINANCIAL ACTIVITY STATEMENT FEBRUARY 2009 4

FB66/09 INVESTMENTS AND INVESTMENT RETURNS FOR THE MONTH OF FEBRUARY 2009 5

FB67/09 STRATEGIC FINANCIAL PLAN - FORECAST OF THE CITY'S FINANCIAL PERFORMANCE OVER FIVE YEARS TO 30 JUNE 2014 8

FB68/09 CITY OF PERTH SUPERANNUATION FUND – ACTUARIAL VALUATIONS 18

FB69/09 LICENCE TO OPERATE SMALL BOAT HIRE, SWAN RIVER FORESHORE 24

FB70/09 FEASIBILITY STUDY TO PRESENT A SPORTING FESTIVAL 29

FB71/09 UNBUDGETED CAPITAL WORKS - STREET TREE FENCING AND UNDER TREE PLANTING - ST GEORGES TERRACE, WILLIAM STREET TO MILL STREET 33

FB72/09 TENDER 047-08/09 - LIFT UPGRADE, MAYFAIR STREET CAR PARK 35

FB73/09 SETTING OF PARKING FEES - 2009/10 39

FB74/09 GENERAL BUSINESS 47

FB75/09 ITEMS FOR CONSIDERATION AT A FUTURE MEETING 47

FB76/09 CLOSE OF MEETING 47


- 1 - 24 MARCH 2009


Minutes of the meeting of the City of Perth Finance and Budget Committee held in Committee Room 1, Ninth Floor, Council House, 27 St George’s Terrace, Perth on Tuesday, 24 March 2009.

MEMBERS IN ATTENDANCE

Cr Davidson - Presiding Member Cr Butler Cr Tognolini

OFFICERS

Mr Edwards - Chief Executive Officer Mr Mianich - Director Corporate Services Mr Dunne - Director Service Units Mr Forster - Director Business Units Mr Berry - Manager Financial Services Mr White - Chief Accountant Mr Malde - Senior Management Accountant Ms Morgan - Senior Events Team Leader Ms Hilton - Acting Governance Coordinator Mr Hegney - Governance Officer

FB59/09 DECLARATION OF OPENING The Presiding Member declared the meeting open at 4.00pm.

FB60/09 APOLOGIES Nil

FB61/09 MEMBERS ON LEAVE OF ABSENCE AND APPLICATIONS FOR LEAVE OF ABSENCE

Nil


- 2 - 24 MARCH 2009


FB62/09 CONFIRMATION OF MINUTES Moved by Cr Butler, seconded by Cr Davidson That the minutes of the meeting of the Finance and Budget Committee held on 3 March 2009 be confirmed as a true and correct record. The motion was put and carried The votes were recorded as follows:- For: Crs Davidson, Butler and Tognolini Against: Nil

FB63/09 DISCLOSURE OF MEMBERS’ INTERESTS Nil

FB64/09 PAYMENTS TO CREDITORS - FEBRUARY 2009

BACKGROUND:

FILE REFERENCE: P1024427-2 REPORTING OFFICER: Con White RESPONSIBLE DIRECTOR: Robert Mianich, Director Corporate Services DATE: 4 March 2009 MAP / SCHEDULE: Trim File: 21094/09

LEGISLATION / STRATEGIC PLAN / POLICY:

Legislation Local Government (Financial Management) Regulations 1996

Section: 13(1)


- 3 - 24 MARCH 2009


COMMENTS:

Payments for the month of February were very high due to payments of $7 million to Westpac Bank for the placement of term deposits in respect of the Municipal and Reserve funds, $469,618.16 to Lakis Construction for the Northbridge Piazza, $306,559.55 to United Group Resources for the purchase of CCTV cameras for the City’s car parks and $282,140.30 to Broad Construction Services (WA) Pty Ltd for the construction of the Elder Street car park. Payments in respect of money market transactions are not normally included in this report however, in this instance, Westpac was not set up in the Austraclear custodian facility and a deposit by cheque into their account was required to take advantage of an attractive term deposit offer. Excluding this amount, total payments for the month were about $9.7 million which is above the monthly average. Moved by Cr Butler, seconded by Cr Tognolini That in accordance with Regulation 13 (1) of the Local Government (Financial Management) Regulations 1996, the list of payments made under delegated authority for the month ended 28 February 2009, as laid on the table, be received and recorded in the Minutes of the Council, the summary of which is as follows:-

FUND PAID Municipal Fund $ 16,719,682.83

Trust Fund $ 18,879.10

TOTAL: $ 16,738,561.93

The motion was put and carried The votes were recorded as follows:- For: Crs Davidson, Butler and Tognolini Against: Nil


- 4 - 24 MARCH 2009


FB65/09 FINANCIAL STATEMENTS AND FINANCIAL ACTIVITY STATEMENT FEBRUARY 2009

BACKGROUND:

FILE REFERENCE: P1014149-25 REPORTING OFFICER: Ian Berry RESPONSIBLE DIRECTOR: Robert Mianich, Director Corporate Services DATE: 16 March 2009 MAP / SCHEDULE: Schedule 1 - Financial Statements and Financial Activity

Statement for the period ended 28 February 2009. The Local Government (Financial Management) Regulations 1996 require the City to produce the monthly Financial Statements, including a Financial Activity Statement in rate setting format.


Legislation 34 (3) of the Local Government Act 1995 6.4 (2) of the Local Government (Financial Management) Regulations 1996

Strategic Plan Key Result Area: Capable and Responsive Organisation

DETAILS:

The Financial Activity Statement is presented together with a commentary on variances from the budget.

FINANCIAL IMPLICATIONS:

There are no direct financial implications arising from this report.

COMMENTS:

This Financial Activity Statement commentary compares the financial results with any Council approved changes to the adopted budget for the period to 28 February 2009.


- 5 - 24 MARCH 2009


Moved by Cr Tognolini, seconded by Cr Butler That the Council approves the Financial Statements and the Financial Activity Statement for the period ended 28 February 2009, as detailed in Schedule 1. The motion was put and carried The votes were recorded as follows:- For: Crs Davidson, Butler and Tognolini Against: Nil

FB66/09 INVESTMENTS AND INVESTMENT RETURNS FOR THE MONTH OF FEBRUARY 2009

BACKGROUND:

FILE REFERENCE: P1023891-18 REPORTING OFFICER: Ian Berry RESPONSIBLE DIRECTOR: Robert Mianich, Director Corporate Services DATE: 16 March 2009 MAP / SCHEDULE: Schedule 2 - Investment Report for the month ended

28 February 2009 Investments are made under the direction of Policy 9.3 - Management of Investments. The policy sets objectives and risk management guidelines in investing surplus and reserve funds not immediately required for any other purpose. This report reviews the results for the month of February 2009.


Legislation 6.14 of the Local Government Act 1995 Local Government (Financial Management) Regulations 1996 Strategic Plan Key Result Area: Capable and Responsive Organisation Strategy: Capable and Responsive Organisation Strategy Policy Policy No and Name: 9.3 - Management of Investments


- 6 - 24 MARCH 2009


DETAILS:

Investment earnings for the month of February 2009 amount to $51,882. $21,486 was earned on the Trust Account investments. Total earnings were substantially down on the $597,428 earned in January. The portfolio was carried at cost at $186.3 million at 28 February 2009, down on last month’s balance of $191.8 million. $5.1 million of these funds are held in trust. February earnings were narrowly positive. The balanced funds were negative $500,000. This resulted in an average rate of return of 1.26% well below the benchmark of 3.86%. Balanced Funds All funds performed extremely poorly reflecting negative returns during February in global stock markets. Managed or Cash Funds During the course of the last year, the Council has redeemed the bulk of its cash funds and ANZ and Black Rock remain frozen. Both were negative in February as credit spreads on investments held widened and capital values fell. Term deposits and Short-term direct investment $475,131 was earned from these investments in the month. The City is now in a negative cash flow period as it has collected virtually all rates outstanding and these investments will be drawn down. The other major problems is that as investments come to term replacement, interest rates are being negotiated at much lower levels reflective of the Reserve Bank reducing interest levels by 400 points in the last ten months. Structured Securities This area is also suffering from diminished returns as reset interest rates fall. The main problem is the reduction in capital values as rates fall, impacting marginally on longer dated bank debt and more significantly on the longer dated CDOs (Collaterised Debt Obligations) as risk factors increase. Note that the most at risk CDO, Ashwell, continues to deteriorate in capital value terms even though no further credit events impacting on it occurred in February. Thunderbird, with a capital value of $1 million, was redeemed in March. Helium finally defaulted and the remaining carrying value was expensed.


- 7 - 24 MARCH 2009



Interest earned on investments for February after adjustment from trust account interest and other interest earned, amount to $44,467 under budget by a considerable $798,839. Trust interest is brought to account in the accounts of the City of Perth on a monthly basis in arrears. A material portion of that interest earned is credited to the relevant trust accounts and not to the City. This results in a difference between reported investment earnings and the total amount earned on funds controlled as shown on the Investment Report. COMMENTS: Volatility remains a given at this stage of the investment cycle. The City will continue to pursue the best investment returns commensurate with risk and act within the investment policy. The Chief Executive Officer departed the meeting at 4.11pm. Moved by Cr Butler, seconded by Cr Tognolini That the report dated 16 March 2009, detailing the investments and investment returns for the month ended 28 February 2009 as detailed in Schedule 2, be received. The motion was put and carried The votes were recorded as follows:- For: Crs Davidson, Butler and Tognolini Against: Nil The Chief Executive Officer returned to the meeting at 4.13pm.


- 8 - 24 MARCH 2009


FB67/09 STRATEGIC FINANCIAL PLAN - FORECAST OF THE CITY'S FINANCIAL PERFORMANCE OVER FIVE YEARS TO 30 JUNE 2014

BACKGROUND:

FILE REFERENCE: P1018470 REPORTING OFFICER: Ian Berry RESPONSIBLE DIRECTOR: Robert Mianich, Director Corporate Services DATE: 16 March 2009 MAP / SCHEDULE: Schedule 3 - Strategic Financial Plan 2009-2014

Schedule 4 - Capital Expenditure and Funding 2009-2014

The Strategic Financial Plan assesses the City’s financial situation at this time and projects that situation forward. It will be amended in response to changes in the internal and external environment. Assumptions used in the plan are stated. The purpose of the plan is to assist the Council on a medium term basis in ensuring that:- • The revenue base is adjusted to provide for the needs of the City.

• Capital projects envisaged can be adequately funded.

• Costs are controlled and services are provided obtaining the best value in terms of quality and cost.

• It incorporates an inherent link to the Strategic Plan and ensures that strategic initiatives are funded appropriately.


Legislation Local Government Act 1995 Section: 6.2 and associated financial regulations Strategic Plan Key Result Area: Capable and Responsive Organisation Strategy: Capable and Responsive Organisation Strategy Links with Strategic Plan In terms of outcomes of a financial nature as a capable and responsive organisation, the following, as stated in the Strategic Plan, are addressed:-


- 9 - 24 MARCH 2009


The tax regime required to fund City programs is kept to a minimum. For five years the City has increased rates by estimated CPI rises only. It is intended to continue with this policy over the five year period of the Strategic Financial Plan, whilst maintaining and funding appropriate operating and capital programs. The City is likely to face pressure to limit rate increases, especially from its office rate base as occupancy rates and rents fall. A diverse revenue base with new sources of revenue. The City has a diverse revenue base with the main forecast components being per the 2009/10 forecast.

% Rates 39.4 Rubbish Collection 3.5 Grants and subsidies 3.6 Investment earnings 3.6 Parking revenue 34.5 Compliance income 7.5 Other 7.9 100.0%

Information relating to the further diversification of the revenue base is being compiled. Although there are a multitude of minor opportunities for diversifying revenue, the most promising areas of significance appear to emanate from property development either of existing land holdings or of new purchases. The development of Tamala Park, of which the City holds a one twelfth share, is an opportunity that should be strongly pursued. The offer of outsourced services to smaller or regional councils is another potential initiative that could be developed. The utilisation of assets to produce revenue is maximised. Revenue maximisation and optimisation is a constant. Projects will be carried out to calculate return on property owned by the City and to participate in development feasibilities. Accurate macro information will be further developed to assist the Council in making informed decisions. Capital expenditure can be adequately funded The City is currently able to access loan funds at very favourable interest rates but would consider joint venture and partnerships with other entities to fund initiatives if feasible.

DETAILS:

The attached schedules, Strategic Financial Plan 2009-2014 and the Capital Expenditure and Funding 2009-2014, form the essence of the plan and should be read in conjunction with this report.


- 10 - 24 MARCH 2009


Assumptions The following economic assumptions have been utilised in compiling this plan. These projections, current at the end of January 2009, were compiled by Access Economics and reflect the consensus forecasts of the four major banks at that time. With the rapidly deteriorating global financial crisis, these assumptions are subject to change. Economic Projections 2008/09 2009/10 2010/11 2011/12 2012/13 Real GDP 2.00% 1.60% 2.70% 2.70% 3.20%Unemployment 5.00% 6.00% 6.50% 6.10% 6.00%Wages (AWOTE) 4.70% 4.10% 3.20% 3.60% 4.20%CPI (Headline) 3.60% 2.00% 3.10% 3.10% 2.50%Oil price/barrel $46 $56 $74 $85 $9090 Bank Bill Rate 3.30% 4.00% 5.10% 5.60% 6.00%10yr Govt Bond 3.80% 4.70% 5.80% 5.90% 6.00%

It should also be noted that these assumptions apply to Australia as a whole and that Western Australia may have some protection against the full extent of the downturn through its resources sector focus, especially in the areas of gold and energy and the level of capital commitments to these industries. Income The City currently derives around 38% of its income from rates. This proportion is set to rise due to the current unfavourable investment climate for investment earnings and building and planning approvals. Parking fees, which have expanded significantly in recent years, are expected to maintain their importance over the term of the plan. Grants and subsidies are dependant on the largesse of other tiers of government and on the level of capital expenditure, particularly as regards the Forrest Place Walkway project which is to be funded to the extent of 50% by the owners of Forrest Chase. Rubbish collection fees will rise to fund the recycling initiative at Neerabup. Fines and costs and other revenue (except for planning and building approvals) are expected to be reasonably stable. Rates The current rate base, applying the 2008/09 rate in the dollar, would raise rates of $50.9 million. It is anticipated that, with interim adjustments in the remaining months of the year, the base will approximate $51.5 million at the time the rates are raised on 1 July 2009. Rebates for Inner City Living and Heritage totalling $205,000 per annum are deducted from this base.


- 11 - 24 MARCH 2009


The intense level of construction activity in the city has resulted in delays to the completion of major projects with delays to the expansion of the City’s rate base. A number of projects have also been deferred or cancelled. The exercise relating to the impact of cost allocation to differential classes of the rate base may result in changes to rates raised from particular classes. However, it should not impact on the overall rate income except insomuch as one rates’ classification grows or shrinks in relation to the average rate of growth of all rate classes. As projects are completed, there will be a positive impact on the rate base. Major projects scheduled for completion include the following:- $ Completion 275 Hay Street Residential 17 million 2009 22-24 St Georges Tce (Condor) Office/Residential 33 million 2009 235-239 St Georges Tce (KPMG) Office 65 million 2009 34-50 Stirling Street (Sunday Times)

Office 25 million 2009

96-100 Terrace Rd (Reflections) Residential 56 million 2009 100 St Georges Tce (Century City) Office / Retail 165 million 2009 899-915 Murray Street Office 41 million 2010 239 Adelaide Tce Residential 42 million 2010 500 Hay St (Criterion) Residential 32 million 2010 298-306 Murray St (Raine Sq) Office 132 million 2010 140 William Street Office 165 million 2010 580-602 Hay Street (Equus) Residential 88 million 2011 125 St Georges Tce (BHP) Office 426 million 2012

With the rate base incorporating the above and other projects over the next two to three years, an increase in the rate base of 4% for 2009/10 and 5% for 2010/11 would be a conservative projection. This would fall back in 2011/12 and thereafter to more traditional levels as the economic outlook imposes its toll, particularly on smaller projects. The impact of the triennial revaluation in 2011/12 will increase the rate base considerably as it will involve Gross Rental Valuations (GRVs) being based on 2009 values, even though, subsequently, vacancy rates may rise materially with resulting impact on 2011 rents. As is usual, the City will neutralise these changes by adjusting the rate in the dollar so no differential rate class is impacted adversely.


- 12 - 24 MARCH 2009


Rubbish Collection Revenue from rubbish collection includes allowances for inflation and rate base growth although the latter may diminish if the prices of recycled materials recover and third party demand resumes growth. The main impact on this area is the introduction of the Resource Recovery Facility whereby the cost of processing waste will rise from $50 a tonne at Mindarie to at least $127 a tonne for that portion of waste processed at Neerabup. The initial impact of this in 2009/10 is $736,000, which will be subsidised from reserves. This charge will gradually be recovered from users with a phase-in period of five to seven years until costs are fully recovered. Grants and Subsidies These have been projected on existing Grants allowing for CPI and, in the first year, a limited allocation of stimulus funding from the Federal Government. The major factor however relates to the construction of the Forrest Chase Walkway. This has been allowed for mainly in 2010/11. Investment Earnings This item is the major negative impact on the Strategic Financial Plan mainly because of the Reserve Bank interest rate reductions from 7.25% to 3.25% at the current time. The 2008/09 forecast in the first budget review has been reduced by $2 million to $5.7 million as a result of this and negative performance from the balanced funds. Cash rate forecasts per the economists forecasts, range from 4% in 2009/10 to 6% in 2012/13. Fundamentally, the City aims earning at least 0.5% over this rate and this requirement has been incorporated in the projections. Returns may be considerably enhanced in the event of an economic recovery which will both accelerate interest rate increases and a recovery in balanced fund values. This has not been accounted for due to unprecedented volatility in the markets. The other major impact on investment earnings is cash flow. The City will increase capital expenditure and the drawdown of reserves to take advantage of availability of construction capacity to advance capital programs. The downside of this is that funds decrease and investment earnings fall. Cash backed reserves are projected to fall from $141.3 million to $58 million over this period. Parking Revenue Revenue has been forecast utilising Option 2 of the proposals currently under consideration by the City. This results in a modest increase to $46.4 million of revenue this year based on a ten cent per hour increase in some fees, the introduction of part of a new parking policy extending the reach of metered on-street parking, and some small increases on selected car parks. In 2009, the City has lost Elder Street for reconstruction purposes and expects to lose lot 1192 Wellington Street and Fitzgerald Street.


- 13 - 24 MARCH 2009


Eight hundred and ten off-street bays will be lost in 2008/09, continuing a trend established since the opening of the Perth Convention Exhibition Centre (PCEC) car park. To grow or even maintain revenue, it is recommended that the City look at investment in additional car-parking capacity. The City is experiencing high utilisation of its parking bays especially during weekdays, however some reduction due to the economic situation is expected. The Elder Street development will restore approximately 1,000 bays to the City when construction is complete in late 2010. Further opportunities to add bays should be explored during the current downturn where land purchase and construction costs may be more realistic and supportive of additional capacity investment. The impact of high occupancy flows strongly to the profitability of the car parking operation releasing in the current year, more than $24 million to support capital initiatives and restrict rate increases. It should be noted that external factors such as economic contraction, fuel prices and the growth in public transport can impact on occupancy levels materially. These risks should always be borne in mind. The projection has been calculated on the base for 2009/10 plus revenues for Elder Street incorporating a three year ramp-up. An additional $1.7 million has been included in 2013/14 to recognise revenue from an additional facility to be completed during that year. Community Services This has been increased by CPI only. Compliance Compliance have projected $9.2 million revenue in their preliminary budget for 2009/10. This has been extrapolated by CPI increases only. The revenue relinquished from the parking budget relating to permits is estimated to be $1 million which has been reallocated to the Compliance income budget, bringing total income to $10.2 million. Other Revenue Other revenue has been increased by CPI. However at this juncture, $750,000 has been deducted in compiling the total as a result of expected decline in planning and building approvals.


- 14 - 24 MARCH 2009


EXPENDITURE Operating expenditure Operating expenditure has been projected from the budget review allowing for CPI increases and, in the case of the Business Units, Service Units and Planning and Development directorates, additional increases in tandem with growth in the rate base. The Chief Executive Officer and Corporate Services directorates have been increased only in line with expected CPI increases. Additionally, costs have been input into Business Units to reflect the cost of operating both the Elder Street car park and a new car park. An allowance of $700,000 in 2009/10 rising to $1 million the following year has been made in respect of the Neerabup composting facility. The base for Business Units has also been adjusted upwards by an additional $300,000 per year (from 2010/11) which is the estimated operating cost of the new parking policy. Depreciation Depreciation is contained in directorate budgets except for that on buildings and infrastructure which has been shown separately. Note that building depreciation cost is expected to change to reflect the whole impact of the property revaluation. Depreciation has been extrapolated on a rate growth basis. Employee costs capitalized These amounts have been extrapolated using the budget review as a base at 5% for 2009/10 and 4% per annum thereafter. Additional operating costs not included above This line accounts for the cost of implementing the salary restructure and provides $500,000 in 2009/10 for operating costs associated with the Strategic Plan projects, together with other initiatives evolving in the 2009/10 budget. Loss (Profit) on disposal of assets Profit on disposal of assets has been treated in the same manner as depreciation. There is however, an adjustment in 2009/10 for the handover of Lot 1192 Wellington Street at a value of $6.75 million. Debt reduction The Council House loan was repaid in early 2009 and a $6 million special payment was made against the PCEC loan in 2008.


- 15 - 24 MARCH 2009


The capital loan repayments over the five year period comprise the following:-

$000’sPCEC 6,960Elder Street (from 2010/11) 4,946New Parking Facility 565 12,471

Capital Expenditure This is derived from the five year plans. As the capital budget for 2009/10 approaches finalisation there is expected to be material adjustment to this schedule. Major projects included are as follows:-

$000’s Plain Street Redevelopment 31,200 Walkway Refurbishment 12,000 Elder Street Car park 30,000 Northbridge Streetscapes 5,000 St. Georges Terrace Streetscapes 9,000 Wellington and Roe Streets (Northbridge Link) 9,400 Central City Malls (Forrest Place) 24,000 Concert Hall Lake 5,000 Heirisson Island Bridge and Landscaping 4,400 West Perth Town Square 4,000 Footpath Rehabilitation 13,460 Road Rehabilitation 6,374 Parking equipment 11,074 Information Systems 7,185 New Library 20,000 Major Conceptual Project 20,000 *New Parking Development 32,000 244,093 Other 106,498 Total Capex over five years $350,591 Property acquisition 10,000 $360,591

Original capital expenditure as determined from the five year plan has been adjusted by $16.3 million to recognise the 2009/10 capital budget as currently stated. A $10 million property acquisition has been included as a 2009/10 purchase. This proposed addition will be held for investment and future development reasons.


- 16 - 24 MARCH 2009


*The Perth Parking Policy currently under consideration may make a feasible development more difficult to execute. Non recurrent Expenditure This consists of the cash contribution to the Northbridge Link (first instalment) on the signing of the contract for the sinking of the railway. This project is now dependent on Federal Government funding. The in-kind transfer of the leasehold interest of Lot 1192 being the initial contribution, is noted. Asset Sales These sales consist mainly of the recurring turnover of the fleet and plant and are utilised to fund new purchases of capital equipment. Loan funds accessed Construction and loan finance on a long term basis will be drawn down totalling $16 million on the Elder Street project in two tranches with repayments due to start on completion in September 2010. $10 million has also been entered as draw-down on a parking project commencing in 2012 with completion in 2013/14. Capital grants These consist of a State Government contribution for the River Wall and contributions from the owners of Forrest Chase for the Walkway refurbishment. Reserves As detailed on the attached schedules, reserves will be utilised to fund $185.6 million of capital spending over five years. These reserves have been set aside mainly for future capital spending. With construction capacity available over the period of the five year plan it is incumbent on the City to reduce the level of its reserves and finance increased capital programs. Non recurrent funding The Refuse Disposal reserve will be used to fund a subsidy to ratepayers aimed at phasing in the impact of increased costs for recycling and composting of rubbish at the new Neerabup recycling resource facility. Additionally, the first cash contribution of $23.4 million to the Northbridge Link is provided for from the Asset Enhancement reserve. Carry-forwards The City has in recent years, experienced ever increasing levels of carry forward capital expenditure. This plan assumes that, with more construction capacity and the strengthening of the City of Perth workforce, the level of carry forwards will be materially reduced.


- 17 - 24 MARCH 2009


Appropriations Appropriations to reserves have basically been made in terms of allocating surpluses as earned. These would be included in the budget or budget reviews as appropriations. Tamala Park Efforts have been made to obtain projections of asset sales from this development but financial information is not yet available.

FINANCIAL IMPLICATIONS

This report is wholly involved with financial implications for the City over the next five years. Forward commitments to major projects can be met from surplus funds, reserves and loans. Although falling from $141.3 million to $58 million over the period, reserves will still be in a satisfactory state.

COMMENTS:

The following conclusions and observations can be drawn from the Strategic Financial Plan:- • Irrespective of diminution of investment income, the City remains in a strong

financial position. • Funding is available to carry out further reasonable levels of capital expenditure. • Major projects, including the construction of two multi-storey car parks and the

Plain Street Community Centre, can be funded from City reserves or accessible loan funds.

• Capital projects will be carried out in a more timely manner with the availability

of construction capacity due to the current economic situation. • The Northbridge Link contributions are a major component of this plan. Any

deferral or cancellation will materially impact on the amount available for other capital projects.

Moved by Cr Butler, seconded by Cr Tognolini That the Finance and Budget Committee endorses and takes into account the impact of the Strategic Financial Plan in the finalisation of the budget for 2009/10. The motion was put and carried


- 18 - 24 MARCH 2009


The votes were recorded as follows:- For: Crs Davidson, Butler and Tognolini Against: Nil

FB68/09 CITY OF PERTH SUPERANNUATION FUND – ACTUARIAL VALUATIONS

BACKGROUND:

FILE REFERENCE: P1014769-5 REPORTING OFFICER: Ian Berry RESPONSIBLE DIRECTOR: Robert Mianich, Director Corporate Services DATE: 15 March 2009 MAP / SCHEDULE: Schedule 5 - Preliminary Results of Actuarial Valuation

as at 1 July 2008 – City of Perth Superannuation Fund Schedule 6 - Additional Projections Actuarial Valuation as at 1 July 2008

The City of Perth Superannuation Fund (CPSF) conducts a triennial actuarial review, the most recent being as at 1 July 2008. The actuarial review includes a recommendation on the level of the employer contributions. The actuarial review of the fund as at 1 July 2008 has commenced and preliminary results of the actuarial valuations were received by the Trustee of the CPSF at the meeting of the directors of the Trustee held on 27 February 2009. The CPSF provides the following to its defined benefit members:- • On retirement, 20.5% of the average of the members annual salary (calculated

over three years) for each year of service since 1998/99. • 18.75% is the factor utilised in respect of service prior to 1998/99. • 60% of the cost of providing Total and Permanent Disablement Insurance

(TPD). • Free Total and Temporary Disablement Insurance (TDT) • Free death benefit insurance. • Administration costs of the fund at .4% of assets.


- 19 - 24 MARCH 2009


For this, the employee contributes 4% of salary (net of the 15% contributions tax attributable to this portion). The City contributes 14% (including the Superannuation Guarantee Contribution of 9%) and currently, since 2004/05, a further 1% special contribution intended to build up the CPSF reserves for contingency purposes.


Legislation City of Perth Superannuation Fund Trust Deed

DETAILS:

The preliminary results of the actuarial valuation as at 1 July 2008 indicate a barely satisfactory financial position at 1 July 2008 with asset coverage in respect of defined benefit members of 103.3% (104.7% in 2005). However when the actuarial value of the fund is projected forward incorporating negative returns incurred and expected to be incurred in the remainder of 2008/09, and the age profile of defined benefit members, the position at 1 July 2009 is expected to be unsatisfactory with asset coverage of 92% of defined benefits if the return for 2008/09 is negative 10%. If the return is negative 20% (as is more likely), coverage will fall to 85% of defined benefits. Returns from the fund to 31 December 2008 are negative 12.8% for the six month period. These projections place the CPSF in an unsatisfactory financial position. It should be noted that most other defined benefit funds are likely to be in a similar position to that of the CPSF. Reasons for Unsatisfactory Financial Position The major cause of this state of affairs is the Global Financial Crisis and its impact on the mix of investments that the CPSF holds. 90% of these investments are in balanced funds with 10% being held in a balanced fund with a more aggressive growth profile focussed mainly on investments on the Australian Stock Exchange. Investments have been held within policy parameters at all times. Other contributory factors include the age profile of the contributory members entitled to participate in the defined benefits scheme. Of the 437 members in the scheme at 1 July 2008, 217 (49.6%) are over 50 years of age. Salary increases of defined benefit members have averaged 6.8% per annum over the three year period 2005-2008. This has been caused by factors including salary progression and career development salary movements and the EBA increase of 5% last year. Previous projections have assumed an average salary increase of 4%. Growth in salaries although resulting in higher contributions also impact more on final average salaries on which the defined benefits is calculated. Investment returns over the last three years have been 6.3% impacted adversely by the negative return of 8% in 2007/08. Assumed average returns were 8.6%.


- 20 - 24 MARCH 2009


AustralianSuper The situation is complicated by the impending transfer of members to AustralianSuper. The costs of migrating investments into AustralianSuper portfolios will be bourne by AustralianSuper. The actuarial valuation has assumed that AustralianSuper will maintain the same target asset allocation. This is extremely important due to the level of unlisted assets in AustralianSuper default portfolios and the tendency of valuations of these assets to lag market downturns. AustralianSuper has a policy that, where a fund (or sub fund as the CPSF will become under successor fund arrangements) is in an unsatisfactory financial position, the employer will be requested to increase contributions to put the fund into a satisfactory position within twelve months. It may be possible to negotiate an extension to this because of the prevailing economic situation and there are precedents where AustralianSuper have permitted sub funds to take remedial action over three years, but this is not certain. Consequences of Unsatisfactory Financial Situation The actuary on becoming aware of the unsatisfactory financial position of the fund is statutorily required to report the situation to the trustee and the Australian Prudential Regulation Authority (APRA) immediately. This has been done. APRA will generally require a plan of action to remedy the financial situation of the Superannuation Fund over a three year period. A five year program may also be acceptable. The City of Perth adheres to Australian Accounting Standards. The City has gained exemptions from the requirement to bring the assets and liabilities of the defined benefits portion of the fund onto its balance sheet on the grounds that the fund has multi-employer status. Although this exemption may well continue, the City may be required to provide for the share of the projected deficiency in the fund attributable to its defined benefit members. Discussion with the City’s auditors are taking place on this matter. Any plan to address the deficiency will impact on this outcome. Additional Projections The Trustee requested that the actuary provide additional information to assist the directors and the City of Perth to reach informed decisions in terms of rectifying the unsatisfactory financial position of the CPSF. In the preliminary results of the actuarial valuation, the Actuary concluded that an increase in the employer’s defined benefit contribution to 30% from 1 July 2009 or earlier, is necessary. This compares with a current level of 15%. The increase would continue over a three year period to 30 June 2012 and then fall to 20%.


- 21 - 24 MARCH 2009


The Additional Projections paper demonstrates the impact of alternatives suggested by the Director of the CPSF. The objective is to return the CPSF to a satisfactory financial situation over a five year period. This is demonstrated as restoring 100% asset coverage of defined vested benefits by 30 June 2014. The scenarios considered assume that the CPSF fund will produce a negative return of 20% in 2008/09. In view of the 12.8% negative performance to 31 December 2008 and the poor outcomes in January and February, this is a realistic assumption, although the actuary has additionally provided projections based on a negative return of 10% for this year. Future returns are estimated to average 6.75% per annum. Alternative suggestions in the paper Additional Projections are as follows:- • Contribution rate increase only will require a 27.5% employer contribution for

five years and 20% thereafter. • Lump sum contribution of $9 million with a 16% contribution rate. The

contribution rate would have to rise after 2014 due to it not providing contingency margins and the rising age of fund beneficiaries which makes the fund unsustainable.

• Lump sum contributions of $3.2 million on 1 July in each of 2009, 2010 and

2011. Although the financial situation would be restored by 2012 the contribution rate assumed at 16% would have to be increased to maintain the sustainability of the fund and build contingencies.

• It should be noted that if a 16% contribution rate is adopted, the fund is

expected to return to an unsatisfactory position by 2014, so a 17% contribution is proposed in this report.

Closure of CPSF Defined Benefits to New Members The Defined Benefit Fund at the City is generous to members. For a modest contribution of 4% (after contribution tax) the retiree obtains a guaranteed benefit based on average salary over the final three years of service and comprehensive life insurance cover at reduced cost. Members are protected from downside exposure to their contributions as the City effectively guarantees the benefits. However, any out-performance by the fund is credited to members accounts to increase their benefits when taken. The Defined Benefit section of the CPSF is clearly generous to its members in the present volatile investment market. There are very few defined benefit funds remaining open to new members and accumulation benefit funds have replaced them. It should be noted that the estimated $4.5 billion deficiency in the British Airways defined benefits fund was a prime cause of the proposed merger with QANTAS failing. Significant liabilities arise in these funds in adverse economic cycles and it is desirable that the open-ended nature of liabilities be closed off. A number of years ago the State Government closed its defined benefit fund to the new members.


- 22 - 24 MARCH 2009


It is proposed that the City also commits to this course effective from 1 April 2009.

FINANCIAL IMPLICATIONS

The financial implications of these recommendations commit a $3.2 million lump sum special contribution in each of 2008/09 and 2009/10. Additionally a further 3% special contribution will be made in 2009/10. Assuming the defined benefit fund is closed to new members this will cost an additional $639,033 to be included in the 2009/10 budget.

COMMENT AND CONCLUSIONS

On the basis of a 20% negative return in 2008/09, the CPSF has an estimated deficiency of $4.6 million as at 30 June 2009. Additionally there is a projected deficiency of $9 million at 30 June 2014 if no additional financial contributions are made. A plan to meet these deficiencies is required. Although not certain of acceptance by APRA and AustralianSuper, it is believed that a three year commitment to restoring the financial position of the CPSF should be formulated. Because of the financial strength of the City, it is likely that both APRA and AustralianSuper will accept realistic plans over a three year period. A three year plan will give the City some option to vary its contributions if investment returns over the period materially exceed the 6.75% per annum projections in the actuarial reports. The following are recommended:- • Commit to a lump sum contribution of $3.2 million to be made on 1 June 2009.

This additional contribution will be funded from savings in costs to be identified in the final budget review of 2008/09.

• Include in the budget for 2009/10 a further contribution of $3.2 million to be

made on 1 August 2009. • Consider the need for a further lump sum contribution in 2010/11 depending on

the fund performance in 2009/10 and the actuarial outlook at that time. • At a future date to be determined, look to pass on the costs of insurance to

members by increasing the employee contribution rate by 1.7% if they wish to maintain insurance cover at the current levels offered. An option to reduce the level and extent of the insurance should be given but this will require an amendment to the Trust Deed of the CPSF. There may be difficulty with implementing this in the short term as assurances have been given that the transition to AustralianSuper will not result in any immediate additional costs to members.


- 23 - 24 MARCH 2009


• Increase the employer contribution rate to 17% being a 3% special contribution instead of the existing 1%. Only the 14% base contribution will be credited to members’ accounts. This increase is to apply from 1 July 2009.

• To cap any future liability, it is recommended the closure of the CPSF defined

benefit fund to new members with immediate effect. • The CPSF is in a state of transition and assurances have been given that

benefits will remain the same when AustralianSuper takes over. For this reason a decrease in the current 20.5% benefit calculation is not recommended.

It was therefore recommended that the Council:- 1. APPROVES BY AN ABSOLUTE MAJORITY the payment of $3.2 million being

additional contribution to the City of Perth Superannuation Fund to be funded out of cost savings and accumulated surplus to be identified in the March 2009 budget review;

2. notes the recommendation to include further lump sum payments of $3.2 million

in the 2009/10 budget; 3. approves an additional employer contribution equivalent to 3% of salaries (17%

in total) of contributory members to the City of Perth Superannuation Fund from 1 July 2009;

4. approves the closure of the defined benefit fund to new members of the City of

Perth Superannuation Fund effective from 1 April 2009. Moved by Cr Tognolini, seconded by Cr Butler That the Council:- 1. APPROVES BY AN ABSOLUTE MAJORITY the payment of $3.2

million being additional contribution to the City of Perth Superannuation Fund to be funded out of cost savings and accumulated surplus to be identified in the March 2009 budget review;

2. notes the recommendation to include further lump sum payments of

$3.2 million in the 2009/10 budget; 3. approves an additional employer contribution equivalent to 3% of

salaries (17% in total) of contributory members to the City of Perth Superannuation Fund from 1 July 2009;

(Cont’d)


- 24 - 24 MARCH 2009


4. approves the closure of the defined benefit fund to new members of the City of Perth Superannuation Fund effective from the date of advice of this Council decision to the Superannuation Board.


FB69/09 LICENCE TO OPERATE SMALL BOAT HIRE, SWAN RIVER FORESHORE

BACKGROUND:

FILE REFERENCE: P1024569 REPORTING OFFICER: Vic Fuller RESPONSIBLE DIRECTOR: Garry Dunne, Director Service Units DATE: 3 February 2009 MAP / SCHEDULE: Map: Dinghy Hire Site - Swan River Foreshore This report was deferred by the Finance and Budget Committee at its meeting held on 3 March 2009. At the Finance and Budget Committee meeting held on 3 March 2009, the Committee requested that the administration obtain more information from the applicant on his experience in running such a venture and how he proposed to manage the business on site. An application for approval to operate a small boat hire business from the Swan River Foreshore, adjacent to, and to the west of, Barrack Square has been received from Mr Philip Martin. The boats will be 3.5 metre to 4.0 metre aluminium dinghies fitted with five horsepower outboard engines. The boats (to be licensed to carry four passengers) will be hired to adults only on an hourly basis, for the purpose of sightseeing on the Swan River. No permanent structure is required or proposed. It is proposed that the boats will be moored at, and launched from, the beach.


- 25 - 24 MARCH 2009


The applicant has also lodged a planning application with the Swan River Trust for approval to operate a dinghy hire business from this location. The Trust has advised Mr Martin that they require a commitment from the City of Perth to give Mr Martin access to the beach, before they will process this application. It is expected that the Swan River Trust will refer this planning application to the City for input, therefore this report does not address the authority of the matter of access to the beach.


Legislation Local Government Act 1995 A Licence to Occupy does not constitute a property disposition and is therefore not subject to the advertising requirements of Section 3.58 of the Local Government Act 1995. Strategic Plan Key Result Area: Liveable City Strategy: Outdoor City Strategy

DETAILS:

Foreshore Reserve 36167 is managed by the City under a Management Order from the Minister for Lands for the specific purpose of “public recreation”. The approach from Mr Philip Martin is entirely consistent with that purpose. This proposal will require a planning approval from the Swan River Trust and a mooring area licence required under the WA Marine Act. Mr Martin’s response to the request for additional information to support his application is as follows:- “Perth foreshore dinghy hire business I have been running a trailerised dinghy hire business since November last year and this venture on the Perth CBD foreshore will be an extension of that. At present clients collect their dinghies on a trailer and then tow them to wherever they want to use them in WA. To date, that has included people going to Kalbarri and Albany. When clients collect their boat they are given a full safety briefing on the safe use of the vessel, general operation of the vessel and the limits of its use in terms of the time of the day and type of water they can operate on. Since I have been running the business there have been no accidents, injuries or other problems with any of the clients, their boat, its equipment or trailer.


- 26 - 24 MARCH 2009


On site management of the business Storage. If permission is granted to keep the boats on the shore in Perth, they will be neatly and securely positioned so as not to be in the way when not in use, nor possible for anyone else to use. This will be done by completely removing all of the equipment from the boats so as to render them inoperable, and then securing them to each other with either metal cable or chain. By doing this it will not be possible to move them or launch them, for as a combined unit they would be very hard to manhandle. Operating conditions. The weather and river conditions will be assessed each morning to determine whether or not there will be any hire activity that day. The business will only operate in fair weather and when there are low winds. This is mainly due to safety but also for the enjoyment of the passengers on the vessels. The weather and river conditions will also be assessed during the day of hire, so that if the weather changes the hires will be stopped for that day. Customers will be able to book boats in advance on the understanding that hire will only commence if the weather is suitable. I will not be taking a deposit or bond for future bookings, so clients will feel no obligation or loss if they decide to cancel their booking for any reason, or if we have to cancel for safety reasons. Daily set-up. All of the equipment required to operate the vessels will be brought in by car or boat each day that hiring is possible. The equipment includes a small outboard engine for each vessel (which are lightweight and very easy to handle), fuel tanks (already filled), oars and all the safety equipment required by the DPI. This includes fire extinguishers, first aid kits, maps and torches for each vessel. In addition, there will be an additional first aid kit and fire extinguisher at the point of hire. Each vessel will be set-up by either myself or under my supervision and then tested a short distance to ensure that everything is working correctly. Usage briefing. As with my existing hire, all clients will be briefed on the safe use and general operation of the vessel. The boats and engines are easy to operate, with very few operational parts. All clients will be given a written confirmation of the return time of their vessel as well as my contact number. Safety. The boats will all be supplied with the required safety equipment detailed on the DPI licence, as well as the additional equipment mentioned above. In addition to this each group of clients will be required to have with them at least one fully-charged and operational mobile phone, which they will be required to keep with them and switched on throughout the duration of hire. They will also be required to take sufficient drinking water with them for their period of hire. No boats will be hired to a group that is either under the age of 21, appears irresponsible, appears under the influence of any alcohol or drug, or that in any way I feel is not suitable to be in charge of a vessel. This is something I already have experience with, as I have cancelled or refused to accept bookings where I have not been satisfied that the clients would use the vessel correctly or safely. Each vessel will be fitted with positive flotation, meaning that even if filled with water, the vessel will not sink.


- 27 - 24 MARCH 2009


Each group will also be fully briefed on safe and courteous conduct in the river. Although the river is generally quiet during the weekdays, they will be briefed on how to behave around other vessels and the significance of different markers. Bookings. It will be possible to reserve a boat for a particular day or time, subject to the weather conditions mentioned above. However, I expect most rentals to be on an ad-hoc basis for people who are planning a day or afternoon in the Barrack Street Jetty area. Daily shut-down. At the end of each day the boats will have all of their equipment removed from site and the vessels left secured. The site will always be left clean and tidy. On a regular basis, possibly daily, all of the equipment will be placed into one of the hire boats at the end of the day, and that boat and equipment will be removed completely from the site overnight to be thoroughly washed and rinsed. By doing that with a different boat each day I expect to be able to keep them all in a good clean condition. I would remove that boat from the site by taking it to a nearby boat ramp and retrieving it onto a trailer for cleaning at a boat wash facility. By having each boat regularly removed from the water I can also keep them easily maintained.”


INCOME: ACCOUNT NO: TBA BUDGET ITEM: Recreation and Culture - Other Recreation and

Sport - Parks, Gardens and Reserves BUDGET PAGE NUMBER: TBA BUDGET ITEM THIS COMPONENT BUDGETED AMOUNT: $22,100 $TBA AMOUNT RECEIVED TO DATE: $TBA ACTUAL INCOME: $ 0 in 2008/09

$500 in 2009/10 All figures quoted in this report are exclusive of GST.

COMMENTS:

It is recommended that a non-exclusive licence to operate a small boat hire business be granted to Mr Philip Martin for a term of five years over an area on the Swan River Foreshore adjacent to, and west of, Barrack Square, on the terms and conditions outlined in the recommendation section of this report. The proposed licence fee of $500 per annum, excluding GST, is the same nominal sum which has been applied to two similar access licences over this beach in recent years. The first of these was to a Miniature Americas Cup Yacht Hire business around 1993, which was unsuccessful. The second was to a Marine Golf Driving Range around 1998, which was also unsuccessful.


- 28 - 24 MARCH 2009


It is proposed that, if this business becomes established and seeks a further licence, that the identification of an appropriate licence fee will be the subject of greater focus and research. It was therefore recommended that, subject to the applicant securing planning approval to operate a small power boat hire service on the Swan River Foreshore to the west of Barrack Square, the Council grants a non-exclusive licence over part of the subject beach to Mr Philip Martin, on the following conditions:- 1. the Licensee shall be Mr Philip Martin of South Fremantle or a company to be

formed by Mr Martin. This licence shall not be transferable or assignable to any other party;

2. the licence shall be for a five year term commencing seven days after the grant

of planning approval by the Swan River Trust; 3. the licence shall permit operation of the small boat hire business between

sunrise and sunset each day during the licence term; 4. the licensed area shall be an area of the Swan River Foreshore in the location

shown on the attached plan; 5. a licence fee of $500 per annum, (excluding GST), is to be paid by quarterly

instalments of $125, in advance; 6. the licence shall be subject to temporary suspension upon notice from the City,

on those occasions when the site is required for major events. No compensation shall be payable to the licensee if any suspension occurs;

7. the Licensee is required to take out and hold current during the term of the

licence indemnity insurance for public liability for an amount of not less than $10,000,000 for any one claim. Evidence of such insurance shall be provided to the City prior to commencement of this licence;

8. the sale of food, refreshments and other items not associated with the small

boat hire is not permitted; 9. any advertising easels or directional signage within the licensed area, or the

adjoining roads, parks and other facilities will need to be the subject of a separate application;

10. mooring of the small boats is to be subject to the approval of the Swan River

Trust; 11. the site is to be maintained in a neat and tidy manner with all rubbish removed

daily; 12. refuelling of the boats is to be by way of removable fuel tanks. Refilling of the

tanks will not be permitted on site;


- 29 - 24 MARCH 2009


13. overnight storage of up to five dinghies will be permitted on the foreshore at the sole risk of the Licensee, provided they are neatly stacked and they are not a hazard to visitors to the foreshore;

14. the licence shall be documented in the format of the City’s standard licence in

letter form. Moved by Cr Tognolini, seconded by Cr Butler That the Council REFUSES the request received from Mr Philip Martin for a non-exclusive licence over an area of the Swan River Foreshore in the location shown on the attached plan, to operate a small power boat hire service on the Swan River Foreshore to the west of Barrack Square. The motion was put and carried The votes were recorded as follows:- For: Crs Davidson, Butler and Tognolini Against: Nil In accordance with Regulation 11(da) of the Local Government (Administration) Regulations 1996 the reason for the decision made being significantly different to that recommended is because the Finance and Budget Committee considered that the operation of a small boat hire service from the Swan River Foreshore was not an appropriate use of the area.

FB70/09 FEASIBILITY STUDY TO PRESENT A SPORTING FESTIVAL

BACKGROUND:

FILE REFERENCE: P1011710-5 REPORTING OFFICER: Zoe Morgan RESPONSIBLE DIRECTOR: Garry Dunne, Director Service Units DATE: 6 March 2009 MAP / SCHEDULE: N/A This report was endorsed by the Marketing, Sponsorship and International Relations Committee at its meeting held on 17 March 2009.


- 30 - 24 MARCH 2009


At its meeting held on 25 November 2008, the Marketing, Sponsorship and International Relations Committee requested a report on the possibility of the City hosting a weekend sporting festival. A feasibility study is required to determine the funding and resources required for such an event. The City has sought quotations from external organisations to prepare the study.


Strategic Plan Key Result Area: Liveable City Strategy: Unique City Strategy

DETAILS:

The City invited the following companies to submit quotations to provide a business proposal to implement a multi sporting weekend in the city of Perth:-

• Tri Events WA;

• DG Global Productions;

• Pro Tramp Australia Pty Ltd;

• SuperSprint Events;

• Triathlon Australia Ltd;

• USM Events;

• Elite Sports. Responses were received from two of the above, with Tri Events WA being the preferred supplier, delivering the plan for $13,500 in an eight week timeframe. Tri Events WA is required to prepare a Business / Feasibility Plan for presenting a two day (weekend) multi-sporting event for adults and children in the city of Perth. The event would be expected to be held in the 2009/10 financial year and utilise the following reserves/venues/facilities to accommodate sports, spectators and entertainment:-

• Langley Park;

• the Esplanade Reserve;

• the Supreme Court Gardens;

• adjacent roads – such as Riverside Drive and Mounts Bay Road;

• Perth Water – Swan River;

• Barrack Square.


- 31 - 24 MARCH 2009


The objective of the two-day multi sporting event is to attract a large number of local competitors and spectators to the foreshore region of the city of Perth for the full duration of the two day period. It is envisaged a number of sporting disciplines would participate via agreement and coordination by their own state or administrative bodies. Sports could include, but not be limited to, open water swimming, cycling, running / walking, triathlon, rowing, beach volleyball and lawn sports. The companies were advised that the Business / Feasibility Plan would need to address:- 1. A draft program of events to take place on the two consecutive days. 2. Proposed times and location of each event for each sporting discipline. 3. Estimated participant numbers in each sport/event 4. Preferred timing of the event in the 2009/10 financial year. 5. Support for the sporting activities from the relevant state or administering body. 6. Indication of the requirements and availability of sports administrators, umpires,

support staff and volunteers to manage each of the events. 7. Participant / competitor marketing, which will need to be undertaken to achieve

targeted participation. 8. Audience marketing, to encourage visitors to watch the events. 9. General marketing, including proposed name of the weekend to obtain media

coverage and community awareness. 10. Media partners. 11. Other activity / entertainment, including official welcome and post-event

presentation and wrap-up, to ensure the event appeals to all patrons (competitors and spectators).

12. Event management and personnel required to deliver the event. 13. Infrastructure required to accommodate the event and patrons (competitors and

spectators). 14. Event management structure. 15. Risk analysis detailing:-

15.1 critical issues; 15.2 financial issues – underwriting costs, revenue streams including entry

fees and sponsors; 15.3 management issues; 15.4 operational issues including weather and timing.

16. Implementation Plan including critical path and milestones. 17. Detailed Budget – income and expenditure.


- 32 - 24 MARCH 2009



ACCOUNT NO: GL136317 BUDGET ITEM: Economic Services - Other Economic Services -

Marketing Administration BUDGET PAGE NUMBER: 14 BUDGETED AMOUNT: $1,034,147 AMOUNT SPENT TO DATE: $ 609,047 PROPOSED COST: $ 13,500 BALANCE: $ 411,600 All figures quoted in this report are exclusive of GST.

COMMENTS:

Approval is sought for the City to proceed with the commissioning of a feasibility plan at the unbudgeted cost of $13,500 (excluding GST). Moved by Cr Butler, seconded by Cr Tognolini That the Council:- 1. APPROVES BY AN ABSOLUTE MAJORITY the unbudgeted

expenditure of $13,500 (excluding GST) to produce a feasibility plan to present a sporting festival in the city of Perth;

2. notes the expenditure in part 1 above being charged to Budget Item

‘Economic Services - Other Economic Services - Marketing Administration’.



- 33 - 24 MARCH 2009


FB71/09 UNBUDGETED CAPITAL WORKS - STREET TREE FENCING AND UNDER TREE PLANTING - ST GEORGES TERRACE, WILLIAM STREET TO MILL STREET

BACKGROUND:

FILE REFERENCE: P1009965-7 REPORTING OFFICER: Victor Roberts RESPONSIBLE DIRECTOR: Doug Forster, Director Business Units DATE: 3 March 2009 MAP / SCHEDULE: Photographs of protective ornamental fencing to street

trees - Before and After This report was endorsed by the Works and Urban Development Committee at its meeting held on 16 March 2009. Late last year the Works and Urban Development Committee considered and approved the supply and installation of low fences around street trees in St Georges Terrace between Barrack and William Streets. The proposal was to install the fences until under-tree plantings were sufficiently established to be self sustaining. Public feedback has been very supportive of the results and as a consequence a proposal is presented to extend the project to Mill Street.


Legislation Local Government Act 1995 Local Government (Functions and General) Regulations

1996 Strategic Plan Key Result Area: Attractive and Functional City Strategy: Dynamic City Strategy Policy Policy No and Name: 9.2 - Expenditure - Authorisations - Annual Items

DETAILS:

The installation of under tree planting and fencing to 28 street trees in St Georges Terrace between Barrack Street and William Street was undertaken earlier this year. Previously the base of these street trees was planted with ivy. The areas were subjected to pedestrian damage and used to dispose of litter and cigarette butts.


- 34 - 24 MARCH 2009


Since the fences and plantings were completed in January 2009 these areas have received positive feedback from the public and provided a much improved street appeal. There has been a noticeable and dramatic drop in damage to the plantings, litter and cigarette butts. It is proposed for consideration to extend the treatment west along St Georges Terrace to Mill Street to improve the streetscape in this high pedestrian section. This will require the modification to paving at 45 tree locations, the installation of galvanised tree surrounds, fencing and under tree plantings.


Expenditure proposed: ACCOUNT NO: 2007/08 capital works project BUDGET ITEM: TBA BUDGETED AMOUNT: $ 0 AMOUNT SPENT TO DATE: $ 0 PROPOSED COST: BALANCE REQUIRED:

$90,000 TBA

Funding for the work completed in the Barrack Street to William Street stage was included in the 2008/09 capital works program. Further funding has tentatively been allocated in the draft 2009/10 capital works budget. In order to bring the 2009/10 project forward, approval is sought to reallocate funds from savings identified in the 2008/09 capital works program.

COMMENTS:

Following the public support of the first stage of the street tree fencing and planting it is proposed that this treatment is continued to other high pedestrian areas. The success has been confirmed by flourishing plant growth, not being used as cigarette butt or bike parking areas, minimal litter as the surface is above the surrounding footpaths and water retention as mulch is contained. The extension of under tree treatment will require a commitment of additional staff and resources to provide adequate maintenance and allow for hand watering of these areas that are not currently system irrigated. An allowance will be made in the 2009/10 operating budget accordingly.


- 35 - 24 MARCH 2009


Moved by Cr Butler, seconded by Cr Tognolini That the Council:- 1. approves the extension of the street tree fencing and under tree

planting west along St Georges Terrace, from William Street to Mill Street at a cost of $90,000 (excluding GST);

2. APPROVES BY AN ABSOLUTE MAJORITY the unbudgeted

expenditure in part 1 above; 3. notes the expenditure in part 1 above being sourced from identified

savings in the 2008/09 March Budget Review. The motion was put and carried The votes were recorded as follows:- For: Crs Davidson, Butler and Tognolini Against: Nil

FB72/09 TENDER 047-08/09 - LIFT UPGRADE, MAYFAIR STREET CAR PARK

BACKGROUND:

FILE REFERENCE: P1024281 REPORTING OFFICER: Karwai Wong RESPONSIBLE DIRECTOR: Garry Dunne, Director Service Units DATE: 3 March 2009 MAP / SCHEDULE: N/A This report was endorsed by the Parking Committee at its meeting held on 16 March 2009. The lifts at the Mayfair Street car park were installed in 1987. In recent years they have been causing reliability concerns. Frequent break downs are trapping passengers in the lift cars and car levelling at landings has become inconsistent, resulting in tripping hazards.


- 36 - 24 MARCH 2009


The maintenance contractor, Otis Elevator Company, has recommended a major upgrade to fit current technology componentry and controls, as well as to bring the lifts to current Australian Standards. The City’s independent lift consultant has checked this recommendation and has reached the same conclusion. An invitation seeking tenders was advertised in The West Australian newspaper on Wednesday, 19 November 2008.


Legislation Local Government (Functions and General) Regulations 1996

Section: 11 - 24 - Tenders for Providing Goods or Services Legislation Local Government Act 1995 Section: 6.8 (1)(b) Strategic Plan Key Result Area: Attractive and Functional City Strategy: Capable and Responsive Organisation Strategy Policy Policy No and Name: 9.7 - Purchasing Policy

DETAILS:

Five sets of tender documents were collected or downloaded during the tender period. Representatives from the companies listed below attended the mandatory site briefing held on Tuesday, 25 November 2008. The tender closed at 2.00pm on Thursday, 22 January 2009 and three submissions were received as follows:-

Tenderer Program Schedule

Tender Amount

Five year Maintenance

Kone Elevators Pty Ltd 47 weeks $518,644.75 $13,000pa

ThyssenKrupp Elevator Australia Pty Ltd 49 weeks $518,800.00 $15,000pa

Otis Elevator Company Pty Ltd 49 weeks $570,028.00 Existing maintenance

provider All of the tenderers are established, reputable lift contractors. Kone Elevators Pty Ltd and Otis Elevator Company Pty Ltd currently hold lift maintenance and lift upgrade contracts with the City of Perth.


- 37 - 24 MARCH 2009


The tender was assessed against the following published criteria:- • Program of works.

• Experience of Key Personnel and Similar Experience.

• Appreciation and Methodology.

• Proposed Equipment.

• Availability of Spare Parts. ThyssenKrupp Elevators Pty Ltd scored the highest in the “Appreciation and Methodology” criteria and was equally matched with Kone Elevators Pty Ltd in the qualitative assessment scores, followed by Otis Elevator Company Pty Ltd. Otis Elevator Company Pty Ltd conformed to the specification and also provided an alternate upgrade solution however they did not address the selection criteria as well as the other tenderers. The combination of the lowest qualitative assessment score and the highest tender price lead to the conclusion that the Otis tender did not represent the best value for money. The submission by Kone Elevators Pty Ltd required further negotiations, primarily with respect to tender validity and departures from the specification. ThyssenKrupp Elevators Pty Ltd conformed to the specification and provided a competitive program schedule, maintenance price and tender price. The tenders from both ThyssenKrupp Elevators Pty Ltd and Kone Elevators Pty Ltd were both conditional upon the City entering into five year maintenance contracts over these lifts. While that makes them technically non-conforming tenders, the City’s tender conditions allow for consideration of non-conforming tenders at the City’s option. In this case, it is considered that this condition can be accepted and that acceptance should be cost neutral, as the existing maintenance contract with Otis Elevator Company Pty Ltd permits partial cancellation with an appropriate cost adjustment. As there was a very small price differential between the tenders from ThyssenKrupp Elevators Pty Ltd and Kone Elevators Pty Ltd, it is recommended that the Mayfair Street lift upgrade be awarded to ThyssenKrupp Elevators Pty Ltd, at a cost of $518,800 (excluding GST).


No budget allocation exists for this project. It is proposed that a 30% deposit of $155,640 (excluding GST) be funded from the Asset Enhancement Reserves in the current financial year in order to initiate the works. The remainder of the cost, being $384,360 (excluding GST), detailed below, is proposed to be listed in the 2009/10 Capital Works budget.


- 38 - 24 MARCH 2009


The maintenance expenditure for five years following the 12 month defects liability period will be charged to the Property Maintenance budget for the Mayfair Street car park.

Item Cost Expense for 2008/09

Expense for 2009/10

Lift Upgrade Works $518,800 $155,640 $363,160Lift Consultancy $ 7,500 $ 7,500Sub Total $526,300 $370,660 Contingency $ 13,700 $ 13,700TOTAL $540,000 $155,640 $384,360

Budget Item where monies have been / will be fully expended:- ACCOUNT NO: Not yet established BUDGET ITEM: No budget allocation exists for this project BUDGET PAGE NUMBER: N/A BUDGETED AMOUNT: $ 0 AMOUNT SPENT TO DATE: $ 0 PROPOSED COST: $155,640 (2008/09) + $384,360 (2009/10) BALANCE: ($155,640) (2008/09) Budget Item where additional funds to come from:- ACCOUNT NO: N/A BUDGET ITEM: Asset Enhancement Reserve BUDGET PAGE NUMBER: Statements and Notes: 25 ACCOUNT BALANCE AT 03/03/09: $81,479,805 PROPOSED COST: $ 155,640 BALANCE: $81,324,165 This report does not consider where the 2009/10 funds will be sourced, as that will be dealt with as part of the budget process. All figures quoted in this report are exclusive of GST. Moved by Cr Tognolini, seconded by Cr Butler That the Council:-

1. accepts the most suitable tender, being that submitted by

ThyssenKrupp Elevator Australia Pty Ltd to upgrade the lifts at the Mayfair Street car park, at a cost of $518,800 (excluding GST);

(Cont’d)


- 39 - 24 MARCH 2009


2. notes that the tender acceptance in part 1 above commits the City to enter into a five year maintenance contract with ThyssenKrupp Elevator Australia Pty Ltd;

3. APPROVES BY AN ABSOLUTE MAJORITY the unbudgeted

expenditure of $155,640 (excluding GST) in part 1 above, being 30% of the lift upgrade tender price;

4. notes the expenditure in part 3 above being accommodated from the

Asset Enhancement Reserve; 5. lists an allocation of $384,360 (excluding GST) in the 2009/10 Capital

Works Budget for the balance of the contract in part 1 above, plus an allowance of $21,200 for consultancy and contingencies.


FB73/09 SETTING OF PARKING FEES - 2009/10

BACKGROUND:

FILE REFERENCE: P1003659-5 REPORTING OFFICER: Pat Abernethy and Ian Berry RESPONSIBLE DIRECTOR: Doug Forster, Director Business Units DATE: 9 February 2009 MAP / SCHEDULE: Schedule 7 - Private Car Park Providers - Fee

Comparisons Schedule 8 - Comparison of existing parking stations to adjacent on-street parking fees Schedule 9 - Proposed Schedule of Fees 2009/10

This report was endorsed by the Parking Committee at its meeting held on 16 March 2009. The On-Street and Off-Street Parking fees have been reviewed in accordance with the Council’s budget policy and anticipated influences for the coming year. On-street fees have been considered in accordance with the recently adopted On-street Parking Policy which relates mainly to traffic management and transport issues.


- 40 - 24 MARCH 2009


In the 2008/09 budget, off-street parking fees generally were increased by ten cents per hour in the inner-city facilities. To dissuade long term parking in favour of short-term, daily rates were increased by $2.00 per day at the inner city car parks. Kerbside parking in the CBD area was increased ten cents per hour to $2.70, in the outer areas by ten cents to $2.10 and a new zone created for West Perth and Northbridge which levied an on-street fee of $2.40 per hour. At the November 2008 budget review, expected gross income was increased to match the reality in demand. In total the projected total income was increased from $45.1 million to $45.9 million. To date, the income trend is in accordance with the revised budget however the latter half of the year may see a decline. Of the total of $45.9 million approximately $10.6 million is from on-street parking. Some highlights of the 2008/09 year to date are:- • Commencement of the reconstruction of the Elder Street car park.

• Implementation of the Carbon Off-set Initiative with the proposed planting of 85,000 trees.

• The continuation of the new temporary car park on Lot 1192, Wellington Street.

• A review of the parking fees in the Pier Street and Cultural Centre car parks to provide more short-term parking.

• Providing for bicycle storage in the new Elder Street car park.

• Creation of additional motor cycle parking bays in several of the City car parks.

• Implementation of the “greener place to park” promotional campaign.

• The assessment of the existing Fire Station car park for possible development into a multi storey facility.

• Continuing roll out of REINO ticket machines which provide improved customer services by way of on-line credit card transaction services.

• Implementation of a car pooling service into the Roe Street car park which complements the existing service at the Mayfair and Queens Gardens facilities.

• The introduction of a flat night-time fee at the Perth Convention Exhibition Centre (PCEC) car park of $11.00 which supports events on the Esplanade Reserve, Perth Convention Exhibition Centre and nearby reserves.


- 41 - 24 MARCH 2009



Legislation Local Government Act 1995 Perth Parking Management Act 1999 Strategic Plan Key Result Area: Prosperous City Strategy: Business City Strategy Policy Policy No and Name: 9.1 - Budget Policy

DETAILS:

Emerging Issues and Influences on the 2009/10 Budget 1. Opening and Closure of Car Parks The Elder Street car park closure has meant that 480 bays have been lost for the redevelopment period. The facility is not expected to be reopened until July, 2010. Notice has been served by the State Government through the East Perth Redevelopment Authority that the closure of Lot 1192 will likely occur in April 2009 even though the full extent of the Link Project is dependent on Federal Government funding. The State Government has announced that the new Police complex will go ahead. The site is presently leased by the City for the Fitzgerald Street car park, it will close in April 2009. 2. CAT Bus Services and Parking Levy It has not been possible to obtain formal advice however it is likely that the increase in the Parking Levy for 2009/10 will be 4% to 5%. In 2008/09 based on levies of $183 per bay short-stay and $212 per bay long-stay the City will pay $3.1 million towards the operation of the Central Area Transit (CAT) system. There is considerable demand on the CAT bus routes particularly on the Blue service during the morning, midday and evening peaks. The latest customer service analysis by Transperth (previously reported) indicates that passengers are now being left behind as the buses are at capacity during those periods. The City has supported the State Government’s Public Transport Authority for the purchase of seven additional buses to increase the frequency of the Yellow CAT service, extend weekend and evening services and implement route changes in the eastern end of the city. A submission has been forwarded to the Federal Government’s Infrastructure Australia Fund accordingly.


- 42 - 24 MARCH 2009


3. Motorcycle Parking Presently, motorcycle parking is charged at 50% of a standard motor vehicle bay in all off-street parking facilities. On-street parking in the 400 bays is presently free however the new Policy requires a fee to be paid. As a result of the resolution of the Council at its meeting held on 27 January 2009, a letter was sent to the Minister for Planning and Infrastructure seeking the exclusion of the parking levies on motorcycle bays. No reply had been received at the time of writing this report. On average, three motor cycle bays will fit a single car bay. Demand for motor cycle parking in the city is increasing as is the demand for the service to be free. It is not unreasonable therefore that should the Department for Planning and Infrastructure reduce the parking levy on motor cycles, that the City reduces parking fees accordingly. Should the Levy remain as is, or be reduced to zero, it is recommended that the 530 (on-street plus off-street) motor cycle parking bay fees, be reduced to 33% of a car bay as a City initiative. 4. Implementation of New On-Street Parking Policy The recently approved On-street Parking Policy has a number of ramifications for fee setting and the income generated from these fees.

4.1 Differential between On-street and Off-street Fee

The new policy requires a 20% differential between on-street and off-street fees to encourage motorists who are going to stay for any extended time to use the off-street car parks. On-street parking as a consequence is freed up to support business and other activities. Schedule 8 – provides a comparison between parking station fees and the adjacent on-street fees. It is noted that a price differential has been in place for the past ten years however has not been strictly defined as it now is at 20%. In the main, the proposed on-street fees will be a minimum of 20% above those in the off-street facilities apart from the Citiplace, His Majesty’s, State Library and Cultural Centre car park (the PCEC is exempt).

Citiplace is a high turnover, short-term use facility with very little on-street parking immediately adjacent to it. Being a Council policy the 20% differential would need to be formally waived for the four car parks listed above. Dependent on the fee option adopted, the price differential will be the difference between the on-street and off-street fees in the respective adjacent areas.


- 43 - 24 MARCH 2009


4.2 Extended Fee Paying Area

The new policy has, with some exceptions, proposed that all bays within the city be fee paying six days per week. There are currently approximately 2,800 bays on which on-street fees are levied. It is estimated that there are a further 2,360 bays or prospective bays on which fees are to be levied. However use of bays varies considerably as a consequence so does income. A separate report is to be provided identifying the costs and timing of implementation however, for the purposes of this report it has been assumed that the roll-out will be partially in place by the end of the 2009/10 financial year. Some 300 additional ticket machines will be required for cars and 250 multi-bay meters for motor cycles.

Based on the above assumption, it is estimated that additional gross revenue of $1.68 million will be generated for 2009/10. However, this figure is very preliminary as the implementation will have its challenges in both timing and introduction into areas not previously fee paying.

4.3 Reduction in on-street fee, East Perth

Last financial year the existing two zones of on-street parking fees of the inner and outer Central Business District (CBD) were refined to include two extra zones of Northbridge and West Perth. The CBD zone took in the area bounded by Hay Street, Plain Street, Terrace Road and Victoria Avenue on the basis of the commercial / business nature of much of the area and the Perth Parking Management Act maps. The on-street rate which is the same as for the CBD, is $2.70 per hour. The new On-street Policy has set four zones. The only change is that the area described above has been included in East Perth thus excluding it from the CBD (Central Zone). As a consequence the on-street fee will reduce from $2.70 per hour to $2.10 per hour. There are approximately 350 bays impacted and the estimated reduction in income is $66,000 per annum. Some public comment is likely although it will be towards the end of the 2009/10 financial year that changes will be made.

5. Early Bird Parking A number of years ago, an Early Bird rate was introduced into particular car parks to encourage greater patronage but also to spread the morning and afternoon peak traffic periods. The Early Bird rate applies when motorists enter the car parks before 7.30am. It is proposed for consideration that the time be changed to 7.00am. The change will assist in encouraging motorists to enter the city even earlier. It is recognised that increased income is likely to result.


- 44 - 24 MARCH 2009


6. Work Zones and Permit Income It is noted that the issue and regulation of Work Zones and Parking Permits within the city is more appropriately managed by the Compliance Services Unit rather than the Off-street Parking Unit. As a consequence, income (approximately $1.0 million in 2008/09) from these sources will show in the Compliance income budget with a consequent reduction in the Off-street Parking income budget and the bottom-line figures shown in Schedule 9.

7. Event Parking Trends of events on City reserves for 2009/10 are appearing to be similar in number as 2008/09 which is around 200. The PCEC has decreasing bookings which have and will continue to impact on the Convention Centre car park in particular. 8. Options for Fee Setting Three options with gross income estimates are presented in Schedule 3 for the setting of parking fees for 2009/10. Each is discussed below. It has been assumed that additional revenue of $680,000 will result from the extended time and areas in 2009/10 as the On-street Parking Policy is implemented. The additional income will apply to all three options presented.

Option 1 – No increase Costs of operating CPP City of Perth Parking will increase due to energy price rises, parking levy increases, labour costs and general outgoings. The preliminary additional estimated increase in costs for 2009/10 is $810,000. The ’do nothing option‘ for the off-street component will result in reduced nett income due to operating costs rising and to the three car parks closing. However, overall taking into account the additional revenue from the gradual implementation of the new on-street policy the total income becomes positive. Option 2 – Application of a 3% CPI In determining an overall percentage increase for the off-street activities that might be applied, a CPI of 3% has been assumed. The ’rounding‘ factor to align fees with currency will result in fluctuations between car parks in percentage terms with some fees not changing. To correct this anomaly a ten cent rise in short-stay and 30 cents for long-stay bays is therefore proposed across all car parks. It is also proposed that on-street fees in all areas rise by ten cents per hour.


- 45 - 24 MARCH 2009


Option 3 – Option 2 with no rise in short-stay rates in car parks Option 3 will result in an increase of 30 cents per day (long-stay) in all car parks, no increase in hourly or short-stay rates and ten cents per hour for all on-street bays. The proposal is on the basis of holding short-stay rates but increasing long-stay to dissuade commuter parking. Given the current economic conditions however, it is unlikely that parking will be at a premium as was the situation 12 months ago.

9. Market Fee Comparisons

Overall the City’s parking fees are below that of private parking providers. It can be seen from Schedule 7 – Private Car Park Providers - Fee Comparisons and Schedule 9 – Proposed Schedule of Fees, that both hourly rates and daily maximum rates are generally less in the City’s facilities. There are occasional times and circumstances where competitors lower their rates to attract patrons off-peak or to change parking habits


The financial implications are governed by the Option adopted. Details of all options are presented in Schedule 9.

COMMENTS:

Demand for parking was strong for the first six months of the 2008/09 financial year but will fall with fewer jobs being available in the city (demand for office space as an indicator is already falling) and less disposable income for shopping and other recreational purposes. In a climate of economic crisis and demand on personal finances it is considered prudent for the City not to add to individual financial burdens and continue to encourage people to work, shop and visit the city. The recommended Fee Option 2 is based on a CPI increase to recover expected cost increases. At the Parking Committee meeting held on 16 March 2009, it was resolved that Option 3 of the 2009/10 Schedule of Parking Fees as detailed in Schedule 9, be supported, subject to the endorsement of the Finance and Budget Committee.


- 46 - 24 MARCH 2009


Moved by Cr Butler, seconded by Cr Tognolini That, subject to the endorsement of the Finance and Budget Committee, the Parking Committee:-

1. supports Option 3 of the 2009/10 Schedule of Parking Fees as

detailed in Schedule 9 being included in the proposed 2009/10 Schedule of Fees and Charges for Council adoption;

2. notes the following assumptions and initiatives which underpin the

setting of off-street and on-street parking fees for 2009/10:-

2.1 motorcycle parking fees being set at 33% of the corresponding car bay rate (presently set at 50% );

2.2 the 20% differential between adjacent on-street and off-street

bay fees as set-down in the On-street Parking Policy not be applied for the Citiplace, State Library, His Majesty’s and Cultural Centre car parks (the Perth Convention Exhibition Centre is excluded under the Policy);

2.3 the roll out of the new On-street Parking Policy provisions

including sign changes and installation of fee paying equipment is 30 June 2010 as a target date, however full annual income is unlikely to be achieved by that date;

2.4 Off-Street bays will be reduced by 810 in 2009/10 due to the

closure of the Fitzgerald Street, Elder Street and Entertainment Centre (Lot 1192) car parks;

2.5 it has been assumed that the State Government will not raise

the Parking Levy by an amount greater than 5%; 2.6 the Early Bird parking operating times in car parks will finish

at 7.00am each weekday (presently finishing at 7.30am); 2.7 income from Work Zone and Permit fees are no longer

incorporated into the parking budget. The motion was put and carried The votes were recorded as follows:- For: Crs Davidson, Butler and Tognolini Against: Nil


- 47 - 24 MARCH 2009


FB74/09 GENERAL BUSINESS 1. The Northbridge Link Project Cr Davidson requested an update on the progress of the Northbridge Link Project. The Chief Executive Officer advised that clarity is being sought from the state government as to the future direction of the project. 2. 5 Barrack Street and Savoy Hotel Cr Davidson requested information on the property located at 5 Barrack Street and the Savoy Hotel. The Director Service Units advised that evaluations on both properties have been received and that further information will be provided at a future meeting of the Finance and Budget Committee. 3. 2008/09 Budget and 2009/10 Budget Preparations The Chief Executive Officer provided a verbal update on the expenditure for the current financial year and forecasts for the 2009/10 financial year.

FB75/09 ITEMS FOR CONSIDERATION AT A FUTURE MEETING • Land Issues – 4A (Queens Gardens) Car Park.

FB76/09 CLOSE OF MEETING There being no further business the Presiding Member declared the meeting closed at 5.18pm.

finance and budget committee - city of perth · pdf fileminutes of the meeting of the city of...

Documents