minutes of the ordinary meeting of kempsey shire council ... · 5/15/2018  · 4 - mr gary scott...

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This is page 1 of the full text minutes of Kempsey Shire Council ordinary meeting held Tuesday 15 May 2018. MINUTES OF THE ORDINARY MEETING OF KEMPSEY SHIRE COUNCIL 15 May 2018 commencing at 9.00am. PRESENT: Councillors E A Campbell (Mayor and Chairman), M J Baxter, L J Hauville, S E McGinn, B J Morris, A P Patterson, D F Saul, A T Shields and A J Williams General Manager, C L Milburn; Director Corporate and Commercial, S M Mitchell; Director Operations and Planning, R A Fish; Manager Governance and Information Services, D S Thoroughgood; and Minute Taker D M Pearson. 1 OPENING PRAYER “Dear Lord, help us in our deliberations today so that our decisions will be for the greater good for the whole of Kempsey Shire - Amen”. 2 ACKNOWLEDGEMENT OF THE TRADITIONAL ABORIGINAL LAND OWNERS “Council acknowledges that this meeting is being held on the traditional lands of the Dunghutti People”. 3 APOLOGIES Nil 4 DECLARATIONS OF INTEREST Councillor Shields declared a non-pecuniary non-significant interest in item 13.4 for the reason that she knows tenderers from South West Rocks. Councillor Campbell declared a non-pecuniary significant interest in item 15.1 for the reason that she is the subject of the item. Councillor Patterson declared a non-pecuniary non-significant interest in item 15.1 for the reason that he knows the person mentioned in the item. Councillor Hauville declared a non-pecuniary non-significant interest in item 13.4 for the reason that he worked with one of the tenderers in 2012.

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Page 1: Minutes of the ordinary meeting of Kempsey Shire Council ... · 5/15/2018  · 4 - Mr Gary Scott addressed Council speaking against item 15.1 no confidence in the Mayor 5 - Ms Janice

This is page 1 of the full text minutes of Kempsey Shire Council ordinary meeting held Tuesday 15 May 2018.

MINUTES OF THE ORDINARY MEETING OF KEMPSEY SHIRE COUNCIL 15 May 2018 commencing at 9.00am. PRESENT: Councillors E A Campbell (Mayor and Chairman), M J Baxter, L J Hauville, S E McGinn, B J Morris, A P Patterson, D F Saul, A T Shields and A J Williams General Manager, C L Milburn; Director Corporate and Commercial, S M Mitchell; Director Operations and Planning, R A Fish; Manager Governance and Information Services, D S Thoroughgood; and Minute Taker D M Pearson.

1 OPENING PRAYER “Dear Lord, help us in our deliberations today so that our decisions will be for the greater good for the whole of Kempsey Shire - Amen”.

2 ACKNOWLEDGEMENT OF THE TRADITIONAL ABORIGINAL LAND OWNERS “Council acknowledges that this meeting is being held on the traditional lands of the Dunghutti People”.

3 APOLOGIES Nil

4 DECLARATIONS OF INTEREST Councillor Shields declared a non-pecuniary non-significant interest in item 13.4 for the reason that she knows tenderers from South West Rocks. Councillor Campbell declared a non-pecuniary significant interest in item 15.1 for the reason that she is the subject of the item. Councillor Patterson declared a non-pecuniary non-significant interest in item 15.1 for the reason that he knows the person mentioned in the item. Councillor Hauville declared a non-pecuniary non-significant interest in item 13.4 for the reason that he worked with one of the tenderers in 2012.

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This is page 2 of the full text minutes of Kempsey Shire Council ordinary meeting held Tuesday 15 May 2018.

5 ASSESSMENT OF ITEMS LISTED FOR CONFIDENTIAL CONSIDERATION

2018.99 RESOLVED: Moved: Cl. Williams Seconded: Cl. Patterson That the confidential reports be considered in the confidential section of the meeting.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

6 CONFIRMATION OF MINUTES

2018.100 RESOLVED: Moved: Cl. Patterson Seconded: Cl. Shields That the minutes of the ordinary meeting of Kempsey Shire Council dated 17 April 2018 be confirmed.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

7 CITIZENSHIP CEREMONIES Nil

8 PUBLIC FORUM / PRESENTATIONS Public Forum 1 - Mr Troy Irwin addressed Council speaking in favour of items 15.1 no confidence in the

Mayor

2018.101 RESOLVED Moved: Cl. Morris Seconded: Cl. Saul That Mr Irwin be granted an extension of 3 minutes to complete his presentation.

Baxter F Campbell F Hauville F McGinn A Morris F

Patterson A Saul F Shields F Williams F

2 - Mr John Moore from Moore’s Nursery addressed Council speaking against item 15.1 no

confidence in the Mayor

2018.102 RESOLVED Moved: Cl. Morris Seconded: Cl. Patterson

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That Mr Moore be granted an extension of 3 minutes to complete his presentation.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

3 - Mr Mason and Ms Renee Marchment addressed Council speaking against item 13.4

Tender for the Management Lease and Operations of Council Public Swimming Pools

2018.103 RESOLVED Moved: Cl. Williams Seconded: Cl. Morris That Ms Marchment be granted an extension of 3 minutes to complete her presentation.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

4 - Mr Gary Scott addressed Council speaking against item 15.1 no confidence in the Mayor 5 - Ms Janice Newton addressed Council speaking against item 13.4 Tender for the

Management Lease and Operations of Council Public Swimming Pools

2018.104 RESOLVED Moved: Cl. Morris Seconded: Cl. Patterson That Ms Newton be granted an extension of 3 minutes to complete her presentation.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

6 - Ms Betty Green addressed Council speaking in favour of item 13.4 Tender for the

Management Lease and Operations of Council Public Swimming Pools 7 - Jye Palise addressed Council speaking against of item 13.4 Tender for the Management

Lease and Operations of Council Public Swimming Pools 8 - Mr Mark Morrison addressed Council speaking against item 15.1 no confidence in the

Mayor

2018.105 RESOLVED Moved: Cl. Morris Seconded: Cl. Shields That Mr Morrison be granted an extension of 3 minutes to complete his presentation.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

A petition was tabled containing 294 signatures and letters of support for the Crescent Head Aquatic Centre Management.

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At this stage 10.45am the meeting adjourned for morning tea and upon resumption at 11.04am all present at the adjournment were in attendance. Presentations

Nil

9 CONSIDERATION OF MOTIONS FOR CHANGES TO THE ORDER OF BUSINESS

2018.106 RESOLVED: Moved: Cl. Williams Seconded: Cl. Patterson That item 15.1 be brought forward as the first item of business and dealt with prior to any items brought forward from the public forum and the remaining order of business be adopted.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

10 CONSIDERATION OF REPORTS RELATING TO PUBLIC FORUM MATTERS

2018.107 RESOLVED: Moved: Cl. Morris Seconded: Cl. McGinn That the reports addressed in public forum be brought forward and dealt with following item 15.1.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

ITEM 15.1 NO CONFIDENCE IN THE MAYOR

Contact Person: Leo Hauville – Councillor File: F18/1377

PURPOSE I intend to move the following motion at the ordinary meeting to be held Tuesday, 15 May 2018. MOVED Moved: Cl. Hauville Seconded: Cl. Saul That the Council of Kempsey Shire expresses with regret that it no longer has confidence in Mayor Campbell in undertaking the role of mayor. 1 The Office of Local Government be informed of this decision.

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2 The Mayor commits to fulfilling her oath of office in serving the Kempsey Shire Community or, failing this, considers whether to continue her elected role.

The MOTION was PUT to the Meeting and was LOST.

Baxter A Campbell A Hauville F McGinn A Morris A

Patterson A Saul F Shields A Williams A

MOVED Moved: Cl. McGinn Seconded: Cl. Patterson 1 That the Council of Kempsey Shire express with sincere conviction, its complete confidence

in Mayor Campbell in undertaking the role of Mayor 2 That any future attempt to undermine the council and the role of the Mayor will not be

tolerated 3 That Council’s code of meeting practice be updated with the following- Motions of no confidence in the Mayor or Chairperson are to be deemed out of order and

are not to be accepted.

2018.108 RESOLVED Moved: Cl. Patterson Seconded: Cl. Baxter That Councillor McGinn be granted an extension of time to speak to the motion.

Baxter F Campbell F Hauville A McGinn F Morris A

Patterson F Saul A Shields F Williams F

An Amendment was MOVED: Moved: Cl. Morris Seconded: Cl. Hauville That the Council of Kempsey Shire express with sincere conviction, its complete confidence in Mayor Campbell in undertaking the role of Mayor. The AMENDMENT was PUT to the Meeting and was LOST.

Baxter A Campbell A Hauville F McGinn A Morris F

Patterson A Saul F Shields A Williams A

2018.109 The MOTION was PUT to the MEETING and was CARRIED.

Baxter F Campbell F Hauville A McGinn F Morris A

Patterson F Saul A Shields F Williams F

ISSUES Infractions of the following areas of the role by the Mayor have occurred:

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Local Government Act (LGA) 1993 Section 226 (a), (b), (c), (f) and (k). LGA 1993 Section 8 The Council Charter. Code of Meeting Practice not followed consistently and fairly. BACKGROUND The Kempsey Shire Community elected the Mayor to the role in 2012 and re-elected her in 2016. Council and the Community expect the role to be fulfilled fully and consistently promoting the democratic basis of our Australian community. Numerous examples are able to be given of shortfalls of Mayor Campbell undertaking the roles and responsibilities of the elected office. The Local Government Act (1993) does not address Motions of No Confidence but there are examples of Councils in New South Wales resolving them in the affirmative (some have been negative).

CONFIDENTIAL SESSION

2018.110 RESOLVED: Moved: Cl. Shields Seconded: Cl. McGinn That Council form itself into the Confidential Session, and at this stage, the meeting be closed to the public to permit discussion of the confidential business regarding item 13.4.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

CLOSED MEETING

The ordinary Council meeting IN CLOSED commenced at 12.17pm.

RESUME IN OPEN MEETING

2018.111 RESOLVED: Moved: Cl. Morris Seconded: Cl. Saul That the ordinary Council meeting in Open Meeting be resumed.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

The ordinary Council meeting resumed in OPEN MEETING at 12.47pm.

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ITEM 13.4 TENDER FOR THE MANAGEMENT LEASE AND OPERATIONS OF COUNCIL PUBLIC SWIMMING POOLS – TENDER NO. TQE17/31

Contact Person: Brian Ross – Team Leader Facility Services File: TQE17/31

PURPOSE

To consider and accept a tender for the management lease and operation of Council public swimming pools.

Director Operations and Planning Recommendation: That Council:

1 accept the tender of Hudoswim & Fitness Pty Ltd – Kempsey for the management lease and operation of Council swimming pools (Tender No. TQE17/31) for all pools for a period of 5 years, commencing 1 July 2018 until 30 June 2023, in accordance with the tender documentation and tenderer’s submission.

2 offer an option for extension of the management lease and operations for a further 5 years, from 1 July 2023 until 30 June 2028, subject to satisfactory performance and KPIs being met during the initial term.

3 commence negotiation of final management lease contract conditions with Hudoswim & Fitness Pty Ltd – Kempsey, prior to finalising and entering the aforementioned period contract.

4 authorise the final negotiated lease and contract documents to be executed under the seal of Council.

2018.112 RESOLVED Moved: Cl. Patterson

Seconded: Cl. Baxter 1 That Council decline to accept any of the tenders. 2 That Council enter into negotiations with Hudoswim and Fitness Pty Ltd and Crescent

Aquatic Centre Pty Ltd with a view to entering into a contract/s in relation to the Management Lease and Operations of Council Public Swimming Pools – Tender No. TQE17/31.

3 That the General Manager be delegated to negotiate and execute the contracts and affix the

Common Seal of Council. 4 The Council's reasons for declining to invite fresh tenders are that; a timeframes do not permit due to leases ceasing at the end of June. b fresh tenders are unlikely to come up with a different result.

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5 The Council's reasons for determining to enter into negotiations with the person or persons referred to in point 2 are that;

a they are existing operators and tenderers who have provided quality services for an

extended period of time. b there were over 300 submissions from members of the public in relation to the

recommendation. 6 That the negotiations be completed within 3 weeks. 7 That the negotiations are to not exceed a total of an additional 5% to the total value of the

recommended tender price.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

Reason for varying staff recommendation: Included in resolution ISSUES Tenders were invited by “Open Tender” in accordance with Section 167 of the Local Government (General) Regulation 2005 for the renewal of the Management leasing of Council’s four (4) swimming centres for a period of five (5) years from 1 July 2018 to 30 June 2023, with a further option of (5) years subject to satisfactory performance and KPIs being met running from 1 July 2023 until 30 June 2028. Tenders were invited from qualified pool entities/operators to manage Council’s four public swimming pools under a lease style arrangement. Tenderers were permitted to either make a submission for individual pools, and/or all pools. The tender documentation compiled and released for this tender was to attract quality contractors and lessees to tender for the long-term contract, as well as seeking to provide increased participation numbers from the community through improved facilities and ancillary sporting activities. The tender documentation reflected industry developments by moving away from the standard “Council Managed” system to an “Operator Based Managed” system. The tender assessment has now been completed based on these new processes and this report, as well as the Evaluation Probity Plan, explains the process of how the Tender Evaluation Panel (TEP) arrived at its conclusion and recommendation for TEQ17/31. This new model will reduce the internal operational costs of Council with the successful tenderer to take responsibility for costs involved in ordering goods, process materials, payment of vehicles, invoice processing and maintenance

BACKGROUND

Tender submissions were invited via TenderLink – an electronic tendering portal, as well as by

normal hand/ postal delivery to Council’s Tender Box located in the Customer Services Building in

Tozer Street, West Kempsey.

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Invitations to tender were advertised in the Sydney Morning Herald and the Macleay Argus

newspapers on Tuesday 16 January 2018 and advertised for a period more than 21 days through the

e-tendering portal, which is in line with Local Government and Kempsey Shire Council’s Procurement

and Tendering Guidelines.

A compulsory site inspection was undertaken on 7 February 2018 between 10.00am and 2.00pm for

inspection of all pools. A total of 19 company representatives attended these inspections.

All tenderers that submitted a tender attended this compulsory site inspection. During the tender process five addendums were issued based on questions raised by the tenderers

on the online tender forum (TenderLink). Details of these requests related to tender documentation

clarification and requests for additional operational or site information. Details of these requests

were responded to via the addendums.

A total of 30 organisations downloaded the tender documents via Council’s TenderLink website

during the tender period. At close of tender on 20 March 2018 at 2.00pm, five (5) e-portal tenders

and two (2) hand delivered submissions were received. No postal submissions were received.

Submissions were received from the following:

1 Hudoswim & Fitness Pty Ltd – Kempsey (e-portal and hand delivered submission)

2 Leisure & Recreation Group – West Wyalong

3 Crescent Aquatic Centre Pty Ltd – Crescent Head

4 BCL Aquatics – Bonny Hills

5 Brienna Elford – South West Rocks

6 South West Rocks Pool & Fitness – South West Rock (hand delivered submission only).

Council also received an “alternative non-conforming” submission from Hudoswim & Fitness Pty Ltd – Kempsey. An alternative tender was permissible within the Tender Documentation. Tenders were then evaluated by the Tender Evaluation Panel (TEP) in accordance with the endorsed Tender Evaluation and Probity Plan (TEPP), the tender specification, and as per the requirements of the Local Government Regulation 2005 (the regulation). All members of the TEP undertook a pre-assessment of each tender individually prior to meeting collectively. These pre-assessments were collected and recorded separately. Each TEP member then offered their non-priced score for each scoring/weighted item, and then a median was determined and electronically scored within the weighted and formulated excel spreadsheet. The spreadsheet also incorporated the pre-entered weighted “price” criteria. This process was overseen by an observer not part of the TEP to ensure compliance with the Probity Plan. The “alternative non-conforming” submission by Hudoswim & Fitness Pty Ltd was determined by the TEP to not meet the intent and needs of the Council to achieve the operator based managed model, and therefore was rejected.

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The following summaries are provided in relation to the overall evaluation assessment, excluding any reference to the “alternative non-conforming” submission. The below “option tables” identify which companies tendered for what pools within their tender submissions on individual price, individual technical as well as combined (price and technical), and their respective ranking (first, second and third) against other tenderers. These results are as follows:

The below table shows that there is very little change in the technical scoring from the pricing scoring, with the only being Brienna Elford moving into second place for South West Rocks Pool and Leisure Recreation Group moving into third place.

It was agreed by the TEP that based on the technical and price scoring, it would be prudent to break down further the costs for the “all pool” tenderers so that a full comparison could be undertaken to cross-reference the combined scoring (price and technical combined) to see if there are any benefits of either individual contracts or a combined (all pools) contract. The following results score sheet is as follows:

TQE17/31 Score Based on Price Only

Option 1 – Companies that tendered for all

4 swimming complexes (combined tender) Kem

psey

McE

lhon

e

Swim

ming Com

plex

Cre

scen

t Aq

uatic

Cen

tre

Sou

th W

est Ro

cks

Swim

ming Po

ol

Mac

leay

Mem

orial

Pool G

lads

tone

Hudoswim & Fitness Pty Ltd – Kempsey Yes Yes Yes Yes

BCL Aquatics – Bonny Hills Yes Yes Yes Yes

Leisure & Recreation Group – West Wyalong Yes Yes Yes Yes

Option 2 – Companies that tendered for all

individual swimming complexes (single

pool tender)

Hudoswim & Fitness Pty Ltd – Kempsey Yes Yes

Crescent Aquatic Centre Pty Ltd – Crescent Head Yes

Brienna Elford – South West Rocks YesSouth West Rocks Pool & Fitness – South West

Rock (Mr Schubert) Yes

Leisure & Recreation Group – West Wyalong Yes Yes Yes Yes

BCL Aquatics – Bonny Hills

First

Second

Third

TQE17/31 Score Based on Technical Only

Option 1 – Companies that tendered for all 4 swimming

complexes (combined tender) Kem

psey

McE

lhon

e

Swim

ming Com

plex

Cre

scen

t Aq

uatic

Cen

tre

Sou

th W

est Ro

cks

Swim

ming Po

ol

Mac

leay

Mem

orial

Pool G

lads

tone

Hudoswim & Fitness Pty Ltd – Kempsey Yes Yes Yes Yes

BCL Aquatics – Bonny Hills Yes Yes Yes Yes

Leisure & Recreation Group – West Wyalong Yes Yes Yes Yes

Option 2 – Companies that tendered for all individual

swimming complexes (single pool tender)

Hudoswim & Fitness Pty Ltd – Kempsey Yes Yes

Crescent Aquatic Centre Pty Ltd – Crescent Head Yes

Brienna Elford – South West Rocks YesSouth West Rocks Pool & Fitness – South West Rock (Mr

Schubert) Yes

Leisure & Recreation Group – West Wyalong Yes Yes Yes Yes

BCL Aquatics – Bonny Hills

First

Second

Third

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The results show that Hudoswim & Fitness Pty Ltd clearly demonstrates that with all options and variables considered, that they would be best suited to undertake the management of all Council Pools.

It is the opinion of the TEP that the company proposed in the recommendation as the successful tenderer will be able to successfully undertake the service(s) as required by the tender documentation and Council.

The full analysis, including the Evaluation Plan, Evaluation Probity Plan, full price and technical

analysis of the tenders received and supporting tender documentation is included in (Confidential

Appendix G). This appendix is submitted on a confidential basis as it involves commercial

information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it. (Local Government Act 1993, section 10A(2)(d)(i)).

On balance, the public interest in preserving the confidentiality of the commercial information supplied, outweighs the public interest in openness and transparency in Council decision making by discussing the matter in open meeting.

Note: Council also received 20 written independent submissions from members of the community during the tender period supporting some of the current lessees as well as some of the new tenderers. These submissions were noted by the TEP but were not considered as part of the evaluation and have no bearing on the outcome of this tender evaluation.

At this stage 12.59pm the meeting adjourned for luncheon and upon resumption at 2.05pm all present at the adjournment were in attendance.

11 CONSIDERATION OF REPORTS RELATING TO A CONSENSUS MOTION

2018.113 RESOLVED: Moved: Cl. McGinn Seconded: Cl. Williams

That the recommendations contained in items 13.5, 13.7 – 13.10 in the current agenda as listed be adopted.

Baxter F Campbell F Hauville F McGinn F Morris F

TQE17/31 Score Based on Combined ( all

Tenderers Comparison)

Option 1 – Companies that tendered for all 4 swimming

complexes (combined tender) Kem

psey

McE

lhon

e

Swim

ming Com

plex

Cre

scen

t Aq

uatic

Cen

tre

Sou

th W

est Ro

cks

Swim

ming Po

ol

Mac

leay

Mem

orial

Pool G

lads

tone

Hudoswim & Fitness Pty Ltd – Kempsey Yes Yes Yes Yes

Crescent Aquatic Centre Pty Ltd – Crescent Head Yes

Brienna Elford – South West Rocks Yes

South West Rocks Pool & Fitness – South West Rock (Mr

Schubert) Yes

Leisure & Recreation Group – West Wyalong Yes Yes Yes Yes

BCL Aquatics – Bonny Hills Yes Yes Yes Yes

First

Second

Third

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Patterson F Saul F Shields F Williams F

ITEM 13.5 CONSENT FOR COMMUNITY SENSORY GARDEN

Contact Person: Stephen Mitchell - Director Corporate and Commercial File: F18/2350

PURPOSE To consent to the establishment of a community sensory garden on Council owned land managed under lease by Community Housing Limited.

2018.114 RESOLVED Moved: Cl. McGinn Seconded: Cl. Williams That the General Manager be authorised to offer a lease to Community Housing Limited for Lot 1 DP112462 or 16 Forth Street Kempsey so that a community sensory garden can be developed.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

ISSUES Community Housing Limited (CHL) is an Australian housing provider delivering affordable housing and community services throughout Australia and internationally. In October 2017 NSW Minister for Social Housing Pru Goward announced CHL was successful in tendering for management of all social housing stock in Port Macquarie, Kempsey and Nambucca. Around 1,300 properties previously managed by NSW Family and Community Services (FACS) will be managed by CHL along with coordination and rental assistance services. CHL has approached Council to identify and lease a suitable block of land to develop a community sensory garden for their clients. CHL have received funding of $50,000 from FACS to develop this community sensory garden. Lot 1 DP112462 or 16 Forth Street, Kempsey is owned by Council. It has been vacant land maintained by Council since the previous residential house was moved about 25 years ago. The site is in the flood zone. CHL are supportive of this site for the proposed garden. A map showing the

location of the proposed site is attached at (Appendix H).

BACKGROUND Proposed Lease Agreement - Community Housing Limited enter into a three-year lease agreement with KSC making them responsible for the management and maintenance of the land. Charges relevant to the lease are set out in the Financial Implications section (refer below) and based on 2017/18 fees. For subsequent years the lease will align with the Fees and Charges adopted by Council each year. The lease will include the conditions below.

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• Development Approval – No development approval is required for the construction of

pathways, gardens, landscaping, temporary shelters, or fencing. If permanent structures or

major events are to be held on this site, then a Development Application would need to be

lodged.

• Environmental Conditions – Selected species need to be applicable to the site and no

obstruction to storm water or flood water is to be erected.

• Engagement Conditions – Community Housing Limited undertake consultation with

neighbouring residents to create awareness of the project and identify any issues prior to any

project work commencing, and to maintain an ongoing relationship with the local community.

Community Housing Limited aim to provide a community garden area in an area of Kempsey that is culturally neutral and easily accessible to social housing residents as well as members of the wider community. Partners in this community project include Community Housing Limited, NSW Family and Community Services, Mid North Coast Local Health District and Kempsey Shire Council. FINANCIAL IMPLICATIONS Currently there is no income generated from ownership of this land, which is maintained by Council. Proposed lease costs based on fees and charges, at 2017/2018 rates:

2017/18 CHARGES ONE-OFF ANNUAL

Lease Application Fee $ 246.00

Land Survey Charge $ 350.00

Water Meter Connection $1,200.00

Annual Lease Fee $ 120.00

Annual Rates $ 590.00

Annual Water Access Fee $ 295.00

Water Usage As per usage

TOTAL $ 1,796.00 $ 1,005.00

There will be incremental rise in the annual charges based on the 2018/2019 rates and thereafter as increases are approved by Council.

ITEM 13.7 PROCEDURE ON PAYMENT OF EXPENSES AND PROVISION OF FACILITIES TO THE MAYOR AND COUNCILLORS

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Contact Person: Daniel Thoroughgood – Manager Governance and Information Services

File: F18/818

PURPOSE To resolve to give public notice of proposed changes to Council’s procedure on the payment of expenses and provision of facilities to the Mayor and Councillors requiring the submission of a delegate’s report following attendance at conferences or seminars, to clarify Councillors ability to make superannuation contributions from their fees and to update those parts of the procedure impacted by changes to Council’s organisation structure.

2018.115 RESOLVED Moved: Cl. McGinn Seconded: Cl. Williams That the payment of expenses and provision of facilities to the Mayor and Councillors procedure be placed on public exhibition for a period at least 28 days.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

ISSUES Council is required under Section 253 of the Local Government Act 1993 to give public notice of its intention to amend a policy for the payment of expenses or provision of facilities allowing at least 28 days for the making of public submissions unless the Council believes the proposed amendment is not substantial. BACKGROUND Council resolved in February 2018 for the General Manager to have the Payment of Expenses and Provision of Facilities to Councillors altered to require that Councillors attending conferences are to return a delegate’s report. The draft procedure contains an additional clause 6.32 implementing this requirement. The role of Manager Information Management and Governance has been replaced by that of Manager Governance and Information Services. The draft procedure updates all references to the former title. Council’s proposed organisation structure provides for up to 1.0 FTE to exclusively provide support to elected members. Clause 10.7 of the procedure has been updated to reflect this. Per ATO Interpretive Decision 2007/205 Councillors may elect to make contributions to a complying superannuation fund from their Councillor fees. The draft procedure includes clauses 11.16 to 11.17 to clarify that this benefit is available to Councillors. Recommended amendments The following amendments are recommended for inclusion in the new draft policy for public exhibition.

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Insert a new clause 6.33 after Clause 6.32 – Other Government Procedure Provisions

• Require that Councillors who attend a conference or seminar provide a delegate’s report to

Council

Insert new clauses 11.16 and 11.7 – Superannuation Contributions

• Provide that Councillors may enter into an arrangement to make contributions to a complying

superannuation fund from their Councillor fees.

• Provide clarity that this is the only form of “salary sacrifice” benefit that may be made

available to Councillors.

Update clause 10.7 to provide for up to 1.0 exclusive full-time equivalent staff members to provide support to the Mayor and councillors Renumber existing clauses 6.33 to 6.43 to be clauses 6.34 to 6.44 Update a reference to clause 6.33 to be to 6.34 in clause 6.44 Update references to Manager Information Management & Governance to Manager Governance & Information Services in clauses 11.5, 11.6 and 11.9. Renumber existing clauses 6.33 to 6.43 to be clauses 6.34 to 6.44

The procedure document which shows amendments recommended is attached at (Appendix J).

ITEM 13.8 WAIVING OF HALL HIRE – STUARTS POINT HALL

Contact Person: Lyndal Harper – Acting Manager Community Relations File: F18/1667

PURPOSE To provide details of a request for support, for a Winter Wellness Expo on Saturday, 2 June 2018 at Stuarts Point Community Hall through waiving the hall hire fee and printing flyers and posters.

2018.116 RESOLVED Moved: Cl. McGinn Seconded: Cl. Williams 1 That the hall hire fee of $100 be waived for the Winter Wellness Expo.

2 That printing of flyers and posters be offered.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

ISSUES The Stuarts Point Community Hall 355 committee raises funds to maintain and operate the hall on

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behalf of Council. Under the current fees and charges the expo hire would be charged at a commercial half day rate of $100.00. If Council approves the request to waive this fee the hall committee will not receive this income. BACKGROUND A request has been received from Cally Haase to waive fees for the use of the Stuarts Point Community Hall on Saturday, 2 June to hold a Winter Wellness Expo. The expo would run from 10:00 am - 1:00 pm with stall holders, speakers, presenters, workshops and displays promoting healthy lifestyle. The organiser advises that 10 different businesses have registered their interest in participating in the event. The Stuarts Point Hall Committee was asked to comment on this request and have stated that their priority is for the hall to be used and the space activated and therefore they support waiving the hire fee. It is acknowledged that with potentially 10 stall holders the cost could be passed on and is not large, but this would create further administrative burden on the Expo organiser. This request is classified as a donation under Section 356 of the Local Government Act, Council may “in accordance with a resolution of the council, contribute money or otherwise grant financial assistance to persons for the purpose of exercising its functions”.

ITEM 13.9 STATEMENT OF CASH AND INVESTMENTS

Contact Person: Ron Wood – Chief Financial Officer File: N/A

PURPOSE Reporting on the statement of bank balance and investments for the month of April 2018.

2018.117 RESOLVED Moved: Cl. McGinn Seconded: Cl. Williams That the information be noted.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

ISSUES The Local Government Act 1993 requires that Council be notified at each ordinary meeting of details of all monies invested by Council.

A statement of balances and investments is shown in (Appendix K).

ITEM 13.10 DEVELOPMENT APPROVALS AND CONSTRUCTION CERTIFICATES

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Contact Person: Erin Fuller – Manager Development Assessment File: N/A

PURPOSE

To report that the following applications have been determined for the period of April 2018 and includes approvals by Private Certifiers.

2018.118 RESOLVED Moved: Cl. McGinn Seconded: Cl. Williams That the information be noted.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

REPORT DETAILS Council Report on Local Development Applications, Modifications and Review of Determinations 2017/LD-00434 Lot 1 DP30587 10 HAROLD WALKER AVENUE WEST KEMPSEY CHANGE OF USE OF EXISTING SHED TO A SECONDARY DWELLING & DETACHED CARPORT Applicant: MR M I KHALIL 2017/LD-00453 Lot 75 DP1187322 7 GILBERT CORY STREET SOUTH WEST ROCKS DETACHED MULTI DWELLINGS, ALTERATIONS & ADDITIONS TO EXISTING DWELLING, DETACHED CARPORT AND SUBDIVISION (STAGED) Applicant: HADLOW DESIGN SERVICES 2017/LD-00470 Lot 3 DP260017 873 STUARTS POINT ROAD STUARTS POINT DUAL OCCUPANCY (DETACHED) Applicant: DENNIS PARTNERS PTY LTD 2017/LD-00480 Lot 3 DP789562 152 CHAIN O PONDS ROAD COLLOMBATTI CONTINUED USE OF AN EXISTING BUILDINGS AS A DWELLING AND DETACHED BEDROOM Applicant: LOWE M & LOWE J 2018/LD-00008 Lot 65 DP247905 36 GREY GUM CRESCENT YARRAVEL TELECOMMUNICATIONS FACILITY Applicant: AURECON AUST PTY LTD 2018/LD-00019 Lot 623 DP584769 11-21 LAWSON STREET FREDERICKTON SITE REMEDIATION WORKS Applicant: ALL ABOUT PLANNING PTY LTD 2018/LD-00030 Lot 5 DP882231 297 LOFTUS ROAD CRESCENT HEAD MANUFACTURED DWELLING WITH ADDITIONS AND SHED Applicant: CKT DEVELOPMENTS PTY LTD 2018/LD-00057 Lot 3 DP259465 1048 POINT PLOMER ROAD CRESCENT HEAD DWELLING

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Applicant: MORRIS D & MORRIS L 2018/LD-00058 Lot 53 DP788456 49 HILLVIEW DRIVE YARRAVEL CONTINUED USE OF AN EXISTING BUILDING AS A SECONDARY DWELLING AND ALTERATIONS Applicant: DEATON J & DEATON R 2018/LD-00070 Lot 10 DP1014666 79 NEVILLE MORTON DRIVE CRESCENT HEAD DWELLING & SECONDARY DWELLING WITH ATTACHED SHED & TREE REMOVAL Applicant: ANTONIEFF P & ANTONIEFF K 2018/LD-00075 Lot 3 DP1240063 KEMPS ACCESS COLLOMBATTI DWELLING Applicant: THURLOW P & THURLOW L 2018/LD-00088 Lot 105 DP873692 414 BERANGHI ROAD CRESCENT HEAD CONTINUED USE OF AN EXISTING BUILDING AS A DETACHED DUAL OCCUPANCY Applicant: MR B K DIXON 2018/LD-00090 Lot 1 DP569841 98 CRESCENT HEAD ROAD SOUTH KEMPSEY ADDITIONS TO EXISTING EDUCATIONAL ESTABLISHMENT - FOOD TECHNOLOGY FACILITY Applicant: KEMPSEY ADVENTIST SCHOOL 2018/LD-00091 Lot 4 DP1236941 26 RIVERVIEW PLACE SOUTH WEST ROCKS TWO STOREY DWELLING Applicant: HADLOW DESIGN SERVICES 2018/LD-00100 Lot 18 DP729843 3 ROY KEMP CLOSE CRESCENT HEAD TWO STOREY DWELLING AND DETACHED STUDIO Applicant: FULLER E & GRAMMATICA R 2018/LD-00101 Lot 34 DP261268 22 NORTH STREET WEST KEMPSEY TWO DETACHED DWELLINGS AND SUBDIVISION (ONE LOT INTO TWO LOTS) Applicant: HIBBARD HOMES PTY LTD 2018/LD-00102 Lot 14 DP1162338 OLD STATION ROAD VERGES CREEK TREE REMOVAL Applicant: NORTH COAST LOCAL LAND SERVICES 2018/LD-00104 Lot 37 DP1175751 44 SPRINGFIELDS DRIVE GREENHILL TREE REMOVAL Applicant: FULLER G & FULLER M 2018/LD-00120 Lot 2 DP29562 6 SEAVIEW STREET SOUTH WEST ROCKS DEMOLISH EXISTING GARAGE & CONSTRUCT NEW GARAGE Applicant: WOOD P & WOOD C 2018/LD-00121 Lot 1 DP1191860 200 ILLA LANGI ROAD CRESCENT HEAD DETACHED STUDIO (SITE 73) Applicant: DOONAN M & GONZALEZ A

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2018/LD-00122 Lot 67 DP1037721 10 DILBERANG CLOSE SOUTH WEST ROCKS TWO STOREY DWELLING Applicant: HOTONDO HOMES KEMPSEY 2018/LD-00123 Lot 10 DP1113014 40 DALEY PLACE SOUTH KEMPSEY SHED Applicant: METCALFE K & METCALFE M 2018/LD-00124 Lot 25 DP23100 65 OCEAN AVENUE STUARTS POINT SHED Applicant: MR S J COULSON 2018/LD-00125 Lot 120 DP826640 13 JAMES RAMSAY PLACE WEST KEMPSEY DWELLING Applicant: CHARLES P & CHARLES J 2018/LD-00126 Lot 121 DP543857 69 LANDSBOROUGH STREET SOUTH WEST ROCKS ALTERATIONS & ADDITIONS TO EXISTING TWO STOREY DWELLING Applicant: HADLOW DESIGN SERVICES 2018/LD-00127 Lot 2 DP948653 236 RIVER STREET GREENHILL DUAL OCCUPANCY Applicant: MR M L HAWES 2018/LD-00128 Lot 11 DP875534 36 KOROGORA STREET CRESCENT HEAD ALTERATION AND ADDITIONS - TIMBER DECK WITH ROOF, EXTENSION TO EXISTING GARAGE Applicant: MR P J WATERS 2018/LD-00131 Lot 32 DP1168398 79 SHERWOOD ROAD ALDAVILLA SHED WITH ATTACHED CARPORT Applicant: MIDCOAST STEEL STRUCTURES 2018/LD-00132 Lot 23 DP625887 2910 SOUTH WEST ROCKS ROAD JERSEYVILLE CONTINUED USE OF AN EXISTING BUILDING AS A CABANA Applicant: ETHERIDGE G & ETHERIDGE K 2018/LD-00133 Lot 51 DP754419 784 BELMORE RIVER LEFT BANK ROAD BELMORE RIVER SHED & FLOOD MOUND Applicant: MR A N KESBY 2018/LD-00134 Lot 12 DP1063686 PIPERS CREEK ROAD DONDINGALONG SHED Applicant: MACLEAY VALLEY SHEDS 2018/LD-00137 Lot 14 DP1155813 50 JACK RICHARDSON DRIVE YARRAVEL OUTBUILDING - SHED - COMPLYING DEVELOPMENT - PRIVATE CERTIFIER Applicant: MR T S BELLETTE 2018/LD-00138 Lot 1 DP1029454 408 OLD STATION ROAD VERGES CREEK ADDITIONS TO EXISTING DWELLING

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Applicant: DELFORCE V & DELFORCE R 2018/LD-00139 Lot 109 DP1036461 16 GRANDVIEW PLACE SOUTH WEST ROCKS TWO STOREY DWELLING Applicant: HADLOW DESIGN SERVICES 2018/LD-00140 Lot 3 DP349314 10 ANGUS AVENUE WEST KEMPSEY ALTERATIONS AND ADDITIONS TO EXISTING DWELLING Applicant: MR L J BALE 2018/LD-00141 Lot 120 DP754400 52 BLAIRS LANE SOUTH KEMPSEY CONTINUED USE OF AN EXISTING BUILDING AS A DWELLING Applicant: VIVID PLANNING PTY LTD 2018/LD-00143 Lot 121 DP754400 84 BLAIRS LANE SOUTH KEMPSEY CONTINUED USE OF AN EXISTING BUILDING AS A DWELLING Applicant: VIVID PLANNING PTY LTD 2018/LD-00144 Lot 81 DP620411 4 NORTH STREET FREDERICKTON ALTERATIONS AND ADDITIONS TO EXISTING DWELLING Applicant: SMITH N & SMITH K 2018/LD-00145 Lot 2 DP878638 GREGORY STREET SOUTH WEST ROCKS CARPORT Applicant: COLLINS B & COLLINS E 2018/LD-00153 Lot 17 DP1826 94 EDGAR STREET FREDERICKTON CARPORT Applicant: MS N V WOODS 2018/LD-00154 Lot 201 DP593156 26 HODGSON STREET CRESCENT HEAD DWELLING ADDITIONS - COMPLYING DEVELOPMENT - PRIVATE CERTIFIER Applicant: MR R M TRAINOR 2018/LD-00039 REV01 Lot 521 DP749705 44 PAVANS ACCESS GRASSY HEAD CONTINUED USE OF AN EXISTING BUILDING AS SECONDARY DWELLING Applicant: MRS W A CUNLIFFE 2017/LD-00363 REV01 Lot 2 DP331295 6 QUEEN STREET SOUTH KEMPSEY CONTINUED USE OF AN EXISTING BUILDING AS A SECONDARY DWELLING Applicant: MR S D DENNY 2018/LD-00161 Lot 1 DP194293 12 INNES STREET EAST KEMPSEY ALTERATIONS AND ADDITIONSTO EXISTING TWO STOREY DWELLING Applicant: FOSTER M & FOSTER S 2018/LD-00165 Lot 29 DP1071014 14 LINKS VIEW CLOSE SOUTH WEST ROCKS SHED - COMPLYING DEVELOPMENT - PRIVATE CERTIFIER Applicant: HUDSON J & PITHER J 2018/LD-00166 Lot 1 DP770959 17 MACLEAY STREET FREDERICKTON

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SWIMMING POOL - COMPLYING DEVELOPMENT - PRIVATE CERTIFIER Applicant: MR C A BENNETT 2018/LD-00172 Lot 82 DP573659 13 WILLIAM STREET FREDERICKTON SWIMMING POOL - COMPLYING DEVELOPMENT - PRIVATE CERTIFIER Applicant: MR B BUBB-EDWARDS (Please note: This includes approvals by Private Certifiers).

Type No Sub Value Complying Development (SEPP) 7 7 $124,750.00 Local Development 38 38 $7,602,238.85 Modifications 2 2 -

There were 47 applications approved with a value of $7,726,988.85.

For the financial year to date there have been 455 approvals including 54 modifications approved. The 455 approvals (including 464 sub-applications) have a value of $85,452,872.25. Council Report on Development Applications refused, withdrawn or rejected 2018/LD-00076 Lot 724 DP1003551 RAINBOW REACH ROAD RAINBOW REACH

TWO STOREY DWELLING Rejected by Council Staff

2018/LD-00006 Lot 2 DP1145848 415 RIGHT BANK ROAD BELMORE RIVER FLOOD MOUND

Withdrawn by applicant

Council Report on Construction Certificates Building 2016/CB-00077 Lot 1 DP1042900 16 REGENT STREET KEMPSEY TWO STOREY DWELLING Applicant: DOUST S & DOUST M 2017/CB-00295 SP11027 23 MEMORIAL AVENUE SOUTH WEST ROCKS CHANGE OF USE TO VETERINARY CLINIC Applicant: HADLOW DESIGN SERVICES 2018/CB-00049 Lot 10 DP1014666 79 NEVILLE MORTON DRIVE CRESCENT HEAD DWELLING & SECONDARY DWELLING WITH ATTACHED SHED & TREE REMOVAL Applicant: ANTONIEFF P & ANTONIEFF K 2018/CB-00083 Lot 3 DP758444 5 KINCHELA STREET GLADSTONE ALTERATIONS & ADDITIONS TO EXISTING HALL Applicant: KEMPSEY SHIRE COUNCIL 2018/CB-00091 Lot 2 DP29562 6 SEAVIEW STREET SOUTH WEST ROCKS DEMOLISH EXISTING GARAGE & CONSTRUCT NEW GARAGE Applicant: WOOD P & WOOD C

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2018/CB-00092 Lot 1 DP1191860 200 ILLA LANGI ROAD CRESCENT HEAD DETACHED STUDIO Applicant: DOONAN M & GONZALEZ A 2018/CB-00094 Lot 10 DP1113014 40 DALEY PLACE SOUTH KEMPSEY SHED Applicant: METCALFE K & METCALFE M 2018/CB-00095 Lot 25 DP23100 65 OCEAN AVENUE STUARTS POINT SHED Applicant: MR S J COULSON 2018/CB-00096 Lot 120 DP826640 13 JAMES RAMSAY PLACE WEST KEMPSEY DWELLING Applicant: CHARLES P & CHARLES J 2018/CB-00100 Lot 712 DP1201974 50 FISHERMANS TRAIL FISHERMANS REACH SWIMMING POOL - PRIVATE CERTIFIER Applicant: MR C R BATEUP 2018/CB-00101 Lot 11 DP875534 36 KOROGORA STREET CRESCENT HEAD ALTERATION AND ADDITIONS Applicant: MR P J WATERS 2018/CB-00102 Lot 1 DP1029454 408 OLD STATION ROAD VERGES CREEK ADDITIONS TO EXISTING DWELLING Applicant: DELFORCE V & DELFORCE R 2018/CB-00104 Lot 229 DP754441 10 RANKINE STREET CRESCENT HEAD ALTERATIONS AND ADDITIONS TO EXISTING TWO STOREY DETACHED DUAL OCCUPANCY Applicant: DENNIS PARTNERS PTY LTD 2018/CB-00105 Lot 12 DP1063686 PIPERS CREEK ROAD DONDINGALONG SHED Applicant: MACLEAY VALLEY SHEDS 2018/CB-00106 Lot 3 DP349314 10 ANGUS AVENUE WEST KEMPSEY ALTERATIONS AND ADDITIONS TO EXISTING DWELLING Applicant: MR L J BALE 2018/CB-00107 Lot 81 DP620411 4 NORTH STREET FREDERICKTON ALTERATIONS AND ADDITIONS TO EXISTING DWELLING Applicant: SMITH N & SMITH K 2018/CB-00108 Lot 2 DP878638 254 GREGORY STREET SOUTH WEST ROCKS CARPORT Applicant: COLLINS B & COLLINS E 2018/CB-00110 Lot 14 DP1155813 50 JACK RICHARDSON DRIVE YARRAVEL OUTBUILDING - SHED - COMPLYING DEVELOPMENT - PRIVATE CERTIFIER

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Applicant: MR T S BELLETTE 2018/CB-00111 Lot 17 DP1826 94 EDGAR STREET FREDERICKTON CARPORT Applicant: MS N V WOODS 2018/CB-00114 Lot 11 DP817845 95B EVERINGHAMS LANE FREDERICKTON OUTBUILDING - SHED - PRIVATE CERTIFIER Applicant: MIDCOAST STEEL STRUCTURES 2018/CB-00115 Lot 201 DP593156 26 HODGSON STREET CRESCENT HEAD DWELLING ADDITIONS - COMPLYING DEVELOPMENT - PRIVATE CERTIFIER Applicant: MR R M TRAINOR 2018/CB-00119 Lot 1 DP194293 12 INNES STREET EAST KEMPSEY ALTERATIONS AND ADDITIONSTO EXISTING TWO STOREY DWELLING Applicant: FOSTER M & FOSTER S 2018/CB-00121 Lot 29 DP1071014 14 LINKS VIEW CLOSE SOUTH WEST ROCKS SHED - COMPLYING DEVELOPMENT - PRIVATE CERTIFIER Applicant: MR J A HUDSON 2018/CB-00123 Lot 11 DP758302 52 SKYLINE CRESCENT CRESCENT HEAD ADDITIONS TO EXISTING DWELLING Applicant: LYON R & TOUT-LYON J 2018/CB-00124 Lot 4 DP1236941 26 RIVERVIEW PLACE SOUTH WEST ROCKS TWO STOREY DWELLING Applicant: HADLOW DESIGN SERVICES 2018/CB-00126 Lot 1 DP770959 17 MACLEAY STREET FREDERICKTON SWIMMING POOL - COMPLYING DEVELOPMENT - PRIVATE CERTIFIER Applicant: MR C A BENNETT 2018/CB-00128 Lot 627 DP1191515 47 BELLE O'CONNOR STREET SOUTH WEST ROCKS DWELLING - PRIVATE CERTIFIER Applicant: VOYEE PTY LTD & EASTLAND BUILDERS PTY LTD 2018/CB-00129 Lot 84 DP258248 9 SPOTTED GUM CRESCENT YARRAVEL ADDITIONS TO EXISTING DWELLING - PRIVATE CERTIFIER Applicant: GILL S & GILL L 2018/CB-00132 Lot 82 DP573659 13 WILLIAM STREET FREDERICKTON SWIMMING POOL - COMPLYING DEVELOPMENT - PRIVATE CERTIFIER Applicant: MR B BUBB-EDWARDS 2018/CB-00051 REV01 Lot 49 DP874223 20 MARLIN CIRCUIT HAT HEAD SHED WITH AMENITIES - PRIVATE CERTIFIER Applicant: MR N D GILLESPIE There were 30 applications approved.

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(Please note: This includes approvals by Private Certifiers). VARIATION TO THE DEVELOPMENT REQUIREMENTS CONTAINED IN KEMPSEY DCP 2013 All development applications determined involving variations to the development requirements contained in Kempsey DCP 2013 are required to be reported to Council for information. During the preceding month there were two applications approved involving variations to the development requirements contained in Kempsey DCP 2013.

12 MAYORAL MINUTES

Application number: T6-18-91 Subject land: Lot 4 DP 1236941, 26 Riverview Place, South West Rocks Description: TWO STOREY DWELLING Chapter: C1 Residential Development – Urban Areas Development requirement:

Side/Rear Setback– Clause 5.2.2 a)(i) and Clause 5.2.2 b) 0.9m side setback and 1.5m side second storey setback

Proposed: 200mm side setback and 1.35m second storey setback Desired outcome: D04 Objections: The proposal was publicly notified. No objections were received. Planning comment: Whilst the development requirement of 0.9m or 1.5m side boundary setback hasn’t been provided for, it is considered that in this instance the desired outcomes are still achieved. The slope of the land provides a single storey at the street and the garage is located on the northern boundary minimising any overshadowing. Privacy is maintained to the neighbouring property to the north and the proposed 1.35m side setback will minimise overshadowing to the vacant block to the South. No adverse impacts to adjoining properties are envisaged.

Application number: T6-18-125 Subject land: Lot 120 DP826640, 13 James Ramsay Place, West Kempsey Description: DWELLING Chapter: C1 Residential Development – Urban Areas Development requirement:

Garages, Carports and Outbuildings Clause 5.3(c) Garages must be setback a minimum of 6.0 metres or 1.0 metre behind the house façade (whichever is the greater)

Proposed: Garage setback is 7.0 metres and 2.4 metres forward of the building façade.

Desired outcome: DO1, DO2 Objections: The proposal was not required to be publicly notified. Planning comment: It is considered that in this instance the desired outcomes are still achieved as the garage forms an integral and unobtrusive component of the design. The design also includes a garden planter box projecting 500mm forward of the garage and this is covered by the main roof and connected to the house façade by a concrete patio effectively giving the appearance the façade of the dwelling is in front of the garage. It will not have an adverse impact on the streetscape as there are existing dwellings in the same subdivision similarly designed and approved.

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Nil

13 STAFF REPORTS

ITEM 13.1 QUARTERLY BUDGET REPORT

Contact Person: Ron Wood – Chief Financial Officer File: F12/1970

PURPOSE To report the results of the Budget Review for the period ending 31 March 2018. Director Corporate and Commercial Recommendation: That: a the Budget Review for the period ending 31 March 2018 is adopted and the variations

contained therein are approved. b the updates to the Matters in Progress are noted. c the Project Practical Completion Reports are noted.

2018.119 RESOLVED Moved: Cl. Morris Seconded: Cl. Shields That: a the Budget Review for the period ending 31 March 2018 is adopted and the variations

contained therein are approved. b the updates to the Matters in Progress are noted including removal of item 242. c the Project Practical Completion Reports are noted. d Council considers within the operating plan for 2018/19 a thorough review of our strategic

planning documents to include strategic visioning and strategic planning to accord with the regional plan.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

Reason for varying staff recommendation: Identify gaps between Council’s Local Environment Plan

and the Regional Plan, and review our strategic documents for the ability to include the principles of Strategic Visioning and Strategic Planning

ISSUES The Budget Review has been prepared for the period ending 31 March 2018. As noted in the December Quarterly Budget Review reported to Council in February 2018, substantial improvements

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are required to underlying financial processes to enable high quality and meaningful reporting to Council that allows effective analysis of financial performance and decision making. The implementation of the new corporate business system, IT Vision, is fundamental to moving towards improved financial management and planning for the implementation has commenced. Additionally, over the last quarter significant work has been undertaken to prepare a new draft General Ledger and to map the existing ledger information to the new General ledger, as the current ledger does not facilitate the provision of appropriate high level financial summary information to Council. The mapping of the General Ledger will allow improved financial reporting and permit high level financial summaries that report the financial position (i.e. actual vs budget results at a resource level using the current ledger). It should be noted that while significant effort has been put into developing the new draft General Ledger, that due to the structural issues that exist within the current ledger, the mapping exercise has been a time-consuming task that includes significant assumptions and estimations. The mapping will continue to be a reviewed and refined and will be a key input into the IT Vision implementation project. Given the time required to complete the mapping process, a thorough analysis of budgets and detailed discussion with managers has not been completed. Analysis has been undertaken at a higher level only and attention has focussed on improving General Fund and Consolidated operating results. Because of the work undertaken, there is a significant difference in the form and style of information presented as part of this quarterly review. The Quarterly Budget Review Statement as attached conforms more closely to the Quarterly Budget Review Statement guidelines issued by the Office of Local Government (OLG). This is the first of a number of improvements expected in the provision of financial information to Council. Discussion of the key elements of the Quarterly Budget Review Statement are detailed below. Income & Expense Budget Review Statements The information in this section is now presented on a resource group basis that is consistent with the OLG guidelines and similar in layout to the information as presented in the Annual Report Income Statement. Previous financial reporting in the Quarterly Budget Review Statement was presented on a different basis to that in the Annual Report. There are summaries for each of the three funds in addition to Consolidated results. In addition, the actual year to date figures are now based on amounts as they are included in the ledger. This affects two items in particular – Grants and Contributions and Depreciation. Reported Grants and Contributions actuals previously included carry over grant funding from prior year(s), which overstated grant revenues (these amounts should be shown on the Capital Budget Review Statements and Cash & Investments Budget Review Statements as transfers from cash reserves rather than income). This has been corrected in the March Quarterly Budget Review Statement. Year to date Depreciation has previously been estimated based on budget and percentage of year complete. The maturity level of Council’s asset system(s) prevents monthly processing of depreciation, which has currently been processed as part of end of financial year processing. As a

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result, year to date depreciation expense will be shown as nil expense until the asset system is capable of calculating and processing depreciation monthly. Variations for the March quarter now show the expected impact in relation to the Income Statement. Improved results in General Fund have largely been achieved through the review of Estuary Management and Strategic Planning work, which will not be able to be completed this financial year. This will not necessarily free up funds for use elsewhere as the majority of works were funded from Cash Reserve transfers and will need to be appropriately scheduled in future budgets. Water Fund requires more in-depth analysis to improve results, as it currently forecasts deficit results. Capital Budget Review Statements. Many of these budgets remain overstated in terms of what may be achieved before the end of the financial year. As mentioned above, the difficult process of drafting a new ledger and mapping existing accounts to this ledger reduced the time available to analyse all capital budgets in detail. Many capital expenditure budgets are further complicated by having numerous funding sources. For example, one project may be funded from current general revenues, grant funds (prior and current year) and loan funds. Reducing the capital expenditure budget would invariably have flow on effects to the budgets related to the source of funds, so it is not a simple matter of reducing the capital budget. This issue effects the determination of appropriate budgets for the current financial year in relation to infrastructure projects (roads, water and sewer) in particular. In relation to the Capital Funding section of these summaries, the Rates and Other Untied Funding line is a balancing line i.e. if it is not Grant, Reserve, Loan or Proceeds of Sale funded, then it must be revenue funded. This is particularly noticeable in the actuals column as the Reserve funding has not been updated nor loans funded at this point in time. This will be corrected as part of the financial year end close process. Cash and Investments Budget Review Statements Due to time constraints and the issues outlined above, we were not able to resolve issues associated with providing meaningful and relevant reports for this budget review. Consequently, the Cash and Investments Budget Review Statements have not been reported this quarter. It is expected that these will be reported in the next quarterly review report. Key performance Indicators Budget Review Statement Due to time constraints and the issues outlined above, we were not able to update the indicators with accurate current projections and the 2017-18 forecasts have not been reported at this time. It is expected that these will be reported in the next quarterly review report.

The following documents are presented for Council’s information as (Appendix A):

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Report by the Responsible Accounting Officer that the quarterly budget review statement indicates that Council’s projected financial position will not be satisfactory at year end.

Budget Review Income and Expenses Statement which includes reference to a notes section

detailing significant budget variances. Contracts Statement detailing any contracts entered within the quarter. Consultancy & Legal Expenses Budget Review Statement. BUDGET SUMMARY As noted above reporting improvements have been implemented over the last quarter and we have transitioned to a new Quarterly Budget Review Statement reporting platform that conforms more closely to the Quarterly Budget Review Statement guidelines issued by the Office of Local Government and is on a consistent basis to the Annual Report. This reporting format includes a detailed listing of proposed budget variations not previously available. General Fund The General Fund is forecasting a Net Operating Result of $9.03M compared to the December revised budget of $5.33M. The projected Net Operating Result before Capital Items is $2.87M, compared to $0.2M at December. A comprehensive list of variations is included in the appendix. Notable budget changes include:

• Estuary management operational program reduced by $790k due to rescheduling of work

programs until relevant plans are finalised. This has been offset by a transfer back to

Environmental Levy Reserve.

• New Noxious Weeds grant from DPI of $140k for Tropical Soda Apple eradication.

• Reduction of $639k in Strategic Planning works due to resource availability that has prevented

this work from progressing. This has been offset by a transfer back to Environmental Levy

Reserve.

• Additional $28k for management of Visitors Information Centres.

• Increased funds received for the Regional Block Grant of $316k which has been offset by

additional budget in road maintenance.

• Additional $400k required for South Kempsey Streetscape has been funded from RMS

Handover Reserve. RMS Handover Reserve funds have also been used to fund design works

on Turners Flat Bridge ($100k), Stuarts Point Shops Footpath ($38k) and Jerseyville Wharf

refurbishment ($100K) in advance of 18-19 works program. RMS Handover Reserve will be

reimbursed in 18-19 for these projects which have been bought forward.

• Additional funds required for general operating costs for:

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o Cemeteries $44k

o Saleyards $29k

o Airport $50k

• Lower than anticipated revenue in Landfill has resulted in a $422k shortfall in this area.

• New capital works for Boat Ramps and Wharves of $1.92M which is funded by grant funding

of $950k under the NSW Boating Now Program and $970k loans.

• Additional funds required for Parks and Gardens operational costs of $161k has largely been

offset by a reduction in Sporting Fields budgets. A further $78k is also required for Horseshoe

Bay maintenance.

Savings in Water Management, Administration, Fleet and IT have been utilised to offset increased budgets as outlined above. Water Fund The Water Fund is forecasting a Net Operating Loss of $1.9M compared to the December revised budgeted loss of $2.4M. The projected Net Operating Loss before Capital Items is $2.5M, compared to $3.1M loss at December. This result is consistent with the full year result reported in the 2016-17 Annual Report and requires immediate attention. Additional work will be undertaken with appropriate Managers to review income and expenditure levels to create a path to operating surpluses as soon as possible. Furthermore, additional work will be undertaken to schedule capital works with a view to ensuring outcomes are operationally achievable within the financial year(s). Sewerage Fund The Sewer Fund is forecasting a Net Operating Result of $0.8M which is in line with the December revised budget. The projected Net Operating Result before Capital Items is $32k, compared to a $0.78k loss at December. Additional work will be undertaken with appropriate Managers to schedule capital works with a view to ensuring outcomes are operationally achievable within the financial year(s). BACKGROUND At the March 2018 meeting it was agreed that the Matters in Progress and Project Practical Completion Reports would be reported to Council quarterly as part of the Quarterly Budget Review Statement.

These reports are attached as (Appendix B) and (Appendix C) respectively.

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ITEM 13.2 PROPOSED SALE OF COUNCIL LAND – SOUTH WEST ROCKS AND WEST KEMPSEY

Contact Person: Robert Fish – Director Operations File: F12/1983

PURPOSE

For Council land classified ‘operational’ in South West Rocks and West Kempsey, to consider the retention of two parcels of land previously resolved for sale by Council and the approach to the disposal of another nine parcels of land.

Director Operations and Planning Recommendation:

That Council:

1 retain Lot 39 DP819591 (Albert Harrower Crescent) and Lot 26 DP844106 (Rafferty Crescent) at South West Rocks at this time and the future of these parcels be considered as part of the Community Infrastructure Strategic Plan.

2 proceed with listing the following parcels of land for sale:

a) Lot 81 DP805382 (Arthur Street) and Lot 132 DP829565 (Victor Perry Place) at South West Rocks.

b) Lot 19 DP20694 (Clarence Ryan Avenue) and Lots 40, 41 and 42 DP1676, (Tabrett Street) at West Kempsey.

3 affix the seal of Council to all documentation if the agreed sale price is at least 90% of the independent valuation.

4 approach the adjoining property owners of Lot 122 DP1051855 (Dennis Crescent) at South West Rocks to seek expressions of interest for the acquisition of part of the reserve.

5 approach the adjoining owners of Lot 10 DP2007 (Perrins Lane) and Lot 4 DP1100421 (River Street) at West Kempsey to seek expressions of interest for the acquisition of these parcels of land.

6 direct the net proceeds of sale for lots in South West Rocks to the Section 94 fund for use on improvements to open spaces in South West Rocks.

MOVED Moved: Cl. McGinn Seconded: Cl. Patterson

That Council:

1 retain Lot 39 DP819591 (Albert Harrower Crescent) and Lot 26 DP844106 (Rafferty Crescent) at South West Rocks at this time and the future of these parcels be considered as part of the Community Infrastructure Strategic Plan.

2 proceed with listing the following parcels of land for sale:

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a) Lot 81 DP805382 (Arthur Street) and Lot 132 DP829565 (Victor Perry Place) at South West Rocks.

b) Lot 19 DP20694 (Clarence Ryan Avenue) and Lots 40, 41 and 42 DP1676, (Tabrett Street) at West Kempsey.

3 affix the seal of Council to all documentation if the agreed sale price is at least 90% of the independent valuation.

4 approach the adjoining property owners of Lot 122 DP1051855 (Dennis Crescent) at South West Rocks to seek expressions of interest for the acquisition of part of the reserve.

5 approach the adjoining owners of Lot 10 DP2007 (Perrins Lane) and Lot 4 DP1100421 (River Street) at West Kempsey to seek expressions of interest for the acquisition of these parcels of land.

6 direct the net proceeds of sale for lots in South West Rocks to the Section 94 fund for use on improvements to open spaces in South West Rocks specifically for supplementary funding for the grant application the development for the sporting infrastructure.

An Amendment was MOVED: Moved: Cl. Morris Seconded: Cl. Hauville 1 That Council defers the matter and undertakes an inspection of the sites at South West

Rocks prior to the South West Rocks catch-up. 2 When the matter is brought back to Council that the resolution in regard to the Community

Infrastructure Strategic Plan that council address the benefits to the community in detail be provided.

The AMENDMENT was WITHDRAWN at the request of Councillor Morris. WORKSHOP

2018.120 RESOLVED: Moved: Cl. Morris Seconded: Cl. McGinn That Council move into workshop to allow discussion in open Council on item 13.2

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

MOTION TO RESUME COUNCIL MEETING

2018.121 RESOLVED: Moved: Cl. McGinn Seconded: Cl. Shields That the formal Council meeting be resumed.

2018.122 The MOTION was PUT to the MEETING and was CARRIED.

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Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

Reason for varying staff recommendation: Incorporate the intent of part 2 of the lost amendment in

the resolution; that being to ensure that the purpose for which the funds are to be used and the benefit to the community are understood

ISSUES

At the ordinary meeting of Council on 21 November 2017, Council resolved to sell 5 properties in South West Rocks and 6 properties in West Kempsey. Arising from this further consideration and investigations have occurred regarding the sale of each lot.

Council has also since resolved to undertake a Community Infrastructure Strategic Plan at the ordinary meeting of Council on 17 April 2018. The Community Infrastructure Strategic Plan will consider many things, including park location requirements and the need for footpath linkages. As part of the development of this Plan, Council needs to ensure that land in areas of need is not disposed of.

Maps identifying the location of each lot are included in (Appendix D). Advice on valuations and

potential development options for prospective purchasers for each lot in South West Rocks is

included in (Confidential Appendix E). This does not include costs related to water and sewer

connections, easement creation, cost of subdivision or disposal. This appendix is submitted on a confidential basis as it involves information that would, if disclosed, confer a commercial advantage on a person with whom the council is conducting (or proposes to conduct) business. (Local Government Act 1993, section 10A(2)(c)). On balance, the public interest in preserving the confidentiality of the commercial information supplied, outweighs the public interest in openness and transparency in council decision making by discussing the matter in open meeting. Further advice on potential issues or community concerns and how Council may proceed with the sale of each of these 11 lots is provided below. Lot 39 DP 819591 Albert Harrower Crescent, South West Rocks (1,800m2) - Hold

The lot has subdivision potential and requires geotechnical investigation regarding fill compaction and quality. Feedback received from the community in relation to the potential sale of this lot and closure of the adjoining footpath has raised valid points which need to be considered further. Pedestrian counts have been conducted and the property/footpath is a heavily utilised linkage. There is potential to align a footpath along the boundary where a sewer main is located, eliminating any need for creation of an easement over the sewer.

It is recommended that this property be retained at this time and the future use considered as part of the development of the Community Infrastructure Strategic Plan. Council may then consider various options for this property.

Lot 26 DP844106 Rafferty Crescent, South West Rocks (2,900m2) - Hold

This lot has been flagged as the only parcel of Council land on the western side of Gregory Street with the potential to be developed as a park for that catchment area. The lot has subdivision potential; however, bushfire asset protection zone limits the building envelope to 1,200m2.

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Like the Albert Harrower Crescent lot, it is recommended that this property be retained at this time and the future use considered as part of the development of the Community Infrastructure Strategic Plan. Council may reconsider sale of the lot, or part thereof, on completion of the development of the Community Infrastructure Strategic Plan.

Lot 132 DP829565, 6 Victor Perry Place, South West Rocks (800m2) - Sell

The property has a moderate grade from the rear to the street, meaning it is not suitable for community recreational land uses. An easement over a sewer main and stormwater at the rear of the property requires creation. There is a larger and more suitable Council property in the catchment area of the Victor Perry Place property for the purposes of open space or a future park.

It is recommended that this lot be sold as it will not be required as part of longer term strategic planning.

Lot 81 DP805382, 7 Arthur Street, South West Rocks (970m2) - Sell

This lot requires geotechnical investigation regarding fill compaction and quality and creation of an easement over a sewer main at the rear of the lot. There is sufficient land being retained opposite the Arthur Street location for the potential development of a park.

It is recommended that this lot be sold as it will not be required as part of longer term strategic planning.

Lot 122 DP1051855, 32 Dennis Crescent, South West Rocks (800m2) – Partial sale

This property contains underground water, sewer and stormwater mains. It was previously thought that these could be realigned to the boundaries to enable space for construction of a dwelling to occur on the property. Cost estimates have now been conducted and due to extensive rock and other constraints, realignment of the mains is not a viable option.

Pedestrian counts have also been completed and due to the usage of the footpath on this property, which provides easy access to the Gregory Street shopping complex, Council should consider retaining this linkage.

The only reasonable option to reduce Council’s maintenance liability of this property is to try and sell the land on either side of the footpath to the adjoining property owners, and therefore this is recommended.

Lot 10 DP2007 Perrins Lane, West Kempsey (380m2) - Sell

Due to environmental protection zoning arising from flooding potential on this parcel of land, dwellings are prohibited. Therefore, the land is likely to be of most value to the adjoining property owners. The area of land does not need to be considered as part of the development of the Community Infrastructure Strategic Plan as the land is not of any value for recreational space and

sufficient alternatives exist.

To reduce the cost burden of ownership, it is recommended that the adjoining land owners be approached to seek interest for the acquisition of the parcel of land.

Lot 4 DP1100421, 50 River Street, West Kempsey (360m2) - Sell

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Due to environmental protection zoning arising from flooding potential on this parcel of land, dwellings are prohibited. Therefore, the land is likely to be of most value to the adjoining property owners. The area of land does not need to be considered as part of the development of the Community Infrastructure Strategic Plan as the land is not of any value for recreational space and sufficient alternatives exist.

To reduce the cost burden of ownership, it is recommended that the adjoining land owners be approached to seek interest for the acquisition of the parcel of land.

Lot 19 DP20694, 59 Clarence Ryan Avenue, West Kempsey (530m2) - Sell

This lot previously resolved for sale has a moderate slope across the land. The lot is considered to provide no value to public recreation and does not need to be considered as part of the Community Infrastructure Strategic Plan.

To reduce the cost burden of ownership it is recommended that this lot be sold as it will not be required as part of longer term strategic planning.

Lot 40 DP1676, 73 Tabrett Street, West Kempsey; Lot 41 DP1676, 75 Tabrett Street, West Kempsey; & Lot 42 DP1676, 77 Tabrett Street, West Kempsey (580m2 each) - Sell

These three lots are adjoining on Tabrett Street in West Kempsey. Dwellings are permissible under the zoning of the land; however, prospective purchasers may have difficulty building due to a drainage channel running across the rear of the lots. Number 73 is the least impacted by this drain, while number 77 is the greatest impacted.

These lots previously resolved for sale are considered to provide no value to public recreation and do not need to be considered as part of the Community Infrastructure Strategic Plan as sufficient alternative recreational land is available.

To reduce the cost burden of ownership it is recommended that these lots be sold as they will not be required as part of longer term strategic planning.

As land is sold within South West Rocks it is recommended that the net proceeds of sale be directed to the Section 94 fund for the provision and augmentation of public open space in South West Rocks. Land in West Kempsey was not tied to a Section 94 plan. The proceeds from sale may be used for other purposes so are planned to be returned to reserves for investment in other infrastructure.

BACKGROUND

The Operating Plan and matters in process require investigation of potential sale of surplus land. At the Ordinary meeting of Council on 21 November 2017 http://www.kempsey.nsw.gov.au/council/meetings/2017/2017-11-21/index.html, Council resolved to sell the following properties: Lot 81 DP805382, 7 Arthur Street, South West Rocks Lot 39 DP 819591, Albert Harrower Crescent, South West Rocks Lot 132 DP829565, 6 Victor Perry Place, South West Rocks Lot 26 DP844106, Rafferty Crescent, South West Rocks Lot 122 DP1051855, 32 Dennis Crescent, South West Rocks Lot 19 DP20694, 59 Clarence Ryan Avenue, West Kempsey Lot 10 DP2007, Perrins Lane, West Kempsey

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Lot 4 DP1100421, 50 River Street, West Kempsey Lot 40 DP1676, 73 Tabrett Street, West Kempsey Lot 41 DP1676, 75 Tabrett Street, West Kempsey Lot 42 DP1676, 77 Tabrett Street, West Kempsey

This report provides further advice on how Council may proceed with the sale or otherwise of each of these lots. At the ordinary meeting of Council on 17 April 2018 http://www.kempsey.nsw.gov.au/council/meetings/2018/2018-04-17/index.html, Council resolved to undertake a Community Infrastructure Strategic Plan. This report identifies those lots listed above which may be of benefit for future recreational purposes in the development of this Plan.

ITEM 13.3 SALEYARDS STRATEGIC OPTIONS

Contact Person: Stephen Mitchell – Director Corporate & Commercial File: F18/2079

PURPOSE To provide an overview of the strategic options available in relation to the Kempsey Shire Council owned saleyards and the recommended next steps. MOVED Moved: Cl. Morris Seconded: Cl. Shields 1 That Council notes the strategic options available in relation to the Kempsey Shire Council

owned saleyards. 2 That a workshop involving Councillors, Council management and key external stakeholders

be held to discuss the available strategic options. 3 That further analysis be undertaken subsequent to the workshop and a paper with

recommended option(s) be presented to a future Council meeting. An Amendment was MOVED: Moved: Cl. Hauville Seconded: Cl. Morris That; 1 Council notes the strategic options available in relation to the Kempsey Shire Council owned

saleyards. 2 a workshop involving Councillors, Council management and key external stakeholders be

held to discuss the available strategic options. 3 further analysis be undertaken following the workshop and an Options Paper be prepared. 4 the Options Paper be put on public exhibition for 28 days with a request for submissions.

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5 a report on the submissions and Options paper be presented to a future Council Meeting.

2018.123 The AMENDMENT was PUT to the MEETING and was CARRIED.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

2018.124 The MOTION was PUT to the MEETING and was CARRIED.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

Reason for varying staff recommendation: To incorporate additional public consultation on the

strategic options

ISSUES The operation and management of the Kempsey Regional Saleyards (“the Saleyards”) has presented a number of challenges to Kempsey Shire Council in recent years. Council currently owns the saleyard facility and is responsible for providing all infrastructure, ongoing upgrading and maintenance. Over the past 10-15 years, Council has invested more than $2M in upgrade and infrastructure works to ensure the Saleyards comply with environmental standards, meet WH&S requirements and offer ‘best practice’ facilities capable of processing more than 2,000 head of cattle per day. The cost of funding this investment, combined with relatively high operating costs has resulted in the Saleyards being loss making since before the 2004-05 financial year. This annual operating deficit has been absorbed by Council over this period. A summary of the financial performance of the

Saleyards is attached as (Appendix F). It should also be noted that the costs included in the attached

financial summary do not include other indirect overhead costs, such as Council senior management time associated with managing this asset. Additionally, a number of other immediate challenges facing the Saleyards have been identified. These include:

• The acceleration of direct selling methods;

• Changes to the operating environment;

• Increasing regulations; and

• Ongoing competition from neighbouring saleyards, abattoirs and alternative sale methods.

Furthermore, there is the need for significant further capital expenditure as identified in the GHD Financial Plan (2016) and updated Business Plan. Council has funded historical capital expenditure via loan funding with the repayment of these loans essentially being a significant contributor to the annual operating deficit of the Saleyards. Existing loans will be fully repaid in the 2018-19 financial year and while the repayment of these loans is projected to result in modest future operating surpluses, future capital expenditure would necessitate sizeable loan borrowings. Any future borrowings to fund capital works at the Saleyards would again result in a sustained period of

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operating deficits, unless there was a significant improvement in the underlying business operations of the Saleyards (i.e. increased revenue via increased throughput or higher prices, or a combination of both). Ultimately, commercial operations run by Council, such as Saleyards, need to be financially sustainable. It is not viable for the Saleyards to consistently run at a deficit and for Council to absorb this deficit from its General Fund. The operational and financial challenges faced by council’s in operating and managing saleyards has seen a number of developments in recent years with council’s largely either:

• Divesting the operation and management of their saleyards to the private sector (through sale

or lease arrangements);

• Investing heavily to modernise the saleyards to deliver high quality animal welfare and work,

health and safety outcomes, as well as increased throughput and projected improved financial

performance / sustainability1; or

• Doing nothing, resulting in both a deteriorating and underperforming asset.

Options Analysis To address the current operating performance of its Saleyards, Council principally has two options: 1. Implement strategies to drive a material increase in revenue from the Saleyards so that the

asset is financially sustainable and generates operating surpluses that are sufficient to self-

fund repayment of future borrowings that may be incurred to maintain and / or expand the

Saleyards.

2. Investigate a range of alternative business models that would deliver improved financial

performance of the asset while continuing to deliver the current economic benefits to the

Macleay Valley economy and community.

It should also be noted that Council has received two offers in relation to the Saleyards. These include:

• An expression of interest from Kempsey Stock & Land Pty Limited in March 2018 to purchase

or lease the saleyard complex should Council decide to move in that direction; and

• An expression of interest from the AAM Group of companies in December 2017 in leasing the

Saleyards to enable their business to assess the viability of a new facility located in the region.

1 The Northern Rivers Livestock Exchange (NRLX) owned and operated by Richmond Valley Council is currently undergoing a $14M upgrade of the saleyard facility having received $7M grant funding to complete the second stage of the upgrade project. Additionally, Upper Hunter Shire Council has recently received a $2.8M grant from the Building Better Regions Fund which will partly fund a $7M project at the Scone Regional Livestock Selling Centre. In both cases the balance of the funding to deliver these upgrades will be via loan borrowings.

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Both offers indicate that there is private sector interest in the Saleyards should this option be pursued. A summary of the potential operations are analysed in the tables below. The options have been colour coded for ease of understanding with the shading representing the following:

• Blue shaded options (options 1-4) require minimal capital investment and are essentially “as

is” options.

• Green shaded options (options 5-9) propose a redevelopment / upgrade of the existing

Saleyard facility to expand business operations.

• Purple shaded options (options 10-14) propose a greenfield development to build a state of

the Saleyard facility to substantially expand business operations.

Option Description Advantages Disadvantages

1. Do Nothing Continue to operate Kempsey Regional Saleyards (KRS) as is with minimal capital expenditure (i.e. on an as needs basis)

✓ Avoids large capital investment and

funding issues

✓ KRS remains Council owned

❖ Underlying operational issues not

addressed

❖ Current operational risks not minimised,

mitigated or shifted

❖ May not be aligned to community

interests

❖ Asset deterioration and potential

breaches of regulations if asset not

sufficiently maintained

❖ Negative impact on financial operating

result and Fit for the Future Benchmarks

over the longer term

❖ Efficiency and effectiveness not

promoted

❖ Economic development impacts /

opportunities not maximised

2. Immediate Sale

and Exit of

Kempsey Regional

Saleyards

Sell the KRS business operations and assets as a going concern and fully exit.

✓ Avoids large capital investment and

funding issues

✓ Improved financial outcomes

✓ Generates sale proceeds that can be

used to fund other projects

✓ Minimises risks associated with

ownership and ongoing operation of

KRS

✓ Allows KSC to focus on core business

✓ Encourages private operator

involvement with expertise to deliver

an industry standard service

❖ Sale of Council owned asset

❖ Community support may not be positive

❖ Forgoes any potential future operating

revenue opportunity

3. Lease of Kempsey

Regional

Saleyards

Lease the Saleyards with planned capital expenditure on an as needs basis only

✓ Avoids large capital investment and

funding issues

✓ Possible improved financial outcomes

✓ Allows KSC to focus on core business

❖ Underlying operational issues not fully

addressed

❖ Current operational risks not fully

minimised, mitigated or shifted

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Option Description Advantages Disadvantages

✓ Encourages private operator

involvement with expertise to deliver

an industry standard service

✓ Possible improved economic benefits to

KSC

✓ KRS remains Council owned

❖ May not be aligned to community

interests

❖ Asset deterioration

❖ Financial operating result may not be

significantly improved over the longer

term (operating result benefit may not

be material and capital expenditure will

still be KSC responsibility)

4. Joint ownership

of Kempsey

Regional

Saleyards (Co-

Operative Model)

As above (Option 1), but KRS subsequently transferred into a special purpose vehicle or co-operative, that is jointly owned by KSC and key local stakeholders (Agents, Producers)

✓ Avoids large capital investment and

funding issues

✓ Asset remains community owned

❖ Underlying operational issues not fully

addressed

❖ Current operational risks not fully

shifted

❖ Asset deterioration if limited capital

investment

❖ Financial operating result may not be

significantly improved over the longer

term (operating result benefit may not

be material and capital expenditure will

still partly be KSC responsibility)

❖ Part sale of Council owned asset – albeit

to key local stakeholders

❖ Ability of other stakeholders to invest is

unknown

❖ Ownership structural issues

5. Partial

Redevelopment /

Upgrade – Build,

Own & Operate

Capital project to redevelop / upgrade existing facility to expand existing business operations

✓ Redevelopment of key local asset which

may deliver economic benefits to KSC

✓ Asset remains Council owned and

operated

✓ Delivers improved facility for KSC

✓ Optimises revenue generation and

operational efficiency opportunities

❖ Will require sizeable debt funding to

deliver project

❖ Ability to (i) access; and (ii) service debt

funding questionable

❖ Increased investment risk

❖ Impacts on Fit for the Future

Benchmarks (and financial sustainability

generally) difficult to assess given

uncertain impacts on future operating

results

❖ KSC continues to be responsible for

running saleyards business and does not

have internal capability

6. Partial

Redevelopment /

Upgrade – Build,

Own & Lease

As above (Option 5), but KRS subsequently leased to a private operator to operationally manage in return for stable lease rental payments

✓ Key local asset is upgraded delivering

economic benefits to KSC

✓ Asset remains Council owned

✓ Delivers improved facility for KSC

✓ Reduced operational risk

✓ Stable lease income

❖ Will require sizeable debt funding to

deliver project

❖ Ability to (i) access; and (ii) service debt

funding questionable

❖ Increased investment risk

❖ Ability to attract a lessee willing to pay

commercial lease rental on upgraded

facility may be difficult

7. Partial

Redevelopment /

Upgrade – Joint

As above (Option 5), but KRS subsequently transferred into a special purpose

✓ Key local asset is upgraded delivering

economic benefits to KSC

✓ Asset remains community owned

❖ Part sale of Council owned asset – albeit

to key local stakeholders

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Option Description Advantages Disadvantages

Ownership (Co-

Operative Model)

vehicle or co-operative, that is jointly owned by KSC and key local stakeholders (Agents, Producers)

✓ Delivers improved facility for KSC

✓ KSC only required to finance 50a

portion of project cost

❖ Ability of other stakeholders to invest

capital is unknown

❖ Ownership structural issues

❖ Increased investment risk

❖ KSC assumes the delivery risks

associated with large capital-intensive

project

❖ Will require debt funding to deliver

project

❖ Ability to (i) access; and (ii) service debt

funding of this size questionable

8. Partial

Redevelopment /

Upgrade – Sale &

Leaseback

As above (Option 5), but KRS subsequently sold to an institutional investor (e.g. Superannuation Fund) and then leased back by KSC to operationally manage

✓ Key local asset is upgraded delivering

economic benefits to KSC

✓ Delivers improved facility for KSC

✓ Generates sale proceeds that can be

used to fund other projects

✓ Minimises risks associated with

ownership of KRS

✓ Operational management remains with

KSC

❖ Sale of Council owned asset

❖ Community support likely to be low

❖ KSC assumes the delivery risks

associated with large capital-intensive

project

❖ Ability to fund / finance

❖ Number of potential institutional

investors unknown and return on

investment may result in high lease

payments that deem this option

uneconomic and unviable

9. Partial

Redevelopment /

Upgrade – Sale &

Exit

As above (Option 5), but KRS subsequently sold to a private operator

✓ Key local asset is upgraded delivering

economic benefits to KSC

✓ Delivers improved facility for KSC

✓ Generates sale proceeds that can be

used to fund other projects

✓ Minimises risks associated with

ownership and ongoing operation of

KRS

✓ Allows KSC to focus on core business

❖ Sale of Council owned asset

❖ Community support likely to be low

❖ KSC assumes the delivery risks

associated with large capital-intensive

project

❖ Ability to fund / finance

❖ Potentially limited purchasers which

may impact on sale proceeds – likely

purchasers would prefer to undertake

redevelopment themselves

10. Greenfield

Development –

Build, Own &

Operate

Major capital project to construct a new purpose built regional facility on a greenfield site that significantly expands existing business operations

✓ Redevelopment of key local asset which

will deliver economic benefits to KSC

✓ Asset remains Council owned and

operated

✓ Delivers “state of the art” facility for

KSC

✓ Optimises revenue generation and

operational efficiency opportunities

❖ Will require significant debt funding to

deliver project

❖ Ability to (i) access; and (ii) service debt

funding of this size questionable

❖ Uncertainty that economic benefits

exist to support major greenfield

development when compared to partial

redevelopment option

❖ Significantly increased investment risk

❖ Impacts on Fit for the Future

Benchmarks (and financial sustainability

generally) difficult to assess given

uncertain impacts on future operating

results

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Option Description Advantages Disadvantages

❖ KSC continues to be responsible for

running saleyards business and does not

have internal capability

11. Greenfield

Development –

Build, Own &

Lease

As above (Option 10), but Greenfield KRS subsequently leased to a private operator to operationally manage in return for stable lease rental payments

✓ Key local asset is upgraded delivering

economic benefits to KSC

✓ Asset remains Council owned

✓ Delivers “state of the art” facility for

KSC

✓ Reduced operational risk

✓ Stable lease income

❖ Will require debt funding to deliver

project

❖ Ability to (i) access; and (ii) service debt

funding of this size questionable

❖ Uncertainty that economic benefits

exist to support major greenfield

development when compared to partial

redevelopment option

❖ Increased investment risk

❖ Ability to attract a lessee willing to pay

commercial lease rental

12. Greenfield

Development –

Joint Ownership

(Co-Operative

Model)

As above (Option 10), but KRS subsequently transferred into a special purpose vehicle or co-operative, that is jointly owned by KSC and key local stakeholders (Agents, Producers)

✓ Key local asset is upgraded delivering

economic benefits to KSC

✓ Asset remains community owned

✓ Delivers “state of the art” facility for

KSC

✓ KSC only required to finance a portion

of project cost

❖ Part sale of Council owned asset – albeit

to key local stakeholders

❖ Ability of other stakeholders to invest

capital is unknown

❖ Uncertainty that economic benefits

exist to support major greenfield

development when compared to partial

redevelopment

❖ Ownership structural issues

❖ Increased investment risk

❖ KSC assumes the delivery risks

associated with large capital-intensive

project

❖ Will require significant debt funding to

deliver project

❖ Ability to (i) access; and (ii) service debt

funding of this size questionable

13. Greenfield

Development –

Sale & Leaseback

As above (Option 10), but KRS subsequently sold to an institutional investor (e.g. Superannuation Fund) and then leased back by KSC to operationally manage

✓ Key local asset is upgraded delivering

economic benefits to KSC

✓ Delivers “state of the art” facility for

KSC

✓ Generates sale proceeds that can be

used to fund other projects

✓ Minimises risks associated with

ownership of KRS

✓ Operational management remains with

KSC

❖ Sale of Council owned asset

❖ Community support likely to be very

low

❖ KSC assumes the delivery risks

associated with large capital-intensive

project

❖ Ability to fund / finance

❖ Uncertainty that economic benefits

exist to support major greenfield

development when compared to partial

redevelopment option

❖ Number of potential institutional

investors unknown and return on

investment may result in high lease

payments that deem this option

uneconomic and unviable

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Option Description Advantages Disadvantages

14. Greenfield

Development –

Sale & Exit

As above (Option 10), but KRS subsequently sold to a private operator

✓ Key local asset is upgraded delivering

economic benefits to KSC

✓ Delivers “state of the art” facility for

KSC

✓ Generates sale proceeds that can be

used to fund other projects

✓ Minimises risks associated with

ownership and ongoing operation of

KRS

✓ Allows KSC to focus on core business

❖ Sale of Council owned asset

❖ Community support likely to be very

low

❖ KSC assumes the delivery risks

associated with large capital-intensive

project

❖ Ability to fund / finance

❖ Uncertainty that economic benefits

exist to support major greenfield

development when compared to partial

redevelopment option

❖ Potentially limited purchasers which

may impact on sale proceeds – likely

purchasers would prefer to build

themselves

BACKGROUND

Kempsey Regional Saleyards is a community asset owned and maintained by Kempsey Shire Council. With around 60-70 sales held per annum, the Saleyards provide a regular venue for livestock buyers and sellers across the region to generate income and undertake herd development activities. The weekday markets are well attended by buyers and sellers, with this number increasing at the Saturday markets.

Local Government has managed Saleyards in the Macleay Valley since the early 1900s and at the current saleyard site since 1969. The Saleyards provide an essential service to beef and dairy industry producers, operators and end users and is located mid-way between Saleyards at Taree and Grafton. Council owns the Kempsey Regional Saleyards facility and is responsible for providing all infrastructure, ongoing upgrading and maintenance.

Under current leasing arrangements, livestock sales are a function of three agents, with Kempsey Stock & Land (KSL) operating under a five-year lease which provides exclusive use on Thursdays and Ray White Rural Kempsey and Midcoast Stock and Station Agency having operating use on Tuesdays. Other interested agents can operate on other days.

Over the past 10-15 years, Kempsey Shire Council has invested more than $2M in upgrade and infrastructure works to ensure the Saleyards comply with environmental standards, meet WH&S requirements and offer ‘best practice’ facilities capable of processing more than 2,000 head of cattle per day. Loans associated with these upgrades expire in 2018/2019.

Council has had long-term plans to upgrade the saleyard facility to address effluent disposal issues and improve the selling yards.

While Saleyards have historically formed an integral part of the economic and social fabric of rural communities in Australia, it is acknowledged that improved technology, transportation and regionalisation have driven a consolidation of Saleyards and the growth of alternative selling methods, placing pressure on their financial management.

A number of reviews of the Kempsey Saleyards have been undertaken over the past 10-15 years.

These included:

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Review Outcome

Kempsey Regional Saleyards Infrastructure Review and Feasibility Study (Huefner & Associates Pty Ltd, 2006).

Huefner & Associates Pty Ltd conducted an infrastructure review and feasibility study in 2006. The project included an inspection of the Saleyards, as well as stakeholder consultation with staff, operators and vendors. The report highlighted priority projects which helped shape the capital works program in subsequent years.

Wastewater Treatment Report (ERM 2011) In 2011 Environmental Resource Management Australia Pty Ltd (ERM) were engaged to undertake a site inspection of the saleyard wastewater treatment system (WWTS) and provide recommendations for system improvements and ongoing management.

This study followed the previous WWTS Design Upgrade (ERM 2008) and Operation and Maintenance Manual (ERM 2006).

Kempsey Regional Saleyards, Market Analysis and Financial Modelling (GHD Pty Ltd, 2013)

This 2013 report provided an analysis of factors impacting on the long-term viability of the Kempsey Regional Saleyards, including local cattle numbers, changing selling trends, operating costs etc. The report provided a review of local market conditions and the past financial performance of the Saleyards, which was used to provide projections of future throughput and financial performance under different investment scenarios.

The report anticipated an increase in throughput to around 35,000 head, largely due to a second agent (Midcoast Rural) being provided access. Overall the report found the Saleyards were well placed to deliver modest operating profits going forward (depending on future capital improvements).

Projections from the report were used to inform the Saleyard Business Plan (below).

2013 Kempsey Regional Saleyards Business Plan The 2013 Kempsey Regional Saleyards Business Plan highlighted some major immediate challenges currently faced by Kempsey Regional Saleyards, including:

• acceleration of direct selling methods;

• changes to the operating environment;

• increasing regulations; and

• ongoing competition from larger neighbouring Saleyards (e.g. Armadale, Grafton, Taree), abattoirs and alternative sale methods.

The report detailed two investment scenarios (low and high investment). The high investment scenario detailed a range of potential upgrades and improvements to the saleyard facilities which may be required into the future, and/or are likely to

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Review Outcome

improve the facilities operations, throughput and profitability.

2016 Kempsey Regional Saleyards Financial Plan

In 2016 GHD were engaged by Kempsey Shire Council to develop a financial plan for the Kempsey Regional Saleyards.

After reviewing previous reports, GHD visited the facilities to consider potential upgrades and consult key stakeholders, including Council staff, agents and a selection of producers. Potential improvements were identified, costed and prioritised based on the Council’s ability to finance future works.

The Financial Plan identified the following recommendations:

1.Implement the capital works program as outlined in the report, while monitoring annual changes to throughput, revenue and expenses against projections.

2.Investigate opportunities to draw on the Environmental Levy or the NSRF to help fund the construction of a roof over delivery yards.

3.Ensure all usage fees are regularly adjusted for CPI.

4.Revisit the business development actions outlined in the Saleyard Business Plan including activities aimed at improving promotion, broaden the Saleyards supply area and improving security/revenue collection.

5.Begin planning and preparations for beyond the current lease agreement. If Council is to hold multi-agent sales, determine how will sales be managed and if additional resources be required?

6.If the Council is not fully committed to managing the facility to its full potential, including the management of multi-agent sales, the Council should seek to outsource management or sell the facility.

At the 16 May 2017 Council meeting it was resolved that a further review of the Saleyards Business Plan be undertaken.

ITEM 13.4 TENDER FOR THE MANAGEMENT LEASE AND OPERATIONS OF COUNCIL PUBLIC SWIMMING POOLS – TENDER NO. TQE17/31

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Contact Person: Brian Ross – Team Leader Facility Services File: TQE17/31

This report was dealt with earlier in the meeting just after PUBLIC FORUM.

ITEM 13.6 MAYORAL AND COUNCILLOR FEES FOR 2018/2019

Contact Person: Stephen Mitchell – Director Corporate and Commercial File: F18/2261

PURPOSE To set mayor and councillor fees for Kempsey Shire Council for 2018/2019 following the determination of the Local Government Remuneration Tribunal. MOVED Moved: Cl. McGinn Seconded: Cl. Williams That the Kempsey Shire Council Mayor and Councillor fees payable for the 2018/2019 year be the maximum allowed for regional rural categorised councils as determined by the Local Government Remuneration Tribunal. An Amendment was MOVED: Moved: Cl. Morris Seconded: Cl. Hauville 1 That Council sets the fees for the Mayor and Councillor fees at the midpoint between the

maximum for a rural council and a regional rural council, that being a Councillor fee of $15,825 and a mayoral fee of $34,525

2 That the budget allocation remains at the full amount with the difference allocated to the

mayoral community fund.

The AMENDMENT was PUT to the Meeting and was LOST.

Baxter A Campbell A Hauville F McGinn A Morris F

Patterson A Saul A Shields A Williams A

2018.125 The MOTION was PUT to the MEETING and was CARRIED.

Baxter F Campbell F Hauville A McGinn F Morris F

Patterson F Saul F Shields F Williams F

ISSUES The Local Government Remuneration Tribunal is required to report to the Minister for Local Government by 1 May each year as to its determination of categories and the maximum and minimum amounts of fees to be paid to mayors, councillors, and chairpersons and members of county councils.

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BACKGROUND The Local Government Remuneration Tribunal (the Tribunal) each year sets the range of fees for all councillors and mayors in NSW.

The Tribunal’s report (Appendix I) provides an update on local government reform, review of

categories – including criteria for categories and allocation of council into categories and fees. The report concludes that Kempsey Shire Council is listed as a regional rural council. The levels of fees for this category for 2018/2019 are:

Mayor Councillor

Minimum Maximum Minimum Maximum

$19,100 $43,170 $8,970 $19,790

It has been this Council’s past practice to adopt the maximum fee determined by the Tribunal. The total mayoral and councillors fees payable if the maximum limit is adopted is $221,280 and this has been fully budgeted for in the 2018/2019 draft budget.

14 RESCISSION MOTIONS Nil

15 NOTICES OF MOTION

ITEM 15.1 NO CONFIDENCE IN THE MAYOR

Contact Person: Leo Hauville – Councillor File: F18/1377

This report was dealt with earlier in the meeting just after PUBLIC FORUM.

ITEM 15.2 KEMPSEY SHIRE COUNCIL STRUCTURAL AND CULTURAL REVIEW

Contact Person: Bruce Morris – Councillor File: F18/2207

PURPOSE I intend to move the following motion at the ordinary meeting to be held Tuesday, 15 May 2018.

2018.126 RESOLVED Moved: Cl. Morris Seconded: Cl. Williams

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That Council receives a report quarterly, as a part of the Quarterly Budget Review on the outcomes outlining the investment made, savings generated, efficiencies and innovative solutions made and any changes to service levels resulting in benefit for the community from the Structural and Cultural Review of Council.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

BACKGROUND The Structural and Cultural Review of Council has been a thorough process that has resulted in considerable change at Kempsey Shire Council. When this process was commenced it was discussed and generally agreed that in the interests of openness and transparency with the community, Council would track the actual investment made and the savings generated as a result of this review. Given that the new Executive Leadership Team has been recruited, and new systems and procedures are being implemented, it is considered timely to commence a regular reporting regime to demonstrate the improvements realised for the benefit of the community flowing from the review. The investment has been considerable and needs to be documented with any additional future costs added to this figure as they are incurred. These costs are broad ranging, and include consultancy costs, recruitment costs, redundancies and temporary staff charges. It is not proposed that indirect costs that cannot be accurately quantified be included in the overall investment figure. Equally it is important to commence a robust process of documenting and verifying savings as they are realised. This process needs to cover all savings that can be verified.

16 DELEGATES REPORT Nil

17 COMMITTEE REPORTS Nil

18 DELIVERY PROGRAM PERFORMANCE INDICATORS Nil

19 COUNCILLOR QUESTIONS

COUNCILLOR B J MORRIS FILE: F12/1945 RAF

QFNM1

Macleay Street - are there any plans to rectify the damaged pavement following the asphalt works approximately 18 months ago? RESPONSE:

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Work teams will be addressing this issue before 30 June 2018. The failed pavement will be excavated and replaced with new pavement material.

COUNCILLOR B J MORRIS FILE: F12/1945 RAF

QFNM2

What is the current timeline for the completion of planting of trees in Smith Street North? RESPONSE: The remaining stumps have been removed and tree planting will be undertaken within the next three weeks.

COUNCILLOR B J MORRIS FILE: F12/1945 RAF

QFNM3

When will the cycleway which has been marked on the road have appropriate signage to indicate that it is a cycleway? RESPONSE:

Pavement markings will be done when the linemarking contractor next attends, which is

expected in the next two weeks. Signage is not warranted.

COUNCILLOR B J MORRIS FILE: F12/1945 SMM

QFNM4

In an earlier report staff accepted the risk of not having the mortgagee sign the VPA. What is that risk and if Gowings sells the centre will this risk be carried forward to the new owner? RESPONSE: The mortgagee is not a party to the VPA and would not therefore, sign the VPA. We understand that your question is in relation to the risk to the Council of not obtaining the mortgagees signing of the public positive covenant (as detailed in Appendix A of the report to the Ordinary Council meeting on 20 February 2018). Clause 3.3.1 of the signed VPA does not require the Developer to obtain the mortgagee’s signature on the public positive covenant. Gowings as the registered proprietor will sign the public positive covenant and Council will be able to enforce the public positive covenant against Gowings and any person who purchases the land from Gowings. However, if the mortgagee does not sign the public positive covenant the Council will not be able to enforce the obligations of the VPA against the existing mortgagee or any person who purchases the land from the mortgagee. The risk to the Council will only arise in the event Gowings defaults on its mortgage and the mortgagee obtains an order for foreclosure of the land to obtain title to the land rather than exercising its power of sale. If the mortgagee obtains an order for foreclosure of the land the mortgagee (who is not bound by the public positive covenant) will become the registered proprietor of the land and any person who purchases the land from the mortgagee will not be bound by the public positive covenant. However, if the mortgagee exercises its power of sale (instead of foreclosure) and transfers the property directly from Gowings to the new owner then the new owner is obtaining title directly from Gowings and will be bound by the obligations in the public positive covenant. The risk associated with the above (i.e. of Gowings defaulting on its mortgage and the bank foreclosing the property, rather than exercising its power of sale) was assessed by Council staff

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as low and acceptable. It follows from the above that the risk will not arise if Gowings sells the land. In those circumstances the new owner will be bound by the terms of the public positive covenant.

COUNCILLOR B J MORRIS FILE: F12/1945 SMM

QFNM5

What is the proposed construction timeframe for the cinema at Kempsey Central and what is the likely level of disruption for customers? RESPONSE:

Our understanding is that construction of the cinema will take a period of approximately 12 months. Identified disruptions to customers of Kempsey Central Shopping Central include the following:

• Approximately 50 car spaces in the basement car park will closed for an estimated period of 4-6 weeks while reinforcement works of the basement car park are undertaken.

• The Belgrave pedestrian ramp and main entrance to the centre will be temporarily closed to the public, with hoarding to be erected from the main entry at Belgrave Street up to the retail level. During these works alternative pedestrian access will be via the carpark. Our understanding is that these works would occur in the second half of construction period. Prior to, and during these works the installation of customer “Way-Finding” signage will be erected.

Generally, the construction works will be undertaken behind solid panelled hoardings to separate working areas from the Centre and its operations. Such hoardings will have attached plastic sheeting to seal the work areas to minimise dust penetration. Any noisy works will generally be undertaken outside of Centre trading hours unless unavoidable. Gowings have already commenced the notification of potential disruptions to tenants as required by the Retail Tenancy legislation.

COUNCILLOR D F SAUL FILE: F12/1945 RAF

QFNM1

Rudder Park, East Kempsey – is there any indication of when we may have signage for that park again? RESPONSE: The installation of a new sign has been overlooked since the previous sign was removed during park upgrade works two years ago. A new sign will be designed and installed as soon as possible.

COUNCILLOR A P PATTERSON FILE: F12/1945 RAF

QFNM1

When is the Belgrave Street traffic review to be conducted? RESPONSE:

The Council resolution of 21 March 2017 resolved to consider a review of Belgrave Street in the delivery program. The 2017-2021 Delivery Program includes an item titled Belgrave Street Masterplan and an associated budget estimate of $150,000. It was not included in the 2017/18 Operating Plan and is not included in the draft 2018/19 Operating Plan. It has therefore not been scheduled for completion at this point in time.

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COUNCILLOR L J HAUVILLE FILE: F12/1945 RAF

QFNM1

Could there be an assessment and report on the adequacy of disability parking bays in the West Kempsey shopping centre? RESPONSE: The West Kempsey shopping precinct parking area has been considered as: • Elbow Street (from Kemp Street to Harold Walker Avenue) • Tozer Street and Kemp Street (between Elbow Street and Edinburgh Lane) • Edinburgh Ln (including the public carpark) • Harold Walker Avenue and Tozer Street (between Elbow Street and the Civic Centre

entrances • Civic Centre car park. Within this precinct, there are approximately 409 car parking spaces. 10 of these spaces are identified as disability parking bays. The benchmark for relative numbers of disability parking spaces is the Building Code of Australia (BCA). The code offers two ratios that are considered appropriate to the West Kempsey shopping precinct: 1 A carpark: The code nominates one disability space for each 100 parking spaces, or 2 A shop: The code nominates one disability space for each 50 parking spaces Adopting the more stringent situation 2 above, and based upon a total number of 409 parking spaces within the West Kempsey shopping precinct, the BCA would require 8 to 9 disability parking spaces. The above review has identified that the current 10 disability parking spaces exceeds the requirements of the Building Code of Australia.

COUNCILLOR D F SAUL FILE: F12/1945

QFNM1

When will there be a report on the Frederickton community catch up meeting?

COUNCILLOR D F SAUL FILE: F12/1945

QFNM2

The rabbits are back in Cyrus Saul Circuit – is that to be acted upon in the near future?

COUNCILLOR A P PATTERSON FILE: F12/1945

QFNM1

Can Council now control any flying of planes at the airport now the flying school has withdrawn its DA?

COUNCILLOR A P PATTERSON FILE: F12/1945

QFNM2

Can I have a report on all claims made by Councillors against their fees from their elected

date?

COUNCILLOR L J HAUVILLE FILE: F12/1945

QFNM1

What organisations is Council a member of, and/or which organisations receive

donations/fees from Kempsey Shire Council, and when were this contributions or fees

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authorised by Council?

COUNCILLOR L J HAUVILLE FILE: F12/1945

QFNM2

What plans are there in place, if any, to better enable access to Edinburgh Lane Carpark?

COUNCILLOR L J HAUVILLE FILE: F12/1945

QFNM3

What are the final costs (legal, foregone fees and staff time) for enabling the Kempsey

Cinema Project?

COUNCILLOR L J HAUVILLE FILE: F12/1945

QFNM4

What yearly contribution comes from the State Government for maintenance of Plummers

Lane as a Regional Road?

COUNCILLOR L J HAUVILLE FILE: F12/1945

QFNM5

Would Councillors be given a report on Weed Management in our Shire with comparisons

with other similar sized Councils to set a way forward in best practices?

COUNCILLOR A T SHIELDS FILE: F12/1945

QFNM1

When will 4wd beach access be restored at Hat Head and what is Council planning as a long-

term solution

COUNCILLOR B J MORRIS FILE: F12/1945

QFNM1

In relation to the original DA for the cinema; there have been discussions about a stage being

included. Was this included in the original DA and if not will a modification to the DA be

submitted to permit a stage?

COUNCILLOR B J MORRIS FILE: F12/1945

QFNM2

The lease arrangement on the terminal building at the airport; when does that expire?

COUNCILLOR B J MORRIS FILE: F12/1945

QFNM3

When do saleyard leases expire for the current operators?

COUNCILLOR B J MORRIS FILE: F12/1945

QFNM4

Flood refuges - Can Council work pro-actively with the other land owners to try to ensure

that Kempsey Shire is more flood ready?

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20 CONFIDENTIAL ITEMS STAFF REPORTS FOR CONFIDENTIAL BUSINESS PAPER IN CLOSED MEETING

ITEM 20.1 VARIOUS LEGAL MATTERS

Contact Person: Daniel Thoroughgood – Manager Governance and Information Services

File: F12/1960

Section 10A(2)(g) – Legal Proceedings This report is submitted on a confidential basis as it involves advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege. (Local Government Act 1993, Section 10A (2)(g)) On balance, the public interest in preserving the confidentiality of the advice outweighs the public interest in openness and transparency in Council decision making by discussing the matter in open meeting.

2018.127 RESOLVED: Moved: Cl. Saul Seconded: Cl. Williams That Council form itself into the Confidential Session, and at this stage, the meeting be closed to the public to permit discussion of the confidential business items listed for the reasons as stated in the Agenda.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

CLOSED MEETING

The ordinary Council meeting IN CLOSED commenced at 3.05pm.

RESUME IN OPEN MEETING

2018.128 RESOLVED: Moved: Cl. Saul Seconded: Cl. McGinn That the ordinary Council meeting in Open Meeting be resumed.

Baxter F Campbell F Hauville F McGinn F Morris F

Patterson F Saul F Shields F Williams F

The ordinary Council meeting resumed in OPEN MEETING at 3.14pm.

Page 53: Minutes of the ordinary meeting of Kempsey Shire Council ... · 5/15/2018  · 4 - Mr Gary Scott addressed Council speaking against item 15.1 no confidence in the Mayor 5 - Ms Janice

The ordinary Council meeting resumed in OPEN MEETING at 3.14pm.

FROM COUNCIL IN CLOSED MEETING

STAFF REPORTS

FROM CONFIDENTIAL BUSINESS PAPER IN CLOSED MEETING

ITEM 20.1 VARIOUS LEGAL MATTERS

Contact Person: Daniel Thoroughgood - Manager Governance and Information File: F12/1960

Services

PURPOSE

) Reporting on the current position regarding legal matters.

2018.129 RESOLVED

That the information be noted.

Baxter F Campbell

Patterson F Saul

21 CONCLUSION

F Hauville F

F Shields F

McGinn F

Williams F

Moved: Cl. Hauville

Seconded: Cl. Shields

Morris F

There being no further business, the Mayor then closed the meeting, the time being 3.14pm.

I hereby certify that this is a true and correct record of the minutes of the Kempsey Shire Council ordinary meeting held

Tuesday 15 May 2018 .

........... /.� .. MAYOR-EA CAMPBELL