SHIRE OF CARNARVON

MINUTES OF SPECIAL MEETING OF COUNCIL

FRIDAY 30 AUGUST 2019

Council Chambers, Francis Street CARNARVON, West Australia Phone: (08) 9941 0000 Fax: ((08) 9941 1099 Website – www.carnarvon.wa.gov.au

CONFIRMATION OF MINUTES These minutes were confirmed by the

Council on –

………………………………………… As a true and accurate record

………………………………………………..

CHAIRMAN

DISCLAIMER No responsibility whatsoever is implied or accepted by the Shire of Carnarvon for any act, omission or statement or intimation occurring during Council/Committee Meetings or during formal/informal conversations with Staff or Councillors. The Shire of Carnarvon disclaims any liability for any loss whatsoever and howsoever caused arising out of reliance by any person or legal entity on any such act, omission or statement or intimation occurring during Council/Committee Meetings or discussions. Any person or legal entity who acts or fails to act in reliance upon any statement does so at that person's or legal entity's own risk. In particular and without derogating in any way from the broad disclaimer above, in any discussion regarding any planning application or application for a licence, any statement or limitation of approval made by a member or officer of the Shire of Carnarvon during the course of any meeting is not intended to be and is not taken as notice of approval from the Shire of Carnarvon. The Shire of Carnarvon warns that anyone who has an application lodged with the Shire of Carnarvon must obtain and only should rely on WRITTEN CONFIRMATION of the outcome of the application, and any conditions attaching to the decision made by the Shire of Carnarvon in respect of the application.

TABLE OF CONTENTS

1.0 ATTENDANCES , APOLOGIES & APPLICATIONS FOR LEAVE OF ABSENCE (The Local Government Act 1995 Section 2.25 provides that a Council may, by resolution, grant leave of absence to a

member for Ordinary Council Meetings. The leave cannot be granted retrospectively and an apology for non-attendance

at a meeting is not an application for leave of absence.)

2.0 ELECTED MEMBER AND PUBLIC QUESTION TIME

(In accordance with Section 5.23 of the Local Government Act 1995, and Regulation 12(4) of the Local Govenrment (Administration) Regulations 1996, public question time is made available at a Special Meeting of Council to allow members of the public the opportunity of questioning Council on matters relating to the purpose of the meeting only.

3.0 DECLARATIONS OF INTEREST

(Councillors and Staff are reminded of the requirements of Section 5.65 of the Local Government Act 1995, to disclose

any interest during the meeting or when the matter is to be discussed.)

4.0 ITEMS FOR DISCUSSION 4.1 Application for Temporary Retail Store – Lot 64 Banksia Drive, Coral Bay 4.2 Adoption of 2019/2020 Shire of Carnarvon Budget 5.0 MATTERS FOR WHICH MEETING TO BE CLOSED TO MEMBERS OF THE PUBLIC

6.0 CLOSURE

MINUTES OF THE SPECIAL MEETING OF COUNCIL HELD IN THE COUNCIL CHAMBERS, STUART STREET,

CARNARVON ON FRIDAY 30TH AUGUST 2019

The meeting was declared open at 8.30am 1.0 ATTENDANCES, APOLOGIES AND APPROVED LEAVE OF ABSENCE Mr K Brandenburg ....................................................................................................................... Shire President Mr E Garrett ..................................................................................................................... Councillor, Town Ward Mr K Pinner ...................................................................................................................... Councillor, Town Ward Mr E Smith ....................................................................................................................... Councillor, Town Ward Mr L Skender .............................................................................................................Councillor, Plantation Ward Mr P Youd ........................................................................................................................ Councillor, Town Ward Mr B Maslen ................................................................................................. Councillor, Gascoyne/Minilya Ward Mr K Simpson .......................................................... Councillor, Coral Bay Ward(instantaneous communication)

Mr D Burton .....................................................................................................................Chief Executive Officer Mrs J MacKellin .................................................................................... Executive Manager, Community Services Mr M Werder ......................................................................................... Executive Manager, Corporate Services Mr P Lees .......................................................................................... Executive Manager, Development Services Miss S Toomalatai .................................................................................................................... Manager, Finance Mrs D Hill .......................................................................................................................Senior Executive Officer Leave of Absence ............................................................................................................................................ Nil Apologies ............................................................ Mr David Nielsen, Executive Manager Infrastructure Services Observers ........................................................................................................................................................... 5 2.0 ELECTED MEMBER AND PUBLIC QUESTION TIME Nil 3.0 DECLARATIONS OF INTEREST Nil 4.0 ITEMS FOR DISCUSSION 4.1 APPLICATION FOR A TEMPORARY RETAIL STORE INCORPORATING A NEWSAGENCY, POST

OFFICE (AUSTRALIA POST), LOTTERIES AGENCY (LOTTERYWEST), ASSOCIATED STORAGE, OFFICE AND ABLUTIONS ON LOT 64 (NO. 61) BANKSIA DRIVE, CORAL BAY.

File No: P30/19, A3932 Date of Meeting: 30 August 2019 (Special Meeting of Council) Location/Address: Lot 64 (No. 61) Banksia Drive, Coral Bay WA Name of Applicant: Coral Bay News and Gifts Name of Owner: State of Western Australia Author: Paul Lees, Executive Manager Development Services Declaration of Interest: Nil

Voting Requirements: Simple Majority Previous Report: N/A

Summary of Item: This report relates to a Development Application lodged with the Shire of Carnarvon on 23 August 2019 by town planning consultants Dowling Giudici & Associates on behalf of Coral Bay News and Gifts requesting:

• Approval for a temporary retail store incorporating a newsagency, post office and lotteries agency with associated storage, office and ablutions;

• Approval for the relocation of a single storey demountable building and sea containers totalling 249m2

(16.6m x 15m) creating the following: 120m2 of retail floor space, 25m2 of storage space, 14m2 office and amenities room, and a unisex toilet. Note: the proposed premises will comprise of a single transportable building and three (3) sea-containers arranged together in a single-storey configuration under a hipped roof with a veranda skirting the front, sides and rear of the structure;

• The issue of an additional sub-license to occupy and utilise the same area sub-licensed to Refuel Australia; and

• Approval for directional and business name signage (the details of which are not included in the application however the applicant’s planning consultant has requested that the conditions of signage be included in any development approval granted).

It should be noted that the application as found at Schedule 4.1(a) does not specifically include a timeframe for the approval, rather it requests the term of the approval as a “temporary approval”. It can be assumed that the term of the proposal would be consistent with the term of the current sub-licence to Refuel Australia. The proposed use(s) of shop/newsagency/post office can be defined in Local Planning Scheme No. 11 as ‘Shop’ and ‘Office’: “Office: means a building used for the conduct of administration, the practice of a profession, the carrying on of agencies, banks, typist and secretarial services, and services of a similar nature”; and “Shop: means premises wherein goods are kept, exposed or offered for sale by retail or for hire, including premises for the provision of personal services, but does not include a bank, fuel depot, market, service station, milk depot, marine collectors yard, timber yard or land and buildings used for the sale of vehicles or for any purpose falling within the definition of industry.” The ‘Environs Precinct’ of the Precinct Plan in Local Planning Scheme No. 11 (referred to as ‘Natural Environs Precinct’ in the text) does not include shop or office as land uses that may be approved with the discretion of the local government; therefore these land uses must fall within the category of “All other uses are Not Permitted” and they cannot be lawfully approved. For completeness matters relating to the issue of a further sub-licence over the subject land are covered below in the relevant parts of the report. Description of Proposal: The details of the approvals sought are outlined under the summary section above and are illustrated in Figures 1, 2 & 3 below. The applicant advises that power and water supply is available on the subject land via Coral Bay’s reticulated power and water supply networks, however it states that a separate 5000 litre water tank is proposed to be installed at the rear of the proposed premises to service the development and the adjacent fuel facility. The application also states that sewage disposal will be provided by way of an onsite effluent disposal system designed and installed to the Shire’s specifications. The plans lodged with the application show a parking and unloading/loading area capable of accommodating two (2) motor vehicles located between the fuel facility compound and the proposed building. Whilst the vehicle access arrangements might in themselves facilitate some passenger vehicle parking and manoeuvring, it is recognised that two problems may arise from this design: firstly, should the loading bay be occupied by vehicles loading/unloading, then users of the proposed car park would need to egress in a rear direction;

secondly at times when the parking/queuing associated with the fuel facility is at capacity the access arrangements would be impeded by queued vehicles (including boats) waiting to refuel. Land Tenure The subject land is Unallocated Crown Land of which a portion including the area subject to this application is licenced from the State of WA to the Shire of Carnarvon. The Shire has issued a ‘Sub-Licence to Occupy Crown Land’ to Geraldton Fuel Company Pty Ltd (now known as Refuel Australia) for a temporary fuel facility. The sub-licence currently expires on 31 December 2020. The applicant requests “an additional sub-licence to occupy and utilise the same area sub-licenced to Refuel Australia”. The sub-licence to Refuel Australia is specifically for a temporary fuel facility. If the Shire was to grant a sub-licence for some other use (in this instance a retail store incorporating a newsagency and post office) it would be necessary for Refuel Australia to agree to its rights under the sub-licence being adjusted to accommodate the proposed activities. It would also require an amendment to the Shire’s licence approved by the State Minister. Term of the Proposal The applicant’s consultant justifies the proposed temporary approval and term of the sub-licence in the following way:

“Clause 71 in the ‘Deemed Provisions’ listed in Schedule 2 under Part 9 of the Planning and Development (Local Planning Schemes) Regulations 2015 clearly provides the ability for a decision-maker to grant development approval for a period of either less than 2 years or for more than 2 years (with 2 years being the standard time frame in which an approved development is to be substantially commence upon approval being granted).

Therefore, if a proponent only seeks a short-term development approval for a period of less than 2 years

then the decision-maker is at liberty to grant a shorter approval period as requested by the applicant. There is no need for a separate provision to allow this.

In respect to relevant scheme provisions, and as previously stated elsewhere in this Outline, approval for the proposed premises is sought pursuant to the temporary development approval provisions of the scheme.” [Sic].

Whilst the above discussion references a two year, or lesser than two-year period when referencing Clause 71 of the Planning and Development (Local Planning Schemes) Regulations 2015, a careful reading of the application has not located any specified time period for which approval is sought. In any event the recommendation contained in this report does not turn on the specifics of this matter, and therefore further clarification of the time period has not been sought from the applicant.

Figure 1 – Site Plan

Figure 2 – Floor Plan

Figure 3 – Elevations Background: The details of the application have been fully outlined under the heading ‘Description of Proposal’ above. It is noted that the applicant has included in the application package letters of support from: Australia Post (signed by Ms. Ruth Tester, Network Manager, North East WA) and Refuel Australia (signed by Mr. Ian Burrows, Managing Director, Refuel Australia). However, the Shire has received further correspondence from Refuel Australia that raises concerns over traffic movements and congestion associated with the proposed vehicle access arrangements; and concerns over impacts on the current driveway standard and overall traffic management. Mr. Burrows has advised that the “approval” of Refuel Australia is withdrawn, and further advises “I am happy to review this application again once the above issues have been addressed to my satisfaction”. (Refer to Schedule 4.1(b)). For completeness the application states that the application package also includes “a supporting letter from the State of Western Australia, the Landowner, via the Director, Land Management North, Department Planning Lands and Heritage;”. It should be noted that whilst Ms. Vale has signed the application on behalf of the State of Western Australia, the letter of support is not included in the application. Consultation: As discussed below under the heading ‘Statutory Consideration’ the proposed land use(s) as outlined in the application and defined in the Shire of Carnarvon Local Plannig Scheme No. 11 (LPS 11) are considered to be for ‘Office’ and ‘Shop’: “Office: means a building used for the conduct of administration, the practice of a profession, the carrying on of agencies, banks, typist and secretarial services, and services of a similar nature”; and “Shop: means premises wherein goods are kept, exposed or offered for sale by retail or for hire, including premises for the provision of personal services, but does not include a bank, fuel depot, market, service station, milk depot, marine collectors yard, timber yard or land and buildings used for the sale of vehicles or for any purpose falling within the definition of industry.” As these uses are not included in section ‘3.5.2.4 Natural Environs Precinct’ of Local Planning Scheme No. 11 as permissible uses, subject to the discretion of local government, nor are they a ‘SA’ use requiring public notification, the question of public notification is not relevant to this proposal.

Statutory Environment: Planning and Development Act 2005 Part 5, Local Planning Schemes is in force under this Act and has the objective of making suitable provision for improvement, development, and use of the land as described in the local planning scheme area. The Shire of Carnarvon Local Planning Scheme No. 11 has recently been amended to accord with the ‘Deemed Provisions’ and the application has been assessed against the requirements of the Scheme. Planning and Development (Local Planning Schemes Regulations) 2015 Rather than refer to the range of matters that must be considered by a local government when assessing a Development Application (Clause 67 matters) it is more appropriate to refer to the specific clauses of the Regulations on which the application is justified. Clauses 71 & 72 of the Regulations are outlined below as being specifically relevant to the matter: Clause 71. Commencement of development under development approval If development approval is granted under clause 68 — (a) the development must be substantially commenced —

(i) if no period is specified in the approval — within the period of 2 years commencing on the date on which the determination is made; or

(ii) if a period is specified in the approval — within that period; or (iii) in either case — within a longer period approved by the local government on an application made

under clause 77(1)(a); and (b) the approval lapses if the development has not substantially commenced within the period determined

under paragraph (a). Clause 72. Temporary development approval The local government may impose conditions limiting the period of time for which development approval is granted. Note: A temporary development approval is where the local government grants approval for a limited period.

It does not have any effect on the period within which the development must commence. Relevant Plans and Policy: Local Planning Scheme No. 11 As noted below the Coral Bay Settlement area is zoned as ‘Coral Bay Settlement’ in Local Planning Scheme 11; this zoning principally allows for a range of uses consistent with the tourism focus of Coral Bay. The ‘Coral Bay Precinct Plan’ contained in Local Planning Scheme No. 11 (LPS 11) is effectively an overlay of the Coral Bay Settlement area with specific zoning that determines the range of uses that may be approved within each of the precinct zones contained in the Precinct Plan.

Figure 4: Scheme Map Schedule 2 – Coral Bay Precinct Plan The subject land can be identified as being within the ‘Environs Precinct’ of the Coral Bay Precinct Plan as illustrated below. It is reasonable to conclude that the reference in the Scheme text of ‘Natural Environs Precinct’ corresponds with the ‘Environs Precinct’ of the Precinct Plan.

Figure 5 – Precinct Plan 3.5.1 General Provisions Temporary development approval xiv) Local government may approve an application for temporary development approval in the Planning

Precincts subject to the following conditions: (AMD 13 GG 27/07/18)

(a) that the period of the temporary use shall be specified and shall not be greater than three years from the date of approval; and

(b) that all trace of any works, building, plant or materials used for the purposes for which the approval was given shall be removed without claim for compensation at the expiration of the period specified.

xv) In granting temporary development approval local government shall have regard to the matters referred to in Clause 67 of the deemed provisions and Clause 3.5.1. AMD 13 GG 27/07/18

xvi) Pursuant to Clause 3.5.1 (xv) local government may grant approval to extend the period of a temporary use provided that the period for the temporary use does not exceed five years in total including all extensions.

3.5.2.4 Natural Environs Precinct Goal To maintain this Precinct as a natural backdrop to the Coral Bay Settlement whilst recognising

the various development potentials identified within the Settlement Plan. Specific Provisions

1. Land use and development within the Natural Environs Precinct shall be consistent with the approved Coral Bay Settlement Structure Plan. AMD 13 GG 27/07/18

2. The following Use Classes apply within the Precinct:

• Rural Use AA

• Car Park AA

• Public Utilities AA

• Community Purposes AA All other uses are Not Permitted.

Statutory Consideration: It is acknowledged that the applicant’s agent has requested that the application for the establishment of a shop/newsagency/post office within demountable building(s) and associated infrastructure be considered under the provisions of Clauses 71 & 72 of the Planning and Development (Local Planning Schemes Regulations) 2015. It is argued that the temporary business should be approved because of the following three (3) factors:

(i) The temporary development approval provisions in DZS 11, and clause 72 in the ‘Deemed Provisions’ listed in Schedule 2 under Part 9 of the Planning and Development (Local Planning Schemes) Regulations 2015;

(ii) There is no other site readily available and accessible to the proponent to carry on her current business; and

(iii) The relocation of the business to the subject site will have no adverse impact on the surrounding amenity and character of the area in which it will be located. (Ref. Page 6 – Development Outline).

The applicant’s agent further argues:

“It is understood that by virtue of amendment 13 to DZS 11 in July 2018, the Shire holds the view that temporary development approval can no longer be granted to uses that are prohibited in the Coral Bay Settlement zone planning precincts. With respect, it is contended that this is not the case by virtue of the temporary development approval provisions being retained in DZS 11 and that these do not expressly preclude any prohibitive use from being carried out on a temporary basis. It has been suggested by the Shire’s Local Planning Scheme 13 consultant that these provisions remain for the purpose of a proponent being able to apply for short-term or temporary development approvals only for uses permissible in the planning precincts as opposed to seeking permanent development approvals for such uses. However, if this is the case, then arguably, these provisions are superfluous or redundant.”

It should be noted that Shire of Carnarvon District Zoning Scheme No. 11 prior to the recent basic scheme amendment (AMD GG 27/07/18) contained the following provisions (key point bolded): Temporary Permits xv) Council may approve an application for planning approval for a use not permitted in the Planning

Precincts provided that the proposed use: (a) is of a temporary nature only; (b) would not interfere with the tenor of this scheme; and (c) does not interfere with the amenity of the locality; (d) does not compromise the integrity of the Settlement Plan;

subject to the following conditions; (a) That the period of the temporary use shall be specified and shall not be greater than three years

from the date of approval; (b) That all trace of any works, building, plant or material used for the purposes for which the approval

was given shall be removed without claim for compensation at the expiration of the period specified.

xvi) In granting planning approval for a temporary use Council shall have regard to the matters it may take into consideration under Clause 3.5.1 and may impose such further conditions at its discretion.

xvii) Pursuant to Clause 3.5.1 (xvi) Council may grant approval to extend the period of a temporary use provided that the period for the temporary use does not exceed five years in total including all extensions.

The central matter is that the text of the scheme prior to Amendment 13 specifically allowed for the consideration of a “use not permitted” provided a number of tests could be met including: the use was of a temporary nature, did not interfere with the tenor of the scheme, the amenity of the locality, and the integrity of the Settlement Plan. However, the Local Planning Scheme No. 11 currently in force states: Temporary development approval xiv) Local government may approve an application for temporary development approval in the Planning

Precincts subject to the following conditions: AMD 13 GG 27/07/18

(a) that the period of the temporary use shall be specified and shall not be greater than three years from the date of approval; and

(b) that all trace of any works, building, plant or materials used for the purposes for which the approval was given shall be removed without claim for compensation at the expiration of the period specified.

xv) In granting temporary development approval local government shall have regard to the matters referred to in Clause 67 of the deemed provisions and Clause 3.5.1. AMD 13 GG 27/07/18

xvi) Pursuant to Clause 3.5.1 (xv) local government may grant approval to extend the period of a temporary use provided that the period for the temporary use does not exceed five years in total including all extensions.

Local Planning Scheme No. 11 is therefore consistent with the requirements of the ‘Deemed Provisions’: s72. Temporary development approval The local government may impose conditions limiting the period of time for which development approval is granted. Note: A temporary development approval is where the local government grants approval for a limited period.

It does not have any effect on the period within which the development must commence. The Scheme currently in force provides the opportunity for a temporary development approval to be approved, or required as a condition of an approval, for a period of not greater that three (3) years from the date of approval, with the opportunity for a further extension with the approval of local government up to a total period of five (5) years. It should be noted specifically that item (xv) above states: “In granting temporary development approval local government shall have regard to the matters referred to in Clause 67 of the deemed provisions and Clause 3.5.1.”. Clause 67 of the Deemed Provisions states: 67. Matters to be considered by local government In considering an application for development approval the local government is to have due regard to the following matters to the extent that, in the opinion of the local government, those matters are relevant to the development the subject of the application —

(a) the aims and provisions of this Scheme and any other local planning scheme operating within the Scheme area;

(b) the requirements of orderly and proper planning including any proposed local planning scheme or amendment to this Scheme that has been advertised under the Planning and Development (Local Planning Schemes) Regulations 2015 or any other proposed planning instrument that the local government is seriously considering adopting or approving;

It is therefore contended that all of the relevant matters of section 67 of the ‘Deemed Provisions’ must be considered prior to granting an approval; in this instance that key matters relate to:

“the aims and provisions of this Scheme and any other local planning scheme operating within the Scheme area”, and “the requirements of orderly and proper planning including any proposed local planning scheme or amendment to this Scheme that has been advertised under the Planning and Development (Local Planning Schemes) Regulations 2015 or any other proposed planning instrument that the local government is seriously considering adopting or approving”. The argument that “these do not expressly preclude any prohibitive use from being carried out on a temporary basis” cannot override the specific requirements of (a) and (b) of Clause 67 of the ‘Deemed Provisions’ which is that in considering a development approval the local government must consider the aims and provisions of the Scheme in force over the subject land. To further clarify the matter the temporary development approval provisions in clause 3.5.1(xiv)-(xvi) in Local Planning Scheme No. 11 do not provide for a temporary approval to be granted for uses which are not permitted. The terms of these provisions are distinctly different to the previous provisions which expressly allowed for an approval to be granted (provided certain tests were met), however these provisions were recently replaced by Amendment No. 13, the Basic Amendment to LPS 11. This contrast between the previous and current provisions makes it clear that a deliberate change of position was intended with the new provisions in line with the ‘Deemed Provisions’; further clause 72 of the ‘Deemed Provisions’ makes no provision for the temporary approval of uses that are not permitted by the Scheme. As noted previously in this report the land use(s) of shop/newsagency/post office can be defined as “Shop” and “Office” in LPS 13: “Office: means a building used for the conduct of administration, the practice of a profession, the carrying on of agencies, banks, typist and secretarial services, and services of a similar nature”; and “Shop: means premises wherein goods are kept, exposed or offered for sale by retail or for hire, including premises for the provision of personal services, but does not include a bank, fuel depot, market, service station, milk depot, marine collectors yard, timber yard or land and buildings used for the sale of vehicles or for any purpose falling within the definition of industry.” As neither of these uses are included in the uses permissible, with the discretion of the local government, under “3.5.2.4 Natural Environs Precinct” they must fall within the category of “All other uses are Not Permitted” and cannot be approved. For completeness the term “not permitted use” is equivalent to a “prohibited” use. It would be ultra vires (beyond the powers of local government to approve) as it is not permitted by the Scheme. I note that the other general provisions of the Scheme relating to Coral Bay would normally be included in the assessment relating to this report, however in this instance these matters are not relevant as the use is considered to be a use not permitted by the Scheme and cannot proceed to any further consideration. It should be noted that the Shire has sought and received legal advice on a range of matters associated with this application. The officer’s recommendation below aligns with this advice. Financial Implications: Should Council agree with the officer’s recommendation there may be financial implications for the Shire as the applicant will have the right to appeal the decision to the Western Australian State Administration Tribunal (SAT). Risk Assessment: There are no identified risks for the Shire associated with the officer’s recommendation.

Community & Strategic Objectives: Whilst it would be normal practice to assess the matter against the Carnarvon Strategic Community Plan 2018 – 2028, in this instance no further assessment has been undertaken as it is considered that it would be beyond the powers of local government to approve the application. Overall Comment: Firstly, as noted above it is considered that the land use(s) as proposed in the application fall within the “All other uses are Not Permitted” category of the ‘Natural Environs Precinct’ of Local Planning Scheme No. 11 and therefore the use(s) cannot be approved by Council. Secondly, on the matter of the sub-licence, the Shire is not presently able to grant a sub-licence for the proposed shop/newsagency/post office as it would interfere with Refuel Australia’s contractual rights under its sub-licence; and a shop/newsagency/post office is not listed as being within the scope of the permitted use of sub-licence area 64. The proposed use is also not permitted under the Licence to Occupy Crown Land held with the Shire of Carnarvon OFFICER’S RECOMMENDATION

1. That Council refuse to grant development approval for the land use activities and associated development as proposed in Development Application P30/19 on Lot 64 (No. 61) Coral Bay; and

2. That Council, on the basis that Refuel Australia no longer supports the sub-licence application and because the proposed use is not permitted under the Licence to Occupy Crown Land held with the Shire of Carnarvon, decline to further consider the sub-licence application.

SFC 1/8/19 COUNCIL RESOLUTION & OFFICER’S RECOMMENDATION Cr Simpson/Cr Garrett

1. That Council refuse to grant development approval for the land use activities and associated development as proposed in Development Application P30/19 on Lot 64 (No. 61) Coral Bay; and

2. That Council, on the basis that Refuel Australia no longer supports the sub-licence application and because the proposed use is not permitted under the Licence to Occupy Crown Land held with the Shire of Carnarvon, decline to further consider the sub-licence application.

CARRIED

F8/A0

4.2 ADOPTION OF THE 2019/2020 SHIRE OF CARNARVON BUDGET Date of Meeting 30 August 2019 Location/Address Shire of Carnarvon Name of Applicant Shire of Carnarvon Name of Owner N/A Author/s David Burton, Chief Executive Officer,

Maurice Werder, Executive Manager Corporate Services Sa Toomalatai, Finance Manager

Declaration of Interest Nil Voting Requirements Absolute Majority

Summary of Item: The purpose of this report is to present the 2019/2020 draft Budget to Council for adoption. Schedule 4.2(a) contains the draft budget in the statutory format and includes the associated recommended rate in the dollar for General, Differential and Specified Area Rates along with the recommended minimum rates. The 2019/2020 draft Budget is based on a rate model of 6 percent increase in the revenue required for rates to fund the budget program. Description of Proposal: This proposal constitutes the entire Municipal Budget for 2019/2020 including the Schedule of Fees and Charges. Background S6.2 of the Local Government Act 1995 requires Council to have adopted (by Absolute Majority) a Budget for the coming financial year by the 31st August of that year. Ministerial approval is required to extend beyond this date if the budget is not adopted prior to the end of August. The draft 2019/2020 Budget is a balanced, legally compliant document for consideration and adoption at the Ordinary Council meeting convened for 29 August 2019 of Council. In preparing the Budget the Council has considered the differentials to be applied to the UV Mining, UV Pastoral and UV Plantations categories of properties as per the Ordinary Council Meeting held on 23rd April 2019. Council’s resolution at that meeting reads - FC 15/04/19 COUNCIL RESOLUTION & OFFICER’S RECOMMENDATION Cr Smith/Cr Pinner

1. That Council seeks approval under section 6.33 of the Local Government Act to impose differential rates for 2019/2020 land parcels that have unimproved valuations assigned to them as follows;

Category Rate in the $ Minimum Rate $

UV Mining 13.3766 229.00

UV Pastoral 7.5800 461.00

UV Intensive Horticulture 1.2850 902.00

2. That Council publicly advertises its intention to impose differential rates, pursuant to section 6.36 (1)

of the Local Government Act 1995 and invites public submissions for a period of twenty-one days; and 3. That Council adopt the Objectives and Reasons of the Differential Rates relating to UV Mining,

UV Pastoral and UV Intensive Horticulture as outlined in the attached Schedule 4.2. 4. That Council consider any submissions in respect of imposition of differential rates as part of the

2019/2020 Budget deliberations CARRIED

F7/A0 Consultation: The proposed Differential Rate was advertised for a period of 21 days seeking public comment in accordance with Section 6.36 (1) of the Local Government Act 1995, and no submissions were received during this period. The Department of Local Government, Sport and Cultural Industries has advised by letter dated 29 July 2019 that the Differential rates and Minimum amounts adopted and advertised for Unimproved Valued (UV) properties have been approved. Communicating the content of this Budget to the community is an extremely important step. It is the second year of the four-year budget and delivery program of the Corporate Business Plan. This financial year continues the course for the successful implementation of the Corporate Business Plan and the Strategic Community Plan. As such, communication should follow the approach as set out for the Corporate Business Plan, which is repeated in updated format below for ease of reference. In terms of the 2019/20 budget specifically, it is important for the community to understand the long-term financial context for the rates increase in 2019/20 and in the early years of the Strategic Community Plan. This isn’t about grandiose expenditure increases, but the responsible long-term management of the development of the Shire, including the maintenance and renewals requirements of the whole asset base. The community will not thank the Council for keeping rates as low as possible now resulting in much higher increases in years to come. The increase in rates in 2019/20 will increase total revenue over the next ten years by $3.5 m more than an inflation adjustment alone. This budget represents a financially responsible move to put the Shire on to a sound financial footing. Key messages Communication of a complex set of decisions can be challenging. A small number of key messages that are simple, clear and repeated are essential to the community’s understanding. The five key messages outlined below have been distilled from the Council’s workshops on the CBP.

1. The CBP (and 2019/20 Annual Budget) enables the Shire and community to move forward together.

2. The plan and budget represents a solid investment in the foundations for a prosperous and strong community. The Council has listened to the community and is united in targeting:

• Improving infrastructure for tourism to benefit the economy and community as a whole

• Investing in our young people to thrive and contribute

• Modernisation of the Shire to get the basics right

• Consolidation and responsible management of the community’s assets

• Addressing the legacy issues of the Fascine entrance and wall and the town centre once and for all

3. This is not a ‘wish and hope’ plan. It has been fully costed and ruthlessly prioritised. The four-year budget forecasts show that this plan is achievable with rates increases of 8% in the first year (2018/2019), 6% for the following three years, and stabilising after that. Council is aware that this is a big ask when wealth and incomes in the community haven’t been growing in equal proportion. However, at previous levels, the rates would not be sufficient to stand still. And the community has been clear that it does not want to stand still, let alone go backwards.

4. In terms of the legacy issues, the Council recognises that there is frustration and anger in the community over past actions that we are being forced to pay for now. While fixing these issues and moving on is the only responsible course of action, we want to assure the community that:

• There will be hard science behind our decisions

• We will learn from the mistakes of the past and strengthen our checks and balances to ensure it doesn’t happen again (a key part of “getting the basics right”)

• We will vigorously pursue recovery from those responsible to the fullest feasible extent.

5. We have heard the community’s strong desire for unity. Council is committed to partnering with the community, Government agencies, and others who have an influence on our future. We will work hard to overcome the divisions of the past and focus on the common ground of achieving our community’s vision.

6. The CBP will not sit on a shelf gathering dust. We will task our Chief Executive Officer with delivering this plan, and we will report progress to the community on a regular basis.

Communication channels The community will be looking for strong leadership and reassurance that their elected Council is in the driving seat of the Corporate Business Plan, united, and exercising wise governance. Councillors’ interactions with community members will carry considerable weight in reinforcing the rationale behind the plan and how it will benefit the community. Most importantly perhaps, these interactions will help to inspire confidence in the Council’s commitment and ability to deliver the plan, especially in light of the upcoming appointment of a new Chief Executive Officer. Coherent and consistent communication of the plan by Councillors is therefore critical. The Shire’s staff members are also key to successful communication of the plan, and they will be fully briefed and supported to respond to comments and questions from the general community and their networks. In addition, it is proposed to use the key messages to craft material for the Shire’s website, Facebook page, and other media. Statutory Environment: The Local Government Act 1995 requires each Local Government to prepare and adopt an annual budget in accordance with Section 6.2. The Council is required to adopt the Budget by 31 August of each year. Section 5.63(1)(b) of the Local Government Act 1995 specifically excludes the need for elected members to “Declare a Financial Interest” in imposing a rate, charge or fee. Relevant Plans and Policy: The draft Budget has been prepared in accordance with Council’s “Significant Accounting Policies”, which are included in the Draft Budget document for information and guidance. Council has in place ‘Plans for the Future’, which comprise Strategic Community Plan adopted on 26 June 2019 and Corporate Business Plan which is was adopted on 29 August 2019. A new Long-Term Financial Plan is currently being prepared for adoption September/October 2019. The Council has considered the provisions of those plans in developing its CBP and the 2018/2019 draft budget. Financial Implications: The proposed budget is “balanced” in that proposed expenditure is covered by revenue and balances carried forward from 2018/19. The budget does indicate a surplus at 30 June 2020. It has been the practice in recent years for 50% of the Federal Assistance Grants for the following year to be paid in advance. This budget anticipates that will happen again this year. The surplus therefore relates to the future year’s expenditure. Refer to the Corporate Business Plan 2018 – 2022 to see the impact across future years. The overall increase in rates revenue will be up 6% from 2018/2019 if the budget is adopted as presented. The overall increase in fees and charges reflects the statutory charges and some specific fees and charges have been increased from minimal increase and others up to 3%. Risk Assessment: Failure to adopt the draft 2019/2020 Budget by the end of August 2019 will present a high risk of breaching Section 6.2 of the Local Government Act 1995 and create difficulty with operational matters including cash flow and expenditure to deliver services and capital works to the community in a timely and efficient manner.

Community & Strategic Objectives:

Goal 5: Civic

Strong and listening Council.

5.4 Sound financial and asset management

5.4.1 The Shire has an Asset Management Plan in place for each asset class

5.4.2 The Shire’s Long-Term Financial Plan shows financial sustainability, with realistic renewals expenditure and a realistic rates profile

5.4.3 A four-year budget is included in the Corporate Business Plan which signals a realistic anticipated rates profile for the medium term

5.4.4 Financial transactions are accurate and timely

5.4.5 Procurement ensures probity, fairness, level playing field for local suppliers, and value for money

Comment a) Budget Considerations

Several workshops were conducted with the purpose of examining services and issues in merging the Corporate Business Plan 2018 – 2022 into the Budget 2019/2020. The new budget is made up of the CBP influenced by the ‘risk’ based projects, uncompleted works from 2018/2019 and adjustments for works considered necessary to meet the strategic plans of the Shire. These movements reflect the flexibility of the CBP whilst acknowledging the Council approved direction of the plan. The overall workshop program involved examining current levels of service, issues, risks and known community aspirations. Together they provided direction to the Chief Executive Officer to finalise the draft Plan which is now submitted for the consideration and adoption by the Council. Key considerations in preparing the budget included: - Award wage increases - Consolidating infrastructure including tourism infrastructure and ongoing maintenance - Investing in young people - modernisation of services and “back-office” functions including: integrated planning and reporting, customer service, records, tenders and purchasing, project management, information technology and risk management - Addressing some complicated legacy issues - Increased operational costs such as utilities. In order to mitigate the impact of these factors the Council will continue to look for efficiencies in its operations, review its property and buildings portfolio, consider further contracting out of construction and maintenance where this is beneficial, review its rates and revenue framework and systems and strengthen partnerships with others, where taking a co-ordinated approach can produce both direct and indirect financial benefits.

b) Differential Rates

The differential rates for Mining, Pastoral and Intensive Horticulture were previously set out in the local public notice of the intention to charge differential rates. An change in the differential rate on the UV properties is the result of further rates modelling calculations to meet the overall rate requirements for the Shire to be set as a 6% increase over last year rate revenue.

c) Salaries and Allowances for Elected Members No change is proposed to salaries and allowances for Elected Members. These were increased at the time of setting the 2017/18 budget. They had not been reviewed since 27 August 2013 where they were set at the minimum of the Salaries and Allowance Tribunal (S&AT) determinations issued from time to

time.

In setting new fees in 2017/2018 a four step framework was proposed as per the table below:

Current Annual Fee and/or allowance

Prescribed Range under the Act

Possible payments steps

Councillor Band 2 Step 2

$17,484

$14,865 - $23,230 Step 1 $14,865 Step 2 $17,484 Step 3 $ 20,238 Step 4 $ 23,230

Shire President Band 2 Step 3

$46,896 $15,377 -$63,354 Step 1 $15,225 Step 2 $31,059 Step 3 $46,896 Step 4 $63,354

Deputy Shire President Band 2 Step 3

$11,724 $3,500 - $15,838 @ 25% of President Step 1 $ 3,806 Step 2 $ 7,765 Step 3 $11,724 Step 4 $15,838

Extract from Tables 8 & 10 S&AT Local Govt CEO and Elected Members Determination 2019

The remuneration for Councillors is set at Step 2 and the President and Deputy President’s remuneration is set at Step 3. A decision by Councillors was made to keep the remuneration at the 2018/2019 levels.

d) Grant Funding The draft 2019/2020 Budget incorporates a significant number of grants (either unspent from the previous year, or payable in 2019/2020). It is intended to actively pursue all additional avenues for grant funding to assist deliver the work program contained in the budget. Some projects or initiatives have been identified as only proceeding if grant funding is available.

e) Major and Iconic Events Policy C025 Community Growth Fund provides for events which are deemed by Council to be ‘iconic’ to the Shire of Carnarvon, and that are worthy of annual financial support without the need for the relevant event organisers making an application through the Community Growth Fund process. The events identified in the policy have been provided for in the draft budget in the following sums sourced from the Community Growth Fund: - Tropicool Festival $7,000 - Gascoyne Off-Road Racing Club – “Gassy Dash” event $4,500 - Carnarvon NAIDOC Celebrations $5,000 - Carnarfin Fishing Competition $3,500

f) Other Matters This report should be read in conjunction with the Corporate Business Plan 2018 – 2022 which sets out the detailed program. In particular the following strategic priorities are progressed in the 2019/20 budget. Improved standard of assets and facilities

• Roads to Recovery Program

• Tourism and rural access roads

• Civic Centre upgrade (grant funding received)

• Staged playground upgrade program

• Splash park (subject to grant funding)

• Recycled water network upgrade

• Pump station upgrades

• Fascine wall – long term maintenance program

• Blowholes – Reserve redevelopment Facilitation of economic development and tourism

• Update and finalise Economic and Tourism Development Plan

• Continue partnership with REX airline to promote the district

• Royal Show exhibition

• Achieve RV-Friendly status

• Collaborate with the Heritage Committee to facilitate a resolution to the One Mile Jetty

• Facilitation to support Aboriginal business development

• Carnarvon Fascine management, including dredging

• Advocacy and facilitation to support the provision of Coral Bay workers accommodation Community development

• Strengthen agency partnerships to support families

• Support the provision of age appropriate housing and aged care

• Update the Age-Friendly Community Plan (seek grant)

• Maintain support for sport and recreation clubs

• Increased focus on emergency management Reconciliation

• Develop an appropriate Aboriginal representation structure and complete Reconciliation Action Plan

• Fly the Aboriginal flag every working day

• Cultural awareness training

• Reinforce actions on Memorandum of Understanding with Yingarrda Youth Services

• To produce a youth-led community-based action plan influenced by the ‘Future For All Young People’ summit.

Waste Management

• Education on the reduction and reuse of waste

• Develop the ‘Bring and Reuse Centre’ at Carnarvon waste disposal facility

• Expand capacity of waste disposal facilities at Carnarvon and Coral Bay

OFFICER’S RECOMMENDATION That Council

1. Adopt the 2019/2020 Budget for the Shire of Carnarvon for the financial year ending 30th June 2020 [as presented under separate cover as (Schedule 4.4)] pursuant to Section 6.2 of the Local Government Act 1995 and relevant prescribed Local Government Financial Management Regulations, and incorporating the following:

(a) Statement of Comprehensive Income by Nature and Type; (b) Statement of Comprehensive Income by Program; (c) Cash Flow Statement; (d) Rate Setting Statement by Program; (e) Rates and Service Charges; (f) Net Current Assets; (g) Reconciliation of Cash; (h) Fixed Assets; (i) Asset Depreciation;

(j) Borrowings; (k) Cash Backed Reserves; (l) Fees and Charges; (m) Grant Revenue; (n) Other Information; (o) Major Land Transactions; (p) Trust; (q) Significant Accounting Policies - Other

2. In accordance with Sections 6.32, 6.33, 6.34, 6.35, 6.36 and 6.37 of the Local Government Act 1995,

impose the following general rates, minimum rates and specified area rates within the Shire of Carnarvon boundaries in respect of the 2019/2020 financial year based upon current valuations – General Rate

Gross Rental Value 0.104740 cents in dollar on gross rental valuation of rateable property. Unimproved Value Mining 0.141000 cents in the dollar on unimproved valuation of rateable property including mining claim, leases and licenses. Unimproved Value Pastoral 0.075966 cents in the dollar on unimproved valuation of rateable property. Unimproved Value Intensive Horticulture 0.013028 cents in the dollar on unimproved valuation of rateable property. Minimum Rates $1,093 per assessment on gross rental value properties $ 229 per assessment on unimproved value – mining properties $ 461 per assessment on unimproved value – pastoral properties $ 902 per assessment on unimproved value – intensive horticulture properties

Specified Area Rates (pursuant to part 6, division 6, section 6.37) Coral Bay Refuse Site Maintenance 0.069528cents in the dollar applied to all rateable properties within Coral Bay for the maintenance of the Coral Bay Refuse Site.

3. Note that no submissions were received with regard to the advertised proposed differential rates

(including minimum differential rates).

4. Charge an interest rate of 11% on any outstanding rates and charges that remain overdue as described in accordance with S6.51 of the Act.

5. Provide the option for ratepayers to pay their rates as a single payment, or by 2 or 4 instalments in accordance with S6.45(1) of the Act

6. Impose the following Rubbish Service Charges:

01 Domestic Rubbish 475.00

02 Commercial M/G/Bin 475.00

03 Domestic Rubbish Pensioners 403.00

7. Adopt a value of $10,000 (minimum) and 10% as the variance for financial reports to Council during 2019/2020 in accordance with Clause 34A(5) of the Local Government (Financial Management) Regulations, 1996.

8. Adopt the Fees and Charges as presented in the Budget in accordance with Section 6.16 of the Local Government Act, 1995, all fees and charges to be effective immediately.

9. In line with Policy C025 Community Growth Fund, adopt the following sums as those to be distributed to the associations identified as Iconic Events from the Community Growth Fund:

• Tropicool Festival $7,000

• Gassy Dash Event $4,500

• Carnarfin Fishing Competition $3,500

• NAIDOC Celebrations $5,000

10. Approves the “Key Messages” contained in this report as the basis of communicating the content of the 2019/20 Budget.

(Absolute Majority Required) SFC 2/8/19 COUNCIL RESOLUTION & OFFICER’S RECOMMENDATION Cr Garrett/Cr Youd SFC 3/8/19 COUNCIL RESOLUTION Cr Maslen/Cr Smith That Standing Orders Section 13 be suspended at 8.38am in order to discuss the budget in more detail.

DRAWN F4/A4

In accordance with Section 5.23(c) of the Local Government Act 1995 the Presiding Member exercised his right to cast a second vote.

MOTION SFC 3/8/19 WAS LOST F4/A5

That Council

1. Adopt the 2019/2020 Budget for the Shire of Carnarvon for the financial year ending 30th June 2020 [as presented under separate cover as (Schedule 4.4)] pursuant to Section 6.2 of the Local Government Act 1995 and relevant prescribed Local Government Financial Management Regulations, and incorporating the following:

(a) Statement of Comprehensive Income by Nature and Type;

(b) Statement of Comprehensive Income by Program; (c) Cash Flow Statement; (d) Rate Setting Statement by Program; (e) Rates and Service Charges; (f) Net Current Assets; (g) Reconciliation of Cash; (h) Fixed Assets; (i) Asset Depreciation; (j) Borrowings;

(k) Cash Backed Reserves; (l) Fees and Charges; (m) Grant Revenue; (n) Other Information; (o) Major Land Transactions; (p) Trust; (q) Significant Accounting Policies - Other

2. In accordance with Sections 6.32, 6.33, 6.34, 6.35, 6.36 and 6.37 of the Local Government Act 1995,

impose the following general rates, minimum rates and specified area rates within the Shire of Carnarvon boundaries in respect of the 2019/2020 financial year based upon current valuations – General Rate

Gross Rental Value 0.104740 cents in dollar on gross rental valuation of rateable property. Unimproved Value Mining 0.141000 cents in the dollar on unimproved valuation of rateable property including mining claim, leases and licenses. Unimproved Value Pastoral 0.075966 cents in the dollar on unimproved valuation of rateable property. Unimproved Value Intensive Horticulture 0.013028 cents in the dollar on unimproved valuation of rateable property. Minimum Rates $1,093 per assessment on gross rental value properties $ 229 per assessment on unimproved value – mining properties $ 461 per assessment on unimproved value – pastoral properties $ 902 per assessment on unimproved value – intensive horticulture properties

Specified Area Rates (pursuant to part 6, division 6, section 6.37) Coral Bay Refuse Site Maintenance 0.069528cents in the dollar applied to all rateable properties within Coral Bay for the maintenance of the Coral Bay Refuse Site.

11. Note that no submissions were received with regard to the advertised proposed differential rates

(including minimum differential rates).

12. Charge an interest rate of 11% on any outstanding rates and charges that remain overdue as described in accordance with S6.51 of the Act.

13. Provide the option for ratepayers to pay their rates as a single payment, or by 2 or 4 instalments in accordance with S6.45(1) of the Act

14. Impose the following Rubbish Service Charges:

01 Domestic Rubbish 475.00

02 Commercial M/G/Bin 475.00

03 Domestic Rubbish Pensioners 403.00

15. Adopt a value of $10,000 (minimum) and 10% as the variance for financial reports to Council during

2019/2020 in accordance with Clause 34A(5) of the Local Government (Financial Management) Regulations, 1996.

16. Adopt the Fees and Charges as presented in the Budget in accordance with Section 6.16 of the Local

Government Act, 1995, all fees and charges to be effective immediately.

17. In line with Policy C025 Community Growth Fund, adopt the following sums as those to be distributed to the associations identified as Iconic Events from the Community Growth Fund:

• Tropicool Festival $7,000

• Gassy Dash Event $4,500

• Carnarfin Fishing Competition $3,500

• NAIDOC Celebrations $5,000

18. Approves the “Key Messages” contained in this report as the basis of communicating the content of the 2019/20 Budget.

CARRIED BY ABSOLUTE MAJORITY F5/A3

Crs’ Pinner, Maslen and Smith voted against the motion 5.0 MATTERS FOR WHICH MEETING TO BE CLOSED TO MEMBERS OF THE PUBLIC Nil 6.0 CLOSURE: The Chairman declared the meeting closed at 9.03am