strategic and general services committee · 2018. 3. 8. · strategic and general services...

AGENDA

Strategic and General Services Committee

Wednesday, 17 June 2015, 6.00pm

CITY OF FREMANTLE

NOTICE OF A STRATEGIC AND GENERAL SERVICES

COMMITTEE MEETING Elected Members A Strategic and General Services Committee meeting of the City of Fremantle will be

held on Wednesday, 17 June 2015 in the Council Chamber, Town Hall Centre, 8

William Street, Fremantle (access via stairs, next to the playground in Kings Square)

commencing at 6.00 pm.

Glen Dougall DIRECTOR CITY BUSINESS 11 June 2015

STRATEGIC AND GENERAL SERVICES COMMITTEE

AGENDA

DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS NYOONGAR ACKNOWLEDGEMENT STATEMENT "We acknowledge this land that we meet on today is part of the traditional lands of the Nyoongar people and that we respect their spiritual relationship with their country. We also acknowledge the Nyoongar people as the custodians of the greater Fremantle/Walyalup area and that their cultural and heritage beliefs are still important to the living Nyoongar people today." ATTENDANCE / APOLOGIES / LEAVE OF ABSENCE RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE PUBLIC QUESTION TIME DEPUTATIONS / PRESENTATIONS DISCLOSURES OF INTEREST BY MEMBERS LATE ITEMS NOTED CONFIRMATION OF MINUTES That the minutes of the Strategic and General Services Committee dated 20 May 2015 be confirmed as a true and accurate record. TABLED DOCUMENTS

TABLE OF CONTENTS

ITEM NO SUBJECT PAGE

REPORTS BY OFFICERS (COMMITTEE DELEGATION) 1

SGS1506-1 SUPPLY AND LAYING OF ASPHALT WFCC05/12 1

SGS1506-2 SALE CONSIDERATION OF 12 HOLDSWORTH STREET, FREMANTLE 4

REPORTS BY OFFICERS (COUNCIL DECISION) 7

SGS1506-3 PERTH FREIGHT LINK: MAKING THE RIGHT INVESTMENT IN PERTH'S FREIGHT TASK 7

NOTICE OF MOTION FROM SPECIAL PROJECTS COMMITTEE 13 MAY 2015 (COUNCIL DECISION) 14

SPC1505-1 NOTICE OF MOTION – CR JON STRACHAN – FREMANTLE COUNCIL’S POSITION ON THE PROPOSED PERTH FREIGHT LINK 14

REPORTS BY OFFICERS (COUNCIL DECISION) 18

SGS1506-4 PROPOSED SALE OF 73 HAMPTON ROAD 18

SGS1506-5 MANAGEMENT AGREEMENT TAPPER STREET MEWS - CO OPERATION HOUSING 22

SGS1506-6 FORMER WARDERS' COTTAGES, 7 - 41 HENDERSON STREET, FREMANTLE 28

SGS1506-7 EXTERNAL CONSERVATION WORKS TO FREMANTLE TOWN HALL, 8 WILLIAM STREET FREMANTLE 46

SGS1506-8 2016/17 BLACK SPOT PROJECT PROPOSALS 59

SGS1506-9 WEXFORD WAY FULL ROAD CLOSURE TRIAL ASSESSMENT 63

SGS1506-10 OFFER OF LEASE TO ENKEL FOR NAVAL STORES 68

SGS1506-11 DELEGATED AUTHORITY REGISTER REVIEW 2015 75

SGS1506-12 MONTHLY FINANCIAL REPORT - MAY 2015 81

SGS1506-13 MEMORANDUM OF UNDERSTANDING - SALE OF MATERIALS RECOVERY FACILITY 89

CONFIDENTIAL MATTERS 92

AGENDA ATTACHMENTS 1

SGS1506-1 SUPPLY AND LAYING OF ASPHALT WFCC05/12 3

SGS1506-2 SALE CONSIDERATION OF 12 HOLDSWORTH STREET, FREMANTLE 5

SGS1506-3 PERTH FREIGHT LINK: MAKING THE RIGHT INVESTMENT IN PERTH'S FREIGHT TASK 7

SGS1506-5 MANAGEMENT AGREEMENT TAPPER STREET MEWS - CO OPERATION HOUSING 90

SGS1506-6 FORMER WARDERS' COTTAGES, 7 - 41 HENDERSON STREET, FREMANTLE 123

SGS1506-7 EXTERNAL CONSERVATION WORKS TO FREMANTLE TOWN HALL, 8 WILLIAM STREET FREMANTLE 143

SGS1506-8 2016/17 BLACK SPOT PROJECT PROPOSALS 150

SGS1506-10 OFFER OF LEASE TO ENKEL FOR NAVAL STORES 155

SGS1506-11 DELEGATED AUTHORITY REGISTER REVIEW 2015 206

SGS1506-12 MONTHLY FINANCIAL REPORT - MAY 2015 293

SGS1506-13 MEMORANDUM OF UNDERSTANDING - SALE OF MATERIALS RECOVERY FACILITY 299

Agenda - Strategic and General Services Committee 17 June 2015

Page 1

REPORTS BY OFFICERS (COMMITTEE DELEGATION)

The following items are subject to clause 1.1 and 2.1 of the City of Fremantle Delegated Authority Register

SGS1506-1 SUPPLY AND LAYING OF ASPHALT WFCC05/12

ECM Reference: 135/001 Disclosure of Interest: Nil Meeting Date: 17 June 2015 Previous Item: Nil Responsible Officer: Lionel Nicholson, Acting Director Infrastructure and

Project Delivery Actioning Officer: Craig Harris, Acting Manager City Works Decision Making Authority: Committee Agenda Attachments: Evaluation Tables

EXECUTIVE SUMMARY

The implementation and delivery of the City’s annual work programs requires the provision of supply and lay of asphalt services on various projects. Tenders were called for this service and following an evaluation of submissions the City’s internal major procurement approval panel has endorsed the recommendation that the tender submitted by Roads 2000 be accepted for the supply and lay of asphalt. The tenderer has the necessary experience and resources to perform the works complying with tender specifications. The contract is for a one year and eight month period in line with the WALGA Road Building Material and Related Services Contract. Price schedules will be adjusted for CPI rise and fall of bitumen prices. As the estimated total cost of the contract over this period will exceed the Chief executive Officer’s delegated authority, this tender is submitted for Committee’s endorsement.

BACKGROUND

The City engages contractors for various works associated with the completion of the annual capital and operational work programs. In order to meet the requirements of the Local Government Act, City policies and to simplify the procedure of procuring such services, tenders were called for suitably qualified contractors to provide the service of supply and delivery of asphalt surfacing through the WALGA procurement process. The tender was advertised on the WALGA Tender Link e-Tendering Portal on 11 May 2015.


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Tenderers were required to provide prices on a schedule of rates basis for the following services:

1. Supply and lay of hot asphalt mix 2. Supply and lay of red asphalt mix containing 2% oxide 3. Supply and lay of warm asphalt mix 4. Supply and lay of recycled asphalt mix 5. Supply and lay of asphalt - Handwork 6. Profiling

COMMENT

Tender documents were received from four tenderers; Fulton Hogan Industries Pty Ltd AAA Asphalt (Asphalt Surfaces), Roads 2000 and Asphaltech Pty Ltd Tender submissions were assessed against the selection criteria set out in the specifications. Tenderers had to address all the selection criteria to demonstrate their qualifications and experience. The selection criteria were

(a) Methodology 20% (b) Experience 20% (c) Skills & Resources 20% (d) Price 40% The pricing assessment was based on historical data of the quantities used on the previous annual work program. Past experience has demonstrated that at times contractors are not able to meet required timelines due to the overall industry demand for the service across the metropolitan area with all local governments pursuing the completion of their works programs. Subject to reasonable notice been given to a contractor work will be offered to the next highest scoring tenderer should the former be unable to meet required timelines.

RISK AND OTHER IMPLICATIONS

Financial

Budget is available against operational and capital work projects for the next financial year and approximately $1,085,000 including GST was expended in the 2014/2015 financial year. Forecasted expenditure will be in the order of $500,000 in the next financial year including approximately $100,000 for profiling. Legal

The obligations of Local Governments in regard to tenders for providing goods or services; Section 3.57 of the Local Government Act 1995 and Part 4 of the Local Government (Functions and General) Regulations 1996.


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Operational

The City completes its annual construction program projects by deploying a mix of in-house construction teams and resources including the engagement of contractors who provide specialist services.

Organisational

The employment of the tenderer for the provision of the specified services is available to the whole of organisation.

CONCLUSION

In summary AAA Asphalt (Asphalt Surfaces) had the lowest price followed by Roads 2000 having the next highest by a difference of $9,259. In assessing the qualitative criteria of Methodology, Experience and Skills & Resources; Roads 2000 received the highest overall rating. This overall rating was 6.2% higher than AAA Asphalt. In a previous contract with Asphalt Surfaces the contractor was not always able to meet timeframes and quality standards requiring the City to engage alternative asphalt contractors. Roads 2000 is the current contractor delivering excellent service and have met project time lines. Major projects delivered such as Hampton Road and Queen Victoria Street are examples of their high standard of work.

STRATEGIC AND POLICY IMPLICATIONS

This item has a connection to the Strategic Plan through Urban Renewal & Integration by providing a great place to live, work and play, through growth and renewal.

COMMUNITY ENGAGEMENT

Not a requirement of this procurement process.

VOTING AND OTHER SPECIAL REQUIREMENTS

Simple Majority Required

OFFICER'S RECOMMENDATION

The Strategic and General Services Committee accepts the tender of Roads 2000 for tender WFCC18/15 Supply and Delivery of Asphalt Surfacing for a one year and eight month period 1 July 2015 to 28 February 2017.


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SGS1506-2 SALE CONSIDERATION OF 12 HOLDSWORTH STREET, FREMANTLE

ECM Reference: L038 Disclosure of Interest: Nil Meeting Date: 17 June 2015 Previous Item: Nil Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Nadine Hume, Property Services Administrator Decision Making Authority: Committee Agenda Attachments: Letter of Request for Lease Extension – Dental Clinic

Aerial View of 12 Holdsworth Street, Fremantle Confidential Attachment

EXECUTIVE SUMMARY

This item is for Committee to consider the future of 12 Holdsworth Street, Fremantle (Lot 441 on Deposited Plan 45395, Volume 2616, Folio 799) which is currently leased to the Minister for Health. The lease is due to expire on 31 March 2016.

BACKGROUND

The City of Fremantle entered into the current Lease with the Minister for Health for 12 Holdsworth Street, Fremantle for the permitted use of Dental Clinic and Medical Centre (Birmingham Centre), for a term of twenty one (21) years effective from 1 April 1995 on a peppercorn rental and recovery of all outgoings. In 2005 the Minister for Heath relinquished the lease over the Birmingham Centre retaining only the Dental Clinic. On the 6 September 2005 the City entered into a Sales Contract with Basilio and Georgiana Lenzo for the sale of the Birmingham Centre subject to subdivision. The subdivision of 12 Holdsworth Street (with the Birmingham Centre becoming 26 Parry Street) was completed in early 2006 with settlement occurring 3 April 2006. The Minister for Health has maintained the Lease on 12 Holdsworth Street under the trading name of Dental Health Services with the Lease due to expire 31 March 2016. The City has received a request from General Manager of Dental Health Services requesting an extension of Lease under the current terms in the attached letter received 20 April 2015 and City Officers have since received a notification for the term to be a further ten years effective 1 April 2016.


Page 5

COMMENT

12 Holdsworth Street, Fremantle being Lot 441, Deposited Plan 45395, Volume 2616, Folio 779 is a land area of 806m2 within Central City Zone with a LPS4 Zoning of Mixed Use. Given the planned redevelopment of the Birmingham Centre at 26 Parry Street for a multiuse development including a basement car park, commercial ground floor and multiple dwellings, 12 Holdsworth Street is in a strategic position for possible redevelopment, renewing what is becoming an aging free hold asset that is generating no rental income for the City. City Officers are also putting forward a new initiative and concept design for the upgrade of Queens Square to be undertaken in conjunction with the development of 26 Parry Street, with the aim that these works are completed at the same time as the redevelopment. 12 Holdsworth Street’s position and zoning will allow for both a commercial and urban perspective to complement the current development occurring next door and the proposed upgrade of Queens Square. Officer Comment A Notice of the Chief Executives Officers intention to exercise Delegated Authority to approve an application for a Lease Extension between the City of Fremantle and the Minister for Health for 12 Holdsworth Street, Fremantle was sent to Elected Members 23 April 2015. Given the previous length of tenure and request for a further ten year term on a peppercorn rental, the request was made by Elected Members that City Officers investigate different uses of the site. The General Manager of Dental Health Services has been advised that the City is currently considering alternate options for the site and has enquired as to the possibility of the Dental Clinic being relocated to the now underutilised Fremantle Hospital. An answer to this possibility has not yet been forthcoming from the Department of Health, but Officers have been advised that Dental Health Services would look at relocation to the Hospital site as an option if they were unable to extend their lease term.


Financial

A letter of valuation has been attached to this item under confidential attachment. Under the Local Government Act 1995 (3.59) the City is required to adopt a reserve price based on an independent market valuation should sale be considered. Legal

Local Government Act 1995


Page 6

Under the Local Government Act 1995 the City is able to dispose of an asset by way of public auction or public tender. Operational

Should Council approve the sale of the property a local agent will be appointed, with the agent to be selected from no less than three quotations. Organisational

Nil

CONCLUSION

The City purchased 12 Holdsworth Street, Fremantle in1987. As the premises have been leased on a “no cost” lease with only outgoings being recovered the City has received no return for the free hold asset during the time of ownership. Additionally the Lease with the Minister for Lands means that the premises are not rateable. With developments occurring within the area it is possible this premises could be utilised in broader parameters given its zoning of mixed use.


Urban Renewal & Integration


Nil




For Committee to approve; 1. The Minister for Lands, care of the General Manager of Dental Health

Services, be advised that the City of Fremantle will not be entering into a further Lease for 12 Holdsworth Street, Fremantle after the current lease expires on 31 March 2016.

2. The development of terms and conditions for the sale of 12 Holdsworth

Street, Fremantle to be brought to Council for approval at the next appropriate Ordinary Council Meeting.


Page 7

REPORTS BY OFFICERS (COUNCIL DECISION)

SGS1506-3 PERTH FREIGHT LINK: MAKING THE RIGHT INVESTMENT IN PERTH'S FREIGHT TASK

ECM Reference: 165/012 Disclosure of Interest: None Meeting Date: 17 June 2015 Previous Item: Nil Responsible Officer: Paul Trotman, Director Strategic Planning &Projects Actioning Officer: Paul Trotman, Director Strategic Planning &Projects Decision Making Authority: Council Agenda Attachments: Main Roads WA May 2015 Information Sheet on the

Perth Freight Link Perth Freight Link: Making the right investment in Perth’s freight task – report to Council by Curtin University Sustainability Policy (CUSP) Institute Perth Freight Link: Making the right investment in Perth’s freight task – Executive Summary

EXECUTIVE SUMMARY

This item transmits to Council the Perth Freight Link: Making the right investment in Perth’s freight task report by the Curtin University Sustainability Policy Institute. The report is to Council to inform their consideration of what position to take on the proposed Perth Freight Link and as such is for “receiving and noting” only.

BACKGROUND

The City of Fremantle’s vision for the future of Fremantle includes the retention of the

Fremantle inner harbour as a working port. Current container trade figures for the inner

harbour show an annual throughput of approximately 700,000 TEU’s: a TEU is a

standard measure to express container traffic in, and means ‘twenty foot equivalent unit’

– thus a forty foot long container would be two such units. It is understood that the inner

harbour has the capacity to grow that container trade (based on current technology and

operational methods) to around 1.4 million TEU’s, or by a factor of two. Further, there are

a number of significant bulk cargos sent and received at the inner harbour such as motor

vehicles and live animals as well as cruise ship visits. The inner harbour’s future is also

likely to be impacted by how any new owners of the port (should it be sold) view and

manage their investment.

Capacity for growth of the inner harbour is also likely to be limited by the ability of the

road and rail transport systems that bring freight into and move freight out of the harbour.

In considering the future of the inner harbour (and the Perth Freight Link) it is important

to understand what that transport capacity limit is and when it will be reached. Whenever

that point is reached (and realistically, before that point is reached) there must be an

alternative freight option in place and operational, otherwise the economy of Perth will be

severely impacted.


Page 8

Known options currently available to the government for that alternative freight option are

any or all of the following:

Replace the inner harbour with the outer harbour in Cockburn Sound;

Develop the outer harbour to take overflow from the inner harbour;

Expansion of an existing harbour in a regional area such as Bunbury or Geraldton,

including development of landside transport infrastructure to support that function;

Expansion of rail capacity to the inner harbour; and

Expansion of road capacity to the inner harbour.

Consideration of port access arrangements have been debated for many years with both

the State and federal governments now moving towards a primarily road-based solution

to the freight movement needs of the inner harbour. This proposed solution is known as

the “Perth Freight Link”: a copy of Main Roads WA’s May 2015 information sheet on the

Perth Freight Link can be found at Attachment 1.

The Perth Freight Link (PFL) is an infrastructure project that seeks to increase the road

capacity from the Perth Airport to the Fremantle Port by the creation of a freeway

standard road between those two points, and ultimately linking to a larger road network

of similar standard. The PFL, as currently articulated by the State government, has a

project budget of $1.575 billion, with $925m of this coming from the federal government

and $650m from the State (of which $59m is already committed to upgrades of High

Street, Fremantle).

Project development and contract procurement for the PFL commenced in early 2015

with road works planned to start in early 2016 for a June 2019 completion. The Main

Roads WA procurement process involves an Expression of Interest period which closed

mid-March 2015, followed by a Request for Proposals (RFP). Three proponents have

been invited to participate in the Request for Proposals phase of the Perth Freight Link

project: proposals are being sought for two sections as follows:

Section 1 – a 5.2km extension of Roe Highway (Stage 8) from Kwinana Freeway

to just west of Coolbellup Avenue; and

Section 2 – upgrades to Stock Road, Leach Highway, High Street and Stirling

Highway, spanning 8.2km.

The three proponents consist of consortia comprising the following teams:

BGC Contracting, Laing O’Rourke, Arup and Jacobs;

Clough, Brierty, WSP/Parsons Brinckerhoff and Hyder; and

Leighton Contractors, Georgiou, GHD, AECOM, BG&E and WA Limestone.

The consortia were chosen following the evaluation of Expressions of Interest

applications submitted in March 2015. The consortia will now participate in the RFP

stage of the procurement process and prepare detailed proposals for design and

construction.


Page 9

Proponents for Section 2 are being asked to conduct a feasibility study for an alternative

route during the RFP stage. The alternative route includes a section of tunnel and avoids

immediate upgrades to Stock Road and Leach Highway. It extends Roe Highway west of

Stock Road along the Roe Highway road reserve in Hamilton Hill. It then heads north as

a tunnel, starting just before Clontarf Hill and running underground to join Stirling

Highway near High Street. The feasibility of an alternative route for PFL Section 2 will be

considered against environmental, economic and social impact measures. A

recommendation on the preferred route will be made to the State Government by the end

of 2015 at which time any potential impacts on properties will become clearer. Alliance

contracts are expected to be awarded in September 2015 for Section 1 and in December

2015 for Section 2.

In developing the Perth Freight Link the Department of Transport has acknowledged and

addressed a number of the community’s concerns identified through consultation on the

previous High Street upgrade project. Nonetheless a number of issues still require

attention before a reasoned position can be taken on the Perth Freight Link proposals,

including:

drawing out the impacts of the Perth Freight Link on local communities;

drawing out the impacts of the Perth Freight Link on the urban environment;

drawing out the impacts of the Perth Freight Link on environmental assets;

drawing out the impacts of the Perth Freight Link on rail freight;

understanding what impact the Perth Freight Link would have on CBD

regeneration;

understanding the capacity and future demand requirements for port freight;

understanding the likely future capacity of the port to handle containers;

understanding how the proposed sale of the port may impact on freight needs;

understanding the role of the proposed outer harbour in Perth’s freight system;

identifying how the Swan River is to be crossed;

identifying the impacts on North Fremantle of any proposed crossing; and

identifying and considering possible alternative freight options, including rail.

Council has recently adopted an Integrated Transport Strategy; the relevant section (pg.

37) on freight transport states:

In summary, the City supports retention and expansion of the port and associated

improvements to freight links subject to:

avoiding damage to the Beeliar Wetlands;

priority for initiatives and infrastructure which increase freight to rail in daylight

hours;

minimizing effect of infrastructure on private property and community amenity

(e.g. Leach Highway limit to 4 lanes, maintain mature trees);

resolving bottlenecks closer to the port (e.g. Tydeman Road, Curtin Avenue);

and

funds being allowed for reconstruction/replacement of community amenity

and facilities (e.g. pedestrian overpass, golf course).


Page 10

The City believes that more sensible evidence based upgrades would suffice and the

saved/remaining funds could be spent on other long term solutions which achieve

more freight to rail, reduce dependence on fossil fuels, and improved amenity and

safety for residents and road users.

The City proposes work be done to explore alternative solutions and provide

evidence to support the City’s proposal for a reduced impact solution.

COMMENT

As part of implementing the Integrated Transport Strategy the City, through a Request for Quote process, appointed the Curtin University Sustainability Policy (CUSP) Institute to explore alternative solutions and provide evidence to support the City’s proposal for a reduced impact solution for the inner harbour’s freight needs. Over the course of May and early June 2015 CUSP undertook their investigations and has now produced their report, a copy of which is attached to this item. The scope of this report is illustrated by the Contents page:


Page 11

The report contains a considerable amount of inter-related information and is best summarised through inclusion of its Abstract:


Page 12

Expansion of this can be found at Attachment 3 which is the Executive Summary. A useful “Options Matrix” can be found at page 56 of the report.


Page 13


Financial

None Legal

None Operational

None Organisational

None

CONCLUSION

The Perth Freight Link: Making the right investment in Perth’s freight task is a report to Council by Curtin University Sustainability Policy (CUSP) Institute. It is intended to provide Council with some of the facts, figures and concepts for the inner harbour’s freight task and in turn to allow Council to determine what view it wishes to take in relation to the proposed Perth Freight Link.


The Integrated Transport Strategy called for investigations and evidence in relation to the proposed Perth Freight Link.


Nil


Simple majority required.


That Council receive and note the Perth Freight Link: Making the right investment in Perth’s freight task report, dated 8 June 2015 from the Curtin University Sustainability Policy Institute.


Page 14

NOTICE OF MOTION FROM SPECIAL PROJECTS COMMITTEE 13 MAY 2015 (COUNCIL DECISION)

SPC1505-1 NOTICE OF MOTION – CR JON STRACHAN – FREMANTLE

COUNCIL’S POSITION ON THE PROPOSED PERTH FREIGHT LINK DataWorks Reference: 216/012 Meeting Date: 13 May 2015 Author: Cr Jon Strachan Actioning Officer: Director Strategic Planning and Projects Decision Making Level: Council ELECTED MEMBER SUMMARY The Western Australian State Government has committed to building the Perth Freight Link (PFL). Council has developed positions relating to aspects of the PFL, but has not decided to fully support or reject the proposal. It is now timely for Fremantle Council to make that commitment. BACKGROUND Fremantle Council has been proactive on issues of roads and freight starting with a strong stand against the Fremantle Eastern Bypass (FEB), seeing its deletion as a road reserve in 2001. More recently Council resolved to not support the Roe Highway extension through Beeliar Wetlands, known as Roe 8. Prior to the announcement of the PFR the State Government proposed significantly increasing the capacity of High Street east of the Stirling Highway, Stirling Highway north of High Street and the intersection of the two roads. Council resolved to support this work, but only if it were limited to two lanes in each direction. In February 2015 Council adopted an Integrated Transport Plan (ITP), in which issues of Port related freight are discussed. The motion to adopt the ITP also included a point 3, which reads:

Officers undertake as a priority task for immediate action an evidence- based investigation into alternatives to the current Perth Freight Link proposals to address freight transport requirements associated with Fremantle Port, and report the findings to Council for further consideration.

Fremantle Council has a position of supporting a working port, and aspires to see a working port in long term planning for the future of Fremantle. However the predicted increase in container trade makes it essential an outer harbour is progressed as a matter of urgency. Fremantle Council, through the Integrated Transport Strategy, considers the southern extension of the heavy rail line reserve from Fremantle Station to the South Fremantle Power Station as ideal for Transit Infrastructure, and as such it should not be compromised by rail freight.


Page 15

COMMENT Fremantle Council is clearly concerned about aspects of the PFL but has not developed a definitive position strongly against (or for) this proposed project. It is now an appropriate time for Fremantle Council to make that decision and inform our community, the State Government, the South West Group and other key stakeholders of that decision. RATIONALE Unlike other urban centres in metropolitan Perth, Fremantle not only has to deal with freight needs associated with its city status, it also accommodates freight demands from Fremantle Ports; this eclipses all other freight challenges. Fremantle is home to Western Australia’s largest and busiest general cargo port. The Inner Harbour currently handles the vast majority of containerised freight imports and exports for the state. In addition the Inner Harbour also handles trade associated with:

Livestock

Bulk items such as scrap metal

General Cargo

RORO including cars, trucks and caravans

Cruise ships The port currently handles 700,000 TEU (twenty foot equivalent) containers annually (source: WA Minister for Transport), with strong growth in numbers predicted to grow to 1,400,000 TEU (source: South West Group) annually in the next decade. The State Government has committed to transporting up to 30% of containers by rail, yet does not have plans to upgrade rail infrastructure to meet that commitment. This aspiration is currently not realised with only 14% of containers transported by rail in 2013-14 financial year (source: WA Minister for Transport). The existing rail infrastructure cannot support the existing 30% target with current demand; it is unreasonable to contest it could support double that number of containers. It is essential that investment be made in rail infrastructure to transport containers. The proposed $1.575 billion PFL is a road based freight solution; however it is internationally acknowledged that more roads do not solve congestion; building freeways increases overall road use and contributes to worsening congestion (Leigh Glover, University of Melbourne). Furthermore, as a toll road, purportedly for trucks only, it can be expected to reach capacity with cars that do not pay the toll. Furthermore, by taking a longer route from Port to destinations than the existing truck route leads to a strong probability many truck drivers will choose to not switch to the PFL and continue to use Leach Highway. It is not clear how the planners of the PFL intend to deal with the North Fremantle section. There is no logical way to get trucks from the PFL to Fremantle Ports without maintaining the North Fremantle bottleneck, or alternatively extending the PFL through North Fremantle with potential devastating consequences. Whilst a container terminal is mooted for the Outer Harbour, progress is limited or non-existent; even with such a facility predictions still have TEU numbers through the Inner Harbour at 1,000,000 annually (source: South West Group).


Page 16

There are two options open to the state, continue to try and build congestion out of the road network, or embark on a strategic piece of rail network that will serve the state well into the future. We cannot solve our problems with the same thinking we used when we created them (Einstein). The PFL is an attempt to do just that by attempting to solve road congestion by building another road, and as such is doomed to failure. A long-term solution to container freight transport issues based on rail as the key component would result in:

A more cost effective long term solution for freight transport

Saving the high values conservation area, Beeliar Wetlands, from decimation through road building

Minimise localised freight impacts, especially at High Street and North Fremantle

Reduction of carbon intensive greenhouse gas emissions

Reduction in community health issues related to road trauma and exhaust emissions

Better utilisation of existing road infrastructure CONCLUSION The PFL is not in the best interests of Fremantle, its community or the population at large. It is doubtful it will address the serious freight issues associated with Fremantle Ports for anything other than a very short period. If built, it will destroy the significant Beeliar Wetlands that are crucial to Perth’s biodiversity, and will be in conflict with a stated position of this Council. The very significant budget associated with the PFL would better serve Western Australia through getting containers off trucks and onto freight rail. For these reasons this Council does not support the Perth Freight Link as currently proposed by Government. STRATEGIC AND POLICY IMPLICATIONS This Notice of Motion is consistent with existing positions held by this council relating to:

Fremantle Eastern Bypass

Roe 8

High Street upgrade The motion is also consistent with the Strategic Plan 2010 to 2015 Transport section that states:

(Fremantle will) Lead in the provision of environmentally and economically sustainable transport solutions.

COMMUNITY ENGAGEMENT The Local Government Act does not require this item to go to formal community engagement. However its genesis was as a result of community concerns about the PFL.


Page 17

VOTING AND OTHER SPECIAL REQUIREMENTS Absolute majority required. NOTICE OF MOTION MOVED: Cr R Pemberton

1. This Council does not support a road based response to significantly increased container trade at Fremantle Ports, and as such does not support construction of the proposed Perth Freight Link.

2. This Council believes the significant State Budget allocation to the PFL should be directed towards a rail based solution for container distribution related to Fremantle Ports.

3. This position is conveyed to the State Government, South West Group and other key stakeholders.

4. Council considers a budget amount of $100,000 to assist Officers develop alternative options for Port Related Freight as per point 3 of Council Item SPC 1502-2.

Cr R Pemberton MOVED to defer the item to the next appropriate Special Projects Committee meeting in order to receive the results of the study commissioned to investigate the impacts of, and alternatives to, the Perth Freight Link. CARRIED: 9/2

For Against

Mayor, Brad Pettitt Cr Robert Fittock Cr Andrew Sullivan Cr Rachel Pemberton Cr Simon Naber Cr David Hume Cr Dave Coggin Cr Ingrid Waltham Cr Bill Massie

Cr Jon Strachan Cr Sam Wainwright

At the Special Projects Committee meeting held on 10 June 2015, the Committee voted to support that the Notice of Motion, Fremantle Council's Position on the Proposed Perth Freight Link, be considered by the Strategic and General Services Committee meeting to be held on 17 June 2015.


Page 18

REPORTS BY OFFICERS (COUNCIL DECISION)

SGS1506-4 PROPOSED SALE OF 73 HAMPTON ROAD

ECM Reference: 159/004, 161/006, 049/004 Property 73 Hampton Road,

Fremantle Disclosure of Interest: Nil Meeting Date: 17 June 2015 Previous Item: SGS 1312-11, SGS1404-5, SGS1406-20 Responsible Officer: Glen Dougall, Director Corporate Services Actioning Officer: Nadine Hume, Property Services Administrator Decision Making Authority: Council Agenda Attachments: Confidential Attachment

EXECUTIVE SUMMARY

This item is for Council to consider approval to sell 73 Hampton Road, Fremantle (Lot 5 on Plan 571, Volume 2019, Folio 876), which was purchased in July 2014 to allow for drainage works to be undertaken at the site.

BACKGROUND

At the Ordinary Council Meeting dated 28 May 2013 Council resolved to the purchase of 73 Hampton Road, Fremantle to allow for remedial drainage issues caused by a low point adjacent to the property. The purchase allowed for a permanent solution to the flooding issues that had been occurring at the property. The City was alerted to drainage issues by the previous owner in January 2011, referring to flooding damage from a major storm event in March 2010. Further occurrences were noted in 2012 and 2013, and City officers worked with the owner to try and deliver a solution to the problem. Extra maintenance for the gully was undertaken in 2013 and a berm was installed at the property line to avert storm water. These measures were only partly successful. To provide an alternative solution, the City engaged engineering drainage consultants to design drainage plans to handle storm water at this trapped low point to avoid excessive flooding into the property. The recommended design involved work in three stages. However, because of the presence of significant utility infrastructure in the verge and footpath areas, the main drainage improvements would have had to be installed within the road pavement. With the proposed work to have been completed under the road pavement, there would have been significant disruption to traffic on what is a major distributor road within Fremantle, and this would have also increased any proposed project cost. Combined with the high possibility of encountering rocky outcrops under the surface, the proposed works were considered to be too expensive and too risky and were not undertaken.


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A lower risk option that provided the area with an overflow soakage area in the rear court yard and reinstatement of the driveway was the most cost effective solution. In order to achieve this, it was necessary that the City purchase 73 Hampton Road. Following the purchase of the property in July 2014, remedial works were completed in late November 2014 with five soak wells being installed within the rear court yard. City Officers have monitored the works during recent rain periods and there has been no evidence of flooding to the yard or house with the drainage working to the required standard.

COMMENT

The City purchased 73 Hampton Road, Fremantle through the finance of a loan with the sale of the property to cover the expense of this debt. As City Officers are content that the works undertaken at the property are sufficient to ensure no further flooding, it is proposed that the City proceed with sale. To ensure that the City is not put in such a position again with these premises the City will undertake the lodgement of a Restrictive Covenant and Easement on the Certificate of Title at the time of settlement. A Restrictive Covenant will set out the limitations of development of the property, in this case restricting the court yard from being landscaped or developed in any way other than to maintain the current drainage and soak wells. Although the City has statutory powers to carry out works for drainage on private land under the Local Government Act the City is still required to obtain consent of the owner or occupier of the land before entering to undertake works. A drainage Easement in favour of the City being registered to the Certificate of Title would provide the City with the power to access the land in pursuant to section 195 of the Land Administration Act for access to maintain the drainage. The property is an older home and shows some signs of the water damage that has occurred, that includes areas where the floorboards have lifted or moved slightly due to moisture levels and visual signs to rising damp in the walls. Given the property was purchased by way of loan and the City has financed drainage works on the site it would be a condition of sale that the property is sold in an “as is” condition so that no further financial contribution to the property is expected by the City. Given that this is a residential property it is recommended that the process of sale be by public auction which is in line with the Local Government Act 1995 with the following being the proposed conditions of sale;

a) The property is sold in an “as is” condition. b) 10% deposit of purchase price will be paid within 30 days of successful bid, c) Settlement will occur within 60 days of deposit acceptance. d) A Restrictive Covenant will be lodged against the Certificate of Title at Settlement e) An Easement will be lodged against the Certificate of Title at Settlement.


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Financial

The Reserve Price is to be 5% less than the determined independent market valuation under the confidential attachment (Direct Comparison Approach). 5% being consideration of the current market conditions that sees prices fluctuating on a general downward cycle. The draft 2015/16 budget provides for the sale of this property and settlement of the loan used to finance the purchase. Municipal funds have been included in the budget to account for the difference in purchase of the property and the funds to be received from sale. Legal

Local Government act 1995 – Under section 3.58 of the Act disposal must be undertake by way of public auction or public tender. The Reserve price must also be determined by an independent market valuation. Land Transaction Act – The City will lodge a Restrictive Covenant and Easement to the Title of the property at Settlement Operational

An agent will be appointed based on the selection from no less than three quotations. Funds from the sale of the property will be used to payout the loan used to purchase the property. Organisational

Nil

CONCLUSION

The purpose of the purchase of 73 Hampton Road, Fremantle was to enable the drainage issues to be resolved and ensure that the flooding issue was not repeated. The Restrictive Covenant and Easement will be advertised as a condition of sale and lodged at settlement to ensure that the City will be able to re-enter the premises should any further drainage issues occur without the need to repurchase the premises. Should Council agree to sell the premises by Public Auction, the Reserve price will be determined by the independent market valuation under the confidential attachment with Delegated Authority approved to the Chief Executive Officer to accept the bid equal or higher than adopted Reserve price. If no bids are equal or higher than the Reserve price any offers received will be submitted to Council for consideration.


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Nil


Advertisement of this Land Disposal will be undertake in line with the Local Government Act 1995 by public notice giving the community fourteen days in which to lodge any objections to the transaction.




Council approves; 1. The sale of 73 Hampton Road, Fremantle (Lot 5 on Plan 571, Volume 2019,

Folio 876) by way of Public Auction under the following conditions;

a) The property is sold in an “as is” condition. b) 10% deposit of purchase price will be paid within 30 days of successful bid, c) Settlement will occur within 60 days of deposit acceptance. d) A Restrictive Covenant will be lodged against the Certificate of Title at

Settlement e) An Easement will be lodged against the Certificate of Title at Settlement.

2. Adoption of the Reserve sales price to be 5% less than the determined

independent market valuation under the confidential attachment (Direct Comparison Approach) to the June, 2015 Strategic and General Services agenda papers.

3. Delegated Authority to the Chief Executive Officer to accept an Offer equal or

higher to the adopted Reserve price.


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SGS1506-5 MANAGEMENT AGREEMENT TAPPER STREET MEWS - CO OPERATION HOUSING

ECM Reference: 023/006, 023/050, 038/036 Disclosure of Interest: Nil Meeting Date: 17 June 2015 Previous Item: TFC1209-1SGS1209-10;T1305-1;SGS1310-3;

SGS1401-3; SGS1403-1; SGS1404-7 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Nadine Hume, Property Services Administrator Decision Making Authority: Council Agenda Attachments: Draft Management Agreement – Tapper Street Mews

Confidential Attachment

EXECUTIVE SUMMARY

Tapper Street Mews, which consist of 11 x 1 bedroom units for affordable accommodation managed under the Retirement Village Act 1992, were offered for sale by expression of interest expiring 18 September 2013. No proposals received from the Expression of Interest were equal or above the adopted reserve price so none were accepted. The City then received one formal offer to purchase which was equal to the market sales valuation from Catina Pty Ltd. At the 23 April 2013 Ordinary Council Meeting the following was resolved;

That Council;

1. Reject the Offer to purchase received from Catina Pty Ltd on 25 October

2014. 2. Approve Chief Executive Officer Delegated Authority to enter into a Legal

Agreement with Co Operation Housing for the management of Tapper Street Mews for transition to a rental housing cooperative for a three (3) year period with first right of refusal to acquire ownership at the expiry of the three (3) years.

In conjunction with Co Operation Housing (CoH) City Officers have drafted a Management Authority for the management of the Tapper Street units for a three (3) year period with the inclusion of a first right of refusal to purchase the premises at the adopted market valuation that was considered for the Sale of the site. The purpose of this item is to seek Council approval for the first right of refusal for purchase of the site and the draft Management Authority.


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BACKGROUND

The City of Fremantle Trust Fund Committee resolved at its meeting on Wednesday 8 August 2012 that Tapper Street Mews, subject to legal advice, was to be sold to Access Housing. Ten (10) of the units at Tapper Street Mews have lease for life tenancies that operate under the Retirement Village Act 1992. The remaining unit has a residential lease. After investigating the financial viability of developing the site under these agreements, Access Housing informed the City that they had reconsidered their proposal for the property and no longer intended to proceed with the purchase. A recommendation was put to the Trust Fund Committee at its meeting on 8 May 2013 advising of Access Housings withdrawal and a resolution was made for the Trust Fund Committee to proceed to offer the Tapper Street Mews site for sale as a retirement village. The property was then put on the market for sale by expression of interest with the closing date being 18 September 2013. Four submissions were received all of which were under market valuation. None of these were accepted by Council. One perspective purchaser has since submitted a formal offer to the City equal to the market sales valuation which was put to Council for approval 29 January 2014. Council resolution was to defer the item until the next appropriate Strategic and General Services Committee meeting and for City officers to make contact with not for profit housing providers to gauge their interest in the property. A list of registered not for profit housing providers was obtained from the Department of Housing and those organisations with business models in which Tapper Street Mews would fit were invited to contact the City if they had interest in the property. Council resolved at its Ordinary Meeting on Wednesday 12 March 2014 to support City officers to continue to liaise with not for profit organisations until 4.00 pm on 4 April 2014. Of the 15 organisations contacted, one business proposal was received from Co Operation Housing (COH) on 4 April 2014 which was accepted by Council, giving Delegated Authority to the Chief Executive Officer to enter into a legal agreement with Co Operation Housing for the management of Tapper Street Mews for a three year period with a first right of refusal to acquire ownership at the end of that term. The City and COH has continued to liaise for an extended period of time since the Council’s resolution, prior to the drafting of an agreement to allow COH to fine-tune their concept for management of Tapper Street Mews and the plan to transfer the current management to a sustainable cooperative model.


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COMMENT

COH's business model focuses on rental housing cooperatives by supporting and developing self-managed residential communities. The business proposal submitted by COH for Tapper Street Mews proposes a use of these principals. The organisation has acknowledged that the property in its current state is not financially viable and proposes a transition to COH’s management principles over a period of three years. The aim is to make the property both financially stable and socially active. In addition to the management authority City Officers have negotiated a first right of refusal for CoH to purchase the property at any stage within the three year term of the agreement at the value of the independent market valuation which was adopted by Council as Reserve price on the property. The three year management of the site is proposed as follows; COH assumes responsibility for;

Rent collection of all new tenancies

Tenancy management

Tenancy consultation and management

New resident selection

Reactive and scheduled maintenance within the budget constraints

Capital Works and Renovations within budget constraints and subject to Council approval

Payment of property insurance premiums, council rates, electricity and water rates

Reporting and compliance under the Retirement Village Act 1992 (WA) and the Residential Tenancy Act 1987 (WA)

Staged transition to the rental cooperative housing model The City of Fremantle would;

Retain title to the land under the Retirement Village Act 1992 (WA)

Transfer the premium and rental payments to COH on a monthly basis to assume responsibility for reactive and scheduled maintenance.

Negotiate with COH on a mutually agreed arrangement for capital maintenance of the complex over a three year term, this will be based on the City asset grading process.

Responsibility for all structural maintenance.

Contribute payment to cover property insurance premiums, council rates and water rates under the annual budget.

Retain the Tapper Street Mews complex as affordable housing within the City of Fremantle.


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Tapper Street Mews has been running at a loss under the current model with the City being required to add funds to the budget to ensure necessary compliance. CoH is a not for profit organisation with no financial backing to be able to contribute to these costs other than the funds provided by the premiums and rent collected from the units. To ensure a transfer to the COH affordable housing model the City will be required to contribute to the annual budget over the term of the management authority until the budget is feasible. Constraints have been placed within the draft management authority to enable the City to terminate the agreement should the City feel that the management is not in the best practice of the budget constraints or being mismanaged in any way. Additionally the City will retain the management of the full premiums with only payment of monthly collected rent and premiums transferred to COH for the management of the village budget. COH have been fundamental in the adoption of the new 2015/16 budget which has now been submitted to the residents of Tapper Street units. This ensures that with the goal being COH to take on the management of the village by approximately 1 August 2015 the first parameters to make the property financial stable under their business model has occurred. Although the first right of refusal has been added to the draft Management Authority it has been discussed with the City’s Legal advisors and COH that a separate “First Right of Refusal” document be entered into given that COH has requested the sales figure, which is equal to the independent market valuation originally adopted by Council prior to advertisement for sale by public tender, be documented at the commencement of the Management Authority. Secondly, COH would also like to document that the City will be in support of the future removal of the memorial and caveats from the Certificate of Title to allow the property to be no longer be under the constraints of the Retirement Village Act and allow for a more comprehensive affordable housing model. Late last year the City received a letter of termination from the tenant of Unit 4, who has now vacated the premises due to illness. With this termination, two units at Tapper Street are vacant. The City has advised the current managing agents, Village Solutions, not to source new tenants due to the proposed transfer to COH.

City Officers and COH have viewed the vacant units which are in need of remedial works. It has been requested by COH that to enable them to offer the properties for Lease the City undertake some basic works on both units which will include painting, new carpet, window coverings and a minor revamp to the kitchens. The cost of these works has been estimated at $40,000 which has been included as a new initiative in the 2015/16 budget for approval.

Given that the City retains ownership of the property it is the responsibility as landlord to ensure that the units are tenantable to allow COH the opportunity to operate to financial capacity under their purposed business plan.

The draft Management Authority is in its last stages of being finalised with the document currently being reviewed by the COH Board. Although there may be still some minor amendments necessary the fundamentals of the document have been agreed to by COH and City Officers.


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Financial

The proposal received from Co Operation Housing is to assume responsibility for management over a three year period with the first right of refusal. The City would retain responsibility for certain capital works, maintenance to structural aspects of the buildings, any expenditure beyond the constraints of the adopted managing budget and other landlord costs. As the model proposed by Co Operation Housing differs from the current management of the retirement village the City will monitor, under the terms of the Management Authority, the expenditure of the budget. The agreement with COH under the “First Right of Refusal” also allows the City to gain the same financial return than if the Council had sold the property on the open market whilst still maintaining an affordable housing component. Legal

Any management agreement between the City and Co Operation Housing must comply with the Retirement Village Act 1992 and Residential Tenancy Act 1987 (WA) and the Residential Tenancy Act 1997 (WA) The managing body must also comply to the Fair Trading (Retirement Villages Interim Code) Regulations 2014. Operational

The City currently has an external company managing the retirement village on a monthly authority with maintenance and scheduled servicing controlled by the City’s Technical Services Directorate and the financial aspects including the tenancy premiums, collection of rent and budget controls maintained by the City’s Finance Department. Under the terms of the Management Authority with Co Operation Housing, The City’s Finance Department will transfer monthly collections of the rent and monthly premiums to COH and approve the submitted budgets from COH every financial year. The Technical Services Directorate will continue control any capital, structural or replacement costs for the property with all reactive, scheduled and emergency maintenance to be undertaken by COH. Organisational

Nil

CONCLUSION

The COH proposal requests a three year period to implement a self-managed residential community. The time frame will allow Co Operation Housing to attempt to make the property viable prior to the possibility of acquisition from the City under a first right of refusal.


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The agreement between the City and COH must be a management authority to comply with the Retirement Village Act 1992 (WA) and Residential Tenancy Act (WA). A second legal agreement by way of a “First Right of Refusal” with the basic terms of agreed purchase price and City’s approval for removal of any caveats and memorials from the site when no person under a retirement village agreement resides on the site will allow security for both the City and Cooperation Housing.


Nil


Tapper Street Mews tenants have been engaged in the negotiating of the transfer to the Cooperation Housing Model.




That Council Approve;

1. The draft Management Authority between the City of Fremantle and Co Operation Housing for Tapper Street Mews.

2. Delegated Authority to the Chief Executive Officer to finalise and approve any amendments to the Management Authority prior to it being executed by both the City of Fremantle and Co Operation Housing.

3. Delegated Authority to the Chief Executive Officer to enter into a Legal

Document with Co Operation Housing under the title of “First Right of Refusal” which will include;

a. Purchase price as determined by the original independent market

valuation; and b. An obligation by the City to approve and support the removal of any

Caveats from the Certificate of Title should Co Operation Housing wish to remove the Memorial from the property and no longer operate under the Retirement Village Act 1992.


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SGS1506-6 FORMER WARDERS' COTTAGES, 7 - 41 HENDERSON STREET, FREMANTLE

ECM Reference: 219/006 Disclosure of Interest: Nil Meeting Date: 17 June 2014 Previous Item: 21 December 2011- PSC1112-221; 26 June 2013 –

SGS1306-9; 29 January 2014 - SGS1401-4 Responsible Officer: Paul Trotman, Director Strategic Planning and Projects Actioning Officer: Paul Garbett, Manager Strategic Planning Decision Making Authority: Council Agenda Attachments: Part 8 of the conservation plan – Graded zones, sections

and elements of significance. Previous item SGS1401-4 (29 January 2014) Decision of item PSC1112-211 (21 December 2011)

Figure 1. Map showing location of the Warder’s cottages terraced housing


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EXECUTIVE SUMMARY

The purpose of this report is to update Council on the conservation works currently being undertaken on the Warders’ cottages and present for Council’s consideration a discussion on potential future uses and ownership/tenure arrangements for the cottages, having regard to the existing planning, building and heritage legislative context, and the City’s overall economic and social revitalisation objectives for the part of Fremantle city centre in which the cottages are located. Based on consideration of these factors the report recommends an approach the Council may wish to support and recommend to the State Heritage Office to influence decisions regarding future ownership, management and use of the cottages. Council conditionally supported the principle of strata titling of the Warders’ cottages to facilitate their sale into non-government ownership in a resolution passed in 2011. Since 2011 the Kings Square redevelopment project involving redevelopment of the City of Fremantle administration centre and the Queensgate and former Myer buildings has evolved, and planning approvals have been granted for a number of major developments including one on the Spicer site. Implementation of these projects will have a transformational effect on this part of the city centre and result in it becoming an area of much more intensive mixed use activity. Additionally the government has recently announced that the former Fremantle Police Station and old Court House complex is to be sold for adaptive reuse/redevelopment. These factors have significantly changed the context for decision-making regarding the future of the cottages. It is therefore considered timely for Council to reconsider its position on preferred future ownership, management and use of the cottages. Officers recommend that Council revokes its previous December 2011 resolution regarding strata titling of the cottages, and authorises the CEO to advise the State Heritage Office of Council’s current position on matters relating to future ownership, management and use of the Warder’s cottages.

BACKGROUND

The Warders’ Cottages (fmr) (‘Warders’ cottages’ or ‘the cottages’) consist of three limestone convict built terrace buildings (see figure 1 above). They were established in the early 1850s as residential terraces to accommodate the warders of Fremantle Prison. The Warders’ cottages are the first row of houses built by the Colonial Government in the State and define the western boundary of the Convict Establishment precinct, which includes the world heritage listed Fremantle Prison, the Barracks for the Royal Sappers and Miners (now part of the Fremantle Police Station), the Fairbairn Street ramp and the Comptroller Generals Residence (now part of Fremantle Hospital). The cottages are also the first limestone terraces built in the State and rare examples of simple Victorian Georgian convict built terraced accommodation, possibly only comparable to buildings on Norfolk Island. The three terraces comprise of:

First Terrace 19-29 Henderson Street (1851), currently has three cottages

Second Terrace 33-41 Henderson Street (c1853), currently has six cottages

Third Terrace 7-17 Henderson Street (1858), currently has six cottages


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Following the closure of the prison in 1991 the Warders’ Cottages were transferred to Homeswest (now Department of Housing) who leased the cottages for inner city public housing. The properties were vacated in 2011 and have since stood vacant. In December 2011 Council considered the strata titling of the cottages. In its resolution Council supported strata titles for the cottages on the condition that the Department of Housing (DoH) upgraded the buildings and undertook conservation works, including urgent works required as per the Warders’ cottages conservation plan (Kelsall Binet Architects July 2011). In 2013 DoH offered the cottages to the City of Fremantle for a fifty-year peppercorn lease in return for the City taking financial responsibility for their conservation, refurbishment and ongoing maintenance and upkeep. Council considered this in a report on the matter 26 June 2013 and resolved to accept the offer in principle subject to the state government covering all or part of the costs to complete stage 1 conservation works and the preparation of a business plan for the regeneration of the cottages. The business plan was to include identification of future uses for the place and any required adaptions that:

are consistent with the Heritage of Western Australia Act 1990;

generate sufficient income to repay the initial loan and fund future ongoing costs; and

can be accommodated in the buildings and meet the requirements of the Building Act 2011 and BCA.

On 29 January 2014 Council considered a further report on the matter following preliminary financial modelling of the expenditure and income associated with the City assuming control and responsibility for the cottages on a 50 year leasehold basis along the lines of the proposal considered by Council in June 2013. Council resolved to request the State Government to consider a revision of DoH’s original offer from a 50 year peppercorn lease to transferring the Warders’ Cottages’ freehold title to the City and/or making a substantial contribution to the initial conservation costs required to retain the heritage significance of the place. This resolution was influenced by the City’s preliminary financial modelling which indicated that an approach as outlined in the June 2013 resolution above would not be financially viable for buildings which would not ultimately be a City asset (i.e. the City would only have a leasehold interest in the property). The title to the properties was subsequently transferred to the State Heritage Office (SHO) on the 25 March 2015. The State Heritage Office is currently using a $2million revolving heritage fund to carry out maintenance works to the buildings. The City’s understanding of the revolving fund is that the money taken from the fund for maintenance and repair needs to be replenished within two years of the works. The SHO has not indicated, at this time, what the preferred option is to generate income from the cottages in order to replenish the revolving fund, however scenarios to generate income from the cottages are likely to include leasing agreements and the individual or grouped sale of the buildings to the private market or other public authorities.


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HERITAGE SIGNIFICANCE The Warders’ Cottages (fmr) are of the highest heritage significance at the local and State level and are also of world heritage significance by virtue of location and relationship to the Fremantle prison. The cottages are included on the Heritage Council of Western Australia’s Register of Heritage Places, the City of Fremantle’s Heritage List and are a management category Level 1A on the Municipal Heritage Inventory. Fremantle Prison has been inscribed on the World Heritage List as part of a series of Australian Convict Sites. The Fremantle Prison’s entry onto the National Heritage List includes the Warders’ Cottages as part of the convict establishment. In July 2011 the Warders’ cottages conservation plan (WCCP) was completed for the cottages. The conservation plan outlines the complete history of the cottages and includes statements and assessment on cultural heritage significance as well as a comprehensive conservation policy. The cottages provide a line of interaction between the significant convict establishment and central Fremantle. For much of its history the former convict establishment was distinct from other areas of Fremantle. More recent development has decreased this legibility however. The conservation plan advocates for the reinstatement of the former convict establishment’s legibility as part of an integrated planning process to interpret the Warders’ Cottages role in the convict establishment and complement the world heritage listed Fremantle Prison. Specifically, the Warders’ Cottage buildings have a high degree of integrity and authenticity in their own right. Changes in use over the years have remained compatible with the original residential purpose of the cottages’ construction. Changes to the structures were the result of a comprehensive and consistently implemented programme of work that caused little or no change to the original fabric and earlier periods of construction e.g. kitchen and bathroom additions to the rear and verandahs to the front. As a result the various stages or ‘time periods’ remain legible and much of the later work has had little impact on the earlier stages of development. This means the cottages include zones, sections, and elements that are of varying significance. The assessed gradings of significance of these constituent parts are identified in the WCCP. Information on the gradings of significance is provided in attachment 1 (Part 8 of the conservation plan – Graded zones, sections and elements of significance). Overall, the significance of the Warders’ Cottages is vulnerable to the effects of incompatible alteration or extension if not properly considered. Works to the cottages The works currently being undertaken to the Warders’ cottages are to the stonework on the elevations and front walls. The works are part of the priority conservation works identified in the Warders’ cottages’ conservation plan. The outbuildings to the rear are not included in the works. The works involve:

removing layers of render and paint to reveal the original surface;

removing cement washes in the stone so as to not damage the substrate stone; and


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replacing filler and mortar joints with a reconstituted lime-based stone mix and mortar.

Scaffold has been erected to facilitate these works and further inspect the buildings. This work has revealed evidence of earlier modifications including changes to both the Henderson Street and rear elevation window sills. They have also revealed damage caused by embedded ferrous metal fixings, several minor defects such as failed flashing fixings and cracked window putty and gutters, and downpipes corroding on the inside face. These aspects will require repair and replacing in the near future. The next stage of work involves upgrading the in-ground drainage required to increase the capacity of the stormwater disposal system and help alleviate one of the main causes of dampness in the walls of the buildings. This work is ready for tender and has been designed in a manner to allow the works to commence concurrent with the stonework project. The upgrade will include laying a stormwater pipe in the Henderson Street reserve. Structural investigations and inspections into the two-storey verandah on Block 3 and other external timber elements on all blocks have been undertaken and will assist in scoping future work packages, some of which may be undertaken to take advantage of existing scaffold access. As generally anticipated, the condition of the W3 verandah is poor and there is considerable work required. Subsequent stages of works are in the process of being scoped for budgeting.

COMMENT

There are a range of different and to some degree conflicting heritage, planning, building compliance and economic/social revitalisation considerations that are relevant to the cottages and their surroundings, and the interrelationship between these considerations complicates the context in which decisions regarding future ownership/tenure, management and use of the cottages have to be considered. Planning Context The cottages are located in the Central City zone under the Metropolitan Region Scheme (MRS) and the City Centre zone under the City’s Local Planning Scheme No. 4 (LPS4). As the Warders’ cottages are on land that is zoned under the City’s LPS4 the City is the decision making authority for any application for planning approval. Any application would also be referred to the State Heritage Office (SHO) for comment and advice as required for any State Registered place under section 78 of under the Heritage of Western Australia Act 1990. Currently the SHO has ownership of the properties and comment can be provided concurrent with the application, however if ownership of the properties transferred to another public or private entity the SHO would comment on any application submitted by a new owner. The City has to take into account comments made by the State Heritage Office in assessment and determination of an application as well as heritage assessments for the place (based on the Burra Charter and levels of significance) and the conservation plan.


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The current use of the Warders’ cottages in statutory planning terms is considered to be Grouped Dwellings as defined in LPS4 (Schedule 1) and the Residential Design Codes. Use for most (but not all) other land uses under LPS4 would require planning approval for a change of use, and irrespective of their use any physical works (internal and/or external) to the cottages would require planning approval under LPS4 due to their State Registered heritage listing. The need for planning approval for works would include internal works required to achieve compliance with the Building Code of Australia (BCA) in the event of a different use being proposed for some or all of the cottages. Under LPS4 all uses in the commercial, entertainment, and services and public use classes are capable of approval in the City Centre zone, and some are permitted without planning approval being required. Most Industrial use classes and the Small Secondary Dwelling use under the Residential use class cannot be granted approval in the City Centre zone. These scheme provisions apply irrespective of ownership of the properties now or in the future. It has been stressed in previous reports that the most important aspect of conserving the cottages is to find a compatible use that respects the cultural significance of the place and requires no, or minimal, alteration to the significant fabric of the building(s). As stated above some uses are permitted without planning approval; however it is almost inconceivable that any renewed use would not involve at least some internal works that would require planning approval. Examples of uses that could be undertaken in the cottages, and the planning and BCA approval requirements associated with those uses, are provided in Table 1 below. Table 1. Potential uses for the Warder’s cottages Use Planning comment BCA comment

Residential Use Class

Grouped Dwelling (long term residential occupancy by owner or tenant)

Considered to be the existing lawful planning use – no change of use required.

Consistent with current use – No BCA requirements necessary. Potential upgrades to Australian Standard AS 1428 Design for access and mobility may be required.

Other uses

Short Stay Dwelling (Grouped dwelling used predominantly for providing short term accommodation for tourists)

Discretionary (‘A’) use under LPS4

Upgrade to current BCA standards may be required.

Tourist Accommodation Discretionary (‘D’) use under LPS4

Upgrade to current BCA standards likely to be required.

Interpretive display/ community use

Community purpose or civic use – both discretionary (‘A’) uses under LPS4 Could include pop-up interpretation/display uses associated with festivals/other events - may work combined with short-stay accommodation use as an accommodation cottage could

Upgrade to current BCA standards likely to be required.


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be pre-booked for annual events

Small bar and/or restaurant

Approval of change of use not required under LPS4, but approval required for adaptation works associated with use. Restrictions presented by building size and configuration may inhibit commercial viability of use and/or require significant adaptations

Upgrade to current BCA standards required.

Office See comment for Small bar use above


Shop See comment for Small bar use above


Consulting rooms Approval of change of use not required under LPS4, but approval required for adaptation works associated with use.


In addition to land use and development, the WA planning system regulates the subdivision of land including certain classes of strata subdivision. The City is not the determining authority for applications for survey strata subdivision; it is a referral agency and provides comments to the Western Australian Planning Commission (WAPC) as the determining authority. Each of the three terraces of cottages currently stands on a single freehold title (lot). In the event of a future application for strata subdivision of some or all of the existing lots on which the cottages stand, the City in providing comments and recommendation to the WAPC on an application could request the imposition of conditions in the event of approval being granted. Recommended conditions could, for example, include a requirement for the placement of a notification on title under section 70A of the Transfer of Land Act 1893. This might be done to inform owners and prospective purchasers of obligations and requirements due to the State Registered heritage status of the properties, and/or to advise that non-residential activities characteristic of a city centre environment exist or can be approved in the vicinity of the cottages and as a result the properties are likely to be affected by activities and noise not normally associated with residential development. Building Act of Australia considerations A key issue in considering the future use(s) of the Warders’ cottages will be the need for compliance with the Building Code of Australia and other applicable Australian standards. Under the new Building Act 2011 new works and compliance with the current BCA is only required if the original use of the building(s) changes. The cottages were originally built and used for residential accommodation. General upgrades would be needed to modernise the dwellings’ facilities, but more major and potentially detrimental (in heritage terms) works to bring the buildings up to current BCA compliance standard would not be required if the buildings stayed in their current use as grouped dwellings.


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However if the buildings were to be used for social housing purposes, they would probably be required to comply with Australian Standard AS 1428 Design for access and mobility. Ownership (including strata titling) can change without a requirement for compliance with the current BCA provisions providing the buildings are in good repair. However, if the buildings change use (i.e. from grouped dwelling to other uses) certain aspects of the cottages, such as the staircases, would require updating to meet current standards. The buildings are significant for their high level of intactness, which needs to be retained to maintain their heritage significance. Achieving compliance in a manner which is practical and also sympathetic to the heritage values of the existing building fabric (including its level of intactness) would be extremely challenging. The Building Act 2011 does not provide an exemption from current BCA requirements for heritage listed buildings. Preliminary advice provided by professional building surveyors in 2013 to the National Trust WA in respect of a different heritage listed property suggests that any use of the Warders’ cottages other than long term residential will trigger the need for full BCA compliance. The only saving grace under the BCA for heritage-listed buildings is a clause that allows for the Building Commissioner to use powers under the act to vary or waive standards as long as there is no increased risk to health or safety. Finding alternative solutions that meet the performance requirements of the BCA will require lateral thinking and expert advice. Given the potential detrimental effect that this new legislation could have on heritage listed buildings in Western Australia, the State Heritage Office has, in the past, expressed an interest in using the Warders’ Cottages as a case study to work through the building permit application process. Future use(s) of the warders’ cottages In December 2011 Council resolved to advise the Department of Housing as then-owner of the cottages that the City would be prepared to support a strata building approval certificate, conditional upon certain actions being undertaken prior to any sale of new strata titles to the cottages, with a view to private residential occupation. These actions included completion of urgent conservation works in accordance with the previously prepared conservation plan, and the imposition of notices on titles relating to requirements for any future works by new owners to also be in accordance with the conservation plan, and drawing attention to potential noise exposure due to adjacent land uses and activities such as Fremantle Markets. Council’s resolution in 2011 was passed at a time when the then-owners of the cottages had no firm plans, or available government funding, to enable them to implement any conservation works and strata titling the properties to enable their sale to facilitate further investment by new owners appeared the only option to arrest further deterioration of the cottages’ condition. Four years on the cottages are, albeit only recently, undergoing preliminary conservation work, their ownership has transferred to the SHO and City-led plans to revitalise the wider surrounding area have become clearer. Given this significant change in context, officers believe it is appropriate for the Council to consider whether it wishes to review its previous position in respect of individual and private ownership of the cottages for ongoing residential use.


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The cottages are located in what is likely to become an increasingly well-activated commercial and entertainment precinct. The redevelopment of King’s Square is a key transformational move intended to drive an increase in the intensity and diversity of activity in the area into the future. The former Myer building, Queensgate and the Spicers site are large redevelopment sites; these sites alone have planning approval for approximately 29,500sqm of office space and 10,550sqm of retail space. Additional to this the former Fremantle Police Station and old courthouse complex adjoining the W2 cottages is proposed to be sold by the Government for re-use and development and could further activate the area. It is likely that as the area develops, market interest in commercial use of some or all of the cottages will increase. Due to the special nature of the cottages, it would be realistic to expect firm interest from retail and hospitality operators that see the buildings’ heritage character as a significant asset that can be leveraged and used to create an establishment that is available to the general public to enjoy. The City’s Economic Development Manager considers that high-quality operators would be interested in operating a hospitality establishment from one or more of the cottages, especially in block W3 due to its proximity to Fremantle Markets and the South Terrace entertainment ‘strip’. Perth’s hospitality market has matured significantly in the last ten years and hospitality projects of this nature are starting to be fairly common. Examples of comparable projects include: Bread in Common, Whisper Wine Bar, the National Hotel, and the Attic in Fremantle; and Stables Bar, Helvetica Bar, Andaluz Restaurant, Laneway Lounge, and the various ground level tenancies within Brookfield Plaza in Perth. Specific to the Warders’ cottages, an established hotel operator interested in using the cottages for short stay self-contained accommodation managed under shared management arrangements with a conventional hotel has already informally approached the City with a preliminary plan. Appropriate retail, hospitality, and/or short stay tourist-orientated uses would achieve a level of activation and interaction with Henderson St Mall and neighbouring land uses significantly greater than reuse of the cottages as dwellings for long stay residential occupancy. From an economic development perspective, individual private residential use of the cottages would be a major lost opportunity to build on Fremantle’s appeal to visitors, particularly in the case of block W3 which is located next to the Fremantle Markets. Considering the extensive development due to occur in the immediate surrounds of the cottages, including all the components of Kings Square and the State Government’s imminent sale of the old Police Station complex, Henderson Street Mall will be further activated and there will be an increased demand for entertainment and hospitality uses in the area. Short-term accommodation would help to activate and complement the redevelopment of the area as it is used for holiday and business trips and brings in tourist dollars. Additionally users of this accommodation type generally spend more time and money in the locality and generally do not mind if the area is active at all hours, including after normal working hours. On the other hand, privately owned dwelling occupiers tend to prefer quieter surroundings and are less likely to activate the area as much as other users. Reoccupation of the cottages as conventional dwellings by owner/occupiers or long-term tenants could increase the prospect of a conflict of uses. The Henderson St Mall taxi rank, for example, has been identified as a conflicting use to private residential occupation of the cottages as well as the markets’ early morning operation hours, the


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Sail and Anchor live music and late operation hours and other non-residential uses in the vicinity. From a planning perspective, whether the cottages in the future are individually owned or held in a single ownership, any proposed works would require the same level of heritage assessment and planning approval. Officers acknowledge however that individual ownership is likely to lead to greater pressure for multiple and less consistent proposals for further alterations, to suit owners’ individual needs, than if they were owned by one entity. For this reason, minimising the number of separate owners of the cottage blocks in the future is regarded as preferable in conservation terms as it offers the best prospect of a unified approach to ongoing conservation and maintenance. This is particularly important given the high level of intactness the cottages currently have. The Warders’ cottages conservation plan supports the cottages being retained in single ownership residential use and recommends the following:

Policy 10 The preferred use for these buildings is that they continue as residential accommodation. Ideally all terraces should be kept under single ownership or an alternative form of control (covenant) that ensures that the culturally significant unity of these buildings is retained.

POTENTIAL FURTHER ACTION BY THE CITY TO INFLUENCE FUTURE OWNERSHIP AND USE OF THE WARDERS’ COTTAGES As stated earlier in this report, at this point in time the SHO has not indicated whether it has yet decided upon a clear course of action in relation to the cottages beyond completion of the current scope of urgent conservation works. However the current works are being funded from the State’s Heritage Works revolving fund, and the announcement at the launch of the fund in 2014 stated: “Proceeds from the sale or lease of reactivated properties will be returned to the fund and reinvested in new projects.” Therefore it would seem reasonable to assume that the SHO will need to sell or lease some if not all of the properties in the relatively near future in order to generate income to replenish the revolving fund. Before the SHO makes firm decisions on how it intends to proceed, it would be timely for the City to consider how it can influence and hopefully assist the SHO towards an approach that reconciles preferred heritage, property management and land use outcomes with financial imperatives. Further action by the City could take the form of continued dialogue and partnership working with the SHO, exercise of its powers as a planning authority, financial intervention – or a combination of all three. Reviewing the broad range of factors outlined earlier in this report has led officers to conclude that two key considerations should guide any further action by the City – firstly, future ownership arrangements should seek to minimise the number of separate owners to foster a consistent approach to property management and ongoing conservation of the integrity and other heritage values of the cottages; and secondly, a ‘one size fits all’ approach to future use of the three terraces of cottages will not deliver optimum outcomes particularly in terms of relationship to neighbouring land uses.


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If Council agrees with officers’ views on these two points, it would seem appropriate as a first step for Council to formally move away from its previous position of conditional support for a strata subdivision of the cottage terraces on the existing lots. A resolution to revoke the previous 21 December 2011 resolution of Council would achieve this, and would give fresh direction to officers in further discussions with the SHO and in dealing with any future strata subdivision application(s) referred to the City. Recommended action – that Council revokes its previous resolution PSC1112-221 dated 21 December 2011 advising that it would be prepared to issue a strata building approval certificate, subject to certain works and other actions being undertaken prior to issue of strata titles and sale of the Warders’ cottages. If Council agrees with this recommendation, it logically follows that Council is indicating a preference for each of the three blocks of cottages to be held in single ownership through the existing freehold titles (although not necessarily all in one ownership). Council could adopt this as a preferred position without prejudice to future use(s) of each block, or in conjunction with a position in respect of preferred use(s). In either case it would be beneficial to communicate this position to the SHO at the earliest opportunity. Recommended action – that Council authorises the CEO to inform the State Heritage Office that the City is no longer supportive of a strata title subdivision of the Warders’ cottages, and instead the City strongly supports the three blocks of cottages each remaining in a single ownership as this is considered most likely to ensure a consistent approach to property management and ongoing conservation of the integrity and other heritage values of the cottages. With regard to further action to try to secure the most beneficial future ownership and land use arrangements for the cottages, an individual assessment of each of the three terraces is provided below. This assessment draws upon information previously presented to Council in January 2014 in item SGS1401-4 (see Attachment 2). This preliminary investigation considered the financial viability and heritage compatibility of various reuse options for the cottages, and concluded that the use which came closest to being financially viable, and at the same time could sustain the heritage values of the cottages, was short stay tourist-orientated accommodation. Nevertheless at that time the financial viability of such a use could not be confirmed, because the modelling was based on the offer by Department of Housing of a 50 year lease only, rather than sale of the cottages as an asset to a new owner, and only very preliminary assumptions could be made regarding costs of conservation and adaptation works in the absence of detailed designs of necessary alterations. Additionally the estimated capital expenditure costs included the cost of some of the external conservation works that are now being carried out by SHO with funding from the revolving fund. The removal of these costs might reasonably be expected to have some positive effect on any further financial appraisal carried out now.


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First Terrace (Block W1) 19-29 Henderson Street (1851)

The W1 block fronts Henderson St Mall and the lot has a side (north) boundary to William Street. It directly adjoins Fremantle Markets to the rear and a laneway from Henderson St Mall into the Markets on its southern side boundary. It is therefore exposed to significant levels of noise and activity associated with the Markets on days they are in operation. It has the largest rear garden area of all three blocks; this area is well-treed and offers a degree of buffering from Market activity which could be useful if the properties were reoccupied for short stay accommodation or as long term dwellings, alternatively the area offers potential to be opened up to limited public access associated with other uses of the cottages (most likely hospitality uses) which, if handled in a sensitively designed way and appropriately managed, could allow wider public appreciation of the qualities of this space.

Second Terrace (Block W2) 33-41 Henderson Street (c1853) The W2 block directly adjoins the former Police Station and Courthouse complex. These cottages are the least intact in terms of their original heritage fabric, and already have off-street car parking in the former rear garden area accessed via William Street. They are the most remote from noise and activity generated by entertainment and hospitality uses in Fremantle Markets, Henderson St Mall and South Terrace, which might be seen as conducive to residential reuse; however given the State Government’s intention to sell the former Police Station complex future adjoining uses are uncertain at this time. This factor, added to the close physical relationship between the two sites, suggests that the future reuse of both sites should be considered as a single integrated package. The degree of previous alterations to the W2 block could provide greater scope for consideration of alternative uses in conjunction with reuse of the Police Station complex without significant impact on the heritage qualities of this block. A further consideration is that this section of Henderson Street currently has no uses which generate significant amounts of pedestrian activity, and therefore consideration of a range of uses across the W2 block and Police Station complex as an integrated package could deliver wider place activation benefits. Third Terrace (Block W3) 7-17 Henderson Street (1858)

The W3 block directly adjoins Fremantle Markets and fronts Henderson St Mall close to other highly activated land uses such as the Sail and Anchor pub and the Old Shanghai food court. Additionally the weekend night time taxi rank operating in Henderson St Mall is situated directly in front of this block. For these reasons block W3 is exposed to even higher levels of noise and activity than W1 and therefore officers consider any reuse for accommodation purposes should be limited to short stay tourist-orientated use only, as the amenity expectations of long term dwelling occupiers would be extremely difficult to reconcile with the prevailing character of this area. Short stay accommodation and/or non-residential uses (at least at ground level) that could interact with the street and complement the established character of the area would be preferable so long as any physical alterations needed to make such uses viable can be undertaken without unacceptable impact on the heritage values of the existing building fabric.


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Recommended approach to try to secure preferred ownership and use outcomes for Blocks W1, W2 & W3 Having regard to the above assessment, officers recommend that Council adopts the following position in relation to preferred uses of each of the three blocks, and communicates this position to the SHO: Block W1 – due to the proximity of the cottages and their rear gardens to Fremantle Markets, future use should be for purposes compatible with market activities; these include use as short stay accommodation intended primarily for occupation by tourist visitors and/or uses at ground level, possibly utilising the rear gardens area, that could interact with the street and/or laneway access to the markets. The City is not supportive of reoccupation of the cottages in Block W1 as dwellings intended for long term occupancy as a primary residence, as the amenity expectations of long term dwelling occupiers would be difficult to reconcile with the prevailing character of this area. Block W2 – future use should be considered as part of an integrated approach to adaptive re-use of the former Police Station/old courthouse complex and the W2 cottages as a whole; this could potentially allow for a diverse range of uses compatible with the cultural heritage significance of both places, recognising the impacts of previous modifications to the original heritage fabric of both building groups. The City would be most supportive of uses which help activate the eastern section of Henderson Street; however an element of residential use of some form (short and/or long term occupancy) may be supported if it forms part of a broader mix of compatible uses which reactivate the cottages and Police Station complex as a whole. Block W3 – due to the proximity of the cottages to Fremantle Markets and other hospitality and entertainment land uses in Henderson St Mall and South Terrace Block W3 is exposed to high levels of noise and activity; therefore future use should be for purposes compatible with these predominant existing uses. Short stay tourist-orientated accommodation and/or non-residential uses (at least at ground level) that could interact with the street and complement the established character of the area would be preferable so long as any physical alterations needed to make such uses viable can be undertaken without unacceptable impact on the heritage values of the existing building fabric. The City is not supportive of reoccupation of the cottages in Block W3 as dwellings intended for long term occupancy as a primary residence, as the amenity expectations of long term dwelling occupiers would be extremely difficult to reconcile with the prevailing character of this area. Apart from continued dialogue with the SHO to try to align decisions regarding future ownership and use of the cottages with Council’s position on these matters, options available to the Council to further influence outcomes revolve around use of its planning powers and/or direct financial intervention through acquisition of some or all of the cottages.


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As stated in the ‘Planning Context’ section of this report, the cottages are on land zoned under the City’s Local Planning Scheme (LPS4). In addition to its powers as a decision-making and referral body for planning applications and subdivision (including strata titling) applications respectively that might be submitted in relation to the cottages, the City could contemplate amending current provisions in LPS4 to further direct future use of the cottages, particularly if the Council adopts a position of not supporting their reuse as grouped dwellings for long term private occupancy. As already stated in this report, the current City Centre zoning of the cottages combined with the zoning table and clause 4.3 in LPS4 allows City Centre zoned land to be used for a broad range of uses, including all types of residential use. This is consistent with the Council’s strategic aim of promoting a diverse mixture of uses and activity in the city centre. It would therefore be counter-productive to contemplate restricting or prohibiting residential land uses through zoning provisions, however there is capacity in LPS4 (Schedule 3 – Restricted Uses) to designate specific land uses on specified land as being not permitted, or only permitted subject to special conditions, notwithstanding their general permissibility under the zoning table. This approach could be considered as a mechanism to restrict certain forms of longer term residential occupancy, as defined in LPS4. However, officers would caution against pursuing this option for the following reasons:

The scheme amendment process is lengthy – it would take a minimum of 12 months to complete to the point of an amendment being gazetted, and in the meantime current scheme provisions would apply to any sale or planning proposal in respect of the cottages;

The SHO would be a key referral agency on the scheme amendment and given their interest in the properties might reasonably be expected to object to such an amendment;

The final decision on approval of a scheme amendment rests with the WAPC and ultimately the Minister for Planning, not the Council. An amendment as outlined above would be highly unusual (seeking to restrict residential occupancy of buildings built and used for their entire existence except for the last 4 years as dwellings) – this, in the view of officers, creates a significant level of risk of the amendment not being approved.

A final option Council may wish to consider is the possibility of the City acquiring the freehold title to one (or more) of the blocks of cottages. As a landowner the City would obviously have direct control over the use, management and conservation of the properties in question, including options such as leasing the cottages to one or more other parties to be operated for purposes consistent with the City’s requirements. This could be of particular value in trying to facilitate adaptive reuse of blocks W1 and/or W3 for the purposes recommended above, although acquisition of any property inherently involves some level of risk. This is a position the Council adopted, with qualifications, in its resolution of 29 January 2014 (see Attachment 2) at a time when the properties were owned by the Department of Housing not the SHO. However, as outlined in the previous item, significant further financial and technical investigations would need to be carried out to establish whether the constraints upon financial viability, and the impacts upon the heritage values of the cottages, as previously identified could be resolved.


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Previous preliminary investigations suggested the expenditure of further resources necessary to prepare a full business case to evaluate this option was not warranted; however it is open to Council to instruct officers to proceed with this work if it considers this option merits more detailed examination. If Council does wish to proceed with this work, it would be appropriate to move an amendment to the officer’s recommendation as set out at the end of this report to add the following wording as a new part 3 to the recommendation:

3. Authorise officers to prepare a business case relating to the potential acquisition by the City of the freehold title to the properties in Blocks W1 and/or W3 for the purpose of securing their conservation and adaptive reuse for uses consistent with the City’s position as set out in recommendation 2 above, noting that preparation of such a business case would require significant further financial and technical investigations to be carried out at the City’s expense.


Financial

If Council resolves to undertake a business planning exercise in relation to possible acquisition of any of the Warders’ cottages expert external consultancy and/or legal advice is likely to be required. It is anticipated that the cost of such advice could be met from approved operating budgets for consultancy and legal services. The purpose of preparing a business plan would be to enable potential financial implications and risks associated with acquisition of the properties to be properly evaluated.

Legal

Section 5.25 (e) of the Local Government Act 1995 states that regulations may prescribe the manner in which a decision made at a council or committee meeting may be changed or revoked. Regulation 10 of the Local Government (Administration) Regulations 1996 requires that: (1) If a decision has been made at a council or committee meeting then any motion to

revoke or change the decision must be supported – (b) by at least one third of the number of offices (whether vacant or not) of members

of council or committee inclusive of the mover. (2) If a decision has been made at a council or committee meeting then any decision to

revoke or change the first-mentioned decision must be made – (a) in the case where the decision to be revoked or changed was required to be

made by an absolute or special majority, by that kind of majority, or (b) in any other case, by an absolute majority.

(3) This regulation does not apply to a change of decision unless the effect of the

change would be that the decision would be revoked or become substantially different.


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The officer's recommendation - part 1 must be moved, and seconded by at least four other members of council, and decided in favour of by absolute majority before the officer's recommendation part 2 can be moved. Operational

Further work by officers as a consequence of consideration of this report by Council is anticipated to form part of normal professional and administrative functions. Organisational

None

CONCLUSION

Council conditionally supported the principle of strata titling of the Warders’ cottages to facilitate their sale in December 2011. Since then the Kings Square redevelopment project involving redevelopment of the City of Fremantle administration centre and the Queensgate and former Myer buildings has evolved, and planning approvals have been granted for a number of major developments including one on the Spicer site. Implementation of these projects will have a transformational effect on this part of the city centre and result in it becoming an area of much more intensive mixed use activity. The ownership of the cottages has transferred to the SHO who have commenced urgent conservation works using the Heritage Works revolving fund launched by the state government in 2014, and the government has recently announced that the former Fremantle Police Station and old Court House complex is to be sold for reuse/redevelopment. These factors have significantly changed the context for decision-making regarding the future of the cottages. It is therefore considered timely for Council to reconsider its position on preferred future ownership, management and use of the cottages. Officers recommend that Council revokes its previous December 2011 resolution regarding strata titling of the cottages, and authorises the CEO to advise the State Heritage Office of Council’s current position on matters relating to future ownership, management and use of the Warder’s cottages as outlined in this report.


Conservation and adaptive reuse of the Warders’ cottages for purposes complementary to overall city centre activation and regeneration aligns with several of the Council’s strategic imperatives, particularly in relation to economic development and character (embracing built heritage).


Nil. VOTING AND OTHER SPECIAL REQUIREMENTS Absolute majority


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OFFICER'S RECOMMENDATION - PART 1 Moved: Seconder 1: Seconder 2: Seconder 3 Seconder 4 That Council:

Revokes its previous resolution PSC1112-221 dated 21 December 2011 advising that it would be prepared to issue a strata building approval certificate, subject to certain works and other actions being undertaken prior to issue of strata titles and sale of the Warders’ cottages, as shown in Attachment 3 of the Strategic and General Services Committee agenda 17 June 2015.

OFFICER'S RECOMMENDATION - PART 2 That Council:

1. Authorises the Chief Executive Officer to write to the State Heritage Office advising that the City of Fremantle’s position in respect of future ownership and use of the Warders’ cottages is as follows, and that the City remains committed to working collaboratively with the State Heritage Office to try to achieve an effective outcome for the long term conservation and reuse of the cottage consistent with the City’s position:

The City is no longer supportive of a strata title subdivision of the Warders’ cottages, and instead the City strongly supports the three blocks of cottages each remaining in a single ownership as this is considered most likely to ensure a consistent approach to property management and ongoing conservation of the integrity and other heritage values of the cottages.

In respect of the cottages in Block W1, due to the proximity of the cottages and their rear gardens to Fremantle Markets future use should be for purposes compatible with market activities; these include (but are not necessarily limited to) use as short stay accommodation intended primarily for occupation by tourist visitors and/or uses at ground level, possibly utilising the rear gardens area, that could interact with the street and/or laneway access to the markets. The City is not supportive of reoccupation of the cottages in Block W1 as dwellings intended for long term occupancy as a primary residence, as the amenity expectations of long term dwelling occupiers would be difficult to reconcile with the prevailing character of this area.

In respect of the cottages in Block W2, future use should be considered as part of an integrated approach to adaptive re-use of the former Police Station/old courthouse complex and the W2 cottages as a whole; this could potentially allow for a diverse range of uses compatible with the cultural heritage significance of both places, recognising the impacts of previous modifications to the original heritage fabric of both building groups. The City would be most supportive of uses which help activate


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the eastern section of Henderson Street; however an element of residential use of some form (short and/or long term occupancy) may be supported if it forms part of a broader mix of compatible uses which reactivate the cottages and Police Station complex as a whole.

In respect of the cottages in Block W3, due to the proximity of the cottages to Fremantle Markets and other hospitality and entertainment land uses in Henderson St Mall and South Terrace Block W3 is exposed to high levels of noise and activity; therefore future use should be for purposes compatible with these predominant existing uses. Short stay tourist-orientated accommodation and/or non-residential uses (at least at ground level) that could interact with the street and complement the established character of the area would be preferable so long as any physical alterations needed to make such uses viable can be undertaken without unacceptable impact on the heritage values of the existing building fabric. The City is not supportive of reoccupation of the cottages in Block W3 as dwellings intended for long term occupancy as a primary residence, as the amenity expectations of long term dwelling occupiers would be extremely difficult to reconcile with the prevailing character of this area.


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SGS1506-7 EXTERNAL CONSERVATION WORKS TO FREMANTLE TOWN HALL, 8 WILLIAM STREET FREMANTLE

ECM Reference: 214/006 Disclosure of Interest: Nil Meeting Date: 17 June 2015 Responsible Officer: Director Strategic Planning and Projects Actioning Officer: Heritage Project Officer Decision Making Level: Council Previous Item Number/s: Nil Attachments: Nil EXECUTIVE SUMMARY

The exterior of the historic Fremantle Town Hall building is in need of urgent

conservation work to arrest the rapid rate of deterioration occurring due to water

penetration. It has now been almost thirty years since the last major capital

expenditure on the building and key elements such as the roof cladding and

rainwater goods need to be replaced before winter 2016. Problems caused by

inappropriate surface treatments and repairs to masonry elements carried out in

the1950s - 60s when there was little understanding of how to conserve traditional

building fabric, also need to be addressed to prevent ongoing deterioration of

masonry, embedded steel and timbers and decorative stucco work.

Between 2013 and 2015 City officers prepared a conservation management

strategy to guide the conservation of the Fremantle Town Hall. This report, which

included advice from structural and hydraulic engineers and a quantity surveyor,

recommended a costed list of works and options for how these works should be

packaged up into projects for tendering for documentation and construction. This

report focused on the conservation of the exterior of the building partly because of

the Council’s plan to reconfigure the accommodation in the Town Hall in

conjunction with the larger plan to build a new Administrative Centre and Library

but predominantly because it follows a logical sequence of work to minimise water

penetration through the external skin of a building before commencing internal

refurbishment that could be damaged by moisture.

The conservation strategy recommended that all identified external conservation

works be carried out as one project. A preliminary estimate of probable costs

(calculated 2014) for this work is $2,600.000 excluding GST and consultant fees.

Consultant fees could be in the order of $260,000 bringing the total figure to

approximately $2,860,000. This is significantly more than is available in the

$2,000,000 reserve funds for the Town Hall. Therefore options for staging the

works are identified in this report, although it should be noted that dividing the

project into stages would result in considerable extra cost for setup and site

establishment, especially as scaffolding is a major cost element and the works

could cause considerable disruption in central Fremantle.


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BACKGROUND

1887 Fremantle Town Hall constructed.

Today the exterior of the town hall looks much as it did in 1887 except:

the rendered exterior was unpainted

- the exuberant roofscape of turrets and mansard roofs was clad with slate with cast iron finals rather than terracotta tiles as now

1960s Major refurbishment of Town Hall undertaken in conjunction with construction of new Administrative Buildings and relocation of council offices

- Most roof slates replaced with terracotta tiles (except to Tower)

- Original corrugated galvanised iron sheeting replaced with Super 6 Fibrolite asbestos sheeting

- Exterior of building completely painted for first time

1970s Heritage significance of Fremantle Town Hall recognised in 1974 by the National Trust and then in 1978 by the Australian Heritage Commission.

1985 First Conservation Plan prepared

1986-7 Conservation and refurbishment works carried out, including:

- Replacement of asbestos roof sheeting with Zincalume Custom Orb

- Triangular courtyard covered with a glazed roof

1993 Fremantle Town Hall included on the State Register of Heritage Places

1996 Town Hall repainted with lime wash, however this provided little benefit to the masonry as earlier layers of plastic paints were not removed first.

2004 Conservation plan updated – it contained a list of urgent conservation works to be carried out within two years (by 2006) and included:

- Repair roof cladding and rainwater goods to make building watertight

- Repair and paint all timber joinery

- Commission Structural engineer to investigate building structure

- Commission hydraulic engineer to investigate if capacity of rainwater disposal system was adequate

This report also reiterated the earlier reports recommendations to:

- Reinstate slate cladding and decorative cast iron elements to roofs

- Remove paint on rendered façade and reinstate original finish

2007 Unsuccessful grant application to Lotterywest for funding to carry out urgent works listed in conservation plan. Project stalls.

2010 Clock tower condemned due to concerns about the ability of some floors to support a person. (These concerns have now been proven to be unfounded.)

2012 Mansard roof damaged in winter storm and loose tiles blow off into William Street causing a significant public safety hazard and allowing rain in to building where it damages ceiling linings and wall cladding. Urgent repair works carried out and loose tiles refixed.

2013 Successful application to Lotterywest for grant to fund urgent conservation works. Lotterywest agreed to contribute $75,000 to conservation work to make the roof watertight. The City then set aside $85,000 in their budget for these works bringing the project budget to $160,000.


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2013 Investigative process commenced to developing a scope of works and commission a heritage architect to document the works. Investigations hampered by lack of safe access within tower and onto main roof. Clock Tower has been ‘condemned’ due to concerns about the structural integrity of the ladders and platforms.

2014 Ladders, handrails etc inside clock tower upgraded to allow consultants and contractors controlled access to tower and turret and out onto the main roof.

2014 Investigations discover that further deterioration of some elements has occurred since 2004 conservation plan requiring the revision of the scope of works from maintenance and repairs to large capital works including the replacement of roof cladding and rainwater goods. For this reason a Conservation Management Strategy report was prepared to take a holistic look at the exterior of the building to understand its condition and provide a prioritised and costed list of works.

2014 – 15 Budget included:

- $400,000 for roof replacement which was taken from the $2 million reserve funds for the Fremantle Town Hall. This money was not spent.

- $165,000 for urgent conservation works to the roof - made up of the $75,000 Lotterywest grant plus $85,000 of City funds. Of this money approximately $35,000 has been spent on consultant reports, $25,000 on the provision of safe access within the tower to allow inspection by consultants and contractors and $20,000 is to be carried over for investigations into paint removal, render and mortar composition, cast iron column conservation and render removal. None of the $75,000 grant money has been drawn down as this can only be spent on construction works. Lotterywest have been informed of the evolution of the scope of this project and have been supportive in our approach to the conservation of this historic building.


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DETAIL THE CONSERVATION MANAGEMENT STRATEGY REPORT, 2014 Purpose This report was prepared in 2014 to provide a holistic overview of the current condition of

the building and a strategy to conserve it for the enjoyment of future generations.

This report type is being developed by City officers as a useful tool to reduce the

uncertainties associated with conservation works that occur because it is difficult to

assess the true condition of the building until opening up works begin on site. The

intention is to bring together consultant advice, targeted investigations and opening up

works, chemical testing of samples and specialist advice from tradesmen and suppliers

to gain a better understanding of how the building was constructed, the condition of the

building, the cause of deterioration, and the type of conservation work that will be

required plus time frames and costs. This information will be useful for documenting,

programming and financial planning for future works and will limit some of the delays and

expense of managing unforseen works during the construction phase. This is particularly

important when projects must be carried out within a financial year for budgetary

reasons.

Based on recent experience with heritage projects carried out on City owned buildings it

is clear that there would be great benefit from carrying out this preliminary investigative

stage in the financial year preceding the works. For this reason we are working towards

establishing a two stage process for the management of heritage buildings:

1. Understand the place – prepare a conservation management strategy report

2. Manage change – carry out specific projects defined by CMS

We are following this approach in the Town Hall project and also another small project at

the Fremantle Boys School, which focuses on the masonry construction of the building

and the subtle differences expressed in the various eras of development.

Scope The conservation management strategy is intended to take a holistic look at the exterior

of the town hall to address long term issues with water penetration, damp and

deterioration of building fabric which is adversely affecting the building structure and the

use and presentation of the interior and exterior of the town hall.

The strategy does not directly address the conservation of the interior of the building or

the back wall adjoining the existing Administrative Building as the future use of these

areas is currently being investigated as part of the new Civic Library and Administration

Building project. Instead work focuses on establishing a sensible sequence of

conservation works that involves minimising water penetration and allowing walls to

breathe and moisture to evaporate from external face of the building and not the interior.


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These works will help protect future internal conservation and refurbishment works and/

or provide useful accommodation for the period when the new building is being

constructed.

Key findings of the Conservation Management Strategy Report

1. Structural members are beginning to be affected by water ingress and while deterioration is not yet a cause for concern, the structural engineer has highlighted the need for urgent work to prevent water penetration into the building as if left unchecked damage will begin to escalate rapidly and cause structural damage.

2. The roof drainage system needs to be redesigned. While capacity of most

elements (except guttering to courtyard roof) is adequate, a lack of overflow points to cope with unexpected blockages (shoes, balls, dead birds) and extreme weather events has resulted in regular flooding and water damage. There are also areas where changes (c. 1980s) in roof geometry have led to tortuous gutter routes and areas of roof that do not drain.

3. Mid-century tiled roofs are performing poorly – especially the mansard roof to

the former Caretaker’s Quarters and need to be replaced. This is due to:

- poor construction (lack of sarking, flashings etc),

- inappropriate materials choice

o the tile units are too large for the intricate geometry of the roofs

o some roof pitches are less than recommended for tiles

- deterioration of tile fixing (rusted wire ties and broken terracotta lugs) causing tile to slip down the roof or be blown off in high winds

The loose tiles are a major concern for public safety. In 2012 tiles blew off the roof onto the William Street footpath but luckily no one was hurt. Repair works were undertaken following this event to secure tiles but since then there have been further slippages on other faces of the mansard roof.

4. As recommended by the Conservation Plan 1985/2004, the slate roof cladding and decorative cast iron finials to the turrets and mansard roof of the Fremantle Town Hall should be reinstated. Similar projects have recently been successfully undertaken at St Georges Cathedral and the Treasury Buildings in Perth.

5. Corrugated zincalume roof sheeting (c. 1980s) is in poor condition in places and should be replaced with galvanised steel sheeting to replicate the original corrugate galvanised iron. This work will require the temporary removal and reinstallation of the solar panels on the auditorium roof. The corrugated metal sheeting should be replaced at the same time as the slate roofs because of the interconnectedness of the roofs and rainwater drainage systems and the need to avoid issues with bi-metallic corrosion.


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6. The flat lead roof of the clock tower is leaking badly and water is running down the inside face of the walls. Leaking is due to the poor design of the roof access hatch, failing joints in the lead sheeting, rusting balustrade fixings and the deteriorating flagpole and flagpole flashing.

7. The clock tower has the only remaining slate roof on the building. Some of

these 125 year old slates have been replaced but the condition of the remainder is difficult to assess as the exterior is inaccessible and the interior is lined with timber boards. Today suppliers give slate a 100 year life but obviously there are plenty of far older examples in Europe. What is known is that the fixings, flashings and accessories tend to fail first so while the tower slates may be in reasonable condition; their fixings may need to be renewed. Close inspection will not be possible until a scaffold has been installed.

8. Moisture and salt trapped in the solid masonry walls by plastic paints are

causing the following problems:

a. Rusting of steel lintels, embedded structural steel and decorative iron portico columns

b. Damp and deteriorating plaster on inner faces of some walls

c. Fretting of bricks on the inner face of the clock tower

Work on other City owned heritage buildings suggest that it is likely that the paint on the exterior of the town hall will also be concealing damage and deterioration in the following areas:

d. The tops of projecting cornices, pediments and parapet copings

e. the backs of parapets

f. decorative mouldings and embellishments – iron nails used in the construction of these elements rust and expand causing them to fail

9. In accordance with good conservation practice, all plastic paints and cement

patching to the external face of the walls of the Fremantle Town Hall needs to be removed and the render surface conserved to allow the walls to breathe. For further detail refer to attachments.

10. Removing the modern paint and conserving the original render finish of the

Fremantle Town Hall will not only improve the presentation of the place but will help enhance Fremantle’s unique character. This work will also contribute to the revitalization of Kings Square and compliment the proposed new Civic Library and Administrative Centre.

11. Timber joinery is deteriorating due to a lack of maintenance and painting.

Works are urgently required to prevent the loss of significant fabric.

12. The replacement of the roof cladding provides the opportunity to upgrade the

roof access system to encourage regular maintenance inspections and work to gutters, timber joinery, glass roof, flagpoles


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13. The clock tower windows (dials) need to be re-glazed as they have cracks and holes. The repair of these windows could provide the opportunity to service the clock mechanism, which is long overdue.

14. The glass courtyard roof (1987) is leaking causing slip hazards in the

courtyard. By modern standards the roof also has poor environmental performance but improving ventilation and using high performance solar glass could improve this.

PRIORITY OF WORKS AND PROGRAMMING FOR GREATER EFFICIENCY AND COST EFFECTIVENESS Priority of works All external conservation works identified in the conservation management strategy are urgent. These works include (in no particular order):

1. Make roofs water tight

- replace roof cladding, flashings etc

- upgrade rainwater disposal system

- remove redundant services and limit number of roof penetrations

- make all roof penetrations watertight and remove redundant services

2. Structural repairs recommended by engineer

3. Reduce water penetration through walls

- repair cracks

- repair parapets and projecting elements to shed water away from building

- make windows watertight, especially to clock tower

4. Remove plastic paints to allow masonry walls to breathe so entrapped moisture and salts can escape. Conserve deteriorated masonry elements such as to parapets, copings, projecting cornices, decorative detail. Minimise water penetration of walls to a level that can be handled by natural evaporation.

5. Repair and repainting of timber joinery.

NOTE: Internal conservation works, repainting of auditorium and courtyard etc should not be carried out until the above works are completed or there will be a risk of these works being damaged by moisture and damp.

Programming The conservation strategy concluded that the highest priority works were those that minimised water penetration of the exterior of the building such as the replacement of the roof cladding to the tower and main building, redesign and replacement of the rainwater goods and repair and maintenance of the timber joinery and clock faces. The next level of priority included removing cement renders and plastic paints to allow the walls to breathe, and conserving the stucco finish to the facades, the iron columns to the portico and timber flagpoles. However, all of these works are necessary before internal work can be commenced.


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As the erection of scaffolding was identified as a major expense and cause of public disruption in this project and because all recommended works have a high level of urgency, it would be most cost effective and efficient if the works were grouped according to area. In other words, when scaffolding was erected to replace the roof cladding, all masonry items accessible from the scaffold should also be conserved too. For this reason the works were grouped into three areas:

1. Roof replacement and high level masonry and joinery conservation

a. Complete replacement of the existing roof cladding including the reinstatement of the original slate roof and cast iron finials to the turrets and mansard roof and areas of soft zinc cladding

b. Replacement of all rainwater goods and upgrading the capacity of the system to cope with extreme weather events

c. Conservation of parapets, chimneys, mansard roof joinery and flagpoles

2. Tower and Portico conservation

a. Conservation/ replacement of slate roof to tower as well as flat soft zinc roof, wrought iron balustrade and flagpole

b. Conservation works to the glazed clock dials and clock mechanism

c. Removal of paint and conservation of stucco facades and decorative details such as pediments, swans, urns and swags

d. Conservation of metal items including columns to base of portico

3. Courtyard and Façade conservation

a. Repair and painting off all external joinery - doors, windows, flagpoles etc

b. Removal of plastic paint on all masonry to allow walls to breathe and reinstate original finish, texture and colour of facades

Project Costs and Staging OPTION 1 Based on a consideration of the urgency of the works, efficient working methods, cost minimisation and disruption to the CBD the Conservation Management Strategy Report recommended that all the recommended works be carried out as one large project. As a part of this report schematic drawings were prepared to describe the recommended works and these were used by a Quantity Surveyor to prepare a preliminary estimate of probable cost for carrying out all works as one large project. Refer to appendix for Quantity Surveyor’s Report and a more detailed breakdown but note that these figures cannot be treated as a shopping list as many costs and works are interlinked. Estimate Summary for all recommended works (figures exclude GST, escalation costs)

Tower $500,000 Facades $600,000 Main Roof $1,100,000 Design and construction contingency $400,000 SUB TOTAL $2,600,000 Consultant fees (approx. 10%) $260,000 TOTAL $2,860,000


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The recommended works can be staged but this will have a number of implications:

- Increased costs due to reduced quantities of scale - Increased costs to set up site and erect and take down scaffolding several times - Increased time when public use of Kings Square and William Street will be affected

- Increased time until internal repairs/ refurbishments can be carried out to Town Hall - Reduced visual impact on the presentation of Kings Square Following the receipt of these figures the Quantity Surveyor was asked to provide costs to break the project into three stages, Tower, Facades and Main Roof. Using these figures several scenarios were prepared for staging the project. OPTION 2 Carry out the recommended works as a two stage project focussing first on the main part of the building (roof and facades) and then the clock tower. This scenario, while not as efficient as Option 1, has the following benefits compared to Options 3 and 4:

- Scaffold for the main part of the building will only be erected once - Period of disruption to Kings Square and Town Hall reduced

- Exterior of main building conserved first to allow conservation and refurbishment of interior to be commenced earlier.

- Greater visual impact as walls and roof completed together (however there will be a period when the tower does not match main building)

The risk associated with this scenario is that the second stage of works to the tower will be delayed resulting in deterioration of the tower and possible structural issues. Estimate summary for Option 2 (figures exclude GST, escalation costs)

STAGE 1 – Main Roof and facades to William and High Streets Main Roof and Facades $1,750,000 Design and construction contingency (approx. 18%) $315,000 Consultant fees (approx. 10%) $206,500 Total for main roof and facades $2,271,500 STAGE 2 – Tower Tower $500,000 Design and construction contingency (approx. 18%) $90,000 Consultant fees (approx. 10%) $59,000 Total for Tower $649,000 TOTAL FOR 2 STAGES $2,920,500

OPTION 3 This option focusses on making all roofs watertight as the first priority to reduce the risk associated with deterioration of roof structure. While it is good conservation practice to start with the roof and work down, this scenario has some negative outcomes:

- Greater cost for scaffold to main building to be erected and taken down twice - Greater disruption to public areas in Kings Square and William Street - Increased time before internal repairs and refurbishments can be carried out


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Estimate summary for Option 3 (figures exclude GST, escalation costs)

STAGE 1 – Main Roof and Tower Main Roof and Tower $1,750,000 Design and construction contingency (approx. 18%) $315,000 Consultant fees (approx. 10%) $206,500 Total for main roof and tower $2,271,500 STAGE 2 – Facades Facades $650,000 Design and construction contingency (approx. 18%) $117,000 Consultant fees (approx. 10%) $76,700 Total for Facades $843,700 TOTAL FOR 2 STAGES $3,115,200

OPTION 4 Carry out the recommended works as a three stage project. While this scenario has financial benefits in spreading the costs over a greater period of time, the extension of time will also increase many of the negative outcomes associated with Option 3, such as:

- Greater cost due to scaffold being erected and taken down twice - Greater disruption to Kings Square and William Street - Increased time before internal repairs and refurbishments can be carried out - Inceaced time before urgent conservation works are addressed

Estimate summary for OPTION 4 (figures exclude GST, escalation costs)

STAGE 1 – Main Roof Main Roof $1,250,000 Design and construction contingency (approx. 18%) $225,000 Consultant fees (approx. 10%) $147,500 Total for main roof $1,622,500 STAGE 2 – Tower Tower $500,000 Design and construction contingency (approx. 18%) $90,000 Consultant fees (approx. 10%) $59,000 Total for Tower $649,000 STAGE 3 – Facades Facades $650,000 Design and construction contingency (approx. 18%) $117,000 Consultant fees (approx. 10%) $76,700 Total for facades $843,700 TOTAL FOR 3 STAGES $3,115,849


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Documentation of the works and increased accuracy of costing The costs for staging this project cannot be further broken down or manipulated without affecting their accuracy. The completion of working drawings would provide the basis for far more accurate costing of the project and greater certainty in financial planning. CONCLUSION The conservation management strategy report for the Fremantle Town Hall has identified

that the exterior of the building is in need of urgent conservation work to arrest the rate of

deterioration caused by rainwater, moisture penetration and the entrapment of salt and

moisture within the masonry walls. All external conservation works identified in the report

are urgent, in particular, the roof cladding and rainwater disposal system need to be

replaced before the winter of 2016. These works need to be carried out prior to any

works to conserve or refurbish the interior of the building.

A preliminary estimate of probable costs (calculated 2014) to carry out all the

recommended conservation works is $2,860,000 ex. GST which is significantly more

than is available in the $2,000,000 reserve funds for the Town Hall.

While the most efficient and cost effective approach to the conservation of this building

would be to carry out all external works as one large project, staging of the work has

been investigated in recognition of the need to work within the City’s resources. For this

reason the preliminary estimate also provided costs to divide the works into three

projects, the main roof, the tower and the William and High Street facades.

The conservation works, consultant fees and contingencies for the works to the main roof

were costed at $1,622,500 and could be completed using the $2,000,000 reserve funds

for the Town Hall. These works should be undertaken as Stage 1. Further works could

be completed using the remaining $400,000 but detailed documentation of the works (full

working drawings and specification) are required to allow a quantity surveyor to provide

more accurate costs for the purposes of financial planning. Instead, $140,000 of the

remaining funds in the reserve is recommended to be used to employ consultants to

document and cost the second stage of works - those to the tower and facades of the

Town Hall.

If documentation commenced on this project at the beginning of the 2015/16 financial

year, more accurate cost information would be available by December 2015, which

would allow the final scope of work to be fixed before tendering. These figures would

also provide the council with a cost to complete the remainder of the works so

supplementary funding sources could be investigated at that time.


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Further, if all the works (i.e. Stage 1 and Stage 2) were put out to tender for construction

and separate prices were obtained for Stage 1 (Main Roof) and Stage 2 (Tower and

Façades), with the invitation to tender making it explicit that Stage 2 will only proceed if

Council is able to allocate funding for this stage of the project, then Council could decide

whether to fund both stages and realise the cost savings, programming benefits and

efficiencies of completing all works as one large project.

OFFICER'S RECOMMENDATION That Council:

1. Approves the allocation of $1,622,500 from the $2,000,000 reserve funds in the Fremantle Town Hall Refurbishment Reserve in the 2015/16 budget for implementation of the project Stage 1 Fremantle Town Hall Conservation - Main Roof Replacement including the cost of consultant fees for documentation, construction and contingencies (ex GST).

2. Approves the allocation of $ 140,000 (ex GST) from the $2,000,000 reserve funds in the Fremantle Town Hall Refurbishment Reserve in the 2015/16 budget for expenditure on consultant fees to document Stage 2 Fremantle Town Hall Conservation -Tower and Façades.

3. Instructs officers to prepare a further report once documentation of the

Stage 1 and Stage 2 works referred to in recommendations 1 and 2 above has been completed and a tender estimate for the works received (by no later than December 2015), for the purpose of enabling Council to consider the funding options for implementation of the Stage 2 Tower and Façades works.

4. Approves putting the entire conservation project (i.e. Stage 1 and Stage 2)

out to tender for construction to obtain separate prices for Stage 1 Main Roof Replacement and Stage 2 Tower and Façades, with the invitation to tender making it explicit that Stage 2 will only proceed if Council is able to allocate funding for this stage of the project.

5. Notes that:

a. Works need to be carried out to the Fremantle Town Hall to replace the main roof and the rainwater disposal system before the onset of the 2016 winter. This work is essential to protect the structure of the building and avoid more costly works in future.

b. Works need to be undertaken to address ongoing deterioration of the

masonry facades to William and High Streets caused by impervious paint and cement patching and prevent structural damage, deterioration of embedded steel and timber elements and loss of significant decorative detail. Not only will this work allow the walls of the building to breathe, it will also provide the opportunity to improve the presentation of the place.


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c. If sufficient funding can be made available to enable both stages 1 and 2 of the roof replacement and façade conservation works to be carried out as one project, improved efficiencies of scale and cost effectiveness would be achieved by reducing scaffolding and setup costs and minimising the duration of disruption and other impact on Kings Square and the surrounding area, for example disruption to public parking and service access arrangements for local businesses.


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SGS1506-8 2016/17 BLACK SPOT PROJECT PROPOSALS

ECM Reference: 106/050 Disclosure of Interest: Nil Meeting Date: 17 June 2015 Previous Item: Nil Responsible Officer: Lionel Nicholson, Acting Director of Infrastructure and

Project Delivery Actioning Officer: Phillip Adams, Manager Infrastructure Projects Decision Making Authority: Council Agenda Attachments: South Street and South Terrace intersection upgrade

Watkins Street and Wiluna Street roundabout Marmion Street and Petra Street seagull island Hampton Road and Wray Avenue signals upgrades Adelaide Street, Parry Street and Queen Victoria Street signal upgrades Hampton Road and Lefroy Road signal upgrades

EXECUTIVE SUMMARY

Each year, the City is invited to submit for consideration projects qualifying for Nation Building and State Black Spot Funding. The closing date for the 2016/17 Nation Building submission is 31 July and the State Black Spot Programs is 28 August 2015. Advice of the successful projects funded will be provided in the first half of 2016. This year, City officers have prepared 6 nominations totalling approximately $980 500. Council may be required to contribute up to $328 000, one third of the projects value should the funding bids be successful. This report seeks endorsement from Council to submit the proposed projects for consideration in the 2016/17 Blackspot funding scheme.

BACKGROUND

The National and State Road Safety Black Spot Program is a Commonwealth and State Government initiative administered by Main Roads Western Australia (MRWA). The program targets road locations where crashes are occurring and aims to fund cost effective and safety oriented projects by focusing on where the highest safety benefits and crash reductions can be achieved. All submissions are considered on their merits and evaluated against the criteria set by the Australian Transport Safety Bureau (ATSB). Separate criteria apply for the Nation Building Black Spot Program and its State counterpart. MRWA collects all data relating to road crashes and has developed two funding programs, Nation Building Black Spot and State Black Spot for approved projects for local governments. The criteria used in the assessment to determine the benefit / cost ratio (BCR) are:


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crashes for the 5 year period 2010 to 2014 inclusive for qualifying audits;

crash costs based on crash type cost and

all capital costs, including contributions by others, and ongoing maintenance costs.

The Australian Government Black Spot Program for 2015/16 and 2016/17 guidelines have changed, effectively improving the prospects for projects to be funded as well as an increase in the total funding pool from $6.585 million to $17.56 million. The below table summarises the proposed treatments and costs for the Fremantle 2016-17 Black Spot Submissions;

COMMENT

The schedule of projects has been developed from crash data available to the City. An online ‘crash analysis record system’ (CARS), developed by MRWA. CARS uses crash data and the results obtained from other known treatments to determine the appropriate solution to minimise the incidence of the crash type. The BCR is the probable savings in the incidence of crashes against the capital cost of effecting the improvements. Based on the criteria, intersections were identified as warranting treatment and each of the intersections has a record of either rear end, right angle or multiple type crashes. These projects are programmed for completion by June 2017.

Street 1 Street 2 Street 3 Crash Casualty Proposed

Countermeasure

Estimated

Total Cost

COF

Budget

(33%)

South Street South Terrace 33 3 reconstruct median

islands on north &

south approaches

$95,000 $32,000

Watkins Street Wiluna Street 12 2 roundabout $150,000 $50,000

Marmion Street Petra Street 10 2 seagull island $30,000 $10,000

Hampton Road Wray Avenue 42 5 overhead mast arms

on N & S approaches

$190,000 $64,000

Adelaide Street Parry Stret Queen

Victoria Street

14 3 overhead mast arms

on E & W

approaches,

upgraded

pedestrian facilities

$335,500 $112,000

Hampton Road Lefroy Road 29 7 overhead mast arms

on N & S approaches

$180,000 $60,000

CITY OF FREMANTLE 2016-17 BLACK SPOT SUBMISSION PROPOSALS


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Where applicable, improvements to cycle functionality were addressed and included in the project submission When upgrading a major signalised intersection, the ability to install head start cycle facilities can be relatively inexpensive requiring only the relocation of the signal loop detectors, some additional line marking removal and reinstatement as well as the green surface treatment. Although not able to be funded under the Black Spot guidelines, their inclusion was shown to portray the ultimate design for intersections that are on bike routes. The South Terrace and South Street upgrade adds head start facilities on the north and south approaches on South Terrace and will provide a direct link to the proposed South Terrace south of South Street project. A similar link will be proposed for the resubmitted Hampton Road and Wray Avenue project along Hampton Road. The Adelaide Street and Queen Victoria Street upgrade will also provide cycle links into the City as well as provide an opportunity to create enhanced pedestrian areas adjacent to the Princess May Park in conjunction with the proposed future upgrades here. Bike symbols are included at the roundabout on Watkins Street and Wiluna Avenue. The upgrade proposed for Hampton Road and Lefroy Road is to mitigate the number of rear end collisions and focuses on the signalling and electrical component of the intersection. No significant civil works are proposed. The City has ‘Agreement in Principle’ with MRWA to carry out the following projects involving the upgrading of these signalised intersections;

South Terrace and South Street

Adelaide Street, Parry Street and Queen Victoria Street

Hampton Road and Wray Avenue and

Hampton Road and Lefroy Road


Financial

For the proposed projects in the 2016/17 financial year, the estimated total cost is $980 500. If all project submissions are successful in attracting grant funding Council may be required to contribute one third of this cost being $328 000. The funded cost to undertake the works relates only to the design and construction of the road treatment designed to improve the safety of road users. Ancillary works such as landscaping, artworks, improved cycle functionality and decorative lighting to enhance the urban streetscape will need to be funded by the City. Legal

All works are designed in accordance with the Road Traffic Act and designs will need final approval from Main Roads WA prior to implementation.


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Operational

Capital works will need to be scheduled for the awarded projects in 2016/17 and will be carried out by the City’s construction unit. Organisational

The works complement the long term Infrastructure plans for the City of Fremantle by completing the existing bike routes and the South Terrace South Fremantle project improvements. The Queen Victoria Street and Adelaide Street upgrade project will also align with the Princess May Park proposed works. The Strategic Projects team have reviewed this proposal and are satisfied it aligns with the City’s urban design strategy.

CONCLUSION

The 6 projects nominated for consideration in the 2016/17 Black Spot Program were selected based on criteria for improving functionality and efficiency at busy signalised intersections, as well as providing enhanced pedestrian and cycling facilities to address road safety issues within the City. The projects, if successful, represent a significant investment in improving road safety and sustainable transport for the City.


Bike Plan 2014 - 2018 Strategic Plan 2010 - 2015

Transport

Community Safety


Community engagement will take the form of information and project communication in accordance with the City's Community Engagement Policy.




That Council supports the 2015/16 State Black Spot Program submission for the projects as listed below;

a) South Street and South Terrace intersection upgrade adding turn pockets on South Terrace

b) Watkins Street and Wiluna Street roundabout c) Marmion Street and Petra Street seagull island d) Hampton Road and Wray Avenue signal upgrades e) Adelaide Street, Parry Street and Queen Victoria Street signal upgrades f) Hampton Road and Lefroy Road signal upgrades


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SGS1506-9 WEXFORD WAY FULL ROAD CLOSURE TRIAL ASSESSMENT

ECM Reference: 165/022 Disclosure of Interest: Nil Meeting Date: 17 June 2015 Previous Item: SGS1409-3 Responsible Officer: Lionel Nicholson, Acting Director Infrastructure and

Project Delivery Actioning Officer: Phillip Adams, Manager Infrastructure Services Decision Making Authority: Council Agenda Attachments: Nil

EXECUTIVE SUMMARY

To address traffic management issues related to the volume of traffic and speeding in Wexford Way, a full road closure at the intersection of Wexford Way and Bellamy St was trialled from mid-December 2014 onwards. This trial closure of Wexford way onto Bellamy Street has had a positive effect on eliminating through traffic into the area and achieved resident’s expectations in this regard. Traffic data has shown a reduction in traffic volumes throughout and speeds on the key road of Wexford Way. The trial period of six months has come to a conclusion and the next step in this process is to advertise the closure formally to all stakeholders. The retention of the closure is seen as a responsible action in terms of creating a safer environment for the community as well as managing the expectation of the residents on providing this traffic management solution. This report shows the traffic data comparison for the area including post treatment analysis and seeks endorsement to proceed with a six month advertisement period of the closure.

BACKGROUND

At the council meeting on 24 September 2014 it was resolved; That Council

1. Approves the full closure to vehicular traffic at the Wexford Way and Bellamy Street

intersection for a trial period of six months.

2. Seeks a further report on the outcomes of the full closure to vehicular traffic at Wexford

Way and Bellamy Street following the trial period.

The full closure was implemented in mid-December 2014 and now concluded. Details of traffic

movement and speed data were collected prior to and after the closure was instituted and the

results are presented in the comments section.


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COMMENT

The traffic data comparison shows a gradual decline in average weekday traffic in the area over the course of treatments undertaken in the past few years. Most notably, the southern entrance off South Street was originally at almost 900 vehicles per day whereas the current volume is 337 vehicles per day.

To ensure the City has informed the local residents and users of the network, the full closure of Wexford Way will need to be advertised by the City of Fremantle. This will be done via local media, newspaper and letters to residents and stakeholders including emergency services informing them of the changes on a permanent basis. This advertising will be undertaken for a period of six months to ensure all agencies and residents are completely satisfied with the road changes and are accustomed to the change. Local speeds were shown to decrease on the key indicator of Wexford Way mid-block which is between Terrene lane and College Corner. This section would be the shortest route for through traffic and is a good indicator of traffic using Terrene Lane. Overall it can be seen that a significant reduction in the number of vehicles and a general reduction in speeds improves the safety of this development. This more resembles the intent of the original structure plan.


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The closure does not involve surrendering any part of the road reserve to either of the adjacent lots or to create a new lot. To this end no changes to the lot numbering or road need to be made. Previous comment from Landgate does not require the suffix on Wexford Way to be altered.


Financial

Some additional funds will be allocated to the advertising of the closure for a period of six months. No additional physical construction work is planned over and above what is currently in place.

Legal

The area of road reserve that physically controls vehicle access from Bellamy Street and Wexford Way is under regulatory control approved by Main Roads WA. The section of road reserve remains under the care of the City of Fremantle. The Local Government Act 1995 (the Act) requires that a local government give local public notice of the order to close the intersection. However, prior to making this formal closure notice it must also firstly consider the proposal through local public notice, giving sufficient details of the closure; and inviting, and subsequently considering any submissions made on the proposed closure. Notice is also to include prescribed persons as allowed for under the Act. It is considered that the further review/advertising period of six months will meet the requirements of the Act to allow a reasonable time for submissions to be made, and give extra assurance to council when considering the results of the proposal for closure.


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Operational

The area at the closure will need to be maintained to allow pedestrian and cycle access.

Organisational

No significant organisational impact is expected apart from some ongoing monitoring of the road closure devices.

CONCLUSION

The full closure of Wexford Way at Bellamy Street has effectively removed the through traffic element for the residential area immediately north of Bellamy Street. The process to formalise the closure on a permanent basis requires further community engagement process including advertising in local media and notification to emergency services.


The improved traffic management of the area aligns with;

Urban Renewal

Community and Safety


The previous community engagement provided the option to close the access point at Bellamy Street and Wexford Way and other internal traffic calming. The results of this engagement showed a majority support for the closure and traffic calming on Terrene Lane. Council elected to proceed with the closure of Bellamy Street and Wexford Way and that internal traffic calming is not required. The option to have the closure as a trial was a Fremantle initiative resulting from the engagement process. This trial period was to assess any issues with the closure and the changes in traffic volumes and driver behaviour. A significant reduction in complaints has occurred and it is considered residents are supportive of the proposal and do not require any additional treatments. This is demonstrated by the collated data and the closure achieves the desired traffic calming requirement for the community.


Simple Majority


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Council:

1. Advertise the City's proposal for permanent full road closure of the intersection of Wexford Way and Bellamy Street, to address traffic issues on Terrene Lane, O'Connor and receive feedback over a six month period.

2. Based on any submissions made during this period, consider formal closure

of the Wexford Way and Bellamy Street intersection.


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SGS1506-10 OFFER OF LEASE TO ENKEL FOR NAVAL STORES

ECM Reference: 039/076 Disclosure of Interest: Nil Meeting Date: 17 June 2015 Previous Item: SGS1504-6 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Nadine Hume, Property Services Administrator Decision Making Authority: Council Agenda Attachments: Enkel Submission

Fremantle Foundation Submission Naval Stores Application Assessment

EXECUTIVE SUMMARY

The Cantonment Hill Activation Working Group has considered applications for the Naval Stores at Cantonment Hill Reserve, received through the advertised Expression of Interest process which closed 26 May 2014. The purpose of this item is to recommend Enkel as the preferred applicant and request Council consider a Lease between the City of Fremantle and Enkel for the Naval Stores, 141 Canning Hwy, Fremantle.

BACKGROUND

At the Ordinary Council Meeting 16 October 2013, Council resolved the following; That Council:

1. Endorses calling for expressions of interest through an EOI with input from the Cantonment Hill Working Group in relation to public and or commercial activities at the Cantonment Hill site, including the signal station, that could provide activation and a degree of caretaker presence in the short to medium term without obstructing the larger master planning and implementation process.

2. Authorises interim actions including reconnection of services at the signal station, the up-lighting of the building and mural artwork

3. Authorises additional funds of $150 000 to be transferred from the Cantonment Hill Reserve for the interim actions and to support the activation of the ground floor of the signal station and naval store

4. Lists progression of the implementation of the Cantonment Hill Master Plan as a high priority in future budgets.

5. Delays changing the Cantonment Hill Working Group project scope, pending the Expression of Interest process outcomes.

An expression of interest (EOI) process calling for submissions to activate the Cantonment Hill Reserve was advertised, closing on Monday 26 May 2014. Seven expressions of interest were received with the majority focused on use of the Naval Stores.


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The Cantonment Hill Activation Working Group concluded that it is possible for more than one applicant to activate the Naval Stores with the possibility that there be one head lessee to manage the entire building. The City received a total of six expressions of interest specifically for the Naval Stores. Of those, two applicants were recognised as potential head lessees with a model that includes other smaller operators as potential sub lessees. The two head Lessee candidates were Fremantle Foundations acting on behalf of the Circus School, and Enkel. An item submitted to the Ordinary Council Meeting 22 April 2015 requested Council to consider the following Officer Recommendation; “For Council to approve; 1. An offer to Enkel valid for a period of 90 days to complete due diligence and submit

a business case to the City, without a commitment to a long term lease at this stage.

2. City Officers to source costs to improve the building’s structural integrity for review

by the Cantonment Hill Activation Working Group and presented to Council for budget approval.

3. City officers to prepare and negotiate a Lease between the City of Fremantle and

Enkel subject to points 1 & 2 of the Recommendation, for review by the Cantonment Hill Activation Working Group prior to being presented to Council for approval.”

An alternate Recommendation was adopted by Council being; Council’s Resolution: “To defer the item to the May Council Meeting to allow Enkel and Circus School to consider a joint proposal and to present to the next Informal Elected members Meeting.” The reason for the change to the Officers Recommendation was to allow for further discussion between the two potential tenants and the consideration of Enkel and the Circus School to occupy the Naval Stores together.

COMMENT

Both Enkel and the Circus School, represented by Fremantle Foundations, presented to Elected Members at the Informal Elected Members Meeting (IEM) dated 18 May 2015. Indications were that although both groups had tried to come to an arrangement of co habiting the Naval Stores, an agreement that both parties were comfortable with had not been made.


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In light of no agreement being made between the two applicants, Officers present the background of the previous item dated 15 April 2015 for Council’s consideration; The two proposals offered entirely different business models, with Fremantle Foundations seeking a management authority to manage and tenant the Naval Stores on behalf of the City, and Enkel proposing to Lease the building from the City and then sub lease and hire to third parties. Both candidates were encouraged to interact and negotiate with other EOI applicants in a hope that a combination of applicants could co-exist. Unfortunately due to different logistical requirements and business models this was not possible in most cases. The two proposed candidates were assessed and graded by a panel of Officers on the basis of the following criteria; Activation Techniques – does the proposal include adequate activation of the building? Will the building be utilised to full capacity? Are they in line with the Character of Fremantle? Referees – written support of character and previous business endeavours. Business Design/Functionality (Strategic Imperatives) – Is the proposed business model and design functional within the Cantonment Hill Master Plan and reflective of the City’s Strategic Plan? Capacity – Will the use of the business model peak in numbers or have availability for continuous turn over due to public/retail/business use? What is the timing in which the building will be at full capacity and activated by the planned business model, will the business model outgrow the space? Expediential Growth (financial) – Will the proposed business model have growth rate to maintain financial viability and independence? Strategic Positioning – Will the proposed business model work at this location, is this the best location for this applicant? An average of the individual Officer grades then formed the basis for the selection of the preferred applicant. Detailed comments of the Officers and the proposals received by both Enkel and Fremantle Foundations are attached to this item for reference. Enkel’s proposal was to create a creative and interactive co-operative comprised of independent organisations and individuals, with the building modified to include team room and workshop ‘pods’, co working stations and event space, hospitality space, wood and metal fabrication, electronics and biotech lab. Enkel has also negotiated with one of the other expression of interest applicants, an indoor climbing wall, to successfully accommodate them.


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Activation was proposed to be entered in stages based on the time line in which construction works can be undertaken for the building’s fit out, in line with Enkel’s business model. It is also proposed that Enkel enter into a joint application with the City for LotteryWest grant funding to support their financial commitment for fit out. If this funding option is not successful, Enkel are committed to investigating alternatives. They are also intending to contribute their own financial capital to the project. Based on the draft proposal from Enkel, the following are the basic terms and conditions for a Lease over the Naval Stores which are subject to further negotiation with the applicant and approval by Council; Land Description. Portion of Lot 602, on Deposited Plan 65368 being the whole of the land in Certificate of Title Volume 2747 Folio 159 Property Description Naval Stores Registered Proprietor City of Fremantle Commencement Date Proposed 1 August 2015 Lease Term/Options Initial Activation: One (1) year followed by “month by month” Construction period: “month by month” if activation is possible. Followed by:

Term one: ten (10) years Term two: five (5) years Term three: five (5) years

Annual Rental Initial Activation: rate to be determined based on level of activation. Construction period: rate as initial activation if climbing wall can remain active, if not, rent free. Lease: 6% return of the total interior capital works budget to be spend by the City of Fremantle on the Naval Stores building subject to agreement by both parties. From this figure will be deducted the value provided to the community based on performance criteria. In addition, a negotiated percentage of gross profit from Enkel each year will be contributed to community based projects to be agreed upon by both Enkel and the City of Fremantle.


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Statutory Charges Lessee/Licensee will be responsible for outgoings including but not limited to;

All Service usage (electricity, water, phone etc)

Council Rates and State Emergency Services Levy

Land Tax

General Maintenance

Building Insurance Should activation continue during the construction phase a rebate on services will be negotiated whilst contractors draw on such services. Conditions Lease

1. The Lessee acknowledges that the premises are leased in an “as is” condition under the terms of the initial agreement.

2. A no warranty clause will be included in the lease whereby the City accepts no responsibility for the compliance of the building under the BCA for the initial activation.

3. Lessee to acknowledge future works are planned for the premises and surrounding area of Cantonment Hill Reserve and that the Lessor or its agents will require access to the site from time to time after providing reasonable notice and acknowledge some disruption to quiet enjoyment is expected.

4. The Lessee will not brand and secure any signage to the building, without the City’s prior approval.

5. The Lessee will not paint or undertake any works to the external of the building that will cause any damage to the mural and/or without the express written permission of the Lessor.

6. The Lessee acknowledges that the Lease is for the internal of the Naval Stores only and although consultation regarding surrounding works at Cantonment Hill will be made with stakeholders in the area, any decision regarding Cantonment Hill will be that of the Lessor’s.

The Lease will be subject to further special conditions and the addition of performance criteria. A large section of the buildings activation will be managed by membership (of Enkel) as distinct from sub lease or hire agreements. The proposed sub lessee arrangements will be grouped into three categories and will commence after the proposed “term one” between the City and Enkel. Any agreements prior to this commencement date must reflect the term of the Head Lease, including “month to month” periods.


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The proposed sub lessee terms are as follows; Climbing Wall: 3 + 3 + 3 years Hospitality: 2 + 1 years Team Rooms: 6 monthly Although Enkel has proposed an activation of the Naval Stores in its current condition with a staged in level of activation based on forecasted construction works and fit out being complete, the building in its current form will require some remedial works to ensure all services are working and the building is structurally sound. Officer Comment Shacks Holden have recently relinquished the Licence for the Naval Stores which they were using as a storage area. The arrangement has been an interim solution that provided surveillance for the building until an activation purpose was approved. As the use was purely for storage, the Licensee has been able to use the building without the requirement of any repairs or maintenance.


Financial

Although Enkel is able to activate the building initially without any proposed fit out, the building will require some remedial works to ensure that it is safe and structurally sound. These works will include, but not be limited too, confirmation of basic services, window restoration, engineer reports, structural reports. Legal

A Lease and Licence would be subject to the Local Government Act WA 1995 and the Commercial Tenancy Act 1985 Operational

Nil Organisational

The City will need to undertake capital works on the building, in line with the permitted use of the proposed lease, prior to any occupation. It is yet to be determined the extent of those works.

CONCLUSION

It is recognised that by not recommending Fremantle Foundations to take management of the Naval Stores, the Circus School remains without a long-term leased premises and have no obvious alternative premises to relocate to.


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As an outcome to the IEM the Director of Community Development met with Artsource CEO and General Manager to discuss the possibility of the Circus School remaining in their current location with the possibility of locating the planned Gallery for the space in Unit 4, J Shed which will become available in November 2015. Initial indications from the Artsource CEO was that any decision regarding the proposal of space swap would be subject to a decision by the Artsource Board. However it was the preference of the staff to use the space in one location as opposed to two. Artsource’s primary business is as a visual arts organisation with the view that the Circus School does not fit within their core business. The AGM for Artsource was held on 26 May 2015 at which a new Board was selected. The Acting Mayor wrote a formal proposal to the Board for the space swap concept, which was to be considered at the new Board’s first meeting on 9 June 2015. At the time of lodging this item, Officers were unable to obtain feedback as to the outcome of the City’s request.


Nil


A community information session will be arranged during the proposed due diligence period to allow the community to hear further detail about Enkel’s proposed activation and business model.




Council to approve; 1. City Officers to provide an estimate of the cost of remedial works to the Naval

stores building and present them for review by the Cantonment Hill Activation Working Group and then to Council for approval.

2. An offer to Enkel valid for a period of 90 days to complete due diligence,

without a commitment to a long term lease at this stage, subject to point 1 of this recommendation.

3. City officers to prepare and negotiate a lease between the City of Fremantle

and Enkel subject to points 1 & 2 of this recommendation, for review by the Cantonment Hill Activation Working Group, prior to being presented to Council for approval.


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SGS1506-11 DELEGATED AUTHORITY REGISTER REVIEW 2015

ECM Reference: 100/003 Disclosure of Interest: Nil Meeting Date: 17 June 2015 Previous Item: Nil Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Melody Foster, Governance Officer Decision Making Authority: Council Agenda Attachments: Draft Delegated Authority Register 2015

EXECUTIVE SUMMARY

A review of the Delegated Authority Register has been undertaken in accordance with the requirements of Local Government Act 1995 (the Act). The register has been reviewed to ensure all delegations from the Council and Chief Executive Officer (CEO) is relevant and appointed to the appropriate officer. Council approval is being sought for the Council delegations as reviewed.

BACKGROUND

Under the Act, local governments may delegate the exercise of any of its powers or duties to a committee of Council or CEO, except those powers specifically identified under the Act. The CEO may then delegate these powers (or part thereof) to other officers but only in accordance with the delegation set by Council. The last review was undertaken in April 2014. The Act requires that a local government authority is to review its delegations at least once every financial year. An annual review of delegations, ensure that they remain up to date with Council expectations, legislation and council policy.

COMMENT

Last year council made a few minor changes to the delegation register, with an additional 2 delegations numbered 3.45 and 4.22 to be included. This year a major review has been undertaken of the Delegated Authority Register to remove any delegations that are no longer required due to legislation, policy or organisational changes. The significant changes that have been made to the register have been listed within this report for reference. Minor changes have been made to the register in regards to employee title changes due to an organisational restructure and the wording of some delegations have been changed to better reflect the intent of the delegation and provide more clarity. The format of the document has also changed from the previous register to make it easier to read.


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All changes have been highlighted within the Draft Delegated Authority Register 2015 as shown in attachment 1 of this agenda item. Delegations by council to committees (Section 1 and 2)

Title of Delegation Page Reason for change

1.1 Delegation of powers and duties - Strategic and General Services Committee

4 The inclusion of xviii) Approval of Parklet applications in accordance with council policy.

Adopted by Council on the 27 November 2013.

1.2 Delegation of powers and duties – Audit and Risk Management Committee (NEW)

5 This delegation has been moved from section 3 and was previously number 3.37. It has been moved to this section as it is a committee delegation.

Delegations by council to the CEO and by the CEO to employees (Section 3)


3.8 Expenditure – Authorisation of

15-20 This delegation has been amended to remove the schedule of authorised officer’s appendix as it is considered an administrative function of the CEO and does not require Council approval, therefore has been removed from this register. Employee expenditure authorisations that have been approved by the CEO will be listed in the register of delegated and authorised officers.

3.10 Painting of house numbers on roadside kerbing

22 This delegation has been removed from the register as it is considered a general administrative function that does not require delegation and will form an internal policy/procedure. Applicable legislation, policy, procedures or local laws will be used to carry out these tasks.

3.11 Advertising signs on sporting reserves

23 This delegation has been removed from the register as it is considered a general administrative function that does not require delegation. Applicable legislation, policy, procedures or local laws will be used to carry out these tasks.

3.12 Banners – Cantonment Hill Cliff and Princess May Park

24 This delegation has been removed from the register as it is considered a general administrative function that does not require delegation. Applicable legislation, policy, procedures or local laws will be used to carry out these tasks.


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Delegations by council to the CEO and by the CEO to employees (Section 3) continued…

3.18 Building licenses – Extension of

30 This delegation has been removed from the register as it is now redundant due to the implementation of the Building Act 2011.

3.20 Stop work orders and seek injunctions – issue of


3.21 Swimming pools - private 33 This delegation has been removed from the register as it is now redundant due to the implementation of the Building Act 2011.

3.22 Permits - annual 34 This delegation has been removed from the register as it is no longer applicable. Applicable legislation, policy, procedures or local laws will be used to carry out these tasks.

3.25 Workers compensation insurance

37 This delegation has been removed from the register as it is considered a general administrative function that is a statutory requirement. Any applicable legislation, policy, procedures and/or local law will be used to carry out this task.

3.26 Native title claim – Swan Valley

38 This delegation has been removed from the register as it is no longer applicable and therefore does not require delegation.

3.27 Assign classifications and issue a certificate of classification


3.28 Materials – not to be deposited on streets without license


3.29 Certain provisions about land – persons with express authority

41-44 This delegation has been amended to remove appendix 1 as it is not required in the register. The information from the appendix will form a procedure that will be adopted by management group for expressly authorised persons. Applicable legislation, policy, procedures or local laws will be used to carry out these tasks.


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Delegations by council to the CEO and by the CEO to employees (Section 3) continued…

3.30 Western power – pruning agreements

45 This delegation has been removed from the register as it is considered a general administrative function that does not require delegation. The City will work with Western Power to ensure our tree pruning and tree species fit within the legislative requirements and services for tree pruning will go through the appropriate tender process.

3.31 Placement of regular newspaper column and advertising

46 This delegation has been removed from the register as it is no longer applicable due to the changes in our processes and does not require delegation in this form. Applicable legislation, policy and procedures will be used when placing columns and advertising for the City.

3.35 Filming policy 50 This delegation has been removed from the register as it is not required. Applicable policy and procedures will be used when approving filming requests.

3.37 Annual meeting with the auditor

52 This delegation has been moved from section 3 to section 1 and re-numbered, as it is a committee delegation.

3.46 Approval of land use for community gardens (NEW)

61 This delegation was adopted by Council at its meeting of the 28 May 2014 (SGS1405-16) and therefore has been added to the register.

Delegations by council to employees from other legislation (Section 4)


4.7 Functions delegated under LPS4

68-70 Some parts of the delegation were deleted due to changes in procedure. These changes will enable the delegated officer/s to carry out tasks more efficiently.

4.13 - This delegation was deleted in the last review.

4.14 Fireworks – approvals for display of

77 This delegation has been reworded to better reflect the intent of the delegation – the Council can only provide consent to a firework display application and the Dept of Minerals & Energy is the approving body.

4.15 Dog numbers at premises within the City of Fremantle

78 This delegation has been reworded to better reflect the intent of the delegation, no major changes have been made.


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Delegations by council to employees from other legislation (Section 4)

4.16 Building licence – issuing of


4.19 Appointment of authorised persons under the Building Act 2011 (NEW)

82 This delegation is a new delegation to comply with the requirements of the Building Act. It will replace Functions delegated under the Building Act 2011 (Authorisations) which has been included in delegation 4.20.

4.20 Functions delegated under the Building Act 2011

83 This delegation combines the delegations from the previous 4.19 and 4.20. It was felt they should be combined due to the nature of the delegations. No major changes have been made.

4.22 Appointment of authorised persons (Cat Act 2011)

Previously named - Functions delegated under the Cat Act 2011

85-86 This delegation has been renamed and rewritten to better reflect the intent of the delegation and meet the requirements of the Cat Act.

4.23 Performance of functions under the Bush Fires Act 1954. (NEW)

87 This delegation has been created to cover the requirements in Bush Fires Act 1954.


Financial A number of delegations provide ability for officers or committees to exercise power to approve tenders or commit funding. These delegations are only provided where within policy and adopted budgets set by Council. Legal Section 5.16 of the Local Government Act 1995 makes provision for local government to delegate some of the powers and duties under the Act to committees, except for 5.17 which precludes some of these powers. Section 5.42 of the Act makes provision to delegate some powers and duties to the CEO, except for exclusions under section 5.43. The Act also enables the CEO to further delegate these roles to officers, but only to the extent that Council has delegated power to the CEO. All delegations need to be in writing and this will occur by way of letter signed by the Mayor to the CEO, and by the CEO to officers where delegation has been passed on. Section 5.18 and section 5.46 (2) of the Act requires that an annual review of delegations to committees and the CEO be undertaken. This report complies with this requirement.


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Council is also requested to review the appointments of the Chief Executive Officer and other nominated officers under the provisions of the Local Government (Miscellaneous Provisions) Act 1960, Health Act 1911, Strata Titles Act 1985 and Local Planning Scheme 4. The delegation will enable the officers to attend to specific matters for which delegation is possible in those Acts and Local Planning Scheme 4. Operational All officers are provided with written notice of their delegation by the Chief Executive Officer and advised of their obligation to declare an interest where they have a conflict of interest. If no alternative officer is delegated to process a matter where delegation exists it will either be the Chief Executive Officer that determines the matter through a recommendation from an appropriate officer, or the matter will be referred to council/committee. A delegated responsibility does not necessarily need to be determined under delegation on every occasion, however it is generally the case. Organisational All delegations can only be exercised within Council Policy or within the requirements of the statutory power originally provided and only within the level of delegation provided by Council.

CONCLUSION

Delegations provide for an effective and efficient delivery of services to the Fremantle community. The recommendations contained in this report ensure that these delegations remain current to Council’s structure, policies and procedures.


The requested ongoing delegations assist in administering the strategic direction of Council.


Nil


Absolute Majority Required


That Council adopts the Delegated Authority Register 2015/2016 in accordance with the Local Government Act 1995 and other related legislation as attached to Strategic and General Services Committee agenda.


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SGS1506-12 MONTHLY FINANCIAL REPORT - MAY 2015

ECM Reference: 087/002 Disclosure of Interest: Nil Meeting Date: SGS 17 June 2015 Previous Item: SGS1505-14 of 27 May 2015 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Alan Carmichael, Finance Manager Decision Making Authority: Council Agenda Attachments: Statement of Financial Activity by Nature to 31 May 2015

Statement of Financial Position as at 31 May 2015 Determination of Closing Funds (Net Current Assets) as at 31 May 2015 Schedule of Accounts Paid May 2015 Investment Report to 31 May 2015 Debtors Outstanding as at 31 May 2015 Payment Report (EFT & Cheque) for May 2015 (viewed electronically) Payment Report (Purchasing Cards) for April 2015 (viewed electronically)

EXECUTIVE SUMMARY

The City adopted its annual budget for 2014/2015 on 2 July 2014 with an estimated municipal surplus brought forward from 30 June 2014 of $1 969 947 and estimated municipal surplus at 30 June 2015 of $100 000. After the budget review adopted by Council on 25 February 2015 the estimated surplus at 30 June 2015 was reduced to $0.00. This report highlights any issues that may impact on the financial position to 30 June 2015 and the opening funds for the 2015/2016 Budget.

BACKGROUND

The 2014/15 budget was adopted on 2 July 2014 with an estimated municipal surplus brought forward from 30 June 2014 of $1 969 947 and estimated municipal surplus at 30 June 2015 of $100 000. At its meeting on 23 July 2013 (Item SGS1407-11 refers), Council adopted nature and type as the preferred reporting format with 2.5% and a threshold of $300 000 as the level for explanation of variances. At the budget review adopted by Council on 25 February 2015 the municipal surplus at 30 June 2015 was estimated at $0.00.


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COMMENT

In finalising the 2014/15 budget, it was estimated that we would have a closing municipal surplus at 30 June 2014 of $1 969 947 which in turn became the opening municipal surplus in the 2014/15 budget. The external auditor issued an unqualified audit certificate for the financial statements to 30 June 2014 with a surplus of $1 856 988. A review of the annual budget is required to be undertaken no earlier than 31 December in the financial year and that review was adopted by Council on 25 February 2015. The $112 959 deficit between the estimated and actual closing position at 30 June 2014 as reported in the previous paragraph was addressed as part of the budget review. The State Administrative Tribunal (SAT) made orders to quash the differential rates imposed by the City on undeveloped properties in the 2012-13, 2013-14 and 2014-15 financial years. At its meeting of 26 November 2014, Council reimposed new differential rates and readopted budgets for the three (3) years. The total estimated cost impact of the SAT decision over the three years is $86 247. This matter was also included in the February 2015 budget review. Organisational Revenue Below is a graph for actual operating revenue by month versus their revised budget. Rates have been excluded as $38 million is brought to account in one month and distorts the picture as does profit on sale of assets which is non cash and has also been excluded.

The graph shows that since budget review in February revenues have been consistent against year to date budget and the material upturn in revenue anticipated in June is commented on further below under capital grants.

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

Operating Revenue Budget versus Actual (excluding rates and profit on sale of assets)

Operating Revenue - Revised Budget Operating Revenue - Actual


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Organisational Expenses Below is a graph for actual operating expenditure by month versus their revised budget. The non-cash entries of depreciation and loss on sale of assets have been excluded from the graph as they can distort the picture.

The big spike in proposed expenditure in June is a combination of:-

Employee costs as there is the equivalent of three salary pays in June with the end of financial year accrual. This accrual has already been allowed for in budget phasing therefore should not impact on the variance for June. Also if we look back at December where there was also three salary pays it explains why expenditure in that month was high.

In materials and contracts officers are expecting to spend an extra $1.8 million compared to May and is likely to be a combination of end of financial year accrual, e.g., we will have the equivalent of two months waste disposal tipping fees brought to account in June plus a reflection of how some projects have been phased.

Nature and/or Type Comments In the recurrent budget there were only fees and charges plus employee costs that exceeded the threshold levels for reporting on the variance however comment has also been provided on other items where issues could impact on the closing position at 30 June 2015. Capital Grants and Contributions Though the variance between actual and year to date budget does not fall within the required reporting limits officers have phased the budgets to receive 47% (i.e., $1,165,455) of the revised budget in June 2015. Works on the 2015/2016 budget suggest that $560,000 of the budgeted $2.5 million in capital grants will not be received by 30 June 2015.

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

Operating Expenditure Budget versus Actual (excluding rates and profit on sale of assets)

Operating Expenditure - Revised Budget Operating Expenditure - Actual


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Fees and Charges The increased fee revenue is from:-

Arts Centre. Increased events and patronage has increased Activities and Events $234,000 over year to date budget and Education and Cultural Service $118,000 over year to date budget. The increased activity has also resulted in increased expenditure over the year to date budget.

Parking. Parking revenue was $150,000 above the revised year to date budget but infringement revenue was $29,000 under the revised year to date budget. In addition with parking infringements costs for referral of outstanding fines to the Fines Enforcement Registry was $115,000 over year to date budget.

Employee Costs Employee costs are $783,000 (previous month $996,000) under year to date budget with the major reason being unfilled positions as follows:-

There are unfilled positions in some business units. However, with agency labour which is expensed under Materials and Contracts, if we exclude City Works agency labour it is $439 000 (previous month $399,000) over year to date budget which means that level of saving is required from the employee budget.

City Works is $237 000 (previous month $476,000) under year to date budget and most of that would relate to unfilled wages positions however they do not necessarily translate to budget savings as the work is likely to be undertaken by contractors and expensed under Materials and Contracts.

Materials and Contracts Though the variance between actual and year to date budget does not fall within the required reporting limits there are some items of over and under which are netting one another off and making it look better than perhaps it is. These items are:-

Arts Centre. The additional revenue of $334,000 already noted has a level of contra expenditure which is being offset by under expenditure of $248,000 on the Martu funded project and $113,000 on public art.

Infrastructure Services. The directorate is over year to date budget by $1,019,000 and it is being offset by under expenditure in other directorates. Savings in City Works employee costs of $416,000 reported above can offset half of this amount and the balance is essentially under recovery of overheads in relation to the capital works program.

Capital Program Excluding the $7 800 000 for the acquisition of 2 Jones Street O'Connor and with 92% of the financial year elapsed, capital expenditure is still lagging against year to date budget as can be seen from the following graph.


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At 31 May 2015 the capital program was $6.9 million under its revised year to date budget. From work on the 2015/2016 Budget it is being estimated there will be around $5.5 million of uncompleted capital works at 30 June 20015. Proceeds from Disposal of Assets and Reserve Transfer It is unlikely the sale of the Kings Square business plan properties to Sirona will occur before 30 June 2015 plus 7 Quarry Street will not be settled before 30 June 2015. As a consequence property sale proceeds are likely to be approximately $35.5 million under budget at 30 June 2015. The contra transfer to reserve will also be impacted by the same amount. Cash investments With cash investments, action continues to manage the revised policy SG41 to limit investments in financial institutions which provide direct or indirect support of fossil fuel companies. During the month, funds on deposit decreased by $2 888 000 plus a maturing deposit with an institution that supports the unlocking of carbon (as per marketforces website) was reinvested with Suncorp who now have confirmation on the marketforces website that they do not support the unlocking of carbon. As a result our percentage of investments with financial institutions listed as not supporting unlocking of carbon activities (http://www.marketforces.org.au/banks/map) increased from 65% to 70%. Looking forward, the current financial institutions with which we have investments and don't support the unlocking of carbon are generally at or slightly above their counter party limits under the city's investment policy. In the short term until June 2015 when we raise our budgeted loan borrowings and in the absence of property sales, we are likely to continue to reduce the amount of cash held which in turn is likely to further increase our percentage of investments with financial institutions listed as not supporting unlocking of carbon activities. In the medium term to further increase our total percentage whilst maintaining returns and risk will become more difficult as we need to identify new and suitably rated financial institutions that are offering competitive interest rate returns.

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Budgeted Capital Expenditure - Prior to Budget Review

Budgeted Capital Expenditure - Post Budget Review

Actual Capital Expenditure

http://www.marketforces.org.au/banks/map


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Below is a graph of the maturity profile of our investments with the green coloured bars representing investments with financial institutions listed as not supporting unlocking of carbon. The graph shows longer term investments made to lock in interest rates before the 0.25% interest rate reduction announced by the Reserve Bank on 5 May 2015 and those funds are all with financial institutions listed as not supporting unlocking of carbon.

Below is a graph showing the cash investment situation at 31 May 2015 and the carbon support/non-support position by financial institution.

0.00

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

$5,929,483

$2,000,000

$5,000,000 $5,154,693

$2,550,618 $2,500,000

$5,000,000

$4,034,521

$2,000,000

$990,000 $2,077,000

Maturity Profile of Investment Portfolio

AMP, $7,550,618 , 20%

ANZ, $1,738,956 , 5%

BOQ, $7,000,000 ,

19% ME Bank, $2,077,000 , 5% NAB, $9,345,220 ,

25% Rural Bank,

$4,034,521 , 11%

Wide Bay Bank, $2,000,000 , 5%

Beyond Bank, $990,000 , 3%

Suncorp, $2,500,000 , 7%

Other, $26,152,138 ,

70%

Counterparty Exposure


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Purchase Card Expenditure Reports Officers had not finalised the detail for their May 2015 purchases at the time this agenda closed so the May 2015 purchase card report will be tabled at the July 2015 meeting.


Financial

This report is provided to enable Council to keep track of how the allocation of costs and receipt of revenues is tracking against the budget. It is also provided to identify any issues against budget which Council should be informed of. Legal

Local Government (Financial Management) Regulation 34 requires a monthly financial activity statement along with explanation of any material variances to be prepared and presented to an ordinary meeting of council. Under section 6.10 of the Local Government Act 1995 and Local Government (Financial Management) Regulation 12(1);

a) Council has delegated authority to the CEO under item 3.2, Accounts for Payment - Authorisation Of, to make payments from the municipal fund and trust fund.

The lists of accounts paid are presented in accordance with Local Government (Financial Management) Regulations 13(1) and (3) Operational

This report is provided to Council to keep track of the operational issues affecting the implementation of projects and activities provided for under the 2014/15 adopted budget by reporting actual revenue and expenditure against budget. Additionally at this stage of the financial year it is also informing of issues that need to be taken into account when developing the 2015/2016 budget and the opening position for that budget. Organisational

No direct impact but results year to date may highlight matters that have arisen or may need to be addressed in the future.

CONCLUSION

The financial statements as attached for further review of payments made during May 2015, purchase card transactions during April 2015 and cash deposits at the end of May 2015. Also attached is the year to date statement of financial activity and statement of financial position for information.


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At 31 May 2015 the closing position was a surplus of $2,933,929 whilst the February 2015 budget review was predicting a $0.0 closing position. Given the current level of under expenditure on capital works it is to be anticipated that the final position at 30 June 2015 could be in the range of $2.5 million to $3.0 million surplus.


Nil


Nil




1. The City of Fremantle Financial Report including the Statement of Financial Activity, Statement of Financial Position and Statement of Closing position for the period ended 31 May 2015 is received,

2. Council receives the payments authorised under delegated authority and

detailed in the list of invoices for May 2015 plus purchase cards for April 2015, presented as per the summaries set out in the attached schedules and include creditors that have been paid in accordance with the Local Government (Financial Management) Regulations 1996.


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SGS1506-13 MEMORANDUM OF UNDERSTANDING - SALE OF MATERIALS RECOVERY FACILITY

ECM Reference: 038/012 Disclosure of Interest: Nil Meeting Date: 17 June 2015 Previous Item: C1502-5 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Glen Dougall, Director City Business Decision Making Authority: Council Agenda Attachments: Memorandum of Understanding – Material Recovery

Facility Project

EXECUTIVE SUMMARY

To consider signing a Memorandum of Understanding between the Southern Metropolitan Regional Council and Members to provide agreed principles for the process of consideration of offering the Materials Recovery Facility for Sale. This report seeks council approval for the Mayor and Chief executive officer to sign the proposed MoU.

BACKGROUND

In December 2014 the Chairman of the Southern Metropolitan Regional Council (SMRC) wrote to members of the SMRC seeking consideration and support to market test the sale of the Materials Recovery Facility (MRF). All members, including the City of Fremantle considered this request early in 2015. Fremantle approved the process to market test in February; “Cr S Wainwright MOVED to defer the item to the next appropriate Ordinary Meeting of Council to allow: 1. The SMRC to prepare business cases for both the retention and sale of the MRF as

identified in the confidential consultant's report so that the financial consequences of each option can be properly considered.

2. Both the SMRC and the City of Fremantle an opportunity to prepare their own

reports canvassing the strategic implications of sale or retention of the MRF for their waste and resource recovery strategies.”

COMMENT

The SMRC has appointed a consultant to draft the Business Plan for consideration and engaged commercial lawyers to assist with ensuring legal compliance with legislation, including relevant anti-competition legislation. The first draft was received early May and since this time officers have been in discussion with the SMRC to finalise the Plan so member councils may consider it.


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As members are still in dialogue on the draft Plan, the SMRC has sought the members to enter into a Memorandum of Understanding (MoU) so the SMRC may commence discussions with the market. The process for consideration and possible sale of the MRF is as follows;

June – Members consider an MoU in relation to the Project

June/July – SMRC undertake Market Sounding

July – SMRC and members finalise Business Plan and seek member endorsement

August/September – SMRC advertise Business Plan

September/October – SMRC and members consider adopting Business Plan and possible advertising sale of MRF by Tender

November – Evaluate Tender Submissions

November/December – SMRC and Members consider tenders. Member Council’s will need to individually consider and decide on the Business Plan in July. It is not yet known whether all members need to approve the Plan for the SMRC to be able to advertise it, in accordance with the Local Government Act 1995, but current advice suggests that all members will likely need to adopt it for the SMRC to keep moving through the process to the point of advertising the sale. The MoU attached is a fairly straight forward agreement that requires members to work together, progress and consider decision points in a timely manner, communicate in a timely manner, agree not to withdraw from the SMRC whilst the project is underway and agree to supply recyclable materials to the MRF for between 10 and 20 years. The City is not yet comfortable with the timeframe being contemplated in the draft Plan, however this can be considered further once bids are on the table.


Financial

Nil Legal

Awaiting legal advice at the time of finalising the agenda Operational

The MoU provides an opportunity for the SMRC members to establish the grounds rules for proceeding with the process. Officers from the City will continue to work with the SMRC and members to consider the proposal for the sale of the MRF. Organisational

The MoU requires council to consider decisions at various points through the process. The intent of the MoU is that Council will consider and make decisions when called upon to do so. The MoU cannot seek council to make either a positive or negative decision though.


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CONCLUSION

It is considered appropriate that the SMRC and members enter into an MoU to set principles for and during the process of considering the sale of the MRF. The process will likely take between six and eight months to complete from this point.


The consideration of the sale of the MRF may influence the strategic opportunities the City of Fremantle has available in the future. The long term strategic view will need to be kept in mind when considering future decision points in this process.


Nil.




The City of Fremantle endorses the Mayor and Chief Executive Officer to sign the proposed Memorandum of Understanding – Materials Recovery Facility Project between the Southern Metropolitan Regional Council and Members, as attached to the Strategic and general Services Committee Agenda for June, 2015.


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CONFIDENTIAL MATTERS

Nil.


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SUMMARY GUIDE TO CITIZEN PARTICIPATION & CONSULTATION

The Council adopted a Community Engagement Policy in December 2010 to give effect to its commitment to involving citizens in its decision-making processes. The City values community engagement and recognises the benefits that can flow to the quality of decision-making and the level of community satisfaction. Effective community engagement requires total clarity so that Elected Members, Council officers and citizens fully understand their respective rights and responsibilities as well as the limits of their involvement in relation to any decision to be made by the City.

How consultative processes work at the City of Fremantle

The City’s decision makers 1. The Council, comprised of Elected Members, makes policy, budgetary and key strategic decisions while the CEO, sometimes via on-delegation to other City officers, makes operational decisions.

Various participation opportunities 2. The City provides opportunities for participation in the decision-making process by citizens via its council appointed working groups, its community precinct system, and targeted community engagement processes in relation to specific issues or decisions.

Objective processes also used 3. The City also seeks to understand the needs and views of the community via scientific and objective processes such as its bi-ennial community survey.

All decisions are made by Council or the CEO 4. These opportunities afforded to citizens to participate in the decision-making process do not include the capacity to make the decision. Decisions are ultimately always made by Council or the CEO (or his/her delegated nominee).

Precinct focus is primarily local, but also city-wide

5. The community precinct system establishes units of geographic community of interest, but provides for input in relation to individual geographic areas as well as on city-wide issues.

All input is of equal value 6. No source of advice or input is more valuable or given more weight by the decision-makers than any other. The relevance and rationality of the advice counts in influencing the views of decision-makers.

Decisions will not necessarily reflect the majority view received

7. Local Government in WA is a representative democracy. Elected Members and the CEO are charged under the Local Government Act with the responsibility to make decisions based on fact and the merits of the issue without fear or favour and are accountable for their actions and decisions under law. Elected Members are accountable to the people via periodic elections. As it is a representative democracy, decisions may not be made in favour of the majority view expressed via consultative processes. Decisions must also be made in accordance


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with any statute that applies or within the parameters of budgetary considerations. All consultations will clearly outline from the outset any constraints or limitations associated with the issue.

Decisions made for the overall good of Fremantle

8. The Local Government Act requires decision-makers to make decisions in the interests of “the good government of the district”. This means that decision-makers must exercise their judgment about the best interests of Fremantle as a whole as well as about the interests of the immediately affected neighbourhood. This responsibility from time to time puts decision-makers at odds with the expressed views of citizens from the local neighbourhood who may understandably take a narrower view of considerations at hand.

Diversity of view on most issues 9. The City is wary of claiming to speak for the ‘community’ and wary of those who claim to do so. The City recognises how difficult it is to understand what such a diverse community with such a variety of stakeholders thinks about an issue. The City recognises that, on most significant issues, diverse views exist that need to be respected and taken into account by the decision-makers.

City officers must be impartial 10. City officers are charged with the responsibility of being objective, non-political and unbiased. It is the responsibility of the management of the City to ensure that this is the case. It is also recognised that City officers can find themselves unfairly accused of bias or incompetence by protagonists on certain issues and in these cases it is the responsibility of the City’s management to defend those City officers.

City officers must follow policy and procedures

11. The City’s community engagement policy identifies nine principles that apply to all community engagement processes, including a commitment to be clear, transparent, responsive , inclusive, accountable andtimely. City officers are responsible for ensuring that the policy and any other relevant procedure is fully complied with so that citizens are not deprived of their rights to be heard.


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Community engagement processes have cut-off dates that will be adhered to.

12. As City officers have the responsibility to provide objective, professional advice to decision-makers, they are entitled to an appropriate period of time and resource base to undertake the analysis required and to prepare reports. As a consequence, community engagement processes need to have defined and rigorously observed cut-off dates, after which date officers will not include ‘late’ input in their analysis. In such circumstances, the existence of ‘late’ input will be made known to decision-makers. In most cases where community input is involved, the Council is the decision-maker and this affords community members the opportunity to make input after the cut-off date via personal representations to individual Elected Members and via presentations to Committee and Council Meetings.

Citizens need to check for any changes to decision making arrangements made

13. The City will take initial responsibility for making citizens aware of expected time-frames and decision making processes, including dates of Standing Committee and Council Meetings if relevant. However, as these details can change, it is the citizens responsibility to check for any changes by visiting the City’s website, checking the Fremantle News in the Fremantle Gazette or inquiring at the Customer Service Centre by phone, email or in-person.

Citizens are entitled to know how their input has been assessed

14. In reporting to decision-makers, City officers will in all cases produce a community engagement outcomes report that summarises comment and recommends whether it should be taken on board, with reasons.

Reasons for decisions must be transparent 15. Decision-makers must provide the reasons for their decisions.

Decisions posted on the City’s website 16. Decisions of the City need to be transparent and easily accessed. For reasons of cost, citizens making input on an issue will not be individually notified of the outcome, but can access the decision at the City’s website under ‘community engagement’ or at the City Library or Service and Information Centre.


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Issues that Council May Treat as Confidential Section 5.23 of the new Local Government Act 1995, Meetings generally open to the public, states: 1. Subject to subsection (2), the following are to be open to members of the public -

a) all council meetings; and b) all meetings of any committee to which a local government power or duty has

been delegated.

2. If a meeting is being held by a council or by a committee referred to in subsection (1) (b), the council or committee may close to members of the public the meeting, or part of the meeting, if the meeting or the part of the meeting deals with any of the following:

a) a matter affecting an employee or employees; b) the personal affairs of any person; c) a contract entered into, or which may be entered into, by the local government

and which relates to a matter to be discussed at the meeting; d) legal advice obtained, or which may be obtained, by the local government and

which relates to a matter to be discussed at the meeting; e) a matter that if disclosed, would reveal –

i) a trade secret; ii) information that has a commercial value to a person; or iii) information about the business, professional, commercial or financial

affairs of a person. Where the trade secret or information is held by, or is about, a person other than the local government.

f) a matter that if disclosed, could be reasonably expected to - i) impair the effectiveness of any lawful method or procedure for preventing,

detecting, investigating or dealing with any contravention or possible contravention of the law;

ii) endanger the security of the local government’s property; or iii) prejudice the maintenance or enforcement of a lawful measure for

protecting public safety.

g) information which is the subject of a direction given under section 23 (Ia) of the Parliamentary Commissioner Act 1971; and

h) such other matters as may be prescribed.

3. A decision to close a meeting or part of a meeting and the reason for the decision are to be recorded in the minutes of the meeting.

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