coffs harbour city council ordinary meeting ......2011/06/23 · councillor mark graham has given...

COFFS HARBOUR CITY COUNCIL

ORDINARY MEETING

COUNCIL CHAMBERS

COUNCIL ADMINISTRATION BUILDING

COFF AND CASTLE STREETS, COFFS HARBOUR

23 JUNE 2011

Contents ITEM DESCRIPTION PAGE

NOTICE OF MOTION 1

NOM11/14 PROHIBITING ANTIMONY EXPLORATION AND MINING AND PROTECTING WATER QUALITY IN THE HEADWATERS OF THE REGIONAL WATER SUPPLY (NYMBOIDA CATCHMENT)

1

NOM11/15 HEARNES LAKE - NORTHERN BEACHES ALLIANCE STRATEGY 3

GENERAL MANAGER’S REPORT 5

GM11/15 2011/2015 DELIVERY PROGRAM & 2011/2012 OPERATIONAL PLAN

5

GM11/16 CHCC - UPDATE ON PROGRESS - ACTIONS ARISING FROM REVIEW OF REFURBISHMENT & ACCOMMODATION FOR RIGBY HOUSE & ADMINISTRATION OFFICES

28

CITY SERVICES DEPARTMENT REPORTS 46

CS11/25 YARRAWARRA CREEK, ARRAWARRA - NORTHERN FOOTBRIDGE LICENCE TRANSFER

47

CS11/26 COFFS COAST REGIONAL PARK - STAGE 2 CHCC LAND ADDITIONS & CAPITAL WORKS PROGRAM

54

mahmaureen

Sticky Note

Minutes for this meeting will be confirmed at the Council Meeting to be held in the Council Chambers, Council Administration Building, on 14 July 2011 commencing at 5.00pm

LAND USE HEALTH & DEVELOPMENT DEPARTMENT REPORT 73

L11/12 COFFS HARBOUR CITY LOCAL ENVIRONMENTAL PLAN (LEP) 2000 DRAFT AMENDMENT NO. 34 - NORTH COFFS AND DRAFT NORTH COFFS DEVELOPMENT CONTROL PLAN (DCP)

74

L11/13 DRAFT COFFS HARBOUR LOCAL ENVIRONMENTAL PLAN 2011 93

CONFIDENTIAL ITEM

The following item either in whole or in part may be considered in Closed Meeting for the reasons stated:

L11/14 COFFS COAST WASTE SERVICES WASTE PROCESSING AND RESOURCE RECOVERY OPERATIONS – CONTRACT 03/04-147-TS

104

A portion of this report is confidential for the reason of Section 10A (2):

(d) commercial information of a confidential nature that would, if disclosed: (i) prejudice the commercial position of the person who supplied it, or (ii) confer a commercial advantage on a competitor of the council, or (iii) reveal a trade secret.

and in accordance with Section 10A (1) the meeting may be closed to the public.

CORPORATE BUSINESS DEPARTMENT REPORTS 125

CB11/35 BANK BALANCES AND INVESTMENTS FOR APRIL 2011 126

CB11/36 COFFS HARBOUR AIRPORT TERMINAL PRECINCT MASTER PLAN 2011

139

CB11/37 BCU INTERNATIONAL STADIUM FOCUS GROUP 143

CB11/38 INVESTMENT POLICY AND STRATEGY 149

CB11/39 COFFS COAST DESTINATION MARKETING PLAN 2011 - 2013 174

CB11/40 PUBLIC AMENITIES UPGRADE PROGRAM 197

CONFIDENTIAL ITEM

The following item either in whole or in part may be considered in Closed Meeting for the reasons stated:

CB11/41 TENDER: SUPPLY AND DELIVERY OF STATIONERY AND ANCILLARY ITEMS

201

A portion of this report is confidential for the reason of Section 10A (2):

(d) commercial information of a confidential nature that would, if disclosed: (i) prejudice the commercial position of the person who supplied it, or (ii) confer a commercial advantage on a competitor of the council, or (iii) reveal a trade secret.

and in accordance with Section 10A (1) the meeting may be closed to the public

ORDINARY MEETING 23 JUNE 2011 - 1 -

COFFS HARBOUR CITY COUNCIL

ORDINARY MEETING

23 JUNE 2011 Mayor and Councillors NOTICE OF MOTION

NOM11/14 PROHIBITING ANTIMONY EXPLORATION AND MINING AND PROTECTING WATER QUALITY IN THE HEADWATERS OF THE REGIONAL WATER SUPPLY (NYMBOIDA CATCHMENT)

Purpose: Councillor Mark Graham has given notice of his intention to move: Recommendation: That Council: 1. Strongly oppose all exploration for, and mining of, Antimony within the catchment of the

Nymboida River because of the unacceptable risks to the Regional Water Supply posed by these activities;

2. Inform all relevant authorities of this opposition including directly contacting relevant Ministers, Directors General and agencies with responsibilities for approval and regulation of such activities;

3. Seek the prohibition of all Antimony exploration and mining activities within the Nymboida Catchment to protect the Regional Water Supply from contamination;

4. Inform residents of the City of the unacceptable risks to drinking water quality posed by Antimony mining in the Nymboida Catchment;

5. Approach Clarence Valley Council to seek a partnership for protecting the Regional Water Supply from Antimony contamination.


NOM11/14 - Prohibiting Antimony Exploration and Mining and Protecting Water Quality in the Headwaters of the Regional Water Supply (Nymboida Catchment) (Cont'd) Rationale: The majority of the municipal water supply for Coffs Harbour is provided by Shannon Creek Dam, part of the Regional Water Supply Strategy shared with Clarence Valley Council. This 30,000 megalitre dam is located southwest of Grafton. It is an off-river storage reservoir gravity-fed by pipes directly from the Nymboida River. The Nymboida River has its headwaters across 1700 square km of the Dorrigo Plateau, an area renowned as the highest rainfall catchment in NSW. Anchor Resources Ltd owns the Wild Cattle Creek/Bielsdown project within the headwaters of the Nymboida River, describing it as “an advanced Antimony project”. The company released a scoping study early in 2011 indicating that “positive financial returns are achievable from the project”. Anchor Resources Ltd is currently recommending that shareholders accept a takeover offer from the Chinese minerals company, China Shandong Jinshunda Co Ltd (Jinshunda). Antimony is a “strategic mineral resource” used for a range of high-tech products such as polymers, fire retardants and electronics. Chinese national interests control over 90% of global supply of Antimony and they are seeking global dominance of all such strategic resources. Antimony and many of its compounds are toxic; the effects of antimony poisoning are similar to arsenic poisoning. In small doses, antimony causes headaches, dizziness and depression. Larger doses damage the kidneys and the liver, causing violent and frequent vomiting and will lead to death within a few days; otherwise skin contact causes dermatitis. Major Antimony contamination is known from over 50km of the headwaters of the Macleay River to the east of Armidale, emanating from the Hillgrove and Bakers Creek Antimony and Gold mines. Furthermore Urunga Lagoon immediately south of Coffs Harbour Local Government Area is heavily contaminated with Antimony as a result of a processing plant established there in the 1960s. Both areas have proven impossible to remediate and are gazetted as Contaminated Sites. The proposal by Anchor Resources Ltd to undertake Antimony mining activities within the headwaters of the Nymboida River is of immense concern, particularly when considering that this catchment provides drinking and potable water for in excess of 100000 residents between Yamba and Sawtell. Of further concern is the extremely high rainfall in the Wild Cattle Creek sub-catchment, some years exceeding 3m of rainfall per annum. It is impossible to prevent migration of toxic minerals from mines established in such high rainfall areas, as evidenced by the high levels of contamination known from the Upper Macleay River, downstream of the Hillgrove Mine. All efforts must be expended to protect the source of the Regional Water Supply from Antimony contamination, as clean water is the most critical resource for all life. A partnership should be established with Clarence Valley Council as a matter of urgency to prevent contamination of the Regional Water Supply with toxic Antimony. Staff Comment: The Executive Manager Coffs Water has compiled information regarding this issue and would be able to provide this to Council at a briefing.


NOM11/15 HEARNES LAKE - NORTHERN BEACHES ALLIANCE STRATEGY

Purpose: Councillor Jenny Bonfield has given notice of her intention to move: That council endorses and supports the Northern Beaches Alliance Strategy to save Northern Beaches Greenbelt by bringing together existing programs of three government departments to acquire and protect the following four properties on the Northern beaches.

South Moonee Forest (lot 66 DP 551005 – 102 ha) North Emerald Beach (lot 62 DP 1143405 – 29.7 ha) North Emerald Beach (lot 63 DP 1143405 – 11.7 ha) Hearnes Lake (lot 22 DP 1070182 – 49.5 ha)

Background: The four properties provide a good match for the Sapphire to Woolgoolga Pacific Highway Upgrade Biodiversity Offsets Strategy compensation requirements. Preliminary advice from licensed valuers indicates the property values would be within realistic range for acquisition if the three departments below cooperate with each other. 1. DEPARTMENT OF PLANNING & INFRASTRUCTURE (formerly DoP)

Coastal Lands Protection Scheme: provides authority to zone, acquire and, if necessary, to resume high conservation value coastal land – allocation $4m pa

2. OFFICE OF ENVIRONMENT & HERITAGE (OEH formerly DEPARTMENT OF

ENVIRONMENT, CLIMATE CHANGE AND WATER – DECCW) NSW National Parks Establishment Plan 2008: identifies priorities for land acquisition; includes coastal and estuarine lands and lands adjacent to marine parks. Land Acquisition Program: allocates $5-10m pa for land acquisition.

3. ROADS AND TRAFFIC AUTHORITY (RTA)

Sapphire to Woolgoolga Pacific Highway Upgrade Major Projects approval provisions of the Environmental Planning and Assessment Act, 1979: provides authority for approval and direction in relation to RTA Coffs Harbour to Woolgoolga Biodiversity Offsets Strategy and Package Biodiversity Offsets Strategy requires the identification of a compensatory habitat package; (161.6 ha of compensatory habitat identified so far). Biodiversity Offsets Package requires outline of how Biodiversity Offsets Strategy including compensatory habitat will be implemented. (The total budget allocation for the Sapphire to Woolgoolga Highway upgrade is $800m.)


NOM11/15 - Hearnes Lake - Northern Beaches Alliance Strategy (Cont'd) The Strategy is in line with: COFFS HARBOUR 2030 PLAN - A Strategic Plan for the Coffs Harbour Community The Coffs Harbour 2030 Plan was developed between February and November 2009 through a series of community forums. These culminated in the 2030 Summit held on 2nd May 2009 when 160 community members came together to put forward their ideas on how we achieve the Community Vision 2030 (p5). Identify and promote the region's unique environmental values. Ensure land use management policies and practices conserve the region's unique

environmental and mega biodiversity values. Build ecosystem resilience through a system of local and regional habitat corridors. (all p22). OUR LIVING CITY – A Settlement Strategy for Coffs Harbour City to 2031 provide substantial buffer areas between coastal urban centres to avoid uninterrupted

coastal development (Part 3, p75). The extension of coastal villages has been restricted to protect environmentally fragile areas

and to preserve the scenic values of the coastal landscape. (Part 3, p77). Some areas of coastal land which are already zoned for urban purposes, but which have

significant constraints, may never be able to be developed. (Part 3, p76).


GENERAL MANAGER’S REPORT

GM11/15 2011/2015 DELIVERY PROGRAM & 2011/2012 OPERATIONAL PLAN

Purpose: To present Council's final Draft 2011/2015 Delivery Program, 2011/2012 Operational Plan, Program Budgets 2011/2015 and Fees and Charges 2011/2012. This report recommends the reviewed documents be adopted and implemented from 1 July 2011. Description of Item: Council is required to prepare and implement a Delivery Program (to cover a four-year period) and an Operational Plan for each financial year. These documents outline the principal activities, budgets, works schedules, and fees and charges structure that Council proposes to pursue to help implement the strategies and achieve the objectives set out in the Coffs Harbour 2030 Community Strategic Plan. The Draft 2011/2015 Delivery Program, Draft 2011/2012 Operational Plan, Draft Program Budgets 2011/2015 and Draft Fees and Charges 2011/2012 were adopted by Council on 28 April 2011 and placed on public exhibition for 29 days. The majority of community submissions received and considered by Council sought additional funding allocations within the budget to accommodate specific capital works. While some of these works are already addressed within current or proposed programs, a lack of Council resources means that many of the submitted projects must remain unfunded into the foreseeable future. Following the review of the draft documents, the proposed 2011/2012 budget represents a projected deficit of $182,220 with an undertaking by Council to work to deliver a balanced result by the end of the period. Sustainability Assessment: The Delivery Program and Operational Plan models stem from statewide planning reforms that are based on Sustainability and Quadruple Bottom Line (QBL) principles. That is, there is a requirement that each component identifies and addresses social, environmental, economic and civic leadership issues. Environment

The adoption and implementation of the documents will have no environmental impacts apart from those associated with printing and energy usage. Consistent with Council policy, these impacts will be kept to a minimum. Environmental issues relating to Council and the city are identified and addressed in a number of strategies encompassed by the Delivery Program and Operational Plan.

Social

Community engagement has played an integral part in the finalisation of the Delivery Program and Operational Plan. Consistent with the Coffs Harbour 2030 Plan, the documents include a range of strategies to enhance the social development of Coffs Harbour.


GM11/15 - 2011/2015 Delivery Program & 2011/2012 Operational Plan (Cont'd) Economic

Broader Economic Implications

The Delivery Program and Operational Plan include a number of strategies to assist and contribute to the economic development of Coffs Harbour. As one of the city’s major businesses and employers, Council is an important contributor to the local economy; the implementation of planning, reporting and budgeting structures assists the management of the organization as a secure and stable enterprise.

Delivery Program/Operational Plan Implications

Council’s annual budget allows for the development and review of the Delivery Program and the Operational Plan. This expenditure is monitored through Council’s monthly and quarterly budget reviews.

Civic Leadership

The Delivery Program and Operational Plan create the platform for Council to provide works and services aimed at achieving the objectives of the Coffs Harbour 2030 Community Strategic Plan. This is consistent with the 2030 Plan strategy LC2.2.1: Enable and support all levels of government to serve the local community.

Consultation: Councillors have had the opportunity to participate in a number of workshops to review Council’s strategic objectives and budgetary priorities as part of the development and review of the Draft Delivery Program and Draft Operational Plan. Staff have also had extensive input into this process, with particular involvement in the review of the operational content of the draft documents. The Draft 2011/2015 Delivery Program, Draft 2011/2012 Operational Plan, Draft Program Budgets 2011/2015 and Draft Fees and Charges 2011/2012 were adopted by Council on 28 April 2011 and placed on public exhibition for 29 days (Monday, 2 May to Monday, 30 May 2011). The draft documents could be accessed on Council’s website: www.coffsharbour.nsw.gov.au. Printed copies were also displayed at Council’s Administrative Centre, at the three branches of the City Library (Coffs Harbour, Woolgoolga and Toormina), at General Stores and Post Offices in Karangi, Coramba, Nana Glen, Lowanna, Ulong, Corindi and Red Rock and at the Coffs Harbour Visitor Information Centre. The display period was promoted in the media. All promotional material encouraged the community to consider the draft documents and provide feedback to Council. Community submissions could be made online or via mail. During the display period (and to close of business, Wednesday 1 June), Council received a total of 12 submissions on the draft documents (including five that were tendered by email).


GM11/15 - 2011/2015 Delivery Program & 2011/2012 Operational Plan (Cont'd) During 2010/2011, a number of separate, ‘internal’ funding requests (12) were referred (by Council or Council’s Executive Team) for consideration in the Draft 2011/2012 Budget. Between November 2010 and March 2011, 6 ‘external’ funding requests were referred for processing as community submissions to the Draft 2011/2012 Budget. Each community submission was registered, acknowledged by letter and referred to relevant staff for comment to assist in the consideration of the points raised. A summary of submissions was presented to Councillors on 8 June 2011 (see attachment). The submissions predominantly sought the inclusion of funding in the budget for specific works. The nominated projects included improvements to sports venues, public toilets, roads, drainage, streetscaping and the footpath/cycleway network. The draft documents made it clear that continuing financial pressures are significantly impacting on Council’s ability to maintain existing works and services and preclude the introduction of additional programs. As a result, Council is limited in the way it can respond to the community submissions without inflating the projected deficit in the 2011/2012 budget. A number of submitted projects are already addressed in 2011/2012 programs. Others have been referred for assessment and prioritization in future works schedules. The majority, however, remain unfunded. Council will continue to explore opportunities to secure additional resources to enable these projects to be brought forward. Related Policy and / or Precedents: This is the second year that Council has considered the adoption of a Delivery Program and Operational Plan, prepared under the Local Government Amendment (Planning and Reporting) Act 2009. Statutory Requirements: Sections 404 and 405 of the Local Government Act 1993 detail requirements in relation to a council’s Delivery Program and Operational Plan. Additional requirements for the Operational Plan are set out in Local Government (General) Regulation 2005 – Clause 201 (relating to the content of Council’s annual statement of revenue policy) and Clause 203 (relating to reporting requirements for budget review statements and estimates revisions). Issues: Draft Delivery Program and Draft Operational Plan

Despite the budget constraints, Council is able to proceed with a range of important initiatives in 2011/2012, including:

Drainage work at Richardson Park ($422,000)

Environmental Levy projects (total $1.1M)

The redevelopment of 215 Harbour Drive as the city’s new Museum ($425,000)


GM11/15 - 2011/2015 Delivery Program & 2011/2012 Operational Plan (Cont'd)

Participation in the National Broadband Network roll out

Renewed sponsorship arrangement with the South Sydney Rabbitohs

Implementation of the Community Engagement Strategy for the Coffs Harbour 2030 Community Strategic Plan

Public Toilets Improvements - $32,000

Coffs Harbour Regional Airport improvements (Apron Extension - $400,000; RPT enhancements - $337,000)

Woolgoolga netball courts upgrade ($141,000 – pending the approval of a matching grant)

Contribution to Rural Fire Services ($311,000)

New library resources - $147,700

Roundabouts and Garden Maintenance ($316,000)

Local Roads improvements (total $4.8M)

Bridge Repairs (total $767,700)

Water Reticulation Mains renewal works ($800,000)

Sewer - Pumps, Mechanical Equipment renewal ($3M)

Sewer – Sawtell Pump Station and Pipeworks ($24.5M)

2011/2015 Financial Estimates

General Fund

The final draft four year Estimates each return deficit results as set out below:

Year Financial

Estimate ($)

2011/2012 182,220 (Deficit)

2012/2013 636,633 (Deficit)

2013/2014 498,827 (Deficit)

2014/2015 1,042,117 (Deficit)

Operational incomes and expenditures are tightly budgeted and have been subject to constant scrutiny in recent years. There is little revenue-funded capital expenditure, apart from asset renewal and rehabilitation programs which are not at sufficient levels to meet requirements and reduce backlogs. There are significant capital works planned which are funded from rate variations, trading operations, grants, loans, S94 contributions, reserves etc. In summary, Council's estimates are not meeting appropriate expenditure levels in relation to operations, asset renewals and capital works. Future rate variations seem the only long term answer for Council. In the short term, Council has initiated an organization-wide Service Review to evaluate service provision requirements, service standards and resourcing levels; this review will contribute to the development of the 2012/2013 budget.


GM11/15 - 2011/2015 Delivery Program & 2011/2012 Operational Plan (Cont'd) Water and Sewerage Funds

Both the Water and Sewerage Funds have undertaken massive programs of capital works in recent years. Expenditure has been in excess of $300M. These works have been essential to maintain the viability of our city. Work has commenced on the final project: the decommissioning of the Sawtell Sewerage Treatment Plant and the construction of a sewerage trunk main from Sawtell to Coffs Harbour. This unprecedented program has been funded by a combination of loan funds, developer contributions, reserve funds and grants. Loan funds have been the major source, with $221M borrowed. Rates and annual charges have been held to reasonable increases in recent years, despite the large increase in loan repayments. This has been achieved by using the cash reserves of each fund to meet annual deficits. The final draft Delivery Program provides for the deficits to decrease over the four years, as set out below:

Year Water ($) Sewerage ($)

2011/2012 4,897,205 3,591,600 (Deficit)

2012/2013 4,204,991 3,110,972 (Deficit)

2013/2014 3,717,125 2,357,126 (Deficit)

2014/2015 1,691,579 1,345,813 (Deficit)

The decrease in deficits is achieved due to growth in assessments, increased developer contributions, annual rates and charges increases and reducing loan repayments. It is anticipated that the Water Fund’s deficits will cease in 2015/2016 with a significant loan being repaid in 2014/15. The Sewerage Fund’s deficits will cease in 2017/2018 with a large loan being repaid in 2016/2017. The viability of both funds is assured in future years.

Impact on Residential Ratepayers Council’s 2011/2012 Operational Plan allows for the implementation of a 2.8% increase in ‘General Income’ (income from ordinary and special rates), announced for 2011/2012 by the Chief Executive Officer for the Independent Pricing and Regulatory Tribunal (IPART) under Local Government ‘Rate Pegging’ legislation.

With a 2.8% rate variation, a typical residential ratepayer can expect a total rate increase (including annual and usage charges) of approximately $147.79 per annum (or $2.84 per week), which is a 5.6% increase from 2010/2011. In this instance, the impact upon the typical residential ratepayer's rate notice and annual water usage accounts is as follows:



Rates & Charges 2010/11 2011/12 Increase

($) ($) Amount

($) % Residential Ordinary Rate 870.50 893.80 23.30 *2.7 Environmental Levy 35.58 36.57 0.99 2.8 Sewerage Access Charge 698.00 720.00 22.00 3.2 Water Access Charge 127.00 131.00 4.00 3.1 Water Usage (250 KL pa) 547.50 590.00 42.50 7.8 Domestic Waste Service 345.00 400.00 55.00 15.9 Stormwater Management 25.00 25.00 0.00 0.0 Totals 2,648.58 2,796.37 147.79 5.6

* Percentage allows for excess rate income gained in 2010/11 due to reduced land valuations on objection.

The following comments should be considered in conjunction with the above information:

1. The typical residential ratepayer's land valuation is $185,000 and this valuation has been used in the determination of both the residential ordinary rate and environmental levy in the above table.

2. Water usage charges have been averaged at 250 kilolitres per annum.

3. Water, Sewerage, Stormwater Management and Domestic Waste Service charges are not subject to rate pegging restrictions.

Impact on Pensioners

With a 2.8% rate variation, a typical residential ratepayer receiving a pensioner concession can expect a total rate increase (including annual and usage charges) of approximately $147.29 per annum (or $2.83 per week), which is a 7% increase from 2010/2011. In this instance, the impact upon the typical pensioner’s rate notice and annual water usage accounts is as follows:

Rates & Charges 2010/11 2011/12 Increase

($) ($) Amount

($) % Residential Ordinary Rate 620.50 643.80 23.30 3.8 Environmental Levy 17.79 18.28 0.49 2.8 Sewerage Access Charge 610.50 632.50 22.00 3.6 Water Access Charge 63.50 65.50 2.00 3.1 Water Usage (250 KL pa) 523.50 568.00 44.50 8.5 Domestic Waste Service 257.50 312.50 55.00 21.4 Stormwater Management 25.00 25.00 0.00 0.0 Totals 2,118.29 2,265.58 147.29 7.0




1. The typical residential land valuation is $185,000 and this valuation has been used in the determination of both the residential ordinary rate and environmental levy in the above table.

2. Water usage charges have been averaged at 250 kilolitres per annum.

3. Water, Sewerage, Stormwater Management and Domestic Waste Service charges are not subject to rate pegging restrictions.

4. The total amount of pensioner rebate granted on the average residential property for 2011/2012 is $530.78.

5. The percentage increase for a typical pensioner residential ratepayer is greater than for a non-pensioner residential ratepayer as the State Government rebates have not increased for 2011/2012.

Pensioner Rebates

Council will write off about $2.85 million of pensioner rates and charges in 2011/2012. Of this, Council voluntarily forgoes approximately $550,000. Council is required to forgo the remaining $2.3 million under State Government legislation. The amount Council is reimbursed by the State is approximately $1.265 million, leaving an overall cost to Council of approximately $1.585 million.

Impact on Non-Residential Ratepayers (Farmland, Business or City Centre Business) - Non-Residential Ordinary Rates

With a 2.8% rate variation, the average non-residential ratepayer can expect an increase to the ordinary rate component of their rate account as shown in the table below:

Ordinary Rate Component ONLY

2010/11 2011/12 Increase

($) ($) Amount

($) %

Farmland Ordinary Rate 1,482.22 1,522.34 40.12 *2.7

Business Ordinary Rate $3,141.54 $3,227.95 86.41 *2.8

City Centre Business Ordinary Rate

$6,826.45 $7,014.20 187.75 *2.8

* Percentage allows for excess rate income gained in 2010/11 due to reduced land valuations on objection.


1. The average land valuation for Farmland is $376,000, for Business $424,000 and for Business CBD is $659,000 – with these valuations being used in the determination of the ordinary rates in the above table.



- Annual and Usage Charges for Non-Residential Properties It should be noted that the percentage increase on the total amount of rates and charges payable for some non-residential properties may vary above the typical residential 5.6% rate increase. This may be due to the following factors:

1. A 7.76% increase in water usage charges from $2.19 to $2.36 per kilolitre.

2. A 15% increase in compliant trade waste usage charges from $1.20 to $1.38 per kilolitre.

3. A 15% increase in trade waste non-compliant penalty charges from $1.20 to $1.38 per kilolitre for category 1 trade waste generators.

4. A 15.27% increase in trade waste non-compliant penalty charges from $11.00 to $12.68 per kilolitre for category 2 trade waste generators.

The average total amount of rates and charges for non-residential properties is therefore difficult to calculate due to the varying nature and service requirements of non-residential properties.

Fees and Charges 2011/2012

A review of the Draft Fees and Charges 2011/2012 has resulted in the following recommended changes;

1. Page 5. Building & Development – Fee for Unauthorised Work (Administration / Record Keeping / Building Compliance Fee) was listed previously as “equivalent to prescribed DA & CC Fee”. This has been amended to $330.00 for works valued to $20,000 and $630.00 for works valued at greater than $20,000.

2. Page 70. Library – Inclusion of fees for black and white A3 printing at $0.40 per page, A4 Colour printing at $0.40 per page and $0.80 per page for A3 Colour printing. This is to accommodate the new printers being installed at each of Council’s libraries.

3. Page 76. Economic Development – A reduction in the annual fee for Busking from $600.00 to $55.00, due to a review of other business centres busking policies and a desire to promote Coffs Harbour as a more ‘busking friendly’ town outside the designated International Buskers and Comedy Festival.

4. Page 76. Economic Development – Introduction of a Commercial Company Stall rate at $180.00 per day for a small stall and $220.00 per day for a larger stall. Registered local sporting clubs and local non-profit charity organisations are to remain free of charge. This amendment is to reflect parity with the fees charged in adjacent retail centres such as the Palms Shopping Centre.

Implementation Date / Priority: Subject to Council approval, the 2011/2015 Delivery Program, 2011/2012 Operational Plan, Program Budgets 2011/2015 and Fees and Charges 2011/2012 will be implemented on 1 July 2011.


GM11/15 - 2011/2015 Delivery Program & 2011/2012 Operational Plan (Cont'd) Recommendation: That Council:

1. Adopt the 2011/2015 Delivery Program, 2011/2012 Operational Plan, Program Budgets 2011/2015 and Fees and Charges 2011/2012.

2. Note that the adopted 2011/2012 Budget is based on a projected deficit of $182,220 with an undertaking by Council to work to deliver a balanced result by the end of the period.

3. Respond to all who made community submissions, advising them of the outcome of their requests and thanking them for their input.

- 14 -

Attachments:

Folio 1: During 2010/2011, a number of separate, ‘internal’ funding requests (12) were referred (by Council, Executive Team or Corporate Development Team) for consideration in the Draft 2011/2012 Budget.

Folios 2 – 7: Between November 2010 and March 2011, 6 ‘external’ funding requests were referred for processing as community submissions to the Draft 2011/2012 Budget.

Folios 8 – 18: The Public Exhibition period was held from Monday, 2 May to Monday 30 May 2011 (29 days).

During the display period (and to close of business, Wednesday 1 June), Council received a total of 12 submissions on the Draft documents (including 5 that were tendered by email). Each community submission was registered in Dataworks (Subject: Delivery Program/Operational Plan – Corporate [Submissions only]), acknowledged by letter and referred to relevant staff for comment to assist in the consideration of the points raised. Name Folio Summary of Submission Comment

1. Fitzroy Oval Lighting to 100 lux

Executive Team Determination No. 6.2 (4 August 2010)

Funds for the lighting of Fitzroy Oval to be put forward as part of the budget considerations in the development of the 2011/2012 Delivery Program and Operational Plan.

Council is currently working with AFL NSWACT on funding possibilities for the lighting installation at Fitzroy Oval, and a report will be prepared for Council.

2. Event Proposal (World Rally Championship)

Council Resolution No. 166 (9 September 2010)

That Council support the event proposed in line with the details provided in the Confidential Report.

$XXXXXX (confidential) accommodated in CCM Events

“Internal” Requests (Resolutions of Council/Determinations of Executive Team during 2010/2011 for consideration in 2011 Budget) IR 2699335

1

3. Purchase of 215A Harbour Drive

Council Resolution No. 174 (14 October 2010)

Funding for upgrade works/alterations be considered in the preparation of the budget for 2011/2012.

$425,000 in 310 Capital Expenditure

- 15 -

Name Folio Summary of Submission Comment / Contact

4. Donations/Rates Subsidy Program Indexing


The “Donations” and “Rates Subsidy” budget allocations for 2011/2012 be adjusted to reflect CPI increases and changes in rate contribution requirements.

CPI increase agreed.

5. Rail Transport Study


Council consider allocating funds in the 2011/2012 Management Plan to fund a Coffs Harbour Rail Transport Feasibility Study for a budgeted amount of $25,000 subject to gaining matching funding.

Proposed to include the project in the EL program on 24 March (funded from a reduction in the Orara River allocation). A successful rescission motion on 14 April removed the project and reinstated the funds in the Orara River allocation.

6. Park Beach Lighting


Council consider an allocation of $1,000 to future Management Plans for Park Beach street and reserve lighting maintenance costs.

Accommodated in 2011/12 lighting maintenance.

7. SES Facility

Council Resolution No. 207 (25 November 2010)

That Council consider the allocation of funds for the construction of a new SES facility within its 10-year rolling works program.

No action to date - to be considered in Long Term Financial Plan.

See submission No. 3 below (2569953)

Assorted (Resolutions of Council/ Determinations of Executive Team during 2010/2011 for consideration in 2011 Budget) IR 2699335 Continued

8. Event Proposal (Wintersun)

Council Resolution No. 215 (25 November 2010)

That Council plan for these funds to be allocated in the future Delivery Program and Operational Plans as outlined in the report, noting that the amount cannot be disclosed due to the commercial-in-confidence nature of the contract.

$XXXXX (Confidential) accommodated in CCM Events

- 16 -


9. NSW Coastal and Estuary Program Works

Submissions for funding (awaiting advice on status; 3 December 2010)

Coffs Creek Estuary Management Plan (total $100,000; CHCC contribution $50,000);

Advanced coastal works to the mouth of Coffs Creek (total $100,000; CHCC contribution $50,000);

Pipe Clay Creek Stormwater Community Education Program (total $21,000; CHCC contribution $10,500);

Coffs Harbour LGA Water Quality Education Program (total $100,000; CHCC contribution $50,000)

Coffs Creek Infilling and Hydraulic Capacity (total $60,000; CHCC contribution $30,000)

Coffs Creek EMP could require allocation of $35,000 2011/12 and $15,000 2012/13 if grant application successful. $35,000 could be funded from re-vote of Campbells Beach protection works.

Coastal Works to mouth of Coffs Creek grant application unlikely to be successful.

Pipe Clay Creek project funded from EL

Coffs Harbour LGA Water Quality Education Program funded from EL

Coffs Creek Infilling and Hydraulic Capacity project will be considered as part of Flood Mitigation Program

10. Stage 1 of Flood Early Warning System

$15,000 maintenance funding. Council Resolution No. 66 (14 April 2011)

Needs to be included as a budget item from 2012/13 ($15,000)

Assorted (Resolutions of Council/Determinations of Executive Team during 2010/2011 for consideration in 2011 Budget) IR 2699335 Continued

11. Diamond Head Drive, Sandy Beach

Reconstruction of roundabout central islands at Coral Ave and Mahogany Cres. $40,000.

Council Resolution No. 67 (14 April 2011)

Unfunded at this stage.

Works would bring the roundabout configurations up to current standards and reduce vehicle speed at the intersections. Crash data however indicates crashes due to poor driver behaviour.

- 17 -


Assorted (Resolutions of Council/Determinations of Executive Team during 2010/2011 for consideration in 2011 Budget) IR 2699335 Continued

12. Public Toilet Upgrades

Increase annual capital funding allocation for refurbishment and upgrade of facilities.

Council Resolution No. 68 (14 April 2011)

RESOLVED (Palmer/Arkan) that:

Council consider an increase to its annual capital funding allocation for refurbishment and upgrade of its public toilet facilities.

The installation of baby change tables in public toilets be a consideration when facilities are being upgraded or replaced.

See also Submission No 7 below (IR2748763)

‘External’ funding requests referred as submissions to Draft 2011/12 Budget (November 2010 to March 2011)

Phil Crofts Coffs Harbour City Sport and Recreation Incorporated (COFFSAC) 2651374 28 December 2010 (Replaces first submission dated 18 November 2010)

2 Seeking budget support for: 1. Richardson Park sub-surface

drainage 2. Fitzroy Oval amenities block 3. Toormina Oval amenities block 4. York St oval lighting 5. Woolgoolga Netball reseal complete

rebuild of courts 6. Fitzroy Oval dish drain 7. CCSLP drainage adjacent mobile

canteen (we understand this may have already been attended to)

8. Rugby Park/Hardaker Oval carpark resurfacing

9. Toormina Oval - Netball sealing of courts

10. Fitzroy Oval - lighting 11. Various local facilities seating and

shade 12. Jetty Oval lighting Also: Regional Tennis facility Second synthetic hockey field Regional skate park

1. Council is pleased to see commencement of the Richardson Park sub surface drainage upgrade planned for August 2011, following a joint funding partnership agreement from Council, the State Government, AFL NSWACT and Cricket NSW.

5. Council endorsed Woolgoolga netball’s funding upgrade for a court resurface, and committed to match the grant funding if it is successful.

10. Council is currently working with AFL NSWACT on funding possibilities for the lighting installation at Fitzroy Oval.

Remainder: Council continues to seek funding opportunities for other sports ground capital improvements, with priority going to those rated as a high priority in the recently adopted Sports Facility Plan.

- 18 -


Bob White Local Controller State Emergency Service

30 Nov 2010

2569953

3 Provision of Funding for construction of new SES Headquarters for Coffs Harbour

See Item 1 (7) above. No action to date - to be considered in Long Term Financial Plan.

Kerry Bayliss Hon Secretary Sawtell RSL Sub-Branch IR2667600 8 Dec 2010

4 Seeking inspection of Lyle Rose Memorial Park and works to upgrade to improve Sawtell streetscape

Estimated $21K cost to Council. Unfunded at this stage.

Council can contribute in-kind assistance for urban design and assistance in seeking grant funding. Not a high urban design priority.

Clive Joass President Woolgoolga Sports Council Inc IR 2685940 15 Dec 2010

5 Seeking additional $20,000 for maintenance and operating expenses at sporting complexes. Also nominating priorities for budget inclusion: 1. Woopi Sports Ground eastern field

sub-surface drainage ($72,000) 2. High St Complex nthn field sub-

surface drainage ($161,000) 3. Netball Court replacement

($303,000) 4. Sports Ground lighting upgrade

($90,000) 5. High Street Complex lighting

upgrade ($90,000)

Re: additional for maintenance and operating expenses: An increase of $10,000

has been included in the draft operational plan for maintenance and operating expenses at sporting complexes.

Re priority capital works: Council endorsed

Woolgoolga netball’s funding upgrade for a court resurface, and committed to match the grant funding if it is successful.

Council continues to seek funding opportunities for other sports ground capital improvements, with priority going to those rated as a high priority in the recently adopted Sports Facility Plan.

- 19 -


Kevin Hartley President Nana Glen Sport, Recreation and Equestrian Centre Management Committee IR 2750377 16 Mar 2011

6 Capex assistance: Drainage works $31,374.20

When it rains, water from Morrows Rd and the culvert on the road overflows onto the equestrian centre grounds. This means that there are times when sections of the grounds are unusable for periods of time. It has also dug out a natural drain across the grounds where the water flows which is a potential trip hazard for people or horses, etc.

The committee therefore seeks funding to undertake drainage works to rectify this situation. They have not put in any capital requests for the past two years and they do not have sufficient funds to cover these costs themselves.

Kevin Hartley would be happy to speak to Council in support of this request.

It is noted that the Facility has received $130,000 in federal flood assistance in the last year.

A CHCC inspection is needed to assess ‘trip hazard’.

Elaine Sherwood Via email 22 Mar 2011 IR 2748763

7 Seeking upgrade of Park Avenue (Woolworths carpark) public toilet

See Item 1 (12) above

- 20 -

Public Exhibition period 2 May to 30 May 2011


North Coast Academy of Sport 2789497 12 May 2011

8 Seeking 12c/capita support for NCAS program in 2011/12 (=$8,444)

Annual Donations Program recipient. Advised to submit application by 15 June.

Steve Clemesha Chairman Coffs Coast Regional Park Trust Board IR 2788741 19 May 2011

9 Urgent replacement of Arrawarra Reserve amenity block. ($150,000 to match CCRP funds) Also Schedule 1 projects for consideration within 4-year Delivery Program: 1. Stage 2 - boat ramp and parking

Arrawarra day use area ($100K) 2. Stage 3 - upgrade Arrawarra day

use area including picnic facilities and cultural art work. ($160K)

3. Toilet Diggers Beach ($150k) 4. Coastal Walkway ($24k) 5. Small Access ways ($20k) 6. Minor playground improvements /

seating ($15k) 7. Diggers Beach southern viewing

platform and beach shower ($35k)

The MOU between Council and NPWS for the Coffs Coast Regional Park Trust is due for review later this year. The current MOU is unclear on funding models for capital works.

NPWS allocated $1.4 million for CCRP Capital Works some years ago on establishment of the MOU. NPWS to date will not release project funds unless matching funding comes from Council or other grant sources.

The nominated CCRP “Schedule 1” projects need to be considered against City Wide capital works priorities in future programs.

The Arrawarra Reserve amenity block reconstruction however represents good cost/benefit as there are no other likely grant funding sources for the project, and the project has good community and environmental benefit.

The NPWS $1.4 million allocation has been carried over for many years. With the change in State Government there is some risk that the funding will be withdrawn if the funding is not committed.

A report on CCRP Stage 2 land acquisitions, the MOU and Capital Works Program is being prepared for consideration in conjunction with 11/12 Budget.

- 21 -


Elaine Sherwood Via email 18 May 2011 IR 2798356

1 Reiterating request for upgrade of Park Avenue public toilets. Seeking funding for feasibility study on light rail.

Public Toilets: See 1 (12) above Light Rail: See 1 (5) above. No funding allocation available.

Russell Chiffey Via email 18 May 2011) IR 2798374

1 Seeking funding for feasibility study on light rail.

See comment above

Peter Van Schellebeck Via email IR 2799798

1 Seeking funding for footpaths and cycleways in the draft Coffs Harbour City Council 2011- 2012 Budget (noting that CHCC funding can attract grant funding).

Council briefing 20/4/11 endorsed decision not to fund footpath and cycleway construction for 2011-2015.

- 22 -


Hank Duchetau Management Committee Volunteering Coffs Harbour Inc IR 2787912 10 May 2011

1 Seeking urgent upgrade of road surfaces around the Community Village as an OH&S risk.

The Coffs Harbour Community Village internal roadway and car parking areas have been operational now since opening of the Village back in 1991. Over the last 20 years the traffic flows through the Village have increased dramatically and this in turn has resulted in increasing wear and damage to the internal roadway and car park areas.

Although the road work has been patched and repaired as necessary over the last 20 years, the condition or state of the road and car parking surfaces have now reached a point where they require reconstruction.

Council's Operational staff provided us with an indicative cost estimate in February 2011 in relation to two levels of reconstruction:

Option 1: Description - 1 25mm AS Seal. Rip 100mm depth, top up and reshape car park and Stabilise & sub soil drain estimated cost $176,860;

Option 2: Description - Strip and remove 100 mm, replace with 100mm AC seal plus Sub Soil Drain - estimated cost $236,860.

The issue was raised for consideration in preparation of the 2011-2012 Operational Plan/Delivery Plan/Budget, however due to financial & priority considerations did not make it for inclusion.

This letter is raising grave concerns from the community viewpoint in respect of people with disabilities using the village road and the potential liability issues that arise from the condition of the present road surface.

- 23 -


Peter Dickson-Smith Secretary Access Advisory Committee IR 2793666 19 May 2011

1 Requesting inspection of road and car parking surfaces around the Community Village to assess and effect adequate repairs.

See comment above

Ellen Davis Co-ordinator, Community Village / Cavanbah Centre Via email 30 May 2011 IR 2800504

1 Requesting Council reconsider road upgrade allocation for Community Village in 2011/12

See comment above

William Buckless Secretary Northern Beaches Residents Association Via email 2800679 30 May 2011

1 Priority capital works (in order): 1. Resurface Beach Street from River

St to Scarborough St

2. Drainage at the Nightingale Street

Pedestrian crossing

1. Will be investigated and considered in the road rehabilitation program. Clarence St was rehabilitated this year, Beach St should be done in the next few years (if not this year) subject to funding and priorities.

2. Engineer not aware of problem. It will be investigated and drainage checked.

- 24 -


Northern Beaches Residents Association Continued

3. Multi-Purpose facility

4. Boardwalk from Sea Rescue

Station up Pollock Esplanade to Woolgoolga headland.

3. Reported to Council in December 2010. $5-6M facility proposed at Centennial Reserve or greenfield site. Talks ongoing with RDA. Not a CHCC project at this stage, but likely to be adopted by Council to progress. Existing CHCC commitment is only to finalise a location.

4. Rec.Services: The adopted Solitary Islands Coastal Walk - Sawtell to Arrawarra 1999 indentifies a route from Woolgoolga Headland to Woolgoolga Beach reserve via Pollock Esplanade.

Woolgoolga Headland has recently been identified as a priority for protection of a Themeda Headland Grass community which is a NSW declared Endangered Ecological Community (EEC) and as part of a potential funding partnership through the Our Living Coast project with the NSW Government's Environmental Trust and Coffs Coast Regional Park Trust protection works may occur on the headland commencing 2011-2012 subject to funding.

Woolgoolga Headland is wholly within the Coffs Coast Regional Park gazetted in October 2003 and is jointly managed by CHCC & NPWS. The reserve in Pollock Esplanade is within the Woolgoolga Beach Reserve Trust for which CHCC is the corporate Manager.

- 25 -


Northern Beaches Residents Association Continued

5. Renew town map structure on

the corner of Beach and Boundary Streets

Priority for works would be on Woolgoolga Headland for protection of the EEC. At present the reserve in Pollock Esplanade is walkable on mown grass which has limitations with the mobility impaired. Transition at the corner with Carrington Street in/out from the beach reserve at present is less than desirable. At present it would be safest to cross Carrington Street from the beach reserve car park entry, walk around and into Pollock Esplanade and cross Pollack Esplanade to its north side and walk within the grass along the reserve in Pollock Esplanade to Woolgoolga Headland and then up the east side of Alexander Street to the top of Woolgoolga Headland.

Caravan Parks/State Park: Currently revising the Plan of Management for the Woolgoolga Beach Reserve. There are provisions in the plan for a walkway/cycleway through the reserve, along Pollack Esp (with extra viewing platforms and rest areas), with the goal of providing suitable pedestrian and cycle access to the Headland. Any Headland works will be at the discretion of the Regional Park.

5. Tourist Map – Needs renewal. Negotiations well advanced with contractors to replace a number of tourism map/signs including this one. May be some demolition cost to CHCC, otherwise all costs offset by advertising revenue. Expected completion – December 2011.

- 26 -


Eric West 2799963 29 May 2011

1 Requesting an independent cost/benefit assessment of the following accounts in the Draft Program Budgets: Coffs Coast Marketing (p19) Promotions (p34) Sports Marketing (p14) Events Seed Funding (p42) Events Expenses (p53) Events Marketing (p19) Rabbitohs sponsorship (not shown) Supporting a footpath and cycleway network.

Rabbitohs deal evaluated independently. Footpath/Cycleway construction – see comment for item 12 above

Heather A Austin Vice President Sawtell and District Progress Association 2799964 28 May 2011

1 Protesting against zero funding for footpath and cycleway construction. Request footpath construction at

Coronation Ave (missing links) and First Ave (between 113 and 11th Ave).

Upgrade intersection of Rutland Street and Lyons Road to standard recommended by Traffic Committee in 2004.

Connect North Bonville footpath network with Toormina Rd path and William Bayldon P.S.

Concerned at CHCC expenditure on promotions, Rabbitohs sponsorship and sport marketing – “no transparency , no independent assessment of value to ratepayer” and should be funded via a business levy.

Footpath/Cycleway construction – see comment for item 12 above Rabbitohs deal evaluated independently.

- 27 -


Peter Boyce Vice President Woolgoolga Chamber of Commerce 2801312 30 May 2011 (received 1 June 2011)

1 1. Arrawarra boat ramp/public toilet;

2. Woolgoolga Headland accessway;

3. Highway entrance landscaping;

4. River St works completion;

5. Drainage: Nightingale/Fawcett Sts;

6. Multi-purpose facility;

7. Market St upgrade; 8. Woolgoolga C’van Park area;

9. Woolgoolga Lake & picnic area;

10. New drainage and footpath works.

1.See NBRA comment (Folio 16)

2. See NBRA comment (Folio 16)

3. Liaison with RTA over future interchanges; existing entrances subject to handover negotiations with RTA.

4. Concept design (Gordon St to temple) complete. $600K estimate



7. Concept design complete. $400K

8. Part of Draft PoM – out Jul/Aug? No plans for additional accommodation outside current park boundaries.

9. Concept design complete. $40K est. Community contribution available.

10. See comment (Folio 12) Comparison with previous years:

Year Total Submissions

2011/12 18

2010/11 214 35 ‘general issues’; 179 re: Application for 4.4% General Rate Variation

2009/10 43 Included 27 ‘form letters’ seeking a cycleway at Roselands Estate.

2008/09 50 (Note: Application for 5.7% General Rate Variation plus additional 3.5% Business Rate Variation)

2007/08 9

2006/07 37 (Note: Application for 9.56% Rate Variation)

2005/06 427 (Note: Application for 21.32% Rate Variation)

2004/05 91 (Note: Followed a valuation ‘spike’ in Sawtell properties)


GM11/16 CHCC - UPDATE ON PROGRESS - ACTIONS ARISING FROM REVIEW OF REFURBISHMENT & ACCOMMODATION FOR RIGBY HOUSE & ADMINISTRATION OFFICES

Purpose: A further report on the progress on implementation of improvements identified. Description of Item: At its meeting of 14 October 2010, Council was presented with information regarding the processes utilised to undertake the refurbishment of Rigby House and Council’s Administration Building. A number of deficiencies were noted in the processes utilised and a plan was set out for implementation of improvements. That report and resolutions are presented as an attachment to this report. An update of progress on the improvement implementation plan was presented to Council at its Ordinary meeting of 16 December 2010, with Council resolving to note the current status of the implementation and receive a further report updating the status of the implementation of the improvement plan in March 2011. The report considered in March resolved:

1. That Council note the current status of the implementation of improvements identified.

2. That a further report be prepared for Council updating the status of the improvement plan implementation in June 2011

3. A review of delegations for all Council staff, including authority to incur expenditure within Council's allocated budget be completed within one month and a report returned to Council.

4. That Council note and recognise the vast improvement in work conditions for staff that this process has brought about.

The table below provides an update for Council on the progress of the opportunities for improvement identified. Sustainability Assessment: Environment

No environmental impacts Social

No social impacts.

Civic Leadership Improvements identified will improve Council’s governance structures.


GM11/16 - CHCC - Update on Progress - Actions Arising from Review of Refurbishment & Accommodation for Rigby House & Administration Offices (Cont'd) Economic

Broader Economic Implications The improvements identified relate to Council's internal finances. Delivery Program/Operational Plan Implications The improvements identified will better position Council as an organization to operate effectively and efficiently and achieve Council's stated objectives.

Consultation: Relevant staff have been consulted in the implementation plan arising from Council’s resolutions. Related Policy and / or Precedents: Purchasing Policy. Statutory Requirements: Local Government Act and General Regulation specify requirements for tendering and contracts. Issues: The table below provides an update for Council on the progress of the opportunities for improvement identified. Recom

# Recommendation Status

1 A total of $923,406 of works have been carried out to refurbish Rigby House and Council’s Administration Building. Approval of $98,251 in expenditure was provided by Council as part of revotes in September 2009, however, $825,155 of works occurred without prior approval being sought from Council for this expenditure.

Completed

2 These works have substantially addressed the office accommodation issues identified in Council’s 2009/12 Management Plan.

Completed

3 The works have also provided Council with an annual saving of $203,000 (nett) through either leasing premises which Council owns or as savings in leases for premises previously tenanted to accommodate Council staff.

Completed


GM11/16 - CHCC - Update on Progress - Actions Arising from Review of Refurbishment & Accommodation for Rigby House & Administration Offices (Cont'd)

4 Council staff continue to improve the rigidity of links between the actions and resources (budgets) contained on Council's operational plan.

Implemented and ongoing

5 All budgets and revotes approved by Council have commenced being loaded into Council’s financial system within one week of being approved by Council.

Implemented and ongoing

6 A review of delegations for all Council staff, including authority to incur expenditure within Council’s allocated budget, is currently being undertaken and will be completed by December 2010.

As reported to Council's meeting of 28 April, these are completed.

7 A review of Council’s procurement manual will be undertaken to ensure it is consistent with both legislative and best practice requirements, and it is anticipated that this will be completed by mid-December 2010.

Local Government Procurement are finalising the report.

8 A review of creditor processes is currently being undertaken to ensure that Council’s finance staff alert the relevant Manager (or Director of the area where there is inaction from the Manager) of an invoice being received for expenditure incurred against a job number for which Council has not allocated funds to be completed by mid-November 2010.

Completed

9 A review of financial reporting processes to Managers and the Executive to ensure that reports are effective in identifying unauthorised expenditure and/or expenditure that exceeds budgets to be completed by mid-November 2010.

Implemented. Further refinement will continue.

10 A review of Council’s Asset Management Systems and Service Provision Mechanisms has commenced, and will examine process improvements for estimation, approvals and reporting for projects.

‘First Cut’ Asset Management Plans complete. Service Review process reported to Council in April.

11 All Quarterly Business Reviews (QBR’s) will be provided to Council within the prescribed legislative requirements.

Implemented and ongoing.


GM11/16 - CHCC - Update on Progress - Actions Arising from Review of Refurbishment & Accommodation for Rigby House & Administration Offices (Cont'd)

12 Council's Internal Audit Committee will be provided with a copy of this report and the 'Opportunities for Improvement and Implementation Plan' for their consideration and relevant inclusion into Council's Internal Audit Plan as they deem appropriate.

Internal Audit Committee considered the report at its meeting of 21 January and noted progress on the implementation of the improvement plan.

13 Council's management team has commenced a 'Promoting Better Practice' review under the Division of Local Government (DLG) template and DLG advise that an independent review will be carried out in the new year.

DLG staff visited in week of 6 December. DLG currently finalising the report.

14 A briefing session will be held in December 2010 to update Council on the progress of these opportunities for improvement.

Completed via report to 16 December 2010 meeting.

15 Receive a further report setting out the works still remaining to be completed at the Administration building and costs of completing these works.

Reported to 16 December 2010 ordinary meeting

Implementation Date / Priority: As set out in the table. Recommendation: 1. That Council note the current status of the implementation of improvements identified.

2. That a further report be prepared for Council updating the status of the improvement plan implementation following receipt of the Purchasing Review report from Local Government Procurement.

Steve McGrath General Manager

- 32 -

Attachments:

- 33 -

- 34 -

- 35 -

- 36 -

- 37 -

- 38 -

- 39 -

- 40 -

- 41 -

- 42 -

- 43 -

- 44 -

- 45 -

- 46 -


CITY SERVICES DEPARTMENT REPORTS

CS11/25 YARRAWARRA CREEK, ARRAWARRA - NORTHERN FOOTBRIDGE LICENCE TRANSFER

Purpose: To endorse the transfer of the current northern footbridge licence, Yarrawarra Creek, to Council subject to reconstruction of the footbridge by a private proponent to the relevant Australian Standard for public use and in accordance with Council design requirements. Description of Item: Background In 2005 the owners of the Arrawarra Caravan Park denied residents access through their land to reach the public footbridge to the beach. As the caravan park is in private ownership Council had little scope, other than through negotiation (which was unsuccessful) to redress this. To provide beach access, Council constructed a walkway to a second private footbridge upstream (referred to in this report as the northern footbridge), and continued the walkway through the Coffs Coast Regional Park to the beach (see Map 1). Over time, community support for this access option declined due to the distance involved (approximately 800metres) and the community's desire to have the caravan park access reinstated. Failing the caravan park access being reinstated, the community's preference was that Council construct a new public footbridge close to the village. Council undertook extensive investigation of the problem, including a study into the feasibility of constructing another new bridge close to the village. Based on this study the cost to Council of developing a new bridge was considered to be prohibitive into the foreseeable future and no further action was undertaken. The owners of the caravan park subsequently leased the facility and the current lessees restored public access to their footbridge. This access is not however guaranteed long term and is at the discretion of the caravan park operator. In 2007 it was ascertained that the private northern footbridge Council had been promoting had no public access provisions within the licence and that the bridge was not of a suitable standard for public use. Council, acting upon advice from its Insurers, ceased to promote this bridge as a public access point and requested that the Crown Lands Division (CLD) not transfer the licence should the bridge licencee sell their property, on the grounds that the bridge did not adjoin the private property but adjoined public reserve on both sides of the creek. This view was supported by CLD. Current situation Council has been approached by the new owner of the property that previously held the northern footbridge licence, with a proposal that to repair the bridge and facilitate the transfer of the licence and maintenance responsibility to Council. This offer being contingent on Council's commitment to retain the bridge in this location into perpetuity. CLD have indicated they have no intention of transferring the licence to the new owner and will terminate the licence and remove the structure if it is not required by Council.


CS11/25 - Yarrawarra Creek, Arrawarra - Northern Footbridge Licence Transfer (Cont'd) In late 2010 the CLD wrote to Council requiring clarification of our position in relation to the northern footbridge. They advised that they would commence removal of the footbridge in 2011 if Council was not interested in taking up the licence. In February 2011 Council undertook a survey of residents in Arrawarra to determine the level of community support for the footbridge. Community views were split on the issue with 26 signatories supporting and 45 opposing. It should be noted however that verbal comments from some people opposing indicated that they had assumed, from the survey form, that if they gave support for the northern footbridge Council would never give consideration to a new bridge within the village itself. On explanation that Council would still seek to condition access to a new footbridge in the village, in conjunction with any redevelopment of the Arrawarra caravan park, of the northern bridge, they indicated that they would consider supporting the northern footbridge in the short term. Sustainability Assessment: Environment

The transfer of the licence would have no environmental impact. Construction of the footbridge itself would have temporary impacts associated with constructiing within a waterway however these are not considered to be long term and could be ameliorated during construction. The proponent would have to acquire all necessary permits and approvals to undertake the works and environmental management/protection measures would form part of the conditions associated with these approvals.

Social A public footbridge as per the proposal would provide a guaranteed public access should public access once again become unavailable through the caravan park. If this occurred, it is unlikely that Council would have funding in the foreseeable future for a new bridge. Notwithstanding the above, the northern footbridge would augment the range of recreational opportunities available at Arrawarra and could form part of a scenic circuit walk. Civic Leadership This proposal works towards achieving the outcomes identified within the Coffs Harbour 2030 Strategic Plan and is directly connected to the themes "Places for Living. The proposal will assist in ensuring that:

o We promote healthy living and safe communities; and

o We protect and expand public spaces and facilities and ensure they are accessible and safe for all.

o Create and extend walking trails and other opportunities for environmental experiences

These are identified as Strategies in the 2030 Plan and Council is specified as both provider and facilitator.


CS11/25 - Yarrawarra Creek, Arrawarra - Northern Footbridge Licence Transfer (Cont'd) Economic

Broader Economic Implications Enhancing visitor facilities will increase the regions appeal as a Holiday destination with flow on economic benefits. Delivery Program/Operational Plan Implications Transfer of the licence will have minimal cost implications for Council. The new bidge will attract an annual licence fee to CLD of approximately $400. Construction of the new bridge would be wholly at the proponent’s expense. The new footbridge would be designed and constructed to minimise Councils future maintenance burden.

Consultation: External In January 2011 survey forms were mailed to the owners of a total of 62 properties in the Arrawarra Beach area, seeking community opinion regarding the proposal to transfer care and control of a private footbridge to Council enabling public access to Arrawarra Beach. A total of 52 survey forms were lodged, represented 70 signatories and including three unsigned forms and several forms lodged by people living outside the survey zone. It should be noted that two of the signatories who opposed the proposal on their single survey form also lodged a written submission indicating their “qualified support” for Council assuming care and control of the northern bridge. This support was given on the proviso that Council continue to pursue an alternate bridge option that enabled more direct access, was safe, convenient and would result in minimal environmental impacts. Given the nature of the response, these two signatories have not been included in total numbers for or against the proposal. A total of 29 forms or submissions were lodged opposing the proposal, representative of 45 signatories (including two unsigned forms). A total of 23 forms representing 26 people indicated support for the proposal (one of these forms was unsigned). Comments or issues that were raised in support of the proposal included:

Benefits of two beach access points at the north and south of the village;

Current frequent public use of the northern, private footbridge;

Fears that the southern bridge access at the caravan park could at some stage be closed to the public as had been the case in the past;

The attractive nature of the bushwalk provided by the private bridge;

A suggestion that an alternate and additional boardwalk access be provided through a program to train unemployed people;


CS11/25 - Yarrawarra Creek, Arrawarra - Northern Footbridge Licence Transfer (Cont'd)

The need to provide access for visitors who were not guests of the caravan park;

The bridge enabled access to the village for others visiting from the other side of Arrawarra; In regard to opposition to the proposal to provide northern public access, it should be noted that there is evidence that a number of people opposing this proposal appear to hold the view that the northern trail and bridge may eventually become the only beach access point available to the public. Many respondents indicated their expectation that Council would provide public access closer to the village. Other comments or issues raised in opposition to the proposal included:

A perception that grants or other funds would be available for Council to provide the access closer to the village;

A perception that Council’s easement is sufficient to provide this bridge access;

Objection to the approximate 400-metre distance from the village to the northern bridge and 800-metre to 1km distance to the beach;

Fear of the isolation of the northern bridge and access;

Inaccessibility of the northern bridge and trail to elderly, children and to others with restricted mobility;

An expectation that Council would protect public access to the private bridge licensed to the caravan park and/or would secure this access through any future Development Application for the site;

An expectation that Council would assume control of the southern bridge and access;

The current structural integrity of the northern bridge;

The condition of the northern trail and the presence of snakes, ticks and spiders;

The need for Council to mow and maintain the northern trail if this became a public access;

Statements that the beach location at the northern access point was more treacherous and unsafe for swimming than the southern area of the beach;

A fear that the northern access may place in jeopardy a proposed Dunecare regeneration program;

A view that Council should have acquired the caravan park to protect the coast and facilitate access;

An expectation that Council would work with other government agencies to provide a shared pedestrian and cycleway access with a suspended walkway;

An expectation that public access should be unrestricted, safe, convenient and should cause minimal environmental impact;

A view that a $600,000 estimate to construct a new access closer to the village was “extreme” given that the new Urunga boardwalk was built by the LPMA and DECCW for a cost of $400,000, and that Council should be able to access these grant funds for Arrawarra;


CS11/25 - Yarrawarra Creek, Arrawarra - Northern Footbridge Licence Transfer (Cont'd)

A fear that the offer may be related to development potential;

Danger posed by motorcycles using the northern track;

The current goodwill of the caravan park lessees in allowing public access Consultation has also occurred with the NSW NPWS. NPWS indicated that they would be supportive of the licence transfer provided the proposal has demonstrated community support and benefit. Consultation has occurred with the Garby Elders who indicated no concerns, at this stage, with the proposal. Related Policy and / or Precedents: Council maintains numerous footbridges throughout the LGA. Council is committed to providing and promoting opportunities for walking, exercise and non motorized transport alternatives. Statutory Requirements: All statutory and legal requirements would be met in respect of the transfer of the license to Council. Under Clause 65 of the Infrastructure SEPP a Development Application would not required for the new footbridge. A range of permits/approvals would be required to undertake construction of the new footbridge. The proponent would be required to seek all necessary permits and approvals as part of the design and construction process. Issues: A public footbridge as proposed would provide a guaranteed public access to Arrawarra Beach should the caravan park not redevelop or should the caravan park owners deny public access. If the latter occurred, it is unlikely that Council would have funding in the foreseeable future for a new bridge. Council would be taking on the maintenance burden of another footbridge asset however as the bridge would be a new steel structure maintenance requirements are considered to be minimal for at least the next 8-10 years, excluding major damage from flooding or other natural disasters. In this event flood damage monies may be available for remediation. A bridge at this location was not previously supported by the community however this may have been due to the community's desire to have the caravan park access reinstated access or failing this build a new bridge. CDL have indicated that they would probably not issue more than two licenses for Yarrawarra Creek. If Council proceeds with this proposal the two licences will effectively be tied up with little scope for a third licence should Council ever have the funds to build a new bridge closer to the village. However it is likely that the second licence holder (Arrawarra Caravan Park) will at some point construct a new bridge in conjunction with either their redevelopment or when their existing aged structure becomes unusable. At this time Council should seek to ensure public access to the new structure.


CS11/25 - Yarrawarra Creek, Arrawarra - Northern Footbridge Licence Transfer (Cont'd) The future redevelopment of the caravan park is unknown. If redevelopment were to occur Council should consider conditioning a new bridge and formal access as part of the development process. It is likely that any redevelopment would support the need for safe public access to the Beach. The northern footbridge in its current state is not of a suitable standard for public use and Council's Risk Co-ordinator has concerns that, as the bridge adjoins public reserve, we will be liable in the event of accidents/injuries. Our insurers have previously (2007) advised Council that they will not cover Council for accidents occurring on this structure. The Garby Elders have recently advised Council that they may seek the removal of the caravan park footbridge due to impacts on a culturally sensitive site. If this were to occur there will be no ready public access to the beach, other than wading through Yarrawarra Creek. CDL advise that their Minister has grounds to rescind licences and remove structures if they are impacting on listed heritage sites. Implementation Date / Priority: Transfer of the license to Council would be contingent upon reconstruction of the bridge to the appropriate Council standard by the proponent. Recommendation: 1 That Council support the transfer of the northern footbridge licence to Council subject

to reconstruction of the structure to Councils specifications, at no cost to Council, by the proponent.

2. That Council seek a new footbridge within the village in conjunction with any residential redevelopment of the Caravan Park or seek public access provisions in conjunction with any reconstruction of the current Caravan Park footbridge.

3. That Council review the matter if works on the new bridge have not been substantially commenced within 12 months.

- 53 -

Attachments:

Map 1


CS11/26 COFFS COAST REGIONAL PARK - STAGE 2 CHCC LAND ADDITIONS & CAPITAL WORKS PROGRAM

Purpose: To endorse the transfer of Council owned land, as defined in the attached Table of Lands, from Coffs Harbour City Council (CHCC) to the Coffs Coast Regional Park (CCRP) as the Stage 2 additions to the CCRP. To acknowledge that there may be further lands added to the CCRP at a later date that fall outside this stage 2 proposal. To consider request from the CCRP Trust Board for inclusion of high priority CCRP Capital works items within future Council Delivery Plans. To consider a matching funding (with the CCRP Trust Board) allocation within Council's 2011/12 Delivery Plan for the renewal of the Arrawarra Amenity Block. Description of Item: CCRP Stage 2 additions The Coffs Coast Regional Park, gazetted in 2003, is a joint initiative of CHCC and the NSW Office of Environment and Heritage (OEH). Management responsibility is shared in order to protect the areas significant natural and cultural values whilst providing high quality community recreational opportunities and facilities. The management arrangements are outlined in an agreed Memorandum of Understanding (MOU) between CHCC and OEH. The CCRP is be guided by a Trust Board. This Board was established in 2010. The MOU was adopted by Council in November 2002. During the formation of the Regional Park it was agreed that the gazettal was to occur in two stages. The first stage of the gazettal included those land parcels that had been agreed to by all stakeholders and which had no outstanding issues of concern. They included Crown reserves for which Council was the Corporate Trust Manager, other Crown land and National Parks estate. Stage two was to include a number of small parcels of land that had been excluded from the initial reserve design due to unresolved issues and/or timing issues. Council owned lands were to be transferred as part of this later stage. The management of the Park has been operational for eight years and it is believed that the addition of stage 2 CHCC land is now timely. Detailed maps and a table of proposed lands to be transferred are attached to this report. Capital Works Council and NPWS have recently completed an extensive assessment process to identify high priority Capital Works items within the CCRP (see attachment 5). This process has been endorsed by the CCRP Trust Board. The Board has also given in principle support to funding the top eight priorities (within three years), from CCRP Trust Board funds pending agreement on a matching funding allocation from Council. The CCRP Trust Board has made submission to the 2011/12 Delivery Plan in respect of this.


CS11/26 - Coffs Coast Regional Park - Stage 2 CHCC Land Additions & Capital Works (Cont'd) The highest priority item identified in the CCRP Capital Works program is the replacement of the Arrawarra Reserve Amenity Block as part of a wider Reserve improvement program. This was based upon the high cultural significance of the site, opportunities to progress partnerships with the indigenous community, pollution of the SIMP from the septic system and high visitor numbers including commercial operators. The CCRP has lodged a submission seeking a matching funding commitment ($150,000) from Council for replacement of the amenity block and connection to sewer within the 11/12 Delivery Plan. At present the CCRP Trust Account holds funds of approximately $1.45 Million for works within the Regional Park. The CCRP Trust Board holds responsibility for decisions regarding the commitment of these funds. In respect of capital improvements, the current MOU provides no clear direction in relation to Council's contribution towards capital works, other than that an initial funding contribution would be made by NPWS for use by Council to develop capital items (see Attachment 6). To date no major capital improvements have been completed within the CCRP with the exception of the Solitary Islands Coastal Walk (SICW) and associated connections (funded through a combination of CHCC Environmental Levy and CCRP Trust funds), and improvements at Diggers Beach (jointly funded between Rotary, CHCC and the Trust). In these instances funding arrangements were negotiated between the parties on a case by case basis. The Trust funds were committed in 2002. With little expenditure to date, and no agreed program for future expenditure, there may be a risk of Treasury reallocating these funds elsewhere. Sustainability Assessment: Environment

Stage 2 additions The proposed Stage 2 additions to the park will improve the overall management and protection of the reserves natural values. In many cases the additions proposed are small but will assist in defining improved reserve boundaries, and with land management issues such as fire management. In a small number of locations the addition of lands will significantly add to the conservation value of the Regional Park. Capital works The proposed high priority Capital Works would have a positive environmental benefit, particularly the replacement of polluting amenity blocks and connection to sewer. Benefits include reduction of pollutants entering sensitive marine environments; reduction in indiscriminate track formation through protected vegetation; reduction in impacts on sites of cultural significance; protection of sensitive vegetation from vehicles.


CS11/26 - Coffs Coast Regional Park - Stage 2 CHCC Land Additions & Capital Works (Cont'd) Social

Stage 2 additions Joint management of the Regional Park allows for improved development and maintenance of the lands it encompasses, therefore better serving the community by increasing the ability to upgrade recreational areas, walkways and implement important conservation programs. The proposed Gazettal to Regional Park of the stage 2 additions is not expected to result in any change of the current public use and enjoyment of the lands in question. Capital works Completion of high priority capital works items within the CCRP will improve social and recreational opportunities within the CCRP and promote the CCRP as destination for visitors to the region as well as increasing the scope for recreation based commercial opportunities. Civic Leadership This proposal works towards achieving the outcomes identified within the Coffs Harbour 2030 Strategic Plan and is directly connected to the themes "Places for Living” and “Looking after our Environment”. The proposal will assist in ensuring that:

o We promote healthy living and safe communities; and

o We protect and expand public spaces and facilities and ensure they are accessible and safe for all.

o Create and extend walking trails and other opportunities for environmental experiences.

o Ensure land use management policies and practices conserve the region’s unique environmental and biodiversity values.

o Maintain and conserve biodiversity through protected reserve systems and other land conservation mechanisms.

These are identified as strategies in the 2030 Plan and Council is specified as both provider and facilitator.

Economic Broader Economic Implications Stage 2 additions Creation of the CCRP has meant Council is no longer the sole financial contributor to the coastal reserves under its care but is eligible to receive significant State Government funding through the joint management arrangement with OEH. This has increased and improved maintenance and management of the Reserve and extended opportunities to seek alternate funding sources.


CS11/26 - Coffs Coast Regional Park - Stage 2 CHCC Land Additions & Capital Works (Cont'd)

The joint management arrangement in place for the CCRP will result in improved levels of maintenance and conservation outcomes for the identified Stage 2 additions. Capital Works Improving facilities at high profile locations within the CCRP will add value to the region's tourism product and enhance our appeal as a holiday destination. Improved facilities will increase the visitor capacity at these sites and increase opportunities for commercial recreation providers. Delivery Program/Operational Plan Implications Stage 2 additions Costs associated with the Stage 2 additions are estimated to be $15,000. Council will be seeking a funding commitment from the NPWS and the CCRP Trust Board for these costs. It is recommended that proceeding with the Stage 2 additions be subject to this funding agreement. Capital Works Committing to contributing matching funding to the eight high priority items identified by the CCRP Trust Board would have a significant impact on the four year Delivery Plan. Initial estimates place this cost at $654,000 over the four years. Whilst Council could seek to offset this contribution through grants, there is no guarantee that grant funding opportunities would be available or that projects applied for would be successful. In the case of amenity blocks, minimal grant opportunities have been identified.

Consultation: 1 Stage 2 additions Detailed negotiation has occurred between CHCC and the NSW NPWS regarding Stage 2 additions. Attachments 1 and 2 detail those lands agreed to by both parties. Detailed consultation has also occurred with Coffs Water regarding the implications of the Gazettal to their business needs. It was determined that an amendment to the MOU to address their concerns would be sufficient for their endorsement of the Stage 2 additions. The Table of Lands and associated maps were tabled at the 22 February 2011 CCRP Trust Board meeting. The Trust Board recommended:

- That the Trust Board endorse the amendment of the MOU as a mechanism to enable Stage 2 additions to occur;

- That the Trust Board recommend to Council that Stage 2 additions proceed on the basis of the endorsement of the proposed amendments and ;

- That the Trust Board, NPWS and Council initiate a review of the MOU with recommendations to be considered by the Trust Board in late 2011.


CS11/26 - Coffs Coast Regional Park - Stage 2 CHCC Land Additions & Capital Works (Cont'd) No external community consultation has occurred as the lands involved are generally small holdings adjoining the existing CCRP. Impacts of the transfer on the communities use and enjoyment of the lands are therefore considered to be negligible. Capital works Consultation has occurred between NPWS, Council and the CCRP Trust Board regarding capital works priorities within the CCRP. NPWS and the Trust Board have flagged the potential for matching contribution from CHCC for capital improvements however this has not yet been endorsed by Council. NPWS and the Trust see significant benefits for the CCRP in a cost share arrangement. Internal comments A majority of the lands proposed to be transferred are classified as community land under the Local Government Act, which generally prohibits the disposal of such land. However Section 45(4) of the Act specifically allows the transfer of community land to the CCRP. The costs of transfer should not be paid by Council. Coffs Harbour Water staff have been consulted over the contents of this report and agree with its content and recommendation in relation to amending the MoU. Related Policy and / or Precedents: Council is committed to the CCRP partnership with OEH. The partnership has been successfully operating for over eight years with significant management gains being achieved within the Park. The CCRP (dedicated in October 2003) is a joint initiative between Council and the NPWS with management responsibility shared between the two agencies, as outlined under a Memorandum of Understanding, and operating under the guidance of the CCRP Trust Board (comprising two Councillors, two Aboriginal representatives, one NPWS representative and two community representatives). Statutory Requirements: Regional Parks are created under the NSW National Parks and Wildlife Act (NPW) 1974 in accordance with Sections 30A and 47O. Sections 145,146 and148 of the NPW Act provide for land to be transferred or gifted to the NPWS. Section 45 (4) of the Local Government Act provides that Council may sell, exchange or otherwise dispose of community land for the purpose of enabling that land to become, or be added to, a Crown reserve or to become, or be added to, land that is reserved or dedicated under the National Parks and Wildlife Act 1974. Road closures would be done in accordance with the Roads Act 1993. All requirements of the Conveyance Act will be complied with.


CS11/26 - Coffs Coast Regional Park - Stage 2 CHCC Land Additions & Capital Works (Cont'd) In relation to Water and Sewer infrastructure, provisions within the NPW Act enables Park management authorities to enter into agreements with infrastructure providers. Issues: Stage 2 Additions 1 Water and Sewer infrastructure

Council through Coffs Water raised concerns that addition of the land parcels to the park could adversely affect its interests relating to sewer, water and storm water infrastructure. To support the Stage 2 additions Council requires a level of certainty in relation to accessing existing and future water and sewer infrastructure and the ability to construct/relocate new infrastructure if required. To provide this certainty it is proposed to amend the existing MOU (see Attachment 4). The proposed amendments will address Council’s concerns relating to the progress of the Stage 2 additions by providing for Council to: 1. Own and insure its existing infrastructure within the Regional Park and will manage

operate and maintain that infrastructure;

2. Install any new infrastructure required for the Regional Park or the City of Coffs Harbour that complies with statutory approval and regulatory processes having particular regard to the environmental and cultural values of the Regional Park;

3. Negate the need for the creation of registered easements in favour of the Council. 2 Impacts on Rates

Only two of the properties to be transferred are rateable. Loss of rates total $1,485.35. To maintain our rate base the rates paid for the lots to be transferred will need to be absorbed by the other rateable properties within the LGA. It is estimated that the impact of this on individual rates will be negligible.

3 Future additions Council and NPWS have identified several parcels of crown land as important future additions to the CCRP (See Maps 1 -6). At this time however no agreement has been reached between OEH and the Crown Lands Division (CLD) regarding any further transfer of Crown holdings to the CCRP. The Crown holdings identified are important strategically to the overall efficient operation and management of the CCRP. It is therefore recommended that Council endorse further dialogue between the NPWS and the CLD regarding transfer of the identified parcels. It is also anticipated that as a result of future development in the coastal strip north of Coffs Harbour lands will be dedicated to Council that may be suitable CCRP additions. There may also be privately held lands that, through other mechanisms, are offered as additions to the CCRP.



To assist in determining which lands may be suitable for addition to the CCRP CHCC and NPWS will establish a number of principles that will guide and inform this process. This approach was endorsed by the CCRP Trust Board at its February 22 2011 meeting as follows: Bring a brief paper on principals for consideration in additions of land in the CCRP to the August meeting, to give guidance to the Trust.

4 Crown Roads In relation to the unformed roads indicated on Maps 1 and 2 Council would need to initiate a road closure process. Prior to commencing this Council would need to seek an upfront agreement from CLD that the land would transfer to NPWS at no cost upon completion of the road closure process. If such an agreement was not forthcoming Council would need to reconsider the matter.

5 Costs Costs associated with the transfer are estimated to be approximately $15,000. Council has no capacity to absorb this cost within current budgets. It is recommended that the transfer of any lands be contingent upon these costs being met by NPWS or the by CCRP Trust Board from funds held.

Capital Works

1 Arrawarra Reserve Amenity Block Council has commenced design and consultation of a Masterplan for the site and currently has funding of $100K for the upgrade of the boat ramp and associated trailer parking improvements (comprising $50K from NSW Maritime and $50K from the CCRP Trust Board). NSW Maritime have indicated that further funding may be available to complete the boat ramp and car parking upgrades once Council has demonstrated substantial progress on the current grant. The CCRP Trust Board has previously recommended that they will provide funds to match the future Maritime funding. Maritime funding cannot be used for amenity block upgrades. The design process has highlighted that the location of the existing Amenity Block is not consistent with the concept Masterplan. The CCRP Trust Board has endorsed the replacement of the Amenity Block as the number 1 capital works priority for the CCRP and recommended that the Trust Board allocate $150000 on the basis of a matching allocation from Council, noting that the current estimate of $300,000 to replace the toilet block would be refined based on project specifications. No detailed design has been undertaken and it is likely that this figure could be reduced.



Section 94 funds are not available for this work and Council staff to date have not identified any grant opportunities for the amenity block replacement. The matter is now urgent as the existing toilet block is located within the coastal hazard zone, is polluting the SIMP, polluting the fish traps, and is a significant maintenance liability due to the need to conduct regular pump outs and the high risk of overflows. In addition its current location may be incompatible with the final boat ramp design and levels required. Ideally the amenity block would be replaced in conjunction with the boat ramp upgrade to ensure seamless integration of the two facilities and integrity of the Masterplan process. While replacement of the Arrawarra amenity block represents good cost benefit to Council, funding priorities for these works has not been tested against other Council Open Space, Recreational Reserves or general amenity upgrades funding priorities. Council could consider inclusion of matching funding for the amenity block renewal in the 2011/12 Delivery Plan however no source of funding has been identified in the Draft Plan.

2 Remaining High Priority capital Works a) Financial arrangements and the need for facilities

The CCRP Trust Board currently holds over $ 1.4 Million in reserve for improvements within the Park. With no guarantee of additional funding from the State being forthcoming the Board is understandably keen, as indicated in their Delivery Plan submission, to maximise community outcomes from expenditure of this money across a range of locations within the Park. The current MOU provides that Council will be fully responsible for the maintenance of recreational assets and NPWS responsible for conservation programs including fire management. Effectively the maintenance burden for all new assets will fall to Council, however this will be the case regardless of whether Council contributes towards their development or whether the CCRP Trust wholly funds new assets. NPWS currently expends over $208K annually on conservation programs. This is far in excess of what Council expended on conservation prior to the creation of the CCRP. Council currently expends $168K on general reserve and facility maintenance If the CCRP did not exist Council would have 100% of the financial responsibility for all Reserve improvements and maintenance programs. Creation of the partnership has significantly reduced Council’s financial burden in respect of the Park and provided for improved levels of service. Regardless of funding arrangements there is clearly a need to undertake upgrades to facilities throughout the Regional Park. In terms of CCRP facility upgrades as a priority across the LGA Council has not yet undertaken a ranking exercise comparing CCRP facilities against non CCRP facilities. However it could be argued that, regardless of where the CCRP priorities sit City wide, in terms of Council's overall priorities CCRP facilities have the capacity to attract significant funding from the CCRP Trust Board. The Trust believes that a 50% contribution from the Board for the identified projects with a matching funding contribution from Council would represent a sound investment on the part of Council. A 50:50 cost share arrangement would certainly enable the development of more facilities than any party could develop as the sole financier.



Council is committed to the partnership with NPWS for joint management of the CCRP. It is important that expectations surrounding funding be clarified to enable the partnership to continue and flourish. Regardless of the intent of the current MOU and any past arrangements there is clearly a need to review the MOU. It is recommended that Council defer a decision on inclusion of the high priority items until such time as the MOU has been reviewed and a clearer position established in relations to expectations surrounding joint funding.

Implementation Date / Priority: The process of transferring the Council lands will commence immediately following the Council resolution to do so. It is anticipated that the process will take many months to complete as one land parcel requires subdivision. Amendment of the MOU in relation to water and sewer matters will be undertaken in conjunction with a full review of the MOU in late 2011. Recommendation: 1) That Council endorse the transfer of the lands identified in Attachment 2 – Table of

lands and shown in Maps 1-6 as Stage 2 additions to the Coffs Coast Regional Park(CCRP) on the basis of the proposed amendment to the Memorandum of Understanding (MOU) in relation to water and sewer matters, and subject to a funding commitment for all costs associated with the transfer from the National Parks and Wildlife Service (NPWS)/CCRP Trust Board.

2) That Council endorse and assist where possible, further negotiations between the NSW Office of Environment and Heritage and the NSW Crown Lands Division regarding addition of the Crown holdings identified in Attachment 3.

3) That Council/NPWS commence a road closure process for identified unformed roads (Maps 1–2), subject to successful negotiations with CLD regarding transfer at no cost to NPWS.

5) That Council advise the CCRP Trust Board that funding is not available in Council's 2011/12 delivery plan for the replacement of the Arrawarra amenity block.

6) That Council and NPWS undertake a full review of the CCRP MOU including clarifying joint funding arrangements for Capital Works as soon as practicable.

7) That Council consider CCRP Capital Works funding in its long term forward financial plan following adoption of a revised CCRP MOU.

Ben Lawson Director, City Services

- 63 -

Attachments:

1 Maps of lands to be transferred

Korora and Sapphire

- 64 -

North Sapphire

- 65 -

Emerald Beach

- 66 -

Woolgoolga

- 67 -

Mullaway

Safety Beach

- 68 -

Arrawarra

- 69 -

2 Table of Lands - Stage 2 Additions Description Location Rate value

Lot 5 DP 255457 Arrawarra Beach Road, Arrawarra Non-Rateable

Lot 12 DP789273 Arrawarra Beach Road, Arrawarra Non-Rateable

Part of Lot 91 DP 24666 The Boulevarde, Mullaway Non-Rateable

Lot 14 DP 203130 Darkum Road, Mullaway Non-Rateable

Lot 15 DP 243058 Ocean Drive, Safety Beach Non-Rateable

Lot 117 DP 250350 Nicholson Close, Safety Beach Non-Rateable

Lot 129 DP 752853 South Street, Woolgoolga $622.15

Lot 170 DP 752853 South Street, Woolgoolga $863.20

Lot 13 DP 263289 Bosworth Road, Woolgoolga Non-Rateable

Lot 5 DP 253878 Hearnes Lake Road, Woolgoolga Non-Rateable

Lot 142 DP 1118502 North Sapphire Road, North Sapphire Non-Rateable

Lot 163 DP 865612 Crystal Drive, Sapphire Non-Rateable

Lot 107 DP 241476 Elouera Drive, Sapphire Non-Rateable



Lot 13 DP 253782 Warrawee Street, Sapphire Non-Rateable

Lot 5 DP 220009 Sapphire Crescent, Sapphire Non-Rateable



Lot 2 DP 214273 Emerald Avenue, Sapphire Non-Rateable

Lot 107 DP 802533 Emerald Avenue, Sapphire Non-Rateable

Lot 1 DP 841017 Daintree Drive, Korora Non-Rateable

Lot 5 DP 776049 Norman Hill Drive, Korora Non-Rateable




Lot 17 DP 877897 Breakers Way, Korora Non-Rateable

Unformed Road Macauleys Headland N/A

Closed Road

Lot 7206 DP 1114505

East of Opal Cove Resort N/A

- 70 -

Attachment 3 Future desirable Crown land additions Legal Description Location Lot 100 DP 46696 Woolgoolga

Lot 101 DP 46696 Woolgoolga

Lot 7305 DP1163086 Woolgoolga









Lot 7055 DP 1095146 (Part of) Woolgoolga





CR DP 74543 Woolgoolga

Lot 7031 DP 1134658 Emerald Beach

Lot 7303 DP 1141995 Emerald Beach

Lot 530 DP 720446 Coffs Harbour North

- 71 -

Attachment 4 Proposed Amendments to the MOU in respect of water and sewer Page 3…..Replace clause 7.5 with…. "Council is primarily responsible for the provision and maintenance of all facilities and infrastructure, such as picnic areas and playgrounds, maintenance of areas of open space, operation maintenance and installation of sewer, water and stormwater infrastructure such as pipelines, pump stations, inlet and outlet structures which service both Coffs Harbour and the Regional Park, public toilets, provision of access including walking tracks and roads and provision of secretariat services to the Trust Board." Page 12……Insert in existing line in section 1.4 under the Insurance heading

Task Department of Environment Climate Change and Water

Council Other

Assets The DEC GIO policy covers assets in the park.

The Council policy covers Council sewer, water and stormwater infrastructure in the park.

Page 16 …….Insert in schedule 2 under assets as a new line:

Task Department of Environment Climate Change and Water

Council Other

Council sewer, water and stormwater infrastructure

DECCW acknowledges the historical existence of Council's infrastructure and the potential requirement for the installation of new infrastructure which supports either or both the Regional Park and the City of Coffs Harbour. DECCW recognise the Council ownership of its infrastructure and Council's requirements and responsibilities for operation maintenance and potential future installation of further infrastructure within the Regional Park.

Council will own and insure its existing infrastructure within the Regional Park and will manage operate and maintain that infrastructure and install any new infrastructure required for the Regional Park or the City of Coffs Harbour and will comply with statutory approval and regulatory processes having particular regard to the environmental and cultural values of the Regional Park. The intention of this clause is to negate the need for creating registered easements in favour of the Council, but to provide the Council with similar rights and benefits as part of the joint management of the Regional Park.

- 72 -

Attachment 5 List of eight High Priority Capital Works

Priority Project Estimated

Total Budget

CCRP Trust Board

Funding

CHCC Funding sought

Confirmed Funding

Other Possible Funding Source /

Comments

1 Arrawarra day use area Amenity Block

$300K $150K $150K 0 No Grant sources identified.

2 Stage 2 - boat ramp and parking Arrawarra day use area

$200K $100K $100K 0 Eligible to apply for the Recreational Boat User’ Grants reopening 2012/13.

3 Stage 3 - upgrade Arrawarra day use area including picnic facilities and cultural art work.

$350K $160K $160K 0 $30K Commonwealth Indigenous Culture Support Program Grant application lodged. No confirmation of funding to date.

4 Toilet Diggers Beach $300K $150K $150K 0 No Grant sources identified. Septic system is polluting Reserve and the marine environment.

5 Coastal Walkway $508K $150K $24K $ 80 K CHCC Environmental Levy 2011/12

$254 Our Living Coast Grant.(not confirmed) Future Environmental Levy Programs.

6 Small Access ways $40K $20K $20K 0 Annual amount required to slowly upgrade access ways.

7 Minor playground improvements / seating

$30K $15K $15K 0 Annual fund to replace worn playground equipment and install additional seating at playgrounds and reserves.

8 Diggers Beach southern viewing platform and beach shower

$100K $35K $35K $30K obtained by CHCC from Emergency

Disaster Relief

No Grant opportunities identified.

Total $1.828 M $780K $654K $110K $284K (not yet confirmed)

- 73 -

Attachment 6 Extract from MOU regarding financial arrangements 11.1 Each agency will contribute financially to the formation and day-to-day running of the

Regional Park.

11.2 A Trust Account will be established by Council to assist in the management of funds allocated to the Trust Board.

11.3 Specific areas of fiscal responsibility are detailed in Schedule 2 of this Memorandum. Schedule 2: Management and Operational Responsibility

Task Department of Environment & Conservation

(DEC)

Council Other

Funding

Management of funds for the Trust Board

Will manage funds provided by State Government treasury through DEC.

Some capital works funds will be provided to a Trust Account established by Council for use by Council to upgrade visitor facilities and other related works.

Will manage funds provided by Coffs Harbour City Council.

Council will establish a Trust Account for the Board of Management. This Trust Account will be utilised to place all funds directed to the Trust from both agencies and externally from grants.

Council will administer on behalf of the Trust Board the Trust Account.


LAND USE HEALTH & DEVELOPMENT DEPARTMENT REPORT

L11/12 COFFS HARBOUR CITY LOCAL ENVIRONMENTAL PLAN (LEP) 2000 DRAFT AMENDMENT NO. 34 - NORTH COFFS AND DRAFT NORTH COFFS DEVELOPMENT CONTROL PLAN (DCP)

Purpose: The purpose of this report is to present to Council a draft LEP Amendment (refer Attachment 1) and draft DCP for the North Coffs Urban Investigation Area (separately attached). The subject land is identified as a Priority 1 (short term) Urban Investigation Area by Council’s “Our Living City” (OLC) Settlement Strategy. A Local Environmental Study (LES) has been prepared for the subject land. This report recommends that Council request NSW Planning and Infrastructure (P&I) (formerly Department of Planning) to allow the draft Plans to be exhibited under Section 57(1) of the Environmental Planning and Assessment (EP&A) Act 1979. It is also recommended that the draft North Coffs DCP be placed on exhibition concurrently, and that Council is informed of the outcomes of the public exhibition by a future report. Description of Item: On 2 November 2006, Council resolved that the overall North Coffs Urban Investigation Area was to be treated as three separate LEP Amendments, being: LEP Amendment No. 34 – North Coffs (this Amendment); LEP Amendment No. 37 – Big Banana (Summit) Lands in North Coffs (gazetted on 26 June

2009); LEP Amendment No. 38 – Pacific Bay (Thakral) lands in North Coffs (in progress). LEP Amendment No. 37 and draft LEP Amendment No. 38 are discussed later in this report. On 8 June 2006, the Department of Planning determined that a LES was required for draft Amendment No. 34 to proceed. This project was advertised for tender, consultants were engaged in April 2008 to carry out the project. The draft LES has been completed. All documents relevant to this report have been made available to Councillors. The North Coffs Urban Investigation Area comprises an area of 304 hectares. A map showing the North Coffs subject land (also showing Pacific Bay (Thakral) and Summit Lands locations) is shown below:


L11/12 - Coffs Harbour City Local Environmental Plan (LEP) 2000 Draft Amendment No. 34 - North Coffs and Draft North Coffs Development Control Plan (DCP) (Cont'd)

Sustainability Assessment: Environment

Environmental sustainability is primarily discussed in the LES, which addresses issues including: Flora and Fauna; Bushfire Risk Assessment; Stormwater Management and Water Quality; Slope, Soils and Topography; Hydrology, Flooding and Drainage; Water Sensitive Urban Design (WSUD); Climate Change; and Ecologically Sustainable Development.

The recommendations of the LES indicate that land identified to be rezoned for residential purposes are not significantly impacted by environmental constraints, while some other lands which are more environmentally constrained have been identified to be rezoned to an Environmental Protection zone.


L11/12 - Coffs Harbour City Local Environmental Plan (LEP) 2000 Draft Amendment No. 34 - North Coffs and Draft North Coffs Development Control Plan (DCP) (Cont'd) Social

The LES addresses social sustainability issues, including: Traffic and Access; Archaeology and Heritage; Visual Analysis; Noise Assessment; and Establishment of new areas of Public Open Space. The recommendations of the LES provide positive social outcomes such as close proximity of the proposed residential areas to existing services, increased open space areas, and conservation of Coffs Harbour’s natural amenity.

Civic Leadership

The draft documents have been prepared in accordance with the EP&A Act and relevant Council Strategies and Policies, primarily Coffs Harbour City LEP 2000, the Mid North Coast Regional Strategy and OLC Settlement Strategy 2008. The proposed LEP Amendment provides opportunities to address objectives and strategies identified by the Coffs Harbour 2030 Plan, for example: Objective: We use best practice urban design and infrastructure development to promote

sustainable living.

Strategies: Focus development on central medium density urban centres; Create balanced pedestrian friendly communities with a mix of residential, business and services.

Economic

Economic sustainability issues addressed by the LES/LEP and DCP include: an approximate dwelling yield of 577 dwellings; infrastructure (water and sewer provision); and proposed medium density and residential lands in the appropriate precincts which will

encourage economic growth. Rezoning will provide a broader range of housing choice for the market within close proximity to existing services, facilities and infrastructure of Coffs Harbour.


The draft rezoning will promote economic growth by facilitating residential and tourist land uses which are made permissible by the draft LEP Amendment. The draft rezoning is also consistent with the economic objectives of the OLC Settlement Strategy, 2030 Plan and Mid North Coast Regional Strategy.



Delivery Program/Operational Plan Implications Council has funded the preparation of the LES, draft LEP Amendment and draft North Coffs DCP. There are no implications to Council’s current Operational Plan.

Consultation: Should Council resolve to progress the draft rezoning, the draft Amendment, the draft DCP and associated documents will be exhibited according to the provisions of the EP&A Act. Input to the draft Plan will be sought from the public, government departments and agencies, and from all Council departments. Consultation already undertaken: The following government agencies provided input regarding the preparation of the LES, required under Section 62 of the EP&A Act: Department of Planning and Infrastructure; Department of Industry and Investment; Office of Environment and Heritage (formerly Department of Environment, Climate Change and

Water); Telstra; and RTA. A public meeting was held on 18 June 2008 to discuss the rezoning process and the long term future of the study area with community stakeholders. This meeting was run by Council staff and consultants GeoLink. A further public meeting is proposed to be held during the exhibition period, should Council resolve to exhibit the draft LEP Amendment. Related Policy and / or Precedents: The following policies and statutory documents are relevant to this proposal: Coffs Harbour City LEP 2000; OLC Settlement Strategy 2008; Mid North Coast Regional Strategy and Growth Area Maps; EP&A Act 1979 and Regulations; Coffs Harbour 2030 Plan; Coffs Harbour City Koala Plan of Management 1999; and P&I Section 117 Directions. Statutory Requirements: Following changes to the EP&A Act, Council was requested by the former DoP to apply to convert the project to a Planning Proposal, in accordance with the new provisions of the EP&A Act. The project is now a Planning Proposal following acceptance of that request by the former DoP.


L11/12 - Coffs Harbour City Local Environmental Plan (LEP) 2000 Draft Amendment No. 34 - North Coffs and Draft North Coffs Development Control Plan (DCP) (Cont'd) Issues: Identification of Developable Land and Constraints to Development

The LES addresses the development opportunities and constraints of the study area, and describes the primary factors which identify developable land. Land which is considered to be subject to significant social, economic or environmental constraints has not been recommended as being suitable to rezone for residential development. Constraints which limit development are: (a) Public Infrastructure Supply Constraints

The provisions of Council’s Water Supply Strategy allow for provision of reticulated water to a height of 55 metres AHD (Australian Height Datum) above sea level. The study area is serviced by the Red Hill and Macauleys Headland reservoirs. The land proposed to be rezoned will be serviced by the Macauleys Headland facility. Depending on reservoir levels, inconsistent water pressure has been experienced by some properties in the area which are above 55 metres AHD above sea level. Allowing for new development above this elevation may not guarantee water supply to those properties, urban development is therefore constrained to land which is below this elevation. Much of the study area is above the 55 metres AHD contour, which impacts upon 173 hectares (56%) of the study area. This land is unable to be serviced by Council’s water supply system. These lands are consequently considered to be unsuitable for residential development and have not been rezoned accordingly.

(b) Visual Context and Amenity The LES includes an assessment of the visual attributes of the study area and the likely impacts of the proposed rezoning upon the visual amenity of the land. Retention of existing agricultural land uses is appropriate as it forms an important component of Coffs Harbour's natural backdrop. The retention of the natural setting of Coffs Harbour was supported by the community during the consultation process for Council's OLC Settlement Strategy and Council’s 2030 Plan. Factors which influence the visual amenity of the land include: the North Coast Railway; the Pacific Highway; the proposed Pacific Highway Bypass; vegetation pockets; significant ridgelines; the rural landscape; and the potential of the existing landscape to absorb change.



The key finding of the Visual Assessment was that:

“Ridgelines and middle and upper slopes generally above the 60 metre AHD contour are unsuitable for any form of urban development due to the very high visibility, steep gradients and low visual absorption ability”.

(c) Pacific Highway Upgrade

The Pacific Highway Upgrade Strategy is a key issue concerning this rezoning proposal. Specific aspects of the Strategy which impact upon this rezoning are: the alignment of the Pacific Highway Bypass corridor; intersection improvements/upgrades at:

Diggers Beach Road; West Korora Road; and Bruxner Park Road.

The LES provides recommendations to address these issues. Council has undertaken consultation with the RTA, discussing the viability and practicality of the recommendations. The LES also offers other feasible options should the primary recommendations not be supported by Council or the RTA. Council will continue to liaise with the RTA during the course of the exhibition and the outcomes will be reported to Council. The western precincts considered by the LES will be located between the North Coast Railway and Pacific Highway, after the bypass is constructed. This will then be a fragmented, relatively small area located between two major transport corridors. which is likely to produce detrimental impacts in terms of noise, vibration, visual impacts and social isolation. The RTA has requested that Council rezone land identified as the Coffs Harbour Pacific Highway Bypass. This land is shown on the draft LEP map, proposed to be rezoned as Special Uses 5A Classified Road.

(d) Flora and Fauna Conservation

A comprehensive Flora and Fauna Report has been prepared. This report assesses the ecological value of the Investigation Area and identifies areas of vegetation which should be retained to protect the ecological value of the land. Native Vegetation occupies only 23 hectares (7.5%) of the 304.6 hectare Investigation Area, which is distributed across the site in small remnants. Some of these remnant areas are habitat for various species of native fauna, including three threatened species of bat in the Jordans Creek area. It is recommended by the LES that no areas of native vegetation, or vegetation which has value as wildlife corridors or buffers, be rezoned for development purposes.



(e) Bushfire Protection The LES has been subject to a Bushfire Risk Assessment. The primary influence on bushfire risk is the steeply sloping topography which is widespread throughout the study area. Approximately half of the study area contains slopes of over 18 degrees, which is a limiting criteria of where development can occur in relation to the provision of Asset Protection Zones.

(f) Slope, Soils and Topography As described in the previous paragraph, sloping terrain is a significant feature of the study area. This slope ranges from moderate to very steep, with gradients between 10% and 50%. Any proposed development in steep lands must take into account the risk of slope stability and erosion particularly during construction of infrastructure such as roads. Although some parts of the study area are considered unsuitable for residential development due to very steep slopes, there is potential to develop in the nominated sites providing that appropriate slope stability management strategies are undertaken.

(g) Potential Agricultural Impacts Current land uses in the Investigation Area include grazing lands, blueberry and banana plantations. The Department of Industry and Investment advised that some of the localities being considered by Council include existing horticultural enterprises and these may risk having land use conflict due to factors such as spray drift, noise, odour and dust. The Department of Industry and Investment also recommend a minimum of 150 metre wide buffer between banana lands and urban areas. The LES has therefore discounted potential development precincts in the vicinity of West Korora Road from rezoning. This constraint excludes an area of 11.8 hectares from the rezoning proposal.

(h) Areas of Environmental Significance Due to the significance of the flora and fauna on various sections of the site and the constraints to development identified by the LES, it is appropriate that some parts of the study area are identified as being of environmental significance. This is particularly relevant to three allotments located between the Big Banana and Island View Close, being: Lot 12, DP1080763; Lot 3, DP270533; and Lot 151, DP594047. These lands are subject to significant environmental constraints, these constraints are located on the following map:



A list of these lots and constraints is as follows: Lot 12, DP1080764

55 metre AHD servicing limitation; Location of a disused quarry which includes steep slope and potential stability

issues; Native Vegetation identified as Primary Koala Habitat by Council’s Koala Plan of

Management; No access from Pacific Highway, current access to this allotment is by right-of-way

through Lot 151, DP594047; and Contributes to protection of visual amenity.

Lot 3, DP270533

55 metres AHD servicing limitation; Primary Koala Habitat/Native Vegetation; Recognised as an Asset Protection Zone (APZ) and noise buffer to the Summit

Development, important that this APZ and noise buffer be retained; Steep slope; and Contributes to protection of visual amenity.



Lot 151, DP594047

55 metres AHD servicing limitation; Primary Koala Habitat/Native Vegetation; Steep slope; Noise and vibration buffer; and Contributes to protection of visual amenity.

The LES recommends that these lots be zoned consistent with the following map:

The Remainder of the Study Area Although a significant proportion of the study area is not subject to servicing constraints, the LES recommends retention of the existing 1A Rural (Agriculture) zone. This recommendation applies to the northern and western areas (west of the current western extent of Mastracolas Road). Reasons for exclusion of these lands include:

(a) Infrastructure Limitations

For lands in the western part of the study area to be rezoned, existing access roads will be subject to significant upgrades. The primary access roads are Mackays Road which will involve a major upgrade of the Mackays Road level railway crossing; and an extension of Mastracolas Road currently unconstructed. The cost of construction of the Mastracolas Road extension is estimated to be in excess of $4 million.



(b) Lack of Suitable Transport / Access Infrastructure The Mackays Road level crossing is currently the only access point to the western precincts. Although, the current crossing is sufficient to provide for access to existing properties, should residential development occur, the current level crossing requires substantial upgrade to a grade-separated situation (overpass/underpass). This cost is estimated to be at least $5 million. Given the limited amount of unconstrained land, the total cost of at least $9 million to provide this infrastructure is cost prohibitive, making development of the western precincts economically unfeasible.

(c) Proximity to Existing Services The western and northern precincts are isolated from community service facilities such as shopping centres, public transport and sporting facilities. This situation is also a function of insufficient road access (see above). The eastern precincts are more favourably located, being in close accessible proximity to: major shopping centres (Park Beach Plaza and Homebase); public transport routes; and community facilities. The Mastracolas Road/Pacific Highway roundabout has been designed of a sufficient capacity to accommodate traffic generated by the new medium density precincts. No upgrade to this roundabout is required under this draft LEP.

Other Urban Release Projects in the Locality (a) Pacific Bay (Thakral) – Western Lands

A proposed rezoning is currently being undertaken on lands owned by Pacific Bay (Thakral), adjacent to this rezoning. The project is known as draft Amendment No. 38 Pacific Bay (Thakral Lands in North Coffs). The draft Amendment for North Coffs has been prepared taking into account the contents and nature of the Pacific Bay (Thakral) rezoning to ensure consistency and compatibility of proposed zonings and permissible land uses. The Pacific Bay (Thakral) land is also subject to a Part 3A Development Application (DA) (Major Project MP06_0188, Council DA 349/10). The DA and draft LEP Amendment have been publicly exhibited, the application has not yet been determined as the applicant is currently undertaking amendments to the application.



(b) Big Banana – Summit Lands Council has previously adopted Coffs Harbour LEP 2000 Amendment No. 37 and the Summit Lands Development Control Plan, which enables extension of the existing Summit Lands development (a Community Title Estate). This LEP has been gazetted by the Minister. The location of the Pacific Bay (Thakral) and Summit lands, in relation to the eastern part of the North Coffs Investigation Area is shown on the following map:


L11/12 - Coffs Harbour City Local Environmental Plan (LEP) 2000 Draft Amendment No. 34 - North Coffs and Draft North Coffs Development Control Plan (DCP) (Cont'd) The Draft LEP Amendment

The subject land is currently zoned: Rural 1A (Agriculture); Business 3D (Tourist Service Centre); Special Uses 5A (Council Purposes); Environmental Protection 7A (Habitat and Catchment).



Proposed Zones The LES provides recommendations for land zoning. The map showing the recommended zones is shown below:

The draft LEP recommends that some lands are rezoned to: Residential 2B Medium Density; Residential 2E Tourist; Classified Road 5A; Open Space 6A Public; Environmental Protection 7A Habitat and Catchment.


L11/12 - Coffs Harbour City Local Environmental Plan (LEP) 2000 Draft Amendment No. 34 - North Coffs and Draft North Coffs Development Control Plan (DCP) (Cont'd) Potential Dwelling Yield

The LES indicates that the lands proposed to be rezoned to Residential 2B Medium Density and Residential 2E Tourist have a maximum potential for 577 dwellings, based primarily on Council’s ability to supply water and sewer infrastructure to the North Coffs area. The potential dwelling yield from the North Coffs Urban Investigation Area is generally consistent with the dwelling yield forecast by Council’s OLC Settlement Strategy. The OLC Settlement Strategy identified a potential maximum dwelling yield of 986 dwellings. This figure comprises yields from North Coffs, Pacific Bay (Thakral) lands and the Big Banana (Summit) lands inclusive. The potential maximum dwelling yields from all these lands within the entire North Coffs Urban Investigation Area is expected to be 738 dwellings. This shortfall is considered to be acceptable given the effect of the constraints identified by the LES. Also, the alignment of the Pacific Highway Bypass was not finalised when the OLC Settlement Strategy was prepared. The finalised bypass corridor location, which is recognised by this draft Amendment, has contributed to possible residential candidate lands being excluded as residential precincts.

Rationale for the Rezoning and Zones Recommended

The North Coffs Urban Investigation Area is recognised by Council’s OLC Settlement Strategy as a growth area. The North Coffs Urban Investigation Area also accords with the Growth Area maps in the Mid North Coast Regional Strategy. The rationale for the zones selected are explained in the LES, however the selection of suitable urban release land involve analysis of environmental constraints and existing planning strategies, which include: ability to provide and maintain infrastructure (discussed further in this report); traffic and access management; agricultural impacts; amenity; flora and fauna; bushfire risk; hydrology, flooding and drainage; slope and topography; Pacific Highway Bypass Strategy; scope for provision of public transport; and community facilities.


L11/12 - Coffs Harbour City Local Environmental Plan (LEP) 2000 Draft Amendment No. 34 - North Coffs and Draft North Coffs Development Control Plan (DCP) (Cont'd) Proposed Zones in the Big Banana Tourist Facility

The LES recommends rezoning of a significant portion of the Big Banana site. The draft LEP Amendment proposes rezoning of some land currently zoned Rural 1A Agriculture to Residential 2E Tourist. Land which is subject to environmental, servicing or other constraints will retain its current 1A zone. The draft LEP Amendment reflects the expanded tourist-related land uses of the Big Banana site, and will accommodate possible future tourist-residential land uses on the site. The land currently zoned Business 3D Tourist Service Centre retains its current zone, consistent with Council’s Business Strategy.

Traffic and Access Management The LES includes a Traffic Access Options report, the objectives of which were: Consider opportunities to the study area with consideration to the existing Pacific Highway,

the Coffs Harbour Bypass corridor, the North Coast Railway and topography. Existing and future traffic management issues, including road hierarchy, road design, major

intersection treatments, and pedestrian/cycling links.

Flooding, Drainage and Stormwater The study area drains to three separate catchments, being: Coffs Creek (western and southern parts of the site); Jordans Creek (southern side of West Korora Road); and Charlesworth Bay (northern area of the site). The LES addresses stormwater management objectives and strategies which include water detention, flood mitigation measures and Water Sensitive Urban Design (WSUD).

The Draft North Coffs DCP Based on the zoning recommendations of the LES, a draft Development Control Plan for the North Coffs Release Area has also been prepared. The draft DCP reinforces the overall planning strategy for the area, and provides development guidelines and controls relevant to the North Coffs precincts.



Features of the draft DCP (a) Masterplan

Provides an overall strategy for the area, including: - Urban Design Strategy; - Sustainability Principles and Urban Capability; - Stormwater Management and Water Quality; - Water Supply and Sewer Servicing Strategies; - Cultural Heritage; - Traffic and Transport Strategy; - Natural Environment Strategy; - Open Space/Public Recreation Strategy; and - Road Design and Pedestrian/Cycleway provision.

(b) Planning and Development Controls

This section indicates the planning and development controls which can achieve the aims and objectives of the Masterplan, which include: - Building Design Guidelines (e.g. density, maximum height, setbacks); - Landscaping and Private Open Space; - On-site parking provisions; - Signs; - Energy Efficiency (including BASIX requirements); - Bushfire Protection; and - Noise mitigation.

Developer Contributions Plan

A Developer Contributions Plan for the North Coffs Release Area will be presented to Council in a future report, should Council resolve to exhibit the draft LEP Amendment and DCP. This will allow for any changes to the rezoning which may be made (e.g. the total lot yield) following the exhibition period.

Implementation Date / Priority: Should Council resolve to place the LES, draft LEP Amendment and draft DCP on public exhibition, P&I will be requested to allow the exhibition to proceed. This will be done as soon as possible. While a certificate is not required (as in Section 65 of the EP&A Act, now repealed) it is still required to obtain permission from P&I to allow public exhibition. When this permission from P&I is received by Council, the documents will be placed on exhibition.


L11/12 - Coffs Harbour City Local Environmental Plan (LEP) 2000 Draft Amendment No. 34 - North Coffs and Draft North Coffs Development Control Plan (DCP) (Cont'd) Recommendation: 1. Council adopt draft Coffs Harbour City Local Environmental Plan 2000 (Amendment

No. 34) for exhibition purposes.

2. Council adopt draft North Coffs Development Control Plan for exhibition purposes.

3. Council request the Department of Planning and Infrastructure under Section 57(1) of the Environmental Planning and Assessment Act 1979 to allow draft Coffs Harbour City Local Environmental Plan 2000 (Amendment No. 34) to be publicly exhibited.

4. Draft Coffs Harbour City Local Environmental Plan 2000 (Amendment No. 34), draft North Coffs Development Control Plan and supporting documentation be exhibited in accordance with the provisions of the Environmental Planning and Assessment Act 1979 and Regulations.

5. Council is to be provided with a future report providing the outcome of the public exhibition and community consultation.

- 91 -

Attachments:

Attachment 1

ENVIRONMENTAL PLANNING AND ASSESSMENT ACT 1979

COFFS HARBOUR CITY LOCAL ENVIRONMENTAL PLAN 2000 (AMENDMENT NO. 34)

I, the Minister for Planning, in pursuance of section 70 of the Environmental Planning and Assessment Act 1979, make the local environmental plan set out hereunder.

Minister for Planning Sydney, 2011

_______________________ 1. Name of plan

This plan is Coffs Harbour City Local Environmental Plan 2000 (Amendment No 34). 2. Aims of plan

This plan aims to amend Coffs Harbour City Council Local Environmental Plan 2000 so as:

(a) to rezone certain lands to which this plan applies to the following zones: Residential 2B Medium Density; and Residential 2E Tourist Lands; to allow residential and tourism-related uses of the land.

(b) to ensure that any subdivision of, or erection of a dwelling on the land to which this

plan applies is in accordance with the North Coffs Development Control Plan (as in force on the commencement of this plan).

(c) to reserve the future Pacific Highway corridor by rezoning the corridor to Special

Uses 5A Classified Road. (d) to rezone part of the land Open Space 6A Public Recreation to provide for the

recreational needs of future residents. (e) to rezone part of the land Environmental Protection 7A Habitat and Catchment to

protect significant flora and fauna, and retention of scenic values adjacent to the Pacific Highway.

3. Land to which plan applies

This plan applies to land within the City of Coffs Harbour in the vicinity of Mastracolas Road, West Korora Road and the Big Banana Tourist facility; as shown on the map marked “Coffs Harbour City Local Environmental Plan 2000 (Amendment No 34)” deposited in the office of Coffs Harbour City Council.

_______________________

- 92 -

SCHEDULE 1 AMENDMENT OF COFFS HARBOUR CITY LOCAL ENVIRONMENTAL PLAN 2000

[1] Dictionary

Insert in appropriate order in the definition of the map:

Coffs Harbour City Local Environmental Plan 2000 (Amendment No 34)


L11/13 DRAFT COFFS HARBOUR LOCAL ENVIRONMENTAL PLAN 2011

Purpose: The purpose of this report is to provide a status update to inform Council of changes to the draft Coffs Harbour Local Environmental Plan 2011 (draft LEP 2011) since it was last presented to Council in July 2010. The draft Plan, once gazetted, will apply to the entire local government area (LGA) and repeal the provisions of Coffs Harbour Local Environmental Plan 2000 (LEP 2000). The report recommends that Council adopt the draft LEP 2011 as presented and refer the necessary documentation to NSW Planning and Infrastructure (P&I) for certification to enable the Plan to be exhibited. It is further recommended that upon complying with all Certificate conditions the Plan be publicly exhibited in accordance with the P&I. A copy of draft LEP 2011 is attached separately and the supporting maps have been made available for perusal by Councillors. Background: In September 2004 the Minister for Planning announced new planning reforms to create a more efficient planning system. The Standard Instrument (LEPs) Order was introduced as part of this suite of reforms to provide a standard approach to LEP content and writing. LEPs prepared under the standard instrument format will eventually exist for every LGA throughout the State of NSW and are required to be consistent with State and regional directions and strategies in addition to delivering all mandatory development controls. Coffs Harbour City Council, at its Land Use, Health and Development Committee meeting held on 5 July 2007, resolved to endorse the staged process for the comprehensive review of the Coffs Harbour LEP in accordance with the Standard Instrument (LEPs) Order (as amended), and to prepare a new comprehensive LEP to replace Coffs Harbour LEP 2000. Staff have worked in coordination with NSW P&I to ensure the draft Coffs Harbour Local Environmental Plan 2011 instrument and mapping accords with the Standard Instrument Orders. The intent of draft LEP 2011 is to update LEP 2000 by bringing it into alignment with the Standard Instrument LEP format being applied across the State. It is an administrative LEP, and attempts as much as possible to create zones and land use permissibilities that are “like for like” with LEP 2000. The draft Plan was reported to Council on 8 July 2010. At that meeting it was resolved that Council would “seek authority from the Department of Planning to issue a certificate under Section 65 of the Environmental Planning and Assessment Act, 1979 to allow draft Coffs Harbour Local Environmental Plan 2010 to be exhibited” and that “upon complying with all conditions established at Section 65 certification, draft Coffs Harbour Local Environmental Plan 2010 be exhibited for a period of two months”. In accordance with this resolution Council staff have since been negotiating with P&I to gain Section 65 certification to publicly exhibit the Plan. This has been a complex negotiation process, because of such matters as Council’s requests for specific local clauses to allow subdivision in the same manner as is currently permissible with the provisions of LEP 2000, and Part 3A development applications. P&I preferred that Council only formally submit the Section 64 request for a certificate to exhibit the Plan once a number of outstanding matters had been resolved.


L11/13 - Draft Coffs Harbour Local Environmental Plan 2011 (Cont'd) A number of changes have been made to the draft Plan as outstanding matters have been resolved, and progress updates have been reported to the Executive Team and via the General Manager to Councillors. The most recent instruction has been received from P&I via letter dated 23 May 2011. This now allows Council to finalise the draft instrument and maps to allow for formal lodgement of the written Section 64 request. The timing of this report is in accordance with the project timeline established for Council by P&I. Council has accepted grant funding under the NSW Government’s LEP Acceleration Fund to assist with completion of draft LEP 2011. The grant funding is conditional on Council achieving two milestones for the project, being: Completion of a Section 64 submission to P&I by 8 July 2011 seeking a certificate to exhibit the

draft LEP; and Completion of a Section 68 submission (lodgement of the draft LEP with a request that the

Plan be made) to P&I by 24 February 2012. The revised timeframe indicates that P&I requires Council to exhibit draft LEP 2011 for a limited six week period from late September 2011 to early November 2011; with gazettal of the LEP expected by June 2012. In order to meet this revised timeframe, the amendments made over the past 12 months to draft LEP 2011 are reported to Council prior to officially lodging the Section 64 submission with P&I requesting exhibition of the draft Plan. Description of Item: Draft LEP 2011 has been prepared in accordance with the Standard Instrument (LEPs) Order 2006 which was introduced by the NSW Government as part of a greater suite of planning reforms that seek to simplify the NSW Planning System. The Standard Instrument is intended to provide a standard approach to LEP content to be adopted throughout the State of NSW. As reported to Council in July 2010, the intent of draft LEP 2011 is simply an administration change to bring LEP 2000 into alignment with the Standard Instrument LEP. However, in many ways, the format is a significant departure from Council’s existing LEP. It introduces a number of standardised mandatory and optional inclusions that comprise a large proportion of the LEP’s core content, and which take the form of the Standard Instrument template. Council staff have done their best to ensure the new draft LEP accords with existing provisions of LEP 2000. The draft LEP 2011 written instrument and associated maps have now been updated as a result of changes to the Standard Instrument LEP in February 2011 and instructions from P&I. A copy of draft LEP 2011 is attached separately and the maps are available in the Councillor’s room for perusal prior to consideration by Council. A plain English version of draft LEP 2011 has also been provided to assist Councillors. These documents are accompanied by a draft Strategic Management Plan (SMP) setting out in greater detail the changes under the new LEP and the rationale behind decisions made throughout the LEP preparation. The SMP also records analysis undertaken on a site specific basis where zone alterations to land parcels are proposed.


L11/13 - Draft Coffs Harbour Local Environmental Plan 2011 (Cont'd) A copy of all Section 62 correspondence from Government agencies is also available, including a summary document advising how the various Government agency requirements have been included in draft LEP 2011. Draft LEP 2011 was reported to Council on 8 July 2010. The following points are included to detail the alterations to the draft LEP since it was last reported to Council. If items are not mentioned below, it means there is no change made to the LEP in relation to that item since previously reported. Updates to the Standard Instrument Template

The Standard Instrument has been updated since the draft LEP was last reported to Council. This has resulted in a number of changes and additions to the Dictionary definitions and model and local clauses in the draft LEP. For example, definitions of eco-tourist facilities, high technology industries, commercial premises and attached and detached dual occupancies have been added to the Standard Instrument. Changes have also been made to the Standard Instrument as to how definitions are grouped together. For example, ‘commercial premises’ is listed as a ‘parent’ term in the land use tables in the circumstance where retail, office and business premises are all permitted, instead of separately listing these three permitted uses. Council has been instructed by P&I to update the draft LEP to include all changes made in February 2011 to the Standard Instrument and to incorporate all new definitions and all mandated permissible uses in each relevant zone. Draft LEP 2011 contains all changes as required by relevant updates to the Standard Instrument LEP. As such, the land use tables appear a little different to the version reported to Council in July 2010. The new definitions have been added to the land use tables where relevant and as much as possible to equate to LEP 2000. For example, LEP 2000 has attached dual occupancies as permissible in the Rural 1A Agriculture zone. Dual occupancies (attached) have now been added as permissible with consent in the rural zone of draft LEP 2011. Some of the model and local clauses have been revised and Council has also updated the draft LEP 2011 to ensure the most up to date clauses are contained within the LEP.

Rural Land Use Zoning

As previously advised to Council, the Standard Instrument template includes 35 mandatory zones which Council can choose to use. Many of the Standard Instrument zones directly relate to existing zones in LEP 2000. However, others either have no direct equivalent, or Council has had to add zone objectives to achieve the closest fit possible to equate with LEP 2000. In the report to Council of 8 July 2010, it was advised that the draft LEP contained two proposed rural zones, being RU1 Primary Production and RU3 Forestry. P&I have requested Council staff to further examine whether the RU1 zone is the appropriate equivalent zone. They advised that they consider the RU2 Rural Landscape zone may be more appropriate, given that it allows for more permissible uses and may equate more directly to the permissible uses in the 1A zone of LEP 2000. P&I further advised that the RU2 zone is being used for the majority of rural lands within the North Coast region in other Council’s Standard Instrument LEPs, with the RU1 zone only being used for land identified on P&I’s significant farmland mapping layer.


L11/13 - Draft Coffs Harbour Local Environmental Plan 2011 (Cont'd)

Draft LEP 2011 has been amended to replace the RU1 Primary Production zone with the RU2 Rural Landscape zone for all lands currently zoned 1A in LEP 2000. There will still therefore be a single rural zone for the entire LGA. An additional zone objective has been included for the RU2 zone, which states “To minimise the fragmentation and alienation of resource lands”. This will therefore allow uses such as bed and breakfast accommodation and restaurants to be retained as permissible with consent in the rural areas of the LGA as is currently the case for LEP 2000, but will ensure that agricultural lands are protected for long term use for primary production.

Updates as a Result of Changes to Draft Coffs Harbour City Centre Local Environmental Plan 2011 When draft LEP 2011 was reported to Council on 8 July 2010, it reflected the contents of the draft Coffs Harbour City Centre LEP, which has since been updated and lodged with P&I for gazettal. All changes which have been made to the City Centre LEP and associated maps as a result of exhibition and finalisation for gazettal have been rolled across directly into draft LEP 2011. Several minor alterations have been made to zone names and titles for special use zones within the City Centre LEP area, as a result of P&I instructions. For example, the cemetery in North Street, Coffs Harbour is labeled as ‘SP1 Cemetery’ in the City Centre LEP. It will now be labeled as ‘SP2 Cemetery’ in draft LEP 2011. There is no changed intent to permissible uses as a result of this instruction. It should be noted that several requests have been received by Council over the last few months for amendments to zones and built form controls for lands within the City Centre LEP area. No amendments have been made to draft LEP 2011 as a result of these submissions. Proponents will be advised by letter that they should make a submission to draft LEP 2011 when it is on exhibition later this year. Any such submissions can then be reported in a single report to Council at the close of the exhibition period. This will ensure that submissions are dealt with in a holistic, rather than an ad-hoc, manner.

Removal of Design Competition Requirements and Key Sites Map The Coffs Harbour City Centre LEP contains a clause on design excellence and a series of subclauses requiring a design competition to be held on key sites around the city centre, or for any buildings in the city centre area above a certain height and/or dollar value. This subclause for a design competition was inserted into the City Centre LEP by P&I, who advised it was a requirement of all City Centre Plans that they were preparing around the state. P&I has more recently advised that design competitions may actually have a detrimental impact by deterring development because of the cost and time delays related to the competition. It has given Council the opportunity to remove this requirement from draft LEP 2011. For this reason the subclauses relating to design competition on key sites have been removed from the written instrument and the Key Sites Map has been removed from the draft LEP. Once the City Centre LEP is repealed by draft LEP 2011, the design competition requirements for the City Centre will cease to exist.


L11/13 - Draft Coffs Harbour Local Environmental Plan 2011 (Cont'd) Subdivision Clause and Minimum Lot Size Map

Council commenced negotiations with P&I in April 2010 regarding how provisions contained within LEP 2000 relating to subdivision of lots with more than one minimum lot size provision could best be addressed in the Standard Instrument LEP to produce good outcomes for the long term management of environmental conservation zones. A written submission was lodged with P&I in May 2010 to outline Council's issues of concern. As a result of these negotiations, P&I provided Council with draft local Clause 4.1B "Subdivision of land where more than one minimum lot size provision applies" to include in the draft LEP reported to Council on 8 July 2010. It was understood by both parties that this clause would likely require modification, and P&I gave Council an undertaking that it would assist to resolve the clause to the satisfaction of both Council and P&I prior to exhibition of the draft LEP. Council staff has continued to negotiate with P&I for the resolution of this clause to enable the draft LEP to be certified for exhibition and have been reluctant to proceed to exhibition without the resolution of this clause. The clause was amended by P&I several times since July 2010 in an attempt to achieve a satisfactory outcome for Council. Council wrote to P&I on 12 April 2011 seeking the final resolution of this clause to allow the LEP to proceed to exhibition. This letter identified that the issue of more than one minimum lot size provision on a lot would also be affecting other LGAs and it would be appropriate for P&I to provide a solution that produces good planning outcomes for long term management of environmental conservation zones across the State of NSW. Council has now received a letter from P&I dated 23 May 2011 instructing that the clause can no longer be used, and that the matter can only be rectified via amendments to the Standard Instrument LEP, which will require lengthy consultation across the State of NSW to resolve the problem. P&I has advised it can help Council with a “work-around” to address the issue in the interim period until (or if ever) the Standard Instrument LEP is modified. P&I’s identified solution is to remove the clause and to modify the Lot Size Map to reduce or remove the minimum lot size for the E2 Environmental Conservation zoned lands (the equivalent zone to the Environmental Protection 7A Habitat and Catchment zone in LEP 2000). This is a significant change from LEP 2000, which has a minimum subdivision size of 40 hectares of lands zoned 7A, and a ‘split lot clause’ which allows for the 7A zoned land with an area of less than 40 hectares to be subdivided. Whilst this is not considered the optimum outcome for the long term management of environmental conservation zones within the LGA, there would appear to be no other alternative to progress the draft LEP. As a result, the draft local clause “Subdivision of land where more than one minimum lot size provisions applies” has been removed from the draft written instrument and the Lot Size Map has been modified so that there is no minimum lot size for the E2 zone in all areas of the LGA. Additional provisions will be developed for inclusion within draft Coffs Harbour Development Control Plan 2011 to further strengthen this requirement and to ensure the E2 zoned lands are not subdivided in an ad-hoc manner. P&I has provided an additional subclause 4.2A(4) for inclusion in the draft LEP to ensure that subdivision of the E2 zone into parcels less than 40 hectares in accordance with the Lot Size Map cannot trigger the generation of a dwelling entitlement for the land.


L11/13 - Draft Coffs Harbour Local Environmental Plan 2011 (Cont'd) Boundary Adjustment Clause

Council also held negotiations with P&I during early 2010 regarding the need for a clause that addresses boundary adjustments between existing undersized allotments. P&I provided Council with Clause 4.1C “Boundary adjustments between existing undersized allotments”, which was included when the draft LEP was reported to Council in July 2010. Council has since received an instruction from P&I that this clause must be removed, because it conflicts with mandatory clauses 2.6 Subdivision and 4.6 Exceptions to Development Standards of the Standard Instrument. P&I is considering amending the Standard Instrument in due course to address this issue. In the interim, the boundary adjustment clause has been removed from draft LEP 2011. As an interim measure, Council has inserted a clause titled 4.2A “Lot size exceptions for certain rural subdivisions”. This clause is taken from the recently gazetted Tamworth Regional LEP 2010. It will be applied to the RU2 Rural Landscape zone, and has the intent of giving Council a mechanism to approve boundary adjustments between undersized rural allotments without creating additional dwelling entitlements.

Part 3A Development Applications Since the draft LEP was last reported to Council in July 2010, Council has received several instructions in relation to Part 3A Development Applications which have been determined by P&I. The Land Zoning Map and Lot Size Map has been modified in accordance with these instructions, to ensure that the zone footprint directly corresponds with the plans which have been approved by P&I. This has affected lands within the Seddon Estate at Estuary Drive Moonee, the Glades Estate at Moonee and the North Sapphire Estate. The DCP maps will be modified for each of these areas to accord with the approved development footprint. Council still awaits advice from P&I regarding several other as yet undetermined Part 3A Development Applications. No instructions have been received at this time. Council proposes to request that P&I approve the draft LEP for exhibition with zone footprints as advised in July 2010. It is anticipated P&I will provide instructions on the Section 65 Certificate to indicate whether changes are required to maps prior to exhibition.

Heritage Listed Items Council adopted the Heritage Strategic Plan at its meeting of 10 February 2011. This has resulted in minor amendments to the table listed in Schedule 5 of draft LEP 2011 and the associated Heritage Map.

Natural Resource – Water Map When the draft LEP was previously reported to Council in July 2010, the Natural Resource – Water Map was still being worked on to identify streams to which the ‘Natural resource – riparian land and waterway’ clause (Clause 7.13 of draft LEP 2011) would apply to. The draft map was provided to Councillors with a note that the work would be completed prior to the exhibition of draft LEP 2011. This mapping is now completed and the Natural Resource – Water Map is completed.


L11/13 - Draft Coffs Harbour Local Environmental Plan 2011 (Cont'd) Urban Release Area Map

When the draft LEP was previously reported to Council in July 2010, it did not contain an Urban Release Area Map. P&I have instructed Council to include this map, because LEP 2000 contains a map showing LEP Amendment No. 17 (South Coffs) as an Urban Release Area. This is an administrative addition to ensure the new draft LEP accords with LEP 2000.

Business Centres Hierarchy Review

At its meeting on 12 May 2011 Council resolved to undertake a review of the existing Business Centres Hierarchy, and particularly how it relates to the B6 zone within the Coffs Harbour City Centre LEP area. This work is to be undertaken over the next few months with a draft report completed to allow exhibition concurrently with the draft LEP 2011. As such, there are no current amendments to the LEP instrument or maps as a result of this review.

Written Instrument and Map Updates

Apart from updates to the written instrument and maps already mentioned in this report, there have been other minor amendments to the draft LEP written instrument and maps. These have all been as a result of instructions from P&I with regard to such matters as zone objectives, clause names and numbering, use of the most up-to-date model clauses, changes to listings in land use tables, map numbering, font sizes and such, in order to ensure the instrument and maps comply with the Standard Instrument drafting guidelines and Ministerial 117 Directions. These amendments are documented in a table in the background Strategic Management Plan. They have not created changes to the intent of the draft Plan.

Schedule 4 – Classification and Reclassification of Public Land

Schedule 4 of draft LEP 2011 contains a table referencing lands proposed to have their classifications changed from community to operational. Two parcels of land were included in the schedule when the LEP was presented to Council in July 2010. A third parcel of land is now proposed for inclusion in this table. This land is Lot 30 DP 262078, being adjacent to 20 Bray Street Coffs Harbour. It is a minor parcel of land on the corner of Taloumbi Road and Bray Street which is excess to the requirements of Coffs Harbour City Council. Council’s Property Branch is in full support of this sale to the owner of 20 Bray Street. Listing the land in draft LEP 2011 is the correct mechanism to allow this land to be reclassified and ultimately sold in due course. The owner of 20 Bray Street made a submission to the City Centre LEP to have the land reclassified, however LEP procedural requirements meant that this action could not be completed in the City Centre LEP and need to be included in draft LEP 2011.

Sustainability Assessment: Environment

Environmental protection measures incorporated under draft LEP 2011 are adapted from the existing LEP 2000 wherever possible. It is not anticipated that the draft Plan will result in any deterioration of environmental protection measures. Further environmental work is being completed via vegetation ground-truthing around the LGA to inform the Standard LEP. Once this work is finalised a planning proposal to amend the LEP and incorporate necessary changes will be put to Council.


L11/13 - Draft Coffs Harbour Local Environmental Plan 2011 (Cont'd) Social

Draft LEP 2011 aims to improve health and safety for residents, protect and enhance the character and liveability of our communities, and ensure equal access to services for all.

Civic Leadership

Draft LEP 2011 will provide clear direction to the elected Council as governing body and for staff in administering the final LEP, and will guide future development within the LGA. This is consistent with the Coffs Harbour Community Strategic Plan outcomes PL1 “We have designed our built environment for sustainable living”, PL2 “We have created through our urban spaces, a strong sense of community, identity and place”, and LE3 “We manage our resources and development sustainably”.

Economic


Draft LEP 2011 aims to improve employment and educational opportunities for residents, to best foster opportunities for businesses and industries that serve our community, and to make efficient use of existing and future infrastructure.

Delivery Program/Operational Plan Implications The preparation of draft LEP 2011 is endorsed in the current Operational Plan. As much work as possible has been undertaken in-house, and the draft LEP aims to “slide across” as much of existing LEP 2000 as possible within the constraints of P&I requirements. This approach sought to ensure costs to Coffs Harbour City Council were minimised.

Consultation: The most recent timeframes provided by P&I stipulate that draft LEP 2011 be placed on public exhibition from late September to early November 2011. Community fact sheets, including a plain English version of the draft LEP, will be prepared to assist to inform the community. It should be noted that Council at its meeting of 8 July 2010 resolved the LEP would be exhibited for a period of two months. P&I timelines now propose the LEP will only be exhibited for a six week period. Related Policy and / or Precedents: Council has completed draft LEP 2011 in accordance with the Standard Instrument (LEPs) Orders 2006 and the Environmental Planning and Assessment Act and Regulations. All statutory requirements of these planning instruments have been complied with.


L11/13 - Draft Coffs Harbour Local Environmental Plan 2011 (Cont'd) In preparing a draft LEP Council is required to ensure that the LEP is consistent with the surrounding land use patterns and local character. Ensuring the plan is within the strategic context set by other State, regional and local policy is also necessary. Draft LEP 2011 is consistent with: the NSW State Plan; the Mid North Coast Regional Strategy; State Environmental Planning Policies; Ministerial Section 117(2) Directions; the Coffs Harbour 2030 Plan; the Our Living City Settlement Strategy; the Coffs Harbour Industrial Lands Strategy; the Coffs Harbour Rural Residential Strategy; and the Coffs Harbour Business Lands Strategy. Statutory Requirements: P&I’s Standard Instrument (LEPs) Orders (gazetted March 2006, amended September 2006

and July 2008); the Mid North Coast Regional Strategy; various Ministerial 117 Directions; and Planning Practice Notes issued by NSW P&I. Issues: 1. Project Timing

The timeframe for this project has been established by NSW P&I (as per Appendix A). Council has received acceleration grant funding from P&I to assist with the finalisation of the draft LEP. It must achieve two key milestones (as outlined in the background section of this report) in order to receive this funding. Reporting the draft LEP to the June 2011 Council meeting is crucial to the timing of milestones in project delivery and therefore in Council receiving grant funding. Gaining Council approval to seek a Section 65 Certificate (to allow the draft LEP to be exhibited) from P&I at this meeting is equally important to meeting the target date for future milestones and ultimately the making of the Plan.

2. Section 65 Certification P&I’s project timeline shows a two month timeframe (July – September 2011) to allow for the issue of the Section 65 Certificate and for the draft LEP to be finalised for exhibition. It is anticipated that the Section 65 Certificate may contain certain conditions to be met by Council prior to public exhibition. It is anticipated that, in particular, Council may receive an instruction from P&I with regard to several landholdings affected by remaining Part 3A development applications. P&I has still not provided Council with an instruction on zoning footprints for several outstanding Part 3A development applications. Council has chosen to show zoning footprints consistent with exhibited LEPs and DCPs (e.g. Moonee draft LEP Amendment No. 24), and anticipates P&I may issue the Section 65 Certificate with certain conditions requiring possible modification to the zone footprint prior to exhibition of the draft Plan. Any such conditions on the Section 65 Certificate will be advised to the Executive and Councillors as necessary.


L11/13 - Draft Coffs Harbour Local Environmental Plan 2011 (Cont'd) Implementation Date / Priority: The Standard LEP project timeframe has been determined by P&I. Council is required to have the LEP made in accordance with P&I timeframes. As such, seeking Section 65 Certification from P&I as soon as possible is crucial to project timing. Recommendation: 1. That Council seek authority from NSW Planning and Infrastructure to issue a

certificate under Section 65 of the Environmental Planning and Assessment Act, 1979 to allow draft Coffs Harbour Local Environmental Plan 2011 to be exhibited.

2. That upon complying with all conditions established at Section 65 certification, draft Coffs Harbour City Local Environmental Plan 2011 be exhibited for a period of six weeks in accordance with NSW Planning and Infrastructure’s project timeframe.

- 103 -

Attachments:

Attachment 1 PROJECT PLAN TIMEFRAMES

Stage Task/Strategy/Milestone Timeframe Performance Measure Person(s)

responsible and details of their roles

List the project activities to be undertaken in the order they will be done

Start date Completion date

State how the results (outcomes/outputs) will be measured

(optional)

Appointment of consultant/s 01/04/11 29/04/11 Start up meeting completed

Council’s planner

2 Commence pre-s.64 consultation 05/05/11 13/05/11 Meeting/s scheduled Council’s planner 2 Undertake formal meeting and

finalise documents 16/05/11 27/05/11 Meetings completed Council’s planner

3 Complete s.64 submission and request s.65 certificate (Milestone 1)

30/05/11 08/07/11 Submission received by DoP

Steve Murray

3 Issue of s.65 certificate by DoP 11/07/11 02/09/11 Certificate issued Neil McGaffin 4 Complete preparations for public

exhibition 05/09/11 23/09/11 Dates set,

advertisements set, printing completed

Council’s planner

4 Public exhibition 26/09/11 04/11/11 On exhibition N/A 5 Review LEP submissions and

prepare response 07/11/11 30/12/11 Report to Council

submitted Council’s planner

5 Review of draft LEP including mapping

07/11/11 30/12/11 Internal approval of revised draft LEP

Council’s Planning Manager

5 Complete s.68 submission (Milestone 2)

03/01/12 24/02/12 LEP received by DoP Steve Murray


L11/14 COFFS COAST WASTE SERVICES WASTE PROCESSING AND RESOURCE RECOVERY OPERATIONS – CONTRACT 03/04-147-TS

Purpose: To seek endorsement of Council to proceed with a variation to the Coffs Harbour Regional Resource Recovery Project Contract No. 03/04-147-TS to modify waste processing and resource recovery operations. This is in response to recent amendments to the Protection of the Environment Operations (Waste) Regulation 2005 and Exemption provisions that have introduced more stringent requirements in regard to organic outputs derived from mixed waste. This report is being presented to Coffs Coast Waste Services partners for consideration, being Nambucca Shire Council, Bellingen Shire Council and Coffs Harbour City Council, to the meetings of 17, 22 and 23 June 2011 respectively. Description of Item: Coffs Harbour City Council, Bellingen Shire Council and Nambucca Shire Council operate in partnership to deliver joint waste management services and resource recovery operations under the banner Coffs Coast Waste Services (CCWS). The partnership is reinforced by a Tripartite Agreement between the three Councils, and a joint waste collection and recycling contract. CCWS provides a three-bin domestic waste collection service for organics including food waste, recyclables, and mixed waste, and processing of these streams at a Materials Recovery Facility (MRF) and an Alternate Waste Treatment (AWT) facility to produce beneficial products. In 2005 Coffs Harbour City Council entered into the contract with Biomass Solutions (Coffs Harbour) Pty Ltd for processing organics, mixed waste and biosolids. At the same time the three Councils entered into a Tripartite Agreement that effectively binds the parties to that contract and joint waste management services for twenty years. The Biomass Solutions AWT facility was commissioned in two stages:

Stage one – Processing of streamed Organics commenced March 2007 Stage two – Processing of streamed Mixed waste commenced January 2008

Under the waste processing contract streamed organics that includes food waste, green waste and biosolids are shredded and processed via an agitated composting bay process, and subsequently screened and mixed as necessary to produce “A” Grade compost that meets market and regulatory requirements. Streamed Mixed waste undergoes a process involving primary manual and mechanical sorting, autoclaving, secondary mechanical and manual separation of output fractions to produce recyclables, a screened organic fraction for reuse, and residual waste that is destined for landfilling. The sterilised organic fraction generally undergoes composting in the agitated bay system, followed by screening and mixing with other products as necessary to produce a product that met the then prevailing Biosolids Guidelines.


L11/14 - Coffs Coast Waste Services Waste Processing and Resource Recovery Operations - Contract 03/04-147-TS (Cont'd) The Coffs Coast Waste Services domestic waste collection and processing operations were achieving outstanding rates of resource recovery as shown in the following OEH graph that shows performance relative to the NSW target.

Note: Nambucca’s figures which are similar to Coffs and Bellingen were not included due to a technical glitch. On 24 April 2008, the NSW Government introduced amendments to the Protection of the Environment Operations (Waste) Regulation 2005 which took effect on 28 April 2008. The amendments, required, inter alia, that wastes including any products produced from wastes must not be used without the benefit of a relevant General or Specific Exemption pursuant to Part 6, Clause 51 and 51A, of the Protection of the Environment Operations (Waste) Regulation 2005. These changes created turmoil in the waste processing and resource recovery industry across NSW. Numerous AWT plants and Councils throughout NSW were affected and contracts for new AWT facilities were put on hold. In January 2010, Coffs Harbour City Council, Nambucca Shire Council and Bellingen Shire Council submitted an Issues Paper to Hon. Frank Sartor, the then Minister for Climate Change and the Environment. The Issues Paper highlighted the significant concerns of the councils and urged the Minister to take decisive action. In April 2010 the NSW Government released the “The organic outputs derived from mixed waste general exemption” pursuant to the Protection of the Environment Operations (Waste) Regulation 2005 – General Exemption under Part 6, Clause 51 and 51A. The long awaited General Exemption introduced much more stringent requirements with respect to the use of AWT organic outputs for land application in terms of: processor and consumer responsibilities, chemical and other material concentrations, types of agricultural use, application rates and buffers, and sampling and testing requirements.


L11/14 - Coffs Coast Waste Services Waste Processing and Resource Recovery Operations - Contract 03/04-147-TS (Cont'd) The effect of this legislation was to significantly change the goal posts in respect to the processing of mixed waste and utilisation of beneficial organics. However the General Exemption remained unworkable for Biomass Solution’s waste processing operations due to the particular characteristics of the Coffs Coast Waste Services operations, the plant design and markets. A more workable “Specific Exemption” was sought and after protracted negotiations the then NSW Department of Environment, Climate Change & Water issued the “Protection of the Environment Operations (Waste) Regulation 2005 – Specific Exemption under Part 6, Clause 51 and 51A - The Coffs Harbour CCRRF organic outputs derived from mixed waste exemption 2011 which came into effect on 28 March 2011. It should be noted that the regulatory changes do not significantly impact upon the processing and use of organics which includes material collected in the green lidded bins, nor biosolids that are delivered to the plant from sewage treatment plants. The changes primarily concern the processing of mixed waste which includes the material collected in red lidded bins. Options to Satisfy New Requirements The relevant new legal requirements that are expressed under “The Coffs Harbour CCRRF organic outputs derived from mixed waste exemption 2011” introduce much more rigorous requirements than previously applied in respect to:

- physical and other contaminant levels of mixed waste organics that can be land applied - the types of agricultural and non agricultural uses of such products - the application rates per hectare - testing and reporting requirements.

Biomass Solutions has been conducting testing, trials, plant design work, financial and marketing analysis to explore reconfiguration options that would satisfy the new requirements. In this regard Biomass Solutions was requested to provide detailed information of three options and cost implications for consideration by the Councils. These options are:

Option 1: Upgrade the plant and manufacture product to meet requirements of the Exemption; Option 2: Mothball the mixed waste processing line and direct the mixed waste to landfill; and Option 3: Mothball the mixed waste processing line, implement limited recovery of recyclables,

bale the waste and direct the waste to landfill. Option 1 Under this option the Biomass facility would be modified to permit the manufacture of products that meet the conditions of the Specific Exemption. This option will require significant capital investment in new plant and higher mixed waste processing costs. The solution offered includes provision for:

significantly improved up-front sorting of in-feed waste to remove deleterious materials before the processing commences,

enhanced screening with further contaminant removal and recovery of inorganic recyclables mid-process,


L11/14 - Coffs Coast Waste Services Waste Processing and Resource Recovery Operations - Contract 03/04-147-TS (Cont'd)

a size reduction step for coarse material, in particular glass, that will remain in the output

organics stream, co-composting of the organic fraction with biosolids and fresh organic waste from the

source separated side of the facility, new quality control and monitoring systems and protocols, and a full-service deliver and apply scheme for the application of product to land.

Option 2 Under this option, the mixed waste side of the facility is shut down and placed on a care and maintenance schedule, with mixed waste delivered direct to landfill. The proposal allows for close down of the mixed waste side of the facility with periodic operation of the autoclave and associated equipment to maintain the facility in reasonable working order. Some key staff are to be retained for the care and maintenance operations, but no substantive efforts are made at recovering products from the mixed waste stream, which is instead directed straight to landfill disposal. In the event that regulatory provisions and or market and technology conditions become more favourable, if ever, the plant could be reactivated at a later date. Option 3 Under this option, the mixed waste side of the facility is shut down and placed on a care and maintenance schedule as above, the mixed waste is baled and then delivered to landfill. The option requires capital injection for baling operations but will achieve higher compaction densities of product that is destined for landfill with consequent savings in landfill space and transport. Analysis of Options As requested, Biomass Solutions provided detailed process flow information and financial models to assist in the evaluation of Options over the balance of the contract. The models took into account such factors as the

Processing Charges – based on tonnes processed Availability Charges (in respect to capital costs) Section 88 Waste Levies Waste stream growth Consumer Price Index increases Landfill costs Transport costs Compaction densities

Chartered accountants Davies Knox Maynards were engaged to independently review Biomass’s financial models for the three options put forward and to determine whether these have been correctly costed.


L11/14 - Coffs Coast Waste Services Waste Processing and Resource Recovery Operations - Contract 03/04-147-TS (Cont'd) Davies Knox Maynards concluded inter alia: “The audit work undertaken confirmed the conclusions from the original Biomass Solutions costing that option 1 was clearly the lowest cost option over the years forecast from 2011 to 2027. Whilst a significant number of adjustments were made to the various costings and spreadsheets, the overall conclusion remained the same whether the costs are expressed in absolute dollar terms, or if discounted back to today’s dollars using the council supplied cost of capital of 7.5%pa.” Consultant, Wright Corporate Strategy was engaged to prepare an overall assessment of the Biomass options going forward. The consultant was instructed to take into account the NSW Government’s new “Reducing Waste: Implementation Strategy 2011-2015”, technology and regulatory risks as well as the financial, environmental and social sustainability of options over the remaining term of the waste processing contract. The consultant was also asked to benchmark Biomass’s waste processing costs and practices against other similar operations that exist or are proposed. Wright Corporate Strategy concluded inter alia: “This review recommends that Coffs Coast Waste Services clearly signal to Biomass Solutions a desire to press ahead with the Option 1 proposal, provided that resolutions can be determined on:

the costing assumptions in the proposal, the level of down payment / deposit paid for the capital expenses, and a mechanism for sharing risk and reward effects from future changes in markets, changes

in regulations and changes in technology and process that might benefit the parties.” The consultant’s recommendations as dot pointed above have been addressed in the terms of the proposal now presented to Council for consideration. Option 1 “appears to offer –

the best value for money with the lowest net present value, the best sustainability outcome with the prospect of improving resource recovery, securing

markets, meeting the conditions of the Specific Exemption, and minimising the amount of waste destined for landfill disposal; and

the best socio/political outcome by maintaining the dual line approach to waste processing, maintaining faith with and by the community and continuing to pursue the vision of Coffs Coast Waste Services;”


L11/14 - Coffs Coast Waste Services Waste Processing and Resource Recovery Operations - Contract 03/04-147-TS (Cont'd) With respect to benchmarking Biomass’s current and proposed revised waste processing costs against other similar operations that exist or are proposed, Wright Corporate Strategy advise, inter alia: “Comparing these benchmark indicative costs it is apparent that:

the current fully inclusive gate fee (processing plus availability charges) per tonne of mixed waste sent to the Biomass facility is in the order of one third of the fully inclusive gate fees apparent in the Sydney metropolitan market; and

with the addition of the capital and operating cost increases associated with the Option 1 response from Biomass Solutions, the proposed fully inclusive gate fee is in the order of two thirds that currently apparent in the Sydney metropolitan market.

On the basis of this comparison, it is reasonable to conclude that with the proposed modifications and attainment of the conditions set out in the Specific Exemption, the Coffs Coast Waste Services parties are receiving good value for money.” A copy of each of the above consultant’s confidential reports are available in the councillors’ room for perusal. Sustainability Assessment: Environment

CCWS operations are designed to optimise recycling and resource recovery, beneficial reuse, and to minimise waste to landfill. The recovery of mixed waste organics to produce compost for land application has environmental benefits in terms of soil carbon levels, soil fertility, improved agricultural outputs, rehabilitation of sites, and avoided carbon emissions. The change in legal requirements and standards for processing and use of CCWS mixed waste has meant that the organic fraction has had to be landfilled in the interim until the plant can be upgraded to satisfy the new requirements. Should Council proceed with Option 1, resource recovery rates will significantly increase and waste to landfill will decrease, as will landfill levy payments to the NSW government. Recovery rates for the three bin Coffs Coast domestic waste stream would be restored to around 80%, the highest in NSW. A key sustainability consideration is the carbon implications of the waste processing solution. The new waste processing under Option 1 will consume more electricity and therefore increase potential carbon emissions. However notwithstanding these impacts, the sustainability of the proposed way forward in Option 1 is considered superior to either of Options 2 or 3.


L11/14 - Coffs Coast Waste Services Waste Processing and Resource Recovery Operations - Contract 03/04-147-TS (Cont'd) Social

The community has demonstrated strong support for recycling and resource recovery as is evident by the high levels of recycling and low levels of contamination in the domestic green bin and yellow bin service. Surveys have demonstrated high levels of satisfaction with CCWS and the recycling and resource recovery systems. The Councils have invested in education programs over many years to increase community awareness and support for waste reduction, reuse and recycling. It is therefore important that Council continue to provide services and waste recycling and recovery to meet community expectations.

Civic Leadership

Councils are obliged to provide sustainable waste services on behalf of their communities. It is important that the Bellingen, Nambucca and Coffs Harbour Councils continue to provide sustainable waste management services, recycling and resource recovery commensurate with community expectations.

The proposal to proceed with Option 1 as recommended is consistent with the Coffs Harbour 2030 Plan which includes a strategy (LE3.1.4) “Implement Programs which make the Coffs Coast region a zero waste community.”

Economic

The recovery of waste resources including organics reduces the quantities of waste that are directed to landfill. Landfilling is an expensive activity, more so since the introduction of the NSW governments Section 88 waste levy payment requirements. Effective from July 2009 mid north coast and north coast councils are required to pay a waste levy to the NSW government for waste that is directed to landfill. The rate for the 2011/2012 financial year is set at $31.10 per tonne. Further, NSW statute provides that the Levy is to rise cumulatively at the rate of CPI + $10 each year until 2015/16. Waste processing and the marketing and utilization of waste products generates local employment. The legislative changes in relation to mixed waste are currently resulting in reusable materials wastefully going to landfill, and therefore causing higher waste disposal costs to the councils, and additional waste levy payments to the NSW Government. Upgrading the plant to meet the new requirements as per Option 1 will significantly increase mixed waste processing costs but is the least expensive option overall over the balance of the contract. Option 1 will minimise waste to landfill and waste levy payments to the NSW Government.


L11/14 - Coffs Coast Waste Services Waste Processing and Resource Recovery Operations - Contract 03/04-147-TS (Cont'd) Delivery Program/Operational Plan Implications

The increased waste processing costs to meet the relevant Exemption will need to be recovered through fees and charges. Additional charges in respect to mixed waste that is collected under the Coffs Coast Waste Services domestic waste will need to be recouped from annual Waste Management Charges. Other product such as commercial mixed waste that is suitable for processing would be subject to higher gate charges. For the purposes of estimating the impact on annual Waste Management Charges, it is important to note that the change in pricing does not apply to the organics collected in the green lidded bin, nor recyclables collected in the yellow lidded bin. The price increase relates solely to mixed waste collected in the red lidded bin. Average quantities of mixed waste collected for each waste management service amounts to around 342 Kgs per annum. During the 2011/12 financial year, there will be availability fees payable by the Councils in respect to the capital that is being expended up to the commissioning date. There will also be landfill levies and transport costs applicable in respect to the mixed waste organics that will need to be landfilled. It has been estimated that this will require an increase of $13.70 per Waste Management Charge. This increase has been accommodated in the Councils 2011/12 fees and charges and delivery and operational programs. A one off 20% capital contribution which will fall due in July 2011, is to be apportioned between the Councils commensurate with number of garbage services as at 30 May 2011, being Coffs Harbour – 28994, Nambucca - 8007 and Bellingen 4168. The contributions will be approximately as follows:

Bellingen Shire Council $74,000 Nambucca Shire Council $142,000 Coffs Harbour City Council $516,000

Sufficient funds in respect to the above are available in waste management reserves. The upgraded plant will be commissioned on or before 1 July 2012, at which time the Councils will no longer be responsible for disposal of mixed waste organics which will be then used for beneficial purposes. Thus NSW landfill levy obligations and disposal costs will decrease, and processing costs will increase. At that time a further $18.30 increase would be required in the 2012/13 Waste Management Charges. No further extraordinary increases in processing costs are anticipated for the balance of the contract. The 2012/13 Waste Management Charges will also need to accommodate the NSW Government’s Section 88 Waste Levy which will increase from $31.10 per tonne in 2011/12 to around $42 per tonne in 2012/13.


L11/14 - Coffs Coast Waste Services Waste Processing and Resource Recovery Operations - Contract 03/04-147-TS (Cont'd) Consultation: There has been extensive consultation, discussions and high level meetings concerning the regulatory changes and related issues with the now Office of Environment & Heritage (OEH), the Waste Management Association of NSW and AWT industry players. A workshop was held concerning this matter for the Mayors, Councillors and senior staff of the three Councils on Thursday 9 June 2011. Related Policy and / or Precedents: The undertaking by the three councils to implement this integrated waste resource recovery system has been driven by NSW Policy and regulatory framework, including the Section 88 Waste Levy and the NSW Waste Avoidance and Resource Recovery Strategy (updated 2007), excerpts of which are:

“Achieving a reduction in waste generation, and turning waste into recoverable resources is a priority for NSW” - NSW Waste Avoidance and Resource Recovery Strategy. “Regulatory mechanisms such as the waste and environment levy help drive waste avoidance and resource recovery by providing an economic incentive to reduce waste disposal and stimulate alternative waste technologies.” - NSW Waste Avoidance and Resource Recovery Strategy.

The Coffs Coast Waste Services operations and proposed upgrade of mixed waste processing operations accords with the NSW government’s “Reducing Waste: Implementation Strategy 2011-2015”. Legal Considerations: Coffs Harbour City Council entered into the contract with Biomass Solutions (Coffs Harbour) Pty Ltd for the Coffs Harbour Regional Resource Recovery Project. Bellingen Shire Council and Nambucca Shire Council are party to the scheme by way of a binding Tripartite Agreement. With respect to the change in laws that has occurred MBT lawyers who have been acting on behalf of the Councils have provide the attached advice. Refer the following extract: “The WPC contends it can produce organic outputs derived from the MRW delivered to the CCRRF that will comply with the 2011 Exemption provided the Plant there is modified and upgraded. The modification and upgrade will result in the imposition of increased Availability Charges and Processing Charges. The increases in Availability Charges and Processing Charges are a direct result of the 28 April 2008 amendments of the Protection of the Environment Operations (Waste) Regulation 2005 and the Advice from Senior Counsel that “The biosolids exemption 2008” does not assist. Thus the increased costs arise from a relevant change in the law and these costs must be borne by Council.”


L11/14 - Coffs Coast Waste Services Waste Processing and Resource Recovery Operations - Contract 03/04-147-TS (Cont'd) Adoption of Option 1 as a way forward will require a variation of the contract, the principle elements of which are outlined in the confidential attachment. Issues: It should be emphasised that workable General Exemptions are in place with regard to the

Biomass’s Organics and Biosolids streams. The current upgrade proposal only pertains to Biomass’s mixed waste processing stream.

If and when the Councils resolve to proceed with Option 1 to upgrade the plant to meet new

legal requirements, Biomass advise that it would take 12 months to procure equipment and commission the new plant to fully process the mixed waste stream. In the interim mixed waste would be processed to recover recyclables such as glass, aluminum, steel and hard plastics, but the organic rich fraction, reject and residual materials would go to landfill. The plant will continue to process the Organics and Biosolids streams to produce high quality compost for beneficial use.

Further work is being undertaken by Council staff to refine the arrangements between the

Councils with respect to the disposal of reject and residual waste and the apportionment of availability fees on a more equitable basis.

Work has commenced to explore ways in which the Councils may better integrate waste

management operations, to reduce administration and operational costs and provide for long term certainty regarding regional waste disposal options. This will be the subject of future reports to Council.

There are concerns that OEH may again change the goal posts at a future time. OEH and the

industry are funding scientific studies that are being conducted over the next four years in respect to the land application of mixed waste organics. These studies may lead to strengthening or relaxation of requirements, although the signals from the Department indicate that the highly stringent requirements that have been introduced are unlikely to significantly strengthened in the foreseeable future.

As a result of industry and local government input the OEH has reversed its position of

resisting the use of AWT organics for power generation and is now preparing a Policy in favour of waste to energy. This may eventually open up opportunities to market Biomass’s refined mixed waste organics to supplement feedstock requirements at large and small scale power stations, such as the Broadwater Sugar Mill and Harwood Sugar Mill, or coal-fired power stations.

Should the Councils defer resolution of this matter beyond 30 June 2011, Biomass Solutions

have indicated that Option 1 would need to be recosted. Fresh quotes would be required from suppliers, and adjustments would need to be made to prices to take into account consumer price index and construction index increases. In addition delays would push back the commissioning date with consequent implications of additional mixed waste organics being directed to landfill and transport and NSW Waste Levy payments. There are very significant costs that may arise from unnecessary delays in making a decision on this matter.


L11/14 - Coffs Coast Waste Services Waste Processing and Resource Recovery Operations - Contract 03/04-147-TS (Cont'd) Implementation Date / Priority: Should the Councils resolve to proceed with the recommended Option 1, Biomass have indicated that it will take up to 12 months to procure equipment, modify the plant and put in place the necessary operational and product marketing measures. Conditional upon resolution on this matter prior to June 30 2011, it is envisaged that the revised mixed waste processing system will be commissioned no later than 1 July 2012. Recommendation: 1. That subject to:

(a) each of Bellingen Shire Council and Nambucca Shire Council resolving, pursuant to the Deed executed by Council on 7 November 2005 and by Bellingen Shire Council on 2 December 2005 and by Nambucca Shire Council on 21 July 2004, consenting in writing to Council implementing the Resolution; and

(b) Westpac Banking Corporation ABN 79 007 457 141 consenting in writing to Council implementing the Resolution; and

(c) The Guarantors to Contract No 03/04-147-TS between Council and Biomass Solutions (Coffs Harbour) Pty Limited ABN 37 101 675 165 (WPC) consenting in writing to Council implementing the Resolution;

2. That Council resolve to vary Contract No 03/04-147-TS between Council and the WPC as set out in the confidential document attached to this Report entitled “Outline of provisions to be included in deed varying Contract No 03/04-147-TS Between Coffs Harbour City Council (CHCC) and Biomass Solutions (Coffs Harbour) Pty Limited (WPC)”.

Chris Chapman Director, Land Use, Health & Development

coffs harbour city council ordinary meeting ......2011/06/23 · councillor mark graham has given...

Documents