corporate services committee agenda

A Quality Rural Lifestyle - in a vibrant, caring and sustainable community

Corporate Services Committee Agenda

21 May 2021

To All Councillors You are hereby notified that the next meeting of the Corporate Services Committee will be held on 21 May 2021 in the Barry Rose Room at 8.30am, for the purpose of transacting the undermentioned business. This meeting will be audio recorded and those in attendance should refrain from making any defamatory statements. There are to be no other recordings of this meeting without the prior authorisation of the committee. The Corporate Services Committee consists of

Cr Ron Campbell, Cr Maurice Collison, Cr Kiwa Fisher, Cr James Burns and Cr Lee Watts.

GREG MCDONALD

GENERAL MANAGER

1. APOLOGIES 2. ADOPTION OF MINUTES

- Corporate Services Committee held on 16 April 2021

3. DECLARATIONS OF INTEREST 4. BUSINESS ITEMS

FINANCE COMMITTEE REPORTS ................................................................................................ 1

CORP.05.1 UPDATE ON NATIVE TITLE ASSESSMENTS ........................................................................ 1

CORP.05.2 FINANCIAL SUMMARY & INVESTMENT REPORT ............................................................... 72

CORP.05.3 SCONE AIRPORT PROJECT UPDATE ............................................................................ 101

CORP.05.5 RESPONSES TO PREVIOUS QUESTIONS ....................................................................... 110

CONFIDENTIAL REPORTS ........................................................................................................ 111

CORP.05.6 UPDATE ON COUNCIL PROPERTY ACQUISTIONS & DISPOSALS - MAY 2021 ................... 111

Summary Minutes of the Corporate Services Committee of the Upper Hunter Shire Council held on Friday 16 April 2021Page 2 of 2

MINUTES OF THE CORPORATE SERVICES COMMITTEE OF UPPER HUNTER SHIRE COUNCIL HELD ON FRIDAY 16 APRIL 2021 IN THE COUNCIL CHAMBERS COMMENCING AT 8.30am

PRESENT: Mayor Maurice Collison (Chair), Cr James Burns and Cr Kiwa Fisher. APOLOGIES: RESOLVED that the apologies received from Cr Lee Watts and Cr Ron Campbell be accepted.

Moved: Cr J Burns Seconded: Cr K Fisher CARRIED UNANIMOUSLY IN ATTENDANCE: Mr Greg McDonald (General Manager), Mr Kristian Enevoldson (Director Corporate Services), Mr Mathew Pringle (Director Environmental & Community Services), Mr Phil Hood (Acting Director Infrastructure Services), Mr Wayne Phelps (Manager Finance), Mr Chris Agosto (Projects Manager), and Mrs Karen Lee (Minutes). RESOLVED that the Minutes of the Corporate Services Committee held on 19 March 2021 be adopted.

Moved: Cr K Fisher Seconded: Cr J Burns CARRIED UNANIMOUSLY DISCLOSURES OF INTEREST: Nil CORP.04.1 FINANCIAL SUMMARY & INVESTMENT REPORT

RESPONSIBLE OFFICER: Kristian Enevoldson - Director Corporate Services

AUTHOR: Wayne Phelps - Manager Finance

RESOLVED That the Committee: 1. note the Fund and Function Summary Report; 2. note the proposed budget variation list. 3. note the Cash and Investment Report; 4. note the Responsible Accounting Officer’s Statement on the Investments 5. note the Capital Works Expenditure Report;

Moved: Cr J Burns Seconded: Cr M Collison CARRIED UNANIMOUSLY

CORP.04.2 OPERATIONAL REPORT



RESOLVED That the Committee: 1. note the comments on the budget review by the managers/budget holders; 2. adopt the requested variations as detailed in the budget review;

Summary Minutes of the Corporate Services Committee of the Upper Hunter Shire Council held on Friday 16 April 2021Page 2 of 2

3. note the Capital Budget Review by the managers/budget holders; 4. note the comments on the Capital Budget Review by the managers/budget holders.

Moved: J Burns Seconded: K Fisher CARRIED UNANIMOUSLY

COUNCILLOR QUESTION Cr Maurice Collison enquired how long the water leak at the Truck Wash at the Scone Saleyards went undetected? With the amount of staff on site, you would assume that this would have been found. Response – Director Corporate Services advised that the leak has now been fixed, but will make further enquires in regards to how long the leak was undetected. Taken on Notice.

CORP.04.3 CONTRACTORS & EXPENSES REPORT



RESOLVED That the Committee: 1. Note the Contractors Listing for the period; 2. Note the Consultancy and Legal Expenses report for the period.

Moved: K Fisher Seconded: J Burns CARRIED UNANIMOUSLY CORP.04.4 SCONE AIRPORT PROJECT UPDATE

RESPONSIBLE OFFICER: Phillip Hood - Acting Director Infrastructure Services

AUTHOR: Alan Fletcher - Special Projects Manager

RESOLVED That Council receive the report and note the information.

Moved: K Fisher Seconded: J Burns CARRIED UNANIMOUSLY

CORP.04.5 RESPONSES TO PREVIOUS QUESTIONS



RECOMMENDATION For notation only. THERE BEING NO FURTHER BUSINESS THE MEETING CLOSED AT 10.12AM

Report To Corporate Services Committee 21 May 2021

Corporate Services

Upper Hunter Shire Council – Corporate Services Committee Agenda – 21 May 2021 Page 1

FINANCE COMMITTEE REPORTS

CORP.05.1 UPDATE ON NATIVE TITLE ASSESSMENTS

RESPONSIBLE OFFICER: David Gatwood - Manager Business Services

AUTHOR: Gaynor Blackadder - Lands Assistant

Corporate Services Committee at its meeting on 19 March 2021 resolved that the matter be deferred to a future meeting

PURPOSE The purpose of this report is to provide an update on the status of Native Title Assessments.

RECOMMENDATION That Council note the report.

BACKGROUND The functions of Council are generally outlined in sections 21 and 22 of the Local Government Act 1993 (LGA), and more particularly in relation to public land in Chapter 6 of the LGA. Where Council wishes to undertake an activity, approval, dealing or project on land that is subject to an approved determination of native title, or where native title may continue to exist, Council will generally be operating in either the role of:

a Crown land manager of a reserve appointed under section 3.3 of the CLMA, or.

Asset Manager, Approver or Regulatory Authority under the LGA or Environmental Planning and Assessment Act 1979.

Council may assume different roles and exercise different functions depending on the terms of the legislation under which Council is to undertake the approval, dealing or project. Responsibility of Council under Part 8 of the Crown Land Management Act 2016 The scheme established under NTA applies in each State and Territory of Australia. The NSW Government enacted the Native Title Act (NSW) Act 1994 to confirm the effect of NTA as it applies to NSW circumstances, however, the NTA remains the main legislation to be used by Council when approving projects that may affect native title. Council is required to undertake a native title assessment for all proposed projects on all Crown land. Carrying out an assessment of native title for a proposed activity or dealing involves research and identification to establish:

whether native title may still exist over an area of land or waters, i.e. has native title been determined to exist, extinguished or surrendered? and

where native title has not been extinguished, the relevant provisions of the NTA which apply and the procedures rights (if any) to be provided to the relevant native title parties.


Corporate Services


Council are required to determine whether the proposed dealing:

can proceed without further reference to native title; is covered by a determination of native title; requires authorisation under the Future Act Subdivisions of the NTA (also known as the

Future Act regime); or is covered by a registered Indigenous Land Use Agreement.

Part 8 of the CLMA provides direction for Council’s compliance with regard to the NTA. Essentially, Council is:

not permitted to issue a land tenure or right, mortgage, impose or agree to an interest or approve a plan of management over relevant land (unless the land is excluded land) without the written advice of a native title manager that if complies with any applicable provisions of the native title legislation required;

required to advise the Minister who their native title manager is; to obtain Minister’s consent to any sale or disposal of Crown land or to take action that

will result in the compulsory acquisition of native title rights and interests in relation to the land;

required to comply with any requirements of the native title legislation in relation to the land;

liable to pay compensation for any act that Council conducts on land for which it is crown land manager or, on former crown land which has been vested in Council, under Division 4.2 of the CLMA, where the act is in accordance with the future act provisions related to public housing, facilities for services to public, acts passing the freehold test and acts affect offshore places.

liable to indemnify the State for the whole or any amount of compensation payable by the State as a result of any act that Council conducts on land for which it is Crown land manager or on former Crown land which has been vested in Council under Section 4.2 of the CLMA.


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REPORT/PROPOSAL Council has commenced Native Title Assessments on the following projects. A summary of the assessments both completed and in progress are outlined below, and detailed report attached. Completed Native Title Assessments – Recommending Project to Proceed

Property Title Details

Project Assessment Summary Recommended project can proceed

Cassilis Community Centre

Lot A & B DP 340809 & Lot A DP 935730

Demolition and replacement of current toilet blocks.

Removal and relaying of concrete access paths.

Installation of play equipment with shad sail and fencing

Deemed that property is not subject to Native Title, Aboriginal Land Claim, and Aboriginal Cultural Heritage.

Yes

Taylor Park Lot 1 DP 1163986

Aberdeen Overnight Rest Area


Yes

Scone Park Lot 1 Section 22 DP 758898

Construction of lighting tower


Yes

Merriwa Swimming Pool

Lot 4 DP 1076080

BBQ Area Deemed that property is not subject to Native Title, Aboriginal Land Claim, and Aboriginal Cultural Heritage.

Yes

Cassilis RFS Lot 8 DP 1097754

Addition to RFS shed


Yes

Merriwa Medical Centre

Lot 12 DP 236499

Merriwa Medical Centre Upgrade


Yes

White Park Lot 14 DP 1228077

Campdraft Arena Deemed that property is not subject to Native Title, Aboriginal Land Claim, and Aboriginal Cultural Heritage.

Yes

Rosedale Sports Complex

Lot 18 DP 1126608

Canteen / bar replacement


Yes

7 Bottlebrush Place Scone

Lot 28 DP 813932

Lease – Scone Medical Practice


Yes


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Completed Native Title Assessments – Projects Pending



Gundy Tennis Court

Lot 7005 DP 96935

Lot 5 Section 3 DP 758490

Resurface two tennis courts

Council is not appointed as the Crown Land Manager for this land. The appointed Trustee is required to seek approval for the works and the native title assessment from the Minister of Crown Land.

Department of Crown Lands have advised that Council is not to undertake any works on Crown Lands where it is not the reserve manager until the reserve trust manager has provided written confirmation that the works are approved by the Minister of Crown Land.

Yes based on assessment of impact

Abbotsford Park

Lot 7012 DP 93475

Demolition of amenities block and build new amenities block. Decommission old septic pit and replace with Envirocycle

Council is not appointed as the Crown Land Manager for this land. The appointed Trustee is required to seek approval for the works and the native title assessment from the Minister of Crown Land.



Jefferson Park

Lot 7301 DP 1152458

Construction of riverwalk

Council is not appointed as the Crown Land Manager for this land. The Minister of Crown Lands is the appointed manager of this land

Department of Crown Lands have advised that Council is not



Corporate Services




to undertake any works on Crown Lands where it is not the reserve manager until the reserve trust manager has provided written confirmation that the works are approved by the Minister of Crown Land.

Moonan Flat Memorial Hall

Lot 1 Section 5 DP 758700

Construction of water system from river to tank and halls including pipes and pump

Council is not appointed as the Crown Land Manager for this land. The Minister of Crown Lands is the appointed manager of this land



Rouchel Tennis Courts

Lot 7004 DP 1050791

Resurface two tennis courts

Council is not appointed as the Crown Land Manager for this land. The appointed Trustee is required to seek approval for the works and the native title assessment from the Crown Land Minister


Native Title Assessments that cannot proceed until negotiations have been completed


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Project Assessment Status

Murrurundi Bowling Club

Lot 203 DP 821664

Plan of Management Land is subject to Native Title Claim

Land is subject to Aboriginal Land Claim

As the land has an affective Aboriginal Land Claim, no further works can legally be undertaken until this is resolved. Negotiations will need to occur with the claimant group.

Next steps:

Commence discussions with Aboriginal Land Claimant

Finalised Native Title Assessment after negotiations have been completed

Finalise project – development of Plan of Management

Murrurundi Bowling Club

Lot 701 DP 1024811




Next steps:




Scone Park Lot 7010 DP 96930





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Next steps:




Rotary Park Lot C DP 107911




Next steps:




Native Title Assessments in Progress



Merriwa Showground

Lot 1 DP 726291


Awaiting Aboriginal Land Claim review

Paradise Park Lot 1 DP 922722



Scone Museum Lot 1 DP 1151004




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Jefferson Park Lot 2 DP 1076080

Aberdeen River Walk Established that the land is freehold land dating back to 1882 which is contrary to the Crown Land register, which states the land is Crown Land with Council appointed as the Crown Land Manager.

Obtained legal advice to confirm validity of freehold land.

Raised mater with Crown Lands again, who continue to state the land is Crown Land.

Requested Crown Lands to provide evidence that the land is Crown.

Legal advise received that no projects or land tenure matters should be undertaken until this matter is resolved.


Aberdeen River Walk Established that the land is freehold land dating back to 1882 which is contrary to the Crown Land register, which states the land is Crown Land with Council appointed as the Crown Land Manager.






Corporate Services





Lease to St Joseph School

Established that the land is freehold land dating back to 1882 which is contrary to the Crown Land register, which states the land is Crown Land with Council appointed as the Crown Land Manager.






Plan of Management Established that the land is freehold land dating back to 1882 which is contrary to the Crown Land register, which states the land is Crown Land with Council appointed as the Crown Land Manager.





Merriwa Showground

Lot 31 DP 610441




Corporate Services




Cassilis Park Lot 50 Section 2 DP 939778

Remove existing playground

Construct new playground and toilet facilities

Construct sewer main

Plan of Management

Land is subject to Native Title Claim

No Aboriginal Land Claim

The land has an existing playground and fencing on it which may have extinguished native title. Currently reviewing the legislative approval requirements when the playground and fencing was constructed to determine if native title has been extinguished. At this stage unable to find out how long fence has existed therefore not sure what legislation requirements were in place.

Assessment appears to be Future Act, have received legal advice which they agree though cannot be approved until Council has a qualified Native Title Manager to confirm if determined correctly. If the determination of Future Act is approved then Council will have to negotiate with Native Title claimant an agreement for compensation.




Aberdeen Water Reservoir

Lot 164 DP 40402



Aberdeen Library Lot 165 DP 39507






Aberdeen Water Reservoir

Lot 173 DP 723312




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1 Brisbane Street Merriwa

Lot 232 DP 750942

Establish community garden

This land was Crown land until 2007 when Council acquired the land. Given this was post the 23 December 1996, confirmation is required if the act of acquiring the land extinguished native title and removed any requirement for compensation.

Seeking advise from Local Government Legal on this matter.

1 Brisbane Street Merriwa

Lot 233 DP 750942

Establish community garden

This land was Crown land until 2007 when Council acquired the land. Given this was post the 23 December 1996, confirmation is required if the act of acquiring the land extinguished native title and removed any requirement for compensation.

Seeking advise from Local Government Legal on this matter.

Merriwa Racecourse

Lot 274 DP 750942



Merriwa Showground

Lot 701 DP 1024776



Aberdeen Cemetery

Lot 7003 DP 93984



Aberdeen Cemetery

Lot 7303 DP 115451



Murrurundi Memorial

Lot 7011 DP 1024816

Remove existing gates and construction of new pathway, brick walls and gates







Corporate Services




Wilson Park Lot 7304 DP 1158819

Demolition of existing grandstand, construction of new amenities and spectator seating and complete lighting upgrades



Rotary Park Lot D DP 107911



Merriwa Showground

Lot 31 DP 610441

Plans of Management Land is subject to Native Title Claim

Title Search shows that the land is freehold land though Certificate of Title was issued on 18/8/1980, which means Council, could be subject to compensation. TROVE records read as though land was freehold land prior to 25/02/1955. Between 1839 & 1980 it appears that the land was Crown land, which may mean that the Land could be on the register for Aboriginal Land Claims therefore seeking advice from Local Government Legal. Once received Legal advice, cannot proceed with approval until qualified Native Title Manager can assess and approve.

Bunnan RFS Shed

Lot 224 DP 727769

Plans of Management Land is subject to Native Title Claim

Initial assessment reveals that the Native Title Claim may be extinguished due to Public Works on land in 1988 though compensation may be payable.

Land is subject to Aboriginal Land claim

ATTACHMENTS

1 Cassillis Community Hall

2 Taylor Park

3 Scone Park

4 Merriwa Swimming Pool

5 Cassilis RFS Shed

6 Merriwa Medical Centre

7 White Park


Corporate Services


8 Rosedale Sports Complex

9 7 Bottlebrush Place Scone

10 Gundy Tennis Courts

11 Abbotsford Park

12 Jefferson Park

13 Moonan Flats

14 Rouchel Tennis Courts

ATTACHMENT NO: 1 - CASSILLIS COMMUNITY HALL ITEM NO: CORP.05.1


ATTACHMENT NO: 2 - TAYLOR PARK ITEM NO: CORP.05.1


ATTACHMENT NO: 3 - SCONE PARK ITEM NO: CORP.05.1


ATTACHMENT NO: 4 - MERRIWA SWIMMING POOL ITEM NO: CORP.05.1


ATTACHMENT NO: 5 - CASSILIS RFS SHED ITEM NO: CORP.05.1


ATTACHMENT NO: 6 - MERRIWA MEDICAL CENTRE ITEM NO: CORP.05.1


ATTACHMENT NO: 7 - WHITE PARK ITEM NO: CORP.05.1


ATTACHMENT NO: 8 - ROSEDALE SPORTS COMPLEX ITEM NO: CORP.05.1


ATTACHMENT NO: 9 - 7 BOTTLEBRUSH PLACE SCONE ITEM NO: CORP.05.1


ATTACHMENT NO: 10 - GUNDY TENNIS COURTS ITEM NO: CORP.05.1


ATTACHMENT NO: 11 - ABBOTSFORD PARK ITEM NO: CORP.05.1


ATTACHMENT NO: 12 - JEFFERSON PARK ITEM NO: CORP.05.1


ATTACHMENT NO: 13 - MOONAN FLATS ITEM NO: CORP.05.1


ATTACHMENT NO: 14 - ROUCHEL TENNIS COURTS ITEM NO: CORP.05.1



Corporate Services


CORP.05.2 FINANCIAL SUMMARY & INVESTMENT REPORT



PURPOSE A monthly Financial Summary including details and levels of Investments is provided for Council’s Information. A statement from the Responsible Accounting Officer is included, advising that the projected financial position as at 30 April 2021 is satisfactory.

RECOMMENDATION That the Committee: 1. note the Fund and Function Summary Report; 2. note the Cash and Investment Report; 3. note the Responsible Accounting Officer’s Statement on the Investments; 4. note the Capital Works Expenditure Report; and 5. adopt the proposed budget variations.

BACKGROUND The Financial Summary Reports provide an overview of the net costs of services of Council. These net costs are reported by fund and by function, incorporating details of requested and approved variations. The Cash and Investment Report provides a bank reconciliation of cash and details of Council’s investments and rates of return. Details of average returns are shown against the average benchmarks of the BBSW 90-day cash rate. The Responsible Accounting Officer’s (RAO) Statement includes a statement of compliance of investments in accordance with regulatory requirements and Council’s policies, a statement on the reconciliation of cash with bank statements as well as a statement of satisfaction with Council’s financial position, or remedial action to be taken (Clause 203(2)) of the Local Government (General) Regulations 2005. REPORT/PROPOSAL The financial summary and investment report provide an overview of Council’s position, by both fund and function. The requested and previously approved variations are detailed to provide information on the effect of such variations in Council’s financial position and restricted assets. The cash and investment reports, with the RAO Statement provide details of compliance with regulatory and Council requirements.

Financial Information


Corporate Services


The year to date result for the period ended April 2021 indicates a positive variance between Actuals and Budget of $1.78m compared to $1.82m positive variance in March 2021. The following summary provides an overview of the main variations in Council’s result for the year to date ended April 2021:

Category YTD

Variation $'000

YTD Variation

% Main Contributing Factor Reason

Revenue 17 0.03%

Overall operating revenue is relatively consistent with budget with the exception of the following areas:

Childrens Services

Revenue lower than budget by $125k

Saleyards Revenue lower than budget by $290k

General Purpose Revenue lower than budget by $87k

Town Planning Revenue higher than budget by $93k

Sporting grounds and venues revenue higher than budget by $460k

Utilisation at the ELC facility and Family Day Care services have been lower than expected with lingering effects of COVID-19. Increased publicity for services progressing.

Continued lower than expected throughput of livestock at the facility to date, however numbers have improved over the last three months.

Lower than expected rating

revenue, Financial Assistance Grants (FAGS) and interest on investments.

Higher than expected

S94/S94A & statutory fees to date. In additional new grant funding received to assist with on-line ePlanning portal implementation.

Additional grant funding received from the SCCF 3 program and Crown Lands Department for McKinnon Oval Aberdeen, Merriwa Showground and Merriwa Racecourse


Corporate Services


Non-Operating Revenue & Expenditure

(497) (3.09)%

Internal Fleet Hire charges

lower than budget by $364k

Quarry revenue lower than budget by $139k.

Relatively consistent to budget

to date with slightly lower utilisation of heavy plant. Increased utilization expected to the end of the year with focus on capital works program.

Level of gravel extracted from Council pits have been lower than expected. Increased extraction volume expected to the end of the year with focus on capital works program.

Operating Expenditure

(21)

(0.05)%

Overall operating expenditure is relatively consistent with budget with the exception of the following areas: Fleet operational costs

lower than budget by $181k

Stormwater drainage maintenance lower than budget by $77k

Waste landfill costs higher than budget by $122k

Town Planning, Health and Building control costs lower than budget by $185k

Aerodrome operational costs higher than budget by $112k

Sporting Grounds & Venues service and maintenance costs higher than budget by $193k

Lower than expected service and repair maintenance & fuel consumption costs to date.

Lower than expected maintenance activities undertaken to date.

Increased cost for kerbside collection to date plus higher State Govt. Levy due to increased disposal volumes through the Scone and Aberdeen facilities.

Reduced costs due to a

number of vacancies within the Environmental and Planning Department.

Review of costs are being assessed to determine cause for current overspend.

Costs associated with general

sporting grounds and white park operations running in excess of budget allocations.


Corporate Services


Public Library cost lower than budget by $77k

Bridge maintenance costs lower than budget by $124k

RMS State Roads costs higher than budget by $215k.

Water Supply operational costs at Murrurundi and Scone higher than budget by $229k.

Review of operations is currently being completed.

Lower than expected costs

incurred on library operations following departure from Regional Library. Some collection acquisitions currently outstanding.

Lower than expected maintenance undertaken on Council’s bridges to date.

Increased works on highway for both IPWO and Routine Maintenance works for the March quarter with revenue received in May for works completed.

Costs under review to ensure

that no renewal costs have been included in general maintenance.

Capital Works Expenditure

2,285

8.63%

Highlighted cost variations include:

Sporting grounds capital works lower than by $260k

Airport development lower than budget by $482k

Omadale Brook bridge lower than budget by $81k

Tullong Road rehab works lower than budget by $170k

Projects for under the Stronger Country Community Fund program progressing with all projects expected to be completed by year-end.

Project continuing on schedule with majority of airside works nearing completion. Awaiting building contractors progress claim for April.

Project completed and opened

in March with final report to be submitted to the funding body in May.

Delays caused by weather

during April with project works continuing


Corporate Services


Sewer small to medium projects for treatment works and mains renewals lower than budget by $479k

Murrurundi new reservoir project higher than budget by $240k

Water small to medium projects lower than budget by $625k

Delay in commencement and/or progress of a number of projects. Review of these projects is continuing to be evaluated with deferral of costs to 2021/22 for a number of these projects expected.

Project continuing ahead of schedule.

Delay in commencement

and/or progress of a number of projects. Review of these projects is continuing to be evaluated with deferral of costs to 2021/22 for a number of these projects expected.

TOTAL YTD VARIANCE

1,784

Budget Position Summary $

Original Budget Position 1 July 2020 1,437 Approved Budget variations (6,135)

Net Budget Position 31 March 2021 (4,698) Net Variations Proposed in this report 0

Budget Position 30 April 2021 (4,698)

Council’s overall revised budget remains a relatively balanced budget to date, however the budget is currently enduring considerable pressure from full year operation of some business entities, commercial rental investments, investment revenues and rectification works required on capital works projects.

A full year assessment of these budgetary pressures is continuing to be conducted in order to ascertain the position of the budget with a view to provide appropriate cost saving and/or funding sources from within the current budget to fund these pressures by year-end.

In addition, Council has already critically evaluated the current position of the capital expenditure budget and applied votes and surrenders accordingly. However, further reviews will be required over the next month in order to identify the realistic outlook for delivery of the revised capital works program to the end of June 2021. Capital infrastructure projects that are unlikely to be finalised by year-end will be deferred and carried over into the 2021/22 Operation Plan during May 2021.


Corporate Services


A summary of budget variations proposed in this report are listed in the attachment to this report.

Bank Funds and Investment Report As at 30 April 2021 Council held funds totaling $28.15m. These funds were contained in its main working account and investment funds, which included its daily cash management account.

Council has maintained its investment portfolio in accordance with the adopted investments policy and has held balances of $28.04 at 30 April 2021.

A schedule identifying the individual investments held at the end of the month is noted in the attachments.

Capital Expenditure Report As at 30 April 2021 Council’s revised capital works program for the 2020/21 financial year totaled $42.5m, which has been a significant reduction to the original budget adopted of $67.2m. Based on the year to date expenditure of $24.2m to the end of April, which represents 57.00% of the overall revised budget, it is noted that over the course of the next 2 months Council needs to complete a considerable amount of work to deliver the full revised capital works program by 30 June 2021.

A full review of the capital works program is continuing with a number of proposed requests to vary the capital works program expected in May 2021 to provide a more realistic revised budget that is expected to be achieved by year end 30 June 2021 and to allow for any projects that will be carried over to 2021/22 to be recognized in the final Delivery Program and Operational Plan for 2021/22. The capital works expenditure report to 30 April 2021 is attached. OPTIONS

1. To seek clarification of the data presented. 2. To accept, reject or modify the recommendations.

CONSULTATION

Annual community consultation is undertaken with the community in regard to the Delivery Program & Operational Plan during March to June each year. STRATEGIC LINKS

a. Community Strategic Plan 2027

This report links to all aspects of the Community Strategic Plan 2027. The Finance Committee is working to achieve all of the Community Priorities.

b. Delivery Program

The Delivery Program forms the basis of the original budget shown in the Finance Report. The report is reviewed by staff and the Finance Committee on a monthly basis and changes made where deemed appropriate.

c. Other Plans

Council’s Finance Reports have links to various other plans.


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IMPLICATIONS

a. Policy and Procedural Implications

Council’s Finance Reports have links to various policies and procedures.

b. Financial Implications

As per monthly report.

c. Legislative Implications

Council is required to report against its progress on its Delivery Plan on a quarterly basis. Council undertakes this reporting on a monthly basis.

Council has particular reporting requirements under the Local Government Act and Regulations in regard to Investments and a statement from the Responsible Accounting Officer.

d. Risk Implications

There are risk implications if Council does not have an appropriate Investment Strategy and if appropriate controls are not in place in regard to Financial Management.

e. Other Implications

Nil CONCLUSION

Appropriate details are provided in relation to Council’s actual overall performance against budget to 30 April 2021 and that of its current investment portfolio.

ATTACHMENTS

1 Fund Function Summary Report - April 2021

2 Finance Budget Requests for Variations - April 2021

3 Bank & Investment Graph - April 2021

4 Investment Summary - April 2021

5 Capital Expenditure Report - April 2021

ATTACHMENT NO: 1 - FUND FUNCTION SUMMARY REPORT - APRIL 2021 ITEM NO: CORP.05.2


ATTACHMENT NO: 2 - FINANCE BUDGET REQUESTS FOR VARIATIONS - APRIL 2021 ITEM NO: CORP.05.2


ATTACHMENT NO: 3 - BANK & INVESTMENT GRAPH - APRIL 2021 ITEM NO: CORP.05.2


ATTACHMENT NO: 4 - INVESTMENT SUMMARY - APRIL 2021 ITEM NO: CORP.05.2


ATTACHMENT NO: 5 - CAPITAL EXPENDITURE REPORT - APRIL 2021 ITEM NO: CORP.05.2



Infrastructure Services


CORP.05.3 SCONE AIRPORT PROJECT UPDATE

RESPONSIBLE OFFICER: Phillip Hood - Acting Director Infrastructure Services

AUTHOR: Chris Agosto - Project Manager

PURPOSE The purpose of this report is to provide an update on the Scone Airport Project.

RECOMMENDATION That Council receive the report and note the information.

BACKGROUND This report provides information to assist the Committee to understand the current status of the project, what work has recently been completed, and the work that is forecast for the next three months, plus the revised forecast for the end of the project. REPORT/PROPOSAL

Topic Current period

Previous period

Comments

Schedule / Program

G A

The Airside Infrastructure contract is complete.

The Hunter Warbirds contract has progressed well. Works are slightly behind scheduled progress due to wet weather, but recovery is anticipated. No Extensions of Time (EOT) submitted or approved in the reporting period.

Overall contract completion by end of December 2021 still on track.

Budget G A

Airside infrastructure contract is complete.

Warbirds Visitor Attraction and Airport Terminal Contract at 25% complete.

Contingency balance is approx. $800K (3.4% total project budget). This is considered sufficient to allow completion of known scope.

Variations G A

All variations for the airside contract approved and resolved.

Submissions received for the completion of additional scope for the




security system, and fitout of the communications room.

Deliverables / Design G G

Design for downstream site drainage complete.

Awaiting ICT / AV / Security feedback prior to finalisation. Fire Suppression System and landscaping overdue but submission imminent. Concept design for the fit-out of the kitchen complete.

Risk and Issues A A

Key risk to project is the handover to new UHSC staff. This has been managed very well by thorough overlap and handover to new management staff.

Coordination of building design with UHSC Managed works including security, data, ICT.

Contractors G G Kingston Building undertaking Warbirds Visitor Attraction & Airport Terminal building works contract.

WHS G G No WHS Incidents in the month.

Indicators R = Red, A = Amber, G = Green change as appropriate. Include R, A or G letter also in case printed in grayscale.

Budget summary Council has been successful in securing funding through the Building Regional Economies Environment & Tourism Fund and Drought Stimulus fund. UHSC’s application for funding via the Building Better Regions fund was unsuccessful. Council was also successful with grant funding of $3M under the Regional Airport Program.

This period’s progress summary Warbirds Visitor Attraction & Airport Terminal

Installation of piles for the Warbirds Visitor Attraction and Airport Terminal Building.

Carpark pavement.

Airside Civil works

All works under the Contract are now complete.

Next period’s planned activity summary Warbirds Visitor Attraction & Airport Terminal

Fire suppression and landscape design submission.

Formwork, reinforcement steel fixing, and pouring of the ground floor slab.

Delivery to site and assembly of structural steel.

Airside Civil works

Potential Post-Completion Variation work including:




o The drainage works downstream including rock check dams in the existing swale.

o Asphalt engine rev-up bay on helipad.

Critical issues for attention Finalisation of outstanding design for ICT/ AV / Security, Fire Suppression and

Landscaping.

Major risks Internal resourcing – imminent changes to key staff.

Coordination of building design with UHSC Managed works including security, data, ICT.

Contract Completion Dates

Airside Infrastructure

Item Date

Original date for Completion 9th Mar 21

Extensions of Time Previously Approved Approved this month Pending

o EOT 011 – Inclement Weather

o EOT 012 – Inclement

16 days Nil 6 days

5 days

Current approved completion date 23rd Mar 21

Actual completion date 28th Apr 21

The majority of all approved extensions of time have been related to unavoidable inclement weather.

Warbirds Visitor Attraction & Airport Terminal Item Date

Original date for Completion 30th Aug 21

Extensions of Time Previously approved Approved this month





Pending

52 days 1 day 2 days 2 days 4 days Nil

Current approved completion date 12th Nov 21

Anticipated completion date 12th Nov 21




An EOT for significant delays due to the S4.55 modification was approved by UHSC. All remaining extensions of time have been related to unavoidable inclement weather.

Schedule and Milestone Chart status Table 2-1: Milestone or Key Project date status

Milestone or Key Project Date Original Baseline

Revised Baseline

Forecast Completion

Actual Completion

Comments / Notes

PWA Engagement 02 Nov 18 15 Nov 21 Ongoing

Design – WVA & Terminal 30 Nov 18 14 Jun 19 26 Sep 19 Complete

Design – Airside Civil Works 30 Nov 18 14 Jun 19 17 Jul 20 Complete

Tender – AGL 03 Jun 19 16 Jan 20 Complete

DA – WVA & Terminal 03 Jun 19 27 Aug 19 Complete

Tender – Airside Civil Works 01 Oct 19 01 Nov 19 Complete

Tender – WVA & Terminal 01 Oct 19 11 Oct 19 Complete

Neg. with Airside Tenderers 21 Aug 20 21 Aug 20 Complete

Neg. with WVA Tenderers 21 Aug 20 21 Aug 20 Complete

LOA – WVA & Terminal 04 Dec 20 27 Aug 20 21 Sep 20 Complete

LOA – Airside Civil Works 04 Dec 20 27 Aug 20 21 Sep 20 Complete

Construction – Runway Works 01 May 20 04 Dec 20 05 Dec 20 Complete

Construction – Airside Civil Works 14 Aug 20 01 Apr 21 28 Apr 21 Complete

Design – WVA & Terminal 24 Dec 20 01 Mar 21 Complete

Construction – WVA & Terminal 09 Sep 20 15 Sep 21 12 Nov 21 Construction underway

Exhibition Installation 30 Nov 21

Overall Project Completion 31 Dec 21

OPTIONS

Nil.

CONSULTATION

Director Corporate Services Property & Business Coordinator Finance Manager Manager Strategic Projects Scone Airport Committee Airport users and neighbours.

STRATEGIC LINKS

a. Community Strategic Plan 2027 This report links to the Community Strategic Plan 2027 as follows: Goal 5 A sustainable and prosperous economy.

CS18 Encourage a diverse economy whilst promoting and preserving our agriculture and equine industries.

CS19 Encourage retail and commercial business to locate and prosper within our Shire.

CS20 Encourage and support innovative industry and a diversity of businesses that provide a range of services and employment opportunities for current and future generations.

CS21 Facilitate and provide access to a range of local education and training opportunities that complements the economy.




CS23 Facilitate and support increased and innovative tourism and marketing opportunities.

Goal 6 Increase, enhance and maintain civil infrastructure, Community assets and open

spaces to meet the needs of current and future generations. CS24 Provide for replacement, improvement and additional Community and open

space infrastructure through investment, best practice and risk management.

CS25 Provide inviting public spaces that are clean, green, properly maintained, well designed, encourage active participation, family friendly and accessible to all.

We are working to achieve the following Community Priorities:

b. Delivery Program

In the current Delivery Program and Operational Plan on page 75 of Part 4, there is reference to the Scone Regional Airport upgrades by Council.

c. Other Plans

The Scone Airport Masterplan (Revised 2019) The Hunter Valley Visitor Economy Destination (2013) The Upper Hunter Country Tourism Destination Management Plan (2013) The Hunter Regional Council Regional Economic Development Strategy 2018-2022 The NSW Visitor Economy Action Plan (2012).

IMPLICATIONS

a. Policy and Procedural Implications




Nil.

b. Financial Implications

Expenditure Item Quoted / Tender

Price (Ex GST) Airside Airside Contractor Preliminaries $ 611,604.09 Sediment & Erosion & Excavations & Topsoil Stripping $ 368,542.39 Drainage and Stormwater $ 1,199,051.92 Airport Ground Lighting $ 673,778.37 Apron $ 1,080,511.90 Helipads $ 566,251.45 Runway $ 730,834.73 Taxiways & Taxilanes $ 1,780,138.62 Aircraft Grass Parking $ 194,146.20 Demolition of Existing Structures $ 103,199.41 Aircraft Washbay $ 267,336.59 Wildlife Control $ 475,000.00 $ 8,050,395.67 Terminal & Warbird Visitor Attraction HHWVA & Terminal $ 6,200,000.00 Electrical $ 339,000.00 Carpark & Roadworks $ 786,467.81 Outdoor Aircraft Display, Picnic Area & Playsets $ 100,000.00 Aircraft Displays $ 100,000.00 IT & Security $ 200,000.00 Furniture $ 120,000.00 Sewer Upgrades $ 250,000.00 Audio Visual Equipment $ 480,660.00 $ 8,576,127.81 Other Buildings and Works Hangars $ 1,536,900.00 Workshop $ 90,000.00 $ 1,626,900.00 Project Management & Consultants Project Management $ 1,131,015.93 Temporary Terminal $ 95,997.95 Building Approvals $ 166,383.98 Engineering Specialists & Consultants $ 475,631.33 Airport Certification $ 70,000.00 $ 1,939,029.19 Original Contingency $ 3,364,279.31 Remaining unallocated contingency (26 Feb 21) $ 456,073.43 Total (Ex GST) $ 23,556,731.98




Budget and Actual Expenditure year to date for 2020/21:

Cost No Item Revised Budget 2020/21

Original Budget 2020/21

YTD Actual

4738 Airside Development $14,432,574 $13,199,585 $9,997,349 Funding Funding for the complete project including the Hunter Warbirds Aviation Attraction & Terminal plus airside works:

Source of funds Amount Comments NSW Drought Stimulus Package Grant $6,504,000 Deed signed Restart NSW – Environment & Tourism $6,256,904 Deed signed Australian Government – Regional Airports Fund

$3,000,000 Grant agreement signed

UHSC loan funds $7,795,828 Total (Ex GST) $23,556,732

c. Legislative Implications A Review of Environmental Factors (REF) has been prepared for the airside works in accordance with Sections 5.5 and 5.7 of the EP&A Act and Clause 228 of the Environmental Planning and Assessment Regulation 2000 (EP&A Reg.). The recommendation from the REF is: Subject to implementation of the measures to avoid, minimise or manage environmental impacts listed in this REF, the proposed activity is recommended to proceed. An addendum to the REF was completed in March 2021 regarding the proposed airport perimeter fencing and apron flood lighting. A development application (DA111/2019-2) has been approved for the building work. A Section 4.55(1a) modification has been approved for the revised building design. d. Risk Implications Public Works Advisory (PWA) facilitated a risk workshop in 2019 that identified a number of risks with the project. The risks are reviewed by PWA and Council project team monthly. The current top five major risks are:




Risk summary – Top 6

Risks Rating Management actions Status

Coordination of building design by Kingston with UHSC Managed works including security, data, ICT.

High

Close engagement and early warning in terms of when information is required to allow building works to proceed including regular coordination meetings to ensure clear understanding.

Ongoing

Project budget is exceeded due to unforeseen additional scope (such as the fire suppression system)

High

Minimisation of non-discretionary changes to scope, adopt value engineering approach to finalisation, where possible.

Ongoing

The potential for negative stakeholder feedback remains a risk until drainage issues are resolved.

High

Prioritise development of a permanent solution to direct stormwater away from the downstream properties.

Ongoing

Operational airport with allowance for minimal periods of shutdown due to commercial agreements with business operators.

High

Procurement and contract forms to support operational requirements. Resource strategy for staged and after-hours delivery of multiple work packages. Engagement of contractors experienced in working on an operational airport.

Ongoing

Stakeholder issues with airport upgrade

High

Wider community engagement strategy to be implemented and provide updates to the community throughout the process. Communication plan to be developed and implemented. Community newsletters to be utilised.

Ongoing

Changes to key UHSC Internal project resources

Medium Alternate resources being secured and thorough handover to new staff.

Ongoing

e. Sustainability Implications The proposed works aim to help address the sustainability of the Scone Airport airside assets.




f. Other Implications Nil. CONCLUSION This report provides an update to Councillors with a review of progress of the project, highlighting any emerging risks or issues.

ATTACHMENTS

Nil.


Corporate Services


CORP.05.5 RESPONSES TO PREVIOUS QUESTIONS



RECOMMENDATION

For notation only.

BACKGROUND

The following question was raised throughout the meeting on Friday 16 April 2021 and either answered or taken on notice.

Councillor Questions

Cr Maurice Collison enquired how long the water leak at the Truck Wash at the Scone Saleyards went undetected? With the amount of staff on site, you would assume that this would have been found. Response – Director Corporate Services advised that the leak has now been fixed, but will make further enquires in regards to how long the leak was undetected. Taken on Notice.

Update – Initial leak was emanating from the fire hydrant system and there was speculation at the time of the leak emanating from the Truckwash. Over the ensuing months there was no visible leakage from the Truckwash as it was coming from the the fire hydrant which lead to the bitumen in the carpark starting to subside and the problem was then rectified straight away.

ATTACHMENTS

Nil.


Corporate Services


CONFIDENTIAL REPORTS

CORP.05.6 UPDATE ON COUNCIL PROPERTY ACQUISTIONS & DISPOSALS - MAY 2021


AUTHOR: David Gatwood - Manager Business Services

This matter is considered to be confidential under Section 10A(2) (c) of the Local Government Act, as it deals with information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

PURPOSE The purpose of this report is to provide an overview of the properties that are currently listed for sale and identify other properties that may present future opportunities for disposal, along with status of any properties being purchased.

corporate services committee agenda

Documents