ordinary council - shire of augusta-margaret...

Ordinary Council

AGENDA

FOR THE MEETING TO BE HELD WEDNESDAY, 10 MAY 2017

IN COUNCIL CHAMBERS, WALLCLIFFE ROAD, MARGARET RIVER

COMMENCING AT 5:30PM

SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 10 MAY 2017

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Meeting Notice Dear Councillor I advise that an Ordinary Council Meeting of the Shire of Augusta Margaret River will be held in Council Chambers, Wallcliffe Road, Margaret River on Wednesday 10 May 2017, commencing at 5:30pm. Yours faithfully

GARY EVERSHED CHIEF EXECUTIVE OFFICER


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ATTENTION/DISCLAIMER

This agenda has yet to be dealt with by the Council. The Recommendations shown at the foot of each item have yet to be considered by the Council and are not to be interpreted as being the position of the Council. The minutes of the meeting held to discuss this agenda should be read to ascertain the decision of the Council. In certain circumstances members of the public are not entitled to inspect material, which in the opinion of the Chief Executive Officer is confidential, and relates to a meeting or a part of a meeting that is likely to be closed to members of the public. No responsibility whatsoever is implied or accepted by the Shire of Augusta Margaret River for any act, omission, statement or intimation occurring during Council or Committee meetings. The Shire of Augusta Margaret River disclaims any liability for any loss whatsoever and howsoever caused arising out of reliance by any person or legal entity on any such act, omission or statement of intimation occurring during Council or Committee meetings. Any person or legal entity who acts or fails to act in reliance upon any statement, act or omission made in a Council or Committee meeting does so at that person’s or legal entity’s own risk. In particular and without derogating in any way from the broad disclaimer above, in any discussion regarding any planning application or application for a licence, any statement or intimation of approval made by any member or Officer of the Shire of Augusta Margaret River during the course of any meeting is not intended to be and is not taken as notice of approval from the Shire of Augusta Margaret River. The Shire of Augusta Margaret River advises that anyone who has any application lodged with the Shire of Augusta Margaret River must obtain and should only rely on WRITTEN CONFIRMATION of the outcome of the application and any conditions attaching to the decision made by the Shire of Augusta Margaret River in respect of the application. The Shire of Augusta Margaret River advises that any plans or documents contained within this agenda may be subject to copyright law provisions (Copyright Act 1968, as amended) and that the express permission of the copyright owner(s) should be sought prior to their reproduction. It should be noted that copyright owners are entitled to take legal action against any persons who infringe their copyright. A reproduction of material that is protected by copyright may represent a copyright infringement.


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TABLE OF CONTENTS

ITEM NO. SUBJECT PAGE NO.

1. DECLARATION OF OPENING .................................................................................................. 6 2. ATTENDANCE ........................................................................................................................... 6 3. DISCLOSURES OF INTEREST ................................................................................................. 6 4. PUBLIC QUESTIONS ................................................................................................................ 6 4.1. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE ................................ 6 4.2. PUBLIC QUESTION TIME ......................................................................................................... 6

5. APPLICATIONS FOR LEAVE OF ABSENCE ........................................................................... 6 6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING ..................................................... 6 6.1 ORDINARY COUNCIL MEETING HELD ON 26 APRIL 2017 ................................................... 6

7. DEPUTATIONS .......................................................................................................................... 6 8. PETITIONS ................................................................................................................................. 6 9. ANNOUNCEMENTS FROM THE PRESIDING MEMBER......................................................... 6 10. QUESTIONS OF WHICH DUE NOTICE HAS BEEN GIVEN .................................................... 6 11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS ................................................... 6 2.1. APOLOGIES ................................................................. ERROR! BOOKMARK NOT DEFINED. 2.2. APPROVED LEAVE OF ABSENCE ............................. ERROR! BOOKMARK NOT DEFINED. 3. DISCLOSURES OF INTEREST .................................... ERROR! BOOKMARK NOT DEFINED. 4. PUBLIC QUESTIONS ................................................... ERROR! BOOKMARK NOT DEFINED. 4.1. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE .................... ERROR!

BOOKMARK NOT DEFINED. 4.2. PUBLIC QUESTION TIME ........................................... ERROR! BOOKMARK NOT DEFINED. 5. APPLICATIONS FOR LEAVE OF ABSENCE .............. ERROR! BOOKMARK NOT DEFINED. 6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING .......... ERROR! BOOKMARK NOT

DEFINED. 7. DEPUTATIONS ............................................................. ERROR! BOOKMARK NOT DEFINED. 8. PETITIONS .................................................................... ERROR! BOOKMARK NOT DEFINED. 9. ANNOUCEMENTS FROM THE PRESIDING MEMBER ................ ERROR! BOOKMARK NOT

DEFINED. 10. QUESTIONS OF WHICH DUE NOTICE HAS BEEN GIVEN ......... ERROR! BOOKMARK NOT

DEFINED. 11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS ........ ERROR! BOOKMARK NOT

DEFINED. 11.1. CHIEF EXECUTIVE OFFICER ................................................................................................... 7 11.2. SUSTAINABLE DEVELOPMENT .............................................................................................. 9 11.2.1 MARGARET RIVER SPEEDWAY LEASE ............................................................................... 10 11.2.2 CLEARING OF VEGETATION AT 135 (LOT 1) BLACKWOOD AVENUE, AUGUSTA ........... 21 11.2.3 HOLIDAY HOUSE (LARGE) AT 85 (LOT 23) SHERIDAN ROAD, MARGARET

RIVER ....................................................................................................................................... 26 11.2.4 LOCAL PLANNING POLICIES LPP19 - SMALL HOUSE POLICY AND LPP20 -

SUSTAINABLE DESIGN - FOR FINAL ADOPTION ................................................................ 31

11.3. INFRASTRUCTURE SERVICES ............................................................................................. 35 11.4. CORPORATE AND COMMUNITY SERVICES ....................................................................... 37


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11.4.1 JUST HOME HOUSING ADVOCACY PROJECT .................................................................... 38 11.4.2 2017-18 DIFFERENTIAL RATES AND MINIMUM PAYMENTS FOR PUBLIC

COMMENT ............................................................................................................................... 42

12. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN ........................................... 51 13. MOTIONS FOR CONSIDERATION AT NEXT MEETING .............. ERROR! BOOKMARK NOT

DEFINED. 14. NEW BUSINESS OF AN URGENT NATURE .............. ERROR! BOOKMARK NOT DEFINED. 14.1 MEMBERS .................................................................... ERROR! BOOKMARK NOT DEFINED. 14.2 CEO .............................................................................. ERROR! BOOKMARK NOT DEFINED. 15. CONFIDENTIAL BUSINESS ......................................... ERROR! BOOKMARK NOT DEFINED. 16. CLOSURE OF MEETING .............................................. ERROR! BOOKMARK NOT DEFINED.


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Ordinary Council Meeting

1. DECLARATION OF OPENING

2. ATTENDANCE 3. DISCLOSURES OF INTEREST

4. PUBLIC QUESTIONS 4.1. Response to Previous Public Questions Taken on Notice 4.2. Public Question Time

5. APPLICATIONS FOR LEAVE OF ABSENCE

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING 6.1 Ordinary Council Meeting held on 26 April 2017

7. DEPUTATIONS

8. PETITIONS

9. ANNOUNCEMENTS FROM THE PRESIDING MEMBER

10. QUESTIONS OF WHICH DUE NOTICE HAS BEEN GIVEN

11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS


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11.1. Chief Executive Officer


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11.1. CHIEF EXECUTIVE OFFICER Nil


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11.2. Sustainable Development


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11.2.1 MARGARET RIVER SPEEDWAY LEASE LOCATION/ADDRESS Reserve 18838 Wallcliffe Road, Margaret River APPLICANT/LANDOWNER Augusta Margaret River Hot Rod Club FILE REFERENCE RES/18838 REPORT AUTHOR Nick Logan, Manager Planning and Development AUTHORISING OFFICER Dale Putland, Director Sustainable Development

IN BRIEF • The Augusta Margaret Hot Rod Club Inc (Hot Rod Club) has occupied portion of Reserve 18838

Wallcliffe Road, Margaret River (the Site) since the mid-1960’s and had a formal lease over the Site since 1978.

• The current 21-year lease to the Hot Rod Club over portion of the Site is due to expire 31 December 2017.

• In December 2000 the Minister for the Environment made an exemption order which allows speedway noise emissions to exceed the noise levels set under the Environmental Protection (Noise) Regulations 1997 (the Noise Regulations) and protects the Hot Rod Club and the Shire from potential prosecution under the Environmental Protection Act 1986.

• Since gazettal of the exemption order the Regulations have been amended and provide for provisions specifically applicable to motor sport venues with the Department of Environmental Regulation (DER) indicating that the development of noise management plans for motor sport venues is preferable to exemption orders.

• Due to the potential costs associated with preparation of a noise management plan the Hot Rod Club did not wish to pursue that option and the Council decided in June 2016 that any extension of the Hot Rod Club lease should be under the parameters of the current exemption order.

• Consultation was undertaken with the community, with a particular focus on residents in proximity to the Site. The results of consultation showed a significant majority in favour of the retention of the Speedway through extension of the lease to the Hot Rod Club.

• The provisions of future lease terms have been the subject of discussion with the Hot Rod Club. Given the potential issues associated with the medium to long-term development of surrounding land it is recommended that the new lease be for a shorter duration of 5+5 years, enabling the Shire to progressively reassess the continued operation of the Speedway in the context of the growth of the Margaret River Townsite.

RECOMMENDATION That Council enters into a lease with the Margaret River Hot Rod Club for portion of Reserve 18838, including the following terms: • The lease being for a period of five years with an additional five-year option at the discretion of both

parties; • A requirement to assess and remediate as necessary any contamination arising as a result of

speedway operations; and • A lease term which places obligations on the Hot Rod Club to environmentally manage the Site,

including requirements in relation to the storage of fuels and oils, the tidiness of the Site and disposal of stormwater. This term would be in lieu of requiring the preparation of a detailed management plan for the Site.

THE SITE The Site is a portion of approximately 22.5 hectares of Crown land (Reserve 18838) under Shire management and is separated from the remaining portions of Reserve 18838 by Reserve 38103, as shown in Figure 1 below. The Site was vested in the Shire on 10 July 1970 and the management order applicable to the Site provides it be used for the designated purpose of “Recreation” only.


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The Site is located south of Wallcliffe Road and approximately 2.3 kilometres west of the Margaret River town centre. Development on the Site consists of the racetrack and associated buildings while the majority of the Site is vegetated. In March 2014, the Shire granted development approval for the construction of a telecommunications tower on the Reserve and, by way of a deed of partial surrender of lease, the Hot Rod Club agreed to excise this area from the current lease. The Site is relatively level and a watercourse traverses the far south-east corner.

Figure 1. Location Plan Larger freehold properties adjoin the Site to the west and to the east, while Reserve 38103 and remaining areas of Reserve 18838 are located to the south of the Site. Smaller rural residential freehold lots are located across Wallcliffe Road to the north while the Basildene Manor tourist accommodation is located approximately 400 metres east of the Speedway racetrack. There is no residential development on the rural property to the east of the Site, which is identified as a Development Investigation Area in the Local Planning Strategy. There are existing dwellings within a distance of 200m to 300m from the Speedway racetrack, located on the rural residential properties to the north of Wallcliffe Road. Two freehold properties owned by Cape Mentelle Vineyards Ltd are located to the west of the Site and development on these properties consists of vineyards, dams and associated vineyard buildings. The distance from the Cape Mentelle cellar door to the Speedway is approximately 1.3 km. Figure 2 shows the number of properties and residences within 1km of the Speedway. The Margaret River Pony Club lease applies to a separate portion of Reserve 18838 to the south-east and is separated by Reserve 38103.


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Figure 2. Residences within 1km from Speedway BACKGROUND The Hot Rod Club has occupied the Site and operated the Speedway with the first lease agreement made on 3 January 1978 for a term of 21 years. During the occupation of the Site, noise from the Speedway has become a matter of contention as a result of encroaching residential development. The relevant background regarding the Speedway can be summarised as follows: • Speedway was established in the mid-1960’s; • Formal lease entered into with the Hot Rod Club in 1978; • In October 1992 the Shire informed the Hot Rod Club that the lease granted in 1978 would not be

renewed until relocation of the Speedway was resolved; • Subsequently, in November 1992, the Environmental Protection Authority (EPA) advised the Shire

that prior to approving further residential development the Shire should ensure that it considers the impacts of residential development and forced relocation on the Speedway;

• In April 1993 the Shire received advice from the Minister for the Environment stating that it supported the EPA advice and that it would be very disappointed if the Shire used the Environmental Protection Act 1986 (EP Act) to manage a noise pollution situation it had, through its own decisions, created;

• In August 1993 the Hot Rod Club wrote to the Shire requesting it consider alternative sites for the Speedway. Further investigation was undertaken to identify alternative locations for the Speedway, however after a large amount of investigation and effort on behalf of the Shire and the Hot Rod Club, all identified alternatives were deemed unsuitable;

• In September 1995 the Speedway pursued a Noise Exemption Order under the Noise Regulations. In January 1996 the Minister for the Environment granted the exemption order so as to give the Hot Rod Club more time to relocate, and because the Speedway had operated at the Site prior to the encroachment of residential development;

• A new lease agreement was entered into between the Shire and the Hot Rod Club on 24 December 1997. The term of the lease was for a period of 10 years from 1 January 1998 with a further 10-year option. The lease also contained clauses addressing noise and compliance with future exemption orders. This lease is still current and applicable to the Site;


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• On 22 December 2000, the Environmental Protection (Margaret River Speedway) Exemption Order 2000 was published in the Government Gazette (WA);

• In April 2007, the Shire granted the further 10-year lease extension, informed the Hot Rod Club that it consents to the renewal of the further term and that the expiry date of the lease will be 30 December 2017 with no further option to renew. There does not appear to be any records of exploration of noise or relocation as part of the Shire’s consideration of the request to renew;

• In 2011 the Shire’s Local Planning Strategy (LPS) was endorsed by the WAPC. The LPS identifies the Site and land adjacent for future development as expansion of the Margaret River Townsite;

• In March 2011 Council adopted the Land Asset Management Plan (LAMP) which resulted in a resolution to prepare a scheme amendment to rezone the Site to rural residential, subject to appropriate studies being undertaken;

• In March 2012, as part of its review of LAMP, Council resolved to change the rezoning priority of the Site from medium term to long term;

• A previous review of LAMP was undertaken in June 2014 with Council resolving to remove the Site from LAMP because, although the Shire’s LPS contemplates the rezoning and development of the Site, the strategic timeframe exceeds the timeframe in LAMP and would not be viable for at least another 10 years.

Following an approach from the Hot Rod Club to renew their lease a report was presented to Council on 8 June 2016, where the Council varied from the recommendation to require the Hot Rod Club to prepare a Noise Management Plan and decided: CR TOWNSHEND, CR KENNAUGH OM2016/90 That Council: a) Supports the preparation and execution of a new lease agreement under the Chief Executive

Officer’s delegated authority pursuant to section 5.42 of the Local Government Act 1995 in favour of the Augusta-Margaret River Hot Rod Club (Hot Rod Club) over a portion of Reserve 18838 with the new lease commencing on 1 January 2018 and expiring on 16 May 2019;

b) Directs the Chief Executive Officer to undertake consultation with the community on further extension of the lease of portion of Reserve 18838 to the Hot Rod Club, to be used under the parameters of the current Noise Exemption Order; and

c) Considers further extension of the lease of portion of Reserve 18838 to the Hot Rod Club following the consultation process.

CARRIED 7/0 On 12 April 2017, the Council considered a request for in-principle support to rezone Lot 632 Wallcliffe Road, to the immediate east of the Site. Lot 632 Wallcliffe Road is identified for medium term ‘clustered rural residential/special residential’ development. The Council granted in-principle support to the rezoning of Lot 632 pending satisfactory resolution of a number of significant issues, including mitigation of the effects of noise from the potential ongoing use of the Speedway. The effect of the constraints on development of Lot 632 are likely to see a protracted planning process to resolve issues prior to any development being undertaken. CONSULTATION AND ADVICE Community consultation was undertaken following the Council decision in June 2016. This included advertisement in a local newspaper, promotional material and use of the Shire’s online engagement tool through the Shire’s website, and directly corresponding with all landowners within a 2km radius from the Site. There were also articles in local newspapers drawing the attention of the community to the issue. The following graphs describe a summary of responses, which was a significant level of support for continued operation of the Speedway.


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0 100 200 300 400 500

Yes

No

Undecided

No Option

475

38

1

7

Response when asked if in favour to the extension of the lease to the Margaret River

Hot Rod Club beyond 16 May 2019

Yes

No

Undecided

No Option

0 100 200 300 400

Support…

Support…

Objection…

Objection…

No options

107

367

29

10

8

Support or object for residents within a two minute drive of the Margaret River

SpeedwaySupportwithin 2 min drive

Supportnot within 2 min drive

Objectionwithin 2 min drive

Objectionnot within 2 min drive

No options

A number of specific comments were made in particular submissions. These have been summarised and are included as Attachment 1. In general, support is based around the venue being a good asset for the community that has a social benefit. Objections are based around the undesirable impacts of noise and the increasing impacts of that noise on additional residential development around the area. Further discussions with the Hot Rod Club have also been undertaken on likely lease terms. In particular, it was discussed that the term of the lease was likely to be for a 5+5 year period, a shorter duration than the previous lease term. This would enable the Shire to assess the implication of extending the lease after 5 years and reassess the potential development of adjacent land and periodically check the need for progressing the DIAs identified in the LPS.


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STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Legal Advice Legal issues for the Shire in pursuing an extension to the lease for the Speedway is included as Confidential Attachment 2. Environmental Protection Act 1986 (EP Act) Section 49(2) of the EP Act provides that where a person or local government intentionally causes noise pollution or allows noise pollution to be caused it commits an offence. The penalty for committing such an offence for local governments is a penalty not exceeding $1,000,000 and a daily penalty not exceeding $200,000. The Exemption Order currently acts to exempt the Shire and the Hot Rod Club from this offence. Environmental Protection (Margaret River Speedway) Exemption Order 2000 (Exemption Order) The Exemption Order was gazetted in 2000 and is shown at Attachment 3. The Speedway is the only speedway in Western Australia operating under an Exemption Order. The Exemption Order was made under the Environmental Protection Act 1986 (EP Act) and causes Part V of the EP Act (except for sections 71, 74, 76, 77 and 78) to not be applicable. It enables race meetings to be conducted even though the resultant noise levels contravene the Regulations and the Hot Rod Club cannot be prosecuted for these contraventions. The Exemption Order does not have an expiry date and its duration is dependent on the Hot Rod Club being the leaseholder at the Site. Clause 4(1) of the Exemption Order provides that the Exemption Order will apply while the operator is the leaseholder of the Speedway. Once a lease expires the Exemption Order will cease to apply and the Hot Rod Club and the Shire may be liable under section 49(2) of the EP Act if the Speedway is still operating. The Exemption Order contains provisions in terms of allowable sound levels, number of race meetings, types of racing vehicles and recording of sound levels of actual race vehicles. Requirements also extend to the publishing of race meeting times and reporting requirements. The number of meetings and the nature of permitted use is governed by the Exemption Order rather than the lease terms. Specifically, the Exemption Order provides the following: Meetings • 10 meetings per race season from 15 October to 15 May with a maximum of 4 meetings featuring

sprint car, super sedan & late model sedans as these are deemed to produce the loudest noise at 95dB.

• Race meetings containing sprint cars, super sedans and/or late model sedans are limited to 5 races. • A meeting can only be held on consecutive days once per season. • The racing program must be published in the Augusta-Margaret River Times and the Augusta-

Margaret River Mail in the last 2 weeks of September prior to the season. • Race meetings must be completed within 5 hours (between midday-10pm). Race car sound levels • All race vehicles racing at a meeting must be scrutinised in terms of noise levels by an authorised

person. This is undertaken prior to the season with a certificate issued. Should modifications be undertaken later during that season, the vehicle must be reassessed and a new certificate issued.

• 95dBLa slow for sprint car, super sedan and late model sedan. • 90dBLa slow for all other vehicles. • Race car sound levels are determined prior to the season and taken from within 30m of inside of

the track. Three consecutive laps must be undertake within a period not greater than 4 times the average race winning lap time of previous season of the same vehicle class (then take average sound level).

• Should a race vehicle be noted to be producing a noise level beyond 90dB or 95dB at a race meeting the Hot Rod Club may prevent that vehicle from continuing at that meeting.

Residential levels • Sound levels must be taken during at least two meetings – one of which must be of a meeting where

sprint cars, super sedans & late model sedans are featured (95dB).


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• Sound level recordings are to be taken adjacent to 2 approved residential premises (the Exemption Order is silent on length of recording other than the standard requirement within the Regulations which is 15 minutes).

• The 2 approved residential premises are: 1. Basildene Manor at Lot 100 Wallcliffe Rd (A1029) - 10m north of NW corner of building; and 2. Lot 501 Devon Rd (A9519) - 15m south of SW corner of dwelling.

Reporting • A report of recordings must be submitted to DER and the Shire within 30 days of the meeting. The Minister may revoke the Exemption Order. This is a key point in that tenure of the Hot Rod Club, if a lease is granted, remains at the discretion of the Minister for the Environment. Environmental Protection (Noise) Regulations 1997 (Regulations) The Regulations assign levels of noise for various premises and where a motor sport venue cannot practicably comply with these levels, Division 3 of the Regulations allows the venue occupier to apply for the approval of a noise management plan. If the noise management plan is approved, noise emissions from the venue are permitted to exceed the assigned levels in the Regulations, provided the venue operates in accordance with the approved noise management plan. The key difference between a noise management plan and the Exemption Order is that the noise management plan is at the discretion of the CEO of the Shire (albeit a right of review exists to the Minister for the Environment). Contaminated Sites Act 2003 (CS Act) In Western Australia, contaminated sites are regulated by DER through the administration of the CS Act which provides the framework for the identification, recording, management and remediation of contaminated sites. The CS Act includes the requirement for mandatory reporting of known and suspected contaminated sites to DER by landowners, occupiers and polluters with all reported sites recorded on the contaminated sites register. Reported sites are classified by DER, in consultation with the Department of Health, as one of seven classifications based upon the available information and risk they pose to human health and the environment. The CS Act includes provisions for investigation, monitoring and/or remediation of contaminated sites. Investigating and cleaning up contaminated sites is, in most cases, the responsibility of the polluter or current site owner. The DER guidance documents on contaminated sites reporting provides a list of potentially contaminating activities and land uses, and associated potential contaminants. Motor racing venues are included on the list due to the potential contamination of the land by petroleum hydrocarbons, monocyclic aromatic hydrocarbons (e.g. benzene, toluene, ethyl benzene and xylenes), solvents, resins, heavy metals and polycyclic aromatic hydrocarbons. It is noted, however, that a site is not necessarily contaminated nor requires any notification to the DER solely because a potentially contaminating activity or land use has occurred on the site. If however it is known that a potentially contaminating activity has occurred on the site and there are indicators of possible contamination, then it is a mandatory requirement on the landowner to report the site to the DER. Local Government Act 1995 (LGA) The process required for the disposition of property under the LGA does not apply because the Hot Rod Club is a non-profit organisation and such a disposition is exempt under section 30(2)(b) of the Local Government (Functions and General) Regulations 1996. Land Administration Act 1997 (LAA) Any lease over a reserve managed by a local government is to be approved by the Minister for Lands pursuant to section 18 of the Land Administration Act 1997.


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STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2016-2020 Goal 2: Welcoming and inclusive communities Community Outcome 2.3: Strong community groups and networks Goal 3: Managing growth and sustainability Community Strategic Plan 2033 (CSP) The granting of the new lease to the Hot Rod Club is consistent with Goal 2 of the Shire’s CSP, which is to provide a welcoming and inclusive community. This is also balanced against managing growth sustainably at Goal 3. Corporate Business Plan 2016-2020 (CBP) Goal 2: Welcoming and inclusive communities Community Outcome 2.1: Sense of identity and belonging Strategic Response: Support community celebrations, events and local festivals Service level strategy/plan: Provide professional advice and support to community groups. PLANNING FRAMEWORK Local Planning Scheme No. 1 (LPS1) Under LPS1, the Site is zoned as a Reserve for Parks and Recreation. There are no relevant provisions relating to the current lease under LPS1. Surrounding zones include Rural Residential to the north, General Agriculture to the east, Tourism to the east, Priority Agriculture to the west and Reserve for Parks and Recreation to the south. Local Planning Strategy (LPS) The LPS was endorsed in April 2011. The strategic timeframe of the LPS is 15 years, with an interim review due in the 2017/18 financial year. Under the LPS the Site is designated as ‘Parks & Recreation’ within ‘Development Investigation Area M11’ as shown at Figure 3. The Parks and Recreation land use category supports a range of active and passive recreation and community facilities including parks, sporting grounds and walk trails and may contain areas of local environmental value that are worthy of protection. The LPS also states that these community facilities should be developed to accommodate a range of uses and be adaptable to future changes in use and users.


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Figure 3. Excerpt from LPS The LPS identifies a number of Development Investigation Areas (DIAs) to provide strategic guidance as to the possible future major greenfield development areas within the Shire. The inclusion of land within a DIA does not mean that it will definitely be supported for subsequent rezoning. This means that DIAs will be subject to detailed investigation to ensure suitability for the envisaged land use, the need for that land use, and the appropriately staged release of land. The LPS states that the Site has a Staging Priority of 5 (longer term) and that development is to be clustered rural residential/special residential, with the protection of remnant vegetation and the indicative western perimeter road alignment being primary planning considerations. The staging priority given to the Site is the lowest priority as compared to the other DIAs under LPS. The property to the east of the Site is designated as DIA M10, which means that it is potentially suitable for clustered special rural/special residential development. This property has a staging priority of 2 which is a higher staging priority than the Site, however development of this Site would be subject to resolution of potential conflict issues with operation of the Speedway (although this is not specifically mentioned in the LPS). The other sites adjoining the Subject site includes classifications of Tourism, Priority Agriculture and Reserve under the LPS. State Planning Policy 6.1 Leeuwin-Naturaliste Ridge (SPP6.1) Under SPP6.1 the Site is identified as a Development Investigation Area which is explained as a guide to potential development requiring detailed investigation prior to subdivision and development. FINANCIAL IMPLICATIONS It is reasonable to lease the Site to the Hot Rod Club for the nominal ‘pepper corn’ rent given that it is a not-for-profit community organisation. As a lessee of the Site, the Hot Rod Club will be responsible for the payment of all services such as electricity, gas and water to the Site. The Hot Rod Club will also be responsible for public liability and building insurance.


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SUSTAINABILITY IMPLICATIONS Environmental Contamination Motor sport venues can pose environmental risks through:

(a) noise emissions; (b) leaks or spills of chemicals or petroleum hydrocarbons from storage areas, accidents and

crashes, mechanical servicing areas and on the race tracks; (c) turbid or contaminated stormwater runoff; (d) inappropriate containment or disposal of solid waste and wastewater from mechanical servicing

and wash-down areas; and (e) amenities for the congregation of large numbers of people.

Motor racing activities may cause environmental contamination of the Site and as such the provisions of CS Act are relevant and should be considered by the Shire in leasing a parcel of land under its responsibility for a use which if not controlled, has the potential to contaminate the land on which it occupies. Currently there are no indications that the Shire is aware of that would suggest contamination of the Site that would require the Shire to report it as contaminated to the DER. To safeguard against this potential eventuality, it is recommended that renewal of the lease be subject to a requirement that prior to the termination of the lease an assessment is made of the Site to determine if any remediation is required as a consequence of speedway activities. It is not intended that remediation would be required for any contamination arising as a consequence of the adjacent disused landfill. If the renewal of the lease is not supported and the land use of the Site is proposed to be changed to a more sensitive use it will trigger a further site contamination assessment through the planning process to ensure that the Site is suitable for the proposed land use. There is currently no clause in the current lease to cover the remediation and clean-up of the Site by the Hot Rod Club should it be proven as contaminated due to the existing activities on the leased portion of the Site. The Shire will be responsible for these costs should it wish to rezone the site for a more sensitive land use. Any new lease should address the potential contamination of the Site. Drainage A Shire officer has inspected the drainage from the racetrack to determine any environmental impacts from this drainage. The officer noted that the drain is close to the boundary but that it appeared to discharge relatively small amounts of water. The officer noted a large amount of litter (plastic, carpet, tiles, tyres, bricks and bottles) in the fill that supports this pipe. The pipe discharge area itself shows signs of minor erosion, but there is also some gully erosion in the area along the length of the pipe, presumably from overland flows. Neither of these issues are significant but should be addressed by the Hot Rod Club as part of overall management required as a provision of any new lease that also addresses the storage and use of fuels and oil. Social The Hot Rod Club provides social benefit to the Shire through the provision of alternative recreational activity and community interaction. Noise emissions largely impact on nearby occupiers that may cause social issues associated with land use conflict. It would appear that the majority of residents in proximity to the Speedway support ongoing activity. Economic The Hot Rod Club events provide an alternative form of entertainment for visitors to the area, which supports the local economy of the area. A long-term lease will restrict the flexibility to facilitate development in the area as envisioned by the LPS. CONCLUSION The rate of development occurring in close proximity to the speedway is relatively low, with subdivision and development of the Devon Drive and Merino Way areas to the north and north-east largely completed. The re-subdivision of the Kevill Road East and Ironstone Place areas is the only active areas of new development occurring, with most new dwellings in these areas in excess of 1km from the Site. The relevance being that continued operation of the Speedway in the medium term will have


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largely the same impacts as it does at present, which appears acceptable to the majority of those that responded. Given the positive elements that the Speedway brings to the Shire, it is recommended that the Speedway be permitted to continue. Given the longer-term intent for the Site and adjacent land in the LPS, a lease of 10+10 years would compromise the strategic direction set by the Shire to consider development options for the Site and adjacent land. A term of 5+5 years would enable the continued use of the Speedway to be subject to periodic review over a reasonable timeframe and in the context of the pressure for development of land in the future. There are several reasons why a renewed lease is likely to have modified terms, in particular with recognition of the following: • The standard terms of a lease have been updated to a more contemporary standard. • A requirement to assess and remediate as necessary any contamination arising as a result of

speedway operations. • A lease term which places obligations on the Hot Rod Club to environmentally manage the Site,


VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council enters into a lease with the Margaret River Hot Rod Club for portion of Reserve 18838, including the following terms: • The lease being for a period of five years with an additional five-year option at the discretion of both

parties; • A requirement to assess and remediate as necessary any contamination arising as a result of

speedway operations; and • A lease term which places obligations on the Hot Rod Club to environmentally manage the Site,


ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Summary of Submissions 2. Confidential – Legal Advice 3. Speedway Exemption Order


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11.2.2 CLEARING OF VEGETATION AT 135 (LOT 1) BLACKWOOD AVENUE, AUGUSTA LOCATION/ADDRESS 135 (Lot 1) Blackwood Avenue, Augusta APPLICANT/LANDOWNER Jaime Challis - Bruce Crabb, Riverfront Enterprises P/L FILE REFERENCE PTY/3055 P216757 REPORT AUTHOR Lucy Gouws, Planning Officer AUTHORISING OFFICER Dale Putland, Director Sustainable Development

IN BRIEF • Retrospective planning approval is sought for the clearing of vegetation that has been undertaken

at Lot 1 Blackwood Avenue, Augusta. • The owner of Lot 1 did not apply for approval as required prior to undertaking the clearing works.

The owner had obtained a demolition license for removal of existing buildings. • The Shire required the owner to cease works on Site, and the owner has applied for retrospective

approval, to enable determination whether approval would otherwise have been granted. • The proposal is recommended for approval subject to specific conditions that require the removal

of the cleared vegetation from the site. RECOMMENDATION That Council grants Planning Consent pursuant to Clause 68(2) of the Deemed Provisions of Local Planning Scheme No. 1 for Clearing of Vegetation at 135 (Lot 1) Blackwood Avenue, Augusta subject to compliance with conditions. LOCATION PLAN

Figure 1: Location plan of the site TABLED ITEMS Vegetation Assessment, January 2010 BACKGROUND Lot 1 Blackwood Avenue, Augusta (the Site) was previously occupied by the ‘Doonbanks Caravan Park’. In 2009, the Site was rezoned from Tourist Accommodation to Residential R25. A subsequent structure plan was submitted and adopted by Council at the meeting of 11 August 2010. The structure


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plan guides the future subdivision of the Site into 26 residential lots ranging from 561 – 789m² in area (see Figure 2 below). The structure plan included a vegetation assessment that was undertaken in 2010 (see Tabled Item for the complete assessment). The assessment reviewed the health of 82 existing trees within the Site. Of the 82 trees, none were found to have a full crown, and most were generally of poor health. On the basis of tree health, of the 82 trees only 5 were found to be worthy of being retained. These trees have been retained. Future subdivision of the Site is likely to result in virtually all vegetation being removed other than the foreshore reserve and the 5 trees identified in the vegetation assessment. At this stage a landscape plan is generally not required, and is usually submitted when the land is actually subdivided and developed for residential purposes. This is due to the fact that landscaping and rehabilitation needs to be in the context of the future infrastructure and development. The structure plan identifies that the trees on the road verge of the Site adjacent to Blackwood Avenue are to be ‘retained where appropriate’. The intention is for the rehabilitation of the road verge along Blackwood Avenue to provide a buffer between the Site and the road. Where possible trees are to be retained, but where the trees are found to be of poor health given that they have been severely pruned they are to be replaced with ‘appropriate selection of native species’. The trees within the verge have not been cleared, (see Figure 1, above) and still remain as a buffer to the Blackwood Avenue. Further enhancement of the buffer would be considered in the context of the future development. A group of mature trees exist within the central portion of the site adjacent to the Cassidy Street road reserve. It is anticipated that in the future only some of these trees are likely to remain once the proponent progresses with the subdivision of the Site, as they are partly located within a future lot.

Figure 2: Structure Plan adopted in 2011


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PROPOSAL The application under assessment seeks retrospective planning approval for the clearing of vegetation that has been undertaken without obtaining prior planning approval. The proponent obtained a demolition license for the demolition of former buildings in association with the former caravan park known as Doonbanks. The applicant has advised that the clearing of vegetation was undertaken to address safety and visual concerns that was raised by the Augusta Community Association (ACDA). A letter to the owner of the Site dated 3 May 2016 from the ACDA has been provided with the application. The letter requested that: ‘Doonbanks Caravan Park in Augusta is looking very untidy and posing a serious fire risk to the community… The meeting agreed that we should bring this matter to your attention, in the hope that a general clean-up can take place to reduce the current hazards.’ PLANNING FRAMEWORK Local Planning Scheme No.1 (LPS1) Clause 5.20 of the LPS1 sets out the provisions relevant to clearing of vegetation, providing that all clearing requires prior development approval, with the following exceptions: - Any vegetation that is dead or dangerous; - Any clearing of non-indigenous vegetation; and - Minor pruning of vegetation for maintenance purpose that does not endanger the life of that

vegetation.

These exemptions do not apply to areas of vegetation that are identified as being retained within a structure plan. The applicant has not justified the clearing that has been undertaken under the above clearing provisions of the LPS1, but has indicated that the clearing was strictly in accordance with the vegetation assessment submitted and approved with the structure plan in 2010 (see Tabled Item). The clearing works that have been undertaken are consistent with the structure plan and have not gone beyond the clearing that was anticipated as part of the future subdivision of the Site. It is acknowledged that this does not exempt the clearing works from the requirement for prior planning approval from the Shire. The process in which the proponent has undertaken the clearing works has not followed the correct procedure by obtaining the necessary planning approval first. However it is acknowledged that the clearing that has been undertaken is in accordance with the structure plan, and would likely have been supported if a planning application had been submitted prior to works being undertaken. CONSULTATION Shire’s Environment Officer - Vegetation Assessment (2010) was prepared to support the Structure Plan. The report assessed

80 trees on the site and concluded that only five (5) were worthy of being retained. A number of the trees were considered to be hazardous, poorly pruned and with a number of poor health.

- The approved structure plan approved will result in the majority of the vegetation being removed from the site.

- The structure plan refers to three areas where trees are to be retained, clearing does not appear to have impacted upon these areas.

- Clearing has been undertaken where the future internal road networks and future residential development is shown in the approved structure plan.

Shire’s Environmental Health Business Unit - Approval from the Manager of the Environmental Health Business Unit is required to burn green

waste on the site. - All septic systems are required to be decommissioned. Appropriate planning conditions and advice notes have been included to reflect the comments received.


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OFFICER COMMENTS The reasonable outcome of this application process is to ensure that the remediation of the Site and the appropriate removal of the cleared vegetation are all undertaken in such a way that they do not impact neighbouring landowners. It is also of great importance that the clean-up of the Site does not affect the remaining vegetation. In terms of punitive measures further consideration has been given to either prosecution or issue of an infringement. Given the nature of the works undertaken, prosecution is considered excessive. The issuing of an infringement (modified penalty of $500) is also considered unnecessary given the applicant has been required to pay three times the standard application fee as a retrospective application. It is also understood that the landowner genuinely believed that all necessary approvals were in place. The works therefore are not considered to have been undertaken to deliberately avoid the need for prior planning approval. The clean-up of the Site following the demolition of the buildings including the rubble and building materials would not normally generate the requirement for planning approval, this is a matter that is addressed through the demolition license. The Site would normally have been cleaned up earlier; however the landowner was required to cease all works, which has resulted in the Site being left. Given that planning approval is not required for demolition works, a condition requiring the removal of the buildings is unnecessary. LEGAL IMPLICATIONS Nil STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2016-2020 Goal 3: Managing growth sustainably. Community Outcome: Clearly define areas for growth and renewal Strategic Response: Implement LPS1 FINANCIAL IMPLICATIONS The penalty for development commenced prior to obtaining planning approval is the fee, by way of penalty three times the fee. The applicant paid this upon submission of this application. SUSTAINABILITY IMPLICATIONS Environmental The proposal reflects the requirements of the structure plan in relation to the vegetation that is to be removed at the time the Site is subdivided. Social Conditions of approval are to ensure the removal of the cleared vegetation does not affect the amenity of nearby residences. Economic Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council grants Planning Consent pursuant to Clause 68(2) of the Deemed Provisions of Local Planning Scheme No. 1 for Clearing of Vegetation at 135 (Lot 1) Blackwood Avenue, Augusta subject to compliance with the following conditions: CONDITIONS 1. The development is to be carried out in compliance with the plans and documentation listed below

and endorsed with Council’s stamp, except where amended by other conditions of this consent. Plans and Specifications P1 & P2 received on the 19 December 2016


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2. The existing trees are to be retained and any trees on adjoining properties shall not be impacted

by the demolition and site clean-up works. During these works areas of existing vegetation must not be damaged; through the placement of fill, rubble or rubbish.

3. Vegetation cleared and piled on site shall be processed on site by being mulched and spread or removed within 3 months of the date of this approval. The cleared vegetation is not permitted to be burnt on site.

4. Clearing or pruning of roadside vegetation is prohibited without the prior written approval of the Shire. (I)

ADVICE NOTES a) You are advised of the need to comply with the requirements of the following other legislation:

(i) The Bush Fires Act 1954 as amended, Section 33(3), Annual Bush Fires Notice applies to this property.

ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS Nil


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11.2.3 HOLIDAY HOUSE (LARGE) AT 85 (LOT 23) SHERIDAN ROAD, MARGARET RIVER LOCATION/ADDRESS 85 (Lot 23) Sheridan Road, Margaret River APPLICANT/LANDOWNER Justine Gray & Lois Blight FILE REFERENCE PTY/4921 / P217212 REPORT AUTHOR Lucy Gouws – Planning Officer AUTHORISING OFFICER Dale Putland – Director of Sustainable Development

IN BRIEF • The Shire is in receipt of an application to use the existing dwelling at Lot 23, Sheridan Drive,

Margaret River for short stay accommodation purposes. • It is proposed to use the dwelling on Site as a Holiday House (Large) accommodating a maximum

of 8 guests. • No previous approvals have been issued to allow the dwelling to be used as a Holiday House. • The application was advertised under the provisions of the Scheme. One objection was received

during the advertising period. • The application meets the provisions of Local Planning scheme No.1 (LPS1) and Local Planning

Policy 7 - Holiday Houses (LPP7).

RECOMMENDATION That Council approves the application for Holiday House (Large) at 85 (Lot 23) Sheridan Drive, Margaret River for an initial 12 months subject to conditions. LOCATION Lot 23 Sheridan Drive (the Site) is located on the eastern side of Caves Road, approximately 4km south of Margaret River townsite (refer to Figure 1 below). The Site is situated within the Rural Residential zone and is 3.2ha in area. The Site is developed with a single dwelling, outbuilding and water tanks. LOCATION PLAN

Figure 1: Location of proposed Holiday House TABLED ITEMS

The Site


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Nil PROPOSAL Planning approval is sought to use the existing single storey 4 bedroom dwelling as a Holiday House (Large) for a maximum of 8 guests. The dwelling is located within the southern portion of the Site, and benefits from uninterrupted northern views to a creek line within the Site. Outdoor living areas are located at the rear (northern side) of the dwelling and is over 120m from the nearest dwelling on adjoining properties. Substantial vegetation screening exists along the boundaries of the Site and neighbouring properties. The proponent has nominated a local manager for the proposed Holiday House. BACKGROUND Planning approval for a dwelling was granted in 1993. In the same year, planning approval was issued for a shed to be used for weekend accommodation up to a maximum of 3 months in any one-year period. This use right still exists as the approval is open-ended. CONSULTATION AND ADVICE The application was referred to surrounding landowners for comment. At the conclusion of the consultation period one submission had been received, which objected to the application on the following grounds:

• Not appropriate to allow Holiday Houses within the area; • Holiday Houses impacting residences peace and quiet; • Property owners buying with no intention to reside in the area; • Holiday Houses lead to noise and increased traffic; • Responding to bushfire concern; and • Impacts to biodiversity in the area.

A full breakdown of the submission is provided in the schedule of submissions included as Attachment 1. PLANNING FRAMEWORK Local Planning Scheme No. 1 (LPS1) The Site is zoned Rural Residential. A Holiday House (Large) is a discretionary land use in the zone. A discretionary land use is not permitted unless the local government has exercised its discretion by granting development approval. The proposal meets the definition of “Holiday House (Large)”, which reads as follows: A ‘Holiday House (Large)’ means “... premises conforming to the definition of “Holiday House” with the exception that the premises provide short stay accommodation for more than 6 people but not more than 12 at any one time.” A ‘Holiday House’ means “… a dwelling, grouped dwelling or multiple dwelling used to provide short-term accommodation for no more than six (6) people but does not include a bed and breakfast.” Local Planning Policy 7– Holiday Houses (LPP7) The policy provides guidance on the appropriate location, scale and use of single and grouped dwellings for ‘Holiday Houses’ and ‘Holiday Houses’ (large) in the Shire. The policy identifies a number of elements to be considered in the assessment of any application. These elements comprise location, occupancy, amenity, design/layout and management. The policy provides a set of acceptable development standards for each of the elements plus performance criteria to guide any discretionary decision-making where the acceptable design standards are not met. LPP7 supports Holiday Houses within the Rural Residential zone. The proposed use meets the acceptable development standards of all the elements. It is noted that the acceptable development


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standard in relation to not sharing a boundary with more than three other lots only applies to larger residential zoned lots. An upgrade of the existing on-site wastewater management system is required to accommodate the proposed 8 guests. It is recommended to apply a condition that limits the guest numbers to 6 guests until the wastewater system has been upgraded to the satisfaction of the Shire. The guest numbers are recommended to be restricted to a maximum of 8 following the satisfactory upgrade of the onsite wastewater system. PLANNING ASSESSMENT The primary concerns raised in the objection are discussed below: Not Appropriate Allowing Holiday Houses Within the Area The Scheme allows for the Holiday House land use as a ‘discretionary’ use in the zone. LPP7 acknowledges the Rural Residential zone as an appropriate location for Holiday Houses. Holiday Houses Impacting Residences Peace and Quiet Rural Residential sites provides for greater buffers and separation distances between dwellings; therefore reducing the potential for any off-site impacts. In the context of the Site, there are no concerns that the proposed use will cause adverse amenity impacts. The dwelling is substantially separated from dwellings on adjoining properties and the outdoor living area is facing away from the neighbouring dwellings. There is also existing vegetation screening along the boundaries of the Site and adjoining properties. Holiday Houses are required to be appropriately managed to ensure any potential nuisance is dealt with in a timely manner. A local manager has been nominated for the proposed use. Property Owners Buying with No Intention to Reside in the Area Absentee ownership of properties is a common occurrence in the Shire and is not a planning consideration. Notwithstanding, the new owners indicated that it is their intension to relocate permanently to Margaret River once their existing business is sold. Holiday Houses Lead to Noise and Increased Traffic Appropriately managed holiday houses do not cause adverse amenity impacts. A 12 month approval is recommended as per the provisions of LPP7. Further planning approval is required should the proponent wish to continue the use beyond this initial approval period. The application process to extend any approval includes the advertising to neighbours. This renewal process is used to review the management of the use over the initial 12 months. Bushfire Concerns An Emergency Response Plan is required to be prepared and displayed in the Holiday House. The Emergency Response Plan is required to provide emergency contact numbers and illustrate the quickest and nearest evacuation route and the evacuation centre. Impacts to Biodiversity in the Area No new development is proposed. The use of an existing dwelling as a Holiday House will not have any impacts on the biodiversity values of the area. OFFICER CONCLUSION The objection is noted; however, it is considered that a Holiday House (Large) can operate on the Site without any adverse impacts on the existing amenity of the location. A 12 month approval is recommended subject to the standard Holiday House conditions, including a condition limiting the guest numbers to 6 until the onsite wastewater management system is upgraded to the Shire’s satisfaction. The guest numbers are recommended to be restricted to a maximum of 8 following the satisfactorily upgrade of the onsite wastewater management system. It is also recommended that a condition be applied to ensure the existing outbuilding, which has approval for weekend accommodation, is not occupied independently from the Holiday House for short stay accommodation.


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STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2016-20 Goal 3: Managing Growth and Sustainability Community Outcome 3.1: Clearly defined areas for growth and renewal Strategic Response: Implement Local Planning Scheme No. 1 Service level strategy/plan: Provide planning services STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Nil FINANCIAL IMPLICATIONS Nil SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil Economic Holiday houses are a recognised form of tourist accommodation, which provides economic value to the area. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council grants Planning Consent pursuant to Clause 68(2) pf the Deemed Provisions of the Local Planning Scheme No.1 for a Holiday House (Large) at 85 (lot 23) Sheridan Road, Margaret River subject to compliance with the following conditions:

CONDITIONS 1. The development is to be carried out in compliance with the plans and documentation listed below

and endorsed with Council’s stamp, except where amended by other conditions of this consent. Plans and Specifications P1 to P2 received at the Shire on 28 March 2017

2. The Holiday House use is limited to a period of twelve (12) months from the date of this approval.

(P) (Refer to advice note a)

3. An Emergency Response Plan (i.e. fire escape route maps and other details as required) and Fire Management Plan shall be prepared and submitted to the Shire prior to commencement of the use. The Emergency Response Plan and Fire Management Plan shall be displayed in a conspicuous location within the dwelling at all times. (P)

4. A Manager or a contactable employee of the manager that permanently resides no greater than

a 1 hour drive from the site shall be nominated for the Holiday House and this person shall attend to any callout within 1 hour of a reported incident. The manager or contactable employee is to be retained at all times during the use of the site as a Holiday House. (Refer advice note b) (P).

5. The 24 hour contact details of the manager and owner of the Holiday House shall be visible on

the property from the nearest street frontage and maintained to the satisfaction of the Shire. (Refer advice note c) (P)

6. All vehicles & boats connected with the premises shall be parked within the boundaries of the

property. (P)


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7. Amplified music shall not be played outside of the Holiday House between the hours of 10pm and 10am.

8. ‘House Rules’ shall be developed prior to the commencement of use. Thereafter the ‘House Rules’ shall be provided to all guests and shall be displayed within a prominent position within the Holiday House. (Refer advice note f) (P)

9. The short stay use of the dwelling shall not be occupied by more than six (6) people at any one

time until the onsite effluent disposal system is upgraded in accordance with the Health (Treatment of Sewage and Disposal of Effluent & Liquid Waste) Regulations 1974 and to the satisfaction of the Local Government/Department of Health. Following satisfactory upgrading of the effluent system, the short stay use of the dwelling shall not be occupied by more than eight (8) people at any one time (refer to advice note g). (P)

10. The outbuilding, which is permitted to be used for weekend accommodation under planning

approval P1851, shall not be used for short stay accommodation independently to the Holiday House (Large) hereby approved.

ADVICE NOTES a) Following satisfactory performance of the approved use, and in the absence of any substantiated

complaints over the twelve (12) month approval period, the Shire may grant further planning approval for the continuation of the use for a further three (3) years. A new planning application seeking such approval should be submitted 90 days before the expiry of this approval, along with the appropriate planning fee. (P)

b) If at any time there is not an appointed manager or a contactable employee of the manager for

the site, the use must cease until such time as a manager is appointed. (P) c) A sign limited to a maximum of 0.2 square metres and not exceeding 1.5 metres in height from

ground level may be erected at the property frontage and within the property.(P) d) This approval does not affect the entitlement to use the dwelling for permanent residential

purposes. (P) e) You are advised of the need to comply with the requirements of the following other legislation:

i. Health (Miscellaneous Provisions) Act 1911 and Department requirements in respect to the

development and use of the premises;

ii. The WA Building Regulations 2012 (r.59) requires that the owner of a dwelling (as defined in the Building Code of Australia) must not make the dwelling available for hire unless hard wired, battery backup smoke alarms are installed, complying with the Building Code of Australia and AS3786.

f) The ‘House Rules’ document shall be consistent with key elements of the NSW Code for Holiday

Houses (please refer to the attached document). (P) g) A new application for the installation/upgrade of an apparatus for the onsite treatment of sewage

will need to be submitted to the Shire for approval. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Site plan 2. Schedule of Submission


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11.2.4 LOCAL PLANNING POLICIES LPP19 - SMALL HOUSE POLICY AND LPP20 - SUSTAINABLE DESIGN - FOR FINAL ADOPTION LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER N/A FILE REFERENCE LND/52 REPORT AUTHOR Matt Cuthbert, Strategic Project Officer AUTHORISING OFFICER Dale Putland, Director Sustainable Development

IN BRIEF • Aged or dependent person’s dwellings and single bedroom dwellings are, along with ancillary

dwellings or “granny flats”, forms of small housing. • On 22 February, Council resolved to advertise a new Local Planning Policy– LPP19 ‘Small House

Policy’ and minor changes to ‘LPP20 Sustainable Design’. • LPP19 provides a density bonus to landowners wanting to develop a ‘small house’ in addition to a

conventional dwelling on a residential lot. • LPP19 has received support during the advertising process and it is recommended that it be

adopted. • The constructive comments received in relation to LPP20 warrant further changes and therefore it

is recommended that the policy be modified in response to submissions.

RECOMMENDATION That Council adopts ‘LPP 19 Small House Policy’ and a modified ‘LPP20 Sustainable Design’. TABLED ITEMS Nil BACKGROUND The Residential Design Codes (R-Codes) currently provide an incentive for owners to provide complimentary accommodation additional to a house, in the form of an ‘ancillary dwelling’, commonly referred to as a granny flat. The R-Codes require that ancillary dwellings be less than 70m2 in size and

built on lots no less than 450m2.

Given that the ancillary dwelling must be associated with the primary dwelling, there is no opportunity to subdivide the land so that the ancillary dwelling can be sold and thus this measure does not assist with the provision of ‘owner occupier’ housing at the affordable end of the spectrum.

Similar to ancillary dwellings, single bedroom dwellings are limited in their size to 70m2. However, the land upon which they are constructed can be subdivided so that the dwelling may be sold to an owner occupier. A one-third reduction to the minimum and average lot size otherwise required for conventional dwellings is provided by the R-Codes and detailed by the draft policy.

Aged and Dependent Persons Dwellings receive an identical relaxation to the required site area requirements of the R-Codes to that of single bedroom dwellings. They can however be larger in their size, up to 100m2. They may also be subdivided from the parent title so can be useful in providing both more affordable rental and/or affordable owner occupier housing.

Aged and dependent persons’ dwellings must be built to incorporate specified requirements of AS4299 ‘Adaptable Housing’ and can only be occupied by physically dependent persons or persons over the age of 55. Importantly, the ‘Deemed to Comply’ provisions of the R-Codes limit the application of the relaxed site area requirements for this type of development to proposals which include a minimum number of 5 dwellings. It is likely that this restriction has limited the uptake of this development option in the Shire, given that interested landowners generally do not have the required land area to support


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five (5) dwellings. The Shire has the opportunity to vary from this requirement subject to a proposal complying with the applicable ‘Performance Criteria’ which amongst other things, requires that a development respond to a demonstrated need for aged or dependent persons’ accommodation as set out in the applicable local planning framework.

THE PROPOSAL In summary, the advertised policy aims to achieve the following objectives: • Encourage the development of ‘small housing’ as means of increasing housing diversity and

affordability and reducing waste and consumption; • Limit the imposition of planning or legal mechanisms which have the intent of mandating a minimum

house size; and • Allow a ‘density bonus’ which would allow land owners to build an ‘aged and dependent’ persons

dwelling in addition to an existing dwelling on a lot subject to certain requirements such as: o The applicable requirements of clause 5.5.2 of the Residential Design Codes; o Location of the lot within the identified policy areas (see attachment 1); o Use of materials consistent or complimentary to the existing dwelling; o Compliance with the Shire’s Local Planning Policy 24 Sustainable Design; o Provision of a deep planting zone is provided at 5% of the site area; and o Significant vegetation being retained on site.

Modifications to existing policy LPP24 ‘Sustainable Design’ were advertised which have the intent of ensuring that it appropriately cross-references with LPP17 and provides more clarity with respect to the requirement for solar power and low carbon water heating methods. PLANNING FRAMEWORK Division 2 part 3 of the Deemed Provisions of LPS1 provides the ability for the Shire to make or amend local planning policies and provides a procedure for doing so. CONSULTATION A total of six submissions were received during the consultation period with four relating to the small house policy and two relating to the sustainable design policy. Submissions received relating to LPP17 were supportive. Several included requests to extend the application of the policy areas to provide for density bonuses on the submitters lots. The two submissions received in relation to LPP19 were detailed submissions from industry professionals providing constructive information as to the best ways for the Shire to achieve positive sustainable development outcomes. In addition to the submissions, a number of queries were received relating to the interpretation of the policy. Common queries related to the number of aged and dependant persons dwellings possible and the application of an additional 5% variation provided by the R-Codes. In order to assist potential applicants, it is recommended that answers to frequently asked questions (FAQ’s) be added as an attachment to the policy. DISCUSSION Extension of policy areas Three submissions requested extension of the areas within which a density bonus for a ‘small house’ is provided for by the policy. The areas put forward were: • Prevelly/Gnarabup/Gracetown; • Areas within greenfield subdivisions in Margaret River wherein lots have not yet been created’; and • A low density subdivision in Margaret River. It is not recommended that the policy areas as advertised be modified at this time. The coastal settlements were deliberately excluded given the prevalence of high value housing and the consequential inability to provide affordable accommodation options which is one of the objectives of the policy. The absence of reticulated sewer in some coastal settlements also makes more intensive development in these areas less desirable. Similarly, identifying new and undeveloped lots in (for example Brookfield) could lead to perverse outcomes such as an increase in land prices as developers ‘price in’ the additional development potential of the lots.


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Given the new and untested nature of the policy it is recommended that it be trialled for a period before being reviewed to determine its level of success and the need for any changes at that time. Notwithstanding that extension of the policy areas is not supported at this time, it would be possible for Council to support good proposals which may come forward from outside of the identified areas that meet the intent of the policy. LPP19 – Sustainable Design The advertised policy included minor changes to the existing policy that were made primarily for the purpose of ‘linking’ its application with the small house policy. The submissions received, however, requested broader scale changes to the policy to enhance its capacity to achieve positive sustainable development outcomes. One submission suggested that rather than focus on certain elements of housing design, the policy should require that houses are constructed to a higher star rating than otherwise required by the BCA (e.g. 7 stars being 1 star above what is otherwise required). The submitter points out that in the context of small infill development, some of the requirements of the existing policy may be unachievable or not produce the intended outcomes. By utilising the star rating system, builders can employ site responsive approaches to sustainable design, and then model the outcomes using the relevant software to ensure that the resultant home is more energy efficient than a ‘standard’ 6 star home. It is recommended that the existing policy provisions be amended where necessary in preference for a ‘six star plus 1’ approach. A separate submission suggests that the policy should include a requirement for ‘grey water ready’ plumbing. This allows homeowners who wish to reuse grey water to do so easily, by connecting the necessary pump and irrigation lines with a minimum of modification to existing plumbing. This is considered to be a positive initiative which should be incorporated into the policy. SHIRE STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2016-2020 Goal 3: Managing Growth Sustainably Community Outcome: Clearly defined areas for growth and renewal Strategic Response: Implement Local Planning Scheme No. 1 (LPS1) Service Level Strategy/Plan: Provide Planning Services FINANCIAL IMPLICATIONS Nil SUSTAINABILITY IMPLICATIONS Environmental Small homes create less waste and promote less consumption. Social The increased availability of small homes will provide more options for people looking to buy/rent at the more affordable end of the market. Economic The potential for a greater diversity of housing options increases the ability of the housing market to respond to demand. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Adopts Local Planning Policy 19 – ‘Small House Policy’ and;


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2. Adopts ‘Local Planning Policy 20 Sustainable Design’ subject to modifications to include ‘six star plus 1’ and grey water ready requirements

ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. LPP19 – Small House Policy 2. Modified LPP20 - Sustainable Design Policy 3. Schedule of Submissions


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11.3. Infrastructure Services


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11.3. INFRASTRUCTURE SERVICES Nil


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11.4. Corporate And Community

Services


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11.4.1 JUST HOME HOUSING ADVOCACY PROJECT LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE CSV/104 REPORT AUTHOR Stacey Hutt, Corporate and Community Planner AUTHORISING OFFICER Annie Riordan, Director Corporate and Community Services

IN BRIEF • Council adopted the Affordable Housing Strategy at the Ordinary Council Meeting (OM) of 9

December 2015 (OM2015/263) and the Homelessness Policy at the OM 12 October 2016 (OM2016/221).

• Just Home have recurrently requested a Housing Advocacy Officer be instated at the Margaret River Community Centre (MRCC) as a dedicated paid position.

• Council resolved at the OM 25 January 2017 to give Just Home $20,000 per annum for three years for part funding of a Housing Advocacy Officer, commencing the 2017-18 financial year and subject to co-matched funding (OM2017/15).

• Just Home were unsuccessful in grant funding from the South West Development Commission for this project and have proposed a new grant structure for Council’s approval.

RECOMMENDATION That Council:

1. Notes the update to Just Home’s funding for the Housing Advocacy Officer as per Attachment 1

2. Appoints Cr _________________ as the Shire representative on the Steering Committee for the Housing Advocacy Project.

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Affordable housing and homelessness has been a continuing discussion point between Council and community members for a number of years. State funding for homelessness in Western Australia is currently positioned with the Department of Community Services and granted to Accordwest Bunbury as the regional provider of homelessness services. This approach is currently under review with state government, which was last reviewed in 2013. Homelessness in the Shire Affordable housing and homelessness in the South West continues to be an issue for urban areas such as Busselton and Bunbury, with services in these areas running over capacity. Outreach services in the shire continue to be minimal and not well known. While the Shire is no longer involved in direct service delivery of provision of social housing, it has maintained a strong advocacy position with state and federal government, the non-government sector and local community groups. There is little data available in relation to homelessness and related service use within the shire. The Margaret River Community Centre (MRCC) and Soup Kitchen are local providers of support services to those facing housing stress and much of this work occurs on a voluntary basis. The MRCC play a central role in facilitating local emergency relief and acts as a referrer for those in need right across the shire (including Augusta and other town sites). An increase in the use of these services led to the


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formation of the Affordable Housing Working Group in 2015, who more recently formalised as non-for-profit Just Home. A Shire working group for Homelessness and Affordable Housing was formed in November 2016 and comprises three Shire officers and three Just Home representatives. The group meets on a quarterly basis, having meet twice now, to progress local sustainable actions in line with the Shire’s Homelessness Policy (OM2016/221), the Affordable Housing Strategy and Just Home’s Action Plan. Housing Advocacy Project A community roundtable meeting in December 2016 attended by Councillors, Shire staff and three representatives from Just Home focused on the request for Shire funding to instate the Housing Advocacy Officer at the MRCC. Several other actions from Just Home’s long term action plan were identified by the roundtable as best positioned to sit with the Shire working group for further exploration. The consensus from this roundtable discussion was that the collection of data and regular reporting is needed to better understand the issue of homelessness in the shire. In January 2017, Council resolved Just Home would receive financial support from the Shire, subject to co-matched funding (OM2017/15). The funding request was for $60,000 in total from the Shire for a Housing Advocacy Officer (HAO), which would be budgeted as $20,000 each financial year for three consecutive years. At this time the group had applied to the South West Development Commission (SWDC) for $45,000 and the Mercy Foundation for $20,000 to cover the total costs of the project. The group had already received $15,000 from a private investor, along with a Streetsmart grant of $1,000 towards the management of the caravan programme. Just Home had planned to also apply to the Margaret River Soup Kitchen and other local groups to complete the budget once Shire, SWDC and Mercy Foundation funding was confirmed. Just Home were successful in their Mercy Foundation grant, however were unsuccessful in their grant application with the SWDC. The group have proposed a new grant structure for Council’s approval. The group also proposed formation of a Steering Committee for project leadership and evaluation, comprised of representatives from the MRCC, Soup Kitchen, Shire, Just Home, Margaret River Professional Social Work Collective, and people with personal experience of homelessness and housing stress. The committee will assist the HAO to develop a work plan to address the project aims based on Just Home’s community consultations. Project progress reports will be presented to monthly MRCC management committee meetings and quarterly Steering Committee meetings. As Shire staff are engaged with the working group, it is recommended a Councillor sit on this committee to best guide this project. The full proposal from Just Home is available as attachment one. CONSULTATION AND ADVICE External Consultation Extensive stakeholder and community consultation occurred on the topic of homelessness over March to June 2016 by the Shire and through collaboration with Just Home, which informed development of the Homelessness Policy. Internal Consultation Nil DISCUSSION / OFFICER COMMENTS Both the Affordable Housing Strategy and the Homelessness Policy acknowledge that the challenge of homelessness is multi-faceted and requires involvement by all levels of government, non-government, private and community sectors. The Affordable Housing Strategy identifies the need for and availability of affordable housing, setting out a series of measures aimed at assisting with the delivery of affordable housing of a type and quantity sufficient to meet with the defined demand. Most importantly, the Strategy focuses only on outcomes which can feasibly be delivered by the Shire. For the last two years Just Home have dedicated their efforts to reducing housing stress and preventing homelessness in the Augusta Margaret River area entirely through volunteer efforts. The group are currently working toward becoming incorporated and have compiled a long term action plan as a result


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of the research conducted over 2016. This includes the Housing Advocacy Project which features a funded position to provide immediate support to people experiencing or at risk of homelessness and housing stress in Augusta Margaret River, and to monitor local experiences for rigorous data collection. The position has been designed as part time at 15 hours per week and based at the MRCC. The updated proposal (attachment one) details the total cost for the position over three years is $124,078.29 which includes $5,000 for evaluation and $119,078.29 total remuneration package. Just Home have allocated a wage within the Social and Community Services Award to attract a social worker who is trained in working with individuals who have complex and co-existing needs. This role will also be supported in-kind by administration staff at the MRCC, members of Just Home and guided by the Steering Committee (of which the Shire will have representation on). Just Home were unsuccessful in grant funding from the SWDC and have proposed a new grant structure for Council’s approval. The main change is that a total of $13,078.29 has not yet been secured and will be sourced by Just Home between 2017 and 2019.

Confirmed donors Amount Shire of Augusta Margaret River $60,000.00 Mercy Foundation (for Year 1) $20,000.00 Street Smart Funding $1,000.00 Michelle Sheridan and Mike Hulme $15,000.00 Margaret River Soup Kitchen $15,000.00 Additional funds for Years 2 and 3 to be sought in 2017-19 Grants (e.g. WA Government; Foundation for Rural and Regional Renewal; MR Lions; Cowaramup Lions; Leeuwin Lions; MR Rotary; MR Vinnies; Country Women’s Association).

$7,000.00

Crowdfunding and individual regular donors $4,000.00 Fundraising $2,078.29 TOTAL $124,078.29

If Council endorses the report recommendation, a contractual agreement will be compiled by the Shire’s Legal Services for the group to receive the funds from the 2017-18 financial year, subject to co-matched funding each year. The contract will detail the requirements for regular data collection and reporting in relation to homelessness needs and service use in the shire. Shire officers believe that it will take all three tiers of government, the non-government sector and the community sector to collectively and collaboratively address the issue of homelessness. Clarity of the role and responsibilities of each of the major players is imperative to work together in preventing homelessness and actioning a response to those already experiencing housing stress. The Shire is also represented on a state reference group aimed at developing a charter between state and local governments. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Nil STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2016-2020 Goal 2: Welcoming and inclusive communities Community Outcome 1: Sense of identity and belonging Strategic Response: Foster participation in cultural events and activities that encourage a sense of identity and belonging Community Outcome 2: equity and opportunities for all Strategic response: Ensure Shire facilities and services are accessible by all PLANNING FRAMEWORK Nil


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FINANCIAL IMPLICATIONS The resolution at the Ordinary Council Meeting of 25 January 2017 (OM2017/15) will commit $20,000 in the 2017-18 budget and further two financial years to Just Home. SUSTAINABILITY IMPLICATIONS The Homelessness Policy includes acknowledgment of the Shire’s commitment to using its best endeavours to meet the needs of current and future generations through the integration of environmental protection, social advancement, cultural recognition and economic prosperity. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Notes the update to Just Home’s funding for the Housing Advocacy Officer as per Attachment 1 2. Appoints Cr _________________ as the Shire representative on the Steering Committee for the

Housing Advocacy Project. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Just Home Housing Advocacy Project updated proposal


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11.4.2 2017-18 DIFFERENTIAL RATES AND MINIMUM PAYMENTS FOR PUBLIC COMMENT LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/11 REPORT AUTHOR Andrew Ross, Manager Corporate Services AUTHORISING OFFICER Annie Riordan, Director Corporate and Community Services

IN BRIEF • Providing public notice of the proposed differential rates and minimum payments is a requirement

of Section 6.36 of the Local Government Act 1995 (LG Act). • Council are requested to adopt for local public advertising for a minimum period of 21 days the

proposed differential rates and minimum payments for 2017-18. RECOMMENDATION That Council: 1. Having considered the Long Term Financial Plan and expenditure projections for 2017-18 approves

for advertising the following rate model that results in a 3% increase to the Shire's rate yield by:

• increasing rates in the dollar by 3% for GRV categories; • decreasing rates in the dollar for the UV Rural base rate by 1.94% to offset the impact

of an average increase in rural property values of 4.1%; • increasing minimum payments for all rate categories by 3%.

2. Advertises these rates in the dollar and minimum payments and invites written feedback from

ratepayers within a period of 21 days from the giving of local public notice. 3. Approves the attached Statement of Objectives and Reasons for Differential Rates and Minimum

Payments. LOCATION PLAN Nil

3% Increase to Rate YieldMinimum Payment

Rate in $ Number of Minimums

Minimum Payments

Raised

Number of Non-

Minimums

Calculated Rates

Average Calculated

Rate

Total Rates to be Raised

Residential 1,264.00 10.1900 842 1,064,288 4,166 7,299,111 1,752.07 8,363,399 Residential Vacant 1,264.00 19.5206 727 918,928 326 806,796 2,474.84 1,725,724 UV Rural 1,418.00 0.4456 181 256,658 779 2,308,729 2,963.71 2,565,387 Rural Residential 1,539.00 9.7613 138 212,382 630 1,246,920 1,979.24 1,459,302 Rural Residential Vacant 1,539.00 19.0007 30 46,170 140 330,073 2,357.66 376,243 Strata Titled Vineyard 833.00 0.4456 37 30,821 - - 30,821 Industrial 1,358.00 12.0698 54 73,332 151 467,744 3,097.65 541,076 Commercial 1,358.00 12.0698 39 52,962 353 2,433,349 6,893.34 2,486,311 Tourism 1,358.00 12.0698 146 198,268 536 1,550,878 2,893.43 1,749,146 UV 1 - One rural use 1,418.00 0.5570 6 8,508 110 401,992 3,654.48 410,500 UV 2 - Two non rural uses 1,418.00 0.6684 0 - 19 87,006 4,579.24 87,006 UV 3 - Three or more non-rural uses 1,418.00 0.7798 0 - 16 104,735 6,545.93 104,735 UV Conservation 1,365.00 0.4355 16 21,840 70 258,016 3,685.95 279,856

2,216 2,884,157 7,296 17,295,351 20,179,508


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TABLED ITEMS Nil BACKGROUND Rate revenue constitutes the largest funding source for the Shire of Augusta Margaret River. Rates are levied on all rateable properties within the Shire and the basis of rates is determined using Policy FI.15 Shire Rating. The Rating methodology of Policy FI.15 Shire Rating is to apply a differential rating system based on the zoning and/or land use of a property in accordance with State planning legislation and the Shire’s Local Planning Scheme 1 (LPS 1). Differential rating provides for fair and equitable rating and is administratively efficient to apply. Landgate provide the Shire with valuations dependent on the properties rating basis of Unimproved Value (UV) or Gross Rental Value (GRV). The 2017 annual UV revaluation has been received and the next triennial GRV revaluation will come into force on 1 July 2018. In accordance with the Waste Avoidance and Resource Recovery (WARR) Act 2007, the Shire’s waste services are funded by a waste facilities maintenance rate and annual charges for collection of waste receptacles. All rateable properties in the Shire are charged the waste facilities maintenance rate which funds operation of transfer stations and the Shire’s landfill site. A separate fee is also charged to properties provided a kerbside waste collection service and a kerbside recycling collection service. In keeping with the requirements of the Local Government Act (LG Act), Council is required to give local public notice for a minimum period of 21 days of the proposed 2017-18 rates in the dollar and minimum payments. Any submissions received must considered by Council before the rates are adopted. CONSULTATION AND ADVICE External Consultation Providing local public notice for 21 days of the proposed differential rates and minimum payments represents the external consultation process that is required. Landgate Manager, Country South West Property and Valuation services Department of Local Government and Communities Department of Local Government and Communities (DLGC) Rating Policy for Differential Rates DLGC Rating Policy for Minimum Payments Ratepayers and Electors The proposal will be advertised for a minimum period of 21 days to allow ratepayers and electors to make submissions to Council. Public submissions are to be received by Monday 12 June 2017. DISCUSSION / OFFICER COMMENTS In setting the 2017-18 differential rates in the dollar and minimum payments, the Shire is required to take into consideration the following matters:

• Long Term Financial Plan (LTFP); • Expenditure to be included in the 2017-18 draft Budget and how the deficiency between

revenue and expenditure is to be funded by rates; • Growth of rateable properties; • Landgate UV property revaluations; • Shire Rating Policy; • Department of Local Government and Communities Rating policies; and • Compliance with the provisions of the LG Act.

Long Term Financial Plan The annual review of the 2017-18 to 2026-27 LTFP was adopted by Council on 12 April 2017 (OM2017/91) and assumes an annual rate percentage increase of 3% over and above property growth for the 2017-18 financial year. The LTFP provides for continued commitment to sound and prudent


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financial management. The basis for developing the 2017-18 differential rates and minimum payments are consistent with the LTFP. Growth of rateable properties After experiencing a period of growth last year as a result of the release of land developments in Cowaramup, Kudardup, Karridale and Margaret River, the rate of property growth has reduced in 2016-17. A comparison of the increase in the rateable property base over the past 5 years is tabled below. Table 1. Growth in rateable properties

Year No. of

Properties Rate Billing

Property Increase % Increase

2013 8,895 73 0.8% 2014 8,936 41 0.5% 2015 9,055 119 1.3% 2016 9,332 277 3.1%

2017 (pre-reval) 9,491 159 1.7% 2017 (post-reval) 9,512 180 1.9%

In order to process the updated UV property valuations, 21 rural properties had to be added to the property database. Consequently, the number of rural properties and the total number of properties vary to those used for the initial rate modelling. Landgate UV Revaluation The 2017 UV property revaluation completed by Landgate results in an overall average increase of 4.1% to rural land values (note, Landgate’s valuer advised a 3.7% increase but comparison of actual valuations shows an increase of 4.1%). This compares to the previous year when values decreased by 3.5%. The historical annual change in property valuations are shown in the following chart.

To achieve an overall 3% increase in the rate yield despite the increase in property values, the rural rate in the dollar has been decreased by 1.94%. The UV tiered rating scale differentials of 25%, 50% and 75% are applied against the rural rate to obtain the proposed rates for 2017-18. Variations in rural property values ranged from a decrease of 3.29% to an increase of 14.87%. About half of rural property valuations increased by less than 4% compared to last year and a further third recorded an increase of between 4% and 6%. Due to this range of variances some property owners


45

will receive property rates that have not increased by 3% compared to 2016-17 and unfortunately others will receive a greater increase. Property owners whose property values have not increased by 4.1% will receive a rate increase less than 3%. Rate modelling statistics shows that for the rural rating category the modal range for property rates with largest number of properties is between $1,401 and $1,600.

LG Act Compliance In setting the differential rate in the dollar and minimum payment, the Shire must adhere to the requirements of the LG Act and in particular sections 6.33 and 6.35. Section 6.33 states that the Shire cannot apply a rate in the dollar that is more than twice the lowest rate in the dollar for any differential rating category. Section 6.35 states that the Shire cannot apply a minimum payment to more than 50% of the total number of properties for an individual differential rating category. The differential rating category of Residential Vacant is non-compliant with section 6.35 of the LG Act as the total number of properties on the minimum payment exceeds 50%. This rating category has 1,053 properties with 727 properties on a minimum payment and 326 on the non-minimum (rate in the dollar calculation). The total number of properties on the minimum is to be no more than 526 (50% of 1,053). This result is non-compliant by 200 properties. Ministerial approval must be obtained before the rates can be implemented for 2017-18. If the proposed model is adopted by Council for advertising, submissions received during the 21 day advertising period, which is planned to close on Monday 12 June 2017, will need to be considered at the Ordinary Meeting of Council on Wednesday 28 June 2017. After Council has considered submissions an application seeking approval of the proposed differential rates, specifically for the non-compliant Residential Vacant category, is to be provided to the Minister for Local Government via the Department of Local Government and Communities (DLGC). The DLGC in their rating policies have advised 21 days should be allowed for their consideration of the Shire’s request. Once approval is received from the Minister via the DLGC, the differential rates can be provided to Council for adoption. Rates adoption is scheduled for 26 July 2017.

Rating models Two rate models were considered. The first provides a 3% increase to the rate yield and is consistent with the recently adopted LTFP. The second provides a 2.5% increase to the rate yield. The commencing point for rate modelling is to use up to date property details and the rating details for the current year (rates in the dollar and minimum payments) to identify the rate yield that has resulted from growth in properties. At 19 April 2017 there were 9,491 rateable properties which is an increase of 113 or 1.2% on the number of properties levied rates in July 2016. This base model provided a rate yield of $19.598 million. The increase of $0.236 million compared to the rate yield obtained when rates were billed in July 2016 is directly attributable to the increase in rateable properties and the updated valuations received during the year for developed properties. The next stage is to establish a rate yield target for 2017-18 using current rateable property details and updated rating details (rates in the dollar and minimum payments) for the current year that have been increased by 3%. This model provided a target rate yield of $20.186 million. This target is $0.824 million higher than the rate yield obtained when rates were billed in July 2016 of which $0.236 million is attributable to property growth and $0.588 million is a result of the 3% rate yield increase. Property details were then updated with the revised property valuations for rural or UV properties and due to the increase in property values the rate yield achieved was $20.335 million. This result was $0.149 million higher than the target rate yield of $20.186 million. Through an iterative process rates in the dollar for the UV rate codes were adjusted to compensate for the increase in property values and the model rerun to eventually obtain a rate yield of $20.180 million. This result was a shortfall of $0.006 million and is considered acceptable and also achieves the rating target of the LTFP.


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The same process occurred for the 2.5% rate yield option, however the rate yield amounts and targets were reduced. In summary and compared to 2016-17 the rate models:

• Increased all minimum payments by 3% (or 2.5%); • Increased rates in the dollar for all GRV rating categories by 3% (or 2.5%); • Increases UV property values by an average of 4.1%; and • Decreases rates in the dollar for the Rural UV category by 1.94% (or 2.29%).

The results of the models are shown in the following tables.

Table 2: 3% Increase to Rate Yield

CategoryTotal

PropertiesMinimum Payment

% Change Minimum

Rate in Dollar

% change Rate in $

Average Calculated

RateRate Yield

Residential 5,008 1,264.00 3.02% 10.1900 3.00% 1,752.07 8,363,399 Residential Vacant 1,053 1,264.00 3.02% 19.5206 3.00% 2,474.84 1,725,724 UV Rural 960 1,418.00 2.98% 0.4456 -1.94% 2,963.71 2,565,387 Rural Residential 768 1,539.00 3.01% 9.7613 3.00% 1,979.24 1,459,302 Rural Residential Vacant 170 1,539.00 3.01% 19.0007 3.00% 2,357.66 376,243 Strata Titled Vineyard 37 833.00 2.97% 0.4456 -1.94% - 30,821 Industrial 205 1,358.00 3.03% 12.0698 3.00% 3,097.65 541,076 Commercial 392 1,358.00 3.03% 12.0698 3.00% 6,893.34 2,486,311 Tourism 682 1,358.00 3.03% 12.0698 3.00% 2,893.43 1,749,146 UV 1 - One rural use 116 1,418.00 2.98% 0.5570 -1.94% 3,654.48 410,500 UV 2 - Two non rural uses 19 1,418.00 2.98% 0.6684 -1.94% 4,579.24 87,006 UV 3 - Three or more non-rural uses 16 1,418.00 2.98% 0.7798 -1.94% 6,545.93 104,735 UV Conservation 86 1,365.00 3.02% 0.4355 -0.25% 3,685.95 279,856

9,512 20,179,508 The model outcomes reflect the parameters of the Shire’s LTFP and provide sufficient revenue to meet expected service level needs and the known expected expenditure funding deficiency of the 2017-18 Budget. Table 3: 2.5% Increase to Rate Yield

CategoryTotal

PropertiesMinimum Payment

% Change Minimum

Rate in Dollar

% change Rate in $

Average Calculated

RateRate Yield

Residential 5,008 1,258.00 2.53% 10.1405 2.50% 1,743.56 8,322,892 Residential Vacant 1,053 1,258.00 2.53% 19.4258 2.50% 2,462.82 1,717,444 UV Rural 960 1,411.00 2.47% 0.4440 -2.29% 2,947.16 2,555,833 Rural Residential 768 1,531.00 2.48% 9.7139 2.50% 1,969.63 1,452,143 Rural Residential Vacant 170 1,531.00 2.48% 18.9085 2.50% 2,346.22 374,401 Strata Titled Vineyard 37 829.00 2.47% 0.4440 -2.29% - 30,673 Industrial 205 1,351.00 2.50% 12.0113 2.50% 3,082.63 538,431 Commercial 392 1,351.00 2.50% 12.0113 2.50% 6,859.93 2,474,244 Tourism 682 1,351.00 2.50% 12.0113 2.50% 2,879.40 1,740,607 UV 1 - One rural use 116 1,411.00 2.47% 0.5550 -2.29% 3,641.36 409,015 UV 2 - Two non rural uses 19 1,411.00 2.47% 0.6660 -2.29% 4,562.80 86,693 UV 3 - Three or more non-rural uses 16 1,411.00 2.47% 0.7770 -2.29% 6,522.43 104,359 UV Conservation 86 1,358.00 2.49% 0.4320 -1.05% 3,656.32 277,671

9,512 20,084,406 The model outcomes result in $95,101 less rate yield than the preferred 3% rate yield model. To provide an understanding of the impact of the two rate yield increase scenarios on ratepayers, the following tables compare minimum payments and average rates for non-minimum payments compared to rates billed for 2016-17.


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Table 4: Comparison of Minimum Payments 2016-17 Increase for

2016-173%

IncreaseIncrease to

2016-172.50%

IncreaseIncrease to

2016-17Residential 1,227.00 36.00 1,264.00 37.00 1,258.00 31.00 Residential Vacant 1,227.00 36.00 1,264.00 37.00 1,258.00 31.00 UV Rural 1,377.00 40.00 1,418.00 41.00 1,411.00 34.00 Rural Residential 1,494.00 44.00 1,539.00 45.00 1,531.00 37.00 Rural Residential Vacant 1,494.00 44.00 1,539.00 45.00 1,531.00 37.00 Strata Titled Vineyard 809.00 24.00 833.00 24.00 829.00 20.00 Industrial 1,318.00 38.00 1,358.00 40.00 1,351.00 33.00 Commercial 1,318.00 38.00 1,358.00 40.00 1,351.00 33.00 Tourism 1,318.00 38.00 1,358.00 40.00 1,351.00 33.00 UV 1 - One rural use 1,377.00 40.00 1,418.00 41.00 1,411.00 34.00 UV 2 - Two non rural uses 1,377.00 40.00 1,418.00 41.00 1,411.00 34.00 UV 3 - Three or more non-rural uses 1,377.00 40.00 1,418.00 41.00 1,411.00 34.00 UV Conservation 1,325.00 39.00 1,365.00 40.00 1,358.00 33.00 With a 3% increase in the rate yield minimum payments for 23% of total ratepayers would increase by about $0.80 per week. With a further 0.5% decrease to the rate yield, ratepayers paying the minimum payment would benefit by an additional 12 cents per week or $6 for the year. Table 5: Comparison of Non-Minimum Payments

2016-17 Increase for 2016-17

3% Increase

Increase to 2016-17

2.50% Increase

Increase to 2016-17

Residential 1,691.82 56.47 1,752.07 60.25 1,743.56 51.74 Residential Vacant 2,392.09 112.61 2,474.84 82.74 2,462.82 70.72 UV Rural 2,920.39 74.87 2,963.71 43.32 2,947.16 26.76 Rural Residential 1,918.11 64.13 1,979.24 61.13 1,969.63 51.52 Rural Residential Vacant 2,299.61 98.78 2,357.66 58.05 2,346.22 46.61 Strata Titled Vineyard - - - - - - Industrial 3,008.37 84.04 3,097.65 89.28 3,082.63 74.26 Commercial 6,620.73 342.49 6,893.34 272.61 6,859.93 239.20 Tourism 2,860.37 72.53 2,893.43 33.06 2,879.40 19.03 UV 1 - One rural use 3,561.51 116.57 3,654.48 92.97 3,641.36 79.85 UV 2 - Two non rural uses 4,488.87 111.26 4,579.24 90.37 4,562.80 73.93 UV 3 - Three or more non-rural uses 6,192.27 134.28 6,545.93 353.66 6,522.43 330.16 UV Conservation 3,543.13 103.86 3,685.95 142.82 3,656.32 113.19 With a 3% increase in the rate yield, average rates for ratepayers who are not charged the minimum payment would increase by less than $1.71 per week for over 70% of total ratepayers. With a further 0.5% decrease to the rate yield the majority of ratepayers would benefit by 15 cents to 30 cents per week ($8.00 to $16.00 per annum) depending upon their rate category. It should also be noted the average rate for the commercial category for 2016-17 is inflated due to the inclusion of updated property valuations and increased property rates calculated after the 2015-16 rates were billed for some recently developed properties and it is likely the rate increase for the majority of ratepayers in this category was less than the average shown in the table. In summary the 3% rate yield option is recommended as the additional revenue of $0.817 million generated by this option will be sufficient to meet the additional expenditure increases anticipated in the LTFP and the $0.747 million of expenditure increases already identified to be included in the 2017-18 draft Budget. The following charts provide a diagrammatic representation of this situation.


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Rates Objectives and Reasons The Objectives and Reasons for the proposed differential rates and minimum payments for the year ending 30 June 2018 are attached to this report. Ministerial Circular 02-2016 advised the DLGC will continue to have an emphasis on the quality of these documents as they explain to ratepayers and the community why differential rates vary. The Shire’s document has been updated to improve this explanation. Waste Collection Rate The Waste Collection Rate is an annual rate levied on rateable land within the Shire for the purposes of providing for the proper performance of all or any of the waste services it provides. Details of this rate and the fees and charges for the collection of kerbside rubbish and recycling are also being provided to the Ordinary Meeting of 24 May 2017 as part of the Schedule of Fees and Charges proposed for 2017-18. These details are repeated in this item for completeness.

Waste Collection Rate 2017-18 2016-17 % Change GRV properties rate in the dollar $0.0222 $200 $200 0% UV properties rate in the dollar $0.0021 $200 $200 0%

The Waste Collection Rate is at the maximum allowable charge. The purpose of the rate is to raise funds to be used for improvements to the Davis Road landfill facility so it complies with legislative and environmental requirements and to ensure its life as an approved landfill site is maximised. Any excess funds raised from this levy are provided to the Waste Management reserve for future year’s expenditure and to provide for investment in future waste improvements including but not limited to converting the Davis Road landfill site to a transfer station. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Part VI Local Government Act 1995 deals with the levying of differential rates.

Section 6.33 states that Council may impose differential rates based on differential categories.

Section 6.35 states that Council may impose a minimum payment for each category.

Pursuant to Section 6.36 of the Local Government Act 1995 the Shire is to give appropriate notice of its intention to impose differential rates and minimum payments in respect to each differential rate category.


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Section 66 of the Waste Avoidance and Resource Recovery Act 2007 (WARR) states a local government may impose on rateable land within its district, and cause to be collected, an annual rate for the purpose of providing for the proper performance of all or any of the waste services it provides. Section 67(1) of the WARR states a local government may, in lieu of, or in addition to a rate under section 66, provide for the proper disposal of waste, whether within its district or not, by making an annual charge per waste receptacle, payable in one sum or by equal monthly or other instalments in advance, in respect of premises provided with a waste service by the local government. The charge is to be imposed on the owner (as defined in section 64(1)) or occupier, as the local government may decide, of any premises provided with a waste service by the local government. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2016-2020 Goal 5: Effective Leadership and Governance. Community Outcome 2: Effective strategy, planning and asset management. Strategic Response: Ensure the Shire’s financial performance is well managed and leads to a strong financial position. Service level strategy/plan: Bill property rates on adoption of the Shire’s annual budget. Policy FI.15 Shire Rating (OM20140528) outlines the administrative processes in applying differential rates. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS The 3% rate yield model included within this report shows the expected yield to be obtained from rates in 2017-18. The model results in a total rate yield of $20,179,508 and is an increase of $817,235 compared to the rate yield obtained when rates were last billed in July 2016. The increase includes $236,047 obtained from rateable property growth.

The total revenue from rates proposed for the 2017-18 draft Budget is calculated on the basis of the Long Term Financial Plan assumption of a 3% increase on rate yield to achieve a balanced budget position for the year. SUSTAINABILITY IMPLICATIONS Environmental Rate revenue is used to carry out works on parks, reserves, beaches, foreshores and all other land owned and managed by the Shire which has an impact on the environment. There is continued demand for these activities. Social Rate revenue is utilised by the Shire to carry out a range of community oriented activities which impact on the social fabric of the community. Economic Rate revenue is the main source of funding for the Shire. Increased rate revenue is required to make up the deficiency between expenditure and income. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Having considered the Long Term Financial Plan and expenditure projections for 2017-18 approves

for advertising the following rate model that results in a 3% increase to the Shire's rate yield by:


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• increasing rates in the dollar by 3% for GRV categories; • decreasing rates in the dollar for the UV Rural base rate by 1.94% to offset the impact

of an average increase in rural property values of 4.1%; • increasing minimum payments for all rate categories by 3%.

2. Advertises these rates in the dollar and minimum payments and invites written feedback from

ratepayers within a period of 21 days from the giving of local public notice. 3. Approves the attached Statement of Objectives and Reasons for Differential Rates and Minimum

Payments. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Objectives and Reasons for the proposed differential rates and minimum payments for the year

ending 30 June 2018

3% Increase to Rate YieldMinimum Payment

Rate in $ Number of Minimums

Minimum Payments

Raised

Number of Non-

Minimums

Calculated Rates

Average Calculated

Rate

Total Rates to be Raised

Residential 1,264.00 10.1900 842 1,064,288 4,166 7,299,111 1,752.07 8,363,399 Residential Vacant 1,264.00 19.5206 727 918,928 326 806,796 2,474.84 1,725,724 UV Rural 1,418.00 0.4456 181 256,658 779 2,308,729 2,963.71 2,565,387 Rural Residential 1,539.00 9.7613 138 212,382 630 1,246,920 1,979.24 1,459,302 Rural Residential Vacant 1,539.00 19.0007 30 46,170 140 330,073 2,357.66 376,243 Strata Titled Vineyard 833.00 0.4456 37 30,821 - - 30,821 Industrial 1,358.00 12.0698 54 73,332 151 467,744 3,097.65 541,076 Commercial 1,358.00 12.0698 39 52,962 353 2,433,349 6,893.34 2,486,311 Tourism 1,358.00 12.0698 146 198,268 536 1,550,878 2,893.43 1,749,146 UV 1 - One rural use 1,418.00 0.5570 6 8,508 110 401,992 3,654.48 410,500 UV 2 - Two non rural uses 1,418.00 0.6684 0 - 19 87,006 4,579.24 87,006 UV 3 - Three or more non-rural uses 1,418.00 0.7798 0 - 16 104,735 6,545.93 104,735 UV Conservation 1,365.00 0.4355 16 21,840 70 258,016 3,685.95 279,856

2,216 2,884,157 7,296 17,295,351 20,179,508


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12. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN 13. MOTIONS FOR CONSIDERATION AT NEXT MEETING 14. NEW BUSINESS OF AN URGENT NATURE 14.1. Members 14.2. CEO 15. CONFIDENTIAL BUSINESS 16. CLOSURE OF MEETING

ordinary council - shire of augusta-margaret...

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