strategic and general services committee · susan thorman elicia petite ... cr david hume cr rachel...

MINUTES

Strategic and General Services Committee

Wednesday, 18 February 2015, 6.00pm

TABLE OF CONTENTS

ITEM NO SUBJECT PAGE

DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS 1

NYOONGAR ACKNOWLEDGEMENT STATEMENT 1

IN ATTENDANCE 1

APOLOGIES 2

LEAVE OF ABSENCE 2

RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE 2

PUBLIC QUESTION TIME 2

DEPUTATIONS / PRESENTATIONS 2

DISCLOSURES OF INTEREST BY MEMBERS 2

LATE ITEMS NOTED 2

CONFIRMATION OF MINUTES 3

TABLED DOCUMENTS 3

REPORTS BY OFFICERS (COMMITTEE DELEGATION) 4

SGS1502-1 EAST STREET TRAFFIC CALMING DESIGN OPTIONS 4

SGS1502-2 LEASE PROPOSAL FROM FLY BY NIGHT CLUB FOR VICTORIA HALL 9

REPORTS BY OFFICERS (COUNCIL DECISION) 19

SGS1502-5 NOTICE OF MOTION - CONSIDERATION OF IMPLEMENTING A WATERCRAFT RESTRICTION ZONE - CR JOSH WILSON 19

REPORTS BY OFFICERS (COMMITTEE DELEGATION) 22

SGS1502-3 APPLICATION FOR NEW LEASE - LOT 39 DALY STREET, SOUTH FREMANTLE 22

REPORTS BY OFFICERS (COUNCIL DECISION) 30

SGS1502-4 POPCORNX - WINTER FESTIVAL 2015 30

SGS1502-6 ADOPTION OF THE PLASTIC BAG REDUCTION LOCAL LAW 2015 36

SGS1502-7 SUBMISSIONS TO WALGA STREET LIGHTING AND COASTAL PLANNING AND CLIMATE CHANGE 41

SGS1502-8 MID YEAR BUDGET REVIEW - FEBRUARY 2015 46

SGS1502-9 FINES ENFORCEMENT REGISTRY (FER) WRITE-OFF - 2ND QUARTER OF THE 2014-2015 FINANCIAL YEAR 63

SGS1502-10 STRATEGIC AND CORPORATE PLAN PROGRESS REPORT - OCTOBER - DECEMBER 2014 66

SGS1502-11 MONTHLY FINANCIAL REPORT - JANUARY 2015 70

CONFIDENTIAL MATTERS 77

CLOSURE OF MEETING 77

MINUTES ATTACHMENTS 1

Minutes - Strategic and General Services Committee 18 February 2015

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STRATEGIC AND GENERAL SERVICES COMMITTEE

Minutes of the Strategic and General Services Committee

held in the Council Chambers, Fremantle City Council on 18 February 2015 at 6.00 pm.

DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS

The Presiding Member declared the meeting open at 6.03 pm.

NYOONGAR ACKNOWLEDGEMENT STATEMENT

"We acknowledge this land that we meet on today is part of the traditional lands of the Nyoongar people and that we respect their spiritual relationship with their country. We also acknowledge the Nyoongar people as the custodians of the greater Fremantle/Walyalup area and that their cultural and heritage beliefs are still important to the living Nyoongar people today."

IN ATTENDANCE

Cr Andrew Sullivan Presiding member / South Ward Cr David Hume Deputy Presiding member / Beaconsfield Ward Dr Brad Pettitt Mayor Cr Robert Fittock North Ward Cr Rachel Pemberton City Ward Cr Dave Coggin East Ward (arrived 6.16) Cr Sam Wainwright Hilton Ward Observing only Cr Josh Wilson Beaconsfield Ward Mr Graeme Mackenzie Chief Executive Officer Mr Glen Dougall Director City Business Mr Peter Pikor Director Infrastructure & Project Delivery Mr Paul Trotman Director Strategic Planning & Projects Mrs Tanya Toon-Poynton Minute Secretary Mr Tom Griffiths Manager Economic Development & Marketing Ms Melanie Bainbridge Sustainability Officer Mr Alan Carmichael Manager Finance & Administration Mr Maurice Werder Management Accountant There were approximately 16 members of the public and no members of the press in attendance.


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APOLOGIES

Cr Simon Naber Cr Doug Thompson

LEAVE OF ABSENCE

Nil

RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE

Nil

PUBLIC QUESTION TIME

Nil

DEPUTATIONS / PRESENTATIONS

The following member of the public spoke in relation to item SGS1502-1: Ken Cheney The following members of the public spoke in favour of option 1 of item SGS1502-2: John Reid Roel Loopers Mark Cain Susan Thorman Elicia Petite The following members of the public spoke in favour of the notice of motion for item SGS1502-5: Fiona Prendergast Georgie Adeane

DISCLOSURES OF INTEREST BY MEMBERS

Nil

LATE ITEMS NOTED

Nil


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CONFIRMATION OF MINUTES

MOVED: Cr A Sullivan That the minutes of the Strategic and General Services Committee dated 21 January 2015 as listed in the Council agenda dated 28 January 2015 be confirmed as a true and accurate record. CARRIED: 6/0

For Against

Mayor, Brad Pettitt Cr Andrew Sullivan Cr David Hume Cr Rachel Pemberton Cr Sam Wainwright Cr Robert Fittock

TABLED DOCUMENTS

Nil


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Cr D Coggin arrived at 6.16 pm prior to consideration of the following item.

REPORTS BY OFFICERS (COMMITTEE DELEGATION)

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

SGS1502-1 EAST STREET TRAFFIC CALMING DESIGN OPTIONS

ECM Reference: 165/022 Disclosure of Interest: Nil Meeting Date: 18 February 2015 Previous Item: SGS1411-3 Responsible Officer: Peter Pikor, Director Infrastructure and Project Delivery Actioning Officer: Phillip Adams, Manager Infrastructure Projects Decision Making Authority: Committee Agenda Attachments: Option 1 - Platforms and edge line

Option 2 - Platforms with bike lanes Option 3 - Platform and bike lanes with safety strips

EXECUTIVE SUMMARY

This report presents two further traffic calming options for East Street from Marmion Street to Canning Highway following the Strategic and General Services Committee’s consideration in November 2014 of a local community driven proposal. The proposal for traffic calming of this street has evolved from community concerns with through traffic levels, heavy vehicles using the route as a short cut and traffic speeds. The community focus for the project has been primarily safety and creating a precinct area for residents. Key issues for in developing the project have been managing vehicle speeds, pedestrian access, restricting heavy vehicle access and maximising residential on street parking. Following Committee’s consideration of this matter, further options on the inclusion of on street bike lanes and physically separated on street bike lanes has been investigated. The inclusion of bicycling facilities has added an additional design element competing for space within the road reserve Following investigations two other options have been developed in addition to the local community driven proposal which is shown as option 1 (refer to attachment 1). The treatments of the three options and estimated costs are as follows

Option 1 - Platforms with edgeline - $349 000

Option 2 - Platforms and on street bike lanes - $627 000

Option 3 - Platforms and bike lane with safety strip - $597 000


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With regard to the installation of traffic signals at Canning Highway and East Street, Main Roads WA (MRWA) has indicated that this treatment to install traffic signals is on their long term agenda however will not be progressed in the short term. City officers are continuing to make representation to MRWA on this matter. The purpose of this report is to seek confirmation from Council that the updated design options are suitable to proceed with for the wider community consultation in conjunction with the Town of East Fremantle.

BACKGROUND

The East Street traffic calming project has evolved from community concerns with through traffic levels, heavy vehicles using the route as a short cut and traffic speeds. Community focus for the project has been primarily safety and creating a precinct area where they live. Key issues for staff in developing the project have been managing vehicle speeds, pedestrian access, restricting heavy vehicle access and maximising residential on street parking. The inclusion of cycling facilities has added an additional design element competing for space within the road reserve. At the Strategic and General Services meeting on 19 November 2014, the following was resolved;

1. Authorise the East Street Traffic Calming option as shown in Attachment 3 to be released for community consultation in conjunction with the Town of East Fremantle.

2. Request Main Roads Western Australia to consider as a priority the installation of traffic signals at the Canning Highway and East Street intersection.

3. Prior to community consultation, officers to identify design options and costings that incorporate;

a. on-street bike lanes b. physically separated on-street bike lanes

With regard to the installation of traffic signals at Canning Highway and East Street, MRWA has indicated that this treatment to install traffic signals is on their long term agenda, however will not be progressed in the short term. There has also been discussion about alternative options including turning movement restrictions from East Street (north) to address the prevalent crash incidents. City officers are continuing to work with MRWA to achieve a beneficial scenario for the local community and establish defined time frames for the installation of this treatment.

COMMENT

In relation to the traffic calming options, the original concept (as shown in Attachment 1) is to apply an edge line to the left side of the traffic lane to both increase the on street parking bay width and reduce the traffic lane width. This traffic calming option was deemed suitable in conjunction with the platforms, roundabout, median island and kerb build outs at the intersections to produce the desired outcomes.


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Cycling was not prioritised as the route is not on the Fremantle Bicycle Users Group network plan nor part of the Draft Integrated Transport Strategy (this document has emerged after the design development of the original concept). To address cycling on this route, it was considered suitable to apply signage and pavement marking in lieu of dedicated facilities. The geography of the route also does not complement cycling due to the steep hill providing either a gruelling uphill climb or a potentially high speed descent towards a major arterial route (Canning Highway). The estimated cost of this option is $349 000. The City’s officers are in discussions with MRWA regarding both the Bicycle Awareness Zones (BAZ) and buffered bike lane treatments. Currently, the buffer or safety strip bike lane treatment is not a prescribed treatment under MRWA Policy. Working with MRWA, the City will be perusing the adoption of this treatment based on precedents both nationally and internationally. The implementation of the BAZ is currently not regulated. This policy will be developed by MRWA in the coming months, however at present, the BAZ cannot be applied to East Street as shown on the original concept at the George Street roundabout. Given the discussions regarding the proposed warrants and guidelines for the installation of BAZ; the speed and road classification of East Street will not be appropriate for this treatment. MRWA have stated that BAZ will more than likely be recommended for low speed, built up area such as the CBD or similar areas not dominated by vehicle traffic. The option for on street bike lanes shown as Option 2 (refer to attachment 2) requires the relocation of the on street parking to the verge area which will impact the level of available parking and some verge trees requiring additional civil works. The bike lane option has utilised a 1.5 - 2.0m bike lane, however there is no offset from the verge parking except the mountable kerbing (300mm). The bike lane option has also removed the intersection kerb build outs which were originally presented as a safety enhancing feature of the design at the side street intersections. While the bike lane treatment relocates the parking onto the verge allowing additional clear lines of sight from these side streets, the positioning of street furniture, features, landscaping and services may pose additional obstructions. The existing median would be widened to 2.2m in this scenario to maintain the narrow traffic lanes and not reduce the overall pavement width. With the 2.0m cycle lane, it was decided that this would be an effective use of the additional space on the roadway with the added benefit of increasing pedestrian refuge options and additional width for the tree pits. The estimated cost of this option is $627 000. With regard to separated bike lanes, the decision to apply a painted buffer zone was primarily because a physically separated bike lane device such as a back to back kerbing, would adversely interfere with property access points which are prevalent on East Street for both individual and grouped dwellings. A proposal to place the bike lane on the left side of the parking bays within the verge was investigated however not deemed viable due to likely services and potential relocations, crossover grades and locations and street tree removals. The cost estimates projected from preliminary design work put this option circa $2 million.


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The option presented in concept profile as Option 3 (refer to attachment 3), uses a physical separation device that can be installed in limited areas due to crossover and parking access. The proposed 'Armadillo’s' would need to be tested for approval from MRWA. The estimated cost of this option is $597 000. The removal of the median was also explored to accommodate the bike lane, however as the median width is less than that required for the bike lanes, the road would still need to be widened escalating costs and the pedestrian refuge area would no longer provide a halfway crossing point across an increased road width. The trade off from the pedestrian and traffic calming aspects being reduced in applying bike lanes was not deemed an acceptable compromise considering the project objectives.

RISK AND OTHER IMPLICATIONS

Financial

Although this item does not seek funding commitment at this time for the project pending the community consultation process, the estimates for the design options range from $349 000 to $627 000. These are high level estimates without design development and further investigations into services. As such, these cost estimates may increase pending further investigation. It is still proposed to jointly fund this project with the Town of East Fremantle through the budget process. Legal

Regulatory signage and line marking will need to be approved by MRWA. Special consideration to the implementation of the bike lanes with safety strip is needed. Operational

At this stage, the proposals are to go to a wider community consultation. Organisational The three design options need to be considered by the City of Fremantle and Town of East Fremantle.

CONCLUSION

The iteration of the East Street traffic calming designs represents the inclusion of cycle lanes and a proposal that does not allocate a dedicated space for cyclists. The original design concept has been retained to provide a balanced approach for the consultation process. The current design options all aim to reduce vehicle speeds, address pedestrian access and safety and discourage excessive through traffic.

STRATEGIC AND POLICY IMPLICATIONS

City of Fremantle Strategic Plan 2010-15

Transport

Character

Community Safety


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COMMUNITY ENGAGEMENT

The formed local residents group for East Street has been instrumental in the development of the proposal. A wider community consultation is considered needed involving current residents of the City of Fremantle and Town of East Fremantle. This will be both to inform of the traffic calming intentions and also generate feedback on the proposal. Resources for this consultation will be local advertising on social media, the City's website on-site advertising and a mail out. A community engagement plan will be devised with the Town of East Fremantle. It is anticipated that the consultation will be for about 6 weeks.

VOTING AND OTHER SPECIAL REQUIREMENTS

Simple Majority Required

OFFICER'S RECOMMENDATION/COMMITTEE DECISION

MOVED: Cr A Sullivan That the Strategic and General Services Committee, acting under delegation 1.1;

1. Authorises the three traffic calming design options for East Street as shown in the attachments to be released for wider community consultation in conjunction with the Town of East Fremantle.

2. Continue representations to Main Roads WA seeking to install traffic signals at the Canning Highway and East Street intersection.

CARRIED: 7/0

For Against

Mayor, Brad Pettitt Cr Andrew Sullivan Cr Rachel Pemberton Cr David Hume Cr Sam Wainwright Cr Dave Coggin Cr Robert Fittock


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SGS1502-2 LEASE PROPOSAL FROM FLY BY NIGHT CLUB FOR VICTORIA HALL

ECM Reference: 049/008 Disclosure of Interest: N/A Meeting Date: 18 February 2015 Previous Item: Nil Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Tom Griffiths, Manager Economic Development and

Marketing Decision Making Authority: Committee Agenda Attachments: Victoria Hall floor plan

Fly by Night Club supporting documentation Fly by Night Club Financial Report - Year ended 30 June

EXECUTIVE SUMMARY

Victoria Hall is a Council owned asset, located at 179 High Street, Fremantle. The Hall is currently managed by the City as a bookable venue and is reasonably well used by a variety of community groups for a rate determined by the City’s fees and charges schedule each year. The Hall may be booked in full or in part using any of three smaller areas within the venue: main hall; lesser hall; or Hobbs bar. There is no ongoing liquor license associated with the venue. The Fly by Night Club (The Fly) has been operating within the Fremantle community for more than 28 years. The Fly operates from the former Drill Hall near Fremantle Oval and delivers a range of live music and performance and provides a unique not-for-profit environment that community groups can engage in. In the 2013/14 financial year, The Fly delivered 172 events, including 61 community events, 60 local showcase / album launches, 32 national events and 16 international events. Detailed information related to The Fly’s operations is included in Attachments 2 and 3. In the middle of 2014, the National Trust indicated it would not renew The Fly’s lease and that they must vacate the premises by 11 March 2015. The National Trust has committed to leasing the Drill Hall to Sunset Events who intend to operate the Hall as a music venue with a complementary hospitality offering. The City has been assisting the Fly in finding new premises in Fremantle. Throughout discussions with The Fly, it has become apparent that Victoria Hall is the only venue in Fremantle that is suited to The Fly’s needs, at least in the short-term. A Council decision is required regarding:

the preferred function and operation of Victoria Hall.

whether Victoria Hall should be available for lease.

if Victoria Hall is available for lease, whether the Fly by Night Club should be offered a short-term lease without an open and competitive process.


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BACKGROUND

Victoria Hall Victoria Hall can be divided into three discrete parts: main hall; lesser hall; and the Hobbs bar – the floor plan is included as Attachment 1. The City of Fremantle made a commitment to purchase and restore Victoria Hall in 2001 due to its architectural, social and cultural value. Between 2001 and 2012, it was leased to Deck Chair Theatre. In late 2012, the City of Fremantle took on the management of Victoria Hall after the vacation of Deckchair Theatre as its main tenant. The City now makes the venue available for hire to the community for a variety of events, achieving a broad range of outcomes for the community. Victoria Hall provides community groups with full access to the facility at a reasonable price to hold meetings, community events and other types of events throughout the year. It also provides modern bar facilities for hirers to generate revenue from. A large portion of current uses require solitude and privacy (e.g. Yoga, Pilates) and are not highly visible from the street. This factor is largely the reason why Victoria Hall is considered by some parts of the community to be underutilised. It is fair to say that evening or night bookings of Victoria Hall are low in comparison to mornings and day-time bookings. While there is strong community demand for a bookable venue of this nature, there is also an opportunity to consider alternate uses of Victoria Hall, including leasing the venue. In recent months, there have been several expressions of interest from within the Fremantle business and arts community to lease Victoria Hall to a single operator. As Council's direction has been to make Victoria Hall available to book (and not lease), these approaches have not been entertained in any detail. Fly by Night Club Musician's Club (The Fly) at the Drill Hall The Fly has been an integral part of the Fremantle Community for more than 28 years. The Fly delivers live music and performance and provides a unique not-for-profit environment where community groups are able to perform and rehearse in the same venue as major national and international touring acts. In an average year, the Fly stages up to 172 events, attracts over 28 000 patrons and reportedly injects over $800 000 into the local Fremantle economy. Critical to The Fly’s business model is a lease for a venue that can host ticketed performances and can be made available to third parties to hire for a fee that is collected by The Fly. The Fly’s lease for the former Drill Hall has not been renewed by the National Trust and the organisation is seeking alternative premises in Fremantle from which to operate. According to the National Trust, The Fly does not have any outstanding debts related to the Drill Hall (other than rent for its final month of March 2015). Proposal by The Fly to lease Victoria Hall The Fly Board have approached the City and proposed that it be offered a short-term lease for all of Victoria Hall on a subsidised community rate basis (50% subsidy). Over the last few months, the City has been exploring the details of this proposal as well as other options for consideration.


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Despite the imminent use of the Drill Hall by Sunset Events, The Fly's Board still see the Club as being highly relevant for Fremantle. It considers its' offering to be different from that anticipated from the new operators of the Drill Hall, primarily due to its various community-based activities, of which there were 61 in the 2013 / 2014 financial year. Additionally, the loss of Kulcha from Fremantle is seen by The Fly Board as creating a good opportunity to present more world music to the audience that is known to exist in the community for this genre. The Fly propose to make Victoria Hall an arts community hub where numerous arts organisations work under the umbrella of the Fly By Night Club and are encouraged to collaborate on various arts-based projects in Fremantle. The Fly's Board are confident that such an operational model would enable The Fly and the co-located entities to access program and community funding via the Department for Culture and Arts, and LotteryWest. It is The Fly’s vision that Victoria Hall will offer the local arts community a central place from which to operate. Utilising The Fly and other community arts organisations’ networks and customer focussed approaches, the future model will provide a hub for community and arts organisations in Fremantle. The Fly Board has requested that the City of Fremantle provides support for the Fly by

Night Musicians Club to remain in Fremantle via the following:

1. Agreement to enter into a lease agreement with the Fly to enable it to lease Victoria Hall for a 2 year initial lease with an option to extend the lease for a further 4 years. Details of this to be further negotiated. Ideally lease to be finalised by the end of February 2015.

2. Lease of Victoria Hall to be provided to The Fly for the first 6 months at no cost, followed by an amount not in excess of 50% of the standard lease fee for Victoria Hall. Details of this to be further negotiated.

3. The Fly to honour all current community activities which operate from the Victoria Hall.

4. The Fly to carry out the management and procurement of any future activities at the Victoria Hall.

The Fly has also requested that City of Fremantle to work undertake the refurbishment of the Old Boys School with the view of leasing this property to the Fly. That final requested is not included in the scope of this report because of the long-term nature and uncertain timeframes associated with the Old Boys School. Subsequent to the above being proposed, The Fly Board has indicated a willingness to accept a shorter-term lease (e.g. 2 years).


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COMMENT

While the complexities and details relating to this issue are extensive, they have been summarised and presented as four options for consideration. These 4 options are:

Additional detail relating to those four options is included below. Option 1: Fly lease In line with its proposal and discussions with the Board, Fly by Night Club is offered a lease of Victoria Hall with specific performance criteria that would include:

Paying rent at market rate (expected to be between $60 000 and $80 000 per annum) minus the community subsidy rate of 50%.

The lease is performance-based and evaluated on a yearly basis. If community outcomes are not met, the lease reverts to full market rate (i.e. the 50% subsidy for community organisations is removed).

Lease term would be offered as one year plus one year extension if performance criteria are met. Additional extensions to be considered towards the end of the second year.

The Fly will continue to make the hall available to community groups at rates comparable to the City’s fees and charges or lower.

The total number of community events must not drop more than 10% below current levels for Victoria Hall.

Existing bookings (some have been made until late 2015) are honoured. The Fly also manages all future bookings and collects all the revenue from them.

The Hobbs Bar is operated (regardless of live music shows) at least on Friday, Saturday and Sunday afternoon / nights to further activate the area.

It is highly desirable that offices for other community groups can be accommodated in lesser hall area (e.g. Pirate FM, CUSP).

Council are given a set number (e.g. 20) of free bookings per annum for City-run Festivals and City-sponsored external events (e.g. Fringe World).

The Fly collects 100% of revenue generated from all activities in the hall.

The Fly pays 100% of all outgoings related to the hall.

The Fly cannot sub-let any part of Victoria Hall for commercial gain without the City’s approval.

An operational strategy, including performance criteria and reporting mechanisms, would be established.


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Option 2: Regular or special rate for Victoria Hall The Fly by Night Club is given an office presence in the lesser hall of Victoria Hall (or somewhere else nearby such as Queensgate office building) and a special or regular user rate for the main hall. The Fly is not provided with a lease for Victoria Hall. The Fly Board have concerns about the viability of this option for the Club. The Fly’s business model is heavily reliant on its ability to generate revenue from bookings in a building that it leases – this option removes that potential income stream for the Club to the point that it may become financially unsustainable. This option may also present significant operational difficulties in order to balance bookings that have the potential to conflict if booked adjacently (e.g. a wedding on the morning after a music performance). Such difficulties are surmountable, but may result in increased operational costs for the hall, particularly related to cleaning and staff over-time. It is for the reasons above that this option is relatively unattractive and possibly not viable for both the City and the Fly Board. In discussing this option, the Fly Board stated: The Fly has seriously considered the option of short term hire of venues as a way ahead (i.e. not leasing) but feels there are a number factors that make this a difficult and less viable option:

1. The Fly is an iconic Fremantle identity and its power to promote local performance and music relies on it having an identifiable base or “home”.

2. The business model is based on venue hire, and without a venue to hire out the Fly becomes simply a promoting business with dramatically reduced liquidity and flexibility.

3. The Fly relies on a considerable amount of sound and staging equipment – without a “home” storage costs would escalate appreciably and heavy additional “bump in / bump out” costs would be incurred. Sound and light equipment is prone to damage from moving and incurs additional operational cost in set up and dismantling. It also reduces the capacity of the organisation to provide a cheap cost venue for not-for-profit events.

4. An office base co-located with a venue makes for a smooth, seamless operation. 5. Leasing of the Victoria Hall and the resultant number of events the Fly will

generate should provide a substantial contribution to the revitalisation of the east end of Fremantle.

A business case was prepared by a consultant on behalf of the Fly (as shown in Attachment 2) to explore, among other things, the potential of The Fly having a modest administrative presence in Fremantle with an ability to hold satellite events is a variety of third party venues around Fremantle and the Perth metropolitan area. However, the business case did not explore this potential option in great detail, so uncertainty still remains over the viability of this potential option.


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Option 3: Expression of interest process for leasing Victoria Hall Victoria Hall is made available for lease and an open expression of interest process is run to find the best possible operator, based on criteria similar to that in Option 1. This option enables other private and community-based organisations to propose alternate uses of the hall that may compare favourably with The Fly's proposal in terms of overall attractiveness and expected benefits for the community. It should be stated that the exclusive lease of an entire City-owned asset has occurred in the past with limited success. The most recent examples of this was the use of Victoria Hall by Deckchair Theatre up to 2012 and the use of Level 1, 13 South Terrace by the arts organisation Kulcha. On those occasions, this negatively impacted the City of Fremantle in a financial way as it was required to write off debt that the tenant owed the City. Proceeding with Option 3 may attract a professional venue management business and / or bar operator. Within Victoria Hall, The Hobbs Bar provides modern bar facilities that are currently under-utilised. Such a scenario may attract an operator who could maintain a small alfresco presence on High Street to activate the street, particularly at night time. The City of Fremantle currently has targets to increase retail space within the CBD. Attracting a high-quality commercial operator to The Hobbs Bar should assist in activating the eastern end of High Street, which may also increase other commercial activity and subsequent passive surveillance in and around the general Kings Square Precinct. Option 4: Business as usual Victoria Hall continues as a bookable venue and is not available for lease to any one group. Members of the community can book the entire facility or individual areas of usage based on their needs. Demand for Victoria Hall has been steadily growing since the City took on management of it. The hall is booked approximately 50% of the time in at least one of the three bookable areas within it. In the 2013 / 14 financial year, the City processed 150 bookings for the hall, many of which were for multiple days.


Financial

Victoria Hall is currently operated on a cost-neutral basis by the City. Income generated from hall bookings is largely off-set by operational costs. Bookings in Victoria Hall currently generate approximately $2 000 - $2 500 per month in revenue for the City. This revenue is somewhat off-set by the cost of maintaining the building to a good standard so that it can be booked by community groups. The cleaning costs associated with the hall are approximately $400 per month due to the regularity of bookings. Additionally, most of the remainder of revenue is offset by the time the City’s Bookings Officer spends showing prospective bookers through the Hall.


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Legal

Depending on Council’s decision, the City may be required to enter into a lease with the Fly by Night Club, or another party. This is likely to incur a cost of approximately $2 000. While the lease terms under Option 1 are for a 1 year plus 1 year lease, the lessee (The Fly) has a legal right insist on a five year lease term from State Administrative Tribunal. Under Section 13 of the Commercial Tenancy (Retail Shops) Agreements Act 1985, for any initial lease term that is more than 6 months, the lessee is entitled to a 5 year term. The total tenure can be a mixture of first term and additional options as long as the total length of tenure calculates to five years (example: Term: 2 years, First Option: 2 years, Second Option: 1 year.) Options within a lease are at the discretion of the lessee not the lessor, however parameters can be set within the 'option to renew' clause of the lease that allows the lessor not to grant the exercise of option. Performance criteria outlined under Option 1 can serve as the parameters of the 'option to renew' clause of any lease for The Fly. Operational

While the City continues to manage the hall, it may use it as leverage to attract major events and festivals to Fremantle. A recent example of this was ‘Fringe World – Freo Royale’, which used Victoria Hall as one of its main venues for Fringe performances as part of the City’s sponsorship. While the City could ensure that a limited number of free bookings be available for the City as part of a lease agreement (which could be passed on to organisers of events such as Fringe World), it would have a reduced capacity to do so. Similarly, the City may have limited flexibility when using the hall as a venue for its own festivals and events program, potentially inhibiting the quality of those services. Organisational

Organisational implications exist for options where the hall is leased (Options 1 and 3) and officer time would no longer be required to manage bookings for the hall. Sufficient alternate work exists for the Bookings Officer within the events and festivals area to accommodate the drop in the bookings workload. Therefore no savings in staff costs will be achieved in Options 1 and 3.

CONCLUSION

The need of The Fly to find a suitable venue in Fremantle is urgent and considerable. Should The Fly not secure a lease, the future of the Club would be uncertain due to a greatly reduced capacity to generate revenue needed to undertake its core business. Victoria Hall is an important community asset of considerable historical significance and may be the solution to The Fly’s immediate problem. Any use of the hall, whether it be in a community or commercial capacity should lend itself to a model that is both financially sound and supports community usage.


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Lessons learned in the past suggest that exclusive leases of the entire building to a single community-oriented entity are difficult to sustain. Generally speaking, poor outcomes have occurred when a community group has been given exclusive use of City-owned buildings, particularly from a financial perspective. In some instances, debts of over $120 000 have been written off for community-based organisations, however The Fly have been successfully operating from the Drill Hall for some time and ended the last financial year operating with a small cash surplus. Details of The Fly’s financial performance are included in Attachments 2 and 3. Notwithstanding the risks and significant uncertainty regarding Option 1 (lease for The Fly), it solves The Fly’s urgent need and provides them with an opportunity to explore the suitability of Victoria Hall as a long-term venue. A tightly controlled lease (from the City’s perspective) with annual performance requirements goes some way to mitigating risk for the City. A lease also provides The Fly with certainty of tenure and allows them to adapt their business model for the Hall and to market their new offering.


Strategic The future use of Victoria Hall provides the opportunity for alignment with varying strategic imperatives. Depending on the Council’s decision, a range and combination of community and financial outcomes may be achieved. Policy Victoria Hall is currently classified as a bookable venue, as per the ‘Guidelines for Bookable Venues’ adopted by Council in August 2014.


No community engagement has occurred to date due to the urgent nature of the request from the Fly by Night Club. In recent months, the City has received several expressions of interest from within the Fremantle business and arts community to lease the hall to a single operator. As Council's direction has been to make the hall available to book (and not lease), these approaches have not been entertained in any detail. Should a lease be provided to The Fly without an open expression of interest process (i.e. Option 1), it is likely that these groups will feel aggrieved that they were not provided with a fair opportunity to propose an alternate use of the hall.




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OFFICER'S RECOMMENDATION

MOVED: Cr A Sullivan Regarding the proposal from the Fly by Night Club to lease Victoria Hall, the Strategic and General Services Committee, in accordance with delegation 1.1, proceed with one of the following options: 1. Option 1, Fly by Night Club Lease - the offer of a lease for Victoria Hall to the Fly by

Night Club on the following basis:

a) The lease term is one year plus an additional year subject to satisfactory achievement of performance criteria that includes:

i. Continued use of the hall by community groups at or less than the current

financial rate and to a level no less than 10% of the current level of usage. ii. Existing bookings (some have been made until late 2015) are honoured. The

Fly also manages all future bookings and collects all the revenue from them. iii. The Hobbs Bar is operated (regardless of live music shows) at least on Friday,

Saturday and Sunday afternoon/nights to further activate the area. iv. Council are given at least twenty free bookings per annum for City-run

Festivals and City-sponsored external events, with the dates provided with no less than 3 months’ notice.

v. The City’s bookings taken precedence over all other bookings. vi. The Fly by Night Club collects all revenue generated from all activities related

to Victoria Hall. vii. The Fly by Night Club is responsible for paying all outgoings related to Victoria

Hall.

b) Evaluation of performance criteria after year one is reported to Council for its information.

c) Market rent is charged minus a 50% community subsidy.

d) A decision to extend the lease term will be brought before Council. 2. Option 3, a full review of the function and intended outcomes of Victoria Hall is

undertaken by the end of the 2014/15 financial year to assess its suitability for lease and if required, an Expression of Interest process is undertaken.

3. Option 4, Business as usual - Victoria Hall continues to operate as a bookable

venue and the City declines the proposal from the Fly by Night Club to lease Victoria Hall.


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COMMITTEE DECISION

MOVED: Cr A Sullivan Regarding the proposal from the Fly by Night Club to lease Victoria Hall, the Strategic and General Services Committee, in accordance with delegation 1.1, proceed with option 1 as follows: 1. Option 1, Fly by Night Club Lease - the offer of a lease for Victoria Hall to the

Fly by Night Club on the following basis:

a) The lease term is one year plus an additional year subject to satisfactory achievement of performance criteria that includes:

i. Continued use of the hall by community groups at or less than the

current financial rate and to a level no less than 10% of the current level of usage.

ii. Existing bookings (some have been made until late 2015) are honoured. The Fly also manages all future bookings and collects all the revenue from them.

iii. The Hobbs Bar is operated (regardless of live music shows) at least on Friday, Saturday and Sunday afternoon/nights to further activate the area.

iv. Council are given at least twenty free bookings per annum for City-run Festivals and City-sponsored external events, with the dates provided with no less than 3 months’ notice.

v. The City’s bookings taken precedence over all other bookings. vi. The Fly by Night Club collects all revenue generated from all activities

related to Victoria Hall. vii. The Fly by Night Club is responsible for paying all outgoings related to

Victoria Hall. b) Evaluation of performance criteria after year one is reported to Council for

its information.

c) Market rent is charged minus a 50% community subsidy. d) A decision to extend the lease term will be brought before Council.

CARRIED: 7/0

For Against



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REPORTS BY OFFICERS (COUNCIL DECISION)

SGS1502-5 NOTICE OF MOTION - CONSIDERATION OF IMPLEMENTING A WATERCRAFT RESTRICTION ZONE - CR JOSH WILSON

ECM Reference: 035/001 Disclosure of Interest: Nil Meeting Date: 18 February 2015 Previous Item: Nil Responsible Officer: Peter Pikor, Director Infrastructure and Project Delivery Actioning Officer: Lionel Nicholson, Manager City Works Decision Making Authority: Council Agenda Attachments: Town of Cottesloe Beaches and Beach Reserves Local

Law 2012

ELECTED MEMBER SUMMARY

There has been community concern expressed over a number of years about the interaction between swimmers and watercraft at Fremantle beaches, especially those beaches to the south of the Fremantle Yacht Club. Incidents have been reported which suggest there is a danger of harm occurring unless watercraft and swimmers are properly separated. At public swimming beaches the priority must always be the safety and amenity of swimmers, and the onus on keeping well clear of such beaches must be on watercraft users. At present there is little clarity about the restrictions, if any, that apply to watercraft in the proximity to Fremantle beaches that are heavily used by swimmers. In the context of the Department of Transport’s aquatic use review and the existence of other local government laws that seek to provide safe and effective regulation of the use of public beaches (for example, the Town of Cottesloe Beaches and Beach Reserves Local Law), it is appropriate that the City of Fremantle explore options and take steps to address this issue.

OFFICER COMMENT

The City has contacted the Department of Transport, Waterways Safety Management, Marine Safety and was advised that Cottesloe's adoption of the Beaches and Beach Reserves Local Law may be underpinned by the detail of their proclaimed boundary. They also confirmed receipt of several ministerial enquiries regarding the beach exclusion matter in Fremantle and undertook to confirm how Cottesloe and another north lying Council were able to achieve the local law. Notwithstanding the above they advised that water safety remained the responsibility of the Department of Transport. Officers from the planning business unit have advised that the City of Fremantle proclaimed boundary is the high tide watermark which may limit the ability of the City to make and enforce a similar local law. Further advice will be sought should the notice of motion be carried by Council.


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The Town of Cottesloe advised that the proclaimed boundary for the Town of Cottesloe was '200 yards seaward from the low water mark' and this is stated in the By-law Relating to Beaches, Reserves and Other Matters gazetted on 7 August 1963, which has since been replaced with newer versions of the local law. They also advised that there are challenges in enforcing the local law particularly around the prohibited activities conducted in or on the water, as enforcement officers are land based. The Department of Transport are considering a review of Aquatic Use from Rockingham to South Fremantle in 2015-16. As part of this process they indicate they will work closely with local governments in undertaking a stakeholder consultation process. The Leader Navigational Safety team will be in contact with the City in the second half of 2015 to commence this review.


Simple Majority Required NOTICE OF MOTION

MOVED: Cr A Sullivan

1. That the City of Fremantle actively participate in the aquatic use review being conducted by the Department of Transport in 2015 so as to achieve better and clearer regulation of Fremantle beach use, specifically in relation to the proper protection of swimming beaches from the impact of watercraft.

2. That officers consider the existing Town of Cottesloe Beaches and Beach

Reserves Local Law as a model for the possible creation of an equivalent City of Fremantle local law that would provide an appropriate watercraft exclusion zone for local swimming beaches.

Cr R Pemberton MOVED an amendment to part 2 of the Notice of Motion to replace the word 'consider' with the word 'investigate', delete the word 'possible', and include the words 'by October 2015', as follows:

2. That officers investigate the existing Town of Cottesloe Beaches and Beach Reserves Local Law as a model for the creation of an equivalent City of Fremantle local law that would provide an appropriate watercraft exclusion zone for local swimming beaches by October 2015.

CARRIED: 7/0

For Against

Mayor, Brad Pettitt Cr Rachel Pemberton Cr David Hume Cr Andrew Sullivan Cr Sam Wainwright Cr Dave Coggin Cr Robert Fittock


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REASON FOR CHANGE TO NOTICE OF MOTION: The Committee felt that investigating the circumstances that the Town of Cottesloe achieved the proclaimed boundary may contribute to the City successfully gaining a similar boundary proclamation, and therefore being in a position to implement a similar local law. The addition of a timeframe ensures that the investigation is completed in a timely manner.

COMMITTEE RECOMMENDATION


1. That the City of Fremantle actively participate in the aquatic use review being conducted by the Department of Transport in 2015 so as to achieve better and clearer regulation of Fremantle beach use, specifically in relation to the proper protection of swimming beaches from the impact of watercraft.

2. That officers investigate the existing Town of Cottesloe Beaches and Beach Reserves Local Law as a model for the creation of an equivalent City of Fremantle local law that would provide an appropriate watercraft exclusion zone for local swimming beaches by October 2015.

CARRIED: 7/0

For Against



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REPORTS BY OFFICERS (COMMITTEE DELEGATION)

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

SGS1502-3 APPLICATION FOR NEW LEASE - LOT 39 DALY STREET, SOUTH FREMANTLE

ECM Reference: 049/008 Disclosure of Interest: Nil Meeting Date: 18 February 2015 Previous Item: SGS1501-3 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Nadine Hume, Property Services Administrator Decision Making Authority: Committee Agenda Attachments: Letter of Application from Humich Nominees Pty Ltd and

Anilia Pty Ltd Revised proposed concept plan Proposed management of trees

EXECUTIVE SUMMARY

The City has received a submission from Humich Nominees Pty Ltd and Anilia Pty Ltd for permission to develop a car park on a portion of 39 Daly Street, South Fremantle. This item is to request that Council consider a lease agreement with Humich Nominees Pty Ltd and Anilia Pty Ltd for a portion of Lot 39 Daly Street, South Fremantle with an area of 1702m2.

BACKGROUND

The former South Fremantle landfill site was operational between 1931 and 1986. The Department of Environment Regulation (DER) has classified the site as 'contaminated – remediation required' under the provisions of the Contaminated Sites Act 2003. The site received a wide range of waste including domestic, industrial and hazardous waste. The site is located to the west of Hampton and Cockburn Roads, 2.4km of the Fremantle City Centre and covers an area of 19.43 hectares. The area was split into three recognised sites being Hollis Park, Sandown Park and Daly Street. The Daly Street area was originally a limestone quarry which was excavated from 1939 – 1956. Waste was disposed of at this site prior to Sandown Park site operation, with general domestic waste disposal ceasing in 1958. Once Sandown Park reached capacity in 1980, Daly Street was again used as landfill from 1980 to 1991.


Page 23

There is little information on the level of the base of the waste for this area, however the inferred depth is typically between 5 metres to 10 metres. At one monitoring location, waste was approximately 2 metres to 3 metres from the surface. At a second monitoring location, waste was identified at ground level. The types of waste known to have been disposed of within the Daly Street section of the site include domestic waste, bulk trade waste and fly ash. As a former landfill site, environmental and engineering considerations need to be addressed in the formulation of development proposals. Methane and carbon dioxide generation from the decomposition of organic matter and land subsidence resulting from the movement of subterranean fill materials are the primary concerns. The City’s Field Services and City Works staff ensure that periodic environmental monitoring and ongoing site management is performed to manage public health and safety risks to the satisfaction of a DER accredited Contaminated Sites Auditor. Humich Nominees Pty Ltd and Anilia Pty Ltd originally requested the use of 1580m2 for the development of a car park which will be used by the shopping centre located on the corner of Daly Street and Hampton Road with the primary use to be staff parking. The area is on the outer edge of the former landfill site. At the Strategic and General Services Committee meeting on 21 January 2015 the request was unanimously lost. It was explained by the Chair, Councillor Andrew Sullivan that the trees presently in the area where the proposed car park would be developed were planted by the community and that it would negligent of the City to allow them to be taken out to allow for a car park development. It was proposed that if the applicant revised the concept so that the trees remained and were maintained by the applicant then the proposal could be reconsidered.

COMMENT

Feedback received from the Strategic and General Service Committee was relayed to the applicant who has resubmitted their proposal in which the trees could remain and the car park could be positioned around them. The revised plan attached to this item shows the proposed new layout of the car park. The proposal maintains the large majority of the mature trees and shrubbery. It does remove four small trees which sit at the eastern end of the proposed driveway and a single small tree which is at the western end close to the kerb edge. These five trees would then be replaced with new semi mature trees. Refer to Attachment 3 to identify trees impacted upon. Due to the classification of the site as 'contaminated – remediation required' by the DER, a potential lease agreement will need to be subject to strict conditions. The applicant shall engage the services of a qualified environmental consultant to perform an investigation and prepare a report, at their cost, demonstrating the site can be safely developed as a car park.


Page 24

The environmental consultant’s report will need to be audited by a DER approved contaminated sites auditor who will make a recommendation to the DER in regard to the quality of the report and the suitability of the site as a car park. This process will need to be undertaken to the satisfaction of the DER prior to the applicant submitting a development application to the City’s Planning Department. As there will be a cost to the applicant to undertake this work, they have requested a lease prior to any financial expenditure. The lease will include a 'Condition Precedent' clause which will outline the conditions that will render the lease null and void if they not be completed or approved. Due to the contamination of the land the applicant wants to avoid development towards the middle of the Daly Street lot, it is for this reason the proposed leased area has been adjusted to maintain the development on the outer edge of the lot. As the City is requesting the trees remain and are maintained by the applicant rental for this area will not be charged. Under these terms 1255m2 will make up the area of the car park with a rate of $10m2 and 447m2 of the leased area which contain the trees will be rent free. The essential lease terms and conditions are as follows; Land description Portion of Lot 38 on Diagram 20161 Volume 1192 Folio 393 (a surveyed plan to be attached to the lease) Property description Land Registered proprietor City of Fremantle Site area Daly Street, South Fremantle – 1702m2 Lease commencement date TBA Lease term Ten (10) years Annual rent $10m2 x 1 255m2 = $12 550 + GST 447m2 rent free To be payable in equal monthly amounts Rent review Annually on the anniversary of the lease based on consumer price index (CPI) with the exception of every fifth year which will be based on independent market valuation (the market valuation will be based on vacant land with no improvements). The rent review will be calculated to the portion of 1 255m2 only.


Page 25

Permitted use Car park Outgoings To be charged on demand, including but not limited to;

Council rates

Emergency Service Levy

Land tax

Water rates/usage (if applicable)

Electricity (if applicable) Legal fees for new lease Each party will be responsible for their own costs. Special Conditions

1. The lessee acknowledges that the proposed site is classified as 'contaminated – remediation required' by the Department of Environment Regulation.

2. The lessee will be responsible for the cost of all improvements to the land including but not limited to; development application and approvals, cost of development, statutory approvals required as conditions to the development.

3. All contractors used for the purpose of investigation and approval required by the Department of Environment Regulation and any further monitoring of the area relating to the contaminated land, for the term and further term of the lease, will be contractors approved and/or recommended by the lessor.

4. The lessor or its agents will be entitled to enter the site after giving reasonable notice in writing, to conduct inspection of the site in relation to the registered contamination.

5. The lessee will be required to take direction from the lessor regarding any actions necessary as to maintaining this contaminated site for the term and further term of the lease.

6. The applicant will remove 5 trees (4 trees on the eastern end of the driveway and one tree on the western end close to the kerb edge). These 5 trees must be replaced with 5 new semi mature trees within the leased area.

7. All remaining trees and new trees must be maintained by the lessee throughout the term of the lease, including watering, fertilising and pruning as necessary. Any trees that perish must be replaced with a new semi mature tree.

Condition Precedent The lease is subject to the following condition precedents to be undertaken by the lessee;

1. The commission of an environmental report prepared by a suitably qualified environmental consultant on the leased site.

2. The environmental report being audited by a Contaminated Sites Auditor accredited by the Department of Environment Regulation.

3. The proposal, including the Environmental Report being approved by the Department of Environment Regulation.

4. A management plan to be prepared for the site to the satisfaction of the lessor. 5. Development application approval.


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Financial

The proposed rent is based on a market valuation of contaminated vacant land with the determination being $10m2. The area for the lease for which rent will be applied will be 1 255m2 there for the rent will be $12 550pa + GST. All investigations related to the viability of the proposal and any costs associated with the development process and ongoing maintenance, including the maintenance of the trees, will be at the cost of the lessee. Legal

A lease agreement with Humich Nominees Pty Ltd and Anilia Pty Ltd must comply with the WA Local Government Act 1995, Commercial Tenancy (Retail Shops) Agreements Act 1985 and the conditions outlined by the Department of Environment Regulation regarding the management and development of a contaminated site. Operational

City Officers will finalise a lease based on the essential terms and conditions outlined within the resolution of this item. Organisational

Nil

CONCLUSION

As a registered contaminated site the Daly Street site has limited uses. The cost of any investigation and development of this proposal will be at the cost of the lessee with no impact on the City’s budget. The proposed lease terms ensure that the lease is made void should the lessee be unable to meet the expectations of a Contaminated Sites Auditor or the DER and fail to obtain approval to develop the site into a car park. Should the applicant obtain all necessary statutory approvals and proceed with the development, the City will gain the benefit of rental income from a site that is currently not being utilised.


Nil


Nil


Page 27



OFFICER'S RECOMMENDATION

That the Strategic and General Services Committee, acting under delegation 1.1 authorises a lease with Humich Nominees Pty Ltd and Anilia Pty Ltd based on the following essential terms and conditions; Land description Portion of Lot 38 on Diagram 20161 Volume 1192 Folio 393 Property description Land Registered proprietor City of Fremantle Site area Daly Street, South Fremantle – 1702m2 Lease commencement date TBA Lease term Ten (10) years Annual rent 1 255m2 x $10m2 = $12 550pa + GST 447m2 rent free To be payable in equal monthly amounts Rent review Annually on the anniversary of the lease based on consumer price index (CPI) with the exception of every fifth year which will be based on independent market valuation (the market valuation will be based on vacant land with no improvements). Permitted use Car park Outgoings To be charged on demand, including but not limited too;

Council rates

Emergency Service Levy

Land tax

Water rates/usage (if applicable)


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Electricity (if applicable) Legal fees for new lease Each party will be responsible for their own costs. Special Conditions

1. The lessee acknowledges that the proposed site is classified as 'contaminated – remediation required' by the Department of Environment Regulation.

2. The lessee will be responsible for the cost of all improvements to the land including but not limited to; development application and approvals, cost of development, statutory approvals required as conditions to the development.

3. All contractors used for the purpose of investigation and approval required by the Department of Environment Regulation and any further monitoring of the area relating to the contaminated land, for the term and further term of the lease, will be contractors approved and/or recommended by the lessor.

4. The lessor or its agents will be entitled to enter the site after giving reasonable notice in writing, to conduct inspection of the site in relation to the registered contamination.

5. The lessee will be required to take direction from the lessor regarding any actions necessary as to maintaining this contaminated site for the term and further term of the lease.

6. The applicant will remove 5 trees (4 trees on the eastern end of the driveway and

1 tree on the western end close to the kerb edge). These 5 trees must be replaced with 5 new semi mature trees within the leased area.

7. All remaining trees and new trees must be maintained by the lessee throughout

the term of the lease, including watering, fertilising and pruning as necessary. Any trees that perish must be replaced with a new semi mature tree.

Condition Precedent The lease is subject to the following condition precedents to be undertaken by the lessee;

1. The commission of an environmental report prepared by a suitably qualified environmental consultant on the leased site.

2. The environmental report being audited by a Contaminated Sites Auditor accredited by the Department of Environment Regulation.

3. The proposal, including the environmental report being approved by the Department of Environment Regulation.

4. A management plan to be prepared for the site to the satisfaction of the lessor. 5. Development application approval.


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COMMITTEE DECISION

Cr A Sullivan MOVED the following alternative recommendation: That the Strategic and General Services Committee defer item SGS1502 - 3 until the next appropriate meeting to allow Officers to investigate the impact the proposed lease could have on the Expression of Interest process for a Solar Farm at the South Fremantle Landfill Site, which will be considered at Ordinary Council Meeting 25 February 2015. CARRIED: 7/0

For Against


REASON FOR CHANGE TO OFFICER'S RECOMMENDATION The proposed lease for 39a Daly Street could have impact on the Expression of Interest for a Solar Farm which covers the entire South Fremantle Landfill site. An item regarding a proposal received by First Solar has been considered at the Special Projects Committee Meeting held on 11 February 2015, and will proceed to Ordinary Council Meeting to be held on 25 February 2015. Discussions will be had with First Solar regarding the proposed car park and possible impact.


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REPORTS BY OFFICERS (COUNCIL DECISION)

SGS1502-4 POPCORNX - WINTER FESTIVAL 2015

DataWorks Reference: 042/005 Disclosure of Interest: Nil Meeting Date: 18 February 2015 Previous Item: Nil Responsible Officer: Marisa Spaziani, Director Community Development Actioning Officer: Marie La Frenais, Event Management Coordinator Decision Making Authority: Council Agenda Attachments: Attachment 1 - Winter Festival Event Plan 2015 -

Fremantle

EXECUTIVE SUMMARY

A request has been received for the City to enter into a sponsorship agreement with PopcornX for the Winter Festival (Ice Rink) to be held in Fremantle in July 2015. The proposal is for PopcornX to hire the Esplanade Reserve (Sector C) for the Winter Festival from 15 June 2015 to 24 July 2015, inclusive of bump in and bump out. The total fees and charges applicable to this event total $93 340 and inclusive of;

$66 200 - 40 days hire

$10 000 - bond

$15 000 - ground restoration fees

$2 140 - booking fee and health fees and charges For the 2012 event, 100% of reserve hire fees only were waived for the same event, totalling $44 310 for a total of 30 days. PopcornX has requested the full waiving of the reserve hire fees. The hire will include bump in on 15 June 2015 and bump out on 24 July 2015. The full commercial fee for the hire for the reserve for 40 days is $66 200.

BACKGROUND

Winter Festival by PopcornX has already demonstrated success in bringing thousands of people to Fremantle to ice skate in 2012. The event provides an activity for children to attend over school holidays. The event is expected to have a positive impact on the local economy. As a conservative guide, if event goers spend an average of $10 on other services and amenities such as parking, eating and shopping when visiting Fremantle, the injection into the Fremantle economy will be approximately $1 000 000. The City does not request the event holder to measure this injection to the local economy, but rather makes this assumption based on other similar events held in the State. The organiser is expected to charge the general public $25 per adult and $15 per child for one hour of ice skating. There is a small food and beverage service in a marquee to one side of the ice rink that is open to the public in the evenings and will serve food and alcohol, subject to the approval of a liquor licence from the Department of Racing, Gaming and Liquor.


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In 2014, an item went to Council requesting that the fees and charges be paid at a 75% subsidy. This was passed, but unfortunately the event did not proceed due to a key sponsor pulling out at the last minute.

COMMENT

This event was successfully held at the Esplanade Reserve in 2012 with attendance numbers estimated to be close to 100 000 over a comparable one month period. The event brings direct economic benefit in line with the Event Sponsorship Policy, inclusive of:

Social/Community/Tourism Offer a unique experience that may increase immediate and repeat visitation to Fremantle. Deliver a point of difference for the Fremantle and West Australian events calendar.

Marketing Use of 'Fremantle - Be Part of the Story' key messages and branding on social media channels, media releases, promotions, advertising and PR activities.

Other areas of the City that may incur less impact to the footprint area were considered, however proved unsatisfactory due to the square meterage the ice skating infrastructure required and logistical implications. This is the only premiere event to be held in winter rounding out the City’s annual event calendar. Comments from Manager Economic Development and Marketing The City receives highly positive comments from the business community regarding the 2012 Winter Festival. The business community recognises the economic benefits that the event delivered for Fremantle, both directly throughout the duration of the event and indirectly through improving Fremantle’s profile and the perception of its offer to visitors. Importantly, the City has not received any negative comments regarding the 2012 event as it did not directly compete with existing business offerings and in the opinion of the business community, it did not cause undue disruption to pedestrian and traffic flow. Additionally, the timing of the event is ideal for Fremantle. The winter months are typically poor for retail and hospitality businesses in Fremantle due to significantly reduced visitor numbers. Holding a major event throughout the quieter times of the year will help to cushion the drop in performance for population-driven businesses, assuming that the additional visitation to Fremantle (expected to be more than 100 000) results in greater expenditure capture by local businesses. For the reasons above, the event will be an excellent addition to Fremantle’s already successful events and festivals calendar. Based on recent conversations with the event organisers, it appears they’re working hard to secure sponsors for the 2015 event and beyond. Whilst the organisers are keen to secure at least a four or five year term in Fremantle, they face difficulties convincing sponsors of the event’s success for the first year or two, particularly in the current economic environment. Securing sponsorship is by no means guaranteed (as is evident by their late cancellation in 2014) and the financial viability of the event in the first one or two years in Fremantle will be tenuous.


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It is for this reason that I believe 100% of the reserve hire fee for the first year of the event, should be waived conditional on the organiser committing to holding the event exclusively in the City of Fremantle for the next three years. Comments from Parks Manager A $15 000 turf restoration fee is to be applied to recover costs for irrigation repairs and turf restoration works. Given the Esplanade Reserve is the City’s premier events and recreational space, the surface and infrastructure requires more intensive year round maintenance to meet user needs and to ameliorate high wear from heavy use. This event over a period of six weeks in the middle of winter is likely to cause turf loss from ground compaction, limited watering during the winter Water Corporation sprinkler bans and turf growth dormancy from cool weather. A substantial spring turf renovation program and isolation of recovering areas will be required to prepare the Reserve for the summer events and user activities. The bond amount of $10 000 will only be reimbursed once Parks and Landscape staff inspects the grounds post event. The event organisers will be required to develop a plan with officers for vehicle access to the site, to ensure that sprinkler breaks, compaction and wear and tear to turf and tree roots are limited. Daily litter pick up and disposal in the lease area will be the responsibility of the event organisers. Event details:


Page 33


Financial

There is a potential loss of revenue for the City of $66,200 by waiving of the hire fees of the Esplanade Reserve (sector C). All other fees and charges still apply including $25,000 (ground restoration fee and bond) plus $2,140 (booking fee and health fees and charges). This loss of revenue is considered to be outweighed by the expected economic benefit to local businesses and the wider Fremantle community. The event organiser has advised that the Winter Festival is unlikely to be financially viable if full fees are charged, however there is no way to verify this without access to financial data. Key details:

Legal

Nil Operational

Prior to the event, Popcornx will provide the City with:

A safety and risk management plan.

Transport strategy for patrons.

Site plan with clear indication of the first aid areas and emergency exits.

Security company agent licence.

Public liability insurance. Organisational

Environmental Health will require the following permits and certificates a month prior to the event:

Public building certificate, structural engineer’s certificate (stage/structures), certificate of electrical compliance.

Trading in Public Places approval for food stalls.

Additional rubbish bins. Various business units will need to undertake monitoring and facilitation activities prior to, during and following the event. Operations meetings with key stakeholders will be facilitated by the City.


Page 34

CONCLUSION

Attracting the Winter Festival to Fremantle will be a significant achievement, drawing participants and an audience from across the Perth metropolitan area. This in turn will have a positive impact on the local economy. The City must weigh up the positive impact in attracting an event in the winter months versus the extra wear and tear on the Esplanade Reserve and the associated costs with re-establishing the park to a good condition. The fees collected from the hire fees and charges are directed to the parks budget to assist with the upkeep of this A Class Reserve. If 100% of the hire fees are waived on the condition that the organiser commits to holding the event exclusively in the City of Fremantle for the next three years, the only fees available for the upkeep of the Esplanade Reserve is the $15 000 restoration fee. Unlike 2014, PopcornX have already engaged a key sponsor for 2015 as well as received interest from a large number of interested brands. They are confident all key sponsors will be locked in by February 2015.


The agreement reflects Fremantle to be recognised as a unique City of cultural and economic significance. It is in line with the City's Events Sponsorship Policy.


Consultation with local businesses will be undertaken by the organiser.


Absolute Majority Required


Page 35

COMMITTEE AND OFFICER'S RECOMMENDATION


1. The City of Fremantle enter into a three year sponsorship agreement with PopcornX’s Winter Festival by waiving 100% of the Reserve Hire Fees only for the Esplanade Reserve (sector C) totalling $66 200 for 2015, conditional on the organiser committing to holding the event exclusively in the City of Fremantle for the next three years. All other fees and charges will apply.

2. That the Chief Executive Officer is delegated to negotiate fees for 2016 and 2017.

3. A $25 000 bond will be payable with the stipulation that $15 000 will be charged for turf restoration and $10 000 is reimbursable following post-event assessment by the City.

4. PopcornX agrees to work collaboratively with the City to cross promote the event and the Fremantle Story place marketing theme to a reasonable extent on marketing collateral, to the satisfaction of the Manager of Economic Development and Marketing and that the event organiser supplies 100 tickets to the City to distribute to disadvantaged families.

CARRIED: 7/0

For Against



Page 36

SGS1502-6 ADOPTION OF THE PLASTIC BAG REDUCTION LOCAL LAW 2015

DataWorks Reference: 039/074 Disclosure of Interest: Nil Meeting Date: 18 February 2015 Previous Item: SGS1411-13; Responsible Officer: Paul Garbett, Manager Planning Projects and Policy Actioning Officer: Melanie Bainbridge, Sustainability (Strategic) Officer Decision Making Authority: Council Agenda Attachments: Amended version - City of Fremantle Plastic Bag

Reduction Local Law 2015

EXECUTIVE SUMMARY

The City of Fremantle Plastic Bag Reduction Local Law 2014 was readvertised in accordance with the Local Government Act 1995 from 4 December 2014, to 30 January 2015. Twelve (12) submissions were received of which ten (10) were in support and two (2) objections. Council is recommended to finally adopt the local law incorporating relevant legal advice and with one minor amendment to update the title and text of the local law to read 2015 rather than 2014, as the law will be gazetted this year.

BACKGROUND

On 9 July 2014, Council resolved that:

Council adopt the Plastic Bag Reduction Local Law 2014 as shown in Attachment 1 of the Strategic and General Services agenda 9 July 2014.

Since this resolution was passed, the City has conducted a further full public advertising period regarding the City of Fremantle Plastic Bag Reduction Local Law 2014. The community feedback received over the advertising period indicates general support for the local law. Prior to the local law being submitted to Council, comments received from the Department of Local Government and Communities (DLGC), and subsequent legal advice sought from McLeod's Legal indicated that some further changes to the local law would be required, in particular in response to penalties changed in the last iteration of the local law. Neither the full advice from the DLGC nor the full legal advice from McLeod's Legal are attached at this time but were provided previously. New advice has been received from the DLGC pertaining to some minor amendments, as outlined below.


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COMMENT

A range of minor recommended wording amendments were initially suggested by the DLGC to make the law more politically palatable; these were noted when the amended local law was provide to Council for adoption in July 2014 – reference SGS1402-6. These were embedded in the attached update of the proposed local law. Subsequent advice received from the DLGC during the submission period, suggests that the title of the local law should be amended to read 2015 (and clause 1, and the signature block amended to reflect). It also reiterated that while the City has taken steps to ensure that the law-making process in section 3.12 of the Local Government Act 1995 has been complied with, there is still a strong possibility that the local law will be disallowed by Parliament due to the subject matter of the local law itself. Its final major comment was to assert that the definition of a ‘single use plastic shopping bag’ as a ‘bag with handles’ implies that any bag without handles will not qualify as a single use plastic shopping bags for the purposes of the local law and as such will not fall under the application of clauses 5(1) and 6. On consideration the City of Fremantle agrees with this assertion, however considers that this distinction has been deliberately made to ensure that barrier bags, used for hygiene reasons, were not captured by this local law. Thus the definition does represent the City’s intentions for the local law and will not be amended. These comments have been considered and embedded into the amended local law as attached to this report. Through this round of community consultation a total of twelve (12) public submissions on the local law were received. Ten of these were in favour of the law and two against (one from Woolworths, and one from a community member). The submission from Woolworths in the main noted that the local law would impinge on consumers’ right of choice, and that the City of Fremantle’s strong stand on the weight of bags acceptable under the process may create some difficulty in their procurement processes. While the City respects consumers right to choice, it also considers that where more environmentally sensitive options are available, plastics should not be the first option offered to customers by retailers, and that, while some programs of voluntary alternatives have been somewhat successful (i.e. the non-woven polypropylene re-usable ‘green’ bags provided by some retailers), only strong legislative change will bring about an effective, broad-scale shift to alternative options. It is also acknowledged that for large, chain retailers, who achieve significant economies of scale through their bulk procurement processes, this local law may create some need to address the inconsistency through their supply chain, and may result in some minor increased costs. The City of Fremantle does not consider this a strong rationale for a retailer to make an ongoing commitment to environmental harm. It also does not consider that these larger retailers operate on such small margins that they cannot accommodate this change.


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The submission from the community member cited inconvenience to shoppers and a preference for public recycling bins to be provided for plastic bags. Laws such as this have been instituted in a large number of jurisdictions around the world, from small shires, to major cities, states and even whole countries. While initial inconvenience has been noted in these jurisdictions, a fast and effective shift to a more environmentally friendly process has been observed, and minimal disruption to shoppers has been recorded. In many of these countries a charge is levied on the supply of bags, which is not being instituted here. Providing public place recycling bins for plastic bags specifically is not a realistic option for the local government. Few options for recycling plastic bags are accessible, and the cost to the local government of providing such a service and ensuring its effectiveness in the face of current misuse and contamination rates in public place recycling receptacles would be prohibitive. Additionally, plastic bags cannot be recycled via the standard ‘yellow topped’ recycling bins as serviced by the local waste treatment processing options. One submission was received which was highly supportive, however wished the law to be stronger on its stance on the types of bags allowed and disallowed by Fremantle retailers; and one submission, from the Western Regional Organisation Of Councils (WESROC), representing the Town of Claremont, Town of Cottesloe, Town of Mosman Park, Shire of Peppermint Grove, City of Nedlands and City of Subiaco, was in favour of the law and signed by all Chief Executive Officers of the Councils. RISK AND OTHER IMPLICATIONS

Financial

The drafting and advertising of the local law has and will incur some costs, which have been borne by the City’s operating budgets. The subsequent implementation of an education campaign for the local law will require more material resources, which are not currently budgeted for. It is recommended that quotes be sought from qualified marketing agencies to develop and deliver a broad scale marketing and communications campaign / plan for the local law post its successful passage through the Joint Standing Committee and Parliamentary process in consultation with City of Fremantle Officers, to ensure the community is well informed of the changes and able to adjust accordingly. Legal

The purpose and effect of the Plastic Bag Reduction Local Law 2014 remain largely unchanged from the 2012 version. The purpose of the local law is to reduce the use of plastic shopping bags within the City of Fremantle. The effect of the local law is to prohibit retailers from providing single use plastic shopping bags. Amending the local law as suggested by the DLGC would ensure that the local law meets all legal standards, but does not guarantee its passage through the JSC.


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Operational

The City does not currently have a full enforcement plan for this local law. The City’s experience with local businesses is that they are law abiding organisations and as long as the requirements are clearly spelt out and they have reasonable time to adjust, significant compliance procedures should not be necessary. This will however need to be reviewed once the law is enacted. If necessary, a resourced compliance strategy will need to be put in place at that time. Organisational

Discussions have been undertaken with the Compliance section of the Environmental Health Unit, which has agreed to undertake checks during their routine program.

CONCLUSION

The local law has undergone a range of consultation processes, embedded all appropriate advice from stakeholders and considered the public responses / submission made.


The City adopting a position stating that it will become a “Plastic Bag Free City”. This local law would codify this position.


See BACKGROUND section above.




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MOVED: Cr A Sullivan That the City of Fremantle Plastic Bag Reduction Local Law 2015 as attached to the agenda of the Strategic and General Services committee 18 February 2015, be adopted and published in the Government Gazette in accordance with the Local Government Act 1995. CARRIED: 7/0

For Against



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SGS1502-7 SUBMISSIONS TO WALGA STREET LIGHTING AND COASTAL PLANNING AND CLIMATE CHANGE

ECM Reference: 030/007 Disclosure of Interest: Nil Meeting Date: 18 February 2015 Previous Item: Nil Responsible Officer: Paul Garbett, Manager Strategic Planning Actioning Officer: Melanie Bainbridge, Sustainability (Strategic) Officer Decision Making Authority: Council Agenda Attachments: WALGA street lighting discussion paper

City of Fremantle submission - street lighting WALGA coastal planning and climate change discussion paper City of Fremantle submission - coastal planning and climate change

EXECUTIVE SUMMARY

Officers have prepared two submissions to WALGA discussion papers, which had to be submitted prior to consideration by Council in order to comply with the deadline for comments. The submissions were made with a disclaimer that Council had not yet considered the submissions, and that post consideration an updated final submission would be made to WALGA on these issues if any substantial amendments were required. The submissions are on street lighting and coastal planning and climate change respectively, and have been prepared by the City’s Sustainability (Strategic) Officer who has significant expertise and experience in both matters.

BACKGROUND

WALGA Street Lighting Discussion Paper WALGA released a street lighting discussion paper in November 2014 with a deadline of 30 January 2015. The paper focussed on the development of actions and strategies that WALGA could undertake on behalf of the sector to address the current acknowledged issues with Western Power owned street lighting options, and the impacts that these have on the energy and cost efficiency of local governments within a non-contestable market. WALGA Coastal Planning and Climate Change Discussion Paper WALGA released a coastal planning and climate change legal liability discussion paper in November 2014 with a deadline of 30 January 2015. The paper focussed primarily on providing clarity on the current issues around legal liability for climate change adaptation actions and the measures that local governments might take in order to mitigate or ameliorate these liabilities to a degree.


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COMMENT

On direction from the Chief Executive Officer, responses to both papers were drafted and submitted to WALGA by the deadline. The responses are shown in the attachments to this report. Street lighting in summary The City’s response to this paper largely focuses on the inequitable situation caused by the current non-contestable arrangements for provision of street lighting and distribution of energy to Western Power owned street lighting infrastructure. The nature of this inequity is largely as a result of Western Power’s lack of responsiveness to requests to update their street lighting technology offerings to local governments to sustainable options (i.e. LED technologies). Currently, local governments have very limited ability to influence street lighting infrastructure choices, unless they make major capital investments in the upgrade of that infrastructure themselves, which is then gifted back to Western Power and not under the operational control of the local government. This significantly impedes a local government’s ability to reduce its costs, energy use and carbon emissions profile. Street lighting represents a significant cost to local governments, often representing up to 50% of their energy spend and is a major contributor to the emissions profile, which some local governments, like Fremantle, purchase offsets for as part of their carbon emissions reduction commitments. The City has, in the main, responded favourably to the discussion paper, urging WALGA to take the lead on street lighting advocacy. In an uncertain political environment with much contention around renewable energy targets, tariff setting and lack of transparency in energy costs and charges, a move towards sustainability in the street lighting sector would be of major value to local governments. The inequity in a system which forces local governments to purchase energy from what would appear to be a government-owned monopoly, but allows them no influence on the product it purchases is not a situation that the City condones. Coastal Planning and Climate Change in summary The City’s response to this paper largely focuses on the possibility for legal liability or challenge arising from climate change actions (or lack thereof). The paper questions whether local governments perceive there to be significant liability or risk of legal challenge arising out of climate change impacts or applied adaptation planning or infrastructure measures and whether local government understands these risks, and has capacity to address them. Currently, the City of Fremantle is well placed to understand and address these risks via its internal expertise (SSO has 10 years of experience in climate change policy and specifically a four year post graduate fellowship in adaptation policy and practice via the National Climate Change Adaptation Research Facility) and its current involvement in the Cockburn Sound Coastal Alliance (CSCA). Additionally, research is being conducted into saline intrusion issues in the West End Heritage precinct as a result of climate driven water table rise.


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While the City is possibly better placed than most to tackle climate change adaptation issues, the concern remains that collaborative and consistent policy and infrastructure responses are far more effective at providing a defensible legal position for local governments, particularly around contentious planning policy issues. To this end the City recommends that the state provide a more ‘water-tight’ policy and regulatory framework around planning for climate change, and be the custodians of consistent and accessible mapping of risk prone areas that local governments can use to ensure that their policy responses are based around the most up-to-date information and are supported by the state government, in turn ensuring shared risk and responsibility.


Financial

The City contributes to the CSCA annually to ensure that continued mapping, research and policy recommendations can be made collaboratively through this group. Funding was awarded in late 2014 to continue this program (through the Department of Transport) and phase three of the program will be undertaken in 2015. This will include a community consultation program to ascertain the social values of coastal environmental and infrastructure assets within the research area. Adaptation is an ongoing issue for local governments, and to ensure legal risks are mitigated to the level that they can be, continual monitoring and application of best practice actions will be required. While the financial impacts of these actions over time cannot yet be quantified, some ongoing costs can be anticipated. For local governments to effect change in the street lighting area significant capital investment would be required, however there is a methodology currently being considered at the Commonwealth level, as part of the Emissions Reduction Fund development, which may enable local government access to the fund auction in the future. The SSO is currently working with the Commonwealth on the development of this methodology, to ensure that Western Australia (given its issues around non-contestability of street lighting energy distribution which are significantly different to those of local governments in the Eastern States) is included in this process. Legal

There are some legal risks inherent in climate change adaptation issues, as outlined in the discussion paper and the City’s response, however there are various measures that local governments may take and which Fremantle is currently implementing via the various processes outlined above, including supporting WALGA in its advocacy processes around these matters. Any qualifications to this support have been fully outlined in the response to the discussion paper. There are few legal issues apparent in the street lighting considerations, however the City is currently considering developing an energy strategy, in which street lighting provision and energy distribution will feature strongly.


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Operational

The SSO will continue to participate in the CSCA and will develop policy when appropriate, however most other business units will need to be aware of and address climate change impacts across the operations of the City in some manner. In particular, the Planning, Infrastructure Projects and Parks and Landscape business units are likely to need to be aware of ongoing issues. The SSO will work with the Infrastructure Projects team to develop an energy strategy for the City which will include street lighting. Organisational Ongoing internal briefings will be conducted as information becomes available and accessible to the City through various channels and activities.

CONCLUSION

WALGA is to be commended for continuing to advocate strongly on important issues that affect local governments. Both street lighting and climate change adaptation particularly are ongoing areas for concern for the City of Fremantle and local government generally. It is hoped that the responses to these discussion papers, and the City’s support for strong advocacy in these areas on behalf of the sector provides impetus for WALGA to continue to work with the State Governments and the Commonwealth, to highlight these important issues and bring them to the forefront of future policy discussions.


Post the next phase of the CSCA, which will include some community consultation, the City will consider developing an adaptation related planning policy outlining its preferred responses to adaptation issues. As previously mentioned the City is currently considering developing an energy strategy, in which street lighting provision and energy distribution will feature strongly.


As outlined above.




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MOVED: Cr A Sullivan That Council approve the draft submissions on the street lighting and coastal and climate change discussion papers as shown in attachments 1 and 3 for final submission to WALGA. CARRIED: 7/0

For Against



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SGS1502-8 MID YEAR BUDGET REVIEW - FEBRUARY 2015

ECM Reference: 091/016 Disclosure of Interest: Nil Meeting Date: 18 February 2015 Previous Item: C1411-5 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Alan Carmichael, Manager Finance and Administration Decision Making Authority: Council Agenda Attachments: Rate setting statement by nature and type with revised

budget Rate setting by program with revised budget

EXECUTIVE SUMMARY

Local Governments are required to undertake a mid-year budget review each year to ensure sound financial management. This year the review has been undertaken earlier than previous years as officers are mindful of the workload that is going to build for local government reform as we approach 30 June 2015. A review has been undertaken by Directorate and nature/type and the results have been considered by the Senior Management Group. The review has highlighted a number of changes due to various reasons outlined within the report. The budget was originally adopted with an estimated 30 June 2015 closing municipal cash surplus of $100 000. Re-adoption of the budgets and rates following a State Administrative Tribunal (SAT) decision reduced the surplus by $20 752 plus decisions of council reduced it a further $98 487 to bring the current estimated closing position to a deficit of $19 239. The budget was originally adopted with an estimated 30 June 2014 closing municipal cash surplus of $1 969 947. After completion and audit of the financial statements to 30 June 2014 the closing surplus came in at $1 856 988 which produced a municipal deficit of $112 959 which will be addressed as part of this review. In addition, finalisation of the financial statements also produced unexpended loan funds of $179 441 that were not budgeted for in the estimated closing position at 30 June 2014 or the 2014 / 2015 budget and they will also be addressed as part of this review. The budget review has determined an estimated cash surplus to 30 June 2015 of $0. That will be the opening position for the 2015/2016 City of Fremantle budget.

BACKGROUND

The budget was adopted on 2 July 2014 with a municipal surplus of $100 000. Following the SAT decision and the need for re-adoption of the budget on 26 November 2014 the surplus was reduced to $79 248. Each year, local governments are required to adopt a budget for the activities and services it will perform in the financial year. The Local Government Act 1995 also


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requires that a review of the budget is to occur once a year for the period ending not earlier than 31 December of the financial year. The report provides the review for the 2014 / 2015 adopted budget for the period ending 31 January 2015 and considers only known issues that may affect the end of financial year result.

COMMENT

Nature and Type (Organisational) Profit / Loss on sale of assets: As is being reported in the monthly financial report the budgeted profit on sale of Pakenham Street was $400 000 but an actual loss of $133 600 resulted due to reduced sale proceeds and a $200 000 increase in the fair valuation of the property at 30 June 2014 which was not received until after the budget was adopted. The budget for profit / loss on sale of assets, net proceeds of sale and transfers to reserves are being amended in this review to reflect the actual result from the Pakenham Street asset sale. Transfers from reserve. In the adopted budget document, Note 6 needs to be amended to reflect the $90 000 transfer from reserve the Fremantle Town Hall Refurbishment Reserve is to come from the Town Hall Reserve and not the Heritage Places Reserve. The $342 335 transfer from the Parking Dividend Equalisation reflects the current and anticipated level of deficit in net parking revenues to 30 June 2015. This is the first time the City has made a transfer from the reserve for reduced parking and infringement income but it is a timely reminder that the purpose of the reserve was always based on evening out the actual and budgeted cash flows from parking so that other programs are not suddenly impacted by a material drop in parking revenue. Rounding. With the complex spreadsheets that support the budget process some minor rounding variations occur within nature and type and program especially when the resource components of tasks or jobs are amended. Any rounding variations are included in the revised budget with any net surplus or deficit adjustment in materials and contracts. City Management No variations recommended. Corporate Services Directors Office A $50 000 grant for local government reform was received from the Department of Local Government and Communities after the budget was adopted and this is now been reflected in the revised budget.


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Human Resources A contribution of $41 627 was received from council's insurance company (LGIS) which they call an experience dividend and is for funding safety and occupational health initiatives. These funds will be used to support initiatives in line with the funding. Finance The actual cost of rates waivers is estimated at $84 000 less than budget primarily due to the departure of the Hoyts Cinemas from Queensgate and $47 070 of this saving has been moved to commercial property vacant areas budget to help manage the holding costs of Queensgate which are increasing as tenants vacate and are not replaced. The City's final Grants Commission allocation only became known after the budget was adopted and was $1 025 324 which is $65 234 higher than budgeted. Fee revenues from an increased number of rates instalments and credit card payment surcharges are also projected above budget by $48 000 and $44 000 respectively. With credit card payment fees there is a $24 000 increase in expenditure which impairs part of the revenue increase. Commercial Property The adopted budget was based on nine months occupancy of the Queensgate properties in line with Kings Square redevelopment plans. As development is yet to be scheduled the budget can be adjusted to 12 months. We have also received rental from the new works depot at 2 Jones Street O'Connor. After adjusting for the current position on the various tenancies the budget revenue is being increased by $71 340. Refer note under Finance to vacant area costs. Commercial Parking and Integrated Patrols As previously mentioned above it is being proposed that funds of $342 335 be transferred from the Parking Dividend Equalisation Reserve to offset a drop in net profit from commercial parking and parking infringements. This includes a deficit of $390 780 from car park 42 (reduced revenue $796 750 and reduced expenditure of $405 970) due to loss of management contract, $325 000 deficit from street parking, $213 400 surplus from Queensgate due to an extra 3 months being budgeted for plus a surplus of $246 045 from other parking stations. Parking infringement revenue is estimated to be $86 000 less than originally budgeted. Apart from the loss of the management contract we have had December's two hour free parking trial at selected parking stations plus anticipated drop in revenue with the transfer of the Fremantle Hospital Emergency Department to Murdoch. Rangers Dog and Cat registrations is estimated generate an extra $35 000 in revenue and infringements issued by rangers an additional $15 000 in revenue than was originally budgeted.


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Community Development Community Services In July 2014 (Item SGS1407-8 refers), Council resolved to accept a reduction in the state government operating grant of $25 428 for the Fremantle Community Legal Centre but amended the officer recommendation so as to maintain the adopted budget staffing levels. This variation is to reflect the loss of $25 428 in revenue whilst maintaining the staffing levels as per the adopted budget. A back payment of superannuation guarantee contributions to a contractor in the podiatry service requires a budget variation of $41 475. The adopted grant revenue budget Warrawee was overstated and needs to be reduced by $77 119 to reflect the level of grants we are actually due to receive. Fremantle Leisure Centre Since its re-opening in April 2014, the FLC has not reached the revenue levels that existed prior to its closure for major redevelopment works and it is necessary to revise the revenue expectations for the remainder of the financial year. The gym and Swim School are the major area affected and in total revenue budgets are being reduced by $290 000. Additionally, the utilities budgets for the FLC also require adjustment due to the timing of commissioning of co-gen heating and requires an extra $187 950. This is apportioned as $105 074 for gas and $82 876 electricity. A major reason for the increase is the delay in commissioning of the co-generation plant and receipt of Western Power approval to export energy into the grid. Officers advise Western Power approval was received 4 February 2015 and the co-generation turned on 6 February 2015 and the amened budget allows for a 30% reduction on current monthly actual to reflect co-generation now being turned on. Despite the blowout in utilities costs at the FLC at an organisational level, the utilities actual expenditure has been consistently below its year to date budget up until 31 December 2014 therefore budget is being transferred from other areas so the variations can be fully contained within the utilities budget. The transfers are from street lighting ($130 865), Fremantle Arts Centre electricity ($33 960) and Oceanside Parklands water ($23 396). Planning and Development Visitor Centre Revenues are underperforming to budget by an estimated $80 000 as commissions earned on bookings are will down on budget. Technical Services Utilities Please refer to FLC comments for self balancing adjustments proposed for the utilities budgets.


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Overhead recoveries With a reduction in the value of the capital works program at this review there has been a reduction in overhead recovers of approximately $40 000. Additionally it is noted that the budget is now based on the revised capital expenditure program being fully expended by 30 June 2015 otherwise a deficit from the program will arise. Capital Program Note: Projects varied at budget review are based on information provided by relevant officers and therefore it is assumed all projects/works still active in the revised budget will be completed to the extent of their budget by 30 June 2015 unless there is comment in this report to the contrary. Below is a graph showing by month (excluding major land acquisitions) actual capital expenditure, budgeted expenditure prior to budget review and budgeted expenditure post budget review.

The actual variations to the capital expenditure and associated funding are listed below by asset class:-

Account Description

Existing Budget

Variation Revised Budget

$ $ $

Schedule 1 - Infrastructure Roads

Bike Program

RC0000379 Winterfold Rd (bike works) - extra works for City of Cockburn. 175,000 32,727 207,727

62.62100.4213.00.93.00000 RC0000379

Winterfold Rd (bike works) - contribution from City of Cockburn on boundary works. - (32,727) (32,727)

Road Program

Parking


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RC0000388

Carpark Resurfacing and Kerbing - Fremantle Oval - moved to Parks asset class. 50,000 (39,000) 11,000

RC0000389 Parking - North Fremantle -Pensioner Guard works to be re-budgeted. 45,000 (35,000) 10,000

Road Program_Other

RC0000359 Hampton Rd - 20m north of Lefroy Rd to S 173,021 19,103 192,124

RC0000360 Hampton Rd - South St to 90m north of Wray Ave 138,497 30,503 169,000

RC0000363 South St - 60m west of Hampton Rd to 60m east of Hampton Rd 99,607 30,394 130,001

RC0000396 East Street cliff remediation works - safety works required - 100,000 100,000

Streets Vision

RC0000392 Heritage Lighting Requests 70,000 (50,000) 20,000

RC0000393

South Tce - South of Parry St - Use of LED lighting created requirement for extra poles to meet lumination standards 200,000 150,000 350,000

Additional Grants

62.62100.4211.00.93.00000 RC0000316

Adelaide St - Parry St to Queen St - Main Roads extra allowances for excess costs on project. (851,999) (104,181) (956,180)

62.62100.4211.00.93.00000 RC0000316

Queen Victoria St - Main Roads extra allowances for excess costs on project. (956,180) (7,571) (963,751)

62.62100.4211.00.93.00000 Main Roads direct grant 14/15. (963,751) (75,900) (1,039,651)

Net Total Schedule 1 - Infrastructure Roads 18,348

Schedule 2 - Footpaths

Footpaths

TC0000255 Beach Street Footpath 54,014 (22,000) 32,014

TC0000242 Tuckfield St (Path to Finnerty St) Left side 19,025 (15,500) 3,525

TC0000259 Forrest st (Montreal st to cul-de-sac -south side) 36,600 (17,000) 19,600

TC0000260 Samson St (Wongan to Newbold - nth side) 19,520 (7,000) 12,520

TC0000261 Holland st (Onslow to Chudleigh) (nth&sth side) 61,000 (11,000) 50,000

TC0000267 Marine Terrace - Esplanade Hotel - 32,000 32,000

62.62100.4214.00.00.00000 TC0000267

Marine Terrace - Esplanade Hotel Capital Contributions - (15,000) (15,000)

TC0000268 Higham - Rule to Corkhill (both sides) - 40,000 40,000

TC0000269 Thompson Road - Burford/Staples - 15,500 15,500

Net Total Schedule 2 - Footpaths -

Schedule 3 - Drainage

Drainage

DC0000126 Hampton Road - savings 160,000 (29,000) 131,000

DC0000127 Market Street Drainage - New Project - 15,000 15,000

Net Total Schedule 3 - Drainage (14,000)


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Schedule 4 - Parks & Reserves

Environmental Special Projects

PC0000379 South Beach Universal Access Ramp - savings 45,000 (20,000) 25,000

Major Parks Improvements

PC0000356 Fremantle Park - irrigation works - savings from 2013/2014 - (14,000) (14,000)

Major Parks Infrastructure Projects

PC0000431 Fremantle Oval resurfacing car parking and seating - 70,000 70,000

Minor Parks Improvements

PC0000408 Playspace Program - King William (Florence Park) to be funded from cash in lieu 15,000 - 15,000

63.66200.4214.00.97.12037 PC0000408

Playspace Program - King William (Florence Park) Cash in lieu funds - (15,000) (15,000)

PC0000409 Hilton Park Bowling Club retaining wall repair - additional funds required. 65,000 15,000 80,000

PC0000374 Playspace Program - Valley Park - savings 60,000 (15,000) 45,000

PC0000414 Dick Lawrence bollards - savings 25,000 (10,000) 15,000

PC0000419 Monument Hill Anzac works - additional funds for lighting works. 100,000 23,000 123,000

Quarantine - Parks and Reserves Improvement Program

PC0000405 Playspace Program - Bruce Lee Oval (Quarantined) 200,000 (200,000) -

63.66200.4214.00.97.19004 PC0000405

Playspace Program - Bruce Lee Oval Cash in Lieu: ($200,000) (269,571) 200,000 (69,571)

PC0000404 Infield Irrigation Replacement - Bruce Lee 150,000 (150,000) -

63.66200.4214.00.97.19004 PC0000404

Infield Irrigation Replacement - Bruce Lee Cash in Lieu: ($69,571) (69,571) 69,571 -

Net Total Schedule 4 - Parks & Reserves (46,429)

Schedule 5 - Infrastructure Buildings

Fremantle Arts Centre

BC0000439 Arts Centre main board upgrade - additional costs 72,000 19,000 91,000

Fremantle Leisure Centre

BC0000780 FLC - Turnstile for Main Entrance - 11,000 11,000

BC0000781 FLC - Built in Storage for Boiler Room - 2,000 2,000

BC0000512

FLC - Pool Heating - Main capital items - to meet final Western Power requirements prior to activation for thermal heating - 28,000 28,000

68.35100.4212.00.92.11024 BC0000512

FLC - Pool Heating - Main capital items - CEEP grant funding for redevelopment. - (112,368) (112,368)

Other Infrastructure Property

BC0000769 North Fremantle Bowling Club electrical board upgrade - savings 23,400 (15,000) 8,400

BC0000450 Arthur Head infrastructure works - cost 80,399 10,000 90,399


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overruns

BC0000740 Public Golf Course realignment - will not occur prior to 30 June 2015 1,100,000 (1,100,000) -

68.26100.4211.00.92.11034 BC0000740

Grant for public golf course realignment will not be received. (900,000) 900,000 -

BC0000647 Elec Board replace - Sth Frem Oval 54,023 (30,000) 24,023

BC0000649 Elec Board replace - Weybridge Ctr 15,523 (8,000) 7,523

BC0000737 Port Beach changeroom disability access 50,000 15,100 65,100

BC0000648 Elec Board replace - Frem Bowls Club 43,023 (25,000) 18,023

BC0000650 Elec Board replace-Frem Lawn Tennis Club 32,023 (20,000) 12,023

BC0000711 Elec Board replace - Arthur Head toilets 15,523 (12,000) 3,523

BC0000712 Elec Board replace - Beach St toilets 15,523 (12,000) 3,523

Net Total Schedule 5 - Infrastructure Buildings (349,268)

Schedule 6 - Freehold Buildings

Civic Administration Centre

BC0000739

Library and Civic Centre. Additional costs as per council item SGS1408-17 from August 2014. 500,000 144,000 644,000

68.25410.3111.00.30.18090 BC0000739

Transfer from Kings Square Reserve for additional costs on Library and Civic Centre. (500,000) (144,000) (644,000)

Other Freehold Properties

BC0000713 Hazel Orme electric Board Replacement -savings 15,523 (7,000) 8,523

Net Total Schedule 6 - Freehold Buildings (7,000)

Net Total Schedules Changes for Mid Year Review (398,349)

Projects considered but not recommended for funding at budget review Projects that were considered by senior management at budget review but are not being recommended for funding this financial year included:-

Marine Terrace raised platforms. Traffic management from Esplanade master plan for 2015/2016 consideration.

Esplanade Parks Youth Plaza. Extra project for soft fall at skate park for 2015/2016 consideration.

Continuation of the 'Buds and Blooms' program at the Hilton Harvest community garden.

Beach wheelchair(s) that enable people to get in the water. Our current beach wheelchair has large inflatable tyres which is good for moving over sand. However it's not suitable for transitioning someone in and out of the water like this one costs $5,500.

The Fremantle Refugee Rights Action Network has asked that the City display some signs or banners flagging the fact that it's a signatory to the Refugee Council of Australia's "Refugee Welcome Zone".

Urban place making around the Hilton Town Centre


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Financial

The adjustments recommended within this budget review will ensure that the City maintains an operating budget that can be achieved. The estimated cash starting position has been adjusted by the finalisation of the audit and the closing position has changed as a result of this review and is now projected as breakeven or $0.00 surplus. Legal

Section 33A of the Local Government (Financial Management) Regulations 1996 require the following; “33A. Review of budget

(1) Between 1 January and 31 March in each financial year a local government is to carry out a review of its annual budget for that year.

(2A) The review of an annual budget for a financial year must — (a) consider the local government’s financial performance in the period beginning on 1 July and ending no earlier than 31 December in that financial year; and (b) consider the local government’s financial position as at the date of the review; and (c) review the outcomes for the end of that financial year that are forecast in the budget. (2) Within 30 days after a review of the annual budget of a local government is carried out it is to be submitted to the council. (3) A council is to consider a review submitted to it and is to determine* whether or not to adopt the review, any parts of the review or any recommendations made in the review. *Absolute majority required. (4) Within 30 days after a council has made a determination, a copy of the review and determination is to be provided to the Department.” Operational

This review has been comprehensive as it was necessary to undertake the review to ensure that we have a realistic prospect to successfully complete the identified projects and works within the revised budgets. In addition attention has been given to recurrent revenues as the city does not have direct control over those and we are attempting to narrow the gap between budget to 30 June 2015 and estimated actual. The net position after this review provides a municipal cash surplus of $0. Organisational

The review has been completed with recommended reductions to recurrent revenues and recommended strategies on how to deal with that whilst maintaining a nominal surplus at 30 June 2015.


Page 55

CONCLUSION

The budget review for 2014/2015 has been a comprehensive review as can be seen by the different activities and projects were budget amendments are being proposed. The net result of these amendments provide for a closing surplus of $0. This takes into account the municipal carry forward deficit balance from 2013/2014 of $112,959. The bottom line for this review has been the reduction in recurrent revenues which has primarily been addressed by funding the parking deficit to adopted budget by transferring funds from the Parking Dividend Equalisation Reserve and identifying municipal funded capital works where officers are indicating on current scheduling the funds cannot be spent prior to 30 June 2015. Those deferred project amounts will be submitted for re-budgeting in 2015/2016 with the new City of Fremantle. In addition there are proposed amendments to reflect new or amended grants, variations to recurrent expenditure and new or amended capital works.


The budget supports the delivery of strategic outcomes for the City of Fremantle.


Nil




Page 56


MOVED: Cr A Sullivan The City of Fremantle budget review for 2014/2015, for the period ending 31 January 2015, be received with the following changes being made to the adopted budget of 2 July 2014;

Account Description

Existing Budget


$ $ $

Reserves Transfers

90.90000.3121.00.00.20701 Transfer to Reserves - Packenham Street Sale 38,450,000 (333,636) 38,116,364

62.25100.4822.00.20.10005 Land Invest Sale of Asset - Packenham Street Sale (2,800,000) 333,636 (2,466,364)

Corporate Services

21.21100.4311.00.00.00000 Local Government Reform Grant - (50,000) (50,000)

21.21100.6824.00.00.18091 Local Government Reform Expenditure 100,000 50,000 150,000

24.24100.6823.00.00.00000 Human Resources Materials and Contracts 25,000 41,627 66,627

24.24100.4382.00.00.00000 Human Resources Reimbursement - (41,627) (41,627)

25.25110.4311.00.00.18034 Grant Operating - Grants Commission (960,090) (65,234) (1,025,324)

25.25100.4431.00.00.00000 Surcharge from credit card payments. (6,000) (44,000) (50,000)

25.25200.6818.00.00.00000 Bank Fees - mainly merchant fees from credit cards 30,000 24,000 54,000

25.25200.4161.00.00.00000 Instalment fees on rates. (184,000) (48,000) (232,000)

25.25200.5961.00.00.00000 Rates waivers 295,245 (84,000) 211,245

21.26100.6893.00.40.11040 Commercial Property - Vacant & CoF occupied 250,000 47,070 297,070

21.27100.3115.00.00.00000 Transfer from Parking Dividend Equalisation Reserve - (342,335) (342,335)

27.27210.4441.00.00.00000 Fee Fine Penalty Parking Infringements (2,110,000) 86,000 (2,024,000)

27.27200.4541.00.00.00000 Cats and Dogs registrations fees. (40,000) (35,000) (75,000)

27.27200.4441.00.00.00000 Rangers Infringements (5,000) (15,000) (20,000)

Commercial Property Revenue

21.26100.4461.01.30.11070 2 Jones Street O’Connor New Depot for City Works - (92,550) (92,550)

21.26100.4471.01.40.11003 38-40 Henry Street (196,000) 25,455 (170,545)

21.26100.4471.01.40.11004 41-47 High Street (Union Stores) (244,300) 40,230 (204,070)

21.26100.4471.01.40.11011 Centre Park Shops (83,480) (27,050) (110,530)

21.26100.4471.01.40.11016 Evan Davies Building (536,130) (31,440) (567,570)

21.26100.4471.01.40.11022 Fremantle Bulk Pine (51,430) (16,530) (67,960)

21.26100.4471.01.40.11031 Investment Trust Old Fire Station (134,190) (1,710) (135,900)

21.26100.4471.01.40.11040 Queensgate Complex (739,160) 48,000 (691,160)

21.26100.4471.01.92.11013 Clancy’s Tavern (106,570) (1,600) (108,170)


Page 57

21.26100.4471.01.92.11025 Fremantle Markets (672,450) (39,815) (712,265)

21.26100.4471.01.92.11033 J Shed (46,130) 9,660 (36,470)

21.26100.4471.01.92.11034 Fremantle Public Golf Course (86,310) (530) (86,840)

21.26100.4471.01.92.11041 Round House Cottages (57,730) 3,680 (54,050)

21.26100.4471.01.92.11044 Shipwrights Building (20,000) 5,070 (14,930)

21.26100.4471.01.92.11059 Esplanade Park Kiosk (16,680) (220) (16,900)

21.26100.4471.01.92.11064 Beach St Office Shops (19,020) (300) (19,320)

21.26100.4471.01.92.12003 Arthur Head (9,180) 2,380 (6,800)

21.26100.4471.01.92.12013 Daly Street (30,000) 10,000 (20,000)

21.26100.4471.01.92.12055 Princess May Park - (4,070) (4,070)

Net Total - Commercial Property Revenue (71,340)

Commercial Parking Revenue

27.27100.4561.01.91.10002 Revenue Carpark 2 (220,000) (20,000) (240,000)

27.27100.4561.01.91.10003 Revenue Carpark 3 (130,000) 20,000 (110,000)

27.27100.4561.01.91.10004 Revenue Carpark 4 (92,000) 12,000 (80,000)

27.27100.4561.01.91.10007 Revenue Carpark 11 (686,000) (99,000) (785,000)

27.27100.4561.00.89.10008 Revenue Carpark 12 (154,000) (20,000) (174,000)

27.27100.4561.01.10.10009 Revenue Carpark 13 (395,780) (94,220) (490,000)

27.27100.4561.01.91.10016 Revenue Carpark 21 (170,000) 10,000 (160,000)

27.27100.4561.01.91.10019 Revenue Carpark 24 (91,000) 6,000 (85,000)

27.27100.4561.00.89.10023 Revenue Carpark 31 (1,268,500) 58,500 (1,210,000)

27.27100.4561.01.91.10024 Revenue Carpark 41 - (93,000) (93,000)

27.27100.4561.00.89.10025 Revenue Carpark 42 (1,110,000) 796,750 (313,250)

27.27100.4561.01.40.10031 Revenue Carpark Queensgate (1,401,600) (213,400) (1,615,000)

27.27100.4561.01.93.00000 Revenue Carpark Street Parking (4,085,000) 325,000 (3,760,000)

Net Total - Commercial Parking Revenue 688,630

Commercial Parking Lease Payments

62.27100.6871.00.89.10023 Lease Payments Carpark 31 570,850 (26,325) 544,525

62.27000.6871.00.89.10025 Lease Payments Carpark 42 621,600 (405,970) 215,630

Net Total - Commercial Parking Lease Payments (432,295)

Net Total - Corporate Services (291,504)

Community Development Unit

32.32500.4311.00.00.18003 Operating Grant FCLC (115,651) 25,428 (90,223)

32.32110.7143.00.00.18044 Podiatry Super for contractor 3,250 41,475 44,725

32.32600.4311.00.00.18009 Warrawee Operating Grant (583,331) 77,119 (506,212)

35.35100.4461.01.92.11024 FLC Revenue Fee Hire Rent (20,000) 20,000 -

35.35100.4471.00.92.11024 FLC Lease Building Areas - (20,000) (20,000)

35.35100.4521.00.00.00000 FLC Merchandise Sold (280,000) 50,000 (230,000)

35.35100.4561.01.91.10032 FLC Fee Parking Car Park (100,000) (10,000) (110,000)

35.35200.4411.00.00.00000 FLC Health Club Admissions & (780,000) 200,000 (580,000)


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Memberships

35.35300.4411.00.00.11024 FLC Swim School Admissions & Memberships (775,000) 80,000 (695,000)

35.35500.4411.00.00.11024 FLC Aquatics Admissions & Memberships (750,000) (30,000) (780,000)

Net Total - Community Development Unit 434,022

Planning and Development

13.13150.4431.00.00.00000 Fees Visitor Centre (180,000) 80,000 (100,000)

Net Total - Planning and Development 80,000

Technical Services

Utilities

68.34100.5821.01.92.11021 BO-0002499

Electricity Consumption Fremantle Arts Centre 83,523 (33,688) 49,835

68.34100.5826.01.92.11021 BO-0002499

Electricity Supply Charge Fremantle Arts Centre 540 2 542

68.34100.5823.01.92.11021 PO-0000301

Water Consumption Fremantle Arts Centre 14,534 (1) 14,533

68.35100.5821.01.92.11024 BO-0002503

Electricity Consumption Fremantle Leisure Centre 19,996 82,882 102,878

68.35100.5826.01.92.11024 BO-0002503

Electricity Supply Charge Fremantle Leisure Centre 432 1 433

68.35100.5822.01.92.11024 BO-0002525

Gas Consumption Fremantle Leisure Centre 39,997 52,517 92,514

68.35100.5827.01.92.11024 BO-0002525

Gas Supply Charge Fremantle Leisure Centre 8,798 52,557 61,355

62.62100.5821.01.93.00000 IO-0000073 Electricity Consumption Street Lighting 784,170 (130,867) 653,303

62.62100.5826.01.93.00000IO-0000073 Electricity Supply Charge Street Lighting 332 (3) 329

63.66200.5821.01.97.12080 PO-0000301 Electricity Consumption Oceanside Park 228 3 231

63.66200.5826.01.97.12080 PO-0000301 Electricity Supply Charge Oceanside Park 72 1 73

63.66200.5823.01.97.12080 PO-0000301 Water Consumption Oceanside Park 60,005 (23,404) 36,601

Net Total - Utilities -

Net Total - Technical Services -

Net Total - Operating Changes for Mid Year Review 222,518

Account Description

Existing Budget


$ $ $


Page 59

Schedule 1 - Infrastructure Roads

Bike Program

RC0000379 Winterfold Rd (bike works) - extra works for City of Cockburn. 175,000 32,727 207,727

62.62100.4213.00.93.00000 RC0000379

Winterfold Rd (bike works) - contribution from City of Cockburn on boundary works. - (32,727) (32,727)

Road Program

Parking

RC0000388

Carpark Resurfacing and Kerbing - Fremantle Oval - moved to Parks asset class. 50,000 (39,000) 11,000

RC0000389 Parking - North Fremantle -Pensioner Guard works to be re-budgeted. 45,000 (35,000) 10,000

Road Program_Other

RC0000359 Hampton Rd - 20m north of Lefroy Rd to S 173,021 19,103 192,124

RC0000360 Hampton Rd - South St to 90m north of Wray Ave 138,497 30,503 169,000

RC0000363 South St - 60m west of Hampton Rd to 60m east of Hampton Rd 99,607 30,394 130,001

RC0000396 East Street cliff remediation works - safety works required - 100,000 100,000

Streets Vision

RC0000392 Heritage Lighting Requests 70,000 (50,000) 20,000

RC0000393

South Tce - South of Parry St - Use of LED lighting created requirement for extra poles to meet lumination standards 200,000 150,000 350,000

Additional Grants

62.62100.4211.00.93.00000 RC0000316

Adelaide St - Parry St to Queen St - Main Roads extra allowances for excess costs on project. (851,999) (104,181) (956,180)

62.62100.4211.00.93.00000 RC0000316

Queen Victoria St - Main Roads extra allowances for excess costs on project. (956,180) (7,571) (963,751)

62.62100.4211.00.93.00000 Main Roads direct grant 14/15. (963,751) (75,900) (1,039,651)

Net Total Schedule 1 - Infrastructure Roads 18,348

Schedule 2 - Footpaths

Footpaths

TC0000255 Beach Street Footpath 54,014 (22,000) 32,014

TC0000242 Tuckfield St (Path to Finnerty St) Left side 19,025 (15,500) 3,525

TC0000259 Forrest st (Montreal st to cul-de-sac -south side) 36,600 (17,000) 19,600

TC0000260 Samson St (Wongan to Newbold - nth side) 19,520 (7,000) 12,520

TC0000261 Holland st (Onslow to Chudleigh) (nth&sth side) 61,000 (11,000) 50,000

TC0000267 Marine Terrace - Esplanade Hotel - 32,000 32,000

62.62100.4214.00.00.00000 TC0000267

Marine Terrace - Esplanade Hotel Capital Contributions - (15,000) (15,000)

TC0000268 Higham - Rule to Corkhill (both sides) - 40,000 40,000


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TC0000269 Thompson Road - Burford/Staples - 15,500 15,500

Net Total Schedule 2 - Footpaths -

Schedule 3 - Drainage

Drainage

DC0000126 Hampton Road - savings 160,000 (29,000) 131,000

DC0000127 Market Street Drainage - New Project - 15,000 15,000

Net Total Schedule 3 - Drainage (14,000)

Schedule 4 - Parks & Reserves

Environmental Special Projects

PC0000379 South Beach Universal Access Ramp - savings 45,000 (20,000) 25,000

Major Parks Improvements

PC0000356 Fremantle Park - irrigation works - savings from 2013/2014 - (14,000) (14,000)

Major Parks Infrastructure Projects

PC0000431 Fremantle Oval resurfacing car parking and seating - 70,000 70,000

Minor Parks Improvements

PC0000408

Playspace Program - King William (Florence Park) to be funded from cash in lieu 15,000 - 15,000

63.66200.4214.00.97.12037 PC0000408

Playspace Program - King William (Florence Park) Cash in lieu funds - (15,000) (15,000)

PC0000409 Hilton Park Bowling Club retaining wall repair - additional funds required. 65,000 15,000 80,000

PC0000374 Playspace Program - Valley Park - savings 60,000 (15,000) 45,000

PC0000414 Dick Lawrence bollards - savings 25,000 (10,000) 15,000

PC0000419 Monument Hill Anzac works - additional funds for lighting works. 100,000 23,000 123,000

Quarantine - Parks and Reserves Improvement Program

PC0000405 Playspace Program - Bruce Lee Oval (Quarantined) 200,000 (200,000) -

63.66200.4214.00.97.19004 PC0000405

Playspace Program - Bruce Lee Oval Cash in Lieu: ($200,000) (269,571) 200,000 (69,571)

PC0000404 Infield Irrigation Replacement - Bruce Lee 150,000 (150,000) -

63.66200.4214.00.97.19004 PC0000404

Infield Irrigation Replacement - Bruce Lee Cash in Lieu: ($69,571) (69,571) 69,571 -

Net Total Schedule 4 - Parks & Reserves (46,429)

Schedule 5 - Infrastructure Buildings

Fremantle Arts Centre

BC0000439 Arts Centre main board upgrade - additional costs 72,000 19,000 91,000

Fremantle Leisure Centre

BC0000780 FLC - Turnstile for Main Entrance - 11,000 11,000


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BC0000781 FLC - Built in Storage for Boiler Room - 2,000 2,000

BC0000512

FLC - Pool Heating - Main capital items - to meet final Western Power requirements prior to activation for thermal heating - 28,000 28,000

68.35100.4212.00.92.11024 BC0000512

FLC - Pool Heating - Main capital items - CEEP grant funding for redevelopment. - (112,368) (112,368)

Other Infrastructure Property

BC0000769 North Fremantle Bowling Club electrical board upgrade - savings 23,400 (15,000) 8,400

BC0000450 Arthur Head infrastructure works - cost overruns 80,399 10,000 90,399

BC0000740 Public Golf Course realignment - will not occur prior to 30 June 2015 1,100,000 (1,100,000) -

68.26100.4211.00.92.11034 BC0000740

Grant for public golf course realignment will not be received. (900,000) 900,000 -

BC0000647 Elec Board replace - Sth Frem Oval 54,023 (30,000) 24,023

BC0000649 Elec Board replace - Weybridge Ctr 15,523 (8,000) 7,523

BC0000737 Port Beach changeroom disability access 50,000 15,100 65,100

BC0000648 Elec Board replace - Frem Bowls Club 43,023 (25,000) 18,023

BC0000650 Elec Board replace-Frem Lawn Tennis Club 32,023 (20,000) 12,023

BC0000711 Elec Board replace - Arthur Head toilets 15,523 (12,000) 3,523

BC0000712 Elec Board replace - Beach St toilets 15,523 (12,000) 3,523

Net Total Schedule 5 - Infrastructure Buildings (349,268)

Schedule 6 - Freehold Buildings

Civic Administration Centre

BC0000739

Library and Civic Centre. Additional costs as per council item SGS1408-17 from August 2014. 500,000 144,000 644,000

68.25410.3111.00.30.18090 BC0000739

Transfer from Kings Square Reserve for additional costs on Library and Civic Centre. (500,000) (144,000) (644,000)

Other Freehold Properties

BC0000713 Hazel Orme electric Board Replacement -savings 15,523 (7,000) 8,523

Net Total Schedule 6 - Freehold Buildings (7,000)

Net Total Schedules Changes for Mid Year Review (398,349)


Page 62

CARRIED: 7/0

For Against



Page 63

Cr A Sullivan MOVED en bloc recommendations numbered SGS1502-9, SGS1502-10 and SGS1502-11. CARRIED: 7/0

For Against

Mayor, Brad Pettitt Cr Robert Fittock Cr Andrew Sullivan Cr Rachel Pemberton Cr David Hume Cr Dave Coggin Cr Sam Wainwright

The following item number SGS1502-9 was moved and carried en bloc.

SGS1502-9 FINES ENFORCEMENT REGISTRY (FER) WRITE-OFF - 2ND QUARTER OF THE 2014-2015 FINANCIAL YEAR

ECM Reference: 122/003 Disclosure of Interest: Nil Meeting Date: 18 February 2015 Previous Item: Nil Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Matthew Piggott, Manager Field Services Decision Making Authority: Council Agenda Attachments: FER List of write-offs, schedule number 50960

(Confidential attachment - under separate cover) FER List of write-offs, schedule number 50520 (Confidential attachment - under separate cover)

EXECUTIVE SUMMARY

From 1 October to 31 December of the financial year 2014-2015, the Fines Enforcement Registry (FER) is advising its intention to write-off $11 941.10 of unpaid fines and collection costs, dating back to some matters registered in 2004. Of this amount, approximately $3 637.50 is associated with the cost of registering the case for enforcement, the remainder is the original modified penalty of the infringement notice, plus statutory fees chargeable by the City of Fremantle during the statutory enforcement process. The amount for the write-offs represents approximately 5% of the amount received by the City of Fremantle from the FER for recoverable fines during the same process. This item is to enable the formal resolution of the write-off.


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BACKGROUND

The City of Fremantle uses the FER to assist in the recovery of unpaid parking fines. This registry is the sole provider of a service which is able to cancel driver and vehicle licences and undertake recovery action. This service comes at a cost which can be greater that the fine itself and these costs are recoverable once the alleged offender is located. The City receives recovery payments from FER to the value of $245 482.00 from 1 October to 31 December of the financial year 2014 - 2015. The amount sought to be written-off represents approximately 5% of that amount, over the same period. Each year, FER identifies those registrations for which it has exhausted all avenues of enforcement, removing those records from the Registry. Consequently, writing-off by FER ends further recovery on those records. The City uses data provided by the Department of Transport to identify the registered owner of vehicles when enforcing unpaid penalties. This data is used to provide written notification to owners, using regulatory final demand notices and subsequent registration with FER to assist in the recovery of unpaid parking fines. There continues to be moves by the Western Australia Local Government Association to seek additional information from the Department of Transport so as to minimise the number of records found to be unenforceable due to insufficient details.

COMMENT

FER has advised the City that $11 941.10 is to be written-off as unrecoverable. Of this amount, approximately $3 637.50 is associated with the cost of registering the case for enforcement, the remainder is the original modified penalty of the infringement notice, plus statutory fees chargeable by the City during the statutory enforcement process. These registrations date back to 2004. The City received recovery payments from FER to the value of $245 482.00 from 1 October to 31 December of the financial year 2014-2015. The amount being considered for write-off in this item represents approximately 5% of the collections over this period. FER has exhausted all avenues of the recovery for these registered infringement notices for which writing-off is advised. The list of affected records is shown under separate confidential cover in order to regard privacy considerations.


Financial

The amounts stated in the advice from FER are not included on Council’s balance sheet as debtors. The City records any money recovered as revenue in the year it is recovered and as a result no impact will be made upon Council’s financial statement.


Page 65

Legal

The operation of the Fines Enforcement Registry is provided for by Fines Penalties and Infringement Notice Enforcement Act 1994 Operational

Nil Organisational

Nil

CONCLUSION

It is recommended that Council supports the advice from Fines Enforcement Registry.


As the actions listed at the FER represent a write-off of debt for the City, it is necessary for Council to formally recognise the write-off.


Nil




MOVED: Cr A Sullivan That Council writes off $11 941.10 in unpaid fines and associated recovery costs with the Department of Attorney General’s Fines Enforcement Registry's schedules 50520 and 50960 as shown in confidential attachments 1 and 2. CARRIED: 7/0

For Against



Page 66

The following item number SGS1502-10 was MOVED and carried en bloc.

SGS1502-10 STRATEGIC AND CORPORATE PLAN PROGRESS REPORT - OCTOBER - DECEMBER 2014

ECM Reference: 030/017 Disclosure of Interest: Nil Meeting Date: 18 February 2015 Previous Item: SGS1411-17 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Tanya Toon-Poynton, Governance Coordinator Decision Making Authority: Council Agenda Attachments: Strategic Imperative and Corporate plan progress report

- October - December 2014 (under separate cover)

EXECUTIVE SUMMARY

The City of Fremantle Strategic Plan 2010 – 2015 was adopted by Council in 2010, and the City of Fremantle Corporate Business Plan 2014–2018 was adopted in August 2014. The corporate business plan is a four-year operational program which provides the framework for delivering the City’s services and projects. The Strategic Imperative and Corporate Plan Progress Report October to December 2014 is attached for your information and discussion as appropriate. The report includes a summary of the progress and achievements on the projects and priorities in the corporate business plan and the strategic imperative actions which remain outstanding from the City of Fremantle Strategic Plan 2010-2015.

BACKGROUND

All local governments are required to develop and deliver a strategic plan and a corporate business plan under the Local Government Act 1995. The corporate business plan contains operational responsibilities as well as projects that align with the strategic imperatives from the strategic plan, and is required to be reviewed annually. The strategic and corporate business plan progress report ensures the City remains focussed on its strategic imperatives, and manages the operations of the City. The report format shows in graph form the target and actual completion of percentages cumulatively each month and a comment from the responsible director for each project. The report has easy to read indicators for each project and summary indicators showing overall progress of the plans.


Page 67

COMMENT

Progress of the strategic imperatives is presented to Council quarterly, and progress on the corporate plan projects and actions are presented to Council twice a year for information and discussion. Projects that have been completed within the report period are highlighted below: Complete structure planning for former Kim Beazley School site, White Gum Valley with LandCorp: Council assessment of the structure plan and final approval of structure plan and related subdivision by the West Australian Planning Commission is complete. A Local Planning Policy to provide additional guidance on development design to comply with the structure plan was approved by Council for community consultation in October 2014. Consultation is now complete and Council adopted the policy December 2014. Conduct examination of scheme provisions to encourage redevelopment of North Fremantle Town Centre (Queen Victoria Street) and proceed with amendments if supported: The examination of provisions is complete. The conclusion is that there is insufficient potential to justify proceeding with scheme amendment. Implement the City of Fremantle Community engagement plan A new community engagement plan 2014-2015 was adopted in November. A final report on the plan was presented to council. Reporting will continue under the action Implement the Community Engagement action plan 2014-2015. Implement Strategic recreation needs strategy A new strategic recreation plan 2014-15 was adopted in August. A final report on the plan was presented to council. Reporting will continue under the action Implement strategic recreation plan 2014-2015. Final stage Personnel Evaluation System (PES) implementation PES rolled out to all employees who have an email address and IT access. Paper versions have been developed for all other employees. Develop and implement an induction program E induction and face to face inductions are in place. Induction processes will need to be reviewed once local government reform is finalised, when we will introduce monthly inductions conducted by human resources officers. Develop and implement corporate training program Corporate training plan developed and delivering essential modules through E learning. Internal face to face training is at a reduced level this year to ensure training funds are available for local government reform transition needs.


Page 68

Lighting for key heritage buildings The City has completed lighting on all the key heritage buildings owned by the City. Owners of other heritage buildings do not wish to have lighting on their buildings. Projects at less than 40% of their target are highlighted below: Implement ICT strategic plan and governance documentation for reform. This project is well underway but is a little behind in where we would like it to be. This may be of little consequence depending on state government direction since the poll elections held two weeks ago. Presently further planning is on hold waiting clear direction from the state government.


Financial

Nil Legal

Local governments are required to develop and maintain a strategic plan. Operational

Ongoing improvement to the internal systems is being undertaken to ensure proper alignment with the local government reform agenda and reporting of progress for strategic projects. Organisational

The whole organisation is involved in the delivery of the strategic plan. Organisational capacity and focus on achievement is recognised as a critical success factor in the plan. Reporting against progress on projects the council has identified as priorities is critical in sustaining the focus and reviewing capacity along the way.

CONCLUSION

The City of Fremantle Strategic Imperative and Corporate Plan progress report for October to December 2014 is provided for information and discussion.


As discussed within this report.


Nil


Page 69


Special Majority Required


MOVED: Cr A Sullivan Council receive the City of Fremantle Strategic Imperative and Corporate Plan Progress Report for October to December 2014 as shown in attachment 1 of the Strategic and General Services agenda attachments 18 February 2015. CARRIED: 7/0

For Against



Page 70

The following item number SGS1502-11 was MOVED and carried en bloc.

SGS1502-11 MONTHLY FINANCIAL REPORT - JANUARY 2015

ECM Reference: 087/002 Disclosure of Interest: Nil Meeting Date: SGS 18 February 2015 Previous Item: SGS1401-8 of 28 January 2015 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Alan Carmichael, Finance Manager Decision Making Authority: Council Agenda Attachments: Statement of Financial Activity by Nature to 31 January

2015 Statement of Financial Position as at 31 January 2015 Determination of Closing Funds (Net Current Assets) as at 31 January 2015 Schedule of Accounts Paid January 2015 Investment Report to 31 January 2015 Debtors Outstanding as at 31 January 2015 Payment Report (EFT & Cheque) for January 2015 (viewed electronically) Payment Report (Purchasing Cards) for December 2014 (viewed electronically)

EXECUTIVE SUMMARY

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

BACKGROUND

The 2014/15 budget was adopted on 2 July 2014 with an estimated municipal surplus brought forward from 30 June 2014 of $1 969 947 and estimated municipal surplus at 30 June 2015 of $100 000. At its meeting on 23 July 2013 (Item SGS1407-11 refers), Council adopted nature and type as the preferred reporting format with 2.5% and a threshold of $300 000 as the level for explanation of variances. Since adoption of the budget, decisions of Council have amended the adopted $100 000 closing municipal surplus to a deficit of $19,239. The variation is comprised of the following items from the 26 November 2014 council meeting:-

SGS1411-6 Buster Fun Bus replacement. $5 487

SGS1411-7 Harvey Beach River Wall $93 000 (savings to be found at budget review)

C1411-5 Re-adoption of 2014-2015 Budget. Rates reduction $20 752.


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COMMENT

In finalising the 2014/15 budget, it was estimated that we would have a closing municipal surplus at 30 June 2014 of $1 969 947 which in turn became the opening municipal surplus in the 2014/15 budget. The external auditor has now issued an unqualified audit certificate for the financial statements to 30 June 2014 with a surplus of $1 856 988. A review of the annual budget is required to be undertaken no earlier than 31 December in the financial year and it is planned to submit that review to Council in February 2015. The $112 959 deficit between the estimated and actual closing position at 30 June 2014 as reported in the previous paragraph will be addressed as part of the budget review. Organisational Comment The State Administrative Tribunal (SAT) made orders to quash the differential rates imposed by the City on undeveloped properties in the 2012-13, 2013-14 and 2014-15 financial years. At its meeting of 26 November 2014, Council reimposed new differential rates and readopted budgets for the three (3) years. The total estimated cost impact of the SAT decision over the three years is $86 247. Below is a graph for actual operating revenue by month versus their year to date budget. Rates have not been included as $38 million is brought to account in one month and distorts the picture as does profit on sale of assets which is non cash and has also been excluded.


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

Rates As already mentioned, the decision of SAT resulted in adjustments being made to some properties with refunds being made to a limited number of those properties. Fees and Charges.

Parking revenue is $694 000 under YTD budget of $7 240 000 and parking infringement revenue is $190 000 under its YTD budget of $1 350 000 after adjusting for $200 000 of legal expense incorrectly charged against the revenue account at the end of January. The total includes the impact of the free parking promotion for December plus from 1 November 2014, the loss of the Fremantle Ports parking contract for car park number 42. The full year impact of car park 42 is estimated at a net deficit of $380 000.

The Fremantle Arts Centre revenue is $302 000 over its year to date budget of $1 219 000 primarily due to South Lawn Events (concerts) of $199 000 and courses of $78 000.

Fremantle Leisure Centre revenue is down $246 000 on its year to date budget of $1 702 000. The gym is the main area affected and is $182 000 under its year to date budget of $480 000. The gym has not recovered to the position it was operating at prior to the closing of the pools for major upgrade works.

Visitor Centre revenues are down $60 000 on their year to date budget of $132 000.


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Commercial waste revenue is $127 000 under year to date budget and is largely a result of the later than anticipated issue of January 2015 invoices.

Employee Costs Employee costs are $996 000 under year to date budget with the major reason being unfilled positions as follows:-

There are unfilled positions in some business units. However, with agency labour which is expensed under Materials and Contracts, if we exclude City Works agency labour it is $270 000 over year to date budget which means that level of saving is required from the employee budget.

City Works is $150 000 under year to date budget and most of that would relate to unfilled wages positions however they do not necessarily translate to budget savings as the work is likely to be undertaken by contractors and expensed under Materials and Contracts.

Materials and Contracts On a year to date budget of $13 310 000, we are under budget by $345 000 and that primarily relates to budget phasing. The business units with the largest under expenditures are Parking and Community Safety ($263 000), Information Technology ($193 000) and Asset Management ($101 000). However with the latter, Asset Management is part of the Technical Services directorate and they are over spent by $192 000 at the end of January. Capital Program Excluding the $7 800 000 for the acquisition of 2 Jones Street O'Connor and with 58% of the financial year elapsed, capital expenditure is still lagging against year to date budget as can be seen from the following graph.


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Officers are currently working on the budget review which should be presented to Council at the same meeting as this report and that review will be recommending changes to the capital program which in turn will result in changes to the monthly budget phasing reported above. The capital works quarterly information to 31 December 2014 that is to be tabled at the same council meeting as this report indicates a far more advanced progress on the works program than the attached financial reports as the majority of the cost of a project is incurred in the construction phase where as the percentage complete in the quarterly works report is a measure of the effort expended and generally does not align with the expenditure percentage. At this point in the schedule, the majority of construction is yet to be done and therefore the majority of the cost is yet to be incurred. Proceeds from disposal of assets The net proceeds from the sale of Pakenham Street was $333 600 less than budgeted due to reduction in sale price of $90 000 as per Council resolution C1410-1 of 8 October 2014 and GST payable of $243 600. From a budget perspective, as the proceeds are transferred to the Investment Reserve, there will be a contra saving on that item. Transfers to reserves As noted in proceeds from disposal of assets, a reduction in budgeted proceeds from the sale of Pakenham Street has reduced the transfer to the Investment Reserve. Profit or loss on disposal of assets The budgeted profit on sale of Pakenham Street was $400 000 but an actual loss of $133 000 resulted due to reduced sale proceeds as noted above under proceeds from disposal of assets and a $200 000 increase in the fair valuation of the property at 30 June 2014 which was not received until after the budget was adopted. Note: The profit or loss on sale of assets figures are non cash. Cash investments With cash investments, action continues to implement the revised policy SG41 to limit investments in financial institutions which provide direct or indirect support of fossil fuel companies. During the month, funds on deposit increased by $500 000 plus with a new investment of $2 million with the Bank of Queensland it enabled the city to reach the 50% mark for investments with financial institutions listed as not supporting unlocking of carbon activities (http://www.marketforces.org.au/banks/map). This was an increase of 4% on the previous month. Looking forward, the current financial institutions with which we have investments and don't support the unlocking of carbon are all at or slightly above their counter party limits under the city's investment policy. Therefore to further increase our total percentage whilst maintaining returns and risk will become more difficult as we need to identify new and suitably rated financial institutions that are offering competitive interest rate returns. Below is a graph showing the cash investment situation at 31 January 2015 and the carbon support/non-support position by financial institution.

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


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Purchase Card Expenditure Reports Due to absence of cardholders in early January, we were were not able to finalise the detail for December 2014 purchase card transactions. As a consequence, the December 2014 is provided as an attachment to this agenda. Officers had not finalised the detail for their January 2015 purchases at the time this agenda closed so the January 2015 purchase card report will be tabled at the March 2015 meeting.


Financial

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

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

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

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

AMP, $7,524,998 , 17% ANZ, $11,121,805 ,

24%

BOQ, $7,000,000 , 15%

ING, $4,075,792 , 9%

ME Bank, $2,000,000 , 4%

NAB, $7,625,954 , 17%

Rural, $6,500,000 , 14%

Institutions that Don't Support

Unlocking of Carbon, $23,024,998 , 50%

Cash Investments at 31 January 2015


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Operational

This report is provided to Council to keep track of the operational issues affecting the implementation of projects and activities provided for under the 2014/15 adopted budget by reporting actual revenue and expenditure against budget. Organisational

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

CONCLUSION

The financial statements as attached for further review of payments made during December 2014 and cash deposits at the end of December 2014. Also attached is the year to date statement of financial activity and statement of financial position for information. The financial statements for the 12 months to 30 June 2014 have now been finalised with the issue of an unqualified audit certificate.


Nil.


Nil.




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

2. Council receives the payments authorised under delegated authority and

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

CARRIED: 7/0

For Against


CONFIDENTIAL MATTERS

Nil.

CLOSURE OF MEETING

THE PRESIDING MEMBER DECLARED THE MEETING CLOSED AT 7.14 PM.


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SUMMARY GUIDE TO CITIZEN PARTICIPATION & CONSULTATION

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

How consultative processes work at the City of Fremantle

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

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

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

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

Precinct focus is primarily local, but also city-wide

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

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

Decisions will not necessarily reflect the majority view received

7. Local Government in WA is a representative democracy. Elected Members and the CEO are charged under the Local Government Act with the responsibility to make decisions based on fact and the merits of the issue without fear or favour and are accountable for their actions and decisions under law. Elected Members are accountable to the people via periodic elections. As it is a representative democracy, decisions may not be made in favour of the majority view expressed via consultative processes. Decisions must also be made in accordance with any statute that applies or within the parameters of budgetary considerations. All consultations will clearly outline from the outset any constraints or


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limitations associated with the issue.

Decisions made for the overall good of Fremantle

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

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

City officers must be impartial 10.

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

City officers must follow policy and procedures

11.

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


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

12.

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

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

13.

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

Citizens are entitled to know how their input has been assessed

14.

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

Reasons for decisions must be transparent 15.

Decision-makers must provide the reasons for their decisions.

Decisions posted on the City’s website 16.

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


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

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

been delegated.

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

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

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

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

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

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

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

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

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

protecting public safety.

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

h) such other matters as may be prescribed.

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

MINUTES ATTACHMENTS

Strategic and General Services Committee

Wednesday, 18 February 2015, 6.00 pm

Minutes Attachments - Strategic and General Services Committee

18 February 2015

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strategic and general services committee · susan thorman elicia petite ... cr david hume cr rachel...

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