confirmed minutes ordinary council meeting 28 april … · sarah brookes the echo newspaper ....

File Code: OR.MTG 5/1

CONFIRMED MINUTES

ORDINARY COUNCIL MEETING

28 APRIL 2015

28.04.2015 COUNCIL MEETING MINUTES CONFIRMED 12.05.2015

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CONFIRMED MINUTES

ORDINARY COUNCIL MEETING 28 APRIL 2015

ATTENTION/DISCLAIMER

The purpose of this Council Meeting is to discuss and, where possible, make resolutions about items appearing on the agenda. Whilst Council has the power to resolve such items and may in fact appear to have done so at the meeting, no person should rely on or act on the basis of such decision or on any advice or information provided by an Elected Member or employee, or on the content of any discussion occurring during the course of the Meeting. Persons should be aware that regulation 10 of the Local Government (Administration) Regulations 1996 establishes procedures to revoke or change a Council decision. No person should rely on the decisions made by Council until formal written advice of the Council decision is received by that person. The Shire of Mundaring expressly disclaims liability for any loss or damage suffered by any person as a result of relying on or acting on the basis of any resolution of Council, or any advice or information provided by an Elected Member or employee, or the content of any discussion occurring during the course of the Council Meeting.

LEGEND To assist the reader, the following explains the method of referencing used in this

document:

Item Example Description Page Numbers C1 APRIL 2015 (C2,

C3, C4 etc) Sequential page numbering of Council Agenda or Minutes for April 2015

Report Numbers 10.1 (10.2, 10.3 etc)

11.1 (11.2, 11.3 etc)

Sequential numbering of reports under the heading “10.0 Reports of Committees” or “11.0 Reports of Employees”

Council Decision Reference

C7.04.15 Council Decision number 7 from Council meeting April 2015


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CONTENTS

1.0 OPENING PROCEDURES 4

1.1 ANNOUNCEMENT OF VISITORS ........................................................................ 4

1.2 RECORD OF ATTENDANCE/APOLOGIES/APPROVED LEAVE OF ABSENCE ................. 4

2.0 ANNOUNCEMENTS BY PRESIDING PERSON WITHOUT DISCUSSION 5

2.1 ANZAC SERVICES ....................................................................................... 5

3.0 RECOGNITION AND AWARDS 5

4.0 RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE 5

5.0 PUBLIC QUESTION TIME 6

6.0 APPLICATIONS FOR LEAVE OF ABSENCE 7

C9.04.15 ........................ 7

7.0 CONFIRMATION OF MINUTES OF PREVIOUS MEETINGS 8

C10.04.15 ...................... 8 7.1 PERMISSION TO SPEAK FOR MEMBERS OF PUBLIC PRESENT ................................ 8

C11.04.15 ...................... 8

8.0 PRESENTATIONS 8

9.0 DISCLOSURES OF INTERESTS 8

9.1 DISCLOSURE OF FINANCIAL INTEREST AND PROXIMITY INTERESTS ........................ 8

9.2 DISCLOSURE OF INTEREST AFFECTING IMPARTIALITY .......................................... 9

10.0 REPORTS OF COMMITTEES 9

11.0 REPORTS OF EMPLOYEES 10

11.1 LOCAL GOVERNMENT REFORM – CLOSURE ..................................................... 10 C12.04.15 .................... 15

11.2 FINANCIAL ACTIVITY STATEMENT – MARCH 2015 .............................................. 25 C13.04.15 .................... 28

12.0 ELECTED MEMBERS MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN 40

12.1 NOTICE OF MOTION FROM CR JONES - PROPOSED DARLINGTON COMMUNITY PAVILION ................................................................................................... 40

C14.04.15 .................... 51

13.0 NEW BUSINESS OF AN URGENT NATURE APPROVED BY PRESIDING PERSON OR BY DECISION OF MEETING 51

13.1 ELECTED MEMBERS ..................................................................................... 51

13.2 EMPLOYEES ............................................................................................... 51


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14.0 MATTERS BEHIND CLOSED DOORS 52

8.13PM MEETING CLOSED TO PUBLIC ....................................................................... 52 C15.04.15 .................... 52

14.1 WALGA HONOURS PROGRAM NOMINATIONS 2015 .......................................... 53 C16.04.15 .................... 56

8.25PM ............................................................................................................... 56

MEETING OPENED TO PUBLIC .................................................................................. 56 C17.04.15 .................... 56

15.0 CLOSING PROCEDURES 56

15.1 DATE, TIME AND PLACE OF THE NEXT MEETING ................................................ 56

15.2 CLOSURE OF THE MEETING ........................................................................... 56


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ORDINARY COUNCIL MEETING COUNCIL CHAMBER

1.0 OPENING PROCEDURES

The Presiding Person declared the meeting open at 6.30pm. To be read out aloud by the Presiding Person Members of Council and members of the gallery are advised that this meeting

will be audio-recorded. 1.1 Announcement of Visitors

Nil

1.2 Record of Attendance/Apologies/Approved Leave of Absence

Elected Cr H Dullard (President) (Presiding Person) West Ward Members Cr P Clark West Ward Cr T Cuccaro West Ward Cr B Perks Central Ward Cr L Gu Central Ward Cr A Pilgrim Central Ward Cr P Bertola East Ward Cr S Fox East Ward Cr J Daw East Ward Cr D Jones (Deputy President) South Ward Cr T Cook South Ward Staff Mr P O'Connor Director Corporate Services Mr S Purdy Director Infrastructure Services Ms M Griffiths Director Strategic & Community Services Mr M Luzi Director Statutory Services Mr D Martin Strategic Projects Advisor Ms C Allen Communications Officer Ms M Beley Minute Secretary Apologies Mr J Throssell Chief Executive Officer Cr D Lavell South Ward Absent Nil Leave of Nil Absence Guests Nil Members of the Public

3

Members of the Press

Sarah Brookes The Echo Newspaper


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2.0 ANNOUNCEMENTS BY PRESIDING PERSON WITHOUT DISCUSSION

2.1 ANZAC Services

The Presiding Person advised she was pleased with our ANZAC services that many were fortunate to attend. At our dawn service it was estimated 6,000 people attended. It was quite moving to see how well our new facility accommodated that beautifully. Attendance was up and I think the public were really moved at this special time in our lives.

3.0 RECOGNITION AND AWARDS Nil 4.0 RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON

NOTICE

At the Ordinary Council meeting held 24 March 2015 Mr Eric Smith of Glen Forrest asked questions which were taken on notice. A written response to the questions has been provided in a letter from the Chief Executive Officer. Below is a summary of the questions and responses. Question 1 Bilgoman swimming pool complex was recently reconstructed. What was the real cost, not the budgeted cost of the reconstruction? What loans were obtained and how much were they? Where did the loans come from? What grants were forthcoming to assist the reconstruction? What delays occurred and what were they? What was the cost to us ratepayers for this reconstruction or our portion of the ratepayers’ portion of the cost? When is Council going to consider the enclosing of the Bilgoman swimming pool? Response The total cost of the Bilgoman swimming pool complex upgrade to date is $2,701,464. There were no loans for this project as it was funded via a mixture of grant funding and reserve funds. Funding of $360,000 was received via CEEP (Community Energy Efficiency Program) for the solar hot water system and associated works, therefore the Shire ratepayers paid $2,341,464 of the total project costs. There was approximately two weeks’ delay due to rain and shipping of tiles as well as removal of asbestos piping found. The possibility of enclosing the pool was looked into several years ago. At that time the option was found to be very expensive and is now estimated to be in the vicinity of $10 million. This is not listed on our capital works program and is not being considered by Council at this time.


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5.0 PUBLIC QUESTION TIME

Procedures for asking and responding to questions are determined by the Shire President. Questions must relate to a matter affecting the local government. Note: This is not a verbatim record of questions asked and answers given. It is a summary only.

Name & Question Response

Peter Gavranich – 54 Pittersen Road, Darlington

1. Can I be provided with the total amount of ratepayers’ money expended on the removal of graffiti from private property over the last two financial years?

The Director Infrastructure Services advised most graffiti removal would be from our own Shire assets. The only graffiti removed from private property would be a small handful of fences that abut Crown land and in total that would add up to a very small amount.

2. Ratepayers have funded a University course for a Shire officer. Why is this the case, and can I have feedback on the success or failure of the venture? Is it completed or continuing? What diploma was achieved and how has the knowledge impacted on the effectiveness of the Shire officer?

The Shire President advised Mr Gavranich could not have that information, whether it be a Shire officer or Elected Member. Both Elected Members and Officers can go to and have a right to continue and take up training that will benefit their performance as an officer or Elected Member. The Director Strategic & Community Services advised professional development offered by the Shire of Mundaring to staff and Elected Members involves a range of things including attendance at training, workshops, conferences, University and TAFE courses. There’s criteria which must be assessed when staff apply for training which includes ensuring they pass the course and that the learning relates to their position and their role in Local Government.


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Eric Smith – Glen Forrest

1. Mundaring Shire has a street sweeper and questions relate to this street sweeper. What was the original cost of the machine? What is the operation cost of the machine? What are the actual hours that this machine operates on a daily basis? How many hours does this machine have in down time? Is this machine efficient in its task of street sweeping? What is the maintenance cost to the ratepayers of this machine as against the purchase and depreciation costs? The reasons for asking these questions are because it was seen on the back of a tow truck last week heading north west up Roe Highway?

These questions were taken on notice. The Director Infrastructure Services advised the reason why the street sweeper was on a tow truck was because it was damaged by another vehicle and had to be towed for repairs. It was not the fault of our driver. It was the fault of the other driver.

2. Mundaring Shire has a wages and salaries case before the Industrial Commission between the CEO and the Australian Services Union in the Federal Court. What is the current situation with respect of this case? How is the case progressing and where is it at as at this date? What has the cost been to date to the shire’s ratepayers? Is the case finalised? If not, why is it taking so long?

These questions were taken on notice.

6.0 APPLICATIONS FOR LEAVE OF ABSENCE

COUNCIL DECISION C9.04.15 MOTION Moved by: Cr Pilgrim Seconded by: Cr Clark

That Cr Pilgrim be granted leave of absence from all meetings of Council for the period 11 May to 15 May 2015 inclusive. CARRIED 11/0


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7.0 CONFIRMATION OF MINUTES OF PREVIOUS MEETINGS COUNCIL DECISION C10.04.15 RECOMMENDATION Moved by: Cr Jones Seconded by: Cr Gu

That the minutes of the Ordinary Council Meeting held Tuesday 14 April 2015 be confirmed. CARRIED 11/0

7.1 Permission to Speak for Members of Public Present

COUNCIL DECISION C11.04.15 RECOMMENDATION Moved by: Cr Pilgrim Seconded by: Cr Bertola

That: 1. members of the public in attendance in person be permitted to speak in

relation to a matter on the agenda of this meeting at the time the matter is discussed during the meeting where such person has a demonstrated interest in the matter;

2. such permission be subject to the ruling of the Presiding Person with

regards to the duration of any comment made, the number of speakers wishing to speak on a particular matter and demonstrated interest.

CARRIED 11/0

8.0 PRESENTATIONS

Nil 9.0 DISCLOSURES OF INTERESTS 9.1 Disclosure of Financial Interest and Proximity Interests

Members must disclose the nature of their interest in matters to be discussed at the meeting (Part 5 Division 6 of the Local Government Act 1995). Employees must disclose the nature of their interest in reports or advice when giving the report or advice to the meeting (Sections 5.70 and 5.71 of the Local Government Act 1995). Nil


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9.2 Disclosure of Interest Affecting Impartiality Members and staff must disclose their interest in matters to be discussed at the meeting in respect of which the member or employee has given or will give advice (Shire of Mundaring Code of Conduct, Local Government (Admin) Reg. 34C).

Cr Cook disclosed an interest affecting impartiality in item 12.1 [Notice of Motion from Cr Jones – Proposed Darlington Community Pavilion] as she is a Councillor on the Darlington Community Recreational Management Committee. Cr Cuccaro disclosed an interest affecting impartiality in Item 14.1 [WALGA Honours Program Nominations 2015] as he is eligible for nomination for the Long and Loyal Service Award.

10.0 REPORTS OF COMMITTEES

Nil


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11.0 REPORTS OF EMPLOYEES 11.1 Local Government Reform – Closure

File Code: CM.SRF 1.03 Location / Address N/A Applicant N/A Author Damien Martin, Strategic Projects Advisor Senior Employee Megan Griffiths, Director Strategic and Community

Services Disclosure of Any Interest Nil

SUMMARY: This report formally finalises the Shire of Mundaring’s engagement with the State Government’s Local Government Reform Agenda, which commenced in 2009. It: • formally closes Shire of Mundaring’s involvement with the State Government’s

reform agenda; • completes the public record of the reform process as it applied to Shire of

Mundaring; and • recommends that Council express its appreciation to employees. It is not intended that this report should imply that Council will not or should not pursue reform or improvements in structure, service delivery or governance in the future. Where overall benefits can be identified, reforms or improvements could include: • boundary amendments with neighbouring local governments to make more

logical, efficient and serviceable local governments; • process and service delivery improvements within Shire of Mundaring; • joint service provision with other local governments or organisations; and/or • transfer of functions, facilities or services currently provided by Shire of

Mundaring to other organisations. BACKGROUND: In February 2009 the then Minister for Local Government, Hon John Castrilli MLA, announced a package of wide-ranging local government reform strategies aimed at achieving greater capacity for local governments to plan, manage and deliver services aimed at focussing on environmental, social and economic sustainability. This announcement was the catalyst for a series of reviews, announcements, decisions and enquiries that resulted in the current Minister for Local Government (Hon Tony Simpson MLA)’s decision to abolish Shire of Mundaring and correspondingly expand the boundaries of City of Swan, with effect from 1 July 2015. This decision was formalised with the Local Government (Mundaring and


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Swan – Abolition and Change of Boundaries) Order 2014, gazetted on 24 December 2014. That decision was subsequently reversed and the reform process was formally terminated for Shire of Mundaring when the Local Government (Metropolitan Reform Orders) Revocation Order 2015 was gazetted on 13 March 2015. At ATTACHMENT 1 is a detailed chronology of: • key dates; • State Government announcements; • Council decisions and considerations; • reports and submissions; • consultation; and • actions and involvement of the Local Government Advisory Board and other

relevant parties. Preparation for the anticipated merger between Shire of Mundaring and City of Swan began in earnest in August 2013, with Council endorsement (C20.08.13) to develop a proposal to the Local Government Advisory Board to amalgamate Shire of Mundaring and City of Swan, and appointment of Elected Members and the Chief Executive Officer to a Local Implementation Committee. A Combined Executive Committee (comprising the Mundaring and Swan Executive Teams) commenced oversight of the planning and transition to a new entity in December 2013. A Transition Project Team was established in February 2014 and a Project Management Plan was adopted on 23 June 2014. A formal announcement by the State Government of the proposed merger was not made until 22 October 2014. The Reform Transition Project consisted of a joint systematic review of all services delivered by Shire of Mundaring and City of Swan. This review was undertaken through a “RAID” methodology in which processes were subjected to systematic Review, Analysis, Improvement and Documentation. Existing processes at Mundaring and Swan were reviewed and analysed comparatively. Process improvements were suggested where appropriate, and the recommendations to the Combined Executive were documented. Actions to implement approved processes were allocated to responsible officers and requisite resources were identified. A Regional Service Design Team was established and trained to facilitate the review. Nineteen joint Work Groups and Service Teams were established to review and compare processes between Mundaring and Swan, facilitated by the Regional Service Design Team. Process by process, recommendations were made to the Combined Executive, and where appropriate to the Local Implementation Committee, to adopt the most appropriate method of delivering services in the proposed new expanded organisation. The machinery that was mobilised to deliver the anticipated merger through the • Local Implementation Committee • Combined Executive • Transition Project Team • Regional Service Design Team


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• Nineteen Work Groups and Service Teams involved five Elected Members and more than 60 Shire employees. Regional Service Design reviews began in June 2014. The Project Management Plan envisioned the RAID process continuing well beyond the proposed merger date of 1 July 2015. By 10 February 2015 when the Council decision (C8.02.15) was taken to formally withdraw from the reform process: • the Regional Service Design process was approximately 50% complete; • the Combined Executive had met approximately every three weeks from

February 2014; • the Local Implementation Committee had met fifteen times from December

2013, consuming approximately 170 hours of Elected Member time; • more than 140 Regional Service Design reports had been prepared; • more than 150 Regional Service Design meetings had been held amongst the

19 Work Groups and Service Teams; • only one of the 19 Work Groups and Service Teams had not yet commenced its

review (the Construction and Maintenance Service Team was due to commence on 2 March 2015); and

• an estimated 10,000 hours of Shire of Mundaring employee time had been directly applied to the process.

In addition to the employee hours allocated to Local Government reform planning and implementation, Shire of Mundaring direct expenditure on the project was:

2013/2014 - $105,773 2014/2015 - $214,895

In 2013/2014 Shire of Mundaring received a $200,000 grant from the Department of Local Government and Communities to assist with reform implementation. The net cash cost of the reform is therefore $105,773 + $214,895 - $200,000 = $120,668. The dollar cost of the 10,000 hours of employee time (including overheads) is estimated at $700,000. The total cost in cash and time applied to reform, and therefore lost to providing services and infrastructure to the community is: $120,668 (cash) + $700,000 (estimated cost of time) ~ $820,000 (estimated). STATUTORY / LEGAL IMPLICATIONS: Nil POLICY IMPLICATIONS: Nil FINANCIAL IMPLICATIONS: Nil


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STRATEGIC IMPLICATIONS: Whilst there are no specific strategic implications arising from consideration of this report, the State Government’s failed attempt to introduce reform to the local government sector identified a need for the Shire to carefully consider how it is perceived by government and the community. Council commenced consideration of these matters on 10 March 2015 (SC2.03.15). SUSTAINABILITY IMPLICATIONS: Nil RISK IMPLICATIONS: Nil EXTERNAL CONSULTATION: Nil COMMENT: The proposal to abolish Shire of Mundaring and expand City of Swan would have caused significant changes for residents, Elected Members and employees over a period of years. All offices of Councillor for Shire of Mundaring were to have ceased on 30 June 2015. The October 2015 Council elections for the expanded City of Swan were to elect seven Councillors to complete a Council of 15. At the time the reform process ceased, there were to be no electoral wards in the expanded City of Swan. These circumstances may have limited the likelihood of existing Mundaring Elected Members, or other Shire of Mundaring residents, being elected to the expanded City of Swan Council due to the weight of numbers in the existing City of Swan. The Local Government Act 1995 contains provisions that would have guaranteed continuing employment for most Mundaring employees in the new City of Swan for two years from 1 July 2015. The role, status, location and remuneration arrangements of former Mundaring employees were yet to be agreed when the reform process ceased. The uncertainty surrounding future employment arrangements and location is known to be the direct cause of several employees leaving Shire of Mundaring and taking up opportunities elsewhere. Despite these difficult and uncertain circumstances, reform preparations were conducted with professionalism and commitment. Employees were expected to undertake reform planning in addition to their existing responsibilities. Some key employees were heavily involved in reform activities, and this necessitated other employees taking on extra workload and responsibility to maintain services. Staff attempted to maintain normal service levels wherever possible, but the resources applied to planning for the proposed merger have been lost to our core business of providing services and infrastructure to the community.


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In many cases reform planning placed heavy burdens on employees, both those directly involved in reform as well as other staff who had to take on additional workload or responsibility. For that reason, it is recommended that Council expresses its appreciation to all employees for their commitment and professionalism. The Regional Service Design process was used to identify the most appropriate methods of delivering services in the proposed expanded City of Swan from 1 July 2015. Its starting point was a critical comparative review of the way that Shire of Mundaring does its business. In many areas Shire of Mundaring systems, processes and services compared favourably with those of City of Swan. Our fleet management systems, environmental management, volunteer support, and bushfire mitigation and management are just a few examples. The whole organisation was focussed on becoming a new entity. It is now investing time to “reset” the organisation to get back to what we ordinarily would do, and that process will take some time. The Regional Services Design data is being used to identify and consolidate areas of strength, and as a basis to implement positive changes from the lessons learned for further improvements to service delivery through the Corporate Business Planning process. The Western Australian Local Government Association is co-ordinating a cross-sector submission to the State Government for reimbursement of appropriate costs permitted under the Department’s funding guidelines, which is for costs directly related to reform only. The Shire’s submission is for reimbursement of costs of $64,553. VOTING REQUIREMENT: Simple Majority

RECOMMENDATION

That Council: 1. Notes this report as the final step in the State Government’s Local Government

reform process that commenced in 2009.

2. Expresses its appreciation for the commitment and professionalism of Shire of Mundaring employees in their efforts in planning for the proposed merger with City of Swan and simultaneously maintaining services to the community.


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Preamble to Council Decision It was agreed to include a third paragraph expressing Council’s appreciation to Elected Members who contributed time and expertise to the proposed merger.

COUNCIL DECISION C12.04.15 MOTION Moved by: Cr Pilgrim Seconded by: Cr Bertola

That Council: 1. Notes this report as the final step in the State Government’s Local Government

reform process that commenced in 2009.

2. Expresses its appreciation for the commitment and professionalism of Shire of Mundaring employees in their efforts in planning for the proposed merger with City of Swan and simultaneously maintaining services to the community.

3. Expresses its appreciation to Elected Members who contributed time and

expertise to the proposed merger.

CARRIED 11/0


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Attachment 1

Report 11.1

8 Pages


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LOCAL GOVERNMENT REFORM – A SHORT HISTORY – SHIRE OF MUNDARING DATE MILESTONE February 2009 Minister Castrilli invites local governments to consider reform options, and established Local Government

Reform Steering Committee to oversee strategic direction for reform. Committee sets up four working groups to identify opportunities for improvement, and establishes capability checklist to assist local government to assess their capacity in key areas of strategic planning and service delivery

March, May and August 2009

Special Council Forums/briefings held to discuss structural reform

April 2009 Community briefing on structural reform. 36 participants July 2009 Community briefing on structural reform. 9 participants June – July 2009

Community feedback survey on structural reform. 32 responses

31 August 2009 Council resolves (SC1.08.09) to advise the Minister that “it does not support the need to amalgamate with any other local government”. Council resolves (SC2.08.09) to advise the Minister that “it agrees to the further development of detailed proposals for boundary changes as identified in the Shire of Mundaring Local Government Reform Submission, subject to the agreement of affected neighbouring local governments.” Council resolves (SC5.08.09) to endorse a submission to the Minister for Local Government on Local Government Reform. The submission addressed the viability and capacity of the Shire of Mundaring to discharge its responsibilities to the community, the process undertaken in developing the submission, consultation, and assessment of a number of reform proposals.

May 2010 Steering Committee reports to Minister June 2010 Local Government Reform Implementation Committee established to facilitate reform process September 2010 Minister releases Steering Committee Report June 2011 Minister Castrilli announces appointment of Metropolitan Local Government Review (MLGR) Panel to

recommend appropriate boundaries and governance models for Perth local governments. One of the key Terms of Reference of the panel was to “identify new local government boundaries and a resultant reduction in the overall number of local governments to better meet the needs of the community

October 2011 MLGR Panel releases “Issues Paper” containing 24 Key Questions relating to its Terms of Reference

14 November 2011

Council Forum considers MLGR at Council Forum. The Shire President encourages community members and groups to make their own submissions to MLGR


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7 December 2011

Annual Electors Meeting. Council encourages residents to make a submission to MLGR

13 December 2011

Shire of Mundaring (C16.12.11) adopts submission to MLGR. Salient points of submission: • Shire of Mundaring is supportive of reform where it is proven to be in the best interests of its community • Little evidence has been presented that supports wholesale changes to local government in the broader Mundaring area • Perth Hills has special features and faces different issues to more urbanised local governments in Perth, and these issues must be considered in determining any new governance structure • Shire of Mundaring has particular expertise in dealing with the unique character of our community • Whatever shape reform takes, Shire of Mundaring will advocate on behalf of the community to ensure local representation for the maintenance of services • A “North Eastern Hills” local government model was proposed as a possible response to ensuring a financially sustainable local government.

23 December 2011

Public submissions and responses to Issues Paper close

27 April 2012 MLGR releases Draft Findings, seeking public comment. Salient points: • Status quo cannot and should not remain • There is a need for significant change to local government structures, boundaries and governance • Most appropriate options are a) ten to twelve councils; or b) five councils; or c) one single metropolitan

council • Role of elected members should be re-shaped to enhance their capacity for strategic leadership and

reduce their involvement in operational matters 30 April 2012 Council Forum discusses Draft Findings 14 May 2012 Council Forum discusses Draft Findings 15 May 2012 Community Forum held to assist in the development of the Shire’s response to Draft Findings. This forum was

widely advertised through newsletters posted to almost 14,000 properties in the Shire. It was also advertised in newspapers, the Shire website, and by email to more than 1,000 households, businesses and community groups. 65 participants


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22 May 2012 Council endorses (C20.05.12) submission to MLGR Draft Findings. Salient points:

• Shire of Mundaring is supportive of reform where it is proven to be in the best interests of its community

• Little evidence was presented that gives the Shire (and the community) confidence that the models proposed will “build the strength, capacity, effectiveness and authority of local government” as intended (Draft Findings, p2)

• Whilst it is evident that the status quo cannot and should not remain for some local governments, it does not follow that fundamental change is required across the whole of Perth, or that fundamental change will deliver improved outcomes across the whole of Perth

• The Draft Findings made mention of the special challenges of local government in the Hills and the need for equitable distribution of resources. They do not make a convincing case that the models presented will do anything to address either of these issues

25 May 2012 Public comments on Draft Findings close 12 July 2012 MLGR reports to the Minister October 2012 Government releases MLGR Report for public comment. Report contains 30 recommendations and two

options for a new structure of local governments in Perth. It finds that 30 local governments is too many for Perth Option A is twelve new local governments achieved by amalgamating existing local governments. (In this model, Swan, Mundaring and Kalamunda would have been amalgamated) Option B (MLGR preferred) is twelve new local governments achieved by amalgamating and splitting existing local governments. (In this model, most of Swan would be amalgamated with Mundaring and Kalamunda)

21 January 2013 Council (C21.01.13) receives report on comparison of Shire of Mundaring position, MLGR Draft Findings, MLGR Final Recommendations, and WALGA position on reform

3 April 2013 Special Council Meeting to consider response to MLGR Final Report. Council resolves (SC2.04.13) to: • Endorse a Shire of Mundaring submission to the MLGR Final Report • Reaffirm its support of reform where it is in proven to be in the best interests of the community • Note that no evidence has yet been made available to demonstrate that reform through amalgamation will

result in better outcomes for the community • Reiterate its position that Perth Hills has special features and faces different issues to more urbanised local

governments in Perth, and these issues must be considered in determining any new governance structure • Continue to advocate on behalf of the community to ensure local representation, whatever shape reform


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takes • Reaffirm its proposal for a “North Eastern Hills” local government model as an alternative to the status quo,

to ensure the continuity of a financially sustainable local government 5 April 2013 Public comment on MLGR Report closes 30 July 2013 Government announces plans to reduce the number of local governments in Perth from 30 to 14, including

plans to merge Mundaring and Swan. Local governments invited to lodge merger proposals with Local Government Advisory Board (LGAB), consistent with State Government model, by 4 October 2013. Minister advises that if local governments do not lodge merger proposals with LGAB, Minister will lodge proposal

3 August 2013 Council advertises in Hills Gazette – disappointed with Government’s decision but faced with the reality that this will happen. Committed to achieve the best outcome for our Shire

20 August 2013 Minister formally invites Shire to lodge reform proposal with LGAB consistent with government model 26 August 2013 LGAB commences receiving merger proposals 27 August 2013 Council (C20.08.13):

• Noted it has consistently supported reform where it can be demonstrated to be beneficial to our community, however in Council’s view insufficient information has been provided through the MLGR to demonstrate that the model recommended by the State Government will be beneficial to our community

• …. endorsed development of a joint proposal with the City of Swan to submit to the LGAB to amalgamate Shire of Mundaring and the City of Swan, in accordance with the State Government’s model

• resolved that should City of Swan resolve not to lodge a joint proposal, Council endorses the development by the Shire of Mundaring of an individual proposal to the LGAB to amalgamate the districts of the Shire of Mundaring and the City of Swan, in accordance with the State Government’s model

• noted the amalgamation proposal referred to in points two and three entails abolition of the Shire of Mundaring and the City of Swan and the creation of a new local government

• noted that a proposal to the LGAB … will be submitted to Council for consideration prior to 4 October 2013; and

• appointed the Shire President, the Deputy Shire President, an Elected Member nominated to deputise as required for the President or Deputy President and the Chief Executive Officer to a joint Mundaring - Swan Local Implementation Committee

11 September 2013

Community Forum held to inform interested community members of Council’s position and the State Government position


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24 September 2013

Council (C18.09.13) endorses proposal to amalgamate Shire of Mundaring and City of Swan and endorses lodgement of proposal with LGAB by 4 October 2013

1 October 2013 Shire of Mundaring lodges proposal with LGAB to amalgamate Shire of Mundaring with City of Swan 4 October 2013 City of Swan and Town of Bassendean lodge joint proposal with LGAB to amalgamate City of Swan, Shire of

Mundaring and Town of Bassendean 4 October 2013 LGAB ceases receiving merger proposals 12 November 2013

Government announces preferred model of 15 local governments of Perth

28 November 2013

LGAB advises Shire of Mundaring that it has received Minister’s proposals for reform. Minister lodged 12 proposals with LGAB, the content of which were not disclosed

21 January 2014 MLGR announces Inquiries into reform proposals. MLGR considering 21 proposals from local governments, 12 proposals from the Minister and a proposal from the electors of City of Cockburn. Public submissions invited from 29 January 2014 to 13 March 2014. MLGR considering three proposals relating to Mundaring:

• Proposal 1 – Shire of Mundaring proposal to amalgamate Shire of Mundaring with City of Swan. • Proposal 2 – Joint City of Swan / Town of Bassendean proposal to amalgamate City of Swan with Town

of Bassendean and Shire of Mundaring. • Proposal 4/2013 - Minister’s proposal to abolish Shire of Mundaring and expand the boundaries of City of

Swan 10 February 2014

Shire of Mundaring holds community forum to discuss LGAB Inquiries

12 February 2014

City of Swan resolves to advise LGAB that it supports the Minister’s proposal to abolish Shire of Mundaring and expand the boundaries of City of Swan

17 February 2014

Council Forum discusses LGAB proposals

24 February 2014

Community Forum to discuss LGAB Reform proposals. A Fact Sheet, a poster and an Information Paper that outlined the merits and risks of the proposals and provided information about the LGAB Inquiries and submissions were widely circulated

4 March 2014 Council meets with LGAB to discuss proposals. Council puts a position “Amalgamation – Yes, Boundary Change – No. Can we afford the risk?”

8 March 2014 Shire advertises in Hills Gazette encouraging people to make submissions to LGAB Inquiries


C22 APRIL 2015

11 March 2014 Council (C07.03.14): • Recognises the State Government’s legal right to introduce local government reform even though the

Shire’s preferred position is the creation of a local government based on a North Eastern Hills model; • Reiterates its support for an amalgamation of Shire of Mundaring and City of Swan and adopts a

submission to Proposal 1 before the LGAB • Opposes the Minister for Local Government’s proposal to abolish Shire of Mundaring and change the

boundaries of City of Swan and adopts an opposing submission to Proposal 4/2013 before the LGAB • Opposes the joint City of Swan/Town of Bassendean proposal to amalgamate Town of Bassendean,

Shire of Mundaring and City of Swan and adopts an opposing submission to Proposal 2 before the LGAB 12 March 2014 Shire of Mundaring lodges submissions to LGAB 13 March 2014 LGAB Inquiries Close 14 July 2014 Minister announces that LGAB recommendations will be delayed from July until late August 22 October 2014 State Government announces that on 1 July 2015 Shire of Mundaring will be abolished and City of Swan

boundaries will be expanded 28 October 2014 Council (C16.10.14) authorises the Shire President and CEO to write to the Premier and Minister for Local

Government: • expressing profound disappointment that Shire of Mundaring will be subject to a boundary adjustment to

be included with the City of Swan • Noting that Council, despite its preferred option to remain as is, voted to work towards an amalgamation,

not a boundary change with the City of Swan, and to that end Shire officers and councillors have worked constructively with the City of Swan

• Noting that in its original decision to work towards an amalgamation with the City of Swan, Council took that decision on the basis that the reform process would be fully funded by the State Government.

• Calling upon the State Government to fully fund the reform process • Requesting that the decision to abolish wards effective 1 July 2015, be reviewed and other options

explored 29 October 2014 Shire of Mundaring holds community forum to discuss state government reform announcement 27 November 2014

Annual Electors Meeting discusses reform

24 December 2014

Local Government (Mundaring and Swan – Abolition and Change of Boundaries) Order 2014 gazetted. That order abolishes Shire of Mundaring and expands the boundaries of the City of Swan from 1 July 2015.


C23 APRIL 2015

10 February 2015

Council (C8.02.15): • Notes the Premier’s recent comments regarding Local Government Reform no longer being

pursued by the Government.

• Requests the Premier to direct the Department of Local Government and Communities and the Minister for Local Government to stop boundary amendments affecting Shire of Mundaring and revoke Governor’s Orders.

• Formally withdraws from the Local Government Reform Process. • Puts on hold any further discussions regarding LG Reform with City of Swan. • Advises City of Swan of the above resolutions.

17 February 2015

Joint media statement issued by the Premier and the Minister for Local Government, stating that: Future of LG reform now rests with councils

• Local government reform on hold • City of Perth Act progressing as a priority • Claims for further expenses will not be considered

The State Government has put its local government reform agenda on hold, with Governor’s orders for boundary adjustments that are not supported by the councils involved to be revoked. Premier Colin Barnett said boundary adjustments for 15 metropolitan councils would only proceed if affected councils provided a council resolution in support of it. “The onus of achieving the many benefits of a modern, streamlined and efficient system of local government now rests with the councils themselves,” Mr Barnett said. We will work with those councils that wish to continue on the reform path, or who have proposals for alternative mergers they wish to consider. “Any financial contribution to this process will only be considered in the case of a merger.” “We will proceed with the City of Perth Act, whether Vincent is included or not,” he said. Local Government Minister Tony Simpson said the State Government started down the path of local government reform at the request of the local government sector after successive reports questioned the financial sustainability of many small councils….” The Minister will invite mayors from adjoining local


C24 APRIL 2015

governments to discuss with him the proposed mergers and signify their council’s intent. “Governor’s orders will be revoked for mergers that aren’t supported by the councils,” he said.

24 February 2015

Minister for Local Government meets with Shire President and CEO Mundaring, Mayor and CEO Swan. Minister confirms that mergers will only continue where both parties are willing to proceed. Mundaring Shire President confirms that Council has a very clear position that it does not wish to proceed. Minister confirms that the boundary change proposal therefore ceases, and that the Local Government (Mundaring and Swan – Abolition and Change of Boundaries) Order 2014 will be rescinded “in matter of weeks rather than months”.

26 February 2015

Minister for Local Government advises Shire President by letter that he “will be requesting that the Governor revoke orders for all metropolitan boundary adjustments”

10 March 2015 Governor signs authority to revoke orders issued 24 December 2014. Gazettal anticipated 13 March 2015 13 March 2015 Local Government (Metropolitan Reform Orders) Revocation Order 2015 gazetted. 28 April 2015 Council considers closure report on State Government’s Local Government Reform process


C25 APRIL 2015

11.2 Financial Activity Statement – March 2015

File Code: FI.RPA Location / Address N/A Applicant N/A Author Stan Kocian, Manager Finance and Governance Senior Employee Paul O’Connor, Director Corporate Services Disclosure of Any Interest Nil

SUMMARY: The financial statement presents the Shire’s financial performance for the period ending 31 March 2015. The end of year forecast of ($10,894,173) in net expenditure as at 31 March 2015 shows a positive change in the forecast net expenditure of $903,916 to the amount approved in the original budget adopted by Council (C20.07.14). The closing budget position as at 31 March 2015 is $12,973,931. BACKGROUND: The monthly financial report is presented in accordance with the Local Government Act 1995 and the Local Government (Financial Management) Regulations 1996. A statement of financial activity and any accompanying documents are to be presented to the Council at an ordinary meeting of the Council within two months after the end of the month to which the statement relates. The Statement of Financial Activity Report summarises the Shire’s operating activities and non-operating activities. STATUTORY / LEGAL IMPLICATIONS: Regulation 34(1) of the Local Government (Financial Management) Regulations 1996 requires a local government to prepare each month a statement of financial activity. Regulation 34(2) requires the statement of financial activity to report on the sources and applications of funds, as set out in the annual budget. POLICY IMPLICATIONS: Nil


C26 APRIL 2015

FINANCIAL IMPLICATIONS: Financial implications are in accordance with the approved reporting material variances (C17.07.14) of:

• (+) or (-) $50,000 or 10%, whichever is the greater for Revenue; and • (+) or (-) $100,000 or 10%, whichever is the greater for Expenses

for each Directorate being reported for the 2014/15 financial year. There are two types of variances:

• When actual results are better than expected results the variance is

described as favourable variance. A favourable variance is denoted by the letter F.

• When actual results are worse than expected results the variance is

described as unfavourable variance. An unfavourable variance is denoted by the letter U.

STRATEGIC IMPLICATIONS: Strategic Theme 4: Respected Civic Leadership – Strong civic leadership and governance. SUSTAINABILITY IMPLICATIONS: Expenditure has been incurred in accordance with budget parameters, which have been structured on financial viability and sustainably principles.

RISK IMPLICATIONS: In accordance with section 6.8 of the Local Government Act 1995, a local government is not to incur expenditure from its municipal fund for an additional purpose except where the expenditure is authorised by an absolute majority of Council. EXTERNAL CONSULTATION: Nil.


C27 APRIL 2015

COMMENT: For the period ended 31 March 2015 the Shire’s net revenue was $1,952,837 compared to the year to date budget of ($651,494) in net expenditure. A number of reports to this item are as follows (Refer ATTACHMENT 2):

• Directorate Revenue and Expenditure Reports for the year to 31 March 2015 and explanation of significant variances;

• Unrestricted Funds position (closing budget position) at 31 March 2015

including a graph comparing the current year month end position to the previous year;

• Statement of Financial Activity (based on the Rate Setting Statement adopted

in the annual budget); and • Summary of Cash Investments as at 31 March 2015.

Timing differences in financial reporting are due to the monthly spread of the budget cash flow variances. That is, income or expenditure is estimated over a twelve month period and actual receipt and expenditure of funds may not occur in the month estimated. This will result in some income and expenditure being recognised in different periods, ie. timing differences originate in one period and reverse or "turn around" in one or more subsequent periods. Note: timing differences will not result in a forecast adjustment as the expenditure or income item will still be captured in the financial year in question. Strategic and Community Services: Year to date revenue – favourable variance of $338,242 Year to date expenditure – favourable variance of $1,190,020 Year to date net result – favourable variance of $1,528,262 Refer to Attachment 2 for explanation of variances.

Office of Chief Executive and Corporate Services: Year to date revenue – unfavourable variance of ($2,335,000) Year to date expenditure – favourable variance of $2,556,120 Year to date net result – favourable variance of $221,119 Refer to Attachment 2 for explanation of variances.

Infrastructure Services: Year to date revenue – unfavourable variance of ($6,645,193) Year to date expenditure – favourable variance of $6,998,249 Year to date net result – favourable variance of $353,056 Refer to Attachment 2 for explanation of variances.


C28 APRIL 2015

Statutory Services: Year to date revenue – favourable variance of $291,668 Year to date expenditure – favourable variance of $210,226 Year to date net result – favourable variance of $501,893

Refer to Attachment 2 for explanation of variances. Unrestricted Funds The Shire has $12,973,931 of unrestricted funds as at 31 March 2015 ($11,870,927 as at 31 March 2014). The cash balance in the Municipal Fund is $13,835,188 ($14,098,346 as at 31 March 2014).

VOTING REQUIREMENT: Simple Majority

COUNCIL DECISION C13.04.15 RECOMMENDATION Moved by: Cr Jones Seconded by: Cr Perks

That Council notes: 1. the favourable year to date net difference between budgeted net expenditure

and actual net revenue as at 31 March 2015 is $2,604,331; 2. the end of year forecast for net expenditure as at 31 March 2015 is

($10,894,173); and 3. the unrestricted funds position (closing budget position) of the Shire as at 31

March 2015 is $12,973,931.

CARRIED 11/0

Next Report


C29 APRIL 2015

Attachment 2

Report 11.2

10 Pages


C30 APRIL 2015

Shire of Mundaring Cost Report Summary for the year to date 31 March 2015

YTD Actual YTD Budget YTD Variance $ YTD Variance %Favorable = F

Unfavorable = UCurrent year

Budget

Forecast Change

(Variance)End of year

ForecastFavorable = F

Unfavorable = U

Strategic & Community ServicesRevenue $5,194,496 $4,856,254 $338,242 7.0% F $5,934,206 $274,192 $6,208,398 FExpenditure ($10,388,586) ($11,578,606) $1,190,020 -10.3% F ($13,286,791) $35,031 ($13,251,760) FTotal ($5,194,090) ($6,722,352) $1,528,262 -22.7% F ($7,352,585) $309,223 ($7,043,362) F

Office of Chief Exceutive & Corporate ServicesRevenue $25,808,855 $28,143,855 ($2,335,000) -8.3% U $46,744,571 ($11,065,455) $35,679,116 UExpenditure ($4,699,742) ($7,255,862) $2,556,120 -35.2% F ($29,069,300) $11,150,994 ($17,918,306) FTotal $21,109,112 $20,887,993 $221,119 1.1% F $17,675,271 $85,539 $17,760,810 F

Infrastructure ServicesRevenue $9,664,640 $16,309,833 ($6,645,193) -40.7% U $21,796,872 ($4,284,960) $17,511,912 UExpenditure ($20,839,397) ($27,837,646) $6,998,249 -25.1% F ($39,638,699) $4,645,401 ($34,993,298) FTotal ($11,174,757) ($11,527,813) $353,056 -3.1% F ($17,841,827) $360,441 ($17,481,386) F

Statutory ServicesRevenue $1,061,618 $769,950 $291,668 37.9% F $1,033,158 $539,059 $1,572,217 FExpenditure ($3,849,046) ($4,059,272) $210,226 -5.18% F ($5,312,106) ($390,346) ($5,702,452) UTotal ($2,787,428) ($3,289,322) $501,893 -15.3% F ($4,278,948) $148,713 ($4,130,235) F

Total Shire of MundaringRevenue $41,729,608 $50,079,892 ($8,350,284) -16.7% U $75,508,807 ($14,537,164) $60,971,643 UExpenditure ($39,776,771) ($50,731,386) $10,954,615 -21.6% F ($87,306,896) $15,441,080 ($71,865,816) FNet Revenue/(Expenditure) $1,952,837 ($651,494) $2,604,331 -399.7% F ($11,798,089) $903,916 ($10,894,173) F


C31 APRIL 2015

Explanation of Significant Variances by DirectorateRevenueCommunity and Strategic Services1. A number of timing differences between YTD Actuals and YTD Budgets.2. An increase in forecast revenue of $78,000 for the Lake Leschenaultia Kiosk. (see corresponding increase in expenses) 3. An increase of $90,000 in forecast grant revenue towards community recovery (Lotterywest).

Office of Chief Executive and Corporate Services1. A number of timing differences between YTD Actuals and YTD Budgets.2. Forecast reduction of $122,155 in consultant costs for Investment Property investigations (funded from reserve). 3. $16m not being transferred to reserve as Loan is no longer being drawn down in 14/15. 3. A forecast increase of $5.2 million in transfers to the Capital Investment Reserve. Reflects increase in anticipated income from land sales.

Infrastructure Services 1. A number of timing differences between YTD Actuals and YTD Budgets.2. Transfers from Capital Investment Reserve of $4.1 million will not occur due subdivision costs not being incurred.Forecast adjusted in mid year budget review.

Statutory Services1. Income from building application fees being $84,784 greater than YTD budget. Year end forecast has been increased by $40,000.2. Income from planning application fees being $51,754 greater than YTD budget. Year end forecast has been increased by $20,000.3. Impact of Bushfire recovery expenses incurred in 14/15. Will be reimbursed under WANDRRA.Forecasts adjusted in annual budget review.

ExpenditureCommunity and Strategic Services1. A number of timing differences between YTD Actuals and YTD Budgets.2. An increase of $59,693 in forecast expenditure on operating costs for the Lake Leschenaultia Kiosk. Offset by an increase of $78,000 in Kiosk Income.3. An increase of $52,000 in forecast maintenance costs at Lake Leschenaultia, of which $42,775 was identified in the Mid-year budget review.4. Forecast Savings in Counselling Salaries of $48,349.5. Forecast Savings in Community Engagement Salaries of $26,510.6. YTD expenditure on materials and contracts for Community Recovery (Lotterywest grant) of $15,732 compared to YTD budget of $67,491. Forecast expenditure and Grant Income have been adjusted accordingly.

Office of Chief Executive and Corporate Services1. A number of timing differences between YTD Actuals and YTD Budgets.2. A forecast decrease of $100,000 in interest earned on Municipal funds due to low interest rates. 3. A forecast decrease of $65,000 in interest earned on Reserve funds due to low interest rates. Transfers to Reserves reduced accordingly.4. $16 million loan will not be drawn down in 14/15 as highlighted in the Mid-year budget review.5. A forecast increase of $5.2 million in income from land sales.

Infrastructure Services 1. A number of timing differences between YTD Actuals and YTD Budgets.2. $4.1 million of Subdivision works will not proceed. Forecasts adjusted in annual budget review. 3. A reduction of $1.67 million in expenditure on Major Building projects. Will be carried over to 15/16.4. A forecast reduction of $203,000 in costs for waste disposal due to lower than anticipated volumes.

Statutory Services1. Impact of Bushfire recovery expenses incurred in 14/15. Will be reimbursed under WANDRRA.Forecasts adjusted in annual budget review.


C32 APRIL 2015

CURRENT ASSETS

Rates & Sanitation Debtors 1,348,843 1,872,951Debtors 395,924 377,527

TOTAL RECEIVABLES - CURRENT 1,744,767 2,250,478

STOCK ON HAND 232,390 212,045

CASH ASSETS

Municipal 14,098,346 13,835,188Reserve 11,379,378 11,183,842Total Bank Accounts 25,477,725 25,019,030

TOTAL CURRENT ASSETS 27,454,881 27,481,554

CURRENT LIABILITIESCreditors (1,701,004) (561,810)Borrowings - Current Portion (185,751) (199,080)Provisions (2,387,377) (2,645,776)

(4,274,133) (3,406,666)NET CURRENT ASSETS 23,180,749 24,074,888

Less Reserve Fund & Restricted Assets (11,379,378) (11,183,842)Less Land Held for Resale (116,195) (116,195)Add Current Loan Liability 185,751 199,080

UNRESTRICTED FUNDS 11,870,927 12,973,931

Actual 31 March 2015 Actual 31 March 2014

NET CURRENT ASSETS AND UNRESTRICTED FUNDS


C33 APRIL 2015


C34 APRIL 2015

Shire of MundaringStrategic and Community Services

Period ending 31 March 2015

Responsible Officer YTD ActualsYTD Budgets

Y T D Variance

Current Year Budget

Budget Adjustment Forecast

ExpenditureAFM Branch Librarian (469,473) (563,966) 94,493 (668,308) 3,957 (664,351)Bilgoman Aquatic Centre Manager (2,342,715) (2,452,416) 109,701 (2,531,505) 8,017 (2,523,488)Brown Park Manager (179,913) (189,841) 9,928 (210,834) (22,564) (233,398)Communities For Children (173,787) (158,180) (15,607) (189,800) 0 (189,800)Community Facilities Coordinator (67,908) (158,560) 90,652 (190,278) 5,000 (185,278)Community Playgroups (7,614) (18,430) 10,816 (22,113) 0 (22,113)Coordinator Lake Leschenaultia (600,649) (513,108) (87,541) (621,638) (137,646) (759,284)Director Strategic & Community Services (720,867) (1,042,292) 321,425 (1,259,261) 57,867 (1,201,394)Eastern Region Family Day Care Scheme (1,326,693) (1,115,012) (211,681) (1,331,481) 2,015 (1,329,466)Inclusion Support Agency (239,590) (293,686) 54,096 (348,199) 1,239 (346,960)KSP Branch Librarian (488,599) (650,711) 162,112 (767,456) 14,070 (753,386)Manager Libraries & Community Engagement (1,046,194) (1,427,291) 381,097 (1,587,095) 105,637 (1,481,458)Manager Recreation and Leisure Services (556,251) (677,768) 121,517 (810,867) (6,254) (817,121)Maternal & Infant Health (1,613) 0 (1,613) 0 (2,765) (2,765)Midvale Early Childhood & Parenting Centre (1,464,086) (1,143,327) (320,759) (1,357,352) 6,020 (1,351,332)Midvale Playgroup & Toy Library (6,226) (6,800) 574 (8,160) (606) (8,766)Mt Helena Aquatic & recreation Centre Manager (167,071) (206,543) 39,472 (240,613) (2,270) (242,883)Swan Children and Family Centre - Clayton View (386,817) (634,664) 247,847 (755,161) 2,067 (753,094)Swan Children and Family Centre - Middle Swan (101,010) (273,550) 172,540 (324,995) 1,059 (323,936)Toy Library Coordinator (41,507) (52,461) 10,954 (61,675) 188 (61,487)Expenditure Total (10,388,586) (11,578,606) 1,190,020 (13,286,791) 35,031 (13,251,760)

IncomeAFM Branch Librarian 13,086 19,384 (6,298) 23,266 0 23,266Bilgoman Aquatic Centre Manager 360,134 366,850 (6,716) 374,890 (6,480) 368,410Brown Park Manager 85,672 67,554 18,118 72,800 34,600 107,400Communities For Children 95,935 75,830 20,105 91,000 0 91,000Community Facilities Coordinator 118,015 123,270 (5,255) 147,923 17,800 165,723Coordinator Lake Leschenaultia 295,044 230,086 64,958 255,000 79,000 334,000Director Strategic & Community Services 530 0 530 0 530 530Eastern Region Family Day Care Scheme 1,273,177 1,145,420 127,757 1,374,496 0 1,374,496Inclusion Support Agency 355,375 310,010 45,365 372,000 0 372,000KSP Branch Librarian 31,149 11,950 19,199 14,343 17,721 32,064Manager Libraries & Community Engagement 277,995 178,630 99,365 391,088 98,143 489,231Manager Recreation and Leisure Services 111,193 80,740 30,453 103,300 9,530 112,830Midvale Early Childhood & Parenting Centre 1,164,143 1,180,830 (16,687) 1,417,004 0 1,417,004Midvale Playgroup & Toy Library 1,400 6,460 (5,060) 7,746 0 7,746Mt Helena Aquatic & recreation Centre Manager 54,993 38,940 16,053 64,990 700 65,690Swan Children and Family Centre - Clayton View 924,599 888,330 36,269 1,066,000 0 1,066,000Swan Children and Family Centre - Middle Swan 8,707 126,670 (117,963) 152,000 0 152,000Toy Library Coordinator 23,351 5,300 18,051 6,360 22,648 29,008Income Total 5,194,496 4,856,254 338,242 5,934,206 274,192 6,208,398

Net Revenue/(Expenditure) (5,194,090) (6,722,352) 1,528,262 (7,352,585) 309,223 (7,043,362)


C35 APRIL 2015

Shire of MundaringOffice of Chief Executive and Corporate Services


Responsible Officer YTD Actuals YTD Budgets Y T D VarianceCurrent Year Budget


ExpenditureAllocations Office Vehicles (210,529) (435,906) 225,377 (498,210) 0 (498,210)Allocations Ranger Vehicles (47,509) (80,352) 32,844 (107,128) 0 (107,128)Chief Executive Officer (333,076) (400,758) 67,682 (524,707) 21,984 (502,723)Coordinator Finance (469,737) (361,015) (108,722) (429,422) (42,897) (472,319)Director Corporate Services (313,222) (1,749,752) 1,436,530 (21,721,718) 10,993,702 (10,728,016)Governance and Risk (25,172) (34,771) 9,599 (46,082) 11,157 (34,925)Human Resource Manager (371,648) (535,066) 163,418 (687,300) 93,131 (594,169)Manager Administration Services (942,690) (1,119,481) 176,791 (1,467,314) 94,416 (1,372,898)Manager Finance and Governance (977,611) (1,054,605) 76,994 (1,625,937) (213,399) (1,839,336)Manager Information Systems (1,008,548) (1,484,156) 475,608 (1,961,482) 192,900 (1,768,582)Expenditure Total (4,699,742) (7,255,862) 2,556,120 (29,069,300) 11,150,994 (17,918,306)

IncomeAllocations Office Vehicles 258,067 447,255 (189,188) 596,340 0 596,340Allocations Ranger Vehicles 0 6,750 (6,750) 8,998 0 8,998Chief Executive Officer 0 1,125 (1,125) 1,500 (1,500) 0Coordinator Finance 23,398,190 23,956,622 (558,432) 24,076,360 45,866 24,122,226Director Corporate Services 2,112,612 3,669,636 (1,557,024) 21,667,866 (11,076,107) 10,591,759Governance and Risk 55,518 19,503 36,015 26,000 36,497 62,497Manager Administration Services 26,750 15,264 11,486 30,146 0 30,146Manager Finance and Governance 27,398 27,700 (302) 337,361 (530) 336,831Manager Information Systems 2,500 0 2,500 2,500 2,500Profit and Loss on sale of Assets (72,180) 0 (72,180) 0 (72,181) (72,181)Income Total 25,808,855 28,143,855 (2,335,000) 46,744,571 (11,065,455) 35,679,116

Net Revenue/(Expenditure) 21,109,112 20,887,993 221,119 17,675,271 85,539 17,760,810


C36 APRIL 2015

Shire of MundaringInfrastructure ServicesPeriod ending 31 March 2015

Responsible Officer YTD ActualsYTD Budgets

YTD Variance

Current Year Budget


ExpenditureConstruction Supervisor (1,271,278) (1,350,930) 79,652 (1,801,239) (364,324) (2,165,563)Coordinator Civil Works (1,154,442) (1,265,478) 111,036 (1,847,294) (417,269) (2,264,563)Coordinator Parks Services (2,800,971) (2,849,788) 48,817 (3,777,221) (460,529) (4,237,750)Coordinator Plant and Depot Services (1,843,806) (1,990,715) 146,909 (2,368,381) (117,878) (2,486,259)Director Infrastructure Services (4,862,034) (8,857,696) 3,995,662 (12,021,951) 4,164,530 (7,857,421)Engineering Technical Officer - Civil (365,391) (577,375) 211,984 (811,500) 60,000 (751,500)Maintenance Supervisor (1,497,309) (1,541,482) 44,173 (1,991,216) (98,600) (2,089,816)Manager Building Assets (1,410,873) (2,308,770) 897,897 (5,564,439) 1,904,064 (3,660,375)Manager Design Service 164,595 (602,104) 766,699 (755,423) (172,337) (927,760)Manager Operations Service (762,312) (939,627) 177,315 (1,248,604) 84,744 (1,163,860)Waste & Recycling Coordinator (4,214,947) (4,931,648) 716,701 (6,631,401) 203,000 (6,428,401)Works Supervisor (820,629) (622,033) (198,596) (820,030) (140,000) (960,030)Expenditure Total (20,839,397) (27,837,646) 6,998,249 (39,638,699) 4,645,401 (34,993,298)

IncomeCoordinator Civil Works 0 0 0 0 93,349 93,349Coordinator Parks Services 7,598 67,500 (59,902) 90,000 0 90,000Coordinator Plant and Depot Services 838,814 1,634,445 (795,631) 2,179,272 82,441 2,261,713Director Infrastructure Services 1,436,295 7,341,765 (5,905,470) 10,414,698 (4,443,853) 5,970,845Engineering Technical Officer - Civil 16,148 6,747 9,401 36,000 6,350 42,350Maintenance Supervisor 9,612 774 8,838 1,032 8,600 9,632Manager Building Assets 500,000 0 500,000 1,750,000 0 1,750,000Manager Design Service 0 370,000 (370,000) 370,000 0 370,000Manager Operations Service 13,021 101,250 (88,229) 135,000 (58,000) 77,000Waste & Recycling Coordinator 6,843,151 6,787,352 55,799 6,820,870 26,153 6,847,023Income Total 9,664,640 16,309,833 (6,645,193) 21,796,872 (4,284,960) 17,418,563

Net Revenue/(Expenditure) (11,174,757) (11,527,813) 353,056 (17,841,827) 360,441 (17,481,386)


C37 APRIL 2015

Shire of MundaringStatutory Services


Responsible OfficerYTD Actuals

YTD Budgets

YTD Variance

Current Year Budget


ExpenditureBushcare Coordinator (58,498) (175,659) 117,161 (225,797) 0 (225,797)Coordinator Environment and Sustainability (419,322) (500,431) 81,109 (654,979) (2,137) (657,116)Director Statutory Services (91,895) (106,917) 15,022 (139,541) 807 (138,734)Manager Building Services (385,062) (464,896) 79,834 (605,690) 2,358 (603,332)Manager Health & Community Safety Service (CSS) (1,783,868) (1,538,457) (245,411) (2,024,159) (358,913) (2,383,072)Manager Health & Community Safety Services (HS) (342,721) (462,891) 120,170 (603,331) (10,055) (613,386)Manager Planning (767,679) (810,021) 42,342 (1,058,609) (22,406) (1,081,015)Expenditure Total (3,849,046) (4,059,272) 210,226 (5,312,106) (390,346) (5,702,452)

IncomeBushcare Coordinator 5,909 0 5,909 0 5,909 5,909Coordinator Environment and Sustainability 47,469 0 47,469 1,934 15,135 17,069Manager Building Services 261,311 178,875 82,436 253,799 40,000 293,799Manager Health & Community Safety Service (CSS) 419,412 321,903 97,509 418,527 432,647 851,174Manager Health & Community Safety Services (HS) 61,842 48,888 12,954 65,191 5,000 70,191Manager Planning 265,676 220,284 45,392 293,707 40,368 334,075Income Total 1,061,618 769,950 291,668 1,033,158 539,059 1,572,217

Net Revenue/(Expenditure) (2,787,428) (3,289,322) 501,894 (4,278,948) 148,713 (4,130,235)


C38 APRIL 2015

Shire of MundaringStatement of Financial Activity

for period ending 31 March 20152014/15 2014/15Actuals BUDGET

$ $

Operating Revenues General Purpose Funding 2,914,184 4,054,092 Governance 119,350 81,200 Law, Order & Public Safety 421,369 418,200 Health 61,842 55,700 Education & Welfare 4,065,358 4,818,166 Community Amenities 7,118,531 7,124,290 Recreation and Culture 1,059,474 1,053,713 Transport 41,996 186,000 Economic Services 261,311 238,500 Other Property and Services 1,138,385 2,459,156 Total (Excluding Rates) 17,201,800 20,489,017

Operating Expenses General Purpose Funding (507,869) (681,138) Governance (3,311,244) (5,435,137) Law, Order & Public Safety (2,025,247) (2,395,826) Health (491,440) (814,610) Education & Welfare (4,806,780) (6,664,979) Community Amenities (5,779,956) (8,779,786) Recreation and Culture (7,443,598) (8,679,958) Transport (8,598,158) (11,868,068) Economic Services (526,191) (809,159) Other Property and Services (1,669,513) (3,160,731) Total (35,159,996) (49,289,392)

Adjustments for Cash Budget Requirements:Depreciation on Assets 7,686,188 8,541,748 (Profit)/Loss on Disposal of Assets 69,527 - Deferred Rates Adjustment 64,210 - Net Operating Result (Excluding Rates) (10,138,271) (20,258,627)

Capital RevenuesProceeds from Disposal of Assets 295,435 2,638,140 Grants and Contributions 1,136,785 3,519,507 Proceeds from New Debentures - 16,000,000 Transfers from Reserves 93,535 9,159,283 Total 1,525,755 31,316,930

Capital ExpensesPurchase Property, Land & Equipment (2,736,956) (11,110,987) Purchase Infrastructure (3,472,552) (4,913,093) Repayment of Debentures (148,009) (199,080) Transfers to Reserves (536,342) (21,886,000) Total (6,893,860) (38,109,160) Net Capital (5,368,106) (6,792,230)

Total Net Operating and Capital (15,506,376) (27,050,857)

Rate Revenue 23,001,147 23,702,860 Opening Surplus/(Deficit) June 30 C/Fwd. 5,479,160 4,877,217

Closing Surplus/(Deficit) 12,973,931 1,529,220


C39 APRIL 2015

Amount Invested

Interest Rate

Period of Investment

Investment Date Maturity Date

Unrestricted Use Funds

71 Westpac Maxi $2,567,448 2.40% N/A N/A N/A

116 ANZ $2,623,910 3.30% 121 days 19-Dec-14 19-Apr-15

118 NAB $3,054,148 3.10% 183 days 4-Mar-15 2-Jun-15

119 Westpac $3,036,079 3.28% 90 days 12-Jan-15 12-Apr-15

120 NAB $2,028,628 3.10% 92 days 16-Feb-15 19-May-15

Total $13,310,213

73 Westpac Maxi 575,119 2.40% N/A N/A N/A

60A Bendigo 1,315,118 3.30% 151 days 22-Jan-15 22-Jun-15

89 BankWest 1,267,916 3.40% 120 days 22-Dec-14 21-Apr-15

97 NAB 4,095,508 3.50% 182 days 9-Dec-14 9-Jun-15

107 ANZ 2,240,104 3.08% 184 days 28-Mar-15 28-Sep-15

108 ANZ 1,649,412 3.52% 92 days 16-Oct-14 16-Apr-15

Total 11,143,177

$24,453,389

Road Construction/POS Funds

72 Westpac Maxi $2,002,224 2.40% N/A N/A N/A

58 BankWest $1,338,048 3.50% 92 days 5-Jan-15 7-Apr-15

98 BankWest $1,174,516 2.90% 94 days 30-Mar-15 2-Jul-15

99 BankWest $1,159,713 3.50% 184 days 1-Dec-14 3-Jun-15

$5,674,501

SHIRE OF MUNDARING

TRUST FUNDS

TOTAL TRUST INVESTMENT

TOTAL MUNI / RESERVE INVESTMENT

INVESTMENT SUMMARY as at 31 March 2015

MUNICIPAL FUNDS

RESERVE FUNDS


C40 APRIL 2015

12.0 ELECTED MEMBERS MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN

12.1 Notice of Motion from Cr Jones - Proposed Darlington Community Pavilion

File Code Pi 2 Res.18731/1 Location / Address Lot 3149; Plan 4121; Volume Lr3015/182; Pine Terrace

Darlington Applicant Darlington Community Recreation Management

Committee Author Kirk Kitchin, Manager Recreation and Leisure Services Senior Employee Megan Griffiths, Director Strategic and Community

Services Disclosure of Any Interest

Nil

SUMMARY Cr Jones has advised of his intention to move the following notice of motion: “That Council: 1. Supports the model of the Shire working in partnership with the Darlington

Community for the design and construction of a new community Pavilion; 2. Notes the Darlington Community will take the lead in organising the planning,

design and construction of the pavilion, soliciting in-kind support, fund raising, and seeking grants to the value of at least two thirds of cost of the entire project;

3. Lists in the Corporate Business Plan for the 2016-17 financial year an

amount of $300,000 as the Shire’s contribution towards the project, being an amount of no more than one third of the total cost of the project; and

4. Notes expenditure of this funding is conditional upon the Darlington

Community having their funds, grants, and in-kind contributions secured.” BACKGROUND Cr Jones has provided the following information in support of his motion: • “Darlington community realised many years ago that the Shire cannot fund all

requirements so took it upon themselves to find an alternative approach to securing community facilities, and should be applauded for their commitment.

• Although this approach is novel, it is hardly unprecedented. • Engaging community support leverages the Shire resources, in this case by at least

an additional 200% i.e. $3 value for each $1 spent by the Shire. • We are taking a two stage approach. Support for the partnership model allows the

Darlington Community to move forward into their fund raising stage, with minimal risk to the Shire.


C41 APRIL 2015

Listing funding in the 2016-17 budget demonstrates our commitment to the project but does not commit us to expenditure of funds unless the Darlington community also meets their commitments.

• We should acknowledge that there may be some risk to the Shire, particularly if community support evaporates part way through the build. However, if the bulk of our expenditure is on septics, roads and car parking much of this work is required to be done anyway so this work will not be ‘wasted’. The risk is that we end up with a half completed building which we are then faced with finishing off.

• Delaying this commitment runs the big risk of community support fading away. • Apart from the financial benefits of leveraging external financing, this also engages

our Shire with a section of our community, one of our goals.” The Darlington Community Recreation Management Committee (DCRMC) has proposed the construction of a new Darlington Pavilion at Darlington Oval at a cost which they estimate to be $1 million. The project has a concept plan developed through community consultation and a draft proposal submitted to the Shire in April 2015. The draft proposal does not include a finalised funding strategy. The Shire has a trust fund to hold community donations for this project and currently has just over $10,000 held on behalf of the community. Staff have been liaising with the group in relation to this proposal for a number of years. Until recently, discussion has been on the basis of the facility being a fully community funded and community built project. As the land on which the proposed Darlington Pavilion is located is reserved under the Metropolitan Region Scheme (MRS) as ‘Regional Reserve – Parks and Recreation any development required WAPC approval. The DCRMC has been granted WAPC approval, which lapses in September 2015. The DCRMC can apply for an extension to the approval. A social room at Darlington Oval is not listed as a high priority project for the Shire in light of other required capital infrastructure. As such, it does not currently appear in the Strategic Community Plan (SCP), the Corporate Business Plan (CBP) or the Long Term Financial Plan (LTFP). The reason for its current lower priority includes: • As Darlington Hall is 60m away from the oval it could be used for sports social

activities; • Darlington Oval is a junior sized oval so there is restricted use of the oval by senior

clubs, therefore limiting use of the social rooms by senior clubs; • Other ovals that have greater use than Darlington Oval require additional facilities

and are currently prioritised higher. For example Harry Riseborough Oval has a need for additional change rooms to cater for both men’s and women’s soccer at the same time. This is listed in year 2 of the Shire’s LTFP. It should be noted that this project has been listed on the basis that funds would be secured through the state government Community Sports and Recreation Facility Fund (CSRFF). This is the same fund the DCRMC is seeking to assist in the funding of the Darlington Pavilion. Should two applications for similar facilities be submitted in the same year the chances of getting funding for both projects from a grants program that is


C42 APRIL 2015

oversubscribed every year is potentially lower. This may significantly impact the funding strategy of one of both of these projects.

STATUTORY / LEGAL IMPLICATIONS Planning Requirements The proposal needs to consider and comply with the following: • Clause 3.2.2 of Local Planning Scheme No.4; • Clause 5.7.1.7 of Local Planning Scheme No.4; and • Section 5.3 of the Darlington Precinct Plan. Reference – Local Planning Scheme No.4 http://www.mundaring.wa.gov.au/ResidentServices/Planning/Documents/Local%20Planning%20Scheme%20No%20%204.pdf Building Requirements The proposal needs to consider and comply with the following: • National Construction Code (Building Code of Australia) Tendering Requirements There are two scenarios for the project that will result in different tendering requirements. Scenario 1- If this facility is fully community funded (requiring no financial support from the Shire), then the project would not need to go to tender. This is based on the Local Government (Functions and General) Regulations 1996:

Division 2 — Tenders for providing goods or services (s. 3.57) 11. When tenders have to be publicly invited (2) Tenders do not have to be publicly invited according to the requirements of this Division if — (f) the local government has good reason to believe that, because of the unique nature of the goods or services required or for any other reason, it is unlikely that there is more than one potential supplier;

However, even without the tender process the Shire would still be responsible for the project, entering into commercial contracts with DCRMC’s architect and builder to ensure all parties fulfil their obligations. Scenario 2 – If the Shire contributes capital funding towards the project above $100,000 then the Shire may be required to tender this project. This has implications that require further exploration. For example: • If the group is not successful in the tender process, does this commit the

Shire to a project for which it does not have a complete budget?

http://www.mundaring.wa.gov.au/ResidentServices/Planning/Documents/Local%20Planning%20Scheme%20No%20%204.pdf

http://www.mundaring.wa.gov.au/ResidentServices/Planning/Documents/Local%20Planning%20Scheme%20No%20%204.pdf


C43 APRIL 2015

• Can the Shire tender out a project for which it does not have a complete budget?

• What implications does this have for the cost of the project given that the group’s estimated cost included volunteer labour and materials?

Inclusion in Strategic Community Plan and Corporate Business Plan As this project does not currently appear in the Shire’s SCP and CBP, to include any new significant financial contribution to this project the Shire would be bound by Local Government (Administration) Regulations 1996 at Part 5 Division 3 r.19C. Paragraphs (6) to (10) of this regulation enable the SCP to be modified by Council subject to consultation with the electors and ratepayers of its district during preparation of the proposed modifications. Any proposed Shire contribution towards this project and how that commitment may or may not draw funds away from and/or demote or delay other projects and priorities require community consultation. Regulation r.19D requires public notice of the adoption of and modifications of an SCP. Prior community consultation and a subsequent public notice are not required for modification to a CBP. It is intended to undertake community consultation for the SCP in the second half of 2015 to develop the SCP 2016-2026, which would enable this project to be considered from the 2016/17 financial year onwards. POLICY IMPLICATIONS The land is reserved under the Metropolitan Region Scheme (MRS) as ‘Regional Reserve – Parks and Recreation’. The MRS requires any development of its Regional Reserves to be consistent with the purpose for which it is reserved, and is therefore at the discretion of the WAPC. This application is for recreation purposes and to alter and extend an existing approved recreational use, and is therefore entirely consistent with the MRS. FINANCIAL IMPLICATIONS Capital Cost The DCRMC estimate the concept plan would cost $1 million. Given the Shire’s recent experience with a similar facility there is some concern this figure is significantly underestimated. Whilst there is no request for the Shire to contribute capital funds to this facility there is reference in the DCRMC proposal for a commitment from the Shire to fund ongoing Operations and Maintenance and contribute services and works. These contributions include: • Planning and Building approvals;


C44 APRIL 2015

• Sufficient general and structural earthworks and land shaping to be completed and to be ready for the new facility to be constructed;

• Upgrade of sewerage disposal system; • Upgrade of stormwater drainage in and around the site – as per WAPC approval

requirements; and • Upgrade of road and parking from Pine Terrace including accessible parking and

access. There has been no calculation as to the cost of these services and works, which would be required to be contracted out. There is no allocation in the 2015/2016 budget or the ten year LTFP for any works for this proposed facility. For these works to be included in LTFP in 2016/2017 other projects currently listed will need to be altered, delayed, deferred or dropped to reallocate resources to this project. Should the project be able to proceed without Shire funds there is still a need for Shire involvement, through oversight of the construction of this public building. This would need to be done by entering into commercial contracts between the Shire, the architect and builder. This would not only ensure this public building is constructed to the required standards, it would also assist in mitigating risks associated with community funded and volunteer support construction. Developing and managing these contracts would cost an estimated $25,000 in staff time over the life of the project. Based on the current prioritised capital works project, there is currently no internal capacity to manage this project in 2015/2016 or 2016/2017 financial years, either directly or via a contractor, without impacting the current capital program. Should the Shire be required to provide funds to the project for services and works in excess of $100,000 this will trigger tender requirements. An additional $10,000 would be needed (in addition to staff resources) to undertake a tender process. Annual and Preventative Maintenance Costs It has always been agreed between the Shire and the DRCMC that if this facility was built it would become an asset of the Shire, and as such the Shire would bear the ongoing cost of annual and preventative maintenance. This would include cleaning, utility costs and future refurbishment. The Shire has budgeted for an increase in the maintenance costs for Darlington Oval facilities (in addition to direct oval maintenance expenditure) of $20,000 per year from 2016/17. This increase is in addition to the current expenditure on the existing change rooms and kiosk on Darlington Oval. The increase is required to cater for the increased costs of a new, larger facility. Additional costs for ongoing preventative maintenance would also need to be considered. These costs are approximate for the first 15 years: • Painting internal and external – approximately every 6 years $15,000 • Floor coverings, tiling (dependent on wear and tear) $12,000 • Replacement hot water system (as required) $5,000


C45 APRIL 2015

• Miscellaneous $10,000 Trust Fund The Shire has established and manages a trust fund for community donations, fundraising and grants on behalf of the DCRMC. Currently there is $10,359.46 in this fund. STRATEGIC IMPLICATIONS Including this project outside the Shire’s Integrated Planning and Reporting Framework does not meet the Shire’s obligation under the Local Government (Administration) Regulations 1996 at Part 5 Division 3 r.19C. As such, supporting this proposal at this stage may set a precedent for future projects to also be included outside the statutory framework. This can be dealt with by including it in the planned community consultation in 2015 for the 2016-2026 SCP. SUSTAINABILITY IMPLICATIONS Social Each of the current oval sporting clubs believe one of the limiting factors to the future growth and sustainability of their clubs is the lack of a ‘home’ and space for social activities where they play. The social rooms will also be available for public hire to the wider community through community bookings managed by the Shire when not used by the sporting groups. RISK IMPLICATIONS The three major risk categories with this project are financial, compliance and reputation. These risks are significant due to the fact that the project contains many unknowns at the present time and a community funded / built facility carries additional risks above that of a normal Shire construction. These specific risks are assessed below. Financial Risk - Capital Cost Estimate may not be accurate There is concern that the $1 million capital cost estimated by the DCRMC may not be sufficient to complete the project. This concern is based on the cost of the Elsie Austin social rooms in Mt Helena, a similar project which is currently being tendered. The estimated cost for just a social room at Mt Helena is approximately $800,000. An initial concept plan for the Elsie Austin social rooms included upgrading the adjacent change rooms and kiosk, making it a similar scale project to the proposed Darlington Pavilion. Three years ago this was costed at approximately $1.5 million.


C46 APRIL 2015

MEASURE OF CONSEQUENCE Level Rating Financial Impact 3 Moderate $100,001 to $1M

LIKELIHOOD

Level Rating Description 4 Likely The event will probably occur in most circumstances

The Risk Rating for the capital cost not being accurate and the Shire having to fund the difference is HIGH with a Risk Matrix score of 12 out of 25. A way to mitigate this risk is for the Shire to contract is own quantity surveyor to undertake an assessment of the capital cost before committing funds to the project or not support this project. This would require both a financial allocation of resources and diverting staff resources from current prioritised capital projects, which may impact the timeframes of those projects. Risk - Lack of Community / External Grant Funding and Donated Labour / Materials A shortfall in community, external grant funding, donated materials and volunteer labour may result in a request or expectation that the Shire would have to fund the difference to complete the project. MEASURE OF CONSEQUENCE

Level Rating Financial Impact 3 Moderate $100,001 to $1M

LIKELIHOOD

Level Rating Description 3 Possible The event should occur at some time

The Risk Rating for the loss of external funding or support for this project with the Shire making up the difference is MEDIUM with a Risk Matrix score of 9 out of 25. A risk mitigation strategy is to ensure the Shire does not allow this project to commence before DCRMC secures sufficient funds; ensure there are contracts in place for volunteer professional services; and ensure there are written agreements for donated materials. The alternative is to eliminate risk entirely by not supporting the project. Risk - Impact on Current Capital Program The Shire’s current capital program has placed its staff resources at capacity for at least the next two years. The current projects include: • Mundaring Recreation Centre*; • Boya Community Hub*; • Elsie Austin Oval Social Rooms*; and • Brown Park Community Centre Upgrade • Replacement toilet blocks at Glen Forrest and Sawyers Valley ovals

* Grant funding secured

Should this project be listed for funding support in 2016/2017 per Cr Jones’ motion, it will impact on the Shire’s capacity to deliver the other projects listed above, resulting in delay or deferral.


C47 APRIL 2015

A risk associated with a delay in one or more projects is an increase in capital costs and the associated potential impact on grant funding (which might be withdrawn) where such funding has already been secured. MEASURE OF CONSEQUENCE

Level Rating Reputation (Social / Community) 3 Moderate $100,001 to

$1M LIKELIHOOD

Level Rating Description 5 Almost

Certain The event is expected to occur in most circumstances

The Risk Rating for damage to the Shire’s reputation if the project is supported is HIGH with a Risk Matrix score of 15 out of 25. This risk may be mitigated by not supporting this project until these other projects are complete; or extra human resources and funding resources are provided to manage the additional workload. The alternative is to eliminate risk entirely by not supporting the project. Compliance Risk - The project is not completed to Shire standards due to the reliance on donated materials and volunteers. MEASURE OF CONSEQUENCE

Level Rating Financial Impact 4 Major Non-compliance results in termination of services or

imposed penalties to Shire / Officers LIKELIHOOD

Level Rating Description 2 Unlikely The event could occur at some time

The Risk Rating for the use of poor quality or not adequate materials from donated sources is MEDIUM with a Risk Matrix score of 8 out of 25. This risk can be mitigated by the Shire entering into contracts with the architect and builder and written agreements with suppliers or not support this project. Risk – Supporting a Project not included in SCP Should Council support a facility that was not identified in the SCP and does not appear in any Shire plans now or for the next ten years may be a compliance risk to the Shire as it may be seen not to be following the Integrated Planning and Reporting Framework as required by regulations. MEASURE OF CONSEQUENCE

Level Rating Reputation (Social / Community) 2 Minor Substantiated, localised impact on community trust

or low media item


C48 APRIL 2015

LIKELIHOOD Level Rating Description 3 Possible The event should occur at some time

The Risk Rating for lack of compliance with regulations if the project is supported without appearing in the SCP is MEDIUM with a Risk Matrix score of 6 out of 25. This risk may be mitigated by including this project in the consultation for the development of next SCP. Reputation Risk - Impact on Current Capital Program As noted in the financial risks above the Shire’s current capital program has placed its staff resources at capacity for at least the next two years. If this project is listed for funding support in 2016/2017, as per the motion, additional staff resources would need to be allocated, given the existing capital program has placed the Shire’s staff at full capacity. If additional resources were not made available then existing projects would need to delayed or deferred to accommodate this project. This results in an additional reputational risk (from the community and external funding agencies) associated with delaying already listed capital projects. MEASURE OF CONSEQUENCE

Level Rating Reputation (Social / Community) 4 Major Substantiated, public embarrassment, widespread

high impact on community trust, high media profile, third party actions

LIKELIHOOD

Level Rating Description 5 Almost


The Risk Rating for damage to the Shire’s reputation if the project delays other current capital projects is EXTREME with a Risk Matrix score of 20 out of 25. This risk may be mitigated by not supporting this project until the currently listed capital projects are complete or extra staff and funding resources are provided to manage the additional workload. To eliminate this risk requires Council to not support this project. Risk – Council does not support the Project If Council does not support a community driven and funded project it may have a damaging effect on the reputation of the Shire of Mundaring. MEASURE OF CONSEQUENCE

Level Rating Reputation (Social / Community) 2 Minor Substantiated, localised impact on community trust

or low media item


C49 APRIL 2015

LIKELIHOOD Level Rating Description 5 Almost


The Risk Rating for damage to the Shire’s reputation if the project is not supported is HIGH with a Risk Matrix score of 10 out of 25. This risk may be mitigated by supporting the project; or if it is not supported clearly communicating the reasons for this decision. EXTERNAL CONSULTATION Advice was sought from the Department Local Government and Communities on tendering requirements and the inclusion of projects not currently in the SCP and CBP. COMMENT Questions that Council may need to consider in assessing whether to support this motion include: • What is the impact of prioritising this project ahead of other projects that were

subject to community consultation and prioritisation as part of the development of the SCP?

• Should Council increase the priority of lower ranked projects where the community indicates it will provide the funding itself?

• What precedent(s) does prioritising a project with community funding set for other projects?

• What would be the impact on the delivery of capital projects currently inline for delivery, particularly over the next two year period?

• Is the $300,000 estimate correct as a one third contribution to the project or will additional funding be required?

• How would any additional request for funds beyond $300,000 or a third of the project this be dealt with?

• Has sufficient work been undertaken by the group in conjunction with the Shire to ensure the project has a robust business case to enable the Shire to undertake due diligence, such as: - Details of the project’s funding strategy; - Clarification of the exact level of Shire funds required for this project; - legal implications regarding tendering, which are dependent on the funding model? - What is the agreed process and legal agreements regarding the design, planning and construction of the proposed facility;

• Is there enough detail to quantify the level of Shire officer support required for the different stages of this project to assess impact on workload and capacity to deliver other projects?

It is suggested that before Council agrees to advance the proposal to a stage where Shire funds are to be allocated, Council needs to be confident the proposal is capable of being properly assessed in accordance with Council’s due diligence responsibilities. If Council forms the view that it is not yet confident the proposal has reached this stage, an option open to Council is to identify the project as part of the consultation for the Strategic Community Plan review. This would comply with


C50 APRIL 2015

the Shire’s relevant statutory obligations and allow the broader community an opportunity to provide feedback on the priorities Council should consider for its capital program. If the project receives support in the Strategic Community Plan, the development of a business case for the Darlington Pavilion upgrade can be listed in the Corporate Business Plan. If Council resolves to adopt this approach, staff resources would need to be allocated to developing the current proposal, to be undertaken in conjunction with the DRCMC, to a stage where Council is able to assess the project’s priority and determine the level of financial support that can be allocated. VOTING REQUIREMENT: Absolute majority MOTION Moved by Cr Jones Seconded by: Cr Cook That Council: 1. Supports the model of the Shire working in partnership with the Darlington

Community for the design and construction of a new community Pavilion; 2. Notes the Darlington Community will take the lead in organising the planning,

design and construction of the pavilion, soliciting in-kind support, fund raising, and seeking grants to the value of at least two thirds of cost of the entire project;

3. Lists in the Corporate Business Plan for the 2016-17 financial year an amount

of $300,000 as the Shire’s contribution towards the project, being an amount of no more than one third of the total cost of the project; and

4. Notes expenditure of this funding is conditional upon the Darlington

Community having their funds, grants, and in-kind contributions secured. LOST 0/11

For Against Cr Dullard Cr Clark Cr Cuccaro Cr Perks Cr Gu Cr Pilgrim Cr Bertola Cr Fox Cr Daw Cr Jones Cr Cook


C51 APRIL 2015

COUNCIL DECISION C14.04.15 MOTION Moved by: Cr Jones Seconded by: Cr Cook

That Council: 1. Supports in principle the model of the Shire working in partnership with the

Darlington community through the Darlington Community Recreation Management Committee for the design and construction of a new community pavilion;

2. Identify the Darlington Community Pavilion project as part of the consultation for the 2016-2026 Strategic Community Plan review, and if supported through this review process, inclusion of a business case for the Darlington Pavilion upgrade in the Corporate Business Plan.

CARRIED BY AN ABSOLUTE MAJORITY 10/1

For Against Cr Dullard Cr Cuccaro Cr Gu Cr Daw Cr Perks Cr Jones Cr Fox Cr Pilgrim Cr Bertola Cr Clark Cr Cook

13.0 NEW BUSINESS OF AN URGENT NATURE APPROVED BY

PRESIDING PERSON OR BY DECISION OF MEETING 13.1 Elected Members Nil 13.2 Employees Nil

8.10pm - Strategic Projects Advisor left the Council Chamber and did not return.


C52 APRIL 2015

14.0 MATTERS BEHIND CLOSED DOORS 8.13pm Meeting Closed to Public

The Local Government Act 1995, Part 5, Section 5.23 states in part:

(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; and (b) the personal affairs of any person; and (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; and

(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; and

(e) a matter that if disclosed, would reveal — (i) a trade secret; or (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; and

(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; or

(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; and (g) information which is the subject of a direction given under section

23(1a) of the Parliamentary Commissioner Act 1971; and (h) such other matters as may be prescribed.

COUNCIL DECISION C15.04.15 Moved by: Cr Fox Seconded by: Cr Bertola

That Council closes the meeting to members of the public in order to consider confidential report/s as detailed below agenda Item 14.1, pursuant to the Local Government Act 1995, Section 5.23(2)(b); and

CARRIED 11/0


C53 APRIL 2015

14.1 WALGA Honours Program Nominations 2015

File Code OR.CLR Location / Address N/A Applicant N/A Author Danielle Courtin

Governance Co-ordinator Senior Employee Jonathan Throssell

Chief Executive Officer Disclosure of Any Interest

N/A

SUMMARY Nominations for this year’s WALGA Honours program close on 15 May 2015 and Council is invited to submit nominations. BACKGROUND The WALGA Honours program represents a unique opportunity to celebrate the achievements of our Elected Members and senior employees, and to recognise those who have given so much of their personal and professional time to the betterment of their communities through local government. Awards will be presented to recipients at an awards ceremony held during the August 2015 Local Government Convention at the Perth Convention Centre. WALGA recognises recipients of Awards by celebrating their achievements with their peers at the Local Government Convention and in producing a colour brochure which lists the awards and achievements of each recipient. There are six categories of awards as follows:

• Local Government Medal – recognises outstanding achievement and

significant contribution by elected members and employees to WALGA and/or to local government. Nomination by State Councillors and local government with a co-signature from a State Councillor.

• Life Membership – recognises the long and outstanding service of Elected

Members and employees to WALGA and/or local government. Nomination by State Councillors and local governments.

• Eminent Service Award – recognises personal commitment, eminent

service and contribution to local government or WALGA. Nomination by State Councillors and local governments.

• Long and Loyal Service Award – recognises Elected Members who have

provided long service of a high degree as an executive member of WALGA


C54 APRIL 2015

for eight or more years, or as an Elected member for 12 or more years. Nomination by State Councillors and local governments.

• Local Government Distinguished Officer Award – recognises local

government employees or employees of Agencies to reward their achievements.

• Merit Award – recognises Elected Members who have provided

distinguished service to the community through their local government. Nomination by State Councillors and local governments.

Nominations require the support of a nominator, who must be an Elected Member, plus two other Elected Members. The nomination must be forwarded through the Shire’s CEO for sign-off prior to submission to WALGA. STATUTORY / LEGAL IMPLICATIONS Nil POLICY IMPLICATIONS Nil FINANCIAL IMPLICATIONS Nil STRATEGIC IMPLICATIONS Nil SUSTAINABILITY IMPLICATIONS Nil RISK IMPLICATIONS Nil EXTERNAL CONSULTATION Nil


C55 APRIL 2015

COMMENT The following table shows Elected Members’ election year, completed years of service and eligibility for the Honours program:

Councillor Elected Completed

Years of Service (to May 2015)

Eligibility

Helen Dullard August 2000 14 • Eminent Service Award

• Long and Loyal Service Award

Darrell Jones October 2009 5

Tony Cuccaro May 2000 15 • Long and Loyal Service Award

David Lavell 2001 – 2009

October 2013

9

Pauline Clark June 2006 8

Trish Cook October 2013 1

Alan Pilgrim 1993 – 1996

October 2007

10

Patrick Bertola October 2009 5

Leona Gu October 2011 3

John Daw May 2003 12 • Long and Loyal Service Award

Bob Perks October 2013 1

Stephen Fox October 2009 5

To be eligible for a Merit Award, Elected Members must have served four years or more. Any Elected Member may wish to nominate another elected member for this award. VOTING REQUIREMENT Simple Majority RECOMMENDATION That Council considers nominations for this year’s WALGA Honours program.


C56 APRIL 2015

8.13pm Cr Dullard having been nominated, left the Council Chamber and the Deputy Presiding Person, Cr Jones assumed the chair.

Crs Daw and Cuccaro having been nominated left the Council Chamber. 8.20pm Cr Pilgrim, having been nominated, left the Council Chamber.

COUNCIL DECISION C16.04.15 MOTION Moved by: Cr Fox Seconded by: Cr Clark That: 1. Council nominates Crs Daw, Dullard and Cuccaro for the WALGA Long and

Loyal Service Award and Cr Dullard for the WALGA Eminent Services Award and Cr Pilgrim for the WALGA Merit Award; and

2. Crs Fox, Clark and Cook sign the WALGA Honours Nomination 2015 Form as

co-nominators.

CARRIED 7/0

8.25pm The Deputy Presiding Person, Cr Jones vacated the Chair Cr Dullard returned to the Council Chamber and resumed the Chair. Crs Daw, Cuccaro and Pilgrim returned to the Council Chamber.

8.25pm Meeting Opened to Public

COUNCIL DECISION C17.04.15 Moved by: Cr Bertola Seconded by: Cr Fox

That the meeting again be opened to the public.

CARRIED 11/0 15.0 CLOSING PROCEDURES 15.1 Date, Time and Place of the Next Meeting

The next Ordinary Council meeting will be held on Tuesday, 12 May 2015 at 6.30pm in the Council Chamber.

15.2 Closure of the Meeting

The Presiding Person declared the meeting closed at 8.26pm.