finance, policy, operations and legislation committee 18 05 2016... · agenda - finance, policy,...

AGENDA

Finance, Policy, Operations and Legislation Committee

Wednesday, 18 May 2016, 6.00pm

CITY OF FREMANTLE

NOTICE OF A FINANCE, POLICY, OPERATIONS AND LEGISLATION

COMMITTEE MEETING Elected Members A Finance, Policy, Operations and Legislation Committee meeting of the City of

Fremantle will be held on Wednesday, 18 May 2016 in the Council Chamber, Town Hall

Centre, 8 William Street, Fremantle (access via stairs, next to the playground in Kings

Square) commencing at 6.00 pm.

Glen Dougall DIRECTOR CITY BUSINESS 13 May 2016

FINANCE, POLICY, OPERATIONS AND LEGISLATION COMMITTEE

AGENDA

DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS NYOONGAR ACKNOWLEDGEMENT STATEMENT "We acknowledge this land that we meet on today is part of the traditional lands of the Nyoongar people and that we respect their spiritual relationship with their country. We also acknowledge the Nyoongar people as the custodians of the greater Fremantle/Walyalup area and that their cultural and heritage beliefs are still important to the living Nyoongar people today." ATTENDANCE / APOLOGIES / LEAVE OF ABSENCE RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE PUBLIC QUESTION TIME DEPUTATIONS / PRESENTATIONS DISCLOSURES OF INTEREST BY MEMBERS LATE ITEMS NOTED CONFIRMATION OF MINUTES That the minutes of the Finance, Policy, Operations and Legislation Committee dated 20 April 2016 be confirmed as a true and accurate record. TABLED DOCUMENTS

TABLE OF CONTENTS

ITEM NO SUBJECT PAGE

REPORTS BY OFFICERS (COMMITTEE DELEGATION) 1

REPORTS BY OFFICERS (COUNCIL DECISION) 1

FPOL1605-1 INFORMATION REPORT - MAY 2016 1

FPOL1605-2 WRITE OFF OF BAD AND DOUBTFUL DEBTS MAY 2016 3

FPOL1605-3 MONTHLY FINANCIAL REPORT - APRIL 2016 6

FPOL1605-4 FINAL APPROVAL OF LEASE FOR ENKEL - NAVAL STORES, CANTONMENT HILL 14

FPOL1605-5 APPROVAL REQUEST FOR OFFICER AND MAYOR ATTENDANCE AT RMW CONFERENCE IN BIRMINGHAM UK 23

FPOL1605-6 FREMANTLE ARTS CENTRE CURATOR INTERNATIONAL TRAVEL APPROVAL 26

FPOL1605-7 EXPOSURE TO BROADSPECTRUM LTD AND WILSON SECURITY PTY LTD 28

CONFIDENTIAL MATTERS 32

Summary Guide to Citizen Participation and Consultation 33

AGENDA ATTACHMENTS 1

FPOL1605-1 INFORMATION REPORT - MAY 2016 2

FPOL1605-2 WRITE OFF OF BAD AND DOUBTFUL DEBTS MAY 2016 48

FPOL1605-3 MONTHLY FINANCIAL REPORT - APRIL 2016 49

FPOL1605-4 FINAL APPROVAL OF LEASE FOR ENKEL - NAVAL STORES, CANTONMENT HILL 64

Agenda - Finance, Policy, Operations and Legislation Committee 18 May 2016

Page 1

REPORTS BY OFFICERS (COMMITTEE DELEGATION)

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

REPORTS BY OFFICERS (COUNCIL DECISION)

FPOL1605-1 INFORMATION REPORT - MAY 2016

Heading: Community Safety Working Group Minutes ECM Reference: 039/063 Author: Matthew Piggott, Manager Field Services Agenda Attachments: Working Group minutes 18 November 2015

Working Group minutes 16 December 2016 Working Group minutes 8 February 2016 Working Group minutes 14 March 2016 Working Group minutes 18 April 2016

In October 2015, Council received a report from the Community Safety Working Group and endorsed the Community Safety & Crime Prevention Plan – New Initiatives 2015/16. Officers have implemented the following initiatives to date:

A fourth Community Safety Officer has been employed to provide a greater surveillance presence and response capability in the CBD.

The CBD patrol roster has been expanded to meet community needs with officers patrolling the CBD and CBD fringe from 7.30am to 7.00pm weekdays, 8.30am to 7.00pm on weekends.

Rangers and Community Safety Officers are performing daily vehicular surveillance patrols in suburban areas from 7.00am to 5.00pm, 7 days per week.

A communication strategy was devised and media statements have been delivered expressing the City of Fremantle’s zero tolerance for criminal, anti-social and nuisance behaviour in the CBD.

997 community safety and crime prevention interventions were performed by officers during the first 4 months of 2016. 557 calls for assistance were received.

65% of interventions related to anti-social behaviour (220 instances), drinking alcohol in public places (47), unauthorised camping and trespass (82), aggressive and/or opportunistic begging (125), nuisance buskers (53) and theft (120).

The City of Fremantle has established a partnership with RUAH, St Patricks Community Care Centre and the Department of Child Protection and Family


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Services to conduct a Fremantle Registry Week in June 2016. This project will take a detailed snapshot of the state of homelessness in our community. We will be able to identify individuals affected by homelessness, get a better picture of root causes and the welfare services and support needed to assist them on their journey to independence and a better quality of life.

As part of the City’s Donate without doubt initiative, five spare change collection points were installed around the Fremantle CBD in February 2016.

In the first two months, the Fremantle community generously donated $1,145.85 into the Donate without doubt spare change collection points. The City of Fremantle has matched that amount dollar-for-dollar, to honor the commitment made by Mayor Dr. Brad Pettitt, and has made a donation of $2,291.70 to St Patrick’s Community Support Centre to assist the delivery of services which provide invaluable support to the homeless and socially disadvantaged members of our community.

Attached to this information report are copies of minutes from the meetings of the Community Safety Working Group. On behalf of the Community Safety Working Group, officers will present a report to Council in the second half of 2016 recommending adoption of a draft Community Safety & Crime Prevention Plan 2016-2020. Heading: Proposed Sale of 7 Quarry Street, Fremantle ECM Reference: 049/004 Author: Glen Dougall, Director City Business Agenda Attachments: Nil The City has received formal advice from Fremantle Park Investments Pty Ltd of its withdrawal from the contract to purchase 7 Quarry Street, Fremantle. The City will now consider options on the disposal of the site and forward a report to Council on options and process for consideration of future disposal.

OFFICER'S RECOMMENDATION

That the information report of the Finance, Policy, Operations and Legislation Committee agenda 18 May 2016 be received.


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FPOL1605-2 WRITE OFF OF BAD AND DOUBTFUL DEBTS MAY 2016

ECM Reference: 085/002; 085/003 Disclosure of Interest: Nil Meeting Date: 18 May 2016 Previous Item: SGS1511-14 of 18 November 2015 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Wayne Wright, Manager Business Support Decision Making Authority: Council Agenda Attachments: Debts for Write off May 2016 (Confidential under

separate cover)

EXECUTIVE SUMMARY

The $33,747.94 of debts listed is considered unrecoverable and have been submitted for approval to write off.

BACKGROUND

Where credit is extended to debtors, some debts can become unrecoverable due to a variety of circumstances. Under the Local Government Act 1961 (section 6.12(1) (c)) a local government may write off any amount of money.

COMMENT

The confidential attachment provides additional comment against each debt. The comments have been provided by relevant business unit officers and finance officers who maintain the sundry debtors control account. The values of debts listed are GST inclusive and if the debt is approved for write off any GST component is recoverable from the Australian Taxation Office. Any rate debts listed relate to government land leased from the City of Fremantle where the city as the rating authority has no lien over the land concerned. In instances where individuals have gone into bankruptcy or incorporated entities into liquidation, any future distribution that the city might receive from the liquidator will be credited to revenue at the time it is received. Any such distributions are only likely to be minor, as the debts are only submitted for approval to write off where it appears unlikely that any distribution will be received by the city.

RISK AND OTHER IMPLICATIONS

Financial

The budget implications can be addressed in two parts:-


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1. Cost of Credit Management. If an organisation does not have good credit management then it will have negative budgetary impacts as cash will not be collected for the sales of goods and services made. It should be noted that even with good credit management, bad debts can still be incurred, but they normally arise within an environment where the risk and reward factors have been balanced to try and achieve the best outcome for the organisation. It is a requirement for completing annual financial statements that any potential bad debts are provisioned for and that is a cost to the budget in the year in which the provision is made. 2. Cost to Budget of Writing off Bad Debts. Generally this is budget neutral as the city provisions for potential bad and unrecoverable debts and the city has been doing so for many years in accordance with accounting standards. As a consequence, approvals to write off bad debts will generally result in the cost being written back against the provision with no net impact to the current budget. Legal

Section 6.12 (1) (c) of the Local Government Act 1995 provides authority for the Council to write off outstanding monies. Operational

The invoice detail is generated by the relevant business unit who manage the service and provide the detail of client(s) to be invoiced. The Finance section generates the invoices from the information provided and sends out statements for outstanding accounts and maintains the Debtors Control Account. For most categories of debtors Finance also handles referral of debts to the debt collection agency. Organisational

Nil

STRATEGIC AND POLICY IMPLICATIONS

Nil

COMMUNITY ENGAGEMENT

Nil

CONCLUSION

It is considered the debts should be written off.

VOTING AND OTHER SPECIAL REQUIREMENTS

Absolute Majority Required


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That Council write off debts of $33,747.94 detailed below as they are considered unrecoverable:-

Debtor No Name Amount Business Unit

2014418 Fremantle Football Club $38.60 Commercial Property-12/13, 13/14

2014158

Australian Maritime Safety Authority

(AMSAA) $2,434.44 Commercial Property-2014/15

2090096

North Fremantle Bowls Tennis &

Community Centre Inc $3,452.88 Commercial Property-2006/07 to 2008/09

2090074 Fremantle Lawn Tennis Club Inc $3,472.02 Commercial Property 2012/13 to 2015/16

2090061 Dome Fremantle $18,156.50 Commercial Property 2004 - 2007

2011643 Severino Restaurant $973.44 Commercial Waste 2014/15

2010432 The Sushi In Freo $147.75 Commercial Waste 2015/16

2091629 Top Spot Lunch Bar $270.43 Commercial Waste 2015/16

2010345 Villa Roma Restaurant $884.20 Commercial Waste 2015/16

2091174 Corner Room $1,990.68 Commercial Waste 2014/15

2011052 Welcome Noodle House $924.00 Commercial Waste 2015/16

2090815 Jane Lawton $957.00 Moores Building Gallery Hire 2011

2092350 The Trustee for the Littlewood Family Trust $46.00 Meeting Place 2014/15

Total $33,747.94


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FPOL1605-3 MONTHLY FINANCIAL REPORT - APRIL 2016

ECM Reference: 087/002 Disclosure of Interest: Nil Meeting Date: 18 May 2016 Previous Item: FPOL1604-10 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Wayne Wright, Manager Business Support Decision Making Authority: Council Agenda Attachments: Statement of Comprehensive Income – 30 April 2016

Statement of Financial Activity by Nature and Type – 30 April 2016 Statement of Net Current Assets – 30 April 2016 Statement of Financial Position – 30 April 2016 Schedule of Accounts Paid – 30 April 2016 Investment Report – 30 April 2016 Debtors Outstanding Report – 30 April 2016 Payment Report (EFT & Cheque) (viewed electronically) - April 2016 Payment Report (Purchasing Cards) for March 2016 (viewed electronically) Payment Report (Purchasing Cards) for April 2016 (viewed electronically)

EXECUTIVE SUMMARY

This report provides an analysis of year to date financial performance and forecasts based on • Statement of Comprehensive Income; • Statement of Financial Activity; and • Statement of Financial Position An analysis of financial performance based on The Statement of Comprehensive Income (Attachment 1) forecasts an end of year Operating Surplus of $135,973 a favourable variance of $400,223.

BACKGROUND

The following comments are provided on the key elements of Council’s year to date financial performance as at 30 April 2016 and forecast to 30 June 2016.

1. Statement of Comprehensive Income (Attachment 1)

Actual Financial Performance to 30 April 2016

Actual operating income of $68.02M is $270,233 more than the year-to-date budgeted income of $67.75M (refer explanation within the report).


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Actual operating expenditure of $58.31M is $699,251 less than the year-to-date budgeted expenditure of $59.01M (refer explanation within the report).

Actual operating surplus of $9.72M is $969K more than the year-to-date budgeted operating surplus of $8.75M.

2. Capital Works

Actual capital works of $8.42M (excluding committed expenditure) is $3.70M less than the year-to-date budgeted capital works of $12.12M (refer explanation within report).

Total forecast capital expenditure of $13.61M is $3.73M less than the total amended capital expenditure of $17.33M.

COMMENT

Operating Income, Operating Expenditure and Capital Expenditure graphs provide a comparison of how forecast income/expenditure is tracking to budget and the previous financial year. Comments are provided on each graph regarding current year to date financial position. Operating Income (excluding profit on disposal of assets)

Note: Operating income includes: rates, service charges, operating grants,

subsides and contributions, fees and charges, interest earnings and other revenue. Non-operating (Capital Grant) income has been excluded for operating income.

Actual operating income of $68.02M is $270K greater than the year-to date

budgeted income of $67.75M.

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Prior Year Actuals 41.05m 44.12m 46.72m 49.58m 52.32m 55.30m 58.07m 60.87m 63.67m 66.42m 68.70m 71.77m

Currrent Budget 43.25m 45.76m 48.83m 51.45m 54.17m 56.76m 60.21m 62.63m 65.12m 67.75m 69.91m 71.79m

Current Year Forecast 43.25m 45.76m 48.83m 51.45m 54.17m 56.78m 59.99m 62.71m 65.39m 68.02m 70.09m 72.01m

40m

45m

50m

55m

60m

65m

70m

75m

Operating Income ($M)


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Total forecast operating income of $72.01M is $215K more than the total budgeted income of $71.79M.

Operating Expenditure (excluding loss on disposal of assets)

Note: Loss on sale of assets has been excluded from the Operating expenditure. Actual operating expenditure of $58.31M is $699K less than the year-to date

budgeted expenditure of $59.01M. Total forecast operating expenditure of $71.87M is $185K less than the total

budgeted expenditure of $72.06M.





0m

10m

20m

30m

40m

50m

60m

70m

80m

Operating Expenditure ( $m)


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Capital Expenditure The following graph highlights that capital expenditure to date is significantly under budget.

Notes: August 2014 Purchase of New Depot land for $7.8M

Note: Actual capital expenditure of $8.42M is $3.70M less than the year-to date budgeted expenditure of $12.12M.

Total forecast capital expenditure of $13.61M is $3.73M less than the total

budgeted expenditure of $17.33M. MAJOR VARIANCE ANALYSIS At its meeting on 29 July 2015 (Item SGS1507-9 refers), Council adopted nature and type as the preferred reporting format with 2.5% and $300 000 threshold as the levels for explanation of variances. The following is an explanation of significant Operating and Capital variances identified in the Statement of Comprehensive Income and Statement of Financial Activity:

Major Variance Items YTD Actual to Budget Variance

Employee Cost Employee costs are $624K under year to date budget mainly due to unfilled positions in a number of areas. Agency labour (included under Materials and Contracts) is $81K over year to date budget and decreases year to date employment cost savings to $543K.

Favourable $624K

Under budget 2.12%





0m

5m

10m

15m

20m

25m

Capital Expenditure ($m)


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Capital Works Actual capital expenditure of $8.416M is $3.70M less than the year-to date budgeted expenditure of $12.116M. Actual capital expenditure of $925K on freehold land and buildings is $1.704M (64.82%) less than the year-to date budgeted capital expenditure of $2.628M mainly due to the major work for the following two capital projects are carried forward to the next financial year:

$862K budgeted capital expenditure on external conservation works to Fremantle Town Hall building is carried forward to the next financial year and the total capital expenditure will be $2.282M.

$741K budgeted capital expenditure on refurbishing Cantonment Hill Naval Store to heritage standards and public access requirements is carried forward to the next financial year with the total amount of budget unchanged.

Actual capital expenditure of $2.168M on land and buildings on reserves is $616K (22.11%) less than the year-to date budgeted capital expenditure of $2.784M.

The capital expenditure on the Old Fire Station Works and the Hilton Community Centre are $233K and $194K under budget respectively at this stage, but will be completed in this financial year.

The capital expenditure on Fremantle Mens Shed is $391K under budget at this stage and it is forecasted that $160K capital expenditure on this project will be carried forward to the next financial year.

Actual capital expenditure of $1.009M on infrastructure assets - parks is $584K (36.67%) less than the year-to date budgeted capital expenditure of $1.594M.

Reclassification of year to date expenditure of $166K on soft landscaping from capital expenditure to operating expenditure.

South Beach full basketball court project of $165K will be carried forward to 2016/17FY.

Esplanade bore replacement project of $188K will be carried forward to 2016/17FY.

Esplanade Plaza half basketball court project of $55K will be carried forward to 2016/17FY.

Actual capital expenditure of $222K on purchase of vehicle and heavy plants is $365K (62.20%) less than the year-to date budgeted capital expenditure of $587K mainly due to the delay of the heavy vehicle replacement program to May 2016. The old rear loader and electric workman buggy will be disposed once the new vehicles are operational.

Unfavourable $3.70M

Under budget 30.53%


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Non-Operating Revenue Forecast proceeds from disposal of assets of $700,885 are $31.96M less than the budgeted property sales income of $32.66M. Transfer to reserves related to these properties sales have decreased by $31.7M.

$29.15M decrease on disposal proceeds is related to Kings Square Precinct Redevelopment project. Given that Council granted the contract extension request from Sirona for a period of six months from 9 May 2016 to 9 November 2016 (C1604-4), the budgeted sales of a few properties related to Kings Square Precinct Redevelopment project will be deferred to the next financial year.

$2.55M decrease on disposal proceeds is related to Sale of 7 Quarry Street, which will be settled in the next financial year

Cash Investments The graph below summarise the maturity profile of the City’s investments at market value as at 30 April 2016.

The chart below is showing the cash investments at the carbon support/non-support position financial institutions at 30 April 2016. There are $37.4M investments with financial institutions listed as not supporting unlocking of carbon, representing 75% of the total investments.

at call 30 days 60 days 90 days 150 days 210 days 330 days

Sum of Amount $6.7M $8.5M $15.0M $13.5M $2.0M $.5M $3.0M

$.0M

$2.0M

$4.0M

$6.0M

$8.0M

$10.0M

$12.0M

$14.0M

$16.0M


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Note: Reference for financial institutions not supporting the unlocking of carbon is (http://www.marketforces.org.au/).


Financial

This report is provided to enable Council to assess how revenue and expenditure is tracking against the budget. It is also provided to identify any budget issues which Council should be informed of. Legal

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

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

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

This report is provided to Council to assess operational issues affecting the implementation of projects and activities in the 2015/16 adopted budget.

AMP, $5.2M, 11%

ANZ, $5.4M, 11% BOQ,

$9.0M, 18%

ME Bank, $2.0M, 4% NAB, $1.3M, 3%

Rural Bank, $7.0M, 14%

Beyond Bank, $1.5M, 3%

Suncorp,

$8.4M, 17%

Bendigo & Adelaide , $7.5M,

15%

Auswide, $2.0M, 4%

Investments at carbon non-

support financial institutions,

$37.4M, 75%

Counterparty Exposure

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


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Organisational

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


Nil


Nil

CONCLUSION

The financial statements as attached for further review of payments made during April 2016, plus cash deposits at the end of April 2016. Also attached is the year to date statement of comprehensive income, statement of financial activity, statement of net current assets and statement of financial position for information.




1. The City of Fremantle Financial Report including the Statement of

Comprehensive Income, Statement of Financial Activity, Statement of Financial Position and Statement of Net Current Assets for the period ended 30 April is received.

2. Council receives the payments authorised under delegated authority and

detailed in the list of invoices for April 2016, presented as per the summaries set out in the attached schedules and include creditors that have been paid in accordance with the Local Government (Financial Management) Regulations 1996.


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FPOL1605-4 FINAL APPROVAL OF LEASE FOR ENKEL - NAVAL STORES, CANTONMENT HILL

ECM Reference: 3238331 Disclosure of Interest: Nil Meeting Date: 25 May 2016 Previous Item: SGS1504-6; SGS1506-10; FPOL1603-03 Responsible Officer: Tom Griffiths, Manager Economic Development and

Marketing Actioning Officer: Nadine Weller, Property Services Administrator Decision Making Authority: Council Agenda Attachments: Lease – Naval Stores, 141 Queen Victoria Street,

Fremantle (confidential under separate cover) ENKEL at the Naval Stores Proposal (April 2015) ENKEL update to Council 17 March 2016 ENKEL Letter: preferred partner Tim Hemsley (Climbing Wall) Market evidence for rent – Naval Stores

EXECUTIVE SUMMARY

The purpose of this item is for Council to consider approval of the lease between ENKEL and City of Fremantle at the building known as the Naval Stores, at 141 Queen Victoria Street, Fremantle (Cantonment Hill). The commencement of the lease is subject to the completion of the City’s remedial works on the Naval Stores and approval of a Development Application for ENKEL’s fit out and other building works. Under the terms of the lease, ENKEL are required to submit their Development Application within sixty days of the City finalising plans for its works on the Naval Stores. This report does not include an overall project update on the Cantonment Hill project. That update is expected to be presented at the 17 June 2016 Council meeting.

BACKGROUND

At the Ordinary Council Meeting 16 October 2013, Council resolved the following; That Council:

1. Endorses calling for expressions of interest through an EOI with input from the Cantonment Hill Working Group in relation to public and or commercial activities at the Cantonment Hill site, including the signal station, that could provide activation and a degree of caretaker presence in the short to medium term without obstructing the larger master planning and implementation process.


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2. Authorises interim actions including reconnection of services at the signal station, the up-lighting of the building and mural artwork

3. Authorises additional funds of $150 000 to be transferred from the Cantonment Hill Reserve for the interim actions and to support the activation of the ground floor of the signal station and naval store

4. Lists progression of the implementation of the Cantonment Hill Master Plan as a high priority in future budgets.

5. Delays changing the Cantonment Hill Working Group project scope, pending the Expression of Interest process outcomes.

An expression of interest (EOI) process calling for submissions to activate the Cantonment Hill Reserve was advertised, closing on Monday 26 May 2014. Seven expressions of interest were received with the majority focused on use of the Naval Stores. The City received a total of six expressions of interest specifically for the Naval Stores. Of those, two applicants were recognised as potential head Lessees with a model that includes other smaller operators as potential sub Lessees. The two suitable head Lessee candidates were Fremantle Foundations acting on behalf of the Circus School, and ENKEL. At the Ordinary Council Meeting on 17 June 2015 Council resolved to approve:

1. City Officers to provide an estimate of the cost of remedial works to the Naval Stores building and present them for review by the Cantonment Hill Activation Working Group and then to Council for approval.

2. An offer to ENKEL valid for a period of 90 days to complete due diligence, without a commitment to a long term lease at this stage, subject to point 1 of this recommendation.

3. City Officers to prepare and negotiate a Lease between the City of Fremantle and ENKEL subject to points 1 & 2 of this recommendation, for review by the Cantonment Hill Working Group, prior to being presented to Council for approval”

At its meeting on 23 March 2016 Council resolved to approve the essential terms and conditions, and performance criteria for a lease between City of Fremantle and ENKEL for the Naval Stores. Council resolved that a copy of the draft lease to be brought back to Ordinary Meeting of Council on 25 May 2016.

COMMENT

Since Council approved the essential terms and conditions, and performance criteria of a lease with ENKEL on 23 March 2016, Officers have progressed with lease negotiations based on the Council special conditions contained with that resolution. All conditions requested by Council have been included in the lease. A change has been made to one performance criteria (Financial 4b) in order to accommodate the climbing wall and café / restaurant. The lease attached is before Council for approval. The following table summarises the special conditions requested by Council on 23 March 2016 and the part of the lease that addresses those special conditions.


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Council special condition from OCM 23 March 2016 (FPOL1603-3 resolution)

Provisions within lease and additional Officer comments

Special condition A1. Performance criteria will be an annexure to the Lease.

Performance criteria have been included as Annexure 2 within the lease and are also included later in this report.

Special condition A2. The Licensee will be required to report against the performance criteria annually.

Lease item 9: Additional terms and conditions 1. Performance Criteria. (3) “The Lessee will be required to report against the performance criteria annually…”

Special condition A3. Performance management committee. Special condition A4. If required, meetings may be increased to cater to any “underperformance” issues relating to the delivery of the performance criteria.

Lease item 9: Additional terms and conditions 1. Performance Criteria. (6) “The parties shall establish a performance management committee …” “The Committee shall meet quarterly in the first year of the Term, biannually in the second year of the Term and annually thereafter …” The following four Officers will represent the City on the performance management committee: Manager Economic Development and Marketing; Manager City Assets; Manager Strategic Projects; and Property Services Administrator.

Special condition A5. If the Licensee does not adhere to the performance criteria this will be a breach against the Lease and the Licensee will be issued with a Notice of Default. Special condition A6. If a total of five (5) Notices of Default occur against the Lease, regardless of the reasons for the Notice of Default, the Lease can be terminated.

Lease item 9: Additional terms and conditions 1. Performance Criteria. (4) “If the Lessee fails to comply with any Performance Criteria the Lessor may issue a Notice of Breach to the Licensee. The issuance of a total of five (5) Notices of Breach in relation to the Performance Criteria by the Lessor to the Lessee shall constitute an Event of Default …”

Special condition A7. The Lease will include a subletting clause which will allow the Lessee to enter into subletting arrangements subject to Lessor approval.

Lease item 9: Additional terms and conditions 2. Subletting of Premises. (1) “Without detracting from clause 14 and the requirement for Lessor’s consent contained therein and subject to Performance Criteria 4(b), the parties acknowledge that the combined rent received by the Lessee under subleases of the Premise may exceed the Rent payable to the Lessor, provided that the sublease rents are within


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market range and the permitted use under any sublease is consistent with this Lease.” The intent of this lease item is to allow ENKEL to improve the financial sustainability of the project and to cover the costs of managing the building’s sub-tenants. Each sub-lease agreement will need to be approved by the City’s Chief Executive Officer. ENKEL intend to offer a sub-lease to Mr Tim Hemsley (Climbing Wall) who has continued to express an interest in being involved in the project. A copy of ENKEL’s letter notifying Mr Hemsley that he is a preferred partner is attached.

Special condition A8. It is acknowledged by the Lessor that the Lessee is a stakeholder in regards to works to the surrounding Open Space Reserve (Cantonment Hill) but is not an approving authority.

Lease item 9: Additional terms and conditions 3. Cantonment Hill “It is acknowledged by the Lessor that the Lessee is a stakeholder in regards to future works to the surrounding Open Space Reserve (Cantonment Hill) but is not an approving authority. The Lessee may make requests regarding future plans, use of projects relating to works planned by the Lessor, but the Lessor reserves the right to deny any requests. The Lessee acknowledges that this Lease is for the Premises only” This clause aims to ensure that ENKEL’s expectations are managed regarding their input into the works at Cantonment Hill not including the Naval Stores. They remain a key stakeholder.

Essential lease terms

Lease area: 1,393 square metres

The leased area is 1,393 square metres. Current plans show public toilets within the lease area. If such plans are finalised, the area required for public toilets will need to be subtracted from that 1,393 square metre area. Rent will be adjusted accordingly based on the updated square metre allocation (e.g. 1,393sqm minus 60qm for public toilets = 1,333sqm lease area).

Lease term: 5 + 5 + 5 + 5 years subject to

The initial lease term is for five years plus three further terms of five years (ENKEL’s option) subject to satisfactory


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satisfactory performance as judged by performance criteria below

performance.

Rent: $35 per square metre per annum

Rent has been based on an independent market valuation for “community use” which has been determined as $35m2 pa + GST. The market valuation was based on “community use” of the building not a normal “commercial” use, based on advice from the valuer when taking into account the types of diverse activities that will occur within the building. “Commercial” use is typically used for traditional office environments in central business districts and was considered to be inappropriate for this valuation and the diverse activities within the building. Market comparisons for “community use” are included as an attachment to this report. Rent will be stepped in gradually over the first term of the lease with the aim of reaching market rate (of $35 per sqm) for community use at the end of the five years. Based on 1,393 square metres of leased area, the annual rent for the initial five year term will be: Year 1: Nil (0% of market rate for “community use”) Year 2: $20,000 (41%) Year 3: $30,000 (62%) Year 4: $40,000 (82%) Year 5: $48,755 (100%) This stepped approach is consistent with other City of Fremantle leases and takes into account the likely capital investment made by the tenant (ENKEL) in the property.

Consumer Price Index (CPI) reviews

Inflation or CPI reviews will occur annually from the commencement of the 1st further term.

Rental market reviews Rent reviews will occur at the commencement of 1st, 2nd and 3rd additional lease terms. Market valuation will be based on “community use” and will not include any improvements by the Lessee (i.e. unimproved value).

Permitted Use Hospitality (café); industrial working space, community venue and hire, office, climbing wall.

Outgoings: to be paid by ENKEL

Outgoings to be paid by ENKEL include but are not limited to: Water Rates and Usage; Electricity Usage; Council Rates and Tax; Land Tax; Building Insurance; and General Maintenance.


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Condition Precedent

This lease is subject to and conditional upon the Lessee obtaining development approval. The City’s Infrastructure and Project Delivery Directorate are currently working with ENKEL to determine final detailed design requirements for the Naval Stores building. Those discussions are expected to be completed within weeks.

Performance criteria Performance criteria were informed by Council’s resolution on 23 March 2016 and are based on ENKEL’s response to Council’s call for expressions of interest, including its proposal and business plan. Performance criteria are categorised as: Activation; Public access, use and interaction; Capacity; and Financial. Details of the performance criteria are below: 1. Activation

a. The Naval Store will operate at least 5 days a week and may also operate evenings

b. A range of creative enterprises and activities will occur on site, including but not

limited to: (i) Learning pods: areas for local artists and entrepreneurs to include team

and conference rooms (ii) Fab Lab: fabrication lab for prototyping and education to teach about

new technologies and maker movement (iii) Co-creation and ideation workshops: share insights and skills with

access to resources for the development of ideas and initiation of projects.

c. Complimentary commercial activity may also occur, subject to normal planning

approval processes and approval of the Lessor, including a cafe, climbing wall, and

d. Public events and activities open to members and non-members will be held

regularly (monthly) by tenants or venue hirers 2. Public access, use and interaction

a. Membership of ENKEL shall be open to the public

b. Space is to be made available to be hired for public use

c. Hire fees for event space must include a non-profit / community rate for eligible hirers, which is lower than the standard rate.

3. Capacity

a. The Lessee shall monitor membership capacity and report on level of building use in the following categories:

(i) Full ENKEL membership (ii) Casual ENKEL membership


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(iii) General public hire and attendance - not relating to visitors to commercial elements (café, climbing wall)

4. Financial a. Annual profit and loss statements of the Lessee are to be prepared by an

independent auditor / accountant

b. As the rental valuation of the Premises is based on “community use”, no more than 40% of the lettable area of the Premises can be sub-leased by the Lessee for commercial uses at (commercial) market rate.

This final performance criterion has been adjusted from the Council resolution of 30% to 40%. This increase is necessary to accommodate the inclusion of the climbing wall and café / restaurant which total almost 40% of the space alone.


Financial

Rent will be stepped in gradually over the first term of the lease with the aim to reach market rate for community use (of $35 per sqm) at the end of the five years. Based on 1,393 square metres of leased area, the annual rent for the initial five year term will be:

Year 1: Nil (0%) Year 2: $20,000 (41%) Year 3: $30,000 (62%) Year 4: $40,000 (82%) Year 5: $48,755 (100%)

This stepped approach is consistent with other Council leases (e.g. Fly by Night Club). At the conclusion of the initial five year term, a market rental review will be undertaken to determine the market rent for the start of the subsequent five year team based on “community use”. Legal

The lease will be in line with the requirements under the Commercial Tenancy (Retail) Act 1985 and Local Government Act 1995. Operational

The following four Officers will represent the City on the performance management committee: Manager Economic Development and Marketing; Manager City Assets; Manager Strategic Projects; and Property Services Administrator. The Committee and ENKEL will meet quarterly in the first year of the Term, biannually in the second year of the Term and annually thereafter. Dedicated tenant parking is not provided at the Naval Stores. However, sufficient parking is available at the Beach Street Car Park (500 metres walk) and ENKEL are strongly encouraged to use this car park, although this is not legally enforceable. Space


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will be available outside the Naval Stores for short-term drop-offs, universal access drop-offs and deliveries, but not for long-term parking. Space for externally accessible public toilets is being planned for within the Naval Stores. Cleaning and maintenance will by the City of Fremantle’s responsibility – ENKEL are expected to assist with opening and closing the toilets, and reporting any problems to City Officers. Full operational details have yet to be finalised but it is expected that opening hours for the public toilets are expected to be in line with ENKEL’s opening hours as a minimum. Organisational

Should Council approve the attached lease, ENKEL will have sixty days to submit a development application for the Naval Stores after the City of Fremantle finalises its plans for works on the building. Should ENKEL fail to meet this deadline, a report will be presented to Council for consideration of options. The City will manage and pay for costs associated with ensuring the building is publically assessable and compliant. ENKEL will manage and pay for costs associated with its business. A broader project update report for the Cantonment Hill project is due to be presented to Council at the 17 June 2016 meeting of Council by Manager Infrastructure Projects.


The proposed lease with ENKEL forms part of the Cantonment Hill project identified under the “Northern Gateway” section of the Council’s Freo 2029 transformational moves document. Support for this project aligns with the goals of the City’s Economic Development Strategy 2015-2020, specifically the ‘knowledge economy and the rise of the creative class’ and ‘innovation and technology’ sections.


Community engagement has been undertaken to date on the overall Cantonment Hill project.

CONCLUSION

Due diligence has been completed to ensure that it is reasonable for the City to enter into a legal agreement with ENKEL. Due diligence involved the following:

1. Review of the ENKEL business plan 2. Review of ENKEL’s financial capacity to deliver their portion of the project

including viewing of financial statements 3. Review that ENKEL are a registered organisation with no outstanding debts 4. Consideration of ENKEL’s draft building plans and their alignment with the City’s

plans for the Naval Stores and the broader Cantonment Hill project.


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Officers are comfortable with ENKEL’s financial and technical capacity to deliver the project as proposed. The project is expected to deliver the strong level of activation for the area requested by Council and will support a range of creative enterprises and related activities. Complementary commercial activity will also occur on site in the form of a climbing wall and café offering. Additional commercial activities are permitted within the building with the approval of the City’s Chief Executive Officer – such uses are required to be in line with ENKEL’s successful proposal and the overall plan for Cantonment Hill. A performance management committee comprised of senior officers from the City will be established to ensure the project delivers the outcomes expected by Council and the Fremantle community. Performance criteria require that public events and activities must occur and be open to members and non-members of ENKEL. Public toilets are provided for within the Naval Stores, opening hours have yet to be finalised but are expected to be consistent with other public toilets within Fremantle. Parking at Beach Street car park is considered to be sufficient to meet ENKEL’s operational needs. Historically, this car park has been significantly underutilised. Use of the Tuckfield Street car park by ENKEL has been discouraged. The selection of ENKEL as a long-term tenant for the Naval Stores is expected to deliver the range of outcomes expected by Council and the Fremantle community. In addition to the considerable investment from Council in the overall Cantonment Hill project, ENKEL are expected to invest considerable financial resources into the project. ENKEL have submitted a draft of their internal designs to allow for the City’s detailed design to be finalised within weeks.


Simple majority required.


That Council:

1. Approve the attached lease (including annexures) between City of Fremantle and ENKEL Collective for the Naval Stores, Fremantle.

2. Approve that due diligence has been completed and authorise the release of funds quarantined at the 25 November 2015 Council meeting for works to the value of $482,000.


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FPOL1605-5 APPROVAL REQUEST FOR OFFICER AND MAYOR ATTENDANCE AT RMW CONFERENCE IN BIRMINGHAM UK

ECM Reference: 038/012 Disclosure of Interest: Officer preparing report is seeking approval to attend

event Meeting Date: FPOL 18 May, 2016, Council 25 May, 2016. Previous Item: Nil Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Glen Dougall, Director City Business Decision Making Authority: Council Agenda Attachments: Nil

EXECUTIVE SUMMARY

To consider approval for the Mayor and Director City Business to attend the Regional Waste Management (RMW) Conference at Birmingham in the United Kingdom in September, 2016, as part of a Southern Metropolitan Regional Council delegation. The attendance at the conference will be book ended with visits to regional waste facilities resulting in several site visits with the conference.

BACKGROUND

The Southern Metropolitan Regional Council has approved the attendance of SMRC officers and elected members attending the Regional Waste Management Conference in Birmingham, England between 13th and 15th September, 2016. As part of the trip the SMRC is coordinating site visits to regional waste facilities in the United Kingdom immediately prior to and after the conference. The cost of the attendance of elected members on the SMRC Council will be met by the SMRC.

COMMENT

The SMRC has invited other elected members and regional group officers to attend the conference and site visits as part of the SMRC tour. The costs of regional officers and elected members attending the tour will be met by the individual council themselves. The purpose of the tour is to consider the elements of the recently adopted Strategic Waste Strategy by the SMRC, which was supported by the City of Fremantle. The RMW Conference is branded as; “RWM is Europe's leading event for resource management professionals, a three day event that brings together the entire industry to help influence the way we think about and manage waste. The show attracts more than 700 brands and over 13,000 visitors, championing innovation by promoting achievable strategies, case studies and quality networking opportunities.” (source: RMW Event Website).


Page 24

It covers areas including recycling, waste to energy, logistics and the circular economy. It is one of the larger European waste management events and is expected to attract up to 13,000 attendances. The City of Fremantle will be represented by Cr Doug Thompson as part of the SMRC tour, there is an opportunity for a City of Fremantle Officer to gain insight into the industry benchmarks being explored at the conference and the tour of waste venues to assess the processes being undertaken in Europe. This tour would provide better first-hand understanding of the strategic direction outcomes being sought through the recently adopted Waste Management Strategy by the SMRC. The Director City Business is a representative for the City of Fremantle on the SMRC Regional Executive Group. The Mayor has advised he is planning to travel to Europe around this time to attend the 20th anniversary of the Sister City relationship with Funchal in Portugal, subject to council approval and providing opportunity for him to also attend the conference and the facilities with the group. The Mayor has indicated if the opportunity arises he would likely attend the conference.


Financial

It is estimated that return flights to the United Kingdom will cost approximately $2,100 and accommodation for the week at a venue adjacent to the conference venue will be approximately $1,500 for the week. If council approve the attendance flights and accommodation will be acquired as soon as possible to ensure lowest costs possible are achieved. Legal

Nil Operational

The attendance to the conference and associated site visits will allow a greater level of understanding of emerging issues associated with the Waste Management Strategy for the City of Fremantle. Attendance by an officer would provide support to the elected member attending on behalf of the SMRC. It is anticipated the travelling party would depart Perth on Saturday 10th September and depart the United Kingdom on Saturday 17th September. Organisational

City of Fremantle policy is for Council to decide on international travel requests.


Attendance at the conference would provide insight into the industry benchmarks being explored at the conference and the tour of waste venues to assess the processes being undertaken in Europe.


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Nil.

CONCLUSION

Recommend approval for the Director of City Business to attend the RMW Conference tour and associated site visits with the planned in the United Kingdom with the Southern Metropolitan Regional Council tour from 10th to 17th September, 2016.


Simple Majority Required


Council approve the attendance by the Director of City Business, and the Mayor if scheduling permits, to the RMW Conference and associated waste facility site visits with the Southern Metropolitan Regional Council planned tour in the United Kingdom between 10th and 17th September, 2016, as a representative of the City of Fremantle.


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FPOL1605-6 FREMANTLE ARTS CENTRE CURATOR INTERNATIONAL TRAVEL APPROVAL

ECM Reference: 153/001 Disclosure of Interest: Nil Meeting Date: 18 May 2016 Previous Item: Nil Responsible Officer: Marisa Spaziani, Director Community Development Actioning Officer: Pete Stone, Manager Arts and Culture Decision Making Authority: Council Agenda Attachments: Nil

EXECUTIVE SUMMARY

Approval is sought for the Fremantle Arts Centre Curator, Ric Spencer, to travel to Singapore to inspect the major solo exhibition by acclaimed Fremantle-Singaporean artist, Matthew Ngui to be held at Fremantle Arts Centre in July 2016. The purpose of this trip is to inspect the exhibition in detail to enable the show to be reconfigured and redesigned so it can be successfully shown at the Fremantle Arts Centre.

BACKGROUND

Matthew Ngui is an internationally recognised artist whom has exhibited in several biennales and has also curated the last two Singapore biennales. Matthew Ngui now calls both Singapore and Fremantle home. He has not shown in a major solo show in Western Australia since 2008. This exhibition will make a significant cultural contribution to Western Australia showing new work by Ngui which has never been shown in Australia before and is a significant responsibility for the Fremantle Arts Centre. Therefore, it is important that the Curator views the exhibition at the Singapore Art Museum where it has premiered to understand its composition, layout and how this will best work. The exhibition is a complex integration of sculptural and text installation, cameras and a video viewing room which will have to be reconfigured to work across five galleries at the Fremantle Arts Centre. The proposed May/June 2016 itinerary includes: Day 1: fly to Singapore Day 2: visit Singapore Art Museum to see Ngui’s work and visit other galleries Day 3: visit other galleries, fly to Perth The total cost of $1,600 is for return airfares, plus two night’s accommodation and a daily per diem of $100.


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COMMENT

This exhibition is a continuation of the Fremantle Arts Centre’s engagement with the international region and follows on from recent shows from India and Bali. In addition, a major part of the grant funding from the State Government comes with the requirement that the Fremantle Arts Centre continue to engage with international artists. It is routine professional practice in the visual arts sector for a curator to inspect an upcoming significant or complex exhibition on show at another gallery to enable the show to be successfully reconfigured.


Financial

Nil – Travel within existing operational budget. Legal

Nil Operational

Nil Organisational

Nil


Strategic Plan: a city that attracts diverse, original arts and artists, culture and events.


Nil

CONCLUSION

Nil




Council approve Arts Centre Curator travel to Singapore for three nights at the cost of approximately $1,600, to inspect Matthew Ngui exhibition in May/June.


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FPOL1605-7 EXPOSURE TO BROADSPECTRUM LTD AND WILSON SECURITY PTY LTD

ECM Reference: 135/005 Disclosure of Interest: Nil Meeting Date: 25 May 2016 Previous Item: NoM1602-1 Responsible Officer: Glen Dougall, Director City Business Actioning Officer: Kevin Porter, Senior Contracts and Procurement Officer Decision Making Authority: Council Agenda Attachments: Nil

EXECUTIVE SUMMARY

The purpose of this report is for Council to consider the recommendations for appropriate action in light of the findings by Officers regarding Broadspectrum and Wilson Security.

BACKGROUND

At the Ordinary Meeting of Council on 24 February 2016, Council considered how it may respond to community sentiment in relation to the “No Business In Abuse” (NBIA) campaign. The campaign, being promoted by Community Action Group ‘Get Up’ is promoting organisations to consider a policy of not entering into commercial agreements for procurement of goods or services with organisations that provide support to facilities where human rights abuse may occur, such as detention centres. In particular council considered implications with the company Broadspectrum and their associated entities which may have commercial agreements with the City. At this meeting Council resolved the City to undertake a report mapping the City of Fremantle’s exposure to Broadspectrum and its associated entities. The report is to include:

i. A list of current contracts and investments with Broadspectrum and Wilson Security;

ii. The possibility of future contracts and investments with Broadspectrum and Wilson Security;

iii. The possibility and legality of the City excluding Broadspectrum and Wilson Security;

iv. Recommendations to Council for appropriate action in relation to the above.


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COMMENT

At the request of Council, the Senior Contracts & Procurement Officer undertook a desktop review of Council’s involvement with Broadspectrum Ltd and Wilson Security Pty Ltd. Investments in Wilson Security and Broadspectrum The City does not have any financial investments in Wilson Security as it is not a listed company. The City does not have any financial investments in Broadspectrum. Current contracts with Broadspectrum and Wilson Security The City has no contracts with Broadspectrum Ltd. Wilson Security Currently, the City has a Contract with Wilson Security Pty Ltd to provide security patrols on behalf of the City. Since 2009 the cost of these services has been approximately $620,000. In 2015, the City issued tender WFCC21/15 – Supply of Security Patrols. This was awarded to Wilson Security Pty Ltd for the sum of $78,383. This was 1/3rd the cost of the second placed tenderer for the same services. This contract will finish on 22nd August 2016. Possible future contracts with Broadspectrum and Wilson Security Broadspectrum Given that Broadspectrum provide logistics & facilities management, operations and maintenance management, consulting, well servicing and construction services, it is unlikely that the Council would engage Broadspectrum to undertake Contract work for the City, at this time. However, if the Kings Square redevelopment project goes ahead, Broadspectrum may bid for construction on the site. Wilson Security The City will need to go to tender for Security Services in the 2nd half of the current financial year. It is considered likely that Wilson Security will provide a tender for the provision of these services. It should also be noted that Wilson Security are a member of the WALGA Preferred Supplier Panel for Security Systems and Services and could be engaged using the preferred supply agreement. The legality of excluding Broadspectrum and Wilson Security from City Contracts The exclusion of Broadspectrum or Wilson Security from tendering or contracting with the City for the provision of goods or services may be deemed ‘anti-competitive’ and be in breach of Commonwealth Legislation. At the time of this Report legal advice had been sought from an external firm of Commercial and Local Government Legal Specialists and the outcome of this discussion was not yet available.


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The Local Government (Functions & General) Regulations 1996 require Local Governments to assess responses as ‘best value for money’. In the past Wilson Security have provided ‘best value for money’ on the provision of specific services to the City. By excluding Wilson Security from tendering, the City may be unable to achieve the requirements of the Regulations in achieving a ‘best value for money’ outcome. This may be a breach of the Regulations and would require further investigation regarding the possible outcomes of any breach. However, Clause 1.3 (3) of the Act, clearly commits a Local Government to: "use its best endeavours to meet the needs of current and future generations through an integration of environmental protection, social advancement and economic prosperity” Clearly, encouraging businesses to become more ethical in their approach to society in general and particularly the more under represented, economically marginalised and those fleeing persecution, fulfils the commitment to improving social advancement and economic prosperity.


Financial

The risk remains in the Council not achieving the ‘best value for money’ outcome, by excluding a lowest placed tendered offer. Legal

Excluding specific organisations from tendering may break Competition Law and be deemed as anti-competitive. Legal clarification has been sought. It is a requirement of the Local Government (Functions & General) Regulations 1996 that the City seek ‘value for money’ responses for tenders and/or contracts. By excluding certain suppliers the City may not achieve this requirement. Arguably the City may be in breach of legislative requirements. On the other hand the City is achieving its obligations under Clause 1.3 (3) of the Act and meeting the needs of current and future generations by encouraging environmental protection, social advancement and economic prosperity. Operational

Excluding suppliers from contracting with the City may result in a loss of knowledge and an impairment in the quality and quantity of services provided by the City. Organisational

Nil


It would be prudent for any potential restrictions on purchasing and contracting engagement to be best served by implementing a specific Council Policy based on the principles of the ‘No Business in Abuse’ strategy.


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This would then determine the City’s relationships and dealings with current and potential suppliers, which would then be reflected in the detail of the City’s Purchasing Policy. This ‘top down’ approach would provide a level of transparency, openness and consistency that may otherwise be absent when determining business dealings and procurement activity.


Nil

CONCLUSION

The City’s financial exposure to Broadspectrum and Wilson Security is minimal. However, the reputational risk to Council is considered higher, given the broad community interest in the principles of ‘No Business in Abuse’. The ability to exclude organisations wishing to bid to supply goods or services to the City has not been tested. The Local Government Act 1995 and the Local Government (Functions & General) Regulations 1996 are silent on the ability of Local Governments to exclude specific businesses from bidding for Local Government contracts and further legal advice will need to be sought on this issue. Council will need to consider whether the assessment of Broadspectrum as an organisation in contravention of the principles of NBIA is to be applied retrospectively due to the recent announcement by the Government of Papua New Guinea that the Manus Island detention centre is to close and the likely acquisition of Broadspectrum by Ferrovial, who have publically stated their intention not to bid for future contracts operating offshore detention facilities.


Simple Majority Required


Council:

1. Modify the Procurement Policy to include the principles of ‘No Business in Abuse’,

2. Bring the draft amendment for ‘No Business in Abuse’ in the Procurement Policy back to council for consideration, and

3. Allow current contract(s) with organisations considered to be in conflict with the No Business in Abuse principles to lapse at the end of their natural term.


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CONFIDENTIAL MATTERS

Nil.


Page 33

SUMMARY GUIDE TO CITIZEN PARTICIPATION AND CONSULTATION

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

How consultative processes work at the City of Fremantle

The City’s decision makers 1.

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

Various participation opportunities 2.

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

Objective processes also used 3.

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

All decisions are made by Council or the CEO 4.

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

Precinct focus is primarily local, but also city-wide

5.

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

All input is of equal value 6.

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

Decisions will not necessarily reflect the majority view received

7.

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


Page 34


of budgetary considerations. All consultations will clearly outline from the outset any constraints or limitations associated with the issue.

Decisions made for the overall good of Fremantle

8.

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

Diversity of view on most issues 9.

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

City officers must be impartial 10.

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

City officers must follow policy and procedures

11.

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


Page 35


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

12.

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

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

13.

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

Citizens are entitled to know how their input has been assessed

14.

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

Reasons for decisions must be transparent 15.

Decision-makers must provide the reasons for their decisions.

Decisions posted on the City’s website 16.

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


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

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

been delegated.

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

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

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

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

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

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

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

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

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

protecting public safety.

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

h) such other matters as may be prescribed.

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

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