ordinary council...no responsibility whatsoever is implied or accepted by the shire of augusta...

Ordinary Council

MINUTES

FOR THE MEETING HELD WEDNESDAY, 22 JULY 2020

IN COUNCIL CHAMBERS, WALLCLIFFE ROAD, MARGARET RIVER

COMMENCING AT 5:30PM

SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 22 JULY 2020

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Meeting Notice Dear Councillor I advise that an Ordinary Council Meeting of the Shire of Augusta Margaret River will be held in Council Chambers, Wallcliffe Road, Margaret River on Wednesday 22 July 2020, commencing at 5:30pm. Yours faithfully

JAMES SHEPHERD ACTING CHIEF EXECUTIVE OFFICER


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


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TABLE OF CONTENTS

ITEM NO. SUBJECT PAGE NO.

1. DECLARATION OF OPENING .................................................................................................. 5

2. ATTENDANCE ........................................................................................................................... 5

3. DISCLOSURES OF INTEREST ................................................................................................. 6 3.1 ITEM 11.2.3 TRANSITION OF WALLCLIFFE BUSH FIRE BRIGADE AND ROSA

BROOK BUSH FIRE BRIGADE TO DFES - CR IAN EARL - IMPARTIALITY INTEREST .................................................................................................................................. 6

4. PUBLIC QUESTIONS ................................................................................................................ 6 4.1. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE ................................ 6 4.2. PUBLIC QUESTION TIME ......................................................................................................... 6

5. APPLICATIONS FOR LEAVE OF ABSENCE ........................................................................... 6 5.1 CR EARL - 12 AUGUST 2020 .................................................................................................... 6

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING ..................................................... 6 6.1 ORDINARY COUNCIL MEETING HELD 24 JUNE 2020 ........................................................... 6

7. DEPUTATIONS .......................................................................................................................... 6 7.1 ITEM 11.2.5 BUILDING ENVELOPE VARIATION 59 (LOT 17) WOODITCH ROAD,

MARGARET RIVER - MR JOHN BRADBURY ......................................................................... 48 7.2 ITEM 11.2.5 BUILDING ENVELOPE VARIATION 59 (LOT 17) WOODITCH ROAD,

MARGARET RIVER - DR CAMERON CROTHERS-STOMPS .................................................. 6

8. PETITIONS ................................................................................................................................. 7

9. ANNOUNCEMENTS FROM THE PRESIDING MEMBER......................................................... 7

10. QUESTIONS FROM MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN ..................... 7

11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS ................................................... 7

11.1. CHIEF EXECUTIVE OFFICER ................................................................................................... 8 11.1.1 MINUTES OF AUDIT AND RISK MANAGEMENT COMMITTEE - 24 JUNE 2020 ................... 9 11.1.2 NOTES OF COUNCILLOR AGENDA BRIEFINGS AND CONCEPT FORUM

SESSIONS FROM 7 APRIL TO 24 JUNE 2020 ...................................................................... 69 11.1.3 DELEGATION - PROCUREMENT OF GOODS AND SERVICES REQUIRED TO

ADDRESS A STATE OF EMERGENCY ................................................................................. 77 11.1.4 CEMETERIES LOCAL LAW 2020 AND ACTIVITIES IN THOROUGHFARES AND

PUBLIC PLACES AND TRADING LOCAL LAW 2020 - AMENDMENTS ............................... 83 11.1.5 FOOTBALL MARGARET RIVER INCORPORATED LEASE ................................................... 88

11.2. SUSTAINABLE DEVELOPMENT AND INFRASTRUCTURE ................................................ 94 11.2.1 WITHDRAWN ADDITIONS AND ALTERATIONS AT THE WHITE ELEPHANT CAFE ............. 95 11.2.2 SUSTAINABILITY REFERENCE GROUP (SRG) UPDATE INCLUDING

ENVIRONMENTAL MANAGEMENT FUND (EMF) ................................................................. 96 11.2.3 TRANSITION OF WALLCLIFFE BUSH FIRE BRIGADE AND ROSA BROOK BUSH

FIRE BRIGADE TO DFES ....................................................................................................... 49 11.2.4 RFT 07-20 SUPPLY OF ROAD, TRAFFIC AND SAFETY SIGNAGE AND

ASSOCIATED ACCESSORIES ............................................................................................. 102 11.2.5 BUILDING ENVELOPE VARIATION - 59 (LOT 17) WOODITCH ROAD,

MARGARET RIVER.................................................................................................................. 57

11.3. CORPORATE AND COMMUNITY SERVICES ..................................................................... 106 11.3.1 LIST OF PAYMENTS FOR MAY 2020 ................................................................................... 107 11.3.2 FINANCIAL ACTIVITY STATEMENT REPORT - MAY 2020 ................................................. 110 11.3.3 EVENT FUNDING FOR 2020-21 ............................................................................................ 123 11.3.4 ADOPTION OF 2020-21 FEES AND CHARGES ..................................................................... 12 11.3.5 ADOPTION OF 2020-21 DIFFERENTIAL RATES, MINIMUM PAYMENT AND RATE

CONCESSIONS ....................................................................................................................... 16


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11.3.6 ADOPTION OF 2020-21 EARLY PAYMENT INCENTIVES, PAYMENT OPTIONS, LATE PAYMENT INTEREST AND INSTALMENT CHARGES ................................................ 24

11.3.7 DRAFT STRENGTHENING COMMUNITY CAPACITY POLICY AND PLAN 2020-25 ......... 135 11.3.8 COMMUNITY CONSULTATION AND STAKEHOLDER ENGAGEMENT POLICY ............... 141 11.3.9 ADOPTION OF 2020-21 ANNUAL BUDGET ........................................................................... 31 11.3.10 COVID-19 FINANCIAL HARDSHIP POLICY ......................................................................... 146 11.3.11COMMUNITY CARE PACKAGE - ECONOMIC STIMULUS AND COMMUNITY

RESILIENCE GRANT FUNDING PROGRAMS .................................................................... 125

12. MOTIONS FROM MEMBERS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN .......... 153

13. MOTIONS FOR CONSIDERATION AT NEXT MEETING ..................................................... 154

14. NEW BUSINESS OF AN URGENT NATURE ....................................................................... 154 14.1 MEMBERS .............................................................................................................................. 154 14.2 CEO ........................................................................................................................................ 154

15. CONFIDENTIAL BUSINESS .................................................................................................. 154

16. CLOSURE OF MEETING ....................................................................................................... 154


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Minutes of the Ordinary Meeting held on Wednesday 22 July 2020, in Council Chambers, 41 Wallcliffe Road, Margaret River, commencing at 5.30pm

Ordinary Council Meeting

1. DECLARATION OF OPENING The Shire President welcomed all in attendance and declared the meeting open at 5.30pm The Shire President gave an Acknowledgement of Country:

‘I acknowledge and respect the traditional custodians of this land and pay our respects to elders past, present and emerging, whose lands we share.’

2. ATTENDANCE Shire President : Cr Ian Earl

Councillors : Cr Paula Cristoffanini Cr Brian Daniel Cr Naomi Godden Cr Kylie Kennaugh Cr Pauline McLeod Cr Julia Meldrum Chief Executive Officer : Ms Stephanie Addison-Brown Director Sustainable Development and Infrastructure : Mr Nick Logan Director Corporate

and Community Services : Mr James Shepherd Manager Corporate Services : Mr Andrew Ross Manager Legal and Governance : Mr Ian McLeod Manager Planning and Development : Mr Matt Cuthbert Community Emergency Services Manager : Mr Adam Jasper (seated in public gallery) Governance Officer / Council Support : Ms Claire Schiller

MEMBERS OF THE PUBLIC : 15 MEMBERS OF THE PRESS : Warren Hately, AMR Times


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3. DISCLOSURES OF INTEREST

3.1 Item 11.2.3 Transition of Wallcliffe Bush Fire Brigade and Rosa Brook Bush Fire Brigade To DFES – Cr Earl – Impartiality Interest

Cr Earl disclosed an impartiality interest in Item 11.2.3 Transition of Wallcliffe Bush Fire Brigade and Rosa Brook Bush Fire Brigade To DFES, the nature of his interest being: ‘I am a member Cowaramup BFB.’

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

Nil

4.2. Public Question Time Nil

5. APPLICATIONS FOR LEAVE OF ABSENCE

5.1 Cr Earl – 12 August 2020 Ordinary Council Meeting MOTION / COUNCIL DECISION CR EARL, CR KENNAUGH OM2020/120 That Cr Earl be granted Approved Leave of Absence for the 12 August 2020 Ordinary Council Meeting.

CARRIED 7/0

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING 6.1 Ordinary Council Meeting held 24 June 2020

MOTION / COUNCIL DECISION CR DANIEL, CR KENNAUGH OM2020/121 That Council confirms the minutes of the Ordinary Council Meeting held on 24 June 2020 to be a true and correct record of the meeting.

CARRIED 7/0

7. DEPUTATIONS 7.1 Item 11.2.5 Building Envelope Variation – 59 (Lot 17) Wooditch Road, Margaret River – Mr John Bradbury

The Shire President called for Mr John Bradbury, Mr Bradbury was not in attendance. The Shire President then moved onto Item 7.2.

7.2 Item 11.2.5 Building Envelope Variation – 59 (Lot 17) Wooditch Road, Margaret River – Dr Cameron Crothers-Stomps

Dr Cameron Crothers-Stomps of 13 Salmon Place, Margaret River, addressed the meeting in relation to Item 11.2.5 Building Envelope Variation – 59 (Lot 17) Wooditch Road, Margaret River.


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Mr Daniel Crothers-Stomps spoke in support of the Officers Recommendation. The Shire President thanked Mr Crothers-Stomp for his deputation.

8. PETITIONS Nil

9. ANNOUNCEMENTS FROM THE PRESIDING MEMBER

9.1 COVID-19 The Shire President implored the community remain vigilant of the COVID-19 pandemic and continue best behaviour and practice. 9.2 Order of Business The Shire President informed the meeting that the order of business would be changed to allow for considertaion of the Budget as the first item of business. The Shire President went on to inform the meeting that Item 11.2.1 Additions and Alterations to the White Elephant Café, had been withdrawn.

10. QUESTIONS FROM MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN Nil

11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS


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11.1.

Chief Executive Officer


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11.1.1 MINUTES OF AUDIT AND RISK MANAGEMENT COMMITTEE - 24 JUNE 2020 LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE COR/57 REPORT AUTHOR Claire Schiller, Governance Officer / Council Support AUTHORISING OFFICER Ian McLeod, Manager Legal and Governance

IN BRIEF The Audit and Risk Management Committee meeting of 24 June 2020 considered: • Interim and End of Financial Year Audit; and • Report on Internal Audit Review. RECOMMENDATION That Council receives the unconfirmed minutes of the Audit and Risk Management Committee meeting held on 24 June 2020. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Council’s Audit and Risk Management Committee (ARMC) comprises four members of Council and operates in accordance with the Augusta Margaret River Audit and Risk Management Committee Instrument of Appointment and Delegation. The Committee is required to discharge the legislative obligations outlined in the Local Government Act 1995 and the Local Government (Audit) Regulations 1996. CONSULTATION AND ADVICE External Consultation Nil Internal Consultation Nil DISCUSSION / OFFICER COMMENTS The meeting minutes are self-explanatory and there were no items raised during the meeting that required follow-up by Council. In brief the Committee:

• Noted the Interim and End of Year Financial Audit; • Noted the findings and recommendations of the Internal Audit Review; and • Received a verbal update on Risk Management Actions from the last quarter.

STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Regulation 16 of the Local Government (Audit) Regulations 1996 states that “An audit committee has the following functions —

(a) to guide and assist the local government in carrying out — (i) its functions under Part 6 of the Act; (ii) its functions relating to other audits and other matters relating to financial management;

(b) to guide and assist the local government in carrying out the local government’s functions in relation to audits conducted under Part 7 of the Act;


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(c) to review a report given to it by the CEO under regulation 17(3) (the CEO’s report) and is to —

(i) report to the council the results of that review; and (ii) give a copy of the CEO’s report to the council.

(d) to monitor and advise the CEO when the CEO is carrying out functions in relation to a review under –

(i) regulation 17(1); and (ii) the Local Government (Financial Management) Regulations 1996 regulation 5(2)(c);

(e) to support the auditor of the local government to conduct an audit and carry out the auditor’s other duties under the Act in respect of the local government; (f) to oversee the implementation of any action that the local government –

(i) is required to take by section 7.12A(3); and (ii) has stated it has taken or intends to take in a report prepared under section 7.12A(4)(a); and (iii) has accepted should be taken following receipt of a report of a review conducted under regulation 17(1); and (iv) has accepted should be taken following receipt of a report of a review conducted under the Local Government (Financial Management) Regulations 1996 regulation 5(2)(c)

(g) to perform any other functions conferred on the audit committee by these regulations or another written law.”

STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 5: Effective leadership and governance Community Outcome 2: Effective and integrated strategy, planning, financial and asset management Strategic Response 4: Ensure the Shire’s financial performance is well managed and leads to a strong financial position PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications There are no financial implications associated with the adoption of the Committee minutes. Long Term Financial Plan Nil Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil Economic Nil ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil


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VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council receives the unconfirmed minutes of the Audit and Risk Management Committee meeting held on 24 June 2020. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Minutes and Attachments of the Audit and Risk Management Committee meeting of 24 June 2020 RECOMMENDATION / COUNCIL DECISION CR MELDRUM, CR CRISTOFFANINI OM2020/122 That Council receives the unconfirmed minutes of the Audit and Risk Management Committee meeting held on 24 June 2020.

CARRIED 7/0 The Shire President brought forward the following items for consideration:

• 11.3.4 Adoption of 2020-21 Fees and Charges • 11.3.5 Adoption of 2020-21 Differential Rates, Minimum Payment and Rate Concessions • 11.3.6 Adoption of Early Payment Incentives, Payments Options, Late Payment Interest and

Installment Charges • 11.3.9 Adoption of 2020-21 Annual Budget • 11.23 Transition of Wallcliffe Bush Fire Brigade and Rosa Brook Bush Fire Brigade to DFES • 11.2.5 Building Envelope Variation – 59 (Lot 147) Wooditch Road, Margaret River


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11.3.4 ADOPTION OF 2020-21 FEES AND CHARGES LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/357 REPORT AUTHOR Vicki Scott, Coordinator Revenue and Customer Service AUTHORISING OFFICER Andrew Ross, Manager Corporate Services

IN BRIEF • At the Ordinary Meeting 25 March 2020 (OM2020/44) Council resolved to waive all non-regulatory

Shire fees and charges until 30 June 2020 and to develop a budget for 2020-21 based on a zero rate increase.

• The majority of the Shire’s fees and charges for 2020-21 will not change from those used in 2019-20.

• If approved the fees and charges for 2020-21 will become effective from the Ordinary Council Meeting of 22 July 2020.

RECOMMENDATION That Council: 1. Adopts the fees and charges as per Attachment 1 that are proposed to be imposed for 2020-21 and

would be effective from 22 July 2020; and 2. Waives the annual licence renewal fees for directional and entrance signs, lodging houses and food

business registrations charged to businesses in order to provide some financial relief to assist recovery from the impacts of the COVID-19 pandemic.

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND The Shire imposes fees and charges for any goods or service it provides or proposes to provide, and when setting the level of a fee or charge considers the following factors: (a) cost to the local government of providing the service or goods; (b) importance of the service or goods to the community; and (c) price at which the service or goods could be provided by an alternative provider; Where the Shire is required to amend the adopted Schedule of Fees and Charges, the Schedule is presented to Council for adoption by absolute majority. CCSP3 Setting of Fees and Charges Policy (OM2017/296), allows for establishing a fair and equitable fee structure which reflects actual reasonable costs for services and goods provided by the Shire. Council at their meeting on 25 March 2020 authorised the waiving of all non-regulatory Shire fees and charges until 30 June 2020. This resolution was subsequently amended to exclude Waste Services fees and charges. As a result of the COVID-19 pandemic and the objective of not increasing rates and by extension fees and charges, the majority of fees and charges for the 2020-21 financial year will not increase.


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CONSULTATION AND ADVICE External Consultation Nil Internal Consultation Business Unit Managers and Coordinators DISCUSSION / OFFICER COMMENTS To assist with financial and budget reporting, income codes (Account, Job and Work Order numbers) are included in the Schedule for each Business Unit. For each fee and charge a description of ‘Statutory’, ‘Regulatory’ or ‘Shire’ are included as follows:

• ‘Statutory’ charge is levied by the Shire under a Legislative Act, and is not determined by Council;

• ‘Regulatory’ charge is levied by the Shire under a Legislative Act, regulatory body or Australian Law including Shire Local Laws and is determined by Council; and

• ‘Shire’ fees and charges are set by the Local Government.

The Shire adopts a ‘user contributes’ approach to the provision of services and goods in order that the cost burden is fairly set and spread more equitably amongst customers. The basic principles considered in establishing Shire fees and charges are:

• Charges reflect the true cost of providing a facility; • Compliance with the Local Government Act 1995 and Regulations; • Fees for a service on a cost recovery basis; • Importance of the service to the Community; and • Compliance with Goods and Services Tax (GST).

Shire Directorates have completed the review of the 2020-21 fees and charges. A zero percent increase has been applied for 2020-21 for all fees and charges except for the following Shire business areas with the Corporate and Community Services directorate.

Corporate and Community Services

HEART Revenue streams have been changed from 3 streams to 2 streams being Commercial and Not-for-Profit with provision for the CEO to alter fees and charges subject to event requirements and use by local businesses.

Comprehensive pricing review brings fees and charges in line with industry standards to venue operations and some new fees have been included in areas previously stated as price on application (POA).

Holiday Parks Holiday Parks allow provision for 2021-22 fees and charges to be set, due to customers of these facilities making bookings in advance of the current financial year.

Residential/Annual holiday sites will increase after 30 June 2021. Chalets have been grouped into category A or B and some fees and charges have increased. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS LG Act section 6.16 – Imposition of fees and charges

(1) A local government may impose* and recover a fee or charge for any goods or service it provides or proposes to provide, other than a service for which a service charge is imposed.

* Absolute Majority required.

(2) A fee or charge may be imposed for the following —


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(a) providing the use of, or allowing admission to, any property or facility wholly or partly owned, controlled, managed or maintained by the local government;

(b) supplying a service or carrying out work at the request of a person; (c) subject to section 5.94, providing information from local government records; (d) receiving an application for approval, granting an approval, making an inspection

and issuing a licence, permit, authorisation or certificate; (e) supplying goods; (f) such other service as may be prescribed.

(3) Fees and charges are to be imposed when adopting the annual budget but may be — (a) imposed* during a financial year; and (b) amended* from time to time during a financial year.

* Absolute majority required. Local Government Act 1995 section 6.17 refers to setting level of fees and charges. Local Government Act 1995 section 6.19 refers to Local government to give notice of fees and charges. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 5: Effective Leadership and Governance. Community Outcome 2: Effective strategy, planning and asset management. Strategic Response 2.5: Ensure the Shire’s financial performance is well managed and leads to a strong financial position. Service level strategy/plan: Fees and Charges are incorporated in the preparation of the annual budget. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications Revenue generated from fees and charges are a vital component of the overall 2020-21 budget and for the 2020-21 budget provide 28% of total operating revenue. Long Term Financial Plan (LTFP) The LTFP normally assumes fees and charges will increase by the base inflation factor. This conservative approach allows for a level of cost recovery that is consistent with the forecasts used to increase materials and contracts expenditure. As fees and charges for 2020-21 will not change from those used in 2019-20, any inflation factor will not be accounted for. Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental Revenue generated from fees and charges is utilised by the Shire to carry out work, which impacts on the environment. There is continued demand for these activities. Social Revenue generated from fees and charges is utilised by the Shire to support a range of Community oriented activities which impact on the social fabric of the Community. Economic Revenue generated from fees and charges are a vital component of the overall 2020-21 budget without them the Shire would be financially unviable.


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ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Absolute Majority RECOMMENDATION That Council: 1. Adopts the fees and charges as per attachment 1 that are proposed to be imposed for 2020-21 and

would be effective from 22 July 2020; and 2. Waives the annual licence renewal fees for directional and entrance signs, lodging houses and food

business registrations charged to businesses in order to provide some financial relief to assist recovery from the impacts of the COVID-19 pandemic.

ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. 2020-21 Draft Schedule of Fees and Charges. RECOMMENDATION / COUNCIL DECISION CR CRISTOFFANINI, CR DANIEL OM2020/123 That Council: 1. Adopts the fees and charges as per attachment 1 that are proposed to be imposed for 2020-

21 and would be effective from 22 July 2020; and 2. Waives the annual licence renewal fees for directional and entrance signs, lodging houses

and food business registrations charged to businesses in order to provide some financial relief to assist recovery from the impacts of the COVID-19 pandemic.

CARRIED BY ABSOLUTE MAJORITY 7/0


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11.3.5 ADOPTION OF 2020-21 DIFFERENTIAL RATES, MINIMUM PAYMENT AND RATE CONCESSIONS LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/11 REPORT AUTHOR Andrew Ross, Manager Corporate Services AUTHORISING OFFICER James Shepherd, Director Corporate and Community Services

IN BRIEF • Council approval is required to adopt Differential Rating Categories, Differential Rates in the Dollar

and associated Minimum Payments together with the proposed Service and Waste Charges for the year ending 30 June 2020.

• Rate concessions for specific properties are also to be considered for approval. RECOMMENDATION That Council having considered the impact of the COVID-19 pandemic upon ratepayers and the need for community recovery, approves: 1. Differential Rates

Adopts the following differential rating categories, rates in the dollar and minimum payments for the 2020-21 financial year which are the same rates in the dollar and minimum payments applied in 2019-20.

Rate Category GRV Rate in the Dollar

(In cents) Minimum Payment

$ Residential 10.7581 1,335 Residential Vacant 20.6089 1,335 Rural Residential 10.3055 1,625 Rural Residential Vacant 20.0600 1,625 Commercial, Industrial, Tourism 12.7427 1,434 Rate Category UV Rate in the Dollar


$ UV Rural 0.4705 1,498 UV1 (one non rural use) 0.5880 1,498 UV2 (two non rural uses) 0.7057 1,498 UV3 (over two non rural uses) 0.8233 1,498 UV Strata Title Vineyard 0.4705 879 UV Conservation 0.4598 1,441

2. Service Charge

Levies an underground electricity charge of $333.33 per identified property per year for a term of 10 years (1 July 2011 to 30 June 2021), on rateable properties located on Bussell Highway between Peake Street and 30 metres south of Bottrill Street in Cowaramup. Where a property is strata titled then the service charge is to be apportioned based on percentage of total floor area.

3. Waste Facilities Maintenance Rate

Levy the following rates in the dollar and minimum payments for the Waste Facilities Maintenance Rate on all rateable properties for the 2020-21 financial year.

Differential Rating Category Rate in the Dollar

(in cents) Minimum Payment

$


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GRV Gross Rental Value 0.0222 $180.00 UV Unimproved Value 0.0002 $180.00

4. Rate Concessions

Approves a full concession of property rates levied for 2020-21 for the property assessments A11780 and A11746 which are the location of satellite facilities providing television broadcasting services for the surrounding residential subdivision and the property rates are on-charged by the landowner to the community group who administer this service:

Approves a 50% concession on the amount of rates levied for 2020-21 for property assessment A1886 the Augusta Golf Club.

Approves a full concession of property rates levied for 2020-21 for property assessment A5308 which is a property on the railway reserve that may have some heritage value and is being leased by the State to a private landowner who is responsible for paying the property rates.

Approves a partial concession of property rates for 33 rural properties that would receive a rate increase as a result of the Unimproved Valuation (UV) of their property increasing due to the annual revaluation. The objective of the concession is to reduce the property rates to the same amount that was charged in 2019-20.

Assessment Address Landowner Community

Group Amount of Rate Concession

A11780 123 Poplar Avenue, Riverslea

Greendene Development Corporation

Riverslea Community Group

$1,335.00

A11746 Lot 900 Leschenaultia Ave, Brookfield

Brookfield Estate Pty Ltd

Brookfield Connect

$1,335.00

A1886 757 Hillview Rd, Augusta

Augusta Golf Club Inc

Golf Club $2,134.40

A5308 9 Clarke Road, Margaret River

Public Transport Authority of WA

N/A $1,510.44

Various 33 rural properties Various N/A $2,500.00

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Council at their meeting on 25 March 2020 authorised the CEO to develop a budget for 2020-21 based on a zero percentage rate increase (refer minute OM2020/44). On 16 April 2020 the Local Government (COVID-19 Response) Order was passed by State Parliament and came into effect on 21 April 2020. This Order modifies or suspends provisions of the Local Government Act and Regulations while a State of Emergency declaration is in force. As a result of the Council resolution and the COVID-19 Response Order the legislative processes associated with rating do not apply if the rates in the dollar and minimum payments do not vary to those implemented in 2019-20. CONSULTATION AND ADVICE External Consultation Department of Local Government, Sport and Cultural Industries (DLGSC) The DLGSC’s Rating Policies for Differential Rates, Minimum Payments and Giving Notice were referred to ensure compliance with Sections 6.35(5) and 6.33(3) of the Local Government Act 1995 (LG Act). However, this compliance was not required as there was no change to the rating details.


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Ratepayers and Electors Advertising of the proposed differential rates and minimum payments was not required as there was no change to the rating details. Internal Consultation • Coordinator Revenue • Customer Service DISCUSSION / OFFICER COMMENTS The rates in the dollar and minimum payments for 2020-21 are the same as those applied in 2019-20. The total rate yield of $22.332 million is $0.274 million or 1.2% higher than the rate yield achieved when rates were billed in July 2019. This change is attributable to the increase in rateable properties and the updated valuations received during the year for developed properties. Growth of Ratable Properties The number of ratable properties has increased during 2019-20 however the rate of increases seems to have slowed in comparison to previous years. The subdued growth in the number of lots released has a direct impact upon growth in rate revenue. A comparison of the increase in the ratable property base for the current and past 6 years is tabled below. Table 1. Growth in ratable Properties

Year

No. of Properties Rate

Billing

Property Increase % Increase

2013-14 8,936 41 0.5% 2014-15 9,055 119 1.3% 2015-16 9,332 277 3.1% 2016-17 9,512 180 1.9% 2017-18 9,680 168 1.8% 2018-19 9,781 101 1.0%

2019-20 (April) 9,878 97 1.0% Landgate UV Revaluation The 2020 UV property revaluation completed by Landgate results in an overall average decrease of 0.01% to rural land values. This compares to an average decrease of 0.32% reported last year. The historical annual change in property valuations are shown in the following chart. Valuations changed for 65 properties with 17 properties recording a decrease in valuation totalling $0.599 million and 48 properties recording an increase in valuation totalling $0.550 million. Almost half of the affected properties are in the Scott River and Nillup areas. Landgate advised “some variations to individual assessments may have occurred either as a product of the valuation process and/or inclusion of updated information such as soil types.” The impact of the valuation change upon individual property rates was calculated and it was determined that:

• rates for 17 properties will not change as they are on the minimum payment; • rates for 15 properties will decrease by a total of $2,586; and • rates for 33 properties will increase by a total of $2,498.

As the overall intent is to not increase property rates, it is proposed Council consider approving a rate concession for the 33 properties that would receive a rate increase when the new property valuations are applied against the rates in the dollar used for 2019-20. LG Act Compliance In setting the differential rate in the dollar and minimum payment, the Shire must adhere to the requirements of the LG Act and in particular sections 6.33 and 6.35.


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Section 6.33 states the Shire cannot apply a rate in the dollar that is more than twice the lowest rate in the dollar for any differential rating category. Section 6.35 states the Shire cannot apply a minimum payment to more than 50% of the total number of properties for an individual differential rating category. The differential rating category of Residential GRV Vacant is non-compliant with section 6.35 of the LG Act as the total number of properties on the minimum payment exceeds 50%. This rating category has 783 properties with 556 properties on a minimum payment and 227 on the non-minimum (rate in the dollar calculation). The total number of properties on the minimum is to be no more than 391 (50% of 783). This result is non-compliant by 165 properties. Ministerial approval must normally be obtained before the rates can be implemented but has been suspended for this year. Rate Concessions Brookfield Connect and the Riverslea Community Group levy and collect fees from Riverslea and Brookfield residents for the maintenance of the cable television facilities and equipment in these subdivisions. This cost includes the property rates for the lots owned by the developers and on which the satellite facilities are located. Representatives of these community groups have advocated for some financial assistance and approving a full rate concession for the properties is an effective method of providing some financial assistance. Council first approved a rate concession for 2016-17 and this has been continued. The two properties are classified as residential and due to their low gross rental value are both rated the minimum payment which for 2020-21 is $1,335. The amount of rate income foregone would total $2,670 should a rate concession be approved. All other fees and charges for the properties such as the emergency services levy will continue to be charged to the property owner. Augusta Golf Club is seeking consideration of a rate concession under section 6.47 of the LG Act equivalent to 50% of the rates for their property at Hillview Road, Augusta. This property is rated as commercial and the rates for 2020-21 based on a Gross Rental Value of $33,500 would be $4,268.80. Should a 50% concession be approved the rates would reduce to $2,134.40. The Club have requested the concession as they are a not for profit, rely upon their members to operate and maintain the facilities and are seeking to ensure membership fees remain affordable. To ensure rural properties subject to a property valuation increase do not receive a property rate higher than 2019-20, a rate concession is required to be applied. 33 properties are affected by an increased property value and in total their rates would increase by $2,500. A rate concession of this amount is required to endure rates parity with 2019-20. The final concession required to be considered is for a property on the railway reserve which may have some heritage significance and is currently leased to a private landowner by the Public Transport Authority of WA. The landowner is charged rent for this property as well as all outgoings including rates. Council are considering the merits of acquiring this property and do not want the landowner to dispose of the property or be out of pocket while this process occurs. This property is rated as residential and the rates for 2020-21 based on the GRV of $14,040 would be $1,510.44. A full concession of the property rates is requested. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Part VI of the LG Act deals with rates and service charges.

• Section 6.32 states a local government may impose rates in order to make up the budget

deficiency. • Section 6.33 states a local government may impose differential rates based on differential

categories. • Section 6.35 states that Council may impose a minimum payment for each category. • Section 6.36 states the Shire is to give the appropriate notice of its intention to impose

differential rates and minimum payments in respect to each differential rate category. • Section 6.38 allows a local government to impose a service charge on owners or occupiers of

land within a district or part of a district to meet the cost of a prescribed work, service or facility in relation to the land.


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• Section 6.47 allows a local government at the time of imposing a rate or service charge or at a later date resolve to waive a rate or service charge or resolve to grant a concession to a rate or service charge.

Section 66 of the Waste Avoidance and Resource Recovery Act 2007 (WARR Act) states a local government may impose on rateable land within its district, and cause to be collected, an annual rate for the purpose of providing for the proper performance of all or any of the waste services it provides. Furthermore, it states the provisions of the LG Act relating to the making, payment and recovery of general rates apply with respect to the raising of rates referred to in this section. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 5: Effective Leadership and Governance. Community Outcome 2: Effective and integrated strategy, planning, financial and asset management. Strategic Response: Develop long term informing strategy including asset and financial management aligned to the Community Strategic Plan. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications The rates imposed will result in revenue of approximately $22.454 million being raised at rates billing. The approval of rate concessions would result in $8,826 of rate revenue being foregone. Long Term Financial Plan (LTFP) The rate increase included in the assumptions of the LTFP are greater than zero and consequently no rate increase in 2020-21 will have an impact upon rate revenue projections for future years and may require a compensatory adjustment to meet expenditure demands. Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental The 2020-21 Annual Budget takes into consideration the Shire’s strategic values to ensure an integrated approach to protecting the natural environment that safeguards biodiversity and provides a sustainable environment for future generations. Social The 2020-21 Annual Budget takes into consideration the Shire’s strategic values to enhance the quality of community life in the Shire characterised by vibrant participation, cohesiveness, increased social capital and recognition of the need for social justice and community safety. Economic The 2020-21 Annual Budget takes into consideration the Shire’s strategic values to foster economic prosperity in the Shire and Region. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Absolute Majority


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RECOMMENDATION That Council having considered the impact of the COVID-19 pandemic upon ratepayers and the need for community recovery, approves: 1. Differential Rates







2. Service Charge




Differential Rating Category Rate in the Dollar

(in cents) Minimum Payment

$ GRV Gross Rental Value 0.0222 $180.00 UV Unimproved Value 0.0002 $180.00

4. Rate Concessions






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Assessment Address Landowner Community Group

Amount of Rate Concession




$1,335.00



Brookfield Connect

$1,335.00



Golf Club $2,134.40



N/A $1,510.44

Various 33 rural properties Various N/A $2,500.00 ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS Nil RECOMMENDATION / COUNCIL DECISION CR GODDEN, CR DANIEL OM2020/124 That Council having considered the impact of the COVID-19 pandemic upon ratepayers and the need for community recovery, approves: 1. Differential Rates







2. Service Charge





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Differential Rating Category Rate in the Dollar (in cents)

Minimum Payment $

GRV Gross Rental Value 0.0222 $180.00 UV Unimproved Value 0.0002 $180.00

4. Rate Concessions





Assessment Address Landowner Community

Group Amount of Rate Concession




$1,335.00



Brookfield Connect

$1,335.00



Golf Club $2,134.40



N/A $1,510.44

Various 33 rural properties Various N/A $2,500.00 CARRIED BY ABSOLUTE MAJORITY 7/0


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11.3.6 ADOPTION OF 2020-21 EARLY PAYMENT INCENTIVES, PAYMENT OPTIONS, LATE PAYMENT INTEREST AND INSTALMENT CHARGES

LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/11 REPORT AUTHOR Andrew Ross, Manager Corporate Services AUTHORISING OFFICER James Shepherd, Director Corporate and Community Services

IN BRIEF • The Shire provides early payment incentive prizes together with donated prizes to property owners

that make payment of the annual rates, service charges and waste charges by the required due date.

• Payment options of Option 1 (payment in full), Option 2 (four instalments) or Option 3 (special arrangement by monthly payments) are provided to property owners.

• Penalty interest is imposed where payments have not been received by the due dates, and where the balance is greater than $0.01.

• Instalment administration fees and interest charges are applied to assessments where property owners elect to pay the annual rates, service charges and waste services by Option 2 (four instalments).

RECOMMENDATION That Council adopts:

1. Early Payment Incentives

The following early payment incentive prizes for 2019-20. All ratepayers who pay option 1 (in full) or the first instalment on option 2 (four instalments) by the due date will be entered into the prize draw. $2,000 has been budgeted for incentive prizes and will be distributed as 10 prizes of $200 each.

2. Payment Options The following payment options for the payment of rates, service and waste charges:

• Option 1

Payment in full by 24 September 2020 (within 35 days of the issue date of the annual rates notice).

• Option 2

Four instalments, with the first instalment to include 25% of the total current amount of rates, services and waste charges including instalment charges, plus the total outstanding amount of arrears.

o First instalment payable by 24 September 2020 (within 35 days of the date of issue of

the annual rate notice). The second, third and fourth instalments each of 25% of the total current rates, service and waste charges including instalment charges payable as follows:

o Second instalment by 26 November 2020 (63 days after due date of the first

instalment); o Third instalment by 28 January 2021 (63 days after due date of second instalment); o Fourth instalment by 1 April 2021 (63 days after due date of third instalment).


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Special Arrangement Weekly, fortnightly and other special arrangements may be accepted by the Shire. An administration fee may be imposed for special arrangement agreements as listed in the Schedule of Fees and Charges. The fee is applied to the assessment at the time of acceptance of the agreement.

3. Penalty Interest

To calculate interest on all outstanding rates, service, waste, legal and sundry amounts that remain unpaid after 35 days from the date of issue of the original rate notice.

Interest will be applied at the maximum rate of 8% per annum in accordance with the Local Government (COVID-19 Response) Order 2020 which modifies Regulation 70 Local Government Financial Management Regulations 1996 (LGFMR), calculated on a daily basis and charged on the outstanding balance and calculated for the number of days overdue.

Excluded from penalty interest are registered property owners under the Rates and Charges Rebates and Deferment Act 1992 (RD Act) Pensioners and Seniors Rebate schemes.

4. Instalment Administration Fee and Interest Charge

Imposes the following instalment administration fees and interest charges:

• Administration Fee A fee of $8.00 on each of instalments two, three and four.

• Interest Charge

The maximum rate of interest is 3% in accordance with the Local Government (COVID-19 Response) Order 2020 which modifies Regulation 68 of the LGFMR.

Interest will be applied, calculated on a simple interest basis by applying the rate of interest to the amount of each instalment for the period between the due date of the first instalment and the due date of each subsequent instalment.

Excluded from both the instalment administration fee and instalment interest charge are registered property owners under the RD Act 1992.

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND When adopting the differential rates and minimum payments, the Shire is required to meet statutory obligations under the Local Government Act 1995 and the LGFMR when providing for early incentive prizes, payments options, imposing penalty interest and the instalment administration fee and interest charge. CONSULTATION AND ADVICE External Consultation Nil Internal Consultation • Coordinator Revenue • Customer Service DISCUSSION / OFFICER COMMENTS Early Payment Incentives


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The early incentive prizes are an initiative for property owners to pay their rates by the required due date. The Shire has traditionally provided prizes totalling $2,000 which were broken down into one prize of $1,000, another of $500 and two of $250. These were supplemented by donated prizes and passes to Shire facilities such as caravan parks and the recreation centres. Requests for other prizes and sponsorship are not solicited and any prizes offered in the past resulted from organisations approaching the Shire and were acknowledged by a logo and promotional wording in the Rate Information brochure accompanying the annual Rate Notice. This year the Shire is offering ten cash prizes of $200 each to ratepayers. Payment Options The payment options offered by the Shire take into consideration the different circumstances of ratepayers and the following options are offered:

• Option 1 (payment in full); • Option 2 (four instalments); • Option 3 (special arrangement) where agreements may be accepted upon written request.

Ratepayers may request a special arrangement of weekly, fortnightly or monthly payments by Shire initiated direct debit or by the ratepayer initiating payment using BPay or a similar method. Where the Shire agrees to these arrangements, an administration fee may be applied. These arrangements allow the ratepayer to clear the debt by the end of the following financial year. These payment options will be promoted to encourage ratepayers to contact the Shire to negotiate a payment agreement that better suits their financial circumstances. This will be supported by the Financial Hardship Policy. The provision of flexible options has in the past been successful in collecting the rates, service and waste charges levied without causing undue hardship to ratepayers. The Shire recorded an end of year outstanding rates debt ratio of 3.44% for the year to 30 June 2020 compared to 2.97% for the previous year. The percentage is higher as outstanding rates recovery actions were suspended as a COVID-19 compassionate measure during the last quarter of 2019-20. Penalty Interest Penalty Interest is applied to property assessments where the rates, service and waste charges have not been received by the required due dates and where the balance is greater than $0.01. The interest is applied at the maximum rate of 8% per annum in accordance with clause 14 of the Local Government (COVID-19 Response) Order 2020 which modifies the LGFMR, is calculated on a daily basis and charged once per month on the outstanding balance and for the number of days overdue. On a monthly basis, penalty interest is written off under Delegation number 17 where a balance of $5.00 or lower remains on an assessment. The Financial Hardship Policy also provides the opportunity for penalty interest to be waived. Excluded from the calculation of penalty interest are registered property owners under the RD Act. Instalment Administration Fee and Interest Charge The Instalment Administration Fee and Interest Charge is applied to property assessments where ratepayers select Option 2 as their preferred payment option. The administration fee and interest charges are calculated when the annual rate billing is run with both the instalment charge and total cost shown on the annual rate notice with total cost applied across all four instalments. Instalment charges include a fee of $8.00 for instalments two, three and four and an interest component which is calculated at 3% over the period of instalment dates. The total amount of arrears on a property assessment will be included in the 1st Instalment amount due. The rate of interest is in accordance with clause 13 of the Local Government (COVID-19 Response) Order 2020 which modifies Regulation 68 of the LGFMR.


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Excluded from instalment administration fee and interest charge are registered property owners under the RD Act 1992. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Part VI of the LG Act deals with the early payment, instalments, payment options and interest charges.

• Sections 6.12 and 6.46 of the LG Act provides that the Shire may, when imposing a rate or service charge, resolve to grant by absolute majority a discount or other incentive for the early payment of any rate, service or waste charge.

• Section 6.45(3) of the LG Act provides for the Shire to impose additional charges where customers elect to pay by instalments. The maximum rate of interest component in instalments is 5.5% as per Regulation 68 of the LGFMR 1996 but has been modified to 3% in accordance with the Local Government (COVID-19 Response) Order 2020.

• Section 6.13 and 6.51 of the LG Act provides that the Shire may impose interest on a rate, service charge or any costs of proceedings to recover any such charge that remains unpaid after becoming due and payable. The maximum percentage rate of interest on overdue rates and service charges is 11% as per Regulation 70 of the LGFMR 1996 but has been modified to 8% in accordance with the Local Government (COVID-19 Response) Order 2020.

• Section 6.49 of the LG Act states that, the Shire may accept payment of rates, service and waste charges due and payable by a person in accordance with an agreement made with the person. The Chief Executive Officer under delegated authority (Delegation number 10), grants these powers and duties to other employees.

STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 5: Effective Leadership and Governance. Community Outcome 2: Effective and integrated strategy, planning, financial and asset management. Strategic Response: Develop long term informing strategy including asset and financial management aligned to the Community Strategic Plan. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications The amount of Shire budgeted expenditure for the provision of the early incentive payment scheme is $2,000. Revenue collected from the instalment administration fee, instalment interest and special arrangement fee are listed in Table 1 below. A reduced allocation of $125,000 has been included in the 2020-21 Budget which reflects the reduced instalment interest rate and the possible impact of the financial hardship policy allowing more charges to be waived. Table 1

Fee Charged

2016-17 Actual

2017-18 Actual

2018-19 Actual

2019-20 Actual

2020-21 Budget

Instalment Administration Fee

$75,158 $80,598 $88,488 $87,760 $50,000

Instalment Interest $131,668 $138,163 $149,340 $153,018 $75,000 Special arrangement Fee

$2,657 $411 $102 $0 $0

$209,483 $219,172 $237,930 $240,778 $125,000 Revenue collected from penalty interest is listed in Table 2 below. An allocation of $66,500 has been included in the 2020-21 budget and is reduced compared to 2019-20 due to the lower interest rate of 8% and the possible impact of the financial hardship policy allowing more interest charges to be waived. Table 2

Fee Charged

2016-17 Actual

2017-18 Actual

2018-19 Actual

2019-20 Actual

2020-21 Budget


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Penalty Interest $113,372 $110,402 $115,897 $89,631 $64,500 ESL Penalty Interest $3,982 $4,026 $4,448 $3,826 $2,000 $117,354 $114,428 $120,345 $93,457 $66,500

Long Term Financial Plan The 2020-21 annual budget will inform the preparation of the Long Term Financial Plan. Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental The 2020-21 annual budget takes into consideration the Shire’s strategic values to ensure an integrated approach to protecting the natural environment that safeguards biodiversity and provides a sustainable environment for future generations. Social The 2020-21 annual budget takes into consideration the Shire’s strategic values to enhance the quality of community life in the Shire characterised by vibrant participation, cohesiveness, increased social capital and recognition of the need for social justice and community safety. Economic The 2020-21 annual budget takes into consideration the Shire’s strategic values to foster economic prosperity in the Shire and Region. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Absolute Majority RECOMMENDATION That Council adopts:




• Option 1

Payment in full by 24 September 2020 (within 35 days of the issue date of the annual rates notice).

• Option 2


o First instalment payable by 24 September 2020 (within 35 days of the date of issue of

the annual rate notice). The second, third and fourth instalments each of 25% of the total current rates, service and waste charges including instalment charges payable as follows:


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instalment); o Third instalment by 28 January 2021 (63 days after due date of second instalment); o Fourth instalment by 1 April 2021 (63 days after due date of third instalment).


3. Penalty Interest







• Interest Charge




ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS Nil RECOMMENDATION / COUNCIL DECISION CR KENNAUGH, CR GODDEN OM2020/125 That Council adopts:





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• Option 1 Payment in full by 24 September 2020 (within 35 days of the issue date of the annual rates notice).

• Option 2


o First instalment payable by 24 September 2020 (within 35 days of the date of

issue of the annual rate notice). The second, third and fourth instalments each of 25% of the total current rates, service and waste charges including instalment charges payable as follows:


instalment); o Third instalment by 28 January 2021 (63 days after due date of second

instalment); o Fourth instalment by 1 April 2021 (63 days after due date of third instalment).


3. Penalty Interest







• Interest Charge






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11.3.9 ADOPTION OF 2020-21 ANNUAL BUDGET LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/358 REPORT AUTHOR Andrew Ross, Manager Corporate Services AUTHORISING OFFICER James Shepherd, Acting CEO

IN BRIEF • Each year prior to 31 August, Council must adopt an Annual Budget for the financial year. • Council is requested to consider adoption by Absolute Majority of the Annual Budget for the 2020-

21 financial year. • Other items to be adopted include a material variance threshold for the year. RECOMMENDATION Part 1 – Budget for 2020-21 That Council, having considered the possible consequences of the COVID-19 pandemic and the strategic direction of the Shire outlined in the Community Strategic Plan 2036, the Corporate Plan, the Long Term Financial Plan; and having considered proposed revenues, expenditures and budget efficiency measures for 2020-21; and in accordance with the provisions of section 6.2 of the Local Government Act 1995 and Part 3 of the Local Government (Financial Management) Regulations 1996, adopts the Annual Budget 2020-21 for the Shire of Augusta Margaret River which is included as Attachment 1 and includes the following:

• Statement of Comprehensive Income by Nature or Type showing a net result for 2020-21 of $1,170,053

• Statement of Comprehensive Income by Programme showing a net result for 2020-21 of $1,170,053

• Statement of Cash Flows • Rate Setting Statement showing an amount required to be raised from rates of

$22,453,626 • Notes to and Forming Part of the Budget • Business Unit budget details • Supplementary information including the Capital Works Programme, operating and capital

grants, items carried forward from 2019-20 and details of reserve transfers. Part 2 – Material Variance Reporting for 2020-21 That Council in accordance with regulation 34(5) of the Local Government (Financial Management) Regulations 1996 and AASB 1031 Materiality, adopts a level for reporting of material variances to be used in the monthly financial activity statement reports for 2020-21 of financial activity being greater than budget by 10% and $10,000. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND The Local Government Act 1995 requires a local government to prepare and adopt an annual budget prior to 31 August in each year, or such extended time as the Minister allows.


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The budget as shown in the Attachment is the result of input from each of the Shire’s business units and has considered the Shire’s response to the COVID-19 pandemic as well as the Community Strategic Plan, Corporate Business Plan, Asset Management Plan, Workforce Plan and Long-Term Financial Plan. The budget as presented is balanced and is similar to the draft provided to Council at workshops on 27 May, 3 and 10 June 2020 and to the Council meeting on 24 June 2020. The major components of the budget are:

• A capital works programme totalling $21.602 million ($23.474 million budgeted last year) • Operating expenditure of $40.091 million ($38.145 million last year); • Operating revenue of $12.040 million ($12.230 million last year) • Rate revenue of $22.454 million ($22.124 million last year); • Grants for capital works of $6.752 million ($5.707 million last year); • Transfers to reserves of $0.423 million to primarily fund future capital works; • Transfers from reserves of $8.588 million to primarily fund capital works during the year; • One new loan borrowing of $0.810 million to fund various community building works; and • A carry forward balance of $2.248 million from 2019-20.

CONSULTATION AND ADVICE External Consultation Due to the Local Government (COVID-19 Response) Order that came into effect on 21 April 2020, suspending or modifying provisions of the Local Government Act and Regulations while a State of Emergency declaration is in force, the requirement for external consultation with respect to rates was not required if the rates in the dollar and minimum payments do not exceed those levied in 2019-20. Internal Consultation Councillors have been involved through the budget process with rating workshops and briefings and workshops for the draft budget and approving the draft budget. Management and staff were actively involved in the preparation and review of the operational and capital budgets. They were also involved in the setting of fees and charges in their areas of responsibility. DISCUSSION / OFFICER COMMENTS The 2020-21 Budget has been developed with significant input from staff, management and Councillors. Negotiation has resulted in the reprioritisation and deferral of some projects and activities in order to ensure available funding sources resulted in a balanced budget. Changes were required to be made to the draft budget document following the Council workshops and Council’s approval of the draft Budget on 26 June 2019. These changes are detailed in the following table, with numbers in brackets representing a reduction in revenue or expenditure.

No. Description Amount Business Unit 1 Reduce unspent balance of Loan 194 36,553 Community Bldgs 2 Reduce cleaning budget to better match actual expenditure 72,000 Community Bldgs 3 Carryover limestone cliff stability works 20,000 Landcare 4 Increase external EMF budget using biodiversity reserve 48,400 Landcare 5 Equipment carryover for the HEART 4,500 HEART 6 Reduce tourism directional signage fees & charges budget 20,000 Asset Services 7 Carryover asset management planning works 30,000 Asset Services 8 Increase land sale & purchase expenses budget 25,000 Other Property 9 Include revenue from 2019-20 Community Support grant 22,500 OSHC 10 Include revenue from 2019-20 Sustainability Support grant 25,000 OSHC 11 Include expenditure for 2019-20 Community Support grant 22,500 OSHC 12 Include expenditure for 2019-20 Sustainability Support grant 25,000 OSHC 13 Carryover of investigation works for recreation plan 10,000 Gloucester Park 14 Carryover unspent playground equipment budget 40,000 Parks & Gardens 15 Include revenue for 2019-20 Bridge grant 378,000 Construction 16 Include expenditure for Courtney Road bridge 54,000 Construction


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17 Include expenditure for West Bay Creek Road bridge 324,000 Construction 18 Carry over unspent rural reseals 244,000 Construction 19 Reduce Leeuwin Road reconstruction project 105,000 Construction 20 Reduce Warner Glen Road reconstruction project 91,500 Construction 21 Increase Rosa Glen Road reconstruction project 6,000 Construction 22 Reduce Wallcliffe Road reconstruction project 12,000 Construction 23 Reduce Regional Roads Group grant 135,000 Construction 24 Carryover Landfill Closure Management Plan 20,000 Waste Services 25 Carryover new waste cell & leachate pond project 700,000 Waste Services 26 Carryover fencing of landfill site 30,000 Waste Services 27 Carryover hooklift bin renewal 20,000 Waste Services 28 Carryover point of sale system 5,000 Waste Services

The 2020-21 Budget Summary that is included in the final budget document is reproduced in this item for reference.

Start of extract from 2020-21 Budget document 2020-21 Budget Summary The 2020-21 balanced budget seeks to build upon the COVID-19 pandemic recovery measures implemented during the last quarter of 2019-20 while also ensuring prudent financial management for the continued operational sustainability of the Shire. Recovery measures include no increase in the rates in the dollar and minimum payments compared to those applied during the 2019-20 financial year, the waiving of some business specific fees and charges and the inclusion of a fund to assist relief from financial hardship as well as promoting economic stimulus and community resilience. Also included within the budget is the continuation of the Margaret River main street upgrade project which is a significant and transformational project for our businesses, community and visitors. The first stage of this project comprising stormwater drainage system upgrades and construction of roundabouts at Wallcliffe Road/Forrest Road and Tunbridge Street/Churchill Avenue was completed in July 2020. Works to commence the second stage of the project which includes new footpaths, pedestrian crossings, parking bays, landscaping and electrical works for the Festival precinct (area from Willmott Avenue to Tunbridge Street including Fearn Avenue), were originally scheduled to commence in September 2020 but have been brought forward to coincide with the completion of stage one. The Shire has applied for State and Federal Government funding to complete the third stage of the project from Wilmott Avenue to Wallcliffe Road/Forrest Road as the balance of the Royalties for Regions grant of $5.290 million and the Shire funds and reserves of over $3.4 million are allocated to the first two project stages. The Shire’s annual budget reflects the wide range of services and facilities benefitting the Shire’s community and its many visitors. Highlights of the 2020-21 Budget include:

• contributions to hall and community groups of $0.143 million as well as contributions of $0.155 million to assist lessees of Shire property such as the Regional Environment Centre, Community Centre and Men’s Shed to maintain or develop buildings/facilities;

• community development expenditure of $0.259 million for youth, capacity building, community resilience, access and inclusion, arts and culture, age friendly and community grants programs;

• $0.144 million towards major (iconic) events and $0.088 million for local events; • continued financial support for the Shire’s 10 volunteer bushfire brigades and the SES unit; • community and recreation services including outside school hours care, libraries, recreation

and fitness centres, the aquatic centre, sporting fields, playgrounds, etc; • continuation of the 3 bins waste collection system at the same total waste collection and

disposal charge; • continued investment in sustainability initiatives and commitment to a climate action summit

focussing on adaptation; • specific environmental related project expenditure of $0.772 million as well as $0.090 million in

contributions to environmental groups;


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• over $1.3 million to renew and upgrade community buildings including works to the Witchcliffe and Alexandra Bridge halls, various asbestos removal and reinstatement projects and design development for the renovation of the Aquatic Centre building;

• $1 million to construct a synthetic turf hockey training facility is largely grant funded; • roads, paths and drainage upgrade work of $1.475 million (excluding the main street project)

and renewal works of $6.888 million; and • $0.963 million to replace heavy plant and light vehicles.

A summary of the Annual Budget 2020-21 compared to the Forecast Actual result and Annual Budget for 2019-20 is provided below for reference purposes:

It is expected the Shire will commence the budget year with a surplus of $2.248 million from 2019-20. This is an increase on the budgeted result expected for the year and is the result of the following:

• Carrying forward various operating expenditure projects totalling $0.369 million; • Carrying forward various capital projects totalling $1.137 million; • Carrying forward the advance payment for 2020-21 of Financial Assistance Grants of $0.742

million received in May 2020. Normally some under and over expenditures and revenues for the year would contribute to the amount carried forward. However, operating revenue losses during the year primarily resulting from the closure of facilities have been balanced with savings in operating expenditure. Expectations are that 2020-21 will end up with a balanced result. Rates Updated property values for rating purposes were received from Landgate for all rural properties in the Shire and are effective from 1 July 2020. Rural or Unimproved Value (UV) properties are revalued on an annual cycle and town site or Gross Rental Value (GRV) properties are revalued on a 3 years cycle. The next revaluation for GRV properties will be effective from 1 July 2021. Compared to the previous year’s valuations rural property values only decreased by an average of 0.01% and compares to last year’s average decrease of 0.32%. Valuations changed for 65 properties with 17 properties recording a decrease in valuation totalling $0.599 million and 48 properties recording an increase in valuation totalling $0.550 million. Almost half of the affected properties are in the Scott River and Nillup areas. Landgate advised “some variations to individual assessments may have occurred either as a product of the valuation process and/or inclusion of updated information such as soil types.”

Description 2020-21 Budget $’000s

2019-20 Forecast $’000s

2019-20 Budget $’000s

Rates 22,454 22,194 22,124 Operating Revenue 12,040 12,564 12,230 Operating Expenditure (40,091) (37,218) (38,145) Net Operating Result (5,598) (2,461) (3,792) Capital Grants 6,752 4,953 5,707 Profit/(Loss) on Asset Disposals 16 81 (23) Net Result 1,170 2,695 1,893 Asset Purchases (21,602) (17,235) (23,474) Asset Sale Proceeds 287 677 435 Borrowings Repaid (764) (925) (925) New Borrowings 810 0 Unspent Loan 194 224 272 272 Transfers to Reserve (423) (4,907) (1,113) Transfers from Reserve 8,531 8,588 10,195 Brought Forward Surplus 2,248 3,532 3,315 Closing Budget Position 0 2,248 0


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The impact of the valuation change upon individual property rates was calculated and it was determined that:

• rates for 17 properties will not change as they are on the minimum payment; • rates for 15 properties will decrease by a total of $2,586; and • rates for 33 properties will increase by a total of $2,498.

As the overall intent is to not increase property rates, Council will consider a rate concession for the 33 properties that would receive a rate increase when the new property valuations are applied against the rates in the dollar used for 2019-20.

Rate modelling statistics show that for the UV rural rating category most property owners (24%) will be charged a property rate between $1,401 and $1,600, the average rate will be $2,797 and the median rate $2,216. The change in property valuations is one of the variables considered when determining the rating approach for the budget year with other considerations including:

• expenditure and revenue forecast in the Shire’s Long-Term Financial Plan; • the perceived affordability within the community of rate increases; • increases in State Government charges; • the demand for services and whether the level of these services has changed; • changes in the cost incurred by the Shire for expenditures including labour, materials, utilities,

contractors and insurance; • various indices and forecasts used to measure changes in costs; • legislative compliance requirements; and • the shortfall in funding required to ensure a budget deficit is not recorded.

However, these considerations were essentially disregarded as Council at their meeting on 25 March 2020 authorised the CEO to develop a budget for 2020-21 based on a zero percent rate increase. Additionally, the Local Government (COVID-19 Response) Order 2020 came into effect on 21 April 2020 and modifies or suspends provisions of the Local Government Act and Regulations while a State of Emergency declaration is in force. In short, compliance with some rating provisions is not required if rates in the dollar and minimum payments are not increased compared to those applied in 2019-20. The following table compares the rates in the dollar and minimum payments for the current and previous financial years and shows there is no change.


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Rate Category Rate in $ 2020-21

Rate in $ 2019-20

Minimum 2020-21

Minimum 2019-20

Residential 10.7581 10.7581 $1,335 $1,335 Residential Vacant 20.6089 20.6089 $1,335 $1,335 Rural Residential 10.3055 10.3055 $1,625 $1,625 Rural Residential Vacant 20.0600 20.0600 $1,625 $1,625 Commercial, Industrial, Tourism 12.7427 12.7427 $1,434 $1,434 UV Rural 0.4705 0.4705 $1,498 $1,498 UV1 One non-rural use 0.5880 0.5880 $1,498 $1,498 UV2 Two non-rural uses 0.7057 0.7057 $1,498 $1,498 UV3 Over two non-rural uses 0.8233 0.8233 $1,498 $1,498 Strata titled vineyard 0.4705 0.4705 $1,498 $1,498 UV Conservation 0.4598 0.4598 $1,441 $1,441

The following chart compares annual rate increases to the change in the Perth Consumer Price Index1 and shows the gap has been decreasing and has now crossed due to rates not increasing. Although this situation is a response to the COVID-19 pandemic and the CPI increases are estimates, it does still demonstrate rate increases are becoming more affordable compared to past increases. The decline also means it is becoming increasingly difficult to fund expenditure demands that often increase by greater than CPI.

The overall objective for rating is to achieve equity and consistency between rate categories for similar land uses. This rate burden is represented in the following chart and shows that when rates levied are compared with the number of rateable assessments, residential ratepayers are subsidised by rural and commercial ratepayers. In total 87% of rateable assessments are rated using their GRV and contribute 84% of total rate income and 13% of properties are rated as UV and contribute 16% of total rate income. These ratios are similar to last year’s results.

1 Source of Perth CPI is the Australian Bureau of Statistics up to 2018-19 and WA Treasury forecasts for 2019-20 and 2020-21 included in the WA State Budget 2019-20, Budget Paper No. 3.


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For 2020-21 a total of $22.454 million is budgeted to be obtained from property rates (including interim and back rates of $0.130 million and after concessions of $0.009 million) and represents an increase of 1.17% on total rate revenue for 2019-20. The following chart compares actual rate revenue by year, with the annual increase in rate revenue and the annual agreed rate increase.

Interim rates raised after residential and commercial properties are developed and for new land lots released contributed to the higher annual percentage increases in rate income compared to the agreed annual rate increase. Growth in the number of properties for 2019-20 was similar to the previous year with the property database used to calculate rates for the budget having a total of 9,878 properties compared to 9,781 properties billed property rates in 2019-20. The increase of 97 properties for 2019-20 represents a growth rate of 1%. If this growth rate was to continue the number of properties would increase to 9,978 in 2020-21.


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Fees and Charges As a result of the COVID-19 pandemic and the objective of not increasing rates and by extension fees and charges, the majority of the Shire’s fees and charges for 2020-21 have not been changed from the amounts levied in 2019-20. During the height of the pandemic, Council authorised the waiving of non-regulatory Shire fees and charges until 30 June 2020 although this resolution was subsequently amended to exclude Waste Services fees and charges. Whilst this waiver has ended, the 2020-21 Schedule of Fees and Charges has included concessions for some business fees including for lodging houses, food businesses and directional signage. The objective of these concessions is to provide support to businesses as they recover from the pandemic. Total fees and charges are budgeted to be $9.764 million compared to the 2019-20 budget of $9.757 million and forecast actual for 2019-20 of $9.301 million. Total fees and charges are similar on a budget to budget basis while forecast actual fees and charges for 2019-20 did not achieve budget due to the COVID-19 fee waiver. The only change to fees and charges are for the HEART and holiday parks. HEART pricing has been reviewed to reflect industry standards and the charging streams have been reduced from three to two being commercial and not for profit. Fees for 2021-22 have been included for holiday parks to cater for customers booking in advance. The major contributors to fees and charges are waste collection and disposal charges, caravan park fees and recreation fees. The total amount of waste charges (rubbish collection and waste facilities maintenance rate) billed for individual properties will remain at $498 and includes the collection charges for the 3 bins system of $318 and the waste facilities maintenance rate of $180. Fees and charges constitute 24% of total budgeted revenue and income from property rates constitutes 54%. As these are the Shire’s main sources of revenue it is important to ensure the proportion raised does not decrease in order to ensure the Shire is controlling its own sources of revenue. The following chart shows the proportion of revenue for all sources of revenue and clearly shows how important fees and charges and property rates are to the Shire’s financial position and ongoing financial sustainability.


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The own source revenue coverage ratio compares own source operating revenue to operating expenses and measures the ability to cover operating expenses from own source revenue. Historically the ratio result has been in the range of 88% to 91% and is very close to the advanced standard benchmark set by the Department of Local Government, Sport and Cultural Industries of 90%. However, the ratio has declined in recent years due to annual rate increases reducing. For the 2020-21 Budget the ratio is calculated to reduce further to 81% and reflects the zero percent rate increase while most operating expenditure items have increased. Grants A total of $8.607 million of operating and capital grants and contributions are included in the budget. This amount is lower than originally anticipated as the Federal Government provided an advance payment of part of the 2020-21 allocation of the Financial Assistance Grants (FAGs) distributed by the WA Local Government Grants Commission (WALGGC). This advance payment of $0.742 million was received in May 2020 and is included in the brought forward amount for the 2020-21 Budget. The advance payment distorts comparison of financial results and ratios between years as it inflates operating grants for 2019-20 and understates operating grants for 2020-21. Operating grants of $1.855 million include:

• Emergency Services Levy (ESL) grants of $0.037 million for the SES and $0.391 million for Bushfire Brigade services as well as $0.351 million for Bushfire mitigation activity;

• contributions of $0.060 million for the Community Emergency Services Manager; • a coastal adaptation and planning grant of $0.088 million from the Department of Transport to

fund limestone cliff stability assessment and coastal investigations. • Community Planning and Development and Library grants of $0.015 million; • $0.048 million of grants for the Outside School Hours Care service were received in 2019-20

but have been recognised as revenue in this budget in accordance with Accounting Standards; and

• various other grants and contributions for specific projects and activities for business units. $6.752 million of capital grants and contributions are provided for specific purposes and include:

• $1.101 million for the replacement of four bushfire brigade vehicles for the Rosa Brook, Wallcliffe, Witchcliffe and Karridale brigades (the replacement of three of these vehicles were originally scheduled for 2019-20);

• $1.845 million from Main Roads WA (MRWA) through the Regional Roads Group for road works for Leeuwin Road, Warner Glen Road, Wallcliffe Road, Rosa Brook Road, Rosa Glen Road and the design of Cowaramup Bay Road;

• Roads to Recovery grants of $0.649 million have been allocated to rural road reseals, lower order roads renewals and asphalt overlays;

• $0.686 million from the Federal Government’s Local Roads and Community Infrastructure Project grant has bene allocated to various new projects;


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• A special purpose bridge grant of $0.630 million for Warner Glen Road bridge is expected from the WALGGC and $0.378 million of WALGGC bridge grants received in 2019-20 for Courtney Road bridge and West Bay Creek Road bridge have been recognised as revenue in this budget in accordance with Accounting Standards;

• a direct grant of $0.250 million from MRWA has been allocated to gravel re-sheeting; • $0.116 million from the South West Development Commission for the Cape to Cape winter

diversion trail; • $0.018 million from the Regional Bicycle Network for various path projects; • the construction of a synthetic surface hockey training pitch is expected to be partly funded by

a Community Sport and Recreation Facilities Fund (CSRFF) grant of $0.334 million, a $0.200 million grant from the Australia Sports Commission and a $0.175 million contribution from the Margaret River Hockey Club; and

• $0.200 million in developer contributions are to be transferred to the Developer Contributions reserve to fund future works.

Operating Expenditure Total operating expenditure of $40.091 million is budgeted for 2020-21 and compares to the budget and forecast actual for 2019-20 of $38.145 million and $37.218 million respectively with the increases being 5.1% and 7.7% year on year. The carryover of operating expenditure of $0.368 million from 2019-20 contributes to the larger percentage change being recorded when the budget to forecast actual are compared. The other major factor is operating expenditure savings were required in 2019-20 to offset revenue losses caused by the COVID-19 forced closure of revenue earning facilities.

The previous chart provides a breakdown of operating expenditure and shows that employee costs continue to be the Shire’s largest expenditure item with materials and contracts and depreciation being the next largest. Compared to the 2019-20 budget, depreciation as a proportion of expenditure has declined marginally from 25%, employee costs have remained steady at 40% and materials and contracts have increased from 27% to 28%. The fair value revaluation of the Shire’s plant and equipment at 30 June 2020 will result in asset values increasing and the impact upon depreciation has not been taken into consideration in this budget as these calculations will be undertaken in 2020-21. Prior to the mandatory revaluation of fixed assets coming into effect from 1 July 2012 the written down value of the Shire’s fixed assets was $189.754 million. At 30 June 2019 their value had increased to $451.365 million or an increase of 138%. With the addition of capital expenditure after depreciation of $12.085 million for 2020-21 the balance of fixed assets will increase to over $460 million. Over the


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same timeframe depreciation has increased from $5.587 million or 20% of operating expenditure in 2011-12 to the proposed $9.517 million or 24% of operating expenditure in 2020-21. The accuracy of the calculation and allocation of depreciation should improve as understanding of the Shire’s asset base through condition reports, useful life assessments, asset componentisation and determination of non-depreciable amounts improves. Employee Costs The Shire has budgeted for a workforce of 178.8 full time equivalent (FTE) staff in 2020-21 compared to 175.1 FTE budgeted last year. The increase of 3.7 FTEs compared to the 2019-20 budget is primarily due to the operating structure for the HEART being based on a Shire run model as opposed to a largely outsourced model. This resulted in an increase of 3.4 FTEs. Other additions include two marketing officers with one position redeployed from within the organisation, a part-time community Ranger (0.4 FTE), a cleaner for the Library (0.5 FTE) and an apprentice mechanic. These increases have been partly offset by savings in executive staff (1 FTE) as a result of an organisational restructure, the contracting of the lifeguard service (1.1 FTE) and some general savings across the organisation. Labour cost increases have been restricted to the across the board wage increase contained in the Shire’s 2019 Enterprise Agreement and performance increases for eligible employees. The Shire has also budgeted for a full workforce complement and has not included a vacancy rate as it is not possible to forecast expected vacancies and their duration. Furthermore, to minimise the financial impact of the new positions the budget has assumed only half of their labour cost for the year on the basis that recruitment is required. On a budget to budget basis total employee costs included in operating expenditure are expected to increase from $15.280 million to $16.166 million or by 5.8%. This percentage increase allows for the wage increase, performance increases for eligible employees and growth in the workforce. The following table compares employee expenses for 2020-21 against the budget and forecast actual for 2019-20.

Category 2020-21 Budget 2019-20 Budget 2019-20 Actual Provisions 1,284,336 1,161,756 1,169,946 Salaries & Wages 12,641,873 11,874,196 12,307,327 Superannuation 1,600,454 1,561,580 1,608,684 Workers Compensation 215,512 147,244 147,660 Fringe Benefits Tax 85,420 70,420 56,785 Recruitment expenses 26,000 24,880 17,899 Training & Education 262,000 360,667 240,546 Uniforms & PPE 50,320 88,225 90,166 Memberships 0 0 1,592 Total 16,165,915 15,279,729 15,640,605

On a budget to budget basis the largest area of increase is, as expected, salaries and wages due to higher wage costs. These wage costs flow on to increase the salary associated items of leave, superannuation and workers compensation. Reduced training costs have partly offset these increases, as it is expected more training will be undertaken remotely rather than in person. In the table above employee expenses for 2019-20 are shown as being over budget as they are being compared to the approved budget. However, this budget was amended to take into consideration changes in staffing levels for the HEART and Marketing. It is expected costs may be under the amended budget due to reduced training, education and conferences expenditure with training courses being cancelled and staff being unable to attend training as a result of COVID-19 restrictions. The following chart compares operating employee costs and rates and shows that for 2020-21 budgeted operating employee costs constitute approximately 72% of budgeted rates and is higher than last year’s ratio of 71%. The ratio is now showing an increasing trend.


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Capital Works Programme $21.602 million has been allocated towards capital works and the following table provides a breakdown of the type of expenditure and the source of funding.

Capital Expenditure and Funding Source $ % Asset renewal expenditure 9,249,705 42.8% New assets 3,734,608 17.3% Asset upgrades 8,617,500 39.9% Total Capital Expenditure 21,601,813 Funded by: General revenue 4,419,481 20.5% Reserves 8,333,474 38.6% Grants and contributions 6,391,627 29.6% Loan borrowings & unspent loan 1,033,705 4.7% Asset sale proceeds 286,500 1.3% Previous period funding (carry overs) 1,137,026 5.3%

The table shows most expenditure is required to renew existing capital assets as opposed to upgrading assets or acquiring new assets. Focussing on asset renewal is the preferred asset management strategy and ideally should exceed the annual depreciation allocation which would demonstrate that assets are being renewed at a greater rate than they are deteriorating. This result is measured by the Asset Sustainability ratio and for 2020-21 this is not quite the case with the ratio’s result being 97.2%. The main street upgrade project has contributed to this less than optimal result as the project has been classified as upgrade although part of the works could be considered renewal. The classification of capital expenditure projects is a developing asset management process that has an impact upon ratio results. The following chart provides an indication of capital expenditure and funding by business units with capital expenditure exceeding $0.100 million and clearly shows road and related expenditure is the dominant area of capital expenditure and that a range of funding sources are used.


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New asset expenditure proposed for the year includes:

• $0.450 million for a tracked loader for the landfill site to replace the leased equivalent; • Installation of a fire detection system for the Margaret River Recreation Centre is budgeted to

cost $0.100 million and has been carried over from 2019-20; • Installation of solar panels on the Civic and Administration Centre at an expected cost of $0.160

million and has an estimated payback of approximately 4 years; • A hockey training facility, half size ground with a synthetic pitch, is budgeted to cost $1.003

million and is largely funded by grants, contributions and reserves; • Various works to the HEART building that were excluded from the building contract but are

required for compliance reasons and to improve the useability of the facility will be funded by a loan;

• Funds have been carried over for the Cape to Cape winter diversion trail along the Margaret River and for the Flinders Bay to Cape Leeuwin path;

• $0.190 million for new plant items; and • construction of the next stage of chalets at Turner Caravan Park ($0.430 million) is funded from

reserves. The redevelopment of the Margaret River main street is the major asset upgrade project with $4.739 million allocated in the budget funded from the Margaret River CBD Redevelopment reserve. Stage 2 of this project is currently in progress and scheduled for completion in September/October 2020. Stage 3 works from Willmott Avenue to Forrest Road/Wallcliffe Road are dependent upon additional funding being received. Other asset upgrade/expansion projects include:

• $0.700 million has been allocated for the continuation of the waste cell construction and leachate pond project at the Davis Road landfill and is funded from the Waste Management reserve;

• Various road, path and carpark expansion projects totalling over $0.564 million; • $1.116 million for Rosa Glen Road is classified as an upgrade project but would include a

renewal component; • Ashton Street and Kevill Road projects are funded from developer contributions; and • $0.150 million has been allocated to Turner Holiday Park services upgrades.

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

Capital Expenditure & Funding

General Revenue Reserves Grants & Contributions

Loans & Unspent Loans Asset Sale Proceeds Carry Over Funds


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The majority of road and related infrastructure projects have been categorised as asset renewal expenditure as the scheduled works have the objective of restoring service levels. $3.356 million is allocated to road and infrastructure preservation works with majority of road works funded by the State Government’s Regional Road Group grants administered through Main Roads WA. Major road rehabilitation projects include the continuation of Leeuwin Road ($0.750 million), Warner Glen Road ($0.478 million) and Rosa Brook Road ($0.300 million). 2020-21 is the second year of the latest five years Roads to Recovery grant allocation from the Federal Government and $0.649 million has been allocated towards funding various preservation works including asphalt overlays, rural reseals and lower order roads renewals. Details of each capital project and their proposed funding source are included in the Capital Works Expenditure and Funding Schedule included within the supplementary information to the budget. Loan Borrowings The following chart compares loan principal outstanding, principal and interest repayments since 2016-17. Principal and interest repayments have increased in recent years as a result of new borrowings in 2017-18 and 2018-19 for the HEART project, asbestos removal and reinstatement projects and the Margaret River Youth Precinct. A new loan of $0.810 million for various building projects is budgeted for 2020-21. Consequently, loan principal outstanding is expected to increase to $8.518 million from $8.472 million last year but is still below the peak of $9.751 million at 30 June 2018. Principal repayments for 2020-21 total $0.764 million and interest repayments, including the Government Guarantee Fee, total $0.452 million.

Reserves The forecast balance of reserves at 30 June 2020 of $22.288 million exceeded budget expectations primarily due to the delayed commencement of the Margaret River main street project not requiring the full transfer of funds from the Margaret River CBD Redevelopment reserve. Reserve balances are budgeted to decrease to $14.181 million at 30 June 2021. However, this balance is expected to reduce as no transfers have been budgeted from the Emergency Disaster Relief reserve although this reserve will be drawn down upon progressively to fund COVID-19 economic stimulus, community resilience and financial hardship measures. For 2020-21 transfers from reserves of $8.529 million are expected for various projects including:

• Margaret River main street upgrade ($4.739 million);


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• Turner Holiday Park chalets and ablutions facility and service upgrades ($0.910 million) from the Caravan Park upgrade reserve;

• replacement of mobile plant and equipment ($0.370 million); • the Flinders Bay to Cape Leeuwin Path ($0.100 million); • Kevill road widening ($0.300 million), Ashton Street reconstruction ($0.200 million) and

Witchcliffe Hall project ($0.070 million) from the Developer Contributions reserve; • Gnarabup foreshore path realignment ($0.238 million) from the Cedarvale reserve; • Hockey training facility ($0.200 million); • Waste cell and leachate pond project and purchase of tracked loader ($1.150 million) from the

Waste Management reserve; and • Environmental management fund projects ($0.048 million) from the Biodiversity reserve.

Additionally, funds from the Developer Contributions reserve are used for principal and interest repayments for loans totalling $1.450 million drawn down for the Cultural Centre and Margaret River Youth Precinct projects. Transfers to reserves are expected to total $0.423 million of which $0.200 million are developer contributions to be received, $0.135 million is the transfer of plant costs recovered to the Plant Replacement reserve and the other transfers are various incomes received and required to be received such as Interest Free Loan proceeds and funds from the Old Settlement lease. Limited funds generated from operations has restricted the amount available to be transferred to reserves in 2020-21.

Should all budgeted reserve transfers occur the Shire’s most significant reserves would be:

• Waste Management reserve with $5.991 million; • Developer Contributions reserve with $1.114 million; • Road Assets reserve with $1.000 million; • Gravel Pits reserve with $0.787 million; • Plant Replacement reserve with $0.726 million; and • Infrastructure Contributions reserve with $0.593 million.

The balances of the Community Facilities reserve ($0.040 million) and Caravan Parks Upgrade reserve ($0.347 million) have declined as a result of some large past and expected transfers and it would be prudent to transfer funds to these reserves to assist funding of future capital projects.

End of extract from 2020-21 Budget document


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Material Variances Section 34 (5) of the Local Government (Financial Management) Regulations 1996, require local governments to adopt a percentage or value for the reporting of material variances in the monthly statement of Financial Activity. The Australian Accounting Standards Board 1031 July 2004 (AASB) define the term “Material Variance” as “Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial report. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or a combination of both, could be the determining factor.” To ensure compliance with Local Government (Financial Management) Regulations 1996 Regulation 34 (5) & AASB 1031, officers recommend a monthly variance for reporting of material variances, where financial activity is greater than 10% and $10,000. These parameters have been used for variance reporting in the monthly financial report for a number of years and are considered to have successfully captured material variances for revenue and expenditure items. Reserves The following additions and changes to Reserve accounts are proposed in accordance with Section 6.11 of the Local Government Act 1995:

• addition of the Legal/Risk reserve to provide funds for assistance with legal and risk matters Summary As discussed within this report, key stakeholders have had input into the development of the Annual Budget for 2020-21. This budget has been developed on sound financial management principles and has considered the Shire’s Community Strategic Plan 2036, Corporate Plan and Long-Term Financial Plan 2018-19 to 2027-28. It is therefore recommended that Council adopts the Annual Budget 2020-21. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS The Annual Budget 2020-21 has been prepared in accordance with the Local Government Act 1995 and associated Local Government (Financial Management) Regulations 1996, together with the Australian Accounting Standards. Section 6.2 of the Local Government Act and, Part 3 of the Local Government (Financial Management) Regulations 1996 detail the form and manner in which an annual budget is to be presented to the Council for adoption. In accordance with Section 6.36 of the Local Government Act 1995 the Shire has given the appropriate notice of its intention to impose differential general rates and specified minimum rates in respect of each differential rate category. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 5: Effective leadership and governance Community Outcome 2: Effective and integrated strategy, planning, financial and asset management Strategic Response 3: Develop long term Informing Strategy including asset and financial management aligned to the Community Strategic Plan. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications The adoption of the 2020-21 Annual Budget determines the financial operations of the Shire for the 2020-21 financial year.


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Long Term Financial Plan The 2020-21 Annual Budget will inform the development of the Long Term Financial Plan. Whole of Lifecycle considerations The 2020-21 Annual Budget includes projects and asset purchases that have cost implications over their lifecycle. SUSTAINABILITY IMPLICATIONS Environmental The 2020-21 Annual Budget includes activities and programs that take into consideration the Shire’s key result area of valuing, protecting and enhancing the natural environment. Social The 2020-21 Annual Budget includes activities and programs that take into consideration the Shire’s key result areas of welcoming, inclusive and healthy communities and ensuring sustainable development. Economic The 2020-21 Annual Budget includes activities and programs that take into consideration the Shire’s key result areas of a vibrant and diverse economy and effective leadership and governance. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Absolute Majority RECOMMENDATION Part 1 – Budget for 2020-21 That Council, having considered the possible consequences of the COVID-19 pandemic and the strategic direction of the Shire outlined in the Community Strategic Plan 2036, the Corporate Plan, the Long Term Financial Plan; and having considered proposed revenues, expenditures and budget efficiency measures for 2020-21; and in accordance with the provisions of section 6.2 of the Local Government Act 1995 and Part 3 of the Local Government (Financial Management) Regulations 1996, adopts the Annual Budget 2020-21 for the Shire of Augusta Margaret River which is included as Attachment 1 and includes the following:




$22,453,626 • Notes to and Forming Part of the Budget • Business Unit budget details • Supplementary information including the Capital Works Programme, operating and capital

grants, items carried forward from 2019-20 and details of reserve transfers. Part 2 – Material Variance Reporting for 2020-21 That Council in accordance with regulation 34(5) of the Local Government (Financial Management) Regulations 1996 and AASB 1031 Materiality, adopts a level for reporting of material variances to be used in the monthly financial activity statement reports for 2020-21 of financial activity being greater than budget by 10% and $10,000. ADVICE TO APPLICANT / PROPONENT Nil


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ATTACHMENTS 1. 2020-21 Annual Budget RECOMMENDATION / COUNCIL DECISION CR KENNAUGH, CR DANIEL OM2020/126 Part 1 – Budget for 2020-21 That Council, having considered the possible consequences of the COVID-19 pandemic and the strategic direction of the Shire outlined in the Community Strategic Plan 2036, the Corporate Plan, the Long Term Financial Plan; and having considered proposed revenues, expenditures and budget efficiency measures for 2020-21; and in accordance with the provisions of section 6.2 of the Local Government Act 1995 and Part 3 of the Local Government (Financial Management) Regulations 1996, adopts the Annual Budget 2020-21 for the Shire of Augusta Margaret River which is included as Attachment 1 and includes the following:




$22,453,626 • Notes to and Forming Part of the Budget • Business Unit budget details • Supplementary information including the Capital Works Programme, operating and

capital grants, items carried forward from 2019-20 and details of reserve transfers. Part 2 – Material Variance Reporting for 2020-21 That Council in accordance with regulation 34(5) of the Local Government (Financial Management) Regulations 1996 and AASB 1031 Materiality, adopts a level for reporting of material variances to be used in the monthly financial activity statement reports for 2020-21 of financial activity being greater than budget by 10% and $10,000.

CARRIED BY ABSOLUTE MAJORITY 7/0 Mr John Bradbury entered Chambers at 5.50pm. As the item in which Mr Bradbury’s deputation related, Item 11.2.5 Building Envelope Variation – 59 (Lot 17) Wooditch Road, Margaret River, had not yet been considered, the Shire President changed the order of business to allow Mr Bradbury address Council.

7.1 Item 11.2.5 Building Envelope Variation – 59 (Lot 17) Wooditch Road, Margaret River – Mr John Bradbury

Mr John Bradbury of 72 Wooditch Road, Margaret River, on behalf of immediate neighbours; Vic Poudziunas; Hamish Worsley; and Richard Balls, addressed Council in relation to Item 11.2.5 Building Envelope Variation – 59 (Lot 17) Wooditch Road, Margaret River. Mr Bradbury spoke against the Officer’s Recommendation. The Shire President thanked Mr Bradbury for his deputation. The Shire President then brought forward Item 11.2.3 Transition of Wallcliffe Bush Fire Brigade and Rosa Brook Bush Fire Brigade to DFES, for consideration while concerned members of the public remained in the gallery.


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11.2.3 TRANSITION OF WALLCLIFFE BUSH FIRE BRIGADE AND ROSA BROOK BUSH FIRE BRIGADE TO DFES LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE EMS/2 REPORT AUTHOR Adam Jasper, Community Emergency Services Manager AUTHORISING OFFICER Nick Logan, Director Sustainable Development and Infrastructure

Cr Earl disclosed an impartiality interest in this Item at Item 3.1. IN BRIEF • In November 2019, Council authorised the CEO to seek support from the Fire and Emergency

Services (FES) Commissioner regarding a possible transition of the Wallcliffe Bushfire Brigade to DFES management.

• In February 2020, Council authorised the CEO to seek support from the FES Commissioner regarding a possible transition of the Rosa Brook Bushfire Brigade to DFES management.

• In principle support for the transition of both brigades was subsequently provided by the FES Commissioner with instruction to pursue this after the fire season.

• Initial discussions between the Shire CEO and the DFES Superintendent Lower South West (LSW) commenced in February 2020 but were suspended due to the redeployment of resources to manage the impact of the COVID pandemic.

• Meetings were held with the Shire, the DFES Superintendent LSW and each of the two brigades in May 2020, during which an initial draft Memorandum of Understanding (MoU) was discussed.

• Approval for the proposed MoU was subsequently provided by both brigades. • As per Council directive, consultation with the other eight Shire Brigades was also undertaken to

ascertain any possible operational impacts of this model on those brigades and the overall response coordination. This consultation exercise did not identify any significant issues or concerns in regard to operational capability for the Shire.

RECOMMENDATION That Council: 1 Endorses the transfer of Rosa Brook Bush Fire Brigade and Wallcliffe Bush Fire Brigade to DFES

administration and management; 2 Authorises the Chief Executive Officer to write to the Commissioner of Fire and Emergency

Services requesting formal acceptance for the transfer of Wallcliffe Bush Fire Brigade and Rosa Brook Bush Fire Brigade to DFES, in line with the Memorandum of Understanding (Attachment 1 and 2);

3 Authorises the Chief Executive Officer to execute DFES endorsed Memorandum of Understanding; and

4 Terminates membership of the Wallcliffe Bush Fire Brigade and Rosa Brook Bush Fire Brigade on the Shire of Augusta Margaret River Bush Fire Advisory Committee, as per s.5.11 (1) (a) of the Local Government Act 1995 and authorises the appointment of both brigades to BFAC as non-voting members to enable continued attendance and input.

LOCATION PLAN Nil TABLED ITEMS Nil


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BACKGROUND The discussion relating to a possible transfer of brigades to DFES predates the current Community Emergency Services Manager (CESM)’s appointment and has been the subject of debate at BFAC, in Council and amongst the Shire brigades for many years. In September 2019, Council made the decision to not transfer control of all Shire brigades to DFES administration after an extended period of consultation and input from all brigades through a Transition Steering Committee. Concerns raised during this process related to the fact DFES had not been in a position to advise what any proposed MoU may provide for until a formal approach had been made to DFES from the Shire. Following the Council Decision in September 2019, separate approaches to Council were subsequently made by the Wallcliffe and Rosa Brook Bush Fire Brigades, both requesting the transition of their brigade to DFES administration. Through the process outlined below, both the DFES Superintendent LSW and Shire CEO are satisfied that the proposed MoU is the most appropriate model to transfer administration of the two brigades to DFES. The overarching guiding principle was to ensure the relationship between the two transitioning brigades, the remaining eight brigades, the Shire and DFES was not negatively affected and that service levels to the community would not be diminished in any way. The model being put forward for approval is considered the most appropriate in order to protect this essential and vital working relationship. CONSULTATION AND ADVICE External Consultation • DFES Superintendent Lower West Region • DFES Legal Department Internal Consultation • Community Emergency Services Manager (CESM) • Chief Bushfire Control Officer (CBFCO) • Bushfire Brigade delegates to Bush Fire Advisory Committee (BFAC) • Bushfire Brigade Captains, both as a group and individually • Director Sustainable Development and Infrastructure • Manager Legal and Governance DISCUSSION / OFFICER COMMENTS In developing the MoU model, the following were considered key priorities:

1. No loss of protection or coverage to the affected communities 2. No impact to the service level required on remaining Shire brigades 3. No financial impacts on Shire’s ability to fund remaining brigades 4. Addressing the concerns of the Wallcliffe and Rosa Brook BFBs 5. Protect the existing working relationship between DFES, the Shire and all brigades

Points 1 through 3 are addressed through this document. Point 4 has been addressed where possible and within Legislative and DFES Doctrine limitations. The DFES Superintendent LSW advised that point 5 is their most important consideration in developing the MoU and anything that may jeopardize this will not be considered by DFES. Prior to developing the proposed new model there were various options discussed between the CESM and the LSW Superintendent as follows: Gazetting of the greater Wallcliffe and Rosa Brook Local Government areas by DFES through the Fire Brigades Act 1942 • DFES LSW Superintendent advised that this was not supported, as the FES Commissioner has no

interest in taking on any Local Government Bushfire Responsibilities for individual brigades where Local Government retains the majority control and where it is a Local Government responsibility.


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• Not supported by the CESM due to loss of situational awareness across a significant portion of the Shire by both the CBFCO and CESM.

• Little or no likelihood of the proposed areas meeting the requirements to satisfy gazetting of any area outside of the current townsites.

• DFES Superintendent LSW and CESM were both in agreement that the model that exists at the moment is currently working well with regard to response and because there is no other viable option that would improve from the current situation, the status quo with regard to response is supported. This includes the continued appointment of future Wallcliffe and Rosa Brook FES members as Shire appointed Fire Control Officers, however the number of appointments will need to be reviewed at a later date.

• Under the Australasian Inter-Agency Incident Management System (AIIMS), Unity of Command is

a key principle which both the Shire and DFES utilise in the management of incident response. It is considered that the CBFCO is best suited to retain overall control across the Local Government area unless a Section 13 notice has been issued under the Bush Fire Act to an escalating incident that may move beyond Level 1 to Level 2 or 3. The Shire is unique in this respect in that it has a successful history of managing Level 2 incidents, with the most recent being the West Bay Creek fire with little or minimal assistance from DFES.

• Gazetting would result in an Emergency Services Levy rate increase to the ratepayers in the

localities of Wallcliffe and Rosa Brook with no increase in service level being proposed as a result. This was not considered appropriate or necessary, especially given the current economic climate and the decision by Council not to increase rates in 2020/21.

Collapse of the Wallcliffe Volunteer Fire and Rescue Service into the current Prevelly site, and Shire to create new Bush Fire Brigade cover the existing Local Government area Not supported due to cost of establishing a new station in Prevelly, also noting that the new Shire brigade membership base would in all likelihood continue to be drawn from the existing membership base. The Process Undertaken Upon advice and in principle support of the FES Commissioner, the Shire CESM and DFES LSW representative have worked towards developing a model that will be acceptable to both the Shire and DFES. This process was interrupted by the global COVID pandemic as both organisations’ resources were redirected to address the impact of this. As soon as practicable, development of this MoU recommenced in May 2020, with the Shire CESM having undertaken some work in the background during the “shutdown” of discussions. • On 21 May 2020 an initial draft MoU was presented to the Wallcliffe and Rosa Brook brigades

individually by the Shire CEO, CESM and DFES Superintendent LSW. This was an opportunity for an overview to be provided and for DFES and the Shire to receive questions from brigade representatives. Electronic copies of the draft MoU were provided to both brigades for member distribution. The remaining eight brigades were also advised of the meetings and were offered an opportunity to be consulted following these meetings.

• On 27 May 2020 the Wallcliffe and Rosa Brook brigades put forward an alternative MoU for

consideration, which was forwarded to the DFES Superintendent LSW for legal review. • On 28 May 2020 a meeting was held with Witchcliffe, Cowaramup and Gracetown brigades to

discuss the draft MoU and seek input about any perceived operational impacts to the individual brigades. Rosa Brook and Wallcliffe had representation at this meeting, but had no input into the discussion apart from general questions directed to them from the other brigades.

• On 29 May 2020 a meeting was held with East Augusta, Molloy Island, Kudardup, Karridale and

Alexandra Bridge along the lines of the previous day’s meeting.

• From the two meetings, the main concerns raised were as follows: -


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o There is a perception that the transition is the start of a move by the Shire to divulge themselves of responsibility for all brigades. Brigades were advised this was not the case and that the two brigades seeking a transfer have approached the Shire individually seeking Council support for a transfer.

o There was a concern that the CBFCO will lose control and responsibility for fire response within two fairly significant portions of the Shire. Brigades were advised that under the proposed model the CBFCO will continue to manage bushfire response within its area of responsibility as per current arrangements (i.e. State Hazard Plan Fire and the Bush Fire Act).

o There was a concern that this was already a “done deal”. Brigades were advised this was not the case and still required Council and Commissioner consideration and approval.

o There was a concern that the CBFCO will lose the ability to mobilise the two brigades to incidents within the Shire. Brigades were advised that this was not the case, and that mobilisation will still be made under existing arrangements between the Shire and DFES, ie through the DFES Communications Centre.

• Response and advice was received back from DFES about the requested changes from the

two brigades. The majority of proposed changes were rejected due to them not being in line with DFES doctrine. Further changes were suggested and supported by the Shire’s CESM.

• On 2 June the adjusted final MoU was provided to Rosa Brook and Wallcliffe outlining each of the changes included and providing reasons for rejecting suggested changes put forward by brigades.

• Ongoing – Regular contact was made with Captains regarding the progress of the MoU

discussions and seeking confirmation of any undisclosed impacts of MoU. Nothing of substance received.

• On 10 June, written approvals were received from Wallcliffe and Rosa Brook accepting the

attached draft MoU.

• On 15 June the final draft of the MoU was forwarded to the DFES Legal team and the Shire’s Manager Legal and Governance for a final review.

• On 26 June DFES legal advice was received and minor modifications were made to wording (these did not change the intent of the MOU).

• The Shire’s Manager Legal and Governance has reviewed the document and noted that the

transfer will require additional detail in relation to the transfer of assets (namely land, buildings, appliances and equipment), however this should not delay the progression of the MoU. Should Council wish to wait until the formalisation of the transfer process for assets, this could delay the MoU until after this coming fire season.

Shire Bush Fire Advisory Committee Membership An issue that still needs to be addressed as part of this process is the ongoing status of Wallcliffe and Rosa Brook’s involvement with the Shire’s Bush Fire Advisory Committee. Under the Bush Fires Act 1954 Section 67 the Shire can establish a Bush Fire Advisory Committee for the purposes of advising the local government on, amongst other things, “the formation of bushfire brigades” and “the co-operation and co-ordination of bush fire brigades in their activities”. Membership of the BFAC is dealt with in more detail under the AMR BFAC Instrument of Appointment and Delegation (reviewed 2019) and the AMR Bush Fire Procedure (reviewed 2018). Both documents are consistent with regard to voting membership, and states that it there shall be “one Bush Fire Control Officer or delegate from each Brigade”. The original intent was to allow members of each Shire Bush Fire Brigade to form a committee that can advise Council on Shire Bush Fire Brigade policies, procedures and with matters relating to the Shire brigades themselves. Confirmation received from other LSW region CESMs confirms that no other BFAC in the region has provided voting membership to any other body other than Shire Bush Fire Brigades (Shire of Donnybrook, City of Busselton, Shire of Nannup, Shire of Manjimup and Shire of Bridgetown-Greenbushes).


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While the transition of Wallcliffe and Rosa Brook from Shire control was not foreseen in the development and review of the two Shire BFAC documents, the situation of their participation on BFAC can be adequately addressed. Both Wallcliffe and Rosa Brook VFES can continue to attend BFAC without voting rights in line with other external organisations which currently attend BFAC – these included the Margaret River VFRS, Augusta VFRS, DBCA, DFES LSW and SES (section 4.1 Observers and advisers Bush Fire Procedure and Membership Instrument of Appointment). STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS The Shire will continue to manage its emergency management and bushfire mitigation responsibilities within the Shire of Augusta Margaret River as per relevant legislation such as the Bush Fires Act 1954 and Emergency Management Act 2005. • This will include the appointment of a CBFCO, DCBFCO(s) and Fire Control Officers as required

for the purpose of bushfire mitigation and permit issuing as per the Bush Fires Act 1954.

• The Shire will retain responsibility for bushfire response within the designated Local Government Bushfire Area of Wallcliffe and Rosa Brook unless a duly authorised Section 13 notice has been issued by the Fire and Emergency Service Commission for an individual incident.

• Under Section 67 of the Bush Fires Act 1954 the council has the power to establish an Advisory

Council which it has done so. Membership on this committee currently consists of one representative from each Shire Bush Fire Brigade. Continued voting membership on this committee by the two brigades would be outside the current Bushfire Procedure (2018) and Instrument of Appointment and Delegation. It is intended that the two brigades will continue to receive invitations to attend as observers only, in line with current practices applied to Margaret River Fire and Rescue Service, Augusta Fire and Rescue Service, DBCA, DFES, SES and Bushfire Ready Facilitator involvement.

STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 1: Valuing, protecting and enhancing the natural environment Community Outcome 5: Ecological resilience in the face of changing climate Strategic Response 2: Engage with researchers and the community to develop strategies to manage fire and biodiversity protection in the face of increasing frequency and intensity of bushfires Key Result Area 2: Welcoming, inclusive and healthy communities Community Outcome 6: Community health, safety and social justice in the face of changing climate Strategic Response 4: Enhance local emergency response and disaster management through collaboration PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications The transfer of the two brigades will see the Shire receiving a lessor Emergency Services Levy allocation in the coming years. This will be directly linked to the cost to the Shire of no longer having to administer the financial obligations relating to the provision of service by these two brigades. DFES have advised that the Shire will either be subject to an adjustment of allocated funds for the year 2020/21 or the adjustment will be made the following financial year 2021/22. The actual financial cost to the Shire is not ascertainable at this stage however is expected to be a reduction of approximately $20,000 to $30,000 per brigade in lost ESL funding. This will not impact on the remaining brigades as all reductions will be directly tied to the cost of maintaining each transferring brigade (i.e. vehicle servicing, insurance, PPE etc). Long Term Financial Plan Nil


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Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental The Shire’s Bush Fire Brigades currently play an important role in community prevention, preparedness and response. While the transition of the two brigades will remove them from direct Shire control and remove the Shire’s ability to direct the brigades in mitigation activities, they will still be available to assist subject to approval through the existing Shire/DFES relationship. The impact is expected to be minimal on Shire mitigation activities. Social Minimal social impact is expected as the brigades will still exist for the community to join or volunteer in emergency services, and the service to the community would continue in a seamless manner. There are no discernible volunteer implications. With removal of the brigades from direct Shire control and as supported by events of the 6 June 2019 at Jarrahwood, there is the possibility that FES appliances could be mobilised by DFES to attend an escalating out of Shire event with no consultation to the CBFCO. This would be the exception rather than the norm, and a conversation is held between the LSW representative and the CBFCO/CESM regarding any residual threat in the Shire before appliances are deployed out of the Shire. There is a possibility of the localities of Rosa Brook and Wallcliffe areas having extended turn out times if this was to occur again in the future, resulting in possible questions by ratepayers in the Shire asking why these resources are not present in the Shire. Economic Any reduction in ESL funding as a result of this transition will not impact the remaining brigades or on the Shire’s ability to adequately financially service the remaining brigades. The Shire will still be able to financially support the remaining brigades in line with current ESL and Shire allocations, as any reduction will be directly tied to actual costs incurred by Rosa Brook and Wallcliffe. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1 Endorses the transfer of Rosa Brook Bush Fire Brigade and Wallcliffe Bush Fire Brigade to DFES

administration and management; 2 Authorises the Chief Executive Officer to write to the Commissioner of Fire and Emergency




ADVICE TO APPLICANT / PROPONENT Nil


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ATTACHMENTS 1. Memorandum of Understanding – Wallcliffe Bush Fire Brigade 2. Memorandum of Understanding – Rosa Brook Bus Fire Brigade RECOMMENDATION CR MCLEOD, CR MELDRUM That Council: 1 Endorses the transfer of Rosa Brook Bush Fire Brigade and Wallcliffe Bush Fire Brigade to

DFES administration and management; 2 Authorises the Chief Executive Officer to write to the Commissioner of Fire and Emergency




0/0 Cr Earl moved the following amendment: AMENDMENT / COUNCIL DECISION CR EARL, CR GODDEN OM2020/127 That point 4 of the recommendation be amended with omissions shown in strikethrough and additions shown in underline as follows: 4 Upon gazettal by the FES Commissioner of the transfer of both Wallcliffe Bush Fire Brigade

and Rosa Brook Bush Fire Brigade to DFES administration and management, terminates membership of both brigades the Wallcliffe Bush Fire Brigade and Rosa Brook Bush Fire Brigade on the Shire of Augusta Margaret River Bush Fire Advisory Committee, as per s.5.11 (1) (a) of the Local Government Act 1995 and authorises the appointment of both brigades to BFAC as non-voting members to enable continued attendance and input.

CARRIED 7/0 This then became the primary motion: PRIMARY MOTION / COUNCIL DECISION CR MCLEOD, CR MELDRUM OM2020/128 That Council: 1 Endorses the transfer of Rosa Brook Bush Fire Brigade and Wallcliffe Bush Fire Brigade to

DFES administration and management; 2 Authorises the Chief Executive Officer to write to the Commissioner of Fire and Emergency



4 Upon gazettal by the FES Commissioner of the transfer of both Wallcliffe Bush Fire Brigade and Rosa Brook Bush Fire Brigade to DFES administration and management, terminates membership of both brigades on the Shire of Augusta Margaret River Bush Fire Advisory Committee, as per s.5.11 (1) (a) of the Local Government Act 1995 and authorises the appointment of both brigades to BFAC as non-voting members to enable continued attendance and input.

CARRIED 7/0


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11.2.5 BUILDING ENVELOPE VARIATION - 59 (LOT 17) WOODITCH ROAD, MARGARET RIVER LOCATION/ADDRESS 59 (Lot 17) Wooditch Road Margaret River APPLICANT/LANDOWNER Cameron Crothers-Stomps & Nadia Louise Jongen FILE REFERENCE PTY/5506 REPORT AUTHOR Matt Slocomb, Strategic Project Officer AUTHORISING OFFICER Nick Logan, Director Sustainable Development and Infrastructure

This Item was published as a late report on 14 July 2020. IN BRIEF • Development approval is sought for a dwelling, outbuilding and water tank at 59 (Lot 17) Wooditch

Road, Margaret River. The development requires modification of the existing building envelope. • The application was initially submitted as a building envelope modification only, to which four

objections were received. Concerns focused on setbacks, envelope size, perceived inconsistencies with the surrounding area, and potential impacts on vegetation.

• After the consultation period the application was revised to include details of the location of the dwelling, outbuilding and water tank, and the proposed envelope was reduced from 1993sqm to 1643sqm.

• The revised application is to be consistent with the Shire’s Local Planning Scheme and is recommended for approval.

RECOMMENDATION That the application is approved subject to conditions. LOCATION PLAN 59 (Lot 17) Wooditch Road, Margaret River (the Site) is 16,108sqm in area, and currently zoned ‘Rural Residential’ (see figure 1 below).


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Figure 1: Location Plan TABLED ITEMS Nil BACKGROUND Site History The site was previously developed with a double storey dwelling and ancillary buildings that were all located within the existing envelope. These buildings were destroyed in the 2011 Margaret River fires and the driveway, water tank and site works and retaining wall remain. Application Background The application was originally submitted to the Shire as a building envelope modification only. The application was advertised and received a number of submissions raising concerns (see consultation section of report). Concerns that were raised when the initial proposal was advertised related to the proposal not containing the building plans for the dwelling and the unknown impacts to the vegetation on Site. A summary of this initial concerns is as follows: • Once an envelope is approved, buildings can be located anywhere within the envelope without

the need for planning approval. • Clearing in accordance with the Bushfires Act is exempt outside a building envelope, i.e. to

provide an Asset Protection Zone (APZ) for an exempt structure. • The implication of this is that buildings located to the extremities of building envelopes can still

require clearing outside the envelope. • The type of building proposed can inform the extent of clearing required, for example non-

habitable structures (i.e. outbuildings) sufficiently separated from habitable buildings do not require an APZ or a BAL separation, therefore if these are placed at the extremities of the building envelope, they may not require any additional clearing.

The concerns raised by neighbours, as outlined above, and the lack of certainty as to the extent of clearing, were the reasons the applicant was advised that a building envelope modification in isolation would not be supported.


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As a result, the applicant has provided updated plans identifying the location of the dwelling, outbuilding and water tank, and has reduced the size of the envelope from 1993m² to 1643m2. THE PROPOSAL The application is to consider the modification of the existing building envelope by increasing its size from 932m² to 1643m² that includes a dwelling, outbuilding and water tank. The modified building envelope is located within the Site to utilise an existing cleared area, the Site of the previous dwelling. In the future the applicant’s intention is to apply to change the use of the proposed dwelling to an ancillary dwelling and construct the main dwelling. The location of this future main dwelling is shown on the Site plan as ‘future dwelling’; however it is not subject to this application (as per figure 3). PLANNING FRAMEWORK Local Planning Scheme No. 1 (LPS1) The Site is zoned ‘Rural Residential’ in accordance with LPS1. The Site is located within the Subdivision Guide Plan for Sussex Location 411, Wallcliffe Road, Margaret River which establishes the building envelope for the Site and surrounding properties (See Figure 2 below).

Figure 2: Subdivision Guide Plan Excerpt The size of the building envelopes throughout the original subdivision average approximately 972m2 (in area). The LPS1 allows for building envelopes up to 2000m2, which reflects the size commonly found with contemporary building envelopes. LPS1 sets out the setback requirements within the zone and outlines the criteria that are used to assess a proposal for a building envelope modification. The location of the modified building envelope meets the setback standards of the LPS1 and the associated criteria. Local Planning Strategy The site is located within ‘Visual Management Area A’, which is the highest classification of visual management control within the Shire. This is discussed further in the consultation section of the report. State Planning Policy 3.7 – Planning in Bushfire Prone Areas (SPP3.7) SPP3.7 incorporates a presumption against development that is rated to a BAL- 40 or BAL - FZ upon completion of development. The current BAL assessment for the Site shows a BAL-FZ. The BAL assessment indicates that a BAL-29 can be achieved by modifying a total of 28 meters of vegetation. The 28 meters can be measured from the location of any habitable buildings such as a dwelling, rather than the edge of the building envelope. This reduces the extent of the clearing that is required. Vegetation to the south west of the envelope is approximately 11 metres from the proposed dwelling.

––


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The original proposal to modify the building envelope extending (the envelope) in a south western direction (of the Site). The south western portion of the Site is steep, densely vegetated and the area where vegetation is the closest to the envelope. To achieve the BAL-29, this is the area that would have been impacted. With these concerns in mind, the building envelope has been pulled back from south western corner to reflect the original envelope. This is shown in Figure 3. This modification to the envelope reduces the amount of clearing to a similar level that would have been required for the existing envelope. Given that a BAL-29 rating is capable of being achieved, the proposal is consistent with SPP3.7. State Planning Policy 6.1 – Leeuwin Naturaliste Ridge (SPP6.1) The site is located in an area of Natural Landscape Significance under SPP6.1. Assessment against SPP6.1 is provided in the comment section of the report. CONSULTATION AND ADVICE The Shire received 4 submissions in objection to the proposal. The submissions have been included in a schedule of submissions as attached to this report (see Attachment 2). The other key issues arising from consultation, other than the ones discussed above, are discussed below: 1. The proposed setback of the building envelope to the northern boundary, brings it closer to the

dwelling on the adjoining property and raises privacy and amenity concerns. 2. Lack of basis for expansion – the existing envelope was sufficient for a large two storey house,

double garage and garden area and provided ability for screening between residences. 3. Changes to and expansion of the envelope, along with additional clearing will be inconsistent to

the remainder of the subdivision area where the environmental and landscape values were to be protected.

In response to the concerns that have been raised, modifications to the proposal have been made which have included reducing the size of the envelope, increasing setbacks from the south-western vegetated area of the Site and providing plans to show the location of the dwelling. These are discussed in detail in the discussion section of the report below. DISCUSSION / OFFICER COMMENTS Impacts on Vegetation The applicant has reduced the size of the proposed envelope and provided plans to show the location of the dwelling, outbuilding and water tank. This allows for a clearer understanding of the impacts to vegetation to achieve the required BAL-29. To show the relationship of the proposed building envelope with the existing building envelope, and the buildings refer to Figure 3 below.


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Figure 3 – Proposed Envelope and Location of Buildings (red line is proposed envelope) Both the future dwelling and dwelling are located mostly within the existing building envelope (shown in blue in Figure 3). The location will require some vegetation modification outside of the envelope, but it is no greater than what would be required for development within the existing building envelope. The BAL assessment is not required to identify exactly which trees are required to be removed to achieve the BAL-29. It is recommended that if the application is approved, a condition will require the identification of the trees and vegetation to be removed prior to any clearing works being undertaken. This will allow for some further discussions to ensure that where possible the mature trees are retained. The building envelope is to be extended to the north-eastern, for the outbuilding. The location of the outbuilding does not require any removal of vegetation. When an outbuilding is located over 6 metres from a dwelling, as is proposed, the outbuilding is not required to adhere to the BAL regulations for further clearing. Further reasons to support this aspect of the proposal are: • The outbuilding is located against a substantial battered rock wall that is already in place on site

and has the effect of lowering the building area by as much as 2 metres below the natural ground level when viewed form the north east, assisting in screening the structure from the adjoining property.

• The structure is compliant with the height and floor area limits of the Shires Local Planning Policy LPP1 relating to Outbuildings.

• The setback of the shed to the northern boundary is compliant with the 10 meters setback requirement of the Scheme.

• As outlined above this will not result in additional clearing needed to facilitate development.

Additional screening can be planted along the northern side boundary to screen the outbuilding, as requested by the neighbouring landowner. As with the outbuilding, the proposed water tank is not required to adhere to a BAL and for this reason vegetation modification will not be required. This will also allow for the retention of the vegetation to the southern side of the of the water tank which will provides screening between the tank and the southern adjoining property.


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For the most part the envelope is confined to previously developed areas of the site and for this reason is considered supportable. Landscape Values/Visual Character The site is located within ‘Visual Management Area A’, to which the following requirement applies: “Developments or changes in land use should result in an evident visual alteration to the landscape. Whilst changes may occur, the development or change of use should be of similar form, scale and pattern to the existing landscape.” In addition to the above, the development is located in an area of Natural Landscape Significance under the Leeuwin Naturaliste Ridge State Planning Policy, in which the following requirement applies: “In areas of Natural Landscape Significance, including where they are in Travel Route Corridors, the significant natural characteristics will be protected and provide adequate development setbacks. In these areas development will be screened from Travel Route Corridors except public recreation or safety facilities which may be seen in the foreground”. It is considered that the proposal is consistent with the above criteria. The development has been confined to historically cleared areas which benefits from vegetative screening around the majority of the envelope. The vegetation modifications required will have a degree of impact, however, as discussed previously, they are no more substantial than would be required if the development was confined to the current envelope. Additionally, the shed will be located on a cleared and retained area which is approximately 2 meters below the surrounding landscape which will further screen it from view. The changes made by the applicant are considered to be sufficient to reduce the visual impacts on the Site and are considered to be consistent with these requirements. As is standard practice within Visual Management Area A, a condition will be imposed limiting the use of reflective materials in the construction of the buildings on site. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Nil STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 3: Managing Growth Sustainably Community Outcome: Clearly defined areas for growth and renewal Strategic Response: Implement Local Planning Scheme. Service level strategy/plan: Provide Planning Services. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications Nil Long Term Financial Plan Nil Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental The proposal has been concentrated to already impacted areas of the site where possible. Social The proposal will provide additional housing stock in a manner that limits amenity impacts on adjoining property owners.


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Economic Construction of the dwelling on site will provide work for local trades and contractors. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION The applicant may apply to the State Administrative Tribunal (SAT) for a review of the Council’s decision. SAT have the ability to amend or set aside the Council decision. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council grants Planning Consent pursuant to Clause 68(2) of the Deemed Provisions of Local Planning Scheme No. 1 for the for the Dwelling, Outbuilding, Water Tank and Building Envelope Variation at 59 (Lot 17) Wooditch Road Margaret River subject to the following conditions:

1. The development is to be carried out compliant with the plans and documentation listed below and endorsed with Council’s stamp, except where amended by other conditions of this consent.

Plans and Specifications

P1 – P8 received at the Shire Offices on the 10 June 2020

3. If the development, the subject of this approval, is not substantially commenced within two (2) years from the date of this letter, the approval shall lapse and be of no further effect. Where an approval has lapsed, development is prohibited without further approval being obtained.

4. The revised building envelope hereby approved, wholly replaces that previously applicable to the site.

5. Clearing of vegetation is prohibited outside the building envelope, unless in accordance with the Bush Fires Act 1954 or required for the purpose of constructing an approved driveway, installing essential services, or removing dead or dangerous trees.

6. The outbuilding shall be used solely for purposes incidental and ancillary to the authorised use of the land.

7. The outbuilding shall not be used for human habitation.

8. The walls and roof of the buildings shall be clad in a non-reflective material and painted in a colour of natural or earth toning consistent with the existing landscape and existing development. To this end, reflective materials or reflective colours as cladding/external (including but not limited to) 'silver' sheeting painting white, cream, off white or pale grey are prohibited.

9. Prior to lodging a building permit application a plan identifying the extent of the clearing shall be submitted to the Shire for prior approval. The plan is required to identify which trees and vegetation are required to be removed to achieve a BAL 29 and outline the trees and vegetation to be maintained.

10. When undertaking any clearing, the Proponent shall take the following steps to minimise the risk of introduction and spread of dieback/weeds:

a) clean earth-moving machinery of soil and vegetation prior to entering and leaving the area to be cleared;

b) avoid the movement of soil in wet conditions; c) ensure that no dieback-affected materials are brought into an area that is not affected

by dieback; and


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d) restrict the movement of machines and other vehicles to the limits of the areas to be cleared.

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

(i) This is not a Building Permit. A Building Permit must be issued by the relevant Permit Authority before any work commences on site as per the Building Act 2011;

(ii) Health (Miscellaneous Provisions) Act 1911 and Department requirements in respect to the development and use of the premises; and

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

ATTACHMENTS 1. Building envelope plan 2. Schedule of submissions RECOMMENDATION CR EARL, CR That Council grants Planning Consent pursuant to Clause 68(2) of the Deemed Provisions of Local Planning Scheme No. 1 for the for the Dwelling, Outbuilding, Water Tank and Building Envelope Variation at 59 (Lot 17) Wooditch Road Margaret River subject to the following conditions:


Plans and Specifications P1 – P8 received at the Shire Offices on the 10 June 2020

2. If the development, the subject of this approval, is not substantially commenced within

two (2) years from the date of this letter, the approval shall lapse and be of no further effect. Where an approval has lapsed, development is prohibited without further approval being obtained.

3. The revised building envelope hereby approved, wholly replaces that previously

applicable to the site.

4. Clearing of vegetation is prohibited outside the building envelope, unless in accordance with the Bush Fires Act 1954 or required for the purpose of constructing an approved driveway, installing essential services, or removing dead or dangerous trees.

5. The outbuilding shall be used solely for purposes incidental and ancillary to the

authorised use of the land.

6. The outbuilding shall not be used for human habitation.

7. The walls and roof of the buildings shall be clad in a non-reflective material and painted in a colour of natural or earth toning consistent with the existing landscape and existing development. To this end, reflective materials or reflective colours as cladding/external (including but not limited to) 'silver' sheeting painting white, cream, off white or pale grey are prohibited.

8. Prior to lodging a building permit application a plan identifying the extent of the clearing

shall be submitted to the Shire for prior approval. The plan is required to identify which trees and vegetation are required to be removed to achieve a BAL 29 and outline the trees and vegetation to be maintained.


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9. When undertaking any clearing, the Proponent shall take the following steps to minimise the risk of introduction and spread of dieback/weeds:

a) clean earth-moving machinery of soil and vegetation prior to entering and leaving the area to be cleared;

b) avoid the movement of soil in wet conditions; c) ensure that no dieback-affected materials are brought into an area that is not

affected by dieback; and d) restrict the movement of machines and other vehicles to the limits of the areas

to be cleared. ADVICE NOTES a) You are advised of the need to comply with the requirements of the following other

legislation: (i) This is not a Building Permit. A Building Permit must be issued by the relevant

Permit Authority before any work commences on site as per the Building Act 2011; (ii) Health (Miscellaneous Provisions) Act 1911 and Department requirements in

respect to the development and use of the premises; and (iii) The Bush Fires Act 1954 as amended, Section 33(3), Annual Bush Fires Notice

applies to this property. 0/0

The motion lapsed for want of a seconder. Cr McLeod requested to move the following amendment: AMENDMENT That point 3 of the recommendation be amended with omissions shown in strikethrough and additions shown in underline as follows: 3. The revised building envelope hereby approved, wholly replaces that previously existing

envelope applicable to the site with regards to the western and eastern boundaries and with the northern and southern boundaries of the existing envelope to be retained.

Planting to be undertaken on the southern boundary to replace the cleared vegetation and to act as screening on the southern boundary.

As there was no motion ‘on the table’ to allow for an amendment, Cr McLeod subsequently withdrew the request and moved the following alternative motion: ALTERNATIVE MOTION CR MCLEOD, CR MELDRUM That Council grants Planning Consent pursuant to Clause 68(2) of the Deemed Provisions of Local Planning Scheme No. 1 for the for the Dwelling, and Building Envelope Variation at 59 (Lot 17) Wooditch Road Margaret River subject to the following conditions:


Plans and Specifications

P1 – P8 received at the Shire Offices on the 10 June 2020




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3. The southern boundary of the proposed building envelope is to be modified to accord with the side setback of the existing approved envelope boundaries. Plans to this effect are to be provided prior to the issue of a building permit.

4. The revised building envelope hereby approved (subject to condition 3 and 4), wholly

replaces that previously applicable to the site. 5. Clearing of vegetation is prohibited outside the building envelope, unless in accordance

with the Bush Fires Act 1954 or required for the purpose of constructing an approved driveway, installing essential services, or removing dead or dangerous trees.

6. The walls and roof of the buildings shall be clad in a non-reflective material and painted

in a colour of natural or earth toning consistent with the existing landscape and existing development. To this end, reflective materials or reflective colours as cladding/external (including but not limited to) 'silver' sheeting painting white, cream, off white or pale grey are prohibited.



8. When undertaking any clearing, the Proponent shall take the following steps to minimise

the risk of introduction and spread of dieback/weeds:

(a) clean earth-moving machinery of soil and vegetation prior to entering and leaving the area to be cleared;

(b) avoid the movement of soil in wet conditions; (c) ensure that no dieback-affected materials are brought into an area that is not

affected by dieback; and (d) restrict the movement of machines and other vehicles to the limits of the areas to

be cleared. 9. Planting to be undertaken on the southern boundary to replace the cleared vegetation

and to act as screening on the southern boundary.

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


Permit Authority before any work commences on site as per the Building Act 2011; (ii) Health (Miscellaneous Provisions) Act 1911 and Department requirements in


applies to this property. 0/0

Cr McLeod, with consent of the seconder, added the following condition to the alternative motion:

9. Planting to be undertaken on the southern boundary to replace the cleared vegetation and to act as screening on the southern boundary.

During debate Cr Cristoffanini moved the following procedural motion to allow officers prepare wording for an amendment: PROCEDURAL MOTION / COUNCIL DECISION CR CRISTOFFANINI, CR GODDEN OM2020/129 That the meeting adjourn for five minutes.

CARRIED 7/0


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The meeting adjourned at 6.16pm The meeting resumed at 6.20pm Cr Daniel then moved the following amendment: AMENDMENT / COUNCIL DECISION CR DANIEL, CR CRISTOFFANINI OM2020/130 That the amendments as shown in underline be added: That Council grants Planning Consent pursuant to Clause 68(2) of the Deemed Provisions of Local Planning Scheme No. 1 for the for the Dwelling, outbuilding and Building Envelope Variation at 59 (Lot 17) Wooditch Road Margaret River subject to the following conditions:


Plans and

Specifications P1 – P8 received at the Shire Offices on the 10 June 2020



3. The southern and northern boundary of the proposed building envelope is to be

modified to accord with the side setback(s) of the existing approved envelope boundaries. Plans to this effect are to be provided prior to the issue of a building permit.

4. The northern boundary of the proposed building envelope is to be modified to exclude

the land not otherwise occupied by the outbuilding. 5. The revised building envelope hereby approved (subject to condition 3 and 4), wholly











affected by dieback; and


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(d) restrict the movement of machines and other vehicles to the limits of the areas to be cleared.

10. Planting to be undertaken on the southern boundary to replace the cleared vegetation




Permit Authority before any work commences on site as per the Building Act 2011;

(ii) Health (Miscellaneous Provisions) Act 1911 and Department requirements in respect to the development and use of the premises; and

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

CARRIED 7/0 This then became the primary motion: PRIMARY MOTION / COUNCIL DECISION CR MCLEOD, CR MELDRUM OM2020/131 That Council grants Planning Consent pursuant to Clause 68(2) of the Deemed Provisions of Local Planning Scheme No. 1 for the for the Dwelling, outbuilding and Building Envelope Variation at 59 (Lot 17) Wooditch Road Margaret River subject to the following conditions:


Plans and

Specifications P1 – P8 received at the Shire Offices on the 10 June 2020



3. The southern boundary of the proposed building envelope is to be modified to accord

with the side setback of the existing approved envelope boundaries. Plans to this effect are to be provided prior to the issue of a building permit.

4. The northern boundary of the proposed building envelope is to be modified to exclude

the land not otherwise occupied by the outbuilding. 5. The revised building envelope hereby approved (subject to condition 3 and 4), wholly






68

8. Prior to lodging a building permit application a plan identifying the extent of the clearing shall be submitted to the Shire for prior approval. The plan is required to identify which trees and vegetation are required to be removed to achieve a BAL 29 and outline the trees and vegetation to be maintained.





affected by dieback; and (d) restrict the movement of machines and other vehicles to the limits of the areas to

be cleared. 10. Planting to be undertaken on the southern boundary to replace the cleared vegetation



legislation: (i) This is not a Building Permit. A Building Permit must be issued by the relevant Permit

Authority before any work commences on site as per the Building Act 2011; (ii) Health (Miscellaneous Provisions) Act 1911 and Department requirements in


applies to this property. CARRIED 7/0


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11.1.2 NOTES OF COUNCILLOR AGENDA BRIEFINGS AND CONCEPT FORUM SESSIONS FROM 7 APRIL TO 24 JUNE 2020 LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE COR/221 REPORT AUTHOR Claire Schiller, Governance Officer / Council Support AUTHORISING OFFICER Ian McLeod, Manager Legal and Governance

IN BRIEF • Council conducts bi-monthly as required Councillor Briefing Sessions which are run in accordance

with a Council adopted Policy and Department of Local Government Sport and Cultural Industries (DLGSC) Guidelines.

• Council’s policy for the conduct of the Councillor Information Briefing Sessions provides for the proceedings of the briefings to be brought to Council and for wider community awareness as a public record in the form of notes as an additional accountability mechanism.

• Notes of recent Councillor Briefing sessions are presented to be received by Council in accordance with Council’s policy.

RECOMMENDATION That Council receives the Notes of Councillor Agenda Briefing Sessions from 7 April 2020 to 24 June 2020. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND The purpose of Councillor Agenda Briefings and Concept Forums is to: 1. Provide relevant information so that Councillors are better informed when participating in Council

decision making processes. 2. Provide a forum for two-way communication between elected members and key staff members on

important Council related matters. 3. Provide an inclusive opportunity for general community members and the press to receive the

same information on Agenda Items being provided to elected members on a range of relevant topics

Agenda briefings and workshops sessions are centred on one or more of the following outcomes which can be classified under the DLGSC Guidelines for Councillor Forums as either a Concept or an Agenda Forum: Concept Forums / Workshops Concept forums generally relate to strategic matters that are no yet on a Council meeting agenda. Concept forums are generally closed to the public to facilitate the open discussion of preliminary ideas and concepts by Councillors, but may be open to the public where the CEO or President believe it would be beneficial. Matters to be discussed at a Concept forum may include; • A statement of governance processes and effectiveness


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• a statement of principles on key issues • guidance to the CEO on further avenues of research • compiling a list of critical issues resulting from the briefing • the brainstorming of ideas • policy development and direction (but not adoption) • ongoing discussion of the Shire’s strategic direction Agenda Briefings Agenda Briefing Sessions are open to all elected members and generally to all members of the public and press. The Chief Executive Officer is to be in attendance and other relevant Directors and staff as required by the CEO for the provision of information to elected members. Matters of a confidential nature to be included in a Council agenda will be discussed at closed briefing sessions (i.e. not open to the public). Otherwise normal briefing sessions will be open to the public at a suitable publicly accessible time. Matters dealt with at agenda briefings may include; • breaking down of complex issues before Council • clarification of items on the Council agenda • requests for additional information on items on the Council agenda • confidential discussion of items which are on the agenda and which will be discussed with

members of the public excluded CONSULTATION AND ADVICE External Consultation The Local Government Operational Guidelines Number 5 Council Forums have been considered and adapted for use in the Shire of Augusta Margaret River setting. Internal Consultation Nil DISCUSSION / OFFICER COMMENTS The following are the informal notes of the Councillor Agenda Briefings and Concept Forum Sessions recently held as recommended by Council’s adopted policy which is consistent with the DLG Guidelines. Notes of Councillor Agenda Briefings and Concept Forum Sessions from 7 April 2020 to 24 June 2020 DATE: 7 APRIL 2020 Attendance: Crs: Cristoffanini, Daniel, Earl, Godden, Kennaugh, McLeod, Meldrum Officers: Chief Executive Officer, Stephanie Addison-Brown, Director Corporate and Community Services, James Shepherd, Acting Director Sustainable Development and Infrastructure, Nick Logan This session was held electronically using video teleconferencing platform, ZOOM. Concept Forum: COVID-19 The Executive Leadership Team led a concept forum covering the following topics:

1. State/regional approach to recovery; 2. WALGA/Ministerial updates and other intelligence; 3. Beaches, surfers and backpackers in the region; 4. Finance/budgets/forecasts for 2019/20 and 2020/21; 5. Community Care Package applications; and 6. Late Council agenda item 11.2.3 Amendment to Fees and Charges and Property Lease

Charges Concept forums are closed to members of the public and press Also in attendance: Manager Legal and Governance Services, Ian McLeod, Acting Manager Human and Community Services, Jason Cleary, Manager Corporate Services, Andrew Ross


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DATE: 13 MAY 2020 Attendance: Crs: Cristoffanini, Daniel, Earl, Godden, Kennaugh, McLeod, Meldrum Officers: Chief Executive Officer, Stephanie Addison-Brown, Director Corporate and Community Services, James Shepherd, Acting Director Sustainable Development and Infrastructure, David Nicholson Agenda Briefing: Review of Delegations 2020 Governance (Legal, Risk and Permit) Officer, Emma Rogers, presented outcomes of the Delegations Review. Also in attendance: Manager Legal and Governance, Ian McLeod Livestreamed for members of the public / press via video conferencing platform, ZOOM Agenda Briefing: Rating Models Manager Corporate Services, Andrew Ross, presented rate models, the impact of UV revaluation, rating target, etc. Also in attendance: Warren Hately, AMR Time (via Zoom) Livestreamed for members of the public / press via video conferencing platform, ZOOM Concept Forum: Employee EBA Manager Human and Community Services, Nigel Anderson and Coordinator Human Resources, Nicolae Nitu, led a forum on the Employee EBA. Concept forums are closed to members of the public and press Also in attendance: Manager Legal and Governance, Ian McLeod Concept Forum: Draft Resilience Plan and Draft Local Recovery Plan Coordinator Community Planning and Development, Jason Cleary, and Community and Corporate Planner, Stacey Hutt, led a concept forum on the Draft Resilience Plan and Draft Local Recovery Plan. Concept forums are closed to members of the public and press Also in attendance: Sustainable Economy Officer, Saul Creswell, Community Development Officer, Jessica Black Concept Forum: Sustainable Economy Strategy Sustainable Economy Officer, Saul Creswell, led a concept forum on the Sustainable Economy Strategy. Concept forums are closed to members of the public and press. Also in attendance: Coordinator Community Planning and Development, Jason Cleary, Community and Corporate Planner, Stacey Hutt, Community Development Officer, Jessica Black Concept Forum: Asset Management Plan Coordinator Asset Management, Sonja Pienaar, presented on the Asset Management Plan. Concept forums are closed to members of the public and press Also in attendance: Acting Manager Works, Grant Gordon-Kirby DATE: 27 MAY 2020 Attendance: Crs: Cristoffanini, Daniel, Earl, Godden, Kennaugh, McLeod, Meldrum Officers: Chief Executive Officer, Stephanie Addison-Brown, Director Corporate and Community Services, James Shepherd, Acting Director Sustainable Development and Infrastructure, David Nicholson Closed Agenda Briefing / Site Visit: Railway Precinct Investigation Governance Officer / Council Support, Claire Schiller and Manager Legal and Governance, Ian McLeod, led a site visit and agenda briefing on the Railway Precinct Investigation. This session was closed as per s 5.23 2(a), (c), (e), (ii) of the Local Government Act 1995. Also in attendance: Coordinator Community Development, Jason Cleary, Acting Manager Planning and Development, Matt Cuthbert


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Concept Forum / Site Visit: Wadandi Track / Carters Road Underpass Asset Services Project Planning Officer, Susan Elton, led a site visit and provided an update on project, design, costing and alternative options. Concept forums are closed to members of the public and press. Workshop: Cultural Mapping Undalup led workshop on cultural mapping. Workshops are closed to members of the public and press. Undalup: Wayne Webb, Zac Webb, Toni Webb, 1 x Undalup representative Applied Archaeology International: David Guilfoyle, 1 x representative Also in attendance: Coordinator Environment / Landcare, John McKinney, Manager Legal and Governance, Ian McLeod, Coordinator Community Development, Jason Cleary Concept Forum: Cape Leeuwin Track Acting Director Sustainable Development and Infrastructure, David Nicholson, led a concept forum on the Cape Leeuwin Track. Concept forums are closed to members of the public and press. Also in attendance: Coordinator Environment / Landcare, John McKinney, Manager Corporate Services, Andrew Ross, Coordinator Community Development, Jason Cleary Workshop: Draft Budget Manager Corporate Services, Andrew Ross, led a workshop on the Draft Budget. Workshops are closed to members of the public and press Also in attendance: Coordinator Finance, Lynne Kenworthy, Coordinator Asset Management, Sonja Pienaar Concept Forum: Main Street Redevelopment Project Manager, Peter Brown and Director Corporate and Community Services, James Shepherd, provided an update on the Main Street Redevelopment. Concept forums are closed to members of the public and press. Also in attendance: Manager Corporate Services, Andrew Ross Closed Agenda Briefing: Late Item 11.3.3 Turner Holiday Park Manager Community and Human Services, Nigel Anderson, led an agenda briefing on Late Item 11.3.3 Turner Holiday Park. This session was closed as per s 5.23 2 (c) of the Local Government Act 1995 Cr Ian Earl disclosed a financial interest and was not in attendance Also in attendance: Manager Corporate Services, Andrew Ross, Project and Procurement Officer, Mel Aylett DATE: 3 JUNE 2020 Attendance: Crs: Cristoffanini, Daniel, Earl, Godden, Kennaugh, McLeod, Meldrum Officers: Chief Executive Officer, Stephanie Addison-Brown, Director Corporate and Community Services, James Shepherd, Acting Director Sustainable Development and Infrastructure, David Nicholson Concept Forum: Delegation – Procurement of Goods / Services during a State of Emergency Governance (Legal, Risk and Permit) Officer, Emma Rogers led a concept forum on the Delegation for procurement of goods and services during a state of emergency as per Council decision OM2020/85. Concept forums are closed to members of the public and press. Also in attendance: Senior Legal Officer, Lauren Bidesi Concept Forum: COVID Recovery The Executive Leadership Team led a concept forum on COVID recovery. Concept forums are closed to members of the public and press. Also in attendance: Manager Corporate Services, Andrew Ross, Marketing and Events Officer, Cristina Smith


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Workshop: Draft Budget Manager Corporate Services, Andrew Ross, led a workshop on the Draft Budget including employee expenses. Workshops are closed to members of the public and press. Also in attendance: Coordinator Finance, Lynne Kenworthy, Coordinator Asset Management, Sonja Pienaar Concept Forum: Community Groups – Requests for Funding Presentations The following community groups presented to Council in relation to requests for funding;

• Margaret River Community Resource Centre; • Margaret River Clean Community Energy; and • Augusta Community Resource Centre; and Just Home Margaret River.

Concept forums are closed to members of the public and press. Also in attendance: Manager Corporate Services, Andrew Ross DATE: 10 JUNE 2020 Attendance: Crs: Cristoffanini, Daniel, Earl, Godden, Kennaugh, McLeod, Meldrum Officers: Chief Executive Officer, Stephanie Addison-Brown, Director Corporate and Community Services, James Shepherd, Director Sustainable Development and Infrastructure, Nick Logan, Manager Corporate Services, Andrew Ross Concept Forum: Community Groups – Requests for Funding Presentations The following community groups presented to Council in relation to requests for funding:

• Mindful Margaret River; • Radio Margaret River; and • Margaret River Men’s Shed.

Concept forums are closed to members of the public and press Agenda Briefing: Community Engagement Policy Community and Corporate Planner, Stacey Hutt, provided an overview of the new Community Engagement Policy. Also in attendance: Coordinator Community planning and Development, Jason Cleary, Project and Procurement Officer, Mel Aylett Agenda Briefing: Purchasing Policy Manager Corporate Services, Andrew Ross and Project and Procurement Officer, Mel Aylett, presented on updates to the Purchasing Policy. Closed Agenda Briefing: HEART HEART General Manager, Nicky Hansen, provided an overview of 2019-20 and presented the plan for 2020-21. This session was closed to members of the public / press as per s5.23 (2) (a) of the Local Government Act 1995. Concept Forum: Potential Planning Reforms Acting Manager Planning and Development, Matt Cuthbert, presented on potential planning reforms. Concept forums are closed to members of the public and press. Also in attendance: Senior Technical Advisor, Shane Bacskai Concept Forum: Herbicide and Weed Services Senior Technical Advisor, Shane Bacskai, presented on the Weed Management Policy. Concept forums are closed to members of the public and press. Workshop: Draft Budget Manager Corporate Services, Andrew Ross, led a workshop on the Draft Budget. Workshops are closed to members of the public and press. Also in attendance: Coordinator Finance, Lynne Kenworthy, Manager Asset Services, David Nicholson, Acting Manager Planning and Development, Matt Cuthbert


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DATE: 17 JUNE 2020 Attendance: Crs: Cristoffanini, Daniel, Earl, Godden, Kennaugh, McLeod, Meldrum Officers: Chief Executive Officer, Stephanie Addison-Brown, Director Corporate and Community Services, James Shepherd, Director Sustainable Development and Infrastructure, Nick Logan Concept Forum: Community Resilience Alliance Veronique Florec, Greg Skyles and Fabian Linge provided an overview of the Community Resilience Alliance and update on programs and activities. Concept forums are closed to members of the public and press Also in attendance: Marketing and Events Officer, Cristina Smith DATE: 24 JUNE 2020 Attendance: Crs: Cristoffanini, Daniel, Earl, Godden, Kennaugh, McLeod, Meldrum Officers: Chief Executive Officer, Stephanie Addison-Brown, Director Corporate and Community Services, James Shepherd, Director Sustainable Development and Infrastructure, Nick Logan Concept Forum: Site Visit – Lot 910 Low Road, Rosa Glen Director Sustainable Development and Infrastructure, Nick Logan, led a site visit to Lot 910 Low Road, Rosa Glen in relation to agenda item 11.2.4 Building Envelope Variation. Concept forums are closed to members of the public and press Also in attendance: Acting Manager Planning and Development, Matt Cuthbert, Senior Planning Officer, Lezia Sandon Concept Forum: Gnarabup Resort Development Director Sustainable Development and Infrastructure, Nick Logan, presented on the Gnarabup Resort Development. Concept forums are closed to members of the public and press Also in Attendance: Acting Manager Planning and Development, Matt Cuthbert, Manager Asset Services, David Nicholson, Manager Corporate Services, Andrew Ross Concept Forum: Environmental Management Fund Coordinator Landcare / Environment, John McKinney and Sustainability Planning Officer, Katie Biggs, presented on the Environmental Management Fund. Concept forums are closed to members of the public and press Also in Attendance: Manager Asset Services, David Nicholson, Manager Corporate Services, Andrew Ross Concept Forum: RV Friendly Towns Project Planner Asset Services, Susan Elton, presented on what is required to become an RV friendly town. Concept forums are closed to members of the public and press Also in Attendance: Manager Asset Services, David Nicholson STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Local Government Act 1995 STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 5: Effective leadership and governance Community Outcome 1: Responsible ownership of outcomes Strategy 4: Provide Councillors with high quality and current information and training for effective decision making Service level strategy/plan 5.1.4.3: Conduct regular briefing sessions for Councillor and community on key issues and projects, prior to Ordinary Council meetings


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PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications Nil Long Term Financial Plan Nil Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil Economic Nil ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council receives the Notes of Councillor Agenda Briefing Sessions from 7 April 2020 to 24 June 2020. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS Nil RECOMMENDATION CR MCLEOD, CR CRISTOFFANINI That Council receives the Notes of Councillor Agenda Briefing Sessions from 7 April 2020 to 24 June 2020.

0/0 Cr Cristoffanini moved the following amendment: AMENDMENT / COUNCIL DECISION CR CRISTOFFANINI, CR KENNAUGH OM2020/132 That the following wording being added to the recommendation: ‘with the following addition:

DATE: 26 MAY 2020 Briefing: MRBTA on 'Karri Bowl' The Margaret River Busselton Tourism Association and Stuart Hicks presented on the proposed 'Karri Bowl'.’ Apologies: Cr Godden


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CARRIED 7/0 This then became the primary motion: PRIMARY MOTION / COUNCIL DECISION CR MCLEOD, CR CRISTOFFANINI OM2020/133 That Council receives the Notes of Councillor Agenda Briefing Sessions from 7 April 2020 to 24 June 2020 with the following addition:

DATE: 26 MAY 2020 Briefing: MRBTA on 'Karri Bowl' The Margaret River Busselton Tourism Association and Stuart Hicks presented on the proposed 'Karri Bowl'. Apologies: Cr Godden

CARRIED 7/0


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11.1.3 DELEGATION - PROCUREMENT OF GOODS AND SERVICES REQUIRED TO ADDRESS A STATE OF EMERGENCY LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE VTL/130 GOV/40 REPORT AUTHOR Emma Rogers, Governance (Legal, Risk and Permit) Officer AUTHORISING OFFICER Ian McLeod, Manager Legal and Governance

IN BRIEF • It is a requirement of section 5.46 of the Local Government Act 1995 that delegations made by

Council to the Chief Executive Officer are reviewed at least once every financial year. • A Concept Forum was held with Councillors on 25 March 2020 to inform new Councillors about the

legislative requirements in relation to delegations and the scope of powers and functions that have already been delegated in order to allow for Councillor feedback on a major review of the delegation register.

• A Councillor Briefing session was held on 13 May 2020 to provide information to Councillors on any proposed changes to delegations resulting from the review.

• Delegations of powers and duties made by Council were reviewed and adopted by Council on the 27 May 2020 with the exception of Delegation 12 – Procurement of goods and services required to address a state of emergency.

• Delegation 12 - Procurement of goods and services required to address a state of emergency, is a new delegation proposed in response to amendments to the Local Government (Functions and General) Regulations 1996, providing the power to procure goods or services during a State of Emergency without the need for a formal tender process.

• A further workshop was held with Councillors on the 3 June 2020 to provide additional information relating to this delegation and respond to any questions.

RECOMMENDATION That Council delegates the powers and duties to the Chief Executive Officer as per delegation 12 in accordance with s 5.42 Local Government Act 1995 (recommendation in full below). LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Delegations by Council Section 5.42 of the Local Government Act 1995 (LGA) provides the power for Council to delegate to the Chief Executive Officer (CEO) the exercise of any of its powers or the discharge of any of its duties under the LGA, with the exception of powers listed under section 5.43. Delegations must be in writing and can be general or have conditions attached. Delegations by the Chief Executive Officer Section 5.44(3) provides the power for the CEO to delegate to an employee the exercise of powers or discharge of duties that have been delegated by Council to the CEO under s5.42 LGA (known as a sub-delegation). The exercise of powers or duties sub-delegated by the CEO are subject to any conditions imposed by Council on its delegation to the CEO.


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Review of Delegations There is a requirement under the LGA that all delegations made must be reviewed annually by the delegator [s 5.46(2)]. The review of delegations by Council are to be reviewed and adopted by Council, and the CEO is responsible for reviewing the delegations by the CEO. The delegations of powers and duties made by Council were reviewed and adopted by Council on the 27 May 2020 with the exception of Delegation 12 – Procurement of goods and services required to address a state of emergency, which was deferred by Council for further clarification of the steps involved if the delegation was to be used. CONSULTATION AND ADVICE External Consultation • Department Local Government Sport and Cultural Industries (DLGSC) Circular No O1-2020 –

Practical assistance for Local Governments to respond during a State of emergency (COVID-19) • WALGA template delegation for ‘Procurement of goods and services required to address a state of

emergency’. Internal Consultation • CEO • Directors • Manager Corporate Services • Manager Legal Services and Governance DISCUSSION / OFFICER COMMENTS Delegation 12 – Procurement of goods and services required to address a state of emergency Recent amendments to the LG (F&G) Regulations 1996 provides an exemption from the formal tender process when sourcing and securing essential goods and services to respond to a state of emergency (Reg 11(2)aa). Regulation 11(3) provides that there must be a state of emergency declaration in force for the local government district or part of the district and the goods or services must be required to address needs arising from, or impacts or consequences of, the hazard to which the emergency relates. As stated in the DLGSC circular, ‘the purpose of this amendment is to increase flexibility of the local government sector to contract with local suppliers during, and in the aftermath of, the State of Emergency Declaration under the Emergency Management Act 2005’. The amendments provide the power for Council to: 1. Determine that particular goods or services with a purchasing value greater than $250,000 are

required for the purposes of addressing the impact, consequences or need arising from the hazard to which the State of Emergency declaration relates [F&G r11(3)(b)]; and

2. Undertake tender exempt purchasing activity to obtain the supply of those goods or services identified in accordance with point 1 above [F&G r.11(2) (aa)];

only when a State of Emergency declaration is in force and applies to all or part of the Shire. It is proposed that Council delegate this power to the Chief Executive Officer, in accordance with s5.42 LGA, with the following conditions:

a) This power may only be exercised where the goods or services are urgently required in an immediate response to addressing the hazard to which the State of Emergency Declaration relates.

b) The CEO has taken steps as per the attached flow chart (Attachment 1) to attempt to convene a Special Council Meeting, but it has not been possible for Council to meet within an appropriate time frame.

c) Compliance with the Purchasing Policy is required, but only to the extent that such compliance

will not incur an unreasonable delay in providing the required urgent response to the State of Emergency hazard. The rationale for non-compliance with Purchasing Policy must be evidenced in accordance with the Record Keeping Plan.


79

d) If, under the circumstances a written contract was unable to be exchanged at the time of the purchase, the CEO will arrange for a written contract to be formalised as soon as practically possible.

e) Where a relevant budget allocation is not available and a purchase is necessary in response to

a State of Emergency, the expenditure from an alternative available budget allocation must be authorised in advance by the Shire President (i.e. before the expense is incurred) in accordance with LGA s.6.8.

f) The CEO is to provide a report to Council after the exercise of this delegation, including details

of the contract specification, scope and purchasing value and the rationale for determining that the goods or services were urgently required in response to the State of Emergency Declaration, at the next Council meeting.

It is envisaged that this delegation would rarely or never be used. An example may be in the event of an earthquake, all communication lines were down, and urgent action was required to hire contractors with machinery to clear damaged infrastructure and rubble, to make the area safe for the public. The attached flowchart outlines the steps which must be taken by the CEO, to attempt to convene a Special Council Meeting within an appropriate time frame. If, after following these steps, it has not been possible for Council to meet within an appropriate time frame, then the exercise of the powers and duties of delegation 12 would be required by the CEO to purchase the goods or services urgently required in an immediate response to addressing the hazard to which the State of Emergency Declaration relates. An ‘appropriate time frame’ will depend on the nature and circumstances of the emergency and will be determined by the CEO. Each of the conditions must be met by the CEO, in exercising this delegation. Condition C requires a rationale be evidenced if non-compliance with the Purchasing Policy was required so as not to create unreasonable delay. Condition D requires that if a written contract was unable to be exchanged at the time of the purchase, the CEO will arrange for one to be formalised as soon as practically possible. A check and balance of the CEO’s expenditure is provided in condition E, where any expenditure from an alternative budget allocation for the procurement of the goods and services is required must be authorised in advance of expenditure by the Shire President (i.e. any expenditure from an allocated budget other than the emergency reserve fund must be authorised by the Shire President) Condition F also requires the CEO to provide a report to Council after the exercise of this delegation at the next Council meeting, including all details of the of the contract specification, scope and purchasing value and the rationale for determining that the goods or services were urgently required in response to the State of Emergency Declaration. The proposed delegation 12 and flow chart of steps required to convene a Special Council Meeting in a State of Emergency is provided in Attachment 1. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS The principal statutory provisions relating to delegations are s5.42 and 5.43 LGA which are set out in the background to this report. Specifically relating to delegation 12 is: Local Government Act 1995: s.3.57 Tenders for providing goods or services

1) A local government is required to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply goods or services.

2) Regulations may make provision about tenders.

Local Government (Functions and General) Regulations 1996: Tender exemption under subregulation 11(2)(aa) (2)Tenders do not have to be publicly invited according to the requirements of this Division if — (aa) the supply of the goods or services is associated with a state of emergency.

Associated definition under subregulation 11(3)


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(3) For the purposes of subregulation (2)(aa) a supply of goods or services is associated with a state of emergency if —

(a) the contract for the supply is entered into while there is in force a state of emergency declaration applying to the district, or part of the district, of the local government; and

(b) the local government considers that the goods or services are required for the purposes of addressing a need arising from the hazard, or from the impact or consequences of the hazard, to which the state of emergency declaration relates.

STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 5: Effective Governance and Corporate Leadership Outcome 1: Responsible ownership of outcomes Strategy 3: Ensure Councillors and employees demonstrate the importance of ethical behaviour and compliance with code of conduct. 5.1.3.2: Regularly review Shire governance processes, in accordance with advice from WALGA and the Department of Local Government Sport and Cultural Industries. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications Nil Long Term Financial Plan Nil Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil Economic Delegation of powers from Council to employees enables decisions to be made in a shorter timeframe. Legislation ensures that staff will be held accountable for any decisions made. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION The main implication of rejecting delegation 12 would be that in a declared state of emergency, a Council resolution would be required to purchase goods or services with a purchasing value greater than $250,000, that are urgently required in an immediate response to addressing the hazard to which the State of Emergency Declaration relates. The risk here is that it may not be possible to convene a Special Council Meeting within the time required to address the hazard. VOTING REQUIREMENTS Absolute Majority RECOMMENDATION That Council Delegates to the CEO under s5.42 of the Local Government Act 1995, the power, only to be exercised when a State of Emergency declaration is in force and applies to all or part of the Shire, to:


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1. Determine that particular goods or services with a purchasing value greater than $250,000 are

required for the purposes of addressing the impact, consequences or need arising from the hazard to which the State of Emergency declaration relates [F&G r11(3)(b)]; and

2. Undertake tender exempt purchasing activity to obtain the supply of those goods or services identified in accordance with point 1 above [F&G r.11(2) (aa)].

Conditions a) This power may only be exercised where the goods or services are urgently required in an

immediate response to addressing the hazard to which the State of Emergency Declaration relates. b) The CEO has taken steps as per the attached flow chart to attempt to convene a special council

meeting, but it has not been possible for Council to meet within an appropriate time frame. c) Compliance with the Purchasing Policy is required, but only to the extent that such compliance will

not incur an unreasonable delay in providing the required urgent response to the State of Emergency hazard. The rationale for non-compliance with Purchasing Policy must be evidenced in accordance with the Record Keeping Plan.


e) Where a relevant budget allocation is not available and a purchase is necessary in response to a State of Emergency, the expenditure from an alternative available budget allocation must be authorised in advance by the Shire President (i.e. before the expense is incurred) in accordance with LGA s.6.8.

f) The CEO is to provide a report to Council after the exercise of this delegation, including details of the contract specification, scope and purchasing value and the rationale for determining that the goods or services were urgently required in response to the State of Emergency Declaration, at the next Council meeting.

ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Delegation 12 - Procurement of goods and services required to address a state of emergency, and

flow chart of steps required to convene a Special Council Meeting in a State of Emergency 2. DLGSC Circular No O1-2020 – Practical assistance for Local Governments to respond during a

State of emergency (COVID-19) RECOMMENDATION / COUNCIL DECISION CR GODDEN, CR KENNAUGH OM2020/134 That Council Delegates to the CEO under s5.42 of the Local Government Act 1995, the power, only to be exercised when a State of Emergency declaration is in force and applies to all or part of the Shire, to: 1. Determine that particular goods or services with a purchasing value greater than $250,000

are required for the purposes of addressing the impact, consequences or need arising from the hazard to which the State of Emergency declaration relates [F&G r11(3)(b)]; and

2. Undertake tender exempt purchasing activity to obtain the supply of those goods or services identified in accordance with point 1 above [F&G r.11(2) (aa)].

Conditions a) This power may only be exercised where the goods or services are urgently required in an

immediate response to addressing the hazard to which the State of Emergency Declaration relates.

b) The CEO has taken steps as per the attached flow chart to attempt to convene a special council meeting, but it has not been possible for Council to meet within an appropriate time frame.

c) Compliance with the Purchasing Policy is required, but only to the extent that such compliance will not incur an unreasonable delay in providing the required urgent response to the State of Emergency hazard. The rationale for non-compliance with Purchasing Policy must be evidenced in accordance with the Record Keeping Plan.


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e) Where a relevant budget allocation is not available and a purchase is necessary in response to a State of Emergency, the expenditure from an alternative available budget allocation must be authorised in advance by the Shire President (i.e. before the expense is incurred) in accordance with LGA s.6.8.

f) The CEO is to provide a report to Council after the exercise of this delegation, including details of the contract specification, scope and purchasing value and the rationale for determining that the goods or services were urgently required in response to the State of Emergency Declaration, at the next Council meeting.



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11.1.4 CEMETERIES LOCAL LAW 2020 AND ACTIVITIES IN THOROUGHFARES AND PUBLIC PLACES AND TRADING LOCAL LAW 2020 - AMENDMENTS LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE ENF/22 REPORT AUTHOR Lauren Bidesi, Senior Legal Officer AUTHORISING OFFICER Ian McLeod, Manager Legal and Governance

IN BRIEF • The Joint Standing Committee on Delegated Legislation (JSC) has reviewed the Shire’s Cemeteries

Local Law 2020 (Cemeteries Local Law) and Activities in Thoroughfares and Public Places and Trading Local Law 2020 (Thoroughfares Local Law) and has raised concerns with one clause in each local law which contain minor typographical errors.

• With regards to the Cemeteries Local Law the JSC is concerned that even though the error is minor, the outcome is that technically the local law does not require an application for burial to be accompanied by a certificate of identification.

• With regards to the Thoroughfares Local Law the JSC requires an amendment to a clause on permissible verge treatments to make it clear and workable.

• The JSC requests the Shire President to sign an undertaking not to enforce the local laws in a manner contrary to the undertaking, and have provided a suggested resolution.

• Shire officers will commence the process to amend the local laws as soon as practicable. RECOMMENDATION That Council: 1. Undertakes to the Joint Standing Committee on delegated Legislation that the Shire will:

a) When the Shire of Augusta Margaret River Activities in Thoroughfares and Public Places and Trading Local Law 2020 is next amended or reviewed, amend the Shire of Augusta Margaret River Activities in Thoroughfares and Public Places and Trading Local Law 2020 to:

i. Amend the definition of ‘permissible verge treatment’ in clause 1.5 by deleting the words ‘clause 2.8(2)’ and inserting the words ‘clause 2.7’.

ii. Make all necessary consequential amendments. b) Within 6 months, amend the Shire of Augusta Margaret River Cemeteries Local Law 2020 to:

i. Amend clause 3.2 by deleting the words ‘clause 3.4’ and replacing it with ‘clause 3.3’. ii. Make all necessary consequential amendments.

c) Until each Local Law is amended in accordance with the undertakings: i. Not enforce each Local Law in a manner contrary to the undertaking. ii. Where the Local Law is made publicly available, whether in hard copy of electronic

form (including on the Shire’s website), ensure that it is accompanied by a copy of these undertakings.

2. In accordance with section 3.12 of the Local Government Act 1995 accepts this report as notice from the President of the purpose and effect of the proposed amendments to the Shire of Augusta Margaret River Activities in Thoroughfares and Public Places and Trading Local Law 2020 and Shire of Augusta Margaret River Cemeteries Local Law 2020 as follows: a) The purpose and effect of the proposed amendment to the Shire of Augusta Margaret River

Activities in Thoroughfares and Public Places and Trading Local Law 2020 is to make clear what a permissible verge treatment is.

b) The purpose and effect of the proposed amendment to the Shire of Augusta Margaret River Cemeteries Local Law 2020 is to allow for clarity on when an application for burial is to be accompanied by a certificate of identification.

3. Authorises Statewide notification of the proposed amendments in accordance with Section 3.12(3)

of the Local Government Act 1995 outlining the Shire’s intention to amend the Shire of Augusta


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Margaret River Cemeteries Local Law 2020 and Shire of Augusta Margaret River Activities in Thoroughfares and Public Places and Trading Local Law 2020.

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND At the Ordinary Council Meeting on 12 February 2020, Council adopted the Shire of Augusta Margaret River Activities in Thoroughfares and Public Places and Trading Local Law 2020 and Shire of Augusta Margaret River Cemeteries Local Law 2020. A letter has since been received from the Joint Standing Committee (JSC) on Delegated Legislation (Attachment 1). The JSC’s concerns in relation to the Cemeteries Local Law were set out in their letter of 14 May 2020 as follows: “Clause 3.2 Clause 3.2 of the Local Law provides as follows: All applications referred to in clause 3.1 shall be accompanied by either a medical certificate of death or a Coroner’s order of burial, and a certificate issued under clause 3.4, in respect of a body. The definition contains a minor error in that it should refer to clause 3.3 rather than 3.4 as:

• Clause 3.4 relates to the minimum notice required for a booking to hold a funeral.

• Clause 3.3 relates to certificates of identification. Although this error is a minor typographical one, the outcome is that technically the local law does not require an application for burial to be accompanied by a certificate of identification.” The JSC’s concerns in relation to the Thoroughfares Local Law were set out in their letter of 14 May 2020 as follows: “Clause 1.5 Clause 1.5 of the Local Law provides the definition of ‘permissible verge treatments’ as follows:

Permissible verge treatment means any one of the 4 treatments described in clause 2.8(2) and includes any reticulation pipes and sprinklers;

The definition contains a minor error in that it should refer to clause 2.7 rather than 2.8(2) as:

• Clause 2.8 relates to ‘only permissible lawn treatments to be installed’ and clause

2.8(2) does not exist.

• Clause 2.7 relates to ‘permissible verge treatments’ and appears to be the correct reference.”

CONSULTATION AND ADVICE External Consultation External consultation on the draft local laws was undertaken as detailed in the Ordinary Council Meeting of 12 February 2020. Internal Consultation Legal services have considered the advice from the Joint Standing Committee and agreed that the Shire should follow the request for undertakings to avoid the Local Laws being disallowed.


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DISCUSSION / OFFICER COMMENTS The JSC have advised that the Cemeteries Local Law must be amended within 6 months and may be disallowed if the amendment is not made. As such, the Shire will, as soon as possible, commence proceedings to amend the law as required. The Thoroughfares Local Law amendment should be made as soon as possible to avoid confusion as to what a permissible verge treatment is. Under Section 3.12(1) and (8) of the Local Government Act, the procedure for amending a local law is the same as the procedure for making a local law, i.e. there must be:

• A Council resolution giving notice of purpose and effect of proposed amendment, • Statewide public notice; • A 6 week submission period; • A report to Council considering any submissions and recommending adoption; • A formal Council resolution adopting the amended local law; • Publishing the amendment in the Government Gazette; and • Providing local public notice that the amendment has been adopted.

Shire officers will endeavour to implement the Shire’s undertaking in relation to procedural steps as soon as possible, with the first step included in this item. In the meantime, the Shire is still able to enforce the provisions of the local law, so long as it is not done in a way that is contrary to the proposed amendment. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Nil STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 3: Ensuring Sustainable Development Community Outcome 2: Liveable, sustainable and well designed places that are inclusive for all cultures and demographics. Strategic Response: Develop and implement management plans for Shire facilities and projects so they are well designed, sustainable, have aesthetic appeal and are accessible by all. Service level strategy/plan: The local laws meet compliance obligations, which is consistent with the governance goals in the Strategic Plan. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications Advertising of the proposed amendments to the adopted Local Laws is required and also publishing the amended Local Laws in the Government Gazette. The advertising charges will be covered from existing budget allocations. Long Term Financial Plan Nil Whole of Lifecycle considerations The Local Laws will need to be reviewed every 8 years after their commencement pursuant to s.3.16 of the LG Act. SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil


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Economic Nil ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION There are two potential alternative options: Firstly, Council could resolve to refuse to make the proposed amendments to the local laws. The consequence of this would be that the existing ‘Cemeteries Local Law 2020’ may be disallowed by JSC. Without making the recommended changes to the ‘Activities in Thoroughfares and Public Places and Trading Local Law 2020’ it would continue to apply as it has previously however what constitutes a ‘permissible verge treatment’ would not be able to be enforced as it is unclear. The second option would be to make the proposed amendments to both local laws as recommended by JSC. VOTING REQUIREMENTS Absolute Majority RECOMMENDATION That Council: 1. Undertakes to the Joint Standing Committee on delegated Legislation that the Shire will:



ii. Make all necessary consequential amendments. b) Within 6 months, amend the Shire of Augusta Margaret River Cemeteries Local Law 2020 to:

i. Amend clause 3.2 by deleting the words ‘clause 3.4’ and replacing it with ‘clause 3.3’. ii. Make all necessary consequential amendments.

c) Until each Local Law is amended in accordance with the undertakings: i. Not enforce each Local Law in a manner contrary to the undertaking. ii. Where the Local Law is made publicly available, whether in hard copy of electronic

form (including on the Shire’s website), ensure that it is accompanied by a copy of these undertakings.

2. In accordance with section 3.12 of the Local Government Act 1995 accepts this report as notice from the President of the purpose and effect of the proposed amendments to the Shire of Augusta Margaret River Activities in Thoroughfares and Public Places and Trading Local Law 2020 and Shire of Augusta Margaret River Cemeteries Local Law 2020 as follows: a) The purpose and effect of the proposed amendment to the Shire of Augusta Margaret River

Activities in Thoroughfares and Public Places and Trading Local Law 2020 is to make clear what a permissible verge treatment is.


3. Authorises Statewide notification of the proposed amendments in accordance with Section 3.12(3)

of the Local Government Act 1995 outlining the Shire’s intention to amend the Shire of Augusta Margaret River Cemeteries Local Law 2020 and Shire of Augusta Margaret River Activities in Thoroughfares and Public Places and Trading Local Law 2020.

ADVICE TO APPLICANT / PROPONENT Nil


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ATTACHMENTS 1. CONFIDENTIAL Correspondence from Joint Standing Committee on Delegated Legislation

RECOMMENDATION / COUNCIL DECISION CR KENNAUGH, CR CRISTOFFANINI OM2020/135 That Council: 1. Undertakes to the Joint Standing Committee on delegated Legislation that the Shire will:



ii. Make all necessary consequential amendments. b) Within 6 months, amend the Shire of Augusta Margaret River Cemeteries Local Law 2020

to: i. Amend clause 3.2 by deleting the words ‘clause 3.4’ and replacing it with ‘clause

3.3’. ii. Make all necessary consequential amendments.

c) Until each Local Law is amended in accordance with the undertakings: i. Not enforce each Local Law in a manner contrary to the undertaking. ii. Where the Local Law is made publicly available, whether in hard copy of

electronic form (including on the Shire’s website), ensure that it is accompanied by a copy of these undertakings.

2. In accordance with section 3.12 of the Local Government Act 1995 accepts this report as notice from the President of the purpose and effect of the proposed amendments to the Shire of Augusta Margaret River Activities in Thoroughfares and Public Places and Trading Local Law 2020 and Shire of Augusta Margaret River Cemeteries Local Law 2020 as follows: a) The purpose and effect of the proposed amendment to the Shire of Augusta Margaret

River Activities in Thoroughfares and Public Places and Trading Local Law 2020 is to make clear what a permissible verge treatment is.


3. Authorises Statewide notification of the proposed amendments in accordance with Section

3.12(3) of the Local Government Act 1995 outlining the Shire’s intention to amend the Shire of Augusta Margaret River Cemeteries Local Law 2020 and Shire of Augusta Margaret River Activities in Thoroughfares and Public Places and Trading Local Law 2020.



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11.1.5 FOOTBALL MARGARET RIVER INCORPORATED LEASE LOCATION/ADDRESS 59 Wallcliffe Road, Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE PTY/6698 REPORT AUTHOR Lauren Bidesi, Senior Legal Officer AUTHORISING OFFICER Ian McLeod, Manager Legal and Governance

IN BRIEF • Lot 1003 incorporates most of the Gloucester Park precinct and is owned by the Shire of Augusta

Margaret River (the Shire) in freehold. • Football Margaret River currently use the shed outlined in red (Existing Shed) on the Location Plan

for equipment storage. • On 7 August 2019 Football Margaret River proposed to the Sport and Recreation Advisory

Committee to build a new shed to allow for further storage of soccer equipment (New Shed). • In order to resolve inconsistencies in relation to building maintenance and ownership it is proposed

that both the Existing Shed and the New Shed be leased by the Shire to Football Margaret River. • It is also proposed that Football Margaret River be permitted to sub-lease the Existing Shed to

another sporting group at a reasonable rent. • As a lease to a community not for profit organisation, the lease is exempt from the processes

typically required for land dispositions such as local public advertising. Since changes to the delegation register in 2018 all first time leases to community groups require Council approval.

RECOMMENDATION That Council: 1. Grants a Lease to Football Margaret River Incorporated over the area identified in green on the

attached Location Plan (New Shed) and upon standard terms outlined in the Shire’s Lease Procedures, but specifically including the following requirements:

a) Rent shall be charged at a peppercorn rate; b) the lease be for a period of 10 years with a 10 year option, subject to the establishment of

the New Shed; c) The Lessee will be responsible for maintaining the building and all outgoings including

building insurance; d) The Shire not being responsible for any structural repairs, maintenance or replacement of

the New Shed; and e) The Lessee having their own public liability insurance and indemnifying the Shire against

any loss associated with the Lessee’s use of the New Shed.

2. Grants a lease to Football Margaret River Incorporated over the area identified in red on the attached Location Plan (Existing Shed) upon standard terms outlined in the Shire’s Lease Procedures, but specifically including the following requirements:

a) Rent shall be charged at a peppercorn rate; b) The Lessee having power to sub-lease to another sporting group at a reasonable rent

approved by the Shire; c) The lease be for a period of 10 years with a 10 year option; d) The Lessee will be responsible for maintaining the Existing Shed and all outgoings including

building insurance; and e) The Shire not being responsible for any structural repairs, maintenance or replacement of

the building.


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LOCATION PLAN

TABLED ITEMS Nil BACKGROUND Existing Shed In 2007/2008 Football MR built the Existing Shed adjacent to the pavilion at a cost of approximately $15,000. The shed was to ensure that the club had enough storage for future growth. Other sporting groups have shown interest in using the existing shed, but Football Margaret River would like to recoup some of their expenses associated with building the new and existing sheds. It is therefore proposed that Football Margaret River be permitted to sub-lease the shed to another sporting group at a reasonable rental rate which will allow them to offset some of their costs and provide the club with some equity in relation to cost sharing. New Shed In August 2019 Football Margaret River approached the Sport and Recreation Advisory Committee (SRAC) and advised that due to significant club growth they required a larger shed to see the club into the future. In 2020 Football Margaret River provided quotes for a new shed and building approval was provided by the Shire. The new shed is an expense to the club of over $30,000. The Shire has made land available at the Gloucester Park precinct for the construction of a new shed. The proposed shed site is owned by the Shire in Freehold. As both the Existing Shed and New Shed are for the exclusive use of particular clubs a lease is considered the most appropriate way of dealing with the arrangement. Why is the Shire the owner of the buildings if they are built by a Club? It is appropriate for the Shire to be the owner of the buildings/sheds for a number of reasons:

• The buildings are a fixture on the land and are legally considered part of the Shire’s land; • Shire buildings are considered public works and are exempt from development approval which

allows a more streamlined approval process appropriate for small building on recreation reserves;

• The building can be insured by the Shire, which is more cost efficient for sporting clubs even where the insurance is charged as an outgoing.


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Planning The New Shed is exempt from requiring planning approval as its Public Works. Planning have advised there are no issues with the proposed shed as it is to be set well back from the thoroughfare and will not obstruct vehicle site lines. The shed is designed in colour/materials to match the existing structures and is to be used in accordance with the purpose of the area. Currently Football Margaret River have no lease with the Shire. Proposed Leases The Shire proposes to lease the New Shed site to Football Margaret River pursuant to the Shire’s standard Lease Procedures but specifically include the following terms:

• Rent charged at peppercorn rate; • The Lessee will be responsible for maintaining the New Shed and all outgoings including

building insurance; • The Shire not being responsible for any structural repairs, maintenance or replacement of the

New Shed; • The Lessee having their own public liability insurance and indemnifying the Shire against any

loss associated with the Lessee’s use of the New Shed; and • The lease be for a period of 10 years with a 10 year option, subject to the establishment of the

New Shed. The Shire proposes to lease the Existing Shed site to Football MR pursuant to the Shire’s standard Lease Procedures but specifically include the following terms:

• Rent shall be charged at a peppercorn rate; • The Lessee having power to sub-lease to another sporting group at a reasonable rent approved

by the Shire; • The lease be for a period of 10 years with a 10 year option; • The Lessee will be responsible for maintaining the Existing Shed and all outgoings including

building insurance; and • The Shire not being responsible for any structural repairs, maintenance or replacement of the

Existing Shed. The Site is zoned ‘Public Purposes, Parks and Recreation’ which makes the New and Existing sheds consistent with the purpose. It is located in a Development Contribution Area the redevelopment of Gloucester Park is identified in the Shire’s Long term Financial Plan, the Shire’s Corporate Plan and the Community Infrastructure Plan. CONSULTATION AND ADVICE External Consultation Sport and Recreation Advisory Committee- Meeting on 7th August 2019, Football Margaret River raised the idea of building a new shed to house more club equipment. This was supported by the Committee. At the 5 February 2020 meeting, it was recommended that the Shire liaise with the Football Margaret River about use of the sheds. Football Margaret River - Shire Officers met with the President Paul Brown to discuss the proposal of establishing a lease over the existing shed and new shed. The President was interested in establishing security of tenure for the club. Internal Consultation • Recreations Operations • Planning • Building Services • Assets DISCUSSION / OFFICER COMMENTS There is interest in the community for improved sporting facilities in Margaret River and the community benefits it will provide.


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It is recommended a lease is granted to Football Margaret River for the New Shed for a period of 10 years, with an option for 10 years and be subject to the Shire’s standard lease procedure provisions. It is also recommended a lease is granted to Football Margaret River for the Existing Shed for a period of 10 years, with an option for 10 years and be subject to the Shire’s standard lease procedure provisions. Upon termination of either lease or non renewal of the optional term by either party, the New Shed constructed on the premises during the lease term and the Existing Shed will become a Shire asset. The lease may also contain a clause that the Shed be removed by the lessee at the termination of the lease. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Local Government Act 1995 (LGA) A lease of Shire property is considered to be a disposition of property for the purposes of section 3.58 of the LGA. However, where a disposition is to a charitable or not for profit body then the disposition is exempted by regulation 30 of the Local Government (Functions and General) Regulations from the advertising and tender requirements of section 3.58. Regulation 30 of the Local Government (Functions and General) Regulations1996- (2)A disposition of land is an exempt disposition if -

(b) the land is disposed of to a body, whether incorporated or not — (i)the objects of which are of a charitable, benevolent, religious, cultural, educational,

recreational, sporting or other like nature; and (ii)the members of which are not entitled or permitted to receive any pecuniary profit

from the body’s transactions… As this is a lease to a community not for profit organisation, the lease is exempt from the processes typically required for land dispositions such as local public advertising. Since changes to the Shires delegation register in 2018, all first time leases to community groups require Council approval. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Plan 2019-2023 Key Result Area 2: Welcoming, inclusive and healthy communities Community Outcome 2: Sustainable community groups, networks and facilities Strategy 1: Support and value volunteers and community groups across the region Key Result Area 2: Welcoming, inclusive and healthy communities Community Outcome 3: Equal opportunities for all Strategy 1: Ensure Shire facilities and services are accessible by all Key Result Area 4: Vibrant and diverse economy Community Outcome 3: Infrastructure for economic growth Strategy 1: Manage major infrastructure needs to cater for increased residents and visitors PLANNING FRAMEWORK The proposed Football Margaret River shed is consistent with the Local Planning Scheme and Local Planning Strategy. FINANCIAL IMPLICATIONS A lease to Football Margaret River is recommended to be supported as it will provide key community infrastructure. The club are providing all of the funds for development through grants and internal sources. As a not for profit organisation a rent at peppercorn rate will be reasonable. Long Term Financial Plan The New Shed is being funded solely by Football Margaret River. Whole of Lifecycle considerations Potential for further expansion in the future.


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SUSTAINABILITY IMPLICATIONS Environmental Clearing is minimal so little impact on the environment. Social Social justice principles refer to values that aim at decreasing or eliminating inequity, promoting inclusiveness or diversity, and establishing environments that are supportive of all people. The lease will enable development resulting in employment opportunities during construction works and facilities the community can utilise. Economic New facilities will directly benefit the community, primarily the club’s members. ADVOCACY Nil ALTERNATE OPTIONS If the Shire chooses to not enter into a lease with Margaret River Football for the New Shed, the shed cannot be built on Shire land and Football MR cannot expand their premises. If the Shire chooses to not enter into a lease with Margaret River Football for the Existing Shed, the Shire can request the Shed be removed. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Grants a Lease to Football Margaret River Incorporated over the area identified in green on the

attached Location Plan (New Shed) and upon standard terms outlined in the Shire’s Lease Procedures, but specifically including the following requirements:

a) Rent shall be charged at a peppercorn rate; b) the lease be for a period of 10 years with a 10 year option, subject to the establishment of

the New Shed; c) The Lessee will be responsible for maintaining the building and all outgoings including

building insurance; d) The Shire not being responsible for any structural repairs, maintenance or replacement of

the New Shed; and e) The Lessee having their own public liability insurance and indemnifying the Shire against

any loss associated with the Lessee’s use of the New Shed.


a) Rent shall be charged at a peppercorn rate; b) The Lessee having power to sub-lease to another sporting group at a reasonable rent

approved by the Shire; c) The lease be for a period of 10 years with a 10 year option; d) The Lessee will be responsible for maintaining the Existing Shed and all outgoings including

building insurance; and e) The Shire not being responsible for any structural repairs, maintenance or replacement of

the building. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS Nil


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RECOMMENDATION / COUNCIL DECISION CR DANIEL, CR MELDRUM OM2020/136 That Council: 1. Grants a Lease to Football Margaret River Incorporated over the area identified in green on

the attached Location Plan (New Shed) and upon standard terms outlined in the Shire’s Lease Procedures, but specifically including the following requirements:

a) Rent shall be charged at a peppercorn rate; b) the lease be for a period of 10 years with a 10 year option, subject to the

establishment of the New Shed; c) The Lessee will be responsible for maintaining the building and all outgoings

including building insurance; d) The Shire not being responsible for any structural repairs, maintenance or

replacement of the New Shed; and e) The Lessee having their own public liability insurance and indemnifying the Shire

against any loss associated with the Lessee’s use of the New Shed.


a) Rent shall be charged at a peppercorn rate; b) The Lessee having power to sub-lease to another sporting group at a reasonable

rent approved by the Shire; c) The lease be for a period of 10 years with a 10 year option; d) The Lessee will be responsible for maintaining the Existing Shed and all outgoings

including building insurance; and e) The Shire not being responsible for any structural repairs, maintenance or

replacement of the building. CARRIED 7/0


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11.2. Sustainable Development

and Infrastructure


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11.2.1 ADDITIONS AND ALTERATIONS AT THE WHITE ELEPHANT CAFE LOCATION/ADDRESS Reserve 41545 (Lot 503) Mitchell Drive, Prevelly APPLICANT/LANDOWNER The White Elephant Beach Cafe FILE REFERENCE PTY/11020 & RES/41545 REPORT AUTHOR Lucy Gouws, Acting Coordinator Statutory Planning AUTHORISING OFFICER Nick Logan, Director of Sustainable Development and Infrastructure

This Item was withdrawn from 22 July 2020 Ordinary Council Meeting agenda on 22 July 2020, and will be put back to Council on the 12 August 2020 Ordinary Council Meeting REASON Officers have been in discussions with the applicant in relation to increasing public access to the licence area and reducing obstructions by queues etc. The applicant has provided the Shire with some revised plans in relation to the kiosk, therefore the item, proposal and conditions recommended in the agenda require revision. Withdrawal will also enable the item to be considered concurrently with the lease at the meeting of 12 August.


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11.2.2 SUSTAINABILITY REFERENCE GROUP (SRG) UPDATE INCLUDING ENVIRONMENTAL MANAGEMENT FUND (EMF) LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/153 REPORT AUTHOR Katie Biggs, Sustainability Planning Officer AUTHORISING OFFICER Nick Logan, Director Infrastructure and Sustainable Development

IN BRIEF • The Sustainability Reference Group (SRG) is required to provide an update on its activities to

Council, twice a year. The update is included in this report. • A key role of the SRG is to make recommendations to Council regarding the projects which ought

to be funded via the Environmental Management Fund. • In order to fund the projects recommended by SRG, Council will be required to authorise

expenditure from the Biodiversity Reserve Fund. • Due to two recent resignations from SRG, it is also recommended that Council approves the

appointment of a new member. RECOMMENDATION That Council: 1. Approves transfer of $48,400 from the Biodiversity Reserve to supplement the Environmental

Management Fund; 2. Funds the following grant applications through the Environmental Management Fund 2020/21(see

below); 3. Approves appointment of Nicola Ledger to the Sustainability Reference Group following the

resignation of two of Andreas Frutiger and Julian Kruger; and 4. Notes the biannual update from the Sustainability Reference Group. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND The Sustainability Reference Group was formed earlier this year to replace the Sustainability Advisory Committee. The group has elected to meet 6 times a year to consider sustainability issues and provide advice and support to the Sustainability Planning Officer. CONSULTATION AND ADVICE External Consultation Nil Internal Consultation Nil DISCUSSION / OFFICER COMMENTS Biannual Update The Terms of Reference require the SRG to provide Council with an update on their operations every 6 months. Attachment 2 provides a summary of discussions to date which have mainly centred around climate change, the Environmental Management Fund and imbedding sustainability throughout the Shire’s processes.


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Allocation of EMF funds In May this year, staff called for requests for EMF funding which was made available to community groups and private individuals. A total of 12 projects were submitted with a total value of $234,899. Ordinarily, there would be $100,000 available via the EMF for projects undertaken external of the Shire organisation, however due to three-year funding agreements being put in place for two projects in 2019, the remaining funds amount to $61,528. The submitted projects were assessed by staff against the EMF Terms of Reference (Attachment 1) and the following criteria:

• Environmental Outcomes (30%) • Methodology (30%) • Timeframe and Expenditure (20%) • Community Partnerships (20%)

Relevant information was also shared with all SRG members who also undertook assessment against the same criteria. The combined assessments were then discussed at the June SRG meeting. The assessment process resulted in the following projects being recommended for funding. A detailed outline of each project is provided at attachment 1. Project lead Project description Grant amount

Nature Conservation Margaret River Region

Community engagement in conservation action in the Augusta Margaret River Shire 32,313

Margaret River Coastal Residents Association Gnarabup dune rehabilitation 7,065

Lower Blackwood LCDC Regenerative Agriculture 49,298

Lower Blackwood LCDC Feral pig control 11,569

Margaret River Independent School Weed control and cultural burning 4,725

The following projects are also recommended for funding, but require changes to the scope of works:

In order to fund all of the projects outlined above, it will be necessary for Council to approve the use of $48,400 of funding from the Biodiversity Reserve

Project lead Project description Grant amount Change required

St Thomas More Catholic Primary School

Dune Restoration at Gnarabup and Redgate Beaches 1,000

Remove lunch, advertising and tools. Cover half of bus and indigenous involvement

MR Senior High School Environmental Monitoring and Improvement of Margaret River Senior High School Wetlands.

3,958 Remove drone, increase plants and indigenous involvement


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The following projects are not recommended for funding largely due to falling outside of the funding criteria, or being more suitably funded through other funding streams. Feedback will be provided to the groups to assist with their funding needs.

Project lead. Project description

Grant amount Recommendations

Glenbourne Ellens Brook waterway restoration project

11,550 Encourage applicants to pursue

Stewardship Grants

Margaret River Wine Association

Margaret River Wine Region Sustainability Project

44,800 Encourage applicants to pursue

funding through CapeROC

Heli Donaldson Dolichos pea blitz - private land

4,521 Encourage applicants to pursue Stewardship Grants

Undalup Association

Healing nature's lungs - trialling indigenous remedies for Marri canker and Jarrah dieback

50,000 Encourage applicants to work with

Murdoch University

Lorna Alcorn Dolichos pea blitz - Karridale reserve and road reserves

11,330 Will undertake works through the

internal EMF if identified as priority

STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Council endorsed Terms of Reference exist for both the SRG and the EMF program. The successful projects will be required to undertake the following steps

1. Complete and sign a milestone and funding agreement prior to receiving a 50% payment 2. Completion of Mid Project Progress Report prior to receiving a 25% payment 3. Provide a Completion Report and Grant Acquittal and receive the final 25% payment

STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key result area 1: Valuing protecting and enhancing the natural environment Community Outcome 1: Ecology and biodiversity protection Strategic Response: Develop partnerships with Governments and the community to identify ecological values, inform best management practice and protect the biodiversity of the shire Service level strategy/plan: Coordinate and implement the delivery of the Environmental Management Fund to deliver improved environmental outcomes including community delivery through grants PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications Funding of the recommended projects requires use of monies from the Biodiversity Reserve Long Term Financial Plan The EMF is an ongoing item in the budget Whole of Lifecycle considerations The recommended projects will not deliver assets which require the Shire’s ongoing maintenance. SUSTAINABILITY IMPLICATIONS Environmental Projects recommended for funding will directly improve the local environment


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Social EMF projects help to bring people together for a good cause and build a sense of community. Economic Funding is expected to be spent within the local community and therefore benefits local retailers and service providers. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Refusal to access the reserve funds would mean that most of the projects would be unfunded. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Approves transfer of $48,400 from the Biodiversity Reserve to supplement the Environmental

Management Fund;

2. Funds the following grant applications through the Environmental Management Fund 2020/21;


Community engagement in conservation action in the Augusta Margaret River Shire 32,313








3,958

3. Approves appointment of Nicola Ledger to the Sustainability Reference Group following the

resignation of two of Andreas Frutiger and Julian Kruger; and 4. Notes the biannual update from the Sustainability Reference Group. ADVICE TO APPLICANT / PROPONENT Applicants will be advised following the outcome of the Ordinary Council Meeting. ATTACHMENTS 1. EMF Score Sheet 2. Biannual update from the Sustainability Reference Group


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RECOMMENDATION / COUNCIL DECISION CR GODDEN, CR MELDRUM OM2020/137 That Council: 1. Approves transfer of $48,400 from the Biodiversity Reserve to supplement the

Environmental Management Fund;

2. Funds the following grant applications through the Environmental Management Fund 2020/21;


Community engagement in conservation action in the Augusta Margaret River Shire

32,313








3,958

3. Approves appointment of Nicola Ledger to the Sustainability Reference Group following the

resignation of Andreas Frutiger and Julian Kruger; and 4. Notes the biannual update from the Sustainability Reference Group.

CARRIED 7/0


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11.2.3 TRANSITION OF WALLCLIFFE BUSH FIRE BRIGADE AND ROSA BROOK BUSH FIRE BRIGADE TO DFES LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE EMS/2 REPORT AUTHOR Adam Jasper, Community Emergency Services Manager AUTHORISING OFFICER Nick Logan, Director Sustainable Development and Infrastructure

This Item was brought forward for consideration (page 50).


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11.2.4 RFT 07-20 SUPPLY OF ROAD, TRAFFIC AND SAFETY SIGNAGE AND ASSOCIATED ACCESSORIES LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE COR/405 COR/406 REPORT AUTHOR Sadie Breslin, Works Project Administration Officer AUTHORISING OFFICER Nick Logan, Director Sustainable Development and Infrastructure

IN BRIEF • On 6 May 2020 the Shire of Augusta Margaret River (Shire) advertised an open public tender for

the supply of road, traffic and safety signage and associated accessories, with the tender period closing at 2pm on 29 May 2020.

• Four (4) tender submissions were received and evaluated by a panel of Shire officers in line with the selection criteria specified in the RFT document

• The proposed contract provides for an initial contract term of two (2) years with the Shire reserving the right to exercise a two (2) one (1) year contract extension.

RECOMMENDATION That Council: 1. Approves this report and accepts the Tender submitted by Corsign WA Pty Ltd as the most

advantageous Tender to form a Contract, subject to contracting and satisfaction of minor variations; 2. Delegates the formation of the Contract to the Chief Executive Officer subject to the above

conditions being met, or if required enter into negotiations and form a contract with the second ranked Tenderer; and

3. Delegates authority to the Chief Executive Officer to exercise the extension options available to the Shire of Augusta Margaret River to extend the contract RFT 07-20 Supply of Road, Traffic and Safety Signage and Associated Accessories, subject to satisfactory performance of the Contractor as determined through a formal contract review process undertaken towards the end of the initial contract term.

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND The Shire of Augusta Margaret River has an ongoing need for the supply of road, traffic and safety signage and associated accessories, to ensure compliance with regulatory requirements. All signs are to be in accordance with Australian Standards AS1743:2018 Road signs – Specifications and AS1742 Manual of uniform traffic control devices. There is currently no formal contract in place for the supply of signage but expenditure averages approximately $100,000 per annum. CONSULTATION AND ADVICE External Consultation Nil Internal Consultation • Coordinator Operations (who will be reliant on the provision of the tendered services) • Storeman/Technical Officer; and


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• Project and Procurement Officer. DISCUSSION / OFFICER COMMENTS This tender was publicly advertised. Four (4) submissions were received from the following tenderers: a) Corsign WA Pty Ltd b) Galena Nominees Pty Ltd ATF Jason Signmakers c) Sunny Sign Company Pty Ltd d) The Wright Family Trust T/A Amity Signs Tenders were assessed by an evaluation panel against a range of compliance and qualitative criteria. The weighting applied to the qualitative criteria were as follows:

• Suitability of Goods – 45% • Capacity to Deliver Goods – 45% • Sustainability Considerations – 10%

Pricing was not a weighted criteria, however tenderers were required to provide a price schedule and complete a ‘pricing scenario table’ to assist the evaluation panel in comparing tenderer pricing, as part of the overall value for money assessment of tenderers after qualitative scoring and ranking of tenders had been determined. No local tenderers submitted for the contract, meaning the local price preference was not applied through assessment. An evaluation report for tenders has been undertaken which is attached as Confidential Attachment 1. Based on the tender assessment, it is recommended that a contract for the supply of road, traffic and safety signage and associated accessories be awarded to Corsign WA Pty Ltd. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS The Local Government (Functions and General) Regulations 1996 Part 4 Division 2 Regulation 11(1) requires that tenders are to be publicly invited before a local government enters into a contract for another person to supply goods or services if the consideration under the contract is, or is expected to be, more, or worth more, than $250,000. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key result area 3: Valuing, protecting and enhancing the natural environment Community Outcome 6: Connected and safe transport network Strategic Response: Manage traffic flows, parking and pedestrian safety in town and village centres PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications The Shire of Augusta Margaret River budgets for the ongoing need for signage, to ensure that the Shire complies with regulatory requirements. Long Term Financial Plan Nil Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental Ensure products are of appropriate quality to ensure longevity. Social Assists the community to adhere to traffic laws and/or regulations and provides directional assistance.


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Economic Value for money, goods and services. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Council could reject all tenders and invite quotes from signage contractors on an as-required basis. However, this option is not recommended as the Shire has a need for ongoing provider of signs, and the cumulative value of these services would exceed the limit for which the Shire is legislatively required to appoint a contractor through the advertising of a public tender. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Approves this report and accepts the Tender submitted by Corsign WA Pty Ltd as the most

advantageous Tender to form a Contract, subject to contracting and satisfaction of minor variations; 2. Delegates the formation of the Contract to the Chief Executive Officer subject to the above

conditions being met, or if required enter into negotiations and form a contract with the second ranked Tenderer; and


ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. CONFIDENTIAL Evaluation Report RECOMMENDATION / COUNCIL DECISION CR KENNAUGH, CR DANIEL OM2020/138 That Council: 1. Approves this report and accepts the Tender submitted by Corsign WA Pty Ltd as the most

advantageous Tender to form a Contract, subject to contracting and satisfaction of minor variations;

2. Delegates the formation of the Contract to the Chief Executive Officer subject to the above conditions being met, or if required enter into negotiations and form a contract with the second ranked Tenderer; and


CARRIED 7/0


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11.2.5 BUILDING ENVELOPE VARIATION - 59 (LOT 17) WOODITCH ROAD, MARGARET RIVER LOCATION/ADDRESS 59 (Lot 17) Wooditch Road Margaret River APPLICANT/LANDOWNER Cameron Crothers-Stomps & Nadia Louise Jongen FILE REFERENCE PTY/5506 REPORT AUTHOR Matt Slocomb, Strategic Project Officer AUTHORISING OFFICER Nick Logan, Director Sustainable Development and Infrastructure

This item was brought forward for consideration (page 57)


106

11.3. Corporate and Community

Services


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11.3.1 LIST OF PAYMENTS FOR MAY 2020 LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/42 REPORT AUTHOR Stacey Harvey, Finance Officer, Accounts Payable AUTHORISING OFFICER James Shepherd, Director Corporate & Community Services

IN BRIEF It is a requirement of the Local Government (Financial Management) Regulations 1996 that payments made under delegated authority by the CEO are reported to Council on a monthly basis showing details of each account paid since the last such list was prepared. RECOMMENDATION That Council notes the May 2020 List of Payments for $5,043,067.52. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Where Council has delegated authority to the CEO to make payments from the Shire’s bank accounts then under Local Government (Financial Management) Regulations 1996, Regulation 13 (1) a list of such payments is to be prepared each month for noting by Council. CONSULTATION AND ADVICE External Consultation Nil Internal Consultation Nil DISCUSSION / OFFICER COMMENTS Table 1 below provides a summary of the payments made and Table 2 makes comparison between payments for the 2018-19 and 2019-20 financial years. The List of Payments attachment provides further details as required under Regulation 13 (1). These details are as follows.

(a) The payee’s name; (b) The amount of the payment; (c) The date of the payment; and (d) Sufficient information to identify the transaction.

In order to improve operational efficiency and reduce costs, the Shire’s Finance team continually liaise with creditors paid by cheque to encourage them to switch to EFT.


108

TABLE 1 – SUMMARY OF PAYMENTS MADE IN THE MONTH MAY 2020

MODE OF PAYMENT CHEQUE / EFT NUMBERS AMOUNT

Cheques 42462 $306.10 EFT 76167 - 76547 $4,038,446.58

Direct Debits $1,004,314.84 TOTAL $5,043,067.52

TABLE 2 – COMPARISON WITH PRIOR YEAR OF PAYMENTS MONTH CHEQUES EFT/DD TOTAL PMTS CUMULATIVE CHEQUES EFT/DD TOTAL PMTS CUMULATIVE

2018-19 2018-19 2018-19 PAYMENTS 2019-20 2019-20 2019-20 PAYMENTS

JULY 26,103.88 5,421,569.55 5,447,673.43 5,447,673.43 4,869.95 5,279,604.72 5,284,474.67 5,284,474.67 AUGUST 24,324.24 3,479,792.07 3,504,116.31 8,951,789.74 0.00 2,813,479.48 2,813,479.48 8,097,954.15

SEPTEMBER 12,292.40 3,829,327.80 3,841,620.20 12,793,409.94 1,460.04 3,838,673.94 3,840,133.98 11,938,088.13 OCTOBER 16,100.80 12,583,756.59 12,599,857.39 25,393,267.33 593.05 11,323,915.09 11,324,508.14 23,262,596.27

NOVEMBER 18,922.59 4,513,582.09 4,532,504.68 29,925,772.01 776.75 3,284,744.97 3,285,744.97 26,548,341.24 DECEMBER 26,683.06 4,637,340.93 4,664,023.99 34,589,796.00 1,379.75 4,879,911.54 4,880,495.29 31,428,836.53 JANUARY 39,638.36 3,969,206.46 4,008,844.82 38,598,640.82 2,231.00 3,600,470.14 3,602,701.14 35,031,537.67

FEBRUARY 24,695.30 3,222,690.77 3,247,386.07 41,846,026.89 3,726.00 9,042,817.14 9,046,543.14 44,078,080.81 MARCH 23,851.36 3,494,760.00 3,518,611.36 45,364,638.25 511.47 8,516,753.22 8,517,264.69 52,595,345.50 APRIL 51,672.65 3,701,615.40 3,753,288.05 49,117,926.30 0.00 4,797,857.32 4,797,857.32 57,393,202.82 MAY 21,246.69 4,085,730.80 4,106,977.49 53,224,903.79 306.10 5,042,761.42 5,043,067.52 62,436,270.34 JUNE 39,968.10 4,897,066.12 4,937,034.22 58,161,938.01

325,499.43 57,836,438.58 58,161,938.01


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STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Local Government Act 1995, s 6.10, and Local Government (Financial Management) Regulations 1996, r 13 STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 5: Effective leadership and governance Community Outcome 2: Effective and integrated strategy, planning, financial and asset management PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications Nil Long Term Financial Plan Nil Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil Economic Nil ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council notes the May 2020 List of Payments for $5,043,067.52. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. List of Payments for May 2020

RECOMMENDATION / COUNCIL DECISION CR MELDRUM, CR CRISTOFFANINI OM2020/139 That Council notes the May 2020 List of Payments for $5,043,067.52.

CARRIED 7/0


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11.3.2 FINANCIAL ACTIVITY STATEMENT REPORT - MAY 2020 LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/14 REPORT AUTHOR Andrew Ross, Manager Corporate Services AUTHORISING OFFICER James Shepherd, Director Corporate and Community Services

IN BRIEF • The monthly financial activity statement report is a standard financial reporting item prepared in

accordance with the provisions of the Local Government Act 1995 and Regulation 34 of the Local Government (Financial Management) Regulations 1996.

• Council is to consider the financial results for the period ending 31 May 2020. RECOMMENDATION That Council receives the Monthly Financial Report – May 2020 in accordance with Section 6.4 of the Local Government Act 1995 and Regulation 34 of the Local Government (Financial Management) Regulations 1996. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND In accordance with Financial Management Regulation 34 the Shire is to prepare each month a Statement of Financial Activity reporting on the sources and applications of funds, as set out in the annual budget under Financial Management Regulation (1) (d), for that month with the following details:

(a) annual budget estimates; (b) budget estimates to the end of the month to which the statement relates; (c) actual amounts of expenditure, revenue and income to the end of the month to which the

statement relates; (d) material variances between the comparable amounts referred to in (b) and (c); and (e) net current assets at the end of the month to which the statement relates.

Also under Financial Management Regulation 34(5) Council are to adopt each year a material variance threshold. At the Ordinary Meeting of Council on 24 July 2019 (OM2019/136) Council adopted a monthly variance for reporting of material variances, where financial activity is greater than 10% and $10,000. CONSULTATION AND ADVICE External Consultation Nil Internal Consultation Business unit managers were provided the draft monthly financial reports for their business units and have provided their comments on variances greater than 10% and $10,000. DISCUSSION / OFFICER COMMENTS The commentary contained in the body of this report is in line with Financial Management Regulation (2)(b) that requires commentary on material variances to the Statement of Financial Activity at the nature/type, program or business unit level.


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The Statement of Financial Activity shows a year to date actual closing position at 31 May of $5.319 million ($0.790 million lower than last month’s result of $6.109 million). This result was higher than the expected year to date budgeted position of $0.360 million. The following details the main reasons for this favourable variation to Budget. Operating revenue is $0.519 million or 1.5% over budget (last month $0.058 million or 0.2% under budget) and is primarily due to the $0.742 million advance payment of the Financial Assistance Grants offsetting the revenue loss from facilities being closed due to COVID-19. Fees and charges which are $0.541 million or 5.5% below budget (last month $0.339 million or 3.6% below budget) and are offset by higher than budget interim rates, operating grants and other income due to the recognition of notional income from the use of resource stockpiles. Operating expenditure on a year to date basis is $1.599 million or 4.5% under budget (last month $1.450 million or 4.5% below budget). The variation has increased as savings are being achieved to offset the loss of revenue. Variations include materials and contracts being $1.870 million or 19.2% under budget (last month $1.707 million or 19.1% under budget) with Asset Services, Fire Prevention, Parks and Gardens, Waste, Community Planning & Development and Landcare having the largest variances; and interest being $0.092 million under budget due to a timing difference. Employee expenses are under budget by $0.012 million or 0.1% (last month $0.106 million or 0.8% over budget) and depreciation is over budget depreciation by $0.137 million or 1.6% (last month $0.116 million or 1.6% over budget). Employee expenses are over budget for business units including Outside School Hours Care, the HEART and the Infrastructure and Sustainable Development directorates due to additional hours or employees as well as a management restructure. These over expenditures are offset by under budget training due to COVID-19 restrictions. Total employee expenses are marginally under budget. The following table provides a breakdown of actual to budget performance for employee expenses.

Category Full Year Budget

YTD Budget YTD Actual YTD Variance

Provisions 1,168,566 1,032,888 1,036,716 3,828 Salaries & Wages 12,391,159 11,006,367 11,039,631 33,264 Superannuation 1,561,580 1,378,360 1,434,201 55,841 Workers Compensation

147,244 130,372 136,125 5,753

Fringe Benefits Tax 70,420 65,663 56,151 (9,512) Recruitment expenses

39,180 36,623 23,803 (12,820)

Training & Education 368,307 318,034 225,299 (92,735) Uniforms & PPE 90,225 85,625 84,980 (645) Memberships 0 0 4,688 4,688 Total 15,836,681 14,053,932 14,041,595 (12,337)

Grants for capital works are $0.593 million or 9.8% below budget (last month $0.692 million or 15.9% below budget). The main reasons for this variation are:

• the replacement of various Bushfire Brigade vehicles has been delayed and consequently the matching grants will not be received;

• the Better Bins grant was finalised and resulted in the amount received being lower than anticipated;

• the $0.266 million balance of the $0.405 million Lotterywest grant for the Cowaramup Hall project will not be fully claimed until construction is completed;

• Regional Road Group grant instalments are claimed progressively as works are completed; and

• offsetting the above are over budget developer contributions of $0.284 million. Capital expenditure of $2.548 million during the month ($1.987 million last month) was lower than the budget for the month of $3.750 million. On a year to date basis capital expenditure is $3.326 million under budget (last month $2.430 million under budget). The main variations are:

• buildings work for the Margaret River Youth Precinct were delayed but are now progressing; • purchase of vehicles for Bushfire Brigades totalling $1.101 million have been delayed;


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• some works for cemeteries and animal care facilities have been carried over to 2020-21; • construction on major projects at the Davis Road landfill site is progressing but have not

achieved budget timing projections and are $0.463 million under budget; • the replacement of the retractable seating at the HEART has been carried over to 2020-21; • building projects are $0.726 million under budget with $0.269 million of projects being carried

over to 2020-21 due to approval delays as well as the asbestos replacement projects funded by the unspent balance of Loan 194;

• various furniture and equipment items for the HEART are in the process of being purchased with some items expected to be carried over;

• projects for parks and gardens are progressing and are $0.058 million under budget; • delays with approvals and consultation have contributed to under budget expenditure $0.176

million for Asset Services with some projects to be carried over; • infrastructure upgrade projects are $0.038 million under budget due primarily to the main street

upgrade project exceeding budget timing expectations; • infrastructure renewal projects are $0.920 million under budget with the main variations

occurring for bridge works, road preservation and rehabilitation, gravel re-sheeting, path, drainage and foreshore preservation projects.

• the unbudgeted replacement of a utility following an insurance claim has contributed to over budget expenditure for the plant replacement program which has been completed for the year; and

• infrastructure works for caravan parks are $0.061 million over budget. Capital expenditure for the month included:

• $510,328 for the waste cell and leachate pond project; • $148,711 for various building works primarily the Cowaramup Hall, the Cowaramup Pioneer

Park toilets and the removal and reinstatement of asbestos for the Augusta Lions Memorial Park toilet block;

• $61,864 for various parks and gardens projects; • $1,728,492 on road related projects of which $949,219 was spent on infrastructure upgrade

projects and $779,293 was spent on infrastructure renewal projects. The Margaret River main street upgrade with expenditure of $740,128 was the main project on which expenditure was incurred. Carparks, foreshore facilities at Flinders Bay, gravel re-sheeting and re-shouldering, road preservation works and the reconstruction of Leeuwin Road , Warner Glen Road, Wallcliffe Road and Ashton Street were the main areas of expenditure; and

• $57,735 for the renewal of infrastructure and $33,450 for various building works at caravan parks.

Financial performance against budget is shown in the following charts.


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Financial impact of COVID-19 The COVID-19 enforced closure of Shire facilities providing face to face services has had a negative financial impact upon the Shire’s operating revenue. Due to additional interim rates and some other revenues as well as revised expectations for some sources of revenue due to facilities reopening, forecast revenue foregone is now expected to be $0.581 million compared to $0.874 million last month and $1.098 million that was initially forecast. The following table details the business units expected to suffer the largest losses of revenue due to factors including forced closure, waiving of fees and charges and reduced business. These forecast revenue losses are partially offset by increased revenue results for some areas.

Business Unit

Budget $’s

Actual at 31/5/20

$’s

Forecast at 30/6/20

$’s

Revenue Foregone

$’s

Previous Expectation

$’s

Initial Expectation

$’s Caravan Parks

2,201,140 1,826,081 1,889,140 312,000 384,780 403,780


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MR Recreation Centre

835,600 579,770 593,600 242,000 249,000 267,000

Waste Services

5,213,376 4,969,971 4,988,376 225,000 233,689 209,489

MR HEART 126,000 31,562 32,000 94,000 94,000 99,000 Rangers 190,814 130.414 144,214 46,600 49,100 42,100 Building Services

240,000 186,875 200,000 40,000 40,000 36,600

To offset the loss of revenue, operating expenditure savings totalling $0.468 million have been identified ($0.691 million last month) for business units and include expected savings in labour, training, consultants, contractors, advertising, subscriptions, public relations, activities, printing, events, functions, projects, fuel and maintenance. Further savings may be identified as the financial year progresses, with the objective being to offset all foregone revenue with operating expenditure savings. Most business units have identified savings of at least $10,000 and the following table details the business units with the largest savings.

Business Unit

Budget $’s

Actual at 31/5/20

$’s

Forecast at 30/6/20

$’s

Expenditure Savings

$’s

Previous Expectation

$’s

Initial Expectation

$’s MR HEART 1,177,125 914,166 1,033,061 144,064 106,659 112,195 Maintenance 8,820,850 8,035,903 8,721,104 99,746 105,000 105,000 Planning Services

1,281,978 965,746 1,195,978 86,000 86,000 115,000

MR Recreation Centre

2,136,355 1,846,864 2,047,355 89,000 76,500 78,500

Asset Services

1,391,065 1,128,539 1,311,065 80,000 71,500 91,500

Waste Services

3,445,330 2,729,523 3,413,930 31,400 70,400 123,000

Libraries 1,011,190 827,371 956,190 55,000 55,000 55,000 Marketing 612,671 392,796 530,271 82,400 53,800 51,800 Rangers 694,694 587,002 657,194 37,500 52,500 86,000

Following is the Statement of Financial Activity for the year ending 31 May 2020. This statement has been modified to include additional columns for the forecast balance at 30 June 2020, the forecast amendment and a comment relating to the amendment.


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SHIRE OF AUGUSTA MARGARET RIVERSTATEMENT OF FINANCIAL ACTIVITYFOR THE PERIOD ENDING 31 May 2020

BUSINESS UNITS 2019-20 2019-20 2019-20 2019-20 YTDAmended Month of YTD YTD Variance Forecast Forecast YTD Actual to Budget Comments

Budget May Budget Actual >10% & Actual Adjustment$ $ $ $ >$10,000 $ $

Net Current Assets at 1 July surplus/(deficit) 3,804,165 3,804,165 3,804,165 3,804,165 0 C/F includes FAG paid in advance less write off of assets from previous years

Revenue from Operating ActivitiesRates 22,571,870 33,132 22,569,870 22,659,122 0 22,659,518 87,648General Financing 1,355,093 948,755 1,309,693 2,105,829 796,136 1,375,760 20,667 Perm: Advance payment of FAGs for 2020-21Members of Council 200 0 150 303 0 200 0Chief Executive Officer 0 0 0 0 0 0 0Director Corporate & Community 0 0 0 0 0 0 0Director Sustainable Development 0 0 0 0 0 0 0Director Infrastructure 0 0 0 0 0 0 0Finance 20,100 0 20,100 5,950 (14,150) 20,100 0 Timing: FBT contributions to be paid in JuneCOVID-19 Response and Recovery 0 0 0 0 0 0 0Records 400 680 300 1,175 0 400 0Corporate Services 0 0 0 0 0 0 0Customer Services 183,800 2,465 168,650 156,313 0 167,200 (16,600)Information Comm. Technology 1,440 300 1,320 3,082 0 2,440 1,000Human Resources 0 0 0 0 0 0 0Community Planning & Development 52,055 0 49,933 37,357 (12,576) 47,055 (5,000) Perm: operating grantsLegal & Governance 0 24,282 0 212,678 0 0 0Communications & Marketing 0 0 0 0 0 0Community Fire & Emergency Services 601,010 23,186 518,260 515,975 0 616,010 15,000Rangers 190,814 10,678 175,597 130,414 (45,183) 144,214 (46,600) Perm: reduced infringements, fees and chargesLibraries 39,720 387 36,540 32,482 0 32,720 (7,000)Environmental Health 124,460 2,903 121,260 128,858 0 128,460 4,000Outside School Hours Care 430,700 15,689 401,850 426,739 0 442,200 11,500Waste Services 5,213,376 32,031 5,140,207 4,969,971 0 4,988,376 (225,000)Planning & Development Services 284,000 15,751 260,500 290,970 30,470 303,773 19,773 Perm: fees and charges for applicationsCommunity Buildings 35,333 0 35,333 40,627 0 40,333 5,000MR Recreation Centre 835,600 4,211 767,100 579,770 (187,330) 593,600 (242,000) Perm: reduced fees as facilities closedMargaret River Heart 126,000 0 96,000 31,562 (64,438) 32,000 (94,000) Perm: reduced venue hire income due to closureAugusta Recreation Centre 37,500 0 34,500 27,369 0 27,500 (10,000)Gloucester Park 67,500 (26) 65,000 45,863 (19,137) 47,500 (20,000) Perm: reduced fees & usage chargesBeach Lifeguards 0 0 0 0 0 0 0Parks and Gardens 12,800 8,869 12,800 14,675 0 14,600 1,800Asset Services 99,400 25,091 97,700 122,173 24,473 127,900 28,500 Perm: fees & chargesLandcare & Environmental Services 0 0 0 3,000 0 0 0Construction 0 0 0 0 0 0 0Maintenance 11,000 0 11,000 10,997 0 53,254 42,254Plant Program 12,373 2,172 12,373 91,576 79,203 91,373 79,000 Perm: profit on sale of vehicles & plantCaravan Parks 2,201,140 29,862 2,142,380 1,826,081 (316,299) 1,889,140 (312,000) Perm: reduced fees as caravan parks closedBuilding Services 240,000 17,251 220,000 186,875 (33,125) 200,000 (40,000) Perm: fees and charges for applicationsSustainable Economy 0 0 0 0 0Works Overheads 0 0 0 1,364 0 0 0Plant Operation Costs 0 0 0 4,520 0 0 0Other Property and Services 187,000 15,175 187,000 310,905 123,905 308,500 121,500 Resource pit income & workers comp recoveries

34,934,684 1,212,846 34,455,416 34,974,576 519,160 34,354,126 (580,558)


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SHIRE OF AUGUSTA MARGARET RIVERSTATEMENT OF FINANCIAL ACTIVITYFOR THE PERIOD ENDING 31 May 2020

BUSINESS UNITS 2019-20 2019-20 2019-20 2019-20 YTDAmended Month of YTD YTD Variance Forecast Forecast

Budget Mar Budget Actual >10% & Actual Adjustment$ $ $ $ >$10,000 $ $

Expenditure from Operating ActivitiesRevenue (366,438) (30,294) (333,114) (354,494) 0 (364,438) 2,000General Financing (654,202) (17,458) (536,578) (441,937) 94,641 (654,202) 0 Timing: Reversal of interest accrual, Govt Gty FeeMembers of Council (330,775) (18,071) (306,344) (290,972) 0 (324,775) 6,000Chief Executive Officer (550,706) (27,316) (503,492) (478,299) 0 (533,306) 17,400Director Corporate & Community (456,767) (21,668) (344,568) (327,853) 0 (439,209) 17,558Director Sustainable Development (445,212) (25,279) (393,872) (473,859) (79,987) (521,612) (76,400) Perm: employee costsDirector Infrastructure (484,036) (32,719) (435,623) (445,997) 0 (530,036) (46,000)Finance (1,183,164) (35,835) (1,130,528) (1,104,068) 0 (1,199,164) (16,000)COVID-19 Response and Recovery 0 (73,789) 0 (267,942) (267,942) (500,000) (500,000) Perm: care package funded from reserveRecords (177,974) (12,160) (158,280) (143,910) 0 (170,974) 7,000Corporate Services (225,800) (14,584) (209,275) (197,747) 0 (229,800) (4,000)Customer Services (510,738) (35,560) (451,539) (432,297) 0 (496,738) 14,000Information Comm. Technology (1,050,668) (45,379) (933,532) (899,003) 0 (1,042,668) 8,000Human Resources (686,022) (55,763) (615,923) (603,167) 0 (691,522) (5,500)Community Planning & Development (771,806) (42,900) (709,382) (530,221) 179,161 (766,806) 5,000 Timing/Perm: projects delayedLegal & Governance (390,554) (34,512) (339,943) (312,250) 0 (377,554) 13,000Communications & Marketing (612,671) (25,186) (560,799) (392,796) 0 (530,271) 82,400Community Fire & Emergency Services (1,368,102) (115,731) (1,276,305) (1,119,673) 156,632 (1,340,602) 27,500 Timing: bushfire mitigation worksRangers (694,694) (51,816) (627,995) (587,002) 0 (657,194) 37,500Beach Lifeguards (142,000) (70) (142,000) (101,067) 40,933 (142,000) 0 Timing: invoice for services expectedLibraries (1,011,190) (72,988) (909,577) (827,371) 0 (956,190) 55,000Environmental Health (563,328) (48,069) (501,409) (498,379) 0 (561,728) 1,600Outside School Hours Care (508,166) (40,126) (461,074) (415,957) 45,117 (533,666) (25,500) Timing/Perm: projectsWaste Services (3,445,330) (286,896) (3,180,253) (2,729,523) 450,730 (3,413,930) 31,400 Timing/Perm: projects, waste collection, tfr stationsPlanning & Development Services (1,281,978) (74,812) (1,088,438) (965,746) 122,692 (1,195,978) 86,000 Perm/Timing: employee costs, projectsLandcare & Environmental Services (821,967) (62,099) (738,638) (561,969) 176,669 (830,246) (8,279) Timing: EMF projectsCommunity Buildings (2,102,421) (172,042) (1,927,748) (1,872,811) 0 (2,091,421) 11,000MR Recreation Centre (2,136,355) (138,324) (1,915,984) (1,846,864) 0 (2,047,355) 89,000Margaret River Heart (1,177,125) (82,398) (1,025,127) (914,166) 110,961 (1,033,061) 144,064 Timing/Perm: projects, building operations, etcAugusta Recreation Centre (124,974) (6,526) (115,457) (97,317) 18,140 (106,974) 18,000 Perm: depreciatonGloucester Park (258,000) (21,202) (243,400) (188,170) 55,230 (255,000) 3,000 Timing/Perm: projectsParks and Gardens (2,811,900) (242,182) (2,595,085) (2,502,002) 0 (2,822,300) (10,400)Asset Services (1,391,065) (90,008) (1,289,599) (1,128,539) 161,059 (1,311,065) 80,000 Timing/Perm: projectsConstruction 0 0 0 0 0 0 0Maintenance (8,820,850) (837,894) (8,061,070) (8,035,903) 0 (8,721,104) 99,746Plant Program (54,913) (699) (49,913) (24,936) 24,977 (29,913) 25,000 Perm: Loss on sale of vehicles & plantCaravan Parks (1,311,826) (105,908) (1,192,069) (1,213,703) 0 (1,366,826) (55,000)Building Services (169,282) (12,327) (148,462) (140,107) 0 (166,782) 2,500Sustainable Economy (121,194) (8,029) (109,978) (94,155) 0 (121,194) 0Works Overheads (127,815) 100,468 12,851 (401,626) (414,477) (217,815) (90,000) Timing/Perm: under allocation of overheadsPlant Operation Costs 164,528 46,184 153,382 160,390 0 85,528 (79,000)Other Property and Services (113,000) 1,429 (113,000) (106,932) 0 (112,500) 500

(39,290,480) (2,870,537) (35,509,140) (33,910,339) 1,598,801 (39,322,391) (31,911)


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STATEMENT OF FINANCIAL ACTIVITYFOR THE PERIOD ENDING 31 May 2020

BUSINESS UNITS 2019-20 2019-20 2019-20 2019-20 YTDAmended Month of YTD YTD Variance Forecast Forecast

Budget May Budget Actual >10% & Actual Adjustment$ $ $ $ >$10,000 $ $

Operating activities excluded from BudgetDepreciation on assets 9,361,200 801,065 8,581,100 8,717,761 0 9,437,800 76,600(Profit)/Loss Asset Disposal 22,540 (2,172) 22,540 (54,680) (77,220) (51,460) (74,000) Perm: vehicle sale proceeds

9,383,740 798,893 8,603,640 8,663,081 (77,220) 9,386,340 2,600

Amount attributable to operating activities 8,832,109 (858,799) 11,354,081 13,531,483 8,222,240 (609,869)

INVESTING ACTIVITIESNon Operating Grants & Contributions

Community Fire & Emergency Services 1,280,000 0 1,280,000 193,121 (1,086,879) 1,294,200 14,200 Perm/Timing: Delivery of BFB items deferredWaste Services 70,000 33,346 70,000 33,346 (36,654) 36,654 (33,346) Perm: Lower than expected Better Bins grant Planning & Development Services 204,000 61,604 187,000 471,236 284,236 480,000 276,000 Perm: Developer contributions receivedCommunity Buildings 1,155,268 191,322 1,155,268 1,134,263 0 1,209,321 54,053 Timing: Cowaramup Hall Lotterywest grantMR Recreation Centre 0 0 0 10,000 0 0 0Parks and Gardens (54,397) 0 (54,397) (60,555) 0 (54,397) 0Asset Services 36,000 0 36,000 0 (36,000) 36,000 0 Timing: WA Bicycle Network grantConstruction 3,376,009 1,508,010 3,376,009 3,675,656 0 3,376,009 0Other Property & Services 0 0 0 0 0 0

6,066,880 1,794,282 6,049,880 5,457,067 (592,813) 6,377,787 310,907Capital Investment

Purchase Land Held for Resale 0 0 0 0 0 0Purchase Land and Buildings (3,138,108) (189,005) (2,925,708) (2,356,994) 568,714 (3,133,108) 5,000 Timing: various building projects Purchase Infrastructure Assets - Other (2,873,435) (630,171) (2,144,135) (1,421,190) 722,945 (2,872,435) 1,000 Timing: waste projectsPurchase Infrastructure Assets - Roads (10,843,625) (1,728,492) (9,137,854) (8,179,729) 958,125 (10,910,625) (67,000) Timing: road rehabilitation projects Purchase Plant and Equipment (2,785,000) 0 (2,175,000) (1,168,903) 1,006,097 (2,785,000) 0 Timing: BFB & waste itemsPurchase Furniture and Equipment (231,100) 0 (223,100) (152,787) 70,313 (231,100) 0 Timing: various, including purchases for HEARTProceeds from Disposal of Assets 505,000 15,855 505,000 548,033 0 505,000 0Proceeds from Sale of Land Held for Resale 120,000 0 120,000 122,727 0 120,000 0

(19,246,268) (2,531,813) (15,980,797) (12,608,843) 3,326,194 (19,307,268) (61,000)

Amount attributable to investing activities (13,179,388) (737,531) (9,930,917) (7,151,776) (12,929,481) 249,907

FINANCING ACTIVITIESRepayment of Debentures (924,549) (41,476) (813,943) (813,943) 0 (924,549) 0Repayment of Leases (36,897) (2,466) (33,404) (30,299) (36,897) 0Advances to Community Groups 0 0 0 0 0 0Proceeds from Self-Supporting & IF Loans 18,277 8,000 18,277 18,277 0 18,277 0Proceeds from New Loan 0 0 0 0 0 0Transfers to Cash Reserves (1,063,076) (1,020,676) (3,309,062) (3,309,062) 0 (3,043,076) (1,980,000)Transfers from Cash Reserves 6,353,525 2,000,000 3,074,525 3,074,525 0 8,403,525 2,050,000

Amount attributable to financing activities 4,347,280 943,383 (1,063,607) (1,060,502) 0 4,417,280 70,000

Net Current Assets Surplus (Deficit) 0 (652,947) 359,556 5,319,205 (289,962) (289,962)


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Outstanding Debtors The following charts compare the outstanding balance of rates and services and the outstanding balance of rates and services in arrears for the current and previous year. The charts show that both the number of assessments and the amounts outstanding are higher than at the same time last year. At 31 May 2020 outstanding rates and services totalled $854,415 compared to $664,381 at the same time last year. A year on year increase of 28.6% which is likely due to debt recovery actions ceasing as a result of COVID-19. Rates and services in arrears totalled $236,373 compared to $288,994 at the same time last year.

Investments At 31 May 2020 the Shire’s cash on hand, deposits and investments totalled $30,328,532 (a decrease of $5,094,563 to last month’s total of $35,423,095). Total investment interest earned for the year was $490,559 and slightly exceeded the budget of $487,400.


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Term Deposits – Cash Management At the end of May the Shire had the following short-term facilities (term deposits).

Term Days Maturity Institution (ADI) Principal

$ Interest Rate Interest

$

365 2/4/21 Bendigo Bank 1,000,000 1.35% 13,500 90 9/7/20 National Australia Bank 2,500,000 1.14% 7,027 365 17/7/20 NAB 1,500,000 1.85% 27,750 90 10/8/20 Bankwest 2,000,000 0.80% 3,945 180 4/6/20 Bankwest 2,000,000 1.12% 5,523 180 7/9/20 National Australia Bank 5,000,000 1.34% 33,041 90 9/7/20 Bankwest 1,500,000 1.14% 5,716 80 9/11/20 CBA 2,000,000 0.68% 6,707 17,500,000 103,209

During the month the following changes were made to term deposits:

• a $1.5 million term deposit with NAB matured on 8/5/20 and was redeemed; • a $4 million term deposit with Bankwest matured on 12/5/20 and $2 million was rolled

over for 90 days at 0.80% and the balance of $2 million was redeemed; and • a $2 million term deposit with CBA was rolled over for 180 days at 0.68%.

The average rate of interest to be paid on all term deposits is 1.18% (last month 1.48%).


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The Shire also has an Overnight Cash Deposit Facility (OCDF) with WA Treasury Corporation (WATC) which is used to hold the Royalties for Regions funds allocated for the main street redevelopment project. The South West Development Commission and the Department of Primary Industries and Regional Development are joint signatories for this facility. The second drawdown from the OCDF of $2.245 million was transacted on 5/2/20. During the month interest of $544 was earned (last month $1,061) and the current balance of the investment is $3.313 million. At 30 April 2020 the rate of interest earned on this facility is 0.20% and is set at 5 basis points lower than the Reserve Bank’s cash reference rate which is currently 0.25% after being reduced on 19/3/20.

In-Kind Support At 31 May 2020 fee waivers, donations and financial assistance sponsorships totalled $12,278 and included $8,200 of sporting sponsorships, $600 of donations and $3,478 of fee waivers. There was no change during the month. Reserves Movement to reserves represent interest earned on reserve funds and transfers to and from reserves. During the month transfers were processed to:

• transfer $2 million from the Waste Management reserve for the Community Care package; and • reserve the $1 million payment received from MRWA for the de-proclamation of Bussell

Highway. Budget Amendments No budget amendments are proposed. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Financial Management Regulation 34 requires a local government to prepare each month a Statement of Financial Activity reporting on the sources and applications of funds, as set out in the annual budget under Financial Management Regulation 22(1) (d). STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 5: Effective leadership and governance Outcome 6: Measure and report on success and sustainability Strategy 1: effectively measure our success and progress to a sustainable future Service level strategy/plan: Continue to monitor monthly, year to date and annual financial performance including preparation of the annual financial report.


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PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications At 31 May 2020 the Shire’s financial performance is exceeding budget projections for liquidity and the net operating result. This is attributable to under budget capital and operating expenditure and over budget operating revenue primarily due to the advance payment of the 2020-21 Financial Assistance Grants. However, the closure of Shire facilities due to COVID-19 restrictions has negatively impacted financial performance. Long Term Financial Plan Monthly financial performance will influence the Long Term Financial Plan by providing actual revenue and expenditure parameters to compare against forecast results. Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental As included in the report in business units such as Landcare & Environmental Services, Parks & Gardens, Waste Services, Environmental Health. Social As included in the report in business units such as Community Planning & Development, Town Plannning, Recreation Centres, Parks & Gardens. Economic As included in the report in business units such as Sustainable Economy, Caravan Parks, Building Services, Town Planning, General Financing. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council receives the Monthly Financial Report – May 2020 in accordance with Section 6.4 of the Local Government Act 1995 and Regulation 34 of the Local Government (Financial Management) Regulations 1996. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Monthly Financial Report consisting of:

a. Notes to and forming part of the Statement of Financial Activity b. Financial Reports by Business Units

RECOMMENDATION / COUNCIL DECISION CR CRISTOFFANINI, CR MELDRUM OM2020/140 That Council receives the Monthly Financial Report – May 2020 in accordance with Section 6.4 of the Local Government Act 1995 and Regulation 34 of the Local Government (Financial Management) Regulations 1996.

CARRIED 7/0


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11.3.3 EVENT FUNDING FOR 2020-21 LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE REC/22 REPORT AUTHOR Hannah Waters, Executive Assistant Corporate and Community

Services AUTHORISING OFFICER James Shepherd, Director Corporate and Community Services

IN BRIEF • Council policy provides for an allocation of up to 1% of rates to sponsor Icon Events per financial

year. • Icon Events are events deemed to be of state, national and/or international significance. • In the 2020-21 budget an allocation of $143,500 (or approx 0.65% of rates) has been provided for

Icon Event sponsorships. • Council have committed $65,000 of the 2020-21Icon Events funds via previous resolutions. • Council is required to consider one new Icon Event. • The Community Events budget provides sponsorship funding for events considered to be of local

and/or regional significance, or of commemorative significance. • In the 2020-21budget an allocation of $87,500 has been provided for Community Events. • Council have committed $26,000 of the 2020-21 Community Events funds via previous resolutions. • It is anticipated there will be additional sponsorship applications for events proposed to be held in

2020-21. • A working group are reviewing the provision of financial assistance and event funding across the

organisation and creating a funding framework to ensure equity across all requests for financial assistance.

RECOMMENDATION That Council:

1. Notes previous Icon Event and Community Event funding commitments as follows:

Icon Events Funding Summary 2020-21

$ 2021-22

$ Council Decision

Augusta Adventure Fest Event cancelled OM2018/172 Cape to Cape Mountain Bike 7,500 OM2018/172 Margaret River Region Open Studios

12,500 OM2018/172

Cinefest Oz 25,000 OM2018/172 Surf Pro 20,000 20,000 OM2019/133 Totals 65,000 20,000

Community Events Funding Summary 2020-21

$ 2021-22

$ Council Decision

Carols in the Park 5,000 5,000 OM2019/133 Margaret River Agricultural Show 15,000 15,000 OM2019/133 ANZAC Day – Augusta 1,500 1,500 OM2019/133 ANZAC Day – Margaret River 1,500 1,500 OM2019/133 Australia Day – Margaret River 1,000 1,000 OM2019/133


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Australia Day – Cowaramup 1,000 1,000 OM2019/133 Australia Day – Augusta 1,000 1,000 OM2019/133 Totals 26,000 26,000

2. Commits to providing $143,500 for Icon Event funds and $87,500 for Community Event funds

in the 2020-21 budget.

3. Notes that $7,500 of the remaining $78,500 Icon Event funding for 2020-21 be allocated to the Lunar Circus subject to:

a) Council adoption of the Icon Event budget. b) A sponsorship agreement being established between the Shire and the Event

Organiser. c) The Event Organiser meeting event compliance as determined by the Shire.

4. Provides approval for the CEO to allocate the remaining $71,000 Icon Event funding and

$61,500 Community Event funds in 2020-21 on a merit-based application process subject to: a) A sponsorship agreement being established between the Shire and the Event

Organiser b) The Event Organiser meeting event compliance as determined by the Shire

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND On 23 April 2014, Council adopted an Icon Events Policy (OM2014/62) to facilitate for the funding of major events that are large scale, deemed to be of state, national and/or international significance and demonstrate the ability to generate economic activity (tourism, trade, investment). The policy defines Icon Event criteria as: Primary Criteria Management Planning, Sustainability, Access and Opportunity, Consultation. Secondary Criteria Economic Impacts, Media Coverage, Tourism Activity, Co-cash Contributions, Prestige, Community Involvement, Capacity Building (upskilling the community), Social Justice (affordability of social engagement), Environmental Impacts, Education and Conservation. As stated in the policy, the intent of Icon Events funding is to provide seed support for establishing and growing events with the overall objective that they become self-sufficient over time. Furthermore, to be considered for Icon Event funding, the event should be geographically located within the Shire of Augusta Margaret River or promote and position the region to a target external audience to achieve economic activity objectives. Funding percentage The policy states a maximum of 1% of rates income can be allocated to major events sponsorship each financial year. Due to the current tight fiscal environment, an amount of $143,500 or 0.65% of rates is proposed for Icon Events in the 2020-21 budget. Community Events Council does not have an adopted Community Events Policy but has traditionally provided funding for smaller scale localised events to achieve a variety of objectives with the Community Strategic Plan 2036. These objectives include, but are not limited to participation, social engagement, health and wellbeing, connection, inclusive communities, accessibility, vibrancy, safety and sustainability.


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Icon Event funding requests Council have committed $65,000 of the $143,500 available in the 2020-21 Icon Events funding budget in previous resolutions as follows:

• Cape to Cape Mountain Bike - $7,500 (Agreement to 2020-21) • Margaret River Region Open Studios - $12,500 (Agreement to 2020-21) • Cinefest Oz - $25,000 (Agreement to 2019-20) • Surf Pro - $20,000 (Agreement to 2021-22)

Community Event funding requests Council have committed $26,000 of the $87,500 available in the 2020-21 Community Events funding in previous resolutions as follows:

• Carols in the Park - $5,000 (Agreement to 2021-22) • Margaret River Agricultural Show - $15,000 (Agreement to 2020-21) • ANZAC Day – Augusta - $1,500 (Agreement to 2020-21) • ANZAC Day – Margaret River - $1,500 (Agreement to 2020-21) • Australia Day – Margaret River - $1,000 (Agreement to 2020-21) • Australia Day – Cowaramup - $1,000 (Agreement to 2020-21) • Australia Day – Augusta - $1,000 (Agreement to 2020-21)

CONSULTATION AND ADVICE External Consultation Nil Internal Consultation Director Corporate and Community Services Communications and Events Team Manager Corporate Services DISCUSSION / OFFICER COMMENTS As part of the budget preparations for 2020-21 allocations of financial support provided from the 2019-20 budget have been collated along with all of the relevant policies and strategies associated with the provision of funds. GL29 Icon Event Sponsorship Policy and the CCSP10 Financial Assistance Policy are both due to be reviewed. Icon Event and Financial Assistance Policy review and their ties to the 2019 Events Strategy CCSP10 Financial Assistance Policy was adopted at the Ordinary Council Meeting held 27 September 2017 (OM2017/237). The policy specifies six streams of financial support (listed below), some of which included events in their funding priorities.

1. Sponsorship 2. Donation 3. Waiver of Fees and Charges 4. Community Development Grants 5. Council Contributions 6. Interest Free Loans

The wording of the policy excluded applicants accessing multiple funding streams within the financial year however did not preclude accessing funds from other Shire budget areas. Information gathered to complete a holistic review of Shire funding including event funding identified inequities in the provision of funds across the organisation specifically relating to priorities, criteria, eligibility, Shire recognition, reporting and acquittal requirements. Events represent a large portion of Shire funding and at the Ordinary Council Meeting held 25 September 2019, Council adopted the Sustainable Events Strategy 2019 (OM2019/196). The objectives of the strategy are to:

1. Build the right kinds of events 2. Get the most out of events 3. Involve the community 4. Make the process simple for all


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An internal working group has been formed to create a Funding Framework to guide the realignment of funding streams across the organisation. The framework will provide a consistent approach to the way the Shire manages funding and event requests. It will set the parameters of support and highlights expected outcomes for each funding stream. Details on eligibility, assessment criteria and key dates will be identified in the individual funding stream guidelines. Once complete the associated policies will be updated and presented to Council for endorsement. Community events and gatherings have been significantly impacted by the global COVID-19 pandemic. Restrictions put in place by the Federal and State Governments in response to the pandemic limited event organisers ability to plan future events with confidence. The uncertainty of when travel and social gathering restrictions would be lifted necessitated that future event planning be placed on hold. Consequently, several events approved for 2019-20 were cancelled completely or postponed pending the lifting of restrictions. Funding for the Surf Pro and the Ultra Marathon from the Icon Events Budget and the South West Football League from the Community Events Budget have been rolled over from the 2019-20 budget into the 2020-21 budget to accommodate the change in dates due to the postponements. The pandemic has also resulted in only one Icon Event funding application being received to date for the 2020-21 financial year. Lunar Circus Icon Event sponsorship requests Icon Events funding requests

2020-21

$ 2021-22

$ 2022-23

$ Lunar Circus 7,500 7,500 7,500

The Western Australian Circus Festival is three day event held annually during the month of January in Karridale. This event is a celebration of circus arts, music, and magic presented by performers from all over the world. Artists are sought to provide entertainment to a wide range of community demographics offering an inclusive, accessible festival. The festival is preceded by two weeks of circus training which will be a joint project incorporating the Lunar Circus Summer School and the 2021 International Training Project. They hold classes in over 30 disciplines at beginner, intermediate and advanced levels. Students can immerse themselves in up to six hours of circus training every day. Tutors are emerging performers and established artists from all over the world. This is an opportunity to exchange skills, develop shared methodology, establish lasting networks and to create new and shared work. Free camping attracts an audience from Perth, Fremantle, Bunbury, Dunsborough, Busselton, Denmark and Broome in addition to the local community. The Western Australian Circus Festival is the largest and longest running circus festival in Australia. It is now entering its 14th year, continuing event growth and standing within Australia and internationally. It is renowned for the development of both youth circus and international circus partnerships. Festival organisers work closely with all Australian circus companies and training organisations including the National Institute of Circus Arts, the Australian Circus and Physical Theatre Association and international festivals who base operations on the Lunar Circus school festival model. Data gathered by the event organiser from previous years shows the event attracts around 2,000 participants and attendees to the region. Based on an average spend of $150 per person, per day it is estimated that the event generates a direct local economic spend of $600,000. Other events benefits include:

• Local employment • Promotion of health and wellbeing • Volunteering opportunities • Equitable participation and access • Youth involvement – free children’s workshops


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Officer Comment The Western Australian Circus Festival has proven to be an immensely popular event and exceptionally well organised from a compliance perspective. It has provided a unique audience experience, not often available outside of a metropolitan area. As a Funding Framework is currently being developed to guide equitable access to Shire funding it is recommended that the Lunar Circus only be funded for one year to the value of $7,500 pending the finalisation of the respective documentation. It is noted that there is no rubbish and recycling collection available at the festival location. Event organisers are conscientious about sustainability and recycling and have requested in-kind support for the drop off of recyclable material at the closest depot for the month of January 2021. To support the event and the strategies within the 2019 Sustainable Event Strategy it is recommended that:

1. The Chief Executive Officer under Delegation 15 (Grant concessions, waive or write off debt) waives the fee for one cubic metre of uncontaminated recycling material to be deposited at the Davis Road Waste Facility, subject to making arrangements with facility staff prior to arrival.

2. The Lunar Circus sort the waste onsite and utilise the Container Deposit Scheme (CDS) program. The CDS provides $0.10 for every eligible container they return. The Leeuwin Lions are the collection point in Augusta. Note: The CDS commences 1 October 2020.

3. As a commercial enterprise the Lunar Circus contact waste management contractors directly to manage the festivals waste requirements.

Budget Profiling Due to the impacts of COVID-19 annual applications for both Icon Events and Community Events have not been submitted to the Shire as would normally be expected. Budget profiling based on rollovers from postponed events and historical requests have been used to build the 2020-21 budgets. It is anticipated that event funding applications will be received throughout the year and it is therefore recommended to withhold funds to enable second round allocations as has been the practice in previous years. Should Council choose to adopt the Officer’s recommendation for funding allocations the events budgets it is anticipated that the funding allocations could be as follows:

Icon Events Funding Summary 2020-21 $

Council Decision / Comments

Augusta Adventure Fest Event cancelled OM2018/172 Cape to Cape Mountain Bike 7,500 OM2018/172 Margaret River Region Open Studios 12,500 OM2018/172

Cinefest Oz 25,000 OM2018/172

Surf Pro 2021 23,000 OM2019/133

*Including $3,000 fee waiver rollover from 2019-20

Surf Pro Sundowner 3,500 Anticipated request

Ultra Marathon* 20,500 Anticipated request

*Including $9,000 rollover from 2019-20

Lunar Circus 7,500 Anticipated request Cabin Fever 10,000 Anticipated request Readers and Writers Festival 14,000 Anticipated request Emergence Festival 10,000 Anticipated request Strings Attached Guitar Festival 5,000 Anticipated request Reserve for ad-hoc requests 5,000 Totals 143,500


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Community Events Funding Summary

2020-21 $

Council Decision / Comments

Carols in the Park 5,000 OM2019/133 Margaret River Agricultural Show 15,000 OM2019/133 ANZAC Day – Augusta 1,500 OM2019/133 ANZAC Day – Margaret River 1,500 OM2019/133 Australia Day – Margaret River 1,000 OM2019/133 Australia Day – Cowaramup 1,000 OM2019/133 Australia Day – Augusta 1,000 OM2019/133 South West Street Fest 3,500 Anticipated request Arts Margaret River Sunday Sundowners 2,000 Anticipated request

Discover Deadly 2,000 Anticipated request Deja Moo 1,000 Anticipated request Augusta River Festival 13,000 Anticipated request Undalup Association Inc. 2,000 Anticipated request Surf Rescue – First Aid 5,000 Anticipated request Augusta Christmas Carols 2,000 Anticipated request Whale Song 5,000 Anticipated request Augusta Yacht Club Regatta 1,000 Anticipated request

South West Football League* 4,000 Anticipated request

*Including $1,000 rollover from 2019-20

Gnarabup Swim 2,000 Anticipated request Night Markets 2,000 Anticipated request Intercultural Action Group 2,000 Anticipated request Boogie Down South 2,500 Anticipated request Fair Harvest 2,500 Anticipated request Reserve for ad-hoc requests 10,000 Totals 87,500

STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Events must meet event compliance requirements to receive the funding. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key result area 4: Vibrant and diverse economy Community Outcome 2: Sustainable tourism and other local industries Strategic Response 3: Encourage tourism in the shire by development and support of iconic events Service level strategy/plan: 4.2.3.2 Sponsor icon and community events that provide a window into our community and that showcase the Shire to national and international audiences. PLANNING FRAMEWORK Sustainable Events Strategy 2019 GL29 Icon Events Policy FINANCIAL IMPLICATIONS Implications $143,500 has been allocated in the 2020-21 Budget for Icon Events in job CMP01 and $87,500 has been allocated for Community Events in job CMP02. Long Term Financial Plan Nil Whole of Lifecycle considerations Nil


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SUSTAINABILITY IMPLICATIONS Environmental Events must meet environmental compliance requirements as determined by the Shire (and the Department of Biodiversity, Conservation and Attractions if relevant). Social Event benefits include social equity, community engagement, networking, health and wellbeing, upskilling, volunteerism, education. Economic Direct economic impact (visitation, local organiser spend), media impact, brand awareness (future visitation, trade, investment), local business participation/promotion, local employment and networking are some of the economic implications of events. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Notes previous Icon Event and Community Event funding commitments as follows:


$ 2021-22

$ Council Decision


12,500 OM2018/172



$ 2021-22

$ Council Decision

Carols in the Park 5,000 5,000 OM2019/133 Margaret River Agricultural Show 15,000 15,000 OM2019/133 ANZAC Day – Augusta 1,500 1,500 OM2019/133 ANZAC Day – Margaret River 1,500 1,500 OM2019/133 Australia Day – Margaret River 1,000 1,000 OM2019/133 Australia Day – Cowaramup 1,000 1,000 OM2019/133 Australia Day – Augusta 1,000 1,000 OM2019/133 Totals 26,000 26,000

2. Commits to providing $143,500 for Icon Event funds and $87,500 for Community Event funds in the

2020-21 budget.


a) Council adoption of the Icon Event budget.


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b) A sponsorship agreement being established between the Shire and the Event Organiser. c) The Event Organiser meeting event compliance as determined by the Shire.

4. Provides approval for the CEO to allocate the remaining $71,000 Icon Event funding and $61,500

Community Event funds in 2020-21 on a merit-based application process subject to: a) A sponsorship agreement being established between the Shire and the Event Organiser b) The Event Organiser meeting event compliance as determined by the Shire.

ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS Nil RECOMMENDATION / COUNCIL DECISION CR MELDRUM, CR KENNAUGH OM2020/141 That Council: 1. Notes previous Icon Event and Community Event funding commitments as follows:


$ 2021-22

$ Council Decision


12,500 OM2018/172



$ 2021-22

$ Council Decision

Carols in the Park 5,000 5,000 OM2019/133 Margaret River Agricultural Show 15,000 15,000 OM2019/133 ANZAC Day – Augusta 1,500 1,500 OM2019/133 ANZAC Day – Margaret River 1,500 1,500 OM2019/133 Australia Day – Margaret River 1,000 1,000 OM2019/133 Australia Day – Cowaramup 1,000 1,000 OM2019/133 Australia Day – Augusta 1,000 1,000 OM2019/133 Totals 26,000 26,000

2. Commits to providing $143,500 for Icon Event funds and $87,500 for Community Event funds

in the 2020-21 budget.


a) Council adoption of the Icon Event budget. b) A sponsorship agreement being established between the Shire and the Event

Organiser. c) The Event Organiser meeting event compliance as determined by the Shire.

4. Provides approval for the CEO to allocate the remaining $71,000 Icon Event funding and

$61,500 Community Event funds in 2020-21 on a merit-based application process subject to: a) A sponsorship agreement being established between the Shire and the Event

Organiser


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b) The Event Organiser meeting event compliance as determined by the Shire. CARRIED 7/0


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11.3.4 ADOPTION OF 2020-21 FEES AND CHARGES LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/357 REPORT AUTHOR Vicki Scott, Coordinator Revenue and Customer Service AUTHORISING OFFICER Andrew Ross, Manager Corporate Services

This item was brought forward for consideration (page 12).


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11.3.5 ADOPTION OF 2020-21 DIFFERENTIAL RATES, MINIMUM PAYMENT AND RATE CONCESSIONS LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/11 REPORT AUTHOR Andrew Ross, Manager Corporate Services AUTHORISING OFFICER James Shepherd, Director Corporate and Community Services



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11.3.6 ADOPTION OF 2020-21 EARLY PAYMENT INCENTIVES, PAYMENT OPTIONS, LATE PAYMENT INTEREST AND INSTALMENT CHARGES

LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/11 REPORT AUTHOR Andrew Ross, Manager Corporate Services AUTHORISING OFFICER James Shepherd, Director Corporate and Community Services



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11.3.7 DRAFT STRENGTHENING COMMUNITY CAPACITY POLICY AND PLAN 2020-25 LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE CSV/169 REPORT AUTHOR Stacey Hutt, Community and Corporate Planning and Development AUTHORISING OFFICER James Shepherd, Director Corporate and Community Services

IN BRIEF • Shire officers have drafted a new policy and plan focused on asset based capacity building through

working with community leaders and volunteers across community groups, non-for-profits and social enterprises.

• This approach aims to deliver improve community resilience and response across social areas of the community and seeks to replace the Shire’s CCSP18 Safer Communities Policy.

• The purpose of the policy and plan is to provide clear direction for the Shire’s Community Planning and Development team as well as other Shire service areas that work closely with community groups.

• The plan is intended to best respond to community need with limited resources and maximise reach to a largely diverse and active community.

RECOMMENDATION That Council endorses the Draft Strengthening Community Capacity Policy and Plan (as shown in Attachments 1 and 2) for three weeks of community consultation prior to adoption by Council. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND The Augusta Margaret River community and the local government sector is changing. Sustaining a resilient community is a priority for our Shire and doing so in partnership with community and all levels of government is required in order to achieve sustainable and meaningful results. The traditional approach for local government in the area of community capacity building focused on areas of Community Safety; Injury and Crime prevention, However the focus for local governments has now shifted to enabling communities to be healthy and resilient. Two projects from 2018-19 have been important inputs into this work, including:

1. Mental Health and Wellbeing in the Shire of Augusta Margaret River. This report was developed by the Centre for Remote and Regional Mental Health at the University of Newcastle and commissioned and facilitated by the Lishman Health Foundation. Research was conducted from November 2018 to May 2019, with researchers visiting the Shire twice during this period and Shire officers delivering hands on support for the community engagement which primarily informed the report alongside detailed analysis of regional health data. The final report was delivered in June 2019 with findings showing a greater socio-economic divide in our community than commonly acknowledged. Health data also showed increasing mental health diagnosis, self-harm presentation at local hospitals, domestic violence and drug and alcohol issues.

2. Service Mapping for the AMR Shire, by the Western Australia Primary Health Alliance (WAPHA) and GP Down South. This was done in close partnership with the Shire and Shire officers. The GP Down South officer was located in the community development team throughout the 12


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month period and assisted with recovery efforts following the Osmington tragedy in 2018. This project report was delivered in August 2019 and identified various gaps in community and social services which would support community wellbeing. It also provided recommendations for integration and increased access to services, focused on working with agencies to assist in promotion, upskilling / communication with GPs, and a cross sectional approach which supports a sustainable economy, innovation/entrepreneur, development of social enterprises and affordable housing.

CONSULTATION AND ADVICE External Consultation Community engagement was then conducted from November through to January 2020, to aid in the development of this plan. This work included:

• Community Leaders Forum held in November 2019, with approximately 50 attendees • Review of all data and feedback received from previous local wellbeing reports, including the

extensive community engagement received through 2018-19 and 2019-18 with Shire officers being involved in this work

• Analysis of vulnerable community’s data from social atlas and census data • Review of existing community development activities within the Shire and determination of

priority areas for action • Working with Shire officers to ensure integration, particularly with community engagement

received through the Shire’s Public Health Plan and Sustainable Economy Strategy • Partnering with the Mental Health Commission and Mindful Margaret River to develop a

community action plan which reaches shared objectives.

Community engagement during the response and recovery to significant events such as the Bushfires in 2011, the Osmington tragedy in 2018 and COVID-19 in 2020 with key feedback received during these times also contributed to the development of this plan. Internal Consultation These documents have been developed in close consultation with Sustainable Development including Sustainable Economy and Environmental Health with their respective strategic documents. The Shire Executive have also provided review. DISCUSSION / OFFICER COMMENTS There is no neat, linear approach to community development. The process required to support a welcoming, connected and resilient community needs to occur in partnership and utilise the knowledge, skills and wisdom of the community. The guiding principles of the policy bring to life the values and approaches that the team have been employing over recent years and which best support an asset based and place based approach for meaningful working relationship with community. The key objective of the Shire’s Strengthening Community Capacity Plan 2020-24 is to strengthen the capacity, and in turn the resilience, of the Augusta Margaret River community specifically of volunteers and community groups. The purpose of this work is to facilitate community action, where volunteers can be supported and empowered to achieve their aspirations and address identified community needs particularly those aligned with the United Nations Sustainable Development Goals. The principles of this plan seek to support healthy people and places through:

• Valuing the strengths of others; • Partnering with community members and groups to achieve shared vision and goals; • Acknowledging integration of community capital including physical, natural environment,

economic, social and human assets; • Supporting the development of a fair and just community where no one is left behind; and • Supporting community groups to be sustainable in order to mitigate, adapt and protect all

members of our community to withstand climate events.

The principles apply to three broad levels of activity: • Individual: community members including families, extended families and small groups; • Organisations: Community based organisations including both informal and incorporated

groups, community-controlled organisations, non-government organisations; and


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• Broad system: local government and other state bodies operating at a local level.

The plan has been developed through examination of various research pieces; both from within and outside the Shire community. The analysis includes review of industry best practice from government and non-government agencies, as well as thorough community engagement conducted over 2019-20. Findings from this analysis have identified three key goal areas to support the creation of a strong, connected and resilient community which is able to respond to crisis and local recovery efforts:

1. Welcoming communities: Welcoming Communities recognise that communities are healthier, happier and more productive when newcomers and community members are welcomed and participate fully in society and in the local economy.

2. Connected and just communities: Connected and just communities operate fairly and are

beneficial for individuals, families as well as the whole community. Community members, volunteers and community group leaders know their communities best and have a huge opportunity to effect systematic change particularly in social justice.

3. Resilient communities: Resilient communities are able to respond to incidents, have the

ability to cope effectively with crises, learn from adversity and respond to climate justice. This brings together health and human services agencies, our business sector, non-government and government agencies.

This plan also delivers a template for local recovery action in the case of a local emergency, with two key strategies to guide community response. This could be presented as a local recovery plan, bespoke for any climate related or social impact event, as shown below:


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In recent years the Shire has been in recovery and response phase multiple times, this is anticipated to continue in light of climate change and other social dynamics. It is acknowledged that planning and facilitating the community response and recovery in recent years has used significant staff resources with Shire community development staff, delaying the implementation of usual programs and activities, with recovery actions taking priority. Responding to incidents can therefore require additional resources in order to best respond to incidents and this should be planned for accordingly. The Shire’s overall response is focused on the support for non-profit and community groups, particularly across the following areas:

• Community activation; • Volunteering; • Funding and finance; • Research and evaluation; and • Advocacy.

Through the application of an Asset Based Community Development approach in both planning and service development, this plan enables sustainable initiatives, integrated services, programs and projects, which contribute to a connected, inclusive and resilient Augusta Margaret River community. As such, integration with other Shire and community development plans and key documents is provided below.

STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS The Local Government Act 1995 specifies the key roles of the Council. Under Section 2.7 of the Local Government Act 1995, Council has four main roles:

1. Direct and control the Local Government's affairs; 2. Be responsible for the local government’s functions; 3. Oversee the allocation of the local government’s finances and resources; and 4. Determine the local government’s policies.

Policy determination is a key role of the Council. Policies are guidelines to provide a consistent approach and framework for Council decision making and for the CEO and staff to action Council’s requests. Policies are not legislation and there may be circumstances where a position needs to be


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taken which is at variance with an existing policy. In these circumstances, Council should make a decision that departs from an existing policy. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 2: Welcoming, inclusive and healthy communities Community Outcome 1: Evolving cultural values are respected and adopted Strategy 2: Support local art and community celebrations, events and local festivals which develop unique creative capital 2.1.2.1 – Implement the Creative Blueprint including the Spare Plinth Program and Public Art Policy, and review every four years. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications In developing the Creative Culture Plan and Public Art Policy it is recognised that the Shire is a major financial contributor to this sector. Planning and budgeting sufficient resources for the creative sector is paramount to ensuring a sustainable and thriving flagship industry. Long Term Financial Plan Nil Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental This policy and plan has been developed to support and compliment environmental community group activities and Shire environmental programs like the Environmental Management Fund. Social This policy and plan follows a triple bottom line approach and is intended to directly support social, environmental and economic community outcomes through community groups and volunteers, and in collaboration with other Shire service areas. Economic This policy and plan has been developed to support and compliment the Shire’s draft Sustainable Economy Strategy. ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council endorses the Draft Strengthening Community Capacity Policy and Plan (as shown in Attachments 1 and 2) for three weeks of community consultation prior to adoption by Council. ADVICE TO APPLICANT / PROPONENT Nil


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ATTACHMENTS 1. Draft Strengthening Community Capacity Policy 2. Draft Strengthening Community Capacity Plan RECOMMENDATION / COUNCIL DECISION CR GODDEN, CR DANIEL OM2020/142 That Council endorses the Draft Strengthening Community Capacity Policy and Plan (as shown in Attachments 1 and 2) for three weeks of community consultation prior to adoption by Council.

CARRIED 7/0


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11.3.8 COMMUNITY CONSULTATION AND STAKEHOLDER ENGAGEMENT POLICY LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE CSV/86 REPORT AUTHOR Stacey Hutt, Community and Corporate Planner AUTHORISING OFFICER James Shepherd, Director Corporate and Community Services

IN BRIEF • Shire officers have completed a scheduled review of the Shire’s organisational wide community

engagement policy and approach. • This policy was last reviewed in 2016 which resulted in the “CCSP23 Community Consultation and

Stakeholder Engagement Policy” being combined with a planning consultation policy to enable one organisational wide approach.

• The Shire has since evolved its engagement style and seeks to reflect this through this review which includes all five levels of the International Association for Public Participation (IAP2) framework within a place based engagement approach.

• This policy will be supported by an updated framework and toolbox to improve place focused community engagement throughout all Shire business units.

RECOMMENDATION That Council endorses the reviewed “CCSP23 Community Consultation and Stakeholder Engagement Policy” for public advertising and three weeks of community consultation prior to adoption by Council. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Community engagement was identified as a priority improvement area for the Shire in 2015 through an independent assessment against the Australian Business Excellence Framework. A policy review in 2016 resulted in an organisational wide approach being endorsed and the launch of the Shire’s Your Say online platform. The 2016 policy focused on the first three levels of the International Association for Public Participation (IAP2) framework being Inform, Consult, and Involve. It called for attention to multi-channel engagement with hard copy and face-to-face engagement methods imperative alongside online engagement. The overall focus at the time was to commence a simple uniformed organisational wide effort to deliver consistent community engagement. Since this time the Shire has delivered close to 100 engagement projects through the Your Say platform using a multi-channel engagement approach. Over 20 Shire officers have completed training for IAP2 certification as an inhouse program. This program has assisted officers in learning from different business areas and to develop a shared understanding of how we engage. This policy review is focused on bringing together all five levels of the IAP2 framework with place-based engagement principles. CONSULTATION AND ADVICE External Consultation


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No formal external consultation has yet occurred for this review. Shire officers have drawn on feedback from community members and other qualitative information received over the last year to guide this review. Internal Consultation Internal consultation has included review with the Executive Leadership Team, Senior Leadership Team and other Shire officers who regularly lead, implement or participate in community engagement. DISCUSSION / OFFICER COMMENTS All Managers and business units lead and deliver community engagement at the Shire with the Shire’s engagement approach evolving over recent years to integrate online engagement techniques alongside face-to-face and traditional approaches. This policy review has focused on formalising a place based engagement approach and employing practical elements that will best support officers in delivering meaningful engagement activities. The review has been informed by a desktop review of local government policy trends and various place based engagement frameworks largely by state and federal government agencies. The review has also included qualitative feedback from community members over the last year and engagement professionals who have recently worked with Shire officers on high impact projects. Insights have also been sought from Shire officers who regularly lead, implement or participate in community engagement projects. Community engagement is just one facet of a “place based approach,” which is becoming more popular throughout Australia due to growing evidence of its social and cultural impact across the world. Place based approaches call for long term commitment to partnership with community, working together through aligned strategies at a local level. It is important to note that this is separate to “place-making”, which is a linked although separate philosophy for creating public spaces using urban design principles. While larger government agencies appear to be moving towards place based frameworks, local governments are focused on engagement approaches that offer a hybrid between place based and IAP2 principles. This is an ideal approach for the Shire, where IAP2 continues to be seen across the state as best practice for localised engagement design and delivery.

Above: The International Association for Public Participation (IAP2) framework


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The results from the Shire’s Community Perception Survey conducted in September 2019 have also been a helpful input to this review. The results from this survey show a desire for more meaningful engagement at a townsite level. A place based engagement approach is also complimented by the Shire’s asset based draft Strengthening Community Capacity Policy and Plan, and these principles can be promoted through the major review of the Shire’s Community Strategic Plan in 2020-21.

Above: The principles of place-based approach published and employed by the Queensland Council of Social Services. The key changes to this policy include:

• Inclusion of all 5 IAP2 levels (the current policy details the first 3 levels only) • Inclusion of place based principles and ‘whole of shire’ / ‘local’ engagement • Inclusion of Shire values to prioritise aboriginal and accessible engagement • Clearer statements on what it all means in action.

To support the policy review an updated engagement framework and toolbox will be rolled out to all staff to improve place focused community engagement throughout all Shire business units. This is focused on providing practical, clear direction and functional techniques for all staff. Alongside this a basic update of the Shire’s Your Say logo and website will occur to show a renewed approach and adding this updated style across all engagement documents. Attachment one presents the updated draft “CCSP23 Community and Stakeholder Engagement Policy”. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Several statutes require Local Governments to seek community engagement (for example, town planning matters). Relevant legislation includes the Planning and Development (Local Planning Schemes) Regulations, 2015, Planning & Development Act 2005, Residential Design Codes, the Bushfire Act 1955 and the Local Government Act 1995. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 (CSP) Corporate Business Plan 2019-2023 Key Result Area 5: Effective leadership and governance Outcome 5.5. A culture of innovation, quality and continuous improvement


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Strategic Response 5.5.2. Encourage innovative community engagement to ensure all areas of the community have a voice in issues that affect them. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Implications Quality community engagement requires officer time and can have resourcing and budgetary impacts across the organisation. This policy reinforces a focus on sound project planning to design each engagement activity in a way that is considered and responsive, and that best optimises officers’ time and project spend. Long Term Financial Plan Nil Whole of Lifecycle considerations Nil SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil Economic Nil ADVOCACY Nil IMPLICATIONS OF ALTERNATIVE RESOLUTION Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council endorses the reviewed “CCSP23 Community Consultation and Stakeholder Engagement Policy” for public advertising and three weeks of community consultation prior to adoption by Council. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Reviewed Draft CCSP23 Community Consultation and Stakeholder Engagement Policy RECOMMENDATION / COUNCIL DECISION CR GODDEN, CR MELDRUM OM2020/143 That Council endorses the reviewed “CCSP23 Community Consultation and Stakeholder Engagement Policy” for public advertising and three weeks of community consultation prior to adoption by Council.

CARRIED 7/0


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11.3.9 ADOPTION OF 2020-21 ANNUAL BUDGET LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/358 REPORT AUTHOR Andrew Ross, Manager Corporate Services AUTHORISING OFFICER James Shepherd, Acting CEO



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11.3.10 COVID-19 FINANCIAL HARDHIP POLICY LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE COR/404 & COR/11 REPORT AUTHOR James Shepheard, Director Corporate and Community Services AUTHORISING OFFICER Stephanie Addison-Brown, Chief Executive Officer

IN BRIEF • The COVID-19 pandemic has resulted in considerable and serious economic and social impacts

on communities across the world. • On the 25 March 2020 Council endorsed a $2 million dollar COVID Community Care Package

(OM2020/44) to support the Shire community. • Various initiatives have been funded since to support the immediate impact of the COVID-19

pandemic. • This policy forms part of the COVID Community Care Package to support the transition into

recovery and is intended to provide all eligible ratepayers experiencing genuine financial hardship resulting from the effects of the COVID-19 pandemic with additional support options.

RECOMMENDATION That Council: 1. Adopts GL-26 COVID-19 Financial Hardship Policy (as shown in Attachment 1); and 2. Provides funds from the COVID-19 Community Care Package to support applications for financial

hardship under the policy for the 2020-21 financial year where applicable. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND At the Ordinary Council Meeting held 25 March 2020 Council endorsed the provision of a $2 million dollar COVID-Community Care Package (OM2020/44). The Package, comprising of a mix of funding and in-kind support has been well received with $406,000 approved or pending being granted to 12 projects to date. As restrictions across the State have gradually lifted over the past two months the community has begun the transition towards recovery as businesses have reopened, the number of visitors to the Shire has started to increase and community activities have started to recommence. Nevertheless, the Shire recognises that the challenges presented by the COVID-19 pandemic may result in financial hardship for some ratepayers and has therefore established a Hardship Fund within the 2020-21 annual budget funded from the Shire’s 2019-20 Community Care Package. This will be available to support community members able to demonstrate financial hardship attributable to COVID-19. Hardship determination will require the provision of the evidence specified within the application as supporting documentation; each enquiry will be assessed on a case by case basis. The Policy will remain in place until June 2021 at which time it will be reviewed. Information will be provided with rate notices with an outline of the policy. Applications may be received at any time during the course of the 2020-21 financial year.


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CONSULTATION AND ADVICE External Consultation • WALGA • AMD Accounting • Middeltons Business Advisory

Internal Consultation • Manager Corporate Services • Manager Legal Services • Coordinator Revenue and Customer Services

DISCUSSION / OFFICER COMMENTS Payment difficulties, or short-term financial hardship, occurs where a change in a person’s circumstances results in an inability to pay a rates or service charge debt. Financial hardship occurs where a person is unable to pay rates and service charges without affecting their ability to meet their basic living needs, or the basic living needs of their dependants for an extended period of time. The Shire recognises that as a result of the 2020 COVID-19 pandemic there may be an increase the occurrence of payment difficulties, financial hardship and vulnerability in our community. This policy is intended to apply to all ratepayers experiencing genuine financial hardship resulting from the effects of the COVID-19 pandemic. The policy applies to rates and service charges levied for the 2020-21 financial year noting that it is a reasonable community expectation, as we deal with the effects of the pandemic, that those with the capacity to pay rates will continue to do so. For this reason the policy is not intended to provide rate relief to ratepayers who are not able to evidence financial hardship and the statutory provisions of the Local Government Act 1995 (the Act) and Local Government (Financial Management) Regulations 1996 will apply. Supporting evidence of hardship will be required when providing a claim. Evidence must demonstrate that hardship is a direct result of the impact of the COVID-19 pandemic on the ratepayer’s financial circumstances. Specific criteria will be applied for residential and business ratepayers. The Shire recognises that not all circumstances are alike and will take a flexible approach to a range of individual circumstances including, but not limited to, the following situations:

• Recent unemployment or under-employment as a result of COVID-19. • Low income or loss of income as a result of COVID-19. • Business ratepayers that meet Federal Government criteria for financial support. • Sickness or recovery from sickness associated with COVID-19. • Unanticipated circumstances such as caring for and supporting extended family suffering health

or hardship as a result of COVID-19. Ratepayers will be required to provide the information specified about their circumstances for assessment as a minimum requirement. This will include demonstrating a capacity to make some payment. The Shire will seek to agree either a payment plan or extension of the due date as the preferred course of action. STATUTORY ENVIRONMENT/LEGAL IMPLICATIONS Nil STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 Corporate Plan 2019-23 Key Result Area 5: Effective leadership and governance Outcome 4 Community and Customer Focus FINANCIAL IMPLICATIONS Implications


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Following the introduction of the COVID-19 Community Care Package in March 2020 an expenditure area and structure was created to track any expenditure funded from the $2 million with allocated funds transferred from the Waste Management Reserve. The transfer of funds used during the 2019-20 financial year will be affected as part of the end of financial year activities to match expenditure incurred with the same approach to be adopted for the 2020-21 financial year. Long Term Financial Plan Any funds required to support applications for hardship will be funded from the COVID-19 Community Care Package. The impact of the establishment of this fund was addressed within Council Decision OM2020/44 on 25 March 2020. Whole of Lifecycle Considerations Nil SUSTAINABILITY IMPLICATIONS Environmental The COVID-19 pandemic is unprecedented and is having a serious and negative economic and social impact on the community. Social The COVID-19 pandemic is unprecedented and is having a serious and negative economic and social impact on the community. Economic The COVID-19 pandemic is unprecedented and is having a serious and negative economic and social impact on the community. ADVOCACY Nil ALTERNATE OPTIONS Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Adopts GL-26 COVID-19 Financial Hardship Policy (as shown in Attachment 1); and 2. Provides funds from the COVID-19 Community Care Package to support applications for financial

hardship under the policy for the 2020-21 financial year where applicable. ATTACHMENTS 1. GL-26 COVID-19 Financial Hardship Policy Cr McLeod moved the following procedural motion: PROCEDURAL MOTION / COUNCIL DECISION CR MCLEOD, CR MELDRUM OM2020/144 That the item be deferred to 12 August 2020.

CARRIED 7/0


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11.3.11 COMMUNITY CARE PACKAGE - ECONOMIC STIMULUS AND COMMUNITY RESILIENCE GRANT FUNDING PROGRAMS LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE COR/404 & COR/11 REPORT AUTHOR James Shepherd, Director Corporate and Community Services AUTHORISING OFFICER Stephanie Addison-Brown, Chief Executive Officer

IN BRIEF • The COVID-19 pandemic has resulted in considerable and serious economic and social impacts

on communities. • On the 25 March 2020 the Shire implemented a $2 million-dollar COVID-Community Care Package

(OM2020/44). • The Shire is proposing a Hardship Policy to support ratepayers experiencing financial difficulties

during 2020-21. • The Economic Stimulus and Community Resilience Grant Funding Programs will provide support

opportunities for Shire businesses and community groups to support recovery from the pandemic. • Additional community benefit can be realised through the provision of additional funding to the

existing Community Development and Community Event Grants for 2020-21. • A Council report will be provided at the completion of the initial funding round. RECOMMENDATION That Council: 1. Adopts the Economic Stimulus Grant Funding Criteria and authorises the CEO to provide funds for

successful grants from the Community Care Package; 2. Adopts the Community Resilience Grant Funding Criteria and authorises the CEO to provide funds

for successful grants from the Community Care Package; and 3. Allocates $47,000 from the Community Care Package to provide additional funding to the

Community Development and Community Event Grants for 2020-21. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND At the Ordinary Council Meeting held 25 March 2020 Council endorsed the provision of a $2 million-dollar COVID-Community Care Package (Package) (OM2020/44). The Package, comprising of a mix of funding and in-kind support has been well received with $406,000 either allocated or pending allocation to 12 projects. The Shire recognises that the provision of funds to support activities that stimulate economic activity and community activation and associated capacity building will support the Shire community’s ability to recover from the COVID-19 pandemic and establish activities, networks and initiatives that will help protect against future significant and unplanned ‘shocks’ that have a wide reaching effect on the shire community.


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To support the community’s ability to recover from the effects of the current pandemic and be better prepared for any similar future occurrences the Shire is proposing to implement the following grant programs to support both the business and wider communities for the 2020-21 financial year: Economic Stimulus Grant Program This program has been developed to support sustainable local employment and business success to improve Shire based business’ ability to withstand ongoing economic disruption resulting from unplanned and/or major ‘shocks’. The program is built around key funding criteria to focus applications on meeting the needs of the local business community. The criteria are outlined in Attachment 1. Community Resilience Grant Program This grant funded program is designed to support long term strategic community projects, programs and services that enhance sustainability, build resilience and develop the community’s ability to withstand ongoing disruption and ‘shocks’. Like the Economic Stimulus Grant Program it is built around key funding criteria that focus applications on meeting the needs of the community and building capacity to support improved self sufficiency from external influences over time. The criteria are outlined in Attachment 2. Extension of existing Community Development and Community Event Grant Programs The Shire currently provides significant funding for community groups to deliver activities, services and events across the Shire. The 2020-21 budget allows for $103,000 via the Community Development and Community Events grants programs that fund activities including The Augusta River Festival, Undalup’s Bunuru Festival and the Margaret River Agricultural Show. To support expanded community capacity building events and activities it is proposed to supplement these programs with an additional $47,000 from the Community Care Package to provide a total of $150,000 for these existing programs for the 2020-21 financial year. CONSULTATION AND ADVICE External Consultation Nil Internal Consultation • Councillors • Executive Leadership Team • Manager Corporate Services • Manager Human and Community Services • Manager Legal Services • Co-ordinator Community Planning and Development • Sustainability Planning Officer DISCUSSION / OFFICER COMMENTS Since the imposition of the State of Emergency resulting from the global COVID-19 pandemic Shire officers have engaged with the community and businesses to understand the issues being faced as a result of the COVID-19 pandemic, what support is being provided by both the State and Federal governments, the impact of the support programs funded through the current Community Care Package and how the Shire can best support the community’s transition into recovery in ways that will support the ability to withstand similar future events should they occur. The easing of restrictions since early June has had a positive impact on the region with an influx of out of season visitors that has supported an increase in confidence within the business and wider community; with people able to get back to work and/or back to their workplace as businesses reopen there is a general sense of increasing confidence at this time. However, the recent problems faced by Victoria in relation to a resurgence of COVID-19 infections highlights the potential fragility of the current situation and reinforces the need for the Shire and wider


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community to remain vigilant and supportive of the existing restrictions and required hygiene practices to minimise the risk of a similar reoccurrence in the region. The Shire’s role as an enabler through the provision of grant funding programs will facilitate businesses and the community establish improved networks, activities, programs and services that support a more resilient community. These grant funding programs will enable the business and wider community to seek financial support for the establishment of new or improved programs, services, events and activities that will help the whole shire cope and grow capacity in relation to the current situation as well as be better prepared for similar, future events should they occur. In addition, the Shire’s grant scheme will integrate with the federal and state government recovery funding initiatives to ensure that the whole of government recovery process is effective and responsive to aiding those vulnerable members of the community throughout the recovery process, that may last beyond the next 12 months. STATUTORY ENVIRONMENT/LEGAL IMPLICATIONS Nil STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2036 Corporate Plan 2019-23 Key Result Area 5: Effective leadership and governance Outcome 4 Community and Customer Focus FINANCIAL IMPLICATIONS Implications Following the implementation of the Community Care Package in March 2020 an expenditure area and structure has been created to track any expenditure funded from the $2 million to be transferred from the Waste Management Reserve. Funding transfers will be affected at the end of the financial year to match expenditure incurred; this will be repeated for grant activities during the 2020-21 financial year. The Shire has sufficient forecast cash flow to fund expenditure while the statutory public notice period for the change of use for the reserve occurs. Long Term Financial Plan The draft LTFP shows there are sufficient funds in the Waste Management reserve to meet forecast capital expenditure needs, if $2 million is transferred to the Municipal account. The funds should also be able to be replaced over time. Whole of Lifecycle Considerations Nil SUSTAINABILITY IMPLICATIONS Environmental The COVID-19 pandemic is unprecedented and is having a negative economic and social impact on the community. Social The COVID-19 pandemic is unprecedented and is having a negative economic and social impact on the community. Economic The COVID-19 pandemic is unprecedented and is having a negative economic and social impact on the community. ADVOCACY Nil ALTERNATE OPTIONS Nil


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VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Adopts the Economic Stimulus Grant Funding Criteria and authorises the CEO to provide funds for

successful grants from the Community Care Package; 2. Adopts the Community Resilience Grant Funding Criteria and authorises the CEO to provide funds

for successful grants from the Community Care Package; and 3. Allocates $47,000 from the Community Care Package to provide additional funding to the

Community Development and Community Event Grants for 2020-21. ATTACHMENTS 1. Economic Stimulus Grant Funding Criteria 2. Community Resilience Grant Funding Criteria


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ADDENDUM 11.3.11 COMMUNITY CARE PACKAGE - ECONOMIC STIMULUS AND COMMUNITY RESILIENCE GRANT FUNDING PROGRAMS LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE COR/404 & COR/11 REPORT AUTHOR James Shepherd, Director Corporate and Community Services AUTHORISING OFFICER Stephanie Addison-Brown, Chief Executive Officer

This addendum was published on 21 July 2020. This addendum provides amended attachments and a revised recommendation. The amendments include an adjustment to the wording to align the Purpose, Funding Priorities, Eligibility and Process for both documents with the Shire Community Care Package Response to the COVID-19 pandemic. REVISED RECOMMENDATION That Council: 1. Adopts the Economic Stimulus Grant Program 2020-21 Funding Criteria and authorises the CEO

to provide funds for successful grants from the Community Care Package; 2. Adopts the Community Resilience Grants Program 2020-21 and authorises the CEO to provide

funds for successful grants from the Community Care Package; and 3. Allocates $47,000 from the Community Care Package to provide additional funding to the

Community Development and Community Event Grants for 2020-21. ATTACHMENTS 1. Economy Stimulus Grants Program 2020-21 2. Community Resilience Grants Program 2020-21 Cr Mcleod moved the following procedural motion: PROCEDURAL MOTION / COUNCIL DECISION CR MCLEOD, CR MELDRUM OM2020/145 That the item be deferred to 12 August 2020.

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12. MOTIONS FROM MEMBERS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN Nil

13. MOTIONS FOR CONSIDERATION AT NEXT MEETING Nil

14. NEW BUSINESS OF AN URGENT NATURE

14.1. Members Nil 14.2. CEO Nil

15. CONFIDENTIAL BUSINESS Nil

16. CLOSURE OF MEETING The Shire President thanked all in attendance and declared the meeting closed at 6.44pm

ordinary council...no responsibility whatsoever is implied or accepted by the shire of augusta...

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