temporary storage (shipping) container on public land

City Administrative Centre Bridge Road (PO Box 42), Nowra NSW Australia 2541 - DX 5323 Nowra

Phone: (02) 4429 3111 - Fax: (02) 4422 1816

Southern District Office Deering Street, Ulladulla - Phone: (02) 4429 8999 – Fax: (02) 4429 8939

Email: [email protected]

Website: www.shoalhaven.nsw.gov.au

For more information contact the Corporate & Community Services Group

Temporary Storage (shipping) Container on Public Land Policy Number: POL14/35• Adopted: [Click here to enter date] • Minute Number: [Click here to enter Minute number] • File: 6320E • Produced By: Corporate & Community Services Group • Review Date: 30 September 2017

1. PURPOSE The aim of this Policy is for Shoalhaven City Council to manage the use and installation of storage (shipping) containers on Council owned and managed land. Community Land or Crown Land managed by Councils as Community Land – categorised as ‘sportsground’ or General Community Use’ - for the use by Sporting clubs, sporting associations, community groups (user group) as storage . This policy will guide and govern the applications/requests to locate and access a temporary storage (shipping) container on Community land for storage.

2. STATEMENT Storage (shipping) containers provide an identifieda cost effective solution to the shortfall in storage for our UserCommunity groups that operate on Council owned and/or managed Community Land, categorised as ‘Sportsground’ or ‘General Community Use’.

3. DEVELOPMENT PERMITTED WITHOUT CONSENT The State Environmental Planning Policy (Infrastructure) 2007 permits outdoor recreation facilities to be developed without consent in a public reserve. Therefore, outdoor recreation facilitites which meet the SEPP do not require development consent, however, must meet the requirements of this policy. The Infrastructure SEPP Division 12 Parks and other public reserves - clause 65(3) being (b) outdoor recreation facilities:

4. DEFINITIONS 4.1. Community Land Community land means land that is classified as community land under Division 1 of Part 2 of Chapter 6 of the Local Government Act 1993 No 30. Classification as community land reflects the importance of the land to the community because of its use or special features. Generally, it is land intended for public access and use, or where

Ordinary Meeting 17 February 2015 - Item 15

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Shoalhaven City Council – Temporary Storage (shipping) Container on Public Land

other restrictions applying to the land create some obligation to maintain public access (such as a trust deed, or dedication under section 94 of the Environmental Planning and Assessment Act 1979). This gives rise to the restrictions in the Act, intended to preserve the qualities of the land. Community land cannot be sold cannot be leased, licenced or any other estate granted over the land for more than 21 years and must have a plan of management prepared for it. 4.2.4.1. SHIPPING CONTAINER Shipping containers are large, usuallyusually large rectangular-shaped, units that are used or are capable of being used for short term storage requirements. to carry goods for transport by sea, road, rail or air. Shipping containers used in international trade are of standard sizes and dimensions to facilitate their easy transfer from one transport mode to another. The most common shipping container transported by sea, road or rail is either 6.1 or 12.2 metres (20 or 40 feet) long by 2.4 metres (8 feet) wide and 2.6 metres (8 feet 6 inches) high. 4.3.4.2. RECREATION FACILITY (outdoor) Recreation facility means a building or place (other than a recreation area) used predominantly for outdoor recreation, whether or not operated for the purposes of gain, including a golf course, golf driving range, mini-golf centre, tennis court, paint-ball centre, lawn bowling green, outdoor swimming pool, equestrian centre, skate board ramp, go-kart track, rifle range, water-ski centre or any other building or place of a like character used for outdoor recreation (including any ancillary buildings), but does not include an entertainment facility or a recreation facility (major).

5. POLICY Land to which this policy is applicable: This policy applies to Council owned and/or managed Community land. categorised as ‘Sportsground’ or ‘General Community Use’.

6. TYPE OF APPROVAL Council requests that tThe applicant is required to enter into a licence with Council to occupy Council land for the placement of a temporary storage (shipping) container to be used for storage purposes. All licence applicationThe applicant must be submit their proposal to Council’s Property Unit, prior to submitting a request for placement of the temporary storage. If the request is for Council managed land held by the Crown, there may be different approval requirements and processes. A the licence request for Council managed land held by the Crown may need to be referred to Crown Lands for approval depending on the time period the licence is requested for. Referrals to Crown Lands will possibly incur an extension of time for approvals. prior to advertising. This Any licence request over both Council and Crown land will need to be advertised for a minimum of 28 days to allow community comment. The applicant will be required to pay all rental and advertising fees associated with the licence agreement, in accordance with the statutory minimum annual rental fee and Council’s adopted Fees and Charges.



7. TIME PERIOD Shipping containers will only have approval to be on Council owned land for a maximum period of five (5) years, subject to satisfactory compliance assessment, with an option for a further five two (25) years.



8. INSTALLATION/REMOVAL Installation must not impede access to the land. Installation of a shipping container must have Council approval and be licensed. Failure to comply with this policy will result in removal of the shipping container by the applicant or by Council at the cost of the group/person responsible for the shipping container. On approval to install a shipping container, a condition will be imposed to include an appropriate bond to cover the installation and removal of the shipping container. The bond will be assessed on a case by case basis by Council’s Property Unit Manager, depending on the location and circumstances.

9. LOCATION The location of temporary storage (shipping) containers must adhere to the following:

• Installation must not impede access to the land.

• Containers must be placed on flat, solid ground. Any associated earthworks (cut & fill) must be in accordance with the State Environmental Planning Policy (Exempt and Complying Development) 2008 (Subdivision 15 – Earthworks and retaining walls).

• Containers must not be used to store contaminated or hazardous materials. Temporary storage (shipping) containers must not be placed :-

• In flood prone areas. • In drainage reserves. • In bushfire fighting trailsareas that are subject to maintenance and access for bushfire

purposes. • In designated parking areas. • Oon or within any (developed/active) easement or road reserve. • In high visibility or scenic quality areas. • In a heritage conservation area or impact on a European or Aboriginal heritage item. • Nnext to structures such as fences or buildings that could encourage climbing and

access to buildings. • Oon top of services such as pipes, irrigation systems, and effluent disposal systems. • Across or impede access by pedestrians or emergency vehicles. • Where site lines for traffic or pedestrian /cyclists are impeded. • Oon top of underground power or under power lines - must be compliant with the

requirements of the energy provider, • or require the removal of vegetation.on areas which will require removal of significant

vegetation

10. CONDITION OF TEMPORARY STORAGE (SHIPPING) CONTAINER Temporary storage (shipping) containers must be in good repair; this includes no visible signage or corrosion. They must be painted and maintained to a suitable standard that is compatible and sympathetic to the surrounding area. They must be maintained to this standard.

11. GRAFFITI Graffiti on a shipping container must be removed within 48 hours of its detection.

Formatted: No bullets or numbering



12. NUMBER OF TEMPORARY STORAGE (SHIPPING) CONTAINERS Only one (1) temporary storage (shipping) container can be located on a reserve unless there are exceptional circumstances, in which case Council will determine each application on its merits. The intention of this limitation is to discourage the proliferation of containers in parks and reserves.

13. PURPOSE OF TEMPORARY STORAGE (SHIPPING) CONTAINERS Temporary storage (shipping) containers must not be:

• Used for any purpose other than for storage of items belonging to the community group of sporting club/association

• Fitted out with sanitary facilities • Used to store hazardous substances and/or dangerous goods for example chemicals,

paints, flammable liquids and gases, corrosives, toxic substances • Modified or enable a business to be carried out from it • Used for personal storage or activities • Used for advertising.

Any signage (such as club name or logo) must be discrete and should be no larger than A3 size.

14. GOVERNING POLICIES AND PLANS Environmental Planning and Assessment Act Shoalhaven Local Environment Plan 2014 Local Government Act SEPP Infrastructure

15. INSURANCE AND RESPONSIBILITIES OF OWNERS These Shipping containers are owned by and are the responsibility of the applicant. They are not a registered asset of Council and any maintenance, repairs or disposal are the responsibility of the user group or applicant that located the container at the site. The containers are for storage of general equipment. The contents within a shipping container are the applicants responsibility to insure as is the case with all storage at sportsgrounds.

The owner of the container MUST

• ensure the temporary storage (shipping) container is secured to withstand structure loads of location.

• Ensure that a mechanical fitting is installed to prevent accidental entrapment (self locking) of a person in the temporary storage (shipping) container (eg chaining door to side walls)

• hold public liability insurance in relation to the container to the sum of $20 Million

16. IMPLEMENTATION The Corporate and Community Services Group will administer this policy.

Formatted: Indent: Left: 1.27 cm, No bullets or numbering

Formatted: List Paragraph, Bulleted +Level: 1 + Aligned at: 0.63 cm +Indent at: 1.27 cm



17. REVIEW To be reviewed within one year of the election of a new Council.



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Monthly Report

Shoalhaven City Council

January 2015


Shoalhaven City Council: January 2015 Page 2

Market We refer to our more detailed Economic Commentary for the month.

International News

US markets were weaker on concerns that falling energy prices signalled economic weakness. Falls in

the S&P 500 (-3.10%), NASDAQ (-2.13%) and Dow Jones (-3.69%) also reflected earnings

expectations revised down. The strong $US is hurting import competitors, miners and oil producers

receive lower prices, and multi-national earnings are lower translated to $US.

Most other markets rose – the MSCI World was -0.65% lower but ex-US it was strongly up at +2.7%.

Emerging Markets rose +1.42% in local currency or +0.6% in $US but the more commodity exposed

Frontier Markets fell over 4%.

China’s GDP growth eased to a still strong 7.40%, despite being blamed for the commodity plunge.

US 10 year bond yields finished at 1.68%, down almost ½% from last month’s 2.17% and nearing its

2012 record low despite likely interest rate increases in 2015.

Domestic

The market convinced itself of a February interest rate cut without the RBA changing its official

guidance. A three-year low headline CPI of +1.70% was the result of lower petrol prices and tax

changes, but consistent with core inflation low in the 2-3% target range.

Energy pulled the preliminary demand PPI into negative territory in Q4, with final demand up just

+0.1% to be 1.1% higher on the year.

Motor vehicle sales are down 1% on the year, but building activity (a rare highlight) up +5.1%.

Approvals spiked +7.5% in November.

Retail sales grew just +0.1% in November.

Slowing GDP (+0.3% in Q3), a recent 12-year high unemployment (6.3%) monetary stimulus globally

are the major factors. But unemployment ticked -0.1% lower as jobs rose 37,400 in December –

fulltime up 41,600. Hours worked were 1.8m down though, at 1,602m.

Australian 10-year bond yields finished at 2.44%, from 2.87% - a new record, and inverting the yield

curve in a recessionary signal.

Queensland voted on the 31st, and with the final mix in doubt certainly produced a uniquely large

electoral turnaround in a result that puts another change of PM on the table nationally.

Bank shares soared, driving the ASX200 over 3% higher, amid further indications that the banks

would not have to suddenly raise additional equity.

Currency & Commodities

Industrial metals continued, with Tin -0.77%, Lead -0.49%, Nickel -1.00% and Zinc -2.54%. Copper

was dramatically lower, at -13.49%.

Aluminium gained just +0.33%. Gold surged to $1283.80 (+8.4%) on uncertainty and QE. Oil hit a six-

year low. Soaring US crude inventories saw the WTI benchmark drop $7 to $US47 / bbl.

The Australian dollar set a new cyclical low of US78c, down from US82c. However, the RBA

highlighted that falls have been minor against third currencies.

Bank bill futures now price in multiple interest rate cuts, contrary to the RBA’s 2014 outlook.



Credit Market

Investment grade indices were mixed during the month. US stockmarket weakness affected the

CDX (now 71bp), although Europe was stronger ahead of central bank stimulus. Australia widened

on lower commodity prices, despite stronger stocks. Emerging Markets were wider again (primarily

on the deterioration in oil exporters’ bonds) but high yield traded sideways.

Credit Indices 31 Jan 15 31 Dec 14 31 Jan 14

iTraxx Australia 5 Yr CDS 97bp 94bp 106bp

iTraxx European 5 Yr CDS 60bp 63bp 82bp

CDX North American 5 Yr CDS 71bp 66bp 72bp Source: MarkIt



Council’s Portfolio The portfolio has 6% of investments available at-call and a further 27% of assets maturing within 3

months. Additional short-dated funds have been gradually redeployed into a portfolio now well

diversified by term – ahead of what has been a considerable decline in deposit rates. Half the

portfolio is now in medium-term assets.

Council also currently has a number of senior FRNs and bonds, and a credit managed fund through

Macquarie, as additional cover for liquidity requirements.

The possibility of another rate cut in the near future should also be factored in – the RBA has

tended to move in pairs.

Short- and long-dated deposits are likely to come under further pressure in the month.

Council’s portfolio is dominated by term deposits across a broad range of counterparties; credit

assets are around 12% of the portfolio.



The investment portfolio is well diversified in complying assets across the entire credit spectrum,

with major banks (and Rabobank) dominant:



Credit Quality The portfolio is diversified from a rating perspective. Credit quality is diversified and is

predominately invested amongst the investment grade ADIs (BBB- or higher), with a smaller

allocation to unrated ADIs.

“Grandfathered” legacy assets have now all matured, with only residual distributions on the Lehman

Property Note to come.

There is still high capacity to invest across the investment grade counterparties.

All of these are well within Policy limits.

From time to time, broker specials continue to be offered with some BBB rated and unrated Credit

Unions paying an additional premium of up to 10bp above leading direct rates – now may be an

opportunity to allocate further investments in the BBB and unrated space. This is covered in the

daily emails and our advice at the time of investment.



Compliance We have tested the portfolio provided against Council’s current investment policy and report the

following:

Individual counterparty exposures comply with the Policy.

Subsidiaries such as Rural Bank are grouped in the exposures of the parent (Bendigo-Adelaide Bank,

rated A-).

From May 2015, new Rabobank Australia deposits will not be guaranteed by the global group, but

existing deposits will have their guarantee grandfathered.



Returns - Accrual

The investment portfolio had a strong month, returning an excellent +3.91% p.a. annualised,

outperforming the AusBond Bank Bill Index1, which returned +3.00% p.a. We expect the Bank Bill

Index to drop below 2.5% from March.

The portfolio’s performance continues to be anchored by the longer-dated deposits invested well

above 4%. FRNs and bonds, purchased at attractive margins have also contributed positively to

overall performance.

The Macquarie Fund returned 0.21% for the month, with annualised return of 2.54% p.a. Despite a

year relatively mild year, it has performed strongly over longer-term periods (2 years at +5.07% p.a.).

Cash continues to be a slight drag on performance with the RBA recommencing its easing cycle. This

has been slightly mitigated through the switch into higher yielding accounts (requiring notice in

return for the additional yield – they are not a substitute for at-call money).

1 Previously UBS Bank Bill Index - the sale of the UBS index to Bloomberg, and subsequent change of names, is

now effective.



Term Deposits At month-end, deposits accounted for approximately 76% of the total investment portfolio. The

weighted average duration of the deposit portfolio stood at approximately 1.9 years - having been

significantly lengthened since the appointment of CPG as its investment advisor.

This has produced a measurable uplift in yield (circled) at a time when deposit rates have plunged. It

will provide strong protection to Council’s budgeted income over FY15, which we will be looking to

support over the next 12 months. A return around 4% is now higher than the highest 5 year deposit

available today. It is inevitable that returns will ease from here, and this will accelerate following

the RBA’s latest interest rate cut in February.

As margins on long deposit rates start to normalise over coming months, securities will again be

competitive for new money. Our recommendation is to maintain the programme of investing in

long-dated deposits, on the expectation that margins will contract up to ½% as deposit rates move

lower to match January’s record plunge in bond yields. We do note however that Council is currently

at capacity in medium-term (2-5 years) assets.

During January, Council invested into a number of short-dated deposits (6 months or less) to cover

some liquidity requirements in the new-year. Rates have since continued to fall across the board – a

trend we expect to continue given the RBA’s decision to restart its easing cycle.



Term Deposit Statistics

Credit Quality of Deposits

^ Calculation excludes the Financial Claims Scheme (FCS)

Despite the Official Cash Rate at a historic low of 2¼%, money markets are still factoring one more

cut later this year. There continue to be opportunities to lock-in some high return deposits ahead of

anticipated falls - we expect deposits will reprice aggressively within days or weeks.

At the time of writing, the premium for 1-2 year term deposits is now around +100bp over the

prevailing swap rate, and closer to +80 out to 9 months. A handful of deposit margins at the long end

appear as much as 40bp out of line with what applied in late 2014, with bond and swap rates falling

sharply on economic weakness and falling energy prices.

Some above market rates (“specials”) are offered by the unrated ADIs through broker

intermediaries. Rabobank is competitive despite a higher rating, but typically the highest rates are

now seen from the BBB or unrated banks.

As deposit margins start to normalise and contract over coming months, a transition to bank FRNs,

taking up capacity, can complement deposits given the high allocation to fixed rates currently. It may

be appropriate over the course of 2015 to direct some of the longer-term maturity capacity into

liquid securities (see Bond and FRN section).

We note however that Council is now at capacity limits in medium-term assets (2-5 years).



Fixed Bonds & FRNs During the month, Council did not invest into any of newly issued bank FRNs.

With around 2.5 years to maturity, given longer-term bond yields have reached 12 month lows, at

the top of the trading range, we recommend some sale of the Heritage Bank bonds (“HBSHB”)

trading above $107.

Should there be a change of control (a buyout of Heritage Bank), there is a clause which indicates

that the issuer may redeem all (but not some) of the Heritage Bank Retail Bonds in whole before

their maturity date at par plus accrued interest.

Clients could therefore potentially lose out on any capital gains to date and premium paid.

A sale would crystallise a small gain to date as well as the $7.25 p.a. coupons since purchase – the

holding period return would be very high.

Credit Fund The Macquarie Global Income Opportunities Fund returned +0.21% in January, underperforming the

AusBond Bank Bill Index return of +0.25% (a one-off spike in the index from the effect of the cut in

the Official Rate, and unlikely to recur from March).

Global investment grade credit weakened somewhat, with a combination of supply over recent

months from the banks coupled with weakness in energy and commodity names.

The Fund continues to hold a diverse range of securities across the global credit market. The

manager has maintained modest credit hedges, seeking to minimise the effect of volatility on the

Fund. The underlying portfolio continues to have no allocation to the higher beta sectors which has

insulated it from much of the volatility in credit markets and the weakness from high yield and

emerging markets, in particular the high yield energy sector.

Any spread contraction going forward allows credit and asset-backed holdings to enjoy significant

capital gains.

Macquarie has performed strongly over short and longer-term time periods compared to its peers

and the Fund continues to be well positioned going forward.

Given the solid running yield of the Fund at above 3½% p.a., and the additional liquidity it provides,

we recommend Council retain this Fund. (Its performance relative to index and to peers is covered in

our monthly Performance Survey).



Fixed Interest Market Background Mario Draghi announced his biggest push yet to fend off deflation (with the Eurozone CPI now at -

0.6%) and revive the economy by unleashing a debt-buying spree of €1.1 trillion in their quantitative

easing programme.

The ECB president and his Executive Board proposed spending €50 billion a month through

December 2016. Draghi's intention is to expand the ECB's balance sheet to the level seen in early

2012, or about €3 trillion – reversing the credit contraction of his predecessor. The ECB has assets of

about €2.2 trillion currently, shrinking to €2 trillion as outstanding long-term loans mature in coming

weeks.

The Aussie dollar recently sank to around US77¢, below US80¢ for the first time in 5½ years after the

ECB surprised with the scale of its QE. European sharemarkets set multi-year highs and bond yields

historical lows, with US and Australian bond yields tracking them lower.

Iron ore retreated to the lowest level in more than five years as a perceived slowdown in China

(particularly in steel-intensive construction and bulk infrastructure) hit the outlook for demand in

the world's biggest user. The largest mining companies are still adding to supply, much as OPEC is

refusing to adjust oil production.

The futures market had moved to price in two rate cuts by the end of this year. With falling inflation,

contracting national incomes, benign growth, coupled with further sharp falls in commodity prices

and continued weakness in consumer sentiment, the market strongly suggested this would be

enough to prompt the RBA to use some of their remaining policy “scope” and lower rates further.

Contrary to recent policy announcements and speeches talking about a “period of stability” the RBA

reluctantly delivered a cut in February to justify the market’s outlook:



Source: SFE / ASX

We encourage further purchases of longer deposits (should capacity allow) ahead of further cuts,

as the outlook for deposit rate levels moves to an even lower level.

Bond yields set all-time record lows – at all durations.

Lehman Property Note The most recent distribution was in November 2014.



Portfolio Listing



Disclaimer The information provided in this document is intended for clients of CPG Research & Advisory only and does not constitute

a recommendation or an offer to invest. Market sections of this document are descriptive and do not take into account the

investment objectives, financial situation or particular needs of any particular investor. Before making an investment

decision or acting on any of the information or recommendations contained in this report, the investor should consider

whether such recommendation is appropriate given the investor’s particular investment needs, objectives and financial

circumstances. We recommend you consult your CPG adviser for updated advice that addresses your specific needs and

situation before making investment decisions.

All information and recommendations expressed herein constitute judgements as of the date of this report and may

change without notice. Staff and associates may hold positions in the investments discussed, and these could change

without notice.


temporary storage (shipping) container on public land

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