Agenda of Elected Members' Briefing Session

Agenda

Good evening Councillors, staff, ladies and gentlemen, we wish to acknowledge the traditional custodians of the land we are meeting on, the Whadjuk people. We would like to pay respect to the Elders of the Nyoongar nation, past and present, who have walked and cared for the land and we acknowledge and respect their continuing culture and the contributions made to the life of this city and this region and I invite you to bow your head in prayer:

Lord, We ask for your blessing upon our City, our community and our Council. Guide us in our decision making to act fairly, without fear or favour and with compassion, integrity and honesty. May we show true leadership, be inclusive of all, and guide the City of Wanneroo to a prosperous future that all may share. We ask this in your name. Amen

Item 1 Attendances

Item 2 Apologies and Leave of Absence

Item 3 Reports

Declarations of Interest by Elected Members, including the nature and extent of the interest. Declaration of Interest forms to be completed and handed to the Chief Executive Officer.

Planning & Sustainability

Approval Services

3.1 Amendment No.154 to District Planning Scheme No.2 - Lot 311 Niche Parade, Wangara - Proposed Additional Use

File Ref: 23786 – 17/246652

Responsible Officer: Director Planning and Sustainability

Disclosure of Interest: Nil

Attachments: 4

Issue

To consider an amendment to District Planning Scheme No. 2 (DPS 2) by including the use class Drive-Through Food Outlet as an Additional Use on Lot 311 (1) Niche Parade, Wangara (the subject land).

Applicant	Steve Pandevski
Owner	Samsara Developments Pty/Ltd
Location	Lot 311 (1) Niche Parade, Wangara
Site Area	7,162m²
MRS Zoning	Industrial
DPS 2 Zoning	General Industrial

Background

On 7 June 2017, Steve Pandevski on behalf of the landowners Samsara Developments Pty Ltd lodged Amendment No. 154 to DPS 2 for the City’s consideration to include the use class Drive-Through Food Outlet as an Additional Use on the subject land as it is a Not Permitted ‘X’ use in General Industrial zone.

Detail

Site

The subject land is located at the south-eastern corner of Ocean Reef Road and Niche Parade and adjoins a developed lot and a number of vacant lots to the south, which are currently owned by the owner of the subject land.

In May 2015, the City had granted planning approval to commence development of a Service Station, Convenience Store, Lunch Bar and Motor Vehicles Repairs on the subject land (DA2015/591). Under the provisions of DPS 2, in the General Industrial Zone the use class Motor Vehicles Repairs is a Permissible ‘P’ use and the remainder Discretionary ‘D’ use. To date, only the Service Station has been developed and it is in operation 24 hours a day. Attachment 1 is the site plan.

The Proposal

The use class Drive-Through Food Outlet is defined as follows:

“A take-away food outlet which includes the sale and serving of food direct to persons driving or seated in motor vehicles. The term may or may not include the preparation of food for sale and consumption within the building or portion thereof.”

Being a Not Permitted ‘X’ use in General Industrial Zone, the applicant has proposed to amend DPS 2 to include the subject land use as an Additional Use with a net lettable area (NLA) of 300m². Hence it is proposed to modify Schedule 2 – Section 1 (Clause 3.20) Additional Uses of DPS 2 as follows and to amend the scheme map accordingly.

No		Street/Locality	Particulars of Land	Additional Use and Conditions (where applicable)
A36	1-36	1 Niche Parade, Wangara	Lot 311	Drive-Through Food Outlet limited to a maximum net lettable area of 300m²

Attachment 2 contains an extract of DPS 2 map depicting the current and proposed zoning of the subject land.

Attachment 3 contains the indicative concept plan of the site depicting the location of the proposed additional land use. Although the concept plan depicts an NLA of 250m² for the additional land use, the applicant has advised that the proposed NLA of 300m² will provide flexibility in the design and development of the land use.

The applicant’s justification for the proposal is summarised as follows:

1. The proposed 300m² NLA in comparison with the lot area of 7,162m² is negligible and insignificant and therefore will not result in a significant loss of industrial land; and

2. The proposed use is considered not to fall under the term sensitive land use in much the same way that a lunch bar is a discretionary land use in General Industrial zone is not a sensitive land use.

Consultation

The proposed amendment is considered as “complex” in accordance with Regulation 34 of the Planning and Development (Local Planning Schemes) Regulations 2015 (Regulations) for the following reason:

· No Local Planning Strategy has been endorsed by the WAPC to support the amendment.

Under the provisions of the Regulations, prior to advertising a complex amendment, it is required to be referred to the WAPC for its consideration. The amendment will also need to be referred to the Environmental Protection Authority (EPA) to assess the environmental impacts of the proposal and to determine whether any formal environmental assessment is necessary.

Subject to the approval of the WAPC and the EPA, the complex amendment must be advertised for public comment for a period of 60 days. Advertising is to occur in the following manner consistent with the requirements of the Regulations by way of:

· Advertisement in a local newspaper for one week;

· Placement of an on-site sign giving notice of the proposal;

· Display notice of the proposal at Council offices and on the City’s website; and

· Writing to the affected and adjoining businesses.

Comment

Loss of Industrial land

The total area of the site is 7,162m². The applicant has advised that in comparison with the lot area, the proposed 300m² NLA would not amount to any significant loss of industrial land in Wangara as it only constitutes 4.2% of the site area.

Attachment 4 is the site plan as approved under DA2015/591. This plan depicts the footprint of the proposed additional land use, which did not form part of the approval. Given that a planning approval was granted to develop the majority of the subject site to accommodate a Service Station, Convenience Store, Lunch Bar and Motor Vehicles Repairs, it is considered that the subject proposal is unlikely to contribute towards any significant loss of industrial land in Wangara.

Clientele

The applicant has advised that the proposed additional use will predominantly serve the Industrial employment catchment area. The applicant has advised that the proposed Drive-Through Food Outlet is intended to operate 24-hours a day. Considering the operating hours, and the site being located on Ocean Reef Road, which is an Other Regional Road in the Metropolitan Region Scheme currently carrying a traffic volume of about 30,000 vehicles per day (vpd), it is reasonable to conclude that the Drive-Through Food Outlet would predominantly serve the passing trade in addition to the surrounding catchment. However, co-locating a Drive-Through Food Outlet along with the Service Station is considered to be acceptable.

Traffic

Niche Parade is a 20-metre wide road reserve with a 10-metre wide carriage way. Where it abuts the subject lot, the road reserve width is 25 metres with a 14-metre wide carriageway accommodating a right-turn slip lane.

The City, to date, has not taken a traffic count on this road. The Traffic Impact Assessment (TIS) submitted by the applicant indicates that the current volume of traffic on Niche Parade is about 2,000 vehicles per day (vpd), which includes 1,300 vehicle trips per day generated by the Service Station.

The TIS states that the proposed development is expected to generate a traffic volume of 1,700 vpd and the possible future development of the vacant lots on Niche Parade is expected to generate 1,000 vpd. Therefore on the whole, Niche Parade will carry an estimated traffic volume of 4,700 vpd.

Niche Parade is an Industrial Road. The City’s Transport and Traffic section has advised that a 10-metre wide industrial road should be able to accommodate a traffic volume of 7,000 vpd.

Sensitive Land Use

DPS 2 defines sensitive use as follows:

Any use in which people involved in that use may have reason to object to, noise, dust, odour and other impacts which may arise from rural resources operations and includes, but is not limited to, residential, hospitals, schools, shops and all public establishment where food and drink is consumed.

Although the above definition relates to noise etc. from a rural resource operation, on a similar vein, it is considered that by allowing the proposed additional use, concerns may be raised by those involved in that use about developments such as Industry-Hazardous land use on the adjoining vacant lots.

Currently the developed lots in the vicinity of the subject land contain uses such as Warehouse and Industry-light. While Warehouse is used for storage purposes and Industry-light is to be used for purposes as per the DPS 2 definition that ‘will not adversely affect the amenity of the locality by reason of the emission or light, noise, fumes, smell or smoke’, those who are involved in the use of Drive-Through Food Outlet, may not be concerned by the operation of Warehouse or Industry-light on the abutting vacant lots. In the event of City receiving a development application for a proposed Industry-Hazardous use on any of the adjoining vacant lots, it can be considered on its merits.

DPS 2 Objective

Clause 3.11.3 of DPS 2 states that non-industrial development is not favoured in the General Industrial Zone. Given the use of the subject site for industrial use is limited in view of the existing use on site and other approved uses, allowing the subject additional use is not considered to adversely impact on the General Industrial Zone.

Statutory Compliance

The scheme amendment will follow the statutory process outlined in the Planning and Development (Local Planning Schemes) Regulations 2015.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“2 Economy

2.1 Local Jobs

2.1.1 Develop strong economic hubs locally and near transport”

Risk Management Considerations

There are no existing Strategic or Corporate risks within the City's existing risk registers which relate to the issues contained in this report.

Policy Implications

Nil

Financial Implications

Nil

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. Pursuant to Section 75 of Planning and Development Act 2005 ADOPTS Amendment No. 154 to City of Wanneroo District Planning Scheme No. 2 (the amendment) by modifying Schedule 2 – Section 1 (Clause 3.20) – Additional Uses by including the following entry and modifying the scheme map as shown in Attachment 2:

No.		Street/Locality	Particulars of Land	Additional Use and Conditions (where applicable)
A36	1-36	1 Niche Parade, Wangara	Lot 311	Drive-Through Food Outlet limited to a maximum net lettable area of 300m²

2. Pursuant to Regulation 35(2) of the Planning and Development (Local Planning Schemes) Regulations 2015 (the Regulations), RESOLVES that the amendment is a Complex Amendment for the following reason:

· No Local Planning Strategy has been endorsed by the Western Australian Planning Commission to support the amendment;

3. Pursuant to Regulation 37(2) of the Regulations, SUBMITS two (2) copies of the amendment document to the Western Australian Planning Commission for its consideration;

4. Pursuant to Section 81 of the Planning and Development Act 2005 REFERS the amendment to the Environmental Protection Authority (EPA); and

5. Subject to approval from EPA and the WAPC, ADVERTISES the amendment for a period of 60 days.

Attachments:

1 ⇩.	Attachment 1 - 154	17/246502
2 ⇩.	Attachment 2 - 154	17/291522	Minuted
3 ⇩.	Attachment 3 - 154	17/247049
4 ⇩.	Attachment 4 - 154	17/272478

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 11

3.2 Retrospective Development Application for an increase in Fill and Retaining Walls at 4 Nott Place, Yanchep

File Ref: DA2017/666 – 17/266491

Responsible Officer: Director Planning and Sustainability

Disclosure of Interest: Nil

Attachments: 7

Issue

To consider an application for retrospective development approval for retaining walls and fill at Lot 337 (4) Nott Place, Yanchep.

Applicant	Mr Phillip Murrin
Owner	Mr Phillip Murrin and Jennifer Murrin
Location	Lot (337) 4 Nott Place, Yanchep
Site Area	810m²
DPS 2 Zoning	Residential R20

Background

Lot 337 (4) Nott Place, Yanchep (subject property) is situated where indicated on the plan included as Attachment 1. The subject property is zoned Residential under the City’s District Planning Scheme No. 2 (DPS 2).

It is noted that a retrospective development application incurs a fee of three times that of a standard development application. This increased fee is considered to encompass the processing fee of the development application and a penalty for developing without the required approvals first being obtained from the City.

Current Development on the Subject Property

The subject property is a vacant lot with substantial retaining and fill located on-site. At the time of writing, it is noted that there is several soak wells, a trailer and a temporary site office located towards the rear boundary of the property. The soil behind the front retaining walls has been excavated to accommodate the soak wells and septics system (refer to Attachment 2).

Consideration of Past Development Applications

In 2015, Administration received two development applications for works to occur on the subject property. Administration considered both those development applications under delegated authority and has approved the following works:

· DA2015/248 approved a top of wall height for the retaining walls at the southern (front) boundary of 18.70 (Australian Height Datum) AHD height, western boundary of 19.20AHD, eastern boundary of 18.70AHD and the northern (rear) boundary of 19.20AHD.

· DA2015/1349 granted retrospective approval for the top of wall height for the retaining walls at the northern (rear) boundary of 20.70AHD and formwork around a pool area.

The applicant also lodged a building permit for a two storey dwelling at the subject property following the determination of the development applications. The building permit lodged was inconsistent with the approved DA2015/1349. The applicant appealed the determination of

DA2015/1349 arguing that the approval permitted fill at the site of 19.20AHD. The State Administrative Tribunal (SAT) refused to allow the application to be reviewed as the time permitting such a review had expired. However, the SAT stated that the applicant could make a further application for the southern (front) and eastern retaining walls, and fill to 19.20AHD as provided in the subject application.

Detail

On 26 May 2017, Administration received an application for retrospective development approval for:

· The retaining wall on the eastern side boundary of the subject property to 19.20AHD;

· A retaining wall within the southern (front) setback area of the subject property to 19.20AHD; and

· Fill placed on the subject land to a height 19.20AHD.

The plans lodged by the applicant in respect to this application are included as Attachment 3. The applicant stated that he is prepared to lower the height of fill from 19.20AHD throughout the site to 19.10AHD for the eastern and southern retaining walls, finished ground levels to 19.00AHD and the slab to 19.10AHD, noting that the ‘slab level’ only indicates retaining and fill (that is, no slab is indicated on the plans). The applicant was also able to confirm that they would not be seeking approval for the fencing shown on the plan. The applicant also stated that the driveway gradient and sightlines should not be considered as part of this application. The applicant’s desire to lower the ground levels and retaining walls has not been reflected in the submitted plans, the plans forwarded by the City to the adjoining neighbours for comments or the applicant’s submission.

Consultation

Public consultation was undertaken for a period of 21 days from 26 June 2017 to 17 July 2017 by way of a letter to landowners and occupiers of eight land parcels adjoining and opposite the subject property.

The letter invited landowners/occupiers to comment on the application for retrospective development approval before the City.

At the conclusion of the comment period five submissions were received, all objecting to the proposal. A summary of submissions received and Administration’s responses are shown in Attachment 4.

The main issues raised during the advertising period and following detailed assessment by Administration relate to:

· Streetscape appearance; and

· Access to sunlight.

Comment

In assessing the proposal, Administration has identified the following key aspects as discussed below.

Assessment against the Residential Design Codes (R-Codes)

In accordance with Part 2 of the R-Codes, if a proposal does not meet the 'deemed-to-comply' provisions, the City is to exercise its judgement to consider the merits of the proposal having regard to the relevant 'design principles'. As the retrospective application for retaining

walls and fill does not meet the 'deemed-to-comply' requirements of clauses 5.3.7 and 5.3.8 of the R-Codes in respect to the fill to 19.20AHD and the southern and eastern retaining walls, it has been assessed against the corresponding 'design principles’.

Administration’s assessment of the development against the corresponding design principles is provided below:

Design Principles – Clause

Administration Comments

Clause 5.3.7 P7.1

Development that considers and responds to the natural features of the site and requires minimal excavation/fill.

The development does not consider the natural features of the site and requires excessive fill throughout most of the subject property.

Clause 5.3.7 P7.2

Where excavation/fill is necessary, all finished levels respecting the natural ground level at the lot boundary of the site and as viewed from the street.

The southern (front) retaining wall has a height of between 1.325m (near vehicle access) and 1.610m (south western boundary) across the front boundary. When viewed from the street, the impact of the retaining wall to the streetscape is increased as the verge slopes down towards the street. Therefore the development does not respect the natural ground levels when viewed from the street.

Clause 5.3.8 P8

Retaining walls that result in land which can be effectively used for the benefit of residents and do not detrimentally affect adjoining properties and are designed, engineered and landscaped having due regard to clauses 5.3.7 and 5.4.1.

Whilst, the applicant has not demonstrated through a single house development application that the retained areas will benefit residents, the applicant has both a septic tank and swimming pool formwork approval. The increase in fill on the site from 18.70AHD to 19.20AHD is in additional 0.5m AHD and will not change the impact on privacy. Privacy or sunlight to adjoining properties is prevented by the existing masonry fence to the northern, western and eastern boundaries. It is noted however, there is a detrimental impact in terms of streetscape amenity given the height of the above-mentioned southern (front) retaining wall.

The applicant has provided a copy of their submission as justification against the criteria in Attachment 5. A summary of the submission with Administration’s response is included in Attachment 6.

Assessment against Local Planning Policy 2.4 (LPP 2.4)

Local Planning Policy 2.4: Site Works and Retaining for Residential Development (LPP 2.4) states that (development applications or building permit) for site works (fill) or retaining should be made concurrently with an application for dwellings on a site. LPP 2.4 also states that an application to alter site levels for retaining walls prior to an application for dwellings being made will not be supported by the City. The circumstances of this proposal are complicated however by an approval that has been granted by the City’s Health Services for the installation of an apparatus for the treatment of sewage, in accordance with the Health (Treatment of Sewage & Disposal of Effluent & Liquid Waste) Regulations 1974 and with structural, hydraulic & geotechnical engineers design specifications & certifications. A footnote to the approval states that the approval should not be construed as support for any other related (actual or future) development on the land.

Administration considers the site survey provided in 2015 (Attachment 7) and submitted in DA2015/248 is an accurate measure to determine the natural ground levels (NGL) across the site. The levels show the highest natural ground level at the north eastern corner at 19.34AHD and the lowest at 17.65AHD at the south-western boundary. LPP 2.4 specifies that in order to meet the design principles of clause 5.3.7 (P7.1 & 7.2) there should be equal amounts of cut and fill to establish finished ground levels. LPP 2.4 also specifies that fill and/or retaining to the highest level of a site is not appropriate. The middle of the site has a natural ground level of 18.32AHD indicating a steep natural rise to the rear western boundary of the property. Administration has undertaken an assessment of the NGL’s across the site in accordance with Figure 2a of LPP 2.4. Figure 2a specifies that the calculation of the average natural ground level is taken from five natural ground levels which occur at lot boundaries and the centre of the lot. The average NGL is calculated using the survey previously provided (Attachment 7) and calculated to be 18.41AHD. LPP 2.4 states that the building pad should then be established at a level no more than 0.3 metres above the average NGL of the site as calculated, resulting in 18.71AHD being the maximum appropriate building pad height level.

In addition to the deemed-to-comply requirements of clause 5.3.7 (C7.1) of the R-Codes, LPP 2.4 specifies that the proposal would require:

a) The first terrace level if located within 1.0 metre of the front boundary should not exceed 0.5 metres in height; and

b) Subsequent terraces should be spaced a minimum of 1.0 metre apart, and retaining wall height for terracing should not exceed 1.0 metre.

If the applicant were to adhere to this policy provision it would require alterations to the southern (front) and eastern retaining walls. The approved location of the septic tanks located in the front setback may also need to be relocated or repositioned in the ground. Whilst the formwork of the pool has not been approved at a specific level, it is reasonable to assume the formwork of the pool is approved at a level of 18.70AHD which is the approved height of the retaining wall at the eastern boundary.

As outlined in LPP 2.4, filling or retaining to the highest level should not be supported in the absence of an application for a dwelling. Whilst the proposal has been considered in this instance, the fill is up to 19.20AHD which is at the higher natural levels existing on the site, and an equal amount of cut and fill has not been apportioned. The City’s LPP 2.4 calculates an average natural ground level across the site as being 18.41AHD and allows an additional 0.3m to suit any pad level. The proposed 19.20 AHD is inconsistent with the level considered suitable as calculated by LPP 2.4. Further LPP 2.4 compliments the provisions specified in the R-Codes and the proposed level of up to 19.20AHD is inconsistent with the level specified in the policy.

The fill and retaining walls are not considered to have a significant detrimental impact to adjoining owners in preventing access to sunlight, due to the orientation of the lots. The neighbours comments that the front setback area and streetscape does not look appealing is considered particularly relevant. When viewed from the street the retaining walls will create a flat block at a significantly higher level than the street, which could also permit a solid fence of up to 1.2m on top of the front retaining wall. In addition, the retaining walls should be terraced as per the specifications of LPP 2.4 which would better reflect the natural ground levels of the site. The retaining walls and fill are considered appropriate at the approved height of 18.70AHD.

Conclusion

In light of the above, Administration is recommending that Council refuse to grant approval of the application for retrospective development approval.

In respect to any non-compliance on the subject property following Council’s determination of this application; Administration can commence compliance proceedings against landowners pursuant to the City’s Local Planning Policy 4.14: Planning Compliance.

Statutory Compliance

This application has been assessed in accordance with the City of Wanneroo’s District Planning Scheme No. 2.

Pursuant to Part 8.3(b) of the City’s Delegated Authority Register, the application may be considered under delegation if, it is the view of the Director, Planning and Sustainability, that the objections do not raise relevant planning considerations that cannot be specifically addressed or overcome by modifications to the proposal, or imposition of appropriate conditions of approval.

In this instance, Administration is of the opinion that the objection raises relevant planning considerations in relation to the fill and retaining walls. Therefore, the application cannot be considered under delegated authority and must be determined by Council.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“3 Environment (Built)

3.4 Activated Places

3.4.4 Improve local amenity by retaining and complementing natural landscapes within the built environmental”

Risk Management Considerations

There are no existing Strategic or Corporate risks within the City's existing risk registers which relate to the issues contained in this report.

Policy Implications

The proposed development has been assessed against the provisions of the State Planning Policy 3.1 – Residential Design Codes (R-Codes) as well as the City’s Local Planning Policy 2.4 Site Works and Retaining for Residential Development (LPP 2.4).

Financial Implications

Should compliance proceedings against the landowner require to be initiated following Council’s decision on this development application, costs in undertaking such further proceedings would be dependent on the landowner’s further actions arising there from.

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. Pursuant to Clause 68(2)(c) of the Deemed Provisions of District Planning Scheme No. 2, REFUSES to grant approval of the application for retrospective development approval for fill and retaining at Lot 337 (4) Nott Place, Yanchep as shown in Attachment 3 for the following reasons:

a) The development is inconsistent with the City’s Local Planning Policy 2.4: Site Works and Retaining for Residential Development and the relevant sections of State Planning Policy 3.1 The Residential Design Codes;

b) The proposal does not complement the natural topography of the surrounding land;

c) The retaining walls and associated fill adversely impacts on streetscape amenity.

2. ENDORSES Administration’s responses to the submissions as provided for in Attachment 4;

3. NOTES that Administration will pursuant to the City’s Local Planning Policy 4.14 Compliance, commence actions against the landowners of Lot 337 (4) Nott Place, Yanchep necessary to bring this property into compliance with District Planning Scheme No. 2; and

4. ADVISES the applicant and the submitters of this decision.

Attachments:

1 ⇩.	Attachment 1 - 4 Nott Place, Yanchep	17/311244
2 ⇩.	Attachment 2 - Site Photo's- 4 Nott Place, Yanchep	17/325691
3 ⇩.	Attachment 3 - Subject Plans - 4 Nott Place, Yanchep	17/292942	Minuted
4 ⇩.	Attachment 4 - Summary of Submissions - 4 Nott Place, Yanchep	17/317006	Minuted
5 ⇩.	Attachment 5 - Martin Dickie Submission - 4 Nott Place, Yanchep	17/292954
6 ⇩.	Attachment 6 - 4 Nott Place, Yanchep	17/317004
7 ⇩.	Attachment 7 - Site Survey - 4 Nott Place, Yanchep	17/292962

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 35

Assets

Asset Operations & Services

3.3 Highclere Boulevard and Hepburn Avenue Intersection Upgrade

File Ref: 3120V03 – 17/206774

Responsible Officer: Director Assets

Disclosure of Interest: Nil

Attachments: 3

Issue

To consider the detailed design and cost estimate for constructing a roundabout at the intersection of Highclere Boulevard and Hepburn Avenue, Marangaroo. Attachment 1; shows a locality plan of the area.

Background

Council, at its meeting of 24 May 2016, considered Item No AS06-05/16 on safety improvements at the intersection of Highclere Boulevard and Hepburn Avenue and resolved as following:

“That Council:

1. DOES NOT ENDORSE the proposed Intersection Modifications - Option B, for the intersection of Highclere Boulevard and Hepburn Avenue, Marangaroo as shown in City Drawing No.’s 3252-3-0;

2. REQUESTS administration to undertake a detailed design and prepare cost estimate for the proposed Intersection Modifications - Option C, for the intersection of Highclere Boulevard and Hepburn Avenue, Marangaroo as shown in City Drawing No.’s 3252-1-0 and SEEKS a further report by December 2016; and

3. LISTS $25,000 for the detailed design of the Intersection Modification for the intersection of Highclere Boulevard and Hepburn Avenue, Marangaroo in 2016/17 Capital Works Program”

Following Council’s resolutions, $25,000 was listed in the City’s 2016/2017 Capital Works Program for undertaking a detailed design of the modification of the intersection of Highclere Boulevard and Hepburn Avenue, however due to Western Power delay in providing a quote to the City, the report could not be presented to Council earlier.

Detail

The Highclere Boulevard and Hepburn Avenue intersection is currently constructed as a standard T-intersection with a seagull island in the median of Hepburn Avenue. The area around this intersection is predominantly residential with a small market garden abutting the northern side of Hepburn Avenue. This intersection was substantially modified in June 2012 to facilitate a dual carriageway on Hepburn Avenue which is now a dual carriageway ‘District Distributor A’ road with two lanes in each direction running east-west, carrying approximately 26,000 vehicles per day and operating with the posted speed limit of 70km/h. Highclere Boulevard is a ‘Local Distributor’ road in the City’s Functional Road Hierarchy and is constructed as a dual carriageway with one lane in each direction, carrying approximately 8,800 vehicles per day and operating under the default Built Up Area speed limit of 50 km/h.

In line with Council Resolution 2 above, Administration has undertaken a detailed design and prepared a cost estimate for the proposed intersection modifications - Option C, construction of a roundabout. Refer Attachment 2, Drawing No 3252-16-A. While Austroads design guidelines recommends using a circular central island in a roundabout to manage the speed through the roundabout, this could not be achieved in this instance due to constraints in the road reserve width. An elliptical shaped central island has therefore been considered for the roundabout design similar to the roundabout constructed by MRWA at the intersection of Marmion Avenue and Mullaloo Drive as shown in Attachment 3.

Considering the non-standard shape of the roundabout, a third party independent road safety audit has been undertaken to review the safety aspects of the detailed design, and the recommendations of the audit have been incorporated as part of finalising the design. The estimated cost for the construction of the designed roundabout is $1.2M. Based on this cost estimate, Administration undertook a Benefit Cost Ratio (BCR); analysis utilising Main Roads crash data based on the previous five year period ie. 2012 to 2016. The BCR analysis produced a result of 0.68, i.e. for the cost of $1 the benefit received will be $0.68. The layout of this intersection was modified in June 2012 as part of the dual carriageway construction on Hepburn Avenue. Therefore the first six months of this data does not apply to the current intersection layout.

Consultation

Consultation with relevant internal and external stakeholders including Western Power has been conducted in developing the roundabout design. No community consultation has been at this stage in preparing this report. If Council resolves to proceed with the project, the adjacent affected residents and businesses will be informed about the decision prior to the project delivery which will be subject to allocation of funding in the Long Term Capital Works Program.

Comment

Council has considered two alternative options in the previous report to improve the safety at this intersection that were not accepted:

· Option A closed off the right hand turn from Highclere Boulevard into Hepburn Avenue (estimated cost - $80,000 and BCR of 5.29). However, this option reduced the functionality of the intersection.

· Option B was to move the right turn slip lane in Hepburn Avenue south, further into the median to improve the sight lines for traffic turning right from Highclere Boulevard on to Hepburn Avenue (estimated cost - $190,000 and BCR of 0.47). This BCR is less than Option C installation of a roundabout treatment with a BCR of 0.68.

Although the BCR for the roundabout treatment is unlikely to secure Black Spot Funding as a routine application, this project can be submitted for funding in accordance with the Road Safety Audit (RSA) Stream for funding in the 2019/20 Black Spot Funding round. In November 2015, the City engaged consulting engineers Cardno to perform a Traffic Analysis and Feasibility Study for the intersection of Highclere Boulevard and Hepburn Avenue. Although this report is not strictly a RSA it addresses both the effect on traffic flow and the safety aspects of the existing intersection and the proposed treatment options. The probability of a successful funding application for this project is estimated as low to medium and depending on the other application submitted may be successful in receiving funding.

The construction of a roundabout at the intersection of Highclere Boulevard and Hepburn Avenue will result in three roundabouts on Hepburn Avenue within a distance of one kilometre and will impact the Level of Service for through traffic on Hepburn Avenue. The distance between each of these three intersections is approximately 405metres. Although this is closer than desirable for consecutive roundabouts on a District Distributor road, the impact on the level of service for through traffic should not be significant while the level of service for Highclere Boulevard will improve significantly.

While constructing a roundabout at the Highclere Boulevard and Hepburn Avenue intersection is considered a high cost ($1,200,000) with low BCR (0.68) option, this remains the most suitable option for improving safety at the intersection. It is expected to address the greatest number of crash types, and giving the best overall level of service for traffic movements through this intersection.

Statutory Compliance

Nil

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“3 Environment (Built)

3.5 Connected and Accessible City

3.5.1 Deliver local transport infrastructure including roads, footpaths and cycle ways to improve accessibility”

Risk Management Considerations

There are no existing Strategic or Corporate risks within the City's existing risk registers which relate to the issues contained in this report.

Policy Implications

Nil

Financial Implications

The cost to undertake works to construct a roundabout at Highclere Boulevard and Hepburn Avenue is estimated to be in the order of $1,200,000. The City will submit a Black Spot Funding application for 2019/20 on the basis of a Road Safety Audit Project. Depending on the outcome of the application, the City may be required to fund one third (being $400,000) to the full cost (being $1,200,000) of the project cost. It is noted that this project is not listed in the City’s Draft Long Term Capital Works Program.

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. RECEIVES the detailed design and NOTES cost estimate of $1,200,000 for the construction of a Roundabout at the intersection of Highclere Boulevard and Hepburn Avenue, Marangaroo as shown in the drawing No. 3252-16-A (Attachment 2);

2. REQUESTS Administration to submit a Road Safety Audit stream Blackspot funding application for 2019/20 for the construction of a roundabout at the intersection of Highclere Boulevard and Hepburn Avenue, Marangaroo; and

3. LISTS $1,200,000 for consideration in the Long Term Capital Works Program to construct a Roundabout at the intersection of Highclere Boulevard and Hepburn Avenue, Marangaroo noting that the project priority will be dependent on the outcome of the funding application noted in Item 2 above.

Attachments:

1 ⇩.	Highclere Boulevard and Hepburn Avenue Intersection Locality Plan.	17/280362
2 ⇩.	Hepburn Avenue Highclere Boulevard - Proposed Roundabout Drawing - 3252-16-A	17/280522	Minuted
3 ⇩.	Intersection of Marmion Avenue and Mullaloo Drive aerial photograph	17/207764

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 42

Assets Maintenance

3.4 Tender No. 17077 - Quinns Beach Long Term Coastal Management Works

File Ref: 24685 – 17/258379

Responsible Officer: Director Assets

Disclosure of Interest: Nil

Attachments: 1

Issue

To consider Tender No. 17077 for the Quinns Beach Long Term Coastal Management Works.

Background

The Quinns Rocks coastline has been subject to ongoing erosion over many years. The City has actively managed these erosion issues since 1996 via coastal engineering investigations, data collection, construction of coastal protective structures and ongoing coastal inspections and maintenance. Implementation of additional coastal management measures are required to address these issues in the longer term and reduce the risk of damage to public and private assets.

The Quinns Beach Long Term Coastal Management Study commenced in September 2014 with the appointment of coastal engineering consultant, Cardno and was completed and received by Council at its meeting on 4 April 2017, Item No AS02-04/17 refers, and resolved to:

“1. RECEIVES the Stage 3 Report and Detailed Design prepared by Cardno for the Quinns Beach Long Term Coastal Management Study;

2. APPROVES the following staging of Quinns Beach Long Term Coastal Management Works:

· 2017/18: Construction of Groyne 4, beach re-nourishment and construction of a beach access ramp;

· 2018/19: Extension of Groyne 2 and beach re-nourishment; and

· 2019/20: Extension of Groyne 3 and beach re-nourishment;

3. NOTES the funding submission submitted to the State Government in December 2016 for the Quinns Beach Long Term Coastal Management Works and REQUESTS the Mayor to write to the State Government seeking a response as a priority to enable delivery of the Project as per Resolution No. 2;

4. AUTHORISES Administration to prepare tender documentation and advertise for the construction of the Quinns Beach Long Term Coastal Management Works, staged over three years commencing 2017/18 including:

· 2017/18: Construction of Groyne 4, beach re-nourishment and construction of a beach access ramp;

· 2018/19: Extension of Groyne 2 and beach re-nourishment; and

· 2019/20: Extension of Groyne 3 and beach re-nourishment;

5. AUTHORISES Administration to prepare tender documentation and advertise for the design and construction of pedestrian beach access staircases south of Groyne 1 and at Waterland Point with construction works to be undertaken in 2017/18;

6. APPROVES the allocation of a further $1.8M in 2018/19 and $1.7M in 2019/20 from the Strategic Projects/Initiatives Reserve for Stages 2 and 3 of the Quinns Beach Long Term Coastal Management Works respectively; and

7. REQUESTS Administration to prepare Coastal Adaptation and Protection Grant Funding submissions to the Department of Transport for the Quinns Beach Long Term Coastal Management Works.”

The Quinns Beach Long Term Coastal Management Study has greatly increased the understanding of local sand transport along the Quinns Rocks coastline through the collection and analysis of local met-ocean data and the development of coastal numerical models. This technical investigation, along with a comprehensive community engagement programme, has enabled the selection of the most appropriate option to address the ongoing coastal erosion issues. The recommended option includes the extension of Groyne 2 (middle groyne) and Groyne 3 (northern groyne) and construction of a new groyne (Groyne 4). The extended and additional groynes will result in additional sand to be trapped within the coastal compartments created by the groynes as the sand moves along the coast, resulting in a wider beach and buffer against erosion events during winter storms. This option also allows the City to maintain the existing Quinns Beach carpark which will assist in meeting the future parking demands for this popular section of coast.

Coastal construction works will be staged over three years as follows:

· Construction Stage 1 (2017/18) – Construction of Groyne 4, Beach Re-nourishment (8,400 m³), Groyne 4 Beach Access Ramp and all associated works;

· Construction Stage 2 (2018/19) – Extension of Groyne 2 by 45m, Beach Re-nourishment (14,400 m³) and all associated works; and

· Construction Stage 3 (2019/20) – Extension of Groyne 3 by 15m, Beach Re-nourishment (10,800 m³) and all associated works.

This staged construction approach will enable construction works to be restricted to calm weather periods during the summer season, limit interruption to beach users and assist with budgeting requirements by allowing annual funding submissions to the State Government. It will also enable coastal monitoring to be undertaken between construction stages to assess the on-site impacts of each new or extended groyne structure prior to commencement of the subsequent construction stage.

This report considers the outcome of Tender No. 17077 for the Provision of Major Works for Quinns Beach Long Term Coastal Management Works.

Detail

Tender No. 17077 for the Provision of Major Works for Quinns Beach Long Term Coastal Management Works was advertised on 1 July 2017 and closed on Tuesday 8 August 2017. A copy of the Request for Tender document is available in the Elected Members Reading Room.

Five addenda were issued during the tender period relating to technical queries raised by tenderers prior to and during a non-mandatory contractor site meeting held on 1 August 2017.

Essential details of the proposed contract are as follows:

Item	Detail
Contract Form	Construction: Major (CoW amended AS4000-1997)
Contract Type	Lump Sum
Contract Duration	3 years
Commencement Date	1 November 2017
Practical Completion Dates	Construction Stage 1 (estimated) April 2018 Construction Stage 2 (estimated) April 2019 Construction Stage 3 (estimated) April 2020
Extension Permitted	No
Defects Liability	12 months from Practical Completion of each Construction Stage.

Tender submissions were received from the following:

· Neo Infrastructure Pty Ltd;

· WA Limestone and Italia Stone Group Joint Venture;

· Delta Civil (WA) Pty Ltd; and

· D. B. Cunningham Pty Ltd t/a Advanteering Civil Engineers.

Alternative tenders were also received from Neo Infrastructure Pty Ltd and WA Limestone and Italia Stone Group Joint Venture. Upon review of the alternative tenders by the City, Department of Transport and coastal engineering consultant, Cardno, these proposals were determined to be unacceptable from a coastal engineering design and maintenance perspective.

The Tender Evaluation Panel comprised:

· Manager Assets Maintenance, Assets Maintenance;

· Project Manager Coastal Projects, Assets Maintenance;

· Project Manager Infrastructure Projects, Infrastructure Capital Works; and

· Occupational Safety & Health Officer, People and Culture.

Oversight to the tender assessment process was undertaken by the City’s Contracts Officer.

Tender submissions were evaluated in accordance with the following selection criteria:

Item No	Description	Weighting
1	Price for Works	30%
2	Methodology	15%
3	Demonstrated Experience in Similar Works	35%
4	Safety Management	20%

Specific details are provided below under each selection criterion.

Evaluation Criteria 1 - Price for Works (30%)

Evaluation of this criterion was based on the total lump sum price of all three construction stages (Schedule 1 – Price Schedule) in conforming tender submissions. A summary of the pricing has been prepared, refer Attachment 1. The lump sum price ranking is summarised below:

Tenderer	Ranking
Delta Civil (WA)	1
Advanteering Civil Engineers	2
Neo Infrastructure	3
WA Limestone and Italia Stone Group Joint Venture	4

Evaluation Criteria 2 - Methodology (15%)

The tenderer’s understanding of the scope of works was assessed through the methodology provided in tender submissions. This included assessment of construction programme and methodology statements in relation to the main components of the works including clearing/earthworks, groyne construction, beach re-nourishment, beach access ramp construction and dune rehabilitation.

WA Limestone and Italia Stone Group Joint Venture provided a detailed construction methodology statement covering the main components of the works whilst identifying certain construction challenges. This provided a good indication of the tenderer’s understanding of the proposed scope of work. Their methodology along with the submitted detailed construction programme provides assurances that the scope of works could be undertaken as proposed and to a high standard.

Advanteering Civil Engineers and Delta Civil both provided detailed construction methodologies addressing the main components of the proposed scope of works. Certain details of Advanteering’s methodology appeared to be more suited to protected waters rather than an open coastal environment. Delta Civil’s methodology provided sufficient detail and understanding of the scope, however a detailed construction programme was not provided in their tender submission.

Neo Infrastructure provided a detailed construction methodology, however their submission indicated their unwillingness to conform to the groyne design and construction as detailed within the scope of works. Alternative methodologies were provided for substitute groyne construction, however no assurances were provided to confirm the suitability of either method.

The assessment of this criterion has resulted in the following ranking:

Tenderer	Ranking
WA Limestone and Italia Stone Group Joint Venture	1
Advanteering Civil Engineers	2
Delta Civil (WA)	2
Neo Infrastructure	4

Evaluation Criteria 3 - Demonstrated Experience in Similar Works (35%)

The tenderer’s relevant experience in recent similar works was assessed for both the company and nominated personnel for the project. This was based on assessment of staff CV’s, descriptions of recent relevant projects and company capability statements.

WA Limestone and Italia Stone Group Joint Venture provided examples of extensive experience in the construction of rock armoured coastal protection works throughout Western Australia. All examples of recent similar works are relevant to the proposed works and groynes similar in design to that proposed at Quinns Beach have been constructed successfully in an active coastal environment.

Neo Infrastructure’s submission provides examples of coastal protection construction projects. Although numerous examples of sandbag construction projects are detailed, rock armour construction experience is also demonstrated sufficiently. Neo Infrastructure demonstrated successful completion of a number of coastal protection works in active coastal environments and provided evidence of positive feedback from Clients.

Advanteering Civil Engineers submission demonstrated noteworthy marine construction experience. Relevant projects however were not undertaken in an exposed and active wave environment. Therefore, the difficulties that are likely to be encountered during construction at Quinns Beach due to wave action have not previously been experienced by Advanteering based on their tender submission.

Delta Civil has provided an indication of coastal construction experience through the involvement of two of their staff members in previous breakwater projects. It was unclear from their submission as to the extent and their involvement of those works. Their submission acknowledges that Delta Civil as a company have not had previous direct experience in the construction of groynes.

The assessment of this criterion has resulted in the following ranking:

Tenderer	Ranking
WA Limestone and Italia Stone Group Joint Venture	1
Neo Infrastructure	2
Advanteering Civil Engineers	3
Delta Civil (WA)	4

Evaluation Criteria 4 - Safety Management (20%)

Evidence of safety and quality management systems was assessed from the tender submissions. The assessment for safety management was based on the tenderers’ responses to an Occupational Health and Safety Management System Questionnaire and supporting documentation included within the tender documentation.

WA Limestone and Italia Stone Group Joint Venture, Neo Infrastructure and Delta Civil (WA) all scored equally under this evaluation criterion and provided details of very good safety management systems along with evidence of completed safety documentation and application on site during previous relevant projects.

Advanteering Civil Engineers also provided evidence of a very good safety management system, however example safety documentation were not directly applicable to high risk works in a coastal/open ocean environment and they were subsequently scored lower on this basis.

The assessment of this criterion has resulted in the following ranking:

Tenderer	Ranking
WA Limestone and Italia Stone Group Joint Venture	1
Neo Infrastructure	1
Delta Civil (WA)	1
Advanteering Civil Engineers	4

Overall Weighted Assessment and Ranking

Tenderer’s submissions were reviewed in accordance with the Tender Evaluation Plan with the following key observations:

· The key component of the tender evaluation is demonstrated experience (35%) and price (30%); and

· The tenderers’ bids were evaluated in accordance with the selection criteria and were assessed as having the necessary resources, previous experience, capability and safety and quality management systems to undertake the tender.

Tenderer	Ranking
WA Limestone and Italia Stone Group Joint Venture	1
Delta Civil (WA)	2
Neo Infrastructure	3
Advanteering Civil Engineers	4

The overall weighted assessment resulted in the following tenderer ranking:

Consultation

Community Engagement

The Quinns Rocks community was engaged via a comprehensive community consultation programme throughout the Quinns Beach Long Term Coastal Management Study. Community feedback was used in the assessment of coastal management options and selection of the recommended option.

The Quinns Beach Long Term Coastal Protection Community Reference Group continues to meet on a regular basis to discuss project milestones and provide community input into future plans for implementation of coastal management measures. The group will be updated with the outcome of the tender process at a future meeting after the tender award. The local community will also be advised of the construction program at each stage of the works by way of on-site signage and letters.

Department of Transport

The Department of Transport (DoT) has provided assistance throughout the Quinns Beach Long Term Coastal Management Project including comments on the consultancy scope of work, involvement in tender evaluation and clarifications, attendance at key meetings with the City and review of technical documentation. DoT has also provided data necessary for the Quinns Beach Long Term Coastal Management Study including hydrographic survey data and met-ocean data and financial assistance through the Coastal Adaptation and Protection (CAP) Grant programme described below.

Comment

The tender submission from WA Limestone and Italia Stone Group – Joint Venture achieved the highest overall ranked score in accordance with the assessment criteria and weightings as detailed in the Tender Evaluation Plan. The tender submission was therefore shortlisted for further consideration.

During the tender evaluation process, discussions between the City of Wanneroo, Department of Transport and coastal engineering consultant, Cardno, identified that minor changes to the groyne design could result in a simpler construction process, safer working environment and potential cost saving for the City. Following the initial shortlisting of a preferred tenderer, a workshop was then held on 28 August 2017 between the City, Department of Transport, Cardno and representatives from the shortlisted tenderer (WA Limestone and Italia Stone Group – Joint Venture) to determine whether the minor design changes would compromise the coastal engineering stability of the structure or long term maintenance requirements for the City. The minor change to the groyne design was agreed at the workshop and is as follows:

· Offshore section of all groynes: - replacement of geotextile at the groyne toe with the extension of secondary armour material beneath the primary armour; and

· Areas where limestone bedrock is found – primary armour is to be trenched into the existing limestone bedrock.

Updated groyne design drawings were then developed and provided to the shortlisted tenderer for their consideration of a revised pricing schedule and methodology statement based on the minor design modifications. The financial implications of this minor variation based on updated Price Schedules provided by the shortlisted tenderer, WA Limestone and Italia Stone Group Joint Venture are included in Attachment 1.

This minor design change is recommended to be adopted as a minor variation before entry into Contract in accordance with the Local Government (Functions and General) Regulations 1996, Part 4, Division 2, Regulation 20 (1); “Variation of requirements before entry into contract”.

It is therefore recommended to accept the WA Limestone and Italia Stone Group Joint Venture tender for Tender No. 17077 for the Provision of Major Works for Quinns Beach Long Term Coastal Management Works, subject to a minor variation before entry into Contract as identified above.

Statutory Compliance

Tenders were invited in accordance with the requirements of Section 3.57 of the Local Government Act 1995. The tendering procedures and evaluation complied with the requirements of Part 4 of the Local Government (Functions and General) Regulations 1996.

The following approvals and advice has been sought from the following State Government agencies with regards to the implementation of the Quinns Beach Long Term Coastal Management Project:

· Department of Planning – Confirmation has been received that a Development Application is not required for these works since all works fall within the definition of “public works” as per Section 2 of the Public Works Act.

· Department of Lands – Advice from the Department of Lands indicates that granting of tenure to encompass the groyne boundaries will require further discussion with the Department of Lands legal department to confirm the process. However, no delays are anticipated and issues are expected to be resolved by the end of October 2017.

· Department of Environment Regulation – Confirmation of the Clearing Permit Approval has been received.

· Department of Aboriginal Affairs – Confirmation has been received that there are no Registered Aboriginal Heritage Sites within the boundary of the proposed coastal management works at Quinns Beach.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“3 Environment (Natural)

3.1 Resource Management

3.1.1 Minimise impacts of climate change”

“3 Environment (Natural)

3.2 Enhanced Environment

3.2.1 Maximise the environmental value of beaches, nature reserves and parklands”

Risk Management Considerations

Risk Title	Risk Rating
ST-S06 Climate Change	High
Accountability	Action Planning Option
Director Planning and Sustainability	Manage

Risk Title	Risk Rating
CO-022 Environmental Management	High
Accountability	Action Planning Option
Director Planning and Sustainability	Manage

The above risks relating to the issue contained within this report have been identified and considered within the City’s Strategic/Corporate risk registers. Action plans have been developed to manage/mitigate/accept this risk to support existing management systems.

It is noted that the ongoing coastal erosion risks pending the implementation of the Quinns Beach Long Term Coastal Management works are being managed via ongoing monitoring and implementation of coastal maintenance works, such as beach re-nourishment, and emergency coastal protection works as required.

Social and Environmental Considerations

Social considerations have been addressed during the Quinns Beach Long Term Coastal Management Study via a comprehensive community consultation process which provided community input into the assessment of coastal management options and selection of the recommended option.

Disabled access was considered as part of the assessment of beach access options, however due to cost and site constraints, universal access to Groyne 4 was not possible. However, the existing beach access ramp at the southern end of Quinns Beach in front of the Quinns Mindarie Surf Life Saving Club provides universal access to the beach.

Environmental impacts have been considered in the scope of the works to ensure that disturbance to dune habitat is minimised. The coastal management option provides protection to coastal assets landward of the beach which includes existing flora and fauna. Also, any areas of cleared/disturbed dune vegetation will be rehabilitated with matting and planting of native dune species. The City is awaiting confirmation of its clearing permit for the works with the Department of Environment Regulation, however no issues are anticipated.

Broader Economic Impact Implications for the City of Wanneroo

Completion of the proposed Contract Works will provide additional coastal protection to the public and private coastal assets along the Quinns Rocks coastline. This will help to improve beach amenity and potentially increase the number of visitors to the area. Resulting benefits to small businesses and adjacent property values may result from the completion of the proposed works which may also increase the tourism value of the area.

The WA Limestone and Italia Stone Group Joint Venture has advised that the majority of limestone and sand required for these works will be sourced from the local quarries; and 10 employees proposed to be working on this project live locally. In addition, other material and resources are proposed to be acquired from the Perth Metropolitan area.

Financial and Performance Risk

Financial Risk

A financial risk assessment was undertaken as part of the tender evaluation process and the outcome of this independent assessment by Corporate Scorecard Pty Ltd advised that the WA Limestone and Italia Stone Group Joint Venture submission was assessed with only a marginal financial capacity to meet the requirements of the contract. The Corporate Scorecard report identified a number of further options/recommendations to be considered including the following:

· Security be obtained in the form of a Bank Guarantee or Surety Bond from a suitable Tier 1 issuer with an investment grade credit rating, for the duration of the contract and any warranty/defects liability period.

· Given the proposed contract would represent a high level of exposure to the subject, it should provide evidence of sufficient operational resources to undertake the contract. If there is to be a material reliance on a subcontractor(s), we recommend that an assessment be undertaken on the subcontractor(s).

· Given that the proposed contract represents a high level of exposure, we recommend that prompt payments are made by the client to ensure the subject's cash flow is not materially impacted.

· Consideration should also be given to undertaking a financial assessment on the separate corporate partners, PMR Quarries Pty Ltd and Italia Stone Group Pty Ltd to determine their financial capacity to support the contract being tendered for by the subject.

· As the proposed contract is multi-year, we recommend that if the contract is to be awarded to the subject a reporting covenant be imposed requiring the subject to participate in an ongoing financial monitoring regime throughout the course of the contract, requiring the provision of financial statements and other information to support ongoing financial reviews (at the request of the principal). A termination clause should be included in the event of an unsatisfactory assessment.

The reason for the Corporate Scorecard assessment result is considered a consequence of limited recent joint venture works being undertaken by the respective companies. The City has undertaken the following steps to implement the recommendations from the Corporate Scorecard report:

· A security in the form of a Bank Guarantee is to be obtained as a condition of the contract award;

· Evidence has been received of the organisational resources to undertake the major construction elements of the works as outlined within the tender. There is only a small component of works to be delivered by nominated sub-contractors, including landscaping, fencing and concrete works;

· The City will ensure prompt payment of invoices in accordance with the timeframes as indicated in the general conditions of contract;

· Separate independent assessments by Corporate Scorecard Pty Ltd were undertaken on the two individual companies forming the joint venture. The outcome of these individual assessments indicated that PMR Quarries Pty Ltd as Trustee for WA Limestone Unit Trust and Italia Stone Group Pty Ltd each have a “very strong” financial capacity to meet the requirements of the contract; and

· A reporting covenant is being imposed throughout the contract enabling the City to request ongoing financial monitoring.

Performance Risk

Independent reference checks with the Department of Transport have also indicated that WA Limestone and Italia Stone Group Joint Venture has a very good standard of work, can complete projects on time and on budget and are recommended for similar projects.

Policy Implications

The Quinns Beach Long Term Coastal Management Study has been undertaken with consideration of the State Coastal Planning Policy 2.6 (SPP 2.6) and the City’s Local Planning Policy 4.21 – Coastal Assets Policy.

Tenders were invited in accordance with the requirements of the City’s Purchasing Policy.

The Coastal Protection Policy for Western Australia is now obsolete and the Department of Transport is nearing completion of a review process which will produce a new document summarising State Government’s role with regards to coastal hazard management. Meanwhile, the Department of Transport has been kept well informed throughout the study with involvement in technical reviews and funding via the Coastal Adaptation and Protection Grants programme.

Financial Implications

Based on the recommended tenderer’s lump sum price, 2017/18 expenditure and commitments, adopted Capital Works Budget for 2017/18, approved grant funding and allocated Capital Works Budget in the Long Term Capital Works Program, the project cost/estimated expenditure for implementation of the Quinns Beach Long Term Coastal Management Works is summarised below.

PR-2561 (2017/18 to 2019/20)
Description	Expenditure	Budget
Budget:
Adopted Capital Works Budget for 2017/18 (PR-2561)		$2,950,000
Approved State Government Grant Funding for 2017/18		$299,212
Capital Works Budget 2018/19 (PR-2561) - Listed		$2,800,000
Capital Works Budget 2019/20 (PR-2561) - Listed		$1,700,000
Expenditure:
Expenditure for the period 1 July 2017 to date	$1,241
Commitment to date	$9,500
Project Management Fees	$250,000
Coastal Management Works based on recommended tender price (Tender No. 17077) including minor variation before entry into Contract	$6,766,245
Estimated Cost for 2 Beach Access Staircases at Quinns Beach (Tender No. 17076, Tender evaluation is underway)	$500,000
Contingency	$220,000

Total Estimated Expenditure	$7,746,986
Total Funding commitment/allocation for PR-2561		$7,749,212

The City of Wanneroo recently received approval for two 2017/18 Coastal Adaptation and Protection (CAP) Grants in June 2017, one of which relates to Stage 1 of the Quinns Beach Long Term Coastal Management Works. This Grant will contribute $299,212 towards the Stage 1 works – Construction of Groyne 4, Beach Re-nourishment (8,400 m3), Groyne 4 Beach Access Ramp. A budget variation to include the Coastal Adaptation and Protection (CAP) Grant funding is reflected in the recommendation below.

It is noted that a separate funding application was also submitted to the State Government in December 2016 requesting a 50% contribution towards the long term coastal management works at Quinns Beach on the basis that the works will not only enhance beach amenity for the community, but will also protect both public and private coastal assets including State Government owned public utilities and private residences. A response was received in June 2017 which indicated that the requested funding from the State Government was not available. The City will continue to apply for CAP Grants in subsequent financial years (2018/19 and 2019/20), however even if successful, this funding will be limited to the maximum grant amount of $300,000.

Final funding requirements for 2018/19 and 2019/20 will be confirmed as part of the annual budget processes noting that funding for the subsequent financial years works is currently listed in the City’s Long Term Financial Plan.

Voting Requirements

Absolute Majority

Recommendation

That Council:-

1. ACCEPTS a minor variation of groyne design before entry into Contract in accordance with Regulation 20 (1) of the Local Government (Functions and General) Regulations 1996;

2. ACCEPTS the tender submitted by WA Limestone and Italia Stone Group Joint Venture for Tender No. 017077 for the Provision of Major Works for Quinns Beach Long Term Coastal Management Works for a lump sum price of $6,766,245.56 noting that:

a) construction works shall be staged over three financial years commencing 2017/18; and

b) the lump sum price is amended as inclusive of the minor variation before entry into Contract in accordance with Local Government (Functions and General) Regulations 1996;

3. ACCEPTS Grant Funding from the State Government of $299,212 as part of the 2017/18 Coastal Adaptation & Grant (CAP) funding submission;

4. APPROVES by ABSOLUTE MAJORITY the following variation to the budget to reflect the receipt of $299,212 CAP grant funding:

INCOME

Description	GL Account/ Capital Project	Approved Budget	Additional Budget	Revised Budget
Quinns Beach Coastal Protection Works	PR-2561	$0	$299,212	$299,212

Description

GL Account/

Capital Project

Approved Budget

Additional Budget

Revised Budget

Quinns Beach Coastal Protection Works

PR-2561

$299,212

$299,212

EXPENDITURE

Description	GL Account/ Capital Project	Approved Budget	Requested Additional Budget	Revised Budget
Quinns Beach Coastal Protection Works	PR-2561	$2,950,000	$299,212	$3,249,212

Description

GL Account/

Capital Project

Approved Budget

Requested Additional Budget

Revised Budget

Quinns Beach Coastal Protection Works

PR-2561

$2,950,000

$299,212

$3,249,212

5. THANKS the members of the Quinns Beach Long Term Coastal Management Community Reference Group for their input in the development of this project.

Attachments:

1 ⇩.

Attachment - Tender No 17077 - Lump Sum Pricing

17/320490

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 98

Community Facilities

3.7 Edgar Griffiths Park Projects - Outcome of Community Consultation and Concept Approval

File Ref: 24615 – 17/305963

Responsible Officer: A/Director Community & Place

Disclosure of Interest: Nil

Attachments: 5

Issue

To consider the proposed concept design for the development of the Edgar Griffiths Park Sports Amenities Building, Floodlighting and Oval Extension.

Background

Edgar Griffiths Park (Reserve No: 36601) is located at 60 Garden Park Drive, Wanneroo Attachment 1. The land was vested in the City of Wanneroo in 1987 for the purposes of Public Recreation.

Edgar Griffiths Park comprises of two land parcels. The area directly adjacent to Garden Park Drive (Lot 10080) is currently used for formal sporting activities (i.e. AFL and cricket) and passive recreation (i.e. dog walking) and is 14.7ha in size. This portion is zoned Parks and Recreation. The east land parcel (Lot 10857) has an area of 9.2 ha and is zoned Parks & Recreation as well as Regional Parks and Recreation, however approximately 5.8 ha of this site to the north/east is bush forever and is fenced with conservation fencing. This section of land is not subject to this proposed development.

Edgar Griffiths Parks has previously been the subject of a Master Planning exercise in 2004. While the draft Master Plan was released for community consultation, it was not formally considered by Council due to the Motion on Notice (MN02-10/04) outcome from the Council Meeting held on 12 October 2004.

Detail

PR-4010 Sports Amenities Building

The location of the proposed new sports amenities building is on the southern boundary of the active reserve and will replace the existing toilet/changeroom facility. The concept plan has been included as Attachment 2 and was used as the basis for the consultation process.

The concept plan includes:

Element	Description
Changerooms	2 x 42m² changeroom facilities including an amenities area for each changeroom.
Storerooms	2 x 20m² user group external storerooms.
First Aid Room	10m² first aid room
Umpires room	includes 1 shower and toilet facilities
Male & Female Toilets	Male and female toilets that are separate facilities from changerooms. A separate universal access toilet that provides external access. These facilities will service the reserve hirers.
100m² of Multipurpose Room	Future provision as a stage 2, subject to demand.

The proposed facility provision is considered to be appropriate for a neighbourhood level sport reserve of this size (Reserve size of 14.7ha and Playing Field size of 2.5 ha). The provision of a 100m² of multipurpose room has been included as a future second stage, based on demand. It has not been included in the stage 1 development on the basis that there is not sufficient demand to justify the development of this space at the present time.

This position is consistent with the Draft Community Facility Standards which are currently being developed by Administration in respect to future community level sport infrastructure provision. The draft Standards will propose all future neighbourhood level Active Open Space is provided with a sports amenities building of up to 100m², subject to consideration through the planning process of:

· Number of user groups; and

· Specific sport requirements.

Future facility provision will be guided by the Draft Community Facility Standards. These will be based around the below existing hierarchy which applies to Active Open Space:

Designation	Number of Ovals Provided*	Size⁺	Minimum Multipurpose Facility Provision	Maximum Multipurpose Room Provision
Local	0	Between 0.4 and 1 ha	N/A	N/A
Neighbourhood	1	1 to 5ha	0m²	100m²
District	2	5 to 15+ha	100m²	150m²
Regional	More than 2	At least 20ha	150m²	200m²
*1 Oval can host cricket, AFL, 2 x Rugby / Soccer fields
⁺based on classification framework developed by Department of Sport and Recreation(DSR) in 2012 and revised City of Wanneroo Local Planning Policy 4.3 – Public Open Space.

In accordance with the Draft Community Facility Standards that will ultimately be presented to Council for endorsement, the provision of such infrastructure would also be measured against the levels of activity at each location on a case by case basis specific to sport requirements and a clear demonstration of the need identified for the provision of the facilities within the minimum and maximum provision.

In terms of the broader catchment for the Park, the following table provides an overview of the other active reserves within the catchment and their current use.

Park

Size

Distance from Edgar Griffiths

Facilities

Current users

Level of use per week (hours)

Houghton Park

5ha

6.2km

One playing field, floodlighting,

sports amenities building,

playground equipment,

BMX facility

Carramar FC

Carramar Primary School

Wanneroo Cricket Club

Step into Life

Wanneroo/ Joondalup Tee ball

Wanneroo Lacrosse

21 (W)

30 (A)

22 (S)

7 (A)

0.5 (S)

2 (S)

Peridot Park	3ha	6km	One playing field, toilet block, playground, floodlighting, tennis courts	Neerabup Junior Football Club Carramar FC Neerabup Primary School *No summer club usage	8.5 (W) 7.5 (W) 35 (A)
Scenic Park	4.6ha	3.6km	Two playing fields, floodlighting, playground,	Wanneroo Junior Football Club Personal Trainer Brazilian Soccer School RSPCA	4 (W) 8 (A) 3 (A) 3 (A)
Lake Joondalup Park	9.2ha	3.1km	One playing field, changerooms, toilets, cricket nets, floodlighting, playground, fitness equipment	Wanneroo Cricket Club – Juniors Wanneroo Junior Football Club	15 (S) 8 (W)
Wanneroo Showgrounds	9.3ha	3.06km	One playing field, clubrooms, 3 x toilet blocks, tennis courts, pavilion, cricket nets, power supplies	Wanneroo Cricket Club – Juniors Wanneroo Cricket Club – Seniors Wanneroo Junior Football Club Wanneroo Amateur Football Club Step into Life (Fitness) Nollamara RSL Swap Meets	17 (S) 9.5 (S) 21 (W) 10.25 (W) 6.25 (W) 6 (A)

Note: W – Winter, S – Summer, A - Annual

In respect to population growth within the catchment area, the table below outlines the anticipated growth within the locations of Wanneroo, Carramar and Tapping. As can be seen, the level of growth over the 10 year period will be significant, with the population threshold meeting the required 1:7,000 ratio for Neighbourhood POS (Active) (Northern Coastal Growth Corridor Community Facilities Plan, 2011).

The population of Wanneroo is expected to increase by 38% by the year 2024 and a 16% rise in population is anticipated for the suburb of Carramar.

Suburb	2014	2024	Difference	%
Wanneroo	12,749	17,706	+ 4,957	38%
Carramar	7,134	8,339	+ 1,205	17%
Tapping	9,791	10,001	+ 210	2%
Total	29,674	36,046	6,372	21%

Source – Population Forecast id

To ensure access by the broader community to the building, it will be necessary to implement an appropriate management model that does not allow any one group or only a small number of groups to have dedicated exclusive use. Fundamentally, this will be achieved via the City’s Facility Hire and Use Policy, providing equitable access to all of the community.

PR-4101 Floodlighting and Oval Extension

The proposal to realign the oval Attachment 2 will better accommodate existing sports to be played on this reserve. It is proposed that Edgar Griffiths Park is floodlit to allow clubs to train after dusk in winter. It is proposed to design and construct a 4 pole installation on the playing field to AS 2560.2.3 for large ball sport training, with capacity to increase to 100 lux at a future point in time. The City of Wanneroo is now controlling floodlighting through an SMS system. This system prevents power wastage by only activating floodlighting when there is a booking on the reserve. The current Facility Hire & Use Policy permits the use of floodlights up until 10pm each night.

The floodlighting installation is currently scheduled to be completed in the 2019/20 financial year, following the completion of the Sports Amenities Building.

PR-4106 – Edgar Griffiths Park – Water Main Extension

The current provision for drinking water is provided through a water filtration system however this amenity would not have the capacity to provide clean water to the proposed new facilities.

There is currently no scheme water connection at Edgar Griffiths Park and this will be required to support the functions of the new sports amenities building. This will allow the building to be used to its full potential and provide drinking water to the community members and sporting clubs that will use this facility.

Project Schedule

The proposed timeframes for the Edgar Griffiths Park Sports Amenities Building, Floodlighting, Oval Extension and Water Main Extension are as follows;

Key Tasks	Target Date
Council report – consultation outcomes and concept, cost and funding model	10 October 2017
Procurement Oval Extension	Oct 2017
Oval Extension	Oct – Dec 2017
Procurement Floodlighting	Jan – March 2018
Construction Floodlighting	April – June 2018
Detailed design Sports Amenities Building	Oct- Dec 2017
Procurement Sports Amenities Building	Jan – March 2018
Construction Sports Amenities Building	July 18 – Feb 2019

It should be noted that the project schedule will be subject to further refinement as the project progresses and more detailed planning undertaken.

Consultation

The community consultation period for Edgar Griffiths Park projects was conducted between 21 August to 15 September 2017 and included the following consultation strategy:

· Distribution of an information letter and survey Attachment 3 and plans Attachments 2 to 291 residents and landowners within 400m from the Park, requesting that they take part by providing feedback and view the concept plan;

· Community consultation held onsite on 11 September 2017 to allow interested members of the public to view and discuss the draft concept plan with the relevant City of Wanneroo staff members and Elected members; and

· Inclusion of the concept plan and comment form on the City's web site with links provided on City of Wanneroo Facebook and Youth Facebook pages.

The Wanneroo Junior Cricket Club, Wanneroo Cricket Club, Wanneroo Amateur Football Club, Wanneroo Junior Football Club and the Wanneroo Little Athletics were also contacted and provided with links to the consultation and survey information for distribution through their networks.

Public Comment Outcomes

At the close of the consultation period, Administration received 52 responses, a return rate of 17.8%. Of the 52 responses, 49 were supportive of the Sports Amenities Building (94.2%), 47 (90.3%) supported the oval realignment, while 5 (9.7%) did not support the tree removal or the upgrades at this reserve in general.

In respect to the floodlighting, 46 (88.4%) of respondents supported the proposed project, while 6 (11.6%) opposed the project stating that consideration should be given to the local residents who have chosen to live semi-rural and that the floodlighting will attract anti-social behaviour.

A list of all comments for the Sports Amenities Building can be found on Attachment 4. Some of those comments in favour of the project are;

· It would be great if the toilets were made available during the day in the new building;

· Better oval needs better facilities;

· Yes, about time it was updated;

· Sport is a fantastic thing for both adults and children. There can never be too many opportunities for sport. Well done on this proposal City of Wanneroo.

Comments were mainly supportive for the Oval Realignment as shown in Attachment 4. Some of those comments in favour of the project are;

· Again, to use the park to the full capacity that is required for future events. The oval should be changed to suit the sports that are to be played on it;

· It is only minor. My grandson plays there and it will bring it in line with other ovals;

· Sports are important for the younger generations so future venues need to keep up with the growing suburbs, but Wanneroo definitely needs updating, anything for the youth is a good thing as there is not a lot for them

The comments were generally supportive for the Floodlighting Attachment 4. Some of those comments in favour of the project are;

· Fantastic, flood lighting activates public space at times people are most able to utilise. The safety benefits and overall community benefit is outstanding. Great job;

· Good quality community facilities are invaluable and have many benefits;

· The use of the oval under lights will be a great success for more sports to be able to use at different times of the day.

A summary of the responses received which were not in favour of the proposed projects, has been included below and has been outlined in more detail in Attachment 4:

· The provision of 30 metre lighting columns is not required to satisfy passive recreation needs. Further encouraging night time use of the facility is likely to result in anti-social behaviour and inconvenience to adjacent property owners;

· Remediation and upgrading of the verges is currently required as present use has damaged the verges significantly;

· Lighting towers as proposed are not in keeping with the Special rural designation of the Garden Park area, which is able to provide a suitable amenity for the vast majority of current users and has done so for more than thirty years. If illuminated facilities are required to accommodate incoming residents, they should be located in the newly developed/developing areas;

· The present oval has served the required purpose for the past thirty+ years. I see no point in destroying trees to expand it;

· This would be a much better improvement if the verge area on Garden Park Drive had a hard surface as a lot of cars are parked along there and surface is dug up and cars are getting bogged. Also this makes it hard for people to walk along side park;

The survey also asked of there were any other comments that the respondent would like to advise the City and the full list is on Attachment 4. A sample of those comments includes;

· Please create a bin compound storage area;

· Onsite bbq would be nice;

· There is a great need for much more parking areas than at the moment;

· I am behind all positive changes for young people;

· I would like to frequent Edgar Griffiths park more often but it is difficult to access as there is no proper footpath from Dundebar road and I can't push my double pram safely along the shoulder. It would be great if this could be taken into consideration as part of these upgrades or in future;

· Once done need security people driving and keeping as eye on the new area;

· I am not a resident of Wanneroo but a rate payer so believe I have a right to comment particularly on the environmental impact of loss of tree cover and the need to replace it due to my interest in these matters.

Onsite Community Consultation

As part of the community consultation period, Administration and Councillors attended Edgar Griffiths Park on Monday 11 September 2017 to present the design to interested community members. The opinion of the residents present was that this park is regularly used by dog walkers and this was evident as there were about 16 dogs with their owners at this meeting.

Their concern was that the oval would have more sporting usage, disadvantaging their group although they were pleased with the proposed design. There were suggestions to make the area to the east more accessible by the inclusion of dog waste bags and picnic shelters allowing the dog walkers to use another portion of Edgar Griffiths Park avoiding conflict and competing time with sports groups for the oval space.

Other issues that were raised at this meeting were parking along Garden Park Drive. This is regularly used for parking and creates a safety issue with cars parking along the soft edges and also that this is a 70km speed zone. Requests were made to reduce the speed limit along this section and to formalise off street parking.

It should be noted that these comments were submitted through the formal survey and included in Attachment 4.

The consultation process has been undertaken as per the City’s Community Engagement Policy. Consultation with key stakeholders will be undertaken as a matter of course throughout the design and construction processes.

Comment

Administration is of the view that the proposed facility provision, being the Sports Amenities Building, Floodlighting and Oval extension is appropriate for a neighbourhood level active reserve of this size

Although the large majority of respondents are in support of the concept as presented, Administration will seek to work with Main Roads Western Australia in regards to the speed limit along Garden Park Drive. The provision of dog waste bags and a picnic shelter and / or seating will be further investigated by Administration, and may be considered as part of this project if budget funding permits.

In respect to the comments received opposing the development as it is thought not to be in accordance with the original subdivision, Administration can advise that Edgar Griffiths Park is utilised within the parameters of the Vesting Order Attachment 5 issued by the Governor of Western Australia to the City of Wanneroo on 31 March 1987 under the Land Act 1933 (Section 33) for the purposes of “Public Recreation” which by definition includes active and passive leisure pursuits. The Garden Park estate was zoned ‘Special Rural’ under the City’s former Town Planning Scheme No. 1 in 1979 and during subdivision in the 1980’s the Park was formally created as a Reserve for the purpose of “Public Recreation”

It should be noted that the development proposal outlined in this report is to extend the current use and not introduce new uses.

Statutory Compliance

The City will be required to secure the necessary Building Licence and Development Approvals prior to the commencement of construction.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“1 Society

1.1 Healthy and Active People

1.1.1 Create opportunities that encourage community wellbeing and active and healthy lifestyles”

Risk Management Considerations

Risk Title	Risk Rating
CO-O01 Relationship Management	Moderate
Accountability	Action Planning Option
Executive Leadership Team	Manage

Risk Title	Risk Rating
CO-O20 Productive Communities	Moderate
Accountability	Action Planning Option
Director Community and Place	Manage

Risk Title	Risk Rating
CO-O23 Safety of Community	Moderate
Accountability	Action Planning Option
Director Community and Place	Manage

The above risks relating to the issue contained within this report has been identified and considered within the City’s Corporate risk register. Action plans have been developed to manage this risk to improve the existing management systems.

Policy Implications

The City's Local Planning Policy 4.3 Public Open Spaces was used as the guiding framework for the development of the draft concept plan. The community consultation process was undertaken as per the City’s Community Engagement Policy.

Financial Implications

The total estimated cost for the Sports Amenities Building, Floodlighting, Oval Extension and Water Main Extension is $2,606,000 with the funding source being the City of Wanneroo municipal funds, as captured within the Long Term Financial Plan.

A summary of the combined project has been outlined in the table below.

Year	Project No.	Description	Total
1 (2017/18)	4101	Oval Extension and Sports Floodlighting Design	69,000
1 (2017/18)	4010	Sports Amenities Building (New / Refurbishments / Additions) - Detailed Design & Construct Stage 1 (ARMP)	400,000
1 (2017/18)	4106	Water Main Extension	150,000
2 (2018/19)	4010	Sports Amenities Building (New / Refurbishments / Additions) - Detailed Design & Construct Stage 2 (ARMP)	1,300,000
3 (2019/20)	4101	Oval Extension and Sports Floodlighting - Construction	687,000
Total			2,606,000

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. ENDORSES the Edgar Griffiths Park Sports Amenities Building, Floodlighting, Oval Realignment Concept Plan as shown in Attachment 2 of this report;

2. NOTES that construction of the proposed development is estimated to commence by end October 2017 and will be concluded in February 2019; and

3. RECOGNISES and THANKS the community for its involvement in the community consultation component of the project.

Attachments:

1 ⇩.	Edgar Griffiths Park - Land Parcels and Location Plan	17/311146
2 ⇩.	Edgar Griffiths Park - Building and Oval Concept	17/319346	Minuted
3 ⇩.	Edgar Griffiths Park Letter and Survey	17/319350
4 ⇩.	Edgar Griffiths Park - Survey Comments	17/319474
5 ⇩.	Edgar Griffiths Park - Vesting	17/311159

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 120

3.8 Wanneroo Aquamotion Outdoor Pool and Hydrotherapy Pool Re-tiling – Project Funding

File Ref: 24129 – 17/313030

Responsible Officer: A/Director Community & Place

Disclosure of Interest: Nil

Attachments: 2

Issue

To consider tiling rectification works to the Wanneroo Aquamotion (Aquamotion) Outdoor Pool and Hydrotherapy Pool and related adjustments to the 2017/18 Capital Works Budget.

Background

The Wanneroo Aquamotion refurbishment was undertaken in 2007/8 and as part of the refurbishment a new deep water outdoor pool and indoor hydrotherapy pool were constructed.

Both pools were constructed using industry recognised thick reinforced concrete shell construction methods (to water retention codes), coated with ceramic tiles bonded with nanolight glue, all of which met with the standards of the day.

The original tiling specification was warranted for 10 years and was to meet the British Codes for adhesive mortar and tiling in pools (EN144111) and Australian Standards code AS3958 (Ceramic Tiles – Guide to the installation of ceramic tiles). These standards specify that the tiles should be laid with and adhesive overage to a minimum of 80% of the surface and tiles be back buttered (i.e. a thin layer of adhesive is applied to the back of the tile before laying the tile onto the comb-spread adhesive applied directly to the concrete pool shell). Tiles should then be twisted and tapped into position, removing air/voids between the tile and the concrete shell to a minimum level of 80%.

The original works were carried out by the sub-contractor tiling company engaged by the main contractor for the facility refurbishment. The sub-contractor has since ceased to operate.

Detail

Outdoor Pool

In August 2017, staff at Aquamotion discovered a number of tiles delaminating from the upper section of the outdoor deep water pool (Attachment 1). At the time the pool was closed for the winter season and, as a result of the tile delamination, the pool will remain closed (for safety reasons) until the re-tiling is completed.

Administration engaged the specialist Aquatic Engineers, Geoff Ninnes Fong and Partners Ltd (GNFP) to inspect the pool, provide advice on the extent of the delamination, investigate the cause of the problem and identify required rectification. GNFP were the Aquatic Engineers for the refurbishment works at Aquamotion in 2007/8.

An inspection of delaminated areas of the pool tank was undertaken on 10 August 2017, with the following being noted;

· Delamination was at the tile-adhesive barrier;

· No back-buttering appeared to be present on delaminated tiles;

· No twisting of tiles appeared to have occurred to spread the adhesive evenly between tile and concrete shell, resulting in a less than minimum 80% coverage of adhesive.

GNFP identified that there was no evidence of diagonal tile crack, suggesting that the reinforced concrete structure of the pool shell was sound and that the delamination was not due to structural movement but rather due to the tiling works not being undertaken to standard.

As a result of the inspection, GFNP recommend that:

· The outdoor deep water pool be drained and the entire pool be checked for adhesion levels and retiled where appropriate throughout;

· The specifications used for the re-tiling are in keeping with the current best industry practice and require a minimum coverage of 90% with a target of 100%;

· All tiles are checked for adhesion levels as part of the quality assurance for the work undertaken; and

· The use of a specific adhesive product and tile product which also requires the work be carried out by a toiler approved by the product supplier, giving a 10 year warranty on the rectification works.

Hydrotherapy Pool

On 15 September 2017, Aquamotion staff found approximately 100 tiles delaminating from the floor of the hydrotherapy pool (Attachment 2). Given the risk to pool users, the pool was closed immediately, impacting on the Swim School program and public hydrotherapy sessions (18 sessions per week). Customers impacted by this closure have been provided with a credit for the next term of classes or a refund.

Interim rectification works (retiling of the affected areas) is in the process of being completed. These works were funded via existing maintenance budgets.

An inspection of delaminated areas of the pool tank was undertaken on 19 September 2017, with the following being noted;

· Delamination was at the tile-adhesive barrier;

· No back-buttering appeared to be present on delaminated tiles;

· No twisting of tiles appeared to have occurred to spread the adhesive evenly between tile and concrete shell, resulting in a less than minimum 80% coverage of adhesive.

As with the outdoor pool, GNFP found that the reinforced concrete structure of the pool shell was sound and that the delamination was not due to structural movement, but rather due to the tiling works not being undertaken to standard.

As a result of the inspection, GFNP recommend that:

· The hydrotherapy pool be drained and the entire pool be checked for adhesion levels and retiled where appropriate throughout;

· The specifications used for the re-tiling are in keeping with the current best industry practice and require a minimum coverage of 90% with a target of 100%;

· All tiles are checked for adhesion levels as part of the quality assurance for the work undertaken; and

Project Schedule

Administration’s intention is to undertake the re-tiling of the outdoor pool as soon as possible so that it is available for use prior to the onset of the summer season. In respect to the hydrotherapy pool, the intention is to undertake these works post the completion of Term 4 2017, to minimise impact on the Aquamotion Swim School program. Further advice will be provided on specific project timeframes once the relevant procurement processes have been completed and contractors appointed.

Consultation

Aquamotion staff continue to provide customers ongoing updates and progress reports on the rectification works, in addition address enquiries in respect to program registrations, credits and refunds.

Comment

Administration will continue to work with GNFP and relevant contractors to undertake the required rectification works for the outdoor pool and the hydrotherapy pool.

Administration will also be seeking advice from the City’s Lawyer in respect to any claim that may be able to be made against relevant parties in respect to costs incurred in rectification of the issue and lost income.

It should be noted that the tile delamination issue being experienced with the outdoor pool and the hydrotherapy pool appear to be the same as those being experienced in the main lap pool. Aquamotion staff are currently managing the delamination issue in the main lap pool, replacing tiles where required, thus enabling the pool to remain open. Administration is currently progressing with a more detailed review of the issues pertaining to the main lap pool, with a view to undertaking corrective works in the 2018/19 financial year.

The City’s Building Asset Management Plan (2011) details the levels of service, maintenance requirements and predicts the long term renewal demand of the City’s building portfolio. This Plan is currently being reviewed and updated. The AMP identified and listed the most critical and valuable facilities within the City requiring detailed Facility Management Plans (FMP) which included the Aquamotion facility. The development of the FMP is intended to ensure that these high profile facilities remain ‘fit for purpose’ throughout their anticipated life. The FMP for Aquamotion has yet to be completed.

In the absence of the FMP for Aquamotion, the City in 2012, engaged an asset management consultant to undertake a building asset inventory audit and asset condition assessment at the Aquamotion facility. The final report also provided the future renewal expenditure requirements of the facility which included the pools in question. The scope of the inspections at the time considered the assets in their entirety and did not drill down to the detailed elements of the asset, for example the surface tiling for the pools. The need for the renewal of the pools in their entirety was not expected until 2036.

Statutory Compliance

Nil

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“1 Society

1.1 Healthy and Active People

1.1.1 Create opportunities that encourage community wellbeing and active and healthy lifestyles”

Risk Management Considerations

Risk Title	Risk Rating
CO-O01 Relationship Management	Moderate
Accountability	Action Planning Option
Executive Leadership Team	Manage

Policy Implications

Nil

Financial Implications

The total estimated cost to undertake the rectification work for the outdoor pool and the hydrotherapy pool is $89,050 and $89,335, respectively. These estimates include the preparation of specifications, Quality Assurance inspections during and at the completion of works, tiling works, project management fees and contingencies.

Given the urgency of the works, this report will recommend that these works be funded from the Asset Replacement Reserve. The current balance of this reserve is $4.5 million of uncommitted funds in 2017/18, as per the recently adopted Long Term Financial Plan.

It should also be noted that the closure of these pools will result in loss of income for the centre.

Voting Requirements

Absolute Majority

Recommendation

That Council:-

1. NOTES the required re-tiling rectification works for the Wanneroo Aquamotion Outdoor Pool and Hydrotherapy Pool;

2. APPROVES BY ABSOLUTE MAJORITY the unbudgeted expenditure listed in the following table, pursuant to Section 6.8(1)(b) of the Local Government Act 1995 for the Wanneroo Aquamotion Outdoor Pool and Hydrotherapy Pool Re-tiling Works:

Description	GL Account/ Capital Project	Current Budget	Adjusted Budget
Wanneroo Aquamotion Outdoor Pool and Hydrotherapy Pool Re-tiling Works	PR-TBA	$0	$178,385

Description

GL Account/

Capital Project

Current Budget

Adjusted Budget

Wanneroo Aquamotion Outdoor Pool and Hydrotherapy Pool Re-tiling Works

PR-TBA

$178,385

3. APPROVES the following budget amendment to address the project funding shortfall for the Wanneroo Aquamotion Outdoor Pool and Hydrotherapy Pool Re-tiling Works, noting that a new Project Number will be created upon Council endorsement;

Project Number	From	To	Description
Reserve	$178,385		Asset Replacement Reserve
PR- TBA		$178,385	Wanneroo Aquamotion Outdoor Pool and Hydrotherapy Pool Re-tiling Works

4. NOTES Administration will explore opportunities to recover costs incurred as a result of these rectification works and lost income.

Attachments:

1 ⇩.	Outdoor Pool tiles 22.9.17	17/321466
2 ⇩.	Hydrotherapy Pool Tile Delamination	17/322813

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 146

Community Safety & Emergency Management Report

3.10 CCTV Hub Kingsway Regional Sporting Complex - Budget Variation

File Ref: 3272 – 17/311790

Responsible Officer: A/Director Community & Place

Disclosure of Interest: Nil

Attachments: Nil

Issue

To consider a budget variation to the approved 2017/2018 Capital Works Budget for PR-4066, CCTV Hub Kingsway Regional Sporting Complex.

Background

In September 2016 the City sought funding through the Attorney-General’s Department, “Crime Prevention Through Environmental Design Initiatives, Safer Streets Programme” funding round for the design and installation of a CCTV hub around the exterior entry/egress routes and interior access roads of the Kingsway Regional Sporting Complex.

Grant funding of $207,700 was approved for the purpose of installing a CCTV system in and around the sporting complex to help deter anti-social behaviour, vandalism and criminal activity occurring in the vicinity whereby creating a safe, family friendly and social environment. The Commonwealth Attorney-General’s Department and the City agreed to enter in to an Agreement to meet the project objectives.

The project was listed within the 2016/2017, Capital Works Program and was subsequently carried forward to the 2017/2018 financial year.

Detail

Request for Tender No. 16227 was advertised on 26 November 2016 and closed on 24 January 2017. Two (2) tenders were received and evaluated against the assessment criteria. Following the evaluation process, the Tender Evaluation Panel concluded to decline both offers on the basis that the submissions were in excess of the budget and the process highlighted a lack of understanding of some aspects contained in the scope of works.

Consequently Administration approached the market through the eQuote portal, inviting four (4) Western Australian Local Government Association (WALGA) panel preferred CCTV suppliers to provide a quotation for services and product to undertake the scope of works. Only one (1) company provided a quote with the price schedule resulting in excess of $100,000 of the grant funds received.

Administration engaged an independent CCTV consultant to review the price schedule and provide expert advice in relation to scope of works required to complete the project. It has been determined that the pricing is feasible considering costs associated with undertaking the civil works.

Consultation

Consultation has been undertaken with an independent CCTV Consultant (Redfish Technologies) to determine best product and cost solutions to derive maximum value from the technology.

Comment

Given the costs associated to deliver the project as documented in the endorsed Commonwealth Government Grant Agreement, a budget transfer is necessary.

Administration does not recommend the scope of works be varied in an attempt to reduce costs as the endorsed Commonwealth Government Grant Agreement would require a written request for any variation. There may be a possibility of this request being rejected by the Attorney-General’s Department and will further cause delays to commence this project.

Statutory Compliance

Part 6 – Financial Management of Local Government Act and Part 2 – General Financial Management of the Local Government (Financial Management) Regulations 1996 makes provision for budget variations.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“1 Society

1.2 Safe Communities

1.2.1 Enable community to be prepared and to recover from emergency situations”

Risk Management Considerations

Risk Title	Risk Rating
CO-O23 Safety of Community	Moderate
Accountability	Action Planning Option
Director Community and Place	manage

The above risk relating to the issue contained within this report has been identified and considered within the City’s Corporate risk register. Action plans have been developed to manage this risk to support existing management systems.

Policy Implications

The City’s Accounting Policy Section 2 Budget Variations (c) states:

“Circumstances:

Where the budget allocation for a new initiative, the acquisition of an asset or a capital work project is insufficient.

Action:

In accordance with Section 6.8 of the Local Government Act 1995 by way of a report and recommendation to the Council seeking authorisation of the expenditure and to endorse the necessary budget variation.”

Financial Implications

The funding shortfall required to fully complete the work to design, supply and install a CCTV Hub at the Kingsway Regional Sporting Complex project can be sourced from Municipal Funds as summarised below.

Project No.

Description

Approved Municipal Budget/ Grant Funding

Transfers

From/To

Adjusted Totals

PR-2094

CCTV Expansion

$202,170

-$100,000

$102,170

PR-4066

CCTV Hub – Kingsway Regional Sporting Complex

$217,700

+$100,000

$317,700

Implementation of the project PR-2094, CCTV Expansion Project, is subject to the finalisation of the CCTV Strategy and as a result will be listed as a priority for commencement in the 2018/19 financial year.

Voting Requirements

Absolute Majority

Recommendation

That Council:-

1. NOTES the current status of PR-4066, CCTV Hub at Kingsway Regional Sporting Complex; and

2. APPROVES BY ABSOLUTE MAJORITY the budget transfer of $100,000 as listed in the following table, pursuant to Section 6.8 (1)(b) of the Local Government Act 1995.

Project No.	From	To	Description
PR-2094	$100,000		CCTV Expansion
PR-4066		$100,000	CCTV Hub – Kingsway Regional Sporting Complex

Attachments: Nil

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 149

Place Activation

3.11 Two Rocks Fitness Program Transition Model and Fee Waiver Proposal

File Ref: 6355 – 17/273714

Responsible Officer: A/Director Community & Place

Disclosure of Interest: Nil

Attachments: Nil

Issue

To consider fee waivers associated with the Two Rocks Fitness Program transition model.

Background

The City has delivered low cost fitness classes in Two Rocks since 2013 through the Healthy Communities Initiative. The program was established to address the high number of seniors living in the area, and its low Socio-Economic Indexes for Areas (SEIFA) on disadvantage score (960.1 compared to City of Wanneroo average 1,025.5). The fitness classes have remained ongoing due to the lack of other affordable programs and services within the Two Rocks area, including no other City managed leisure centres in the North Coast Ward and the popularity / benefit of the initiative.

The City directly funds and manages two exercise classes that operate twice weekly at the Phil Renkin Recreation Centre (Phil Renkin), Two Rocks.

Move for Life: one hour low intensity group fitness program utilising light weights and chair exercises designed for people over the age of 60. Participant cost per class is $4.00.

Move for Fitness: one hour moderate intensity group fitness program that utilises heavier weights than Move for Life and ends with a cardio component. A crèche service is available for this class. Participant cost per class is $4.00 and $3.00 for crèche.

Both classes run twice a week as part of four, 11 week terms and provide a local, affordable and convenient service for local seniors, unemployed, shift workers and stay at home parents.

At present, the City funds an external fitness instructor to deliver both programs, with three City staff operating the crèche. The City receives income generated from both classes and crèche. The City manages room bookings and promotion of the programs. As this is currently a City managed program, no fee waiver is applicable for room use.

Currently both the Move for Life program for over 60’s and Move for Fitness program experience high attendance with the over 60’s class averaging 16 – 20 attendees per session, the over 18’s class averaging 10 – 12 people per session, and 6 – 8 children in the crèche. Last financial year, there were over 2,500 attendances at fitness classes, and 600 children attendances within the crèche facility as part of the Two Rocks program.

Below is a breakdown of the City’s operational costs for the current Two Rocks programs.

Table 1:

Item	Detail	Amount
In-kind room provision	Includes both Function Room for fitness sessions and Meeting Room for crèche. Function Room - $29.50 p/hour Meeting Room - $22.40 p/hour	$11,500 per annum
Crèche Worker salary	3 crèche workers. Crèche worker 0.10 FTE each or $5,509.80 p/year.	$16,529 per annum
Facilitator contractor costs	6hrs p/week x 48 weeks @ $60.00 p/hour (plus administration time)	$17,280 per annum
Administration support	In-kind salary and on costs – 0.1 Health Promotion Officer FTE	$7,500 per annum
Less Income	Income received from participants fees	- $8,360 per annum (average)
Total		$44,449 per annum

Fitness Program Review

In 2016/17, the City undertook a review of the current fitness programs offered from the Phil Renkin Centre and within Two Rocks to identify future operating models.

The review highlighted:

· There are no gym or fitness centres in Two Rocks. The closest is located in Yanchep however does not offer a crèche or an over 60’s program.

· Local parks and the Yanchep Community Centre host a number of small businesses that run specific programs such as Yoga, Zumba and Bootcamp but classes do not offer the weight training and functional movement of current programs, and are more expensive than the City’s fitness programs.

· The provision of crèche and low cost programs in Two Rocks are vitally important;

· Participants did not support a self-managed, volunteer operated crèche;

· Potential for the City to lower operational costs and facilitation requirement by transitioning programs to a local business owner / instructor;

· Ability to identify an appropriate local fitness instructor via an Expression of Interest process who would manage core operations of the program;

· The City may need to continue in-kind support via room hire and crèche, due to no other crèche services operating in the far north of the City;

· In-kind room hire for fitness classes at Phil Renkin would enable costs for participants to remain low, while making the initiative financially viable for an external provider, thereby assisting a sustainable transition process / model.

Detail

The following operating models were investigated as a result of the review process:

· Option One – The City retain existing delivery model;

· Option Two – The City ceases program delivery;

· Option Three – The City transitions the program to an external business without in-kind room hire and crèche support;

· Option Four – The City transitions the program to an external business with City room hire and crèche in-kind support.

Proposed Model

To enable the City to lower its operational costs, retain levels of service, and provide a local business opportunity, Option Four is the proposed future operating model. To enhance sustainability and longer term benefits of this model, transition to an external local business / instructor with in-kind support is proposed to be delivered over two stages.

Stage One (January 2018 – January 2019)

Stage one involves continued City support of the Two Rocks fitness program with ongoing crèche staffing resource and in-kind facility hire for both Function Room (program room) and Meeting Room (crèche room) for a period of 12 months. All participant bookings, enquires, income collection and class facilitation will be transferred to the successful business / instructor identified through an Expression of Interest (EOI) process. The program outcomes will be reviewed after 12 months to evaluate its effectiveness and any required changes prior to stage two commencing.

The EOI is expected to be released November 2017, pending facility waiver endorsement by Council, and be for a two year period.

The table below highlights the cost breakdown of stage one of the transition proposal.

Table 2:

Item	Detail	Amount
In-kind room provision – Both rooms	Includes both Function room for fitness sessions and Meeting Room for crèche. Function Room - $29.50 p/hour Meeting Room - $22.40 p/hour	$11,500 per annum
Crèche Worker salary costs	x3 Crèche Workers. Crèche worker 0.10 FTE each or $5,509.80 p/year	$16,529 per annum
Administration in-kind	In-kind salary and on costs – 0.05 Health Promotion Officer FTE	$3,750 per annum
Total		$31,779 per annum

Stage Two (January 2019 – January 2020)

Stage two of the transition model would involve the City providing in-kind contributions to the crèche room (Meeting Room) and crèche service provision only, with the instructor taking on board Function Room booking and hire costs.

Stage two would commence after the initial 12 month review period finished (from January 2019), and remain in place for a further 12 months (to January 2020). During the latter part of the Stage Two period, the program operating model would again be reviewed to inform the decision making process about its future state.

It is anticipated that by the end of Stage Two, the business model would have more capacity to stand alone, or other complementary fitness based programs would be available within the Two Rocks area thereby reducing the requirement for the City to be the service provider.

The Table below highlights the cost breakdown of the stage two transition proposal.

Table 3:

Item	Detail	Amount
In-kind room provision – Crèche room only	The meeting room $22.40 p/hour; used x2 hrs per program = 4hrs p/week x 48 weeks.	$4,300 per annum
Crèche Worker salary costs	x3 Crèche Workers. Crèche worker 0.10 FTE each or $5,509.80 p/year	$16,529 per annum
Administration in-kind	In-kind salary and on costs – 0.05 Health Promotion Officer FTE	$3,750 per annum
Income for Room Hire	Function Room hire fee income - for fitness classes paid by Instructor	- $7,200 per annum
Total		$17,248.80 per annum

Consultation

A participant survey was conducted in 2016 to gauge program satisfaction, potential future delivery options, pricing, importance of crèche and indoors format, and awareness of other local services. The findings from this survey and associated investigations were used to inform the proposed transition model.

At the latter part of Stage One and Stage Two, the City will conduct further engagement activities of key stakeholders, to inform model refinements and future directions.

Comment

The importance of supporting local jobs, smart business and healthy and active people has been highlighted in the City’s Corporate Business Plan 2017/18 to 2021/22 (CBP). Supporting this arrangement will contribute towards the achievement of these objectives, while ensuring provision of a much needed service within the Yanchep / Two Rocks community.

The City will request that the successful local business / instructor acknowledge the support provided by the City via use of the City logo on promotional materials. The successful business will also be required to provide evidence to the City of program statistics, outputs and outcomes achieved through service delivery. This data will also be used as part of the review and refinement processes.

The City will be continuing the current service delivery model until the beginning of January 2018, from which it is intended that the transition model will commence.

Statutory Compliance

As the fee waiver component of the proposal is $11,500 for Stage One and $4,300 for Stage Two, and is over the $1,000 CEO delegation limit, a majority decision from Council is required pursuant to the Local Government Act 1995 and the Donations, Sponsorships and Waiver of Fees and Charges Policy.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“1 Society

1.1 Healthy and Active People

1.1.1 Create opportunities that encourage community wellbeing and active and healthy lifestyles”

Risk Management Considerations

Risk Title	Risk Rating
CO-O17 Financial Management	Moderate
Accountability	Action Planning Option
Executive Management Team	Manage

Risk Title	Risk Rating
CO-O20 Productive Communities	Moderate
Accountability	Action Planning Option
Director Community & Place	Manage

The above risks relating to the issues contained within this report have been identified and considered within the City’s Corporate risk register. Action plans have been developed to manage these risks to improve the existing management systems.

Policy Implications

Expressions of Interest will be invited in accordance with the requirements of the City’s Purchasing Policy and Request for Tenders and Expressions of Interest Management Procedure.

The fee waiver request does not adhere to the City’s Donations, Sponsorships and Waiver of Fees and Charges Policy as the successful business will be collecting a minimum user entry fee from the participants. Council can still decide to waiver the facility hire fee in accordance with the Local Government Act 1995, section 6.12 that states a local government may waive or grant concessions in relation to any amount of money which is owed to the local government.

Financial Implications

The table below highlights the cost comparisons between the current delivery model, proposed stage one transition and proposed stage two transition.

Table 4:

Item	Current delivery model	Stage One Transition (Jan 2018)	Stage Two Transition (Jan 2019)
Facilitator / contractor expenses	$17,280 per annum	Nil	Nil
In-kind room provision	$11,500 per annum (Includes both Function room and Meeting Room)	$11,500 per annum (Includes both Function room and Meeting Room)	$4,300 per annum (Meeting Room only)
Crèche Worker salary costs	$16,529 per annum (x3 crèche workers)	$16,529 per annum (x3 crèche workers)	$16,529 per annum (x3 crèche workers)
Administration in-kind costs	$7,500 per annum	$3,750 per annum	$3,750 per annum
Minus City income	- $8,360 per annum (Average participant income)	Nil	- $7,200 (room hire fees)
Total	$44,449 per annum	$31,779 per annum	$17,248.80 per annum

There is no operational budget allocated towards ongoing external contractor expenses from January 2018. Therefore, if Council do not support a fee waiver for room hire fees as outlined above, this may result in difficulty contracting an instructor (due to decreased profit capability), or result in increased fees to participants due to increased room booking / program costs being passed on by the business owner.

At present, the City recoups all income generated from the programs and crèche. The transition proposal will allow the successful business to receive and keep the income in lieu of the City paying contractor fees. The change in income has been reflected in the above table.

As the Two Rocks Fitness Program has been a City managed initiative to date, there has been no previous requirement to seek fee waivers for the model, however if this program transitions to an independent (for profit) contractor, and the City’s involvement significantly decreases, then a fee waiver endorsed by Council is required.

Should the City fail to successfully engage a business to undertake the new model, the City would continue to provide the current level of service for a further 12 months (to January 2019) while other options are explored.

Voting Requirements

Absolute Majority

Recommendation

That Council:-

1. NOTES the proposed Two Rocks fitness program transition model;

2. NOTES that the Administration will continue to provide the current service delivery until January 2018, at which point it is intended that the transition model will commence.

3. APPROVES BY ABSOLUTE MAJORITY to waiver the Facility Hire fees in accordance with section 6.12 of the Local Government Act 1995 for both:

a) Stage One (January 2018 – January 2019) transition model for Function Room (program room) and Meeting Room (crèche room) at the Phil Renkin Centre to the value of $11,500; and

b) Stage Two (January 2019 – January 2020) transition model for Meeting Room (crèche room) at the Phil Renkin Centre to the value of $4,300.

4. NOTES further review of the transition model after the completion of Stage One to occur in December 2018, prior to Stage Two commencing.

Attachments: Nil

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 162

Property Services

3.14 Proposed Lease to Axicom Pty Ltd over Portion of Lot 9023 Marmion Avenue, Clarkson, for Telecommunication Purposes

File Ref: 4606 – 17/308187

Responsible Officer: Director Corporate Strategy and Performance

Disclosure of Interest: Nil

Attachments: 1

Issue

To consider a proposed new lease to Axicom Pty Ltd over a portion of Lot 9023 (1700K) Marmion Avenue, Clarkson.

Background

Lot 9023

Lot 9023 (1700K) Marmion Avenue, Clarkson (commonly known as “Tamala Park”) is comprised in Certificate of Title Volume 2931 Folio 346 and is owned jointly by seven local governments (“Owner Councils”) as tenants in common, each with its own allotment of shares, as shown in the following table:-

Local Government	Portion of Ownership of Lot 9008
City of Stirling	4/12
City of Joondalup	2/12
City of Wanneroo	2/12
City of Perth	1/12
City of Vincent	1/12
Town of Cambridge	1/12
Town of Victoria Park	1/12

Historical telecommunication’s tower lease

There is a telecommunication’s tower situated on an approximately 150m² fenced off portion of Tamala Park (Attachment 1 refers) which is used as a telecommunication’s mobile telephone coverage base station. Since 1 November 1998, the tower has been the subject of a lease arrangement between the owners of Tamala Park at the time and Vodafone Network Pty Ltd (the lessee at the time and owner of the tower). There have been changes to the lease since 1998 which have been presented to Council for approval on each occasion during the course of the lease. Those changes have taken several forms, such as an assignment of the lease from Vodafone Network Pty Ltd to Crown Castle Australia, deeds of variations and changes associated with the ownership of Tamala Park (for example the City of Joondalup dividing into two separate councils to form the City of Joondalup and the City of Wanneroo, and in 2001, the City of Perth’s original interest in the land was divided equally between the City of Perth, the Town of Cambridge, the Town of Victoria Park and the City of Vincent).

The initial lease was for a five year term with the option for two further terms of five years each. The options were exercised at the appropriate times and the lease expired on 31 October 2013. The lease, however, included a six monthly holdover provision which the Owner Councils at the time agreed (by way of seeking approval from their respective Councils – CB09-04/14 refers in respect to the City of Wanneroo report) should be implemented to allow time for the essential terms of a proposed new lease be negotiated.

The six month holdover period expired on 30 April 2014, however, the lessee (which is now Axicom Pty Ltd) continues to occupy the site and pay the Owner Councils an aggregate annual rent of $60,000.

Land development to the north (Catalina Estate)

The Catalina Estate to the north is being developed for residential lots. However, this will not be affected by the proposed lease. The nearest house within the Catalina Estate is located approximately 650 metres north of the tower.

Lessee history

Since the expiry of the six month holdover on 30 April 2014, the lessee (Crown Castle Australia) was purchased by Axicom Pty Ltd which, as referred to earlier in this report, continues to operate the site and pay rent.

Detail

Discussions and negotiations since 2013

Discussions have been ongoing between the parties since 2013 (prior to the expiry of the lease) in an effort to reach agreement to essential terms and progress the matter to each of the respective Owner Councils for approval to enter into a new lease. As mentioned earlier, the six month holdover clause was implemented so that the parties could continue to negotiate the essential terms.

As part of the negotiation process, officers of the Owner Councils met on 16 July 2013 to discuss terms for a proposed new lease including a licenced valuation sought on 20 May 2013. It was also agreed that the City take on the responsibility to negotiate the lease (on behalf of the Owner Councils) going forward.

As part of the negotiation over a proposed new lease, Administration sought the 20 May 2013 market valuation for the rent from licenced valuer Burgess Rawson for the 150m² area currently occupied by Axicom Pty Ltd. The recommended rent at that time was $60,000 per annum based on the lessee’s (Crown Castle Australia) circumstances at the time.

The Owner Councils agreed to the following essential terms (which were presented to Crown Castle Australia on 19 December 2013), subject to Council approval from each of the seven owners:-

Term:	Five (5) years with one five (5) year option
Rent:	$60,000.00 plus GST (based on 3 telecommunication carriers operating from the site)
Rent Review:	Rent to be increased by 5% annually
Further Rent Review:	Rent to be reviewed after the initial term of 5 years
Commencement Date:	1 May 2014

The lessee initially challenged the proposed $60,000 rent and sought its own valuation from McGees Property. McGees Property's valuation recommended an annual rent of $45,000. The Owner Councils rejected the rent proposed by McGees Property on the basis that it is lower than the agreed rent. Crown Castle Australia and the Owner Councils eventually reached agreement to the above essential terms, subject to final delegated authority from Crown Castle Australia’s board which was subsequently granted.

Draft lease

Whilst the essential terms as outlined above were agreed (with subsequent advertising undertaken in order to comply with section 3.58 of the Local Government Act 1995 in respect to the advertising of the disposition), there have been extremely protracted delays in the preparation of the draft lease since then which have been outside the City’s control. In addition, it has taken a considerable length of time for the parties to reach agreement to the contents of the draft lease (beyond the essential terms) taking into account the sale of Crown Castle Australia to Axicom Pty Ltd that took place during this process requiring agreeance from the new incoming party to the draft lease.

Revised proposed essential terms

Due to the delays as described earlier, the Owner Council’s sought a new licenced rental valuation on 10 March 2017 (and has received written confirmation from the valuer on 8 September 2017 that the 10 March 2017 valuation still applies) to determine the current market rent applicable.

The following revised proposed essential terms have been presented (and agreed by all the parties) to Axicom Pty Ltd, subject to formal approval by the Owner Councils Elected Members:-

Term:	Ten (10) years from Commencement Date
Further Term:	Nil
Commencement Date:	1 November 2017
Rent:	$70,000.00 per annum plus GST and outgoings (based on the licenced valuation)
Restriction on maximum height of the lessee’s tower:	45 metres
Occupation Fee (additional fee in addition to annual rent which will be applicable if further major telecommunication carriers co-locate to the site over and above those already in situ on the tower):	$5,000.00 plus GST.
Rent review:	Rent will be incremented annually through the Term at a rate of 5%
Permitted Use:	Telecommunications facility
Termination of Lease:	Lessee may determine the Lease at any time by giving not less than twelve (12) month’s prior written notice to the Lessor.

Should Council approve the proposed new lease, the City (on behalf of the Owner Councils) will be required to advertise the proposed disposition in accordance with the requirements of Section 3.58 of the Local Government Act 1995.

Consultation

The Owner Councils have been consulting amongst themselves throughout the negotiation process via correspondence and through various meetings and have agreed to the revised essential terms of the proposed new lease as detailed above, subject to approval from each Council.

Comment

The Owner Councils support the proposed new lease to Axicom Pty Ltd and each of the seven owners will revert to their respective councils for formal approval to the proposed lease.

Statutory Compliance

Section 3.58(3) of the Local Government Act 1995 states that a local government can dispose of property (including leasing) other than by public tender or auction if, before agreeing to dispose of the property:-

“(a) it gives a local public notice of the proposed disposition –

(i) describing the property concerned; and

(ii) giving details of the proposed disposition; and

(iii) inviting submissions to be made to the local government before a date to be specified in the notice, being a date not less than 2 weeks after the notice is first given.”

Section 3.58(4) provides what details are required under (a)(ii) above:-

“(a) the names of all other parties concerned; and

(b) the consideration to be received by the local government for the disposition; and

(c) the market value of the disposition as ascertained by a valuation carried out not more than 6 months before the proposed disposition.”

Given that the proposed lease is not considered an exempt disposition for the purposes of Section 3.58 a local public notice is required. Notwithstanding this and given the subject matter also affects other councils, it is proposed that a public notice will be placed in the West Australian instead given its metropolitan area distribution.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“2 Economy

2.2 Strategic Growth

2.2.5 Attract investment development and major infrastructure”

Risk Management Considerations

Risk Title	Risk Rating
Stakeholder Relationships	Moderate
Accountability	Action Planning Option
Chief Executive Officer	Manage

The above risk relates to the issue contained within this report has been identified and considered within the City’s Strategic risk register. Action plans have been developed to manage this risk to support existing management systems.

Policy Implications

In accordance with the City's Leasing Policy, this lease is considered 'commercial' and the terms are therefore by negotiation (at market value).

Financial Implications

The proposed rent of $70,000.00 per annum (plus GST), in aggregate, will be distributed to each of the seven owners in proportion with each local government’s portion of ownership. The City's portion (2/12ths) will therefore be $11,666.66 plus GST for the first year of the term of the lease.

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. AGREES in principle to the leasing of the site currently occupied by Axicom Pty Ltd on a commercial basis for a term of ten (10) years, subject to the requirements of Section 3.58(3) of the Local Government Act 1995 and the approval from the City of Joondalup, City of Perth, City of Stirling, Town of Victoria Park, City of Vincent and Town of Cambridge;

2. AUTHORISES the Chief Executive Officer to publish a local public notice of its intention to enter into the Lease as per 1 above;

3. In the event there are no submissions, NOTES the Chief Executive Officer, under delegated authority, can approve the lease; and

4. NOTES that if any submissions or comments are received, a further report will be presented to Council for consideration.

Attachments:

1 ⇩.

Axicom Pty Ltd - aerial plan of lease area

17/312828

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 168

3.15 Proposed Lease to Telstra Corporation Limited over Portion of 30 Tranquil Drive, Carramar for Telecommunication Purposes

File Ref: 4320 – 17/312975

Responsible Officer: Director Corporate Strategy and Performance

Disclosure of Interest: Nil

Attachments: 1

Issue

To consider a proposed new lease to Telstra Corporation Limited over a portion of 30 Tranquil Drive, Carramar.

Background

30 Tranquil Drive (Lot 11) (“Land”), Carramar is owned freehold by the City and is comprised in Certificate of Title Volume 2104 Folio 198. The Land forms part of the City’s Carramar Public Golf Course with the remainder of the course situated on Crown Reserve 46459 (61 Golf Links Drive, Carramar).

Aurecon Group, which acts for Telstra Corporation Limited (“Telstra”), initially approached the City in March 2015 enquiring about leasing a portion of the Land for telecommunication purposes on behalf of its client. Aurecon Group advised that Telstra is looking to relocate its existing site on Flynn Drive due to road widening works being undertaken by the City.

Telstra identified a number of properties within the area that it believed may be suitable for a base station site from a technical and environmental perspective. One of the identified sites (Attachment 1 refers) is situated on the Land adjacent to Tranquil Drive, Carramar and is accessible via a gate located near the site.

The City provided Telstra access to the site so that it could assess the feasibility of the site in more detail. Following preliminary investigations, Telstra has determined the site as suitable to construct a 25m monopole tower with a headframe and equipment shelter at its base. Telstra has also advised it will require a ground footprint area of 70m² to establish a fenced off area for the tower.

Telstra, through its agent, is aware that Council approval is required to any lease and will also need to seek the necessary planning approvals as part of the process. As part of the planning approvals process, the proposal would need to satisfy the requirements of Local Planning Policy 2.5 Telecommunications Infrastructure.

Detail

The City and Aurecon Group have been in lengthy discussions over the essential terms since its initial enquiry (on behalf of Telstra) to potentially leasing the subject portion of the Land.

As part of those discussions, the City sought a licenced rental valuation in January 2016 (and has written confirmation dated 1 June 2017 that the valuation in 2016 continues to apply) from McGees Property which determined a rent of $25,000.00 per annum exclusive of GST plus outgoings where there is only one telecommunication user (single user) being considered. Telstra has confirmed it does not contemplate accommodating any other telecommunication provider on the tower, however, if it does, a market rent will be determined at the time and Telstra will seek prior approval from the City if it is considering other users for the site.

As a result of the negotiations, the parties have now reached agreement to the following essential terms for a proposed lease, subject to Council approval, and compliance with applicable legislation (including section 3.58 of the Local Government Act 1995). In addition, the lease is also subject to Telstra securing the relevant development and building application approvals at its own cost. The planning application will likely require the City to undertake community consultation in accordance with the City’s “Planning and Sustainability Local Planning Policy 2.5: Telecommunications Infrastructure”:-

		Comments
Term	5 years
Options	2 x five (5) year options with a break clause applicable to the second five (5) year option period whereby the City, in consideration of the second option, will include a break clause with 12 months’ notice, allowing the City to terminate early should it require the site for any reason.	Telstra has agreed to the break clause with 12 months’ notice to apply.
Rent	$25,000 per annum plus GST plus outgoings.	Based on a single user basis i.e. Telstra does not foresee other telecommunication providers operating from the site. Telstra has been advised that whenever a new additional telecommunication carrier (except if it is a related body corporate) is being considered in the future for the site, this will attract an additional rent per carrier and the rent will be determined by a market rental valuation at the time. The additional rent will be dealt with in the assignment clause and consent will be required for all matters except dealings with related body corporates.
CPI Review	Annual reviews to 3% or CPI (whichever is the greater) to apply during the term and any option periods except when the Market Rent Review is conducted.	Telstra has agreed and the City has noted the method for dealing with CPI Review.
Market Rent Review (MRR)	To be undertaken 6-9 months prior to the commencement date of each option term, and that the date for exercise of the options is 3-6 months prior to the commencement date of the relevant option term.	Telstra has agreed to the MRR at the beginning of each option period. The cost of meeting the MRR is to be shared equally, split between the City and Telstra.
Rates, Taxes and Outgoings	Lessee responsible for all rates (including Council rates), taxes, assessments, impositions and outgoings for water, electricity, gas, telephone, whether billed directly or otherwise.	Electricity will likely be the only utility required to be charged. There is currently no submeter in place at the subject site and the City has proposed to Telstra that Telstra install a submeter, at Telstra’s cost, to account for the usage directly attributable to the proposed tower. Telstra has proposed (and the City has agreed) that the following wording be used in the lease documentation: “The Lessee will use reasonable endeavours to install separate metering for the Services to the Premises if requested by the Lessor, and it is reasonable able and permitted by any relevant authority to do so. The Lessee will bear the cost of separate metering under this clause and must pay to the suppliers all charges for the separately metered Services that are consumed or used by the Lessee.” The City understands that the installation of the submeter can proceed, but notes that this will also require Western Power’s agreement.
Insurance	Lessee responsibility for insuring the tower and associated telecommunications equipment. Public liability ($20M or such greater amount required by the City, for any one instance) – Lessee responsibility.	Telstra has advised that it self-insures for property damage and has a global insurance policy for public liability. The following insurance clauses are required to be included in the lease: “For so long as Telstra Corporation Limited (or its corporate successor) is the Lessee, the Lessor acknowledges that the Lessee will self-insure the respective rights and interests of the Lessor and the Lessee for damage which must be repaired by the Lessee under the Lease.” and “For so long as Telstra Corporation Limited (or its corporate successor) is the Lessee, the Lessor acknowledges that the Lessee has a global insurance policy which includes public liability insurance in excess of $20 million and which includes the Lessor as an insured to the extent required in the Lease.” The City’s view on the above is that the proposed clauses are acceptable, subject to the advice of the City’s solicitors in the course of preparing the draft lease. The City notes that the global insurance requirement will be a special condition to apply only to Telstra Corporation Limited and its corporate successors – the standard insurance requirement will apply to any assignees, sublessees and licensees.
Access	Telstra will require access to the site 24 hours a day, 7 days a week during the term, any option period and any holding over period.	The City has agreed to this
Maintenance	Lessee responsibility	Telstra will be responsible for the tower and associated infrastructure and equipment in its entirety.
Statutory Compliance	Lessee responsibility

In addition to the above proposed essential terms, Telstra will contribute to the City’s cost in preparing the draft lease capped at $2,000 plus GST.

The City is bound by the Local Government Act 1995 regarding the disposal (lease) of property and, therefore, the City will be required (should Council approve to entering into a lease) to advertise the lease details (such as the parties concerned and the market rental value) in the local paper.

If the lease is required to be registered, any associated costs including costs to remove any such registration from the Certificate of Title at the end of the term (or to withdraw any caveat lodged by Telstra) will be borne by Telstra.

Should the lease be approved, Telstra will appoint its surveyors to undertake a site survey.

Consultation

The City has been consulting with Aurecon Group for some time and has reached agreement on the proposed essential terms as outlined earlier in this report.

There is also likely to be consultation undertaken with local residences in the area as part of the planning approval process.

The City’s operator of the golf course, which leases the pro shop from the City and runs the golf course on the City’s behalf (i.e. collects revenue from the patrons of the golf course) was consulted early in the negotiations that the City was considering the subject lease. The golf course operator did not have any issues with the matter progressing as it will not have any impact on the day to day operation of the course.

Other relevant sections within Administration are aware of the proposed potential lease and have no issues with the matter progressing to Council given the proposed location is close to the perimeter of the golf course and therefore considered to have no impact on the maintenance of the golf course as a whole.

Comment

Administration supports the proposed new lease to Telstra Corporation Limited as it will provide an annual revenue stream to the City of $25,000 per annum plus GST.

Statutory Compliance

“(a) it gives a local public notice of the proposed disposition –

(i) describing the property concerned; and

(ii) giving details of the proposed disposition; and

(iii) inviting submissions to be made to the local government before a date to be specified in the notice, being a date not less than 2 weeks after the notice is first given.”

Section 3.58(4) provides what details are required under (a)(ii) above:-

“(a) the names of all other parties concerned; and

(b) the consideration to be received by the local government for the disposition; and

(c) the market value of the disposition as ascertained by a valuation carried out not more than 6 months before the proposed disposition.”

Given that the proposed lease is not considered an exempt disposition for the purposes of Section 3.58 a local public notice is required.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“2 Economy

2.2 Strategic Growth

2.2.5 Attract investment development and major infrastructure”

Risk Management Considerations

Risk Title	Risk Rating
Stakeholder Relationships	Moderate
Accountability	Action Planning Option
Chief Executive Officer	Manage

Policy Implications

The lease has been negotiated In accordance with the City's Leasing Policy. It is considered ‘commercial’ and the terms are therefore by negotiation (at market value).

Financial Implications

The City will receive an annual income of $25,000.00 per annum (plus GST) incremented annually to CPI or 3% (whichever is the greater). In addition to CPI increments, the rent will also be reviewed to market at defined stages as outlined in the essential terms earlier in this report.

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. AGREES in principle to the leasing of the 70m² site to Telstra Corporation Limited on a commercial basis for a term of five (5) years with two further options of five (5) years each, subject to the requirements of Section 3.58(3) of the Local Government Act 1995;

2. AUTHORISES the Chief Executive Officer to publish a local public notice of its intention to enter into the Lease as per 1 above;

3. In the event there are no submissions, NOTES the Chief Executive Officer, under delegated authority, can approve the lease; and

4. NOTES that if any submissions or comments are received, a further report will be presented to Council for consideration.

Attachments:

1 ⇩.

Telstra Corporation Limited - proposed location of tower at 30 Tranquil Drive Carramar

17/312963

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 175

3.16 Proposed commercial Lease of Lot 502, Jindalee Boulevard, Jindalee (Jindalee Beach Kiosk) to Shack Holdings Pty Ltd for a term of five (5) years

File Ref: 4603 – 17/283703

Responsible Officer: Director Corporate Strategy and Performance

Disclosure of Interest: Nil

Attachments: 1

Previous Items: CB02-11/12 - Proposed Sub-Lease of Jindalee Beach Kiosk, Crown Reserve 20561, Jindalee - Ordinary Council - 13 Nov 2012 7.00pm

CB04-02/14 - Proposed Sub-lease to Surf Life Saving Western Australia (Inc.), portion of Reserve 20561, Lot 502, Jindalee Boulevard, Jindalee (Jindalee Beach Kiosk) - Ordinary Council - 04 Feb 2014 7.30pm

Issue

To consider the proposed Commercial Lease of a portion of Crown Reserve 20561, Lot 502 Jindalee Boulevard, Jindalee to Shack Holdings Pty Ltd for a term of five (5) years.

Background

Land

The Jindalee Beach Kiosk (the Building) is located on a 563m² portion of Crown Reserve 20561, Lot 502 on Deposited Plan 69500 being the whole of the land comprised in Certificate of Title Volume LR3160 Folio 642 (Lot 502) (Attachment 1 refers).

Lot 502 is a category “C” reserve, vested in the City for the purpose of “Recreation & Purposes Incidental thereto”, under a Management Order with power to lease for a term not exceeding 21 years, subject to the consent of the Minister for Lands.

Lot 502 (the Premises) is currently zoned as "Parks and Recreation" under the Metropolitan Region Scheme and "Regional Parks and Recreation" in the City of Wanneroo District Planning Scheme No.2.

Building

The Building (Attachment 1 refers) was designed in 2010 in consultation between the City and the project manager of the Jindalee area, Heath Development Company (HDC). It is a freestanding rammed earth and iron roof building comprising:

· kiosk/commercial kitchen;

· public ablutions;

· general area (predominantly used for storage);

· service/bin room; and

· store yard.

Carine Nominees Pty Ltd, Belgravia Pty Ltd and Penhurst Nominees Pty Ltd (the Existing Lessee) are the owners and developers of the Building and funded its construction. HDC is the project manager for the Jindalee Beachside Estate and has the authority to obtain all necessary approvals on behalf of the Lessee under HDC's project management agreement.

In addition to the Building, the Premises also contains two fixed tensile membrane umbrellas, a fixed pizza oven/servery area oven and non-fixed tables and chairs for patrons.

Agreement for Lease & Land Lease

At its Ordinary Meeting of 14 December 2010 (CS12-12/10), Council resolved to allow the Existing Lessee to construct the Building pursuant to an Agreement for Lease (AFL) and then Lease Lot 502 from the City for a term of five (5) years with a five (5) year option.

The Building was leased under an AFL as vacant land with the Existing Lessee responsible to construct and develop the Building. Practical completion of the Building occurred on 17 December 2012 and resulted in the commencement of the land Lease agreement between the City and the Existing Lessee. At the expiration of the land Lease, the Existing Lessee is required to hand back the Building to the City for management. Up until that time, the Existing Lessee is responsible for full maintenance of the land and the Building (including structural maintenance).

The initial five (5) year Lease term is scheduled to expire 16 December 2017. The Lease contains an option for a further five (5) year term commencing 17 December 2017 and expiring 16 December 2022, subject to the Existing Lessee providing the City with written notice not less than three (3) months prior to 17 December 2017.

The Existing Lessee advised the City in writing on 25 May 2017 that it will not exercise its five (5) year option. It further advised the City in writing on 22 June 2017 that as of 16 December 2017 it would:

· vacate the Premises and the Building;

· provide the City all keys for the Premises and the Building;

· provide the City the combinations to any locks, safes or vaults in the Premises and the Building; and

· leave the Premises and the Building in a condition that is:

o clean;

o rubbish free; and

o consistent with full compliance by the Existing Lessee with every tenant obligation.

For all intents and purposes, the City will take control of the Building and the Premises as of 16 December 2017.

Sublease

The City is currently party to two Subleases within the Building:

1. Hutton Holdings WA Pty Ltd (Chippy’s Fish Café)

In March 2012, the Existing Lessee wrote to the City requesting consent to Sublease a 54.15m² portion of the Building comprising the kiosk, dry-store and utility area to Hutton Holdings W.A. Pty Ltd (Hutton), trading as Chippy’s Fish Cafe. Subsequently, Council at its Ordinary Meeting of 13 November 2012 (CB02-11/12) resolved to Sublease a 54.15m²portion of the Building to Hutton for a term of four (4) years and three hundred and sixty four (364) days commencing 17 December 2012, together with an option to renew for a further five (5) years for the purpose of a cafe and/or kiosk.

The Sublease to Hutton is scheduled to expire 16 December 2017. The renewal option period no longer applies as the Existing Lessee (Sublessor) has declined to exercise the five (5) year option contained in the land Lease (Head Lease).

2. Surf Life Saving Western Australia (Inc.)

Part of the initial Building design negotiations between the City and the Existing Lessee revolved around portion of the Premises (General Area (38.7m²)) and an access lay-up area (27.74m²)) being set aside for future multi-purpose use, including the potential for use or part use by Surf Life Saving Western Australia (Inc.) (SLSWA).

SLSWA advised the City in writing on 11 April 2013 that it was interested in utilising a portion of the Premises to store equipment and to support current and future operations along the coastline.

Council, at its Ordinary Meeting of 4 February 2014 (CB04-02/14) resolved to Sublease a portion of the Premises to SLSWA. The Sublease commenced on 1 January 2015 for the purpose of administrative & research monitoring, incident control centre, storage and training and is scheduled to expire 15 December 2017 with an option to renew for a further five (5) year term.

The renewal option period is no longer applicable as the Sublessor has declined to exercise the five (5) year option contained in the Head Lease.

Agreement Expiration

The Head Lease will expire 16 December 2017. Accordingly, the Subleases with Hutton and SLSWA will expire 16 December 2017 and 15 December 2017 respectively.

The City will take control of the Building and the Premises and assume asset replacement budgeting therein. Unless a new lessee is appointed, the City will be required to assume all maintenance of the Premises.

Proposal

The City contacted Hutton on 27 June 2017 advising that its Sublease will expire 15 December 2017. Hutton subsequently verbally advised the City that it wished to enter into a new five (5) year Lease with the City, commencing 17 December 2017.

Hutton and its “Chippy’s” group was established in 2003. It is a family owned business brand with fish and chip shops exclusively located in the City, namely Carramar and Butler. The Building at Jindalee offers a variety of breakfast, lunch and dinner options with community engagement and interaction a theme of the business (including live entertainment and family focused events).

Hutton has advised the City that for the purpose of the proposed new Lease, it has restructured its business and registered the following company name with the Australian Securities and Investments Commission, Shack Holdings Pty Ltd (Shack).

Accordingly, Administration proposes to Lease not only the existing Sublease area but also the remainder of the Building to Shack as well (total Lease area 184m² approximate). In addition, Shack will also assume responsibility for the Licence Area (271m²) and have the benefit of the Common Area (91m²) to aid deliveries and the like (Attachment 1 refers).

Further planning approval will be required if the use of the portion of the building, currently leased by SLSWA, has not been previously approved as part of the kiosk. As the subject site is on land reserved under the Metropolitan Region Scheme, any planning application is to be determined by the Western Australian Planning Commission.

The SLSWA Sublease will expire 15 December 2017 and will not be renewed. SLSWA has never utilised the Building and wrote to the City on 17 August 2017 advising that it has no future requirement for it, predominantly due to its interim Surf Life Saving facility at Alkimos.

Detail

A proposed new five (5) year Lease commencing 17 December 2017 has been negotiated with Shack.

The Shack proprietor was involved with the concept of the Building from the outset of the Building design, planning and construction phase. It is familiar with the Premises, customers and the local residents and has the necessary business acumen to continue to service patrons and meet the requirements of the proposed new Lease

Under the terms of the City’s Leasing Policy approved by Council, Shack is categorised as a “commercial” entity, being a non-exempt disposition under the Local Government Act 1995. In accordance with the Leasing Policy, annual rent is to be negotiated at market rate.

A market valuation was sought from a licensed valuer to establish the current market rental of the Premises as per required legislation. A valuation report was provided to the City by a licenced valuer on 23 August 2017 and a rate of $149/m² per annum net over the Lease area of 184m² was suggested inclusive of the right to use the Licence and common areas. This equates to $27,500 per annum net based on a lettable area of 184m².

The licensed valuer concluded that the current market value of the Building (and taking into consideration the benefit of the Licence and Common Area) is $27,500 (plus GST) per annum plus outgoings with annual CPI review.

It is therefore proposed, subject to Council approval and the requirements of the Commercial Tenancy (Retail Shops) Agreements Act 1985 (CTA) being satisfied, to enter into a “private treaty” semi gross Lease arrangement with Shack.

Accordingly, the following essential terms for the proposed CTA Lease have been agreed with Shack and are subject to Council and Minister for Lands approval:-

Leased Premises:	Exclusive use of the Jindalee Beach Kiosk being an area of approximately 184m² (Attachment 1 refers) to Shack Holdings Pty Ltd
Permitted Purpose:	Kiosk and ancillary purposes
Lease Term:	Five (5) years
Commencement Date:	17 December 2017
Lease Commencement Date:	17 December 2017
Lease Rental:	$27,500 (plus GST) per annum plus outgoings and annual CPI review for the 184m²Leased Premises
CPI Review:	Annual increase in accordance with CPI
Bond:	The Lessee will be required to submit a bond of $5,000 which will be held by the City for the full term of the Lease in a non-interest bearing account.
Outgoings:	Lessee responsibility – including (but not limited to) utility connections/outgoings for water, electricity and gas consumption and telephone/broadband use, connection and consumption
Rates & Taxes:	Lessee responsibility – Commercial Council rates and Emergency Services Levy and any other rates, taxes, assessments and impositions
HVAC/Mechanical Services:	Lessee responsibility
Building Insurance:	Lessor responsibility to implement (Lessor to on charge insurance premium to Lessee)
Public Liability Insurance:	Lessee responsibility - $20 million minimum
Other Insurances:	Lessee responsibility - Plate Glass, Workers Compensation, Breakdown Insurance and Property Damage Cover
Cleaning:	Lessee responsibility
Lessee Services:	Lessee responsible for the provision of any special requirements such as telephone and broadband services
Building Maintenance:	Lessee to keep and maintain every part of the inside of the leased premises including all ceiling panels, lighting and electrical installations, doors, windows frames, floor coverings and all other fixtures and fittings in good and substantial repair and condition. The Lessee is responsible for the outer surface of any plate glass and the exterior walls
Cleaning:	Lessee responsibility for Lease and Licence Areas
Grease Trap:	Lessee responsibility
Fit Out (if required):	Lessee responsibility
Signage:	Lessee responsibility
Structural Maintenance:	Lessor responsibility (Lease premises only)
Compliance:	Lessee responsibility
Existing Fixtures, Fittings & Appliances:	Lessee responsibility. The Premises will be leased by the Lessor to the Lessee on an “as is” basis
Food Act and Health Services Assessment:	Lessee responsibility to notify and register with the City the relevant forms and associated fees
Special Conditions:	The Lessor cannot guarantee against interruptions to Quiet Enjoyment. It has the care, control and management of the Premises along with other roads and reserves in the vicinity of the Premises that may require essential works to be undertaken from time to time that may impact on the Lessee’s business. Restrictions (not limited to): · disruption to utilities; · disruption or closure of roads, reserves and road reserves; · pedestrian movement and access; · vehicle movement, access and parking; · vibration and noise; and · dust and dirt. As a result, the City or its agents and contractor works will not be considered as having breached the Lessee’s “quiet enjoyment” of the Premises and the Lessee will not be liable to compensate the Lessee
Licence Area:	Use of an approximate 271m²brick paved external area incorporating the al-fresco area inclusive of two fixed umbrellas and pizza oven/servery area (Attachment 1 refers)
Maintenance of Licence Area:	Lessee responsibility (including structural - Pizza oven/umbrellas )
Building Insurance for Licence Area:	Lessee responsibility (Pizza oven/umbrellas)
Outgoings for Licence Area:	Lessee responsibility
Structural Maintenance of Licence Area:	Lessee responsibility
Common Areas:	Lessee is permitted to use (on a non-exclusive basis) the Common Area during the Building’s standard trading hours and other times as permitted. No tables and chairs are to be located in the Common Area (Attachment 1 refers)

Under the CTA, Shack has the right to trade during whatever time Shack requires. The City cannot compel Shack to open at specific days and times. The ablutions will only be open when Shack is trading.

It is proposed that, subject to Council and Ministerial approval to the indicative Lease terms, formal commercial Lease documentation will be prepared to reflect those terms above and to comply with the disclosure requirements of the CTA.

Consultation

Section 18 of the Land Administration Act 1997 requires the City to obtain Ministerial endorsement to the proposed Lease from the Department of Planning, Lands and Heritage (DPLH) on behalf of the Minister for Lands. Once the Lease has been prepared and is accepted by Shack, Administration will forward the document to the DPLH for its consideration and endorsement.

It is proposed that, subject to Council approval to the proposed Lease, formal commercial lease documentation will be prepared either in-house or by a solicitor and will include the disclosure requirements of the Commercial Tenancy (Retail Shops) Agreements Act 1995.

Comment

Should Council agree to the Lease, given that the proposed Lease is not an exempt disposition, it will be necessary to publish a local notice of the proposal inviting public submissions. Subject to no submissions being received from the advertising process, formal consent to the Lease as outlined in this report is sought from Council.

Should any submissions be received, Administration recommends that no further report is presented to Council due to timeframe considerations and the expiration of the Head Lease and Subleases in mid-December 2017. Administration recommends that the CEO be granted authority to consider and reject any submissions, negotiate private treaty commercial Lease terms and effect any documentation relating to it to enable a timely and expedient resolution. It is anticipated that public expectation is for the Building to remain open to provide a service and the closure of the Building (even for a limited period) is not recommended.

The proposed new Lease of the Building to Shack is supported in the manner outlined in this report. The proposed Lease conditions will protect the City’s interest in the Premises.

Statutory Compliance

The public notice advertisement will comply with the requirements of Section 3.58 of the Local Government Act 1995 with respect to the proposed disposition.

In addition, the proposed Lease tenure complies with the requirement of the CTA whereby a minimum tenure term of five (5) years (including options) is required along with the provision of a Disclosure Statement.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“2 Economy

2.1 Local Jobs

2.1.2 Build capacity for businesses to grow”

Risk Management Considerations

Risk Title	Risk Rating
ST-S12 Economic Growth	Moderate
Accountability	Action Planning Option
CEO	Manage

Risk Title	Risk Rating
CO-O01 Relationship Management	Moderate
Accountability	Action Planning Option
Executive Leadership Team	Manage

Risk Title	Risk Rating
CO-O04 Asset Management	Moderate
Accountability	Action Planning Option
Executive Leadership Team	Manage

Risk Title	Risk Rating
CO-O20 Productive Communities	Moderate
Accountability	Action Planning Option
Director Community & Place	Manage

Policy Implications

The proposed Lease will be negotiated in accordance with the commercial guidelines as outlined in the City's Leasing Policy under private treaty negotiations.

Financial Implications

· The proposed commercial lease will generate an annual income stream to the City of $27,500 (plus GST) per annum. Annual CPI increases will apply throughout the term;

· Commercial valuation to ascertain the current market rent - $1,950 (plus GST) cost to the City;

· Public Notice in the Wanneroo Times and North Coast Times - $1,000 (plus GST) (approximate) cost to the City;

· Any required fit out works and infrastructure upgrades to be at the sole cost of Shack and detailed in the Lease;

· Full cost of any required ventilation, gas, extraction and cool room modification works are to be at the cost of Shack and detailed in the Lease; and

· Whilst it is anticipated that the commercial CTA Lease can be prepared in-house, should timeframes and work constraints delay preparation given the limited timeframe until the expiration of the existing Head Lease and Subleases, a commercial Lease can be prepared by one of the City’s external solicitors - $2,000 (plus GST) (approximate) cost to the City. Note that changes to the CTA in 2013 prohibit lessors from claiming legal expenses relating to the preparation, negotiation or execution of leases and associated documentation.

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. APPROVES, in principle, a commercial Lease of the Jindalee Beach Kiosk, being an approximate 184m²portion of Part Reserve 20561, Lot 502 (99L) Jindalee Boulevard, Jindalee (Attachment 1 refers) to be formalised pursuant to private treaty Lease negotiations with Shack Holdings Pty Ltd, for a term of five (5) years, subject to the requirements of the Commercial Tenancy (Retail Shops) Act 1985 (WA) and the approval of the Minister for Lands;

2. AUTHORISES the publication of a local public notice of the intention to enter into the Lease in accordance with Section 3.58 of the Local Government Act 1995 (WA);

3. AUTHORISES to the Chief Executive Officer to:

a) negotiate commercial terms, execute all documentation, consider and reject any submissions and comply with all applicable legislation as is required to effect items 1) and 2); and/or

b) appoint any operator at Part Reserve 20561, Lot 502 (99L) Jindalee Boulevard, Jindalee via private treaty negotiations for a term of five (5) years; and

4. AUTHORISES the affixing of the Common Seal of the City of Wanneroo to the Lease in accordance with the City's Execution of Documents Policy.

Attachments:

1 ⇩.

Attachment 1: Proposed Lease & Licence Area - Jindalee Beach Kiosk

17/267343

Minuted

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 184

3.17 Proposed Surrender of Lease and new Lease to the Yanchep Sports and Social Club (Inc.) over Lot 1 (81) Yanchep Beach Road, Yanchep

File Ref: 6036 – 17/253672

Responsible Officer: Director Corporate Strategy and Performance

Disclosure of Interest: Nil

Attachments: 2

Previous Items: MN01-08/16 - Investigate Establishment of Men's Shed in Yanchep/ Two Rocks Area - Ordinary Council - 16 Aug 2016 7.00pm

Issue

To consider surrendering the Yanchep Sports and Social Club (Inc.) (YSSC) existing Lease in order to enter into a new Lease of greater tenure with the YSSC over Lot 1 (81) Yanchep Beach Road, Yanchep.

Background

Land

The YSSC currently leases Lot 1 on Diagram 52126 (81) Yanchep Beach Road, Yanchep (Lot 1) being the whole of the land comprised in Certificate of Title 1497 Folio 32.

Lot 1 is 32,000m² in area and zoned as "Urban" under the Metropolitan Region Scheme and "Urban Development" in the City of Wanneroo District Planning Scheme No.2. It is bounded by Yanchep Beach Road to the north, a vacant lot that is proposed for residential development to the east, a commercial precinct to the south and Marmion Avenue to the west.

Lot 1 currently comprises a clubhouse with a licensed bar, associated car park, two grass bowling greens, three storage sea containers and a toilet block (Attachment 1 refers). In addition, there are two marked tennis courts on-site with associated fencing that are the sole responsibility of the City to maintain.

Lot 1 is owned by the City in freehold and located within the strategic Yanchep town centre. This locality presents the City with future potential commercial opportunities to develop or sell Lot 1.

Under the terms of the City’s Leasing Policy, standard protocol is for “Not-For-Profit” (NFP) entities/community facilities to be located on crown land as opposed to City freehold land. Presently, it is anticipated that the YSSC will be relocated to an alternative site at some point in the future. To-date, no relocation site has been identified for the anticipated relocation and the City is in the very early stages of identifying regional open space for the Yanchep area which is reliant on the State of WA purchasing and allocating the land to the City. This process is anticipated to take at least ten (10) years.

Current Lease

At its Ordinary Council Meeting of 24 October 2000, a report was presented to Council (W337-10/00) that detailed the approval of the current twenty-one (21) year Lease that commenced 1 January 2001 and is scheduled to expire 31 December 2021.

Council resolved as follows:

“1. ENDORSES a 21 year tenure period;

2. ENDORSES a Lease agreement based on the club being responsible for Council and water rates and all costs involved with site inspections, preparation of the Lease document, and maintenance and operational costs associated with the property, including court lighting; and

3. RETAIN RESPONSIBILITY for maintenance of the court surfacing and fencing

The existing Lease has four (4) years, and three (3) months remaining.

Leasing Policy

The YSSC is classified as a NFP entity under the terms of the City’s Leasing Policy.

Under the City’s previous Tenancy Policy, NFP entities were responsible for all maintenance (excluding structural) on leased facilities in exchange for a $1 annual peppercorn rent. The terms of the YSSC current Lease, expiring 31 December 2021 are based on this principle (asides from the City’s sole maintenance responsibility for the tennis courts and its associated fencing in this instance).

In order to alleviate pressure on NFP lessee members to maintain leased City buildings and ensure that City assets are maintained to a satisfactory and compliant standard, Council adopted a Leasing Policy (CS05-09/15, 15 September 2015) that included provision for the City and not the respective NFP lessee’s to undertake and assume responsibility for all maintenance and repairs on leased City buildings in exchange for an annual maintenance fee payable by the NFP lessee entities on their respective leased buildings. Accordingly, the YSSC annual maintenance fee has been calculated at $3,200 (plus GST) and is scheduled to commence at the expiration of the current Lease on 31 December 2021.

Proposed Surrender of current Lease and new Lease with longer tenure

Since the formation of the YSSC in 1976, the Yanchep/Two Rocks area has grown extensively. It is an area of high population and urban residential growth that is envisaged to continue for the foreseeable future. It currently has few conventional facilities and limited infrastructure and public transport links.

In endeavouring to adapt to the changing circumstances in the area, the YSSC has written to the City to request the termination of its existing Lease in exchange for a new Lease with greater tenure. The YSSC is actively looking to capture additional members (current membership is 660 members) from the increase in population growth in the area and broaden and promote the use of its existing facilities.

The YSSC has also explored the feasibility of utilising the additional spare land contained on Lot 1 for additional sports and social purposes to create a multi-purpose sporting and social hub as a focal point for the expanding residential community. It is in the preliminary stages of negotiations with the Yanchep Community Men’s Shed (Inc.) (YCMS) (MN01-08/16) of 16 August 2016 refers) over a potential Sublease of an area of Lot 1 north of the bowling greens, subject to City consent. Negotiations cannot proceed in detail between the YSSC and the YCMS until Council considers the YSSC request for a new Lease with greater tenure.

Whilst there is four (4) years and three (3) months remaining of the existing Lease term, the YSSC has advised the City that in its opinion, this perceived lack of security of tenure is impeding its growth and development especially in regards to the YSSC’s proposed grant applications for additional sport and recreation facilities and the potential upgrade of existing facilities at Lot 1.

Both the existing and previous YSSC Committees have been regularly advised by the City that Lot 1 may be utilised for alternative purposes in the future (due to its freehold land status

and the commercial opportunities that this may present the City) which would require the YSSC to relocate to an alternative, as of yet, unidentified site. Despite this notification, the YSSC has repeatedly requested that it be allowed to surrender its existing Lease for a new Lease of greater tenure.

Under the terms of the City’s Leasing Policy any brand new Lease is required to adhere to the current Policy. In this particular instance, this would result in the YSSC being required to commence payment of an annual maintenance fee of $3,200 (plus GST) per annum (subject to review on an annual basis) from 15 September 2017 as per the terms of the City’s Leasing Policy in exchange for the City assuming all maintenance responsibilities at Lot 1.

Proposed Land Excision

As part of the Lease negotiations, the YSSC and Administration have negotiated the excision of a 5,000m² (approximate) portion of Lot 1 (Excised Land) from the existing YSSC leased area (Attachment 2 refers), subject to Council approval.

The YSSC has advised the City that it does not use the Excised Land (aside from occasional overflow car parking) and has no plans to develop it in the future. It is proposed that the City will assume full responsibility of the Excised Land for future in-house development or commercial leasing opportunities. Should such a proposal proceed in the future, the City may enter into some form of reciprocal car parking agreement with the YSSC to allow the YSSC to utilise any future car park on the Excised Land.

In exchange for the Excised Land, Administration has agreed to the YSSC’s request to waive the annual maintenance fee of $3,200 (plus GST) per annum for the term of the Lease. The YSSC will continue to maintain its leased premises at its cost until Lease expiration with the City to continue to undertake structural maintenance of all buildings and full maintenance responsibility for the tennis courts and its fence.

Detail

The YSSC has agreed in writing to surrender its existing Lease for a new Lease of greater tenure.

As per the City's Leasing Management Procedure, all tenants are required to prepare a business plan to cover the term of any new Lease. The YSSC has submitted a comprehensive business plan detailing the longer term plans of the YSSC including financial analysis and developmental and funding plans. This City deems the business plan acceptable.

The City and the YSSC have negotiated a new Lease subject to Council approval of the surrender of the existing Lease and the following essential proposed new Lease terms:

Leased Premises:	Portion of Lot 1 (81) Yanchep Beach Road, Yanchep (Attachment 2 refers)
Lease Term:	Ten (10) years
Commencement Date:	Upon surrender of the proposed Deed of Surrender of Lease and execution of the proposed new Lease by all parties
Lease Rental:	$1 per annum (peppercorn)
Permitted Purpose:	Club premises
Cleaning:	Lessee responsibility
Rates & Taxes:	Lessee responsible for all rates (including Council rates and water rates), taxes, assessments and impositions
Outgoings:	Lessee responsibility for all outgoings (not limited to) electricity, gas, water and telephone/broadband connection used in relation to the Premises whether billed directly or otherwise.
Lessee Services:	Lessee responsible for the provision of special requirements such as the connection of telephone, broadband services and the like
Grease Trap Cleaning:	Lessee responsibility
Building Insurance:	· Lessor responsibility to insure the building to the correct replacement value; and · Lessee responsibility to pay the premium as on-charged by the Lessor.
Public Liability Insurance:	Lessee responsibility – Minimum $20 million
Other Insurance:	Lessee responsibility
Consumables:	Lessee responsibility
Maintenance:	Lessee responsible for all internal and external maintenance of the leased premises except for: · tennis court surface (Lessor responsibility); and · tennis court fence (Lessor responsibility)
Bowling Greens:	Lessee responsibility
Tennis Court Lighting:	Lessee responsibility
Use of Tennis Courts:	· For tennis purposes only (all other sporting codes prohibited); and · Lessee to permit the public to use the tennis courts at all times when the tennis courts are not required by the lessee, and the lessee shall not charge any fee for such use in excess of the fees fixed by the Lessor from time to time
Structural Maintenance:	Lessor responsibility
Special Conditions:	· Lessee to relocate to an appropriate alternative site should one become available over the term of the Lease; and · Prohibition of any other sporting activity to be undertaken on the tennis courts, aside from tennis to protect the court surface.
Annual Maintenance Fee:	Waived for entire Lease term
Lessor Maintenance Works:	Not applicable

Consultation

· The essential terms of the proposed Surrender of Lease and proposed new Lease have been prepared in consultation with the YSSC;

· The City confirms that there is no plan for the City to develop the proposed leased portion of Lot 1 in the short to medium term;

· All required legal documentation will be prepared in-house; and

· Western Australian Planning Commission (WAPC) approval to the proposed new Lease under Section 136 of the Planning and Development Act 2005 is not required as the proposed term is less than twenty (20) years.

Comment

The YSSC is a long-term, stable tenant and the proposed Surrender of the existing Lease (at the YSSC’s request) to facilitate a new Lease with longer tenure will enable the YSSC to

seek grant funding for potential improvements and additions to Lot 1, subject to relevant approval whilst increasing its membership base and providing a more inclusive community hub. Notwithstanding this, consideration is required to be given to Lot 1’s freehold land status and the future potential commercial opportunities that Lot 1 presents the City, given its strategic Yanchep Town Centre location.

The ability for the City to develop the Excised Land in exchange for waiving the YSSC annual maintenance fee is deemed an acceptable commercial decision considering that the YSSC will continue to be responsible for maintenance of the leased premises, save for items of a structural nature. For all intents and purposes, if the YSSC did not agree to surrender its existing Lease (scheduled to expire 31 December 2021) then it would not be required to pay the annual maintenance fee until 1 January 2022.

Both the current and previous YSSC Committees have been advised that Lot 1 may be utilised for alternative purposes in the future which would require the YSSC to move from its existing leased premises, subject to formal Council approval. However, it is anticipated that the City would have a new site identified, with appropriate facility planning undertaken prior to commencing formal negotiations with the YSSC over relocating from Lot 1. Undefined future scenarios not fully investigated at this stage should not interfere with the YSSC’s proposed plans for potential improvements and additions to its existing leased premises prior to any potential future move from Lot 1 to an alternative site. The City will continue to consult the YSSC over any future relocation plans.

The City acknowledges that the YSSC provides an important service to the community and it is the City’s preference that this service continues uninterrupted.

The YSSC has demonstrated through its business plan that it is committed to the improvement and longevity of Lot 1. It has a facility and a membership base that is well managed and is capable of generating a significant income stream that will allow the YSSC to grow and offer benefits not only to its members but to the local community as a whole. The City therefore supports a new Lease to the YSSC for a period of ten (10) years, subject to formal Council approval. It is not anticipated that regional open space will be made available to develop for the YSSC during the term of the proposed new Lease and the lifecycle of the existing buildings on Lot 1 will meet the duration of the proposed new Lease tenure. Note however, that the tennis court surface is likely to require remedial maintenance work or full capital replacement within the next ten (10) years.

The City has undertaken some notable maintenance works on the leased premises at its cost during the past four (4) years, namely:

· replacement of roof anchor points;

· installation of new smoke detectors;

· checking and tagging of fire extinguisher apparatus;

· resealing of tennis court surface and repaint of surface;

· tennis court line marking, new nets etc.;

· renewal of air conditioning;

· new internal panelled ceiling;

· new compliant electrical lighting and re-wiring in roof void; and

· new main clubroom roof.

Statutory Compliance

· In accordance with the Planning and Development Act 2005, any Lease of, or the granting of a licence to occupy City freehold land for a term exceeding twenty (20) years (including any options to extend or renew) will generally require the approval of the

WAPC. As the proposed new Lease to the YSSC is for a term of ten (10) years only, the City is not required to seek WAPC approval in this instance; and

· Under Regulation 30(2)(b) of the Local Government (Functions and General) Regulations 1996, the proposed Lease to the YSSC is an exempt disposition of property to which section 3.58 of the Local Government Act 1995 does not apply as the YSSC is a sporting and recreational entity.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“1 Society

1.1 Healthy and Active People

1.1.1 Create opportunities that encourage community wellbeing and active and healthy lifestyles”

Risk Management Considerations

Risk Title	Risk Rating
Relationship Management	Moderate
Accountability	Action Planning Option
Executive Management Team	Manage

The following additional comments are provided on the risk arising from the subject of this report.

Current Risk	Mitigation
Asbestos Containing Materials (ACM) on-site:	· The leased premises is recorded on the City’s Asbestos register and is resurveyed on a regular basis. · The City is to continue to provide the YSSC with a copy of the latest available asbestos report when made available. · The City is compliant with its asbestos inspection requirements.
ACM present within tennis court surface:	· The leased premises is recorded on the City’s Asbestos register and is resurveyed on a regular basis. · The risk to users during normal activity is minimal as it is the membrane under the surface covering that contains the ACM. · The YSSC regularly monitors the tennis court surface and advises the City of any defects. Appropriate remedial action is undertaken by the City. · The City arranged for the courts to be resealed and recoated with fibroseal in 2014.
Tennis court degradation:	· The courts are currently only moderately used. Any significant degradation of the surface would require the City to either repair as per the 2014 works or budget in the Capital Works Program to completely remove and replace. · The YSSC reports any tennis court defects to the City for Administration to action. · Clause to be included in the Lease prohibiting any other sporting code aside from tennis utilising the courts.
Financial:	· A new Lease would prevent the City from developing, leasing or selling Lot 1 (Excision Area excluded) for commercial purposes for a ten (10) year period. As the City does not currently have a plan of action for the remainder of Lot 1, undefined future scenarios should not impede on the YSSC’s request to a longer tenure in the short to medium term.

Policy Implications

The City’s Leasing Policy states that the City’s preference is that leased facilities to NFP entities should be located on crown land as opposed to City freehold land which the YSSC is currently located on.

The proposed new Lease with the YSSC has been negotiated generally in accordance with the NFP guidelines as outlined in the City's Leasing Policy. Any exemptions are detailed in the “Financial Implications” section of this report.

Financial Implications

An Annual Maintenance fee of $3,200 (plus GST) per annum (subject to review on an annual basis) will not apply for the term of the Lease.

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. AGREES to the termination of the existing Lease between the City of Wanneroo and the Yanchep Sports and Social Club (Inc.) on City freehold Lot 1 (81) Yanchep Beach Road, Yanchep subject to the signing of a formal Deed of Surrender of Lease;

2. AUTHORISES the affixing of the Common Seal of the City of Wanneroo to a Deed of Surrender of Lease between the City and the Yanchep Sports and Social Club (Inc.) in accordance with the City's Execution of Documents Policy;;

3. APPROVES a new Lease of a portion of City freehold Lot 1 (81) Yanchep Beach Road, Yanchep (Attachment 2 refers) to the Yanchep Sports and Social Club (Inc.) for a term of ten (10) years commencing upon the execution of the Deed of Surrender of Lease;

4. AUTHORISES the affixing of the Common Seal of the City of Wanneroo to a Lease between the City and the Yanchep Sports and Social Club (Inc.) in accordance with the City's Execution of Documents Policy;

5. NOTES that the 5,000m² (approximate) portion of Lot 1 (81) Yanchep Beach Road, Yanchep (Attachment 2 refers) proposed to be excised and maintained by the City will be available for future development considerations; and

6. NOTES that should Council agree to the termination of the existing Yanchep Sports and Social Club (Inc.) Lease to facilitate a new Lease of greater tenure, the City proposes to enter into Sublease negotiations with the Yanchep Community Men’s Shed (Inc.) and the Yanchep Sports and Social Club (Inc.) over a portion of Lot 1 (81) Yanchep Beach Road, Yanchep.

Attachments:

1 ⇩.	Attachment 1: Existing Leased Premises - Yanchep Sports and Social Club (Inc.)	17/245638
2 ⇩.	Attachment 2: Proposed Leased Area - Yanchep Sports & Social Club	17/253313	Minuted

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 194

3.18 Proposed Lease to Volunteer Task Force (Inc.) over a portion of Lot 500, Leach Road, Wanneroo

File Ref: 5397 – 17/156169

Responsible Officer: Director Corporate Strategy and Performance

Disclosure of Interest: Nil

Attachments: 1

Issue

To consider entering into a new Lease with Volunteer Task Force (Inc.) (VTF) over a portion of Crown Reserve 10845, Lot 500 (9) Leach Road, Wanneroo for a term of two (2) years with an option of an additional two (2) years.

Background

Land

VTF currently leases a portion of Crown Reserve 10845, Lot 500 (9) Leach Road, Wanneroo (Lot 500) being the whole of the land comprised in Certificate of Title Volume LR3147 Folio 365 (Attachment 1 refers) and otherwise known as one half of the Leach Road duplex building. The other half of the building is leased to the Wanneroo Agricultural Society (Inc.) under a separate agreement.

Crown Reserve 10845 is a category “C” reserve vested in the City for “Community Office” purposes under a Management Order with power to lease for any term not exceeding 21 years, subject to the consent of the Minister for Lands.

The land is currently zoned as “Urban” under the Metropolitan Region Scheme and “Centre” in the City of Wanneroo District Planning Scheme No.2.

Funding

VTF is a not for profit community service provider that has been operating since 1970. Its purpose is to ensure people of limited financial, social and physical capability are assisted with services including gardening, home maintenance, domestic assistance, social support and transport.

VTF has more than 100 staff members and 475 volunteers and provided services to more than 5,000 clients in the Perth Metropolitan Area in 2016. It obtains its primary funding from the Western Australian Home and Community Care program (HACC), a joint funding initiative of the Commonwealth and WA State Governments which provides basic support services for eligible people of all ages with a disability and their carers to assist them to continue living independently at home. This funding stream is administered by the Department of Health (DOH).

VTF received $9.3 million in funding via HACC in 2015 which equated to 91% of its funding with the balance coming from a mixture of client contributions and interest earnings.

Lease

Historically, VTF has a long standing relationship with the City. VTF originally operated out of the building known as Enterprise House which is located on City freehold Lots 90 and 91 (935/937) Wanneroo Road on short term Lease agreements:

· Ordinary Council Meeting of 29 April 2003 (CD08-04/03) – One (1) year Lease that commenced 27 June 2003 and expired 26 June 2004; and

· Ordinary Council Meeting of 8 June 2004 (CD02-06/04) - Two (2) year Lease that commenced 27 June 2004 and expired 26 June 2006.

Following a confidential Council report of May 2005 (CR02-05/05) on the, “progress of relocation of tenants from 935 Wanneroo Road to enable the establishment of the Wanneroo Grow Centre”, VTF was not offered a long term Lease of Enterprise House.

Council subsequently determined at its Ordinary Council Meeting of 4 April 2006 (CS04-04/06) to:

· Grant VTF a short term extension of tenure at Enterprise House for the period 27 June 2006 until 30 September 2006; and

· Approve a new Lease over a portion of Lot 500 following the necessary modification of the building from a residential property at VTF’s cost.

The existing VTF Lease of a portion of Lot 500 commenced 1 December 2006 and expired 30 November 2011. The Lease, dated 6 February 2007, provided VTF with an option to exercise an additional five (5) year lease term commencing 1 December 2011 on the proviso that notification in writing was submitted to the City during a period commencing six (6) months and ending three (3) months prior to the expiration of the initial term of the lease. VTF advised the City in writing on 23 September 2011 of its intention to exercise its five (5) year option. This was outside of the required notification period. Administration, at that time allowed VTF to exercise the option and therefore the Lease essentially became an equitable Lease.

The equitable Lease expired 30 November 2016 and is currently held over on a month to month basis. VTF’s current annual rent is $5,950.70 (plus GST) per annum.

Merger

VTF recently merged with two other Perth based care providers, Care Options Incorporated and Community First Incorporated to create a larger and stronger Western Australian based support services organisation which will offer a range of improved community services from mental health support to home care and disability services.

Each individual entity will continue to exist as a separate organisation, with individual funding agreements, employment contracts and Leases. Therefore the City will still only liaise with VTF and any new approved Lease will remain in the name of VTF.

The new VTF constitution was adopted on the 31^st October 2016 and subsequently approved by the Department of Commerce.

Detail

VTF has written to the City requesting a new Lease.

Under the City’s Leasing Policy, VTF is categorised as a Government entity due to its government funding stream from the DOH. Due to the Government classification, any new Lease fee to VTF is to be via negotiation.

A market valuation was obtained from a licensed valuer to establish the current market rent of part Lot 500 currently leased to VTF. A valuation report was provided to the City on 16

June 2017 that valued the leased premises at $12,500 (plus GST) per annum plus outgoings. The licensed valuer concluded a rental range of between $6,250 and $12,500 (plus GST) per annum plus outgoings but due to VTF’s non-profit community use it considered that a subsidised rent should apply and arbitrarily adopted 50% which equates to $6,250 (plus GST) per annum plus outgoings with Council to apply.

Administration is of the opinion that a rent of $6,250 (plus GST) per annum plus outgoings is acceptable and in keeping with the terms of the City’s current Leasing Policy for a government classified entity whereby the method of dealing is “by negotiation”.

Administration and VTF have negotiated a new Lease for the leased premises subject to Council and the Minister for Lands approval with the following essential terms:

Lease Premises:	Portion of Crown Reserve 10845, Lot 500 (9) Leach Road, Wanneroo as shown hachured on the plan (Attachment 1 refers)
Lease Term:	Two (2) years
Option Term:	Two (2) years
Commencement Date:	On execution of the Lease
Lease Rental:	$6,250 (plus GST) per annum
CPI Review:	Annually
Permitted Purpose:	Office & Storage Space and uses reasonably ancillary thereto
*Rates^1, Taxes and Outgoings:**	The Lessee will be responsible for all rates, taxes, assessments, impositions and outgoings for electricity, gas, water and telephone/broadband used in relation to the premises whether billed directly or otherwise.
*Building Insurance^2:**	The Lessor shall insure the building and on-charge the Lessee the premium for its leased portion of Lot 500
Public Liability Insurance:	Lessee responsibility - $20 million (minimum)
Other Insurance (including contents, plate glass et cetera):	Lessee responsibility
Maintenance of Premises:	Lessee responsibility
*Structural Maintenance^3:**	Lessor responsibility
Lessee Fixtures (Colorbond workshop and colorbond shed):	Lessee responsibility
Heating, Ventilation & Air Conditioning:	Lessee responsibility
Lessee Services:	Lessee responsibility for the provision of special requirements such as telephone and broadband services
Statutory Compliance:	Lessee responsibility
Cleaning:	Lessee responsibility
Gardening:	Lessee responsibility

*¹ VTF’s use of Lot 500 will be for charitable purposes. The VTF is therefore non rateable due to its charitable status;

*² VTF will be responsible to insure its colorbond workshop and colorbond storage shed and it will not be the responsibility of the City to take out building insurance for the workshop and shed; and

*³Structural Maintenance of the colorbond workshop and colorbond storage shed is the sole responsibility of VTF.

Consultation

The essential terms of the proposed Lease have been prepared in consultation with VTF and the Lease has been prepared in-house.

Section 18 of the Land Administration Act 1997 requires the City to obtain Ministerial endorsement to the proposed Lease from the Department of Planning, Lands & Heritage (DPLH) on behalf of the Minister for Lands. Administration has forwarded the document to the DPLH for its consideration and endorsement.

Comment

Administration supports the terms of the proposed new Lease to VTF.

The proposed new Lease will allow VTF to continue its tenancy in accordance with the City’s Leasing Policy and will clarify both the City’s and VTF’s responsibilities to maintain the leased premises to the required standard.

A new Lease will provide security of tenure to VTF and enable it to continue to work in partnership with people and their carers to increase independence and physical and social wellbeing.

Statutory Compliance

Under the Local Government (Functions and General) Regulations 1996 Regulation 30, the proposed lease to VTF is an exempt disposition of property to which section 3.58 of the Local Government Act 1995 does not apply.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2013 – 2023:

“4 Civic Leadership

4.1 Working with Others”

Risk Management Considerations

Risk Title	Risk Rating
Asset Management	Moderate
Accountability	Action Planning Option
Executive Management Team	Manage

Policy Implications

The proposed new Lease to VTF has been negotiated in accordance with the Government guidelines as outlined in the City's Leasing Policy.

Financial Implications

· VTF will be responsible for all costs of cleaning, consumables utility outgoings, relevant insurances, rates and taxes, repairs and maintenance, operational compliance matters and all other costs associated with the leased premises;

· VTF will also be responsible for the structural integrity and building insurance of the colorbond workshop and storage shed buildings that it constructed at the leased premises;

· The City will be responsible to meet any costs in relation to the structural integrity of the duplex building;

· The licensed valuation cost $1,250 (plus GST); and

· As the leased premises will be used for charitable purposes only, the land is not rateable under Section 6.26(g) of the Local Government Act 1995.

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. APPROVES the Lease of a portion of Crown Reserve 10845, Lot 500 (9) Leach Road, Wanneroo (Attachment 1 refers) to Volunteer Task Force (Inc.) for a term of two (2) years with the option of an additional two (2) year term commencing on the execution of the Lease and subject to the Minister for Lands approval; and

2. AUTHORISES the affixing of the Common Seal of the City of Wanneroo to a Lease between the City and Volunteer Task Force (Inc.) in accordance with the City's Execution of Documents Policy.

Attachments:

1 ⇩.

Attachment 1 - VTF Plan of leased area

17/158103

Minuted

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 200

Council & Corporate Support

3.19 Donations to be Considered by Council - October 2017

File Ref: 2855V02 – 17/320874

Responsible Officer: Director Corporate Strategy and Performance

Disclosure of Interest: Nil

Attachments: Nil

Issue

To consider requests for sponsorships, donations and waiver of fees in accordance with the City’s Donations, Sponsorships and Waiver of Fees and Charges Policy (Policy).

Background

The Policy requires applications over $500 from individuals and organisations to be determined by Council. Consequently a report is prepared for Council meetings, coinciding with a period where applications of this nature have been received.

With respect to requests for sponsorships, the Policy specifies that for National Events the amount provided will be $200.00 per individual, capped at $600.00 per team, and for International Events the amount provided is $500.00 per individual capped at $1,500.00 per team. Schools are capped at $2,000.00 per school per financial year.

Detail

During this period, the City has received four sponsorship requests, nil community donation requests and nil requests for a waiver of fees and charges, which are summarised as follows. Copies of the full applications are available from Council and Corporate Support upon request.

Comment

Sponsorship Donations

Applicant 1 – West Coast Fury Cheerleading
Name of Individual/s	Sub-Zero – Ashlee Mettimano, Faith Kapo, Jacinta Waters and Kyla Payne Magnitude – Alisha Tripodi, Ella Scullino, Taylah Mendez and Chloe Coubrough Aftershock – Brya Waghorn, Asia Tamlyn, Jolie Sims and Jordan Newman Heatwave – Lily Webb, Amy Beavan and Piper Ewen
Reside in City of Wanneroo 18years of age or under	Yes Yes
Event Details	AASCF Cheer and Dance Nationals 2017, Melbourne Vic 24 – 27 November 2017
Commitment to providing a written report regarding the event	Yes
Commitment to acknowledgement of the City of Wanneroo	Yes
Eligibility Level	National
Comments	As per the policy $200.00 per individual (capped at $600 per team to a maximum of four teams per event).
Recommendation	APPROVE a request for sponsorship in the sum of $2,400.00 to West Coast Fury Cheerleading for the participation of Sub-Zero – Ashlee Mettimano, Faith Kapo, Jacinta Waters and Kyla Payne; Magnitude – Alisha Tripodi, Ella Scullino, Taylah Mendez and Chloe Coubrough; Aftershock – Brya Waghorn, Asia Tamlyn, Jolie Sims and Jordan Newman and Heatwave – Lily Webb, Amy Beavan and Piper Ewen at the AASCF Cheer and Dance Nationals 2017 to be held in Melbourne Vic from 24 – 27 November 2017.
Reason	This request is in accordance with Council’s Policy

Applicant 2 – Wanneroo Junior Motocross Club
Name of Individual/s	Braydan Porter, Zara Porter, Joshua McQuade and Keenan Murphy
Reside in City of Wanneroo 18years of age or under	Yes Yes
Event Details	Australian ATV Motocross Championship, Murray Bridge SA, 30 September to 1 October 2017
Commitment to providing a written report regarding the event	Yes
Commitment to acknowledgement of the City of Wanneroo	Yes
Eligibility Level	National
Comments	As per the policy $200.00 per individual (capped at $600 per team to a maximum of four teams per event).
Recommendation	APPROVE a request for sponsorship in the sum of $600.00 to Wanneroo Junior Motocross Club for the participation of Braydan Porter, Zara Porter, Joshua McQuade and Keenan Murphy at the Australian ATV Motocross Championship to be held in Murray Bridge SA from 30 September to 1 October 2017.
Reason	This request is in accordance with Council’s Policy

Applicant 3 – ATI Martial Arts Joondalup
Name of Individual/s	Mitchell Wood, Tyrell Dawson, Rhys Hughes, Nathan Coler and Johan Cubong
Reside in City of Wanneroo 18years of age or under	Yes Yes
Event Details	Australian Taekwondo National Championships, Bendigo Vic, 5 – 8 October 2017
Commitment to providing a written report regarding the event	Yes
Commitment to acknowledgement of the City of Wanneroo	Yes
Eligibility Level	National
Comments	As per the policy $200.00 per individual (capped at $600 per team to a maximum of four teams per event).
Recommendation	APPROVE a request for sponsorship in the sum of $600.00 to ATI Martial Arts Joondalup for the participation of Mitchell Wood, Tyrell Dawson, Rhys Hughes, Nathan Coler and Johan Cubong at the Australian Taekwondo National Championships to be held in Bendigo Vic from 5 – 8 October 2017.
Reason	This request is in accordance with Council’s Policy

Applicant 4 – School Sport Western Australia Inc
Name of Individual/s	Shae Fitzgerald, Robyn Windeatt and Sofia Talemaira
Reside in City of Wanneroo 18years of age or under	Yes Yes
Event Details	SSA Netball 12’s National Championship, Adelaide SA, 1 – 9 December 2017
Commitment to providing a written report regarding the event	Yes
Commitment to acknowledgement of the City of Wanneroo	Yes
Eligibility Level	National
Comments	As per the policy $200.00 per individual (capped at $600 per team to a maximum of four teams per event).
Recommendation	APPROVE a request for sponsorship in the sum of $600.00 to School Sport Western Australia Inc for the participation of Shae Fitzgerald, Robyn Windeatt and Sofia Talemaira at the SSA Netball 12’s National Championship to be held in Adelaide SA from 1 – 9 December 2017.
Reason	This request is in accordance with Council’s Policy

Statutory Compliance

Nil

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“1 Society

1.1 Healthy and Active People

1.1.1 Create opportunities that encourage community wellbeing and active and healthy lifestyles”

Risk Management Considerations

There are no existing Strategic or Corporate risks within the City's existing risk registers which relate to the issues contained in this report.

Policy Implications

The Policy states that sponsorship applications for attendance at National Events will be capped at $600.00 per team (up to four teams) and Regional or State capped at $600 per club. International events will be capped at $1,500.00 per team and schools capped at $2,000.00 per school per financial year.

Financial Implications

Budget 2017/2018		$100 000.00
Amount expended to date (as at 22.09.17)		$47,709.44
Balance		$52,290.56
Total of requests for this round: Donations (in this report): Total this Round (recommended)	$4,200.00	$4,200.00
BALANCE		$48,090.56

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. APPROVES a request for sponsorship in the sum of $2,400.00 to West Coast Fury Cheerleading for the participation of Sub-Zero – Ashlee Mettimano, Faith Kapo, Jacinta Waters and Kyla Payne; Magnitude – Alisha Tripodi, Ella Scullino, Taylah Mendez and Chloe Coubrough; Aftershock – Brya Waghorn, Asia Tamlyn, Jolie Sims and Jordan Newman and Heatwave – Lily Webb, Amy Beavan and Piper Ewen at the AASCF Cheer and Dance Nationals 2017 to be held in Melbourne Vic from 24 – 27 November 2017;

2. APPROVES a request for sponsorship in the sum of $600.00 to Wanneroo Junior Motocross Club for the participation of Braydan Porter, Zara Porter, Joshua McQuade and Keenan Murphy at the Australian ATV Motocross Championship to be held in Murray Bridge SA from 30 September to 1 October 2017;

3. APPROVES a request for sponsorship in the sum of $600.00 to ATI Martial Arts Joondalup for the participation of Mitchell Wood, Tyrell Dawson, Rhys Hughes, Nathan Coler and Johan Cubong at the Australian Taekwondo National Championships to be held in Bendigo Vic from 5 – 8 October 2017; and

4. APPROVE a request for sponsorship in the sum of $600.00 to School Sport Western Australia Inc for the participation of Shae Fitzgerald, Robyn Windeatt and Sofia Talemaira at the SSA Netball 12’s National Championship to be held in Adelaide SA from 1 – 9 December 2017.

Attachments: Nil

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 205

Chief Executive Office

Office of the CEO Reports

3.20 Review of Connect Wanneroo Advocacy Agenda

File Ref: 26467V03 – 17/326130

Responsible Officer: A/Chief Executive Officer

Disclosure of Interest: Nil

Attachments: Nil

Issue

The current advocacy agenda was set in 2014. A refresh is needed given the outcomes achieved over the last three years and the recent political changes at Federal and State Government levels. The four areas of roads, rail, reserves and region are to be retained as the overarching framework. Connect Wanneroo is proposed as the ongoing advocate brand for the City, ensuring that momentum and recognition generated to date will be further capitalised on.

Background

In 2014 (CEO1-07/14) Council approved the advocacy agenda covering the four areas of:

· Delivery of Major Regional Road Transport Infrastructure

· Expansion of the northern suburbs Rail network

· Active regional open space – Reservation; Land acquisition: Development (Reserves)

· Collaborative planning for Major Regional Economic Growth

The objectives for the advocacy agenda set in 2014 remain current:

To identify, advocate for and promote key strategic priorities and projects within the City of Wanneroo and the North Metropolitan Region to State and Federal Governments, government agencies and stakeholders.

o To secure funding support and/or

o To influence or support policy development, change or review: and/or

o To promote the region in a State, Federal and International context to benefit our community and achieve its aspirations and priorities in the Strategic Community Plan (SCP)

Since 2014 the focus has been on two key areas:

· Mitchell Freeway extension to Romeo Road Alkimos, and

· The extension of the rail line from Butler to Yanchep.

In 2016 the focus on regional growth was extended to also encompass agribusiness and this approved by Council (CEO1-01/16)

Detail

Since the original strategy was endorsed, there have been Federal (2016) and State (2017) Government elections.

The next milestone for a refreshed advocacy campaign to be supported by the City will be the next Federal election.

To undertake the preparatory work, the City needs to refresh the Connect Wanneroo advocacy agenda as follows:

ROADS: Continuing request for the extension of the Mitchell Freeway to Romeo Road.

Commence work on developing a clear plan for freight movement across the City and surrounding regions including Neerabup.

RAIL: Watching brief on the State Government funded rail extension to Yanchep. It has been proposed that in the future, given the destination will be the strategic metropolitan centre of Yanchep, the line should be renamed the Yanchep Line.

RESERVES: Securing a funding contribution for the Butler North District Open Space development.

REGION: Continue the focus on jobs.

Continue focus on agribusiness including water.

Consultation

The original impetus for these projects can be found in the community consultation undertaken and reflected in the City’s Strategic Community Plan. Each project has dedicated City staff undertaking work, including community and stakeholder consultation. Projects with a clear advocacy objective namely Butler North District Open Space and the Mitchell Freeway extension to Romeo Road have strong community input. Emerging issues including the freight network, jobs, water and agribusiness have their own community involvement plans and are at the research and designing stages which will lead to the City having a clearly articulated advocacy objective for each area.

Comment

It is proposed that the four areas of road, rail, reserves and region are retained to provide the ongoing advocacy framework under which specific projects fit. It is also proposed to retain the Connect Wanneroo branding given its recognition and ongoing relevance to the refreshed advocacy agenda.

The refreshed and agreed agenda will drive the revamp of advocacy materials under the Connect Wanneroo brand. Agreed emerging issues will lead to updated Fact Sheets for advocacy activities undertaken by Council, City staff and community stakeholders.

Statutory Compliance

Nil

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“4 Civic Leadership

4.1 Working with Others

4.1.3 Advocate and collaborate for the benefit of the City”

Risk Management Considerations

Risk Title	Risk Rating
ST-S12 Economic Growth ST-S23 Strategic Relationships	Moderate
Accountability	Action Planning Option
CEO	Manage

The above risks relating to the issue contained within this report have been identified and considered within the City’s Strategic risk register. Action plans have been developed to manage this risk to support existing management systems.

Policy Implications

Work is being undertaken on establishing an Advocacy Services Panel using a similar approach to the Legal Services Panel now possible under the May 2017 Procurement changes.

Financial Implications

All work for the current advocacy agenda, including strategy review and update of Connect Wanneroo materials is included in the City’s 2017/18 budget. Any additional resources required to support specific advocacy campaigns such as Get on Board will be sought through the City’s annual budgeting process.

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. ENDORSE the continuation of the four areas of the Advocacy Framework of roads, rail, reserves and region;

2. ENDORSE the continued use of the brand Connect Wanneroo for all strategic advocacy projects and the trademarking of the brand;

3. ENDORSE the following refreshed advocacy agenda including:

ROADS: Continuing request for the extension of the Mitchell Freeway to Romeo Road.

Commence work on developing a clear plan for freight movement across the City and surrounding regions including Neerabup.

RAIL: Watching brief on the State Government funded rail extension to Yanchep.

It has been proposed that in the future, given the destination will be the strategic metropolitan centre of Yanchep, the line should be renamed the Yanchep Line.

RESERVES: Securing a funding contribution for the Butler North District Open Space development.

REGION: Continue the focus on jobs.

Continue focus on agribusiness including water.

Attachments: Nil

CITY OF WANNEROO Agenda OF Elected Members' Briefing Session 03 October, 2017 251

3.22 Amendments and Changes to Delegated Authority Register

File Ref: 9167 – 17/308649

Responsible Officer: Executive Manager Governance and Legal

Disclosure of Interest: Nil

Attachments: 8

Issue

To consider proposed amendments to:-

a) Delegation 3.5 – Agreement as to Payment of Rates and Service Charges;

b) Delegation 8.1 – Structure Planning; and

the repeal of:-

c) Delegation 1.1(A) Notices Pursuant to Leases, Licences and Land Contracts;

d) Delegation 1.1(B) Leases and Licences;

e) Delegation 1.1(C) Extension of leases and Licences;

f) Delegation 7.28(A) - Criminal Procedures Act 2004 – Appointment of Authorised and Approved Officers – Health (Asbestos) Regulations 1992;

g) Delegation 10.5 – Receipt of Inwards Sponsorship; and

and the adoption of proposed new:-

h) Delegation 1.13A – Disposal of Property by Lease or Licence

i) Delegation 7.31 - Health (Asbestos) Regulations 1992 – Appointment of Authorised and Approved Officers; and

j) Delegation 7.9A – Bush Fires Act 1954 – Powers, Duties and Functions of a Local Government.

Background

All delegations were reviewed as part of the Annual Review of delegated authority that was adopted by Council on 30 May 2017. The City also undertakes reviews on a quarterly basis with delegates to ensure that there are documented processes in place for the recording of decisions made that the delegation continues to meet operational needs and provides clarity of intent and execution.

Detail

a) Repeal of Delegations 1.1(A) Notices Pursuant to Leases, Licences and Land Contracts, 1.1(B) Leases and Licences and 1.1(C) Extension of Leases and Licences and Adoption of new Delegation 1.13A – Disposal of Property by Lease or Licence

It is proposed to repeal Delegations 1.1(A) Notices Pursuant to Leases, Licences and Land Contracts, 1.1(B) Leases and Licences and 1.1(C) Extension of Leases and Licences (Attachment 1) for the following reasons:-

i) The grant of a lease is a disposal of property in accordance with section 3.58(1) of the Local Government Act which defines dispose as:

“dispose includes to sell, lease or otherwise dispose of, whether absolutely or not:”

ii) there is no express power or duty within section 3.18 of the Local Government Act 1995 (Local Government Act) for these delegations.

iii) It is deemed appropriate to present the delegated function of granting leases and licences as well as the variation of terms including but not limited to terminations, renewal options, assignments, subletting, sublicensing, special conditions or payment schedules as part of the City’s proposed new Delegation 1.13A - Disposal of Property by Lease or Licence subject to the conditions included in Delegations 1.1(A), 1.1(B) and 1.1(C) as set out in Attachment 2.

In addition Council is requested to consider an increase to the limits within the proposed new delegation as set out below:

· The term of the lease or licence being no greater than 5 years (previously 2 years);

· The rental fee payable being no greater than $50,000 (plus GST) per annum during the initial year of the lease or $10,000- (plus GST) per annum during the initial year of the licence term (previously $5,000); and

· The area being leased or licenced being no greater than 1000m² (previously 250m²).

Administration is currently reviewing the Leasing Policy and the increased limits will be incorporated within the amended policy. The proposed amended delegation will significantly reduce the number of leasing reports currently being determined by Council and contribute to efficient delivery of the Strategic Community Plan strategy 4.3.2: Ensure excellence in our customer service by improving satisfaction with the City’s responsiveness to resolving problems and enquiries.

b) Amendment of Delegation 3.5 – Agreement as to Payment of Rates and Service Charges

It is proposed to amend Council’s conditions on this delegation to allow for the agreement with a person to make arrangements for repayment of rates or service charges to be for a 12 month period from the date of the arrangement.

There have been numerous complaints regarding the current condition ‘that the total debt outstanding be extinguished by 30 June next following’ for arrangements entered into as the financial year progresses towards its close as being too restrictive. The proposed change (as set out in mark-up in Attachment 3) is aligned with the adopted Customer First Strategies 2016-2020 of ‘Simplicity – we will deliver an uncomplicated, personalised customer experience’ and ‘Performance – We will engage our customers and continually assess our performance against their expectations’.

c) Amendment of Delegation 8.1 Structure Planning

A review of this delegation identified a lack of guidance on the criteria surrounding the waiver of the requirement to advertise an amendment. The proposed changes to this delegation wording (shown as a new condition (c)) is intended to make explicit circumstances in which advertising of an amendment to a structure plan or activity centre plan may be waived providing that certain criteria are satisfied.

The proposed change replicates the definition and criteria of a minor amendment as set out in Section 17 of the Western Australian Planning Commission’s (WAPC) Structure Plan Framework:

“Advertising of an amendment to a structure plan or an activity centre plan may be waived under Clause 29 (3) or 45 (3), respectively, of DPS 2 where, in the opinion of the Delegate, it is of a minor nature in which the change or departure:

• Does not materially alter the purpose and intent of the structure plan;

• Does not change the intended lot/ dwelling yield by more than 10 per cent or adversely impact upon the amenity of adjoining landowners and occupiers;

• Does not restrict the use and development of adjoining land; or

• Does not significantly impact on infrastructure provision or impact upon the environment.”

In addition a note has been included following this condition in the delegation to make reference to the requirement for the WAPC to also have formed the view that the structure plan/activity centre plan amendment is of a minor nature prior to advertising being waived under Clause 29 (3) and Clause 45 (3) of District Planning Scheme No. 2 (DPS 2).

Although a delegation is not required for Administration to liaise with the WAPC to fulfil this requirement and therefore does not need to form part of the actual delegation wording, the note will avoid a scenario whereby this delegation is read in isolation (and not in conjunction with DPS 2). The details of the note are set out below:

“NOTE: Under Clauses 29 (3) and 45 (3) of the deemed provisions, the WAPC is also required to be of an opinion that an amendment to a structure plan/ activity centre plan is of a minor nature prior to advertising being waived.”

The existing condition d) only makes reference to endorsement of a recommendation for a structure plan amendment under Clause 20(2) of the deemed provisions by the delegate after it has been advertised. This condition should be modified for accuracy to also include reference to Clause 36(2) that relates to an activity centre plan. Similarly, the delegation is silent in relation to endorsing a recommendation for an activity centre plan amendment after it has been advertised. To address these matters, the proposed amended clause which has been renumbered e) is set out below:

“e) Endorsement of a recommendation for an amendment to a structure plan or an activity centre plan under Clause 20(2) or 36(2) respectively of the deemed provisions by the delegate after being advertised for public comment provided that:-

· Any objection received does not, in the opinion of the delegate, raise relevant planning considerations that cannot be specifically overcome by modification to that plan;

· Elected Members are notified in writing of the delegate’s intention to do so and provided with a summary of submissions and Administration's recommendations in respect of those submissions; and

· Elected Members are provided with at least five working days in which to request that the proposal be referred to Council for consideration and recommendation.”

In line with the changes proposed above, a new clause is to be inserted for the endorsement of a recommendation for an amendment of a structure plan or an activity centre plan where advertising has been waived as set out below:

“f) Endorsement of a recommendation for an amendment to a structure plan or an activity centre plan under Clause 20(2) or 36(2), respectively, of the deemed provisions by the delegate where advertising has been waived.”

The proposed changes have been marked up as set out in Attachment 4.

d) Repeal of Delegation 7.28A Criminal Procedures Act 2004 – Appointment of Authorised and Approved Officers – Health (Asbestos) Regulations 1992 and adoption of new Delegation 7.31 Health (Asbestos) Regulations 1992 – Appointment of Authorised and Approved Officers

The Health (Asbestos) Regulations 1992 was amended on 20 September 2017 to allow for an express power to delegate a power or duty by a local government to the Chief Executive Officer (CEO) which previously did not exist.

This amendment requires that the current Delegation 7.28A - Criminal Procedures Act 2004 - Appointment of Authorised and Approved Officers – Health (Asbestos) Regulations 1992 in which Council directly appointed officers to either issue or extend or cancel an infringement notice (as set out in Attachment 5) be repealed and a new delegation under the Health (Asbestos) Regulations 1992 be adopted as shown in Attachment 6. The proposed new Delegation 7.31 Health (Asbestos) Regulations 1992 – Appointment of Authorised and Approved Officers is to the CEO for the appointment of an authorised officer to issue of infringements and approved officers for the extension or cancelation of an infringement notice.

e) Repeal of Delegation 10.5 - Receipt of Inwards Sponsorship

The review of this delegation (Attachment 7) was as a result of a review of the Incoming Sponsorship Policy.

Section 6.15 of the Local Government Act 1995 allows local government to receive revenue and income. There is a requirement that this income be identified during the budget process and in the case of incoming sponsorship, supported by a Council policy. The policy should provide guidance (limits / conditions) for when incoming sponsorship is / is not appropriate to ensure decision made by Administrative staff are consistent with Council’s direction. A review of the Incoming Sponsorship Policy is currently in progress. As a result the delegation is recommended for repeal.

f) Adoption of proposed new Delegation 7.9A – Bush Fires Act 1954 - Powers, Duties and Functions of a Local Government

A review was undertaken of the current delegations in place under the Bush Fires Act 1954 (Bush Fires Act) to ensure that the local government’s powers and duties under this legislation were appropriately delegated.

There are three current delegations in place for specific functions under the Bush Fires Act however it is proposed that an overarching delegation for the residual powers, duties and functions of the local government as set out in Attachment 8 be considered.

Consultation

Nil

Comment

As a result of a review of the delegations listed above, it is recommended that Council consider the adoption of amendments as shown in mark-up or the repeal of delegations that are considered no longer relevant in meeting the City’s current functions.

It is important for Council to note that delegating a power does not transfer that power to the delegate, it merely replicates it and Council retains the ability to exercise any power or duty delegated to the CEO (s.59 Interpretation Act 1984).

The essential elements of a Council delegation are the correct and accurate identification of the:

· power or duty to be delegated;

· office to whom or which the power or duty is to be delegated;

· circumstances in which the power or duty can be exercised or discharged; and

· conditions on the exercise of the power or duty.

Statutory Compliance

Local Government Act 1995

Part 5 Administration

Division 4 Local government employees

5.42. Delegation of some powers and duties to CEO

(1) A local government may delegate* to the CEO the exercise of any of its powers or the discharge of any of its duties under —

(a) this Act other than those referred to in section 5.43; or

(b) the Planning and Development Act 2005 section 214(2), (3) or (5).

* Absolute majority required.

(2) A delegation under this section is to be in writing and may be general or as otherwise provided in the instrument of delegation.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

“4 Civic Leadership

4.2 Good Governance

4.2.1 Provide transparent and accountable governance and leadership”

Risk Management Considerations

There are no existing Strategic or Corporate risks within the City's existing risk registers which relate to the issues contained in this report.

Policy Implications

Nil

Financial Implications

Nil

Voting Requirements

Absolute Majority

Recommendation

That Council BY ABSOLUTE MAJORITY:-

1. ADOPT amendments to Delegation 1.13 – Disposal of Property to include provisions for the disposal of property under leases and licenses and the proposed increase to the limits applicable as set out in Attachment 1;

2. REPEALS Delegation 1.1(A) Notices Pursuant to Leases, Licences and Land Contracts, Delegation 1.1(B) Leases and Licences and Delegation 1.1(C) Extension of Leases and Licences as set out in Attachment 2;

3. ADOPT amendments to Delegation 3.5 - Agreement as to Payment of Rates and Service Charges to allow the arrangement to consider repayment of rates or service charges to be for a period of 12 months from the date of the arrangement as set out in Attachment 3;

4. ADOPTS the proposed amendments to Delegation 8.1 – Structure Planning to include conditions for the waiver of advertising as set out in Attachment 4;

5. REPEALS Delegation 7.28(A) – Criminal Procedures Act 2004 – Appointment of Authorised and Approved Officers – Health (Asbestos) Regulations 1992 as shown at Attachment 5;

6. ADOPTS proposed new Delegation 7.31 - Health (Asbestos) Regulations 1992 – Appointment of Authorised and Approved Officers as set out in Attachment 6;

7. REPEALS Delegation 10.5 – Receipt of Inwards Sponsorship as shown at Attachment 7; and

8. ADOPTS proposed new Delegation 7.8A – Bush Fires Act 1954 - Powers, Duties and Functions of a Local Government as set out in Attachment 8.

Attachments:

1 ⇩.	Delegated Authority Register extract - Delegations 1.1(A), 1.1(B) and 1.1(C) - For Repeal	17/312455
2 ⇩.	Proposed New Delegation 1.13A Disposal of Property By Lease or Licence	17/206530	Minuted
3 ⇩.	Proposed Amendment to Delegation 3.5 - Agreement as to payment of Rates and Service Charges	17/315295
4 ⇩.	Proposed Amendments to Delegation 8.1 Structure Planning	17/308654	Minuted
5 ⇩.	Delegation 7.28A - CRIMINAL PROCEDURE ACT 2004 - APPOINTMENT OF AUTHORISED AND APPROVED OFFICERS - HEALTH (ASBESTOS) REGULATIONS 1992	17/313613
6 ⇩.	Proposed Delegation 7.31 - Health (Asbestos) Regulations 1992 - Appointment of Authorised and Approved Officers	17/313655	Minuted
7 ⇩.	Delegation 10.5 - Receipt of Inwards Sponsorship	17/312474
8 ⇩.	Proposed New Bush Fires Act Delegation - Powers, Duties and Functions	17/323730	Minuted

1 ⇩.	Early Childhood Strategy Dec16	16/424717	Minuted
2 ⇩.	Early Childhood Policy	14/168055
3 ⇩.	CITY OF WANNEROO Policy Manual Early Childhood Policy	16/240368	Minuted

1 ⇩.	Sponsorship Policy	10/16982[v2]	Minuted
2 ⇩.	Incoming Sponsorship Policy - finalised copy	17/305473

Invoice No	Issue Date	Details	Amount
167145	23/11/2015	Quarterly Rent 1/11/15 to 25/2/16	$12,205.63
167169	26/11/2015	Water Us 7/9/15 to 5/11/15, Water Rates 1/11/15 to 31/12/15	$ 310.71
168606	28/1/2016	Water charges 5/11/15 to 8/1/16, Water Rates 1/1/16 to 29/2/16	$ 297.63
Total amount to be written off			$12,813.97

Risk Title	Risk Rating
Decision Making	Low
Accountability	Action Planning Option
Chief Executive Officer	Manage

Deadline for Submission to WALGA:	20 October 2017
Report to Council:	10 October 2017

1 ⇩.	WALGA Discussion Paper - Review of the LGA 2017	17/304990
2 ⇩.	Draft Submission - LGA Review City's Submission WALGA	17/316003