Council Minutes
Unconfirmed MINUTES
Ordinary Council Meeting
7.00pm, 13 September, 2016
Council Chambers, Civic Centre, Dundebar Road, Wanneroo
Objective
· To ensure that there is a process in place to outline access to the recorded proceedings of Council.
· To emphasise that the reason for recording of Council Meetings is to ensure the accuracy of Council Minutes and that any reproduction is for the sole purpose of Council business.
Statement
Recording of Proceedings
(1) Proceedings for meetings of the Council, Electors, and Public Question Time during Council Briefing Sessions shall be recorded by the City on sound recording equipment, except in the case of meetings of the Council where the Council closes the meeting to the public.
(2) Notwithstanding subclause (1), proceedings of a meeting of the Council which is closed to the public shall be recorded where the Council resolves to do so.
(3) No member of the public is to use any electronic, visual or vocal recording device or instrument to record the proceedings of the Council or a committee without the written permission of the Council.
Access to Recordings
(4) Members of the public may purchase a copy of recorded proceedings or alternatively listen to recorded proceedings with the supervision of a City Officer. Costs of providing recorded proceedings to members of the public will be the cost of the recording plus staff time to make the copy of the proceedings. The cost of supervised listening to recorded proceedings will be the cost of the staff time. The cost of staff time will be set in the City's schedule of fees and charges each year.
(5) Elected Members may request a recording of the Council proceedings at no charge. However, no transcript will be produced without the approval of the Chief Executive Officer. All Elected Members are to be notified when recordings are requested by individual Members.
Retention of Recordings
(6) Recordings pertaining to the proceedings of Council Meetings shall be retained in accordance with the State Records Act 2000.
Disclosure of Policy
(7) This policy shall be printed within the agenda of all Council, Special Council, Electors and Special Electors meetings to advise the public that the proceedings of the meeting are recorded.
Unconfirmed Minutes of Ordinary Council Meeting
held on Tuesday 13 September, 2016
CONTENTS
Item 2 Apologies and Leave of Absence
PQ01-09/16 Mr P Putrinu, Bamboore Crescent, Wanneroo
PQ02-09/16 Ms E Regan, Sovereign Drive, Two Rocks
PQ03-09/16 Mr M Roberts, Gretel Court, Two Rocks
PQ04-09/16 Mr J Young, Sovereign Drive, Two Rocks
PQ05-09/16 Mrs S Young, Sovereign Drive, Two Rocks
PQ06-09/16 Ms L Munn, Bamboore Crescent, Wanneroo
PQ07-09/16 Ms A Moore, Sovereign Drive, Two Rocks
PQ08-09/16 Mr C Travaflione, Sceptre Court, Two Rocks
Item 4 Confirmation of Minutes
OC01-09/16 Minutes of Ordinary Council Meeting held on 16 August 2016
Item 5 Announcements by the Mayor without Discussion
OA01-09/16 Parks and Leisure Australia (WA) Award for ‘Inclusive and Connected Communities’
OA02-09/16 Certificate – Official Supporter of Telethon
OA03-09/16 Appreciation to outgoing Director of Community & Place
Item 6 Questions from Elected Members
PT01-09/16 Request for footpath, Rayner Drive, Landsdale
PT02-09/16 Employment of a Town Planner or Consultant to Wanneroo City Council
PS01-09/16 Change of Use to Child Care Centre at 16 Bamboore Crescent, Wanneroo
PS03-09/16 Consideration of Commercial Vehicle Parking at 3 Tenet Court, Merriwa
AS01-09/16 State and Australian Government Black Spot Programs 2017/18 Submissions
AS02-09/16 Noise Attenuation Options along Flynn Drive, Carramar
AS03-09/16 Southern Suburbs Library Kingsway Concept Design
CP01-09/16 Community Sports and Recreation Facilities Fund (CSRFF) - 2016/17 Funding Round
Community Safety & Emergency Management Report
CP02-09/16 Outcome of the Kingsway Regional Sporting Complex CCTV Hub Project Grant Application
CP03-09/16 PT01-08/16 Establishing a Men’s Shed in the Yanchep/Two Rocks Area
Corporate Strategy & Performance
CS01-09/16 Financial Activity Statement for the Period Ended 31 July 2016
CS02-09/16 Warrant of Payments for the Period to 31 August 2016
CS03-09/16 Donations to be Considered by Council - September 2016
CS04-09/16 Motions from Special Electors Meeting held 25 August 2016
CE02-09/16 Proposed New Bee Keeping Local Law 2016
CR03-09/16 Research Partner Economic Activity and Connections Across Sectors and Places
CR04-09/16 Chief Executive Officer's Annual Performance Review for 2015/2016
Copy of Report from Agenda of 13 September 2016
Please refer to agenda for details of full reports and attachments.
Mayor Roberts declared the meeting open at 7:00pm and read the prayer.
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
TRACEY ROBERTS, JP Mayor
Councillors:
FRANK CVITAN, JP Central Ward
SAMANTHA FENN Central Ward
DIANNE GUISE Central Ward
DOT NEWTON, JP Central Ward
LINDA AITKEN North Coast Ward
RUSSELL DRIVER North Coast Ward
GLYNIS PARKER North Coast Ward
NATALIE SANGALLI North Coast Ward
SABINE WINTON North Coast Ward
HUGH NGUYEN South Ward
LARA SIMPKINS, JP South Ward
BRETT TREBY South Ward
DOMENIC ZAPPA South Ward
Officers:
DANIEL SIMMS Chief Executive Officer
MARK DICKSON A/Director, Planning and Sustainability
HARMINDER SINGH Director, Assets
FIONA HODGES Director, Community & Place
NOELENE JENNINGS Director, Corporate Strategy & Performance
DAVID NICHOLSON Operations Manager, Business & Finance
JIM DUFF Operations Manager, Asset Operations & Services
MUSTAFA YILDIZ Manager Governance and Legal
PAS BRACONE Manager Approval Services
ALAN MCCOLL Manager Community Safety & Emergency Management
PAUL DUNLOP Manager Communications, Marketing & Events
NATASHA SMART Manager Council & Corporate Support
MARK THORNBER Team Leader Council Support
YVETTE HEATH Minute Officer
Item 2 Apologies and Leave of Absence
DENIS HAYDEN South Ward (Leave of Absence 5 – 15 Sept)
New Request for Leave of Absence
Moved Cr Treby, Seconded Cr Guise
That Council GRANT
a Leave of Absence to Cr Hayden for the period 16 September to
23 December 2016 inclusive.
CARRIED UNANIMOUSLY
There were 47 members of the public and two members of the press in attendance.
Item 4 Confirmation of Minutes
Moved Cr Guise, Seconded Cr Treby
That the minutes of the Ordinary Council Meeting held on 16 August 2016 be confirmed.
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Item 5 Announcements by the Mayor without Discussion
Item 6 Questions from Elected Members
Cr Parker declared a financial interest in Item CR01-09/16 due to her family being one of the submittors to the Expression of Interest.
Cr Parker left Chambers at 7:30pm.
Cr Parker returned to Chambers at 7:32pm.
Cr Parker presented a further 232 signatories requesting Council’s consideration for a horse beach to be allocated in the vicinity of Pipidinny Beach, Pippidinny Road, Eglinton to be added to the petition presented at the 24 May 2016 Ordinary Council meeting (PT03-05/16) and which was resolved at the 16 August 2016 meeting (PS02-08/16).
Moved Cr Aitken, Seconded Cr Fenn
That the petitions be received and forwarded to the relevant Directorate for action.
CARRIED UNANIMOUSLY
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.
Cr Winton declared an impartiality interest in Item CP03-09/16 due to being on the Steering Committee for the Yanchep Men’s Shed.
Mayor Roberts declared an impartiality interest in Item CS03-09/16 due to being a member of Rotary.
Cr Parker declared a financial interest in Item CR01-09/16 due to her family being one of the submittors to the Expression of Interest.
Cr Zappa declared an indirect financial interest in Item CR03-09/16 due to his employer RSM Australia Pty Ltd being engaged as auditors of the Committee of Perth, to which they provide pro-bono services.
The Chief Executive Officer declared a financial interest in Item CR04-09/16 due to the matter relating to employment arrangements of the CEO.
Community Safety & Emergency Management Report
File Ref: 3272 – 16/294892 Responsible Officer: Director Community & Place Disclosure of Interest: Nil Attachments: Nil
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Moved Cr Zappa, Seconded Cr Simpkins That Council:- 1. ACCEPTS the Commonwealth Grant Agreement between the Commonwealth represented by the Commonwealth Attorney-General’s Department and the City of Wanneroo to receive grant funding for the installation of a CCTV hub at the Kingsway Regional Sporting Complex; and 2. NOTES that in accordance with the City’s Accounting Policy the project will need to be treated as unbudgeted expenditure in 2016/17.
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Cr Winton declared an impartiality interest in Item CP03-09/16 due to being on the Steering Committee for the Yanchep Men’s Shed.
File Ref: 3177 – 16/294158 Responsible Officer: Director Community & Place Disclosure of Interest: Nil Attachments: Nil
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Moved Cr Aitken, Seconded Cr Driver That Council:- 1. NOTES the Petition PT01-08/16 tabled at the Ordinary Council Meeting of 16 August 2016, requesting the City to undertake consultation and investigation with the community, in regard to the establishment of a Men’s Shed in the Yanchep/Two Rocks area including consideration of transportable building(s) at the Yanchep Sports Club site; 2. NOTES that Administration will make contact with the Yanchep Community Men’s Shed to provide advice regarding establishment and business plan development where appropriate;
3. NOTES that Administration will develop a framework to inform an equitable and consistent approach across the City to the establishment and ongoing support of community groups, including Men’s Sheds; and 4. ADVISES the petition organisers of the outcomes of this report.
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Corporate Strategy & Performance
File Ref: 25973 – 16/273282 Responsible Officer: Director Corporate Strategy and Performance Disclosure of Interest: Nil Attachments: 5
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Moved Cr Zappa, Seconded Cr Nguyen That Council RECEIVES the Financial Activity Statements and commentaries on variances to YTD Budget for the period ended 31 July 2016, consisting of:
1. 2016/17 Annual Adopted and Revised Budget;
2. July 2016 YTD Revised Budget;
3. July 2016 YTD Income and Expenditure;
4. July 2016 Statement of Financial Position and Net Current Assets; and
5. July 2016 YTD Material Variance Notes.
Carried Unanimously |
File Ref: 1859 – 16/301426 Responsible Officer: Director Corporate Strategy and Performance Disclosure of Interest: Nil Attachments: Nil
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Moved Cr Zappa, Seconded Cr Nguyen
That Council RECEIVES the list of payments drawn for the month of August 2016, as summarised below:-
Carried Unanimously |
Mayor Roberts declared an impartiality interest in Item CS03-09/16 due to being a member of Rotary.
File Ref: 2855V02 – 16/293969 Responsible Officer: Director Corporate Strategy and Performance Disclosure of Interest: Nil Attachments: 2
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Moved Cr Guise, Seconded Cr Cvitan
That Council:-
1. APPROVES a request for sponsorship in the sum of $1,200.00 to Touch Football WA for the participation of Team 1 - Western Tigers U/18s Girls - Tenae Berryman, Zion Taurima, Caitlin Miller, Eli Johnstone, Baeleigh Robinson and Juene-Kelly Mahuru and Team 2 - Western Tigers U/18s Boys - Te Area Koiatu, Trinity Miller, Calozz Paterson, Tyla Love and Jordan Tapine at the 2016 Harvey Norman National Youth Championships – Touch Football to be held in Caloundra Qld from 14 – 18 September 2016;
2. APPROVES a request for a donation for the sum of $730.00 to Ashdale Primary School Parents & Citizens Association towards a subscription to the Safety House Program 2016 and cost of Safety House educational puppet shows to be held in September 2016;
3. NOT APPROVE a request for a donation for the sum of $1,400.00 to Proudies Foundation Inc towards costs of Golf Tournament at Marangaroo Golf Course on 7 October 2016 to raise funds for care and rehabilitation of City of Wanneroo resident Warrick Proudlove who requires 24 hour care.
4. NOT APPROVE a request for a donation for the sum of $1,000.00 to ADM Taekwondo & Martial Arts Inc towards purchase of rubber jigsaw mats for safety of students attending Taekwondo lessons at Alexander Heights Community Centre and Kingsway Indoor Stadium;
5. NOT APPROVE a request for a donation for the sum of $5,000.00 to Rotary Twin Cities Community Walk towards putting on free community activities in the event village at the Twin Cities Community Walk to be held on 6 November 2016 at Lake Joondalup;
6. NOT APPROVE a request for a donation for the sum of $5,621.00 to VCM Perth Events towards a 100% waiver of fees and bond for hire of the Wanneroo Showgrounds from 15 – 16 October 2016 to hold a Rock and Roll Festival for Telethon;
7. APPROVES a request for a donation in the sum of $880.00 to the Clontarf Foundation for a 50% waiver of fee hire of the Kingsway Sports Complex ($320) on 19 August 2016 and a donation to provide lunch ($560) for participants in the ‘Deadly Attendees Cup’; and
8. APPROVES a request for a donation for the sum of $2,000.00 towards the City of Wanneroo Volunteer Fire Services for assistance with registration costs and provision of team shirts for participation at the 2016 Australian Police and Emergency Services Games to be held in Sunshine Coast, Queensland from 8 – 15 October 2016.
Motion to Amend
Moved Cr Treby, Seconded Cr Aitken
To change recommendation 3. from ‘Not Approve’ to ‘Approve’.
3.
CARRIED UNANIMOUSLY
Motion to Amend
Moved Mayor Roberts, Seconded Cr Newton
To change recommendation 5. from ‘Not Approve’ to ‘Approve’.
5.
CARRIED UNANIMOUSLY
Substantive Motion as Amended
That Council:-
1. APPROVES a request for sponsorship in the sum of $1,200.00 to Touch Football WA for the participation of Team 1 - Western Tigers U/18s Girls - Tenae Berryman, Zion Taurima, Caitlin Miller, Eli Johnstone, Baeleigh Robinson and Juene-Kelly Mahuru and Team 2 - Western Tigers U/18s Boys - Te Area Koiatu, Trinity Miller, Calozz Paterson, Tyla Love and Jordan Tapine at the 2016 Harvey Norman National Youth Championships – Touch Football to be held in Caloundra Qld from 14 – 18 September 2016;
2. APPROVES a request for a donation for the sum of $730.00 to Ashdale Primary School Parents & Citizens Association towards a subscription to the Safety House Program 2016 and cost of Safety House educational puppet shows to be held in September 2016;
3. APPROVE a request for a donation for the sum of $1,400.00 to Proudies Foundation Inc towards costs of Golf Tournament at Marangaroo Golf Course on 7 October 2016 to raise funds for care and rehabilitation of City of Wanneroo resident Warrick Proudlove who requires 24 hour care.
4. NOT APPROVE a request for a donation for the sum of $1,000.00 to ADM Taekwondo & Martial Arts Inc towards purchase of rubber jigsaw mats for safety of students attending Taekwondo lessons at Alexander Heights Community Centre and Kingsway Indoor Stadium;
5. APPROVE a request for a donation for the sum of $5,000.00 to Rotary Twin Cities Community Walk towards putting on free community activities in the event village at the Twin Cities Community Walk to be held on 6 November 2016 at Lake Joondalup;
6. NOT APPROVE a request for a donation for the sum of $5,621.00 to VCM Perth Events towards a 100% waiver of fees and bond for hire of the Wanneroo Showgrounds from 15 – 16 October 2016 to hold a Rock and Roll Festival for Telethon;
7. APPROVES a request for a donation in the sum of $880.00 to the Clontarf Foundation for a 50% waiver of fee hire of the Kingsway Sports Complex ($320) on 19 August 2016 and a donation to provide lunch ($560) for participants in the ‘Deadly Attendees Cup’; and
8. APPROVES a request for a donation for the sum of $2,000.00 towards the City of Wanneroo Volunteer Fire Services for assistance with registration costs and provision of team shirts for participation at the 2016 Australian Police and Emergency Services Games to be held in Sunshine Coast, Queensland from 8 – 15 October 2016.
The substantive motion as amended was put and |
File Ref: 5643 – 16/296440 Responsible Officer: Director Corporate Strategy and Performance Disclosure of Interest: Nil Attachments: 1
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Moved Cr Treby, Seconded Cr Guise That Council:- 1. NOTES and CONSIDERS the motion as adopted at the Special Meeting of Electors held on 25 August 2016; 2. DOES NOT SUPPORT the motion for the following reasons: a) Senior Administration staff have previously met with the applicants and members of the Lakelands Country Club to discuss concerns and issues in relation to Lakelands and its development; b) the City of Wanneroo Council is not the assessing or determining authority of the Lakelands development application; c) the City of Wanneroo Council has no power to direct the City’s planning officers as to how to exercise professional judgement in relation to the development application before the North-West Joint Development Assessment Panel; and 3. THANKS the community for their participation and interest in the Special Electors Meeting.
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CE01-09/16 Proposed Delegations of Authority - Cat Act 2011 and Dog Act 1976 - Local Government Functions File Ref: 9167 – 16/251277 Responsible Officer: Executive Manager Governance and Legal Disclosure of Interest: Nil Attachments: 5
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Moved Cr Newton, Seconded Cr Fenn That Council:-
1. REPEALS BY ABSOLUTE MAJORITY existing Delegation 7.25 Cat Act 2011 Appointment of Authorised Persons as set out in Attachment 1;
2. REPEALS BY ABSOLUTE MAJORITY existing Delegation 11.3 Dog Act 1976 Appointment of Authorised Persons as set out in Attachment 2;
3. REPEALS BY ABSOLUTE MAJORITY existing Delegation 7.26 Dog Act 1976 Approval to keep more than 2 dogs as set out in Attachment 3;
4. DELEGATES BY ABSOLUTE MAJORITY to the Chief Executive Officer the exercise of all of the powers and duties of the local government under the Cat Act 2011 as set out in Attachment 4; and
5. DELEGATES BY ABSOLUTE MAJORITY to the Chief Executive Officer the exercise of all of the powers and duties of the local government under the Dog Act 1976 as set out in Attachment 5.
Carried by Absolute Majority 14/0 |
CITY OF WANNEROO Minutes OF Ordinary Council Meeting 13 September, 2016 131
CE02-09/16 Proposed New Bee Keeping Local Law 2016 File Ref: 25245 – 16/301583 Responsible Officer: Executive Manager Governance and Legal Disclosure of Interest: Nil Attachments: 2
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Moved Cr Newton, Seconded Cr Fenn That Council:-
1. In accordance with sections 3.12(3)(a) and (3a) of the Local Government Act 1995, GIVES state wide and local public notice stating that it proposes to make a Bee Keeping Local Law, a summary of its purpose and effect being;
Purpose The purpose of the proposed Bee Keeping Local Law is to regulate beekeeping within the City of Wanneroo.
Effect The effect of the proposed Bee Keeping Local Law is that persons must comply with the requirements of the local law when keeping bees.
2. NOTES that: a) copies of the proposed local law may be inspected at the City’s offices; b) submissions about the proposed Bee Keeping Local Law may be made to the City within a period of not less than 6 weeks after the notice is given; c) in accordance with section 3.12(3)(b), as soon as the notice is given, a copy be supplied to the Minister for Local Government and the Minister for Agriculture; and d) in accordance with section 3.12(3)(c) of the Local Government Act, a copy of the proposed Bee Keeping Local Law be supplied to any person requesting it; and
3. NOTES that all submissions received will be presented to Council for consideration. Carried Unanimously |
Nil
Nil
Moved Cr Winton
To have Item CR01-09/16 dealt with in the main Agenda, not under the Confidential Section.
MOTION LAPSED FOR WANT OF A SECONDER |
Moved Cr Aitken, Seconded Cr Fenn
That Council move into a Confidential Session to discuss items
CR01-09/16,
CR02-09/16, CR03-09/16 and CR04-09/16 under the terms of the Local Government
Act 1995 Section 5.23(2).
CARRIED UNANIMOUSLY
The meeting was closed to the public and all recording ceased at 8:41pm.
Cr Parker declared a financial interest in Item CR01-09/16 due to her family being one of the submittors to the Expression of Interest.
Cr Parker left Chambers at 8:43pm.
CR01-09/16 Proposed commercial lease of a portion of Lot 9740, Brazier Road, Yanchep (Yanchep Lagoon Cafe) File Ref: 4229 – 16/287758 Responsible Officer: Director Corporate Strategy and Performance Disclosure of Interest: Nil Attachments: 4 Previous Items: CR01-12/14 - Deed of Settlement and Release - Peter Morgan and Sue Morgan, trading as the Yanchep Lagoon Beach Cafe, portion of Lot 9740 (Reserve 43792) Brazier Road, Yanchep - Ordinary Council - 09 Dec 2014 7:00pm This report was dealt with in confidential session, under the terms of the Local Government Act 1995 Section 5.23(2), as follows: (c) a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting (e)(ii) a matter that if disclosed, would reveal information that has a commercial value to a person, where the information is held by, or is about, a person other than the local government (e)(iii) a matter that if disclosed, would reveal information about the business, professional, commercial or financial affairs of a person, where the information is held by, or is about, a person other than the local government |
Moved Cr Aitken, Seconded Cr Driver That Council:- 1. REJECTS all submissions received under the Expression of Interest process for a commercial lease of a portion of Lot 9740 Brazier Road, Yanchep (Yanchep Lagoon Café); 2. AUTHORISES the Chief Executive Officer to investigate securing: a) a temporary vendor (or vendors) to operate a portion of Lot 9740 Brazier Road, Yanchep (Yanchep Lagoon Café) for a term or terms not exceeding six (6) months in each case; and/or b) food vans (or similar service providers) to operate in the locality of Brazier Road, Yanchep;
3. DELEGATES BY ABSOLUTE MAJORITY to the Chief Executive Officer the authority to advertise for interested parties, negotiate commercial terms, execute all documents and comply with all applicable legislation as is required to effect items 2a) and 2b); 4. ENDORSES the City conducting a strategic review into the use of Lot 9740 Brazier Road, Yanchep, including (but not limited to) the retention of the existing building and the potential to redevelop the site and REPORT to Council for the mid-year budget review; and 5. DEEMS that except for the probity advice (and any section of the report that discusses the probity advice) there is no requirement for this report to remain confidential and AUTHORISES the release and disclosure of this report in accordance with section 5.94(p) of the Local Government Act. carried 11/3
For the motion: Cr Aitken, Cr Cvitan, Cr Driver, Cr Fenn, Cr Guise, Cr Newton, Cr Parker, Mayor Roberts, Cr Simpkins, Cr Treby and Cr Zappa
Against the motion: Cr Nguyen, Cr Sangalli, Cr Winton
Administration Comment
In accordance with part 5 of the resolution made on this item, the Agenda report is attached at the end of these minutes.
Strategic Consideration – Necessary to Reinvestigate the Strategic Vision for the Overall Yanchep Lagoon Area
Administration supports the view that a strategic investigation is timely with the new surf club underway, the upgrade to Fisherman’s Hollow and potential for strategic review of the old surf club site. However it should be noted that a detailed and holistic review of the strategic options for the area will take time. The progress and outcome of the review will be the subject of a further Council report.
Given that the current sublease at the Yanchep Lagoon Café (Café) expires on 30 September 2016 (and includes no holdover provision or further option of renewal), the premises will become vacant. The Yanchep Lagoon locality lacks food, beverage and beach supply retailers other than the Café. It is noted that the busy summer season is approaching, and a level of amenity is expected by locals, tourists and other beach users. The closure of the premises during this time is likely to present reputational risk for the City. This reputational risk could be mitigated by pursuing a short term lease (six months) and/or seeking other vendors (food vans or similar) at the site.
An alternative lease would need to comply with the Commercial Tenancies Act 1985 (CTA) and the Local Government Act 1995 (LGA). Accordingly, the maximum term offered could not exceed six months in each case (in order to avoid the lessee’s statutory right under the CTA to a term of five years) and it would need to be advertised under the LGA inviting submissions. This position accords with external legal advice received.
Section 18 of the Land Administration Act 1997 also requires the City to obtain consent from the DOL for any lease.
The delegation to the Chief Executive Officer to be authorised to approve short term leasing of the premises for terms not exceeding six months in each case will allow sufficient flexibility for the City to secure a lessee of the premises while the strategic review is ongoing. In the event that a short term lease or vendor cannot be secured, the site will remain vacant while the review is ongoing. In addition to seeking short term operators at the premises, the City will need to ensure that the security of the site is monitored and maintained to reduce the potential for vandalism and anti-social behaviour. |
Cr Parker returned to Chambers at 9:20pm.
CR02-09/16 Proposed Disposition of Portion of Lot 600 (570) Wattle Avenue Neerabup for Development of a Waste to Energy Facility File Ref: 26576 – 16/291909 Responsible Officer: Director Corporate Strategy and Performance Disclosure of Interest: Nil Attachments: 3 This report was dealt with in confidential session, under the terms of the Local Government Act 1995 Section 5.23(2), as follows: (c) a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting
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Moved Cr Guise, Seconded Cr Cvitan That Council:- 1. AGREES to the purpose of Waste to Energy use on the identified portion of Lot 600 (570) Wattle Avenue, Neerabup; 2. AGREES in principle to support the proposal to dispose of the identified portion of Lot 600 (570) Wattle Avenue, Neerabup by sale or land lease, to the Proponent as discussed within the report; 3. AUTHORISES the CEO to support in principle other land disposition proposals for the identified portion of Lot 600 (570) Wattle Avenue, Neerabup; 4. NOTES that a further report will be presented to Council to consider the agreed preferred method of disposition of portion of Lot 600 (570) Wattle Avenue, Neerabup subsequent to the negotiated terms and conditions between the City and the Proponent; 5. NOTES any potential disposition supported by Council in 2. above will require the City to give local public notice of the proposed disposition in accordance with Section 3.58 (3) of the Local Government Act; and 6. NOTES that an additional Council report may be required in the event that submissions are received following the conclusion of the local public notice period outlined in 5. above. |
Cr Zappa declared an indirect financial interest in Item CR03-09/16 due to his employer RSM Australia Pty Ltd being engaged as auditors of the Committee of Perth, to which they provide pro-bono services.
Cr Zappa left Chambers at 9:23pm.
File Ref: 5642V02 – 16/298704 Responsible Officer: Chief Executive Officer Disclosure of Interest: Nil Attachments: Nil This report was dealt with in confidential session, under the terms of the Local Government Act 1995 Section 5.23(2), as follows: (e)(ii) a matter that if disclosed, would reveal information that has a commercial value to a person, where the information is held by, or is about, a person other than the local government
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Moved Cr Treby, Seconded Cr Guise That Council APPROVES the City of Wanneroo participating as the sole local government supporting funder in the Committee for Perth Major Research Project titled Bigger and Better, Beyond the Boom in recognition of the importance of both the Neerabup Industrial Area and the Yanchep Strategic Metropolitan Centre to the economic growth of the region.
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Cr Zappa returned to Chambers at 9:24pm.
The Chief Executive Officer declared a financial interest in Item CR04-09/16 due to the matter relating to employment arrangements of the CEO.
The CEO and all staff except for the Manager, Governance and Legal left Chambers at 9:25pm.
File Ref: 5642V02 – 16/300244 Responsible Officer: Executive Manager Governance and Legal Disclosure of Interest: Nil Attachments: Nil This report was dealt with in confidential session, under the terms of the Local Government Act 1995 Section 5.23(2), as follows: (a) a matter affecting an employee or employees
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Moved Mayor Roberts, Seconded Cr Guise That Council:-
1. ADOPTS the report and recommendations prepared by Mr Gary Martin for the CEO’s 2015/16 Performance Review as detailed in Attachment 1 and confirms that the CEO’s performance review resulted in a high level of satisfactory performance that met the KPI’s and exceeded the job requirements;
2. AGREES that the Chief Executive Officer met the performance criteria requirements of the CEO’s contract of employment;
3. ADOPTS the key performance indicators for the 2016/17 period as detailed in this report which are in addition to the performance criteria set out in contract of employment;
4. AGREES to extend the employment of Mr Daniel Simms as the Chief Executive Officer of the City of Wanneroo for a period of 5 years commencing from September 2016 and concluding in September 2021;
5. APPROVES the Chief Executive Officer’s request to Council as detailed in this report;
6. AUTHORISES the Mayor to execute a new five year contract of employment between the Chief Executive Officer and the City of Wanneroo on the terms set out in this report; and
7. AGREES to appoint Mr Gary Martin, Local Government consultant to facilitate and undertake this Chief Executive Officer performance review in each of the term of the new Chief Executive Officer’s contract of employment.
Carried Unanimously
|
Moved Cr Newton, Seconded Cr Fenn
That the meeting be reopened to the public.
CARRIED UNANIMOUSLY
The meeting was reopened to the public and all recording recommenced at 9:29pm.
Mayor Roberts read aloud the resolutions carried on Items CR01-09/16; CR02-09/16; CR03-09/16 and CR04-09/16.
The next Elected Members’ Briefing Session has been scheduled for 6:00pm on Tuesday 4 October 2016, to be held at the Civic Centre, 23 Dundebar Road, Wanneroo.
There being no further business, the presiding person closed the meeting at 9:35pm.
In Attendance
TRACEY ROBERTS, JP Mayor
Councillors:
FRANK CVITAN, JP Central Ward
SAMANTHA FENN Central Ward
DIANNE GUISE Central Ward
DOT NEWTON, JP Central Ward
LINDA AITKEN North Coast Ward
RUSSELL DRIVER North Coast Ward
GLYNIS PARKER North Coast Ward
NATALIE SANGALLI North Coast Ward
SABINE WINTON North Coast Ward
HUGH NGUYEN South Ward
LARA SIMPKINS, JP South Ward
BRETT TREBY South Ward
DOMENIC ZAPPA South Ward
Copy of Report from Agenda of 13 September 2016
CR01-09/16 Proposed commercial lease of a portion of Lot 9740, Brazier Road, Yanchep (Yanchep Lagoon Cafe)
File Ref: 4229 – 16/287758
Responsible Officer: Director Corporate Strategy and Performance
Disclosure of Interest: Nil
Attachments: 4
Previous Items: CR01-12/14 - Deed of Settlement and Release - Peter Morgan and Sue Morgan, trading as the Yanchep Lagoon Beach Cafe, portion of Lot 9740 (Reserve 43792) Brazier Road, Yanchep - Ordinary Council - 09 Dec 2014 7:00pm
This report is to be dealt with in confidential session, under the terms of the Local Government Act 1995 Section 5.23(2), as follows:
(c) a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting
(e)(ii) a matter that if disclosed, would reveal information that has a commercial value to a person, where the information is held by, or is about, a person other than the local government
(e)(iii) a matter that if disclosed, would reveal information about the business, professional, commercial or financial affairs of a person, where the information is held by, or is about, a person other than the local government
Issue
To consider the proposed lease of a 320m2 (approximate) portion of Reserve 43792, Lot 9740, Brazier Road, Yanchep (known as “Yanchep Lagoon Café” and described in this report as the Premises).
Background
Land
The Premises is located at Crown Reserve 43792, Lot 9740 on Deposited Plan 182685, (10) Brazier Road, Yanchep, being the whole of the land comprised in Certificate of Title LR3047 Folio 837 (Lot 9740) (Attachment 1 refers).
Lot 9740 comprises an area of 527m2 and is classified as a category “C” reserve. It is zoned “Parks and Recreation” under the Metropolitan Region Scheme and “Regional Parks and Recreation” in the City of Wanneroo District Planning Scheme No.2.
A 320m2 (approximate) portion of Lot 9740 (being the Premises) is utilised as a café/kiosk (also stocking ancillary beach supplies). The lease area is relatively small and quite restrictive as the remaining 207m2 (approximate) portion of Lot 9740 comprises male and female public toilets and change rooms. These ablutions, whilst outside the leased area and maintained by the City, are utilised by the Premises’ patrons.
Crown Lease and Management Order
The City currently leases Lot 9740 from the State of Western Australia (through the Minister for Lands), under a Crown lease for a term of 21 years, expiring 30 September 2016 for the purpose of “municipal and commercial facilities ancillary and beneficial to beachfront recreation” (Head Lease). The Head Lease was entered instead of a Management Order, which is the more common arrangement for City control over Crown land.
Under the Head Lease, normal care and control responsibilities currently rest with the City along with standard lease provisions.
On 3 June 2016, the Department of Lands (DOL) confirmed that a new Management Order for Lot 9740 was to be vested in the City. The new Management Order will be for the purpose of “Recreation”, and will include the power to lease for a term not exceeding 21 years (subject to the consent of the Minister for Lands). This will mean that any future tenancy arrangement will be as a lease from the City (rather than via a sublease as is anticipated for the new tenancy, see below).
It is anticipated that the new Management Order will be in place prior to the expiry of the current Head Lease.
City’s Sublease
The current Sublease of the Premises commenced on 1 October 1995, between the City as sublessor and Francis Tonka Price and Richard John Price (as Trustees for and on behalf of the Price Family Trust) as sublessee for an original term of thirteen (13) years and nine (9) months (expiring 30 June 2009), together with an option for a further term of seven (7) years and three (3) months, commencing 1 July 2009 and expiring 30 September 2016 (Sublease).
Since the commencement of the Sublease, the tenancy has been assigned on three occasions. At the Ordinary Meeting held on 20 November 2007 (CS04-11/07), Council consented to the most recent assignment of the Sublease between the City, PJ Dash Pty Ltd and Peter and Susan Morgan (as Trustees for the Morgan Family Trust) (Existing Operator). This was documented in a Deed of Assignment between the relevant parties dated 3 December 2007 and approved for the purposes of section 18 of the Land Administration Act 1997 by the DOL.
The Existing Operator trades as Yanchep Lagoon Beach Café.
On 12 March 2009, the Existing Operator exercised its option of renewal for a further term commencing 1 July 2009, (expiring on 30 September 2016), bringing the expiry of the Sublease into line with that of the Head Lease (i.e. expiring on 30 September 2016).
There is no scope to hold over at the end of the Sublease term, meaning that the Existing Operator may need to vacate the Premises if no further tenure and access permission has been secured by that time. In consultation with DOL, the City would contemplate permitting the Existing Operator to occupy the Premises (without trading) until a new lease commences.
As a result of the business carried on at the Premises, the tenancy is classified as a “Retail Shop” under the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) (CTA). The terms of the CTA apply to the Sublease agreement between the City and the Existing Operator.
Relationship with the Existing Operator
Brazier Road was substantially upgraded and realigned by the City during 2013/14 and 2014/15 (Brazier Road Works). These works were undertaken in a two stage process to enable the Premises to remain open and minimise disruption to the Existing Operator’s business.
During the course of the Brazier Road Works, the Existing Operator claimed that the works had detrimentally impacted its business. The City and the Existing Operator resolved this issue resulting in the Existing Operator continuing to trade through to the expiration of the Sublease term.
Council resolved on 9 December 2014 (CR01-12/14):
“That Council:-
1. DELEGATES BY ABSOLUTE MAJORITY to the CHIEF EXECUTIVE OFFICER the authority to settle the dispute between Peter Morgan and Susan Morgan trading as the Yanchep Lagoon Beach Café, and the City of Wanneroo in respect of the Yanchep Lagoon Cafe and the Brazier Road Project to the value outlined in the report; and
2. AUTHORISES the affixing of the Common Seal of the City of Wanneroo to a Deed of Settlement and Release between the City and Peter Morgan and Susan Morgan trading as the Yanchep Beach Lagoon Beach Café, in accordance with the City's Execution of Documents Policy.”
Current Works on Brazier Road
A new single storey surf lifesaving facility (New Surf Club) is being constructed by a City contractor on land situated to the north of the Premises in Reserve 12439 (Crown land vested in the City). The New Surf Club is scheduled to be completed in December 2016. The New Surf Club does not incorporate any facilities for the retail sale of food and drink (such as via a café or kiosk), but there is potential that future upgrade of the New Surf Club could be designed to include such operations.
In addition, the City has appointed a contractor to refurbish the existing Fisherman’s Hollow/Picnic Cove toilet block (located due south of Lot 9740 on Reserve 29694 and Reserve 12439, both vested in the City). It is currently anticipated that these works will be completed by late 2016.
Although it is not the subject of the present report, preliminary investigations are underway regarding the future of the existing site (Reserve 39022) of the Yanchep Surf Life Saving Club (Yanchep SLSC) following the relocation of Yanchep SLSC to the New Surf Club. At this stage, it is anticipated that a future potential ground lease could be developed which would involve an EOI process to appoint a suitably qualified and experienced individual/operator to develop Reserve 39022 (by enlarging the permitted lease term and slightly expanding the reserve area) at its own cost, subject to Council and Ministerial consent. The management order for Reserve 39022 already allows for the leasing of the site.
Subject to in principle support being secured from the DOL regarding the potential to adjust Reserve 39022, further due diligence will be conducted on the options for the site. In the event that there is scope to lease the site, the matter would be the subject of a further report to Council. A timeframe cannot be confirmed at the date of the present report.
Building Condition Assessment
The Premises was constructed circa late 1960s/early 1970s and is of brick/iron construction. The main roof was replaced circa late 1980s/early 1990s and consists of a hipped colorbond custom orb roof. The Premises is exposed to coastal elements and, as a result, requires some external maintenance works. Internal presentation is now dated and requires renovation.
The City appointed JDI Projects (JDI) to undertake a building condition assessment report on the Premises on 24 February 2016. JDI’s report on 11 March 2016 (Attachment 2 refers) identified required maintenance to be undertaken, also determined that the estimated remaining life of the Premises is twenty (20) years.
The condition of the building is generally due to fair wear and tear, and not as a result of a default by the Existing Operator in its performance of the Sublease.
Expressions of Interest
Following review of JDI’s report and the anticipated remaining life cycle of the Premises, the City initiated an Expression of Interest (EOI) process in order to find the most suitable candidate to lease the Premises. The Head Lease and Sublease will both expire 30 September 2016, with the new lease to commence from 1 October 2016.
The purpose of the EOI process is to determine a competent lessee to re-fit and operate the Premises as a café/kiosk. The proposed refurbishment will be accommodated within the building’s existing structure and will be implemented at the cost of the lessee (at no additional cost to the City).
The EOI process was a two stage undertaking:
· Stage 1: The City called for submissions from interested parties wishing to lease the Premises. Submission content was limited to the party’s contact details and confirmation of intent to lease.
The City placed a public notice in the Sun City News on 7 April 2016 and also on the City’s website. Additional Public Notices were placed in both the North Coast Times and the Wanneroo Times on 12 April 2016. The deadline for Stage 1 EOI submissions was 4.30pm, 26 April 2016.
Thirty-eight (38) submissions were received.
· Stage 2: The parties who made Stage 1 submissions were sent an information package outlining the details of the Premises and including selection criteria (Attachment 3 refers).
The selection criteria were developed with input from Economic Development and Contracts and Procurement, with the view to securing an appropriate tenant.
A total of eleven (11) formal Stage 2 submissions were received prior to the deadline of 4.30pm, 27 May 2016.
Despite some verbal enquiries by other parties prior to the closure of Stage 1 of the EOI process, no proposals other than the above noted EOI submissions were made for the use of the Premises (whether in its current form or following a redevelopment of the site). In particular, no party submitted a proposal outside the terms of the Stage 2 EOI criteria or suggested that they would be able to offer an alternative vision for the site.
Detail
Evaluation of EOI Submissions
Any recommended candidate, as determined by the evaluation of EOI submissions, is subject to Council approval prior to advertising in accordance with section 3.58 of the Local Government Act 1995 (WA) (LGA), and is further subject to Ministerial consent.
It is proposed that upon appointment of the preferred candidate, the City will provide it with a commercial lease that complies with the CTA and includes the proposed essential commercial lease terms as outlined in this section of the report to enable the parties to complete private treaty negotiations.
Evaluation Process
All submissions were assessed by an evaluation panel (the Evaluation Panel) in accordance with the identified selection criteria and weightings. The Evaluation Panel comprised members from multiple City service units.
The key objectives of the Evaluation Panel were to ensure:
· assessment of submissions in accordance with the predetermined weighting schedule;
· evaluation of the criteria specified in the Stage 2 EOI in a way that can be measured and documented;
· adherence to City policies and applicable legislation; and
· a recommendation is made to Council as to the preferred submission.
Evaluation Panel members individually scored each submission against the qualitative criteria using a 0-10 rating scale. The Evaluation Panel then met and reached a consensus score that was then weighted.
The Evaluation Panel determined that the four leading candidates were the following parties (ranked, with “1” being the leading candidate identified by the Evaluation Panel):
1. The Existing Operator (Peter and Susan Morgan (as Trustees for the Morgan Family Trust)) (proposed to trade as “Lagoon Café Yanchep”);
2. Ben Donaldson, Natalie Donaldson, Nicola Moores and Ian Moores, who proposed to incorporate an operating company known as Fudge Espresso Pty Ltd. The four named individuals had prior hospitality experience, and proposed to carry on the business under the trading name “Fudge Coffee House”) (Fudge);
3. John and Rebecca Hutton (proposed to trade as “The Lagoon Beach Club”) (Hutton), the named individuals being the operators of “Chippy’s Group” of hospitality businesses (one of which operates from a site leased by the City); and
4. Lloyd, Raymond, Cheryl and Glynis Parker (proposed to trade as “Yanchep Lagoon Café”) (Parker), in the case of Lloyd and Raymond Parker being the lessees of the City’s tenancy at Tenancy 4, Clarkson (adjacent to Clarkson Library), and in the case of Glynis Parker being an Elected Member of the City.
The submissions by the four leading candidates were considered by the Evaluation Panel to be of a high standard. However, the remaining seven submissions were not considered viable options for the future lease of the Premises.
It was initially intended that the matter would be reported to Council at its Ordinary Meeting of 19 July 2016, on the basis that the Existing Operator and Fudge were the leading candidates following the Evaluation Panel’s evaluation. A report was listed on the Agenda for the Council Briefing meeting on 12 July 2016, with the Existing Operator identified as the candidate recommended by the Evaluation Panel.
Due to the enquiries from the City’s Executive, it was considered appropriate to undertake additional due diligence within the scope of the EOI criteria. The report was withdrawn prior to the Council Briefing meeting on 12 July 2016.
The further due diligence comprised the following items:
1. Review of the Evaluation Panel’s assessment of the four leading candidates by a review panel (the Review Panel), comprising officers from multiple service units and supported by members of the Evaluation Panel.
2. The quick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog. The quick brown fox jumps over the lazy dog.
3. Unscheduled visits by the Review Panel to each of the hospitality business currently carried on by the leading candidates (including taste testing), being:
a) The Existing Operator: The Premises;
b) Fudge: BLK Espresso and Llama Espresso, both in Carillion Arcade, Perth;
c) Hutton: Chippy’s Beach Shack, Jindalee; and
d) Parker: Brewed Awakening, Clarkson.
4. Requests for additional clarification from the four leading candidates, within a seven day response period, on items identified within the original assessment criteria:
a) Financial information;
b) Referees; and
c) Fitout.
5. Telephone reference check enquiries to the referees provided at 4b) above.
It was determined by the Panel that there were two leading submissions, namely the Existing Operator and Fudge. The Existing Operator and Fudge secured weighted scores of 87.5 and 82.13 (out of 100) respectively.
The two leading candidates made strong submissions in this respect:
· Both kitchen/café layouts and renovation plans were reasonable.
· The Existing Operator has knowledge of the local clientele and reflects this in their menu (including specials such as for seniors), a family orientation and a clear vision of the target market.
· The Existing Operator’s submission was considered to better reflect the location and anticipated community expectations for the Premises. Their menu catered for the demands of locals, tourists and other customers, and the fit out and branding was more sensitive to local traditions. The engagement of an Indigenous artist to assist with brand re-design was viewed as a positive aspect of the submission.
· Fudge submitted a menu that was arguably more trend orientated than family orientated, and was less extensive. For example, the breakfast menu lacked bacon and eggs.
· Fudge’s submission faced potential market constraints in its proposed trading hours (which did not include evenings) and its product range (which were more limited than those offered by the Existing Operator). Further, the submission was considered more appropriate for an inner city site, such as a café, and had less regard for the Yanchep location.
During the evaluation by the Review Panel, Hutton withdrew from the EOI process. At the time, Hutton was placed third in the interim evaluation rankings (weighted score of 79.13 out of 100). Due to the withdrawal, Hutton did not form part of the Review Panel’s final determination.
Parker provided a high quality menu and presentation at the existing Clarkson premise was impressive. However their overall score of 70.13 was due to both Panels’ concerns of staging the works without a prescribed timeframe, optimistic financial assumptions and concerns regarding how the highly personalised standard at their Clarkson premises would be maintained in conjunction with the expansion of Yanchep. No other candidates secured a weighted score in excess of 70.
Outcome of Assessment
The Evaluation Panel and the Review Panel confirmed that the leading candidates’ submissions were all of a high standard.
The Existing Operator (Peter and Susan Morgan) achieved the highest score in accordance with the evaluation process. For that reason, is the candidate recommended by the present report.
The recommendation of the Existing Operator is made despite acknowledged reservations regarding their past performance as sublessee (as reflected in the condition of the Premises). Performance considerations will, where permissible, be managed and controlled through the proposed lease.
It is also noted that, subsequent to the determination by the Review Panel, health regulation compliance issues were identified in the course of an inspection by City environmental health officers. The compliance aspects were considered minor and capable of rectification, and would not have prompted a default under the Sublease.
Lease
Under the terms of the City’s Leasing Policy approved by Council, the Existing Operator is categorised as a “commercial” entity, being a non-exempt disposition under the CTA. 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 determine the appropriate current market rent. A valuation report was provided to the City by the licenced valuer on 4 March 2016 that concluded that the current market rent is $20,000 (plus GST) per annum plus outgoings.
It is therefore proposed, subject to Council and Ministerial approval and the requirements of the CTA being satisfied, to enter into a “private treaty” lease arrangement with the Existing Operator.
Accordingly, the following essential terms are proposed for the commercial lease and will be presented to the Existing Operator should Council approve the terms:
Leased Premises: |
Exclusive use of the Yanchep Lagoon Cafe being an area of approximately 320m2 (Attachment 1 refers) to Peter and Susan Morgan (as Trustees for the Morgan Family Trust) trading as the “Lagoon Café, Yanchep” (the Lessee) |
Permitted Purpose: |
Café/Kiosk and ancillary purposes |
Lease Term: |
Five (5) years with a five (5) year option (subject to the Premises being maintained to a high standard by the Lessee during the initial term) |
Lease Commencement Date: |
1 October 2016 (with fit out works completed within 6 weeks of the Commencement Date to enable the commencement of operations) |
Rent Commencement Date: |
Four (4) weeks after the Lease Commencement Date following the completion of fit out works |
Lease Rental: |
$20,000 (plus GST) per annum plus turnover rent at 1% above gross sales turnover of $590,000 |
CPI/Rent Reviews: |
Annual increase in accordance with CPI. A market rent review will apply at the commencement of the proposed five (5) year option period should the Lessee exercise the option in accordance with the terms of the lease |
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 for Commercial Council rates and Emergency Services Levy and any other rates, taxes, assessments and impositions |
HVAC/Mechanical Services: |
Lessee responsibility |
Building Insurance: |
Lessor responsible to implement (lessor to on charge the premium to the Lessee) |
Public Liability Insurance: |
Lessee responsibility - $20 million (minimum) |
Other Insurances: |
Including (but not limited to) Plate Glass, Workers Compensation, Breakdown Insurance and Property Damage Cover |
Cleaning: |
Lessee responsibility (including the non-leased bin store structure identified in Attachment 1) |
Beach & Local Produce Area: |
Lessee responsible to designate a small area of the tenancy for ancillary beach equipment and local produce items |
Lessee Services: |
Lessee responsible for the provision of any special requirements |
Compliance: |
Lessee responsibility |
Existing Fixtures, Fitting and Appliances: |
Lessee responsibility. The Premises will be leased by the lessor to the Lessee on an “as is” basis |
Required Refurbishment Works: |
Lessee responsibility: External · paint eaves (western elevation); · paint exposed timber purlin (eastern elevation); · paint corroded metal screen (northern elevation); · replace shade cloth to covered al-fresco soffit (northern elevation); · replace corroded hinges on main entry door with stainless steel hinges; · fill holes and plinths with concrete and front step expansions with mastic; · install anti-slip step nosing to all steps; · prime and paint all external metal fittings including metal doors, frames and lintels; and · replace non-compliant front entry door ramp (north) with a compliant ramp. Internal · paint cool room floor; · replace dining area ceiling panels; · replace damaged kitchen tiles; · replace corroded ceiling ventilation grill; and · install hand basin in staff toilet as per health regulations.
The Lessee will also be responsible for any additional works at the Premises as are required due to its proposed fit out, such as compliance with building regulations. |
Required Fit Out Works: |
Lessee responsibility – Works obligations will include submission to the City of required Development Approval and Building Licence applications and associated fees. Failure to complete the fit out works will be a breached of the Lessee’s obligations |
Signage: |
Lessee responsibility – including relevant submission to the City of required Signage applications and associated fees |
Food Act and Health Services Assessment: |
Lessee responsibility to notify and register with the City the relevant forms and associated fees |
Maintenance: |
Lessee responsibility. Failure to maintain the Premises is a breach of the Lease. |
Structural Maintenance: |
Lessor responsibility, save for any structural works arising from the lessee’s renovations and fit out (which will be the Lessee’s responsibility) |
Bank Guarantee: |
The Lessee is to provide a bank guarantee or security bond of $5,000 |
Quiet Enjoyment: |
The Lessor cannot guarantee against interruptions to Quiet Enjoyment. It has the care, control and management of Lot 9740 along with other roads, reserves and road 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): · pedestrian movement and access; · vehicle movement, damage, access and parking; · vibration and noise levels; · dust and dirt; and · varying timeframes of works. As a result, the City/contractor works will not be considered as having breached the Lessee’s “quiet enjoyment” of the Premises. |
The successful candidate’s proposed works will be annexed to the lease, which will also stipulate timeframes for securing development approval and completing the works. Failure to perform the works will provide scope for the City to terminate the lease.
Under the CTA, the lessee has the right to trade during whatever time the lessee wishes. The City cannot compel the lessee to open at specific days and times.
It is proposed that, subject to Council approval to the lease terms, formal commercial lease documentation will be prepared to reflect those terms and to comply with the disclosure requirements of the CTA. Preparation of the lease by the City’s solicitors is already underway at the date of the present report, subject to approval of the lease terms by Council.
Consultation
Section 18 of the Land Administration Act 1997 requires the City to obtain consent to the lease from the DOL on behalf of the Minister for Lands. Once the lease has been prepared and is accepted by the lessee, the City will forward the document to the DOL for its consideration and consent.
Comment
Recommended Candidate
The Premises is dated and tired, but provides a service to the public and tourists. Through its prime location and current lack of competition, an extensive upgrade and change of image would improve its potential to increase patronage and provide a quality service.
The Existing Operator’s submission addressed all aspects of the selection criteria comprehensively and professionally. Subsequent reference checks were satisfactory.
Accordingly, the Existing Operator is identified as the recommended candidate for a new lease. This recommendation is made in acknowledgement of the quality of the other EOI submissions, in particular those by Fudge, Chippy’s and Parker.
The Existing Operator under the Sublease has demonstrated limited attention to maintenance to the Premises, as reflected by the tired appearance of the site. This issue will be managed and mitigated under the new lease. The terms of the proposed lease will include stringent conditions including time-defined requirements for the renovation of the Premises (and conditioned maintenance). Performance of the new lease will be closely monitored by City officers.
The lease will also reasonably excise scope for claims relating to other works conducted by the City in the vicinity of the Premises, as it is appropriate for the City to conduct works as managing authority of the locality (including manager of the adjoining road reserve).
The above requirements were previously indicated in the terms of the Stage 2 EOI information package.
The proposed new lease of the Premises to the Existing Operator (Peter and Susan Morgan) is supported in the manner outlined in this report. The proposed lease conditions will protect the City’s interest in the Premises.
Inviting Submissions
Should Council agree to the proposed lease, given it is not an “exempt disposition”, and 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, the lease will not be executed until a further report is presented to Council for consideration.
Statutory Compliance
The public notice advertisement will comply with the requirements of Section 3.58 of the LGA 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 is required along with the provision of a Disclosure Statement.
Strategic Implications
The proposal aligns with the following objective within the Strategic Community Plan 2013 – 2023:
“3 Economy - Progressive, connected communities that enable economic growth and employment.
3.2 Growing Business - Our community is a preferred place for business to locate and grow.”
Risk Management Considerations
The following 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 these risks to improve the existing management systems.
Risk Title |
Risk Rating |
Relationship Management |
Moderate |
Land Development (Corporate) |
Low |
Accountability |
Action Planning Option |
Executive Management Team |
Manage |
There is also a reputational risk related to public expectations that the successful lessee will improve the operation of the Premises. This risk will be managed by the lease and the obligations imposed on the lessee to conduct its fit out and renovations. The Existing Operator proposes to improve the appearance of the Premises with an improved fit out, and the lease will ensure that the successful lessee completes its works.
As a further consideration, the successful lessee’s capital investment in the fit out and renovations should encourage the lessee to maintain a successful business, with customer service to be a significant element of business performance.
Policy Implications
The proposed lease has been negotiated in accordance with the “commercial” guidelines as outlined in the City's Leasing Policy.
Financial Implications
The proposed commercial lease will generate an annual income stream to the City of $20,000 (plus GST) per annum plus turnover rent at 1% above gross sales turnover of $590,000. Annual CPI increases will apply together with an opportunity to review the rent to market at the commencement of the proposed option period, should the Existing Operator elect to exercise the option.
The EOI process has been conducted within existing operational budgets.
Advertising costs incurred to date are limited to Stage 1 EOI public notices - $851.71 (inclusive of GST) (Wanneroo Times and the North Coast Times).
Anticipated further advertising costs:
· Stage 1 EOI public notices - estimate $500 (approximate) (inclusive of GST) (Sun City News – invoice not received to-date); and
· Public notices pertaining to the future disposition to the successful candidate – estimate $1,500 (approximate) (inclusive of GST) (Wanneroo Times, North Coast Times and Sun City News).
The City will also incur lease preparation costs. Changes to the CTA in 2013 prohibit lessors from claiming legal expenses relating to the preparation, negotiation or execution of leases and associated documentation. It is estimated that the preparation of the proposed commercial lease by the City's external solicitor will cost in the region of $2,000 (plus GST) and disbursements.
Voting Requirements
Simple Majority
That Council:-
1. ENDORSES Peter and Susan Morgan (as trustees for the Morgan Family Trust) as the preferred candidate following an expression of interest process for the lessee of a new lease of an approximate 320m2 portion of Reserve 43792, Lot 9740 (10) Brazier Road, Yanchep (known as the Yanchep Lagoon Café, (Attachment 1 refers);
2. APPROVES, in principle, a commercial lease of the Yanchep Lagoon Café, being an approximate 320m2 portion of Reserve 43792, Lot 9740 (10) Brazier Road, Yanchep to be formalised pursuant to private treaty lease negotiations with Peter and Susan Morgan (as trustees for the Morgan Family Trust), for a term of five (5) years together with one (1) option for a further term of five (5) years (the Lease), subject to the requirements of the Commercial Tenancy (Retail Shops) Act 1985 (WA) and the approval of the Minister for Lands;
3. 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);
4. NOTES if any submissions are received a further report will be presented to Council; and
5. In the event there are no submissions,
a) NOTES the Chief Executive Officer under delegated authority will approve the Lease; and
b) 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 - Premises (Leased Area and Bin Store) |
16/223376 |
|
2⇩. |
Attachment 2 - Building Condition Report |
16/228678 |
|
3⇩. |
Attachment 3 - EOI Stage 2 Information Pack |
16/234089 |
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