General Manager's Report 15/07, 28 August 2007 · 2015. 8. 12. · INVESTMENT REPORT – 31 July 2007 and as at 24 August 2007 Report Summary This report provides details of Council’s

CITY OF RYDE

ACTING GENERAL MANAGER’S REPORT NO. 15/07

Council Meeting – 28 August 2007

CONTENTS Item Property/Subject Page

1 INVESTMENT REPORT – 31 July 2007 and as at 24 August 2007.................. 1

2 INVESTMENTS - Collateralised Debt Obligations (CDO’s)............................ 28

3 DRAFT INTEGRATED TRANSPORT AND LAND USE STRATEGY............... 36

4 REGISTERS - Power of Attorney and Common Seal ..................................... 41

CONFIDENTIAL ITEMS

5 ADVICE ON COURT ACTIONS.......................................................................... 42

PRECIS OF CORRESPONDENCE 1 From: Department of Local Government

Dated: 17 August 2007 RE: Council Investments

NOTICES OF MOTION 1 Notice of Motion in the name of Councillor Wilde OAM re: Essential Services

North Ryde Common.

This is page no. 1 of the Acting General Manager’s Report No.15/07, dated 24 August 2007, submitted to Council on 28 August 2007. Acting General Manager Chairperson

ACTING GENERAL MANAGER’S REPORT NO.15/07

24 August 2007 The Mayor and Councillors ITEM 1 INVESTMENT REPORT – 31 July 2007 and as at 24 August 2007 Report Summary This report provides details of Council’s performance against benchmark of its Investment portfolio for the month of July 2007. The report outlines that due to impacts on global markets, Council’s investment returns for July are negative, being 1.02% below the UBSA Bank Bill Index. The report outlines various actions taken in respect of Councils portfolio due to the recent volatility in the investment markets. It reinforces Council’s investments are compliant to all legislative requirements and outlines further actions proposed to be taken in the management of Council’s portfolio. Background The Chief Financial Officer as Council’s Responsible Accounting Officer is required to and has reported to Council on a monthly basis on Council’s Investment Portfolio and certified that the Investments are held in accordance with Council’s Investment Policy and Section 625 of the Local Government Act. Council’s Investment Policy and the Minister’s Investment Order are ATTACHED. Council’s Investment Policy, adopted on 4 October 2005, requires that all investments are to be made in accordance with:

Local Government Act 1993 - Section 625 - City of Ryde’s investment portfolio complies

Local Government Act 1993 - Order (of the Minister) dated 15 July 2005 – City of Ryde’s investment portfolio complies

The Trustee Amendment (Discretionary Investments) Act 1997 – Sections 14A(2), 14C(1) & (2) - City of Ryde’s investment portfolio complies

Local Government (Financial Management) Regulation 1993 - City of Ryde’s investment portfolio complies

The Code of Accounting Practice and Financial Reporting - City of Ryde’s investment portfolio complies

Acting General Manager’s Report No. 15/07 24 August 2007


ITEM 1 (continued)

Investment Guidelines issued by the Department of Local Government - City of Ryde’s investment portfolio complies

As stated above, all of Council’s Investments comply with all legislative requirements. Council’s investment portfolio is monitored and reviewed on a daily basis. Through various sections of the investment/banking industry, Council receives investment advice that has included Grove Research and Advisory, Grange Securities, RIM Securities and all major Banks on its current investments and various investment products that are available. For new investments, a full evaluation of the investment is undertaken having regard to Council’s Investment Policy and the guidelines as detailed in the Policy. In addition to this, in strengthening the Governance framework in respect of investments, an Investment Committee comprising senior staff was formed in 2006 to monitor and review the performance of Council’s investment portfolio and evaluate and consider investment opportunities. One of the initiatives of the Committee has been to commence a review of Council’s Investment Policy. Investment History The City of Ryde’s performance in respect of investment returns generated over the period July 2001 – June 2007 have been substantial. In this period, Council has received a cumulative total of $15.7 million in this period. During this period, Council has out performed the UBSA Bank Bill Index by approximately 0.4% each year, which represents total income of approximately $1 million. The City of Ryde has maintained this performance over many years and investment returns should be evaluated on a medium to long term basis. This record of performance needs to be considered to ensure an appropriate context is placed for the result in July. Having stated that, there are a number of recommendations in this report that are proposed for Council’s consideration in further strengthening its governance framework for the management of its investment portfolio. Report Investment Performance Commentary and Outlook Performance for the month of July was -0.84%, resulting in a 12 month average return of 5.45%, which as detailed in the attached Investment Summary, underperformed the UBSA 1 Year Bank Bill Index by 1.02%.



ITEM 1 (continued) This is a result of the recent decline in investment markets, mainly due to a marked decrease in the liquidity of securities on the secondary market. The result is also reflective of Council investing in a number of capital protected investments that pay interest annually on the growth of the investment. Council’s Investment Summary as at 31 July 2007 is ATTACHED with supporting information covering Definition of Types of Investments, Credit Rating Information, Overview of Investments and Graphs. It is important to note that whilst Council has returned a negative result for July, it is currently a ‘paper loss’ as Council is required to bring the value of all managed investments to account monthly. Until investments are sold, the actual investment result will not be known. A summary of Council’s investment portfolio as at 31 July and 24 August 2007 is as follows: 31 July 07 24 August 07 Cash $3.5M (6%) $43.6M (51%) FRN $5.0M (8%) $5.0M (6%) CDOs $9.5M (15%) $9.5M (11%) Managed Funds $29.4M (48%) $11.2M (13%) Other Financial Products $9.0M (15%) $11.0M (13%) Property $5.1M (8%) $5.1M (6%) Total $61.5M $85.4M The key issues to highlight in the above analysis are; - The diversity of Council’s portfolio across various types of investments - The substantial increase in Council’s portfolio in August mainly due to the

settlement of the Bevillesta agreement - The movement from managed fund investments to cash investments with cash

investments now representing 51% of the portfolio. A summary of returns for July over the last 12 months shows the following; July Return Annual Rolling Return Direct Investments 0.39% 7.71%

Managed Funds -2.02% 3.90%

Total (weighted return) -0.84% 5.45%



ITEM 1 (continued) The above returns for July also are reflected and in line with global markets and the Australian share market that since June/July has lost between 12% - 20% of value although there has been a recent partial recovery. For example, the Australian share market at one stage was down 12% or $186 billion in value in early-mid August. Council’s direct investments Floating Rate Notes (FRNs) and Collateralised Debt Obligations (CDOs) have continued to pay coupons as expected this month, with no known downgrades to any of these investments. These are medium to long term investments, which are generally held until maturity. Managed funds across the portfolio are also down this month, as many of these funds invest in structured securities. As detailed in the report, the market for structured fixed term securities fell dramatically this month, with the sudden dislocation of credit markets meaning that liquidity for many sectors effectively closed down. This has resulted in valuations for these securities being down, and this having a flow on effect to the various managed funds. This sudden and sharp correction in the credit markets has had a negative effect on Council’s holdings in managed funds in the short term. Due to this, Council officers have taken action to reduce the amount of funds held in managed funds and placed them in cash investment accounts. This is reflected in the above table. A key reason for the negative return for July is the revised valuation of the investment of $5 million held with Grange Securities which has decreased by 12% or $633,000. One of the investments in this portfolio, a CDO valued at $500,000 and rated AAA has direct exposure to the sub prime mortgage market. This has been the subject of a meeting and various discussions with Grange in confirming further details related to this investment. A further update on this investment will be provided at the Councillors workshop. Whilst financial markets were fragile, the news from the real economy was better. The US economy rebounded in the June quarter, and the Chinese economy continued to expand (by over 11% annualised) in the same period. This led the International Monetary Fund to revise their world growth forecasts from 4.90% to 5.20%, which is similar to the last 2-3 years. In the US, growth is expected to be slightly weaker, with the US housing sector acting as a “dead weight” upon the US economy, but strength is still evident in the manufacturing sector and in the level of corporate earnings. The recent upheaval on the markets, whilst attributed largely to the US sub-prime market, is also due to investors suddenly starting to re-price the cost of risk. Until recently, there have been historically low interest rates. Against this backdrop, corporate defaults remain sound, with levels of corporate defaults at 8 year lows.



ITEM 1 (continued) Actions taken to date In addition to the normal daily monitoring of Council’s portfolio and seeking of ongoing investment advice from Council’s various investment advisors, the following actions have been taken over the last 2-3 weeks; • Held meetings and undertaken daily discussions with Grange Securities, in respect

of Council’s investment. One of the investments in this portfolio, a CDO $500,000 rated AAA, has direct exposure to the sub prime mortgage market which has been the main focus of discussions. As information being sought from Grange Securities had not been received prior to the agendas being issued, a further update on this investment will be provided to Councillors at the Workshop.

• Received updates on all investments from the respective issuers/institutions and

advisors in confirming status and seeking advice on any exposure to the sub prime mortgage market. Advice received indicators that there are no known exposures, however, it is recommended that further information should be obtained.

• Commissioned RIM Securities to undertake an independent preliminary review of

Council’s CDOs and total investment portfolio. This review excluded Grange Securities as a formal response is due to be received from Grange Securities in respect of Councils investment.

• RIM Securities have advised as follows:

- Council’s portfolio complies with the Minister’s Order - Council’s portfolio complies and is within the scope of Council’s Investment

Policy - Council’s portfolio, although compliant and highly rated, consists of a number

of structured products. Suggests it would be prudent to confirm details directly from fund managers on current performance and options available.

- Recommends Council review its Policy to provide more clarity especially in respect of structured security investments.

It is suggested that the opportunity should also be taken in this process to liaise with the Department of Local Government in respect of the Minister’s Investment Order.

• Officers of Council have also attended briefings on the current Investment market

conditions and have networked with other Councils in this matter.



ITEM 1 (continued) Recommended Further Actions Having regard to the current market conditions, the following actions are recommended; • Council call Expressions of Interest to establish an Investment panel that will

provide independent advice in reviewing and advising Council on its investment portfolio.

• Council undertake a review of its Investment Policy and seek the assistance of the Panel and the Department of Local Government in this process for referral back to Council.

• The General Manager continue to review Council’s Investment portfolio and to take appropriate action in addressing under performing investments and in managing Council’s investment risk.

Management Plan Budget / Linkages This project forms part of the 2007/2008 Operational Budget for the Finance Unit. Relationship to Key Outcome Areas People Interest on investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for People. Assets Interest on investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Assets. Environment Interest on investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Environment. Governance Interest on investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Governance. This project meets the following key outcomes for Governance (set out on page 39 of the Management Plan 2007-2010): • Compliance with all legislative requirements and statutory obligations.



ITEM 1 (continued) Consultation – Internal and External Investment issuers Investment advisers Other Councils Policy Implications The recommendation is consistent with Section 625 of the Local Government Act, which deals with the investment of surplus funds by Councils. Critical Dates None. Financial Impact As detailed in the report, Council’s investments are compliant with all legislative requirements. The volatility caused by the sub prime securities market in the US, has had a significant impact on all sectors and institutions in the market. World markets and the Australian share market have dropped significantly in July and August. From various articles, indicators are that the global reductions in markets has ranged between 12% - 20% and in some areas the reductions have been greater. The Australian share market, for example has fallen 12% and approximately $186 billion in value (Sydney Morning Herald, 18 August 2007). Council’s investment portfolio is trending in line with the global investment market and it is anticipated that a decrease in returns on investments, similar to these trends, will be realised. However, as it is still too early to confirm the position, it is suggested that this matter be addressed and closely monitored in Council’s quarterly Budget Reviews. Other Options Not applicable. RECOMMENDATION: (a) That the information contained in this report be received and noted. (b) That Council call Expressions of Interest to establish an Investment Panel that will

provide Council with independent investment advice.



ITEM 1 (continued) (c) That the General Manager continue to review Council’s Investment portfolio and

take appropriate action in addressing under performing investments and in managing Council’s investment risk.

(d) That the General Manager undertake a review of Council’s Investment Policy

liaising with the Department of Local Government and report back to Council for its consideration.

(e) That the General Manager report back on the progress of this matter in future

Investment reports.



ITEM 1 (continued) ATTACHMENT A

























































ITEM 2 INVESTMENTS - Collateralised Debt Obligations (CDO’s) Report Summary This report provides Council with an explanation and relevant information in respect of the Council’s investments in Collateralised Debt Obligations (CDOs). The report details that all of Council’s investments comply with all legislative requirements. The report also identifies that one of Council’s managed fund investments has a CDO rated AAA which has direct exposure to the US sub prime mortgage market. The report outlines various actions taken and proposed to be taken in respect of managing Council’s portfolio due to the recent volatility in the investment markets. Background At Council’s meeting on 24 July 2007, in consideration of the investment report, Council resolved that the General Manager prepare a detailed report to the Council meeting on 28 August 2007 providing all details relating to Council’s collateralised debt obligations (CDOs) investments for further consideration by Council. This decision was as a result of recent media articles highlighting concerns about Councils in Australia investing in CDOs with exposure to the US sub prime mortgage market. Council’s investment policy, adopted on 4 October 2005, requires that all investments are to be made in accordance with:

Local Government Act 1993 - Section 625 - City of Ryde’s investment portfolio complies

Local Government Act 1993 - Order (of the Minister) dated 15 July 2005 – City of Ryde’s investment portfolio complies

The Trustee Amendment (Discretionary Investments) Act 1997 – Sections 14A(2), 14C(1) & (2) - City of Ryde’s investment portfolio complies

Local Government (Financial Management) Regulation 1993 - City of Ryde’s investment portfolio complies

The Code of Accounting Practice and Financial Reporting - City of Ryde’s investment portfolio complies

Investment Guidelines issued by the Department of Local Government - City of Ryde’s investment portfolio complies

As detailed above, all of Council’s Investments comply with all legislative requirements. Through various sections of the investment/banking industry, Council receives investment advice that has included Grove Research and Advisory , Grange Securities, RIM Securities and all major Banks on its current investments and various investment products that are available.



ITEM 2 (continued) Council’s investment portfolio is monitored and reviewed on a daily basis. For new investments, a full evaluation of the investment is undertaken having regard to Council’s Investment Policy and the guidelines as detailed in the Policy. In addition to this, in strengthening the governance framework in respect of investments, an Investment Committee comprising senior staff was formed in 2006 to monitor and review the performance of Council’s investment portfolio and evaluate and consider investment opportunities. One of the initiatives of this Committee has been to initiate a review of Council’s Investment Policy. On a monthly basis, as required by the Local Government Act, Council’s Investments are reported to Council. Report Market history First issued in the late 1980s, CDOs have emerged a decade later as the fastest growing sector of the asset-backed securities market due to the returns and levels of security. This growth reflects the increasing appeal of CDOs for a growing number of asset managers and investors, which now include insurance companies, mutual fund companies, unit trusts, investment trusts, commercial banks, investment banks, pension fund managers and private banking organizations. According to the US Securities Industry and Financial Markets Association, aggregate global CDO issuance totalled USD $157 billion in 2004, USD $249 billion in 2005, and USD $489 billion in 2006. Concept and Structure A CDO is very similar to other asset-backed securities but it has various levels of 'seniority' built into the debt structure, so an investor can vary their amount of risk and reward exposure. Unlike direct corporate bonds, investors do not lend money to the companies themselves. Instead, they invest in purpose-built CDO companies, commonly called Special Purpose Vehicles (SPV) which borrow money and invest it in debt. The investor receives payments in return for taking on the risk of owning that debt, while the money raised to back up the agreement sits in the bank earning interest.

Investor SPV

Asset Class/Risk

Asset Class/Risk

Asset Class/Risk

A Simple CDO Structure



ITEM 2 (continued) CDOs vary almost infinitely in both structure and underlying collateral, but the basic principle is the same, in that they consist of a basket of products such as debt or asset-backed securities. Then, the distribution of cash flow from the portfolio of investments is distributed among various tranches in accordance with the cash flow rules of the CDO: senior (rated AAA) tranches are paid first followed by mezzanine (AA to BB) tranches and, last of all, equity tranches (unrated). Losses are applied in reverse order of seniority. The senior tranche is protected by the subordinated security structure; thus, it is the most highly rated tranche. The equity tranche (also known as the first-loss tranche) is most vulnerable, and has to offer higher coupons to compensate for the higher risk. Sub-prime Securities There have been a number of articles regarding CDOs in the press recently, and the majority of them have taken a “broad brush” approach to CDOs, with the underlying assumption that all CDOs are similar or the same. It’s very important to note that in reality, the term “CDO” simply refers to a type of product, and not to the specific type of asset class. Any product which has been “tranched” is a type of CDO. However, the type of products which can be tranched (ie: turned into a CDO) is almost limitless. CDOs are based upon asset classes/risks that include Residential Mortgage Backed Securities (RMBS), Asset Backed Securities (ABS), Commercial Mortgage Backed Securities (CMBS), Credit Card Receivables, Auto Loans, Student Loans, Leveraged Loans and many others. The majority of CDO’s which have been sold in the Australian marketplace are based upon Corporate Credit. To assist in further explaining the current market conditions, and the issues related to the sub prime securities market in the US, Council officers have arranged for some of Council’s investment advisors to be present at the Councillors workshop to further explain and discuss this matter.



ITEM 2 (continued) Current Status The CDOs currently held by Council are as follows:

CDO Rating Value(000)

Direct Investments - face value Forum AAA $1,500Balmoral AA $1,000Titanium AAA $2,000Alpha AA $1,000Oasis AA $1,000Constellatiion AA $1,000Palladin AA $2,000 $9,500 Managed Fund – Grange Securities Individually Managed Portfolio (mark to market) Total CDO’s in Managed Fund $2,894

All Council’s direct investments in CDOs have a rating of AA or better and have been acquired on the basis of holding them to maturity and are thus valued at full face value. The other key feature of these CDOs is that the majority of investments are actively managed to ensure the ratings of investments are maintained. Council also has an Individually Managed Portfolio managed on Council’s behalf by Grange Securities which comprise CDOs. This managed fund is valued monthly on a mark to market basis as the Fund Manager actively trades securities to maximise returns. However, due to the recent impact in the financial markets, this investment has returned a negative return in July of 12.4%. It should be noted that although Council has recorded a negative return for July, this is regarded as a ‘paper loss’ as, until such time as the CDO is sold, the actual investment result will not be known. One of the investments in this portfolio, a CDO $500,000 rated AAA has direct exposure to the sub prime mortgage market.



ITEM 2 (continued) It should be noted that no corporate credit backed AAA or AA CDO Structure has been downgraded or placed on negative watch outside the RMBS sub prime area. No Council held CDOs have had their ratings downgraded and they are continuing to pay coupons (interest). Actions taken to date In addition to the normal daily monitoring of Council’s portfolio and seeking of ongoing investment advice from Council’s various investment advisors, the following actions have been taken over the last 2-3 weeks; • Held meetings and undertaken daily discussions with Grange Securities, in respect

of Council’s investment. Further information on this investment will be provided at the Councillor workshop.

• Received updates on all investments from the respective issuers/institutions in

confirming status and seeking advice on any exposure to the sub prime mortgage market. Advice received from all other investments is that there are no known exposures, however, it is recommended that further information should be obtained.

• Commissioned RIM Securities to undertake an independent review of Council’s

CDOs and total investment portfolio. This review excluded Grange Securities, as Council is awaiting a formal response from Grange Securities in respect of its investments.

Their advice in respect of Council’s portfolio is as follows;

- Council’s portfolio complies with the Minister’s Order - Council’s portfolio complies and is within the scope of Council’s Investment

policy - Council’s portfolio, although compliant and highly rated, consists a number of

structured products. The advice suggests it would be prudent to confirm details directly from fund managers on current performance, exposure and options available.

- Recommends Council review its Policy to provide more clarity especially in respect of structured security investments.

The opportunity should also be taken to seek clarification with the Department of Local Government in respect of the Minister’s Investment Order.

• Officers of Council have also attended briefings on the current Investment market

conditions and have networked with other Councils in this matter.



ITEM 2 (continued)

The other key action that Council Officers have undertaken, based on the current market conditions and to provide certainty from returns on investment, has been to move the majority of funds held in funds management across to cash investment accounts. Given the fluctuating market and the indifferent returns expected from funds management accounts, this is seen as a prudent measure to be taken in the current volatile market environment. This will allow a more comprehensive review of Council’s Investment portfolio to be undertaken whilst still receiving, steady and reliable returns. This step has resulted in $43.6 million being held in cash investments as at 24 August 2007 which represents 51% of Council’s Investment portfolio as detailed below;.

Council’s investment portfolio as at 31 July 2007 and 24 August 2007 is detailed below - 31 July 07 24 August 07 Cash $3.5M (6%) $43.6M (51%) FRN $5.0M (8%) $5.0M (6%) CDO’s $9.5M (15%) $9.5M (11%) Managed Funds $29.4M (48%) $11.2M (13%) Other Financial Products $9.0M (15%) $11.0M (13%) Property $5.1M (8%) $5.1M (6%) Total $61.5M $85.4M Further actions and recommendations in respect of Council’s investment portfolio are detailed in the Investment Report, Item 1 on this Agenda. Management Plan Budget / Linkages This project forms part of the 2007/2008 Operational Budget for the Finance Unit. Relationship to Key Outcome Areas People Interest on investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for People. Assets Interest on investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Assets. Environment Interest on investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Environment.



ITEM 2 (continued) Governance Interest on investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Governance. This project meets the following key outcomes for Governance (set out on page 39 of the Management Plan 2007-2010): • Compliance with all legislative requirements and statutory obligations. Consultation – Internal and External Investment issuers Investment advisers Other Councils Policy Implications The recommendation is consistent with Section 625 of the Local Government Act, which deals with the investment of surplus funds by Councils. Critical Dates None. Financial Impact Council’s investment portfolio complies with all legislative requirements. As stated in the report the investment held with Grange Securities has been the subject of a number of discussions and a further update will be provided at the Councillor workshop. Given the nature of the impacts of the sub prime securities market in the US, this has had a rolling effect into all other sectors and institutions in the market. World markets and the Australian share market have dropped significantly in July and August. From various articles, indicators are that the global reductions in markets have at varying stages ranged between 12% - 20% in this period and in some areas the reductions have been greater. The Australian share market, for example, had fallen up to 12% and approximately $186 billion in value (Sydney Morning Herald, 18 August 2007). Council’s investment portfolio is trending in line with the global investment market and it is anticipated that a decrease in returns on investments, similar to these trends, will be realised. However, as it is still too early to confirm the position, it is suggested that this matter be closely monitored and addressed in Council’s quarterly Budget Reviews.



ITEM 2 (continued) Other Options Not applicable. RECOMMENDATION: That the information contained in this report and the action taken to date be received and noted.



ITEM 3 DRAFT INTEGRATED TRANSPORT AND LAND USE STRATEGY File No. COR2006/642 Report Summary This report recommends that Council adopt the Draft Integrated Transport and Land Use Strategy (ITLUS) following public exhibition from 10 April to 25 May 2007 and a review of submissions received to 26 June 2007. Background The preparation of an Integrated Transport and Land Use Strategy has been identified as one of the key actions for the Environment and is listed in the City Management Plan 2007-10. An improved transport future is required to help achieve the City vision ie that Ryde will be ‘an innovative city, a leader in environmental, economic and social sustainability’. The process commenced in 2005 when Council adopted a topic based project brief to enable project proposals to be considered and from this process PBAI Australia were selected to deliver the Strategy. A comprehensive Strategic Transport and Land Use Context report dated April 2006 was subsequently prepared by PBAI and considered by Committee of the Whole on 2 May 2006. Council adopted some broad performance measures and targets at this meeting and these are repeated on page 1-4 of the Draft Strategy. A draft topic based strategy followed in May 2006 and this was workshopped with Councillors (Workshop 1) on 13 June 2006. From this workshop, the scope of the strategy was expanded to a more specific centre based strategy that would look at improving connectivity between the 6 key centres of Ryde, namely Macquarie Park, Eastwood, West Ryde, Top Ryde, Meadowbank and Gladesville. A second draft strategy was submitted in March 2007 to reflect this shift in focus and include a City wide strategic component, the identification of regionally strategic and local zones within the Ryde Local Government Area and 6 separate centre based reports. This draft was workshopped by Councillors (Workshop 2) on 13 March 2007. A third draft strategy was subsequently prepared incorporating many of the issues raised at Councillor Workshop 2 and this was considered by Committee of the Whole on 20 March 2007 and approved for public exhibition from 10 April 2007 to 25 May 2007. 29 submissions were received during the exhibition process (to 26 June 2007) and these were considered at a further Councillor Workshop (Workshop 3) held on 26 June 2007.



ITEM 3 (continued) A final draft Strategy has now been prepared (CIRCULATED SEPARATELY) with filing instructions for the pages that will need to be removed and or inserted into the Draft ITLUS, circulated previously to Councillors, in order to finalise the Draft and consider for adoption. Report The Draft ITLUS has been revised to reflect submissions received and issues arising from 3 separate Councillor Workshops. The extent of the changes are relatively minor in nature (some re-formatting and improved linkages to help navigate the Strategy) and tables have been added to better define journey to work and all trip mode split targets taken from the base year 2001 Census data. Reference has also been made to Draft Inner North Sub- Regional Plan and a new Table (A5- Travel Demand Management Actions – Summary) has been added to bring the centre based reports in line with the City wide Strategy. In accordance with one of the approved Council performance measures, the first annual review of any approved Strategy will include a review of the appropriateness of the base year (2001) for model split targets against 2006 ABS Census Data. The 2006 Census Transport Access and Usage data (which includes Method of Travel To Work (or JTW) Data) is included in the 2006 Census Second Release, due out in October this year. Consultation – Internal and External The exhibition period for the strategy was from 10 April to 25 May 2007. During the period 29 submissions were received. The submissions were generally in support of the draft ITLUS. Some general comments from submissions included: • Development needs to be focused around train stations in order to promote the

use of public transport. Council’s Urban Village Policy encourages increasing density around public transport nodes.

• Car parking ratios for residential development close to stations should be limited,

to encourage commuters to utilise the public transport system. • Setting appropriate maximum car parking rates in areas that fall within the

walkable catchments of railway stations, to also encourage higher patronage of the public transport system.



ITEM 3 (continued) • The need for more bus priority measures throughout Ryde, particularly on

congested main arterial roads, including Victoria and Epping Roads. • The need for more taxi rank spaces near railway stations, shopping and medical

centres. • Encouraging large businesses to develop Transport Plans, that address the travel

patterns of employees. Council’s Model Transport Assistance Policy aims to encourage staff to utilise public transport in the form of financial assistance to purchase public transport flexi passes to be used for workplace travel.

More specific comments were received for each of the 6 centres. Macquarie Park: • Importance of considering the impacts of increased student numbers and

workforce populations on local traffic, and demand for public transport • Access issues relating to M2 motorway • Taxi access to local shops at Macquarie • General traffic congestion in Macquarie Park, particularly problematic for buses Eastwood: • Parking identified as a significant issue in Eastwood • Pedestrian crossing adjacent to station causing major delays for buses • Opportunities for improved modal interchange at Eastwood • Need for more taxi drop off/ pick up areas • General traffic congestions in Eastwood, problematic for buses West Ryde: • Traffic congestions on Victoria Rd, slows bus travel times • Bus interchange modifications required to accommodate longer bendy buses • Dangerous crossing for cyclists at Hermitage Road and Victoria Road Meadowbank: • Centre not well serviced by bus routes, fringe well served by Victoria Rd • Concern for shared cycle ways with cyclists and cars Ryde Town Centre • Lack of drop off , pick up areas for taxi • Need to ensure Top Ryde shopping centre includes taxi ranks • Bus delays on Victoria Rd



ITEM 3 (continued) Gladesville: • No specific comments received Management Plan Linkages Key outcomes for the Environment listed in the City’s Management Plan 2007/10 on pages 36 and 37 and the development and implementation of an Integrated Transport and Land Use Strategy is listed as a principal activity on page 58 Relationship to Key Outcome Areas Assets This project meets the key outcomes for Assets (set out on page 34 of the Management Plan 2007-2010): The ITLUS has strong links with the way the Council interacts with the community and key partners on strategic land use direction, sustainable design, integrated transport planning and will serve to improve suitability and sustainability of local assets, infrastructure and facilities. Environment This project meets the key outcomes for Environment (set out on page 36 of the Management Plan 2007-2010): The ITLUS promotes increased infrastructure capacity and sustainable transport options, supporting consolidated development at existing urban centres and transport nodes. The ITLUS promotes public transport, sustainable design and clean air, through highlighting the negative aspects of motor vehicle use. Governance This project meets the key outcomes for Governance (set out on page 39 of the Management Plan 2007-2010): The ITLUS will consolidate and increase community awareness and understanding about sustainable transport and land use planning. Encourage development that compliments the existing transport infrastructure, facilitate a modal shift towards public transport and decreased car ownership. People This project meets the key outcomes for People (set out on page 32 of the Management Plan 2007-2010):



ITEM 3 (continued) The ITLUS reinforces the Council’s commitment to strive for a sustainable City, through effective community participation, the active application of social justice principles and by the fostering improved learning and access opportunities for people to better understand the environment. Particular aspects of the Plan promote active, healthy lifestyles and a positive influence on improving quality of life for residents. Policy Implications Implementation of Strategy Critical Dates No critical dates although adoption of Strategy will facilitate commissioning of a Public Transport Accessibility Level Analysis - PTAL (October 2007) and Pedestrian Access and Mobility Plans - PAMPS (December 2007) to inform the development of the Implementation Plan. Financial Impact Funding of up to $80,000 has been allowed for in the Environment Operations Budget 2007-10 to undertake the PTAL, PAMPS and related studies/analysis/education and awareness programs. A further $80,000 has been allowed for in the Public Works Capital Works Program as expenditure to initiate implementation of the Strategy. A comprehensive Strategy Implementation Plan is due out in the 3rd quarter of this year where works will be prioritised and any future funding requirements identified and approved by Council. It is anticipated that opportunities for grant funding will present themselves from time to time and applications will be made as these opportunities arise. RECOMMENDATION: (a) That the Draft Integrated Transport and Land Use Strategy be adopted. (b) That the Draft Integrated Transport and Land Use Strategy be reviewed annually

and that progress reports be incorporated in the annual Ryde State of The Environment Report.



ITEM 4 REGISTERS - Power of Attorney and Common Seal Power of Attorney

Date Particulars Registered By Council Notified

15/8/07 Minor Works Contracts COR-RFT-05/07 – 22 Contracts for 2007/2008 Angela Steinke 28/8/07

17/8/07 Council of the City of Ryde Side Deed Top Ryde between Bevillesta Pty Ltd and City of Ryde

Angela Steinke 28/8/07

Common Seal Date Seal Approved

Date Seal Affixed Particulars Seal

Affixed by

8/8/07 8/8/07

Land transfer for sale

Bevillesta and City of Ryde

Lot 11, 1 Delvin Street, Ryde

Angela Steinke

RECOMMENDATION: That the report on Power of Attorney and Common Seal registers be received and noted.



ITEM 5 CONFIDENTIAL ADVICE ON COURT ACTIONS Confidential This item is classified CONFIDENTIAL under Section 10A(2)(g) of the Local Government Act, 1993, which permits the meeting to be closed to the public for business relating to the following: (g) advice concerning litigation or advice that would be privileged from production in

legal proceedings on the ground of legal professional privilege. This matter is classified confidential because it contains advice concerning legal matters that are:- (a) substantial issues relating to a matter to which the Council is involved. (b) clearly identified in the advice, and (c) fully discussed in that advice. It is not in the public interest to reveal all details of this matter as it would prejudice Council’s position in any court proceedings. Roy Newsome ACTING GENERAL MANAGER

COUNCIL MEETING 28 AUGUST 2007

Precis of Correspondence for Consideration

- 1 -

1 From: Department of Local Government, Dated: 17 August 2007, RE: Council Investments

RECOMMENDATION: Submitted for Council's information/consideration.

COUNCIL MEETING 28 AUGUST 2007

Notices of Motion

- 1 -

(1) Councillor Wilde OAM will move:-

“That the General Manager enter into negotiations with the Department of Health for the provision of permanent essential services (Power and Water) by Council at the North Ryde Common to facilitate Cultural/Community Events and that a report on these negotiations be provided back to Council.”

Documents

General Manager's Report 15/07, 28 August 2007 · 2015. 8. 12. · INVESTMENT REPORT – 31 July 2007 and as at 24 August 2007 Report Summary This report provides details of Council’s