Ordinary Council - Shire of Augusta-Margaret River · Mr Amanda Smith of Margaret River, asked the following question at the 13 July 2016 Ordinary Meeting of Council, in relation

Ordinary Council

MINUTES

FOR THE MEETING TO BE HELD WEDNESDAY, 27 JULY 2016

IN COUNCIL CHAMBERS, WALLCLIFFE ROAD, MARGARET RIVER

COMMENCING AT 5:30PM

SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 27 JULY 2016

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Meeting Notice Dear Councillor I advise that an Ordinary Council Meeting of the Shire of Augusta Margaret River will be held in Council Chambers, Wallcliffe Road, Margaret River on Wednesday 27 July 2016, commencing at 5:30pm. Yours faithfully

GARY EVERSHED CHIEF EXECUTIVE OFFICER


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ATTENTION/DISCLAIMER

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


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TABLE OF CONTENTS

ITEM NO. SUBJECT PAGE NO.

1. DECLARATION OF OPENING .................................................................................................. 6

2. ATTENDANCE ........................................................................................................................... 6 2.1 APOLOGIES ............................................................................................................................... 6 2.2. APPROVED LEAVE OF ABSENCE ........................................................................................... 6

3. DISCLOSURES OF INTEREST ................................................................................................. 7

4. PUBLIC QUESTIONS ................................................................................................................ 7 4.1. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE ................................ 7 4.1.1 QUESTION FROM 13 JULY - MS AMANDA SMITH ................................................................. 7 4.2. PUBLIC QUESTION TIME ......................................................................................................... 7

5. APPLICATIONS FOR LEAVE OF ABSENCE ........................................................................... 7

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING ..................................................... 7 6.1 ORDINARY COUNCIL MEETING HELD 13 JULY 2016 ............................................................ 7

7. DEPUTATIONS .......................................................................................................................... 7 7.1 ITEM 11.2.1 EXTRACTIVE INDUSTRY LOCAL LAW LICENCE APPLICTAION –

LOT 9500 BURNSIDE ROAD, BURNSIDE – MR ROBERT BRADBURY ................................. 7 7.2 ITEM 11.2.1 EXTRACTIVE INDUSTRY LOCAL LAW LICENCE APPLICTAION –

LOT 9500 BURNSIDE ROAD, BURNSIDE – BRENDA AND ROGER HOLLAND .................... 7 7.3 ITEM 11.2.1 EXTRACTIVE INDUSTRY LOCAL LAW LICENCE APPLICTAION –

LOT 9500 BURNSIDE ROAD, BURNSIDE – MR GLEN AHOLA .............................................. 9

8. PETITIONS ............................................................................................................................... 12

9. ANNOUNCEMENTS FROM THE PRESIDING MEMBER....................................................... 12

10. QUESTIONS OF WHICH DUE NOTICE HAS BEEN GIVEN .................................................. 12

11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS ................................................. 13

11.1. CHIEF EXECUTIVE OFFICER ................................................................................................. 14

11.2. SUSTAINABLE DEVELOPMENT ............................................................................................ 16 11.2.1 EXTRACTIVE INDUSTRY LOCAL LAW LICENCE APPLICATION - LOT 9500

BURNSIDE ROAD, BURNSIDE .............................................................................................. 17 11.2.2 SUSTAINABILTY ADVISORY COMMITTEE MINUTES FROM 16 JUNE 2016 ...................... 35 11.2.3 AMENDMENT NO. 39 - REZONING FROM CARAVAN PARK TO RURAL

RESIDENTIAL AND RELATED STRUCTURE PLAN, CAVES ROAD GRACETOWN ........... 39 11.2.4 PROPOSED DWELLING – LOT 1364 CAVES ROAD, KARRIDALE ...................................... 50

11.3. INFRASTRUCTURE SERVICES ............................................................................................. 56 11.3.1 ALEXANDRA BRIDGE AND EAST AUGUSTA RESERVE ACTION PLANS ......................... 57 11.3.2 RFT 12-16 TREE MANAGEMENT SERVICES ........................................................................ 63 11.3.3 REVIEW OF INFRASTRUCTURE POLICIES .......................................................................... 66

11.4. CORPORATE AND COMMUNITY SERVICES ....................................................................... 70 11.4.1 LIST OF PAYMENTS FOR JUNE 2016 ................................................................................... 71 11.4.2 ADOPTION OF 2016-17 DIFFERENTIAL RATES, MINIMUM PAYMENTS AND

RATE CONCESSIONS ............................................................................................................. 74 11.4.3 ADOPTION OF 2016-17 EARLY PAYMENT INCENTIVES, PAYMENT OPTIONS,

LATE PAYMENT INTEREST AND INSTALMENT CHARGES ................................................ 81 11.4.4 ADOPTION OF 2016-17 ANNUAL BUDGET ........................................................................... 89 11.4.5 OPERATIONAL PLAN 2016-2017.......................................................................................... 108

12. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN ......................................... 112

13. MOTIONS FOR CONSIDERATION AT NEXT MEETING ..................................................... 112

14. NEW BUSINESS OF AN URGENT NATURE ....................................................................... 112 14.1. MEMBERS .............................................................................................................................. 112


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14.2. CEO ........................................................................................................................................ 112 14.2.1 EXTENSION OF LICENCE AGREEMENT FOR ARTS MARGARET RIVER INC. ............... 113

16. CLOSURE OF MEETING ....................................................................................................... 114


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Ordinary Council Meeting

1. DECLARATION OF OPENING

The Shire President welcomed all in attendance and declared the meeting open at 5.30pm

2. ATTENDANCE

Shire President : Cr Ian Earl North Ward

Councillors : Cr Kylie Kennaugh North Ward Cr Peter Lane North Ward Cr Felicity Haynes Town Ward Cr Pam Townshend Town Ward Cr Kim Hastie Leeuwin Ward Cr Mike Smart Leeuwin Ward

Chief Executive Officer : Mr Gary Evershed Acting Director Sustainable Development : Mr Nick Logan

Director Infrastructure Services : Mr Johan Louw

Director Corporate and Community Services : Ms Annie Riordan

Manager Corporate Services : Mr Andrew Ross Manager Planning and Development : Mr Matt Cuthbert

Minute Secretary : Ms Claire Schiller MEMBERS OF THE PUBLIC 16

MEMBERS OF THE PRESS Augusta Margaret River Mail : Nil

Augusta Margaret River Times : Mr Warren Hately

2.1 Apologies

Nil

2.2. Approved Leave of Absence

Nil


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3. DISCLOSURES OF INTEREST

Nil

4. PUBLIC QUESTIONS

4.1. Response to Previous Public Questions Taken on Notice

4.1.1 Extractive Industry Licence Application – Lot 9500 Burnside – Ms Amanda Smith

Mr Amanda Smith of Margaret River, asked the following question at the 13 July 2016 Ordinary Meeting of Council, in relation to the Item 11.2.2 Extractive Industry Licence Application – Lot 9500 Burnside Road, Burnside. The Director Infrastructure Services took the question on notice. The Director Infrastructure Services provided the response. Q: Have the Shire purchased any gravel from Burnside? A: Historically the Shire has bought material from Margaret River Earth Cartage Pty Ltd but not

since 2009. Since 2009 the Shire has only hired equipment from Margaret River Earth Cartage Pty Ltd.

4.2. Public Question Time

Nil

5. APPLICATIONS FOR LEAVE OF ABSENCE

Nil

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING

6.1 Ordinary Council Meeting held 13 July 2016

MOTION / COUNCIL DECISION CR HASTIE, CR HAYNES OM2016/145 That Council confirms the minutes of the Ordinary Council Meeting held 13 July 2016 to be a true and correct record of the meeting.

CARRIED 7/0

7. DEPUTATIONS

7.1 Item 11.2.1 Extractive Industry Local Law Licence Applictaion – Lot 9500 Burnside Road, Burnside – Mr Robert Bradbury

Mr Robert Bradbury of 229 Horseford Road, Burnside addressed the meeting in relation to Item 11.2.1 Extractive Industry Local Law Application – Lot 9500 Burnside Road, Burnside. A summary of his deputation is as follows:

• The supply of sand from Lot 9500 Burnside Road/Sussex Location 482 has been deemed by local civil engineers to be unsuitable for house pads due to its high content of clay and humus.


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• There are a number of other quarries with significant long term deposits in more appropriate locations.

• The business is not a significant employer of people – being owner operated. • The business is amongst a rural residential subdivision adjacent to a tourist route in a World

Biodiverse Hotspot. • The application confirms “that the majority of suitable sand and gravel extracted has taken

place”. If this is the case - why does it need to continue till 2022? Why should it continue at all? • Nobody here tonight knows what will be required from this land in 30 to 50 years time. Will it be

for food production? Will it be for housing? What we do know is - that to allow this continued extraction, significantly alters the soil structure and compaction - and these limit future options forever.

• In the past this operation has been haphazard with documented serious and multiple compliance

issues. • Is this an Operator able to meet licence conditions? • The operator has already demonstrated:

o Disregard for the health & safety of neighbours, with dust, burning of toxic rubbish and ungated site access, working on Sundays and Public holidays

o Disregard for licensing regulations - having operated a screening machine without a licence, having swapped registration plates between cartage trucks, operating with obscured number plates

o Disregard for Main Roads heavy vehicle regulations – driving unlicensed, unroadworthy

mining vehicles on Shire and Main roads. Driving regularly with uncovered loads, & driving over the speed limit.

It is to be noted that the Shire President stopped Mr Holland during his deputation and instructed him not to cast accusations. • Disregard for SAT imposed subdivision conditions by re-activating his quarry and creating

unacceptable visual impacts on adjacent landowners • Rehabilitation has only been initiated under a section 214 order, issued by the Shire, since the

receipt of the November licence application. • These past actions raise serious concerns whether the applicant has the mining knowledge and

skill set to be able to implement procedures, develop and manage the quarry in a fit and proper fashion.

• It is doubtful that he has the competence to rehabilitate the completed staging plan back to

pasture and native wetland. • I reported extraction around trees near the rear boundary of my property in December 2010 and

Shire officers visited the site. • From the file note you can see that a section 214 was to be issued by the Shire, because it

considered the activities required “planning approval”. • This was the first incident of extraction that I witnessed. Prior to this I had seen truckloads of

material being carted onto and off the property but did not witness material being mined from extractive pits.

• A Shire officer informed the applicant of non-conforming use rights without fully investigating the possibility that these rights had extinguished.


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• They also did not investigate that Burnside Plant Hire had been an expansion of the business in

2010, which required planning approval to operate from an area zoned rural residential. • The Extractive non-conforming use right had well and truly extinguished due to extraction ceasing

during the marketing period of Burnside Park subdivision between 2008 and 2010. • How could Busselton Survey Office (who was responsible for the subdivision) or Stocker Preston

market these 20 rural residential blocks if a quarry was operating continuously between 2008 & 2010?

• I believe that non-conforming use rights have lapsed due to extractive industry inactivity for at

least a 6 month period between 2008 and 2010 and the Shire has made an error of judgement applying non-conforming use rights to Lot 9500, without fully investigating the extinguishing of rights. And therefore it follows that the Shire and Councillors should not grant an extractive licence to Margaret River Earth Cartage (Mike Gray).

7.2 Item 11.2.1 Extractive Industry Local Law Licence Applictaion – Lot 9500 Burnside Road, Burnside – Brenda and Roger Holland

Ms Brenda Holland and Mr Roger Holland of 265 Horseford Road, Burnside addressed the meeting in relation to Item 11.2.1 Extractive Industry Local Law Application – Lot 9500 Burnside Road, Burnside. A summary of their deputation is as follows:

Roger Holland: • The Burnside Residents Action Group wish to thank the Councillors for the amount of work

they have undertaken regarding this Extractive Licence which is now before them. • The more we investigate the Burnside Park issues the more we learn that the shire did not

do due diligence before informing the applicant he needed to lodge an application for a licence.

• We believe the shire should not have brought the licence application before the Shire Councillors in view of our legal challenge.

• We have a situation tonight where the shire has proposed the application be approved . We

strongly believe a NCUR does not exist. Since our barrister first wrote to the shire in April we have learnt of other facts that could be pertinent to our case. For example, did the real estate agent, selling the lots from late 2007, inform the buyers that they had an extraction industry approximately 200 metres from their front boundary on certain lots?

• Was extraction taking place while the agent was trying to sell the whole subdivision over a

couple of years? • The Shire contends a NCUR has been valid for 30 years.

• The Shire served a notice 214 on the landowner in approximately December 2010 requiring

him to cease removing sand from the conservation area of lot 9500 ( Location 482) and to rehabilitate the land as per the DEC conditions . If the landowner knew he had an NCUR at that time he could have told the shire he did not need to comply with the notice!!

• After December 2010 when we made complaints to the shire about such issues as noise,

dust, hours of working, the shire told us they were powerless to act because the landowner had a NCUR .

• How did the shire know the landowner had a NCUR? Did the Shire tell the landowner he had

a NCUR?


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• This Extractive Licence Application if granted, will expire in 2022. The Shire, contrary to its planning scheme, allows extension.

• What is to stop him extracting on lot 9500 directly opposite lots 212 and 213? • Should this matter go to court one never knows what the outcome will be. We strongly

believe the odds are in our favour that the landowner does not have NCUR. We await the outcome of tonight's vote.

Brenda Holland: • This law is only for operators who hold NCUR. • We feel the Shire is misleading us all with regard to NCUR on this application. • Either the Shire knew the operator had NCUR prior to 2006 and omitted to give legal

notification to prospective purchasers in the Burnside Park subdivision OR it didn't know - but suddenly decided, about 2011, that NCUR had existed for more than 30 years.

• Whichever - and whilst I suspect the latter -we find this contradiction misleading. • I am concerned that the Shire - as is evident in the Shire's recommendation to

Councillors - just wants to ignore the issue of NCUR and get this licence granted and not take responsibility for any errors that occurred, when it failed to do thorough investigations, after it received complaints in early 2012.

• I believe the Shire does know that NCUR are extinguished on Lot 9500. The final

response from the Shire to our barrister says: • 'The issue of purported non-conforming use rights will be before Council when it

determines the application for an extractive industry licence' • We have had to live with the consequences of the Shire not doing adequate investigations

into this issue. • Prior to January this year we thought only our very small community in Burnside Park was

affected. Now we know that residents in Forest Hill, Horseford Rd, Freshwater and parts of Kilcarnup are so impacted. We all bought into rural residential amenity that definitely did not include a quarry and associated heavy industry.

• Residents need to know that NCUR are quashed on Lot 9500 and that our rural

residential amenity is protected . • We will pursue any avenue - the Supreme Court, if necessary - to regain the amenity that

inaction by the Shire has so devalued, both financially and environmentally. • We cannot afford not to do so. • The Shire suggests a 'band-aid solution' -just grant a licence for 6 years with a few

conditions. • Has the Shire considered the ramifications of this band-aid solution? • If a licence is granted it will legalise an unlawful NCUR, in our opinion. • Do you really believe it will end in 2022, all neatly rehabilitated having been

monitored by the Shire so as not to upset residents? • Past experience would not suggest this. • Most importantly. a NCUR runs with the land.


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• The Shire seems to be having difficulty with its own planning scheme, which clearly states

that a person cannot alter or extend a NCUR. This application is to extend a purported NCUR.

• There are 80 hectares of farmland here with the present application having a 12 hectare

footprint. So there are some 60 hectares left to extend into. It is possible by 2022 that this agricultural land will be so degraded that the only saleable value of the land will be to continue quarrying and would be bought for this purpose.

• Burnside residents cannot afford to just stand by and let our community be so

devalued. We request that The Shire abides by its own laws and recognises that: NCUR on Lot 9500 have been extinguished.

• Therefore an Extractive Industry Licence cannot be granted. All business operations, other

than farming, cease immediately. All plant, machinery and trucks associated with the earth carting, extractive and plant hire businesses are removed from Lot 9500. Rehabilitation is achieved in a timely manner.

• Whether rehabilitation is conducted by this operator or outside contractors, I understand

is a matter for Councillors to decide. The Shire President called for questions and thanked Mr and Mrs Holland for their deputations.

7.3 Item 11.2.1 Extractive Industry Local Law Licence Applictaion – Lot 9500 Burnside Road, Burnside – Mr Glen Ahola

Mr Glen Ahola of Ahola Planning, addressed the meeting in relation to Item 11.2.1 Extractive Industry Local Law Application – Lot 9500 Burnside Road, Burnside. A summary of his deputation is as follows:

• The applicant supports the recommendation noting they have addressed all the criteria listed

under the Extractive Industry Local Law.

• Since 1983 the operator has operated an earthmoving business where all machinery was shifted into the existing farm sheds where they still exist today. Since that time this business has operated on a continual basis to the present day.

• Running parallel with these activities is the continual sand and gravel extractive activities on the

property that has taken place on-site.

• The earth moving and sand and gravel extractive business/land uses continue to operate, in addition to the ongoing farming activities on the land. Therefore this property demonstrates that more than one land use can take place on the property.

• The capacity of the existing non-conforming use right spans the cadastral lot or property. • Zoning, structure planning and subdivision to create rural residential lots has since occurred over

portion of the property. These planning processes – including the act of creating one or more lots over portion of the land, does not extinguish the existing non-conforming use rights recognised over the balance portion of land. A non-conforming use right means that the applicant ‘holds a vested right’ in the use of the balance property (except that located within 200m from the original Caves) to continue operating the sand and gravel extractive industry and earth cartage land use.

• My research of previous cases determine that expansion of an extractive activity or operation

non-conforming use to another location on the property is permitted. Hence in noting the progressive nature of this sand and gravel extraction non-conforming use, it may be increased in extent by natural expansion and growth of trade within the property.


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• Land use change has occurred only where the rural residential lots are currently created. It does not change the non-conforming use rights applicable to the balance of the land.

• Extracting sand and gravel to use in creating the first stage of subdivision was subject to invoicing

by the operator to the landowner. Copies of various Tax Invoices reflecting this was provided to Council staff in support of this application.

• Discussion with, and email from the Operations Manager at South West Coachlines confirm that; - they have at no time had any incidents with Margaret River Earth Cartage Pty Ltd, and - On the contrary, the driver of the Burnside Bus has mentioned how courteous the drivers of Margaret River Earth Cartage Pty Ltd are when the manager questioned the bus driver on the allegation presented to Council by a member of the public at the meeting of 13 July 2016 of running the Burnside Bus off the road. • The applicant has addressed all the matters that satisfy the criteria of the Council’s Extractive

Industry Local Law. • Rehabilitation is clearly detailed in the application and aims to return the site to pasture. The

replacement of good topsoil will provide improved and prolonged pasture growth. • The applicant has responded to, and addressed all requirements as has been requested in writing

by Council as required by the Extractive Industry Local Law. • The opportunity now exists to ensure that the balance extractive industry operations and the

associated rehabilitation of the site will take place in accordance with the application and the related conditions.

• If the Council resolves not to support the licence it does not resolve the issue. This is because: - we are certain, like Council Legal and Planning staff and as per Council’s legal advice, that extractive industry non-conforming use rights apply to the land as recognised through the Council’s Local Planning Scheme and related Town Planning and Development Act 2005, - it won’t remove the other non-confirming use being the earth cartage operations which fall outside the matters being considered tonight, - it defeats the purpose and intent of gazetting the extractive industry local law that was introduced and targeted to place in a mechanism to monitor three (3) specific and recognised non-conforming extractive industries. • On the other hand Council support of the officer’s recommendation will provide certainty that the

remaining extractive works and rehabilitation will take place in accordance with the application and the related conditions imposed.

• Approval will then attend to the principal concerns of council in relation to the extractive industry non-conforming use – which has clearly been the position conveyed by them in their advice to the applicant and the landowner over a long period of time.

The Shire President called for questions and then thanked Mr Ahola for his deputation. 8. PETITIONS

Nil

9. ANNOUNCEMENTS FROM THE PRESIDING MEMBER

Nil

10. QUESTIONS OF WHICH DUE NOTICE HAS BEEN GIVEN

Nil


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11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS


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11.1. Chief Executive Officer


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11.1. Chief Executive Officer

Nil


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11.2.

Sustainable Development


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11.2.1 EXTRACTIVE INDUSTRY LOCAL LAW LICENCE APPLICATION - LOT 9500 BURNSIDE ROAD, BURNSIDE LOCATION/ADDRESS Lot 9500 Burnside Road, Burnside APPLICANT/LANDOWNER Ahola Planning on behalf of M Gray – Margaret River Earth Cartage FILE REFERENCE PTY/10656 REPORT AUTHOR Nick Logan, Acting Director Sustainable Development AUTHORISING OFFICER Gary Evershed, Chief Executive Officer IN BRIEF • In 2014 the Shire adopted the Extractive Industry Local Law 2014 (the Local Law) as a method of

ensuring that existing extractive industries in the Shire, operating outside the requirement for planning approval, conduct their operations consistent with parameters placed on contemporary operations (operating times, rehabilitation, environmental management). By the granting of conditional licences through the Local Law the Shire seeks to have legal capacity to enforce controls on existing extractive industries.

• This application is seeking approval to continue to operate an extractive industry through a licence under the Local Law.

• The relevant supporting information, as required in Part 2 (subclause 2.2) of the Local Law, was submitted with the application.

• The application was advertised from 7 December 2015 to 22 January 2016. 108 submissions were received of which 36 were in support, 65 registered their objection and 7 were from government agencies providing advice.

• The application contains sufficient information to recommended conditional approval under the provisions of Part 3 of the Local Law. Conditions are proposed to address, where appropriate, the issues that were identified through consultation and assessment.

RECOMMENDATION That Council resolves to approve the application for a Licence, under the Shire of Augusta Margaret River Extractive Industries Local Law 2014, to M Gray – Margaret River Earth Cartage for the extraction of sand and gravel on Lot 9500 Burnside Road, Burnside, subject to conditions. LOCATION PLAN • Lot 9500 Burnside Road, Burnside (the Site) is located between Caves and Burnside Road. There are three entrances to the Site: • One utilised in association with agricultural use and access to a dwelling towards the east of the

Burnside Road frontage. • The second from the partially completed deviation of Burnside Road. • The third an unapproved access point to Caves Road on the western frontage. • The site is currently 135ha in size. Central portions of the Site are utilised for the extraction of

sand and gravel. The balance of the Site is pasture, wet areas and remnant vegetation. The Site contains a dwelling to the north east and buildings used in conjunction with the earthmoving business immediately adjacent to Lot 212 Burnside Road.

• A subdivision approval has been progressed (WAPC:142748) which will divide the Lot 9500 into three lots (see Attachment 1) being:

• Lot 220. A 32.5ha lot largely covered in remnant and set aside for conservation purposes. Lot 220 is zoned ‘Rural Residential’ but restricted in development potential under the provisions of LPS1, the associated Structure Plan and future conservation covenant. The covenant would come into effect once a title for Lot 220 is issued;


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• Lot 9501. Two portions severed by the future Cusmao Retreat totalling 17.6ha and set aside for the purposes of future rural residential development;

• Lot 9001. This 82ha portion of the site is that which contains the area proposed to be excavated; and

• The realigned Burnside Road reserve. • The creation of Lot 9001 is significantly progressed with the Deposited Plan placed ‘in order for

dealings’ (able to be created as an entity but subject to a request for titles to be issued). The Deposited Plan will lapse prior to the Council meeting (see Attachment 1), but is also able to be acted on prior to the meeting. It should also be noted that Figure 1 below shows an adjacent Lot 9001 that is not related to this matter.

The Site is bounded by land zoned rural residential (east, south and south west), priority agriculture (north) and Leeuwin Naturaliste Ridge landscape amenity (west on the opposite frontage of Caves Road). Further west is reserved land zoned National Park and Nature Reserve. Figure 2 shows the relative zoning and purpose of the Site and surrounding land.

Figure 1: Location Plan


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Figure 2: Excerpt from LPS1 Map (Zoning) BACKGROUND The Site has an extensive history which can be considered in two main components: • The history of land use, which includes agriculture, extractive industry (sand and gravel), the

operation of a machinery hire business, and the dumping of material on the Site. The extractive industry and dumping of material have been subject to previous unresolved compliance processes.

• The zoning and subdivision of portion of the Site for rural residential purposes. These two components of the history of the Site have overlapped and the following chronology of events details both of these components, however specific reference to evidence of historical land use and compliance matters is provided later in this report: • The Site is a portion of what was originally Location 482 Burnside Road, from which the Woodland

Drive and Burnside Road Rural Residential subdivisions were created by the current owners of Lot 9001.

• 1993/94 – A subdivision application was lodged and approved on appeal to the Minister which created Lot 20 Burnside Road. The basis of this application was the excision of an earthmoving business from Location 482, which was also identified at the time as being partly location on the western side of Burnside Road.

• 1997 – A Scheme Amendment was pursued which eventually zoned the Woodland Drive area for rural residential purposes.

• 1999 – Woodland Drive created. • 2000 – Request to initiate rezoning for portion of Location 482 west of Burnside Road. • 2002 – Council refuse to initiate rezoning for land west of Burnside Road, principally for reasons of

inconsistency with the LNRSPP designations but including the potential for land use conflict. Landowner subsequently lodges subdivision application for rural residential sized lots under the Rural zoning (WAPC: 119849).

• 2003 – Shire advises WAPC it does not support the subdivision application (WAPC: 119849). WAPC subsequently refuse the application.

• 2004 – Landowner appeals subdivision approval to what is now the State Administrative Tribunal. • 2005 – The Shire becomes ‘joined’ (able to participate) in the appeal process through application

in the Supreme Court.


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• 2006 – Following a process of mediation at the Tribunal the Council initiates Amendment 159 to rezone portion of Location 482 west of Burnside Road for rural residential development.

• 2007 – Amendment 159 gazetted, WAPC 119849 subsequently approved by consent orders in the Tribunal.

• 2009 – Lots 212 to 219 Burnside Road created. • 2014 – Extractive Industry Local Law created. Subdivision approval for rural residential land

renewed in the area of proposed Lot 9501. The subdivision approval includes a requirement to remove the existing outbuildings, and to construct the realignment of Burnside Road, which are both actions that are triggered by the future subdivision of that land for rural residential purposes.

• 2014 – Deposited Plan at Attachment 1 placed in order for dealings (Lots 9001, 9501 and 220 able to be created). Deposited Plan has two years from this date for titles to be issued on request.

• 2015 – Extractive industry licence application made. • 2016 – Shire issues a direction under the Planning and Development Act to cease excavation and

rehabilitate all land within 200m of Caves Road. PLANNING FRAMEWORK Local Planning Scheme No. 1 Local Planning Scheme No.1 (LPS1) came into effect in 2011. The zoning of the Site under LPS1 is Priority Agriculture. Extractive Industries are permitted in this zone subject to prior planning approval; however, clause 4.8 of the Scheme states that no provision in the Scheme is to be taken to prevent the continued use of any land for the purpose for which it was being lawfully used immediately prior to the Gazettal date. Clause 4.8 provides what is termed a ‘non-conforming use right’ for a legally established land use or development that doesn’t have or need prior approval. This non-conforming use right will remain in place for as long as a use is continuous. For a use to be considered continuous clause 4.10 provides that a non-conforming use right is extinguished if the use ceases for 6 months. Clause 4.8 of LPS1 provides for protection of continued operation of non-conforming uses. The principle behind clause 4.8 is that changes in planning rules which occur via changes of zoning, or new requirements for approval, do not prohibit land use or development that was legally established prior to these rules coming into operation. Several considerations can be given as to the extent of any particular non-conforming use. Matters such as natural barriers to expansion and constraints under previous planning regimes are relevant to determining the extent of any non-conforming use that applies in a particular circumstance. The use rights are generally considered to apply to an entire property and not just an area where extraction may have taken place to date, however the particular circumstances that applied at the time that the non-conforming use right was generated (1998) are relevant. Extractive Industries Local Law 2014 There are a small number of extractive industries in the Shire that operate under non-conforming use rights. Up until now these extractive industries have operated outside of any local government jurisdiction because they were not required to obtain planning approval due to this non-conforming use right. The Council established a framework through which a level of control could be administered through the Extractive Industries Local Law 2014. The intention of the Local Law is not to stop any extractive industries from operating, in fact the provisions of the Local Law make if difficult if not impossible to do so. The Local Law sets out that if an operator satisfactorily provides all the prescribed information with its licence application then it will be granted a licence. The Local Law provides that the manner in which these extractive industries operate is controlled through conditions of a license. The extractive industry license is primarily focussed upon ensuring that these extractive industries operate consistently with parameters placed on other operations (operating times, rehabilitation, and environmental management), address the impacts of the use and to enable the Shire to have legal capacity to enforce these controls. Part 3, sub-clause (5) of the Local Law determines that:


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“…the local government shall not refuse an application where— (a) the prescribed fee is paid; (b) the application contains the information and documentation required by clause 2.2; and (c ) the report required by clause 2.2(1)(d) demonstrates how the listed environmental considerations will be satisfactorily addressed.” Given the subsidiary nature of the Local Law it should also be noted that conditions imposed on a Local Law licence should be consistent with the extent of any non-conforming use right and not have the effect of a de-facto refusal of a proposal. State Planning Policy 6.1 - Leeuwin Naturaliste Ridge SPP6.1 sets out land use criteria and the designations of the land under this document are noted above. SPP6.1 also sets out landscape management criteria; however the SPP has only limited relevance given the exemption from the planning process afforded by non-conforming use rights. Local Planning Policy 3 – Extractive Industries Shire Policy LPP3 details the considerations that the Shire would apply to the assessment of a planning application for an extractive industry. These provisions provide guidance for the Local Law licence process, however are subject to the parameters of a particular non-conforming use right. Non-Conforming Use Rights Town Planning Scheme No. 11 (TPS11) was Gazetted in April 1985 which zoned the Site ‘Rural’. Clause 2.2 of TPS 11 provided the following: The following classes of development may be undertaken without the planning approval of the Council and are referred to as permitted development:

(c) Development within the Rural Zone outside townsites other than that land within 200 metres of the Brockman and Bussell Highway, Caves Road and within 30 metres of any other dedicated road outside the townsite.

Interim Development Order No 12 (IDO12) (Gazettal date 4 August 1998) clause 4, removed the exemption at clause 2.2(c) of TPS11. Clause 5 of IDO12 provided the following in regard to existing uses: No provision in this Order shall prevent the continued use of any land or building for the purpose for which the land or building was being lawfully used at the time of the coming into operation of this Order or shall prevent that carrying out of any development for which immediately prior to the coming into operation of this Order, a permit or permits if any required under this or any other Act authorising the development to be carried out had been obtained and was current. The documented evidence shows that the Site was used for an ‘extractive industry’ prior to Gazettal of IDO12 in August 1998. The Site has also been used for the garaging of vehicles used in an earth moving and transport business which is not necessarily related to the extractive industry use. As a separate component, that use of land is considered to best fit the definition of a ‘transport depot’. In relation to the extractive industry use, the principle factors relevant at the time that IDO12 came into effect and the existence of non-conforming use rights are: • Portion of the Site was used legally as an extractive industry. • The use was progressive in nature. • The proposed extraction area is within the title that covers the area where the use was

established. • Limiting factors include the change in soil types towards the wet areas, the extent of available

resource, the 200 metre setback that applied from Caves Road and 30m setback from Burnside Road under TPS11.

Shire records continue to reference the operation over time indicating continuation of the use. It is a key point of contention, particularly for a number of submitters that the use had ceased at various periods in time. The following is relevant: • Extraction is evident in 1996 aerial imagery (see Attachment 3).


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• Internal correspondence identifies extractive industry being undertaken on the Site, culminating in the commencement of compliance action in 2004.

• A series of aerial photographs from 2001 through 2013 (see Attachment 4) shows continued use of the Site for extraction.

Further information has been sought from the applicant in relation to the period in time in which Lot 201 to 219 Burnside Road were marketed and sold, where the position of submitters is that the use had ceased. The applicant has provided tax invoices for the supply of sand and gravel from the Site from 2004 to 2015, including in February and August of 2009, 2009 being when adjoining rural residential Lots 212 to 219 were placed on the market. It is based on these factors that pursuant to clause 4.8 of LPS1, the extractive industry on the Site is considered to have a non-conforming use right. Due to the 200m Caves Road setback requirement that applied prior to 1998, the non-conforming use right is not considered to apply to that area and extraction has occurred within that area. Accordingly the Shire has issued a notice to the landowner to cease extraction and rehabilitate the area within 200m of Caves Road. In relation to the transport depot use, the principle factors relevant at the time that IDO12 came into effect and the existence of non-conforming use rights are historical and continued observation of the transport depot: • The transport depot (earthmoving business) is acknowledged in Shire records from 1994 as being

located on Lot 20 Burnside Road (on the opposite frontage of the entrance to the dwelling on Lot 9500) and also that ‘…the remainder of the trucking/earthmoving business is situated across the road with no intention that it be relocated…’

• Aerial imagery from 1996 shows the sheds and location of machinery in what is now Lot 9501. • The subdivision and rezoning report from April 1998 states that ‘The land is also currently used as

a base for a small earthmoving business operated by the landowner’s son. This consists of a repair workshop and truck and machinery storage.’

• Shire reporting to Council in April 2002 stated: ‘The subject site has been used for a grazing and transport business for many years. To staff’s knowledge the transport business has been in operation since the 1970’s’.

• Internal correspondence which details the compliance action previously commenced and abandoned in relation to the earthmoving business.

The transport depot use is not permitted in the Rural Residential zone (proposed Lot 9501) but is a discretionary use in the Priority Agriculture zone (proposed Lot 9001). Relevant to the determination of the non-conforming use rights is the action to create Lot 9001 and 9501 as separate entities. While not entirely determinative of an absence of a non-conforming use rights, the zoning and substantially progressed alienation of Lot 9501 from the balance of the land could be considered to diminish the argument of non-conforming use rights applying to that land for the purpose of an extractive industry. In particular, the land is by request able to be placed on a separate title to the area of proposed extraction. A further activity that has occurred on the Site has been the importation of material including building rubble, fill and various other items. This is not considered to fall within the scope of either the extractive industry or transport depot use classes and appears to have occurred on an occasional basis and ceased for periods of time. There is therefore, not considered to be a corresponding non-conforming use right for importation of materials to the Site, nor is it reasonably related to the extractive industry use. THE PROPOSAL Appended, as Attachment 5, are excerpts of the latest revision of the Proposal, specifically the Site Context Plan, and the Sand and Gravel Staging and Excavation Plan. The application also includes supporting documents such as Noise Impact Assessment, Dust Management Plan, Stormwater Management Plan and Rehabilitation Plan. Below is a summary of the operation: • The extraction is identified over a 12ha area of the Site, including 3ha of completed area to be

rehabilitated. Material is around 85% sand and 15% gravel with total volume ranging from


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55,000m³ to 163,000m³ dependent on the quality of material found through the excavation process.

• Extraction and rehabilitation is proposed in four stages with all excavation and rehabilitation completed by 2022, with the majority of the Site rehabilitated by 2018. Excavation is to be above the water table and stormwater detention and treatment methods are included.

• Screening of material using a mobile screening plant. • Extraction is by excavator and loader and includes screening of gravel material. Transport of

material is by way of one of two vehicles that both fall within the definition of ‘as of right’ vehicles (not subject to road classification restrictions), in a range of between 1 and 10 vehicles (2-20 vehicle movements) per day. Vehicles are proposed to access the Site from the current access at the Burnside Road deviation and north to Carters Road, from there predominantly east but also occasionally west to Bussell Highway.

• Proposed hours of operation are between 7am and 6pm weekdays and 7am to 1pm on Saturdays, and exclusive of school bus times.

• Stockpiles of materials and retained topsoil are at different locations within the excavation area. The material stockpiles are approximately 2-4 metres in height.

• Upon completion the topsoil will be replaced and seeding of paddock grasses will occur to support stock grazing.

Through the application process further information was provided by the proponent in response to the issues that were raised during the advertising of the application and subsequent assessment. CONSULTATION The proposal was advertised between 7 December 2015 and 22 January 2016. A total of 108 submissions were received, 36 of which were in support, 65 of objection and seven from government agencies and service providers providing advice and recommendations. Supporters of the proposal highlighted the need for a local source of sand and gravel to support the local building trade. They also cited concerns that an existing business could be ‘forced out’ by ‘new’ residents. The primary issues raised by those objecting to the proposal were: • Noise and dust impacts; • Visual amenity; • Environmental concerns including site contamination; • Concerns regarding truck movements and the capacity of the existing road network; and • Operating hours. A full schedule of submissions and responses to those submissions is included as Attachment 5. DISCUSSION A strong opinion is expressed in some of the submissions that the licence application should be refused. The Local Law does not create a head of power to stop existing ‘planning exempt’ extractive industries from operating and refusal of the licence application would not have this effect. The Local Law operates in a manner subsidiary to the non-conforming use rights under LPS1 and provides a means to apply conditions and regulate the nature of these planning exempt activities. This Local Law can only operate to the extent it is not inconsistent with LPS1 given the protection of non-conforming use rights under clause 4.8. The purpose of imposing conditions upon any licence is to address environmental impacts in a reasonable and appropriate manner. This position does in the first instance, turn on whether non-conforming use rights apply to the Site. The following options are therefore open to the Council: • Approve the Local Law licence subject to conditions. • Refuse the Local Law licence application, however due regard should be given the matters under

which a licence application can be refused. • Determine that non-conforming use rights do not exist, and therefore the Local Law licence is

irrelevant. It should be noted that there would be an inherent implication in this action that compliance under planning legislation to cease the use would follow. This action would need to be taken on the particular merits of the situation, rather than intent for the question of non-


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conforming use rights to be tested through review in another forum. It should be noted that that this position would not resolve a significant component of amenity impacts caused by the use of the outbuildings and their curtilage adjacent to Lot 212 Burnside Road, as the area is also used in association with the transport depot component of the use.

The issues raised in objection to the Proposal relate to amenity impacts as a result of noise, dust, traffic safety and visual impacts. These issues and the measures to mitigate impact are discussed in turn below. Noise and Traffic Movements The noise impact report advertised with the proposal predicted noise levels experienced at residences nearby to stages 2, 3 and 4 of the extraction would not comply with the noise regulations; however certain measures could be taken to bring the operation into compliance. Of further concern was an assessment by Shire staff that the submitted noise impact assessment did not address noise from the machinery shed/workshop including the maintenance and servicing of vehicles and equipment, truck movements within the site and entering and exiting the site off Burnside Road. The report also did not consider predicted noise levels at future adjacent subdivision and omitted a nearby residence from any noise modelling. The recommendations in the noise report, specifically noise attenuation methods, were not incorporated into the planning application. In response to Shire feedback an amended noise report was submitted in January 2016. The resubmitted noise report states that the operations could comply if specific noise attenuation methods (i.e. stockpiling adjacent to operations) were employed by the operator. Both the initial report and the January 2016 report were referred to Noise Regulations Officers at the Department of Environment Regulation (DER). The DER suggested that taking measurements of noise from the existing operations would be the most appropriate way to demonstrate compliance. The DER further questioned the calculations used in the submitted noise report, the incomplete list of plant assessed, the assumed noise levels of the plant that was included and the lack of consideration of truck movements entering and exiting the site. This feedback was forwarded to the acoustic consultant for a response. In June 2016 the acoustic consultant submitted an addendum to the January 2016 report which addresses the concerns raised by the Shire and the DER. Both agencies continue to have concerns over the accuracy of the submitted modelling and the actual noise profile of the site. Compliance with noise regulations is ultimately a matter for how the Proposal is undertaken. Notwithstanding the Shire and DER concerns, the Local Law requires only that the proponent address “noise, dust and vibration abatement measures”. It specifically notes that the Environmental Protection Act and subsidiary legislation continues to apply and that the proponent is bound by those requirements. In the case of the subject property, monitoring and enforcement of the Regulations is the responsibility of the Local Government. The Shire would have the statutory ability to monitor operations on the site and issue infringements if breaches occur. There are practical measures that can be incorporated into operations that can minimise impacts and assist in compliance with the relevant legislation (including restrictions on machinery operation, and bunding adjacent to screening). While the noise of vehicles on a public road is exempt from the noise regulations, it is also relevant that the access location, use of the outbuildings in proximity to adjacent rural residential land and movement of vehicles through the Site create amenity impacts for surrounding residents. In this respect the issue of the different activities and non-conforming use rights becomes relevant. This matter has been further discussed with the applicant who has agreed to: • Refrain from undertaking any maintenance of machinery within and adjacent to the outbuildings

on proposed Lot 9501. • Transition the storage of the vehicles used in association with the extractive industry from the

outbuildings in the south east and their immediate curtilage to an area adjacent to the dwelling on proposed Lot 9001 by the end of 2016. This can be ensured by condition of licence.

• Remove the outbuildings on proposed Lot 9501 during 2017. The ability to ensure the first two of these actions occurs is achievable through the local law licence process as:


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• While the machinery used for extraction and transport of material is used in conjunction with both the extractive industry and transport depot uses, the substantial progress towards creation of Lots 9001 and 9501 as separate parcels provides that the extractive industry non-conforming use right applying to proposed Lot 9501 could reasonably be considered to be diminished.

• Once the vehicles have been removed from proposed Lot 9501 the non-conforming use right for the transport depot business could also reasonably be considered to have ceased on this area of Lot 9500 (proposed Lot 9501) after a period of 6 months from the relocation of the vehicles. While there would be no corresponding trigger to remove the outbuildings, they would no longer be able to be used in relation with either the extractive industry or transport depot.

These actions are consistent with the principle that while non-conforming uses have protection under LPS1, changes in land use and circumstances see the use transition to a point where impacts become compatible with the intent of the underlying zoning and associated rules for land use. Truck access to the site for both the extractive industry and transport depot is currently via the partially completed Burnside Road deviation. Alternative access is possible via an existing crossover to Burnside Road which provides access to the dwelling on the Site. The location of that crossover is opposite Lot 20 Burnside Road which is also owned by the applicant. The applicant wishes to continue to utilise the current access point for the life of extraction due to the ability for vehicles to enter and exit the Site at grade and without stopping. Alternative access would require upgrades to the existing crossover and construction of a new access track. While it is open to the Council to seek to relocate this access, it is physically suitable for the purpose of access and compliant with applicable noise standards. Operating Hours The proponent proposes operating times of between 7am and 6pm Monday to Friday, and 7am to 1pm Saturdays. There have been a number of submissions objecting to these operating hours. In general these submissions seek operating times of between 7am and 5pm and from Monday to Friday only. It is generally accepted in planning decisions and noise legislation that Saturday is a typical working day and that noise should be more strictly regulated between the hours of 7pm to 7am. As a consequence, the operating times proposed have been found to be consistent with standard approaches, previous decisions, and Shire Policy LPP3 and are therefore acceptable subject to a condition which limits use to these times. Visual Amenity The advertised proposal showed extraction within 130m of Caves Road. Since that time, the Shire has issued a notice under section 214 of the Planning and Development Act to prevent any further extraction and require rehabilitation within 200m of Caves Road, as this area is outside of that which has previously been considered to have a ‘non-conforming use right’. The Shire further requested that extraction within this area be removed from the application which the proponent has done. As a consequence, landscaping initially proposed along Caves Road has also been withdrawn together with landscaping along the future extension of Burnside Road. The proponent notes that the staging of remaining extraction in proximity to Caves Road is such that extraction and rehabilitation will be completed over the next 2 years and therefore implementation of screen landscaping, even if planted immediately would not have grown to an effective height/width prior to the conclusion of operations in this area. Similarly, subdivision to create rural residential lots south of Burnside Road is unlikely to occur in the short term (2016/17) making screening unnecessary from this vantage point given the 2018 rehabilitation timeframe for that area. The staging and timing of rehabilitation can be ensured by condition. Site Contamination The Site has previously been subject to unresolved compliance action regarding the dumping of material. Further investigation was undertaken and the DER investigated the Site as a potential contaminated site under the provisions of the Contaminated Sites Act. On 4 May, the DER advised of the conclusion of their investigation that:


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“inert construction waste and used tyres are present in some areas of the site. However, the materials present do not indicate that contamination is present that could pose risk to human health, the environment or any environmental value”. The DER’s decision was not to classify the site as contaminated. Separation distances There are a number of dwellings within 500m of extraction areas, however no dwellings are located within 300m of the identified footprint of areas of extraction (see Attachment 4). One means of addressing land use conflict between extractive industry and more sensitive land use is physical separation. The Environmental Protection Authority (EPA) Guidance Statement 3 - Separation Distances between Industrial and Sensitive Land Uses and Shire policy LPP3 – Extractive Industries, set minimum separation distances and matters to be considered in addressing the impacts of activities. Appendix 1 of the EPA Guidance Statement 3 (GS3) lists the type of industry, potential impacts and recommended buffer. The primary impacts identified in GS3 for sand and lime extraction are noise and dust. A generic buffer distance of between 300m and 500m is set out in GS3. It is stated in the EPA Guidance Note 3 that: “…this Guidance Statement is intended to provide advice on generic separation distances between specific industry and sensitive land uses to avoid or minimise the potential for land use conflict. The distances outlined in Appendix 1 are not intended to be absolute separation distances, rather they are a default distance for the purposes of: • identifying the need for specific separation distance or buffer definition studies; and • providing general guidance on separation distances in the absence of site specific technical

studies.” As recommended by the guidance statement, technical studies have been undertaken and these are detailed in this report. These reports identify that subject to certain measures the area of extraction is sufficiently separated from dwellings to provide an acceptable level of mitigation. While there are clearly effects received at nearby dwellings, those effects are within the range of what is likely to comply with acceptable standards. This observation is however, not the case for the operations within the storage area and shed as discussed above. Dust Dust management is raised as an issue in a number of submissions. The submitted dust management measures will be ensured by condition and are considered an appropriate response. While a condition will generally capture the need to restrict dust from leaving the Site, the specific measures in the Dust Management Plan include: • Utilising a water cart to wet trafficable areas and stockpiles when conditions require. • Minimising the height of material stockpiles. • Requiring progressive rehabilitation. Environmental Management The main environmental issues associated with the Proposal relate to potential impacts on groundwater and surface water, and protection of flora and fauna values. In relation to potential groundwater issues an assessment of groundwater levels was undertaken utilising broad level desktop analysis and reference to two existing soaks on the Site. This information was reviewed by the Department of Water (DoW) who advised that while subject to limitation, DoW was satisfied that extraction can occur with due diligence being exercised to retain acceptable separation from groundwater. DoW suggested a number of conditions of operation in this regard. With respect to surface water issues the Proposal, and specifically the Stormwater Management Plan, have also been subject to assessment by the DoW. The Proposal includes setbacks to watercourses, rehabilitation of an existing soak and stormwater management by way of detention. These measures have also been found an acceptable response to Site conditions.


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With regard to flora and fauna values, the Proposal has been subject to review by the DPaW and has also set out a number of measures to minimise impact. With the addition of conditions as recommended by DPaW and the methods the minimise impact demonstrated in the Proposal, the Licence can ensure appropriate environmental management outcomes in the context of the non-conforming use right. These measures include: • Protection of all remnant vegetation. • Exclusion areas around isolated paddock trees in areas of excavation. • Demarcation of exclusion areas around buffers to creeklines and the wet areas on the Site. Rehabilitation The Rehabilitation Plan sets out progressive rehabilitation to be undertaken corresponding to the stages of excavation shown on Attachment 4. This rehabilitation would see all excavation cease and rehabilitation implemented in all southern areas of proposed Lot 9001 by 2018. The intention is to rehabilitate the area using on material from the Site to a condition suitable for agriculture. Shire Liability Several submissions raised the issue of there being a potential liability to the Shire in granting approval to a local law licence application, referencing a clause in the Local Law requiring the holder of a licence to indemnify the Shire. The Local Law does not require the Shire to insure, indemnify or co-sign any insurance policy. The Local law requires that the applicant indemnifies the Shire and takes out an insurance policy to that effect. Clause 6.1 of the Local Law (or any insurance policy taken out in accordance with clause 6.1) is not considered to impact on the Shire’s liability in relation to any extractive industry. Liability relates to legal responsibility, whereas indemnification relates to protection from legal responsibility (ie by insurance). Having insurance (or a requirement for such in a local law) does therefore not equal liability. The Shire’s liability in relation to the extractive industry approved under the local law will be no different to its liability for the approval of extractive industry (or any other development) under the planning scheme. If any particular party carries out extractive industry activities without public liability insurance they will be in breach of the local law. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 3: Managing Growth Sustainably Community Outcome 3.1: Clearly defined areas for growth and renewal Strategic Response: Implement service level strategy/plan: Provide planning services FINANCIAL IMPLICATIONS Nil SUSTAINABILITY IMPLICATIONS Environmental Environmental impacts can be mitigated by conditions reflecting the advice received by relevant government departments. Social It is considered that through the imposition of conditions of a Local Law licence a better outcome can be achieved for surrounding residents. Economic Basic raw materials are of high importance in the context of built development and are a contributing factor the growth and economic development of the locality. The supply of materials is an essential component for economic activity in the locality. VOTING REQUIREMENTS Simple Majority


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RECOMMENDATION That Council: 1. Issues a Licence, under the Shire of Augusta Margaret River Extractive Industries Local Law

2014, to M Gray - Margaret River Earth Cartage, for an extractive industry at Lot 9500 Burnside Road, Burnside, subject to the following conditions.

a. The extractive industry is to be carried out in compliance with the plans and documentation

listed below and endorsed with Council’s stamp, except where amended by other conditions of this consent.

Plans and Specifications

P1 being the Sand and Gravel Staging and Excavation Plan received at the Shire on 9 June 2016, and associated specifications contained in the report titled Application for Extractive Industry Licence received on 9 June 2016, except as may be modified by the following conditions.

b. This licence is valid for until 2022 and implementation shall be in accordance with the staging

and rehabilitation requirements detailed in Plan P1, to the satisfaction of the Shire.

c. No maintenance of machinery or activities in relation to extractive industry is to be undertaken in the outbuildings adjacent to Lots 212 and 214 Burnside Road.

d. Prior to the end of the 2016 calendar year all machinery associated with the extractive

industry, with the exception of the mobile screening plant, shall be relocated from the outbuildings adjacent to Lots 212 and 214 Burnside Road to an area adjacent to the existing dwelling on Lot 9500 Burnside Road.

e. No excavation shall take place within 30 metres of Burnside Road, 200 metres from the

Caves Road alignment in place at August 1998, or 20 metres from any other property boundary.

f. The proponent shall pay a Rehabilitation Bond, within 90 days from the date of this licence, to

be held against satisfactory completion of rehabilitation works required as a condition(s) of this licence. The rehabilitation bond will be based on the final exposed footprint at any stage of the extraction.

g. The extractive industry is permitted to operate from 7:00am to 6:00pm Monday to Friday and

Saturdays from 7:00am to 1:00pm. The extractive industry shall not operate on Sundays or public holidays.

h. Heavy vehicles shall suitably avoid school bus times on the immdiate road network (Burnside

and Carters Roads) to the Shire's satisfaction.

i. The excavation shall not intercept the water table. Excavation works are to cease immediately in the event the water table is encountered/exposed. The Shire shall be advised within 24 hours that the water table has been encountered and restorative action shall be taken within a timeframe agreed with the Shire.

j. Dewatering of the extraction area is not permitted without further approval.

k. No standing water shall occur at the end of extraction/post rehabilitation. l. No extraction activities should occur within 10 metres of any native tree crown drip zones

along the boundaires of and within the proposed extraction are and within 20 metres of the watercourse or wet areas.

m. A temporary demarcation barrier shall be established between any areas of excavation and

20 metres form any adjacent watercourse to protection these areas from accidential damage to the Shire's satisfaction.


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n. Major repairs and maintenance of vehicles in not permitted on Site.

o. Blasting activities are not permitted.

p. Onsite storage of fuel shall be in accordance with the DER requirements and approval.

q. Surface water runoff from the site shall be contained onsite and appropriate measures shall be put in place, to the satisfaction of the Shire, to avoid sediment mobilisation to any open watercourse or drainage system.

r. The proponent shall implement, to the satisfaction of the Shire, all measures necessary to

prevent erosion or airborne transmission of soil (dust control) from the development. s. Noise management measures outlined in the associated Noise Managament Plan shall be

implemented to the Shire's satisfaction. t. As a noise control measure the applicant shall install broadband reversing alarms on all

mobile plant (including transport vehicles) instead of ‘tonal’ alarms in a manner compliant with all relevant health and saftey requirements.

u. No depositing of material on the Site is permitted unless subject to authorisation from the

Shire for the purpose of rehabilitation. ADVICE NOTES

a. You are advised of the need to comply with the requirements of the following other legislation:

(i) Environmental Protection (Noise) Regulations; (ii) Mines Safety and Inspection Act; and (iii) The Aboriginal Heritage Act 1972.

b. The proponent is required to ensure that ongoing operational activities associated with the approved development including processing and transportation, and any other works that cannot be considered as construction site work complies with the standard prescribed under the Environmental Protection (Noise) Regulations 1997.

c. The development has obligations under the Environment Protection (Noise) Regulations 1997.

These regulations require noise emissions from the premises to comply with the assigned noise levels set pout in the Regulations.

d. The DoW has advised that taking or diversion of surface water is not subject to DoW licencing.

Any groundwater abstraction is subject to licencing, except if the abstraction is for domestic or non-commercial use.

e. Licensing or registration requirements under the protection of the Environmental Protection Act

may apply depending on the annual level of screening of material undertaken. The proponent is advised to ensure that appropriate authority is obtained in this regard.

ATTACHMENTS 1. Plan of Subdivision – WAPC:142748 2. Excerpt from Deposited Plan 401475 3. 1996 Aerial photograph 4. Aerial Imagery 2001 – 2013 5. Site Context Plan and Gravel and Sand Extraction Plan 6. Schedule of submissions


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RECOMMENDATION CR SMART, CR KENNAUGH That Council:

1. Issues a Licence, under the Shire of Augusta Margaret River Extractive Industries Local Law 2014, to M Gray - Margaret River Earth Cartage, for an extractive industry at Lot 9500 Burnside Road, Burnside, subject to the following conditions.

a. The extractive industry is to be carried out in compliance with the plans and

documentation listed below and endorsed with Council’s stamp, except where amended by other conditions of this consent.



b. This licence is valid for until 2022 and implementation shall be in accordance with the

staging and rehabilitation requirements detailed in Plan P1, to the satisfaction of the Shire.




e. No excavation shall take place within 30 metres of Burnside Road, 200 metres from the

Caves Road alignment in place at August 1998, or 20 metres from any other property boundary.

f. The proponent shall pay a Rehabilitation Bond, within 90 days from the date of this

licence, to be held against satisfactory completion of rehabilitation works required as a condition(s) of this licence. The rehabilitation bond will be based on the final exposed footprint at any stage of the extraction.

g. The extractive industry is permitted to operate from 7:00am to 6:00pm Monday to

Friday and Saturdays from 7:00am to 1:00pm. The extractive industry shall not operate on Sundays or public holidays.

h. Heavy vehicles shall suitably avoid school bus times on the immdiate road network

(Burnside and Carters Roads) to the Shire's satisfaction.



k. No standing water shall occur at the end of extraction/post rehabilitation. l. No extraction activities should occur within 10 metres of any native tree crown drip

zones along the boundaires of and within the proposed extraction are and within 20 metres of the watercourse or wet areas.


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m. A temporary demarcation barrier shall be established between any areas of excavation and 20 metres form any adjacent watercourse to protection these areas from accidential damage to the Shire's satisfaction.





r. The proponent shall implement, to the satisfaction of the Shire, all measures necessary

to prevent erosion or airborne transmission of soil (dust control) from the development.

s. Noise management measures outlined in the associated Noise Managament Plan shall

be implemented to the Shire's satisfaction. t. As a noise control measure the applicant shall install broadband reversing alarms on

all mobile plant (including transport vehicles) instead of ‘tonal’ alarms in a manner compliant with all relevant health and saftey requirements.

u. No depositing of material on the Site is permitted unless subject to authorisation from

the Shire for the purpose of rehabilitation. ADVICE NOTES

a. You are advised of the need to comply with the requirements of the following other legislation:


b. The proponent is required to ensure that ongoing operational activities associated with the approved development including processing and transportation, and any other works that cannot be considered as construction site work complies with the standard prescribed under the Environmental Protection (Noise) Regulations 1997.

c. The development has obligations under the Environment Protection (Noise)

Regulations 1997. These regulations require noise emissions from the premises to comply with the assigned noise levels set pout in the Regulations.

d. The DoW has advised that taking or diversion of surface water is not subject to DoW

licencing. Any groundwater abstraction is subject to licencing, except if the abstraction is for domestic or non-commercial use.

e. Licensing or registration requirements under the protection of the Environmental

Protection Act may apply depending on the annual level of screening of material undertaken. The proponent is advised to ensure that appropriate authority is obtained in this regard.

0/0

Cr Lane moved the following amendment:


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AMENDMENT / COUNCIL DECISION CR LANE, CR TOWNSHEND OM2016/146 That the following conditions be added to recommendation dot point 1:

v. Prior to the end of the 2016 calendar year the existing access to the site is to be relocated from the termination of Burnside Road to a location generally opposite Lot 20 Burnside Road. The vehicle crossover shall be located, designed and constructed in accordance with the Shire’s crossover standards and specifications.

w. Lockable gate(s) are to be installed at entrances to the site to prevent unauthorised

entry.

x. Trucks entering and exiting the site are not to use the Caves Road/ Horseford Road intersection.

2. Request the Shire to install ‘no through road’ signage at the termination of Burnside Road.

7/0 REASON Cr Lane spoke to the motion stating that the extra conditions will provide for rehabilitation of the block that’s been excavated and will allow for stiff penalties if this condition is not met. Condition ‘x’ will ensure great relief to land owners. This then became the primary motion. Debate continued before being put to the vote. PRIMARY MOTION / COUNCIL DECISION CR SMART, CR KENNAUGH OM2016/147 That Council:

1. Issues a Licence, under the Shire of Augusta Margaret River Extractive Industries Local Law 2014, to M Gray - Margaret River Earth Cartage, for an extractive industry at Lot 9500 Burnside Road, Burnside, subject to the following conditions.

a. The extractive industry is to be carried out in compliance with the plans and

documentation listed below and endorsed with Council’s stamp, except where amended by other conditions of this consent.



b. This licence is valid for until 2022 and implementation shall be in accordance with the

staging and rehabilitation requirements detailed in Plan P1, to the satisfaction of the Shire.





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e. No excavation shall take place within 30 metres of Burnside Road, 200 metres from the Caves Road alignment in place at August 1998, or 20 metres from any other property boundary.

f. The proponent shall pay a Rehabilitation Bond, within 90 days from the date of this

licence, to be held against satisfactory completion of rehabilitation works required as a condition(s) of this licence. The rehabilitation bond will be based on the final exposed footprint at any stage of the extraction.

g. The extractive industry is permitted to operate from 7:00am to 6:00pm Monday to

Friday and Saturdays from 7:00am to 1:00pm. The extractive industry shall not operate on Sundays or public holidays.

h. Heavy vehicles shall suitably avoid school bus times on the immdiate road network

(Burnside and Carters Roads) to the Shire's satisfaction.



k. No standing water shall occur at the end of extraction/post rehabilitation. l. No extraction activities should occur within 10 metres of any native tree crown drip

zones along the boundaires of and within the proposed extraction are and within 20 metres of the watercourse or wet areas.

m. A temporary demarcation barrier shall be established between any areas of excavation

and 20 metres form any adjacent watercourse to protection these areas from accidential damage to the Shire's satisfaction.





r. The proponent shall implement, to the satisfaction of the Shire, all measures necessary

to prevent erosion or airborne transmission of soil (dust control) from the development.

s. Noise management measures outlined in the associated Noise Managament Plan shall

be implemented to the Shire's satisfaction. t. As a noise control measure the applicant shall install broadband reversing alarms on

all mobile plant (including transport vehicles) instead of ‘tonal’ alarms in a manner compliant with all relevant health and saftey requirements.

u. No depositing of material on the Site is permitted unless subject to authorisation from

the Shire for the purpose of rehabilitation.

v. Prior to the end of the 2016 calendar year the existing access to the site is to be relocated from the termination of Burnside Road to a location generally opposite Lot


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20 Burnside Road. The vehicle crossover shall be located, designed and constructed in accordance with the Shire’s crossover standards and specifications.

w. Lockable gate(s) are to be installed at entrances to the site to prevent unauthorised entry.

x. Trucks entering and exiting the site are not use the Caves Road/ Horseford Road

intersection.

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

legislation:


b. The proponent is required to ensure that ongoing operational activities associated

with the approved development including processing and transportation, and any other works that cannot be considered as construction site work complies with the standard prescribed under the Environmental Protection (Noise) Regulations 1997.

c. The development has obligations under the Environment Protection (Noise)

Regulations 1997. These regulations require noise emissions from the premises to comply with the assigned noise levels set pout in the Regulations.

d. The DoW has advised that taking or diversion of surface water is not subject to DoW

licencing. Any groundwater abstraction is subject to licencing, except if the abstraction is for domestic or non-commercial use.

e. Licensing or registration requirements under the protection of the Environmental

Protection Act may apply depending on the annual level of screening of material undertaken. The proponent is advised to ensure that appropriate authority is obtained in this regard.

2. Request the Shire to install ‘no through road’ signage at the termination of Burnside Road.

CARRIED 7/0


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11.2.2 SUSTAINABILTY ADVISORY COMMITTEE MINUTES FROM 16 JUNE 2016 LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE LND/115 REPORT AUTHOR Jared Drummond, Sustainability Planning Officer AUTHORISING OFFICER Nick Logan, Acting Director Sustainable Development IN BRIEF • This report is a summary of the Sustainability Advisory Committee (SAC) minutes from 16 June

2016 (Attachment 1). • The report discusses the following SAC reports:

- Funding towards Cape to Cape Catchments Group projects - Summary of Environmental Management Fund projects from 2015/16 - Western Ringtail Possum protection - Climate Adaptation Workshop - CUSP Memorandum of Understanding - Draft Economic Development Strategy

RECOMMENDATION That Council: 1. Receives the minutes of the Sustainability Advisory Committee held on 16 June 2016. 2. Allocates funding from the Shire’s 2016/17 Environmental Management Fund to the following:

a) $10,000 towards the Our Patch Environmental Education Program. b) $13,500 towards ongoing support of the three recently established friends groups for

Shire reserves along the Margaret River SUMMARY OF SAC MINUTES Cape to Cape Catchments Group projects On 5 May 2016 the Cape to Cape Catchments Group (CCCG) wrote to the Shire seeking continued funding support for their activities and environmental programs. A copy of the letter is attached. In the letter the CCCG specifically requests the following funding in 2016/17:

1. A contribution of $10,000 towards the “Our Patch” Environmental Education Program; 2. A contribution of $13,500 for ongoing support of three recently established friends groups for

Shire reserves along the Margaret River; and 3. A contribution of $5,000 towards weed control in Shire reserves along the Margaret River.

Detailed justification for these requests is provided in the CCCG’s letter. Officers have considered the requests and support the allocation of funds from the Shire’s 2016/17 $90,000 Environmental Management Fund budget allocation of $10,000 towards the Our Patch Environmental Education Program and to the support of friends groups ($13,500). These allocations will support projects that have commenced in previous years, but require additional support to maintain and build on the positive outcomes achieved to date. The requested contribution of $5,000 towards weed control in Shire reserves is also supported. The Shire’s Landcare budget has an annual allocation of $20,000 for contract services, most of which is usually expended on engaging contractors to undertake weed control in high value Shire reserves. In line with CCCG’s request, SAC adopted the motion below. It is noted that recommendation 3. has already been actioned via the preparation of the draft 2016/17 budget.


36

MOTION / SAC DECISION MOVED: CR TOWNSHEND, SECONDED: LYN SERVENTY SAC2016/6 SAC recommend to Council that the following funding allocations are made in the Shire’s 2016/17 budget: 1. A contribution of $10,000 towards the Our Patch Environmental Education Program from the Environmental Management Fund. 2. A contribution of $13,500 towards for ongoing support to the three recently established friends groups for Shire reserves along the Margaret River from the Environmental Management Fund. 3. Weed control in Shire reserves along the Margaret River continue to be funded from the Shire’s annual “contract services” allocation in the Landcare operating budget.

CARRIED 12/0 In relation to the CCCG’s request for greater collaboration between the Shire and CCCG to improve conservation outcomes in the Shire, a meeting of relevant officers of the two organisations has been arranged for mid-June. It is proposed to hold quarterly meetings to allow dialogue on issues such as:

• Opportunities for collaboration on local projects, including joint grant funding applications; • Preparation of annual budgets; • Development of new plans and programs; and • Emerging conservation issues.

Environmental Management Fund projects 2015/16 Shire officer John McKinney provided a summary of Environmental Management Fund (EMF) projects which were actioned in 2015/16:

• Hardy Inlet Foreshore management. • Our Patch Environmental Education program through the CCCG. • Gracetown Coastal Management. • Margaret River foreshore rehabilitation and friends group. • Phytophthora dieback management. • Western Ringtail Possum protection.

Mr. McKinney advised the SAC that a draft Grant Guidelines document will be prepared and brought to the SAC meeting in September, with the intent of discussing a number of EMF projects that will be available for external implementation. Western Ringtail Possum protection Councillor Townshend prepared a briefing on Western Ringtail Possum (WRP). In 2015/16, the Shire directed $10,000 of funding towards preservation of the WRP. At a recent presentation organised by the Cape to Cape Catchments Group a PhD student presented research findings on a group of WRP in Busselton. The research highlighted that the Shire has very little data upon which to base preservation strategies. The Cape to Cape Catchments group is currently working on some WRP preservation strategies and it is considered important that the Shire contribute further EMF funds to the group, and consider working with the group, to assist with their strategies. No formal motion was adopted by the SAC. SAC did however note the intention of Shire staff to include additional funding for WRP protection in the list of possible projects to be funded from the EMF. Following completion of a number of initiatives to protect WRP, Shire officers will review funding opportunities to undertake further work in this field. Climate Adaptation Workshop In April 2016 a collaborative workshop on the topic of Adaptation to Climate Change in the Augusta Margaret River Shire was hosted by the August Margaret River Shire together with Curtin University Sustainability Policy Institute, Transition Margaret River and Cape to Cape Catchments Group. SAC noted a presentation from Laura Stocker on the outcomes of the Climate Adaptation workshop. SAC members noted that a sub-committee had previously been formed with the intention of assisting the Shire with preparation of its Climate Adaptation Plan. SAC members reaffirmed their commitment


37

to assisting with the plan where considered helpful by the Shire. Shire staff noted that the final outcomes of the Climate Adaptation workshop will be beneficial to current and future shire projects. CUSP Memorandum of Understanding The Shire and Curtin University Sustainability Policy (CUSP) Institute signed an MOU in November 2014, with the intent of working together on a number of sustainability projects. Dr Laura Stocker (from the CUSP) briefed SAC on the projects undertaken to date, and potential future partnership projects. The SAC considered how the SAC's Terms of Reference could align with the MOU, and how it can most effectively support the MOU. The SAC Terms of Reference include 'Community information and engagement to increase sustainable practice'. SAC members requested that Shire staff call for members prepared to be part of a working group to review SAC’s terms of reference which are now 10 years old. Members indicated a preference to align the terms of reference with the CUSP MOU and to incorporate social justice elements. A meeting is scheduled to be coordinated with members. Draft Economic Development Strategy The Shire has released a Draft Economic Development Strategy (EDS) for comment. Submissions closed on 27 May. The Strategy includes commitment to environmental sustainability and proposals likely to influence all aspects of sustainability (environmental, economic, social, cultural) as the population, visitor numbers and economy grow over the next 10 years. Several SAC members requested a brief update from the Shire on consultation to date and proposed stages in finalising the Strategy, including:

• Sustainability issues associated with economic development in the Shire; • how the EDS links to the Environmental Sustainability Strategy; and • SAC's future role in advising on relevant issues.

The SAC noted an overview of the economic development strategy provided by the CEO. SAC members noted the CEO’s intention to coordinate a forum, to allow for dialogue on the draft strategy by interested members of SAC and the community generally. A community forum on the EDS is scheduled to be held on 28 July, at the Margaret River Education Campus. This will provide community with a better understanding of the EDS, and an open forum to provide feedback on the Strategy. FINANCIAL IMPLICATIONS Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Receives the minutes of the Sustainability Advisory Committee held on 16 June 2016

(Attachment 1). 2. Allocate funding from the Shire’s 2016/17 Environmental Management Fund to the following:

a) $10,000 towards the Our Patch Environmental Education Program. b) $13,500 towards ongoing support of the three recently established friends groups for

Shire reserves along the Margaret River. ATTACHMENTS 1. Sustainability Advisory Committee Minutes – June 2016 RECOMMENDATION / COUNCIL DECISION CR TOWNSHEND, CR LANE OM2016/148 That Council: 1. Receives the minutes of the Sustainability Advisory Committee held on 16 June 2016

(Attachment 1).


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2. Subject to the approval of the 2016-17 budget allocates funding to the Cape to Cape Catchments Group Inc. from the Shire’s 2016/17 Environmental Management Fund to the following:

a) $10,000 towards the Our Patch Environmental Education Program. b) $13,500 towards ongoing support of the three recently established friends

groups for Shire reserves along the Margaret River. CARRIED 7/0


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11.2.3 AMENDMENT NO. 39 - REZONING FROM CARAVAN PARK TO RURAL RESIDENTIAL AND RELATED STRUCTURE PLAN, CAVES ROAD GRACETOWN

LOCATION/ADDRESS Lot 112 Caves Road, Gracetown APPLICANT/LANDOWNER A Englert FILE REFERENCE LND/1/39 REPORT AUTHOR Matt Cuthbert, Acting Manager Planning and Development Services AUTHORISING OFFICER Nick Logan, Acting Director Sustainable Development IN BRIEF • The proposal is a Scheme Amendment which seeks to rezone Lot 112 Caves Road, Gracetown

(the site) from ‘Caravan Park’ to ‘Rural Residential’. • No tourism development currently exists on the site. • The purpose of the Amendment is to apply a zone to the site which is consistent with its

intended use, and to facilitate subdivision of the site into two rural residential lots. • The site is identified by the Leeuwin Naturaliste Ridge Statement of Planning Policy as being

suitable for rural residential land use and development purposes and therefore the proposal is consistent with the applicable strategic planning framework.

• The proposal has been advertised with no submissions of objection being received. RECOMMENDATION That Council recommends approval to Amendment No. 39 and the related Structure Plan. TABLED ITEMS Nil THE PROPOSAL The proposal consists of: • An amendment to LPS1 to rezone the land from ‘Caravan Park’ to ‘Rural Residential’; • Removing provisions from Schedule 16 ‘Special conditions relating to tourist zones’ of LPS1

which relate specifically to the site and which provide it with limited tourism development potential;

• Introducing provisions into Schedule 11 ‘Special provisions relating to development on land zoned rural residential zone’ of LPS 1, which seek to guide future rural residential landuse and development;

• Introducing an ‘additional use’ designation to the land which will allow the land to be used for the purposes of horse agistment and stabling, a use not otherwise permitted in the rural residential zone; and

• A Local Structure Plan which sets out how the land can be subdivided into two rural residential lots, including guidance on access, fire management and the location of future development.


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Figure 1 - Location BACKGROUND The subject land and the adjoining caravan park were, until the mid 1990’s, one lot (Lot 11). In 1996, the Minister for Planning approved Amendment 79 to the then operative Town Planning Scheme No. 11, which put in place the opportunity for the land to be subdivided, and for the portion of the land now forming Lot 112 to be developed for dormitory accommodation and ancillary uses, in accordance with an associated Structure Plan. The owners of the caravan park at the time had intended to develop the dormitory accommodation however this has never eventuated. Following approval to Amendment 79, Lot 11 was subdivided into two lots now referred to as Lot 111 and 112 being the subject site. The provisions contained in TPS 11 relating to Lot 112, were carried over into LPS1 in 2010 and remain in place today.

Figure 2 - Existing Structure Plan

SUBJECT LAND


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PLANNING FRAMEWORK Leeuwin Naturaliste Ridge Statement of Planning Policy 6.1 (LNRSPP) The site is designated by the LNRSPP as ‘Rural Residential’ which supports the subject proposal. It is also identified as being within a ‘National Park Influence Area’. Policy LUS3.17 of the LNRSPP sets out guidance for assessing proposals in the National Park Influence Area. An example which conveys the policy intent for this area is as follows: “Landowners adjoining the National Park or Principal Ridge Protection Area should comply with the “good neighbour zone” and recognise potential impacts upon the values and management of the National Park and Principal Ridge Protection Areas, particularly in relation to fire management and control of vermin.” Local Planning Strategy The site is identified by the LPS as ‘Tourism’, which reflects its existing zoning. Some important changes to the LPS were recently endorsed by Council and subsequently supported (for the purposes of advertising) by the WAPC, which are relevant to this proposal. The changes remove the ‘presumption against rezoning’ land zone for tourism to other zones. This has been replaced by the following statement, set out at Part 4.2 ‘Tourism’ of the LPS whish states: “Where rezoning is proposed, consideration will be given to the LTPS (Local Tourism Planning Strategy) taking into account the appropriateness of the land use in the context of its location and the demand for that particular tourist accommodation or activity type, in consultation with Tourism WA.” Key policy guidance provided by the LTPS is as follows: Rezoning from tourism to an alternative zone will only be supported where: 1. It can be demonstrated that the site no longer has an existing or potential tourism function, and

where rezoning of the whole or part of the site for an alternative use is therefore considered appropriate;

2. The proponent undertakes an independent supply/demand study to determine whether the site is surplus to demand and appropriate for rezoning;

3. Development of surrounding land uses is no longer compatible with tourism development; 4. The site has not been identified as a key tourism site; 5. Regardless of whether the site is a key tourism site, whether experiential values of a particular site

that are important to the local tourism market are able to be provided elsewhere; 6. The site isn’t one of a limited number of opportunities to provide for an important component of the

tourism market, such as large tourism sites in urban areas; 7. Rezoning will not result in adverse impacts upon surrounding amenity and land uses; 8. Rezoning will not result in a significant loss to the tourism market (such as rezoning of a caravan

park where it may be the only one within an area of tourism interest); 9. The alternative use proposed is otherwise consistent with the LPS, in particular the planned

settlement hierarchy. Assessment of the proposal against the guidance provided by the LTPS indicates that the proposal can be supported. The site has not been identified as being a strategic tourism site. The small size of the potential tourism development allowed on the lot dictates that rezoning will not result in a substantial loss of tourism function and the site itself does not display any unique features which would provide a tourism experience not found elsewhere. The lack of any tourism development on the site for over 20 years provides some evidence that it is not required to fulfil a particular demand. The proposed Rural Residential zoning is consistent with that which applies to surrounding lots and is supported by the settlement hierarchy set out by the LNRSPP.


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Figure 3 – Excerpt from LPS which identifies the land for tourism purposes. CONSULTATION AND ADVICE The proposal was advertised for a period of 42 days with the submission period ending on 23 June 2016. A total of 9 submissions were received, two being from surrounding land owners and seven being from government agencies and service providers. All submissions were supportive of the proposal or raised no objections. DISCUSSION Rural Residential Zoning As discussed, the proposed rezoning is supported by the strategic planning framework which exists, particularly the LNRSPP. However consideration should be given to whether or not the proposed ‘Rural Residential’ zoning is a preferable zoning for the site. The existing tourism potential of the land as set out in the endorsed structure plan is limited to a dormitory and two chalets. Therefore, rezoning the land does not compromise the potential for a ‘significant tourism development’ to occur which may otherwise be contrary to Part 4.2 of the LPS as previously explained. From a town planning perspective, dormitories (often used as backpacker accommodation and referred to by LPS1 as a ‘Residential Building’) would be better located within settlements where there is close proximity to a range of complimentary attractions and services. This is reinforced by the fact that ‘Residential Buildings’ are generally permissible within urban and commercial zones but not within rural and conservation zones. The Rural Residential zoning proposed would be consistent with that which surrounds it and the proposed lot size and resultant density of development would be in keeping with that which has occurred in the locality. Additional Use The ‘Rural Pursuit’ landuse is defined by LPS1 as: (a) the rearing or agistment of animals; (b) the stabling, agistment or training of horses; (c) the growing of trees, plants, shrubs or flowers for replanting in domestic, commercial or industrial gardens; or (d) the sale of produce grown solely on the lot, but does not include agriculture - extensive or agriculture – intensive.

Subject Land


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‘Rural Pursuit’ is not a landuse which is permitted on land zoned ‘Rural Residential’. As such, it is proposed that an additional use designation be applied to the land which would allow it to be used specifically for the purposes of keeping horses on the land. In order to avoid any potential environmental damage caused by the keeping of horses, the proposed scheme provision includes a requirement for the installation of fencing to protect remnant vegetation. During the consultation period, DPaW requested that a minor wording change be made to the proposed scheme provisions which has the effect of utilising (for the purposes of determining the stocking rate) only the portion of the site which is currently cleared of vegetation. This is considered to be a reasonable request and one which will mitigate against land degradation. Structure Plan The proposed Structure Plan provides for the construction of an additional dwelling in the northern portion of the site. This area is generally cleared and can accommodate the necessary bushfire protection/hazard reduction areas without substantial clearing of vegetation. The level of development arising will be less than that currently provided for by the existing Structure Plan and its location will make it inconspicuous when viewed from abutting properties and roads. The subject land abuts the Waddingham Road reserve which abuts the rear of the property. This road is unconstructed (other than a track) and there are no immediate plans to construct the road. Access to the proposed two lots is arranged in such a way that both lots enter from a shared access onto Cowaramup Bay Road. This has preliminary support from Main Roads who prefer this arrangement to the existing crossover onto Caves Road, which will be closed. A bushfire management plan (BMP) has been prepared by a suitably qualified consultant. It finds that measures can be put in place to create a Bushfire Attack Level (BAL) of 19 for the new dwelling upon proposed Lot 102. This is at the lower end of the construction standards specified by Australian Standard 3959 reflective of the low risk profile, and is acceptable to the Shire. The submission received from DPaW during the consultation process requests that the location of the building envelope be moved in a southerly direction to provide a 100m buffer to the adjoining National Park. Currently the building envelope is approximately 50m to the National Park at its closest point. Whilst DPaW’s objective is supported, it is not possible to achieve in this instance without the fire management zones associated with the proposed dwelling falling outside of the subject lot, or into areas of more established vegetation. Given the unintended consequences of the change, it is not supported. Modifications Since the Amendment was initiated, there have been two significant omnibus amendments to LPS1, which have some implications for the subject proposal, they are: Schedule 16 is now Schedule 12 Schedule 11 is now Schedule 7 Additional Use No. 53 is no longer available with the next available No. being 58. These changes to do not alter the substance of the proposal. FINANCIAL IMPLICATIONS Nil STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 3: Managing Growth Sustainably Community Outcome: Liveable and well-designed places Strategic Response: Implement Local Planning Scheme No. 1 Service level strategy/plan: Provide planning services SUSTAINABILITY IMPLICATIONS Environmental


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The siting of additional development in a cleared area and the requirement for fencing of remnant vegetation results in the proposal having limited environmental impact. Social The structure plan appropriately locates future development away from the existing caravan park to mitigate against land use conflict. Economic The proposal provides an opportunity for the land to be used more productively. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. In pursuance of Section 75 of the Planning and Development Act 2005, amends Local Planning

Scheme No. 1, in accordance with the following modified text:

(a) Amending the Local Planning Scheme No. 1 maps to rezone Lot 112 Caves Road, Gracetown from ‘Caravan Park’ to ‘Rural Residential’;

(b) Amending Schedule 12 by removing conditions 2 and 9 at reference T13 and substituting

new condition 2 as follows:

NO. DESCRIPTION OF LAND CONDITIONS T13 Lots 111 and 112 Corner

Cowaramup Bay Road and Caves Road

1. Within lot 111 as shown on the Development Guide Plan dated 9/3/1995 and attached to the Scheme Amendment Report to Town Planning Scheme Amendment No. 79 to revoked Scheme No. 11, or subsequent Local Development Plan approved by the local government, in accordance with the process set out in Part 6 of the Deemed Provisions, the local government may permit: • 120 ordinary caravan, caravan ensuite and

camping sites; • Chalets; • Alfresco dining/house/shop complex; • Associated uses relative to the

establishment of a comprehensive caravanning and camping facility on the site such as recreation uses, landscaping and any other ancillary uses.

2. Within Lot 112 as shown on the Development

Guide Plan the local government may permit: (a) Dormitory accommodation (b) Managers Residence; (c) 2 Chalets; (d) Associated Facilities such as recreation, ablutions and buffer areas.

2. The Development Guide Plan does not apply to Lot 112.

3. Providing no buildings are to be established within 100 metres of the National park boundary.

4. A detailed fire protection plan is to be developed and implemented.

5. Development shall be of a high standard and in keeping with the character and amenity of the locality.


45

6. In approving development on either of the lots, the local government is to be satisfied that on site effluent disposal systems and the locations thereof are suitable for such purposes and will not affect the nearby creek line.

7. In considering applications for development, the local government shall have regard to the following matters: • Aesthetics; • Effluent disposal; • Drainage; • Watercourse protection; • Visual impact; • Protection of existing vegetation; • Non development zones/landscape buffers; • Soil and landform protection; • Impact on National Park; • Dieback control; • Fire control; • Contributions to road upgrading; • Water demand and supply.

8. No further subdivision of the land is permitted. 9. Access to Lot 112 shall be subject of the approval of Main Roads Western Australia. 9. No development shall be permitted within the

landscape buffer as illustrated in the Development Guide Plan unless otherwise approved by the local government on the basis of such development consisting of signage, access for vehicles and services, fire control and water supply

(c) Introducing the following specific provisions applicable to Lot 112 Caves Road,

Gracetown under reference number ‘RR34’ of Schedule 7 of the Scheme and amending the Scheme maps accordingly;

Scheme Map Ref No.

Site Description Specific Conditions and Requirements

R-R34 Lot 112 Caves Road, Gracetown

1. Subdivision shall have due regard for the approved Structure Plan prepared for the land.

2. The minimum lot size shall be 3 hectares. 3. At the time of subdivision the local government

will request that the Western Australian Planning Commission (WAPC) impose conditions requiring the subdivider to: (a) Effect the relevant provisions of the

endorsed Fire Management Plan applicable to the Structure Plan area;

(b) Implement the visual landscape buffer in accordance with the Structure Plan;

(c) Place a notification on the title of Lot 102 advising prospective purchasers that the land is located near a National Park which is subject to fire management regimes undertaken by the State government; and

(d) Create access to both lots from Cowaramup Bay Road as shown on the Structure Plan under a reciprocal rights


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access agreement. 4. Clearing of remnant vegetation shall only take

place within those areas designated as building envelopes on the Structure Plan with the following exceptions:

• Clearing to gain vehicular access to the lots;

• Clearing to comply with the requirements of the Fire Management Plan; or

• Clearing trees that are dead, diseased or dangerous.

and;

(d) Including Lot 112 Caves Road, Gracetown in Schedule 2 of the Scheme with reference to

‘A58’ by amending the Scheme maps accordingly and introducing the following provisions:

NO. DESCRIPTION OF LAND

ADDITIONAL USE CONDITIONS

A58 Lot 112 Caves Road, Gracetown

Rural Pursuit 1. The use is limited to the stabling, agistment or training of horses for private purposes.

2. The number of horses kept on the land shall be in accordance with the Department of Agriculture and Food Stocking Rate Guidelines and determined using areas currently cleared of native vegetation.

3. Fencing of the dams and remnant vegetation on the land is required prior to any horses being brought onto the land.

2. In accordance with clause 20 (2)(e) of the Deemed Provisions of LPS1, recommends to the WAPC that the Structure Plan for Lot 112 Caves Road, Gracetown dated August 2015, be approved.

ATTACHMENTS 1. Proposed Structure Plan 2. Schedule of Submissions RECOMMENDATION / COUNCIL DECISION CR KENNAUGH, CR HAYNES OM2016/149 That Council: 1. In pursuance of Section 75 of the Planning and Development Act 2005, amends Local

Planning Scheme No. 1, in accordance with the following modified text:

(a) Amending the Local Planning Scheme No. 1 maps to rezone Lot 112 Caves Road, Gracetown from ‘Caravan Park’ to ‘Rural Residential’;

(b) Amending Schedule 12 by removing conditions 2 and 9 at reference T13 and

substituting new condition 2 as follows:

NO. DESCRIPTION OF LAND CONDITIONS T13 Lots 111 and 112 Corner

Cowaramup Bay Road 1. Within lot 111 as shown on the

Development Guide Plan dated 9/3/1995


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and Caves Road and attached to the Scheme Amendment Report to Town Planning Scheme Amendment No. 79 to revoked Scheme No. 11, or subsequent Local Development Plan approved by the local government, in accordance with the process set out in Part 6 of the Deemed Provisions, the local government may permit:

• 120 ordinary caravan, caravan ensuite and camping sites;

• Chalets; • Alfresco dining/house/shop complex; • Associated uses relative to the

establishment of a comprehensive caravanning and camping facility on the site such as recreation uses, landscaping and any other ancillary uses.

2. Within Lot 112 as shown on the Development

Guide Plan the local government may permit: (a) Dormitory accommodation (b) Managers Residence; (c) 2 Chalets; (d) Associated Facilities such as recreation, ablutions and buffer areas.

2. The Development Guide Plan does not apply to Lot 112.

3. Providing no buildings are to be established within 100 metres of the National park boundary.

4. A detailed fire protection plan is to be developed and implemented.

5. Development shall be of a high standard and in keeping with the character and amenity of the locality.

6. In approving development on either of the lots, the local government is to be satisfied that on site effluent disposal systems and the locations thereof are suitable for such purposes and will not affect the nearby creek line.

7. In considering applications for development, the local government shall have regard to the following matters: • Aesthetics; • Effluent disposal; • Drainage; • Watercourse protection; • Visual impact; • Protection of existing vegetation; • Non development zones/landscape

buffers; • Soil and landform protection; • Impact on National Park; • Dieback control; • Fire control;


48

• Contributions to road upgrading; • Water demand and supply.

8. No further subdivision of the land is permitted. 9. Access to Lot 112 shall be subject of the approval of Main Roads Western Australia. 9. No development shall be permitted within the

landscape buffer as illustrated in the Development Guide Plan unless otherwise approved by the local government on the basis of such development consisting of signage, access for vehicles and services, fire control and water supply

(c) Introducing the following specific provisions applicable to Lot 112 Caves Road,

Gracetown under reference number ‘RR34’ of Schedule 7 of the Scheme and amending the Scheme maps accordingly;

Scheme Map Ref No.

Site Description Specific Conditions and Requirements

R-R34 Lot 112 Caves Road, Gracetown

1. Subdivision shall have due regard for the approved Structure Plan prepared for the land.

2. The minimum lot size shall be 3 hectares. 3. At the time of subdivision the local

government will request that the Western Australian Planning Commission (WAPC) impose conditions requiring the subdivider to: (a) Effect the relevant provisions of the

endorsed Fire Management Plan applicable to the Structure Plan area;

(b) Implement the visual landscape buffer in accordance with the Structure Plan;

(c) Place a notification on the title of Lot 102 advising prospective purchasers that the land is located near a National Park which is subject to fire management regimes undertaken by the State government; and

(d) Create access to both lots from Cowaramup Bay Road as shown on the Structure Plan under a reciprocal rights access agreement.

4. Clearing of remnant vegetation shall only take place within those areas designated as building envelopes on the Structure Plan with the following exceptions:

• Clearing to gain vehicular access to the lots;

• Clearing to comply with the requirements of the Fire Management Plan; or

• Clearing trees that are dead, diseased or dangerous.

and;


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2. Including Lot 112 Caves Road, Gracetown in Schedule 2 of the Scheme with reference to ‘A58’ by amending the Scheme maps accordingly and introducing the following provisions:

NO. DESCRIPTION

OF LAND ADDITIONAL USE CONDITIONS

A58 Lot 112 Caves Road, Gracetown

Rural Pursuit 1. The use is limited to the stabling, agistment or training of horses for private purposes.

2. The number of horses kept on the land shall be in accordance with the Department of Agriculture and Food Stocking Rate Guidelines and determined using areas currently cleared of native vegetation.

3. Fencing of the dams and remnant vegetation on the land is required prior to any horses being brought onto the land.

3. In accordance with clause 20 (2)(e) of the Deemed Provisions of LPS1, recommends to the

WAPC that the Structure Plan for Lot 112 Caves Road, Gracetown dated August 2015, be approved.

CARRIED 7/0


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11.2.4 PROPOSED DWELLING – LOT 1364 CAVES ROAD, KARRIDALE LOCATION/ADDRESS LOT 1364 CAVES ROAD, KARRIDALE APPLICANT/LANDOWNER McCleery DJ/ MJ, LP, JA & RE Quinlivan & CM McCleery FILE REFERENCE PTY/2632; P216225 REPORT AUTHOR Matt Slocomb, Senior Planning Officer AUTHORISING OFFICER Nick Logan, Acting Director Sustainable Development IN BRIEF • This report relates to an application for a Dwelling at Lot 1364 Caves Road, Karridale. • The proposal involves the construction of a dwelling in a vegetated area of the subject site. The

location has been chosen by the applicant in order to maximise the distance from a sand mine (the Boranup Limesand Pit) located at Reserve 30656.

• In order to comply with the State Planning Policy 3.7 Planning in Bushfire Prone Areas (SPP3.7), approximately 5ha of clearing around the proposed dwelling is proposed.

• The proposal is considered to be inconsistent with the provisions of SPP3.7, State Planning Policy 6.1 Leeuwin Naturaliste Ridge (LNRSPP) and the Shires Local Planning Scheme No.1.

• There are alternative locations on the site where a dwelling could be positioned which would avoid the clearing of vegetation and comply with the relevant policies.

RECOMMENDATION That Council refuses the application for a dwelling at Lot 1364 Caves Road, Karridale. LOCATION Lot 1364 (the site) is a 24.4399ha site which is largely vegetated with Karri Forrest. The site is separated into two parcels by the Wadandi Track (former railway reserve) which transects the site in a north south direction. There are a two farm buildings located to the north of the site as well an existing cleared area in the order of approximately 6.2Ha.

Mining Tenement Reserve 30656

6.2Ha Cleared Area

Proposed Dwelling Location


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TABLED ITEMS Nil BACKGROUND The history of the nearby Boranup Limesand Pit is relevant to this application and is listed as follows: • An application for a mining tenement at Reserve 30656 was approved by the Department of

Mines and Petroleum in April of 2014 (Boranup Limesand Pit). • The Boranup Limesand Pit operates under a lease and Mining Tenement. As the extraction is on

Crown land it is not an extractive industry, so does not require Shire approval but operates in accordance with conditions set out in the tenement.

• Operating hours approved as a part of the Mining Tenement are 0600-1800 seven days a week. • Notwithstanding the above, the operation is required to comply with the Environmental Protection

(Noise) Regulations 1997. The site itself is accessed by a track from Caves Road that crosses the Wadandi Track reserve to the north of the site. Two outbuildings are located adjacent to this access. The site is largely vegetated with Karri Forrest, with a cleared portion to the north. THE PROPOSAL The proposal involves the construction of a single dwelling to the south east of the lot and requires the removal of approximately 5ha of vegetation to accommodate the development. The dwelling is to be accessed from a proposed crossover and driveway located adjacent to the southern boundary of the site which connects with Caves Road. A single crossing would be required over the Wadandi Track together with the rehabilitation of any additional crossing points which may already be in existence. CONSULTATION The proposal was not publically advertised. PLANNING FRAMEWORK State Planning Policy 3.7 Planning in Bushfire Prone Areas (SPP3.7) The applicant has provided a Bushfire Attack Level (BAL) assessment with the proposal which has classified the proposed development area as BAL-FZ. Based on the BAL rating provided in the assessment, the proposal is required to satisfy the criteria provided at clause 6.7 of SPP3.7 which relates to development applications where BAL-40 or BAL-FZ applies. Specifically clause 6.7 states as follows: “Strategic planning proposals, subdivision or development applications which will result in the introduction or intensification of development or land use in an area that has or will, on completion, have an extreme bushfire hazard level and/or BAL-40 or BAL-FZ will not be supported unless: a) The proposal is considered to be minor development to which policy measure 6.7.1 applies; or b) The proposal is considered to be unavoidable development to which policy measure 6.7.2

applies”. The proposal, being the development of an existing lot would constitute minor development, and on this basis requires a submission of a bushfire management plan addressing the guidelines and additional criteria provided in clause 6.7.1. Of particular relevance is the guideline which requires: “The development, on completion is capable of achieving a BAL 29”. The Bushfire Management Plan submitted by the applicant sets out that approximately 2.5ha of clearing would be required to achieve 100m separation between the dwelling and vegetation and reduce the level of threat to a BAL 29. This is comprised of a 20m area surrounding the dwelling which would need to be completely cleared (Asset Protection Zone) and a further 80m where fuel loads would need to be significantly reduced to 15 tonnes per hectare (Hazard Separation Zone). It is noted that due to the position of the dwelling, the Hazard Separation Zone would not be completely contained on site. Based on the location of the dwelling, compliance with these requirements results


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in approximately 2.5ha of clearing on site, which is considerably less than the 5ha proposed as a part of the development application. State Planning Policy 6.1 Leeuwin Naturaliste Ridge (LNRSPP) The site is located within the Ridge Landscape Amenity zone where there is a general presumption against the clearing of remnant vegetation other than for approved building envelopes, access and services. The site does not have a pre-approved envelope as such, but given the existing outbuildings located towards the northern extent of the property, and a preference for clustered development, this area is a preferable location for the construction of a dwelling. Policy LUS3.12 states that development will comply with the protection and enhancement of the environmental integrity of ecological linkages and their landscape qualities. The LNRSPP places a firm policy presumption to limit clearing in areas surrounding the ridge. Local Planning Scheme No.1 The objectives of the Landscape Amenity zone are as follows: a) To implement the objectives and policies of the LNRSPP in particular those relating to the Ridge

Landscape Amenity Area as defined by the LNRSPP, which provides for the protection and conservation of landscape values;

b) To make provision for only very limited forms of development and only to support subdivision

having minimal impact both upon the land to be developed and nearby land within the Zone, the Leeuwin-Naturaliste-Ridge Conservation Zone or the Regional Environmental Corridors of the LNRSPP; and

c) To protect against land uses and development and to oppose subdivision proposals that are likely

to have a detrimental effect on the habitat and/or landscape qualities of the Leeuwin-Naturaliste Ridge.

It is noted that the proposal contains limited information in respect to the visual impact of the subject proposal, required under clause 4.13.3 of LPS1. The applicant has indicated that the area which is to be cleared is unlikely to impact on the visual amenity from Caves Road given that there will be a 300m vegetated buffer maintained, and the topography of the area is relatively flat. DISCUSSION Separation from mining tenement The applicants choice of house site is influenced by the presence of an operational sand mine on the opposite (western) side of Caves Road. The applicant advises that the mine reduces the amenity of the subject lot by way of noise and dust. As demonstrated in Figure 1, there is an area of approximately 2.4ha of land over 500m from the eastern extent of the sand mine which lies within the cleared area of the site. A 500m buffer is consistent with the EPA’s recommended separation distance from sand mines. It should also be noted that extraction in the mine is moving progressively west, away from the subject land. The operating sand mine would need to comply with the Environmental Protection (Noise) Regulations 1997. More effective noise mitigation measures are available to the proponent such as orientation of the dwelling, double glazing etc. Vegetation is generally regarded as being ‘porous’ to noise and therefore the applicants chosen location may fail to deliver the desired effect.


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Figure 1: Cleared area outside the 500m buffer distance. Bushfire management The proposal, through siting the development within a heavily vegetated area results in a BAL rating of FZ (flame zone) for the dwelling, as assessed by the applicants’ bushfire consultant. As discussed previously this is the highest possible level that a development can be assigned, and generally there is a presumption against approving development at this level of risk. Notwithstanding, the intent of SPP3.7 is not to not to remove the ‘dwelling entitlement’ applicable to an existing lot, and provides for the consideration of ‘minor development’ where appropriate risk management measures are put in place. In this case, the applicants’ bushfire consultant has recommended that the BAL can be reduced to BAL29, through the clearing of 5ha of vegetation. BAL 29 is an acceptable bushfire risk rating, notwithstanding that it requires some modifications to the dwelling to improve fire resistance. It is often the case that bushfire safety needs to be balanced against environmental objectives. However, in the subject case, clear options are available which maximise fire protection and minimise environmental degradation. It is recommended that support to the applicants preferred house site would not represent the ‘precautionary principle’ advocated by SPP3.7 and inconsistent with the LNRSPP and LPS1. Removal of vegetation The proposal requires the removal of 5ha of vegetation plus further clearing for access purposes. An assessment of the vegetation undertaken by Shire staff identifies that it is of a ‘C1 complex’ type. This complex is endemic to Shire (ie, does not occur at all outside the Shire) and although 34.5% of the Pre-European extent remains, only 10.9% is protected in formal reserves, with this being less than the EPA’s target of 15%. Environmental Offsets Should Council be of a mind to support the proposal, the issue of environmental offsets may become relevant. In the subject case, the applicant has not put forward any proposed revegetation to ‘offset’ the proposed clearing. The Shire does not currently have a policy position with regard to offset planting and it is generally regarded as an option of last resort. This is due to the fact that offset planting takes a long time to establish and become as ‘bio-diverse’ as the vegetation that was removed. Whilst it would be a relatively simple exercise to embed the option of offset planting into the planning framework by way of scheme provision or policy, the practicalities of implementation would require detailed investigation and resourcing. Relevant issues include the identification of suitable revegetation sites, assurance regarding ongoing protection, bonds or commitments to ensure plant survival, appropriate species selection and the like. In the subject case, Council have the option of


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approving the proposal inclusive of a condition which would require revegetation to occur on site, in accordance with an agreed management plan which would address the issues raised. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 1: Valuing the natural environment Community Outcome 1.6: Unique and iconic coastal and other landscapes Strategic Response: Plan effectively to protect coastal and other key landscapes. Service level strategy/plan: Implement the LNRSPP FINANCIAL IMPLICATIONS Nil SUSTAINABILITY IMPLICATIONS Environmental The proposal is considered to result in the avoidable removal of a considerable area of vegetation which is of high conservation value. In this respect the proposal is not considered to result in a satisfactory environmental outcome. Social A healthy environment is essential to support a healthy community. Economic Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council refuses to grant planning approval for a Single Dwelling on Lot 1364 Caves Road, Karridale for the following reasons: 1. The proposal is inconsistent with clause 6.7.1(c) of State Planning Policy 3.7 in that the siting of

the buildings within the boundary of the development site has not been optimised to reduce the impact of bushfire and is therefore inconsistent with the ‘precautionary principle’;

2. The proposal is inconsistent with the policy provisions of the Leeuwin Naturaliste Ridge State Planning Policy (6.1) in particular the provisions relating to the Ridge Landscape Amenity Area, by way of the substantial vegetation removal proposed;

3. The proposal is inconsistent with Local Planning Scheme No.1, in particular the objectives of the Leeuwin Naturaliste Ridge Landscape Amenity zone which seek to avoid any detrimental effect on the habitat and landscape qualities of the Leeuwin-Naturaliste Ridge.

4. There are several alternative locations upon which a dwelling could be constructed on the

subject lot which would increase the level of protection to residents from threat of bushfire and minimise environmental impact.

ATTACHMENTS 1. Development Plans 2. Letter submitted by the Landowner in support of the proposal. RECOMMENDATION / COUNCIL DECISION CR TOWNSHEND, CR EARL OM2016/150 That Council refuses to grant planning approval for a Single Dwelling on Lot 1364 Caves Road, Karridale for the following reasons: 1. The proposal is inconsistent with clause 6.7.1(c) of State Planning Policy 3.7 in that the

siting of the buildings within the boundary of the development site has not been optimised


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to reduce the impact of bushfire and is therefore inconsistent with the ‘precautionary principle’;

2. The proposal is inconsistent with the policy provisions of the Leeuwin Naturaliste Ridge State Planning Policy (6.1) in particular the provisions relating to the Ridge Landscape Amenity Area, by way of the substantial vegetation removal proposed;

3. The proposal is inconsistent with Local Planning Scheme No.1, in particular the objectives of the Leeuwin Naturaliste Ridge Landscape Amenity zone which seek to avoid any detrimental effect on the habitat and landscape qualities of the Leeuwin-Naturaliste Ridge.

4. There are several alternative locations upon which a dwelling could be constructed on the subject lot which would increase the level of protection to residents from threat of bushfire and minimise environmental impact.

CARRIED 6/1 CR HASTIE VOTED AGAINST


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11.3.

Infrastructure Services


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11.3.1 ALEXANDRA BRIDGE AND EAST AUGUSTA RESERVE ACTION PLANS LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE COR/183 REPORT AUTHOR Merryn Delaney, Senior Environment Landcare Officer AUTHORISING OFFICER Johan Louw, Director Infrastructure IN BRIEF • The Shire of Augusta Margaret River commissioned the preparation of four Reserve Action Plans

for reserves located within the Alexandra Bridge and East Augusta locality. • The actions and recommendations are intended to provide a strategic and prioritised approach to

reserve management in order to ensure the most efficient and effective investment of limited resources in reserves.

RECOMMENDATION That Council releases the following Draft Reserve Action Plans for public comment for a period of 21 days: • Reserves 23973 and 38289, Alexandra Bridge Hall Reserve Action Plan; • Reserves 23480 and 38822, Alexandra Bridge Reserve Action Plan; • Reserves 35778, 45249 and 35745, East Augusta Foreshore Reserve Action Plan; and • Reserves 39434 and 25211, East Augusta and Swan Lake Reserve Action Plan.


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LOCATION PLAN

Reserves 23480 and 38822

Reserves 23973 and 38289


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Reserves 25211, 39434, 35778, 45249, 35745

TABLED ITEMS Nil BACKGROUND Each year the Shire prepares management plans for reserves in its ownership and/or control. The purpose of the plans is to determine management requirements for the reserves and to guide future allocation of limited funds and resources. Reserves are selected based on their environmental values (i.e. biodiversity) and social values (i.e. recreational use). In 2015-16 it was resolved to prepare four Reserve Action Plans for reserves in the Alexandra Bridge and East Augusta localities. These larger and somewhat isolated reserves contain significant biological values and scored very highly in the Shire of Augusta Margaret River Reserve Assessment and Prioritisation report (2006), with the Swan Lakes reserve 25211 receiving the highest score in the Shire of 9/10. A list of the reserves included in the Reserve Action Plans for each of the four localities is shown below. Reserve Location Area (ha) Vesting

38822 Alexandra Bridge 3 Recreation and picnic grounds

23480 Alexandra Bridge 99 Camping and public utility

23973 Alexandra Bridge 47 Recreation, hall site and emergency service site

38289 Alexandra Bridge 3.65 Rubbish disposal site

25211 East Augusta 132.3 Recreation

39434 East Augusta 22.3 Quarry (limestone), rubbish disposal and park

35778 East Augusta 0.58 Public recreation


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45249 East Augusta 1.13 Recreation and foreshore management

35745 East Augusta 1.4 Public recreation

The scope of the plans includes the protection and enhancement of the following values:

• Biodiversity; • Recreation; • Amenity; and • Cultural

The consultant was required to undertake a brief assessment of each of the reserves, noting management issues and making recommendations relating, but not limited to the following:

• Uncontrolled use and increasing access and activities; • Appropriate recreational activities; • Weed invasion; • Garden waste and rubbish dumping; • Erosion and river bank instability and access issues; • Obvious dieback fronts; • Trail bike activity; and • Firewood collection

Each Reserve Action Plan includes:

• A basic staged and costed works program for implementation; • GIS mapping to indicate threats and required management actions; and • Photo monitoring points to record the current threats to the reserve and monitor change.

The consultant was required to engage with the local bushfire brigades to record the historical burn information and consult with identified community groups within the localities. These reserves contain largely intact areas of bushland with limited disturbance. Therefore it is considered important and good value for money to address the minor weed invasions and disturbances immediately. Early intervention and action is considered the most effective means of weed control and will help protect the highly valuable biodiversity in these areas. CONSULTATION AND ADVICE Consultation was undertaken during preparation of the draft plan including meetings with representatives of the Alexandra Bridge and East Augusta volunteer fire brigades, the East Augusta Citizens Association and Alexandra Bridge Hall Committee plus input provided from community members with an interest and expertise in the flora and fauna identified within the reserve areas. Shire representatives were involved in overseeing the preparation of the Reserve Action Plans including representatives from Parks and Gardens, Fire and Emergency Services, Asset Services and Environmental Services. It is intended that the Draft Reserve Action Plans be advertised for a period of 21 days with direct contact being made to members of the Alexandra Bridge and East Augusta Fire Brigades, East Augusta Citizens Association, Alexandra Bridge Hall Committee, Lower Blackwood LCDC and other individuals within the community known to have an interest in these reserves. DISCUSSION / OFFICER COMMENTS The preparation and implementation of action plans for high quality bushland demonstrates the Shires commitment to the protection of biodiversity. These reserves have been identified as containing some of the most intact and best quality bushland in our Shire. The actions are intended to provide a strategic and prioritised approach to the reserve management in order to ensure the most efficient and effective investment of limited resources. Addressing minor weed issues to protect bushland in good condition is far less expensive than the rehabilitation of degraded areas.


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The Reserve Action Plans help the Shire to understand the current issues/threats to these reserves and make it more efficient and effective directing limited funds to managing the priority issues. The Reserve Action Plans also make the community aware that the Shire cares for the bushland and is aware of the types of activities that are taking place and create discussion regarding the management of these reserves. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS A broad range of legislation, policy, consultations and guidelines apply to the reserves and the proposed management actions. The following acts, regulations and planning policies have been considered in the preparation of the Reserve Action Plans:

• Aboriginal Heritage Regulations 1974; • Bushfires Act (1954) WA; • Environmental Protection and Biodiversity Conservation Act (1990); • Western Australian Aboriginal Heritage Act 1972; and • Wildlife Conservation Act (1950) WA.

STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 1: Valuing the natural environment Community Outcome 1.4: Ecology and biodiversity protection Strategic Response 1.4.1.1 Prepare Management Plans for major Shire reserves. PLANNING FRAMEWORK The following planning policies have been considered in the preparation of the Reserve Action Plans:

• Shire of Augusta Margaret River Local Planning Strategy (2011); • Shire of Augusta Margaret River Local Planning Scheme No.1 (2011); • State Planning Policy 3.4: Natural Hazards and Disasters; and • State Planning Policy 6.1: Leeuwin-Naturalise Ridge.

FINANCIAL IMPLICATIONS The proposed actions and priorities contained in the Reserve Action Plans are aspirational and will be subject to future budget allocations. The Shire allocates funding annually to management of all Shire reserves (LCA23). It is proposed that recommended works be progressively implemented over time within the reserve management budget. An allocation of $15,000 has been identified in the draft 2016-17 budget for reserve management. Because of the high ecological values of these bushlands the Shire may be able to attract additional external grant funding to support work in these areas particularly where management plans such as these are in place to guide works. The aim of the management plans is to ensure limited resources are used in the most effective way. Therefore, it is also intended that these programs engage the local community to be involved with the ongoing maintenance and care of the community reserves. Volunteer commitment to reserve management can also enable the Shire to attract external funding as an in-kind source of funding. SUSTAINABILITY IMPLICATIONS Environmental The Reserve Action Plans provide for improved management of reserves in the Alexandra and East Augusta localities, with a better understanding of the current condition of the reserves and prioritised actions for implementation. These plans will help to protect areas of high quality bushland, important recreation areas and high levels of biodiversity. Social The reserves are important to the Alexandra Bridge and East Augusta communities for their recreation, ecological and amenity values. The reserve areas are important as an outlet for people to exercise and enjoy the bushland in a managed way and are a historical representation of our local biodiversity.


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Economic By implementing strategic works early we can protect the important environmental values that currently exist within the reserves. This has a greater financial benefit then trying to undo environmental damage and undertake the more expensive follow up management. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council releases the following Draft Reserve Action Plans for public comment for a period of 21 days: • Reserves 23973 and 38289, Alexandra Bridge Hall Reserve Action Plan; • Reserves 23480 and 38822, Alexandra Bridge Reserve Action Plan; • Reserves 35778, 45249 and 35745, East Augusta Foreshore Reserve Action Plan; and • Reserves 39434 and 25211, East Augusta and Swan Lake Reserve Action Plan. ATTACHMENTS 1. Reserves 23973 and 38289, Alexandra Bridge Hall Reserve Action Plan 2. Reserves 23480 and 38822, Alexandra Bridge Reserve Action Plan 3. Reserves 35778, 45249 and 35745, East Augusta Foreshore Reserve Action Plan 4. Reserves 39434 and 25211, East Augusta and Swan Lake Reserve Action Plan RECOMMENDATION / COUNCIL DECISION CR HASTIE, CR KENNAUGH OM2016/151 That Council releases the following Draft Reserve Action Plans for public comment for a period of 21 days: • Reserves 23973 and 38289, Alexandra Bridge Hall Reserve Action Plan; • Reserves 23480 and 38822, Alexandra Bridge Reserve Action Plan; • Reserves 35778, 45249 and 35745, East Augusta Foreshore Reserve Action Plan; and • Reserves 39434 and 25211, East Augusta and Swan Lake Reserve Action Plan.

CARRIED 7/0


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11.3.2 RFT 12-16 TREE MANAGEMENT SERVICES LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE COR/195 COR/196 REPORT AUTHOR Craig Young, Manager of Works AUTHORISING OFFICER Johan Louw, Director Infrastructure Services IN BRIEF • Council has advertised tenders for tree management services for a three year period with an

option to extend for a further two years. • Tenders have been called and evaluated for tree management services, including pruning,

grinding of stumps, chipping, removal of material created by works and associated traffic management.

RECOMMENDATION That Council awards tender No. 12/16 Tree Management Services to Arbor Guy Certified Tree Specialist. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Council’s Infrastructure Services division prepares tenders for Tree Services when the value of those items may exceed $150,000 (ex GST) over the duration of the tender term. Tenders are required to be called in accordance with Section 3.57 of the Local Government Act. CONSULTATION AND ADVICE Internal Consultation Consultation was undertaken with the supervisors involved in the use of the services and the Shire Project and Procurement Officer. External Consultation Tenders were advertised both locally and in The West Australian as per the tender regulations and on the Shire’s website. DISCUSSION / OFFICER COMMENTS An evaluation report for tenders has been undertaken and a copy is attached as Confidential Attachment 1. Tenders were received from the following:-

• Arbor Guy Certified Tree Specialist; and • South West Tree Services.

Tenders have been assessed by an evaluation panel against criteria of price, experience, skills and experience of key personnel and compliance with OHS requirements. The weighting applied to those criteria were as follows

• Price – 40%


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• Relevant Experience – 20% • Key Personnel Skills and Experience – 10% • Tenderers Resources – 10% • Demonstrated Understanding – 20%

Reference checking was not required in this instance as the preferred contractor has worked extensively with the Shire over the last 2 years. Based on the tender assessment, it is recommended that the tender be awarded to Arbor Guy Certified Tree Specialist It should be noted that Council maintains the right to approach qualified contractors for similar works throughout the tender period if performance, skill base or availability become an issue (Part 2.4.12 of RFT 12/16). STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Section 3.57 of the Local Government Act 1995. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 1: Valuing the Natural Environment Community Outcome: Quality parks, gardens and green spaces PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Council annually budgets for the external supply of goods and services. Tenders are called to ensure Council gets value for money and meets its obligations under section 3.57 of the Local Government Act. Budgets are included in the capital and operational areas for Construction, Maintenance and Parks and Gardens. The proposal to award contracts will determine rates for tree services for estimated quantities. Actual expenditures will be dependent on the approved Council budget, and the ongoing programmed and reactive needs and damage from storm events SUSTAINABILITY IMPLICATIONS • Environmental

An experienced operator will not damage trees or environmentally sensitive areas. • Social

Provides equality to members of the public in being able to offer their services to the Council.

• Economic Value for money, goods and services

VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council awards tender No. 12/16 Tree Management Services to Arbor Guy Certified Tree Specialist. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Confidential Attachment 1 – 12/16 Evaluation Report


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RECOMMENDATION / COUNCIL DECISION CR KENNAUGH, CR LANE OM2016/152 That Council awards tender No. 12/16 Tree Management Services to Arbor Guy Certified Tree Specialist.

CARRIED 7/0


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11.3.3 REVIEW OF INFRASTRUCTURE POLICIES LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE ENG/75 REPORT AUTHOR Johan Louw, Director Infrastructure AUTHORISING OFFICER Gary Evershed, Chief Executive Officer IN BRIEF • The majority of Infrastructure Services policies are due for review by November 2016. • The Director Infrastructure has reviewed the policies which are attached for Council’s

consideration for the purpose of public consultation. RECOMMENDATION That Council: 1. Adopts the suite of Infrastructure Services policies as presented in the attachments to the agenda

for the purpose of public consultation for a 28 day period. 2. Should no major amendments to the policy arise as a result of submissions during the public

consultation process as determined by the CEO that the policies be adopted. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Determining the local government’s policies is one of four main roles for Council listed under Section 2.7 of the Local Government Act 1995. Policies are an important component of governance by which responsibilities to stakeholders are identified and effective systems of leadership, authority, accountability and control are implemented. The following is a list of current policies known as Infrastructure Services policies:

Ref Title Date adopted ISP1 Asset Management Policy 13 November 2013 ISP2 Unconstructed Road Reserves 13 November 2013 ISP 3 Naming and Renaming of Roads, Reserves and Localities 13 November 2013 ISP 4 Developments 13 November 2013 ISP 5 Works on Public Land 13 November 2013 ISP 6 Removal of Obstructions from Public Land 13 November 2013 ISP 7 Extra Mass Vehicles 13 November 2013 ISP 8 Signage on Public Roads 13 November 2013 ISP 9 Roads and Infrastructure 13 November 2013 ISP 10 Replacement of Plan and Vehicle Fleet 13 November 2013 ISP 11 Aerodrome Use 13 November 2013 ISP 12 Bushfire Risk 13 November 2013 ISP 13 Dangerous Trees 13 November 2013 ISP 14 Townsite Street Trees 13 November 2013 ISP 15 Wadandi Track 24 June 2015 ISP 16 Management of Vegetation on Shire Reserves 26 November 2014


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CONSULTATION AND ADVICE Upon adoption, Council advertises draft policies to the community for further feedback prior to final adoption by Council. The public consultation period will be 21 days. DISCUSSION / OFFICER COMMENTS The following policy framework was adopted by Council as it focuses on building a sustainable community and integrates with the Shire’s Strategic Plan and proposed annual reporting format rather than the current policy framework which focuses on organisational silos of business unit services and activities. Governance and Business Excellence Policies are located under the Business Excellence Framework section of the Strategic Planning and Policy Framework. Sustainable Augusta-Margaret River Shire (Overarching Sustainability Policy) Managing growth sustainably

Valuing the natural environment

Welcoming and cohesive communities

Vibrant and diverse economy

Effective leadership and governance

Planning Policies Waste Management

Cultural Development Policies

Economic Development Policies

Governance Policies

Building Policies Biodiversity Protection

Recreation Policies

Tourism Strategy Business Excellence

Asset Management Policies

Water Conservation and Quality

Emergency Management Policies

Events Management Policies

Code of Conduct

Infrastructure Management Policies

Carbon Pollution Reduction Policies

Community Development Policies

Governance Manual

Parks and Gardens Policies

Customer Service Charter

The revised policies with the exception of planning policies are structured under three headings as follows: Objectives Clear statement of Council’s position and the outcomes it hopes to achieve Strategy Statements as to how the objectives are to be achieved and guidelines to

direct the Town’s activities and to provide the parameters in which staff will operate

Application How the policy will be applied and measured and a statement of the accountabilities and responsibilities for the policy implementation

Policies are to be as clear and concise as possible and clearly differentiate high level Council policies and do not include day to day operational procedures and instructions. The separation of powers between the role of Council as policy maker and the role of the CEO and staff in implementing the policies is to be reinforced in the process. The suite of Infrastructure Services Policies will enable the Shire’s functions to be carried out and services and facilities to be provided to the community in an ethical, innovative and responsive manner. The following Infrastructure Services policies are presented to Council for the purposes of public consultation: Asset Management Policies

ISP 1 Asset Management ISP 2 Unconstructed Road Reserves ISP 3 Naming and Renaming of Roads, Parks, Reserves and Localities ISP 4 Developments ISP 5 Works on Public Land


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ISP 6 Removal of Obstructions from Public Land ISP 7 Extra Mass Vehicles ISP 8 Signage on Public Roads

Infrastructure Policies

ISP 9 Roads and Infrastructure ISP 10 Replacement of Plant and Vehicle Fleet ISP 11 Aerodrome Use

Parks and Gardens Policies ISP 12 Bushfire Risk ISP 13 Dangerous Trees ISP 14 Townsite Street Trees

STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS The Local Government Act 1995 specifies the key roles of the Council. Under Section 2.7 of the Local Government Act 1995 Council has four main roles: 1. Direct and control the Local Government's affairs; 2. Be responsible for the local government’s functions; 3. Oversee the allocation of the local government’s finances and resources, and 4. Determine the local government’s policies. Policy determination is a key role of the Council. Policies are guidelines to provide a consistent approach and framework for Council decision making and for the CEO and staff to action Council’s requests. Policies are not legislation and there may be circumstances where a position needs to be taken which is at variance with an existing policy. In these circumstances Council should make a decision which departs from an existing policy. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 5: Effective Leadership and Governance Community Outcome 6: A culture of innovation, quality and continuous improvement Strategic Response: Review and update procedures for Infrastructure Services Directorate. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Policies have varying degrees of financial implications but no additional funding is sought for the production of a new suite of governance policies. SUSTAINABILITY IMPLICATIONS The policies support good governance which aids sustainability. VOTING REQUIREMENTS Absolute Majority RECOMMENDATION That Council: 1. Adopts the suite of Infrastructure Services policies as presented in the attachments to the agenda

for the purpose of public consultation for a 28 day period. 2. Should no major amendments to the policy arise as a result of submissions during the public

consultation process as determined by the CEO that the policies be adopted. ADVICE TO APPLICANT / PROPONENT Nil


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ATTACHMENTS 1. Infrastructure Services Policies RECOMMENDATION / COUNCIL DECISION CR HAYNES, CR LANE OM2016/153 That Council: 1. Adopts the suite of Infrastructure Services policies as presented in the attachments to the

agenda for the purpose of public consultation for a 28 day period. 2. Should no major amendments to the policy arise as a result of submissions during the

public consultation process as determined by the CEO that the policies be adopted. CARRIED BY ABSOLUTE MAJORITY 7/0


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11.4. Corporate And Community

Services


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11.4.1 LIST OF PAYMENTS FOR JUNE 2016 LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/42 REPORT AUTHOR Jaye Lanzini, Finance Officer Accounts Payable AUTHORISING OFFICER Annie Riordan, Director Corporate Community Services IN BRIEF It is a requirement of the Local Government (Financial Management) Regulations 1996 that payments made under delegated authority by the CEO are reported to Council on a monthly basis showing details of each account paid since the last such list was prepared. RECOMMENDATION That the Council notes the June 2016 List of Payments for $8,204,329.10 as certified correct by the Director Corporate and Community Services. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Where Council has delegated authority to the CEO to make payments from the Shire’s bank accounts then under Local Government (Financial Management) Regulations 1996, Regulation 13 (1) a list of such payments is to be prepared each month for noting by Council. CONSULTATION AND ADVICE External Consultation Nil Internal Consultation Nil DISCUSSION / OFFICER COMMENTS Table 1 below provides a summary of the payments made and Table 2 makes comparison between payments for the 2014-15 and 2015-16 financial years.

The List of Payments attachment provides further details as required under Regulation 13 (1). These details are as follows.

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

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


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TABLE 1 – SUMMARY OF PAYMENTS MADE IN THE MONTH

MODE OF PAYMENT CHEQUE / EFT NUMBERS SUB-TOTAL AMOUNT

Cheques (includes reimbursement of credit cards) 42048-42049 $38,302.06 $38,302.06

EFT 54093-54548 $7,078,064.84 Direct Debits $1,087,962.20 $8,166,027.04

TOTAL $8,204,329.10

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

2014-15 2014-15 2014-15 PAYMENTS 2015-16 2015-16 2015-16 PAYMENTS

JULY $27,627.52 $3,382,878.99 $3,410,506.51 $3,410,506.51 18,574.29 3,108,059.98 3,126,634.27 3,126,634.27 AUGUST $24,371.61 $1,881,379.90 $1,905,751.51 $5,316,258.02 18,321.82 1,980,022.38 1,998,344.20 5,124,978.47

SEPTEMBER $29,105.88 $10,523,000.04 $10,552,105.92 $15,868,363.94 16,151.74 9,861,625.31 9,877,777.05 15,002,755.52 OCTOBER $16,883.83 $3,009,076.16 $3,025,959.99 $18,894,323.93 19,349.63 5,058,215.63 5,077,565.26 20,080,320.78

NOVEMBER $37,159.65 $2,423,568.91 $2,460,728.56 $21,355,052.49 22,306.58 2,617,585.05 2,639,891.63 22,720,212.41 DECEMBER $28,403.96 $3,158,418.92 $3,186,822.88 $24,541,875.37 38,300.43 3,340,304.12 3,378,604.55 26,098,816.96 JANUARY $27,233.40 $2,058,456.34 $2,085,689.74 $26,627,565.11 24,247.57 4,401,603.21 4,425,850.78 30,524,667.74

FEBRUARY $22,820.69 $2,080,353.62 $2,103,174.31 $28,730,739.42 17,988.50 2,292,007.08 2,309,995.58 32,834,663.32 MARCH $19,847.73 $5,571,238.52 $5,591,086.25 $34,321,825.67 31,991.91 6,362,556.19 6,394,548.10 39,229,211.42 APRIL $27,247.06 $2,340,113.91 $2,367,360.97 $36,689,186.64 15,738.88 2,481,350.30 2,497,089.18 41,726,300.60 MAY $43.137.58 $2,631,154.74 $2,674,292.32 $39,363,478.96 26,446.62 2,806,629.63 2,833,076.25 44,559,376.85 JUNE $59,529.13 $3,001,795.20 $3,061,324.33 $42,424,803.29 38,302.06 8,166,027.04 8,204,329.10 52,763,705.95

$363,368.04 $42,061,435.25 $42,424,803.29 287,720.03 52,475,985.92 52,763,705.95


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STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Local Government Act 1995, s 6.10, and Local Government (Financial Management) Regulations 1996, r 13 STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 5: Effective leadership and governance Community Outcome 2: Effective strategy, planning and asset management Strategic Response: Ensure the Shire’s financial performance is well managed and leads to a strong financial position Service level strategy/plan: Continue to monitor and analyse monthly, year to date and annual financial performance. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Nil SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil Economic Nil VOTING REQUIREMENTS Simply Majority RECOMMENDATION That the Council notes the June 2016 List of Payments for $8,204,329.10 as certified correct by the Director Corporate and Community Services. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. List of Payments for June 2016 RECOMMENDATION / COUNCIL DESISION CR KENNAUGH, CR HASTIE OM2016/154 That the Council notes the June 2016 List of Payments for $8,204,329.10 as certified correct by the Director Corporate and Community Services.

CARRIED 7/0


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11.4.2 ADOPTION OF 2016-17 DIFFERENTIAL RATES, MINIMUM PAYMENTS AND RATE CONCESSIONS

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

• Council approval is required to adopt Differential Rating Categories, Differential Rates in the Dollar and associated Minimum Payments together with the proposed Service and Waste Charges for the year ending 30 June 2017.

• Rate concessions for specific properties are also to be considered for approval. RECOMMENDATION That Council:

1. Differential Rates Adopts the following differential rating categories, rates in the dollar and minimum payments for the 2016-17 financial year.

Rate Category GRV Rate in the Dollar

(In cents) Minimum Payment

$ Residential 9.8932 1,227 Residential Vacant 18.9520 1,227 Rural Residential 9.4770 1,494 Rural Residential Vacant 18.4473 1,494 Commercial, Industrial, Tourism 11.7183 1,318 Rate Category UV Rate in the Dollar


$ UV Rural 0.4544 1,377 UV1 0.5680 1,377 UV2 0.6816 1,377 UV3 0.7952 1,377 UV Strata Title Vineyard 0.4544 809 UV Conservation 0.4366 1,325

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

3. Waste Facilities Maintenance Rate

Levy the following rates in the dollar and minimum payments for the Waste Facilities Maintenance Rate on all rateable properties for the 2016-17 financial year.

Differential Rating Category Rate in the Dollar

(in cents) Minimum Payment

$


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GRV Gross Rental Value 0.0022 $200.00 UV Unimproved Value 0.0002 $200.00

4. Rate Concessions

Approves a full concession of property rates levied for 2016-17 for the following properties as these properties are the location of satellite facilities providing television broadcasting services for the surrounding residential subdivision and the property rates are on-charged by the landowner to the community group who administer this service: Assessment Address Landowner Community

Group Amount of Rate Concession

A11780 123 Poplar Avenue, Riverslea

Greendene Development Corporation

Riverslea Community Group

$1,227

A11746 Lot 900 Leschenaultia Ave, Brookfield

Brookfield Estate Pty Ltd

Brookfield Connect

$1,227

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Differential Rates and Minimum Payments for the 2016-17 financial year were considered by Council at the Ordinary Council Meeting on 11 May 2016 (refer OM2016/83) and subsequently advertised for public comment for four consecutive weeks from Friday 20 May 2016 to Friday 10 June 2016 in the Augusta Margaret River Times. One submission was received and was considered by Council at the Ordinary Council Meeting on 22 June 2016 (refer OM2016/124). An application to the Department of Local Government and Communities (DLGC) was submitted on 27 June 2016 requesting the Minister’s approval to levy minimum payments for the differential rating category of Residential Vacant as the number of properties to be levied the minimum payment exceeded 50%. Approval from the Minister for Local Government, under delegation, was received by e-mail on 4 July 2016 with the formal letter of approval received on 11 July 2016. CONSULTATION AND ADVICE External Consultation Department of Local Government and Communities (DLGC) The Department’s Rating Policies for Differential Rates, Minimum Payments and Giving Notice were referred to ensure compliance with Sections 6.35(5) and 6.33(3) of the Local Government Act 1996 (LG Act). The Department’s application form for approval of minimum payments was completed with all required attachments and submitted to the Department on 27 June 2016. Ratepayers and Electors The proposed differential rates and minimum payments were advertised for a minimum period of 21 days to allow ratepayers and electors to make submissions to Council. Public submissions closed on Monday 13 June 2016, one submission was received and was considered at the Ordinary Council Meeting on 22 June 2016. Internal Consultation Nil


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DISCUSSION / OFFICER COMMENTS The community was invited to make a submission on the proposed Differential Rates and Minimum Payments, through advertisements placed in the local newspapers. At the Ordinary Meeting of Council on 22 June 2016, Council noted the one submission received during the advertising period for the proposed 2016-17 differential rates. Ministerial Approval The Application Form – Minimum Payments (s. 6.35) was forwarded to the Minister for Local Government on Monday 27 June 2016 requesting approval to impose a GRV Residential Vacant minimum payment of $1,227 affecting 774 properties when the differential general rate of $0.189520 is to be imposed on 318 properties. The number of properties affected is more than 50% of the total properties in this category. Included with the application form were a number of required attachments including:

• The Statement of Objects and Reasons; • Council minutes reflecting that Council had reviewed and considered budget efficiency

measures; • Council’s resolution to adopt the Statement of Objects and Reasons; • Copy of submissions received; • Copy of the response to submissions; • Council’s resolution relating to the consideration of submissions; and • Council’s resolution to make an application to the Minister.

Some of the information requested was not directly supported by a Council resolution, however the DLGC advised the information contained in the body of the agenda item should be sufficient and that Council resolutions will be required next year. DLGC Response The Shire received the Minister’s response, under delegation from the DLGC, on 4 July 2016. The response was that “under delegated authority from the Minister for Local Government and in accordance with section 6.35(5) of the Local Government Act 1995, I have approved the minimum payment as proposed in the in the Shire’s application for the below category:

Category of Rating Minimum Payment GRV Residential Vacant $1,227

The approval is valid for the 2016/17 financial year.” Rate Concessions Brookfield Connect and the Riverslea Community Group levy and collect fees from Riverslea and Brookfield residents for the maintenance of the cable television facilities and equipment in these subdivisions. This cost includes the property rates for the lots owned by the developers and on which the satellite facilities are located. Representatives of these community groups have advocated for some financial assistance and approving a full rate concession for the properties is considered to be an effective method of providing some financial assistance. The two properties are classified as residential and due to their low gross rental value are both rated the minimum payment which for 2016-17 is $1,227. The amount of rate income foregone would total $2,454 should a rate concession be approved. All other fees and charges for the properties such as the emergency services levy will continue to be charged to the property owner. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Part VI of the LG Act deals with rates and service charges.

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

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

categories.


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

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

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

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

Section 66 of the Waste Avoidance and Resource Recovery Act 2007 (WARR Act) states a local government may impose on rateable land within its district, and cause to be collected, an annual rate for the purpose of providing for the proper performance of all or any of the waste services it provides. Furthermore it states the provisions of the LG Act relating to the making, payment and recovery of general rates apply with respect to the raising of rates referred to in this section. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 5: Effective Leadership and Governance. Community Outcome 2: Effective strategy, planning and asset management. Strategic Response: Ensure the Shire’s financial performance is well managed and leads to a strong financial position. Service level strategy/plan: Bill property rates on adoption of the Shire’s annual budget. Policy FI.15 Shire Rating was endorsed by Council at the Ordinary Meeting of 28 May 2014 (OM20140528) outlines the administrative processes in applying differential rates. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS The rates imposed will result in revenue of approximately $19.282 million being raised at rates billing. The approval of rate concessions would result in $2,454 of rate revenue being foregone. SUSTAINABILITY IMPLICATIONS Environmental The 2016-17 annual budget, takes into consideration the Shire’s strategic values to ensure an integrated approach to protecting the natural environment that safeguards biodiversity and provides a sustainable environment for future generations. Social The 2016-17 annual budget, takes into consideration the Shire’s strategic values to enhance the quality of community life in the Shire characterised by vibrant participation, cohesiveness, increased social capital and recognition of the need for social justice and community safety. Economic The 2016-17 annual budget, takes into consideration the Shire’s strategic values to foster economic prosperity in the Shire and Region. VOTING REQUIREMENTS Absolute Majority RECOMMENDATION That Council:



78











$ GRV Gross Rental Value 0.0022 $200.00 UV Unimproved Value 0.0002 $200.00

4. Rate Concessions






$1,227



Brookfield Connect

$1,227

ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS Nil


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RECOMMENDATION / COUNCIL DECISION CR HASTIE, CR SMART OM2016/155 That Council:












$ GRV Gross Rental Value 0.0022 $200.00 UV Unimproved Value 0.0002 $200.00

4. Rate Concessions






$1,227



Brookfield Connect

$1,227


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CARRIED BT ABSOLUTE MAJORITY 7/0


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11.4.3 ADOPTION OF 2016-17 EARLY PAYMENT INCENTIVES, PAYMENT OPTIONS, LATE PAYMENT INTEREST AND INSTALMENT CHARGES

LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/11 REPORT AUTHOR Andrew Ross, Manager Corporate Services AUTHORISING OFFICER Annie Riordan, Director Corporate and Community Services IN BRIEF • The Shire provides early payment incentive prizes together with donated prizes to property

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

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

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

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

RECOMMENDATION That Council adopts:

1. Early Payment Incentives

The following early payment incentive prizes for 2016-17. All ratepayers who pay option 1 (in full) or the first instalment on option 2 (four instalments) by the due date will be entered into the prize draw.

The following prizes have been provided by or donated to the Shire: 1st $1,000 Shire payment towards annual rates 2nd Accommodation – A weekend stay for 2 people at the Perth Ambassador Hotel including 2 nights and breakfast 3rd 2 x 6 month Gold Memberships to the Margaret River or Augusta Recreation

Centre 4th Accommodation – 5 nights stay at Turner or Flinders Bay Caravan Park 5th $500 Shire payment towards annual rates 6th $250 Shire payment towards annual rates 7th $250 Shire payment towards annual rates

2. Payment Options

The following payment options for the payment of rates, service and waste charges:

• Option 1 Payment in full by 16 September 2016 (within 35 days of the issue date of the annual rates notice).

• Option 2

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


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o First instalment payable by 16 September 2016 (within 35 days of the date of issue of the annual rate notice).

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

o Second instalment by 18 November 2016 (63 days after due date of the

first instalment); o Third instalment by 20 January 2017 (63 days after due date of second

instalment); o Fourth instalment by 24 March 2017 (63 days after due date of third

instalment).

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

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

Interest will be applied at the maximum rate of 11% per annum Reg. 70 Local Government Financial Management Regulations 1996 (LGFMR), calculated on a daily basis and charged on the outstanding balance and calculated for the number of days overdue. Excluded from penalty interest are registered property owners under the Rates and Charges Rebates and Deferment Act 1992 (RD Act 1992) Pensioners and Seniors Rebate schemes.

4. Instalment Administration Fee and Interest Charge Imposes the following instalment administration fees and interest charges:

• Administration Fee

A fee of $7.50 on each of instalments two, three and four.

• Interest Charge The maximum rate of interest is 5.5% (Reg. 68 LGFMR) on instalment option 2.

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

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

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND When adopting the differential rates and minimum payments, the Shire is required to meet statutory obligations under the Local Government Act 1995 (LG Act) and the LGFMR when providing for early incentive prizes, payments options, imposing penalty interest and the instalment administration fee and interest charge.


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CONSULTATION AND ADVICE External Consultation Perth Ambassador Hotel Internal Consultation Recreation Operations Manager Turner Caravan Park Manager Marketing and Events Officer DISCUSSION / OFFICER COMMENTS Early Payment Incentives The early incentive prizes are an initiative for property owners to pay their rates by the required due date. Every year the Shire promotes the opportunity to participate in this initiative to community organisations and local businesses. In acknowledgement of support for donation of prizes, the Shire will include a logo and promotional wording in the Rate Information brochure which will accompany the annual Rate Notice. The Shire has received support from the Perth Ambassador Hotel. The Shire will again promote the Flinders Bay and Turner Caravan Parks, Margaret River Recreation Centre and Augusta Recreation Centre as well as providing a variety of cash prizes to its ratepayers. Payment Options The payment options offered by the Shire take into consideration the different circumstances of ratepayers and the following options are offered:

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

request. For ratepayers who request a special arrangement of weekly, fortnightly or monthly payments by direct debit and where the Shire agrees to this arrangement, a reduced fee will be applied. Direct Debit is a payment facility which enables the Shire to automatically process deductions directly from a ratepayer’s financial institution and guarantees that payments are received in a timely manner and the debt is cleared by the end of the following financial year. The provision of these options has been successful in collecting the rates, service and waste charges levied without causing undue hardship to ratepayers. The Shire recorded an end of year outstanding rates debt ratio of 1.42% for the year to 30 June 2016. Penalty Interest Penalty Interest is applied to property assessments where the rates, service and waste charges have not been received by the required due dates and where the balance is greater than $0.01. The interest is applied at the maximum rate of 11% per annum under the LGFMR, calculated on a daily basis and charged once per month on the outstanding balance and for the number of days overdue. On a monthly basis, penalty interest is written off under Delegation number 8 where a balance of $5.00 or lower remains on an assessment. Excluded from the calculation of penalty interest are registered property owners under the RD Act 1992. Instalment Administration Fee and Interest Charge The Instalment Administration Fee and Interest Charge is applied to property assessments where ratepayers select Option 2 as their preferred payment option. The administration fee and interest charges are calculated when the annual rate billing is run with both the instalment charge and total cost shown on the annual rate notice with total cost applied across all four instalments.


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Instalment charges include a fee of $7.50 for instalments two, three and four and an interest component which is calculated at 5.5% over the period of instalment dates. The total amount of arrears on a property assessment will be included in the 1st instalment amount due. Excluded from instalment administration fee and interest charge are registered property owners under the RD Act 1992. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Part VI of the LG Act deals with the early payment, instalments, payment options and interest charges.

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

• Section 6.45(3) of the LG Act provides for the Shire to impose additional charges where customers elect to pay by instalments. The maximum rate of interest component in instalments is 5.5% as per Regulation 68 of the LGFMR 1996.

• Section 6.13 and 6.51 of the LG Act provides that the Shire may impose interest on a rate, service charge or any costs of proceedings to recover any such charge that remains unpaid after becoming due and payable. The maximum percentage rate of interest on overdue rates and service charges is 11% as per Regulation 70 of the LGFMR 1996.

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

STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 5: Effective Leadership and Governance. Community Outcome 2: Effective strategy, planning and asset management. Strategic Response: Ensure the Shire’s financial performance is well managed and leads to a strong financial position. Service level strategy/plan: Bill property rates on adoption of the Shire’s annual budget. Policy FI.15 Shire Rating endorsed by Council at the Ordinary Meeting of 28 May 2014 (OM20140528) outlines the administrative processes in applying differential rates. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS The amount of Shire budgeted expenditure for the provision of the early incentive payment scheme is $2,000. Revenue collected from the instalment administration fee, instalment interest and special arrangement fee is listed in Table 1 below, a budget allowance of $191,000 has been made in the 2016-17 Budget. Table 1

Fee Charged

2014-15 Actual

2015-16 Actual

2016-17 Budget

Instalment Administration Fee $69,503 $71,320 $70,000 Instalment Interest $118,496 $128,805 $120,000 Special arrangement Fee $1,517 $2,839 $1,000 $189,516 $202,964 $191,000

Revenue collected from penalty interest is listed in Table 2 below, a budget allowance of $56,500 has been made in the 2016-17 budget.


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Table 2

Fee Charged

2014-15 Actual

2015-16 Actual

2016-17 Budget

Penalty Interest $60,662 $72,457 $55,000 ESL Penalty Interest $1,495 $1,791 $1,500 $62,157 $74,248 $56,500

SUSTAINABILITY IMPLICATIONS Environmental The 2016-17 annual budget takes into consideration the Shire’s strategic values to ensure an integrated approach to protecting the natural environment that safeguards biodiversity and provides a sustainable environment for future generations. Social The 2016-17 annual budget takes into consideration the Shire’s strategic values to enhance the quality of community life in the Shire characterised by vibrant participation, cohesiveness, increased social capital and recognition of the need for social justice and community safety. Economic The 2016-17 annual budget takes into consideration the Shire’s strategic values to foster economic prosperity in the Shire and Region. VOTING REQUIREMENTS Absolute Majority RECOMMENDATION That Council adopts:



The following prizes have been provided by or donated to the Shire: 1st $1,000 Shire payment towards annual rates 2nd Accommodation – A weekend stay for 2 people at the Perth Ambassador Hotel including 2 nights and breakfast 3rd 2 x 6 month Gold Memberships to the Margaret River or Augusta Recreation Centre 4th Accommodation – 5 nights stay at Turner or Flinders Bay Caravan Park 5th $500 Shire payment towards annual rates 6th $250 Shire payment towards annual rates 7th $250 Shire payment towards annual rates

2. Payment Options



• Option 2




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o Second instalment by 18 November 2016 (63 days after due date of the first

instalment); o Third instalment by 20 January 2017 (63 days after due date of second

instalment); o Fourth instalment by 24 March 2017 (63 days after due date of third instalment).

• Special Arrangement

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

3. Penalty Interest

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

Interest will be applied at the maximum rate of 11% per annum Reg. 70 Local Government Financial Management Regulations 1996 (LGFMR), calculated on a daily basis and charged on the outstanding balance and calculated for the number of days overdue.

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

4. Instalment Administration Fee and Interest Charge

Imposes the following instalment administration fees and interest charges:

• Administration Fee A fee of $7.50 on each of instalments two, three and four.

• Interest Charge

The maximum rate of interest is 5.5% (Reg. 68 LGFMR) on instalment option 2.



ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS Nil RECOMMENDATION / COUNCIL DECISION CR TOWNSHEND, CR HASTIE OM2016/156 That Council adopts:



The following prizes have been provided by or donated to the Shire:


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1st $1,000 Shire payment towards annual rates 2nd Accommodation – A weekend stay for 2 people at the Perth Ambassador Hotel including 2 nights and breakfast 3rd 2 x 6 month Gold Memberships to the Margaret River or Augusta Recreation

Centre 4th Accommodation – 5 nights stay at Turner or Flinders Bay Caravan Park 5th $500 Shire payment towards annual rates 6th $250 Shire payment towards annual rates 7th $250 Shire payment towards annual rates

2. Payment Options



• Option 2




o Second instalment by 18 November 2016 (63 days after due date of the first

instalment); o Third instalment by 20 January 2017 (63 days after due date of second

instalment); o Fourth instalment by 24 March 2017 (63 days after due date of third

instalment).

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

3. Penalty Interest

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

Interest will be applied at the maximum rate of 11% per annum Reg. 70 Local Government Financial Management Regulations 1996 (LGFMR), calculated on a daily basis and charged on the outstanding balance and calculated for the number of days overdue.

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

4. Instalment Administration Fee and Interest Charge

Imposes the following instalment administration fees and interest charges:

• Administration Fee A fee of $7.50 on each of instalments two, three and four.


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• Interest Charge The maximum rate of interest is 5.5% (Reg. 68 LGFMR) on instalment option 2.



CARRIED BY ABSOLUTE MAJORITY 7/0


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11.4.4 ADOPTION OF 2016-17 ANNUAL BUDGET LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/358 REPORT AUTHOR Andrew Ross, Manager Corporate Services AUTHORISING OFFICER Annie Riordan, Director Corporate and Community Services IN BRIEF • Each year prior to 31 August, Council must adopt an Annual Budget for the financial year. • Council is requested to consider adoption by Absolute Majority of the Annual Budget for the 2016-

17 financial year. • Other items to be adopted include a material variance threshold for the year, elected member’s

fees and allowance, and the Schedule of Fees and Charges. RECOMMENDATION Part 1 – Budget for 2016-17 That Council having considered the strategic direction of the Shire outlined in the Community Strategic Plan 2033, the Corporate Plan 2016 to 2020 and the Long Term Financial Plan 2016 to 2026 and in accordance with the provisions of section 6.2 of the Local Government Act 1995 and Part 3 of the Local Government (Financial Management) Regulations 1996, adopts the Annual Budget 2016-17 for the Shire of Augusta Margaret River which is included as Attachment 1 and includes the following:

• Statement of Comprehensive Income by Nature or Type showing a net result for 2016-17 of $6,491,624

• Statement of Comprehensive Income by Programme showing a net result for 2016-17 of $6,491,624

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

$19,342,075 • Notes to and Forming Part of the Budget • Business Unit budget details • Supplementary information including the Capital Works Programme, operating and capital

grants, items carried forward from 2015-16 and details of reserve transfers. Part 2 – Material Variance Reporting for 2016-17 That Council in accordance with regulation 34(5) of the Local Government (Financial Management) Regulations 1996 and AASB 1031 Materiality, adopts a level for reporting of material variances to be used in the monthly financial activity statement reports for 2016-17 of financial activity being greater than budget by 10% and $10,000. Part 3 – Elected Member’s Fees and Allowances for 2016-17 That Council adopts the following elected members’ fees and allowances, in accordance with the April 2016 Determination of the Salaries and Allowances Tribunal, sections 5.98, 5.98A, 5.99 and 5.99A of the Local Government Act 1995 and regulations 30 to 33, 33A, 34 and 34A of the Local Government (Administration) Regulations 1996.

Annual Allowance Meeting Fees Information Technology & Communications Allowance

President 38,400 23,460 3,500


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Deputy President 9,600 18,129 3,500 Councillors 0 18,129 3,500

Part 4 – Fees and Charges for 2016-17 That Council adopts the 2016-17 Schedule of Fees and Charges included in Attachment 2. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND The Local Government Act 1995 requires a local government to prepare and adopt an annual budget prior to 31 August in each year, or such extended time as the Minister allows. The budget as shown in the Attachment is the result of input from each of the Shire’s business units and has considered the Shire’s Community Strategic Plan, Corporate Business Plan, Asset Management Plan, Workforce Plan and Long Term Financial Plan. The budget as presented is balanced and is similar to the draft provided to Council at a workshop on 8 June 2016 and to the Council meeting on 22 June 2016. The major components of the budget are:

• A capital works programme totalling $20.486 million; • Operating expenditure of $34.343 million; • Operating revenue of $11.936 million • Rate revenue of $19.342 million; • Grants for capital works of $9.557 million; • Transfers to reserves of $1.041 million to fund future capital works; • Transfers from reserves of $2.961 million to fund capital works during the year; • New loan borrowings of $1.450 million; and • A carry forward balance of $2.188 million from 2015-16.

CONSULTATION AND ADVICE External Consultation

• Invitation to comment on the proposed Differential Rates was advertised on 20 and 27 May, 3 and 10 June 2016 with a closing date for submissions of 13 June 2016. One submission was received relating to differential rates. This submission was considered by Council at the meeting on 22 June 2016.

• Fees and Charges for 2016-17 were approved for advertising on 11 May 2016, advertised for over 14 days with no submissions received and adopted by Council on 22 June 2016 for implementation from 1 July 2016.

Internal Consultation

• Councillors have been involved through the budget process in briefings for the long term financial plan, rates and employee costs, a workshop for the draft budget, approving the 2016 long term financial plan on 13 April 2016 and also approving fees and charges, rates and the draft budget.

• Management and staff were actively involved in the preparation and review of the operational and capital budgets. They were also involved in the setting of fees and charges in their areas of responsibility.

DISCUSSION / OFFICER COMMENTS The 2016-17 Budget has been developed over a number of months with significant input from staff, management and Councillors. Negotiation has resulted in the reprioritisation and deferral of some projects and activities in order to ensure available funding sources resulted in a balanced budget.


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A number of changes were required to be made to the draft budget document following the Council workshop on 8 June 2016 and Council’s approval of the draft Budget on 22 June 2016. These changes are detailed in the following table. No. Description Amount Business Unit 1 Increase carryover for implementation of Asset Management

Information System 15,000 ICT

2 Increase carryover for sustainability initiatives 4,000 Town Planning 3 Include carryover for possum project 8,500 Landcare 4 Reduce WALGA membership costs based on invoice received 14,000 CEO 5 Include loss on sale of asset for disposal of property 180,000 Other Property 6 Include income and expenditure for 2016-17 Wildcats events 10,000 CEO 7 Nature Play playground at Rotary Park part funded by $15,000

contribution from Rotary received in 2015-16 22,000 Parks & Gardens

8 Reduce insurance costs based on advice from LGIS 10,000 Finance 9 Reduce non-capital equipment allocation based on grant

approved by DFES 9,406 Emergency

Management 10 Increase operating grant based on grant approved by DFES 31,848 Emergency

Management 11 Reduce grant for Bushfire Risk Management Coordinator

based on grant approved by DFES 72,914 Emergency

Management 12 Carryover unspent grant for Bushfire Risk Management

Coordinator 100,750 Emergency

Management 13 Move $15,000 budget for Environmental Stewardship and

Grants programs from Town Planning to Landcare 15,000 Landcare

14 Increase allocation for Economic Development Strategy initiatives as agreed by Council on 22/6/16.

20,000 CEO

15 Carryover unspent funds for Stevens Road bridge project to Carbunup South Road bridge project

80,000 Construction

16 Increase interest earned on reserves due to larger expected balance of reserves at 30/6/16

57,686 General Purpose Funding

17 Carryover unspent budget for Developer Contributions Study 15,000 Town Planning 18 Amend Community Contributions budget so that total does not

exceed amount specified by the procedure. 10,295 Director Corporate

& Community Services

19 Change the carryover amounts and budgets for various Asset Services projects including reducing the Augusta Interpretation Plan by $7,500 and increasing Trails Signage Implementation, Asset Data Collection and Paths and Trails Planning by $12,000, $6,000 and $35,000 respectively.

45,500 Asset Services

20 Include carryover for purchase of small truck. 63,400 Plant Program 21 Allocate labour budget for Augusta Recreation Centre by

transferring part of the Fitness Centre’s labour budget. 20,020 Augusta

Recreation 22 Include first drawdown from Overnight Cash Deposit Facility

(OCDF) for the Margaret River Main Street upgrade project. 200,000 Construction

The CEO’s Budget Overview and 2016-17 Budget Summary that are included in the final budget document are reproduced in this item for Councillor’s reference. CEO’s Budget Overview The 2016-17 balanced budget includes capital and operating expenditure of $55 million and compared to last year is an increase of $9 million in expenditure for the benefit of the community and visitors to the Shire. The budget aims to build on the Shire’s strong financial management over the past 8 years and deliver a soundly constructed balance of new and improved assets, provide a comprehensive range of important community services and facilities and ensure our cash reserves are used to meet important challenges on the horizon such as the redevelopment of the main street of Margaret River and the conversion of the Davis Road Waste Landfill site to a waste transfer station servicing a long term regional waste facility.


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Continued responsible financial management is the key objective of the Shire’s long term financial planning, corporate planning and annual budget in order to ensure the Shire’s ongoing financial sustainability. To be sustainable our Shire needs to take a long term view by restraining future spending and maximising revenue sources to fund that spending. This will ensure that spikes in annual rate increase percentages and disruptive cuts in service delivery are both avoided. Influenced by softening economic conditions and mindful of the impact cost increases have upon the community, Council this year agreed to a reduced percentage rate increase of 3%. This increase compared favourably to the 4% increase forecast in the Long Term Financial Plan and the increase that has been applied for the past two years. Property valuations for rural properties were revalued by Landgate in 2016 and resulted in an average decrease of 3.5% across the sector. As this increase is an average, changes for individual properties may be either higher or lower. This means some rural property owners will receive a rate increase greater than the 3% intended and that others may actually receive a rate decrease. Landowners who in the past have benefited from a 50% State Government rebate on their rates will this year be impacted by the State Government’s 2015 budget decision to cap pension rebates. Following extensive lobbying from stakeholders the amount of this cap has been recently increased to $750 from $500. When reviewing rating options for the year Council considered a number of factors including:

• the impact of the change in property valuations; • the Long Term Financial Plan (LTFP); • increases in State Government budget charges; • actual and forecast changes in the Consumer Price Index and other indices; • the level of services provided to our community and our many visitors; • the shortfall in funding required to ensure a budget deficit is not recorded; • the impact of rate increases upon the community in terms of affordability; and • legislative compliance requirements.

Rate increases greater than forecast inflation are required to ensure the provision of services to our community and its many visitors, which on any day are estimated to represent an additional 30% of the Shire’s population. The Shire is also exposed to cost increases which generally exceed inflation for some items such as street lighting, insurance, contract services, utilities and construction materials. A balanced budget has been delivered for the community with operating and capital expenditure demands totalling $55 million being fully funded by rates, revenue, grants, reserves and surplus budget funds from last year. This positive result is becoming increasingly difficult to achieve and the reliance upon the previous year’s budget surplus funding the current budget year is not ideal. The Shire also continues to record a net operating deficit and while this is not uncommon amongst local governments, due primarily to the annual allocation of depreciation charges, the Shire’s long term financial objective is to generate sufficient operating revenue to at least meet operating expenditure needs. This would then allow increased funds to be allocated to renew and replace its significant capital asset base. The ongoing process of revaluing the Shire’s assets to reflect their “fair value” rather than their historical cost impacts depreciation and as this process is refined depreciation allocations will also improve to better represent the consumption of assets as determined by their remaining useful life and condition assessment. Asset fair values have the benefit of providing an improved understanding of the gap between required and actual asset renewal expenditure. However, limited funds and competing priorities may require service levels to be discussed and may result in some rationalisation of assets. Employee costs are the Shire’s largest expenditure item and are constantly being scrutinised by Council, management and the community. An organisation structural review that became fully operational in December 2015 has resulted in some savings being reflected in the budget.


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Additionally, the Shire’s recently negotiated enterprise agreement also ensured workforce costs were restrained and in accordance with the Shire’s Workforce Plan there has been no new positions added since 2013-14. On a budget to budget basis total operating employee costs (salaries, wages, superannuation, workers compensation, leave, uniforms, protective clothing, training and FBT) are expected to increase by 2.9%. It should also be remembered the Shire is the largest employer in the area with over 200 employees and as the majority live within the Shire they and their families contribute to the economy and the community. The Shire’s 2016-17 Budget will continue to provide a wide range of services and activities benefiting our community such as:

• Special Projects for the Landcare area total $142,500 and include the continuation of the environmental management fund which commenced last year and provides tangible financial support for the Shire’s strategic goal of valuing the natural environment.

• Contributions for events have increased compared to last year and include $135,000 for major events that increase visitor numbers and expenditure in the Shire and a further $60,500 is provided to local events such as Australia Day, Anzac Day, the Agricultural Show and the Augusta River Festival.

• Almost $100,000 has been allocated as donations, sponsorships and contributions to support local groups across the Shire.

• Our Community Planning and Development team have allocated $72,050 to youth, community capacity building, safer communities and disability access and inclusion projects and a further $67,800 to arts and culture projects.

• Bushfire brigade volunteers will receive $918,000 of capital equipment and State Emergency Service volunteers $60,000 of capital equipment through the Emergency Services Levy (ESL). Operating costs for the brigades and the SES will also continue to be funded by the Shire and the ESL.

• The Shire continues to commit extensive expenditure to a myriad of community and recreation services such as the libraries, aquatic centre, indoor recreation centres, parks and gardens, recreation ovals, skate parks, halls, cultural centre, after school and school holiday child care and public toilets.

• Despite significant expenditure for waste services, which is partly attributable to increased legislative and environmental requirements for landfill sites, no additional funding from property rates is required to supplement fees and charges and a significant reserve for future major capital works has been established.

• Finalisation of the design for the upgrade of the main street of Margaret River is planned to occur in 2016-17. The Shire received $5.490 million in funding from Royalties for Regions in June 2016 and these funds have been placed in the Margaret River CBD Redevelopment reserve. Construction works for the $7.490 million project are expected to commence in 2018 after the Perimeter Road project has been completed.

• A loan of $1,100,000 is proposed to be drawn down to assist funding the redevelopment of the aging Cultural Centre facility and surrounding buildings into a multi-purpose entertainment, arts and tourism hub. The progress of this project is dependent upon grants being obtained from Federal and/or State programs.

• A loan of $350,000 has been included for the redevelopment of the Margaret River Youth Precinct and will supplement the $1,393,000 grant that was recently approved by Lotterywest. The Shire is waiting on the outcome of other grant applications for this significant project.

• Over $5 million of the Shire’s capital works programme total of $20.486 million will be funded from general revenue and is an increase compared to last year. Other major funding sources include Shire reserves ($2.956 million), grants ($9.286 million) and the carryover of projects from last year ($1.160 million).


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• The construction of 3 chalets at Turner Caravan Park is expected to occur during the year and is funded by a transfer from the Caravan Park Upgrade reserve.

• Our business unit reporting shows that caravan parks are our strongest performer by providing a contribution to the financial operation of the Shire. Building Services also provides a net surplus and a number of other business units such as child care and the fitness centre record a close to break-even position. The Waste Services area is also self-sufficient as waste fees and charges and reserve transfers fully fund operating and capital expenditure needs. However, the majority of business units are service providers and raise limited revenue or are services provided for the benefit of the community and are subsidised by general revenue as they are considered community service obligations.

Overall, the Shire’s budget for 2016-17 endeavours to meet the service expectations of the community within the limitations of local and wider economic conditions. 2016-17 Budget Summary A summary of the Annual Budget 2016-17 compared to the Forecast Actual result and Annual Budget for 2015-16 is provided below for reference purposes:

It is expected the Shire will commence the budget year with a surplus of $2,187,703 from 2015-16. This is an improvement on the budgeted result expected for 2015-16 and is the result of a number of factors including:

• Carrying forward various operating expenditure projects totalling $516,300; • Carrying forward various capital projects totalling $1,160,070; • Carrying forward an unspent operating grant of $100,750; and • Various under and over expenditures and revenues for the year.

Expectations are that 2016-17 will end up with a balanced result. Rates Updated property values for rating purposes were received for all rural or unimproved value (UV) properties in the Shire and are effective from 1 July 2016. The previous valuation for UV rated

Description 2016-17 Budget $’000s

2015-16 Forecast $’000s

2015-16 Budget $’000s

Rates 19,342 18,668 18,275

Operating Revenue 11,936 11,801 10,543

Operating Expenditure 34,343 32,621 32,096

Capital Grants 9,557 9,602 5,394

Net Result 6,492 7,451 2,116

Asset Purchases 20,486 7,855 13,790

Assets Sale Proceeds 644 1,137 1,160

Borrowings Repaid 601 645 642

Borrowings to be Drawn 1,450 0 1,082

Transfers To Reserve 1,041 10,004 2,281

Transfers From Reserve 2,961 173 1,885

Brought Forward Surplus 2,188 3,431 3,411

Closing Budget Position 0 2,188 0


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properties was 1 July 2015. Gross Rental Value (GRV) properties are valued on a 3 year cycle with the next valuation effective on 1 July 2018. Landgate determined that rural property values had reduced by an average of 3.5% compared to the previous year’s valuations. The change in property valuations is one of the variables considered when determining the rating approach for the budget year. The following chart shows the average annual change in unimproved property valuations for the past decade.

Other considerations include:

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

insurance, and • various indices and forecasts used to measure changes in costs.

Having considered these factors Council agreed to increase rates by 3% rather than the 4% increase proposed in the Shire’s Long Term Financial Plan. As a result of this decision all minimum payments were increased by 3% and all rates in the dollar for GRV properties were also increased by 3%. Rates in the dollar for unimproved properties were increased by 6.5% to take into consideration the impact of the average 3.5% decrease in property valuations for the year. The following table compares the rates in the dollar and minimum payments for the current and previous financial years. Rate Category Rate in $

2016-17 Rate in $ 2015-16

Minimum 2016-17

Minimum 2015-16

Residential 9.8932 9.6050 $1,227 $1,191 Residential Vacant 18.9520 18.4000 $1,227 $1,191 Rural Residential 9.4770 9.2010 $1,494 $1,450 Rural Residential Vacant 18.4473 17.9100 $1,494 $1,450 Commercial, Industrial, Tourism 11.7183 11.3770 $1,318 $1,260 UV Rural 0.4544 0.4267 $1,377 $1,337 UV1 One non-rural use 0.5680 0.5334 $1,377 $1,337 UV2 Two non-rural uses 0.6816 0.6401 $1,377 $1,337 UV3 Over two non-rural uses 0.7952 0.7467 $1,377 $1,337 Strata titled vineyard 0.4544 0.4267 $809 $785 UV Conservation 0.4366 0.4107 $1,325 $1,286


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The following chart compares annual rate increases to the change in the Perth Consumer Price Index1 and shows the gap is clearly decreasing. Whilst this demonstrates rate increases are becoming more affordable compared to the past, the decline also means that it is becoming increasingly difficult to fund expenditure demands which often increase by greater than CPI.

The following chart compares rate revenue raised by year with the annual percentage change in rate revenue and shows the rate annual rate revenue has increased is generally showing a declining trend which places pressure upon the Shire’s revenue forecasts and overall budget.

The overall objective for rating is to achieve equity and consistency between rate categories for similar land uses. For 2016-17 a total of $19,342,075 is budgeted to be obtained from property rates 1 Source of Perth CPI is the Australian Bureau of Statistics and WA Treasury forecasts have been used for 2015-16 and 2016-17.


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(including interim and back rates of $60,000) and represents an increase of 3.61% on rates for 2015-16. The year on year increase in rate revenue for 2015-16 was 6.76% and for 2014-15 was 5.50%. Interim rates raised after residential and commercial properties are developed contributed to these higher annual percentage increases. Growth in the number of properties for 2015-16 was higher than previous years with the property database used to calculate rates for the budget having a total of 9,332 properties compared to 9,110 properties included in the 2015-16 budget and 9,055 properties at 30 June 2015. The increase of 277 properties for 2015-16 represents a growth rate of 3.1%. Should the number of properties increase by 200 in 2016-17 the growth rate would be 2.1%.

Fees and Charges Fees and charges have been reviewed to ensure improved cost recovery and in many cases have been increased by 3%. Although the growth in the Perth CPI for the period March 2015 to March 2016 was only 0.7% a greater escalation rate was used to be consistent with the increase applied for 2015-16 and with the assumptions of the Long Term Financial Plan and with WA Treasury’s forecast of a 2.5% increase in the Perth CPI for 2016-17. Statutory changes to fees and charges for items such as planning fees have also been included. Council approved the fees and charges for advertising at their meeting on 11 May 2016 and following the statutory public notice period the new fees and charges were adopted by Council on 22 June 2016 for implementation on 1 July 2016. Total fees and charges are budgeted to be $9.036 million compared to the 2015-16 budget of $8.724 million. The major contributors to fees and charges are waste collection and disposal charges and caravan park fees. Growth in the number of and demand for services in these areas has contributed to fees and charges increasing by 3.6% on a budget to budget basis. Forecast actual fees and charges raised for 2015-16 of $9.300 million exceeded budget predictions due primarily to the growth in these services. Fees and charges constitute 22% of total budgeted revenue and income from property rates constitutes 47%. As these are the Shire’s main sources of revenue it is important to ensure the proportion raised does not decrease in order to ensure the Shire is controlling its own sources of revenue. The following chart shows the proportion of revenue for all sources of revenue and clearly shows how important fees and charges and property rates are to the Shire’s ongoing financial sustainability.


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For the 2015-16 Budget, fees and charges and property rates comprised 78% of total operating revenue. This proportion has declined for the 2016-17 Budget due to the large proportion of revenue expected to be obtained from grants for capital projects. The own source revenue coverage ratio compares own source operating revenue to operating expenses and measures the ability to cover operating expenses from own source revenue. Historically the ratio result has exceeded 90% which exceeds the advanced standard benchmark set by the Department of Local Government and Communities. For the 2016-17 Budget the ratio is calculated to be 85%. Grants A total of $11.585 million of operating and capital grants and contributions are included in the budget. This amount is similar to the 2015-16 actual of $11.189 million although this amount was inflated by the Royalties for Regions’ grant of $5.490 million that was received in June 2016 for the Margaret River main street upgrade project. The major operating grant to be received is $1.238 million from the WA Local Government Grants Commission (WALGGC) and represents 61% of the total operating grants of $2.028 million budgeted for the year. A full year’s grant is budgeted to be received during the year as last year a 50% advance payment of the grant was received in June 2015. Other operating grants include the ESL operating grants of $0.287 million and non-ESL contributions of $0.070 million and various grants and contributions for specific projects and activities for business units. $9.557 million of capital grants are provided for specific purposes and include:

• $3.400 million for the proposed Cultural Centre redevelopment project; • $1.393 million for the Margaret River Youth Precinct project; • $0.949 million for replacement bushfire brigade vehicles including appliances for the

Cowaramup and Kudardup brigades; • $0.954 million from Main Roads WA through the Regional Roads Group for road works

primarily on Rosa Brook Road, Leeuwin Road and Treeton Road; • $1.504 million from Roads to Recovery for Wallcliffe Road, asphalt overlays and rural reseals; • $0.546 million WALGGC Special Purpose Grant for Carbunup South Road bridge; • $0.070 million from Lotterywest for the Wadandi track;


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• $0.229 million in two grants from the Recreational Boating and Facilities Scheme for the Ellis Street boat ramp, finger jetty and boat trailer parking project;

• $0.032 million through the pool revitalisation program to replace the bulkhead for the pool at the Margaret River Aquatic Centre.

Operating Expenditure Total operating expenditure of $34.343 million is budgeted for 2016-17 and compares to the forecast actual and budget for 2015-16 of $32.757 million and $32.096 million respectively with the increases being 4.8% and 7% year on year. The following chart provides a breakdown of operating expenditure and shows that employee costs are the Shire’s largest expenditure item with materials and contracts and depreciation being the next largest. Depreciation as a proportion of expenditure has increased to 24% from 22% compared to the 2015-16 Budget while employee costs (43% last year) and materials and contracts (27% last year) have reduced.

The fair value revaluation of the Shire’s fixed assets has resulted in asset values increasing and accordingly the annual allocation of depreciation has also increased. Prior to the mandatory revaluation of fixed assets coming into effect from 1 July 2012 the written down value of the Shire’s fixed assets was $189.754 million. At 30 June 2015 their value had increased to $374.807 million or an increase of 98%. With the addition of capital expenditure for 2015-16 and the plant and equipment revaluation for the year this balance will increase at 30 June 2016. Over the same timeframe depreciation has increased from $5.587 million or 20% of operating expenditure in 2011-12 to the proposed $8.209 million or 24% of operating expenditure in 2016-17. The accuracy of the calculation and allocation of depreciation is expected to improve as knowledge of the Shire’s asset base through condition reports, useful life assessments, asset componentisation and determination of non-depreciable amounts improves.


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Employee Costs The Shire has budgeted for a workforce of 167.36 full time equivalent (FTE) staff in 2016-17 which compares to 165.3 FTE last year. The increase of just over 2 FTEs is due to the full-time 100% grant funded position of Bushfire Risk Planning Coordinator and the allocation of labour hours to the Alexandra Bridge camping ground which was previously managed by a contractor and additional labour hours allocated to Turner Caravan Park to allow for cleaning of the chalets planned to be constructed in 2016-17. Labour cost increases have been minimised and are equivalent to the across the board wage increase of 2.5% contained in the Shire’s recently negotiated 2016 Enterprise Agreement and performance based increases of 2% for eligible employees. On a budget to budget basis total operating employee costs are expected to increase from $13.707 million to $14.100 million or 2.9%. The percentage increase from the forecast 2015-16 actual to 2016-17 budget is 2%. These increases demonstrate growth in employee costs is being restrained. The following chart compares operating employee costs and rates and shows that for 2016-17 budgeted operating employee costs constitute approximately 73% of budgeted rates and is a slight decrease on the previous year.

Further information on the Shire’s Workforce is included in the Workforce Plan Budget update for 2016-17 which is included within this budget document. This update includes details of the key workforce changes for the 2016-17 budget as well as other information such as the Shire’s Organisational Structure. Capital Works Programme $20.486 million has been allocated towards capital works and the following table provides a breakdown of the type of expenditure and the source of funding.

Capital Expenditure and Funding Source $ % Asset Renewal Expenditure 14,305,859 69.8% New Assets 1,308,500 6.4% Asset Upgrades 4,871,200 23.8% Total Capital Expenditure 20,485,559 Funded by: General Revenue 5,291,726 25.8% Reserves 2,955,846 14.4% Grants 9,286,764 45.3%


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Loans 1,450,000 7.1% Asset Sale Proceeds 341,153 1.7% Previous Period Funding (carry overs) 1,160,070 5.7%

The table shows the majority of expenditure will be used to renew capital assets as opposed to upgrading assets or acquiring new assets. This is a positive situation and the proposed asset renewal expenditure exceeds the 100% target for the Asset Sustainability Ratio which compares asset renewal expenditure against depreciation. This result is influenced by how proposed capital expenditure is categorised and is a developing asset management process. New asset expenditure proposed for the year includes the construction of chalets at Turner Caravan Park ($700,000) which will be funded from reserves, stage 2 of the Flinders Bay to Cape Leeuwin Lighthouse Trail ($230,000), works on the Wadandi track ($50,000) and weighbridge equipment and software for the Davis Road landfill site ($45,000). Major asset upgrade projects which also include an asset renewal component are the Margaret River Youth Precinct project ($2.043 million) and the Cultural Centre redevelopment ($4.5 million). Both of these projects are funded from grants, reserves, loans and general revenue. Other asset upgrade projects include the construction of a waste cell at the Davis Road landfill site ($200,000), development of the West Cowaramup public open space ($100,000), drainage works ($155,000), path works ($100,000), boat trailer bays at the Ellis Street jetty precinct ($223,000) and preliminary design and engineering works for the Margaret River main street redevelopment ($200,000). The majority of road and related infrastructure projects have been categorised as asset renewal expenditure as the scheduled works have the objective of restoring service levels. $3.495 million has been allocated to road works with the majority funded from the Federal Governments Roads to Recovery program and the State Government’s Regional Road Group grants administered through Main Roads WA. Details of each capital project and their proposed funding source are included in the supplementary information to the budget. Loan Borrowings The following chart compares loan borrowings principal outstanding, principal and interest repayments since 2012-13. Whilst principal and interest repayments have remained generally stable, principal outstanding has been declining. Loan principal outstanding is expected to increase in 2016-17 due to two loans proposed to be drawn down during the year. Loans of $1.100 million for the Cultural Centre project and $0.350 million for the Margaret River Youth Precinct are timed to be drawn down late in the financial year so that interest costs for the year are minimised and a principal repayment will not be required. The terms and budgeted fixed interest rates for the loans are 15 years and 3.79% and 10years and 3.50% respectively.


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Reserves The balance of reserves for 2015-16 of $21.107 million exceeded budget expectations due to a number of factors including project delays resulting in funds not being drawn down as expected, unspent funds for waste management being transferred to reserves and the $5.490 million Royalties for Regions grant for the Margaret River main street project also being transferred to reserves. For 2016-17 transfers from reserves of $2.960 million are expected for various projects including the Margaret River main street project ($0.200 million), Turner Caravan Park chalets ($0.700 million), waste management capital projects ($0.687 million), replacement of mobile plant and equipment ($1 million) and Margaret River Youth Precinct ($0.200 million). Transfers to reserves are expected to total $1.041 million of which $0.389 million is interest earned, $0.200 million are expected developer contributions to be received and $0.390 million are expected sale proceeds from a property. As transfers from reserves exceed transfers to reserves the balance of reserves is expected to reduce to $19.187 million. Material Variances Section 34 (5) of the Local Government (Financial Management) Regulations 1996, require local governments to adopt a percentage or value for the reporting of material variances in the monthly statement of Financial Activity. The Australian Accounting Standards Board 1031 July 2004 (AASB) define the term “Material Variance” as “Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial report. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or a combination of both, could be the determining factor.” To ensure compliance with Local Government (Financial Management) Regulations 1996 Regulation 34 (5) & AASB 1031, officers recommend a monthly variance for reporting of material variances, where financial activity is greater than 10% and $10,000. These parameters have been used for variance reporting in the monthly financial report for a number of years and are considered to have successfully captured material variances for revenue and expenditure items.


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Councillor Fees and Allowances At the Ordinary Meeting on 22 June 2016 Council adopted meeting fees and allowances that were included in the draft budget for 2016-17 (minute reference OM2016/125). However, to ensure transparency and compliance Council are requested to approve these fees and allowances by absolute majority as part of the process of adopting the 2016-17 Budget. No changes are proposed to these fees and allowances which represent a 1.5% increase on 2015-16 as shown in the following table. The Salaries and Allowances Tribunal determination of 12 April 2016 advised the minimum and maximum limits of the bands that are used to determine the fees and allowances would increase by 1.5%. It is advised the proposed fees fit within the approved limits for Band 2.

2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 2016-17 2015-16President 38,400 37,823 23,460 23,114 3,500 3,500 65,360 64,437Deputy President 9,600 9,456 18,129 17,861 3,500 3,500 31,229 30,817Councillors * 5 0 0 18,129 17,861 3,500 3,500 108,145 106,805

204,734 202,059

Allowances Meeting Cees ICT Allowance Total

Fees and Charges At the Ordinary Meeting on 22 June 2016 Council adopted the 2016-17 Schedule of Fees and Charges to be imposed from 1 July 2016 (minute reference OM2016/123). To ensure full compliance with Section 6.16 ((3) of the Local Government Act 1995 which states that fees and charges are to be imposed when adopting the annual budget, Council is requested to approve the attached Schedule of Fees and Charges for 2016-17. Summary As discussed within this report, key stakeholders have had input into the development of the Annual Budget 2016-17. This budget has been developed on sound financial management principles and has considered the Shire’s Community Strategic Plan, Corporate Plan and updated Long Term Financial Plan 2016 to 2026. It is therefore recommended that the Council adopts the Annual Budget 2016-17. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS The accompanying Annual Budget 2016-17 has been prepared in accordance with the Local Government Act 1995 and associated Local Government (Financial Management) Regulations 1996, together with the Australian Accounting Standards. Section 6.2 of the Local Government Act and, Part 3 of the Local Government (Financial Management) Regulations 1996 detail the form and manner in which an annual budget is to be presented to the Council for adoption. In accordance with Section 6.36 of the Local Government Act 1995 the Shire has given the appropriate notice of its intention to impose differential general rates and specified minimum rates in respect of each differential rate category. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 5: Effective leadership and governance Community Outcome 2: Effective strategy, planning and asset management Strategic Response: Ensure the Shire’s financial performance is well managed and leads to a strong financial position. PLANNING FRAMEWORK Nil


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FINANCIAL IMPLICATIONS The adoption of the 2016-17 Annual Budget determines the financial operations of the Shire for the 2016-17 financial year. SUSTAINABILITY IMPLICATIONS Environmental The 2016-17 Annual Budget takes into consideration the Shire’s strategic values to ensure an integrated approach to protecting the natural environment that safeguards biodiversity and provides a sustainable environment for future generations. Social The 2016-17 Annual Budget takes into consideration the strategic values to enhance the quality of community life in the Shire characterised by vibrant participation, cohesiveness, increased social capital and recognition of the need for social justice and community safety. Economic The 2016-17 Annual Budget takes into consideration the Shire’s strategic values to foster economic prosperity in the Shire and Region. VOTING REQUIREMENTS Absolute Majority RECOMMENDATION Part 1 – Budget for 2016-17 That Council having considered the strategic direction of the Shire outlined in the Community Strategic Plan 2033, the Corporate Plan 2016 to 2020 and the Long Term Financial Plan 2016 to 2026 and in accordance with the provisions of section 6.2 of the Local Government Act 1995 and Part 3 of the Local Government (Financial Management) Regulations 1996, adopts the Annual Budget 2016-17 for the Shire of Augusta Margaret River which is included as Attachment 1 and includes the following:




$19,342,075 • Notes to and Forming Part of the Budget • Business Unit budget details • Supplementary information including the Capital Works Programme, operating and capital

grants, items carried forward from 2015-16 and details of reserve transfers. Part 2 – Material Variance Reporting for 2016-17 That Council in accordance with regulation 34(5) of the Local Government (Financial Management) Regulations 1996 and AASB 1031 Materiality, adopts a level for reporting of material variances to be used in the monthly financial activity statement reports for 2016-17 of financial activity being greater than budget by 10% and $10,000. Part 3 – Elected Member’s Fees and Allowances for 2016-17 That Council adopts the following elected members’ fees and allowances, in accordance with the April 2016 Determination of the Salaries and Allowances Tribunal, sections 5.98, 5.98A, 5.99 and 5.99A of the Local Government Act 1995 and regulations 30 to 33, 33A, 34 and 34A of the Local Government (Administration) Regulations 1996.


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Annual Allowance Meeting Fees Information Technology & Communications Allowance

President 38,400 23,460 3,500 Deputy President 9,600 18,129 3,500 Councillors 0 18,129 3,500

Part 4 – Fees and Charges for 2016-17 That Council adopts the 2016-17 Schedule of Fees and Charges included in Attachment 2. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. 2016-17 Annual Budget 2. 2016-17 Schedule of Fees and Charges RECOMMENDATION CR TOWNSHEND, CR HAYNES Part 1 – Budget for 2016-17 That Council having considered the strategic direction of the Shire outlined in the Community Strategic Plan 2033, the Corporate Plan 2016 to 2020 and the Long Term Financial Plan 2016 to 2026 and in accordance with the provisions of section 6.2 of the Local Government Act 1995 and Part 3 of the Local Government (Financial Management) Regulations 1996, adopts the Annual Budget 2016-17 for the Shire of Augusta Margaret River which is included as Attachment 1 and includes the following:




$19,342,075 • Notes to and Forming Part of the Budget • Business Unit budget details • Supplementary information including the Capital Works Programme, operating and

capital grants, items carried forward from 2015-16 and details of reserve transfers. Part 2 – Material Variance Reporting for 2016-17 That Council in accordance with regulation 34(5) of the Local Government (Financial Management) Regulations 1996 and AASB 1031 Materiality, adopts a level for reporting of material variances to be used in the monthly financial activity statement reports for 2016-17 of financial activity being greater than budget by 10% and $10,000. Part 3 – Elected Member’s Fees and Allowances for 2016-17 That Council adopts the following elected members’ fees and allowances, in accordance with the April 2016 Determination of the Salaries and Allowances Tribunal, sections 5.98, 5.98A, 5.99 and 5.99A of the Local Government Act 1995 and regulations 30 to 33, 33A, 34 and 34A of the Local Government (Administration) Regulations 1996.

Annual Allowance

Meeting Fees

Information Technology & Communications Allowance

President 38,400 23,460 3,500 Deputy President 9,600 18,129 3,500


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Councillors 0 18,129 3,500 Part 4 – Fees and Charges for 2016-17 That Council adopts the 2016-17 Schedule of Fees and Charges included in Attachment 2.

0/0 Cr Hastie moved the following amendment: AMENDMENT / COUNCIL DECISION CR HASTIE, CR SMART OM2016/157 That a part 5 be added: That the CEO’s overview be amended to clearly identify that it was a Council initiative and directive that the rate increase for this budget be limited to 3%.

CARRIED 4/3 CRS LANE, KENNAUGH AND EARL VOTED AGAINST

REASON Cr Hastie spoke to the motion stating that it's important the community know that it is Council that are running the organisation. This then became the primary motion and was put to vote. PRIMARY MOTION / COUNCIL DECISION CR TOWNSHEND, CR HAYNES OM2016/158 Part 1 – Budget for 2016-17 That Council having considered the strategic direction of the Shire outlined in the Community Strategic Plan 2033, the Corporate Plan 2016 to 2020 and the Long Term Financial Plan 2016 to 2026 and in accordance with the provisions of section 6.2 of the Local Government Act 1995 and Part 3 of the Local Government (Financial Management) Regulations 1996, adopts the Annual Budget 2016-17 for the Shire of Augusta Margaret River which is included as Attachment 1 and includes the following:




$19,342,075 • Notes to and Forming Part of the Budget • Business Unit budget details • Supplementary information including the Capital Works Programme, operating and

capital grants, items carried forward from 2015-16 and details of reserve transfers. Part 2 – Material Variance Reporting for 2016-17 That Council in accordance with regulation 34(5) of the Local Government (Financial Management) Regulations 1996 and AASB 1031 Materiality, adopts a level for reporting of material variances to be used in the monthly financial activity statement reports for 2016-17 of financial activity being greater than budget by 10% and $10,000. Part 3 – Elected Member’s Fees and Allowances for 2016-17 That Council adopts the following elected members’ fees and allowances, in accordance with the April 2016 Determination of the Salaries and Allowances Tribunal, sections 5.98, 5.98A, 5.99 and 5.99A of the Local Government Act 1995 and regulations 30 to 33, 33A, 34 and 34A of the Local Government (Administration) Regulations 1996.

Annual Allowance

Meeting Fees

Information Technology & Communications


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Allowance President 38,400 23,460 3,500 Deputy President 9,600 18,129 3,500 Councillors 0 18,129 3,500

Part 4 – Fees and Charges for 2016-17 That Council adopts the 2016-17 Schedule of Fees and Charges included in Attachment 2. Part 5 That the CEO’s overview be amended to clearly identify that it was a Council initiative and directive that the rate increase for this budget be limited to 3%.

CARRIED BY ABSOLUTE MAJORITY 7/0


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11.4.5 OPERATIONAL PLAN 2016-2017 LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE COR/130 REPORT AUTHOR Stacey Hutt, Community and Corporate Planner AUTHORISING OFFICER Annie Riordan, Director Corporate and Community Services IN BRIEF

• The Operational Plan 2016-2017 is a sub plan of the Corporate Business Plan and outlines the activities, delivery of services, projects and infrastructure in reference to the Shire’s informing strategies to achieve the priorities set by Council.

• The Operational Plan confirms the Shire’s ability to achieve priorities in alignment with the Corporate Plan, Long Term Financial Plan, Workforce Plan and Asset Management Plan and addresses the objectives and strategies outlined in the Community Strategic Plan.

• The Operational Plan allocates responsibility to Business Units, sets performance measures for evaluating projects, services and delivery of priorities in the short term and is aligned to the budget including the capital works program.

• It is a not a legislative requirement for Council to adopt the Operational Plan however as the Shire will report quarterly against actions in the Plan it is presented to Council to receive the Operational Plan 2016-2017.

RECOMMENDATION That Council receives the Operational Plan 2016-2017 (Attachment 1). LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Under the Local Government (Administration) Regulations 1996 (LGAR), all local governments in Western Australia are required to have developed and adopted two key documents: a Strategic Community Plan and a Corporate Business Plan which are supported and informed by resourcing and delivery strategies. These plans drive the development of each local government’s annual budget. The Community Strategic Plan 2033, was adopted in February 2013, and outlines the goals that will be achieved through the strategies and actions that are provided in the Corporate Business Plan. The Corporate Business Plan 2016-2020, adopted at the Ordinary Council Meeting 13 July 2016, integrates the Resourcing Strategy which is comprised of the Workforce Plan, Asset Management Plan, Long Term Financial Plan and the Information and Communication Technology (ICT) Strategic Framework. The Corporate Business Plan sets out the projects and services the Shire will deliver over the next 4 years that work towards achieving the outcomes identified in the Community Strategic Plan. The Corporate Business Plan is achieved through the annual Operational Plan. An Annual Operational Plan is developed to include information on individual actions and projects programmed to be completed throughout the year (Year 1 of the Corporate Plan) and incorporates the CEO Performance Targets as adopted by Council. The Annual Operational Plan is reported quarterly to Council.


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The Integrated Planning and Reporting Framework and Guidelines issued by the Department of Local Government and Communities provides guidance in the reporting requirements of local government in relation to the integrated plans. Performance monitoring of Operational Plans is required to be undertaken quarterly and reported to Council. CONSULTATION AND ADVICE External Consultation No external consultation is required as part of the Operational Plan development. Internal Consultation Executive Leadership Team Business Unit Managers DISCUSSION / OFFICER COMMENTS The Operational Plan 2016-2017 development was undertaken by the Executive Leadership Team and Business Unit Managers in relation to the resourcing capabilities of the 2016-2017 delivery program. The Operational Plan 2016-2017 was then developed and provides a detailed description of planned activities for the financial year, responsible Business Unit, allocated budget and where applicable the capital works funding allocation and key funding partners. There are a total of 306 planned activities for the financial year. Of these 306 activities planned for this financial year, 42 are priority projects, 65 capital works and 241 operational activities. This table identifies the types of actions to be delivered in the 2016-2017 financial year as reported in the Operational Plan.

The Shire is continuing to work towards developing the Operational Plan to further integrate with the Workforce Plan and Asset Management Plan.


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Road map to reading the Operational Plan 2016-2017:

• The blue represents Goal 3: Managing Growth Sustainably and the grey represents Goal 4: Vibrant and Diverse Economy and both supports the Community Strategic Plan 2033.

• Community Outcomes headings such as 2. Liveable and well-designed places are aligned to respective goals as identified in the Corporate Business Plan 2016-2020.

• Sub headings such as 2.2 Develop and implement master plans for Shire facilities and projects so they are well designed, have aesthetic appeal and are accessible by all is the Shire’s strategic response. That is what Council has entered into an agreement with community on how it anticipates delivering the community outcome.

• 3.2.2.4 Undertake Stage I of the redevelopment of the Margaret River Cultural Centre (subject to funding) is the planned activity and in this case priority activity (refer to the key below the table) that comprise the Operational Plan (the delivery program).

• Each activity is then committed to when it will be delivered throughout the year which corresponds to the Annual Budget funds allocation.

STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Section 5.56 (1) Local Government Act 1995 requires local governments to have in place a plan for the future. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2016-2020 Goal 5: Effective leadership and governance Outcome 2: Effective strategy, planning and asset management Strategy 1: Develop and maintain the Community Strategic Plan that sets long term directions and goals for the future of the Shire


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PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS The actions and projects which are detailed in the Operational Plan 2016-2017are aligned with the Annual Budget 2016-2017 and the Long Term Financial Plan 2016-2026. SUSTAINABILITY IMPLICATIONS The Community Strategic Plan fosters an identification and integration of environmental protection, social advancement and economic prosperity which is enacted through the Corporate and Operational Plan. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council receives the Operational Plan 2016-2017 (Attachment 1). ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Operational Plan 2016-2017 RECOMMENDATION / COUNCIL DECISION CR HAYNES, CR SMART OM2016/159 That Council receives the Operational Plan 2016-2017 (Attachment 1).

CARRIED 7/0


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12. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN

Nil

13. MOTIONS FOR CONSIDERATION AT NEXT MEETING

Nil 14. NEW BUSINESS OF AN URGENT NATURE

14.1. Members

Nil

14.2. CEO

14.2.1 Extension of Licence Agreement for Arts Margaret River Inc.

The CEO informed the meeting that the item be dealt with as urgent business to quickly reduce any uncertainty and to give Arts Margaret River Inc. a clear indication of the future. MOTION / COUNCIL DECISION CR TOWNSHEND, CR KENNAUGH OM2016/160 That Council approve Item 14.2.1 Extension of Licence Agreement for Arts Margaret River as new business of an urgent nature.

CARRIED

Cr Smart addressed the meeting asking if anyone was a member of Arts Margaret River. In answer to Cr Smart’s question the CEO informed the meeting that he is a member of Arts Margaret River. Cr Townshend informed the meeting that she is a member and volunteer of Arts Margaret River. Cr Lane informed the meeting that he is a member of Arts Margaret River. Cr Haynes informed the meeting that she is a member of Arts Margaret River but would debate and vote fairly. Cr Earl informed the meeting that he is a member of Arts Margaret River but is able to set that aside and vote impartially. Having previously considered the extent of their involvement as members of Arts Margaret River to be of a low level and on an occasional basis neither the CEO, Shire President nor Crs Lane, Townshend and Haynes make disclosures of interest affecting impartiality. The position of the CEO, Shire President and Crs Lane, Haynes and Townsend in relation to disclosures of interest affecting impartiality in relation to matters affecting Arts Margaret River before Council is recorded in the minutes as follows: The CEO does not disclose an interest affecting impartiality in relation to providing advice as he is not an office bearer or board member of Arts Margaret River, does not attend meetings and apart from attendance at functions in his official capacity as the CEO of the Shire only attends approximately three to five events per year as a family member with his wife. The Shire President does not disclose an interest affecting impartiality in relation to considering matters before Council as he is not an office bearer or board member of Arts Margaret River, does not attend meetings and apart from attendance at functions in his official capacity as the President of the Shire only attends occasional events.


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Councillors Lane, Townshend and Haynes do not disclose interests affecting impartiality as they are not board members and apart from attendance at occasional functions in their official capacities as Shire Councillors they only attend occasional events.

(NB: For further information on Disclosure of Interests in relation to membership of associations see the Local Government Operational Guidelines Number 1 January 2011 page 7 available on the Department of Local Government and Communities website).

PROCEDURAL MOTION / COUNCIL DECISION CR HASTIE, CR TOWNSHEND / OM2016/161 That the meeting go behind closed doors.

CARRIED 7/0

A meeting of Council may exclude members of the public when it relates to a contract that may be entered into or when legal advice has been obtained or may be obtained. 7.20pm members of the public, press and staff, excluding CEO and Minute Secretary, left Chambers. PROCEDURAL MOTION / COUNCIL DECISION CR HASTIE, CR SMART OM2016/162 That the meeting come out from behind closed doors

CARRIED 7/0 7.29pm Director Infrastructure Services, Director Corporate and Community Development, Acting Director Sustainable Development and Manager Planning and Development re-entered Chambers. 14.2.1 EXTENSION OF LICENCE AGREEMENT FOR ARTS MARGARET RIVER INC. LOCATION/ADDRESS Margaret River Cultural Centre, 51 Wallcliffe Road, Margaret River APPLICANT/LANDOWNER Arts Margaret River Inc. FILE REFERENCE VTL/310 REPORT AUTHOR Gary Evershed, Chief Executive Officer AUTHORISING OFFICER Gary Evershed, Chief Executive Officer

At the last meeting of the Council the following motion was carried

PRIMARY MOTION / COUNCIL DECISION CR TOWNSHEND, CR LANE OM2016/135 That Council: 1. Congratulates Arts Margaret River Incorporated on their excellent management of

the Margaret River Cultural Centre over the past two and a half years under the Licence Agreement;

2. Grants Arts Margaret River Inc a further extension of three years commencing on 1 January, 2017 and expiring on 31 December, 2019; and

3. Updates the Licence Agreement to include a further provision for an extension of three years from 1 January 2020 to 31 December 2022 subject to compliance with the tender regulations included in the Local Government (Functions and General) Regulations 1996.


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Further advice has been received as follows: 1. An independent market analysis by Mr Joel McGuiness of JAM Creative who has an

extensive industry experience in the management of performing arts centres, 2. Confidential “in house” legal advice from the Shire’s Principal Legal Officer, and 3. Feedback from the Shire’s Procurement Officer.

The situation is complicated by the fact that the Cultural Centre will receive a multi-million dollar redevelopment and upgrading in the order of $2-$8.5 million in the next 2 years depending on the success of funding applications. The intention has always been that once completed a new tender would be required to determine the best operator for the enhanced facility based on the fact that Arts Margaret River’s contract can be terminated upon 1 years notice. The conclusion drawn from the additional advice received is that:

1. Although we can presume that Arts Margaret River Inc. may continue to be the only supplier capable of undertaking this position in the future, we cannot say this with 100% certainty in 3 years’ time and in order to err on the side of caution and be prudent, the market would need to be reviewed and retested nearer to that time through a competitive process

2. The Cultural Centre redevelopment will be such that it significantly changes the scope of work for the management of the centre and the licensed area. Essentially this would mean a change to the scope of the contract which is not permitted under the Regulations.

3. The existing contract does not provide for this extension or have an intention to extend beyond 2019.

4. The conclusion is therefore not to proceed with a further 3 year extension. Given that Arts Margaret River would require 12 months’ notice if they were not the successful tenderer then tenders would need to be called in 2018 more than 1 year in advance of the expiry of the contract. Additionally should the Cultural Centre be redeveloped earlier than the expiry date which is highly likely then it would be appropriate to call for and award a tender more than one year before the estimated completion date to allow the successful tenderer to commence in the redeveloped facilities whether that be Arts Margaret River or a new supplier. It is important therefore to provide clear advice to Arts Margaret River on Council’s future intentions by the inclusion of a fourth resolution below. The longer term contract is to provide for the operator to make advance booking and to plan a long term program and sponsorship arrangements. RECOMMENDATION That Council: 1. Notes the advice provided by Jam Creative confirming that Arts Margaret River Inc are currently

the only likely supplier of management services for the Margaret River Cultural Centre; 2. Reaffirms its decision of 13 July (OM2016/135 part 2) to grant Arts Margaret River Inc a further

extension of three years commencing on 1 January, 2017 and expiring on 31 December, 2019; 3. Resolves not to proceed with the updating of the current license agreement to include a further

provision for an extension of three years from 1 January 2020 to 31 December 2022 (OM2016/135 part 3) due to the possibility of a new supplier entering the market in three years particularly following the scheduled major redevelopment of the Cultural Centre which is planned to be undertaken over the next two years, and

4. Resolves to call for public tenders for the management of the Cultural Centre before 31 December 2018 or prior to one year before the estimated completion time of the redevelopment of the Cultural Centre whichever is sooner for a contract period of five years with provision for a five year extension and to advise Arts Margaret River accordingly.

ATTACHMENTS 1. Contract Management Advice from JAM Creative 2. CONFIDENTIAL Legal Memo RECOMMENDATION / COUNCIL DECISION CR TOWNSHEND, CR LANE OM2016/163 That Council:


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1. Notes the advice provided by Jam Creative confirming that Arts Margaret River Inc are currently the only likely supplier of management services for the Margaret River Cultural Centre;

2. Reaffirms its decision of 13 July (OM2016/135 part 2) to grant Arts Margaret River Inc a further extension of three years commencing on 1 January, 2017 and expiring on 31 December, 2019;

3. Resolves not to proceed with the updating of the current license agreement to include a further provision for an extension of three years from 1 January 2020 to 31 December 2022 (OM2016/135 part 3) due to the possibility of a new supplier entering the market in three years particularly following the scheduled major redevelopment of the Cultural Centre which is planned to be undertaken over the next two years, and

4. Resolves to call for public tenders for the management of the Cultural Centre before 31 December 2018 or prior to one year before the estimated completion time of the redevelopment of the Cultural Centre whichever is sooner for a contract period of five years with provision for a five year extension and to advise Arts Margaret River accordingly.

CARRIED 7/0 15. CONFIDENTIAL BUSINESS

Nil

16. CLOSURE OF MEETING

The Shire President thanked all in attendance and declared the meeting closed at 7.34pm

Documents

Ordinary Council - Shire of Augusta-Margaret River · Mr Amanda Smith of Margaret River, asked the following question at the 13 July 2016 Ordinary Meeting of Council, in relation