PRESENT: APOLOGIES: DISCLOSURE OF INTERESTS CALENDAR …€¦ · Shire Council held in the Council Chambers, Market Street, Balranald on Tuesday 18th December 2018 GENERAL MANAGER’S

Balranald Shire Council

Agenda – Ordinary Meeting – Tuesday 18th December 2018 ……………………………………………………………………………………………………………

This is Page 1 of the Business Paper of the Ordinary Monthly Meeting of Balranald Shire Council held in the Council Chambers, Market Street, Balranald on Tuesday 18th December 2018

PRESENT: APOLOGIES: DISCLOSURE OF INTERESTS

CALENDAR OF EVENTS

Calendar of Events

December – January - February

December

18 Council Meeting @ 4pm

21 Office Closes @ 2pm

31 New Year’s Eve & Fire Works Display – Greenham Park

January

2 Office Opens @ 8.30am

2 Service NSW Opens @ 9.30am

8 Special Council Meeting – time to be determined

26 Australia Day – River Bend

February

5 Euston Beautification & Tourism Management Committee Meeting @ 9am

5 Tourism Committee Meeting @ 5pm

6 Balranald Beautification Committee Meeting @ 7pm

11 Hostel Committee Meeting @ @ 5pm

19 Council Meeting @ 5pm




CONFIRMATION OF MINUTES Recommendation: That: “The minutes of the Ordinary Meeting of Council held on Tuesday 27th November 2018 copies having previously been circulated to each Councillor be taken as read and confirmed.”

PRESENTATION/DELEGATIONS Auditors – Dominika Ryan

MAYORAL MINUTE/REPORT COMMITTEE REPORTS FOR ADOPTION DELEGATES REPORTS NOTICES OF MOTION/RESCISSION Nil




GENERAL MANAGER’S REPORTS (Incorporating all Staff Reports) PART A - ITEMS REQUIRING DECISION

Corporate & Community Services

Item C – 1 PREPARATION OF BALRANALD SHIRE COUNCIL 2017-18

FINANCIAL STATEMENTS

File number: D18.11827 Reporting Officer: Director of Corporate & Community Development Operational Plan Objective: Pillar 6: Our Leadership – Provide good governance, prudent financial management and effective support services for all its activities. Officer Recommendation:

That Council

1. Note and receive the completed audited 2017-18 financial statements;

2. Note and receive the ‘Report on the Conduct of the Audit’ as issued by

the Audit Office of NSW;

3. Confirm that submissions on the financial statements will be received up

to the close of business 11 January 2019;

4. Assign responsibility for implementing the action plan from the

Management Letter, once received from the Audit Office of NSW, to the

General Manager or his/her delegate.

Purpose of Report This report provides Council with an update on the status of Council’s 2017-18 financial statements. Report The 2017-18 audited Financial Statements are key Council documents and are required to be made publicly available. Council’s Finance Manager received the audited statements; including audit opinion reports, on the 7 December 2018 and the full set of 2017-18 financial statements have been submitted to the Office of Local Government on the 10 December 2018.




As per Section 418, Council has provided public notice of the intention to present the 2017/18 financial statements to the 18 December 2018 council meeting through Council’s website, Facebook and print media. Council is required to provide at least seven (7) days public notice of the presentation of the audited statements. As per Section 420 of the NSW Local Government Act 1993, any person must be allowed to make submission to Council on the financial statements and any submission must be in writing and lodge with Council within a minimum seven (7) days after the date on which the audited financial statements are presented to the public. Council should allow submissions to be received by close of business on the 11 January 2019 to allow for Christmas and New Year’s close down period. In addition, the NSW Audit Office provides the Council with a Management Letter, which outlines the matters of governance interest identified during the audit, unresolved matters identified during previous audits and matters required to be communicated under Australian Auditing Standards. As at the date of preparing this report, the 2017-18 Management Letter was not yet supplied to Council. If report becomes available prior to the December 2018 meeting, it will be supplied to councillors via email as a late inclusion to the meeting business papers. Otherwise, a report will be provided to Council at the February 2019 meeting outlining issues identified during the audit. Council’s audit committee meeting on the 6 December 2018 included discussion on the 2017-18 financial statements and M/s Dominika Ryan of the Audit Office of NSW was available by Skype to discuss the statements and the findings of the audit. Councillors will be provided with an electronic copy of the 2017-18 financial statements with the December 2018 business papers.

Financial Implication Nil

Legislative Implication Sections 418 & 420 of the NSW Local

Government Act 1993

Policy Implication Nil

Attachments Report on the Conduct of the Audit



















General Manager’s Reports Item G - 1 WESTERN DIVISION CONFERENCE Reporting Officer: General Manager Michael Kitzelmann

Operational Plan Objective: Pillar Six: Our Leadership – A community that values and fosters leadership, lifelong learning, innovation and good governance. Officer Recommendation: That Council attend the Western Division Conference and nominate the delegates to attend.

Purpose of report To advise Council of forthcoming Western Division Conferences which Council is usually represented at. Report The Western Division Annual Conference is scheduled for 24 – 26 February 2019. The conference and associated events are being held in Bourke. Registration has been set at $450 or $400 for those registering prior to 21st January 2019.

Financial Implication Councils Western Division Conference budget is $6,000 for 2018/2019.

Legislative Implication Nil

Policy Implication In accordance with Council’s Payment of Expenses and Provision of Facilities for Mayor and Councillors

Attachments Nil




Item G - 2 GENERAL MANAGERS LEAVE & ACTING GENERAL MANAGER

APPOINTMENT File number: D18.11823 Reporting Officer: Michael Kitzelmann, General Manager Operational Plan Objective: Pillar One: Our People – a community that is proactive, engaged, inclusive and connected Officer Recommendation: That Council appoint Terri Bilske as Acting General Manager for the period 21 December 2018 to 21 January 2019 inclusive

Purpose of Report To inform Council of the General Managers upcoming leave and the need to appoint an Acting General Manager. Report The General Manager, Michael Kitzelmann has been verbally approved annual leave from 21 December 2018 to 21 January 2019 inclusive, by the Mayor, and will be away from Balranald. While the General Manager is on leave it is suggested that Terri Bilske, Director Corporate and Community Services, be appointed as Acting General Manager.

Financial Implication N/A

Legislative Implication Section 351 of the Local Government Act 1993

Policy Implication N/A

Attachments N/A




Item G - 3 WHS ACTION PLAN Reporting Officer: General Manager Michael Kitzelmann Operational Plan Objective: Pillar 6: Our Leadership – Provide good governance, prudent financial management and effective support services for all its activities. Officer Recommendation:

5. 1. To adopt combined WHS Action Plans.

Purpose of Report To provide Council with an amalgamated document which includes WHS Review from Keith Coates LLB, Grad Dip Leg Prac (Internal Auditor) and WHS Action Plan from (State Cover). Report Currently, Council receives a WHS Review from our Internal Auditor (Keith Coates) along with a WHS Action Plan from State Cover. Items are duplicated in both reports and it has been suggested during the recent quarterly Audit Committee meeting on 6th December that these reports could be streamlined into one report.


Legislative Implication WHS – Statutory and regulatory Regime within NSW Work Health & Safety Action 2011(the Act) and the Work Health & Safety Regulation 2017 (the Regulation)


Attachments WHS Review (Internal Auditor) WHS Action Plan (State Cover) Combined – WHS Action Plan







Contents Page

Background ............................................................................................................................... 2

Scope and Approach…………………………………………………………………………………………………. 2

Report…………………………………………………………… .. ………………………………………………………..2

Summary of Recommendations .............................................................................. …...….18




Executive Summary

Overall Balranald Shire Councils level of compliance with the Workplace Health and Safety

Act 2012 is limited in completeness. At best it can be considered that rudimentary attempts

are being made to comply however, they fall short of meeting minimum core compliance

obligations. A key component of an effective WHS Management System is an overarching

Work Health & Safety Policy which demonstrates Council’s commitment to WHS. The Work

Health & Safety Policy should be supported by a comprehensive system of procedures that

describe how the elements of the WHS Management System will be implemented and

operate.

Balranald Shire Council (BSC) does not currently have a formal WHS system or plan that

addresses the elements prescribed. WHS within BSC has been managed on an ad-hoc basis

for a number of years. A WHS Policy exists and a small number of procedures have been

drafted (such as reporting workplace incidents).

The culture within Council is conducive with the implementation of a appropriately designed

and organisationally relevant WH&S System however, the on ground actions have not

resulted in proper adoption of the guidelines or Act.




Table of Recommendations (22)

(Recommendation 1) - That BSC Executive and Authorised Officers implement a Work Place

Health and Safety System.

(Recommendation 2) - That BSC Executive and Authorised Officers review the current WHS

Policy and ensure that it complies with Legislative and Regulatory requirements. In addition,

this review should include cross referencing with the WH&S System to ensure completeness

and compliance.

(Recommendation 3) - That BSC Executive and Authorised Officers develop and implement

a WH&S Action Plan. The Action Plan should be completed as a priority as it is the lynchpin

in ensuring the timely completion of the WHS System.

(Recommendation 4) - The proposed WHS System expressly states the requirement for, and

state when workplace consultation is required. Furthermore, adequate documentation

demonstrating the process for consultation should follow a defined process.

(Recommendation 5) - That Safe Method Working Statements (SWMs) and Safe Operating

Procedures (SOPs) are read, comprehended and signed by the staff utilising these critical

safety controls.

(Recommendation 6) – That an inspection process be formalised within the proposed WHS System. All operational areas should be included with checklists being developed to aid in the conduct of inspections (including hazard/risk identification). (Recommendation 7) – That the accountable officer ensures that the SWMs and SOPs are located in a central register; copies are to be made available in the appropriate work areas to enable streamlined work practices. Council should ensure that a central register is created allowing access to the safety controls for all staff. (Recommendation 8) - Random reviews and spot checks should be conducted by management at work sites to confirm compliance with PPE requirements. This requirement should be formalised as a process within the new WHS System. (Recommendation 9) - A formalised process or control that stipulates periodic review of SWMS or SOPs is developed. BSC must formalise a process within its new WHS System that prescribes mandatory reviewing of SWMS within a mandatory timeframe. I would suggest every two years.

(Recommendation 10) – That a formal process that stipulates mandatory reviews when one of

the regulatory triggers occurs be developed to ensure compliance and completeness of

SWMS. BSC must formalise the process within its new WHS System to ensure the

requirements of the Regulation are met.




(Recommendation 11) - When reviewing SWMs and SOPS, or designing new safety controls, BSC should ensure that the applicable Code of Practice is utilised to provide guidance with the elimination or mitigation of relevant WHS risks. (Recommendation 12) - That BSC undertake noise exposure testing within its workplaces as a

matter of urgency.

(Recommendation 13) - In accordance with section 420(1) of the Act, BSC must, as a matter

of urgency, put in place suitable SWMs or SOPs to prevent or mitigate risks surrounding

asbestos work. BSC should utilise the two SafeWork Model Codes (“How to Manage &

Control Asbestos in the Workplace” and “How to Safely Remove Asbestos”) when designing

its asbestos SWMs or SOPs.

(Recommendation 14) - That BSC Executive and Authorised Officers develop and Asbestos

Management Plan is developed and implemented as a matter of urgency. Regulation clause

429 states that Council must have written and up to date asbestos management plans for its

workplaces. The plans should contain the relevant asbestos SWM or SOP, procedures for

dealing with incidents or emergencies, training for workers and details as to the identification

of asbestos within the workplace.

(Recommendation 15) - That BSC Executive and Authorised Officers comply with the

Regulation Clause 425 which states that Council must have an asbestos register which states

where asbestos is present or likely to be present at its workplaces and all buildings and

infrastructure under its control. Council must have the identification process undertaken by a

competent person (Clause 422 of the Regulation). I am advised that BSC does not have an

asbestos register and no formal identification process has been undertaken. Council must

ensure that the asbestos identification process is undertaken and a suitable asbestos register is

designed as a matter of urgency.

(Recommendation 16) - That BSC Executive and Authorised Officers adopt, The Office of

Local Government (the OLG) Model Asbestos Policy 2012 (updated in 2015) BSC must

adopt and implement the OLG Model Asbestos Policy as a matter of urgency.

(Recommendation 17) - That BSC undertake health monitoring as a matter of urgency. Furthermore, the NSW

Dust Disease Board should be contacted to provide a mobile testing service to Council.

(Recommendation 18) - That suitably accredited confined space training is provided to all at-

risk employees. In addition, a documented risk assessment must be recorded which

demonstrates how the risks are properly identified and managed via the relevant SWM.

(Recommendation 19) – That an operational training needs assessment be conducted for all

employees with the results of the assessment being utilised to inform the development of a

detailed training and development plan. Furthermore, specific focus should be placed on

identification and delivery of WH&S mandatory compliance and workplace specific training.

(Recommendation 20) - It is recommended that Council establish a staged implementation of

the proposed WH&S System. Priority should be placed on the development of an interim




Incident Reporting process that mirrors the Incident Reporting section of the proposed WHS

System.

(Recommendation 21) - That BSC Executive and Authorised Officers ensure all workplaces

have emergency plans implemented as soon as is practicable.

(Recommendation 22) – That BSC ensures that a suitable process is implemented that

confirms compliance with SWMS (pursuant to clause 300 of the Regulation) across all areas,

particularly where high risk construction is being conducted.

1 Background

1.1 Council’s General Manager has identified Work, Health and Safety (WHS) as presenting a significant risk to the organisation. Non-compliance with the legislative and regulatory requirements could result in significant fines and civil action against Balranald Shire Council (BSC) and its Senior Staff.

1.2 A review of the current system and relevant controls was approved by the BSC Audit, Risk and Management Committee.

2 Approach and Scope

2.1 This review was performed using the following: (a) Administrative review of the current policies, plans and processes, and

control systems against the relevant legislative and regulatory requirements. (b) Interviews with relevant Council staff.

2.2 The internal audit provided an overview of the relevant statutory regime and reviewed the current WHS Management System. A number of higher risk work activities were checked for compliance with the legislative requirements. Due to the limited time and resources there is insufficient time to review all WHS risks and their respective controls/treatments.

Report

3 WHS – Statutory and Regulatory Regime within NSW

3.1 Work Health and Safety within NSW is governed by the Work Health & Safety Act

2011 (the Act) and the Work Health & Safety Regulation 2017 (the Regulation). This

section provides an overview in regards to the main obligations as prescribed by the

Act & Regulations. BSC’s compliance with these statutory/regulatory requirements

(where relevant) will be canvassed throughout the report.




General WHS Duties & Duty of Care under the Act

3.2 Section 17 of the Act states:

A duty imposed on a person to ensure health and safety requires the person:

(a) to eliminate risks to health and safety, so far as is reasonably practicable,

and

(b) if it is not reasonably practicable to eliminate risks to health and safety, to

minimise those risks so far as is reasonably practicable.

3.3 Section 19 of the Act prescribes the primary duty of care an entity has to its staff and

others in relation to WHS;

(1) A person conducting a business or undertaking must ensure, so far as is

reasonably practicable, the health and safety of:

(a) workers engaged, or caused to be engaged by the person, and

(b) workers whose activities in carrying out work are influenced or directed

by the person, while the workers are at work in the business or undertaking.

(2) A person conducting a business or undertaking must ensure, so far as is

reasonably practicable, that the health and safety of other persons is not put at risk

from work carried out as part of the conduct of the business or undertaking.

3.4 Section 27 of the Act sets forth the duty of BSC “officers” who are staff members who

make, or participate in making, decisions that affect the whole, or a substantial part,

of the business or undertaking of a public authority (which within Local Government

would be the General Manager and Council Directors). Councillors are not “officers”

within this statutory definition.

3.5 Section 27 states inter alia:

(1) If a person conducting a business or undertaking has a duty or obligation under

this Act, an officer of the person conducting the business or undertaking must exercise

due diligence to ensure that the person conducting the business complies with that

duty or obligation.

(2) due diligence includes taking reasonable steps:

(a) to acquire and keep up-to-date knowledge of work health and safety

matters, and

(b) to gain an understanding of the nature of the operations of the business or

undertaking of the person conducting the business or undertaking and

generally of the hazards and risks associated with those operations, and

(c) to ensure that the person conducting the business or undertaking has

available for use, and uses, appropriate resources and processes to eliminate

or minimise risks to health and safety from work carried out as part of the

conduct of the business or undertaking, and

(d) to ensure that the person conducting the business or undertaking has

appropriate processes for receiving and considering information regarding

incidents, hazards and risks and responding in a timely way to that

information, and




(e) to ensure that the person conducting the business or undertaking has, and

implements, processes for complying with any duty or obligation of the person

conducting the business or undertaking under this Act.

(Note: “person” within the Act is defined as a legal entity including a public

authority such as a council).

3.6 As stated above, BSC’s General Manager and Directors are directly responsible for

ensuring that BSC is compliant with its WHS obligations. Operation of WHS Codes of Practice With NSW

4.1 A code of practice is a practical guide on how to comply with the legal duties under the Work Health and Safety (WHS) Act and Regulations.

4.2 The WHS Act provides for the approval, variation and revocation of codes of practice by the relevant Minister. SafeWork NSW is responsible for codes of practice within NSW.

4.3 An approved code of practice applies to anyone who has a duty of care in the

circumstances described in the code. Following a code of practice will achieve

compliance with the health and safety duties in the WHS Act, in relation to the subject

matter of the code.

4.4 Codes of practice have a special status because an approved code is automatically

admissible as evidence in court proceedings under the WHS Act and Regulations.

Courts may have regard to a code as evidence of what is known about a hazard, risk or

control and may rely on the code in determining what is reasonably practicable in the

circumstances to which the code relates1.

4.6 Therefore, council staff that are responsible for identifying hazards, managing and

controlling risks and designing controls to prevent and mitigate risks should be

utilising the information contained within the relevant Code of Practice. I will advise

throughout this report where any relevant SafeWork Code of Practice should be

utilised by BSC.

5 BSC’s WHS System

5.1 A key component of an effective WHS Management System is an overarching Work

Health & Safety Policy which demonstrates Council’s commitment to WHS. The

Work Health & Safety Policy should be supported by a comprehensive system of

procedures that describe how the elements of the WHS Management System will be

implemented and operate.

1 Safe Work Australia – Information Sheet; “Codes of Practice and Guidance Material”




5.2 The key elements of the WHS Management System (having regards to the relevant

Australian Standard - Occupational Health & Safety Management Systems AS/NZS

4801:2001) are:

I. Policy & Procedures – Having an overarching Health & Safety Policy. Having a

comprehensive system of procedures that describe how the elements of the WHS Management System will be implemented.

II. Planning - Having a formal process on how to identify and manage hazards through a risk management approach. Planning also considers ways to maintain abreast of changes to legislation and other aspects within the business and setting of performance objectives. WHS performance objectives could encompass things such as reductions in specified injuries/incidents or the sourcing and purchase of new equipment to reduce manual handling etc.

III. Implementation - Implementation of the WHS Management System requires established/formalised process for roles, responsibilities and authorities; implementation of relevant training; consultation and communication; documentation is accessible and current; hazards and incidents are being effectively managed; contractor management systems are in place and emergency management and response capability has effectively been implemented.

IV. Measuring and Monitoring - Having processes in place to measure, monitor and

evaluate its health and safety performance and to take corrective action where necessary. Establishing an inspection and testing regime to ensure that procedures are being followed, equipment is properly maintained, work environments are safe and regulatory requirements are being met. In addition, higher level processes such as audits and formal management reviews should be used to evaluate the effectiveness of the overall system. Regular reports should be prepared for senior management to provide information on any new incidents and progress against WHS targets.

(It should be noted that the Australian Standard is not mandatory, however, these elements are considered sound

practice within WHS Systems.)

5.3 BSC does not currently have a formal WHS system or plan that addresses the

elements prescribed at paragraph 5.2 above. WHS within BSC has been managed on

an ad-hoc basis for a number of years. A WHS Policy exists and a small number of

procedures have been drafted (such as reporting workplace incidents). However, the

present system does not have detailed processes that prescribe specific information or

instruction in relation to:

Identifying the staff member(s) responsible for carrying out the required

consultation with staff to identify workplace hazards/risks;

Identifying the staff member(s) who will be responsible for the design of the control or Safe Working Method Statements (SWMs) for specific tasks;

Identifying the staff member(s) who will be responsible for the implementation of the control;

The responsibility for implementing and identifying WHS training needs and refresher courses;

Specified triggers and timeframes for the review of hazards and controls;




A formalised risk management process (including workplace hazard identification and control implementation);

WHS document control procedures;

Referencing Codes of Practice and other guidance material and stating when they must be utilised;

Stating that reviews of hazards/controls are mandatory when any of the prescribed statutory/regulatory triggers occur.

Stating the requirements of health testing for certain hazards/activities.

Stating the requirements of general spot checks and mandatory testing of for activities such as High-Risk Construction Work.

Stating the requirements of noise level audits within certain workplaces.

5.4 The HR, Risk and WHS Officer (the WHS Officer) is currently working on a

comprehensive WHS Management System (the WHS System). I have been provided

with the draft working document, which covers the majority of the elements I have

raised above. I am advised that the WHS System will be completed within

approximately six months. Council must ensure that adequate resources are provided

to the WHS Officer to finalise and implement the WHS System. The WHS system

must bring together all related policies and procedures and be capable of guiding staff

and managers in carrying out all areas of the WHS function within BSC.

(Recommendation 1)

5.5 Council has an overarching WHS Policy, which was adopted in December 2015 and

last reviewed in February 2017. This Policy states inter alia Council’s commitment to

a safe working environment that protects its workers and encourages consultation with

workers in all matters affecting health and safety. It also references a risk management

approach to eliminate and mitigate risks within the workplace. The Policy should be

reviewed at the completion of the WHS System to ensure cross referencing with the

System and to expressly state that the WHS System must be utilised for all WHS

activities and actions.

(Recommendation 2)

5.6 The WHS Officer has commenced work on a WHS Action Plan. This Plan states the

elements of the WHS System and the individual processes to be undertaken. The

Action Plan further states the officers responsible for specific tasks and the proposed

completion dates. The Action Plan should be completed as a priority as it is the

lynchpin in ensuring the timely completion of the WHS System. To this end, I am

advised that it will be completed within approximately three months.

(Recommendation 3)

6 Consultation

6.1 Section 47 of the Act states inter alia:

(1) The person conducting a business or undertaking must, so far as is reasonably

practicable, consult, in accordance with this Division and the regulations, with




workers who carry out work for the business or undertaking who are, or are likely to

be, directly affected by a matter relating to work health or safety.

(2) If the person conducting the business or undertaking and the workers have

agreed to procedures for consultation, the consultation must be in accordance with

those procedures.

6.2 Section 48 of the Act states:

(1) Consultation under this Division requires:

(a) that relevant information about the matter is shared with workers, and

(b) that workers be given a reasonable opportunity:

(i) to express their views and to raise work health or safety issues in

relation to the matter, and

(ii) to contribute to the decision-making process relating to the matter,

and

(c) that the views of workers are taken into account by the person conducting

the business or undertaking, and

(d) that the workers consulted are advised of the outcome of the consultation

in a timely manner.

(2) If the workers are represented by a health and safety representative, the

consultation must involve that representative.

6.3 Section 49 of the Act states inter alia when consultation is required:

(a) when identifying hazards and assessing risks to health and safety arising

from the work carried out or to be carried out by the business or undertaking,

(b) when making decisions about ways to eliminate or minimise those risks,

6.4 Consultation is a legal requirement and an essential part of managing health and safety

risks. A safe workplace is more easily achieved when everyone involved in the work

communicates with each other to identify hazards and risks, communicates about any

health and safety concerns and works together to find solutions. This includes

cooperation between the people who manage or control the work and those who carry

out the work or who are affected by the work2.

6.5 As stated in section 49 of the Act (see above), consultation is required when

identifying hazards, assessing risks and deciding on measures to control those risks.

6.6 In deciding how to control risks, Council must consult with its workers who will be

affected by this decision. Consulting with the relevant workers assists in the

identification of hazards and assists in designing and implementing the most practical

and effective control measures.

6.7 The Consultation, Co-operation & Co-ordination Code of Practice (the Consultation

Code) states that consultation with workers and with other duty holders does not have

2 WHS Code of Practice; WHS Consultation, Co-operation & Co-ordination (2011)




to be documented unless specifically required under the WHS Regulations. However,

it is recommended that records are kept to demonstrate compliance with the statutory

consultation requirements. Records of consultation may also assist the risk

management process and make disputes less likely. The Consultation Code states that

the records should include any outcomes of discussions.

6.8 Other than a brief statement within the WHS Policy, there is no formal process

outlining the legislative consultation requirement (in WHS management) within BSC.

The proposed WHS System must expressly state the requirement and state when

consultation is required and keep adequate documentation demonstrating the process.

(Recommendation 4)

6.9 At present there is some evidence of matters being discussed with staff at toolbox

meetings and during annual WHS Safety Days. There is also a WHS Committee that

addresses WHS concerns and issues within BSC. However, the Committee, and staff

representation within it, does not of itself adequately cover staff consultation pursuant

to the Act.

6.10 I note that Safe Method Working Statements (SWMs) and Safe Operating Procedures

(SOPs) are signed off by the staff utilising these safety controls. However, the safety

controls should be made in consultation with staff when the actual risk identification

process is undertaken. Further, the SWMs and SOPs primary function is to eliminate

or minimise the risk posed by the hazard and staff need to be consulted (pursuant to

section 49 of the Act) in regards to how the risk will be treated when the SWMs or

SOPs are designed and drafted and not merely be provided with the safety control at

the end of the process and be told to comply with it.

(Recommendation 5)

7 WHS Risk Management Identification of Risks 7.1 Council; in managing risks to health and safety, must identify reasonably foreseeable

hazards that could give rise to risks to health and safety (Clause 34 of the Regulation).

7.2 Council in managing risks to health safety must eliminate risks so far as is reasonably

practicable and if it is not possible to eliminate the risks; minimise those risks so far as is reasonably practicable (Clause 35 of the Regulation).

7.3 BSC conducts regular inspections of its workplaces. Hazard/risk identification forms

part of this process. However, as stated above, risk identification needs to be undertaken in consultation with staff. At present the risk identification is being undertaken by supervisors and individual officers without due consultation.




7.4 There is no formal hazard/risk identification or risk assessment process. The requirements of the SafeWork NSW’s “How to Manage Work Health and Safety Risks” Code of Practice is mirrored within the draft WHS Management System. The Code of Practice sets forth the 4 steps of risk management as:

i. Identify Hazards ii. Assess Risks

iii. Control Risks iv. Review Control Measures.

7.5 The Code of Practice also provides a risk matrix to be used for WHS risk assessments. The Draft WHS System prescribes the use of the Matrix for all risk assessments. 7.6 As stated above, Council must ensure that adequate resources are provided to the

WHS Officer to finalise and implement the WHS System as soon as is practicable within the six-month timeframe. Further, the inspection process should be formalised within the proposed WHS System. All operational areas should be included and checklists for inspections (including hazard/risk identification) should be designed and contain a sign off sheet to demonstrate consultation with relevant staff during the hazard/risk identification phase.

(Recommendation 6) Control of Risks 7.7 If a risk cannot be eliminated; specified controls must be created and implemented

to minimise the risk by doing one or more of the following:

substituting (wholly or partly) the hazard giving rise to the risk with something that gives rise to a lesser risk,

isolating the hazard from any person exposed to it,

implementing engineering controls (Clause 36 of the Regulation). 7.8 If a risk then remains, Council must minimise the remaining risk, so far as is

reasonably practicable, by implementing administrative controls and if any risk remains after this action and minimise the residual risk by the provision of suitable personal protective equipment (Clause 36 of the Regulation).

7.9 A combination of any of the controls set out in Clause 36 of the Regulation may be

used to minimise risks if one control is not sufficient. 7.10 In relation to controlling risks BSC uses SOPS and SWMS as its hazard/risk control

mechanism.




7.11 I have examined a number of SWMs and SOPs. They state the identified risk/hazard and then stipulate the control mechanism used to prevent or mitigate the risk in question. The hierarchy of controls (Regulation Clause 33) appears to be appropriately utilised in these safety controls.

7.12 The SWMs and SOPs are not located in a central register, they are housed in the

various Council areas of operation. Council should ensure that a central register is created allowing access to the safety controls for all staff.

(Recommendation 7) 7.13 Pursuant to clause 36 of the Regulation, personal protective equipment (PPE) is

provided to all staff where their duties require this form of hazard risk control. 7.14 I would like to see some random reviews and spot checks conducted by management

at work sites to confirm compliance with PPE requirements. This requirement should be formalised as a process within the new WHS System.

(Recommendation 8) Maintenance & Review of Control Measures 7.15 Council must ensure that its controls to eliminate or minimise risks to health and

safety are maintained so that they remain effective, fit for purpose, suitable for the nature and duration of the relevant work and that they are used correctly (Clause 37 of the Regulation).

7.16 Council must review and as necessary revise control measures implemented to

maintain, so far as is reasonably practicable, a work environment that is without risks to health or safety (Clause 38 of the Regulation).

7.17 Thus, Council must review its controls on a regular basis to ensure the effectiveness

of the control in question and where necessary revise it. There are also a number of circumstances expressly stated in the Regulation that trigger a mandatory review of a control. These triggers include:

the control measure does not control the risk it was implemented to control so far as is reasonably practicable,

a change at the workplace that is likely to give rise to a new or different risk to health or safety that the measure may not effectively control (includes a change to the work process or procedure, work environment)

a new relevant hazard or risk is identified, the results of consultation indicate that a review is necessary,

a health and safety representative requests a review.




7.18 BSC does not have a formalised process or control that stipulates periodic review of SWMS or SOPs. On reviewing a number of SWMS and SOPs it appears that a large percentage have not been reviewed since 2014. BSC must formalise a process within its new WHS System that prescribes mandatory reviewing of SWMS within a mandatory timeframe. I would suggest every two years.

(Recommendation 9)

7.24 In regards to the regulatory triggers for reviewing a SWMS/control (incidents, new

work processes etc.) evidence demonstrates that BSC complies with the Regulation.

However, there is no formal process that stipulates mandatory reviews when one of

the regulatory triggers occurs. BSC must formalise the process within its new WHS

System to ensure the requirements of the Regulation are met.

(Recommendation 10)

7.25 When reviewing SWMs and SOPS, or designing new safety controls, Council’s HR, Risk and WHS Officer should ensure that the applicable Code of Practice (where one is available for the risk/activity in question) is utilised to provide guidance with the elimination or mitigation of relevant WHS risks.

(Recommendation 11)

8 Specific Activities/Hazards/Risks expressly identified within the WHS

Regulation.

8.1 BSC has a statutory duty to eliminate risks to health and safety so far as is reasonably

practicable and if not reasonably practicable to eliminate risks to health and safety, to

minimise those risks so far as reasonably practicable3.

8.2 To comply with this statutory requirement BSC must identify potential risks and

hazards within its workplaces. The Regulation also expressly identifies a number of

risks and hazards that BSC must assess and manage if the hazard is relevant to a BSC

workplace or work activity.

8.3 Chapter 4 of the Regulation identifies “Hazardous Work” such as Noise, Confined

Spaces, Hazardous Manual Tasks and Falls. Other activities and hazards are also

identified within the Regulation such as the Management of Plant, High Risk

Construction Work, Hazardous Chemicals and Asbestos.

8.6 I will now review a sample of hazardous work risks and their management processes.

3 Section 17 Work Health & Safety Act 2011




Noise

8.7 Pursuant to clause 57(1) of the Regulation, a person (a legal entity such as BSC)

conducting a business or undertaking at a workplace must ensure that the noise that a

worker is exposed to at the workplace does not exceed the exposure standard for

noise. Failure to do this may result in a maximum fine of $30,000.

8.8 Clause 56 of the Regulation defines the exposure standard for noise as:

(1) In this Regulation, exposure standard for noise, in relation to a person, means:

(a) LAeq,8h of 85 dB(A), or

(b) LC,peak of 140 dB(C).

(2) In this clause:

LAeq,8h means the eight-hour equivalent continuous A-weighted sound pressure

level in decibels (dB(A)) referenced to 20 micropascals, determined in

accordance with AS/NZS 1269.1:2005 (Occupational noise management—

Measurement and assessment of noise immission and exposure).

LC,peak means the C-weighted peak sound pressure level in decibels (dB(C))

referenced to 20 micropascals, determined in accordance with AS/NZS

1269.1:2005 (Occupational noise management—Measurement and assessment

of noise emission and exposure).

8.9 Therefore, testing must be carried out at workplaces (where noise is determined to be

a risk or hazard) to determine whether workers are exposed to noise that exceeds the

regulatory exposure standards.

8.10 I am advised that BSC has not carried out testing in its workplaces to determine if the

exposure standard is being breached.

8.11. Therefore, as BSC has failed to have the testing carried out; I raise the following

points, The current noise levels may exceed the ability of the current controls (including

PPE).

BSC workers may currently be exposed to noise levels resulting in long-term loss of hearing.

BSC is leaving itself exposed to Fines and civil action for failing in its duty of care to its workers.

8.15 Having regards to worker’s health and its exposure to legal action I strongly

recommend that BSC has noise exposure testing conducted within its workplaces as a

matter of urgency.

(Recommendation 12)




8.16 BSC is also required under Regulation Clause 58 to have audiometric testing of its

staff conducted. I note that BSC is fulfilling this requirement. This obviously does not

prove beyond a reasonable doubt that all current controls are adequate. The fact that

hearing loss can occur over long periods of time and that there may have been

possible changes in environments and procedures changing exposure patterns and that

Council has no proof of current noise levels makes it imperative that the proper testing

of its work sites is carried out as stated above.

Asbestos

8.17 Clause 420 (1) of the Regulation states inter alia:

A person conducting a business or undertaking at a workplace must ensure that:

(a) exposure of a person at the workplace to airborne asbestos is eliminated so

far as is reasonably practicable, and

(b) if it not reasonably practicable to eliminate exposure to airborne

asbestos—exposure is minimised so far as is reasonably practicable.

8.18 BSC does not currently have SWMs or SOPs relating to asbestos work. I am advised Council currently has staff members who are required to cut asbestos cement (AC) Pipe and remove

asbestos. Obviously cutting and disturbing asbestos during the removal process may potentially expose

staff to airborne asbestos risks.

8.19 As no safety control has been implemented for asbestos work; Council cannot

demonstrate that it is fulfilling the requirement of Regulation clause 420(1) above.

Therefore, Council could be exposing its workers to potential harm and also exposing

itself to fines and civil action for not fulfilling its duty of care. The fines surrounding

breaches of the Regulation range from $18,000 per offence to $30,000 per offence.

Therefore, BSC must, as a matter of urgency, put in place suitable SWMs or SOPs to

prevent or mitigate risks surrounding asbestos work. BSC should utilise the two

SafeWork Model Codes (“How to Manage & Control Asbestos in the Workplace” and

“How to Safely Remove Asbestos”) when designing its asbestos SWMs or SOPs.

(Recommendation 13)

8.20 Regulation clause 429 states that Council must have written and up to date asbestos

management plans for its workplaces. The plans should contain the relevant asbestos

SWM or SOP, procedures for dealing with incidents or emergencies, training for

workers and details as to the identification of asbestos within the workplace. BSC

does not have an asbestos management plan for any of its workplaces. BSC must

design and implement asbestos management plans as a matter of urgency.

(Recommendation 14)




8.21 Regulation Clause 425 states that Council must have an asbestos register which states

where asbestos is present or likely to be present at its workplaces and all buildings and

infrastructure under its control. Council must have the identification process

undertaken by a competent person (Clause 422 of the Regulation). I am advised that

BSC does not have an asbestos register and no formal identification process has been

undertaken. Council must ensure that the asbestos identification process is undertaken

and a suitable asbestos register is designed as a matter of urgency.

(Recommendation 15)

8.22 Further, the Office of Local Government (the OLG) prepared a Model Asbestos

Policy in 2012 (updated in 2015) and made it mandatory for all Councils within NSW

to adopt the Model Policy. I am advised that BSC has never adopted the Model

Policy. BSC must adopt and implement the OLG Model Asbestos Policy as a matter

of urgency.

(Recommendation 16)

8.23 Council is currently leaving its workers exposed to injury and harm and leaving itself

exposed to legal action and fines and direct action by the OLG on failing to adopt and

implement a prescribed Model Policy.

Health Monitoring – Asbestos

8.24 Clause 435 of the Regulation states:

(1) A person conducting a business or undertaking must ensure that health

monitoring is provided, in accordance with clause 436, to a worker carrying out

work for the business or undertaking if the worker is:

(a) carrying out licensed asbestos removal work at a workplace and is at risk of

exposure to asbestos when carrying out the work, or

(b) is carrying out other ongoing asbestos removal work or asbestos-related

work and is at risk of exposure to asbestos when carrying out the work.

(2) For the purposes of subclause (1) (a), the person must ensure that the health

monitoring of the worker commences before the worker carries out licensed

asbestos removal work.

(3) The person must ensure that the worker is informed of any health monitoring

requirements before the worker carries out any work that may expose the worker

to asbestos.

Maximum penalty:

(a) in the case of an individual—$6,000, or

(b) in the case of a body corporate—$30,000.

8.25 I am advised that BSC has a number of staff members carrying out asbestos related

work. Yet, BSC does not conduct health monitoring. BSC has not advised workers of the health monitoring requirements before undertaking work that may expose the worker to asbestos.




8.26 Thus, BSC is in breach of clause 435 of the Regulation. BSC must ensure that health monitoring is provided as a matter of urgency. To that end the NSW Dust Disease Board, can be contacted to provide a mobile testing service to Council. (Recommendation 17)

Confined Spaces

8.27 Clause 66 (1) of the Regulation states inter alia:

A person conducting a business or undertaking must manage, in accordance with Part

3.1, risks to health and safety associated with a confined space at a workplace

including risks associated with entering, working in, on or in the vicinity of the

confined space (including a risk of a person inadvertently entering the confined

space).

8.28 BSC has a well-designed SWM for all confined space work. The SWM was reviewed

and updated in 2018. Confined Space Entry Permits appear to be made in compliance

with the Regulation.

8.29 My only recommendation, in relation to confined space WHS management, is that a

documented risk assessment is kept which demonstrates how the risks are properly

identified and managed via the relevant SWM.

(Recommendation 18)

9 Training

9.1 BSC has an excellent training plan relating to outdoor staff needs and requirements. It

sets forth all mandatory WHS training for each position within the outdoor structure.

It states when mandatory training certification expires, the dates completed and also

lists desired training for each position.

9.2 However, the training plan has not been completed for indoor staff. BSC should

ensure that a suitable plan for indoor staff is completed and implemented as soon as is

practicable.

(Recommendation 19)

10 Reporting Incidents

10.1 Council’s has an Accident, Incident, Near Miss Guideline and Incident Reporting

Form. Incidents must be reported within defined timeframes to the WHS Officer. 10.2 However, the Guideline does not cover mandatory reporting for specified incidents

and injuries to SafeWork NSW. Nor does it prescribe how data concerning accidents and incidents must be kept and reported to the Senior Management Team. The proposed WHS System contains a very well-structured reporting process. It also prescribes the mandatory incidents that must be reported to SafeWork NSW and




provides guidance on properly investigating accident and incidents and preserving sites for external investigation as required.

10.3 The proposed WHS System also stipulates how data and statistics should be kept and

collated and reported to the Senior Management Team on a monthly basis to ensure such information leads to improved safety outcomes for BSC staff.

10.4 The implementation of the WHS System will bring the incident reporting process up to high standard. However, as this is some six months away from implementation, I recommend that Council puts in place an interim process that mirrors the Incident Reporting section of the proposed WHS System.

(Recommendation 20) 11 Emergency Plans 11.1 Clause 43 of the Regulation states inter alia:

(1) A person conducting a business or undertaking at a workplace must ensure that

an emergency plan is prepared for the workplace that provides for the following:

(a) emergency procedures, including:

(i) an effective response to an emergency, and

(ii) evacuation procedures, and

(iii) notifying emergency service organisations at the earliest

opportunity, and

(iv) medical treatment and assistance, and

(v) effective communication between the person authorised by the

person conducting the business or undertaking to coordinate the

emergency response and all persons at the workplace,

(b) testing of the emergency procedures, including the frequency of testing,

(c) information, training and instruction to relevant workers in relation to

implementing the emergency procedures.

(2) A person conducting a business or undertaking at a workplace must maintain the

emergency plan for the workplace so that it remains effective.

11.2 I am advised that BSC does not have emergency plans for its workplaces. As BSC does not comply with the regulatory requirements prescribed within clause 43 of the Regulation, BSC is leaving its workers exposed to safety risks and itself exposed to fines of up to $30,000.

11.3 As a matter of urgency BSC must ensure its workplaces have emergency plans

implemented as soon as is practicable. (Recommendation 21) 13 Assurance/ Spot checks- High Risk Construction

13.1 Clause 300 (1) of the Regulation states that:




A person conducting a business or undertaking that includes the carrying out of high

risk construction work must put in place arrangements for ensuring that high risk

construction work is carried out in accordance with the safe work method statement

for the work.

13.2 I am advised that the majority of high risk construction work falls under the BSC

Roads area of operations. I am advised that BSC is presently only conducting checks

to confirm compliance with relevant SWMS within this area on an ad hoc basis and

no formal requirement or process exists within BSC. BSC should ensure that a

suitable process is implemented that ensures compliance with SWMS (pursuant to

clause 300 of the Regulation) across all areas where high risk construction is being

conducted.

(Recommendation 22)

14 Driver

14.1 Based on the evidence provided to me during this review is it apparent that the WHS

Management within BSC has been operating at a very low standard for a number of years. Breaches of statute and regulation is common place.

14.2 A lack of a driver within Council, to achieve legislative compliance and to have

suitable processes and procedures in place, has been instrumental in BSC’s failure to deliver a WHS System. I am perplexed as to how this fundamental and extremely important aspect of Council’s duties has been allowed to fall to the present standard.

14.3 The new Senior Management Team have now recruited a very experienced WHS Officer (and created the new WHS position and changed the staff structure accordingly). This is a huge step forward. The development of the new comprehensive WHS System will rectify the problems identified within this report. I look forward to receiving updates on the progress being made and would ask that the Senior Management Team keeps the Audit, Risk and Improvement Committee informed of all progress within this area.

Keith Coates

LLB, Grad Dip Leg Prac

Internal Auditor

5 September 2018




WHS RISK RATING KEY AND SUMMARY OF RECOMMENDATIONS

High Medium Low

High probability of an adverse event occurring with a

high consequence of harm to people, plant integrity or

the environment.

and/or

Breaches of Statute and Regulation with potential of

fines and possible civil action.

The presence of such an issue requires immediate

attention including the implementation of interim control

measures where appropriate.

High to Medium probability of an adverse event

occurring with a low consequence of harm to people,

plant integrity or the environment.

and/or

Lack of formal control or process.

The presence of such an issue requires attention within a

reasonable timeframe including the implementation of

interim control measures where appropriate.

Low probability of an adverse event occurring with a

low consequence of harm to people, plant integrity or

the environment.

and/or

A control weakness or improvement required.

The presence of such an issue requires attention in due

course.




Priority key

1. High 2. Medium 3. Normal

#

Area

Recommendation

Priority

Date

Completed

1

WHS System

Council must ensure that adequate resources are provided to the WHS Officer to finalise

and implement the WHS System. The WHS system must bring together all related policies

and procedures and be capable of guiding staff and managers in carrying out all areas of the

WHS function within BSC.

2

.




2

WHS Policy

Council has an overarching WHS Policy, which was adopted in December 2015 and last

reviewed in February 2017. This Policy states inter alia Council’s commitment to a safe

working environment that protects its workers and encourages consultation with workers in

all matters affecting health and safety. It also references a risk management approach to

eliminate and mitigate risks within the workplace. The Policy should be reviewed at the

completion of the WHS System to ensure cross referencing with the System and to

expressly state that the WHS System must be utilised for all WHS activities and actions.

2

3

WHS Action Plan

The WHS Officer has commenced work on a WHS Action Plan. This Plan states the

elements of the WHS System and the individual processes to be undertaken. The Action

Plan further states the officers responsible for specific tasks and the proposed completion

dates. The Action Plan should be completed as a priority as it is the lynchpin in ensuring

the timely completion of the WHS System. To this end I am advised that it will be

completed within approximately three months.

3

4

Consultation

Other than a brief statement within the WHS Policy, there is no formal process outlining the

legislative consultation requirement (in WHS management) within BSC. The proposed

WHS System must expressly state the requirement and state when consultation is required

and keep adequate documentation demonstrating the process.

2







7

Control of Risks

The SWMs and SOPs are not located in a central register; they are housed in the various

Council areas of operation. Council should ensure that a central register is created allowing

access to the safety controls for all staff.

3

8

Control of Risks

I would like to see some random reviews and spot checks conducted by management at

some work sites to confirm compliance with PPE requirements. This requirement should be

formalised as a process within the new WHS System.

3

9

Maintenance and

Review of Control

Measures

BSC does not have a formalised process or control that stipulates periodic review of SWMS

or SOPs. On reviewing a number of SWMS and SOPs it appears that a large percentage

have not been reviewed since 2014. BSC must formalise a process within its new WHS

System that prescribes mandatory reviewing of SWMS within a mandatory timeframe. I

would suggest every two years.

2

10

Maintenance and

Review of Control

Measures

In regards to the regulatory triggers for reviewing a SWMS/control (incidents, new work

processes etc.) BSC complies with the Regulation. However, there is no formal process that

stipulates mandatory reviews when one of the regulatory triggers occurs. BSC must

formalise the process within its new WHS System to ensure the requirements of the

Regulation are met.

2




11

Maintenance and

Review of Control

Measures

When reviewing SWMs and SOPS, or designing new safety controls, Council’s HR, Risk

and WHS Officer should ensure that the applicable Code of Practice (where one is

available) is utilised to provide guidance with the elimination or mitigation of relevant

WHS risks.

3

12

Specific Hazards/Risks

identified within the

Regulation - Noise

Having regards to worker’s health and its exposure to legal action I strongly recommend

that BSC has noise exposure testing conducted within its workplaces as a matter of urgency.

1

13



Regulation - Asbestos

As no safety control has been implemented for asbestos work; Council cannot demonstrate

that it is fulfilling the requirement of Regulation clause 420(1) above. Therefore, Council is

could be exposing its workers to potential harm and also exposing itself to fines and civil

action for not fulfilling its duty of care. The fines surrounding breaches of the Regulation

range from $18,000 per offence to $30,000 per offence. Therefore, BSC must as a matter of

urgency put in place suitable SWMs or SOPs to prevent or mitigate risks surrounding

asbestos work. BSC should utilise the two SafeWork Model Codes (“How to Manage &

Control Asbestos in the Workplace” and “How to Safely Remove Asbestos”) when designing

its asbestos SWMs or SOPs.

1




14




Regulation clause 429 states that Council must have written and up to date asbestos

management plans for its workplaces. The plans should contain the relevant asbestos SWM

or SOP, procedures for dealing with incidents or emergencies, training for workers and

details as to the identification of asbestos within the workplace. BSC does not have an

asbestos management plan for any of its workplaces. BSC must design and implement

asbestos management plans as a matter of urgency.

1

15




Regulation Clause 425 states that Council must have an asbestos register which states where

asbestos is present or likely to be present at its workplaces and buildings and infrastructure

under its control. Council must have the identification process undertaken by a competent

person (Clause 422 of the Regulation). I am advised that BSC does not have an asbestos

register and no identification process has been undertaken. Council must ensure that the

asbestos identification process is undertaken and a suitable asbestos register is designed as a

matter of urgency.

1

16




Further, the Office of Local Government (the OLG) prepared a Model Asbestos Policy in

2012 (updated in 2015) and made it mandatory for all Councils within NSW to adopt the

Model Policy. I am advised that BSC has never adopted the Model Policy. BSC must adopt

and implement the OLG Model Asbestos Policy as a matter of urgency.

1




17




I am advised that BSC has a number of staff members carrying out asbestos related work.

Yet, BSC does not conduct health monitoring. BSC has not advised workers of the health

monitoring requirements before undertaking work that may expose the worker to asbestos.

Thus, BSC is in breach of clause 435 of the Regulation. BSC must ensure that health

monitoring is provided as a matter of urgency. To that end the NSW Dust Disease Board,

can be contacted to provide a mobile testing service to Council.

1

18

Confined Spaces

My only recommendation, in relation to confined space WHS management, is that a

documented risk assessment is kept which demonstrates how the risks are properly

identified and managed via the relevant SWM.

2

19

Training

BSC has an excellent training plan relating to outdoor staff needs and requirements. It sets

forth all mandatory WHS training for each position within the outdoor structure. It states

when mandatory training certification expires, the dates completed and also lists desired

training for each position.

However, the training plan is blank for indoor staff. BSC should ensure that a suitable plan

for indoor staff is completed and implemented as soon as is practicable.

2




20

Reporting

The implementation of the WHS System will bring the incident reporting process up to high

standard. However, as this is some six months away from implementation, I recommend

that Council puts in place an interim process that mirrors the Incident Reporting section of

the proposed WHS System.

2

21

Emergency Plans

I am advised that BSC does not have emergency plans for its workplaces. As BSC does not

comply the regulatory requirements prescribed within clause 43 of the Regulation, BSC is

leaving its workers exposed to safety risks and itself exposed to fines of up to $30,000.

As a matter of urgency BSC must ensure its workplaces have emergency plans implemented

as soon as is practicable.

1

22

Spot Checks – High

Risk Construction

I am advised that the majority of high risk construction work falls under the BSC Roads

area of operations. I am advised that BSC is presently only conducting checks to confirm

compliance with relevant SWMS within this area on an ad hoc basis and no formal

requirement or process exists within BSC. BSC should ensure that a suitable process is

implemented that ensures compliance with SWMS (pursuant to clause 300 of the

Regulation) across all areas where high risk construction is being conducted.

3












































































Corporate and Community Development Report Item C - 2 EXPIRY OF LEASED PLANT - OPTIONS Reporting Officer: Director Corporate and Community Development – Terri Bilske Operational Plan Objective: Pillar 5: Our Infrastructure – A community that maintains and strengthens its natural and built environment Officer Recommendation: That Council resolve to:

1. The purchase the Caterpillar 924H Wheel Loader 2. To dispose of a Challenger Tractor when the lease expires. 3. To purchase the Isuzu NPR 400 Truck when the lease expires in March

2019 4. To purchase the Caterpillar 610 Truck when the lease expires in

September 2019 5. That the funds to purchase the Plant items be transferred from the

Plant Reserve Fund.

Purpose of Report To seek Council resolution to purchase a leased Caterpillar 924H Wheel Loader when the lease expires in January 2019, to return the Challenger Tractor to the lease company when the lease has expired, to purchase the Isuzu NPR 400 Truck in March 2019, to purchase the Caterpillar 610 Truck in September 2019, and for all purchases to be funded from the Plant Reserve. Report Council currently has four leased plant as follows:

Caterpillar Wheel Loader 924H

Challenger Tractor

Isuzu NPR 400 Truck

Caterpillar 610 Truck The lease on the Caterpillar Wheel Loader and the Challenger Tractor will expire in January 2019, the Caterpillar 610 Truck will expire in March 2019 and the Isuzu NPR400 Truck expiring in September 2019. All leases were for a five year period.




Council has a need to retain all Plant items for the current Works Program which will result in better utilisation, with the exception of the Challenger Tractor. Usage of the Plant items as follows.

Plant Usage Hours

Date Leased Lifetime Utilisation per year


2174 2014 435 hours

Challenger Tractor 3524 2013 705 hours

Isuzu NPR 400 Truck

6473 2014 1362 hours

Caterpillar 610 Truck

2443 2014 575 per hour

Council’s cost for the following lease payments are as follows :-

PPlant Item Monthly Payment excluding GST

Yearly Lease Payments

Lease Payments to date

Purchase Price


$3,911 $46,932 $234,660 $255,600

Challenger Tractor

$1,634 $19,608 $98,040 $90,000

Isuzu NPR 400 Truck

$1,282 $15,384 $65,382 $79,227

Caterpillar 610 Truck

$3,255 $39,090 $185,535 $177,377

The purchase price for the Caterpillar Wheel Loader 924H is $142,800. The table above highlights the inefficiency in leasing of plant. For example, Council has already paid out $234,660 in lease payments and is required to pay an additional $142,800 (which is the market value of the plant item) to purchase and own the Caterpillar Wheel Loader. However, this particular Plant item is in very good condition and will be able to be utilised for an additional five year period.




Council currently owns two Challenger Tractors and is leasing the third one which is due to either be returned to the leasing company or may be purchased. The third Tractor is surplus to the needs of Council and can be returned. This will save lease payments of $19,608. The Isuzu NPR 400 Truck and the Caterpillar 610 Truck should also be purchased when the leases expire to be funded from the Plant Reserve Fund as these items will be in demand when the Works Program for capital works begins. It is recommended that all leased Plant items be purchased outright when the leases expire.

Financial Implication The payout figure for the Caterpillar Wheel Loader will need to be transferred from the Plant Reserve

Legislative Implication

Nil

Policy Implication

Nil

Attachments Nil




Infrastructure and Development Reports

Item I – 1 SECTION 94A DEVELOPMENT CONTRIBUTIONS PLAN

File number: D18.11727 Reporting Officer: Acting Director Infrastructure and Development – Ray Mitchell Operational Plan Objective: Pillar 5 Our Infrastructure – A community

that maintains and strengthens its natural and built environment Pillar 2 Our Place – A liveable and thriving community that maintains lifestyle opportunities and addresses its disadvantages

Officer Recommendation: That Council:

1. Advertise the Section 7.12 (formerly S94A) Development Contributions Plan for a period of 28 days.

2. A workshop be held in February immediately prior to the General Meeting to review any public submissions.

3. The outcomes of the workshop and public submissions be reported to the March meeting of Council.

Purpose of Report The purpose of this report is to seek Council endorsement to publicly exhibit the Draft Section 7.12 (formerly S94A) Development Contributions Plan (the Plan) in accordance with Division 2, Part 4 of the Environmental Planning & Assessment Regulation 2000. The adoption of such a plan is also identified at Item 22 of the Business Improvement Order. Report The Environmental Planning & Assessment Act 1979 permits Council to establish a formal Development Contributions Plan that requires contributions during the course of the development application (DA) and complying development certificate (CDC) process to assist Council to provide public facilities and services.




These contributions are required to be authorised by a formal Development Contributions Plan prepared in accordance with the Environmental Planning and Assessment Act 1979 and Regulation 2000. These contributions are distinct and separate from developer contributions towards water and sewer infrastructure works that are authorised under the Local Government Act and Water Management Act. It is proposed that the draft Section 7.12 Development Contributions Plan applies to all development within the Local Government Area that has a development cost in excess of $100,000. However there are some circumstances where land or development will or may be exempt from the Plan. These circumstances are detailed in Section 3.13 of the Draft Plan. Required contributions are based on a percentage of the estimated cost of development. The percentages have been established in legislation by the State Government as follows:

Cost of Development Contribution levy rate%

All development valued at $100,000 or less 0.0%

All development valued at $100,001 up to $200,000 0.5%

All development valued in excess of $200,000 1.0%

Based on development data for the financial years between 2012 and 2016 Council could see contributions in the order of $20,000 to $30,000 annually. As part of the development of the Plan, projects that are to be funded by the Plan need to be prioritised and listed within the Plan. Council may take guidance from current strategic plans, such as the Community Strategic Plan, to inform the project priority schedule.

Financial Implication Income generation of 0.5% and 1% of development cost greater than $100,000

Legislative Implication Environmental Planning & Assessment Act 1979

Policy Implication Adoption of a new Plan Item 22 of the Business Improvement Order

Attachment Draft Plan




Attachment: Draft Plan

.

Balranald Section 7.12 Development Contributions Plan

Doc No.

Version

Date

1

Controller

Approved by: Review Date

Council

General Manager

Minute Number

Disclaimer: While every reasonable effort has been made to ensure that this document is correct at the time of printing, Balranald Shire Council and its employees disclaim any and all liability to any person in respect of anything or the consequences of anything done or omitted to be done in reliance upon the whole or any part of. Document Details:

Revision Public exhibition dates Adoption date Effective Date




1.0 Executive Summary 1.1. Executive Summary 3 1.2. Purpose 3 1.3. Scale of future development 3 1.4. Timescales identified in the plan 3 1.5. Summary of facilities 3 1.6. Summary of contribution rates 4 1.7. Work schedule 4 2.0 Introduction 2.1. Background 5 2.2. Name of the Plan 5 2.3. Commencement of Plan 5 2.4. Purpose of the Plan 5 2.5. Area to Which the Plan Applies 7 2.6. Types of Development to which this Plan applies 7 2.7. What does Section 7.12 of the Act provide? 7 2.8. Relationship to other Plans and Policies 7 3.0 Operation of the Plan 3.1. Payment of the contribution as a condition of development consent 8 3.2. Calculation of the contribution 8 3.3. Contribution Rate 8 3.4. Cost estimate reports 8 3.5. Complying Development 8 3.6. Construction Certificates 8 3.7. Alternatives to Payment 9 3.8. Reassessment of Contributions 10 3.9. Are refunds for payments of levies possible? 10 3.10. Adjusting Contributions at the Time of Payment 11 3.11. Payment of Contributions 11 3.12. Goods and Services Tax 12 3.13. Exemptions 12 3.14. Review of the Plan 13 3.15. Accountability 13 3.16. Application of the Funds 13 3.17. Pooling of Contributions 13 3.18. Standard Condition 13 Appendix 1 – Works Schedule Appendix 2 – Location of Works Maps Appendix 3 – Cost Summary Report Samples Appendix 4 – Standard Condition




1.1. Background Part 7 of the Environmental Planning and Assessment Act 1979 (the Act) permits Council to levy contributions towards the cost of public facilities and services to meet the increased demand created by development. Contributions may be in the form of cash payments, transfer or dedication of land to Council, or the provision of a Material Public Benefit or Works in Kind. A condition of development consent may be imposed by Council with a requirement that the applicant pay a levy based on a percentage of the proposed cost of carrying out the development. This is called a Section 7.12 contribution after the relevant section of the Act. This Plan deals with section 7.12 contributions. Unlike Section 7.11 contributions, there does not have to be a connection between the development being levied under section 7.12 and the need for the public amenity or service for which the levy is required. The monies collected will assist Council towards the provision, extension or augmentation of public amenities or public services. The application of the money is subject to any relevant provision of the contributions plan and the works schedule at Appendix 1. 1.2. Purpose: The purpose of this Development Contributions Plan is:

To authorise the Council to impose a condition on certain development consents and

complying development certificates requiring the payment of a contribution pursuant to

section 7.12 of the Act.

To require a certifying authority (the Council or an accredited private certifier) to impose,

as a condition of issuing a complying development certificate, a requirement that the

applicant pay to Council a levy determined in accordance with this Plan.

To assist the Council to provide public facilities and amenities which are required to

maintain and enhance amenity and service delivery within the area.

To state the purposes for which the levies are required.

To provide for the governance of the contributions and their application in accordance with

the Act and Regulations.

1.3. Scale of future development Balranald LGA had a population of 2287 in 2016. The residents of the LGA are generally based around two (2) main urban centres, Balranald and Euston with another two (2) smaller village areas of Kyalite and Oxley. Population growth in the LGA is considered steady between the two (2) most recent Censuses. However, development is changing the character and nature of our communities and localities within the LGA and accordingly this Plan seeks to respond to these future needs. 1.4. Timescales identified in the plan This Plan aims to cater for development to 2028. It is anticipated that the Plan will be reviewed periodically and updated to reflect changing community priorities as identified in strategic planning outcomes such as the Community Strategic Plan 2027




The Work Schedule in this Plan is based on “high”, “medium” and “low” priorities, which translate into target implementation periods of 2018-2020, 2021-2024, and 2025-2028 respectively. 1.5. Summary of facilities This Plan seeks contributions towards to following categories of public services and facilities:

Urban roads and related infrastructure.

Village roads and related infrastructure.

Rural Roads and related infrastructure.

Pedestrian and cycling Infrastructure.

Stormwater Drainage.

Open Space and Recreation.

Civic and community facilities

1.6. Summary of contribution rates The contribution rate is calculated as a percentage of the cost of development, as per the table below.

Cost of Development Contribution levy rate% All development valued at $100,000 or less 0.0% All development valued at $100,001 up to $200,000

0.5%


Certain exemptions apply to the Contribution. Details can be found in Section 3.13. 1.7. Work schedule The Work Schedules can be found in Appendix 1 to this Plan, and a map showing the location of these works in Appendix 2. 2.0 2.1. Background 2.1.1. What are development contributions? Development contributions are contributions made by those undertaking development approved under the Environmental Planning and Assessment Act 1979 (the Act). Contributions may be in the form of money, the dedication of land or some other material public benefit (or a combination of these):

in the case of contributions made under sections 7.11 or 7.12 of the Act - toward the

provision or improvement of amenities or services (or the recouping of the cost of

provision or improvement of amenities or services); or

in the case of contributions made under a planning agreement prepared in accordance

with sections 7.4 to 7.10 of the Act - toward public purposes.




2.1.2. Section 7.12 levies Part 7 of the Environmental Planning and Assessment Act 1979 (the Act) provides Council the means to levy contributions towards the cost of public facilities and services to meet the increased demand created by development. A condition of development consent may be imposed by Council with a requirement that the applicant pay a levy based on a percentage of the proposed cost of carrying out the development. This is called a section 7.12 contribution after the relevant section of the Act. This Plan deals with section 7.12 contributions. Council cannot impose as a condition of the same development consent a condition under section 7.12 as well as a condition under section 7.11. Unlike section 7.11 contributions, there does not have to be a connection between the development being levied under section 7.12 and the need for the public amenity or service for which the levy is required. The monies collected will assist Council towards the provision, extension or augmentation of public amenities or public services. The application of the money is subject to any relevant provision of the contributions plan and the works schedule at Appendix 1. A condition under section 7.12 that is allowed by and determined in accordance with a contributions plan may not be disallowed or amended by the Court on appeal. 2.2. Name of the Plan This Plan is the Balranald Section 7.12 Development Contributions Plan 2018. This Contributions Plan has been prepared in accordance with the Act, the Environmental Planning and Assessment Regulation 2000 (the Regulations), the Department of Planning and Infrastructure’s Development Contributions Practice Notes 2005 and relevant Ministerial Directions and Department of Planning and Environment Circulars and Guidelines. 2.3. Commencement of Plan This Contributions Plan takes effect on DATE. Rezoning applications (for the purposes of Planning Agreements), development applications and applications for complying development certificates determined on or after this date will be subject to the provisions of this Plan. 2.4. Purpose of the Plan The purpose of this Contributions Plan is: To authorise the Council to impose a condition on certain development consents and complying development certificates requiring the payment of a contribution pursuant to Section 7.12 of the Act

To require a certifying authority (the Council or an accredited private certifier) to impose,

as a condition of issuing a complying development certificate, a requirement that the

applicant pay to Council a levy determined in accordance with this Plan.

To assist the Council to provide public facilities and amenities which are required to

maintain and enhance amenity and service delivery within the area.




To state the purposes for which the levies are required.

To provide for the governance of the contributions and their application in accordance with

the Act and Regulations.

2.5. Area to Which the Plan Applies This Contributions Plan applies to all land within the Balranald Shire Local Government Area. 2.6. Types of Development to which this Plan applies This Plan applies to all applications for development consent and complying development certificates on the land to which the Plan applies. Note: “development” referred to in this clause has the same meaning as shown in Section 1.4 the Act. 2.7. What does Section 7.12 of the Act provide? Section 7.12 of the Act provides as follows: 7.12.Fixed development consent levies

(1) A consent authority may impose, as a condition of development consent, a requirement that the applicant pay a levy of the percentage, authorised by a contributions plan, of the proposed cost of carrying out the development.

(2) A consent authority cannot impose as a condition of the same development consent a condition under this section as well as a condition under section 7.11.

(2A) A consent authority cannot impose a condition under this section in relation to development on land within a special contributions area without the approval of:

(a) the Minister, or (b) a development corporation designated by the Minister to give approvals under this subsection.

(3) Money required to be paid by a condition imposed under this section is to be applied towards the provision, extension or augmentation of public amenities or public services (or towards recouping the cost of their provision, extension or augmentation). The application of the money is subject to any relevant provisions of the contributions plan.

(4) A condition imposed under this section is not invalid by reason only that there is no connection between the development the subject of the development consent and the object of expenditure of any money required to be paid by the condition.

(5) The regulations may make provision for or with respect to levies under this section, including:

(a) the means by which the proposed cost of carrying out development is to be estimated or determined, and (b) the maximum percentage of a levy.

2.8. Relationship to other Plans and Policies This is the first development contributions plan to apply to land within the Balranald LGA




3.0 3.1. Payment of the contribution This Plan authorises Council to require the payment of a monetary contribution as a condition of consent in accordance with the provisions of this Plan. Contributions will be determined on the basis of the proposed cost of development. 3.2. Calculation of the contribution The contribution will be calculated as follows: Levy payable = %C x $C Where:

%C is the levy rate applicable

$C is the proposed cost of carrying out the development as certified.

3.3. Contribution Rate The contribution rate is calculated as a percentage of the development value, as per the table below.

Cost of Development Contribution levy rate% All development valued at $100,000 or less 0.0% All development valued at $100,001 up to $200,000

0.5%


Certain types of development are exempt from a section 7.12 contribution. Details can be found in Section 3.13 3.4. Cost estimate reports In order to enable the amount of the contribution to be accurately determined, a cost estimate report must accompany an application for a development application or a complying development certificate.

Example cost estimate reports have been included in Appendix 3. Applicants can use alternate cost estimation methods as agreed to by Council. If the capital investment value of works exceeds $3,000,000, it must be independently certified by a Quantity Surveyor who is registered with the Australian Institute of Quantity Surveyors or a person who can demonstrate equivalent qualifications. Without limitation to the above, Council may review the valuation or works and may seek the services of an independent person to verify the costs. In these cases, all costs associated with obtaining such advice will be at the expense of the applicant and no construction certificate will be issued until such time that the levy has been paid. 3.5. Complying Development Accredited Certifiers must impose a condition requiring monetary contributions in accordance with this Plan, in accordance with Section 7.12 of the Environmental Planning and Assessment Act. The amount of the contribution is to be determined in accordance with the formulas contained in this Plan. The conditions imposed must be consistent with Council’s standard Section 7.12




consent conditions and be in accordance with this Plan. It is the responsibility of accredited certifiers to correctly calculate the contribution and apply the Section 7.12 contribution. 3.6. Construction Certificates In accordance with Clause 146 of the Environmental Planning and Assessment Regulation, a certifying authority must not issue a construction certificate for building work or subdivision works under development consent unless it has verified that each condition requiring the payment of monetary contributions has been satisfied. In particular the certifier must ensure that the applicant provides a receipt(s) confirming that contributions have been fully paid and copies of such receipts must be included with copies of the certified plans provided to the Council in accordance with clause 142(2) of the Environmental Planning and Assessment Regulation. Failure to follow this procedure may render such a certificate invalid. The only exception to this requirement is where works in kind, material public benefit, dedication of land or deferred arrangement has been agreed by the Council. In such cases the Council will issue a letter confirming that an alternative payment method has been agreed with the applicant. 3.7. Alternatives to Payment Council may accept an offer by the applicant to provide an “in-kind” contribution (i.e. the applicant completes part or all of work/s identified in the plan) or through provision of another material public benefit in lieu of the applicant satisfying its obligations under this plan. The decision to accept such offers is at the sole discretion of the Council. Council may accept such alternatives when made as an offer as part of a development application. The applicant may include in the relevant development application or in an application for a modification under Section 4.55 of the Act, an offer to carry out works or provide a material public benefit towards which the levy is to be applied. The Council will consider the offer as part of its assessment of the development application or as an application for a modification to a development approval under Section 4.55 of the Act where a levy has been imposed pursuant to this plan. If the Council agrees to the arrangement and grants consent to the application, it will substitute a condition of consent requiring the works to be carried out or the material public benefit to be provided for a condition requiring payment of a levy under section 7.12. In assessing the applicant’s offer, the Council will have regard to any relevant requirements of the current Practice Note issued by the NSW Government and such other matters as the Council considers relevant in the circumstances of the case including, but not limited to:

The value of the works to be undertaken is at least equal to the value of the contribution

that would otherwise be required under this plan. Council does not issue credits to

applicants for works in kind which are provided in excess of the approved condition

outside of a standard procedure involving approval by Council, such as staged

development; and

The standard of the works is to Council’s full satisfaction and the works are handed over to

the Council at completion without restriction of limitation; and

The provision of the material public benefit will not prejudice the timing or the manner of

the provision of public facilities included in the works program.




The value of an offer to provide Works In Kind, or a material public benefit towards which the levy is to be applied, in lieu (in full or in part) of satisfying a condition of consent relating to payment of a Section 7.11/7.12 contribution will be valued utilising the following mechanism:

Any credit will be calculated based on the actual cost of works or the agreed cost estimate,

whichever is the lesser. The agreed cost estimate will be determined by a review of the

costs submitted by the applicant via Council’s Infrastructure & Operations Department (or

a Registered Quantity Surveyor at Councils discretion);

The agreed cost estimate can be amended by submission of a variation request by the

applicant which will be reviewed and certified by a registered Quantity Surveyor;

The actual cost of works is required to be evidenced and verified by a registered Quantity

Surveyor;

The Quantity Surveyor to act on the project will be chosen by Council from a list of 3

recommended by the applicant all of whom are to be members of Panels for The NSW

Department of Finance, Services and Innovation or Local Government Procurement; and

Quantity Surveyor service costs are to be borne by the applicant.

3.7.1. Legal agreements pertaining to works in kind All offers, should they be accepted, to provide Works In Kind, or a material public benefit towards which the levy is to be applied, in lieu (in full or in part) of satisfying a condition of consent relating to payment of a Section 7.12 contribution will be subject to a legal agreement between Council and the applicant. All agreements will include, but not limited to, the following:

The works to be undertaken;

The timing of the works;

The quality of the works;

The costs of the works;

Handover and signoff by Council;

The applicant’s rights and responsibilities; and

Council’s rights and responsibilities.

3.7.2. Planning Agreements An applicant may offer to enter into a Planning Agreement with the Council in connection with a development application or a rezoning application that is made for the purposes of being able to subsequently make a development application. The applicant’s provision under a Planning Agreement may be additional to, or instead of, making contributions under Section 7.12 of the Act. Provision is made for Planning Agreements under Section 7.4 of the Environmental Planning and Assessment Act 1979, as amended. Under a Planning Agreement, the applicant may offer to pay money, dedicate land, carry out works, or provide other material public benefits for public purposes. The offer to enter into a Planning Agreement, together with the draft Agreement, will generally need to accompany the relevant development or rezoning application. The Council will publicly notify the draft Agreement and explanatory note relating to the draft Agreement along with the relevant application and will consider the Agreement as part of its assessment of the relevant application. If the Council agrees to enter into the Agreement, it may impose a condition of development consent requiring the Agreement to be entered into and performed.




3.8. Reassessment of Contributions Council may consider an application for the reassessment of the development monetary contribution payable. This may result in the contribution being reduced, waived, modified or upheld. Where a condition of development consent has already been imposed requiring the payment of a contribution, the applicant will be required to lodge an application to review the consent in accordance with Division 8.2 of the Environmental Planning and Assessment Act 1979, as amended, to reassess the rate of contribution charged. The request shall be in writing and provide sufficient information to satisfy Council of the inappropriate nature of the contribution and the implications to Council of reducing or waiving the contribution in the particular circumstances. 3.9. Are refunds for payments of levies possible?

For a refund of levy payments to be considered, the applicant/landowner must:

Submit a written request to Council,

In the request demonstrate that the development has not been commenced,

Submit the request for a refund by the first working day after 31 January within the year

following payment of the levy e.g. payment is made in April 2016 then refund request can

be made until first working day after 31 January 2017, and

Formally surrender the consent that applied the levy.

Part or full refunds may only be provided in circumstances that are considered reasonable and where a formal request has been made. The decision to provide part or full refunds will always be the subject of a report to an appropriate monthly committee meeting of Council. 3.10. Adjusting Contributions at the Time of Payment This Plan authorises Council to undertake these indexed based changes without the necessity of preparing a new or amending contributions plan. This is to ensure that that the value of contributions is not eroded over time by movements in the Consumer Price Index, land value increases, the capital costs of construction of facilities and administration of the Plan, or through changes in the costs of studies to support the Plan. Contributions required as a condition of development consent will be adjusted at the time of payment using the following formula. CP = CDC x Current index

Base index Where:

CP is the amount of the contribution calculated at the time of payment.

CDC is the amount of the original contribution as set out in the development consent.

Current index the Consumer Price Index: All Groups Index for Sydney (as currently

available from the Australian Bureau of Statistics at the time of payment).

Base index is the Consumer Price index: All Groups Index for Sydney which applied at the

time of calculation as shown on the development consent.




3.11. Payment of Contributions 3.11.1. Timing of Payments The time of payment of contributions shall be as follows:

Development applications involving subdivision only – prior to the release of the

Subdivision Certificate.

Development applications involving building work only – prior to the release of the

Construction Certificate.

Development involving both subdivision and building work (e.g. Integrated housing

developments) –prior to the release of the Construction Certificate, or the release of the

Subdivision Certificate, whichever occurs first.

Development applications where no Construction Certificate is required – prior to the issue

of an Occupation Certificate.

Where an application is dealt with by an Accredited Certifier other than Council, the development consent shall not operate unless and until the amount required by the consent under this Contributions Plan is paid to Council. The amount of any monetary contribution to be paid will be the contribution payable at the time of consent, and depending upon the time of payment will be subject to reasonable adjustment due to movements in the Consumer Price Index and/or changes to the rates indicated within this Plan (refer to Section 3.10). 3.11.2. Deferred or Periodic Payments Council may consider the deferred payment of contributions or payments made by periodic instalments. This will be a merit based decision, considered on a case by case basis and subject to approval by Council. A request for deferral or periodic payment must be made in writing to Council, stating the proposed length of deferral, and may only be accepted where:

There are valid reasons for the deferral or periodic payment;

The deferral will not prejudice the efficiency and operation or cash flows of the Plan;

The granting of the request for deferred payment will not jeopardise the timely provision of

works or land identified within the Plan;

A suitable bank guarantee (or equivalent security) can be, and is, provided in the event

that the request is accepted by Council;

Where the applicant intends to make a contribution by way of a planning agreement,

works-in-kind or land dedication in lieu of a cash contribution and Council and the

applicant have a legally binding agreement for the provision of the works or land

dedication, and

The periodic or deferred contributions are paid, including interest, at no cost to Council.

The conditions under which Council may accept deferred payment by way of a bank guarantee are that:

The bank guarantee is by an Australian Bank.




Indexing will be calculated from the date the contribution was due until the date of

payment.

The bank guarantee is for a maximum period of twelve months.

The amount of the bank guarantee is the sum of the total contribution or the amount of the

outstanding contribution at the time of deferring payment, plus an amount equal to thirteen

months interest.

The bank unconditionally pays the guaranteed sum to Council if Council so demands in

writing, no earlier than 12 months from the provision of the guarantee or completion of the

work, whichever occurs first.

The bank must pay the guaranteed sum without reference to the applicant or landowner or

other person who provided the guarantee, and without regard to any dispute, controversy,

issue or other matter relating to the development consent or the carrying out of

development in accordance with the development consent.

The bank’s obligations are discharged when payment to the Council is made in

accordance with the approved bank guarantee or when Council notifies the bank in writing

that the guarantee is no longer required, and

Council’s registration and release of bank guarantee fee is paid.

Any outstanding component of the contribution shall be indexed quarterly in accordance with the Consumer Price Index movements. Indexing will be calculated from the date the contribution was due until the date of payment. The conditions under which Council may accept periodic payment for a staged development are:

That the instalments are paid before the work commences on each relevant stage of the

development, and

The amount to be paid at each stage is to be calculated on a pro-rata basis in proportion

to the demand for the relevant facility being levied by the overall development, including

CPI if required.

3.12. Goods and Services Tax Monetary Section 7.12 development contributions are exempt from the Federal Government Goods and Services Tax (GST). 3.13. Exemptions Under section 7.17 of the Act a levy under section 7.12 cannot be imposed on development:

Where the cost of development is $100,000 or less.

For the purpose of disabled access.

For the sole purpose of affordable housing.

For the purpose of reducing the consumption of mains-supplied potable water, or reducing

the energy consumption of a building.

For the sole purpose of the adaptive reuse of an item of environmental heritage listed in

Schedule 5 of Balranald Local Environmental Plan 2010.

Seniors living development under SEPP Seniors Housing 2004 provided by a Social

Housing Provider

Council also does not impose a Section 7.12 levy on the following:




The fit out or refurbishment of an existing development, where there is no enlargement or

intensification of the current land use

An application on or behalf of Council for community infrastructure, such as but not limited

to libraries, community facilities, recreation areas, recreation facilities and car parks.

An application by a NSW Government department to enable development defined as an

‘Infrastructure Facility’ under State Environmental Planning Policy (infrastructure) 2007.

An application for development that involves rebuilding or repair after natural disasters

such as flooding or bushfires;

An application for demolition (where there is no replacement building or development)

Where Council considers an exemption is warranted, and the decision is made by formal

resolution of council at an Ordinary Council meeting.

To apply for an exemption to the payment of a Section 7.12 Levy, an application must be submitted to Council at development assessment stage, giving reasons and providing any necessary evidence for the exemption. 3.14. Review of the Plan This Plan may be reviewed in full, or in respect of particular parts, when considered appropriate having regard to the rate and type of development, cost of facility provision, and community response to service and facility provision. A complete review of this Plan is anticipated every five (5) years from the date of commencement of the Plan. 3.15. Accountability Financial management and accountability are important components of Section 7.12, and Council is obliged to maintain an accurate and up to date register of all Section 7.12 contributions. Council is required to comply with a range of financial accountability and public access to information requirements in relation to section 7.12 . These are addressed in Division 5 and 6 of Part 4 of the Regulation and include:

maintenance of, and public access to, a contributions register;

maintenance of, and public access to, accounting records for contributions received and

spent;

annual financial reporting of contributions; and

public access to contributions plans and supporting documents.

Monetary contributions received under the authority of this Plan must be recorded and kept through a separate account specifically established for this Plan. The records must indicate the contributions received, contributions expended and must include the interest, if any, earned on invested funds for each account. These records are updated on a monthly basis. Separate accounting records are maintained for all Council's Section 7.12 Development Contributions Plan. Information on funds relating to this Plan will be provided in a condensed format within Balranald Shire Council's Annual Report/s in accordance with requirements of the Regulation




Information is also available in Council's contribution register relating to this Plan, which can be inspected at Council during normal business hours. 3.16. Application of the Funds Money paid to the Council under a condition authorised by this plan is to be applied by the Council towards meeting the cost of the public amenities or services that will be or have been provided within the area as listed in the Works Schedule at Appendix 1. 3.17. Pooling of Contributions This Plan expressly authorises monetary Section 7.12 Contributions paid for different purposes to be pooled and applied (progressively or otherwise) for those purposes. The priorities for the expenditure of the contributions are shown in the Works Schedules. 3.18. Condition of Consent

Unless otherwise determined by the Council, the standard condition described in Appendix 4 will be used on Development Application determinations and Complying Development Certificates for monetary contributions levied under this plan.




Appendix 1: Works Schedule

Map Ref

Item Total Cost Priority (timing)

1 2 3 4 5 6 7

Examples Only: Euston Rec Reserve - upgrades to sporting facilities GPH - vinyl floor replace Jockey Club end and bar, external paint Royal - stage refurb, fire safety upgrade, refurb upstairs Parks - playground equip upgrade/replace, water systems Ovals - refurb surfaces Walk trails - interp signage VIC - refurb interp material Footpaths - particular areas Roads - culvert/grid upgrade/replace, curve realignments, seals/reseals Euston Courthouse - refurb of building and finishes




Appendix 2: Work Schedule Map/s Appendix 3: Example Cost Summary Report Procedure A cost summary report is required to be submitted to allow council to determine the contribution that will be required. The following should be provided:

A cost summary report must be completed for works with a value not greater than $

3,000,000

A Quantity Surveyor’s Detailed Cost Report must be completed by a registered Quantity

Surveyor for works with a value greater than $ 3,000,000.

To avoid doubt, Clause 25J of the Environmental Planning and Assessment Regulation 2000 sets out the things that are included in the estimation of the construction costs, including the following:

if the development involves the erection of a building, or the carrying out of engineering or

construction work—the costs of or incidental to erecting the building, or carrying out the work,

including the costs (if any) of and incidental to demolition, excavation and site preparation,

decontamination or remediation;

if the development involves a change of use of land—the costs of or incidental to doing

anything necessary to enable the use of the land to be changed;

if the development involves the subdivision of land—the costs of or incidental to preparing,

executing and registering the plan of subdivision and any related covenants, easements or

other rights.




Example Cost Summary Report

DA / CC / CDC No: _____________________________________ APPLICANT NAME: _____________________________________ APPLICANT’S ADDRESS: _____________________________________ PROPERTY ADDRESS: _____________________________________ _____________________________________ Land Description: _____________________________________

ANALYSIS OF DEVELOPMENT COSTS:

Demolition and alterations $ Hydraulic services $

Structure $ Mechanical services $

External walls, windows and doors

$ Fire services $

Internal walls, screens and doors $ Lift services $

Wall finishes $ External works $

Floor finishes $ External services $

Ceiling finishes $ Other related work $

Fittings and equipment $ Preliminaries/margin $

Total Project Cost: $_______________ I certify that I have:

Inspected the plans the subject of the application for development consent or construction

certificate

Calculated the development costs in accordance with the definition of development costs in clause

25J of the Environmental Planning & Assessment Regulation 2000 at current prices.

Included GST in the calculation of development cost

Signed: _____________________________________ Name: _____________________________________ Position: _____________________________________ Qualification: _____________________________________ Date: _____________________________________




Appendix 4: Standard Condition Standard Condition: Pursuant to Section 7.12 of the Environmental Planning & Assessment Act 1979, the monetary contribution set out in the following table is to be paid to Council prior to the issue of a Subdivision Certificate or Construction Certificate. The contribution is current as at the date of this consent and is levied in accordance with the Balranald Section 7.12 Development Contributions Plan 2018, adopted on date, which may be viewed during office hours at Council’s Administration Office, 70 Market St Balranald, or on Council’s website www.balranald.nsw.gov.au The contribution payable will be calculated in accordance with the contributions plan current at the time of payment, and will be adjusted at the time of payment in accordance with the Consumer Price Index (CPI) (All Groups Index for Sydney) published by the Australian Bureau of Statistic (ABS). Contribution amounts will be adjusted by Council each financial year.

Proposed Cost of Development

1 Levy Percentage Total Contribution Contribution Rate

remains current until*

Notes 1 As shown on the Development Application / Construction Certificate Application / Complying

Development Certificate Application Form.

http://www.balranald.nsw.gov.au/




PART B - ITEMS FOR INFORMATION

General Manager’s Reports

ITEM G – 4 CORRESPONDENCE Reporting Officer: General Manager – Michael Kitzelmann Operational Plan Objective: Pillar 1: Our People – A community that is proactive, engaged, inclusive and connected Officer Recommendation: For information. Purpose of Report To advise Council of recent correspondence of interest. Report 1. Media Release – Life Saving Grants open to all Local Sports clubs 2. Media Release – NSW Energy Switch could Save Households $1000 a year. 3. Thank you from Balranald Ex Services Bowling Club.













ITEM G – 5 ACTION SHEET

Reporting Officer: General Manager – Michael Kitzelmann Officer Recommendation: That Council receive and note the report.

Purpose of Report To bring forward for Councillors information the Action Report with actions taken on previous council resolutions.

BALRANALD SHIRE COUNCIL

ACTION SHEET

NOVEMBER 2018

MIINUTE DIRECTOR/ FILE NO

SUBJECT DATE COMPLETED

COMMENTS CURRENT STATUS

08.17.4038 DCCD Cultural Committee – measurements for replacement Curtain @ theatre

In Progress – quotes are being sought.

04.18.4280 DID Consent to DA 35/2018 – Proposed boundary adjustment Island Road

Complete, subdivision certificate plans endorsed and returned

05.18.4312 DID Continue discussions with Hay and Wentworth Shires to implement formal agreements.

In progress

05.18.4313 DID Endorse the proposed expenditure strategy for staged works Kilpatrick Road

Ongoing

08.18.4376 DCCD/DID Tourism Minutes – 1. review letter and send to addressed individuals. 2. review options for cars parking on lawn at skate park. 3. Clarify Tourism membership and advertise for new members if needed. Euston Beautification & Tourism Minutes 1. Purchase life size kangaroo from unspent monies in 2017/18 budget.

In Progress




08.18.4380 GM That Council provide 1. Balranald Swimming and Triathlon Club

Inc with a donation of $500 2. Balranald Early Learning Centre with a

donation of $500 3. Euston Parents & Citizens Association

with a donation of $500 4. Balranald Presbyterian Church with

waiving the Theatre hall hire fee of $550 Provide letters and donations to requests

In Progress

08.18.4382 GM Provide sponsorship of $2000 for the acquisitive award to Art Gallery

In Progress

09.18.4406 GM Arrange a workshop to discuss the review of committees and determination of committee functions and powers

10.18.4428

Vivienne

Tourism Committee Minutes 1. Fencing @ Discovery Centre

Ongoing Vivienne met with DID to look at installing extra signage and planting more trees. Dianne Williams will contact Patsy regarding bush tucker trees suitable for the area

10.18.4430 GM Advertise Christmas period closure Advertised – Wednesday 12th December and posters displayed around town

10.18.4432 DID/ DCCS

Dispose of Plant 3, 140H Cat Motor Grader Ongoing

10.18.4433 GM Submit report regarding St Joseph’s School Sprinkler System

Completed – reported November




11.18.4447 DCCS/Mayor

1. Endorse the NSW Public Libraries Association & LGNSW library funding 2. Note the announcement by NSW Government of its intention to provide a $60M funding package for libraries 3. support the ongoing Renew Our Libraries initiative to secure funding & work with government to develop a sustainable future funding model 4. make representation to local State Member in relation to the need for ongoing additional funding from the NSW State Government for provision of public libraries 5. Write to The Hon. Don Harwin, Minister for Arts & The Hon. Walt Secord, Shadow Minister for Arts calling for bi-partisan support for the provision of ongoing and indexed increases in state funding for NSW public libraries 6. Take a leading role in activating the campaign locally 7. Endorse the distribution of the NSW public libraries association & LGNSW library funding advocacy initiative information in council libraries. 8. Write to LG NSW advising of NSW Public Libraries Association & LG NSW that council has endorsed the library funding advocacy initiative.

11.12.2018 In Progress

11.18.4448 DCCS Hostel Committee Meeting Minutes

11.18.4448 Ray/ Vivienne

Euston Beautification Committee 1.Induction of Committee Members 2. Traffic Committee – 80kmph signs 3. Fire pit for Lake Benanee Sign 4. High pressure water jet possibly clean/clear pipes 5. Costs of poly pipe for Euston Cemetery 6. Approve the project of life-sized statue of Sister Goldsbro

In Progress In Progress Completed Completed Ongoing In Progress

New committee members to be accepted by committee then ratified by council within committee minutes RMS to confirm receipt of signs for installation Signs have been erected Pipes have been cleaned out and maintenance schedule in place to help during large downpours Council to approve project at council meeting 18/12




11.18.4448 Vivienne Tourism Committee Meeting 1. Garden/hedge at Library 2. Follow up of equipment at depot for monuments at skate park 3. Arrange collection of old timber from Historic bridges on Waugorah Road. 4. Upload A3 Form used at Community Strategic Workshop on Tourism Website 5. Christmas lights on swing bridge

Ongoing Completed Ongoing Completed

Native plants/beds Unfortunately timber not useable due to treatment. Gavin to tidy document up and have placed on website.

11.18.4448 Ray Euston Beautification & Tourism Committee 1. Update on ownership of Euston Cemetery land. 2. Provide Committee with updated budget 3. Request LEMC for town alarm

Completed Ongoing Ongoing

Crownland managed by BSC under trust

11.18.4448 Ray Balranald Beautification Committee 1. Provide the Committee with the Draft Cemetery Policy 2.Consider Directional signs along memorial walkway 3. Bamboo at swing bridge be cutback. 4. GM – Provide examples of TC sign projects. 5. What bench design/specs requirements for bench seat to be donated at Cemetery by Kelly family.

Ongoing Ongoing Ongoing Ongoing

11.18.4449 GM Advertise change of time for December Meeting.

12.12.2018 Advertised Guardian and on Facebook

11.18.4451 GM Update Social Media Policy into Policy Manual

10.12.2018 Completed

11.18.4452 GM Advise Murray Darling Association Region 4 of invite acceptance

11.12.2018 Letter written

11.18.4453 GM Advise St Joseph’s School council paying costs associated with removal and replacement of pump.

11.12.2018 Letter Written

11.18.4454 GM Arrange a workshop for held to discuss committees.

In Progress

11.18.4455 DCCS Adjust Councils budget as per quarterly budget review

Completed

11.18.4456 DCCS Approve the variation for training expense of $10,000 to be offset by additional revenue for Residential Care Fees

Completed

11.18.4457 ADID Vary Building line at Lot 19 Section 7 DP 758402 15-19 Cowper Street to 1.2metres

3/12/2018 Complete

11.18.4458 ADID Subdivision of Lot 931 DP 1216962, 112 Piper St Balranald, subject to the following conditions

3/12/2018 Complete




11.18.4459 GM Hold Special Meeting to consider DA 16/2019.

In Progress

11.18.4462 ADID Advertise Heavy Vehicle Chain of Responsibility y policy for 28 days & report back to February Meeting

Ongoing

11.18.4453 ADID Adjust Private Functions on Public Reserves Policy and insert into Policy Manual.

11.12.2018 Complete




Corporate and Community Development Reports

Item C – 3 TOURISM REPORT – November 2018 Reporting Officer: Director of Corporate & Community Services Operational Plan Objective: Pillar 3: Our Economy – 3.2.1 Tourism Officer Recommendation:

1. That Council accept the November 2018 Tourism report for information Purpose of Report To provide Council with a progress report on Tourism activities. Report Attached to this report is the Tourism Monthly Reporting Dashboard for the month of November 2018. As expected, visitation numbers for the month of November have reduced which is on part with similar times for previous years. Facebook page Balranald Discovery Centre has now been inactivated and we now focus heavily on Discover Balranald and Surrounds with things to see and do whilst in the region. Discover Balranald & Surrounds has had an increase of activity through this medium (referenced in the Monthly Statistics Report attached). Manager Community and Tourism Services is continuing to focus on the following:

Social Media Policy – how we use Social Media and the benefits of facts to the visitors - ongoing

Visitor Centre operating hours - revisit the operating hours of the Balranald Visitor Centre with a view of extending the Monday to Friday opening hours - ongoing

Merchandise Sales – mark-ups and what we stock - ongoing

Heritage Near Me – story boards for Railway Line to Nowhere – ongoing

POS system

Website – possible update to enable direct tour and accommodation bookings

Yanga/Mungo National Parks and Discover Balranald & Surrounds – joint advertising venture with Destination NSW and NPWS




Social Media and Website Visitation is continuing to grow with more page likes and further reach/engagement with our audience.

Social Media and Website Visitation

Facebook Total Page Likes Total Reach Current

Month Total

Engagement

10,396 19,427 1,940

Website (Since Aug

2016)

Total Number of Visitors Total Page Views

39,251 73,172 This Period 1,167 2,021




Attachments Nil (Tourism Committee meeting did not have a quorum for December meeting).




Item C - 4 BIDGEE HAVEN HOSTEL – NOVEMBER FINANCIAL REPORT File number:

Reporting Officer Director of Corporate and Community Development Operational Plan Objective: Pillar Six: Our Leadership – a community that values and fosters leadership, lifelong learning, innovation and good governance Officer Recommendation: That Council

Note the November Financial Report for the Bidgee Haven

Retirement Hostel.

Purpose of Report To provide Council with an update regarding the financial operations of the Bidgee Haven Hostel (the Hostel) as at 30 November 2018. Report At the 30 November 2018, the Hostel shows an operating profit of $151,890 against an adopted budgeted profit for the financial year of $91,800. It should be noted that the monthly operating revenue and expenses is a snapshot at a point of time and can fluctuate up or down depending on circumstances regarding payments and revenue. Revenue, including Resident Care Fees, Care Subsidies, Accommodation fees and Daily Fees are $582,148 with a corresponding expense total of $430,476. Invoices for the following month are raised for residents in advance. However, the invoices for January were not raised until early December resulting in no change in revenue from the previous month. This report includes the revised budget as approved in the September Quarterly Review. The Hostel is budgeted to achieve a profit of $91,800 for the 2018-19 financial year.

Financial Implication Impact on Council’s Operational Budget



Attachments Nil




The following profit and loss statement as at 30 November 2018 is provided for your information.

ADOPTED

BUDGET

2018/19

AMENDED

BUDGET

SEPT QBR YTD BUDGET

YTD

ACTUAL VARIANCE

Income:

Care Subsidies $850,000 $850,000 $358,000 $357,314 100%

Resident Care Fees $230,000 $240,000 $223,000 $223,279 100%

Respite Care Fees $5,000 $5,000 $2,000 $1,555 78%

Fundraising donations $1,000 $1,000

$1,086,000 $1,096,000 $583,000 $582,148 100%

Expenditure

Salaries $735,000 $735,000 $318,400 $318,401 100%

Hostel -Medical Expenses $6,000 $6,000 $950 $951 100%

Doctors Visits Hostel $2,500 $2,500 $300 $300 100%

Training $5,000 $15,000 $12,700 $12,676 100%

Advertising $1,000 $1,000 $100 0%

Electricity - Operational $30,000 $30,000 $15,100 $15,125 100%

Consultancy $10,000 $10,000 $100 $100 100%

General Expenses $1,200 $1,200 $1,280 $1,271 99%

Linen Replacements $500 $500 $50 $0 0%

Laundry Expenses $10,000 $10,000 $1,450 $1,435 99%

Cleaning Materials $7,000 $7,000 $2,000 $2,510 126%

Pharmaceutical Supplies $12,000 $12,000 $1,500 $1,296 86%

Food Supplies $35,000 $35,000 $11,300 $11,270 100%

Insurance $15,500 $15,500 $14,900 $15,039 101%

Administration fees $50,000 $50,000 $20,830 $20,830 100%

Printing and Stationery $3,000 $3,000 $1,800 $1,778 99%

Rates & Charges on Council

Property $8,500 $8,500 $8,600 $8,591 100%

R & M Office Equipment $55,000 $55,000 $1,000 $850 85%

R & M Motor Vehicle $2,200 $1,706 78%

R & M Furniture & Fittings $100 $36 36%

R & M Buildings $6,200 $6,081 98%

R & M Grounds $7,600 $7,587 100%

R & M Plant & Equipment

Subscriptions & Memberships $5,200 $5,200 $1,730 $1,730 100%

Licence Fees $300 $300 $270 $263 97%

Telephone $1,500 $1,500 $650 $650 100%

$994,200 $1,004,200 $431,110 $430,476 100%

Net profit (Loss) $91,800 $91,800 $151,890 $151,672

Capital Expenditure $20,000 $20,000

BIDGEE HAVEN RETIREMENT HOSTEL

PROFIT AND LOSS AS AT 30 NOVEMBER 2018




Item C - 5 STATEMENT OF FUNDS: 30 November 2018 File number: D18.11826

Reporting Officer Director of Corporate and Community Development

Operational Plan Objective: Pillar Six: Our Leadership – a community that values and fosters leadership, lifelong learning, innovation and good governance Officer Recommendation:

6. That Council receive and note the Statement of Funds for the period ending 30 November 2018.

Purpose of Report To advise Council of Funds and Investments held for the month ending 30 November 2018.

Term (Days) Start Date Maturity Date Interest RateInvestment

Value

Term Deposits Reference

Bankwest 7/2019 150 3/09/2018 31/05/2019 2.75% 500,000

Bankwest 8/2019 273 6/09/2018 6/06/2019 2.70% 1,000,000

Bankwest 1/2019 365 11/07/2018 11/07/2019 2.80% 500,000

Bankwest 2/2019 274 12/07/2018 12/04/2019 2.80% 500,000

Bankwest 3/2019 305 12/07/2018 13/05/2019 2.80% 500,000

Bankwest 4/2019 335 12/07/2018 12/06/2019 2.80% 500,000

Bankwest 5/2019 272 7/08/2018 6/05/2019 2.80% 1,000,000

Bankwest 6/2019 300 7/08/2018 3/06/2019 2.76% 500,000

Average rate 2.78% 5,000,000

At Call Accounts

Westpac Cash Reserves AT CALL 0.50% 669,184

TCorp AT CALL 1,239,005

Cash Accounts

Westpac Bank CASH AT BANK 1,448,604

TOTAL BANK 3,356,793

8,356,793

Total term deposits

TOTAL INVESTMENTS PORTFOLIO INCLUDING CASH




RESTRICTED FUNDS External Internal November 2018 Total

Specific Purpose Unexpended Grants 392,166 392,166

Domestic Waste Management 289,628 289,628

Water Supplies 919,196 919,196

Sewerage Service 560,870 560,870

Other (Unexpended Cont. Euston) 50,000 50,000

Caltex 750,000 750,000

Plant & Vehicle Replacement 541,818 541,818

Infrastructure Replacement 214,000 214,000

Employee Leave Entitlements 269,000 269,000

Deposits, Retentions & Bonds 106,000 106,000

Carry Over Works 0 0

Caravan Park 202,411 202,411

Euston Cemetery 38,000 38,000

Health Reserve 6,000 6,000

Hostel Bonds 210,960 210,960

Market Street Improvements 20,000 20,000

Town Clock 3,000 3,000

Theatre Royal Improvements 4,669 4,669

Gravel Pit Rehabilitation 234,065 234,065

Lake Benanee Capital Improvements 1,126 1,126

Other Assets Replacement 286,000 286,000

Financial Assistance Funding 0 0

Heritage Near ME (Council Contribution) 18,500 18,500

Berrett Park Revitalisation (Council Contribution) 2,000 2,000

TOTAL RESTRICTED FUNDS 2,211,860 2,907,548 5,119,408







Item C – 6 PLANT UTILISATION REPORT File number: D18.11825

Reporting Officer: Director of Corporate and Community Development Operational Plan Objective: Pillar 5: Our Infrastructure – A community that maintains and strengthens its natural and built environment Officer Recommendation: That Council

Note the lifetime plant utilisation report with regards to main plant, including graders,

backhoes, loaders, tractors, graders, rollers and trucks;

Note the revised 2018/19 financial year plant hire charges stipulated in the

table in the report;

Confirm that hire charges should be reviewed on a yearly basis, at the

time of preparing Council’s long term financial plan and budget, with

quarterly checks on actual figures to be carried out throughout the year;

Purpose of Report Council resolved at the October meeting to receive a plant utilisation report regarding plant management. Details relating to the main plant currently utilised by Council are included in this report. The report does exclude fleet vehicles and small plant. Main plant is defined as graders, backhoes, tractors, loaders and trucks. Report Council staff have commenced the review process into the current hire charges Council has in place for plant. This report is to report on the main plant, that being graders, tractors, trucks, to name a few. The review has found that there has been too much revenue collected on some plant and not enough on other plant when compared to expenses incurred over the life of the plant. Council should operate the recovery of plant revenue as a operational cost recovery plus a future capital replacement component, whereby the internal revenue generated via the plant hire charge is sufficient to cover all expenditure, including future capital replacement, for the financial year. Any adjustment for overs and unders on internal Plant revenue is done at financial year end to balance the revenue/ expenditure balance. The future capital replacement component allows for




Council to replace the plant at a future date without the need to find a large sum of funds as the amount has been collected over the life of the plant item. Collecting too much internal plant revenue simply means that project and maintenance expenditure budgets wear more cost than it needs to, thereby reducing the budget available for other expense items like labour and materials and could also cause budget overspends to occur. Not enough collected, and then the plant fund may not be able to replace plant in the future when said plant is up for renewal. The following table represents plant hire revenue and expenditure for the full life, from acquisition of the plant until 30 November 2018:

Over the life of the plant above, the net result is ($408,813.19) shortfall for the plant fund. This means the plant fund hasn’t collected enough by way of revenue. The issue with such large variances listed above is as follows:

1. The incorrect hire charge been applied for those assets which were leased. In

the table above, you can see, with the exception of the Truck – Isuzu NPR

400 Medium, that all leased plant have had large deficits. This is because the

lease payments appear to not have been factored into the hire charge at the

time leasing was entered into;

Year 2018/19 Financial Year

Asset Code Plant Description

Life Expenditure

Incl Depreciation

($)

Life Revenue

($)

Net Variance

over Life

($)

Life

Performance

to Nov 18

Utilisation

Hours

Profit/ (Loss)

per Hr

($)

Leased Grader - Cat 140M 585,652.01 458,892.94 -126,759.07 -21.64% 5,481.50 -23.12

AD2334 Grader - Cat 140M 754,287.04 596,627.20 -157,659.84 -20.90% 9,720.00 -16.22

Leased Backhoe - Caterpillar 432F 223,606.58 97,531.44 -126,075.14 -56.38% 2,173.35 -58.01

Leased Loader - Caterpillar 924H 322,524.79 167,167.51 -155,357.28 -48.17% 2,174.00 -71.46

AD4230 Tractor - Challenger MT 465B 180,560.87 202,957.26 22,396.39 12.40% 4,941.00 4.53

AD4229 Tractor - Challenger MT 465B 155,652.55 200,830.46 45,177.91 29.02% 5,089.00 8.88

Leased Tractor - Challenger MT 465B 172,097.62 153,072.66 -19,024.96 -11.05% 3,524.25 -5.40

AD2329 Combination Tyre Roller 86,095.52 91,155.89 5,060.37 5.88% 5,253.50 0.96

AD2017 Combination Roller 95,944.74 182,395.08 86,450.34 90.10% 13,149.03 6.57

AD2365 Combination Roller 111,103.78 130,205.88 19,102.10 17.19% 10,041.50 1.90

AD2344 Truck - Isuzu NPR 300 Factory Tipper 130,991.77 227,483.31 96,491.54 73.66% 5,871.23 16.43

Leased Truck - Isuzu NPR 400 Medium 166,498.03 291,129.60 124,631.57 74.85% 6,473.80 19.25

AD2343 Truck - Isuzu NPR 400 Medium 160,692.88 266,662.27 105,969.39 65.95% 8,886.25 11.93

AD2308 Truck - Isuzu FTR900 Medium Cab Chassis 370,353.26 344,556.08 -25,797.18 -6.97% 9,445.75 -2.73

Leased Truck - Caterpillar CT610 348,433.19 158,766.36 -189,666.83 -54.43% 2,442.75 -77.64

AD2369 Truck - Isuzu NQR450 Crew Cab 115,941.80 100,617.41 -15,324.39 -13.22% 2,161.00 -7.09

N/a Truck - Sterling 10M 508,310.12 544,859.77 36,549.65 7.19% 10,157.50 3.60

AD2337 Truck - Western Star 4864 FSII Prime Mover 397,151.54 303,310.99 -93,840.55 -23.63% 4,410.50 -21.28

AD4228 Tractor - New Holland T5050 FWA Tractor 81,218.14 40,080.93 -41,137.21 -50.65% 1,004.50 -40.95




2. There doesn’t appear to have been a detailed review of hire charges on a

regular basis. There is a need to review hire charges at least on a quarterly

basis as Council should be limiting the overs and unders as much as possible;

It should be noted that those plant lines listed above with an ‘Asset Code’ of “Leased” are expected to cease being leases during the 2018/19 year as the lease contracts expire or have already expired. As part of the plant review, hire charges were also reviewed for the 2018/19 year. It is recommended that the hire charges be amended as follows to allow Council to correct the overs and unders for the 2018/19 year. Note that these charges are re-calculated based on the current year actual year to date and projected forecast expenditure to 30 June 2019. A comprehensive year to date (YTD) review has been done for each plant item listed below and the revised charges take into account expected future usage for the remainder of the year. Also, as part of the hire charge determination, actual and remaining potential usage hours for the 2018/19 year were assessed and considered in light of current and future works.




The hire charges above are for the plant only and for internal use only. They are not the rate for private works, as the rate for private works would include an operator cost, administration charge and GST. The rates above are the internal cost to Council to hire plant. A further review will be done in March 2019 to see how the plant hire charges are tracking against actuals and the rates will be revised if necessary.

Financial Implication Budget bottom line is unchanged as plant expenditure is expected to be matched with revenue generated from hire charges to result in a $nil variance as at 30 June 2019. Possible savings and increases in some project budgets will be expected as a result of the change in hire rates, but overall impact will be $nil.



Attachments Nil

Year 2018/19

Asset Code Plant Description

Current Charge

Rate ($)

Revised Charge

Rate ($)

Leased Grader - Cat 140M 108.63 123.00

AD2334 Grader - Cat 140M 108.63 123.00

Leased Backhoe - Caterpillar 432F 56.65 93.00

Leased Loader - Caterpillar 924H 94.88 118.00

AD4230 Tractor - Challenger MT 465B 55.33 53.00

AD4229 Tractor - Challenger MT 465B 55.33 53.00

Leased Tractor - Challenger MT 465B 55.33 53.00

AD2329 Combination Tyre Roller 29.26 52.00

AD2017 Combination Roller 29.26 35.00

AD2365 Combination Roller 29.26 35.00

AD2344 Truck - Isuzu NPR 300 Factory Tipper 55.33 41.00

Leased Truck - Isuzu NPR 400 Medium 55.33 43.00

AD2343 Truck - Isuzu NPR 400 Medium 55.33 43.00

AD2308 Truck - Isuzu FTR900 Medium Cab Chassis 55.33 56.00

Leased Truck - Caterpillar CT610 96.03 105.00

AD2369 Truck - Isuzu NQR450 Crew Cab 55.33 47.00

N/a Truck - Sterling 10M 96.03 97.00

AD2337 Truck - Western Star 4864 FSII Prime Mover 96.03 100.00

AD4228 Tractor - New Holland T5050 FWA Tractor 55.33 131.00




Infrastructure and Development Reports

Item I - 2 PLANNING ADMINISTRATION File: D18.11724 Reporting Officer: Acting Director Infrastructure and Development – Ray Mitchell Operational Plan Objective: Pillar 5: Our Infrastructure – A community that maintains and strengthens its natural and built environment Officer Recommendation: That the report be noted.

Purpose of Report To advise Council of activities in the Planning area. Report The following Construction Certificates, Complying Development Certificates, Section 68 Certificates and / or Notices of Determination have been issued under delegated authority since the November 2018 meeting of Council.

Application Owner/Applicant Locality Description

DA 14/2019 James Harwood

Homes for VM Fotia &

MC Romeo

30 Tayla Court Euston

Dwelling & Shed

DA 17/2019 GL Neyland Tammit Station 792 Tammit Rd Euston

Farm Shed

DA 19/2019 Select Harvests Bunargool 412 Euston Prungle Road Euston

Frost Fans

The following numbers of other certificates have been issued.

10.7(2) 10.7(5) 121ZP 735A Drainage Diagram

Noxious Weeds

5 4 1 1 3 0

Financial Implication Nil.

Legislative Implication The approvals process.

Policy Implication Nil.

Attachments Nil.




Item I - 3 MAINTENANCE AND CONSTRUCTION PROGRAM File: D18.11716 Reporting Officer: Acting Director of Infrastructure and Development – Ray Mitchell Operational Plan Objective: Pillar 5: Our Infrastructure – A community that maintains and strengthens its natural and built environment Officer Recommendation: That the report be noted.

Purpose of Report To provide Council with a progress report on works, since the November meeting. Report 1. Roads Program The following works are in progress or have been completed:

a) Capital Works Programs Works have been undertaken in the following areas:

MR514 survey and design is underway

Euston Cemetery Road sealed

Truck wash upgrade commenced

b) Maintenance

Patching works on town streets and main roads

Grid maintenance Marma Box Creek Rd

1.1 Drought Relief Drought Relief Heavy Vehicle Access Program grant application has been submitted for restoration works in the northern part of the Council area. 1.2 Natural Disaster Funding Quotes are being sought for additional culvert work on the Wooranbara Corrong Rd that was not funded under the original disaster funding program. 1.3 Wool Track Project: MR67 Design and bill of quantities finalised.




2 Water Supply and Sewerage Program Sewer Pump Station Inspections has been completed and report has been received.

3 Miscellaneous Works

3.1 Gravel Extraction/Supply and Investigations Draft documents with Council for final review and submission to Crown Land for licence consideration.

3.2 Balranald and Euston Town Works Reserves and town street landscaping maintenance is ongoing. Christmas decorations are being installed. Footpath minor maintenance

QUESTIONS ON NOTICE

CONFIDENTIAL MATTERS

Financial Implication As per budgeted works program.

Legislative Implication Nil.

Policy Implication Various

Attachments Nil

Documents

PRESENT: APOLOGIES: DISCLOSURE OF INTERESTS CALENDAR …€¦ · Shire Council held in the Council Chambers, Market Street, Balranald on Tuesday 18th December 2018 GENERAL MANAGER’S