Agenda of Ordinary Council - Thursday, 20 July 2023

Ordinary Council Meeting 20 July 2023

Notice of Motion - 5G Cell Towers Request for Information

Subject: Notice of Motion - 5G Cell Towers Request for Information

Record No: SU6110 - 40660/23

Division: Lane Cove Council

Author(s): Councillor Katherine Mort; Councillor Scott Bennison

Executive Summary

This Notice of Motion seeks further information in relation to the possible risk to the health of our residents, in particular children from the installation of 5G Cell towers in close proximity to children’s playground areas and schools.

Background

5G is the most recent new technology employed to allow increased speed and efficiency of telecommunications. In contrast to previous technologies 5G uses a significantly higher frequency with shorter wavelengths and higher potency over smaller distances requiring more antennas and cells to be placed closer together than 3G and 4G antennas and cell towers.

The World Health Organisation has previously stated “As yet, no health risks have been causally linked with exposure to wireless technologies however more research is required.”

Current safety standards in Australia have been developed by the Australian Radiation Protection and Nuclear Safety Agency (ARPNSA). The calculation of maximum safe Electromagnetic Energy (EME) levels is based on accepted principles of physics and an advanced understanding of how electromagnetic waves travel and spread.

The physics is not disputed. However, there has been limited recognition of the effects of those waves on human tissue raised by academics with expertise in the fields of human biology, biophysics, and medical research.

There is a growing body of evidence including peer review studies that supports the conclusion that increasing exposure to electromagnetic radiation affects the central nervous system including an increased risk of some neurodegenerative diseases. This includes altered brain activity, biomedical changes, neuro-behavioral effects, and DNA changes which may further contribute to an increased risk of chronic disease. Ref The Lancet Planetary Health, Dec 2018.

Discussion

Government health policies play a crucial role in shaping the healthcare landscape and promoting the well-being of the population. However, the influence of industry funding on these policies can introduce fragility and contribute to their failings. Bias and conflicts of interest can cloud objectivity and industry-funded research can be limited with a focus on specific issues resulting in neglect of broader health concerns. This is illustrated by the recent prescription opioid epidemic in the USA. Insufficient transparency in industry funding further undermines public trust.

Governments have at times been slow to regulate or enforce regulations and slow to investigate new concerns highlighted by the scientific researchers and medical community.

Industry has prioritised profits over the health and downplayed health concerns as exemplified by the actions of the tobacco industry for many decades.

Monitoring of the telecommunications industry and adherence to the regulations set by ARPANSA is largely regulated by the telecommunications industry.

Installation of 5G towers is permitted under Federal legislation without a Development Application and the requirement to consult with community members is relatively limited.

The peak Australian body is the Australian Mobile Telecommunications Association (AMTA) who have published the Guide to Mobile Phone Base Deployment Code. Ref. AMTA Guide to Mobile Phone Base Station Deployment Code.

Adherence to the regulations is largely overseen by the Australian Telecommunications and Media Authority (ACMA) and Communications Alliance (CA) both of which are listed as independent bodies although CA has strong industry links including with Telstra, Optus and Vodafone therefore it would be reasonable to conclude their findings could be biased.

Based purely on compliance with the code, the AMTA has declared publicly that 5G is safe although this in no way acknowledges the published concerns of numerous scientists and the relatively short time period over which research has been collected and investigations carried out.

It would be prudent for Lane Cove Council to acknowledge the safety concerns initially raised by residents and seek more information about the risks of 5G exposure to human health.

RECOMMENDATION

That Council:

1. Call on the Federal Government to fund an investigation with an independent assessor to measure exposure to electromagnetic radiation in a number of sample sites in Lane Cove, including but not limited to; The Canopy, 79-83 Longueville Road, and 3 Rosenthal Ave overlooking the playground area in The Canopy. The investigation is to include the production of a report and include an evaluation of the health impacts on the human body of the levels of electromagnetic radiation identified in these areas;

2. Write to Ms Kylea Tink MP, Member for North Sydney, requesting her support to lobby the Commonwealth Government to undertake the investigation outlined in 1., to ensure community safety in relation to the rollout of 5G technology, such as restriction of cell towers in close proximity to schools and residences;

3. Seek Information from Randwick Council by formally requesting they provide copies of any officer reports, community submissions, and related correspondence concerning their decision to not support the installation of TPG cell towers. Additionally, seek clarification on the reasons behind their decision;

4. Contact Telstra, Optus, TPG and Vodafone to obtain:

a. Comprehensive product information regarding the new 5G technologies, including the process for testing air quality and radiation once towers are installed;

b. Details of how tower placement is determined, what factors are considered, and how they consult with businesses and residents;

c. Details about the types of radiation emitted by the infrastructure, their levels, installation guidelines for contractors, the ability to adjust radiation emissions, methods for measuring emissions, ongoing monitoring practices, and infrastructure lifespan; and

d. A full inventory of existing infrastructure locations and planned locations, including the less obvious and concealed cell towers and antennas.

5. Write to ARPANSA (Australian Radiation Protection and Nuclear Safety Agency to confirm the types of radiation emitted by 5G technology, established emission levels at safe distances from humans, research sources relied upon to assert the safety of 5G technology (including authorship and publication dates), whether non-thermal impacts on human health are considered in the research, methods for measuring the safety levels of emissions from 5G infrastructure, associated costs of obtaining measurement equipment, and the responsible authority for industry regulation ensuring adherence to safety and health standards; and

6. Receive a report on the outcomes of Parts 1-5.

Councillor Katherine Mort

Councillor

Councillor Scott Bennison

Councillor

ATTACHMENTS:

AT‑1 View	Guide to Mobile Phone Base Station Deployment Code	3 Pages	Available Electronically
AT‑2 View	The Lancet Planetary Health, Dec 2018	3 Pages	Available Electronically

Ordinary Council Meeting 20 July 2023

Tender for the Appointment of a Head Construction Contractor for the Lane Cove Sport and Recreation Facility

Subject: Tender for the Appointment of a Head Construction Contractor for the Lane Cove Sport and Recreation Facility

Record No: SU9227 - 39423/23

Division: General Managers Unit

Author(s): Craig Wrightson; Sebastian Stivala

Executive Summary

Council conducted a Selective Tender process in accordance with its Tender and Quotations Procedures for the appointment of a Head Construction Contractor for the Lane Cove Sport and Recreation Facility. Council invited five contractors to tender following the initial Expression of Interest process (Stage 1) and ultimately received three submissions in response to the Stage 2, Request for Tender.

This report provides details on the tender process conducted and recommends that Council decline to accept all tenders as none of the tenders received were within the construction cost allowance for Stage 2, included within the overall $75 million project budget. Further, the General Manager be authorised to undertake negotiations with the highest ranked contractor according to the selection criteria, being ADCO Group Pty Ltd, to enter into a contract that aligns with Council's nominated budget. The negotiation process shall finalise the scope, include design development of appropriate value engineering proposals to reduce costs, remove pricing exclusions, finalise the terms of the contract, and confirm program and delivery methodology.

Background

Council at its meeting of 20 April 2023, resolved:-

“That:-

1. The report be received and noted;

2. Council reaffirm its decision of 23 March, 2023 to proceed to tender for Stage 2 Construction Contractor (Major Works), with 80% design documentation and ADCO Group, AW Edwards, Grindley Construction, Prime Constructions and Richard Crookes Constructions be invited to tender;

3. A Councillor Workshop be conducted in May 2023, outlining the 80% detailed design development for the Sport and Recreation Facility, including QS Report and the design’s compliance with dark sky principles and light spill based on Ecologically Sustainable Development best practice;

4. Council Include in the tender documents for a 200kW net Solar PV array system and pricing for the Maximum Solar PV system (Circa 500kW) and option for the battery storage system to meet the power needs of the facility. Council understand that this ambition to achieve the operation energy demand on site by 100% renewable energy supply should be a priority in order to meet our emission target goals however it will be reviewed in line with the commitment to remain on budget for this project once tenders close and pricing is reviewed;

5. Council to research the opportunities available to utilise the Solar PV capacity beyond the operational energy demands of the building in order to provide additional green energy that may be of community benefit eg: use as a solar farm/garden for uptake of solar into apartment buildings in the local area;

6. Any proposed changes to the design arising from the May Councillor workshop be submitted to the next Council Meeting for consideration, and if adopted, issued as addendums to the tender documents; and

7. Council publish on the Sport & Recreation Facility page on the Council website a detailed explanation of measures implemented by Lane Cove Council responding to recommendations identified in the PriceWaterhouseCoopers report referenced in the North Sydney Council agenda for the Meeting on 26th April 2023.”

The current program for the project is as follows.

Activity	Council Res. Req’d	Start	Finish
Tender Period 2 – Construction (80% design)		May-23	Jun-23
Work Commencement - Demolition, Bulk Earth Works and Sediment Control (Per Resolution, Tenders must be within budget)		Jun-23	Jul-23
Tender Evaluation, Tender Award 2 – Construction	Yes	Jun-23	Jul-23
Detailed Site Investigation Stage 2 and Clearance		Jul-23	Jul-23
Work Commencement - Construction		Aug-23	Jan-25
Commissioning		Feb-25	Mar-25
Opening (excluding rain delays)		Apr-25

Per the program, Tenders for construction were called on 16 May 2023 and closed on the 26 June 2023. In line with Council’s March 2023 resolution, as the tenders were not within the construction cost allowance in the overall $75 million project budget, Stage 1 Early Works, which includes demolition and bulk earthworks did not commence before 30 June. Council formally notified the Office of Sport of the delayed commencement of the project, and they have advised that a formal variation is not required at this stage.

Discussion

Tender Scope

The project is generally described as a new sport competition and training facility that meets the community and leisure needs of the Lane Cove Local Government Area and Lower North Shore. The site is located 180 River Road, Northwood. The project scope is generally summarised as:

· Four (4) indoor multi-sport courts including two (2) show courts.

· Four (4) outdoor multi-sport courts (tennis / netball) including terraced seating.

· Four (4) flexible program spaces totaling more than 700m2 for recreation and leisure.

· A sustainable building that aligns with good practice design principles of local and international environmental standards as specified by consultants Steensen & Varming.

· Activities, functions, and events spaces (including a “golfer’s lounge” and provision for dance floor).

· Performance stage located on the stadium / show courts.

· Meeting Room.

· Kitchen, bar, and outdoor dining area.

· Reception, office, and administration.

· Golf and tennis pro-shop.

· Accessible toilets, changing places amenity, and male / female change rooms.

· Underground (naturally ventilated) car park.

· Enhanced pedestrian and bicycle access on the site

· Total project budget of $75M.

Tender Process

Council conducted a two stage Selective Tender process which commenced with an open Expression of Interest (EOI) process in accordance with Council’s Tender and Quotations Procedures. A total of seventeen (17) submissions were received for the EOI. A Tender Review Panel (TRP) was formed and evaluated EOI submissions on the categories of experience, personnel, financial strength, and methodology. Council at its 20 April 2023 endorsed the recommendation of the TRP to invite, in alphabetical order; ADCO Group Pty Ltd; AW Edwards Pty Ltd; Grindley Construction Pty Ltd; Richard Crookes Construction Pty Ltd; and Prime Constructions Pty Ltd to proceed to the Request for Tender (RFT) stage of the project.

The Request for Tender (RFT) documentation outlined the tender conditions and the scope of works to be priced. The RFT documentation was prepared by Council’s Project Management consultant, Forge Venture Management and included 80% design documentation developed by AJ+C Architects and their sub-consultant teams. The tender documentation was issued to the shortlisted five Contractors from the EOI stage on the 16 May 2023 and tenders closed on the 26 June 2023 following a six-week tender period. Council ultimately received three tender submissions from, in alphabetical order; ADCO Group Pty Ltd; Grindley Construction Pty Ltd; and Prime Constructions Pty Ltd.

Tender Evaluation Criteria

The tender evaluation criterion was agreed by the Tender Evaluation Panel (TRP). The tenders were evaluated against the following weighted criteria:

RFT - Evaluation Criteria	Weighting
Price	50%
Value Engineering	10%
Program & Methodology	20%
Personnel & Experience	20%
Work Health & Safety	Mandatory
Total	100%

Assessment by Tender Evaluation Panel

The Tender Evaluation Panel (TRP) consisted of:-

Name	Organisation	Role
Sebastian Stivala (Chair)	Lane Cove Council	Director of Major Projects
Martin Terescenko	Lane Cove Council	Executive Manager Open Spaces & Urban Services
Trevor Marinovich	Forge Venture Management	Senior Project Manager
Jason Richards	Forge Venture Management	Senior Project Manager

The TRP were advised by the following independent advisors:-

1. AJ+C Architects to review the merits of the value engineering submissions received.

2. Mitchell Brandtman Pty Ltd as the Quantity Surveyor to assess costs.

3. Colin Biggers & Paisley lawyers to assess exclusions on the contract.

4. Noble Shore as probity advisors.

Tenderers were assessed in two (2) parts:-

a. Non-Commercial submissions including value engineering, methodology, program, and proposed personnel; and

b. Price.

The Tender Evaluation Panel assessed the non-commercial portion of the submissions first without knowing prices, to not inflict bias on the assessment of the non-price criteria. Once finalised, the prices were brought into the evaluation matrix following assessment by Mitchell Brandtman, before finalising the weighted scores.

A copy of the Confidential Tender Evaluation Panel report has been circulated separately to Councillors. The following provides a summary of the tender assessment: -

RFT - Evaluation Criteria	Weighting	ADCO	Grindley	Prime
Price	50%	Preferred
Value Engineering	10%		Preferred
Program & Methodology	20%	Preferred
Personnel & Experience	20%	Equal Preferred		Equal Preferred
Work Health & Safety	Mandatory	Mandatory	Mandatory	Mandatory
Total	100%	Preferred

Following detailed consideration of the submissions, the TRP recommends that Council decline to accept all tender submissions as none of the tenders received were within the construction cost allowance for Stage 2, included within the overall $75 million project budget. Further, the General Manager enter into negotiations with ADCO Group Pty Ltd as the preferred tenderer, with the aim of entering into a contract that aligns with Council's nominated budget. The negotiation process shall finalise the scope, include design development of appropriate value engineering proposals to reduce costs, remove pricing exclusions, finalise the terms of the contract, and confirm program and delivery methodology.

The TRP has indicated that they do not believe there is any merit in calling for new tenders on the basis that the current submissions have been reviewed under a competitive tender process and the preferred proponent is suitably qualified and can demonstrate capacity and capability for the project. ADCO Group Pty Ltd were the head construction contractor for The Canopy, and the majority of the key personnel which undertook that project have been nominated for this project. Further, based on the value engineering proposals identified, via a post-tender negotiation process, Council's nominated budget and Principal Project Requirements can be achieved.

Regarding the method of Contract to be used for construction, to date Council has pursued, in accordance with Council’s resolutions, the use of a Lump Sum Price arrangement utilising a modified AS4000 lump sum contract, having gone to tender with 80% completed design documentation. This method of contracting prioritises a focus on design, with the construction contractor accepting no risk for the ‘buildability’ of the design. This scenario means that throughout the construction process, Council carries the cost risk for any design-related issues. This scenario was highlighted as a key cause of the issues associated with the review of the North Sydney Pool project by PWC. The following extract is relevant:

“Typically, in Local Government, councils enter novation agreements to reduce the risks associated with assuming responsibility for performance management and coordination of two separate but inter-reliant contracts. Such agreements often result in increased cost of contract, but significantly reduce the financial risks associated with managing separate contracts.”

Council, through the tender process, attempted to address this issue by introducing the concept of a ‘buildability’ clause within the standard AS4000 lump sum construction contract framework to shift some design risk onto the construction contractor. All tenderers did not accept the modified AS4000 lump sum construction contract as proposed, in particular, the conditions in relation to design and more specifically the 'buildability' clause.

On this basis, given Council’s commitment to a project cost of $75m, the TRP recommends that Council seek to mitigate cost risk for the project by switching to a form of contract that is more widely used as a cost risk mitigation measure, being the AS4902 lump sum design and construct contract. This change is also supported by the Project Control Group for the project which includes the project managers for the project, Forge Venture Management, the architects for the project AJ+C (Refer AT-1), and Colin Biggers & Paisley lawyers (Refer AT-2). AJ+C will remain the project architect throughout the construction phase until completion of the project. With 80% design completed, this will be included in the Principal’s Project Requirements in the contract to ensure the design as currently proposed is delivered, but within a framework where design risk is included in the lump sum contracted price.

As part of the further design development and cost reduction process, the following principles will be adhered to (in no particular order):-

1. The facility spaces and capacity within the design will be retained;

2. The design aesthetics of the building design will be retained; and

3. The project will retain a sustainable building design that aligns with good practice design principles of local and international environmental standards as specified by consultants Steensen & Varming.

Construction Program

Council has appointed Rainbow Constructions Pty limited to undertake the Stage 1 demolition, bulk earth works and sediment control works. Their submitted program of works was for a six-month period which finished in January 2024. With the delay in the commencement of their works, it will ultimately impact on the head construction contractor’s program.

All tenderers for the head construction contractor nominated a program which would have seen the project completed by the December 2025 deadline under the Office of Sport grant. This will be impacted by the delay in the commencement of Stage 1 Early Works, therefore if they can commence as soon as the negotiations are completed, it will assist in ensuring the timetable can still be met, despite the delayed commencement. It should be noted that all contractors committed to the early handover of the golf pro shop and associated parking spaces to allow normal golf course operations to return by January 2025 (subject to weather delays).

Project Funding

The following funding model is proposed for the project.

Source	Amount	Notes
General Funds	$33,500,000	Proceeds from 266 Longueville Road Long-Term Lease Income
s7.11 funds available	$25,000,000	The balance of s7.11 funds (not including the St Leonards South precinct separate funds) is $26,684,642 as at 30/6/2023.
Multi-Sport Community Facility Fund	$5,000,000	Council has been successful in obtaining the Grant, $2.5M has been received to date.
T-Corp 10yr Loan (with subsidised interest)	$10,000,000	Council has been successful in obtaining the Loan (which has been drawn down) with an effective interest rate of 2.2% fixed for 10 yrs.
Sustainability Levy	$1,500,000	Current Balance of Reserve plus 6 yr, $200k pa. commitment
Total	$75,000,000

Pending the commencement of construction, Council invested the $10 million loan funds at an interest rate of 4.6%, more than offsetting the loan’s interest rate of 2.2%. Funding for the loan repayments will be from revenue from Council’s commercial property portfolio, which includes tenancies at The Canopy.

Other Matters Relating to Council’s April Resolution

Enhanced Solar PV and Battery

The existing project includes a 200kw system which will supplement the energy needs of the facility. As part of the tender process, per Council’s April resolution, Council sought prices for expansion to 500kw of panels and a 200kwh battery, which would cost an additional, circa $600k-$700k. Council’s sustainability team has been investigating further options in relation to the expansion of the existing 200 kw system within the project, which can be summarised as follows:-

Upfront Capital

· Community funding through a Community Energy Group (e.g. Solar Garden model) with virtual plots offered to residents (with a financial return through the renewable energy generated). This is best delivered post-construction once the energy demands of the facility’s own operations are known through actual data rather than modeling, to identify what capacity would be available for use by others.

· Through a third-party finance provider, whereby they fund the upfront capital costs of the solar and battery system and the finance is repaid through either saving on energy costs at the facility and/or the on-selling of the energy to residents/businesses through a Virtual Power Plant or peer-to-peer trading platform.

· Grant Funding options include the Commonwealth Government, ARENA has 2 funding streams that may be of use - the Advancing Renewables Program (funding of $100,000 to $50 million, for projects that involve a renewable energy technology or technologies that increase the supply of, or improve the competitiveness of, renewable energy in Australia) noting that this stream requires matched funding from the applicant, and the Community Batteries funding (Round 2) which may be offered for battery projects with longer lead times if all funding from Round 1 is not expended. Council will need to discuss the suitability of the project with ARENA, which is in progress.

Operational Options

· On selling to local residents/businesses through a partner retailer/or multiple retailers via a Virtual Power Plant.

· On selling to local residents/businesses through a peer-to-peer trading platform

· On selling to local businesses through a Power Purchase Agreement

In terms of the next steps, if Council wishes to utilise the capacity for a ‘solar garden’ model, it is important that the facility’s actual operations be known first, to identify what capacity would be available for use by others. From Council’s research, on this basis, it isn't uncommon for solar PV and batteries to be installed 12 months after occupation. It is therefore proposed to continue to investigate the most suitable funding and operational models and seek grant funding options during construction including via ARENA, and should Council be unsuccessful during the construction period, commit to expansion of the system (project design to include suitable provisioning) within 18 months post-occupation once accurate facility usage data is available.

Councillor Workshop and Measures implemented by Council responding to recommendations identified in the PriceWaterhouseCoopers report on North Sydney Pool

A Councillor Workshop was held in May 2023 and was circulated to Councillors prior to tender, however no adjustments to the plans were required as a result.

Council staff prepared and have included on Council’s website a commentary on the matters that have been identified in the PwC external review of the North Sydney Olympic Pool Redevelopment Project from the publicly available information. In providing the commentary, Council in no way is commenting on or passing judgment on the matters identified, but rather to outline the actions taken in relation to the management of the project in respect of the issues identified. With the recommended change use of a modified AS4902 lump sum design and construct contract for the Head Construction Contractor, the website information will need to be updated.

Progression of Installation of Traffic Signals

Included as AT-3 is the program for obtaining approvals and construction of the traffic signals for entry and exit to the site, which is part of the overall project funding of $75m. As outlined in previous reports, Council has obtained in-principle support for the signals from TfNSW. Council has appointed an experienced external project manager for the project and a full program has now been developed targeting the signals becoming operational in November 2024.

Conclusion

It is recommended that Council decline to accept all tenders as none of the tenders received were within the construction cost allowance for Stage 2, included within the overall $75 million project budget. Further, the General Manager be granted delegated authority to undertake negotiations to enter into a contract with the highest ranked contractor according to the selection criteria, being ADCO Group Pty Ltd.

The negotiation process shall finalise the scope, include design development of appropriate value engineering proposals to reduce costs, remove pricing exclusions, finalise the terms of the contract, and confirm program and delivery methodology. Upon reaching agreement, Council will commence Stage 1 Early Works and enter into a contract utilising a modified AS4902 lump sum design and construct contract for the Head Construction Contractor within Council’s adopted $75M project budget.

RECOMMENDATION

That Council:

1. Decline to accept all tender submissions as none of the tenders received were within the construction cost allowance for Stage 2 included within the overall $75 million project budget;

2. Not call fresh tenders as the tender process has identified a suitable field of contractors who can complete the project and the current submissions have been reviewed under a competitive tender process and the preferred proponent is suitably qualified and can demonstrate capacity and capability for the project. Further, based on the value engineering proposals identified, via a post-tender negotiation process, Council's nominated budget and Principal Project Requirements can be achieved via more appropriate contractual arrangements;

3. Enter into negotiations initially with ADCO Group Pty Ltd as the preferred tenderer, with the aim of entering into a contract that aligns with Council's nominated budget;

4. Delegate authority to the General Manager to enter into negotiations with ADCO Group Pty Ltd as they are the highest ranked in the selection criteria. If no suitable outcome is achieved, undertake negotiations with the two other tenderers, and upon reaching an agreement, enter into a contract utilising a modified AS4902 lump sum design and construct contract for the Head Construction Contractor, within Council’s adopted $75M project budget. The negotiation process shall finalise the scope, include design development of appropriate value engineering proposals to reduce costs, remove pricing exclusions, finalise the terms of the contract, and confirm program and delivery methodology;

5. Adhere to the following principles in the design development and cost reduction process:-

a. The facility spaces and capacity within the design be retained;

b. The design aesthetics of the building design be retained;

c. The project retain a sustainable building design that aligns with good practice design principles of local and international environmental standards as specified by consultants Steensen & Varming;

6. Delegate authority to the General Manager to proceed with Stage 1 Demolition, Sediment Control, and Bulk Earthworks contractor (Early Works) works once the negotiations have been finalised and it has been determined that the project can proceed within the project budget and Councillors have been advised;

7. Pursue expansion of the 200kW net Solar PV array system included within the project to the Maximum Solar PV system (Circa 500kW) and provision of a 200kw battery via a grant from ARENA, and if unsuccessful during the construction period, commit to expansion of the system (project design to include suitable provisioning) within 18 months post-occupation, once accurate facility energy usage data is available; and

8. Receive a further report on the outcomes of the negotiations for information.

Craig Wrightson

General Manager

General Managers Unit

ATTACHMENTS:

AT‑1 View	AJ+C Architects Response - Method of Construction Contract	1 Page	Available Electronically
AT‑2 View	Colin Biggers Paisley Lawyers - Method of Construction Contract - Main Works	2 Pages	Available Electronically
AT‑3 View	Lane Cove Sport and Recreation Centre - LCSRC - River Road Traffic Signals Program	5 Pages	Available Electronically

Ordinary Council Meeting 20 July 2023

Proposed Partial Closure of Canberra Avenue - Proposed Extension of Newlands Park

Subject: Proposed Partial Closure of Canberra Avenue - Proposed Extension of Newlands Park

Record No: SU1326 - 36134/23

Division: Open Space and Urban Services Division

Author(s): Sashika Perera

Executive Summary

In April and July 2022, Council assessed the traffic impacts of construction and post construction traffic with respect to the partial closure of Canberra Avenue. The reports concluded that the proposed partial closure would have no noticeable impact on the road network in both scenarios.

The resolution from the July 2022 Council meeting deferred the commencement of the closure process subject to a further report outlining the process of the closure including associated community consultation and proposed design of the Duntroon Avenue/Canberra Avenue intersections be received by Council.

As per the above resolutions, this report outlines the process to consider a road closure, the consultation process and proposed design of the Duntroon Avenue/Canberra Avenue intersection.

It is recommended that Council now commence the process for closing Canberra Avenue between the proposed cul-de-sac to be located south of the Duntroon Avenue/Canberra Avenue intersection and River Road, integrate the land into Newlands Park and construct a roundabout at the Duntroon Avenue/Canberra Avenue intersection. This closure will provide an additional 4,400m² of open space to Newlands Park, which combined with the existing open space, will be the largest passive open space park in the Local Government Area (LGA).

Background

In May 2020, Council resolved as part of the adoption of the St Leonards South Local Environmental Plan amendment, to commence the process to close part of Canberra Avenue, between River Road at its intersection with Duntroon Avenue to integrate the land into Newlands Park.

Subsequently, in February 2022, a Notice of Motion was passed to defer the closure of Canberra Avenue until further work was undertaken, namely assessing the cumulative impact of construction and post construction traffic on the closure of Canberra Avenue.

A report to Council in April 2022 outlined the cumulative impact of construction and post construction traffic with the partial closure of Canberra Avenue. The report outlined an overarching approach to managing concurrent construction sites and indicated that the closure of Canberra Avenue will have minimal impact to the road network once Area 7-11 construction is complete. Further to this, it was confirmed that Duntroon Avenue will not be permitted for use by construction traffic accessing the St Leonards South precinct.

A further report to Council in July 2022 Council report assessed the post construction traffic impacts with respect to the closure and concluded that the traffic impacts would be minimal and it was resolved that:-

1. “Council receives a further report once construction of projects in Canberra Avenue have commenced, outlining the process to consider a road closure, including the associated consultation processes and proposed design/configuration of the Duntroon Ave/Canberra Avenue intersection; and

2. Council affirms Item 6 of resolution 23/2022, that no action will be taken in respect of any future closure of Canberra Avenue without a further resolution of Council to commence the road closure process.”

Discussion

The closure of Canberra Avenue between River Road and Duntroon Avenue will result in the expansion of Newlands Park. Originally, the closure of Canberra Avenue was estimated to result in an additional 3000m² of open space. However, the configuration of the approved Development Application for Areas 7-11 indicates that the closure will now result in an additional 4,400m² of open space. This will increase the current area of Newlands Park from 10,119m² to 14,519m², creating the largest passive open space park in the Local Government Area (LGA). The extent of the park and its area are shown in the Concept plan in AT-1.

As identified in the April 2022 Council report, the construction works associated with the closure of Canberra Avenue will take place near the completion of construction of Areas 7-11, circa late 2025. Should the closure ultimately proceed, the developer of Areas 7-11 will construct under a Voluntary Planning Agreement, a cul-de-sac and a basic conversion of the road pavement to park lands. incorporating a shared user path. Council would, leading up to the closure, undertake further design work with the community to develop a Masterplan for the park for implementation.

When the original proposal for closure was developed, there was some concern from residents that live on the southern side of River Road between the railway line and Russell Street, that if Canberra Avenue is partially closed, they will have difficulty accessing their properties when travelling from a westerly direction. Currently, some of these residents when travelling east on River Road use Canberra Avenue and Duntroon Avenue as a route to do a U-turn and return onto River Road in a westerly direction. This allows them to turn left into their driveways off River Road.

To address this concern, Council has proposed the provision of a roundabout at the intersection of Duntroon Avenue/Canberra Avenue, refer Figure 1. This roundabout will facilitate U-turns for these vehicles so they can maintain their current practice. It also has the added benefit of acting as a traffic calming device for vehicles travelling along Canberra Ave and Duntroon Avenue.

A map of a river

Description automatically generated

Figure 1 – Proposed roundabout at the Duntroon Avenue/Canberra Avenue intersection

The current route and proposed route for residents living south of River Road are shown in AT-2 and AT-3.

The advantages and disadvantages of the closure is as follows:

Advantages	Disadvantages
Larger green space (additional 4,400m² of open space to be created)	When coming from the west, some residents cannot use Canberra Avenue to facilitate a u-turn
Driveway access to Top Springs located further away from River Road
Improved pedestrian and Bike access
Reallocation of existing road space to open space
Provision of a roundabout at Duntroon Avenue as opposed to give way control intersection

Process for the Road Closure

The relevant sections of the Roads Act 1993 to commence the closure process are as follows: -

38A When council may close council public road

A council may propose the closure of a council public road for which it is the roads authority if—

(a) the road is not reasonably required as a road for public use (whether for present or future needs), and

(b) the road is not required to provide continuity for an existing road network, and

(c) if the road provides a means of vehicular access to particular land, another public road provides lawful and reasonably practicable vehicular access to that land.

38B Notification of proposal to close council public road

(1) A council that is proposing to close a council public road must cause notice of the proposal—

(a) to be published in a local newspaper, and

(b) to be given to—

(i) all owners of land adjoining the road, and

(ii) all notifiable authorities, and

(iii) any other person (or class of person) prescribed by the regulations.

(2) The notice—

(a) must identify the road that is proposed to be closed, and

(b) must state that any person is entitled to make submissions to the council with respect to the closing of the road, and

(c) must indicate the manner in which, and the period (being at least 28 days) within which, any such submission should be made.

38C Public submissions and formal objections

(1) Any person may make submissions to the council with respect to the closing of the road in the manner and within the period specified in the notice published under section 38B.

(2) Without limiting subsection (1), a notifiable authority in relation to the road may include a statement in the authority’s submission to the effect that the authority formally objects to the closing of the road. The authority may withdraw the objection any time by written notice given to the council.

Community Consultation

Statement of Intent

The consultation is designed to inform nearby residents and authorities of the proposed partial closure of Canberra Avenue St Leonards. Any comments received will be reviewed and evaluated to determine whether to proceed with the partial closure.

Method

As resolved by Council in February 2022 the consultation area will be bounded by Pacific Highway, North Shore Railway Line, River Road (including Wollstonecraft residents fronting River Rd, opposite Newlands Park and in Boronia St) and Greenwich Road. The consultation area is shown below in Figure 1.

Level of Participation	Consult	Consult
Form of Participation	Open	Targeted
Target Audience	Lane Cove Community	Properties resolved by Council
Proposed Medium	Enewsletter, Website Exhibition, Survey	Letterbox drop and signage on site
Indicative Timing	August 2023 - 6 weeks	August 2023 - 6 weeks

Figure 2: Consultation Area for the Canberra Avenue Closure

Conclusion

Council plans to commence the process for closing Canberra Avenue between River Road at its intersection with Duntroon Avenue to integrate the land into Newlands Park. This will result in an additional 4,400m² of open space, creating the largest passive open space park in the LGA.

The Canberra/Duntroon Avenue will include the provision of a roundabout to ensure that residents living south of River Road and heading west can still access their properties.

The construction works for the Canberra Avenue closure will take place near the completion of construction of Area 7-11.

RECOMMENDATION

That Council:

1. The report be received and noted;

2. Undertake Community Consultation and public notification for the partial closure of Canberra Avenue between River Road at its intersection with Duntroon Avenue to integrate the land into Newlands Park, as outlined in the report; and

3. A further report on the outcome of the Community Consultation be submitted to Council for a decision on the road closure by Council.

Martin Terescenko

Executive Manager - Open Space and Urban Services

Open Space and Urban Services Division

ATTACHMENTS:

AT‑1 View	Canberra Avenue Additional Open Space	1 Page	Available Electronically
AT‑2 View	Canberra Avenue - Current Flow	1 Page	Available Electronically
AT‑3 View	Canberra Ave - Proposed Traffic Flow	1 Page	Available Electronically

Ordinary Council Meeting 20 July 2023

Investment Portfolio Review

Subject: Investment Portfolio Review

Record No: SU3038 - 28605/23

Division: Corporate Services Division

Author(s): Sarah Seaman

Executive Summary

This report has been prepared in response to a Council Resolution to investigate options to invest Council funds with financial institutions that have stated they do not lend to organisations within the coal and gas sectors and to outline a plan for divestment. It is recommended that if council wishes to proceed, alterations will be required to Council’s investment policy to facilitate implementation of the revised investment mandate.

Background

At the April 2023 Council Ordinary Meeting, Council resolved the following:

“To report back on our current investment exposure with the coal and gas sector, options to invest cash with institutions that have statements on not lending to coal and gas sectors and outline a plan for divestment.”

Council’s investment portfolio, as at 31 March 2023, was made up of the following:

Fossil Fuel Lending Authorised Deposit Taking Institution	88%
Non-Fossil Fuel Lending Authorised Deposit Taking Institution	9%
Socially Responsible Investments	3%

Council’s independent investment advisor, Prudential Investment Services Corp, were engaged to prepare a ‘transitioning to a non-fossil fuel / socially responsible investment portfolio’ discussion paper outlining the key matters to consider in such a transition. It should be noted that due to the limitations in the current adopted Investment Policy, Council is unable to transition to a 100% non-fossil fuel lending strategy without an amendment to the adopted Investment Policy. This is primarily due to the existing credit rating limitations that apply to financial institutions that are non-fossil fuel lenders.

However, Council could divest its investment portfolio into a combination of Socially Responsible Investments and non-fossil fuel aligned institutions by amending the credit risk profile of its adopted Investment Policy.

Socially Responsible (or Green) Investments are where the proceeds of the bonds are associated with specific Environmental, Social and Governance (ESG) projects such as wind farms, solar power and low carbon transport options.

A copy of the report prepared by Prudential Investment Services Corp is provided as AT-1.

Discussion

In order to transition to a non-fossil fuel and socially responsible investment portfolio, the following matters would need to be considered;

Update the Investment Policy

Essentially, there are 2 fundamental changes required to the current adopted Investment Policy.

1. Update the portfolio limits within our adopted Investment Policy as advised by Prudential Investment Services Corp (Prudential) which would allow Council to invest more funds with non-fossil fuel aligned institutions such as Suncorp Bank and Bendigo/Adelaide Bank.

For example, at present, there is a portfolio maximum limit of 20% that applies to all BBB rated financial institutions in our adopted Investment Policy. Prudential has suggested this maximum limit be itemised as follows:

BBB+ Institutions - increased from 20% to 35%

BBB Institutions – reduced from 20% to 15%

BBB- Institutions – reduced from 20% to 0%

Whilst there have been some recommended portfolio limit reductions relating to BBB and BBB- institutions, the recommended increase in BBB+ institutions from 20% to 35% does present a fundamental change in Council’s credit risk profile. Put simply, Council would be exposing itself to an increasing number of institutions that do not have same capacity to meet its financial commitments as A, AA or AAA rated institutions.

2. Incorporate a Non Fossil Fuel / Socially Responsible Investment strategy or statement into the Investment Policy. Possible wording is provided below:

Socially Responsible and Non Fossil Fuel Investments

When making investment decisions, Council will give preference to green investment options and to institutions that do not invest in or finance the fossil fuel industry.

Socially responsible and non fossil fuel investment considerations will be part of Council’s overall risk management process to best meet its investment strategy objectives while ensuring compliance with prevailing legislation and this Investment Policy.

This Policy acknowledges the long term strategy of Council is to identify those investments that are socially responsible, benefit the community and progress society toward a more sustainable future.

Fossil Fuel Vs Non Fossil Fuel Aligned Institutions and Socially Responsible/Green Investments

Where possible, Council would invest in Socially Responsible/Green Investments or non-fossil fuel aligned institutions. However, it should be noted there may be constraints in the current investment market that might make this difficult, including the availability of investment products offered at any given time, the prudency of maintaining a diverse portfolio that minimises the risk to Council’s capital investment, and ensuring that Council can comply with its own Investment Policy parameters.

For example, there may be occasions where there are no Socially Responsible Investments available and/or the non-fossil fuel institutions are not accepting new investments, or we have reached our policy limit with the individual non-fossil fuel lending institution.

Yield Tolerance

Council is currently receiving very good interest on investment income returns which is assisting Council fund its recurrent operations and new initiatives. It is recommended that consideration be given to a ‘Investment Return Yield Tolerance’ of not more than 10 basis points (0.10%) so as to not forego a more financially attractive investment product the market may be offering at the time.

To give some sort of indication into what a 10 basis point differential means in the context of Council’s current investment portfolio, a 10 basis point differential on a $122,000,000 investment portfolio balance equates to $122,000 in interest on investment returns per annum.

No Break fees

It is strongly recommended that Council not incur break fees by divesting in current Investments before they mature. All of Council’s current term deposits would need to progressively mature over the next 12 months.

Conclusion

This report outlines the exposure council currently has with fossil fuel aligned institutions and the key matters to consider should Council wish to transition to a non fossil fuel and/or a socially responsible investment strategy.

RECOMMENDATION

That Council:

1. Receive and note this report, together with the investment advice received from Council’s Investments Advisor, Prudential Investment Services Corp; and

2. Determine whether it wants to pursue an Investment Portfolio that either wholly or partly preferences the placement of investments with non-fossil fuel aligned financial institutions and socially responsible investments, noting that a revised Investment Policy incorporating the matters raised in this report and the investment advice would need to be drafted and brought back to Council for its consideration.

Steven Kludass

Executive Manager - Corporate Services

Corporate Services Division

ATTACHMENTS:

AT‑1 View

Investment Strategy Analysis

18 Pages

Available Electronically

Ordinary Council Meeting 20 July 2023

Introduction of Wildlife Protection Areas

Subject: Introduction of Wildlife Protection Areas

Record No: SU4914 - 29648/23

Division: Open Space and Urban Services Division

Author(s): Jeff Culleton

Executive Summary

Council is proposing to list its bushland reserves (areas zoned as C2 under the Local Environment Plan) as Wildlife Protection Areas (WPA’s) under the NSW Companion Animals Act 1998 to manage the impact of introduced predators on native wildlife.

It is recommended that this proposal be put on public consultation for the period of 6 weeks.

Background

A fauna survey conducted in 2020 as well as resident and staff reports found that domestic and feral animals are preying on native wildlife in bushland reserves. These findings are backed by wildlife rescue organisations.

Under the NSW Companion Animals Act (1998), domestic cats are permitted to freely roam onto any property, regardless of its ownership or function. The only exceptions to this provision are public areas where food preparation facilities are provided (i.e. park picnic/BBQ areas) and places designated by a Council as Wildlife Protection Areas.

Councils typically designate significant bushland reserves or wetlands as "Wildlife Protection Areas" (WPA’s) to provide increased protection to native wildlife from the harmful effects of cat predation. Domestic (owned) cats are not allowed to enter Wildlife Protection Areas, so cat owners have a responsibility to prevent their cats from entering these areas. Council is still proposing to allow dogs in bushland areas as long as they are on a leash.

Other Councils in the Sydney-North region, including North Sydney, Ryde, Hornsby, Ku-ring-gai, Northern Beaches and Willoughby have already declared WPAs in their local bushland reserves.

By adopting this proposal Lane Cove Council would fall in line with surrounding councils that have already endorsed wildlife protection for bushland. Furthermore, Lane Cove would contribute significantly by adding valuable protected habitat for vulnerable and endangered fauna species.

Discussion

The ability for bushland reserves to support viable, long-term populations of native wildlife is compromised by the intrusion of feral animals and uncontrolled domestic pets. Studies show that predation of native wildlife by cats (both feral and domestic) can have serious implications for the viability of native species, particularly small birds and reptiles in urban bushland.

Since the implementation of regionally coordinated fox baiting which started over 20 years ago, wildlife such as Long nosed Bandicoots, Swamp Wallabies and Brush Turkeys have naturally re-colonised bushland reserves on Sydney’s lower north shore including Lane Cove’s bushland reserves.

Council’s adopted strategic plans of management including Bushland Plan of Management, Dog Strategy, Sustainability Action Plan and Community Strategic Plan have recommended that Council’s bushland reserves be declared as Wildlife Protection Areas.

This report proposes an integrated approach to managing cat predation of native fauna whereby bushland reserves are declared as WPA’s, legally requiring owners to prevent their cats from entering these reserves.

For Council to have the legislative powers to remove domestic cats from its bushland reserves they need to be declared WPAs under the NSW Companion Animals Act 1998. It is recommended that Council declare all areas zoned as C2 Environmental Conservation (Bushland) under the Local Environment Plan within Lane Cove Local Government Area as Wildlife Protection Area’s under the NSW Companion Animals Act 1998 section 30 (1.b).

Active management of cats in bushland is most successfully carried out through targeted education of local residents and strategic trapping programs in WPA’s. It is intended to reunite owners with any cats that have been caught in our bushland reserve.

An outdoor cat faces daily dangers, including the risk of getting hit by a car, fighting with other cats, being poisoned or harmed, encountering roaming dogs, getting lost, contracting diseases such as Feline Immunodeficiency Virus, or being dumped.

This declaration, in coordination with community education encouraging responsible behaviour and equipping pet owners with the necessary information, will assist them to understand the impact their cat is having on wildlife and what impacts roaming outdoors has on cats, ensuring our native fauna is protected whilst increasing the life expectancy of pet cats. Research shows that the average lifespan of a cat that live indoors exceeds that of a cat that is allowed to roam outdoors by 10 years.

Taking into consideration our neighboring Council, North Sydney has similar bushland ecology, size and fragmentation from National Parks it is recommended that Council follow the same Wildlife Protection structure, which is to ban cats in its bushland reserves, whilst allowing dogs on leash.

It is considered that the current arrangement for dogs being allowed in bushland reserve on leash should continue as this is a long-standing arrangement in the LGA and has minimal impact on our fauna.

Community Consultation

Statement of Intent

The consultation is designed to seek feedback from the community for the proposal to declare Lane Cove Council’s Bushland reserves as Wildlife Protection Areas. Any comments received will be reviewed and evaluated to determine whether any revisions are required to the proposal prior to adoption.

Method

Level of Participation	Consult	Consult	Consult
Form of Participation	Open	Targeted	Targeted
Target Audience	Lane Cove Community	Relevant Council Advisory Committees	Local Community groups
Proposed Medium	Website Survey, eNewsletter and Social Media.	BMAC	Notification Letters eg Lane Cove Bushland and Conservation Society
Indicative Timing	June – July 2023

Conclusion

It is recommended that the proposal to declare all areas zoned as C2 Environmental Conservation (Bushland) under the Local Environment Plan within Lane Cove Local Government Area be as Wildlife Protection Area’s under the NSW Companion Animals Act 1998 section 30 (1.b) be put on public consultation for a period of 6 weeks commencing June – July 2023.

RECOMMENDATION

That Council:

1. Council undertake community consultation on the proposal to declare its bushland reserves as Wildlife Protection Areas under the NSW Companion Animals Act 1998;

2. Council undertake community consultation for a period of six (6) weeks as per the consultation strategy outlined in the report; and

3. Following the consultation period, a report on any submissions received and any proposed amendments, be reported to Council.

Martin Terescenko

Executive Manager - Open Space and Urban Services

Open Space and Urban Services Division

ATTACHMENTS:

There are no supporting documents for this report.

Ordinary Council Meeting 20 July 2023

Proposed Review of Ward Boundaries

Subject: Proposed Review of Ward Boundaries

Record No: SU821 - 33027/23

Division: Corporate Services Division

Author(s): Stephen Golding

Executive Summary

Council is required under Section 211 of the Local Government Act, 1993 to monitor and review Ward Boundaries to ensure the number of electors in the respective Wards does not vary by greater than 10%. The NSW Office of Local Government, Council Circular 23-05, advised that Councils must review their Ward Boundaries and notify the NSW Electoral Commission (NSWEC) of any changes to Ward Boundaries and/or Names by 5 October 2023.

Due to the population growth that occurs throughout Lane Cove, there is a variation of greater than 10% in the number of electors in each of the three Wards. Therefore, as a result, this report proposes various revised Ward Boundaries options, with a preferred option, as(Option 3) indicated in AT-1 to this report, that addresses the current population variance trend occurring in the three Wards with consideration to the growth in electors due to developments being undertaken in West and East Wards, to be endorsed for community consultation purposes.

Background

Under Section 211 of the Local Government Act 1993 (“The Act”), councils are required to review their wards and alter them if the number of electors in one ward in its area differs by more than 10% from the number of electors in any other ward in its area.

Council last resolved to alter its Ward Boundaries at the Ordinary Meeting of Council held on 2 December 2019, to ensure the variation in Wards was less than 10%. That adjustment saw boundary changes to the West and Central Wards with a shift that decreased the West Ward and increased the Central Ward, resulting in no individual Ward having a greater variance of 10%.

Discussion

The NSW Electoral Commission Information supplied Enrolment by Variance of Wards, as of April 2023, shows Lane Cove Council having a variance of 10.8%

Ward	Number of Electors	Variation
Central	8,526	10.8%
East	8,659	9.1%
West	9,449	Highest
TOTAL	26,634

The current status of the variance in Council’s Boundaries based on the Enrolment Council Area statistics (AT-2) as at 20 June 2023 is as follows;

Ward	Number of Electors	Variation
Central	8,557	11.2%
East	8,720	9.1%
West	9,513	Highest
TOTAL	26,790

As a result of this variation, a review has been undertaken of the Ward Boundaries to ensure there is a no greater than 10% variation in the number of electors in the three (3) Wards, which would ultimately apply for the next Ordinary Election of Council, scheduled for Saturday 14 September 2024.

The review has focused on reducing the number of electors in the most populous Ward, that being West Ward. Upon review, the following options were considered;

Option 1

That 212 electors from the area generally east of Burns Bay Road, north of Water View Drive Street and west of Hartman Hill Reserve be transferred from West Ward to Central Ward (AT-3 SA1 Reference 1-2101-1686-05). This option provides a balanced variation of Central and East Wards when compared to West Ward. (AT-4 and AT-5)

Ward	Number of Electors	Variation
Central	8,769	6.1%
East	8,720	6.7%
West	9,301	Highest
TOTAL	26,790

Option 2

That 294 electors from the area generally bounded by Landers Road, Centennial Avenue, Parklands Avenue and Epping Road, be transferred from West Ward to Central Ward (AT-3 SA1 Reference 1-2101-1399-37). Whilst this is a legitimate option in terms of the outcome (the resultant figures) it achieves, it does not take into consideration the main road boundary being Epping Road that clearly distinguishes the West Ward from the Central and East Wards for our citizens.(AT-6 and AT-7)

Ward	Number of Electors	Variation
Central	8,851	4.2%
East	8,720	5.7%
West	9,219	Highest
TOTAL	26,790

Option 3

That 628 electors from the area generally east of Burns Bay Road, south of Waterview Drive, and north west of Burns Bay foreshore and Burns Bay Reserve be transferred from West Ward to Central Ward (AT-3 SA1 Reference 1-2101-1686-05 and 1-2101-1686-33).

This is the preferred option, as it;

· Addresses the geographically odd shaped interface between West Ward and Central Ward;

· Addresses the recent trend of electoral growth occurring in East and West Wards, relative to Central Ward; and

· Has regard for the likely impacts of development occurring in the LGA in the immediate future which are primarily in West and East Wards.

Ward	Number of Electors	Variation
Central	9,185	Highest
East	8,720	5.3%
West	8,885	3.4%
TOTAL	26,790

Community Consultation

Prior to adopting the revised Ward Boundaries, Council is required to place the preferred option on exhibition for 28 days and, concurrently, allow 42 days for public submissions. The NSW Electoral Commission requests Councils align, where possible, Ward Boundaries with State and Federal Electoral Boundaries and SA1s.

Statement of Intent

The consultation is designed to seek the community views on Council’s proposed changes to the Ward Boundaries and will take place for the required period. Comments received will be considered on the suitability of the proposed boundaries, having regard to the Council’s obligation to have Wards, in terms of the number of electors, within a 10% range of each other as required by Section 211 of the Local Government Act.

Method

Level of Participation	Inform	Consult	Consult
Form of Participation	Open	Targeted	Open
Target Audience	Lane Cove Community	Impacted Residents	Lane Cove Community
Proposed Medium	- Website - eNewsletter - Social Media	- Notification to impacted residents	- Website Exhibition with Survey - Written Submissions
Indicative Timing	21 July 2023 to 3 September 2023

Conclusion

The three options provide a basis for achieving the rebalancing of the numbers of electors within each Ward. Option 1 achieves the rebalance with logical main road boundaries but has limited capacity to accommodate the anticipated growth of electors in West and East Wards due to developments. Option 2 achieves the rebalance but doesn’t maintain logical main road boundaries and also has limited capacity to accommodate the anticipated growth of electors in West and East Wards due to developments. Option 3 is the preferred option as it achieves the rebalance with logical main road boundaries and provides greater capacity to accommodate the anticipated growth of electors in West and East Wards due to developments.

RECOMMENDATION

That:-

1. The information be received and noted;

2. Council place on public exhibition the proposed new Ward Boundaries (Option 3), as depicted in AT-1, in accordance with the consultation strategy outlined in the report; and

3. Following the consultation period, the outcomes be reported back to the September Council meeting for determination of the new Ward Boundaries prior to the 5 October 2023 deadline.

Steven Kludass

Executive Manager - Corporate Services

Corporate Services Division

ATTACHMENTS:

AT‑1 View	Draft - LCC Ward Boundaries Option 3	1 Page	Available Electronically
AT‑2 View	Draft - LCC Ward Boundaries Option 3 - Aerial	1 Page	Available Electronically
AT‑3 View	Lane Cove Council - Electoral Statistics per Ward as at 20 June 2023	1 Page	Available Electronically
AT‑4 View	Draft - LCC Ward Boundaries Option 1	1 Page	Available Electronically
AT‑5 View	Draft - LCC Ward Boundaries Option 1 - Aerial	1 Page	Available Electronically
AT‑6 View	Draft - LCC Ward Boundaries Option 2	1 Page	Available Electronically
AT‑7 View	Draft - LCC Ward Boundaries Option 2 - Aerial	1 Page	Available Electronically

Ordinary Council Meeting 20 July 2023

IPART- Draft Report on the Rate Peg Methodology Review

Subject: IPART- Draft Report on the Rate Peg Methodology Review

Record No: SU914 - 39505/23

Division: General Managers Unit

Author(s): Craig Wrightson

Executive Summary

IPART has recently released its draft report on the review of the rate peg methodology. The draft report proposes changes to the way IPART calculates the rate peg to address concerns regarding the current rate peg methodology.

Council has been requested to submit its feedback to IPART, and the submission deadline was on 4 July 2023. Since the submission deadline preceded the next Council meeting, a submission was lodged by Council staff by the closing date.

Overall, the new approach is welcomed and supported. IPART's draft recommendation offers improvements over the existing methodology and should be implemented without delay. It is recommended that Council endorse the lodged submission.

Background

The rate peg refers to the maximum percentage by which a council can increase its annual rates income. IPART, acting as a delegate for the Minister for Local Government, sets this percentage annually. The current rate peg methodology uses the Local Government Cost Index (LGCI) to measure the change in all councils' base costs, providing an average annual cost change across NSW.

The rate peg serves two main purposes:

· It enables Council to annually increase rates income to align with the estimated increase in the cost of providing the current services and service level to the community while maintaining our financial sustainability.

· It sets a limit on rate increases, preventing Council from raising rates income beyond the estimated cost changes determined by IPART. Any further increase to fund additional services, service improvements, or population growth must be approved by IPART through a Special Rate Variation (SRV) process and necessitates engagement with the community.

In recent times, stakeholders have raised concerns about the determination of the rate peg, particularly regarding how changes in councils' cost base are measured. In response to these concerns, the NSW government has requested that IPART conduct a review of the current rate peg methodology. The aim is to develop an improved methodology that enables councils to annually adjust their general income, considering forward-looking factors such as inflation, other external influences, and population growth. The goal is to create a more comprehensive and responsive approach to ensure the financial sustainability of councils while considering various factors that impact their revenue and expenditure.

Discussion

The Draft Report suggests improving the existing rate peg methodology through the implementation of the following recommendations:

a. Measure the annual change in councils' base costs by three groups instead of one, divided into metropolitan, regional, and rural councils. This is intended to better account for the diversity of councils' base cost patterns.

b. Use a new Base Cost Change (BCC) model to measure the annual change in costs. The proposed new model would comprise three components measuring changes in:

i. Employee costs (including wages and superannuation)

ii. Asset costs

iii. All other operating costs (including administration, utility costs, and insurance)

c. Use 'forward-looking indicators' to estimate the change in each BCC component.

d. Use financial information reports in Councils' Financial Data Returns (FDR) from the most recently reported 3-year period to calculate the weighting for each of the BCC components.

e. Make a council-specific adjustment for the Emergency Services Levy (ESL) contributions changes.

f. Make additional adjustments to capture costs driven by external factors.

g. Improve the accuracy of the population factor by only deducting the increase in residential supplementary valuations.

IPART is proposing to implement the improved methodology in a staged process, with some changes implemented in the 2024-2025 rate peg, and the remaining changes in 2025-2026.

Financial Implications

The draft review and recommendations are currently in their preliminary stage, however staff have modelled as a comparison the historic Rate Peg indexation vs the proposed Rate Peg Indexation methodology, refer the table below. The modelling shows that due to the inadequacy of the current methodology, Council has effectively forgone $2.68M since 2016/17. During this time Council did receive $2.98M from new dwellings, which has effectively been absorbed (bar $300k) by the Rate Peg not adequately addressing the increased costs faced by Council to maintain existing services.

	Original Yields						Revised Yields with Preferred BCC
	Existing Yield $000	New Dwelling $000	Total Yield $000	Rate Peg %	Rate Peg $000	Income $000	Existing Yield $000	New Dwelling $000	Total Yield $000	Rate Peg %	Rate Peg $000	Income $000	Diff’ erence $000
2016-17	21,804	533	22,337	1.8	402	22,739	1,804	533	22,337	2.8	625	22,962	223
2017-18	22,739	0	22,739	1.5	341	23,080	2,962	0	22,962	2.5	574	23,536	456
2018-19	23,080	318	23,398	2.3	538	23,936	3,536	318	23,854	2.4	573	24,427	491
2019-20	23,936	398	24,334	2.7	657	24,991	4,427	398	24,825	2.3	571	25,396	405
2020-21	24,991	600	25,591	2.6	665	26,257	5,396	600	25,996	2.1	546	26,542	285
2021-22	26,257	31	26,288	2.0	526	26,813	6,542	31	26,573	1.7	452	27,025	211
2022-23	26,813	293	27,106	2.0	542	27,649	27,025	293	27,318	2.1	574	27,891	243
2023-24	27,649	812	28,461	3.7	1,053	29,514	27,891	812	28,703	4.1	1,177	29,880	367
Total Yield new Dwellings								2,985	Total Yield Forgone				2,681

Ultimately, implementing an improved rate peg methodology could have both short-term and long-term financial implications. The changes in the methodology will impact the annual rates income for Council, potentially allowing for better alignment with the cost of providing services and maintaining financial sustainability.

While Council welcomes the review and supports IPART's recommendations for changes to the rate peg methodology, it is important to highlight that the rate-pegging system severely compromises Council's ability to meet residents' expectations. The current system significantly contributes to the financial challenges faced by the council. Considering the practices across the rest of Australia, the best course of action would be to eliminate rate pegging entirely. This approach would demonstrate genuine trust in local government from the state government and provide an appropriate remedy to the ongoing financial difficulties experienced by the local government sector.

Conclusion

Overall, the proposed changes to the rate peg methodology offer a more comprehensive and responsive approach to address concerns raised by stakeholders. By incorporating multiple factors and improving the accuracy of cost measurement, the new methodology has the potential to better align rates income with the cost of providing services. Council's endorsement of the submission included as AT-1 will demonstrate its support for these improvements and contribute to the ongoing discussion on enhancing the financial sustainability of local government.

RECOMMENDATION

That Council endorse the attached submission lodged with IPART.

Craig Wrightson

General Manager

General Managers Unit

ATTACHMENTS:

AT‑1 View

IPART Review of the Rate Peg Methodology - Submission on Draft Report

3 Pages

Available Electronically

Ordinary Council Meeting 20 July 2023

Audit, Risk and Improvement Committee (ARIC) - Draft Charter and Expression of Interest for New Independent External Members

Subject: Audit, Risk and Improvement Committee (ARIC) - Draft Charter and Expression of Interest for New Independent External Members

Record No: SU740 - 33171/23

Division: Corporate Services Division

Author(s): Stephen Golding

Executive Summary

The purpose of this report is to present to Council the Draft Audit, Risk and Improvement Committee (ARIC) Charter (AT-1) and inform Council that expressions of interest are about to commence in relation to procuring three (3) independent external members to the ARIC.

Background

In 2008, the Office of Local Government first released Guidelines to encourage councils to establish an Audit Committee, risk framework and internal audit functions. Council, at its meeting of 20 April 2009, resolved to establish an Audit Committee in accordance with the Guidelines and the Committee has continued to operate since that time.

In 2019, the NSW Government proposed changes under the Local Government Act, 1993 that each Council have an Audit, Risk and Improvement Committee (ARIC). Under the ARIC Guidelines (not yet legislated), councils and joint organisations are not required to establish a risk management framework and internal audit function that complies with the Guidelines until 30 June 2024. However, councils and joint organisations should start taking steps to establish a risk management framework and internal audit function or to transition their existing risk management and internal audit arrangements to comply with the Guidelines.

The Guidelines set out membership requirements for ARICs. Councils and joint organisations are not required to comply with these requirements until June 2024. This allows for a transition period for the membership requirements of Council’s existing Internal Audit Committee to comply with the new requirements. The Office of Local Government has indicated that the key components of the ARIC Guidelines will be legislated later in 2023.

Discussion

Draft ARIC Charter

Over the past 12 months, Council’s Internal Audit Committee has turned its mind to transitioning to a fully-fledged ARIC by June 2024. The Draft ARIC Charter, developed in accordance with the ARIC Guidelines and the model template contained within the Guidelines, has been endorsed by the current independent members of the Committee and speaks to the expanded role the Committee has in relation to audit, risk and improvement.

The Draft ARIC Charter, attached as AT-1, includes the following:

· Objectives of the Committee

· Composition and Tenure

· Roles and Responsibilities

· Code of Conduct

· Reporting

· Decision Making and Deliverables

Attention is drawn to the ‘Composition and Tenure’ section of the Charter where it is stated that the ARIC comprise three (3) independent external members with voting rights. Councils have the option of appointing one non-voting councillor member to their ARIC who meets the eligibility criteria for councillor members.

It should be noted that the Mayor cannot be appointed as a Councillor member on a council’s ARIC. This is consistent with the Circular issued by the OLG (Circular 22/21 issued on 20 July 2022 (refer to link below). As the Mayor is currently nominated as an alternative member to Councillor Bennison, it is appropriate Council nominate a new alternative.

22-21 Update on membership requirements for audit, risk and improvement committees - Office of Local Government NSW

This circular also outlines the criteria by which independent external members should be assessed as part of their appointment to the ARIC.

Expression of Interest

Council is required to have three (3) independent external members on the ARIC. An Expression of Interest for three (3) independent external members will be released in late July with recommended appointments to be presented to Council for consideration at either the September or October 2023 Ordinary Council Meeting. The Expression of Interest will include the criteria (ie the expected credentials of interested applicants) as prescribed by the OLG.

The above timeframe should provide sufficient time for the newly appointed independent external members to familiarise themselves with the new ARIC Charter in readiness for the June 2024 legislative commencement.

Conclusion

The Draft ARIC Charter is consistent with the Model Charter developed by the OLG and is in a position to be adopted by Council ahead of an expression of interest process whereby Council will be seeking applications from suitably qualified independent external members.

RECOMMENDATION

That Council:

1. Adopt the Draft Audit, Risk and Improvement Committee (ARIC) Charter (AT-1);

2. Authorise the General Manager to commence an Expression of Interest process to recruit three independent external members to the ARIC;

3. Nominate an alternative Councillor for the ARIC; and

4. Receive a report back on the recommended independent external members of the ARIC for Council’s final determination.

Steven Kludass

Executive Manager - Corporate Services

Corporate Services Division

ATTACHMENTS:

AT‑1 View

Draft Audit Risk and Improvement Committee Charter

9 Pages

Available Electronically

Ordinary Council Meeting 20 July 2023

Revised Fraud and Corruption Prevention Policy and Strategy

Subject: Revised Fraud and Corruption Prevention Policy and Strategy

Record No: SU6840 - 37145/23

Division: Corporate Services Division

Author(s): Steven Kludass

Executive Summary

A review of Council’s Fraud and Corruption Prevention Policy and Strategy has been undertaken in light of information that has been released by both Standards Australia and the NSW Audit Office. The revised Fraud and Corruption Prevention Policy and Strategy is submitted for Council’s consideration with a view to undertaking community consultation.

Background

In 2022, Council reviewed its Fraud and Corruption Prevention Policy and Strategy to incorporate new fraud and corruption controls as issued by Standards Australia (AS8001:2021). In reviewing the Fraud and Corruption Prevention Policy and Strategy it was also considered prudent to consider the ten (10) key attributes that the NSW Audit Office developed to improve the prevention, detection and response to fraud and corruption.

Discussion

The 2022/23 Internal Audit Plan identified a need to review Council’s Fraud and Corruption Prevention Policy and Strategy. The Policy and Strategy had previously been reviewed in 2017. Whilst the existing Policy and Strategy is still relevant in terms of their commitment and intent, the work that Standards Australia and the NSW Audit Office has since developed presented an ideal opportunity to review both documents.

Australian Standard 8001:2021, Fraud and corruption control, supersedes the previous version, Australian Standard 8001:2008 and includes notable inclusions of requirements to enable users to claim conformance to the standard. Initiatives outlined in this standard are aimed at preventing and detecting fraud and corruption, as well as guidance on how to respond to those events that have already occurred.

The ten (10) key attributes that the NSW Audit Office identified are now referenced in the Revised Draft Fraud and Corruption Prevention Strategy and are outlined in the table below.

Attribute Reference	Attribute Description	Theme
Attribute one	Leadership	Prevention
Attribute two	Ethical framework	Prevention, Detection, Response
Attribute three	Responsibility structures	Prevention, Detection, Response
Attribute four	Policy	Prevention
Attribute five	Prevention systems	Prevention
Attribute six	Fraud awareness	Prevention, Response
Attribute seven	Third party management systems	Prevention, Response
Attribute eight	Notification systems	Detection, Response
Attribute nine	Detection systems	Detection
Attribute ten	Investigation systems	Response

In developing a revised Fraud and Corruption Prevention Policy and Strategy, it was also considered prudent to develop an Action Plan which will help guide Council in the ongoing management associated with Fraud and Corruption Prevention.

The Draft Plans have been endorsed by the Internal Audit Committee and two staff training sessions have subsequently been conducted by the Independent Commission Against Corruption (ICAC), both of which occurred in May 2023. The ICAC used the Draft Plans to raise staff awareness and cross reference materials during the training sessions and offered practical ways in which staff can prevent, detect and respond to fraud and corruption in the workplace.

The internal audit review of Council’s Fraud and Corruption Prevention documents and practices has now been scheduled for October 2023 and will feature not only an audit of documentation and practices but an assessment of staff awareness of the Policy and Strategy and their understanding of the measures they can implement to prevent fraud and corruption in the workplace.

Community Consultation

Statement of Intent

The consultation is designed to gather feedback from members of the public with respect to the revised Draft Plans. Any comments received will be reviewed and evaluated to determine whether or not changes are necessary to the Draft Plan.

Method

Level of Participation	Consult
Form of Participation	Open
Target Audience	Lane Cove Community
Proposed Medium	Website, eNewsletter, Written Submissions
Indicative Timing	August – September 2023

Conclusion

The Revised Draft Fraud and Corruption Prevention Policy and Strategy have been reviewed in

light of changes in Australian Standards as they relate to fraud and corruption and information that

has been developed by the NSW Audit Office.

A report will be prepared for Council’s consideration following a 6-week community consultation

process as outlined in this report.

RECOMMENDATION

That Council:

1. Endorse the Revised Draft Fraud and Corruption Prevention Policy and the Draft Fraud and Corruption Prevention Strategy for the purposes of public exhibition; and

2. Receive a community consultation evaluation report on the matter following the public exhibition period.

Steven Kludass

Executive Manager - Corporate Services

Corporate Services Division

ATTACHMENTS:

AT‑1 View	Draft Revised Fraud and Corruption Prevention Policy	7 Pages	Available Electronically
AT‑2 View	Draft Revised Fraud and Corruption Prevention Strategy	17 Pages	Available Electronically

AT‑1 View	June 2023 Snapshot	41 Pages
AT‑2 View	Council Resolution Tracker	38 Pages	Available Electronically

AT‑1 View	Traffic Committee Agenda - May 2023	7 Pages	Available Electronically
AT‑2 View	Minutes - Traffic Committee - May 2023	5 Pages	Available Electronically