VISION OF COUNCIL

 

"A thriving and friendly community that recognises our history and embraces cultural diversity and economic opportunity, whilst nurturing our unique natural and built environment."

 

 

AGENDA

 

 

 

FOR THE

 

Ordinary Meeting of Council

 

14 December 2017

 


OUR VISION

 

"A thriving and friendly community that recognises our history and embraces cultural diversity and economic opportunity, whilst nurturing our unique natural and built environment."

 

OUR MISSION

 

“To deliver affordable and quality Local Government services.”

 

CORE VALUES OF THE SHIRE

 

The core values that underpin the achievement of the

 mission will be based on a strong customer service

focus and a positive attitude:

 

Communication

 

Integrity

 

Respect

 

Innovation

 

Transparency

 

Courtesy

 

DISCLAIMER

The purpose of Council Meetings is to discuss, and where possible, make resolutions about items appearing on the agenda.  Whilst Council has the power to resolve such items and may in fact, appear to have done so at the meeting, no person should rely on or act on the basis of such decision or on any advice or information provided by a Member or Officer, or on the content of any discussion occurring, during the course of the meeting.

 

Persons should be aware that the provisions of the Local Government Act 1995 (Section 5.25 (e)) establish procedures for revocation or rescission of a Council decision.  No person should rely on the decisions made by Council until formal advice of the Council decision is received by that person.  The Shire of Broome expressly disclaims liability for any loss or damage suffered by any person as a result of relying on or acting on the basis of any resolution of Council, or any advice or information provided by a Member or Officer, or the content of any discussion occurring, during the course of the Council meeting.

 


Agenda – Ordinary Meeting of Council 14 December 2017                                                                 Page 4 of 5

 

Councillor

Cr R Johnston

Cr H Tracey

Cr M Fairborn

Cr W Fryer

Cr E Foy

Cr D Male

Cr P Matsumoto

Cr C Mitchell

Cr B Rudeforth

2015

26 November

 

 

 

 

 

 

LOA

 

 

2015

17 December

 

 

 

 

 

 

 

 

 

2016

25 February

 

 

 

 

A

 

 

 

 

2016

31 March

 

 

 

 

LOA

 

 

 

 

2016

28 April

 

LOA

A

LOA

LOA

 

 

 

 

2016

26 May

 

 

A

 

 

 

LOA

 

 

2016

30 June

 

LOA

 

 

 

 

 

 

LOA

2016

28 July

 

 

 

 

 

 

 

 

 

2016

25 August

 

 

 

 

LOA

 

 

 

 

2016

29 September

 

A

 

 

 

LOA

 

 

 

2016

27 October

 

 

 

 

 

 

 

LOA

 

2016

24 November

 

 

LOA

 

 

A

 

 

 

2016

15 December

 

 

 

 

A

 

 

 

A

2017

23 February

 

 

 

 

 

 

 

 

A

2017

30 March

 

 

LOA

 

LOA

 

 

 

 

2017

27 April

 

A

LOA

A

 

 

 

 

 

2017

25 May 2017

 

 

 

 

LOA

 

 

 

 

2017

29 June 2017

 

 

 

A

LOA

 

 

 

 

2017

27 July

 

A

 

 

LOA

 

 

 

 

2017

7 September

A

 

 

 

LOA

 

 

LOA

 

2017

28 September

LOA

 

 

LOA

 

 

 

LOA

LOA

2017

19 October

LOA

 

LOA

 

 

 

 

 

 

2017 Local Government Ordinary Election held 21 October

Councillor

Cr H Tracey

Cr D Male

Cr M Fairborn

Cr W Fryer

Cr E Foy

Cr C Marriott

Cr P Matsumoto

Cr C Mitchell

Cr B Rudeforth

2017

23 November

 

 

 

 

LOA

 

 

 

A

 

·       LOA (Leave of Absence)

·           NA (Non Attendance)

·       A (Apologies)

 

2.25.       Disqualification for failure to attend meetings

      (1)     A council may, by resolution, grant leave of absence, to a member.

      (2)     Leave is not to be granted to a member in respect of more than 6 consecutive ordinary meetings of the council without the approval of the Minister, unless all of the meetings are within a period of 3 months.

   (3A)     Leave is not to be granted in respect of —

                 (a)     a meeting that has concluded; or

                 (b)     the part of a meeting before the granting of leave.

      (3)     The granting of the leave, or refusal to grant the leave and reasons for that refusal, is to be recorded in the minutes of the meeting.

      (4)     A member who is absent, without obtaining leave of the council, throughout 3 consecutive ordinary meetings of the council is disqualified from continuing his or her membership of the council, unless all of the meetings are within a 2 month period.

   (5A)     If a council holds 3 or more ordinary meetings within a 2 month period, and a member is absent without leave throughout each of those meetings, the member is disqualified if he or she is absent without leave throughout the ordinary meeting of the council immediately following the end of that period.

      (5)     The non‑attendance of a member at the time and place appointed for an ordinary meeting of the council does not constitute absence from an ordinary meeting of the council —

                 (a)     if no meeting of the council at which a quorum is present is actually held on that day; or

                 (b)     if the non‑attendance occurs —

                               (i)     while the member has ceased to act as a member after written notice has been given to the member under section 2.27(3) and before written notice has been given to the member under section 2.27(5); or

                              (ii)     while proceedings in connection with the disqualification of the member have been commenced and are pending; or

                           (iiia)     while the member is suspended under section 5.117(1)(a)(iv); or

                             (iii)     while the election of the member is disputed and proceedings relating to the disputed election have been commenced and are pending.

      (6)     A member who before the commencement of the Local Government Amendment Act 2009 section 5 1 was granted leave during an ordinary meeting of the council from which the member was absent is to be taken to have first obtained leave for the remainder of that meeting.

               [Section 2.25 amended by No. 49 of 2004 s. 19(1); No. 17 of 2009 s. 5.]

 

 


AgendaOrdinary Meeting of Council 14 December 2017                                                                             Page 5 of 6

 

SHIRE OF BROOME

Ordinary Meeting of Council

Thursday 14 December 2017

INDEX – Agenda

 

1.               Official Opening.. 9

2.               Attendance and Apologies. 9

3.               Declarations of Financial Interest / Impartiality. 9

4.               Public Question Time. 9

5.               Confirmation of Minutes. 9

6.               Announcements by President Without Discussion.. 9

7.               Petitions. 9

8.               Matters for Which the Meeting May Be Closed.. 10

9.               Reports of Officers. 11

9.1      Our People. 12

9.1.1     SUBMISSION - WA YOUTH STRATEGY. 13

9.2      Our Place. 21

9.2.1     PROPOSED EASEMENT FROM DAMPIER DOWNS ROAD TO PETROLEUM PERMIT EP 493 (FINDER SHALE PTY LTD) 22

9.2.2     DRAINAGE RESERVE 34907 – CNR HAMERSELY AND GUY STREETS. 28

9.2.3     REQUEST FROM RSPCA FOR CONTRIBUTION TOWARDS WEST KIMBERLEY RSPCA INSPECTOR. 36

9.2.4     APPLICATION TO EXTEND TERM OF DEVELOPMENT APPROVAL - TOURIST DEVELOPMENT - LOT 451 HAMERSLEY STREET, BROOME. 54

9.2.5     LEASE VARIATION FOR MULBERRY TREE CHILD CARE. 55

9.2.6     LEASE DISPOSAL TO BROOME LOTTERIES HOUSE INC IN PORTION OF RESERVE 42502. 63

9.2.7     LEASE DISPOSAL TO BROOME GOLF CLUB INC.. 81

9.2.8     LEASE DISPOSAL: KIMBERLEY REGIONAL OFFICES, BUILDING 2, TENANCY 1,2 AND 3. 224

9.2.9     PROPOSED AMENDMENT OF THE PARKING AND PARKING FACILITIES LOCAL LAW 2012. 232

9.2.10  Submission - Senate Inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities. 268

9.2.11  DRAFT CHINATOWN PUBLIC ART AND INTERPRETATION STRATEGY. 484

9.2.12  CHINATOWN REVITALISATION GOVERNANCE - TERMS OF REFERENCE. 500

9.3      Our Prosperity. 515

9.3.1     CHINATOWN REVITALISATION PROJECT - COMMUNITY CONSULTATION ON DRAFT CHINATOWN REVITALISATION MASTERPLAN.. 516

9.3.2     INTRODUCTION OF TRADING NODES THROUGH THE TRADING IN PUBLIC PLACES POLICY. 761

9.3.3     ECONOMIC EVENTS AND TOURISM DEVELOPMENT FUNDING PROGRAM... 803

9.4      Our Organisation.. 821

9.4.1     MONTHLY PAYMENT LISTING - NOVEMBER 2017. 822

9.4.2     MONTHLY STATEMENT OF FINANCIAL ACTIVITY REPORT NOVEMBER 2017. 853

9.4.3     MINUTES OF THE JOINT MEETING OF THE KIMBERLEY ZONE OF WALGA AND REGIONAL COLLABORATIVE GROUP HELD 1 SEPTEMBER 2017. 968

9.4.4     REVIEW OF DELEGATIONS OF AUTHORITY. 1025

9.4.5     POLICY MANUAL REVIEW 2017. 1128

9.4.6     INTEGRATED PLANNING AND REPORTING FRAMEWORK - CORPORATE BUSINESS PLAN REVIEW... 1430

9.4.7     INFRASTRUCTURE ASSET MANAGEMENT PLAN.. 1467

10.            Reports of Committees. 1572

10.1      MINUTES OF THE AUDIT COMMITTEE MEETING HELD 6 DECEMBER 2017. 1573

11.            Notices of Motion.. 1594

12.            Business of an Urgent Nature. 1594

13.            Questions by Members Of Which Due Notice Has Been Given.. 1594

14.            Matters Behind Closed Doors. 1594

9.2.4  APPLICATION TO EXTEND TERM OF DEVELOPMENT APPROVAL - TOURIST DEVELOPMENT - LOT 451 HAMERSLEY STREET, BROOME. 1594

15.            Meeting Closure. 1594

 


AgendaOrdinary Meeting of Council 14 December 2017                                                                      Page 7 of 1593

 

 

NOTICE OF MEETING

 

 

 

Dear Council Member,

 

 

The next Ordinary Meeting of the Shire of Broome will be held on Thursday, 14 December 2017 in the Council Chambers, Corner Weld and Haas Streets, Broome, commencing at 5.00pm.

 

 

 

Regards

 

 

S MASTROLEMBO

Chief Executive Officer

 

08/12/2017

 


AgendaOrdinary Meeting of Council 14 December 2017                                                                      Page 9 of 1593

 

1.         Official Opening

 

 

2.         Attendance and Apologies 

 

              Attendance:

 

              Leave of Absence:

 

              Apologies:

 

              Officers:

 

              Public Gallery:

 

3.         Declarations of Financial Interest / Impartiality

 

FINANCIAL INTEREST

Councillor

Item No

Item

Nature of Interest

 

 

 

 

 

IMPARTIALITY

Councillor

Item No

Item

Nature of Interest

 

 

 

 

 

4.         Public Question Time

 

 

5.         Confirmation of Minutes

 

Recommendation:

That the Minutes of the Ordinary Meeting of Council held on 23 November 2017, as published and circulated, be confirmed as a true and accurate record of that meeting.

 

 

 

6.         Announcements by President Without Discussion

 

 

7.         Petitions

 

 

8.         Matters for Which the Meeting May Be Closed

The Chief Executive Officer advises that there are matters for discussion on the agenda for which the meeting may be closed, in accordance with section 5.23(2) of the Local Government Act 1995.

Recommendation

That the following Agenda items be considered under 14. Matters Behind Closed Doors, in accordance with section 5.23(2) of the Local Government Act 1995, as specified:

9.2.4      APPLICATION TO EXTEND TERM OF DEVELOPMENT APPROVAL - TOURIST DEVELOPMENT - LOT 451 HAMERSLEY STREET, BROOME

Item 9.2.4 and any attachments are confidential in accordance with Section 5.23(2) of the Local Government Act 1995 section 5.23(2)(d) as it contains “legal advice obtained, or which may be obtained, by the local government and which relates to a matter to be discussed at the meeting”.

 

 

 


 

9.

Reports

of

Officers


 

9.1

 

Our People

 

_DSC2089

 

 

PRIORITY STATEMENT

 

Embracing our cultural diversity and the relationship between our unique heritage and people, we aim to work in partnership with the community to provide relevant, quality services and infrastructure that meet the needs and aspirations of our community and those visiting and doing business in our region.

 

Supporting and contributing to the well-being and safety of our community is paramount, as is our focus on community engagement and participation.

 

Council aims to build safe, strong and resilient communities with access to services, infrastructure and opportunities that will result in an increase in active civic participation, a reduction in anti-social behaviour and improved social cohesion.

 


AgendaOrdinary Meeting of Council 14 December 2017                                                                         Page 13 of 14

 

 

9.1.1      SUBMISSION - WA YOUTH STRATEGY

LOCATION/ADDRESS:                             Nil

APPLICANT:                                              Nil

FILE:                                                           COS15

AUTHOR:                                                   Manager Community and Economic Development

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Development and Community

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    27 November 2017

 

SUMMARY:         The Department of Communities is currently calling for submissions as part of the development of a new State-wide youth strategy. This has been initiated by the Better Choices: Youth in WA discussion paper.

The Shire of Broome is well placed to contribute and advocate for youth in the region as informed by the Shire’s Youth Framework 2016 – 2018.

It is recommended that Council resolve to make a formal submission to the Department of Communities as part of the consultation process.

 

 

BACKGROUND

 

Previous Considerations

 

Nil.

 

Background

The Department of Communities (DoC) is developing a new youth strategy for Western Australia.

The strategy will be developed following consultation with young people, youth service providers and government agencies.

Input from these groups will aid the development of a coordinated and targeted five year strategy designed to improve the delivery of programs and services to support young Western Australians.

The first step towards the new strategy is the Better Choices: Youth in WA discussion paper (Discussion Paper). The Shire of Broome has the opportunity to provide feedback as part of the consultation process.

The deadline for submissions is Monday, 18 December 2017.

 

COMMENT

 

Better Choices: Youth in WA discussion paper

 

The Discussion Paper aims to generate discussion and identify opportunities on how to best support West Australian youth. Feedback from young people and youth sector agencies will be used to help build a new WA youth strategy aimed at making a positive contribution in this area.

 

The Discussion Paper outlines the key areas of youth services within the state, and provides a summary of issues facing the youth services system. These are:

 

1.    A fragmented funding which has resulted in challenges for cohesive policy development, funding and service delivery between multiple agencies.

2.    Limited visibility of services which results in a complex system which can be difficult for young people to access and navigate.

3.    A lack of clarity over governance which provides for limitations at a local and state level, impacting the effectiveness of services.

 

Best practice examples of youth service delivery are also provided from across the nation, as are a number of service models which could provide the backbone of an integrated and effective approach from State Government.

 

Kimberley Regional Youth Strategy

 

The Kimberley Regional Group (KRG) represents the four Kimberley local governments of Broome, Halls Creek, Derby/West Kimberley and Wyndham/East Kimberley. Based on correspondence and advice from the Department of Communities regarding the current consultation and submission process, the KRG will be submitting the Kimberley Regional Youth Strategy and Action Plan in lieu of making a formal submission. All background documents collated during the development of the Kimberley Regional Strategy will also be submitted – including consultation reports and data base reviews. The intent is for the Department of Communities to utilise the work already completed across the Kimberley to inform the development of the WA Youth Strategy.

 

Shire of Broome Youth Framework

 

The Shire of Broome’s Youth Framework 2016 – 2018 (Youth Framework) demonstrates the Shire’s commitment to young people in the region, guides its involvement in youth services and ensures that youth are engaged in future planning.  It contains 10 strategic priorities which were developed through consultation and research with community partners, key stakeholders and young people in the Broome region. These priorities are:

 

1.    A Voice for Youth

2.    Community Participation and Leadership

3.    Education, Training and Employment

4.    Youth Service Coordination

5.    Health and Wellbeing

6.    Alcohol and Other Drugs

7.    Safety

8.    Recreation and Leisure

9.    Events and Entertainment

10. Accommodation and Transport

 

Shire of Broome Submission

 

It is recommended that Council make the submission outlined in Attachment 1 of this report. The submission has been structured as per the DoC proforma, which examines responses to the following focus questions:

 

·     What specific programs would help young Western Australians make choices about their future?

·     Do you have suggestions on how to implement these programs?

·     Do you know of existing programs that can be leveraged to complement these suggestions?

·     How can we improve access to young people and the youth sector to relevant programs?

·     Do you have suggestions for specific programs in regional areas?

·     Do you have suggestions for specific programs in metropolitan areas?

·     Where should the focus of youth programs lie? Eg. on access and engagement, targeted intervention, or redirection services?

 

The submission refers to and draws from the Youth Framework in providing a response to these questions. 

 

CONSULTATION

 

The Youth Framework was developed following both broad and targeted community consultation, and has informed the submission to the Department of Communities.

 

STATUTORY ENVIRONMENT

 

Local Government Act 1995

 

POLICY IMPLICATIONS

 

Nil.

 

FINANCIAL IMPLICATIONS

 

There are no identified financial implications associated with Council presenting a submission.

 

RISK

 

The following risks have been identified for Council’s consideration. Based on the following analysis it is recommended that Council proceeds with the submission.

 

Risk

Type

Rank

Mitigation

Shire does not make an independent submission to the Inquiry.

Reputational

Low

Given the Shire’s commitment to youth, it is recommended that Council makes a submission.

The Shire’s submission is not supported by industry or stakeholder bodies.

Reputational

Low

The Shire’s submission has been informed by community consultation and an endorsed strategy document.

The Shire’s feedback makes limited impact.

Reputational

Low

The outcomes and recommendations of the consultation process are being guided by the State Government. The Shire is being proactive by participating in the consultation.

 

 

STRATEGIC IMPLICATIONS  

 

Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:

 

Effective communication

 

 

VOTING REQUIREMENTS

Simple Majority

 

REPORT RECOMMENDATION:

That Council:  

1.       Endorses the submission, as shown in Attachment 1, to the Department of Communities in response to the 'Better Choices: Youth in WA' discussion paper.

2.       Requests that the Chief Executive Officer forward the submission to the Department of Communities.

 

Attachments

1.

Shire of Broome Submission Better Choices Youth in WA Discussion Paper

  


Item 9.1.1 - SUBMISSION - WA YOUTH STRATEGY

 

 

Our ref: MD: SM: COS15

 

27 November 2017

 

Hon Peter Tinley AM MLA

Minister for Youth

7th Floor
Dumas House
2 Havelock Street
WEST PERTH WA 6005

 

By email: youngpeople@dlgc.wa.gov.au; Minister.Tinley@dpc.wa.gov.au

 

Dear Minister

RE: SHIRE OF BROOME SUBMISSION – BETTER CHOICES: YOUTH IN WA DISCUSSION PAPER

Thank you for the opportunity for the Shire of Broome to contribute feedback on the Better Choices: Youth in WA discussion paper. The following feedback is informed by the Shire’s Youth Framework 2016 – 2018, which was developed in consultation with young people and youth sector stakeholders in the Broome region. Further to the responses below, the Shire of Broome Youth Framework 2016-2018 is attached for your information.

Focus Question Responses:

·   What specific programs would help young Western Australians make choices about their future?

1.    Access to Skills Development Support: A range of factors such as low levels of literacy, low level parent involvement, financial disadvantage and low self-esteem can lead to poorly developed personal or “life skills”. Skills such as the ability to obtain a driver’s license, basic interpersonal skills, and financial literacy are often taken for granted.

·   Do you have suggestions on how to implement these programs?

1.    Alignment with Future Opportunities: Young people in the Broome region identified education, training and employment opportunities as being an important factor for their long term health and wellbeing. Education and training underpins a wide range of opportunities for young people. However, there is a need to ensure that education and training programs align directly with real job opportunities and employment pathways are available to young people in Broome.

 

2.    Co-design: Young people tell us that it is important for them to feel represented by their government and be included in decisions that affect them. Engagement with young people must be meaningful and genuinely considered in the decision making process. Token gestures are easily identified as such and only damage young peoples’ trust in the organisation or project.

·     Do you know of existing programs that can be leveraged to complement these suggestions?

The Shire is aware of the following in the Broome region:

·   Broome Senior High School

·   St Mary’s College

·   Alternative learning programs (Broome Girls Academy and PCYC)

·   Kimberley Training Institute

·   Kimberley Group Training

·   University of Notre Dame

·   Workforce Development Centre

·   Employment services, in school transition support and vocational training programs, supported accommodation (Horizon House and MADALAH)

·     How can we improve access to young people and the youth sector to relevant programs?

1.   Improved Coordination: The Broome region has a large number of service providers who deliver a diverse range of support services for young people. Some coordinated networks exist around particular interest areas such as the Youth at Risk interagency meetings, however coordination of government and non-government youth services is not the responsibility of one group or organisation – and there are opportunities for improvement in this area.

 

2.   Improved Referrals and Marketing: Referral pathways help to ensure young people are connected with the most relevant and useful service for their needs, however there is a general lack of awareness and understanding of the services available to young people and information about services is not always accessible or easy to find.

3.   Support to Access Education, Training and Employment: Many young people are not able to access education and employment close to home and need to either travel into Broome from remote communities or leave the region to pursue education and employment opportunities. Support in the areas of travel, accommodation, life skills and study methods is required for young people to access education, training and employment opportunities. Support for disengaged and at-risk youth to engage in education, training and employment has been identified as a priority

·     Do you have suggestions for specific programs in regional areas?

1.      Health and Wellbeing: The Shire recognises the critical role family and friends play as the primary source of support in young people’s lives. Some of the challenges facing families of young people include high incidences of domestic violence, suicide, alcohol and other drug use and the prevalence of young people on the streets at night – and there is a need for ongoing wrap-around projects to address these issues.

 

2.      Alcohol and Other Drugs: Young people identified underage drinking, drug abuse, binge drinking, smoking and peer pressure as their top concerns around alcohol and other drugs. Young people are particularly concerned about the increasing use of ice (methamphetamine) and marijuana among youth in the Broome region.

·     Do you have suggestions for specific programs in metropolitan areas?

Most of the Shire’s focus has been support for young people within the local government region, although it recognises that support services in the metropolitan area are vital for youth who relocate away from family support.

·      Where should the focus of youth programs lie? eg: on access and engagement, targeted intervention, or redirection services?

The Shire’s Youth Framework sets out ten key priorities for young people in Broome and illustrate a vision for the outcomes and opportunities for young people in Broome:

1. A Voice for Youth

2. Community Participation and Leadership

3. Education, Training and Employment

4. Youth Service Coordination

5. Health and Wellbeing

6. Alcohol and Other Drugs

7. Safety

8. Recreation and Leisure

9. Events and Entertainment

10. Accommodation and Transport

These priorities were ranked and based on the following factors:

·    What matters most to young people

·    Areas where the Shire of Broome can make the biggest impact or has influence

·    Issues identified as having the greatest need or requiring the most attention

·    Activities that are considered core business for the Shire of Broome

While the Shire of Broome recognises that these priorities are based on a regional local government context, it believes that they can still inform the development of the State’s Youth Strategy.

Should the Department of Communities wish to seek any further clarification or require more information, please contact Mark Davis, Manager Community and Economic Development on 9191 3456 or mark.davis@broome.wa.gov.au.

Yours faithfully

 

 

 

SAM MASTROLEMBO

CHIEF EXECUTIVE OFFICER

 

 


 

9.2

 

Our Place

 

cablebeach

 

 

PRIORITY STATEMENT

 

The Shire of Broome has an abundance of unique natural features, coastal attractions, significant streetscapes, historic precincts and a mix of old and new urban developments.

 

Our aim is for all communities and settled areas, including the Broome Township, to be a place where the natural environment, on which life depends, is maintained, whilst at the same time the built environment contributes to the economy and a quality lifestyle for all.

 

Preserving the Shire’s natural environment is a critical community outcome. Council will put into place strategies that nurture and improve the Shire’s unique environment and biodiversity.

 

The Shire will work in partnership with the community and other agencies to ensure responsible and accountable management of both the natural and build environments is achieved in the short term and for future generations.


AgendaOrdinary Meeting of Council 14 December 2017                                                                         Page 21 of 22

 

 

9.2.1      PROPOSED EASEMENT FROM DAMPIER DOWNS ROAD TO PETROLEUM PERMIT EP 493 (FINDER SHALE PTY LTD)

LOCATION/ADDRESS:                             Dampier Downs Road

APPLICANT:                                              Finder Shale Pty Ltd; Department of Planning, Lands and Heritage

FILE:                                                           ADM59

AUTHOR:                                                   Land Tenure Officer

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Development and Community

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    9 November 2017

 

SUMMARY:         The Shire has received correspondence from the Department of Planning, Lands and Heritage (DPLH) seeking the Shire’s comments in relation to Finder Shale Pty Ltd’s request for the grant of an access easement from their petroleum exploration licence located with the Shire boundaries to the Great Northern Highway.

As delegation does not exist for officers to provide comment, the request is being referred to Council for consideration.

This report recommends that Council supports the creation and granting of the access easement. 

 

 

BACKGROUND

 

Previous Considerations

 

Nil.

 

The Department of Planning, Lands and Heritage (DPLH), has received a proposal from Finder Shale Pty Ltd (Finder), the holder of petroleum exploration licence EP 493 (EP 493), to obtain an easement for ‘access’ over the existing Dampier Downs Road and existing track to access EP 493 (see Attachment 1).

 

The proposed easement covers an area of approximately 104 ha and traverses Dampier Downs, Thangoo and Roebuck Plains Pastoral Leases, as well as an unnumbered Unallocated Crown Land (UCL) parcel.

 

Dampier Downs Road has not been formally dedicated (gazetted) and therefore is not vested with the Shire of Broome.  Finder will upgrade and maintain the easement to access EP 493.

 

The Shire has received correspondence from the DPLH, seeking the Shire’s comments in relation to the proposed easement.

 

COMMENT

 

Finder is a private oil and gas company, founded in 2004 and based in West Perth.  Finder have several petroleum exploration and production permits in Australia, New Zealand, Jamaica and the United Kingdom, including EP 493 located in the Canning Basin.

 

The land on which the easement is proposed comprises a number of designations under the Shire’s Local Planning Strategy (Strategy) and Local Planning Scheme No.6 (LPS 6).

 

Designations in the Strategy include ‘Cultural and Natural Resource Use’ and the ‘Edgar Range Conservation Investigation Area’. The Strategy supports activities that identify and protect basic raw material resources and provide for their extraction.

 

The proposed access easement is zoned as ‘General Agriculture’ within LPS6.  The easement would be consistent with the existing zoning as it is not considered to adversely impact the rural character and the land.

 

Therefore, this report recommends that Council supports the creation and granting of the proposed access easement from EP 493 to the Great Northern Highway, shown as points 1 to 16 on the plan in Attachment 2.

 

CONSULTATION

 

The DPLH will undertake stakeholder consultation as due process.

 

STATUTORY ENVIRONMENT

 

Land Administration Act 1997 (WA)

144. Easements over Crown land, Minister’s powers to grant etc.

(1)  Subject to this section, the Minister may —

(a) with the consent of every management body of the relevant Crown land and of every person having any interest, right, title or power in respect of that land, grant to any person an easement in, on, over, through or under that Crown land for a specified purpose or any other purpose the Minister thinks fit; and

(b) in that grant express that easement to be subject to specified conditions and the payment of specified consideration.

(2)  The grantee of an easement may, with the consent of any management body or lessee of the relevant Crown land, apply to the Minister for the easement to be varied or cancelled.

(2a) An easement may be granted under this section despite the fact that the
        characteristics of the easement do not satisfy all of the characteristics that  must be satisfied for an easement to be created under the common law.

(3)  The Minister may, on receiving an application under subsection (2) —

(a) by order or other instrument vary or cancel the relevant easement; or

(b) refuse the application.

(4)  In this section —
specified purpose means for —

(a) the provision of pipes, conduits, cables, transmission lines, and other services; or

(b) the provision of any structure, plant, or equipment; or

(c) the provision of access for carrying out of any works and the performance of any maintenance that is necessary for, or ancillary or incidental to, giving effect to any of the purposes referred to in paragraph (a) or (b); or

(d) a prescribed purpose.

 


 

POLICY IMPLICATIONS

 

Nil.

 

FINANCIAL IMPLICATIONS

 

Finder will upgrade and maintain the proposed easement.  There will be no additional cost to the Shire.

 

RISK

 

The creation and grant of the access easements will provide formal access for Finder from EP 493 to the Great Northern Highway.  There is no foreseen risk to the Shire.

 

STRATEGIC IMPLICATIONS  

 

Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:

 

Affordable services and initiatives to satisfy community need

 

Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:

 

Affordable and equitable services and infrastructure

 

 

VOTING REQUIREMENTS

Simple Majority

 

REPORT RECOMMENDATION:

That Council requests the Chief Executive Officer advise the Department of Planning, Lands and Heritage that it supports the creation and granting of the access easement to Finder Shale Pty Ltd from petroleum exploration permit EP 493 to the Great Northern Highway, as depicted as points 1 to 16 on the plan in Attachment 2.

 

Attachments

1.

Proposed easement from EP493 to Great Northern Hwy

2.

Proposed easement Coordinate1to16

  


Item 9.2.1 - PROPOSED EASEMENT FROM DAMPIER DOWNS ROAD TO PETROLEUM PERMIT EP 493 (FINDER SHALE PTY LTD)

 

 


Proposed Easement from Great Northern Highway along Dampier Downs Road and existing track to EP 493

Existing Dampier Downs Road (red)                  Existing track to EP 493 (yellow)


Item 9.2.1 - PROPOSED EASEMENT FROM DAMPIER DOWNS ROAD TO PETROLEUM PERMIT EP 493 (FINDER SHALE PTY LTD)

 

 

 

 



AgendaOrdinary Meeting of Council 14 December 2017                                                                         Page 27 of 28

 

 

9.2.2      DRAINAGE RESERVE 34907 – CNR HAMERSELY AND GUY STREETS

LOCATION/ADDRESS:                             Nil

APPLICANT:                                              Nil

FILE:                                                           RES 41279

AUTHOR:                                                   Land Tenure Officer

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Development and Community

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    20 November 2017

 

SUMMARY:         Broome’s Jetty to Jetty project, a partnership between the Shire of Broome and Yawuru Native Title Holders and linking Chinatown and Town Beach, was endorsed by Council at its Ordinary Meeting of Council on 30 April 2015.

Subject to funding, the Shire intends to construct a section of the Jetty to Jetty walk trail along the foreshore on Hamersley Street, opposite the Continental Hotel (Conti shared path).  The proposed Conti shared path will encroach upon Reserve 39556, with Management Orders in favour of the Shire of Broome for the purpose of ‘recreation’ and Reserve 34907 for the purpose of ‘drainage’. 

Given the Jetty to Jetty project provides for recreational activities along the trail, this report recommends that Council write to the Department of Planning, Lands and Heritage seeking Management Orders for Reserve 34907 in the favour of the Shire of Broome for the purpose of ‘recreation and drainage’.

 

 

BACKGROUND

 

Previous Considerations

 

OMC 16 May 2013               Item 9.1.4

ACHAC 27 May 2014           Item 5.5

OMC 24 July 2014                Item 9.2.4

OMC 30 April 2015               Item 9.2.3

 

Broome’s Jetty to Jetty project, a partnership between the Shire of Broome and Yawuru Native Title Holders and linking Chinatown and Town Beach, was endorsed by Council at its Ordinary Meeting of Council on 30 April 2015.

 

COUNCIL RESOLUTION:

 

REPORT RECOMMENDATION)

Moved: Cr C Mitchell                                              Seconded: Cr M Manado

 

That Council:

1.   Approve the site specific project plan including locations, content and materials to be used for the Jetty to Jetty Walk Trail as attached to allow for installation. 

2.   Notes that the scope and timing of implementation is dependant upon securing funding. 

3.   Notes that $31,505 will be used from account 116085 towards implementation of the project. 

4.   Requests the Chief Executive Officer to identify the unspent funds for this project as a carry over into the 2015/16 FY draft budget for Councils consideration  for  the development of a Interpretation Sign at Old Jetty/Town Beach.

 

CARRIED UNANIMOUSLY 6/0

 

The Jetty to Jetty project is a heritage walk linking Streeter’s Jetty in Chinatown and the site of Broome’s old jetty at Town Beach.  The proposed walk will use existing footpaths and highlight 13 historic locations along the route with interpretive signage and bench seating installed at each, with more locations identified for possible inclusion at a later stage.

 

The second phase of the Jetty to Jetty project will be the revetment work along the pindan cliffs at the Town Beach incorporating terracing and Staircase to the Moon viewing areas.

 

COMMENT

 

Subject to funding, the Shire intends to construct a section of the Jetty to Jetty walk trail along the foreshore on Hamersley Street (Conti shared path).  The proposed Conti shared path will encroach upon Reserve 39556, with Management Orders in favour of the Shire of Broome for the purpose of ‘recreation’ and Reserve 34907 for the purpose of ‘drainage’ (refer to page 2 in Attachment 1).

 

Reserve 34907 (Attachment 2) is only for the purpose of ‘drainage’. Therefore, it is recommended that the purpose of the Reserve be amended to include ‘recreation’ to allow for construction of the proposed Conti shared path.

 

To have Management Orders amended for Reserve 34907, the Shire must write to the Department of Planning, Lands and Heritage (DPLH) requesting the Minister for Lands amend the Management Orders in include the purpose of ‘recreation’.

 

It is therefore recommended that Council writes to the DPLH requesting that the Minister for Lands issue Management Orders for Reserve 34909 in the favour of the Shire of Broome for the purpose of ‘recreation and drainage’.

 

CONSULTATION

 

The Department of Planning, Lands and Heritage

 

This matter was discussed at the Yawuru Park Council Working Group on 22 November 2017.

 

STATUTORY ENVIRONMENT

 

Land Administration Act 1997 (WA)

Section 46.  Care, control and management of reserves

 

1)         The Minister may by order place with any one person or jointly with any 2 or more persons the care, control and management of a reserve for the same purpose as that for which the relevant Crown land is reserved under section 41 and for purposes ancillary or beneficial to that purpose and may in that order subject that care, control and management to such conditions as the Minister specifies.

        (2)         The Minister may, with the consent of the management body of a reserve and of the holders of any interests within the reserve, by order vary any condition to which the care, control and management of the reserve is subject.

         (3)         The Minister may —

(a)  by order confer on a management body power, subject to section 18, to grant a lease or sublease or licence over the whole or any part of the Crown land within the reserve in question for the purposes referred to in subsection (1); and

(b)  approve a mortgage of any such lease.

         (3a)        The Minister may by order —

(a)  without the consent of the management body of a reserve, vary —

(i)  an order made under subsection (3)(a); or

(ii) an order made under section 33 of the repealed Act or section 42 or 43 of the Land Act 1898 7 that subsists as an order made under subsection (3)(a),

in relation to whether or not prior approval in writing of the Minister is required to a grant of a lease, sublease, or licence; or

(b)  with the consent of the management body of a reserve, vary any other condition to which —

(i)  an order made under subsection (3)(a); or

(ii) an order made under section 33 of the repealed Act or section 42 or 43 of the Land Act 1898   7 that subsists as an order made under subsection (3)(a),is subject.

        (3b)         The Minister’s approval under section 18 is not required for the exercise of a power conferred under subsection (3)(a) unless —

(a)  the person on whom the power is conferred is —

(i)    a body corporate that is constituted for a public purpose under an enactment and is an agency of the Crown in right of the State; or

(ii)   a person referred to in subsection (10)(b),

and the order provides that the Minister’s approval under section 18 is required; or

(b)  the person on whom the power is conferred is a person other than a person referred to in paragraph (a).

         (4)         If an unmanaged reserve is the subject of —

(a)  a lease granted under section 47; or

(b)  a licence, or a lease or profit à prendre, granted under section 48, or of any other interest in the unmanaged reserve, the Minister may under subsection (1) place the care, control and management of that reserve with a management body subject to that licence, lease or profit à prendre or other interest, the term of which continues unbroken by that placing.

        (5)          An order made under subsection (1), (2), (3) or (3a) does not create any interest in Crown land in the relevant reserve in favour of the management body of that reserve.

        (6)         If Crown land reserved under section 41 for the purpose of recreation is leased or subleased under a power conferred under subsection (3), the lessee or sublessee may, unless the terms of the management order or the lease or sublease otherwise provide, restrict public access to the area leased.

        (7)          A person with whom the care, control and management of a reserve is placed by order under subsection (1) has, by virtue of this subsection, the capacity, functions and powers to hold and deal with the reserve in a manner consistent with the order, any order conferring power on that person under subsection (3)(a) and this Act to the extent that the person does not already have that capacity or those functions and powers.

        (8)         Subsection (7) does not authorise a management body to perform a function or exercise a power if another enactment expressly prevents the person from performing that function or exercising that power, or expressly authorises another person to perform that function or exercise that power.

        (9)           Any instrument in relation to the care, control and management of a reserve entered into or given by a person holding an office referred to in subsection (10)(b)(i) or (iii) is taken to have been entered into or given by the person for the time being holding that office.

        (10)         In subsection (1), a reference to a person is a reference to —

(a)  a person having perpetual succession;

(b)  a person not having perpetual succession who is —

(i)  a Minister to whom the Act specified in the relevant order is for the time being committed by the Governor; or

                              [(ii)          deleted]

(ii) a person holding a prescribed office.

        (11)         If an order made under section 33 of the repealed Act subsists under clause 16(1) of Schedule 2 as if it were a management order under section 46(1), the Minister may by order vary that order to place the care, control and management of the reserve the subject of the order with a person referred to in subsection (10).

       (12)         An order made under section 46(1) before the coming into operation of section 12 of the Land Administration Amendment Act 2000 1 may be varied by the Minister by order to place the care, control and management of the reserve the subject of the order with a person referred to in subsection (10).

 

POLICY IMPLICATIONS

 

Nil.

 

FINANCIAL IMPLICATIONS

 

There will be no direct additional costs to the Shire associated with accepting the Management Order for Reserve 34907 with the amended purpose of ‘recreation and drainage’.  The Reserve currently serves a drainage purpose which the Shire currently maintains.

 

RISK

 

Nil.

 

STRATEGIC IMPLICATIONS  

 

Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:

 

Affordable services and initiatives to satisfy community need

 

A healthy and safe environment

 

Our Place Goal – Help to protect the nature and built environment and cultural heritage of Broome whilst recognising the unique sense of the place:

 

Realistic and sustainable land use strategies for the Shire within state and national frameworks and in consultation with the community

 

Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:

 

Affordable and equitable services and infrastructure

 

 

VOTING REQUIREMENTS

Simple Majority

 

REPORT RECOMMENDATION:

That Council request the Chief Executive Officer advise the Department of Planning, Lands and Heritage that it seeks Management Orders in favour of the Shire of Broome for Reserve 34907 for the purpose of ‘drainage and recreation’.

 

 

Attachments

1.

Proposed Conti Shared Path - page 2 and Reserve 34907

2.

Reserve 34907 for drainage

  


Item 9.2.2 - DRAINAGE RESERVE 34907 – CNR HAMERSELY AND GUY STREETS

 

 


 


Item 9.2.2 - DRAINAGE RESERVE 34907 – CNR HAMERSELY AND GUY STREETS

 

 

Reserve 34907, Management Orders in favour of the Shire of Broome for the purpose of ‘drainage’ to include the purpose of ‘recreation’


AgendaOrdinary Meeting of Council 14 December 2017                                                                         Page 35 of 36

 

 

9.2.3      REQUEST FROM RSPCA FOR CONTRIBUTION TOWARDS WEST KIMBERLEY RSPCA INSPECTOR

LOCATION/ADDRESS:                             Nil

APPLICANT:                                              RSPCA

FILE:                                                           LAW021

AUTHOR:                                                   Manager Emergency, Health and Ranger Services

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Development and Community

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    20 November 2017

 

SUMMARY:         The Shire of Broome has been approached by the RSPCA WA (Incorporated) to contribute funding towards basing an RSPCA Inspector in Broome to service the West Kimberley.

 

 

BACKGROUND

 

Previous Considerations

 

The Royal Society of Prevention of Cruelty to Animals (RSPCA) is a non-government animal welfare organisation that investigates reports of animal cruelty. It was established in Western Australia in 1892.

 

RSPCA Inspectors are designated as authorised officers for the purposes of the Animal Welfare Act 2002 (AW Act). The RSPCA currently receives funding from the State Government in the amount of $350,000 to contribute to the cost of having 11 inspectors based in Perth, Albany, Bunbury, Geraldton and Kalgoorlie.  The City of Kalgoorlie Boulder also contributes $40,000 annually towards the cost of the Inspector in that location.

 

The State Government does not employ any dedicated Animal Welfare Inspectors. WA Police Officers have all powers under the AW Act and are able to investigate reports of cruelty to animals. The WA Police generally refer reports to the RSPCA to investigate. If the RSPCA does not have Inspectors available they will generally refer the reports back to the WA Police to be investigated. It is Shire officers’ understanding that this is the current situation in Broome.

 

The AW Act allows for local government Rangers to be authorised as inspectors. However, this authorisation has not been implemented for Shire Rangers due to resourcing limitations. In the absence of this authorisation, Shire Rangers do not respond to reports of animal cruelty or neglect. Rangers will however assist the Police when requested, mainly with logistical assistance.

 

In October 2017, RSPCA WA approached the Shire of Broome seeking a contribution towards funding an Inspector to be based in Broome.  A copy of the RSPCA WA proposal is shown in Attachment 1. This Inspector would be the only RSPCA Inspector based north of Geraldton.

 

A two-year funding commitment of $25,000 per annum in the 2017/18 and 2018/19 financial years is being sought. The RSPCA proposal states that this is approximately 15% of the overall funding required for the position. Funding has also been sought from the Shire of Derby West Kimberley (SDWK). It is not known how the position will be funded in future years.

 

The RSPCA WA proposal states that the Shire of Broome will receive the following benefits:

 

·    Development and delivery of a community education program including two annual visits to each of the 12 schools in the Shire;

·    Two animal welfare articles provided for publication in the Shire’s newsletter each year; and

·    Provision of a dedicated Inspector based in Broome.

 

The RSPCA proposal also includes provision for an optional ‘RSPCA Community Action Day” at an additional cost of $5000. Community Action days are free community events that promote animal welfare. RSPCA inspectors, Ranger staff and veterinary staff can be available for community members to interact with.

 

Should Council choose to accept the RSPCA proposal it is anticipated that RSPCA will seek a formal Memorandum of Understanding with the Shire.

 

COMMENT

 

It is a common misconception that Shire Rangers have an obligation to respond to reports received regarding animal neglect or cruelty. Shire Rangers are authorised under both the Dog Act 1976 and the Cat Act 2008. The intent of both Acts is for the governance and promotion of responsible pet ownership.

 

Neither Act places an obligation on, nor provides authorisation or powers to investigate animal cruelty or neglect. Powers of that nature are contained within the AW Act. The Shire’s Rangers are not currently authorised under the AW Act. Should a Shire Ranger investigate matters of animal cruelty or neglect, then that person runs a risk that they will operate outside of their lawful authority.   

 

The Shire of Broome currently employs four Rangers and a Ranger Coordinator. These officers deal with a wide range of matters including illegal camping, parking, Dog Act and Cat Act responsibilities, fire mitigation and other general regulatory and local law compliance. The current scope of responsibilities allocated to Rangers mean that they do not have the capacity to deal with animal welfare issues, however they will assist other agencies where possible.

 

Shire officers support a RSPCA Inspector being based in Broome.  The Inspector will assist in promoting responsible pet ownership, a key priority of the Rangers. Shire Rangers do receive notification of or witness animal cruelty incidents, and it is a source of frustration that these incidents often go unresolved due to a lack of appropriately authorised Inspectors dedicated to that role.

 

Several years ago, Shire officers lobbied the RSPCA for an Inspector to be based in Broome. It appears that at the time, incidents of animal cruelty were as high as two to three reports a week. A search of Shire records indicates that there have been 23 animal welfare complaints received by the Shire since May 2015, and therefore from Shire records the number of animal cruelty and welfare issues arising in Broome appears to have decreased.

 

As stated above, RSPCA WA has also requested funding from the SDWK. It is understood that SDWK are supportive of the project, however have not committed to providing funding.

 

RSPCA WA have also stated that they are considering basing the officer at Port Hedland should that local government commit funding, dependent on the Shire of Broome and SDWK position. There will not be two officers based in the North West.

 

Overall, while the introduction of a RSPCA Inspector is fully supported by officers, it is felt that this is a State responsibility and that the costs should not be borne by ratepayers. Therefore, it is recommended that the proposal by RSPCA WA not be supported.

 

CONSULTATION

 

Shire officers were provided a briefing by RSPCA WA staff. It is understood that the RSPCA WA staff undertook further consultation with the following stakeholders:

·    ABC Radio

·    Broome Advertiser

·    Shire of Derby West Kimberley

·    SAFE Broome

·    Kimberley Wildlife

·    WA Police (Broome OIC)

·    Nirrumbuk.

 

The results of the consultation are not known; however it is anticipated that the stakeholders engaged would be supportive of the proposal.

 

STATUTORY ENVIRONMENT

 

Animal Welfare Act 2002 (WA)

 

POLICY IMPLICATIONS

 

Nil.

 

FINANCIAL IMPLICATIONS

 

The total cost of contributing towards a RSPCA Inspector being based in Broome is $50,000 ($25,000 per annum), with the first annual contribution to be made in this financial year and the second in the 2018/19 financial year.

 

There is currently no budget set aside for this expenditure.

 

RISK

 

There is no identified risk should Council support the proposal. Council does however have a risk of being perceived negatively by sections of the community by not supporting the project. Council may be perceived as not placing animal welfare as a high priority. The risk is assessed as being a minor reputational risk due to a possibility of local media reports and a low impact on community stakeholders. It is possible that the media will run an article. The risk is therefore deemed Moderate.

 

 

STRATEGIC IMPLICATIONS  

 

Our Organisation Goal – Continually enhance the Shire’s organisational capacity to service the needs of a growing community:

 

Effective community engagement

 

Improved systems, processes and compliance

 

 

VOTING REQUIREMENTS

Simple Majority

 

REPORT RECOMMENDATION:

That Council requests that the Chief Executive Officer write to RSPCA WA advising that:

1.       Council is supportive of a RSPCA Inspector being based in Broome;

2.       However, the Shire declines to provide the requested financial contribution towards the RSPCA Inspector position, on the basis that this funding should be provided by the State Government.

 

Attachments

1.

Animal Welfare Improvement Proposal - Shire of Broome

  


Item 9.2.3 - REQUEST FROM RSPCA FOR CONTRIBUTION TOWARDS WEST KIMBERLEY RSPCA INSPECTOR

 

 

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AgendaOrdinary Meeting of Council 14 December 2017                                                                    Page 53 of 1594

 

This item and any attachments are confidential in accordance with Section 5.23(2) of the Local Government Act 1995 section 5.23(2)(d) as it contains “legal advice obtained, or which may be obtained, by the local government and which relates to a matter to be discussed at the meeting”.

9.2.4      APPLICATION TO EXTEND TERM OF DEVELOPMENT APPROVAL - TOURIST DEVELOPMENT - LOT 451 HAMERSLEY STREET, BROOME

LOCATION/ADDRESS:                             Lot 451 Hamersley Street, Broome

APPLICANT:                                              Rowe Group on behalf of J.B, P.E & J.E Tilbrook

FILE:                                                           HAM-1/33

AUTHOR:                                                   Acting Manager Planning & Building Services

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Development and Community

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    21 November 2017

 

SUMMARY:         On 17 December 2015, Council re-issued Development Approval for a ‘Tourist Development’ at Lot 451 (No. 33) Hamersley Street. The approval is scheduled to expire 17 December 2017, and in accordance with Local Planning Policy 8.15 - Amendments / Extensions to Term of Approval and Requests for Further Information, the applicant seeks approval for an extension to the term of approval.

This report recommends that the application to extend the term of approval be approved.

 

 


AgendaOrdinary Meeting of Council 14 December 2017                                                                         Page 54 of 55

 

 

9.2.5      LEASE VARIATION FOR MULBERRY TREE CHILD CARE

LOCATION/ADDRESS:                             RESERVE 1640, HERBERT STREET, BROOME

APPLICANT:                                              CACHET HOLDINGS PTY. LTD. / MULBERRY TREE CHILD CARE

FILE:                                                           LSS070

AUTHOR:                                                   Property and Leasing Senior Officer

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Infrastructure

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    10 November 2017

 

SUMMARY:         This report seeks Council’s consideration to vary the lease between the Shire of Broome and Cachet Holding Pty. Ltd. (trading as Mulberry Tree Child Care & Kindy) on Reserve 1640 (known as 69 Herbert Street, Broome).

 

 

BACKGROUND

 

Previous Considerations

 

 

Reserve 1640 (69 Herbert Street, Broome) is vested in the Shire of Broome for the designated purpose of “Municipal Endowment”. Subject to approval in writing from the Minister of Lands, the Shire has been granted the power to lease (or sub-lease or license) for the designated purpose, for a term not exceeding twenty-one (21) years. The site is 1729sqm in size and comprises a large indoor day care facility with shaded outdoor play areas. Mulberry Tree Child Care & Kindy ‘Mulberry Tree’ is licensed to care for up to 55 children at the Herbert Street facility.

See attached 1 - Management Order

Cachet Holdings Pty. Ltd. is the owner / operators of Mulberry Tree Child Care & Kindy. Mulberry Tree commenced business in 1995 and currently operate 35 Child Care facilities across Western Australia, including three in the Kimberley. Mulberry Tree are the incumbent lessee and have been in operation on this site since 15 February 2008. The existing lease was originally executed by Chu Chuu’s Early Education Centre on 1 November 2007 and assigned to Cachet Holdings Pty. Ltd. on 15 February 2008.

 

On 30 August 2007 Council resolved:

 

 That Council:

1.   Agrees to a lease term of 5 years, with two additional 5-year terms.

 

2.   Endorses the proposal for Kim Gregory Blythe, Giuliana Serafino

Blythe and Kimlee Investments Pty Ltd and Bevin William Blythe, Faye Eileen

Blythe, to lease Reserve 1640 known as the Chu Chuus Early Education Centre for

$46,000 per annum, indexed to CPI annually, with market valuations every three

(3) years and the matter be advertised in accordance with the requirements of

section 3.58 of the Local Government Act 1995.

 

3.    That the Chief Executive Officer be authorised to finalise the terms and conditions of the lease agreement between the Shire of Broome and Kim Gregory Blythe,

Giuliana Serafino Blythe and Kimlee Investments Pty Ltd and Bevin William Blythe,

Faye Eileen Blythe for the Reserve 1640, for a Child Care Facility, subject to no

adverse comments being received during the public submission period.

 

4.    That the Chief Executive Officer be authorised to negotiate the sale of the equipment listed on the lease inventory with the current lessee.

 

Mulberry Tree has corresponded with the Shire requesting to vary the existing lease agreement by the way of altering ‘Clause 1’ and ‘The Schedule’ to reflect an additional option to renew for a period of six years:

             Commencing on   1 November 2022

             Expiring on               31 October 2028

This would extend the lease for six years, to the maximum term of 21 years, as approved by the Minister for Lands.

The request from Mulberry Tree extends the term beyond what was resolved by Council on the 30 August 2007. Therefore, under Section 3.58 of the Local Government Act 1995 the lease variation needs to be considered and resolved by Council to comply with the above-mentioned Act.

 See attachment 2. Letter from Mulberry Tree

 

COMMENT

Since Mulberry Tree took possession in 2008 they have met all the requirements and conditions of their lease agreement. During this time, Mulberry Tree have developed a good working relationship with the Shire of Broome.

 

Mulberry Tree request to extend the lease agreement reflects their long-term business plans to continue and grow their services in Broome and the Kimberley. The Herbert Street Centre alone employs up to 12 staff with more across their centres in Roebuck Estate and Broome North. The services provided by Mulberry Tree are critical for families in the community whom require after school care and long day care.

 

Officers recommend the Shire agree to the request from Mulberry Tree subject to vary the existing lease and provide an option to renew for a further term of six years, subject to:

 

1.       The Chief Executive Officer to obtain approval from the Minister of Lands to vary the existing lease by way of a ‘deed of variation’ in accordance with Section 18 of the Lands Administration Act 1977.

 

2.       The Chief Executive Officer advertise, in accordance with Section 3.58 (3) and (4) of the Local Government Act 1995 to vary the lease on Reserve 1640 to Cachet Holdings Pty. Ltd. to include an option to renew the lease for a further term of six (6) years from 1 November 2022 to 31 October 2028 at market valuation.

3.       If no submissions are received, authorises the Chief Executive Officer to negotiate the final terms and conditions of the Deed of Variation with Cachet Holdings Pty. Ltd. subject to:

a)        Consent of the Minister of Lands first being obtained.

b)        At the commencement of the option, the rent will be subject to a market valuation. The extension will be subject to annual CPI increases (Indexes based on Perth, All Groups, September Quarter). Note, no further market reviews are recommended as the term is restricted to six years.

c)        The lessee agrees to pay the costs associated with drafting the Deed of Variation and the rental valuation.

 

 

CONSULTATION

 

Cachet Holdings Pty. Ltd.

 

STATUTORY ENVIRONMENT

Local Government Act 1995

3.58.  Disposing of property

(1)     In this section — 

          “dispose” includes to sell, lease, or otherwise dispose of, whether absolutely or not;

property” includes the whole or any part of the interest of a local government in property, but does not include money.

(2)     Except as stated in this section, a local government can only dispose of property to — 

(a)    the highest bidder at public auction; or

(b)     the person who at public tender called by the local government makes what is, in the opinion of the local government, the most acceptable tender, whether or not it is the highest tender.

(3)     A local government can dispose of property other than under subsection (2) if, before agreeing to dispose of the property — 

(a)     it gives local public notice of the proposed disposition — 

(i)      describing the property concerned;

(ii)     giving details of the proposed disposition; and

(iii)     inviting submissions to be made to the local government before a date to be specified in the notice, being a date not less than 2 weeks after the notice is first given; and

(b)     it considers any submissions made to it before the date specified in the notice and, if its decision is made by the council or a committee, the decision and the reasons for it are recorded in the minutes of the meeting at which the decision was made.

(4)     The details of a proposed disposition that are required by subsection (3) (a) (ii) include — 

(a)     the names of all other parties concerned;

(b)     the consideration to be received by the local government for the disposition; and

(c)     the market value of the disposition as ascertained by a valuation carried out not more than 6 months before the proposed disposition.

(5)     This section does not apply to — 

(a)     a disposition of land under section 29 or 29B of the Public Works Act 1902;

(b)     a disposition of property in the course of carrying on a trading undertaking as defined in section 3.59;

(c)     anything that the local government provides to a particular person, for a fee or otherwise, in the performance of a function that it has under any written law; or

(d)     any other disposition that is excluded by regulations from the application of this section.

          [Section 3.58 amended by No. 49 of 2004 s. 27.]

 

POLICY IMPLICATIONS

 

Nil

 

FINANCIAL IMPLICATIONS

 

Extending the existing lease will secure the Shire of Broome six additional years of income at market value (to be determined) in addition to annual CPI increases.

 

The full costs associated with drafting the deed and obtaining a market valuation will be at the lessee’s expense.

 

RISK

 

Should the Shire of Broome not agree to vary and extend the lease there is a risk that Mulberry Tree may look at other facilities across the community to meet their long-term business needs, resulting in the Shire losing a prime tenant. This would have a significant financial impact on the revenue generated from this reserve.

 

STRATEGIC IMPLICATIONS  

 

Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:

 

Affordable services and initiatives to satisfy community need

 

Accessible and safe community spaces

 

A healthy and safe environment

 

Our Place Goal – Help to protect the nature and built environment and cultural heritage of Broome whilst recognising the unique sense of the place:

 

Core asset management to optimise Shire’s infrastructure whilst minimising life cycle costs.

 

Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:

 

Affordable and equitable services and infrastructure

 

Affordable land for residential, industrial, commercial and community use

 

Key economic development strategies for the Shire which are aligned to regional outcomes working through recognised planning and development groups/committees

 

Our Organisation Goal – Continually enhance the Shire’s organisational capacity to service the needs of a growing community:

 

Sustainable and integrated strategic and operational plans

 

Responsible resource allocation

 

 

VOTING REQUIREMENTS

Simple Majority

 

REPORT RECOMMENDATION:

That Council:

1.       Requests the Chief Executive Officer to obtain approval from the Minister of Lands to vary the existing lease by way of a ‘deed of variation’ in accordance with Section 18 of the Lands Administration Act 1977.

2.       Requests the Chief Executive Officer advertise, in accordance with Section 3.58 (3)    and (4) of the Local Government Act 1995 to vary the lease on Reserve 1640 to          Cachet Holdings Pty. Ltd. to include an option to renew the lease for a further term      of six (6) years from 1 November 2022 to 31 October 2028 at market valuation.

3.       If no submissions are received, authorises the Chief Executive Officer to negotiate the final terms and conditions of the Deed of Variation with Cachet Holdings Pty. Ltd. subject to:

          a)      Consent of the Minister of Lands first being obtained.

b)      At the commencement of the option, the rent will be subject to a market valuation. The extension will be subject to an annual CPI (Indexes based on        Perth, All Groups, September Quarter) increase for each year of the option. 

          c)      The lessee agrees to pay the costs associated with drafting the Deed of      Variation and the rental valuation.

 

 

Attachments

1.

Management Order

2.

Request from Mulberry Tree

  


Item 9.2.5 - LEASE VARIATION FOR MULBERRY TREE CHILD CARE

 

 

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Item 9.2.5 - LEASE VARIATION FOR MULBERRY TREE CHILD CARE

 

 

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AgendaOrdinary Meeting of Council 14 December 2017                                                                         Page 62 of 63

 

 

9.2.6      LEASE DISPOSAL TO BROOME LOTTERIES HOUSE INC IN PORTION OF RESERVE 42502

LOCATION/ADDRESS:                             Reserve 42502, Cable Beach Road East, Broome

 

APPLICANT:                                              Lotteries House Inc.

FILE:                                                           LSS024

AUTHOR:                                                   Property and Leasing Senior Officer

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Infrastructure

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    1 November 2017

 

SUMMARY:         A request has been received from Broome Lotteries House to enter into a new lease on portion of Reserve 42502 for a period of 21-years to Broome Lotteries House Inc. This report recommends the approval of a new lease with re-defined lease boundaries over portion of Reserve 42502.

 

 

BACKGROUND

 

Previous Considerations

 

 

 

The Shire of Broome holds a Management Order over Reserve 42502 for the purposes of “Recreation, Civic, Cultural Centre & Short-Term Accommodation” with a power to lease for a term not exceeding 21 years.

A portion of Reserve 42502 shown in Attachment 1 to this report (“the Premises”) was leased to Broome Lotteries House Incorporated (“Broome Lotteries”) for a 21-year term commencing 8 May 1993 and expiring 7 May 2014, with a constant peppercorn rental amount throughout the term of $1.00 per annum. 

The lease offered a further term of twenty-one (21) years and a second further term of eight (8) years, however, the extensions are in contravention of the management order for Reserve 42502, and approval of a further extension of lease on the same terms cannot be approved. Furthermore, the tenants have indicated through consultation that new lease documentation would be preferable. Officers also seek to enter into a new lease given the age of the document and to clarify in more detail the relationship that exists between the tenant and the Lotteries Commission of Western Australia (“Lotteries Commission”) in a separate charitable Trust Deed dated 11th May 1994 (“Trust Deed”) – detailed later in this report. 

Broome Lotteries currently has ten (10) sub-leases in place with various not for-profit and community organisations. Attachment 2 outlines the current tenancies and the rental income for Broome Lotteries.

Following ongoing negotiations, Broome Lotteries has requested a new 10-year lease with an 11-year option to renew (Attachment 3), of which the essential terms of the lease are discussed below.

 

COMMENT

 

1.       Proposed Lease Terms

Negotiations have occurred with Broome Lotteries and the following terms are proposed for Council’s consideration:

 

(a)     Consent of the Minister of Lands being obtained.

(b)     Peppercorn Rent of $1.00 per annum.

(c)     Utilities service and consumption charges including telephone, electricity, gas and water covered by tenant. 

(d)     All maintenance and capital works shall be undertaken by the tenant in respect of the Premises including but not limited to:

a)      Cleaning.

b)      Repairs, replacement, renewal and upgrade of the Premises:

A.      Building and Common Areas.

B.      Plant and Equipment, including Air Conditioners.

C.      Building fit out and contents;

c)      Security.

d)      Pest Control.

e)      Painting.

f)       Emergency Service Equipment.

g)      Rubbish Collection, undertaken by the tenant at their own cost.  

(e)     Gardening Maintenance undertaken by the tenant. Currently paid by the Shire of Broome at an annual expense of $30,096.00.

(f)      Building Insurance undertaken by the Shire of Broome at its cost currently set at $17,086.00.

(g)     Tenant responsible for all maintenance, renewal and capital works across all building and assets outlines within the ‘leased area’.

(h)     Unilateral Assignment of Lease to the Lotteries Commission of WA if a Specified Event occurs in accordance with the terms of the Trust Deed dated 11 May 1994.

(i)      Tenant to provide to the Landlord annually a copy of its:

a)      current procedures manual.

b)      financial statement.

c)      occupancy list.

d)      short term hire register.

(j)      Tenant responsible for legal costs including the preparation, negotiation and registration of lease documentation throughout the lease, including any ancillary leasing documentation, i.e. sub-lease, short term hire arrangements, licenses or deeds of assignment.

A summary of these proposed terms in reference to the current lease are listed below. Please note that some of these issues are expanded further, later in this report.

 

Term

Current Lease

Proposed Lease

Comment

Rent

$1.00 per annum

$1.00 per annum

Same

 

Utilities

Tenant pays all service and consumption charges for all utilities

Tenant pays all service and consumption charges for all utilities

Same

 

Maintenance and Capital Works

General obligation to keep and maintain the land and improvements in good and substantial repair and condition and to rectify and make good any damage caused to the leased land or improvements

 

Silent on capital obligations although all capital renewal and upgrades have been undertaken by the tenant.

All maintenance and capital works in respect of the Premises including but not limited:

a)      Cleaning;

b)      Repairs, replacement, renewal and upgrade of the Premises:

A.  Building and Common Areas;

B.  Plant and Equipment, including Air Conditioners; and

C.  Building fit out and contents;

c)      Security;

d)     Pest Control;

e)     Painting;

f)      Emergency Service Equipment; and

g)     Rubbish Collection,

undertaken by the tenant at their own cost.

 

More defined and comprehensive guide in respect of maintenance and capital obligations

Preventative Maintenance

Lease is silent

But limited preventative maintenance is undertaken at the site with tenant’s consent  

Tenant responsible for all preventative maintenance costs as directed by the Shire of Broome.

 

Clarifying and formalising the current relationship as set out in the Shire Building Asset Management Plan.

Rates and Taxes

Exempt from Rates

Exempt from Rates

Same

Building Insurance

Paid by Lessor

Paid by Lessor (Currently $17,846.10 pa)

Same

Gardening Maintenance

Lease silent.

But gardening currently undertaken, and costs assumed by Lessor at $30,096pa

Gardening to be undertaken and costs assumed by Lessee

Responsibility shifted to Lessee

 

 

 

Unilateral assignment of interest in Lease to Lotteries Commission

Silent in Lease but covered in the Trust Deed

Unilateral assignment of Lease to Lotteries Commission on the occurrence of a specified event as defined by the terms of the trust deed defined in the new lease.

More clarity of the relationship between the Lease and the Trust to avoid any confusion or contraction between the two documents.

 

 

Legal Costs of Preparation of Lease

Silent

Payable by Lessee

Reasonable cost incurred for the renewal of a 21-year lease.

 

Lease Area

Area not clearly defined. Building and site plan has changed over years

Revised Plan

More detailed comprehensive outline of leased premise.

Proposed Use of Premises

 

 

 Lease Item 6 Schedule:

For the provision of office accommodation for organisations that are ‘eligible organisations’ as defined in section 19 of the Lotteries Commission Act 1990, for use by them exclusively for benevolent or charitable purposes.”

This conflicts with the use of the premises in the trust deed.

To make and keep available the trust property for organisations that are ‘eligible organisations’ as defined in section 19 of the Lotteries Commission Act 1990 WA, for use by them exclusively for:

(a)  Office accommodation for benevolent or charitable purposes; or

(b)  Training and children’s services facilities.”

 

Revised use to take into account obligations of tenant imposed on them by the trust deed:

Office Accommodation, Training and Children’s Facilities for organisations that are ‘eligible organisations’ as defined in Section 19 of the Lotteries Commission Act 1990 WA for use by them exclusively for benevolent or charitable activities”

 

More clarity of the relationship between the Lease and the Trust to avoid any confusion or contraction between the two documents.

Ancillary Leasing Arrangements Sub Leasing, Short Term Hire, Licensing

Silent in the current lease. 

However, the purpose of the lease is ‘ancillary leasing’ therefore, in order to comply with their purpose, they need to ensure that the tenants satisfy the “use” which includes compliance with Section 19 of the Lotteries Commission Act.

No formal consent of Shire required for ancillary leasing

A copy of:

(a)   current procedures manual;

(b)   financial statement;

(c)   occupancy list; and

(d)   short term hire register.

 

Provided to the Landlord annually to ensure transparency that the tenant is not in breach of their lease.

 

Additional Clause in lease that allows for a committee to be established, if required to consider ancillary leasing compliance and other leasing issues

More transparency for Landlord to ensure compliance with the terms of the lease and options available for Council to consider

 

2.       Additional Issues with the Lease

2.1    The Leased Area

The Leased area of the Premises outlined in attachment 1 did not take into account new buildings and other improvements located on the property.

The leased area also included the whole of the road access and car park, which could be problematic if in the future the land to the rear of the Lotteries House premise is developed.

Officers from the property and gardening departments have worked together with the tenant to define the proposed new leased area boundary in Attachment 4 to this recommendation.

Broome Lotteries has viewed the revised leased area and are happy to accept the revised lease area.

2.2    The Tenant and Trust Deed 

The initial construction of the buildings and improvements which are situated on the Premises were funded in some part by the Lotteries Commission. In light of this and the nature of the purpose of Broome Lotteries House, a Trust Deed was entered into to govern the relationship between the Lotteries Commission and Broome Lotteries. However, the lease deals with the relationship between the tenant Broome Lotteries and the Landlord Shire of Broome.

In the Trust Deed the Lotteries Commission is the beneficial owner of the Trust Property. The Trust Deed stipulates the Trust Property consists of:

(a)    Broome Lotteries interests under the Lease;

(b)    Broome Lotteries future interest in:

i.        The Land (which is the subject of the lease);

ii.       Any building on the Land that existed in 1994 when the Trust Deed was signed;

iii.      Any buildings which are constructed after the Trust Deed was signed; and

iv.      The improvements on the Land as at the date that the Trust Deed was signed.

The trust deed that exists between the parties is a Charitable Trust. Whereas an ordinary discretionary trusts vests after 80 years in accordance with the rules of perpetuity. Rather, this trust deals with the trust property for an infinite period.

Officers have considered various options to compel the Lotteries Commission to vest the trust to simplify the arrangement that occurs however, the Lotteries Commission has indicated that the trust is a common legal arrangement that they have across the State in similar lotteries house arrangements and they would not be prepared to vary or vest the trust at this stage.

Unlike other buildings constructed on Shire land if Council wanted to use the building for a purpose other than purpose contained in the lease according to the trust deed, they would need consent from Lotteries Commission or for the trust to be vested.

Therefore, officers recommend that Council simply accommodate the trust objectives in the lease arrangement. This will ensure that the leasehold is not conflicted or confused with the trust arrangement, a problem which has occurred throughout the term of the current lease.  

One way to interpret the relationship between Broome Lotteries and the Lotteries Commission is like a quasi franchisor or guarantor. If one of the “Specified Events” listed in the Trust Deed occurs, any beneficial interest that Broome Lotteries has in the lease including the running of its business operations, passes by default to the Lotteries Commission. This includes Broome Lotteries rights as tenant pursuant to any lease or future lease of the property.

A specified event under the Trust Deed includes:

·        The winding up, dissolution (by any means) or other mode of cessation of the existence of the Broome Lotteries.

·        The use of Trust Property by Broome Lotteries or by any other person for a purpose that is not or that ceased to be an approved purpose within the meaning of that expression as it is defined in section 19 of the Lotteries Commission Act 1990.

·        Broome Lotteries ceasing for any reason to be in the opinion of the Commission (as notified in writing) any longer an eligible organisation within the meaning of that expression as it is defined in section 19 of the Lotteries Commission Act 1990.

·        A Breach:

o   Of any of the undertakings of Broome Lotteries contained or implied in the Trust Deed;

o   Of any of the undertaking of Broome Lotteries in any deed,

         which is not remedied within 30 days after notice has been served by the Commission requiring the recipient of the notice to remedy that breach.

·        A Breach of any covenant or provision contained in the lease which might entitle the Lessor of the Premises to terminate the lease.

·        If:

o   The building or a substantial part of it is damaged or destroyed from any cause; or

o   The lease term is terminated for any reason other than by normal expiry by the passing of time.

Therefore, officers recommend that the trust deed be referenced in the lease with specific reference to the unilateral assignment of the lease to Lotteries Commission from Broome Lotteries in the event of a Specified Event as defined in the Trust Deed.  This will reduce the ambiguity that exists between the two documents.

The Lotteries Commission have indicated that they will provide a separate letter or deed of consent for the parties to the lease, to confirm the obligations on them imposed by the lease and the trust deed.

 

2.3    Proposed Use of the Premises

The use of the premises outlined in the 1993 lease noted:

“For the provision of office accommodation for organisations that are ‘eligible organisations’ as defined in section 19 of the Lotteries Commission Act 1990, for use by them exclusively for benevolent or charitable purposes.”

However, the relationship between the tenant and the Lotteries Commission through the Trust Deed ensures that the while Broome Lotteries has an interest in the premises (as a tenant) they can only use the premises to:

“To make and keep available the trust property for organisations that are ‘eligible organisations’ as defined in section 19 of the Lotteries Commission Act 1990 WA, for use by them exclusively for:

(c)       Office accommodation for benevolent or charitable purposes; or

(d)       Training and children’s services facilities.”

Given the tenant is restricted by this use through the trust deed, officers believe that the permitted use between landlord and tenant in the lease should be on similar terms, namely:

“Office Accommodation, Training and Children’s Facilities for organisations that are ‘eligible organisations’ as defined in Section 19 of the Lotteries Commission Act 1990 WA for use by them exclusively for benevolent or charitable activities”

Eligible Organisation:

Officers note that section 19 of the Lotteries Commission Act 1990 WA describes and eligible organisation as:

(a)    an institution, association, club, society, organisation or body, whether incorporated or not:

(i)      that is not a Minister of the Crown in right of the State, Government department, State trading concern, State instrumentality or State public utility; and

(ii)      that is not operated for the purpose of profit or financial gain to individual members, shareholders or owners; or

(b)    a local government or regional local government.

Therefore, while the Shire of Broome can utilise the premises, other government organisations and profit run businesses can not.

Charitable and Benevolent Purpose:

                   The Australian Charities and Not-for-profit Commission defines Charitable and   Benevolent as follows:

 

i)          For an organisation to have a charitable purpose they must be not for profit and for the public benefit.

 

ii)         For an organisation to have a benevolent purpose they must be a charitable institution that provides benevolent relief to people in need.

2.4    Ancillary Leasing Arrangements


The current lease is silent on ancillary leasing arrangements including, sub-leasing, assignment and licensing. Furthermore, there is no obligation in the current lease on the tenant to seek consent from the Landlord in respect of any ancillary leasing arrangements that are made.

Officers make the following comments in this regard:

 

a)      Sub – leasing, Short Term Hiring and Licensing

 

These ancillary leasing arrangements are set by the purpose of the lease therefore do not need to be addressed in detail in the lease. 

 

Unlike other Shire leased properties the granting of individual sub leases or licenses at Broome Lotteries House are governed by:

 

(a)    The purpose of the lease and its link to the Lotteries Commission Act 1990; and

(b)    The Trust Deed as the tenant is required to seek consent from the Lotteries Commission of WA before granting a lease or license.

The question then arises what involvement should the Shire of Broome have as Landlord in consenting to and ensuring that the sub lease, short term hire and licensing requirements of Broome Lotteries are in accordance with their lease obligations.

Firstly, pursuant to the purpose of the lease the Shire of Broome would not be required to satisfy the requirements of section 3.58 of the Local Government Act WA 1995 due to the requirement for any of the ancillary leasing arrangements to satisfy the conditions of Section 19 of the Lotteries Commission Act 1990 which accordingly ensures that the ancillary arrangements would also meet the requirements of Regulation 30(b) and 30(c) of the Local Government (Functions and General) Regulations 1996. Reg 30 is an exemption to section 3.58 of the Local Government Act WA 1995.

Officers recommend that sub-leases are dealt with by a special condition in the lease as outlined below:

Leasing Obligations

A condition of the lease could require the Tenant to provide to the Landlord annually a copy of:

(a)     current procedures manual;

(b)     financial statement;

(c)     occupancy list; and

(d)     short term hire register.

This ensures that Broome Lotteries are able to operate as much as possible independently from the Shire of Broome, which frees up officer and Councillor resources yet still allows the Shire to confirm the activities of the tenant are not in breach of the lease. Officers could present these documents to Council annually with confirmation of the tenant’s compliance of the lease.

 

2.       Assignment of Lease

Officers recommend that the Lease exclude the right of the tenant to assign the lease other than unilateral assignment to the Lotteries Commission of Western Australia its governing body with a Specified Event that occurs under the Trust Deed.

Accordingly, should the tenant breach its lease obligations a unilateral assignment to the Lotteries Commission could occur with the Landlord’s consent.

However, if the Lotteries Commission then took over assignment of the lease the same ‘quasi guarantor’ concessions would not apply.

As noted above Officers recommend that the Lotteries Commission be required to formally consent to confirm the obligations imposed on them by the trust deed and the lease.

Summary

Broome Lotteries House delivers subsidised office accommodation for non-for-profit organisations and community groups in the Broome LGA. It is run at 80% occupancy and delivers essential services to the sector whilst absorbing all the capital and maintenance cost of the facility.

Broome Lotteries House are seeking to extend their services by renewing their lease for a further 10 years with an 11-year option. To continue delivering this service they seek Council’s support by absorbing the cost of building insurance for the duration of the term. In return, Broome Lotteries House will take on all the costs associated with maintaining the grounds of the ‘leased area’ – currently budgeted to the SoB at $30,096.00pa. This will free up Council resources, which can be allocated to increase the service levels at other Reserves.

 

 

CONSULTATION

 

Broome Lotteries House

Lotterywest

 

 

STATUTORY ENVIRONMENT

 

Regulation 30 Local Government (Functions and General) Regulations 1996

30.     Dispositions of property to which section 3.58 of Act does not apply

(1)     A disposition that is described in this regulation as an exempt disposition is excluded from the application of section 3.58 of the Act.

(2)     A disposition of land is an exempt disposition if — 

(a)    the land is disposed of to an owner of adjoining land (in this paragraph called the transferee) and — 

(i)      its market value is less than $5 000; and

(ii)      the local government does not consider that ownership of the land would be of significant benefit to anyone other than the transferee;

(b)    the land is disposed of to a body, whether incorporated or not — 

(I)      the objects of which are of a charitable, benevolent, religious, cultural, educational, recreational, sporting or other like nature; and

(ii)      the members of which are not entitled or permitted to receive any pecuniary profit from the body’s transactions;

(c)    the land is disposed of to — 

(i)      the Crown in right of the State or the Commonwealth;

(ii)      a department, agency, or instrumentality of the Crown in right of the State or the Commonwealth; or

(iii)     another local government or a regional local government;

(d)    it is the leasing of land to an employee of the local government for use as the employee’s residence;

(e)    it is the leasing of land for a period of less than 2 years during all or any of which time the lease does not give the lessee the exclusive use of the land;

(f)      it is the leasing of land to a “medical practitioner” (as defined in section 3 of the Medical Act 1894) to be used for carrying on his or her medical practice; or

(g)    it is the leasing of residential property to a person.

(2a)   A disposition of property is an exempt disposition if the property is disposed of within 6 months after it has been —

(a)    put out to the highest bidder at public auction, in accordance with section 3.58(2)(a) of the Act, but either no bid is made, or any bid made does not reach a reserve price fixed by the local government;

(b)    the subject of a public tender process called by the local government, in accordance with section 3.58(2)(b) of the Act, but either no tender is received or any tender received is unacceptable; or

(c)    the subject of Statewide public notice under section 3.59(4), and if the business plan referred to in that notice described the property concerned and gave details of the proposed disposition including —

(i)      the names of all other parties concerned;

(ii)      the consideration to be received by the local government for the disposition; and

(iii)     the market value of the disposition as ascertained by a valuation carried out not more than 12 months before the proposed disposition.

(2b)   Details (see section 3.58(4) of the Act) of a disposition of property under sub regulation (2a) must be made available for public inspection for at least 12 months from the initial auction or tender, as the case requires.

(3)     A disposition of property other than land is an exempt disposition if — 

(a)    its market value is less than $20 000; or

(b)    it is disposed of as part of the consideration for other property that the local government is acquiring for a consideration the total value of which is not more, or worth more, than $50 000.

[Regulation 30 amended in Gazette 25 Feb 2000 p. 974‑5; 28 Apr 2000 p. 2041; 31 Mar 2005 p. 1055‑6.]

Section 3.58 Local Government Act 1995

 

3.58.     Disposing of property

(1)    In this section — 

        “dispose” includes to sell, lease, or otherwise dispose of, whether absolutely or not;

        “property” includes the whole or any part of the interest of a local government in property, but does not include money.

(2)   Except as stated in this section, a local government can only dispose of property to — 

(a) the highest bidder at public auction; or

(b) the person who at public tender called by the local government makes what is, in the opinion of the local government, the most acceptable tender, whether or not it is the highest tender.

(3)  A local government can dispose of property other than under subsection (2) if, before agreeing to dispose of the property — 

(a)   it gives local public notice of the proposed disposition — 

(i)    describing the property concerned;

(ii)    giving details of the proposed disposition; and

(iii)   inviting submissions to be made to the local government before a date to be specified in the notice, being a date not less than 2 weeks after the notice is first given;

                            and

(b)   it considers any submissions made to it before the date specified in the notice and, if its decision is made by the council or a committee, the decision and the reasons for it are recorded in the minutes of the meeting at which the decision was made.

(4)   The details of a proposed disposition that are required by subsection (3)(a)(ii) include — 

(a)   the names of all other parties concerned;

(b)   the consideration to be received by the local government for the disposition; and

(c)   the market value of the disposition as ascertained by a valuation carried out not more than 6 months before the proposed disposition.

(5)   This section does not apply to — 

(a)   a disposition of land under section 29 or 29B of the Public Works Act 1902;

(b)   a disposition of property in the course of carrying on a trading undertaking as defined in section 3.59;

(c)   anything that the local government provides to a particular person, for a fee or otherwise, in the performance of a function that it has under any written law; or

(d)   any other disposition that is excluded by regulations from the application of this section.

               [Section 3.58 amended by No. 49 of 2004 s. 27.]

 

Section 5.8 Local Government Act 1995

 

5.8     Establishment of Committees

          A local government may establish* (absolute majority required) committees of 3 or more persons to assist the council and to exercise the powers and discharge the duties of the local government that can be delegated to committees.

 

 

POLICY IMPLICATIONS

 

Nil

 

FINANCIAL IMPLICATIONS

 

The table below summarises financial implications of the Lease disposal generally on an annual basis with some specific costs incurred on a once off basis.

 

 

Portion Reserve 42502

Broome Lotteries House

Income

From Tenant

(excluding GST * items will have GST included)

Expense by Shire

 

Budget Amendment

Account

 

 

Rent (per annum)

$1.00

 

No already budgeted 111411

Gardening (per annum)

 

0.00

Current budgeted for in Acc 111026 Budget Saving Of $12,540 to be allocated to another Reserve

Insurance (per annum)

 

$17,846.10

already budgeted Acc 111021

Water

$3000

$3000

 Already budgeted 111021/111411

Estimated Legal Costs (once off) to prepare lease

$2,000*

$2,000*

Already budgeted 144027/142995

TOTAL

$5,001

$22,846.10

 

NET SHIRE POSITION

 

-$17,846.10

 

 

* Estimate Only.

 

RISK

 

Broome Lotteries House provides affordable office accommodation for up to 16 non-for-profit or community groups based in Broome. Should the Shire of Broome not accept the terms and conditions of the lease, there is a risk that Broome Lotteries would not be viable and may not be able to continue to operate in its current format.

 

STRATEGIC IMPLICATIONS

 

Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:

 

Affordable services and initiatives to satisfy community need

 

Accessible and safe community spaces

 

Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:

 

Affordable and equitable services and infrastructure

 

Affordable land for residential, industrial, commercial and community use

 

Key economic development strategies for the Shire which are aligned to regional outcomes working through recognised planning and development groups/committees

 

Our Organisation Goal – Continually enhance the Shire’s organisational capacity to service the needs of a growing community:

 

Responsible resource allocation

 

 

VOTING REQUIREMENTS

Simple Majority

 

REPORT RECOMMENDATION:

That Council:  

1.   Accepts, in accordance with Local Government (Functions and General) Regulations 1996, Section 30(2)(b) the request from Broome Lotteries House Inc. to lease portion of Reserve 42502 for a term of ten (10) years with a further eleven (11) year option in line with the terms and conditions set out below:

     (i)    Consent of the Minister of Lands being obtained.

    (ii)   Utilities service and consumption charges including telephone, electricity, gas     and water covered by tenant; 

   (iii)    All maintenance and capital works in respect of the Premises including but not limited:

             a)      Cleaning;

             b)     Repairs, replacement, renewal and upgrade of the Premises:

·    Building and Common Areas;

·    Plant and Equipment, including Air Conditioners; and

·    Building fit out and contents.

                   c)      Security;

                   d)      Pest Control;

                  e)      Painting;

                   f)      Emergency Service Equipment; and

                   g)     Rubbish Collection, undertaken by the tenant at their own cost.

        (iv)     Rates and Taxes paid by Shire of Broome; 

        (v)      Gardening Maintenance undertaken by the tenant. Currently paid by the Shire of Broome at an annual expense of $30,096.00

       (vi)     Building Insurance undertaken by the Shire of Broome at its cost currently set at $17,086.00

    (vii)      Tenant responsible for all maintenance, renewal and capital works across all               building and assets outlines within the ‘leased area’.

(viii)     Unilateral Assignment of Lease to the Lotteries Commission of WA if a specified   event occurs in accordance with the terms of the Trust Deed dated 11 May   1994.

          (ix)   Tenant to provide to the Landlord annually a copy of it’s:

i. current procedures manual;

ii.         financial statement;

iii.         occupancy list; and

iv.        short term hire register.

          (x)   Tenant responsible for legal costs including the preparation, negotiation and                  registration of lease documentation throughout the lease, including any                        ancillary leasing documentation, i.e. sub lease, short term hire arrangements,               licenses or deeds of assignment.

                

2.     Authorises the Chief Executive Officer to negotiate the final terms and conditions of the lease.

 

Attachments

1.

Existing Site Plan

2.

Sub Leases and Rates (Confidential to Councillors and Directors Only)

This attachment is confidential in accordance with Section 5.23(2) of the Local Government Act 1995 section 5.23(2)((e)(ii)) as it contains “a matter that if disclosed, would reveal information that has a commercial value to a person, where the information is held by, or is about, a person other than the local government”.

3.

Request to Lease

4.

New Lease Boundaries

  


Item 9.2.6 - LEASE DISPOSAL TO BROOME LOTTERIES HOUSE INC IN PORTION OF RESERVE 42502

 

 


Item 9.2.6 - LEASE DISPOSAL TO BROOME LOTTERIES HOUSE INC IN PORTION OF RESERVE 42502

 

 

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AgendaOrdinary Meeting of Council 14 December 2017                                                                         Page 80 of 81

 

 

9.2.7      LEASE DISPOSAL TO BROOME GOLF CLUB INC

LOCATION/ADDRESS:                             RESERVE 33592 AND 29300

APPLICANT:                                              BROOME GOLF CLUB INC.

FILE:                                                           LSS022

AUTHOR:                                                   Property and Leasing Senior Officer

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Infrastructure

DISCLOSURE OF INTEREST:                      NIL

DATE OF REPORT:                                    25 November 2017

 

SUMMARY:         This report requests Council to accept the Business Case and Funding Strategy for the proposed re-development of the Broome Golf Club (as presented by Broome Golf Club Inc (BGC)). Council is also requested to note that BGC have met the conditions outlined in Clause 16 of their current lease agreement. Further, Council is also requested to consider entering into an ‘Agreement for Further Lease’ with the BGC to reflect the Councils intention to enter into a new 21 year lease upon completion of the proposed development (subject to further terms and conditions).

 

 

BACKGROUND

 

Previous Considerations

 

OMC 15 December 2016                 Item 9.2.5

OMC 17 December 2015                 11.1 (Notice of Motion)

OMC 15 October 2015                     12.1 (Matters of Urgent Business)

OMC 24 April 2013                             Item 9.1.3

OMC 21 March 2013                         Item 9.2.2

OMC 4 May 2004                               Item 9.5.1

 

The Land:

a)      Reserve 29300, comprising of Lot 1198, Lot 1199 and Lot 851 being a legal area of 853,376sqm. This Reserve is vested to the Shire of Broome (the Shire) for the purpose of “Public Recreation – Golf Links” with power, subject to approval in writing of the Minister for Lands to each and every lease or assignment of lease first obtained, for any term not exceeding 21 years.

b)      Reserve 33592, comprising of Lot 1197 being a legal area of 5,016sqm. This Reserve is vested to the Shire of Broome for the purpose of “Club and Club Premises” with power, subject to approval in writing of the Minister for Lands to each and every lease or assignment of lease first obtained, for any term not exceeding 21 years from the date of the lease, subject nevertheless to the powers reserved by Section 37 of the Land Act 1933.

 

See attachment 1

 

Lease Background and Special Conditions

 

At the OMC held 21 March 2013, Council resolved to enter into a lease agreement with the Broome Golf Club to lease a portion of Reserves 29300 and 33592 for the purpose of recreation golf links, club and club premises, for a term of 15 years. Council resolved that as a condition of the lease the Broome Golf Club was to achieve the following milestones within the first five years:

 

a)      Development of detailed plans for the construction of new clubhouse, these plans to be independently costed.

 

b)      Development of a funding strategy for construction of the new clubhouse. This would also need to include demonstrating attempting to secure funding or approaching financial institutions to secure loan facilities.

 

c)      A detailed financial business plan outlining how loan commitments support the construction of the facility will be achieved.

 

These conditions were accepted as part of the lease agreement by the Golf Club and a new 15-year lease was entered into on 12 September 2013, which is due to expire on 11 September 2028.

 

On 8 July 2015, the BGC provided the Shire with a business case proposal for Broome Golf Club – Clubhouse redevelopment feasibility study and concept designs. The Golf Club submitted the business case proposal to satisfy the milestone conditions of the lease. This business case was presented to Council at OMC 15 October 2015 with a request for a new 21 year lease agreement.

 

Council resolved the following:

 

Council Resolution:

 

Moved: Cr C Mitchell                                               Seconded: Cr H Tracey

 

That Council;

 

1.           Acknowledges the business case provided by the Broome Golf Club meets the obligation of the 5-year milestone relating to development of the clubhouse and enters into a new 21 year lease with Broome Golf Club.

 

2.           Consent to the sub lease to Serenbear Pty Ltd Pty Ltd for the similar period.

 

3.           Delegate authority to the Chief Executive Officer to determine the final lease terms and conditions and present such back to Council for approval.

CARRIED UNANIMOUSLY 8/0

 

On 10 December 2015 Cr R Johnston submitted a Notice of Motion with officer comments from the Director Corporate Services and Director Infrastructure.

 

The proposed Notice of Motion was to revoke the decision made by Council on 15 October 2015 (Agenda Item 12.1) and propose a new motion on the matter.

 

At the OMC held 17 December 2015 Council resolved to revoke the Council decision made at the OMC held 15 October 2015 Agenda item 12.1.

 

Council resolved the following:

 

Council Resolution:

Moved: Cr H Tracey                                                 Seconded: Cr R Johnston

 

That Council;

 

1.         Acknowledges that considerable effort has gone into the development of the Business Case provided by the Broome Golf Club.

 

2.         Considers the Business Case represents a first step towards meeting the milestones identified in the lease;

 

3.         Requests the Chief Executive Officer to work with the Broome Golf Club in preparing further details to address the issues below prior to Council considering whether the milestones have been achieved or entertaining any new lease being entered into:

a)        opportunities for the redevelopment to further realise the potential of the site;

b)        development of the concept plans into detailed design plans and these to be independently costed

c)        development of a funding strategy for the new Clubhouse and demonstration of attempts to secure funding for the construction.

d)        a detailed financial business plan for the construction and operation of the facility.

 

4.         Requests the Chief Executive Officer to seek funding through the next Finance and Costing Review once financial implications are clarified in regard to finalising the lease milestones.

 

CARRIED UNANIMOUSLY 9/0

 

Reason: While the Council encourages and supports the Broome Golf Club the motion as carried clarifies matters for the Chief Executive Officer to work with the Broome Golf Club prior to Council considering any new lease arrangements.

 

In order to assist the Broome Golf Club progress their business case the Shire of Broome appointed UDLA Pty. Ltd. to facilitate the community engagement and public workshops. The aim of the community engagement was to receive feedback from the public and key stakeholders on the following points:

 

·    Would the community prefer a community run club or privately-run club?

·    The site is Crown Land, vested in the Shire and zoned in Local Planning Scheme No. 6 (LPS 6) as Parks, Recreation & Drainage. Does your vision fit in with this zoning?

·    Do you believe the existing proposal is the ‘best use’ for this site?

·    What are your visions for the site?

·    Are you aware the Golf Club are undertaking a facility redevelopment proposal?

·    What do you like about the proposal?

·    What do you dislike about the proposal?

·    Do your visions fit within the current proposal and zoning?

 

This report was presented to Council at the OMC on the 15 December 2016. Council Resolved:

 

Council Resolution:

 

Moved: Cr D Male                                                    Seconded: Cr W Fryer

 

That Council;

1.       Notes the Community Engagement Reports prepared by UDLA as attached and requests the Broome Golf Club consider the outcomes of this report and incorporate such in the future detailed design, Business Case and Financial Business Plan as         required by the current Lease Agreement.

2.       Notes the Broome Golf Club has until September 2018 to meet the following        milestones of their lease agreement:

(a)    Development of detailed plans for the construction of a new clubhouse, these plans to be independently costed.

(b)    Development of a funding strategy for construction of the new clubhouse. This would also need to include demonstrating attempting to secure funding or approaching financial institutions to secure loan facilities.

(c)    Create a detailed financial business plan outlining how loan commitments to support the construction of the facility will be achieved.

3.       Requests the Chief Executive Officer to continue to work with the Broome Golf Club to           support the achievement of meeting the above-mentioned milestones in line with           Council’s resolution of 17 December 2015.

CARRIED UNANIMOUSLY 7/0

 

In February 2017 Broome Golf Club engaged Naja Business Consulting Services to work with key stakeholders to develop a Business Case and Funding Strategy to satisfy clause 16 of the lease agreement and further progress re-development plans in addition to secure funding.

 

On 20 October 2017, the Broome Golf Club presented Shire Officers with the first draft of the business case and funding strategy and a letter formally requesting a new 21 year lease agreement.

 

See Attachments 2 and 3.

                                                             

COMMENT

 

Proposed Development

 

Concept plans, drawings and render’s have been completed by Laird Trans Architects which are sufficient to obtain probable costs, site layout, floorplans, orientation and elevations of the proposed development. It is noted clause 16.2 (a) of the existing lease agreement required ‘detailed plans’. It is believed the documents submitted are of a sufficient standard to meet this clause.

 

See Attachment 6

 

The proposed $6.5 million development by the BGC on Reserve 33592 involves the construction of three ‘pod’ style buildings:

 

·    Two pods which incorporate a clubhouse with bar facilities, pro-shop, administration area, board room, change room facilities and cart storage; and

·    Pod three will cater for a more formal restaurant / function room upstairs and café style dining downstairs

 

The BGC intends to lease out the third pod to an independent business to operate the hospitality services and use the funds to contribute to the repayment of any loans required to complete the development (subject to approval from the Department of Lands).

 

 

The key outcomes of the project include:

·    Development of a new facility to meet the needs of current and future members, along with any other groups involved in the use of the facility, following a sustainable business model.

·    Creation of an opportunity to elevate the status of the BGC and drive an increase in membership numbers and visitor usage with the attraction of improved amenities.

·    Provision of a sports-tourism based economic driver for the community.

·    Better align the built form with the recent improvements in the course.

·    Create a significant tourist drawcard to Broome and the Kimberley.

 

 

Project Costs

 

Colin Wilkinson Developments Pty. Ltd. (CWD) have submitted an Opinion of Probable Costs (OPC) for the construction of the new club house based on the design shown in Attachment 3.

 

A full breakdown of the costs is reflected in Attachment 5 (commercial in confidence).

 

Strategic Context

The Shire of Broome framework for the development of Sport and Recreation Facilities 2016 – 2025 (adopted by Council February 2014) identifies that there are a number of clubs that operate under a licence or lease agreement, including the Broome Golf Club. It is noted that in the case of development projects for these facilities that:

It is proposed that the Shire’s responsibility in this regard is limited mostly to planning assistance, offering support for funding applications and in some instances where resources permit, a financial contribution to facility improvements considered on a case by case basis. The facilities currently identified in this category include Broome Bowling Club, Broome Surf Life Saving Club, Broome Fishing Club, Broome Sailing Club, Broome Golf Club, Broome Horse Riders Club, Broome Pistol Club, Broome Field and Game Club and Broome Speedway.

The BGC development proposal is consistent with the current framework. Shire officers have now appointed a consultant to undertake a review on the Sport and Recreation Plan for the Shire of Broome, and the golf club will be a key project that is considered within the report.

The BGC has participated in the Shire’s Club Development workshops and contributed to the Shire’s sport and recreation statistical data through the completion of Club Development surveys. In Broome’s sporting club landscape, the BGC is considered a good functioning club that has effective governance structures in place.

 

Business Case

 

Clause 16.2 (c) of the existing lease agreement states the Business Case must be in the form of the Royalties for Regions ‘Business Case Proposal’ template (see Attachment 4).

 

Officers note the reports submitted are in line with the 2014-15 Royalties for Regions Business Case template. The BGC have provided detailed comments on the following key points:

 

Heading

Comment

Policy & Strategic Framework

The BGC have demonstrated in detail how the project aligns with key strategic plans including:

·    State Planning Strategy 2050

·    Regional Development Strategy 2016-2025

·    Royalties for Regions

·    State Government Strategy for Tourism in Western Australia 2020

·    Strategic Directions 2016-2020 (Western Australian Sport and Recreation).

·    Kimberley Regional Investment Blueprint

·    Kimberley Regional Planning and Infrastructure Framework

·    Kimberley Regional Club Development Plan

·    Strategic Community Plan 2013-2023 (the Shire)

·    Local Planning Strategy (the Shire)

·    Broome Tourism Strategy

·    Framework for Development of Sport and Recreation Facilities (the Shire)

Summary Stakeholder Engagement

Summary of stakeholder and community engagement including:

·    Golf WA

·    Shire of Broome

·    Community Consultation:

Australia North West Tourism

Nyamba Buru Yawuru

Broome Chamber of Commerce and Industry

Habitat Resort Broome

Community Workshops

Community Surveys

Critical Assumptions

The BGC have detailed the critical assumptions used to base the business case on.

Economic and Financial Analysis

The BGC have carried out a detailed analysis of:

·    Broome Area Economic Profile:

Broome Tourism Sector

Broome Resources Sector

Broome Agriculture Sector

·    Project Economic and Financial Analysis

·    Club Operations Case Study Overview

·    Golf Professional Arrangements Case Study Overview

Socio-Economic Benefits

The BCG have identified and outlined the socio-economic benefits of the re-development including:

·    Tourism Sector Development

·    Indigenous Engagement and Employment Opportunities

·    Health and Productivity

·    Environmental Sustainability

·    Short Term Economic Opportunities

Whole of Life Model & Sustainability

The BGC have displayed a good understanding of the lifecycle costs of the facility including the costs of renewal of building components across all building assets.

Governance arrangements

The BGC have proposed a Governance and Management Structure based on extensive research across the state where similar projects have been successful.

Funding Strategy and Total Budget

Provides a high-level strategy for funding. The funding strategy has been defined in more detail in a separate funding strategy report (discussed later in this report).

Project and Key Milestones

Provides a time line of key milestones from conception to the proposed start date for construction.

Risk Analysis

The BGC have clearly identified a number of risk points across the project and mitigation strategies / contingencies for each point.

Indigenous Participation

The BGC demonstrated how they have engaged with local Native Title Holders in addition to exploring Aboriginal engagement and employment opportunities.

Implementation Strategy Guide

The BGC have outlined in detail a:

·    Communication Plan

·    Project Management

·    Project Governance

·    Procurement Strategy

Facility Re-development building analysis

This section defines:

·    Land Particulars

·    Description of Site

·    Roads and Access

·    Existing Building Condition and Analysis

·    Existing Building – Current BCA Compliance Issues

 

The figures based in the business case rely on historical data and conservative assumptions in rises of memberships and food and beverage sales. Both scenarios reflect a significant surplus, however it relies on the successful completion and operation of all three pods. Given the complexities of the funding strategy and reliance of grants, the outcome may vary to a staged completion of the facility. Whilst the BGC have met the requirements of clause 16.2 (c) of the lease, further financial analysis should be carried out to identify the financial viability should only one pod be constructed initially, then two, then all three.

 

 

 

Funding Strategy

 

The funding strategy has been presented as a second document – see Attachment 3. A summary of the key points is outlined in the table below:

 

Heading

Description

Project Funding Options

·    Explores and identifies all grant funding opportunities

·    Explores commercial loan options and viability

·    Local Government loan options

·    Crowd funding options

·    Fundraising and fundraising strategy development

Grant Readiness

·    Department of Sport and Recreation

·    AusIndustry

·    Lotterywest

Funding Timelines

Identifies the timing for applying for specific grants and discusses the issues around the non-concurrent way in which different funding bodies operate their funding process i.e. the CSRFF grant does not open until around the time the BBRF grants are announced.

Club Income

Considers options for the club to maximise and expand its revenue streams.

Stakeholder engagement

Identifies the importance of managing and strengthening relationships with key stakeholders.

Risk Profile

Defines the risks posed to the organisation and makes recommendations to mitigate / manage the risk

Funding Approach

Identifies what grants can be utilised for different parts of the development.

 

The funding strategy submitted by the BGC will provide a platform to apply for funding and relevant grants, however it should be noted that a number of assumptions have been made that could impact the successful completion of the project. The BGC are seeking up to $5 million dollars of funding from grants and other sources. Albeit the BGC have outlined a strategy to apply for these grants, there are some doubts of the likelihood of being able to independently achieve the full $5 million dollars required to complete the build.

 

It is noted clause 16.2 (b) of the existing lease agreement required Development of a funding strategy for construction of the new clubhouse. This would also need to include demonstrating attempting to secure funding or approaching financial institutions to secure loan facilities’.

 

Whilst the condition of the lease has been met, significant work is required from the BGC to be successful in securing grants and funding from other sources.

 

Lease and License

 

The current lease over the fore-mentioned reserves is currently structured as follows:

 

Broome Golf Club Inc has a lease over Reserve 29300 (Golf Course) and Reserve 33592 (Golf Clubhouse). In addition to this there is a license agreement between the BGC and Serenbar Pty Ltd, who operate / manage the pro shop and clubhouse.

 

On the 18 October 2017, the BGC wrote to the Shire requesting to surrender the existing 21 year lease agreement / license and enter into a new twenty-one-year lease.

 

Through the BGC’s funding strategy it was identified they would require the maximum term lease in order to achieve their funding outcomes and meet their loan commitments.

 

Given the BGC are at the preliminary stages of the development and have eleven years remaining on the existing lease it is recommended the Shire consider structuring the lease renewal as follows:

 

a)  Leave the existing lease on foot for the time being.

b)  The Shire and the BGC enter into a separate ‘Agreement for Further Lease’ or similar with the BGC. Herbert Smith Freehills have provided an advice on how this document could be structured – see Attachment 7.

 

The benefit of an agreement of this nature is the protection it offers the Shire should the BGC be unable to secure funding or complete the development. In addition, it will offer the BGC maximum tenure from the date of completion of construction i.e. if a 21 year lease was to commence immediately and the project took 3 to 4 years to complete this would have an impact on the term of the loan and the BGC would lose 3 to 4 years prior to completion.

  

Request for Self Supporting Loan (SSL) / Treasury Loan

 

Self-supporting loans are loans taken out by the Shire on behalf of community based organisations whom undertake to meet the capital, interest and loan guarantee payments.

 

Community based organisations occupying land or buildings owned by or vested in the Shire, in accordance with a management licence or lease, may make application for self supporting loans where the funds are to be used for capital improvements to the land or buildings they occupy.

 

As part of the BGC’s funding strategy, they have written to the Shire of Broome requesting a self-supporting loan of $1.5 million for a term of 21 years (principal and interest). The loan is specifically for the purpose of the re-development of the Broome Golf Club, which represents 23% of the total project costs.

 

The BGC have provided forecast operating budgets as part of their business case which reflect the above loan structure and payments. A summary of the financials is listed below showing two different operating models:

(d)    Function Centre / Restaurant Leased and a $1.5million Self Supporting Loan based on an interest rate of 4.5%

Description

Amount

Total Operating Revenue

$1,405,402.00

Total Operating Expenses

-$1,153,534.00

Operating Loss / Surplus

$251,886.00

Loan Repayment ($1.5m SSL P&I over 21 years)

-$110,544.00

Net Surplus / Loss

$141,342.00

 

(e)    Function Centre / Restaurant Retained and a 1.5million Self Supporting Loan based on an interest rate of 4.5%

Description

Amount

Total Operating Revenue

$1,960,420.00

Total Operating Expenses

-$1,583,534.00

Operating Loss / Surplus

$376.886.00

Loan Repayment ($1.5m SSL P&I over 21 years)

$110,544.00

Net Surplus / Loss

$266,342.00

 

Officers recommend the Chief Executive Officer engage with the BGC to gather relevant financials and data to assess the eligibility in securing a self-supporting loan on the requested terms.

 

The Golf Course

 

With the funds generated from the new facility, BGC intends to continue with the development of the course to become a major tourism attraction to Broome.

 

The first two projects identified for the next five years include:

 

·    Full upgrade of the irrigation system. The cost estimate for this is approximately $1.5 million. This is essential to underpin any further development of fairways, greens and tees.

·    Upgrade tees across all holes.

·    Formalise the driving range for public and members.

·    Upon decreasing the loan future funds can be used to continue the development of the course.

 

 

CONSULTATION

 

Broome Golf Club

Naja Business Consulting Services

Herbert Smith Freehills

 

STATUTORY ENVIRONMENT

 

Local Government (Functions and General Regulations) 1996

 

30.        Dispositions of property to which section 3.58 of Act does not apply

(1)         A disposition that is described in this regulation as an exempt disposition is excluded from the application of section 3.58 of the Act.

(2)         A disposition of land is an exempt disposition if — 

(a)   the land is disposed of to an owner of adjoining land (in this paragraph called the transferee) and — 

(i)   its market value is less than $5 000; and

(ii)  the local government does not consider that ownership of the land would be of significant benefit to anyone other than the transferee;

(b)   the land is disposed of to a body, whether incorporated or not — 

(I)   the objects of which are of a charitable, benevolent, religious, cultural, educational, recreational, sporting or other like nature; and

(ii)  the members of which are not entitled or permitted to receive any pecuniary profit from the body’s transactions;

(c)   the land is disposed of to — 

(i)   the Crown in right of the State or the Commonwealth;

(ii)  a department, agency, or instrumentality of the Crown in right of the State or the Commonwealth; or

(iii) another local government or a regional local government;

(d)   it is the leasing of land to an employee of the local government for use as the employee’s residence;

(e)   it is the leasing of land for a period of less than 2 years during all or any of which time the lease does not give the lessee the exclusive use of the land;

(f)    it is the leasing of land to a “medical practitioner” (as defined in section 3 of the Medical Act 1894) to be used for carrying on his or her medical practice; or

(g)   it is the leasing of residential property to a person.

(2a)              A disposition of property is an exempt disposition if the property is disposed of within 6 months after it has been —

(a)   put out to the highest bidder at public auction, in accordance with section 3.58(2)(a) of the Act, but either no bid is made, or any bid made does not reach a reserve price fixed by the local government;

(b)   the subject of a public tender process called by the local government, in accordance with section 3.58(2)(b) of the Act, but either no tender is received, or any tender received is unacceptable; or

(c)   the subject of Statewide public notice under section 3.59(4), and if the business plan referred to in that notice described the property concerned and gave details of the proposed disposition including —

(i)   the names of all other parties concerned;

(ii)  the consideration to be received by the local government for the disposition; and

(iii)    the market value of the disposition as ascertained by a valuation carried out not more than 12 months before the proposed disposition.

(2b)      Details (see section 3.58(4) of the Act) of a disposition of property under sub regulation (2a) must be made available for public inspection for at least 12 months from the initial auction or tender, as the case requires.

(3)         A disposition of property other than land is an exempt disposition if — 

(a)   its market value is less than $20 000; or

(b)   it is disposed of as part of the consideration for other property that the local government is acquiring for a consideration the total value of which is not more, or worth more, than $50 000.

[Regulation 30 amended in Gazette 25 Feb 2000 p. 974‑5; 28 Apr 2000 p. 2041; 31 Mar 2005 p. 1055‑6.]

 

POLICY IMPLICATIONS

 

Nil

 

FINANCIAL IMPLICATIONS

 

The estimated costs to draft the Agreement for Further Lease is approximately $2,000.00. This is budgeted in account 144027.

 

 

RISK

 

The nature of the agreement mitigates the risk of the Shire of Broome being locked in a long-term agreement if the development does not come to fruition. In addition, if guarantees the maximum tenure to the lessee upon the successful completion of the project.

 

STRATEGIC IMPLICATIONS  

 

Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:

 

Affordable services and initiatives to satisfy community need

 

Accessible and safe community spaces

 

Participation in recreational and leisure activity

 

A healthy and safe environment

 

Our Place Goal – Help to protect the nature and built environment and cultural heritage of Broome whilst recognising the unique sense of the place:

 

Realistic and sustainable land use strategies for the Shire within state and national frameworks and in consultation with the community

 

A built environment that reflects arid tropical climate design principles and historical built form

 

A unique natural environment for the benefit and enjoyment of current and future generations

 

A preserved, unique and significant historical and cultural heritage of Broome

 

Retention and expansion of Broome’s iconic tourism assets and reputation

 

Core asset management to optimise Shire’s infrastructure whilst minimising life cycle costs.

 

Council is able to mobilise resources to deliver municipal service to indigenous communities that are compliant, effective and within Council’s capacity.

 

Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:

 

Affordable and equitable services and infrastructure

 

Affordable land for residential, industrial, commercial and community use

 

Key economic development strategies for the Shire which are aligned to regional outcomes working through recognised planning and development groups/committees

 

Our Organisation Goal – Continually enhance the Shire’s organisational capacity to service the needs of a growing community:

 

Responsible resource allocation

 

Effective community engagement

 

Improved systems, processes and compliance

 

 

VOTING REQUIREMENTS

Simple Majority

 

REPORT RECOMMENDATION:

That Council:  

1.       Acknowledge the Business Case and Funding Strategy submitted by the Broome Golf     Club and recognises that all milestones in clause 16 of their lease agreement have     been undertaken to Council’s satisfaction.

2.       Note the Broome Golf Club are at the preliminary stages of the development and      have eleven years remaining on the existing lease; therefore, structure the lease    renewal as follows:

a.    Leave the existing lease on foot for the time being.

b.   The Shire and the Broome Golf Club enter into a separate ‘Agreement for Further Lease’. The terms and conditions of this agreement be based on the advice from Herbert Smith Freehills as attached to this report.

3.       Authorises the Chief Executive Officer to negotiate and finalise an ‘Agreement for      Further Lease’ between the Shire of Broome and the Broome Golf Club.

4.       Authorises the Chief Executive Officer to engage with the Broome Golf Club. to gather relevant financials and data to assess the eligibility in securing a self-     supporting loan as per the requested terms outlined in this report.

 

 

 

Attachments

1.

Attachment 1 Leased Area

2.

Attachment 2 Business Case

3.

Attachment 3 Funding Strategy

4.

Attachment 4 Business Case Template

5.

Attachment 5 Opinion of Costs (Confidential to Councillors and Directors Only)

This attachment is confidential in accordance with Section 5.23(2) of the Local Government Act 1995 section 5.23(2)((e)(ii)) as it contains “a matter that if disclosed, would reveal information that has a commercial value to a person, where the information is held by, or is about, a person other than the local government”.

6.

Attachment 6 Golf Club Masterplan

7.

Attachment 7 Lease advice Freehills

  


Item 9.2.7 - LEASE DISPOSAL TO BROOME GOLF CLUB INC

 

 

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Item 9.2.7 - LEASE DISPOSAL TO BROOME GOLF CLUB INC

 

 

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AgendaOrdinary Meeting of Council 14 December 2017                                                                    Page 223 of 224

 

 

9.2.8      LEASE DISPOSAL: KIMBERLEY REGIONAL OFFICES, BUILDING 2, TENANCY 1,2 AND 3

LOCATION/ADDRESS:                             Kimberley Regional Offices, Corner of Frederick and Weld Street, Broome

APPLICANT:                                              Anglicare WA Inc.

FILE:                                                           LSS132, RES8656

AUTHOR:                                                   Property and Leasing Senior Officer

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Infrastructure

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    30 November 2017

 

SUMMARY:         This report seeks Councils consideration to renew the lease to Anglicare WA Inc. at Kimberley Regional Offices (KRO) building 2, tenancy 1, 2 and 3. for a three-year, fixed term.

 

 

BACKGROUND

 

Previous Considerations

 

Kimberley Regional Offices (KRO) is on a Portion of Reserve 8656 and a portion of freehold land (Lot 31 on Plan P222186) owned by the Shire (corner of Frederick and Weld Street, Broome). It comprises two buildings (KRO1 and KRO2). Reserve 8656 is vested to the Shire of Broome for the purpose of ‘Office Accommodation’. The Shire of Broome has the power to lease out any portion of the Reserve, subject to the approval in writing of the Minister of Lands to each and every lease or assignment, for any term not exceeding twenty-one (21) years from the date of the lease.

 

(Refer attachment 1)

 

KRO 2 is broken up into seven tenancies as outlined below:

 

Tenancy

Occupant

Size (Sqm)

Tenancy 1

Vacant (EOI from Anglicare)

134.86

Tenancy 2

Anglicare

213.89

Tenancy 3

Anglicare

254.24

Tenancy 4

Minister for Works

331.87

Tenancy 5

Far North Community Services

122.24

Tenancy 6

Far North Community Services

68.9

Tenancy 7

Far North Community Services

45.86

 

Anglicare WA commenced a lease with the Shire of Broome on the 25 August 2008, occupying tenancy 2 and 3 within building 2. The current lease expired on the 24 August 2017. The lease has been in a ‘holding over’ period as per clause 3.4 of the lease agreement.

 

On the 24 November 2017 Anglicare wrote to the Shire of Broome requesting a new three (3) year lease, for tenancy 2, 3 and 1 - taking on an additional 134sqm, the new total area being 602.99sqm from the 1 February 2018.

 

COMMENT

 

Under Regulation 30(2)(b) Local Government (Functions and General Regulations) 1996, the lease disposal to Anglicare WA is exempt from Section 3.58 of the Local Government Act 1995 as they are a not-for-profit community organisation.

 

Anglicare WA is a not-for-profit community service organisation who support people and families experiencing challenges with relationships, financial problems and housing difficulties.

 

Anglicare WA employs 25 staff in Broome and 40 in the broader Kimberley. Anglicare have recently been successful in tendering for two additional service contracts which has been the catalyst for their additional office accommodation requirements.

 

Proposed Lease Terms

 

It is recommended the terms and conditions of the new lease reflect and are in line with the following:

 

a)  Annual rent as per market valuation, capped at $285 per sqm per annum. Apply annual CPI rental increases (Perth All Groups, December quarter); Note: as rent is set a market valuation there is no need to implement an additional market review with a three-year period

 

b)  Lease term - Fixed term of three years from 1 February 2018 to 31 January 2021.

 

c)  Permitted use is for ‘Office Accommodation’;

 

d)  Lease to be prepared by Council’s solicitor with the tenant to be responsible for all associated legal costs, including preparation and registration of lease documentation;

e) The landlord shall be provided with the expressed right to undertake preventative maintenance at the cost of the tenant throughout the term, calculated via variable outgoings. Current preventative maintenance shall include:

                            (i) Pest inspection.

             (ii) Emergency service equipment inspection.

             (iii) RCD and electrical inspection.

             (iv) Security Patrols.

             (v) Cleaning of common areas.

 

f)    Utilities service and consumption charges including telephone, electricity, gas and water, covered by tenant as part of the variable outgoings.

 

g)  Building Insurance to be affected by the landlord at the cost of the tenants. All other insurances to be affected by the tenant, at the tenants cost.

 

Market Conditions and Valuation:

 

Opteon Property Group were appointed to carry out the market valuation in November 2017. As part of their report they have made the following comments in relation to the current market conditions and local economy:

“The town of Broome is dependent upon the success of the main local industries being tourism, pearling, mining & resources, government services and agriculture.  As with most regional towns, Broome has the potential to be affected by price fluctuations in keeping with the success or otherwise of key industries. Broome does however have a relatively diverse industry base in comparison to some other North-West towns which are heavily reliant on mining industry.

Over the past decade the town’s economy has expanded and diversified in particular with regard to the resources industry. The proposed development of the Browse Basin (oil and gas fields) and the associated land based industrial hub 60 km north of Broome was seen as a major new project which would support the main established industries of tourism, pearling, agriculture and government services. The market has softened since April 2013 when Woodside shelved its major onshore oil and gas processing plant in favour of floating LNG processing technology. It was hoped an announcement by Woodside to proceed with a proposed floating LNG project off the Kimberley coast would give the local economy a much-needed boost, however as of March 2016 Woodside has shelved plans for such development given the global market place for oil and gas.

The above announcements in conjunction with similar announcements from smaller companies in the oil and gas industry has impacted significantly upon local industry with not only decreases in mining and gas employment but also significantly in the logistics services and construction industry with a number of organisations laying off staff in recent times. However, there has been a significant increase in helicopter transfers through the Broome International Airport in recent times as hook-up and commissioning phase of the Shell Prelude project and Inpex Icthy’s LNG project is underway. This has had a positive impact on the local economy, however the current volume of transfers is only expected to last for 12 months.

In addition, the slow tourism industry over the last 5 years has seen a lowering in overall occupancy rates for tourist accommodation complexes within Broome, which as a result has impacted on the retail sector. This is mainly due to factors such as the strong Australian dollar (however this has dropped in recent times) and cheap overseas holiday packages, particularly to Bali and other South East Asian destinations. The tourist market within Broome is seasonal with high season months June, July and August remaining strong however tourist visitors and hence occupancy rates have been decreasing over the shoulder months April, May, September and October. This is detrimental to overall yearly profitability because the low season/wet season months November through to March are expected to have low occupancy. The recent fall in the Australian Dollar has seen a slight rebound in the tourism sector, with some tourist operations reporting 2016 being slightly up on 2015 figures. However, recent conversations with a number of operators indicate that 2017 is proving mixed fortunes between operators.
Office rents are currently subdued with sitting tenants in most instances looking to renegotiate reductions in option periods. As for new leasing activity, the market has weakened overall and although no official vacancy rates are kept by leasing agents, we note an oversupply is available at present within the marketplace. Discussions with a number of commercial property agents around town have revealed that there is limited enquiry/take up of office space within the market place at present with landlords trying to hold onto their existing tenants when lease terms conclude”.

The rental valuation is reflected in the attached report

(Refer Attachment 2)

 

CONSULTATION

 

Opteon Property Consultants

Anglicare WA

 

STATUTORY ENVIRONMENT

 

Local Government (Functions and General) Regulations 1996

30.        Dispositions of property to which section 3.58 of Act does not apply

(1)     A disposition that is described in this regulation as an exempt disposition is excluded from the application of section 3.58 of the Act.

(2)     A disposition of land is an exempt disposition if — 

(a) the land is disposed of to an owner of adjoining land (in this paragraph called “the transferee”) and — 

(i)   its market value is less than $5 000; and

(ii)  the local government does not consider that ownership of the land would be of significant benefit to anyone other than the transferee;

(b) the land is disposed of to a body, whether incorporated or not — 

(i)   the objects of which are of a charitable, benevolent, religious, cultural, educational, recreational, sporting or other like nature; and

(ii)  the members of which are not entitled or permitted to receive any pecuniary profit from the body’s transactions;

(c) the land is disposed of to — 

(i)   the Crown in right of the State or the Commonwealth;

(ii)  a department, agency, or instrumentality of the Crown in right of the State or the Commonwealth; or

(iii) another local government or a regional local government;

(d) it is the leasing of land to an employee of the local government for use as the employee’s residence;

(e) it is the leasing of land for a period of less than 2 years during all or any of which time the lease does not give the lessee the exclusive use of the land;

(f)  it is the leasing of land to a “medical practitioner” (as defined in section 3 of the Medical Act 1894) to be used for carrying on his or her medical practice; or

(g) it is the leasing of residential property to a person.

(2a)  A disposition of property is an exempt disposition if the property is disposed of within 6 months after it has been —

(a) put out to the highest bidder at public auction, in accordance with section 3.58(2)(a) of the Act, but either no bid is made, or any bid made does not reach a reserve price fixed by the local government;

(b) the subject of a public tender process called by the local government, in accordance with section 3.58(2)(b) of the Act, but either no tender is received, or any tender received is unacceptable; or

(c) the subject of Statewide public notice under section 3.59(4), and if the business plan referred to in that notice described the property concerned and gave details of the proposed disposition including —

(i)   the names of all other parties concerned;

(ii)  the consideration to be received by the local government for the disposition; and

(iii) the market value of the disposition as ascertained by a valuation carried out not more than 12 months before the proposed disposition.

(2b)  Details (see section 3.58(4) of the Act) of a disposition of property under sub regulation (2a) must be made available for public inspection for at least 12 months from the initial auction or tender, as the case requires.

(3)     A disposition of property other than land is an exempt disposition if — 

(a) its market value is less than $20 000; or

(b) it is disposed of as part of the consideration for other property that the local government is acquiring for a consideration the total value of which is not more, or worth more, than $50 000.

               [Regulation 30 amended in Gazette 25 Feb 2000 p. 974‑5; 28 Apr 2000 p. 2041; 31 Mar 2005 p. 1055‑6.]

 

POLICY IMPLICATIONS

 

Nil

 

FINANCIAL IMPLICATIONS

 

Description

Expenses

Income

Net Annual Rent*

 

$162,807.30

Outgoings

$117,583.05

$117,583.05

Lease Fees

$2,500.00

$2,500.00

Total

$120,083.05

$282,890.35

Net Position to The Shire

 

+ $162,807.30

 

*Based on $270psqm per annum

 

RISK

 

Should the Shire not proceed with the lease they would loose rental income and would have to the absorb the outgoings of a vacant tenancy.

 

Proceeding with the lease represents a low risk as they have proven to be reliable tenants of the Shire of Broome since 2008.

 

STRATEGIC IMPLICATIONS  

 

Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:

 

Affordable services and initiatives to satisfy community need

 

Accessible and safe community spaces

 

A healthy and safe environment

 

Our Place Goal – Help to protect the nature and built environment and cultural heritage of Broome whilst recognising the unique sense of the place:

 

Realistic and sustainable land use strategies for the Shire within state and national frameworks and in consultation with the community

 

Core asset management to optimise Shire’s infrastructure whilst minimising life cycle costs.

 

Council is able to mobilise resources to deliver municipal service to indigenous communities that are compliant, effective and within Council’s capacity.

 

Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:

 

Affordable and equitable services and infrastructure

 

Affordable land for residential, industrial, commercial and community use

 

Key economic development strategies for the Shire which are aligned to regional outcomes working through recognised planning and development groups/committees

 

Our Organisation Goal – Continually enhance the Shire’s organisational capacity to service the needs of a growing community:

 

Responsible resource allocation

 

 

VOTING REQUIREMENTS

Simple Majority

 

REPORT RECOMMENDATION:

That Council:

1.       Accepts, in accordance with Local Government (Functions and General) Regulations 1996, Regulation 30(2)(b)(i) the request from Anglicare WA to occupy office space of approximately 543 square metres, being tenancy 1, 2 and 3 in the Kimberley Regional Offices, building 2;

2.       Seeks Ministerial approval from the Minister of Lands for the lease in accordance with section 18 of the Land Administration Act 1997

3.       Authorises the Chief Executive Officer to negotiate the final terms and conditions of the lease agreement as follows:

 

a)  Annual rent between $250 to $280 per sqm, per annum. Apply annual CPI rental increases (Perth All Groups, June quarter);

 

b)  Lease term - Fixed term of three years from 1 February 2018 to 31 January 2021

 

c)  Permitted use is for ‘Office Accommodation’;

 

d)  Lease to be prepared by Council’s solicitor with the tenant to be responsible for all associated legal costs, including preparation and registration of lease documentation;

 

e)  The landlord shall be provided with the expressed right to undertake preventative maintenance at the cost of the tenant throughout the term. Current preventative maintenance shall include:

(i)         Pest inspection;

(ii)        Emergency service equipment inspection; and

(iii)       RCD and electrical inspection.

(iv)       Security Patrols.

(v)       Cleaning of common areas.

 

f)    Utilities service and consumption charges including telephone, electricity, gas and water, covered by tenant;

 

g)  Building Insurance to be affected by the landlord at the cost of the tenants, all other insurances to be affected by the tenant, at the tenants cost.

 

 

 

Attachments

1.

Attachment 1 Site Plan

2.

Attachment 2 Valuation Report (Confidential to Councillors and Directors Only)

This attachment is confidential in accordance with Section 5.23(2) of the Local Government Act 1995 section 5.23(2)((e)(ii)) as it contains “a matter that if disclosed, would reveal information that has a commercial value to a person, where the information is held by, or is about, a person other than the local government”.

  


Item 9.2.8 - LEASE DISPOSAL: KIMBERLEY REGIONAL OFFICES, BUILDING 2, TENANCY 1,2 AND 3

 

 


AgendaOrdinary Meeting of Council 14 December 2017                                                                 Page 231 of 232

 

 

9.2.9      PROPOSED AMENDMENT OF THE PARKING AND PARKING FACILITIES LOCAL LAW 2012

LOCATION/ADDRESS:                             Nil

APPLICANT:                                              Nil

FILE:                                                           BYL11

AUTHOR:                                                   Manager Emergency, Health and Ranger Services

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Development and Community

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    5 December 2017

 

SUMMARY:         The Joint Standing Committee on Delegated Legislation (Committee) has identified drafting issues in relation to the Parking and Parking Facilities Amendment Local Law 2017 (Amendment Local Law 1).  Due to an error in the process followed, the Committee has also disallowed the Parking and Parking Facilities Amendment Local Law (2) 2017 (Amendment Local Law 2). To rectify the issues identified with Amendment Local Law 1, the Committee has requested the Shire of Broome resolve to undertake to amend the existing Parking and Parking Facilities Local Law 2012 to incorporate the changes. As part of these changes, the provision in the disallowed Local Law will be incorporated. It is proposed that these changes be implemented through the Shire of Broome Parking and Parking Facilities Amendment Local Law 2018.

The purpose of this report is for the presiding person to give notice to the meeting of the purpose and effect of the proposed Shire of Broome Parking and Parking Facilities Amendment Local Law 2018, and to allow for the advertising of the proposed local law for comment. Council is also required to provide undertakings to the Committee in relation to the rectification of the drafting issues in Amendment Local Law 1.

 

 

BACKGROUND

 

Previous Considerations

 

OMC 30 March 2017                         Item 9.2.4

OMC 27 April 2017                             Item 9.2.2

OMC 27 July 2017                              Item 9.2.5

OMC 7 September 2017                   Item 9.2.2

 

At the 30 March 2017 Ordinary Meeting of Council (OMC) Council resolved to begin the process to make the Parking and Parking Facilities Amendment Local Law 2017 (Amendment Local Law 1). The purpose of the Amendment Local Law 1 was to make the following amendments to the Parking and Parking Facilities Local Law 2012 (existing Local Law):

 

·   Use of explanatory diagrams relating to parking that are contained within the Road Traffic Code 2000, to assist motorists in understanding key provisions of the existing Local Law.

 

·    Recommended changes to section 1.6 of the existing Local Law to allow Council to enter into written agreements with private parking facilities, allowing the existing Local Law to apply to such facilities. 

 

·    Some minor formatting changes.

 

·    The addition of some definitions to add clarity to the existing Local Law and improve consistency with other local laws.

 

·    Throughout the document shall was been replaced with must as per current legislative drafting convention and reserves was replaced with local government property

 

At the 30 March 2017 OMC a petition was presented to Council on behalf of Mr Cameron Howlett raising concerns in relation to an enforcement initiative undertaken by the Shire to enforce the provisions of the existing Local Law in relation to the parking on verges in industrial estates.

 

As a result of the petition and a review of road widths in Broome’s industrial estates by the Shire’s Engineering staff, a second amendment local law (Amendment Local Law 2) was presented for Council’s consideration at the 27 April 2017 OMC.  The only change that the Amendment Local Law 2 proposed was to include an exemption from the general prohibition on parking on verges for industrial estates in Broome (currently the exemption only applies to residential zoned properties).  

 

The Local Government Act 1995 (Act) stipulates a clear process for the development of local laws. Requirements mandate that local governments provide copies of a proposed local law to the Minister responsible for the Act during the public submission period. In addition, all local laws must be approved by the Joint Standing Committee on Delegated Legislation (Committee).

 

Both Amendment Local Laws were progressed in accordance with the Act, except for Amendment Local Law 2, which due to an administrative error was not provided to the Minister for consideration during the public submission period as required.  This did not come to officers’ attention until just prior to gazettal of the Amendment Local Law, and following discussions with officers from the Department of Local Government and Communities (DLGC), it was decided to allow the Amendment Local Law to proceed through the final steps in the process on the basis of section 3.12(2A) of the Act which states that:

 

Despite subsection (1)[1], a failure to follow the procedure described in this section does not invalidate a local law if there has been substantial compliance with the procedure.

 

On 27 July 2017 (Amendment Local Law 1) and 7 September 2017 (Amendment Local Law 2), Council resolved to make the Local Laws and publish them in the Government Gazette.  The Amendment Local Laws were then considered by the Committee at its meeting on 27 November 2017.

 

The Shire of Broome subsequently received correspondence from the Committee on 29 November 2017 in relation to the Amendment Local Laws (see Attachments 1 and 2). 

 

The Committee has concerns in relation to the drafting and wording of certain clauses contained within Amendment Local Law 1. As a result, the Committee has sought an undertaking from Council that changes would be made to affected clauses and that some clauses would not be enforced until these changes have been made.

 

In addition, the Committee decided that section 3.12(2A) of the Act could not be invoked in relation to the failure to provide Amendment Local Law 2 to the Minister for consideration during the public submission period. As a result, the Committee disallowed Amendment Local Law 2.

 

COMMENT

 

The Committee is requiring that changes be made to amendments introduced to the existing Local Law through the Amendment Local Law 1.  In addition, to progress the changes to the existing Local Law included in Amendment Local Law 2, the amendment process will need to re-commence from the beginning.  Officers consider that the proposed changes to the existing Local Law in both Amendment Local Laws are still required and necessary to facilitate the proper implementation of the existing Local Law. It is therefore recommended that a new Parking and Parking Facilities Amendment Local Law 2018 be made by Council that will include all proposed changes required by the Committee and also the amendment in the Amendment Local Law 2.

 

A copy of the proposed Shire of Broome Parking and Parking Facilities Amendment Local Law 2018 (new Local Law) is shown as Attachment 3. A copy the existing Local Law with the amendments from the new Local Law included as tracked changes is shown as Attachment 4.

 

Purpose and effect of the new Local Law

 

Purpose:

 

The purpose of the Parking and Parking Facilities Amendment Local Law 2018 is to:

·     Facilitate the enforcement of the parking in the region by clarifying the interpretation of the local law;

·     Remove the restriction on parking on verges in the industry and light and service industry zones; and

·     Modernise the provisions of the local law.

 

Effect:

 

The effect is to provide for the better management of parking so as to benefit all motorists and pedestrians within Broome.

 

 

Undertaking requested by Committee

 

In its letter dated 29 November 2017, the Committee requested the Shire provide an undertaking to resolve the issues raised within the letter regarding Amendment Local Law 1. The Committee requested that Council resolve to give this undertaking at the next available OMC (December 2017) and the undertaking subsequently be provided to the Committee by 5 January 2018.

 

The undertaking is requested to include:

 

1.       When the Principal Local Law is next reviewed, the Shire will:

(a) Amend clause 5.2 by replacing the word “shall”, which appears twice, with the word ‘must’.

(b) Delete clause 2.5 and replace it with the following paragraph:

 

A person must not remove a vehicle which has been parked in a parking facility until the appropriate fee has been paid for the period for which the vehicle has been parked.

 

(c) Amend clause 3.5(3)(g) by deleting “single or” from the notation in the diagram.

(d) Make all necessary consequential amendments to the Principal Local Law.

 

2.       within six months the Shire will delete clause 6.12(2) of the Principal Local Law and replace it with the following paragraph:

 

Nothing in this clause affects or overrides the limitations or conditions imposed by any other clause in this local law, or by any other local law or traffic sign relating to the parking or stopping of vehicles.

 

3.       Until the Principal Local Law is amended in accordance with undertakings 1 and 2, the Shire will:

 

(a) Not enforce the Principal Local Law in manner contrary to undertakings 1 and 2.

(b) Where the Local Law is made publicly available, whether in a hard copy or electronic form (including on the Shire’s website), ensure that it is accompanied by a copy of these undertakings.

 

It is requested that the undertakings should be provided to the Committee in a letter signed by the Shire President and not the Chief Executive Officer or other officer of the Shire. This is because, pursuant to section 2.8(1)(d) of the Act, the “mayor or President speaks on behalf of the local government” to the Parliament of Western Australia. 

 

Summary

 

Based on the letters from the Committee and to enable the proposed amendments to progress, it is recommended that Council propose to make the new Local Law and provide the undertakings requested by the Committee.

 

CONSULTATION

 

The new Local Law must be advertised in accordance with section 3.12(3) of the Local Government Act 1995 for public comment for a period of 42 days. A copy of the new Local Law will be provided to the DLGC for comment.

 

STATUTORY ENVIRONMENT

 

The Local Government Act 1995 provides the head of power for local governments to make local laws.

 

The process for the making of local laws is prescribed in section 3.12 of the Local Government Act 1995.  This section states:

 

3.12.  Procedure for making local laws

      (1)     In making a local law a local government is to follow the procedure described in this section, in the sequence in which it is described.

     (2A)   Despite subsection (1), a failure to follow the procedure described in this section does not invalidate a local law if there has been substantial compliance with the procedure.

 

      (2)     At a council meeting the person presiding is to give notice to the meeting of the purpose and effect of the proposed local law in the prescribed manner.

      (3)     The local government is to — 

                 (a)     give Statewide public notice stating that — 

                               (i)     the local government proposes to make a local law the purpose and effect of which is summarized in the notice; and

                              (ii)     a copy of the proposed local law may be inspected or obtained at any place specified in the notice; and

                             (iii)     submissions about the proposed local law may be made to the local government before a day to be specified in the notice, being a day that is not less than 6 weeks after the notice is given;

                           and

                 (b)     as soon as the notice is given, give a copy of the proposed local law and a copy of the notice to the Minister and, if another Minister administers the Act under which the local law is proposed to be made, to that other Minister; and

                 (c)     provide a copy of the proposed local law, in accordance with the notice, to any person requesting it.

(3a)   A notice under subsection (3) is also to be published and exhibited as if it were a local public notice.

      (4)     After the last day for submissions, the local government is to consider any submissions made and may make the local law* as proposed or make a local law* that is not significantly different from what was proposed.

          * Absolute majority required.

      (5)     After making the local law, the local government is to publish it in the Gazette and give a copy of it to the Minister and, if another Minister administers the Act under which the local law is proposed to be made, to that other Minister.

      (6)     After the local law has been published in the Gazette the local government is to give local public notice — 

                 (a)     stating the title of the local law; and

                 (b)     summarizing the purpose and effect of the local law (specifying the day on which it comes into operation); and

                 (c)     advising that copies of the local law may be inspected or obtained from the local government’s office.

      (7)     The Minister may give directions to local governments requiring them to provide to the Parliament copies of local laws they have made and any explanatory or other material relating to them.

      (8)     In this section —

               making in relation to a local law, includes making a local law to amend the text of, or repeal, a local law.

 

After the last day for submissions, the local government is to consider any submissions made, and may make the local law as proposed or make a local law that is not significantly different from what was proposed.

 

The local law is then published in the Government Gazette and a copy sent to the relevant Minister and the State Parliament Joint Standing Committee on Delegated Legislation.

 

POLICY IMPLICATIONS

 

Nil

 

FINANCIAL IMPLICATIONS

 

In accordance with section 3.25 of the Local Government Act 1995, if Council resolves to make this new Local Law, it will be necessary to advertise in a newspaper circulating throughout the district and publish the text in the Government Gazette. The current charge is $101.45 per page. The draft amended local law is 27 pages long. This equates to a gazettal fee of approximately $2739.15.

 

Advertising in newspapers is at a cost of approximately $300. Three advertisements are required at a total cost of $900. The combined total cost of advertising and gazetting is $3639.15 however this may vary slightly due to changes in charges and fees beyond the Shire’s control.

 

RISK

 

If the existing Local Law is not amended, Shire Officers will continue to be at risk of not being able to adequately enforce the provisions of the Local Law. The risk of this occurring if the amendment is not undertaken is considered Low, however modernisation and clarity needs to be added to ensure the law remains relevant and serves to achieve its purpose and effect. 

 

There is a risk that the new Local Law will not be valid if it is not properly drafted.  The risk of this occurring is considered Moderate.  The risk of the incorrect drafting of this Local Law is mitigated through submission of the approved draft to the DLGC and subsequent review of the Joint Standing Committee on Delegated Legislation.

 

Should Council resolve not to provide the undertakings to the Committee the Shire of Broome Parking and Parking Facilities Amendment Local Law 2017 may be repealed by the Governor.

 

STRATEGIC IMPLICATIONS  

 

Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:

 

Accessible and safe community spaces

 

A healthy and safe environment

 

Our Place Goal – Help to protect the nature and built environment and cultural heritage of Broome whilst recognising the unique sense of the place:

 

Realistic and sustainable land use strategies for the Shire within state and national frameworks and in consultation with the community

 

Our Organisation Goal – Continually enhance the Shire’s organisational capacity to service the needs of a growing community:

 

Improved systems, processes and compliance

 

 

VOTING REQUIREMENTS

Simple Majority

 

REPORT RECOMMENDATION:

That Council:  

 

1.       Resolves to undertake to the Joint Standing Committee on Delegated Legislation that:

 

(a)     When the Shire of Broome Parking and Parking Facilities Local Law 2012 is next reviewed, the Shire will:

 

(i)    Amend clause 5.2 by replacing the word “shall”, which appears twice, with the word ‘must’.

 

(ii)   Delete clause 2.5 and replace it with the following paragraph:

 

A person must not remove a vehicle which has been parked in a parking facility until the appropriate fee has been paid for the period for which the vehicle has been parked.

 

(iii)  Amend clause 3.5(3)(g) by deleting “single or” from the notation in the diagram.

 

(iv)  Make all necessary consequential amendments to the Principal Local Law.

 

(b)     within six months the Shire will delete clause 6.12(2) of the Principal Local Law and replace it with the following paragraph:

 

Nothing in this clause affects or overrides the limitations or conditions imposed by any other clause in this local law, or by any other local law or traffic sign relating to the parking or stopping of vehicles.

 

(c)     until the Principal Local Law is amended in accordance with undertakings (a) and (b), the Shire will:

 

(i)    not enforce the Principal Local Law in manner contrary to undertakings (a) and (b); and

 

(ii)   where the Local Law is made publicly available, whether in a hard copy or electronic form (including on the Shire’s website), ensure that it is accompanied by a copy of these undertakings.

 

2.       Proposes to make the Shire of Broome Parking and Parking Facilities Amendment Local Law 2018 as shown in Attachment 3;

 

3.       Advertises, in accordance with section 3.12(3)(a) of the Local Government Act 1995, the proposed Shire of Broome Parking and Parking Facilities Amendment Local Law 2018 for a period of not less than six (6) weeks; and

 

4.       In accordance with section 3.12(3)(b) of the Local Government Act 1995, forwards a copy of the advertisement and proposed Shire of Broome Parking and Parking Facilities Amendment Local Law 2018 to the Minister for Local Government.

 

 

Attachments

1.

Letter from Joint Standing Committee on Delegated Legislation regarding Amendment Local Law 1 (Confidential to Councillors and Directors Only)

This attachment is confidential in accordance with Section 5.23(2) of the Local Government Act 1995 section 5.23(2)(h) as it contains “such other matters as may be prescribed”.

2.

Letter from Joint Standing Committee on Delegated Legislation regarding Amendment Local Law 2 (Confidential to Councillors and Directors Only)

This attachment is confidential in accordance with Section 5.23(2) of the Local Government Act 1995 section 5.23(2)(h) as it contains “such other matters as may be prescribed”.

3.

Shire of Broome Parking and Parking Facilities Amendment Local Law 2018

4.

Parking and Parking Facilities Local Law 2012 - with track changes

  


LOCAL GOVERNMENT ACT 1995

 

Shire of Broome

 

PARKING AND PARKING FACILITIES AMENDMENT LOCAL LAW 2018

 

Under the powers conferred by the Local Government Act 1995, and under all other powers enabling it, the Council of the Shire of Broome resolved on INSERT DATE to make the following local law.

 

1.      Citation

This local law is the Shire of Broome Parking and Parking Facilities Amendment Local Law 2018.

 

 

2.      Commencement

This local law comes into operation 14 days after the date of its publication in the Government Gazette.

 

 

3.      Principal local law amended

This local law amends the Shire of Broome Parking and Parking Facilities Local Law 2012 published in the Government Gazette on 31 July 2012 and as amended and published in the Government Gazette on 19 September 2017.

 

 

4.      Clause 2.5 amended

Delete the text in Clause 2.5 and insert:

 

A person must not remove a vehicle which has been parked in a parking facility until the appropriate fee has been paid for the period which the vehicle has been parked.”

 

 

5.         Clause 3.5 amended

Replace the diagram in clause 3.5(3)(g) with the following diagram:

 

 

 

6.         Clause 3.5 amended

Delete the text in clause 3.5(8) and insert:

 

Subclause (7) does not apply to a verge adjacent to premises zoned ‘industry’, ‘light and service industry’ or ‘residential’ under the Local Planning Scheme if the person is the owner or occupier of the premises adjacent to that portion of the verge, or is a person authorized by the occupier to park on that portion of the verge.”

 

 

7. Clause 5.2 amended

In clause 5.2 delete the words “shall” and replace with the words “must”.

 

 

8.  Clause 6.12 amended

Delete the text in clause 6.12(2) and insert:

 

“Nothing in this clause affects or overrides the limitations or conditions imposed by any other clause in this local law, or by any other local law or traffic sign relating to the parking or stopping of vehicles.”

 

 

 

 

 

 

Dated    

 

 

The Common Seal of the             )

Shire of Broome                            )

was affixed under the authority   )

of a resolution of Council in the  )

presence of:                                   )

 

 

 

_____________________________              _____________________________

H TRACEY                                                          S MASTROLEMBO

Shire President                                  Chief Executive Officer

 


Item 9.2.9 - PROPOSED AMENDMENT OF THE PARKING AND PARKING FACILITIES LOCAL LAW 2012

 

 

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AgendaOrdinary Meeting of Council 14 December 2017                                                                    Page 267 of 268

 

 

9.2.10    Submission - Senate Inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities

LOCATION/ADDRESS:                             Nil

APPLICANT:                                              Nil

FILE:                                                           TRS03

AUTHOR:                                                   Manager Community and Economic Development

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Development and Community

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    5 December 2017

 

SUMMARY:         The Senate Rural and Regional Affairs and Transport References Committee is conducting an inquiry into matters relating to the operation, regulation and funding of air route service delivery to rural, regional and remote communities.

It is recommended that Council resolve to make a formal submission to the Committee as part of this inquiry.

 

 

BACKGROUND

 

Previous Considerations

 

OMC 27 July 2017                              Item 9.3.1

 

Background

 

West Australian State Government Economics and Industry Standing Committee Inquiry into Regional Airfares in Western Australia

 

Following endorsement by Council at the Ordinary Meeting of Council (OMC) on 27 July 2017, the Shire made a submission and consequently appeared before the West Australian State Government Economics and Industry Standing Committee (Committee) Inquiry into Regional Airfares in Western Australia. The Shire used this opportunity to increase awareness of the impacts and opportunities in relation to regional airfares in the Broome context, with a focus on areas of influence that the WA State Government has or may have.

 

The Economics and Industry Standing Committee tabled its Report 2, Perceptions and Realities of Regional Airfare Prices in Western Australia (see Attachment 1) in State Parliament on 30 November 2017. The findings with regards to social, business and tourism impacts of current regional airfares across the State largely mirrored the Shire’s submission. Key findings outlined in the report included:

 

Finding 3

The scope for State Government intervention in the Western Australian aviation market is limited.

 

Finding 8

Data provided by the Bureau of Infrastructure, Transport and Regional Economics indicate that the passenger cost per kilometre for intra-Western Australian routes are often significantly higher compared with other national routes of similar distance.

 

Finding 10

High regional airfares are significantly and adversely affecting the lives of regional Western Australians, particularly those who are forced to travel due to sickness, emergency or other family incident.

 

Finding 11

The high cost of regional airfares can have a debilitating effect on price-sensitive markets, particularly small businesses and tourism operators.

 

Finding 14

Tourists are holidaying outside of Western Australia, often in South East Asian destinations including Bali, Singapore and Thailand. The high cost of regional airfares to and within Western Australia is a significant contributing factor.

 

Finding 15

Airlines are required to travel significantly further, and to regional centres with smaller populations, than they do on RPT routes in all other Australian jurisdictions.

 

Finding 21

Evidence before the Committee suggests that market forces may not operate to place sufficient downward pressure on airfares to some unregulated regional destinations.

 

Finding 34

Collaborative initiatives between local businesses, councils and airlines would open up a range of new opportunities, expand the tourism market and overall passenger demand, increasing scale and potentially reducing airfares.

 

Finding 35

While three overseas airlines have recently announced new services to Perth, it seems unlikely in the near future that the State can attract a low-cost airline servicing tourists on regional routes.

 

Furthermore, the Committee tabled the following recommendations for State Government consideration and action:

 

Recommendation 1

The Minister for Transport initiate an immediate review to update the State Aviation Strategy, to reflect current market conditions and the Government’s intrastate aviation policy objectives. The review should consider the adequacy of the Department of Transport’s resources, in light of any proposed changes to its policies or functions.

 

Recommendation 2

The Ministers for Transport, Tourism, and Regional Development establish an interdepartmental working group by 1 February 2018 to assist the review of the State Aviation Strategy and undertake a more coordinated approach to aviation policy implementation.

 

Recommendation 3

The Premier consider re-establishing an Aviation Ministerial Council, to provide oversight for the recommended review of the State Aviation Strategy and ensure an ongoing whole-of-Government approach to the implementation State aviation policy.

 

Recommendation 4

The Department of Transport develop memorandums of understanding by July 2018 with regional airport operators that service unregulated RPT flights for the provision of relevant flight and passenger data. As a minimum, the operators should provide the data that they disclose to the Bureau of Infrastructure, Transport and Regional Economics.

 

Recommendation 5

The Minister for Transport utilise existing licensing powers under the Transport Coordination Act 1966 and Transport Co-Ordination Regulations 1985 to require that airlines operating on unregulated RPT routes provide the ‘prescribed records’ listed in Appendix Seven to the Department of Transport. Strict confidentiality protocols need to be observed around commercially sensitive information.

 

Recommendation 6

The Minister for Transport direct the Department of Transport to produce a biannual report assessing prevailing market dynamics and airfares on WA’s unregulated RPT routes.

 

Recommendation 7 Page 127

The Minister for Transport direct the Department of Transport to undertake a discrete, detailed economic analysis and community consultation to determine whether any additional RPT routes in WA should be subject to regulation, with priority placed on the Perth-Kununurra service.

 

Recommendation 8

The Department of Transport review its current tender design process for regulated RPT routes. The review should consult with the market regarding alternative packaging arrangements to optimise service efficiencies for ‘like’ routes.

 

Recommendation 9

As part of the review of the State Aviation Strategy, the Department of Transport engage with industry and local communities to examine the market opportunities for additional inter-regional routes within Western Australia.

 

Recommendation 10

As part of the review of the State Aviation Strategy, the Department of Transport consider whether any current RPT routes require subsidisation to secure their viability.

 

Recommendation 11

The Department of Transport report to the Minister of Transport on the viability and utility of providing a web-based tool for regional airfares similar to FuelWatch.

 

Recommendation 12

As part of the review of the State Aviation Strategy, the Department of Transport consider opportunities to leverage the State’s purchasing power to encourage initiatives such as compassionate and/or community airfares for residents.

 

Recommendation 13

All proposals for new mining airstrips within 100km of existing RPT airports to be considered at Cabinet level and be accompanied by a recommendation from the Aviation Ministerial Council.

 

Senate Inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities

 

On 16 November 2017, the Senate referred the following matters to the Senate Rural and Regional Affairs and Transport References Committee (Senate Committee) for inquiry and report by 30 March 2018:

 

The operation, regulation and funding of air route service delivery to rural, regional and remote communities, with particular reference to:

 

a.   social and economic impacts of air route supply and airfare pricing;

b.   different legal, regulatory, policy and pricing frameworks and practices across the Commonwealth, states and territories;

c.   how airlines determine fare pricing;

d.   the determination of airport charges for landing and security fees, aircraft type and customer demand;

e.   pricing determination, subsidisation and equity of airfares;

f.    determination of regulated routes and distribution of residents’ fares across regulated routes;

g.   airline competition within rural and regional routes;

h.   consistency of aircraft supply and retrieval of passengers by airlines during aircraft maintenance and breakdown;

i.    all related costs and charges imposed by the Civil Aviation Safety Authority; and

j.    any related matters.

 

Submissions addressing all or some of the terms of reference for this inquiry are due to the Senate Committee by 5 February 2018.

 

COMMENT

 

The current Senate inquiry provides the Shire with another opportunity to advocate in relation to the important role of air services, and impact on the current and future community and economic sustainability of Broome and the region.

 

In response to the terms of reference for the Senate inquiry, it is recommended that the Shire make a submission including the key elements summarised below. A copy of the full submission proposed is shown in Attachment 2.

 

Term of Reference

Summarised Shire Response

a)   social and economic impacts of air route supply and airfare pricing

Shire believes that current air route supply and pricing are having significant social and economic impacts on Broome. Among other impacts, the current cost of air travel has been shown to be inhibitive to potential visitors and increases the isolation for residents.

b)   different legal, regulatory, policy and pricing frameworks and practices across the Commonwealth, states and territories

The Shire notes the benefits of local pricing schemes (eg. in regional Queensland) and regulated routes (eg. in southern Western Australia). The Shire also believes further analysis of the benefits of lifting cabotage restrictions (with limitations) is warranted.

c)   how airlines determine fare pricing

There currently seems to be limited transparency on this process from airlines, which is seen as one of the factors causing community outrage.

d)   the determination of airport charges for landing and security fees, aircraft type and customer demand

The Broome International Airport is privately run, and the Shire does not have involvement or oversight in relation to airport charges.

e)   pricing determination, subsidisation and equity of airfares

The continued support and growth of the Broome tourism industry is considered a key economic priority for Broome. Taking into account the smaller scale of the regional centres in northern Western Australia, data would suggest that price per kilometre charges are higher when compared to eastern coast routes of similar distance.

f)     determination of regulated routes and distribution of residents’ fares across regulated routes

The Shire does not have a position on regulated routes, but understands that regulated routes in Western Australia have led to greater transparency and engagement between airlines and the community with regards to airfares and services.

g)   airline competition within rural and regional routes

The key air routes to Broome are serviced by two airlines. The resultant degree of competition as a result could be seen as negligible.

h)    consistency of aircraft supply and retrieval of passengers by airlines during aircraft maintenance and breakdown

The Shire does not have a position.

i)     all related costs and charges imposed by the Civil Aviation Safety Authority

The Shire does not have a position.

j)     any related matters

The Shire welcomes any Federal Government assistance in maintaining and developing the community and economic sustainability of Broome, and other regional centres across northern Australia. The Shire seeks support in the development and facilitation of international linkages, addressing the high costs of air services to and from Broome and calling for greater transparency and consistency from airlines when setting airfares.

 

Overall, it is considered important that the Shire continues to articulate the challenges, issues and opportunities associated with air services to the inquiry.  Therefore, it is recommended that Council make the submission as shown in Attachment 2.

 

CONSULTATION

 

Senate Rural and Regional Affairs and Transport References Committee

 

STATUTORY ENVIRONMENT

 

Local Government Act 1995

 

POLICY IMPLICATIONS

 

Nil

 

FINANCIAL IMPLICATIONS

 

There are no identified financial implications associated with Council presenting a submission to the Inquiry.

 

RISK

 

The following risks have been identified for Council’s consideration. Based on the following analysis it is recommended that Council proceeds with the submission.

 

Risk

Type

Rank

Mitigation

Shire does not make an independent submission to the Inquiry.

Reputational

Medium

Given the impacts of this issue on Broome, and levels of frustration throughout the community, it is recommended that Council makes a submission.

 

The Shire’s submission is not supported by industry or stakeholder bodies.

 

Reputational

Low

Similar themes to those identified by the Shire have emerged in the media and in different regions, and have been reflected in discussions with key stakeholders in Broome.

The Shire’s feedback makes limited impact.

Reputational

Low

The outcomes and recommendations of the inquiry are being guided by the Commonwealth Government. The Shire is being proactive by participating in the Inquiry.

 

STRATEGIC IMPLICATIONS  

 

Our Place Goal – Help to protect the nature and built environment and cultural heritage of Broome whilst recognising the unique sense of the place:

 

Retention and expansion of Broome’s iconic tourism assets and reputation

 

Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:

 

Affordable and equitable services and infrastructure

 

 

VOTING REQUIREMENTS

Simple Majority

 

REPORT RECOMMENDATION:

That Council:  

1.       Notes findings and recommendations contained within the Economics and Industry Standing Committee’s Report 2, Perceptions and Realities of Regional Airfare Prices in Western Australia as shown in Attachment 1.

2.       Endorses the submission to the Senate Rural and Regional Affairs and Transport References Committee Inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities as shown in Attachment 2.

3.       Requests that the Chief Executive Officer forward the submission as shown in Attachment 2 to the Senate Rural and Regional Affairs and Transport References Committee.

 

 

Attachments

1.

EISC Report - Perceptions and Realities of Regional Airfare Prices in Western Australia

2.

Shire of Broome Submission

  


Item 9.2.10 - Submission - Senate Inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities

 

 

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Item 9.2.10 - Submission - Senate Inquiry into the operation, regulation and funding of air route service delivery to rural, regional and remote communities

 

 

 

 

 

INQUIRY INTO THE OPERATION, REGULATION AND FUNDING OF AIR ROUTE SERVICE DELIVERY TO RURAL, REGIONAL AND REMOTE COMMUNITIES

SHIRE OF BROOME SUBMISSION

14 DECEMBER 2017

 

The Shire of Broome welcomes any Federal Government assistance in maintaining and developing the community and economic sustainability of Broome, and other regional centres across northern Australia. The Shire seeks support in the development and facilitation of international linkages, addressing the high costs of air services to and from Broome and calling for greater transparency from airlines when setting airfares.

With support from all stakeholders, Broome is well positioned to make rapid progress as a result of the economic opportunities in the region. There is a strong willingness from local leadership to drive growth and development, and support from the Federal Government is welcomed.

The Broome Context

The context for Broome in relation to air route services and pricing can be summarised as follows:

·    Airfares are now high to and from Broome.

·    Average airfares have been higher to and from Broome for five years to end March 2017.

·    Tourism to Broome has lost out due to high average airfares.

·    Fall in number of seats offered on Perth-Broome are much larger than domestic airline averages – a key reason for high airfares.

·    Growth in air travel is shown to be on the back of growth in the region’s off-shore liquefied natural gas industry rather than tourism.

 

Response to Terms of Reference

The Shire’s response, and recommendations to the inquiry’s terms of reference are as follows:

a.    social and economic impacts of air route supply and airfare pricing;

The Shire believes that current air route supply and pricing are having significant social and economic impacts on Broome. Among other impacts, the current cost of air travel has been shown to be inhibitive to potential visitors and increases the isolation for residents. A fall in total overnight holiday visitors to Broome of 7%, compared to growth of 27% to WA as a whole in the last five years compared to the five years previous is a major concern for the Broome economy given its traditional reliance on tourism.

Social (community) impacts

 

·    The cost of living in the north west is increased dramatically by the price of airfares.   

·    The geographical remoteness of Broome in comparison to the remainder of the State is exacerbated by accessibility of flights at affordable prices. 

·    Last minute, unexpected or peak season flights are regularly unaffordable for the majority of residents. Flights during the tourist season (April – October), around public holidays (Christmas, Easter etc) or during school holidays are not accessible for the community.

·    Increased isolation for residents who have distant family or other requirements to travel elsewhere in the state.

·    Prohibitive for residents to access the specialist health, education, commercial and recreational facilities that are not available where they normally reside.

·    Increased costs for residents requiring travel to access medical services outside of Broome – especially where the Patient Assisted Travel Scheme (PATS) does not fully cover costs or is unable to be accessed.

·    Increased costs of boarding school or remote schooling, especially when children return home during school holidays.

 

Business impacts

 

·    Increased costs of operating businesses in the north west, and additional impediments to new businesses.

·    Provides challenges for businesses looking to relocate to a regional area with access to good air services.

·    Limited ability for local businesses and organisations to cost effectively access professional development, training, conferences, meetings etc where travel is required.

·    Contributes to greater isolation with regards to access to staff, customers and services elsewhere.

·    Limits the pool of prospective employees based on cost of living/travel, remoteness and related pay scales/living allowances are required to commensurate.

·    Increases costs of goods and services to the community to reflect business costs.

·    Challenges to current and future economic development -  impacting the ability to establish, strengthen and accelerate trade and social connections across the state, country and abroad.

·    Contributes to stifling stronger productivity performance and economic growth.

 

Tourism impacts

 

·    The high cost of flights do not assist in the promotion of Broome as an affordable or accessible tourist destination.

·    International and interstate travel is often more affordable – making it challenging for the Kimberley tourism sector to compete and providing little encouragement for domestic tourism in Broome based on cost alone.

·    Concerns regarding impact on pricing and availability of airfares for tourism/residents where resource companies are utilising a fly in – fly out workforce.

·    The tourism sector employs the most people in Broome. Reductions and impacts on numbers of tourists have a broader economic flow on effect throughout the community.

 

b.    different legal, regulatory, policy and pricing frameworks and practices across the Commonwealth, states and territories;

Local Pricing

·    The Shire notes the benefits of local pricing schemes (eg. in regional Queensland) and regulated routes (eg. in southern Western Australia).

·    Destinations such as Roma in Western Queensland benefit from local pricing, and this is a practical measure for the airlines to demonstrate a long-term service commitment to the region.

Cabotage Restrictions

·    The Shire also believes further analysis of the benefits of lifting cabotage restrictions (with limitations) is warranted.

·    In the recent WA State enquiry, further investigation into the lifting of cabotage was also supported by one other international airport in the north west – however the Shire is aware of opposition from the airlines.

·    The Shire believes that there is an opportunity to investigate the impact on ticket pricing and visitation through limited allowance of cabotage to attract international airline services from South East Asia and Hong Kong through to Broome to Perth and the Eastern States’ capitals.

c.     how airlines determine fare pricing;

The Shire understands the use of yield management systems, but is not clear on the process used by airlines to determine fare pricing. There currently seems to be limited clarity on this process from airlines in the public forum - which is seen as one of the factors causing community outrage.

For example, the average airfares paid by Sydney and Melbourne residents to Broome is around 25% higher than the average of routes from Sydney and Melbourne to Darwin and Perth on a cents per kilometre basis over the five years ended March 2017. 

d.    the determination of airport charges for landing and security fees, aircraft type and customer demand;

The Broome International Airport is privately run, and the Shire does not have involvement or oversight in relation to airport charges. The Shire notes that these costs constitute a small part of an airfare, but are a set fee and do not increase as the ticket price rises.

e.    pricing determination, subsidisation and equity of airfares;

Equity of Airfares – East vs West

By the Shire’s understanding, the difference in pricing on the west vs east coast cannot be justified by operating costs.  Furthermore:

·    There is an apparent lower level of service (older aircraft) for a higher price on west coast routes.

·    There are significantly higher costs per kilometre for west coast routes when compared to similar distances on the east coast.

·    The average airfares paid on the Broome-Perth route (when Broome is the only stopover) is over 50% higher than the average of four east coast medium haul routes from Sydney and Melbourne to regional tourist centres on a cents per kilometre basis over the five years ended March 2017.  This comparison excludes low cost carriers.

·    The average airfares paid by Sydney and Melbourne residents to Broome is around 25% higher than the average of routes from Sydney and Melbourne to Darwin and Perth on a cents per kilometre basis over the five years ended March 2017.

 

f.     determination of regulated routes and distribution of residents’ fares across regulated routes;

The Shire does not have a position on regulated routes, but understands that regulated routes in Western Australia have led to greater transparency and engagement between airlines and the community with regards to airfares and services.

g.    airline competition within rural and regional routes;

The key air route to Broome is serviced by two airlines. The resultant degree of competition as a result could be seen as negligible.

h.    consistency of aircraft supply and retrieval of passengers by airlines during aircraft maintenance and breakdown;

The Shire does not have a position on this matter, but is concerned about the numbers of seats available on flights to Broome.

Official data from the Commonwealth Government (BITRE) provides monthly data on the number of seats available and passengers carried for major airline routes in Australia, including Perth-Broome.

In the year ended May 2017 the number of seats available on the Perth-Broome route fell by 5.3% compared to the previous year ended May 2016.  In contrast, domestic seats across the network (available seat kilometres) fell by 0.6%.

In the year ended May 2017 the number of seats available on the Perth-Broome route fell by 13.6% compared to three years earlier, the year ended May 2014.  In contrast, domestic seats across the network (available seat kilometres) fell by 0.9% compared to year ending May 2014 data.

i.     all related costs and charges imposed by the Civil Aviation Safety Authority; and

The Shire does not have a position.

j.     any related matters.

Nil.

Recommendations

Recommendation 1: Support investigations into the development of an international route from Melbourne/Sydney to Broome and on to South East Asia.

It is expected that if this international route is flown even two times per week, it would lead to a significant reduction in airfares on current routes to Broome, and have additional flow on effects in relation to opening direct international access to Broome and the Kimberley.

Recommendation 2: Investigate opportunities for cabotage to be allowed (only) between Australian regional international airports (including Broome, Darwin and Cairns) and the four primary international airports in Australia (being Perth, Brisbane, Melbourne and Sydney)

A potential policy change may also benefit the other major tourist centres in Northern Australia of Darwin and Cairns and be a practical measure to increase tourist and economic development in Northern Australia.

 


AgendaOrdinary Meeting of Council 14 December 2017                                                                    Page 483 of 484

 

 

9.2.11    DRAFT CHINATOWN PUBLIC ART AND INTERPRETATION STRATEGY

LOCATION/ADDRESS:                             Nil

APPLICANT:                                              Nil

FILE:                                                           PLA94

AUTHOR:                                                   Manager Community and Economic Development

CONTRIBUTOR/S:                                    Nil

RESPONSIBLE OFFICER:                           Director Development and Community

DISCLOSURE OF INTEREST:                      Nil

DATE OF REPORT:                                    7 December 2017

 

SUMMARY:         The draft Chinatown Public Art and Interpretation Strategy has been developed to catalogue existing public art within Chinatown, and identify opportunities for further works to be developed as part of the upcoming detailed design process for the Chinatown Revitalisation Project. Officers are seeking Council’s endorsement of the plan for this purpose.

It is also proposed that the Shire’s Public Art Reserve is utilised to deliver projects within the plan as part of the Chinatown Revitalisation Project.

Council is requested to consider endorsing the release of the strategy for public comment during 2018 with the view of future adoption as an informing strategy of Council.

 

 

BACKGROUND

 

Previous Considerations

 

ACHAC 16 November 2016        Item 5.1

OMC 24 November 2016             Item 10.3

 

The Chinatown Revitalisation Project aims to deliver much needed upgrades and enhancements within the Broome central business and retail district. This will see the delivery of key activities aimed at boosting economic activity along with preserving and enhancing Chinatown’s role as the social, cultural and economic hub of Broome.

 

The draft Chinatown Public Art and Interpretation Strategy (Strategy) (Attachment 1) is part of the Public Realm Architecture brief for the project, overseen by specialist consultancy UDLA.

 

At the Ordinary Meeting of Council (OMC) on 24 November 2016, Council endorsed the meeting minutes of the Arts Culture and Heritage Advisory Committee (ACHAC) as follows:

 

Council Resolution:

(Report Recommendation)

Moved: Cr C Mitchell                                               Seconded: Cr B Rudeforth

That Council;

1.       Receives the Minutes of the Arts Culture and Heritage Advisory Committee meeting held on 16 November 2016 and endorses the recommendations of the Committee (as contained in the Minutes attached) enbloc: and

2.       Adopts a budget amendment to the 2016/17 Annual Budget as follows:

·      Transfers $5,000 from the Public Art Reserve; and

·      Increases Account 116120 Public Art Masterplan Op Exp by $5,000 towards installing concrete pads for display of public art.

CARRIED UNANIMOUSLY BY ABSOLUTE MAJORITY 7/0

 

Council’s endorsment related to the following resolution of the ACHAC. Recommendations 2, 3 and 4 are pertinent to this report, and have informed the development of the Strategy.

 

COMMITTEE Resolution:

Moved: Ms R Middleton                                           Seconded: Ms V Margetts

That the Arts, Culture and Heritage Committee recommends that Council:

1.       Requests the Chief Executive Officer to investigate an annual Public Art expression of interest or grants program and funding options to be presented back to the Arts, Culture and Heritage Advisory Committee for their consideration and recommendation to Council.

2.       Request the Chinatown Revitalisation Steering Committee consider the Shire of Broome Public Art Masterplan and Yawuru Cultural Management Plan and consult with the Arts, Culture and Heritage Advisory Committee with regard to Chinatown Revitalisation and in particular the following projects:

(a) Streetscape upgrades to Dampier Terrace and Carnarvon Street

(b) Development of pocket parks

(c) Laneway enhancements.

3.       Requests the Chief Executive Officer to review the scope of the Sam Su Lane Mural Project and Chinatown Entry Statement to ensure they complement the Chinatown Revitalisation project.

4.       Endorses the following short-term priorities for the location and type of public artworks in Broome:

(a)    Chinatown

(b)    Iconic locations

(c)    Discovery

(d)    Functional interactive

CARRIED UNANIMOUSLY 7/0

 

The Committee’s input was obtained in accordance with recommendation 2 above through the development of the Strategy.  A workshop was held with the ACHAC on 22 June 2017 and was attended by two members - Councillor Fairborn and Anthony Simmons. Following this workshop, a working draft of the Strategy and workshop minutes (Attachment 2) were distributed to all Committee members for further comment. No additional feedback was received from Committee members.

 

A further workshop was held with the ACHAC on 8 November 2017 to present the draft Strategy and seek in principle support. The documents for review were circulated in the calendar invite to all members. It was attended by Anthony Simmons, Sarah Yu and Rani Middleton. Aside from a small number of minor revisions, the attendees indicated broad support for the Strategy.

 

Recommendation 3 was addressed through the development of the Strategy, with the specialist consultant being provided with the existing proposals and background. During the consultation and subsequent drafting of the Strategy, it emerged that there were a number of other opportunities to incorporate public art throughout the precinct in addition to Sam Su Lane and the Chinatown Entry Statement. 

 

 

COMMENT

 

The development of the Strategy reflects the previous direction provided by the ACHAC and Council in relation to the incorporation of public art, heritage values and multiculturalism into the Chinatown Revitalisation Project. The opportunities and themes articulated by the Strategy also take into account a number of previous documents, plans and proposals, in addition to the feedback gathered from key stakeholders.

 

Planning for the detailed design of streetscape upgrades within Chinatown (to be undertaken following the public comment period) will incorporate further costings, consideration