Supplementary Agenda of Ordinary Meeting

Agenda – Ordinary Meeting of Council 31 May 2018 Page 15 of 27

12.1 COUNCIL CONSIDERATION OF PUBLIC SUBMISSIONS ON INTENTION TO IMPOSE DIFFERENTIAL RATES AND MINIMUM PAYMENTS FOR THE 2018/19 ANNUAL BUDGET

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: ARA01; ARA12

AUTHOR: Manager Financial Services

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Corporate Services

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 25 May 2018

SUMMARY: A local government is required to consider any public submissions received in response to Council’s request for submissions regarding Council’s intention to impose the 2018/19 differential rates and minimum payments under section 6.36(4) of the Local Government Act 1995 (LGA). The proposed differential rates and minimum payments have been advertised for local public notice seeking public comment for not less than 21 days, ending 24 May 2018.

The purpose of this report is to present to Council the details of submissions received for consideration following the statutory local public notice period and prior to adoption of the 2018/2019 Annual Budget.

Council is requested to authorise the Chief Executive Officer (CEO) to make an application to the Minister for Local Government and Communities for approval:

1. To impose differential general rates under section 6.33(3) of the LGA that are more than twice the lowest differential rate being imposed; and

2. To impose a minimum payment on vacant land that applies to a greater percentage of vacant properties than is allowed under section 6.35(5) of the LGA.

BACKGROUND

Previous Considerations

OMC 8 May 2008 Item 9.4.5

OMC 17 December 2008 Item 9.4.3

OMC 2 September 2009 Item 9.4.5

OMC 14 April 2011 Item 9.2.1

SMC 13 July 2011 Item 9.3.1 & 9.3.2

OMC 19 April 2012 Item 9.4.4

SMC 24 July 2013 Item 9.4.1

SMC 28 August 2013 Item 9.4.3

SMC 27 June 2014 Item 9.4.3

OMC 18 December 2014 Item 9.3.1

SMC 16 June 2015 Item 6.3.1

SMC 23 July 2015 Item 6.4.1

OMC 28 April 2016 Item 9.3.2

SMC 10 June 2016 Item 6.4.3

OMC 30 June 2016 Item 9.4.3

SMC 4 May 2017 Item 6.4.1
SMC 7 June 2017 Item 6.4.2

OMC 26 April 2018 Item 12.2

Intention to Impose 2018/19 Differential Rates

At the Ordinary Meeting of Council (OMC) held 26 April 2018, Council resolved the following:

COUNCIL RESOLUTION:

REPORT RECOMMENDATION

That Council:

1. Publishes a local public notice proposing the 2018/2019 differential general rates and minimum payments set out in the table below and invites electors or ratepayers to lodge submissions about this proposal within 21 days from the date of notice:

*DIFFERENTIAL RATE CATEGORY*	*RATE IN THE DOLLAR* *(cents)*	*MINIMUM PAYMENT*
*Residential (GRV)*	*9.9283*	*$1,220*
*Residential – Vacant (GRV)*	*16.0727*	*$1,220*
*Commercial (GRV)*	*10.9568*	*$1,220*
*Tourism (GRV)*	*15.2390*	*$1,220*
*Mining (UV)*	*12.5464*	*$500*
*Rural (UV)*	*0.6687*	*$1,220*
*Commercial Rural (UV)*	*3.1327*	*$1,220*

2. Notes the financial year 2018/19 as the year of complete phase-out and discontinuance of concessions granted on the localities of Coconut Well, 12 Mile and properties with horticultural use;

3. Adopts the Objects and Reasons presented in Attachment 2 for each of the proposed differential general rates and minimum payments in point 1 above; and

4. Following the close of the public submission period, requests the Chief Executive Officer to report back to Council, presenting any submissions for formal consideration prior to seeking Minister’s Approval:

(a) Under Section 6.33 of the Local Government Act 1995 to impose differential rates for those rates that are more than twice the lowest differential rate.

(b) Under Section 6.35(5) of the Local Government Act 1995 to impose a minimum payment of $1220 on GRV - Residential Vacant properties as exemption to subsections 2, 3 and 4 of Section 6.35 of the Local Government Act 1995.

The report presented to Council at the 26 April 2018 OMC summarised the following matters:

1. The 2018/19 budget process to date where it was identified that $22.4M of rates revenue was required to achieve a balanced budget in 2018/19;

2. The proposed rating categories and corresponding valuations;

3. The proposed rate in the dollar for each rating category reflecting an increase equal to or less than 1.78% as compared to last financial year to balance the draft budget for 2018/19;

4. The $500 proposed minimum payments for UV Mining category and $1,200 proposed minimum payments for all other categories which remained the same as the preceding year;

5. An illustration of the proposed differential rates and minimum payments required to balance the 2018/19 budget; and

6. The required public notice of certain rates to provide an opportunity for public submissions to be considered prior to the final adoption of rates.

Following the 26 April OMC, a public notice inviting submissions on proposed differential rates was advertised in the 3 May 2018 edition of the Broome Advertiser, with the submission period closing at 4pm, Thursday 24 May 2018. Public notices were also placed on noticeboards located at the Shire of Broome Administration Centre and Library. A follow up advert was placed in the 17 May 2018 edition of the Broome Advertiser.

The Shire wrote to the 23 remaining properties in the UV – Commercial Rural rating category inviting public comments on the proposed differential rates pursuant to the requirement of the Department of Local Government, Sport and Cultural Industries (DLGSC) for rating categories with less than 30 ratepayers. A media release about the intention to impose differential rates and minimum payments was also published on the Shire’s website on 3 May 2018.

The Minister requires evidence of Council consideration of any submissions received prior to accepting the Shire’s application for exemption from section 6.33 of the LGA where the proposed UV Mining and UV Commercial differential rates are set at more than twice the base UV Rural rate and exemption from section 6.35 of the LGA where there are more than half the number of GRV Residential – Vacant properties on the minimum payment.

COMMENT

Submissions

Two submissions were received during the above notice period and are summarised below for Council consideration. The Schedule of Public Submissions as attached contains a complete response to the submissions (Attachment 1).

Submission 1: Diane Nicol, A304475

The respondent raised general concerns regarding the proposed increase in differential rates imposed by the Shire. The response referred to a number of issues, including the exclusion of properties from the requirement to pay rates, increased cost of living and increased costs of “protecting property” due to anti-social behaviour, all impacting the ability of ratepayers to meet the proposed increase.

The submission was primarily an objection to the proposed rate increase as opposed to the differential rating Objects and Reasons. Officers will respond to the submission providing details of Shire services and projects. Officers do not feel that the submission warrants any amendments to the proposed differential rating Objects and Reasons.

Submission 2: McMahon Mining Title Services Pty Ltd

The submission stated that the respondent acted “for a number of exploration and prospecting companies in WA” but did not provide any further details in relation to properties. The submission requested that Council consider including a separate UV Mining – Exploration/Prospecting differential rating category with a lower rate in the dollar providing the following reasons:

- Exploration companies are equity funded and have limited cash flow, and at the exploration/prospecting stage must invest significant funds with minimal returns.

- While mining operations may generate higher demand on Shire infrastructure and services, exploration activities are normally of low intensity and short duration and are not characterised by the same high traffic volumes or weights, or demands on Shire infrastructure and services.

Mining leases classified as ‘prospecting licences’ are exempt from both rates and the Emergency Services Levy (ESL). There are no properties currently classified as ‘prospecting licence’ within the Shire and as such these property types have not been considered in the officer response to the submission.

In relation to the proposal for an additional UV Mining – Exploration category it is important to note that the Valuer General is responsible for the valuation of all properties within a local government’s district. In accordance with the Valuation of Land Act 1978 the Valuer General determines the value of land according to its purpose or use. If mining is conducted on a tenement, then the land in question would be valued higher than if the same tenement was used for exploration purposes. This means that once the UV Mining rate in the dollar is applied, the exploration tenements will pay less in rates than a tenement that has mining occurring on it and therefore results in a fair and equitable rates methodology without the need for another differential rate in the dollar.

The Valuer General provided the following changes in rental valuations of mining leases effective 18/19. The rental valuations clearly differentiate between the different activities undertaken.

Tenement Type	Rental Valuation Change 18/19
Exploration (E)	Per block increased from $129.50 to $134
	Per square km increased from $49 to $51
	Only one block within the Shire increased from $311 to $322
General Purpose (GP)	Per hectare increased from $15.10 to $15.60
Mining (M)	Per hectare increased from $17.06 to $17.60
Prospecting (P)	Per hectare unchanged at $2.50

The following table details properties currently classified under the UV – Mining category:

Licence Type	Property Count	Rateable Value	Rates Revenue
Mining	28	$234,173	$35,210
Petroleum Exploration Permit	8	$106,019	$13,850
Exploration	26	$286,123	$38,265
Petroleum Production Licence	2	$63,152	$ 7,923
Others	1	$42,460	$5,328
General Purpose	1	$755	$500
Total	66	$ 732,682	$101,076

The proposed 2018/19 rate model contains 66 properties currently rated under the UV Mining differential rating category of which 29 will attract the minimum payment of $500 due to their relatively low valuations. There are currently 26 “Exploration” tenements of which it is proposed 6 will pay the minimum rate. The maximum 2018/19 rate proposed for the 26 Exploration tenements is $38,265.

Council should be aware that a decision to introduce a new differential rating category for UV Mining Exploration will delay the adoption of the 2018/19 budget due to the requirement to readvertise the amended Objects and Reasons. Additionally as the number of properties falling within a proposed UV Mining Exploration category would be below 30, officers would be required to write to all affected property owners prior to introducing the change.

Officers do not believe there is sufficient justification to warrant a separate rate category for exploration tenements, particularly given the nature of activities which tend to be in place for short periods of time. A uniform UV Mining rate category is preferred as it simplifies the rates model and more closely aligns with the proposed Objects and Reasons. A uniform minimum payment also ensures that all ratepayers are making an equitable contribution to the rate yield.

Section 6.36(4) of the LGA requires Council to consider any submissions received, before imposing the proposed rate in the dollar or minimum payment, with or without modification.

Ministerial Approval

Section 6.35 of the LGA requires a local government to ensure that the general rate is imposed on not less than 50% of the number of separately rated properties or 50% of the number of properties in a Differential general rate category. This has been achieved in all categories except in GRV – Residential Vacant. It is proposed that Ministerial approval be sought in this circumstance to ensure a consistent rate increase is applied to all properties within this category.

In line with previous years, Ministerial approval must also be sought in accordance with section 6.33 of the LGA for the proposed UV Mining and UV Commercial differential rating categories as these are more than twice the lowest UV Rural general rate.

Officers recommend that Council authorises the CEO to proceed with an application to the Minister with regards to the UV Mining and UV Commercial differential rating category rates in the dollar, and GRV Residential Vacant minimum payment.

UV Valuations

With the exception of UV Mining, there has been limited change in valuations of UV- properties. Valuations for UV Mining received after the 17 April 2018 Council workshop indicate an increase in property values of between 1% and 3%. With an average valuation of $11.5K each, the increased rates revenue generated by the 66 UV – Mining properties is estimated at less than $2,000 and is deemed negligible. Officers do not consider that the proposed rates model be changed.

Phase Out of Concessions

At the 26 April 2018 OMC, Council approved the complete phase-out and discontinuance of concessions granted for the localities of Coconut Well, 12 Mile and properties with horticultural use effective 2018/19. The reduced valuation of UV properties effectively encapsulates the service limitations in certain localities and results in a fair and equitable rates methodology without the need for concessions on rate in the dollar.

Rate Growth

A recent review of 2017/18 actual rates revenue revealed higher but still minimal growth in the rate base compared to original expectation primarily due to the current economic climate. As a result, officers have taken a conservative yet more optimistic approach in forecasting 2018/19 rate growth and increased the interim rate budget from $10,000 to $50,000. This reduction will effectively offset the increased yield as indicated in the rate model.

Budget Adjustments

There are also a number of financial adjustments that have occurred in the period since the 26 April OMC that have impacted the draft budget such as:

· Inclusion of Kimberley Zone of WALGA / Kimberley Regional Group accounts noting that these adjustments have a nil impact.

· Expected expenses and related reimbursements for the restoration works required for damages suffered from the weather events at the start of the calendar year (e.g. insurance and WANDRRA).

It is proposed to amend the draft budget to encapsulate these adjustments and incorporate the rate model changes identified above. These changes will be presented to Council for consideration at its Ordinary Meeting on 28 June 2018.

Conclusion

In conclusion, it is recommended that Council after consideration of the submissions received, proceeds with adopting the Objects and Reasons, differential rates and minimum rates strategy as previously advertised and seek ministerial approval:

- to impose differential rates for those rates that are more than twice the lowest differential rate; and

- to impose a minimum payment of $1220 on GRV - Residential Vacant properties as an exemption to subsections 2, 3 and 4 of Section 6.33 of the LGA.

CONSULTATION

Consultation has been conducted with the DLGSC relating to the proposed differential rates and minimum payment.

Letters were sent to 23 properties remaining in the UV – Commercial Rural rating category inviting comments on the proposed differential rates, as there are less than 30 ratepayers in this rating category.

Local public notice was provided and direct correspondence issued to property owners as outlined above in accordance with section 6.36 of the LGA resulting in 2 submissions received during the 21-day statutory period.

STATUTORY ENVIRONMENT

Local Government Act 1995

S6.28 Basis of Rates

1). The Minister is to -

(a) determine the method of valuation of land to be used by a local government as the basis for a rate; and

(b) publish a notice of the determination in the government gazette.

2). In determining the method of valuation of land to be used by a local government the Minister is to have regard to the general principle that the basis for a rate on any land is to be –

(a) where the land is used predominantly for rural purposes, the unimproved value of the land, and

(b) where the land is used predominantly for non-rural purposes, the gross rental value of the land.

S6.32. Rates and service charges

(1) When adopting the annual budget, a local government —

(a) in order to make up the budget deficiency, is to impose* a general rate on rateable land within its district, which rate may be imposed either —

(i) uniformly; or

(ii) differentially;

and

(b) may impose* on rateable land within its district —

(i) a specified area rate; or

(ii) a minimum payment;

and

(c) may impose* a service charge on land within its district.

* Absolute majority required.

(2) Where a local government resolves to impose a rate it is required to —

(a) set a rate which is expressed as a rate in the dollar of the gross rental value of rateable land within its district to be rated on gross rental value; and

(b) set a rate which is expressed as a rate in the dollar of the unimproved value of rateable land within its district to be rated on unimproved value.

(3) A local government —

(a) may, at any time after the imposition of rates in a financial year, in an emergency, impose* a supplementary general rate or specified area rate for the unexpired portion of the current financial year; and

(b) is to, after a court or the State Administrative Tribunal has quashed a general valuation, rate or service charge, impose* a new general rate, specified area rate or service charge.

* Absolute majority required.

(4) Where a court or the State Administrative Tribunal has quashed a general valuation the quashing does not render invalid a rate imposed on the basis of the quashed valuation in respect of any financial year prior to the financial year in which the proceedings which resulted in that quashing were commenced.

S6.33 Differential general rates

1). A local government may impose differential general rates according to any or a combination, of the following characteristics -

(a) the purpose for which the land is zoned under a local planning scheme in force under the Planning and Development Act 2005;

(b) the predominant purpose for which the land is held or used as determined by the local government;

(c) whether or not the land is vacant land; or

(d) any other characteristic or combination of characteristics prescribed.

S6.35. Minimum payment

(1) Subject to this section, a local government may impose on any rateable land in its district a minimum payment which is greater than the general rate which would otherwise be payable on that land.

(2) A minimum payment is to be a general minimum but, subject to subsection (3), a lesser minimum may be imposed in respect of any portion of the district.

(3) In applying subsection (2) the local government is to ensure the general minimum is imposed on not less than —

(a) 50% of the total number of separately rated properties in the district; or

(b) 50% of the number of properties in each category referred to in subsection (6),

on which a minimum payment is imposed.

(4) A minimum payment is not to be imposed on more than the prescribed percentage of —

(a) the number of separately rated properties in the district; or

(b) the number of properties in each category referred to in subsection (6),

unless the general minimum does not exceed the prescribed amount.

(5) If a local government imposes a differential general rate on any land on the basis that the land is vacant land it may, with the approval of the Minister, impose a minimum payment in a manner that does not comply with subsections (2), (3) and (4) for that land.

(6) For the purposes of this section a minimum payment is to be applied separately, in accordance with the principles set forth in subsections (2), (3) and (4) in respect of each of the following categories —

(a) to land rated on gross rental value; and

(b) to land rated on unimproved value; and

(c) to each differential rating category where a differential general rate is imposed.

S6.36. Local government to give notice of certain rates

(1) Before imposing any differential general rates or a minimum payment applying to a differential rate category under section 6.35(6)(c) a local government is to give local public notice of its intention to do so.

(2) A local government is required to ensure that a notice referred to in subsection (1) is published in sufficient time to allow compliance with the requirements specified in this section and section 6.2(1).

(3) A notice referred to in subsection (1) —

(a) may be published within the period of 2 months preceding the commencement of the financial year to which the proposed rates are to apply on the basis of the local government’s estimate of the budget deficiency; and

(b) is to contain —

(i) details of each rate or minimum payment the local government intends to impose; and

(ii) an invitation for submissions to be made by an elector or a ratepayer in respect of the proposed rate or minimum payment and any related matters within 21 days (or such longer period as is specified in the notice) of the notice; and

(iii) any further information in relation to the matters specified in subparagraphs (i) and (ii) which may be prescribed;

and

(c) is to advise electors and ratepayers of the time and place where a document describing the objects of, and reasons for, each proposed rate and minimum payment may be inspected.

(4) The local government is required to consider any submissions received before imposing the proposed rate or minimum payment with or without modification.

(5) Where a local government —

(a) in an emergency, proposes to impose a supplementary general rate or specified area rate under section 6.32(3)(a); or

(b) proposes to modify the proposed rates or minimum payments after considering any submissions under subsection (4),

it is not required to give local public notice of that proposed supplementary general rate, specified area rate, modified rate or minimum payment.

S6.47. Concessions

Subject to the Rates and Charges (Rebates and Deferments) Act 1992, a local government may at the time of imposing a rate or service charge or at a later date resolve to waive* a rate or service charge or resolve to grant other concessions in relation to a rate or service charge.

* Absolute majority required

POLICY IMPLICATIONS

2.2.4 Rating

3.4.9 Tourism Administration

FINANCIAL IMPLICATIONS

The proposed differential rates and minimum payments for the 2018/19 financial year will raise an estimated rates revenue of $22.4M.

RISK

The risks assessment of this item includes:

· Rejection by the DLGSC of the proposed differential rates and minimum payment and associated statement of objects and reasons which could result in delays in adopting the 2018/19 annual budget.

· Escalation of objections from affected ratepayers on the proposed phase out of concessions due to financial hardship and resulting inability to pay rates.

These risks are assessed as extreme. The treatment and mitigation of these risks have been identified through controls including analysis and review of the rate setting strategy and constant consultation with DLGSC and ratepayers.

STRATEGIC IMPLICATIONS

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

Effective communication

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

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

Responsible resource allocation

Effective community engagement

VOTING REQUIREMENTS

Simple Majority

REPORT RECOMMENDATION:

That Council:

1. Notes the submissions received and the objections contained therein regarding Council’s intention to impose the 2018/19 differential rates and minimum payments under section 6.36(4) of the Local Government Act 1995 during the public submission period of 21 days;

2. Endorses the following proposed Differential General Rates and Minimum Payments for 2018/19:

DIFFERENTIAL RATE CATEGORY	RATE IN THE DOLLAR (cents)	MINIMUM PAYMENT
Residential (GRV)	9.9283	$1,220
Residential – Vacant (GRV)	16.0727	$1,220
Commercial (GRV)	10.9568	$1,220
Tourism (GRV)	15.2390	$1,220
Mining (UV)	12.5464	$500
Rural (UV)	0.6687	$1,220
Commercial Rural (UV)	3.1327	$1,220

3. Adopts the Objects and Reasons for each of the proposed differential general rates and minimum payments in point 2 above as contained in Attachment 2; and

4. Requests the Chief Executive Officer to seek the Minister for Local Government’s approval:

(a) Under section 6.33 of the Local Government Act 1995 to impose differential rates for those rates that are more than twice the lowest differential rate; and

(b) Under section 6.35(5) of the Local Government Act 1995 to impose a minimum payment of $1220 on GRV - Residential Vacant properties as an exemption to subsections 2, 3 and 4 of Section 6.33 of the Local Government Act 1995.

Attachments

1.	Schedule of Public Submissions Proposed 2018-19 Differential Rates
2.	18/19 Rating Objects and Reasons Adopted 26 April 2018

Agenda – Ordinary Meeting of Council 31 May 2018 Page 23 of 27

12.2 REQUEST FOR TENDER 18/04 - BOWLING GREEN RENEWAL AT BROOME BOWLING CLUB

LOCATION/ADDRESS: 78 Herbert Street, Broome

APPLICANT: Nil

FILE: RFT18/04

AUTHOR: Property and Leasing Senior Officer

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Chief Executive Officer

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 21 May 2018

SUMMARY: This report considers tenders received for Request for Tender (RFT) 18/04 and seeks Council’s adoption of the recommendation contained within the attached confidential evaluation report.

BACKGROUND

Previous Considerations

22 March 2018 OMC Item 12.2

Tropical Cyclone Hilda impacted the Shire of Broome on 27 December 2017, followed by Tropical Cyclone Joyce on 11 - 16 January 2018, strong winds and flooding from a tropical low occurred on 29 – 31 January 2018 and Tropical Cyclone Kelvin on 17 – 19 February 2018. As a result of these events various Shire properties and infrastructure throughout the townsite were damaged.

The Broome Bowling Club’s artificial bowling green sustained damage to both the surface and the sub-structure, which was corrugated from water inundation.

On 22 February 2018 the original installer of the bowling green - Berry Bowling Systems Pty Ltd undertook an assessment of the damage and provided a report for insurance purposes. The report indicated that the existing “Pro Green Plus” needle punch carpet and underlay were damaged beyond repair and the existing base would require new plinths and re-levelling. The report included a “like for like” replacement cost estimation of $170,000.

Representatives of the Broome Bowling Club were consulted as part of the procurement process to ensure the replacement of the “like-to like” surface would adequately meet the needs of the Club both now and into the future. There was a consensus between the Shire of Broome, Broome Bowling Club and the Insurer, the renewal should be in line with the existing “Pro Green Plus” needle punch bowling green. This was based on the below key criteria:

· Low maintenance and life cycle costs

o Little to no watering.

o No sand.

o Minimal labour required.

· Existing surface had performed extremely well for the last 10 years in this environment.

· Meets World Bowls Standards.

An insurance claim seeking full replacement of the current green was submitted to Local Government Insurance Services (LGIS) on the 28 February 2018 for approval to commence the procurement process, this was approved on the 24 May 2018.

At the Ordinary Meeting of Council held on 22 March 2018 Council resolved to call tenders for the replacement of the synthetic lawn bowling green surface at the Broome Bowling Club.

COMMENT

Scope of Works

The scope of the works sought through the tender are as follows:

1. Remove and dispose of top layer (pro-green plus) and underfelt.

2. Remove and dispose of existing plinths

3. Install new plinths to a minimum height of 230mm.

4. Regrade the existing base. To be laser levelled with a layer of sand to a final flatness tolerance of 3mm under a 3-metre straightedge, then hand screed to ensure accurate matching with the re-constructed plinths.

5. Final level check of base and light roll, ready for surface installation.

6. Install new underfelt and playing surface. Surface to be joined by sewing with a North/South orientation with the joint lines offset from those under-pad.

7. Supply and install terracotta colour synthetic grass 150mm to the top of the bank and down the outer ditch wall.

8. Supply and install terracotta synthetic grass to the bottom of the ditches.

9. Smoothing of the surface towards each side of the green, the overlapping surface material will be suitably screwed to ensure retention within the ditch/plinth structure.

10. Green to be tested in line with World Bowls Ltd standards at the cost of the contractor.

11. Broome Bowling Club to notify the State Bowling Authority on practical competition and the Contractor of the date of testing.

The tender allowed for other surface types to be considered as “alternate tenders”, provided they met the minimum specifications outlined in the tender documentation.

Procurement Process

The Tender was managed internally by officers through the Shire’s e-tendering procurement system Tenderlink. As required by legislation, an advertisement was placed in the West Australian on the 12 May 2018 and on the Administration Office and Library noticeboards. The submission period was open for the required minimum of 14 days and closed at 12.00pm on the 28 May 2018.

One tender was received by the closing date and this was subsequently evaluated against the RFT compliance criteria. The tender was assessed as compliant.

Value for Money Assessment

In accordance with Council’s Purchasing Policy 2.1.2, officers utilised a value for money assessment to determine the most advantageous tender through a formal evaluation process including three panel members consisting of Shire officers. This included an assessment of several compliance and qualitative criteria. Qualitative criteria considered critical to this project were:

· Relevant Experience – 20%

· Key Personal & Experience – 15%

· Demonstrated Understanding – 35%

· Tenderer’s Resources – 15%

· Price – 15%

A detailed description of the tender evaluation process is included within the confidential evaluation report which is provided for Council’s review and information in Attachment 1. Council is requested to consider the tender response received and it is recommended that Council resolve to adopt the recommendation contained within the confidential evaluation report.

Relevant Budget

The 2018/19 budget includes an allocation of $54,000 to repair the Club’s artificial bowling green, however Officers recommend that an amendment be made in the 2017/18 budget for the total confirmed cost of the work identified through this tender process and related insurance reimbursement that are not currently included in the 2018/19 budget. This results in $122,364 of income and expense budget amendment.

CONSULTATION

Broome Bowling Club

Berry Bowling Systems Pty. Ltd

Local Government Insurance Services

STATUTORY ENVIRONMENT

3.57 Tenders for providing goods or services

(1) A local government is required to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply good or services.

(2) Regulations may make provision about tenders

Local Government (Functions and General) Regulations 1996

11. When tenders have to be publicly invited

(1) Tenders are to be publicly invited according to the requirements of this Division before a local government enters into a contract for another person to supply goods or services if the consideration under the contract is, or is expected to be, more, or worth more, than $150 000 unless subregulation (2) states otherwise.

POLICY IMPLICATIONS

Purchasing 2.1.2

Local Regional Price Preference 2.1.3

FINANCIAL IMPLICATIONS

No budget allocation exists in 2017/18 for this expenditure due to the nature of the natural disaster events being unforeseen. However, there is a $54,000 allocation in the 2018/19 annual budget for repair of the Bowling Green at the Broome Bowling Club. Officers recommend that an amendment be made in the 2017/18 budget for the total confirmed cost of the work identified through this tender process and related insurance reimbursement that are not currently included in the 2018/19 budget. This results in $122,364 of income and expense budget amendment. This will ensure that sufficient budget exists for the full value of the contracts provided as contained in the confidential evaluation report in attachment 1.

As previously mentioned all cost associated with this engagement will be recovered via an insurance claim through LGIS.

RISK

The tender process involved undertaking a risk assessment as part of the process in addition to comprehensive compliance and qualitative criteria. The successful tenderer scored highly in each category.

Berry Bowling Systems Pty Ltd was the company appointed to carry out the initial damage assessment report. Some competitors may see this as an advantage. This was overcome by:

· The Shire directly contacted four other eligible businesses in the market to alert them of the upcoming tender.

· The tender was open to alternate tenders provided they met a minimum product specification.

· Berry Bowling Systems Pty Ltd were best qualified for the initial assessment as they installed the green.

· The procurement process was endorsed by the insurer.

The risk of proceeding with the recommendation in this report is considered low.

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:

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

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

Core asset management to optimise the 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

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

Responsible resource allocation

VOTING REQUIREMENTS

Absolute Majority

REPORT RECOMMENDATION:

That Council:

1. Adopts the recommendation to award the contract to Berry Bowling Systems Pty Ltd at a total contract value of $176,364 (ex GST) subject to any required minor variations as per the confidential evaluation report for RFT18/04 Bowling Green Renewal, Broome Bowling Club as contained within Attachment 1, and

2. Approves a 2017/18 budget amendment for $122,364 (ex GST) to be allocated to account 14295 Insurance Claimable Costs and a corresponding income of equal amount to account 147585 Reimbursement of Insurable Claimable Costs.

(Absolute Majority Required)

Attachments

Evaluation 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)(c) as it contains “a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting”.