Minutes of Ordinary Meeting - 27 September 2018

That Council:

1. Recommends the following applications to the Department of Local Government, Sport and Cultural Industries Community Sporting and Recreation Facilities Fund Annual and Forward Planning grant round 2019/20 for funding, prioritised as follows:

Applicant

Application

Project Funding

Priority

Broome Golf Club

Clubhouse Precinct Redevelopment

(Well planned and needed by Municipality)

Broome Surf Life Saving Club

North West Training Facility

(Well planned and needed by Municipality)

2. Requests the Chief Executive Officer inform the Department of Local Government, Sport and Cultural Industries of Council’s decision in accordance with point 1 above.

Moved: Cr C Marriott Seconded: Cr P Matsumoto

Broome Surf Life Saving Club - CSRFF Forward Planning Grant Application 2019/20 - 2021/22 (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)(iii)) as it contains “a matter that if disclosed, would reveal information about the business, professional, commercial or financial affairs of a person, where the information is held by, or is about, a person other than the local government”.

Broome Golf Club - CSRFF Forward Planning Grant Application 2019/20 - 2021/22 (Confidential to Councillors and Directors Only)

Minutes – Ordinary Meeting of Council 27 September 2018 Page 0 of 1

9.2.1 PARTIAL PERMANENT ROAD CLOSURE – SOUTHERN PORTION OF BROOME-CAPE LEVEQUE ROAD

LOCATION/ADDRESS: Broome-Cape Leveque Road

APPLICANT: Mamabulanjin Aboriginal Corporation and Shire of Broome

FILE: BRO-3/GEN

AUTHOR: Land Tenure Officer

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Development and Community

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 30 August 2018

SUMMARY: At the Ordinary Meeting of Council on 28 June 2018, Council resolved to the taking of land for the dedication and widening of road for the Broome-Cape Leveque Road Project.

Mamabulanjin Aboriginal Corporation (MAC) have entered into a lease arrangement with the Water Corporation for a Gubinge plantation over a portion of Reserve 25716, and a portion of the gazetted, unconstructed section of the Broome-Cape Leveque Road effectively splits the lease area into 2 sections.

This report recommends that Council requests the permanent closure of the relevant portion of the gazetted Broome-Cape Leveque Road to rectify this issue.

BACKGROUND

Previous Considerations

OMC 28 June 2018 Item 9.2.1

OMC 28 June 2018

Council considered a request from MNG Survey, acting on behalf of Main Roads WA, to support the taking of land for the dedication and widening of road for the Broome-Cape Leveque Road Project (Attachment 1).

Taking of this land will result in the creation of a road reserve for the Broome-Cape Leveque Road that is 80m in width and will also correct the historical issue where a portion of the constructed road did not exist in a gazetted road reserve.

At this meeting, Council resolved:

COUNCIL RESOLUTION:

(REPORT RECOMMENDATION)

Moved: Cr D Male Seconded: Cr C Mitchell

That Council agrees to the taking of land, being Lots 305 and 306 on Deposited Plan 414127 and Lots 303 and 321 on Deposited Plan 414124, and its dedication as road under Section 56 of the Land Administration Act 1997.

CARRIED UNANIMOUSLY 5/0

COMMENT

Mamabulanjin Aboriginal Corporation (MAC) have entered into a lease with the Water Corporation for a Gubinge plantation over a portion of Reserve 25716 (Attachment 2), being for the purpose of ‘Water Supply”, vested with the Water Corporation.

Planning approval has been issued for the agriculture-intensive land use to proceed (see Attachment 3) with the condition that the portion of the site which is road reserve must be formally closed under the Land Administration Act 1997 prior to the establishment of the land use in that location.

Permanent closure or partial closure of a dedicated road is by request from Council to the Minister of Lands.

The gazetted Broome-Cape Leveque Road alignment is inconsistent with the constructed road, being located west of the actual constructed road (Attachment 4). The constructed road and gazetted road do not align until approximately 1.8km north of Waterbank Road.

Dedication of the portion of road constructed outside of the dedicated road is being addressed via the Broome-Cape Leveque Road Project.

To rectify the discrepancy where the gazetted road does not align with the constructed road, it is recommended that Council requests the permanent closure of that portion of the Broome-Cape Leveque Road, as depicted yellow in Attachment 4

CONSULTATION

Under section 58 of the Land Administration Act 1997 the local government must advertise the proposed road closure for a period of no less than 35 days.

STATUTORY ENVIRONMENT

Land Administration Act 1997

58. Closure of roads

(1) When a local government wishes a road in its district to be closed permanently, the local government may, subject to subsection (3), request the Minister to close the road.

(2) When a local government resolves to make a request under subsection (1), the local government must in accordance with the regulations prepare and deliver the request to the Minister.

(3) A local government must not resolve to make a request under subsection (1) until a period of 35 days has elapsed from the publication in a newspaper circulating in its district of notice of motion for that resolution, and the local government has considered any objections made to it within that period concerning the proposals set out in that notice.

(4) On receiving a request delivered to him or her under subsection (2), the Minister may, if he or she is satisfied that the relevant local government has complied with the requirements of subsections (2) and (3) —

(a) by order grant the request;

(b) direct the relevant local government to reconsider the request, having regard to such matters as he or she thinks fit to mention in that direction; or

(c) refuse the request.

(5) If the Minister grants a request under subsection (4) —

(a) the road concerned is closed on and from the day on which the relevant order is registered; and

(b) any rights suspended under section 55(3)(a) cease to be so suspended.

(6) When a road is closed under this section, the land comprising the former road —

(a) becomes unallocated Crown land; or

(b) if a lease continues to subsist in that land by virtue of section 57(2), remains Crown land.

POLICY IMPLICATIONS

4.1.7 Register of Public Roads

FINANCIAL IMPLICATIONS

There will be minor costs associated with advertising the proposed road closure and it is anticipated this will be funded from the existing operational budget.

RISK

There is no foreseen risk to the Shire from proceeding with this partial road closure.

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:

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

Council Resolution:

(Report Recommendation)

That Council requests that the Chief Executive Officer:

1. Gives notice of its intention under section 58 on the Land Administration Act 1997 to request the permanent closure of that portion of Broome-Cape Leveque as depicted in yellow in Attachment 4.

2. Advertise this intention in a newspaper circulating in the district, with submissions to be accepted for a period of no less than 35 days.

3. If no submissions are received, to proceed with the partial road closure.

CARRIED UNANIMOUSLY 6/0

1.	Broome-Cape Leveque Road Amendments
2.	MAC Lease Lot 350 & 592
3.	Proposed access to MAC Lease
4.	Proposed permanent partial closure Broome-Cape Leveque Road

Minutes – Ordinary Meeting of Council 27 September 2018 Page 0 of 1

The Chairperson advised that following receipt of additional correspondence some minor additions have been included in this item under the Comment and Risk headings. The item has been updated for the purpose of the Minutes, and the correspondence has been included as Attachment 5.

9.2.2 Request to amend Trading Licence 004/2017 to Sundowner Camels

LOCATION/ADDRESS: Cable Beach

APPLICANT: Sundowner Camels

FILE: COS11.1

AUTHOR: Manager Environmental Health, Emergency and Rangers

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Manager Community and Economic Development

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 15 September 2018

SUMMARY: The Shire has received a written request from an existing Trading Licence holder, Mr Steve Madden of Sundowner Camel Tours (Trading Licence 004/2017), to vary the conditions of his licence to enable the provision of an alcoholic beverage to his customers on Cable Beach.

BACKGROUND

Previous Considerations

OMC 27 October 2016 Item 9.3.2

COMMENT

Current Trading Licences issued to camel tour operators on Cable Beach restrict the service of food and beverages to bottled water only. This restriction is further supported via Schedule 2 of the Shire’s Trading in Public Places Policy, that also restricts beverages to the sale of bottled water only for camel tour operators.

On 7 September 2016 reforms to liquor licencing came into effect (see Attachment 1) that enable accredited tourism businesses to provide alcoholic beverages as part of their business operations with the permission of land managers, in this case the Shire of Broome, without the need to obtain a liquor licence. The aim of these reforms is to assist in reducing regulatory costs, improving tourism products and better meeting the expectations of visitors.

Mr Steve Madden of Sundowner Camel Tours has requested (see Attachment 2) that his Trading Licence conditions (see Attachment 3) be amended, in line with the reforms to liquor licencing for accredited tourism businesses in Western Australia, to enable the provision of a single alcoholic beverage to camel tour participants after they have completed a tour.

The liquor licensing reforms that came into effect in 2016 permit an accredited tourism business, with the consent of the relevant land manager, to provide alcohol to patrons of their services. The alcohol must be included in the tour price and is permitted for both marine and land-based tourism businesses.

The provision of a single alcoholic beverage, in line with all other service restrictions related to the service of liquor in Western Australia, is not considered to have a negative impact upon the surrounding businesses that supply alcohol. It is considered that by providing this service, tour operators would meet the expectations of customers and improve upon their tourism product.

It is recommended that the request to vary Trading Licence conditions be supported and duplicated so that the remaining 2 camel tour operators on Cable Beach are not disadvantaged in any way.

It is noted that each tour operator will be required to obtain an annual approval to consume alcohol on local government property in accordance with the Local Government Property and Public Places Local Law 2016 to be able to offer this service to their guests. Should Council resolve to vary the trading licences as requested, information on this requirement will be passed onto the tour operators.

An email has been received from Mr John Geappen of Red Sun Camels (see Attachment 5) requesting that the new condition in the camel tour operators’ Trading Licences allow for the alcoholic beverage to be served either before or after a camel tour. The wording of the new condition as recommended by officers allows for the alcoholic beverage to be served at the conclusion of a tour.

Given potential risks arising from a person partaking in a tour after consuming an alcoholic beverage, particularly if they have consumed alcohol prior to the tour, it is recommended that the new condition limit the service of the alcoholic beverage to after a tour.

CONSULTATION

Nil

STATUTORY ENVIRONMENT

Trading, Outdoor Dining and Street Entertainment Local Law 2016

2.4 Issue of licence

2.4.4 The local government may vary the terms or conditions of a licence and the licensee must comply with those terms and conditions as varied on and from the date of notification of the variation.

POLICY IMPLICATIONS

Clauses 15 and 16 in Schedule 2 of the Trading in Public Places Policy states that:

15. The following activities may be undertaken in accordance with a trading licence issued for a commercial camel activity:

15.1 camel tours;

15.2 the taking and sale of photographs and camel memorabilia associated with the commercial camel activity to customers undertaking camel tours; and

15.3 the sale of bottled water.

16. A camel operator must not facilitate the provision by any other business of any goods or services (eg. provision of food or drinks) to the operator’s customers on Cable Beach or any other public place, except for:

16.1 to facilitate the provision of medical or other emergency services to customers where required; and

16.2 as part of an event or function approved as in accordance with the Local Government Property and Public Places Local Law 2012.

Therefore, the Policy limits the ability of the camel tour operators to provide any beverages to their customers other than bottled water. As such amending the camel tour trading licences in this way will be a departure from the provisions of the current Policy.

However, as stated above, the amendment to the licences is considered appropriate given that this will enhance the tourism product offered as part of the camel tours.

FINANCIAL IMPLICATIONS

Nil

RISK

The risk associated with granted the requested variation to the trading licence is considered “Low”. There is potential that consumption of alcohol on the beach as part of the tours may be perceived negatively by persons concerned that it could encourage alcohol related harm. The limitation of the service of alcohol to a single beverage to each participant of a camel tour at the conclusion of the tour will mitigate this risk.

Should the conditions of the trading licences be amended as recommended by officers, it is possible that the decision to limit the service of the alcoholic beverage to after the camel tour may be challenged through the State Administrative Tribunal. This risk is considered “Moderate”. It is not possible to mitigate this risk without allowing, through the new condition of the Trading Licences, the alcoholic beverage to be served before or after a tour.

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:

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

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

That Council:

1. Varies Trading Licence 004/2017 in accordance with section 2.4.4 of the Trading, Outdoor Dining and Street Entertainment Local Law 2016 as shown in Attachment 4;

2. Varies Trading Licences 003/2017 (Broome Camels) and 005/2017 (Red Sun Camels) in accordance with section 2.4.4 of the Trading, Outdoor Dining and Street Entertainment Local Law 2016 so they are consistent with the changes to Trading Licence 004/2017 as shown in Attachment 4.

Moved: Cr C Marriott Seconded: Cr C Mitchell

1.	Exemptions to the Liquor Control Act 1988
2.	Email from Mr Steve Madden of Sundowner Camels requesting a variation to his Trading Licence conditions
3.	Trading Licence 004/2017 - Sundowner Camels
4.	Variences to Trading Licence 004/2017 - Sundowner Camels - with tracked changes
5.	Email request from John Geappen of Red Sun Camels - 26.9.18

Minutes – Ordinary Meeting of Council 27 September 2018 Page 0 of 1

9.4.2 MONTHLY STATEMENT OF FINANCIAL ACTIVITY REPORT AUGUST 2018

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: FRE02

AUTHOR: Senior Finance Officer

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Corporate Services

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 31 August 2018

SUMMARY: Council is required by legislation to consider and adopt the Monthly Statement of Financial Activity Report for the period ended 31 August 2018, as required by Regulation 34(1) of the Local Government (Financial Management) Regulations 1996 (FMR).

Council is further provided with a General Fund Summary of Financial Activity (Schedules 2 to 14) which provides comprehensive information on Council’s operations by Function and Activity.

BACKGROUND

Previous Considerations

Council is provided with the Monthly Financial Activity Report which has been developed in line with statutory reporting standards and provides Council with a holistic overview of the operations of the Shire of Broome.

Supplementary information has been provided in the form of Notes to the Monthly Report and a General Fund Summary of Financial Activity, which discloses Council’s Revenue and Expenditure in summary form, by Programme (Function and Activity).

Disclosure and supply of appropriate explanations for variances presented in the Statement of Financial Activity, is mandatory under FMR 34(2)(b) as stated in Policy 2.2.2 Materiality in Financial Reporting.

FMR 34(5) requires a local government to adopt a percentage or value, calculated in accordance with the Australian Accounting Standards (AAS) and Council’s adopted risk management matrix thresholds, to be used in statements of financial activity for reporting material variances.

COMMENT

The 2018/19 Annual Budget was adopted at the Ordinary Meeting of Council on 28 June 2018.

The following are key indicators supporting the year to-date budget position with respect to the Annual Forecast Budget:

Budget Year elapsed 16.99%

Total Rates Raised Revenue 100% (of which 58.98% has been collected)

Total Other Operating Revenue 25%

Total Operating Expenditure 11%

Total Capital Revenue 6%

Total Capital Expenditure 2%

Total Sale of Assets Revenue 0%

More detailed explanations of variances are contained in Note 2 of the Monthly Statement of Financial Activity. The commentary identifies material variations between the expected year-to-date budget position and the position at the reporting date.

Based on the 2018/19 Annual Budget presented at the Ordinary Meeting of Council on 28 June 2018, Council adopted a balanced budget to 30 June 2019.

It should be noted that the Shire of Broome is currently in the process of preparing its Annual Financial Statements. This requires several processes to occur which can affect the Shire’s end-of-year financial position. As these processes are underway, the financial position presented in this report cannot be relied upon as the final position for the Shire of Broome. The final position for the Shire of Broome will be presented to Council as part of the Annual Financial Statements at a later date.

CONSULTATION

Nil

STATUTORY ENVIRONMENT

Local Government (Financial Management) Regulations 1996

34. Financial activity statement report — s. 6.4

(1A) In this regulation —

“committed assets” means revenue unspent but set aside under the annual budget for a specific purpose.

(1) A local government is to prepare each month a statement of financial activity reporting on the sources and applications of funds, as set out in the annual budget under regulation 22(1)(d), for that month in the following detail —

(a) annual budget estimates, taking into account any expenditure incurred for an additional purpose under section 6.8(1)(b) or (c);

(b) budget estimates to the end of the month to which the statement relates;

(c) actual amounts of expenditure, revenue and income to the end of the month to which the statement relates;

(d) material variances between the comparable amounts referred to in paragraphs (b) and (c); and

(e) the net current assets at the end of the month to which the statement relates

(2) Each statement of financial activity is to be accompanied by documents containing —

(a) an explanation of the composition of the net current assets of the month to which the statement relates, less committed assets and restricted assets;

(b) an explanation of each of the material variances referred to in sub regulation (1)(d); and

(c) such other supporting information as is considered relevant by the local government.

(3) The information in a statement of financial activity may be shown —

(a) according to nature and type classification;

(b) by program; or

(c) by business unit.

(4) A statement of financial activity, and the accompanying documents referred to in sub regulation (2), are to be —

(a) presented at an ordinary meeting of the council within 2 months after the end of the month to which the statement relates; and

(b) recorded in the minutes of the meeting at which it is presented.

(5) Each financial year, a local government is to adopt a percentage or value, calculated in accordance with the AAS, to be used in statements of financial activity for reporting material variances.

Local Government Act 1995

6.8. Expenditure from municipal fund not included in annual budget

(1) A local government is not to incur expenditure from its municipal fund for an additional purpose except where the expenditure —

(a) is incurred in a financial year before the adoption of the annual budget by the local government;

(b) is authorised in advance by resolution*; or

(c) is authorised in advance by the mayor or president in an emergency.

* Absolute majority required.

(1a) In subsection (1) —

“additional purpose” means a purpose for which no expenditure estimate is included in the local government’s annual budget.

(2) Where expenditure has been incurred by a local government —

(a) pursuant to subsection (1)(a), it is to be included in the annual budget for that financial year; and

(b) pursuant to subsection (1)(c), it is to be reported to the next ordinary meeting of the council.

POLICY IMPLICATIONS

2.2.2 Materiality in Financial Reporting

FINANCIAL IMPLICATIONS

The adoption of the Monthly Financial Report is retrospective. Accordingly, the financial implications associated with adopting the Monthly Financial Report are nil.

RISK

The Financial Activity report is presented monthly and provides a retrospective picture of the activities at the Shire. Contained within the report is information pertaining to the financial cost and delivery of strategic initiatives and key projects.

In order to mitigate the risk of budget over-runs or non-delivery of projects, the Chief Executive Officer has implemented internal control measures such as regular Council and management reporting and the quarterly FACR process to monitor financial performance against budget estimates. Materiality reporting thresholds have been established at half the adopted Council levels, which equate to $5,000 for operating budget line items and $10,000 for capital items, to alert management prior to there being irreversible impacts.

It should also be noted that there is an inherent level of risk of misrepresentation of the financials through either human error or potential fraud. The establishment of control measures through a series of efficient systems, policies and procedures, which fall under the responsibility of the CEO as laid out in the Local Government (Financial Management Regulations) 1996 regulation 5, seek to mitigate the possibility of this occurring. These controls are set in place to provide daily, weekly and monthly checks to ensure that the integrity of the data provided is reasonably assured.

STRATEGIC IMPLICATIONS

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:

An organisational culture that strives for service excellence

Sustainable and integrated strategic and operational plans

Responsible resource allocation

Effective community engagement

Improved systems, processes and compliance

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

That Council:

1. Adopts the Monthly Financial Activity Report for the period ended 31 August 2018; and

2. Receives the General Fund Summary of Financial Activity (Schedules 2-14) for the period ended 31 August 2018.

1. Chinatown Investment and Development Coordinator Activities

1.	Monthly Financial Statements August 2018
2.	Schedule 2
3.	Schedule 3 - 16

Minutes – Ordinary Meeting of Council 27 September 2018 Page 0 of 1

9.4.3 CHINATOWN REVITALISATION PROJECT SIX MONTH UPDATE

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: PLA94

AUTHOR: Chief Executive Officer

CONTRIBUTOR/S: Manager Community and Economic Development

Chinatown Investment & Development Coordinator

Project Engineer

RESPONSIBLE OFFICER: Chief Executive Officer

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 7 September 2018

SUMMARY: This report seeks to provide Council with an update on the progress made to date on the delivery of the Chinatown Revitalisation Project (CRP) and also seeks Council endorsement of proposed amendments to the Financial Assistance Agreement.

BACKGROUND

Previous Considerations

OMC 26 June 2014 Item 9.3.1

OMC 30 April 2015 Item 9.2.7

OMC 2 June 2015 Item 9.2.5

OMC 27 August 2015 Item 9.3.1

OMC 26 November 2015 Item 9.4.5

SMC 17 June 2016 Item 6.2.1

OMC 25 August 2016 Item 9.1.6

OMC 27 October 2016 Item 10.2

OMC 15 December 2016 Item 9.3.1

OMC 23 February 2017 Item 9.1.2

OMC 25 May 2017 Item 9.3.1

OMC 28 September 2017 Item 9.1.1

OMC 14 December 2017 Item 9.3.1

OMC 14 December 2017 Item 9.2.12

OMC 14 December 2017 Item 9.3.1

OMC 22 February 2018 Item 9.1.1

OMC 22 March 2018 Item 12.1

SMC 13 April 2018 Item 6.2.2

OMC 26 April 2018 Item 9.2.6

SMC 19 June 2018 Item 6.2.1

SMC 15 August 2018 Item 6.2.2

OMC 30 August 2018 Items 12.1, 12.2 & 12.3

At the Special Meeting of Council held 17 June 2016, Council resolved as follows;

COUNCIL RESOLUTION:

(REPORT RECOMMENDATION)

Moved: Cr B Rudeforth Seconded: Cr H Tracey

That Council:

1. Thanks the State of Western Australia for the $10 million grant funding for the Chinatown Revitalisation Project.

2. Thanks Tourism Western Australia for confirmation for the Tourism Demand Driver Infrastructure Grant of $300,000 to be applied towards the Frederick Street/Dampier Terrace Lookout Facility, which forms part of the Chinatown Revitalisation Project.

3. Endorses the Draft Financial Assistance Agreement with the Department of Regional Development and authorises the Shire President and Chief Executive Officer to engross the final documentation as required.

4. Endorses the updated Memorandum of Understanding between the Shire of Broome, Landcorp and Kimberley Development Commission and authorises the Shire President and Chief Executive Officer to engross the documentation as required.

5. Endorses the Chinatown Revitalisation Steering Group Terms of Reference and Governance structure and appoints the Chief Executive Officer to be the Shire’s representative on this group.

6. Requests the Chief Executive Officer to:

(a) Allocate $1.7 million dollars over the 2016/17 and 2017/18 financial years to the Chinatown Revitalisation Project.

(b) Commence procurement of the relevant consultancies together with the project collaborative group in line with the project documentation.

(c) Ensure incentives are included within project tender specifications to encourage submissions from and/or involvement of local businesses where appropriate.

(d) Provide six monthly updates on the project for Council’s information.

CARRIED UNANIMOUSLY 7/0

In accordance with point 6(d) of the above resolution, six monthly updates on the CRP are to be provided to Council. These have been tabled at the Ordinary Meetings of Council (OMC) held 23 February 2017, 28 September 2017 and 22 February 2018. This report seeks to provide Council with a further six-monthly update. It is also noted that the Chinatown Steering Committee (CSC) meeting minutes have been provided to Council each month through the Councillor Information Bulletin with feedback sought for project specifics from Councillor workshops or formally where need be through meetings of Council.

The original Financial Assistance Agreement (FAA) between the WA Department of Primary Industries and Regional Development (DPIRD) and the Shire of Broome (the Shire) provides for an investment of $10M by the State for the delivery of various key projects. The Shire and Tourism WA have also allocated a further $2M and $700K respectively, resulting in a total project spend of $12.7M. These Projects are as follows:

Item of Expenditure	Budget	Source of Funds
Gray Street Extension Feasibility & Technical Studies	$1,000,000	Royalties for Regions ($745,000) Shire of Broome ($255,000)
Roebuck Bay Reconnection and Coastal Protection Feasibility	$1,000,000	Royalties for Regions ($855,000) Shire of Broome ($145,000)
Cultural Centre Feasibility	$850,000	Royalties for Regions Tourism WA ($100,000)
Dampier Terrace Renovation	$3,800,000	Royalties for Regions
Carnarvon Street Upgrades	$2,725,000	Royalties for Regions
Frederick Street Lookout	$900,000	Shire of Broome ($600,000) Tourism WA ($300,000)
Tourist Rest Facilities	$700,000	Shire of Broome
Connection of Dampier Terrace and Terrace Street	$600,000	Shire of Broome ($300,000) Tourism WA ($300,000)
Enhanced laneways strategy and funding program	$290,000	Royalties for Regions
Chinatown Commercial Liaison Officer (over 2 years) and funding program	$600,000	Royalties for Regions
Administration/Audits/Reporting	$235,000	Royalties for Regions
Total Budget	$12,700,000

Following the engrossing of the FAA, an amount of $10 million was deposited into the Shire’s account. These funds were then deposited into a Western Australian Treasury Corporation account and are transferred across in agreed lump sums upon successful achievement of project milestones set out in the agreement. The aforementioned projects were originally scheduled across two years with deliverable milestones allocated across this period.

The first milestone was the signing of the FAA with DPIRD which occurred on 27 June 2016 and released $500,000 of funding. In accordance with the adopted Business Case and the FAA, the first items of expenditure incurred in 2016/17 were the recruitment of a Chinatown Investment and Development Coordinator (CIDC) and the engagement of a Project Director consultancy (DEVMAN).

Further to this, the Communications and Engagement consultancy team were also engaged by LandCorp on 12 September 2016. This was awarded to the partnership of RFF Australia and the Broome Chamber of Commerce and Industry (BCCI). The role of this consultancy is to manage all external communications for the suite of projects forming part of the CRP and manage community and stakeholder engagement for the feasibility projects, with the exception of the Kimberley Centre for Culture, Art and Story.

The second milestone date was 31 December 2016 and required the submission of finalised project plans for all ten sub-projects, recruitment of the CIDC, and the completion of the CIDC Two Year Activity Plan and preliminary community engagement on the Kimberley Centre. These milestone requirements have been met and further funds of $1.3M were released in February 2017.

A team of specialist consultants have also been engaged by LandCorp to deliver the feasibility studies and/or design and construction projects detailed in the Chinatown Revitalisation Business Case. These consultants include:

o Place Making Consultant – The Planning Group (TPG);

o Environmental Consultant – Strategen;

o Civil Engineer – TABEC;

o Public Realm Architecture – UDLA;

o Research and Engagement – Simon McArthur & Associates;

o Engagement – NBY;

o Environmental Assessment – GHD;

o Coastal Design – MP Rogers;

o Traffic Assessments – DVC; and

o Gray Street Reclamation Valuation – Colliers.

The third milestone date was 30 June 2017. At the OMC held 25 May 2017, Council endorsed proposed amendments to some of the milestones defined within the FAA (The revised FAA is Attachment 1 to this report). The amendments related solely to the wording around the deliverables and did not impact milestone dates and payments themselves, resulting in a nil impact on the budget cash flow for the project. These milestone requirements were also met with further funds of $4.75M released in September 2017. A review and reconciliation of milestone payments identified that a further $200K was due for release at this time, however has not been transferred to date. A payment request for this transfer has been pending with DPIRD for several months, however it has been agreed to await finalisation of a further amendment to the FAA prior to payment.

The fourth milestone date of 31 December 2017, included four milestones. The milestone relating to the 12-month review of the CIDC position was met, triggering a payment of $200K, however as outlined above, this payment was also placed on hold. At the OMC held on 22 February 2018, Council endorsed proposed amendments to the other three milestones. The milestone relating to the Enhanced Laneway and Grant Funding Program was revised to remove the requirement for the construction of a new laneway and replaced with the need for the first round of laneway matching grants to have been advertised and awarded. This revised milestone has been met. The most significant amendment however, was in regard to the Dampier Terrace and Carnarvon Street Upgrades. Tender documentation was originally earmarked for completion by 31 December 2017, triggering a $2M release of funds. This milestone was amended to 30 April 2018.

The revised FAA as endorsed by Council in February 2018 has been progressed for finalisation with officers from DPIRD however, given the most recent procurement process for the main construction works in Dampier Terrace and Carnarvon Street would impact budget allocations within the FAA, it was agreed to finalise the FAA with the inclusion of these revised budgets based on contract award. The draft FAA has now been updated to reflect these more accurate project budgets and recognise the additional Shire contribution to the Project. Council is requested to endorse the revised FAA.

This report will provide more detail on progress of the broader Chinatown Revitalisation project. A copy of the minutes of the Chinatown Stakeholder Reference Group meetings held between March and August 2018 are also tabled for Council’s information.

COMMENT

A six-monthly update is provided below and has been summarised by:

1. CIDC activities;

2. Design and Constructions Projects;

3. Feasibility Projects; and

4. Chinatown Stakeholder Reference Group Minutes

Over the last six months the CIDC has undertaken the following:

Community & Trader Engagement

· Trader Marketing Workshop: 3 September 2018 - how to market your business

· Johnny Chi Lane (JCL) Trader Meeting to assist in creating a JCL Committee

· CIDC Towns Walks, General and HQ Correspondence, details:

o Approximately one town walk per fortnight, visiting 20-40 traders per visit

o Correspondence with approximately 20 traders or owners per month (phone, email, meeting)

o Approximately 10 visitors at HQ per week with queries such as requesting project info, concerns, general interest and directions.

CIDC led Initiatives

· Easter Eggstravanganza and Sale – 31 March 2018. Est. 400 attendees

· Relocated Project HQ and hosted:

o Hive Handmade;

o WA Country Health Service – Boab Tree Project Exhibition; and

o Morning Tea Meet and Greet – Shopkeeper Sculpture artist, Nic Compton.

· Friday late night trading:

o 27 April 2018, est. attendees 500;

o 25 May 2018, est. attendees 500;

o 22 June 2018, est. attendees 300;

o 20 July 2018, est. attendees ; and

o 24 August 2018, est. attendees 300.

· Tales of the Terrace:

o 22 June 2018, 15 attendees;

o 20 July 2018, 38 attendees; and

o 3 August 2018, 45 attendees.

· Sand Sculpture WA – 29 June- 1 July 2018. Over 3,000 people viewed the work over the 3 days, 11,000 people viewed it on Facebook and it was shared across all social media channels. 60 children came down for the workshops and 20 adults (fully booked) for the professional development workshop.

· Dampier Terrace Ladies’ Night – 3 August 2018, est. 600 attendees across 2.5 hours.

Grants Support and Project Development

Johnny Chi Lane Refurbishment

· Engawa are designing and managing upgrade

· Status: Ongoing

Aarli Bar Redevelopment

· Design Development with Streetscape design team

· Status: Complete

Incredible Edible Broome

· Not all money spent so engaging carpenter to make custom planter boxes for Broome Gallery and Red Cross

· Status: Ongoing

Signage and Relocation of Azure Beach

· Application was not resubmitted for review

· Status: Complete

Betty’s Frock Shop Refurbishment

· Status: Complete

T.B Eliies Store Refurbishment Artwork

· Status: Complete

· Request has been submitted for $500 to assist towards external mural, currently being considered.

Chinatown Historical Models

· Status: Complete

Goolari Media Chinatown Stories App Development

· Waiting for re-submission for altered project scope.

· Status: Ongoing

Broome Chinese Community Inc

· Waiting for re-submission for altered project scope.

· Status: Ongoing

Administration

· CIDC will now work with land holders to develop new laneways and enhance current ones. Under consideration:

o Sam Su Lane - Identities of Broome

o Green Mango Laneway

o Shiba Lane

o Little Johnny Chi Lane – Laneway Mural

· Regular updates and reporting as required.

· RFQ for Chinatown Placemaking Plan awarded. Ongoing management and stakeholder consultation.

· Attending Superintendent/Downer/Shire meetings as required for stakeholder communications. Replacing role of ‘Clerk of Works’ until Downer appoints a community representative.

· Communications

o Attend monthly strategy meetings with Communications consultant and PCG

o Assist with social media postings

o Interview with ABC Radio

2. Design and Construction Projects

In May 2018 consultants Harby Studios were appointed following a procurement process to undertake communications for the Chinatown Revitalisation Project through to the end of 2018. Project communications were previously contracted to consultants RFF Australia in association with the Broome Chamber of Commerce, but this contract was discontinued by mutual agreement between the consultants and the Project Partners.

Carnarvon Street and Dampier Terrace Upgrades

The draft Chinatown Masterplan was developed following extensive consultation with Chinatown traders, landowners and other key stakeholders. It was advertised for public comment for 21 days following endorsement at the OMC on 28 September 2017.

The Masterplan aims to re-establish Chinatown as the ‘heart and soul’ of Broome with proposed improvements to draw the community and visitors to the precinct, and stimulate economic activity.

The 21 day advertising period closed on 30 October 2017. Overall the Masterplan was well received during the public consultation period. The Masterplan provides guidance to deliver positive public realm improvements and lay the foundations for projects to move from theoretical to practical implementation.

The number of submissions received demonstrated the high community interest in the project and highlighted the willingness of residents and traders alike to help shape the future of Broome’s iconic town centre. There were a number of comments/suggestions that were tabled for consideration in the preparation of the detailed design, however did not trigger any significant amendments to the Masterplan.

Work commenced on design development with detailed design being completed in June 2018. Attachments 2 and 3 provide an overview of the major landscaping elements for Dampier Terrace and Carnarvon Street and Attachment 4 the plans for the proposed Male Oval carpark.

The proposed improvements include:

· A major renovation of Carnarvon Street that will provide expansive, shaded, engaging pedestrian areas and event spaces, with less bitumen and wider footpaths resulting in amended parking and improved cross-street access. The upgrades will improve amenities such as signage, lighting, street furniture and public art, and WiFi will be available across Chinatown.

· Upgrades to Dampier Terrace including widening footpaths to create space for alfresco dining. Much-needed shade would be provided by additional tree planting and structures to create a welcoming space for pedestrians.

· Replacement of car parking removed from Carnarvon Street and Dampier Terrace

Following a review of the pre-tender estimates of costs the CSC resolved the following at a meeting held 14 May 2018:

To proceed with tendering the following three works packages:

SP1 Carnarvon Street

SP2 Dampier Terrace

SP3 Male Oval Carpark

WALGA were subsequently engaged by the Shire of Broome to manage the procurement process for RFQ 18/56 Chinatown Revitalisation Project. The Request for Quotation (RFQ) was structured into the aforementioned 3 separable portions to provide flexibility around the award of the contract. Given the value of the project and the potential for reputational risk to the Shire of Broome if the procurement process was compromised, a probity advisor was also engaged. The RFQ opened on 10 June 2018 and closed on 23 July 2018 with 3 respondents submitting offers to undertake the works.

The Evaluation Panel made a series of value judgements based on the capability of the Respondents to complete the Requirements and a number of factors were considered including:

a) the qualitative ranking of each Respondent; and

b) the pricing submitted by each Respondent.

The qualitative criterion and the respective weighting follows:

A. Construction Programme and Methodology – 25%

B. Key Personnel – 15%

C. Past Performance – 25%

D. Stakeholder Management – 10%

E. Local Development – 20%

F. Indigenous Engagement – 5%

At the Special Meeting of Council held on 13 August 2018, Council were presented the Evaluation Panel’s Report for consideration and resolved the following:

Council Resolution:

Moved: Cr B Rudeforth Seconded: Cr C Marriott

That Council:

1. Note the recommendation report RFQ 18-56 Chinatown Revitalisation Project as presented in Attachment 4;

2. Accepts the Quote submitted by Downer EDI Works Pty Ltd as the most advantageous to form a Contract for Separable Portions One and Two;

3. Authorises the Chief Executive Officer to commence negotiations with said contractor and seek Council endorsement of final project scope and budget prior to entering into a Contract for the Works; and

4. Request the Chief Executive Officer to investigate opportunities for Shire in kind contributions towards the Chinatown Revitalisation Project.

CARRIED UNANIMOUSLY 6/0

Reason – to investigate cost savings through Shire in kind services.

Negotiations between Downer and the Evaluation Panel subsequently identified a number of minor variations which could achieve savings. In the first instance the following opportunities were identified:

(a) Award SP1 - Carnarvon Street and SP2 - Dampier Terrace only; and

(b) Works to be suspended during January and February to reduce the impact of wet-season on the project.

These minor variations were endorsed by the CSC at its Special Meeting held 24August 2018 in addition to the following minor variations:

(d) The Shire to provide 2 construction workers and a small truck for general site works and pedestrian management;

(e) Landfill costs to be waived by the Shire;

(f) Construction water to be free-issued by the Shire;

(g) Kimberley Sandstone Block Wall SW01 / SW03 to be changed to Kimberley Sandstone Wall Cladding;

(h) Grey cement with 4% Terracotta Oxide to replace Crème Cement with 4% Terracotta oxide; and

(i) Revised Program to include works during the Term 3 School Holiday (stakeholder expectations to be managed by Shire).

Council formally considered this recommendation from the CSC at the OMC held 30 August 2018 and resolved the following:

Council Resolution:

(Report Recommendation)

Moved: Cr C Mitchell Seconded: Cr C Marriott

That Council:

1. Endorses the following minor variations to Request for Quote 18/56:

a) Works to be suspended during January and February to reduce the impact of wet-season on the project.

b) Soft landscaping installation and maintenance to be undertaken by the Shire of Broome Parks and Gardens Department.

c) The Shire to provide two construction workers and a small truck for general site works and pedestrian management.

d) Landfill costs to be waived by the Shire.

e) Construction water to be free-issued by the Shire.

f) Kimberley Sandstone Block Wall SW01 / SW03 to be changed to Kimberley Sandstone Wall Cladding.

g) Grey cement with 4% Terracotta Oxide to replace Crème Cement with 4% Terracotta oxide.

h) Revised Program to include works during the Term 3 School Holiday (Stakeholder expectation to be managed by Shire).

2. Authorises the Chief Executive Officer to enter into a contract with Downer EDI Pty Ltd for Separable Portion One (Carnarvon Street) and Separable Portion Two (Dampier Terrace) for a sum of $6,994,731 (excluding GST);

3. Approves a budget amendment of $843,153 to be allocated from Account 121960 Road Reserve to accounts 1367407 - Dampier Tce Upgrade and 1367408 - Carnarvon St Upgrade;

4. Authorises the Chief Executive Officer to make further minor variations to assist with reducing Project costs;

5. Rejects all quotes to undertake Separable Portion Three (Male Oval Carparking); and

6. Requests the Chief Executive Officer to identify opportunities to deliver the Sam Su Lane drainage, Male Oval Carpark and Short Street Drainage projects as one scope of works in the 18/19 financial year.

CARRIED UNANIMOUSLY BY ABSOLUTE MAJORITY 7/0

Further minor variations to the scope have also been identified including:

· Coordination of asphalt works with existing Shire Program.

· Review of cobblestone size and grouting methodology.

· Material substitution for Dampier Terrace decking.

· Johnny Chi Lane pedestrian crossing alignment and tie-in.

These minor variations are proposed to be resolved through normal contractual mechanisms and are anticipated to deliver additional cost savings to this project.

It should be noted that Separable Portion Three (Male Oval Carpark) has been excluded from the approved scope of works. This project has a significant drainage component which has been highlighted in recent modelling for the Short Street Drainage upgrade project. It is intended to deliver this scope of works in conjunction with the Short Street drainage project in Q4 18/19 to provide efficiencies to both projects. Council approval will be sought for additional funds to complete these works in due course.

With the main construction contract now in place, there is clarity on budget implication for the broader CRP. As such, the FAA has been revised to recognise the budget allocations required in addition to the further cash contribution of the Shire of Broome. Milestones for the completion of tender documentation for both the Dampier Terrace and Carnarvon Street upgrades are also proposed to be adjusted to coincide with the completion of these tasks to 30 June 2018 and the milestone for construction completion is proposed to be pushed out to 30 June 2019 (albeit current schedules indicate completion by end of April 2019). At the time of writing this report, CSC endorsement was pending, however the revised Draft FAA (Attachment 5) is presented for Council consideration of endorsement, subject to minor amendment.

Lookout Project

Concept designs for the Roebuck Bay Lookout were tabled at the CSC meeting on 6 December 2017 and detailed designs were endorsed 29 January 2018. The procurement process commenced on 8 February 2018 and following initial rejection of all tenders received, Council awarded the contract for the construction works to Roadline Civil Construction Pty Ltd at the SMC held 13 April 2018. The scope of works includes construction of a lookout platform to provide elevated views over Roebuck Bay. The project also includes the installation of lighting, earthworks, footpath construction and hard landscaping improvements. Engagement has also progressed with Yawuru to incorporate public art and interpretation into the lookout structure and the Shire has committed a further in-kind contribution through the installation of the soft landscaping works.

Roadline and their subcontractors commenced construction on 25 June 2018 and the works are currently approximately 50% complete. The early stages of construction focused on earthworks for the ramped walkway up to the Lookout, while the steel work was fabricated off site. Recent progress has included installation of the primary steel work and concrete retaining structure which now provides a good impression of how the final Lookout structure will appear. In coming weeks, the earthworks will be completed, the concrete decking slab and walkways will be poured, followed by installation of the lighting and finalisation of the landscaping. There have been some minor delays in the works due to difficulties in preparing the formwork for the large concrete retaining structure and procurement of some of the lighting components. The project is expected to be completed by the end of October.

Public Art

Further to the Masterplan, a Draft Chinatown Public Art and Interpretative Strategy was also presented to the OMC held on 17 December 2017. The development of this Strategy reflected the previous direction provided by the Arts, Culture and Heritage Advisory Committee and Council in relation to the incorporation of public art, heritage values and multiculturalism into the CRP. 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.

Following endorsement by Council, the Strategy was released for public comment between 15 February 2018 and 9 March 2018. No submissions were received, and Council formally adopted the Strategy at the OMC held on 26 April 2018.

Planning for the detailed design of streetscape upgrades within Chinatown have considered prioritisation of public art and interpretative projects to achieve the best outcomes in parallel with the balance of works. Some of the works included within the project scope include:

The following public art and interpretation projects from the Chinatown Public Art and Interpretative Strategy were identified to be delivered from the available budget:

· Chinatown Entry Statement

· The Shop Keepers

· Interpretation Trail

· Multi-lingual Signs

· The Pearling Story Timeline

· Huabiao

· Sculpture – The Start of the Pearling Story

· Custom Items (including relocation of existing works)

Following the completion of the Chinatown Revitalisation Project, the Strategy will provide Council with an important resource to guide future public art and interpretation works within the precinct, and aid in seeking external funding to deliver identified initiatives

3. Feasibility Projects

Gray Street Extension and Roebuck Bay Reconnection

As part of the last 6 monthly update to Council reported at the 28 September 2017 OMC, it was advised that a fatal flaw analysis had been undertaken on both the Gray St Extension and Roebuck Bay Reconnection projects and project cessation had been recommended.

Kimberley Centre for Culture, Art and Story

Following the previous formal update provided to Council, this project has made continued progress – most notably including the development of an advanced draft feasibility study and business case for the Kimberley Centre for Culture, Art and Story. Key elements completed in the past six months include:

· Further development of a proposed project outline, which may include tourism product development, curatorial development and acquisition of funding prior to proceeding with a potential centre.

· A number of working group meetings were held to finalise a draft business case. Yawuru are currently undertaking a final review of this document, and it is also intended for a peer review to be undertaken prior to finalisation and presentation to the Steering Committee (and subsequently Council) for final endorsement.

· Options to progress the project following the acceptance of the final business case were also drafted by the Working Group and will be presented to the Steering Committee.

· Project updates have continued to be published on the project’s website and emailed to key stakeholders to key them abreast of developments.

4. Chinatown Stakeholder and Community Reference Group

During development of the governance structure for the CRP, the following structure was endorsed:

The Chinatown Stakeholder and Community Reference Group was established at the OMC held 27 August 2015. The first meeting of the Group was held on 4 March 2016 and meetings have occurred for the most part on a monthly basis since then. Minutes from each meeting held during the update period (held in February and July) are contained in Attachment 6 of this report and provided for Council’s information.

The Terms of Reference state that the purpose of the Chinatown Stakeholder and Community Reference Group is to:

1. Provide input and feedback to the Project Control Group and Council on the Revitalisation of Chinatown.

2. Ensure the community and key stakeholders are appropriately engaged in the design and delivery of projects as part of the Chinatown Revitalisation.

3. Act as a conduit between the Project Working Group and the community and traders and landowners in Chinatown.

In brief, the Group has been presented the following information and/or deliberated on the following initiatives since the previous six-monthly update:

· Presentation on the Kimberley Centre Prefeasibility Outcome Update;

· Updates from the Project Control Group;

· Construction Project information and updates including:

o Detailed design;

o Additional grant funding opportunities to deliver future stages of works; and

o Tender updates.

· Presentations from the Communications consultant; and

· Presentations from the CIDC;

Council is requested to note the minutes of these meetings.

CONSULTATION

Kimberley Development Commission

Landcorp

Nyamba Buru Yawuru Ltd

Chinatown Stakeholder and Reference Group

Chinatown Traders

Chinatown Land Owners

Tourism WA

STATUTORY ENVIRONMENT

Local Government Act 1995

POLICY IMPLICATIONS

Nil

FINANCIAL IMPLICATIONS

At the SMC held on 17 June 2016, Council resolved to:

(a) Allocate $1.7 million dollars over the 2016/17 and 2017/18 financial years to the Chinatown Revitalisation Project.

An additional $300K was also allocated to the Frederick Street/Dampier Terrace Link sub-project.

The Terms of Reference for the Steering Group includes responsibility;

- To approve and manage the release of funds in accordance with agreed budget, process, timelines and milestones within each project and within standard government accountability guidelines;

In reference to the original Project Budget of $12.7M, Total Actual Expenditure to 8 August 2018 is $3,760,456.

RISK

The Governance Agreement and Terms of Reference for the CRP have been developed with high regard for the risks associated with the project as outlined in the report considered by Council at the SMC held 17 June 2016.

There is a risk that businesses could be negatively impacted during the construction period. The Steering Committee is working closely with Downer EDI, analysing the construction methodology in significant detail to ensure these impacts are minimised.

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

Accessible and safe community spaces

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 preserved, unique and significant historical and cultural heritage of Broome

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

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

Effective community engagement

Improved systems, processes and compliance

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

That Council:

1. Notes the progress achieved to date in the delivery of the Chinatown Revitalisation Project as outlined in this report;

2. Notes the minutes of the Chinatown Stakeholder and Reference Group meetings as attached;

3. Endorses the attached revised Draft Financial Assistance Agreement, as provided in Attachment 5 to this report and authorises the Shire President and Chief Executive Officer to engross the necessary documentation with any minor amendments required.

Moved: Cr C Mitchell Seconded: Cr B Rudeforth

1.	Revised FAA May 2017
2.	Landscape Masterplan
3.	Landscaping Cross Section Plan
4.	Male Oval Car Parking Layout
5.	Draft Revised FAA September 2018
6.	Minutes of CSCRG

Minutes – Ordinary Meeting of Council 27 September 2018 Page 0 of 1

9.4.4 MINUTES OF THE JOINT MEETING OF THE KIMBERLEY ZONE OF WALGA AND KIMBERLEY REGIONAL GROUP HELD 3 SEPTEMBER 2018

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: OGS03 & RCG01

AUTHOR: Executive Assistant to the CEO

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Corporate Services

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 11 September 2018

SUMMARY: This report presents for Council endorsement the Minutes from the Joint Meeting of the Kimberley Zone of WALGA and Kimberley Regional Group held on 3 September 2018.

BACKGROUND

Previous Considerations

A copy of the minutes from the meeting held 3 September 2018 between members of the Kimberley Zone of WALGA (Zone) and Kimberley Regional Group (KRG) is attached for Council consideration (Attachment 1 - Kimberley Regional Group Minutes 3 September 2018).

As a result of a past decision of the group, both the Kimberley Zone and KRG meetings are joined.

It should be remembered that the Kimberley Zone of WALGA is a group established to represent regional issues to the State Council of the Western Australian Local Government Association (WALGA). This group includes the four Kimberley Shires in addition to the Shires of Christmas Island and Cocos Keeling Islands.

The KRG is a group defined through a deed of agreement between the four Kimberley local governments with the Minister for Local Government.

The Shire of Broome accepted the Secretariat role for the Kimberley Zone / KRG late in 2017, with the formal transition to Secretariat finalised in December 2017.

COMMENT

The minutes and respective background information are attached to this report and the following comments are made in relation to the resolutions passed by the Group. Additional recommendations have been made where necessary for Council’s consideration.

8.1 STATE COUNCIL MEETING AGENDA AND PRESIDENT’S REPORT SEPTEMBER 2018

The State Council Agenda and President’s Report for the meeting held on 7 September 2018 was received on 15 August 2018 and is attached for Council’s information (Attachment 2 – Kimberley Zone Meeting Attachments – 3 September 2018). A copy of the summary minutes from the State Council meeting held 7 September 2018 is not attached to this report as they have not yet been received.

KIMBERLEY ZONE OF WALGA RESOLUTION:

(REPORT RECCOMENDATION)

That the Kimberley Zone of WALGA notes the State Council Meeting Agenda and President’s Report.

Moved: Cr Malcolm Edwards Seconded: Cr David Menzel

For: 4

Against: 0

9.1 2018/19 KIMBERLEY REGIONAL GROUP BUDGET - TANAMI ROAD BUSINESS CASE AMENDMENT

This report presented a proposed budget amendment to facilitate the development of a Tanami Road Business Case as requested at the 31 July 2018 Kimberley Regional Group meeting.

The Draft 2018/19 Kimberley Regional Group (KRG) Budget was presented to the KRG for adoption at the 31 July 2018 KRG meeting. The following resolution was passed:

KIMBERLEY REGIONAL GROUP RESOLUTION:

(REVISED REPORT RECOMMENDATION)

That the Kimberley Regional Group:

1. Endorse the 2018/19 Kimberley Regional Group Budget;

2. Support the development of a business case for the Tanami Road; and

3. Request the Secretariat provide a proposed budget amendment for the Tanami Road Business Case at the next meeting.

Moved: Geoff Haerewa Seconded: David Menzel

FOR: 4

AGAINST: 0

(ABSOLUTE MAJORITY REQUIRED)

Officers sought indicative costs for the project and based on similar works undertaken recently propose an allocation of $70,000 from the KRG surplus to fund the initiative. This will reduce the overall KRG surplus from $218,691 to $148,691.

At the meeting members from the Shire of Halls Creek advised that Main Roads representatives had since advised that they would progress a business case however details were yet to be clarified. It was decided to retain the proposed budget amendment however to defer the procurement process until further detail was provided by Main Roads.

KIMBERLEY REGIONAL GROUP RESOLUTION:

That the Kimberley Regional Group:

1. Endorses a $70,000.00 budget amendment to the Kimberley Regional Group 2018/19 Budget for the development of a Tanami Road business case;

2. Request the secretariat liaise with Main Roads to determine the proposed scope of the proposed business case with a report to be presented to the group at a later stage to consider the progress of a Kimberley Regional Group business case.

Moved: Cr Malcolm Edwards Seconded: Cr David Menzel

For: 4

Against: 0

9.2 JOINT KIMBERLEY – NORTHERN TERRITORY FORUM

The Joint Kimberley - Northern Territory Forum is scheduled to be held in Broome on the 3 and 4 December 2018. This report was presented to KRG members to allow adequate time for planning and marketing and presented timeframes and themes for consideration.

It was resolved to move the meeting to Darwin as it was considered more likely to attract WA and NT participants and speakers o the forum.

KIMBERLEY REGIONAL GROUP RESOLUTION:

(REPORT RECOMMENDATION)

That the Kimberley Regional Group:

1. Discuss, refine and adopt the outline program for the Kimberley - Northern Territory Forum in Darwin in December;

2. Underwrite deposit and marketing costs for the event based on a budget which returns a deficit of no greater than $20,000; and

3. Authorise the Secretariat to progress the program and invite relevant speakers within the approved framework.

Moved: Cr David Menzel Seconded: Cr Geoff Haerewa

For: 4

Against: 0

9.3 REGIONAL WASTE TAG MEETING MINUTES – 23 AUGUST 2018

This report presented the minutes from the Regional Waste TAG meeting held 23 August 2018. A copy of the minutes are attached for Council’s information (Attachment 2 – Kimberley Zone Meeting Attachments – 3 September 2018).

KIMBERLEY REGIONAL GROUP RESOLUTION:

(REPORT RECOMMENDATION)

That the Kimberley Regional Group:

1. Receives the Minutes from the Kimberley Regional Waste Technical Advisory Group Meeting held 23 August 2018; and

2. Invites members of the Kimberley Regional Waste Technical Advisory Group to attend the 12 October Joint Kimberley Zone and Kimberley Regional Group Meeting, noting that member Councils will be required to fund all related travel and accommodation costs.

Moved: Cr Geoff Haerewa Seconded: Cr David Menzel

For: 4

Against: 0

9.3 CONSULTANT REPORT JULY – AUGUST 2018

The Kimberley Zone of WALGA (Zone) and the Kimberley Regional Group (KRG) appointed ATEA Consulting on 22 July 2018 to perform a consultancy Executive Officer role. The Executive Officer consultancy provides the Chairman and members of the Zone and KRG with high level executive support and leads the development of projects derived from the KRG Strategic Community Plan and Regional Business Plan.

This report provided members with an overview of the activity undertaken by ATEA Consulting in the period to 21 August 2018.

KIMBERLEY REGIONAL GROUP RESOLUTION

(REPORT RECOMMENDATION)

That the Kimberley Regional Group notes the Executive Consultant Report for July - August 2018.

Moved: Cr Geoff Haerewa Seconded: Cr Malcolm Edwards

For: 4

Against: 0

CONSULTATION

Nil.

STATUTORY ENVIRONMENT

Local Government Act 1995

POLICY IMPLICATIONS

Nil.

FINANCIAL IMPLICATIONS

As a member of the Kimberley Regional Group the Shire of Broome commits funds to regional initiatives by way of a financial contribution towards the group. The budget forecasts a member contribution of $53,000. $55,000 has been allocated to Kimberley Zone Member Contributions within the Shire’s 2018/19 Budget.

Historically members have also contributed “seed funding” to allow the group to undertake priority projects identified within the KRG Regional Business Plan. As there is an identified surplus this seed funding contribution is not required in 2018/19.

RISK

There is minimal risk associated with the recommendation of this report to the Shire of Broome.

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

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

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:

An organisational culture that strives for service excellence

Sustainable and integrated strategic and operational plans

Responsible resource allocation

Effective community engagement

Improved systems, processes and compliance

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

That Council receives and endorses the resolutions of the Kimberley Zone of WALGA / Kimberley Regional Group as attached in the minutes from the Joint Meeting held 3 September 2018 en bloc.

CARRIED UNANIMOUSLY 6/0

12. Business of an Urgent Nature

1.	Kimberley Regional Group Minutes 3 September 2018
2.	Kimberley Zone Meeting Attachments - 3 September 2018

Minutes – Ordinary Meeting of Council 27 September 2018 Page 0 of 1

The Chairperson advised that she had accepted the following item as Business of an Urgent Nature.

12.1 LEASE DISPOSAL TO THE MINISTER FOR WORKS | PORTION OF RESERVE 29093

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: Res29093

AUTHOR: Property and Leasing Senior Officer

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Infrastructure

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 10 September 2018

SUMMARY: The Minister for Works (the Minister) has expressed interest in leasing 7 Barker Street, Broome (Portion of Reserve 29093 – ‘The Premises’). The Minister is seeking to start a lease from 15 October 2018 for an initial term of four years. Rent to commence at Market Value plus outgoings. The department occupying the premises will be the Department of Justice – Adult Justice.

BACKGROUND

The subject tenancy is situated at 7 Barker Street, Broome – portion of Reserve 29093. It comprises a freestanding single level office building which was formerly utilised and purpose-constructed as the Shire of Broome offices and Council Chambers. The tenancy fronts both Barker Street and Weld Street occupying a corner position which provides exposure to passing vehicle and pedestrian traffic. See attachment 1

The Reserve is vested with the Shire of Broome for the purpose of ‘municipal office site’, with Power to Lease (or sublease or license) for the designated purpose for the whole or any portion thereof for any term not exceeding 21 years from the date of the lease, subject to approval in writing from the Minister of Lands being first obtained to each and every lease. Pursuant also to section 19 of the Land Administration Act 1997.

Until recently Reserve 29093 was occupied by staff from the Shire’s Infrastructure Directorate. Towards the end of 2017, the Infrastructure Directorate staff at Barker Street office relocated to the main Shire Administration Office, leaving the Barker Street Offices vacant.

Officers commenced an expression of interest campaign in February 2018; despite numerous communications with key stakeholders the Shire received no formal interest until 4 September 2018. On this date a letter was received from LPC Cresa Pty Ltd, the appointed tenant representative for the Minister of Works, Department of Justice (Adult Justice) to commence a tenancy from 15 October 2018 for an initial term of 4 years. See attachment 2

Adult Justice formerly occupied tenancy 10 at Kimberley Regional Offices between 1 June 2009 to 1 June 2017 at which time they relocated to the Broome Prison.

COMMENT

Proposed Lease Terms:

Preliminary negotiations have taken place between the Shire of Broome Officers and LPC Cresa Pty Ltd with the following being offered:

Tenant	Minister for Works
Landlord	Shire of Broome
Permitted Use	Office Accommodation and ancillary uses
Lease Start Date	15 October 2018
Initial Term	Four (4) years
Further term(s)	Two years + a further two years
Rent	At market value $100,520.00 + gst + outgoings
Rent Free / Fit-out Period	Two Months – under negotiation
Rent Reviews	The net rent is to be reviewed annually during the term in line CPI from the first anniversary of the commencement date in accordance with the Consumer Price Index (all Groups Perth). At the commencement of the first Option term, the net rent shall be reviewed to Market rent, with annual CPI increases applied to the first anniversary and the second option, if exercised by the tenant.
Outgoings	All normal building outgoings properly incurred by the landlord are payable by the tenant. This includes but is not limited to: · Electricity · Council Rates and Charges · Building maintenance · Plant and A/C servicing and repairs · Pest inspections and treatments · Water charges · Building Insurance
Cleaning	The tenant will be required to arrange for its own cleaning to the premises – both internally and externally
Parking Bays	The tenant acknowledges that all on-site parking is non-exclusive.

The terms and conditions set out are in-line with other commercial Shire leases. As the tenant is a State Government Department, the lease disposal is considered under Regulation 30 of the Local Government (Functions and General) Regulations 1996, ‘Dispositions of Property to which Section 3.58 of the Act does not apply’.

Rental Valuation and Market Conditions:

On the 11 January 2018 Opteon Property Group were instructed to carry out a rental valuation for budgeting and marketing purposes. They valuation reflected a market rent of $100,520.00 net rent per annum. A letter has been requested from Opteon Property Group requesting the valuation is remain unchanged as of todays date.

The following Market Conditions were noted:

“Commercial 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 over supply is available at present within the market place. Discussions with a number of commercial agents around town have revealed there is limited enquiry / take up of commercial space within the market place at present with landlords trying to hold on to their existing tenants when commercial terms conclude”.

CONSULTATION

Opteon Property Group Pty Ltd

LPC Cresa Pty Ltd

Minister for Works

Government Office Accommodation

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 subregulation (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.

1. [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

A certified valuation has estimated the current net rent at $110,520 per annum. The tenant shall be responsible for the costs the Shire has incurred in obtaining the market valuation and associated fees for drawing up the new lease agreement.

RISK

Leasing to State Governments represents very low commercial risk. Having the tenancy occupied improves security across the site as well has decreasing the Shires costs for building expenses.

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

A built environment that reflects tropical climate design principles and

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

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

Council Resolution:

(Report Recommendation)

CARRIED UNANIMOUSLY 6/0

That Council:

1. Accepts, in accordance with Local Government (Functions and General) Regulations 1996, Regulation 30(2)(b)(i) the request from the Minister for Works to occupy Portion of Reserve 29093 at 7 Barker Street, Broome.

2. Seeks Ministerial approval from the Minister for 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) Initial annual rent in line with market valuation; with annual CPI increases

b) Lease term as follows:

(i) Initial term of four (4) years from 15 October 2018 to 14 October 2022; and

(ii) Option to renew for a further term of two (2) years plus an additional two (2) years.

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 but not limited to:

(i) Pest inspection;

(ii) Emergency service equipment inspection; and

(iii) RCD and electrical inspection.

(iv) Air-Conditioning and plant servicing

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

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