Minutes of Ordinary Meeting

That Cr C Mitchell be granted a Leave of Absence from Council duties for the period 20 May 2019 to 1 June 2019.

5. Confirmation Of Minutes

Council Resolution:

Moved: Cr C Mitchell Seconded: Cr D Male

That the Minutes of the Ordinary Meeting of Council held on 28 March 2019, as published and circulated, be confirmed as a true and accurate record of that meeting.

6. Announcements By President Without Discussion

Nil.

7. Petitions / DEPUTATIONS

Nil.

8. Matters For Which The Meeting May Be Closed

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

Council Resolution:

Moved: Cr M Fairborn Seconded: Cr C Mitchell

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

9.4.1 OBJECTION TO THE RATE RECORD - NON-RATEABLE LAND UNDER SECTION 6.26(2)(G) - RATE EXEMPTION APPLICATION 2018/2019 - BROOME COMMUNITY HOUSING GROUP INC.

Item 9.4.1 and any attachments are confidential in accordance with Section 5.23(2) of the Local Government Act 1995 section 5.23(2)(b) as it contains “the personal affairs of any person”, and section 5.23(2)(d) as it contains “legal advice obtained, or which may be obtained, by the local government and which relates to a matter to be discussed at the meeting”.

Moved: Cr C Mitchell Seconded: Cr D Male

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

Council Resolution:

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

12.2 REQUEST FOR QUOTE 18/56 - CHINATOWN REVITALISATION PROJECT

Item 12.2 and any attachments are 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”.

12.3 REQUEST FOR TENDER 18/09 TOWN BEACH PRECINCT GREENSPACE TENDER

Item 12.3 and any attachments are 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”.

Local Government Act 1995

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

9.1.1 CABLE BEACH POLO FUNDING REQUEST

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: ECI05

AUTHOR: Events and Economic Development Coordinator

CONTRIBUTOR/S: Manager Community and Economic Development

RESPONSIBLE OFFICER: Director Development & Community

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 5 April 2019

SUMMARY: This report seeks Council consideration of a request from Cable Beach Polo Pty Ltd to provide additional funding support for the Cable Beach Polo events scheduled for 16 to 22 May 2019.

BACKGROUND

Previous Considerations

EDAC 5 April 2018 Item 6.2

OMC 26 April 2018 Item 10.4

At the Ordinary Meeting of Council (OMC) held 26 April 2018, Council considered Item 9.2.8 – Events Economic and Tourism Development Program and it is noted that Council resolved:

COUNCIL RESOLUTION:

Moved: Cr B Rudeforth Seconded: Cr C Mitchell

That Council:

1. Supports the following applications within the available funds in the 2018/19 budget, as follows:

a) Ardyaloon Incorporated - to the value of $5000, for the purpose of design, construction or approval fees.

b) Broome Bowling Club - to the value of $4000, for the purpose of event shirts or prizes.

c) Broome Chamber of Commerce - to the value of $12,500, for the purpose of $10,000 for the Kimberley Economic Forum and $2,500 for the Love Broome Expo.

d) Broome Fishing Club - to the value of $5,000, for the purpose of advertising.

e) Broome Turf Club - to the value of $29,800 for the purpose of Banner Hire (In-kind $9,800 plus administration fee of 15%) and entertainment and marketing ($20,000).

f) Cable Beach Polo Pty Ltd - to the value of $13,319, for the purpose of in kind services ($8,319 application fees and venue hire plus administration fee 15%) and Cash ($5,000).

g) Fat Bike Championships Inc. - to the value of $2,000, for the purpose of marketing and promotion.

h) Fit Events - to the value of $2,500, for the purpose of marketing and promotion.

i) Saltwater Country - to the value of $30,000, for the purpose of marketing and promotion.

j) Shinju Matsuri - to the value of $82,000 in the 2018/19 financial year, including the following conditions:

(i) In-kind services including the following allocations to the value of $6,059 for parks and gardens services, $19,441 fees and venue hire plus administration fee of 15%

(ii) Cash contribution of $8,000 for the Shinju Art Awards Acquisitive Art Prize

(iii) Cash contribution of $48,500 for the purpose of event infrastructure, staging or advertising only, excluding administration of event coordination fees

(iv) The applicant meets all other requirements as per the Events, Economic Development and Tourism Funding Guidelines.

(v) Provision of audited financial reports for the 2018 Shinju Festival detailing;

· Total income and expenditure for the 2018 Shinju festival, including event management expenditure

· Total income allocations and key items of expenditure for each sub-event of the overall festival

· Itemised breakdown of expenditure of Shire of Broome funding, supported by supplier invoices as evidence of expenditure of the Shire’s cash contribution

k) Theatre Kimberley - to the value of $10,286, for the purpose of In-kind services $8,286 (fees and venue hire plus administration fee 15%) and Cash ($2,000) for marketing.

2. Requests that the Chief Executive Officer negotiate funding agreements with each recipient to agree upon recognition requirements to acknowledge the Shire’s contribution.

3. Funding in Point 1 above is granted subject to adherence to the Economic, Events and Tourism Development Funding Program Guidelines.

CARRIED UNANIMOUSLY 7/0

The Economic, Events and Tourism Development Funding program (EETDF) has been developed to provide funds to assist organisations within the Shire of Broome to advance economic, events and tourism projects and initiatives that benefit the local community.

Applications opened for the EETDF program on 15 January 2018 and ran for an 8-week period, closing on 16 March 2018.

Applicants could apply for and be considered for a maximum amount of $70,000 cash, and in-kind support to a maximum value of $30,000, inclusive of 15% allocation for officer time for coordination. The total amount requested could not exceed 50% of the total project cost. Applications demonstrating exceptional circumstances could request support over and above these parameters. A total of $196,465 was available for allocation through the EETDF.

In the 2018-2019 round of EETDF funding Cable Beach Polo Pty Ltd (Cable Beach Polo) made an application for $79,000 (comprising a cash component of $70,000 and $9,000 in-kind). Due to the oversubscription of the EETDF totalling approximately $850,000, Cable Beach Polo was allocated funds of $5,000 cash and in-kind services (comprising application fees, venue hire and administration charges) valued at $8,319.

A breakdown of previous Shire support to Cable Beach Polo for the beach polo event through the Tourism Administration Policy funding of tourism initiatives and the EETDF is listed below.

ITEM	2016-17	2017-18	2018-19
Cash	$10,000	$20,000	$5,000
In-kind	$8,827.64		$8,319

TOTAL	$18,827.64	$20,000	$13,319

COMMENT

Context:

Representatives from Cable Beach Polo met with the Shire President, Deputy Shire President and Chief Executive Officer on Tuesday, 26 March 2019 to discuss the event, table a Public Relations and Media Partnership Proposal (refer Attachment 1) and raise the issue of additional funding support to sustain the May 2019 event. Subsequently, the Event Organisers forwarded a letter formalising the request to the Shire for consideration (refer Attachment 2).

Cable Beach Polo (previously known as Paspaley Beach Polo) was first held in Broome in 2010 and has grown from a single day exhibition match to a two-day tournament including support events, building into a cluster of events forming a carnival atmosphere over three days. The full schedule of events includes a cocktail party for sponsors and guests, the Australian Beach Polo Championship over two days, ticketed tent options and free public viewing areas. The organisers also undertake fundraising activities to support the Royal Flying Doctors Service Charity prior to and during the events.

The Event organiser states the event is targeted at both tourism and economic development and this is achieved by:

· Holding the event early in the tourism season in what is traditionally the shoulder season.

· The event attracts visitation to Broome by showcasing the region through a national marketing campaign, that includes a high level of editorial content.

· The event attracts high-value visitors from intrastate, interstate and international markets with a total of 925 tickets sold to various events in 2018 at an average ticket price of $260.

· The event injects more than $250,000 into the local economy through local supply of materials and products in conjunction with services including hire companies, accommodation providers and other local business.

· The event stimulates a substantial increase in hotel occupancy, boosting the level from 62% in early May to over 90% for the weekend of the event.

The 2019 Cable Beach Polo Event will be the 10^th year. Several high-profile celebrities will be attending the event, further raising the event’s (and Broome’s) profile, all designed to generate media attention.

Request:

The request for additional funding support (Attachment 2) outlines possible applications including:

· Funding support for the advertising, competitions and travel of media and celebrity attendance budget.

· The cost associated:

o Advertising and competition $31,800

o Media and celebrity attendance $16,400

o Total Funding requested $48,200.

The request includes the waiver of all Shire fees associated with the holding of the event (already waived as part of the Shire’s in-kind contribution for 2018-2019) and assistance to waive fees and charges for the use of the Hamersley Street banner site in the event the organisers can procure an event banner. The request also lists alternative uses such as magazine advertising for a lesser cash contribution.

Summary:

Councillors will recall the budget for the EETDF was fully allocated at the Ordinary Meeting of Council (OMC) held 26 April 2018 with successful applicants advised in early May 2018.

The Administration is mindful that the Shire needs to demonstrate prudent fiscal management in the expenditure of ratepayer’s funds and the availability of any surplus funds is limited to any unspent monies in the EETDF account. Furthermore, an ex gratia payment will impact on the Shire’s capacity to deliver other projects.

Notwithstanding, the Cable Beach Polo Event is deemed a drawcard event for Broome and is nominated as a ‘Star’ in the Shire of Broome Event Strategy and as such is worthy of support.

Options:

Option 1

Do not allocate any additional funding to Cable Beach Polo as they were awarded funding support totalling $13,319 (cash $5,000 and in-kind $8,319) as part of the EETDF for the 2019 event based on the Applicant’s submission and the significant oversubscription of the EETDF program.

This option will put the onus on the event organisers to value manage event activities and potentially reduce its impact and broader marketing appeal.

Option 2

Allocate an amount totalling $5,000 to Cable Beach Polo to further support the event and waive fees and charges associated with the cost of erecting an event themed banner at Hamersley Street (an in-kind value of $650).

Additional funding for the event will need to be sourced through savings identified in the Christmas Deco and Street Party Works Account 116199 to offset this unbudgeted expenditure.

This option demonstrates the Shire’s keenness to support this event with the limited resources it has available at this late stage of the financial year.

Option 3

Allocate an additional amount of funding to Cable Beach Polo an amount to be determined by Council that is closer to the nominated amount of $48,200. The risk associated with this option is that funds may not available within the set 2018-19 budget to accommodate the allocated funds.

It should be noted Cable Beach Polo Pty Ltd has not submitted an application for EEDFT funds in 2019-2020 for an event in 2020. It would be prudent the Shire consider entering into discussions with Cable Beach Polo Pty Ltd for potential three year funding agreement to assist with the event’s sustainability.

Recommendation:

Officers recommend option 2 which will provide additional support to the Cable Beach Polo Event, albeit limited, that fits with in the current budget allocation for the 2018-19 financial year. This option results in a total of $18,969 in sponsorship.

CONSULTATION

Cable Beach Polo

STATUTORY ENVIRONMENT

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; or

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

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

emergency.

* Absolute majority required.

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; or

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

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

* Absolute majority required.

6.10. Financial management regulations may provide for —

(a) the security and banking of money received by a local government; and

(b) the keeping of financial records by a local government;

and

(c) the management by a local government of its assets, liabilities and revenue; and

(d) the general management of, and the authorisation of payments out of

(i) the municipal fund; and

(ii) the trust fund, of a local government.

Local Government (Financial Management) Regulations 1996

11. Payments, procedures for making etc.

(1) A local government is to develop procedures for the authorisation of, and the payment of, accounts to ensure that there is effective security for, and properly authorised use of —

(a) cheques, credit cards, computer encryption devices and passwords, purchasing cards and any other devices or methods by which goods, services, money or other benefits may be obtained; and

(b) petty cash systems.

(2) A local government is to develop procedures for the approval of accounts to ensure that before payment of an account a determination is made that the relevant debt was incurred by a person who was properly authorised to do so.

(3) Payments made by a local government —

(a) subject to sub regulation (4), are not to be made in cash;

and

(b) are to be made in a manner which allows identification

of —

(i) the method of payment; and

(ii) the authority for the payment; and

(iii) the identity of the person who authorised the payment.

POLICY IMPLICATIONS

Nil.

FINANCIAL IMPLICATIONS

This funding request falls outside of the Shire’s established funding rounds – Events, Economic Development and Tourism Fund; Tourism Administrative Policy; and Annual Community Matched Sponsorship Program.

Officers recommend allocating an amount of $5,000 to Cable Beach Polo to further support the event and waive fees and changes associated with the cost of erecting an event themed banner at Hamersley Street (an in-kind value of $650).

Additional funding for the event will need to be sourced through a proposed budget amendment with savings identified in the Christmas Deco and Street Party Works Account 116199 to offset this unbudgeted expenditure.

	Cash Amount	In-kind	Account
Cable Beach Polo	$5,000	$650	To be determined

Total	$5,000	$650

RISK

Option	Risk	Type	Rank	Mitigation
Community dissatisfaction with allocations	Perception that Shire process for providing additional funding is not fair and equitable	Reputational	Medium	Application was received outside the set EETDF process and Guidelines have been put in place including to ensure a fair and equitable assessment process has been undertaken, however final allocations are at the discretion of Council.
Funding recipient dissatisfaction with allocations	Perception that Shire is not maximising the opportunity to support organisations providing social and economic benefits.	Reputational	Medium	Application was received outside the set EETDF process and Guidelines have been put in place including to ensure a fair and equitable assessment process has been undertaken, and final allocations are at the discretion of Council.
Poor return on investment	Services provided do not meet industry and visitor requirements	Financial	Low	If successful, the applicant to provide a full acquittal of the project in line with the funding recognition framework that forms part of the EETDF Guidelines.

STRATEGIC IMPLICATIONS

Corporate Plan

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

Participation in recreational and leisure activity

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

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

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

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

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

Responsible resource allocation

Effective community engagement

Shire’s Major Events Strategy

The Shire - a progressive partner and investor in events

Events Calendar - stimulate the economy during the shoulder seasons

VOTING REQUIREMENTS

Absolute Majority

Council Resolution:

(Report Recommendation)

Moved: Cr C Mitchell Seconded: Cr E Foy

That Council:

1. Allocate Cable Beach Polo an additional $5,000 cash and waive any fees and charges associated with the use of the Hamersley Street banner site by the event organiser.

2. Endorse a budget amendment of $5,000 from Account 116199 Christmas Deco and Street Party Works to Account 22174 Sundry In Kind Donations.

3. Note the economic contribution and marketing profile of the Cable Beach Polo Event to Broome and authorise the CEO to enter into discussions with Cable Beach Polo Pty Ltd for potential three year funding agreement, to assist with the event’s sustainability, to come back to Council for consideration and determination.

CARRIED UNANIMOUSLY BY ABSOLUTE MAJORITY 6/0

9.1.2 FUNDING REQUEST - NYAMBA BURU YAWURU'S GWARINMAN PROJECT

Public Relations and Media Partnership Proposal

Letter - Request for Funding (Confidential to Councillors and Directors Only)

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

Item 9.1.2 - FUNDING REQUEST - NYAMBA BURU YAWURU'S GWARINMAN PROJECT

With Regards to Item 9.1.2 Cr E Foy declared the following impartiality interest pursuant to Regulation 11 of the Local Government (Rules of Conduct) Regulations 2007 – “Yawuru member and Director of the PBC”.

With Regards to Item 9.1.2 Cr P Matsumoto declared the following impartiality interest pursuant to Regulation 11 of the Local Government (Rules of Conduct) Regulations 2007 – “Yawuru member and traditional owner”.

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: GVR023

AUTHOR: Manager Community and Economic Development

CONTRIBUTOR/S: Director Development & Community

RESPONSIBLE OFFICER: Director Development & Community

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 9 April 2019

SUMMARY: This report informs the Shire of Nyamba Buru Yawuru’s Gwarinman Project and a request for funding assistance towards the Project.

BACKGROUND

Previous Considerations

OMC 20 May 2017 Item 12.3

Background

Nyamba Buru Yawuru (NBY) established the repatriation and acknowledgment project entitled Gwarinman: Wanggajarli Burugun – “We are coming home” which involves the repatriation of ancestral remains and construction of a memorial and resting place within the Broome cemetery for those ancestors and countrymen who were taken from Yawuru country. Attachment 1 contains further project details for elected member’s information.

A delegation from NBY is currently in Europe to accompany the remains home. A second delegation, including Yawuru elders, will meet the remains in Perth on 18 April 2019.

NBY has committed $20,000 and is seeking matching funds from the Shire to support this important project through formal correspondence dated 26 March 2019. A copy of the request is provided in Attachment 2.

Addition of Repatriation Area to Broome Cemetery Masterplan.

Within the adopted Broome Cemetery Masterplan an area was reserved for the repatriation of Aboriginal remains and memorial site. Upon further consideration by Yawuru it was proposed in April/May 2017 to move this repatriation and memorial area to allow for a larger area dedicated to Aboriginal people. t the Ordinary Meeting of Council on 20 May 2017Council considered the proposed area and resolved as follows:

COUNCIL RESOLUTION:

(REPORT RECOMMENDATION)

Moved: Cr P Matsumoto Seconded: Cr M Fairborn

That Council:

1. Endorses the relocation and expansion of the proposed Aboriginal Repatriation area in the Broome Cemetery Masterplan; and

2. Approves the use of up to $2,500 from account number 101430380 – Consultants Engineering Office for the development of the Aboriginal Repatriation area concept plan.

CARRIED UNANIMOUSLY BY ABSOLUTE MAJORITY 8/0

COMMENT

Officers recognise the cultural sensitivity and importance of this initiative and commend NBY for its progress.

A review of Shire budgets, at this late juncture of the budgetary cycle for 2019/20 has, regrettably, been unable to find total funds requested for this project.

Notwithstanding, Gwarinman: Wanggajarli Burugun is a worthwhile and significant project and the contribution of a symbolic amount of $2,000 would be seen as a valued gesture to assist NBY to offset part of the travel costs.

Following the repatriation of ancestral remains, the next stage will be the construction of a memorial and resting place within the Broome cemetery. In October 2018, NBY had preliminary discussions with Shire officers regarding potential support towards landscape architectural and community art services associated with the design of the memorial, however the Shire has not received any further formal correspondence on this matter.

To realise the memorial and resting place within the Broome cemetery it is envisaged the Shire will closely collaborate with NBY to seek external funding support and contribute resources.

CONSULTATION

Nyamba Buru Yawuru

STATUTORY ENVIRONMENT

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; or

(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

As outlined in Policy 3.4.2 Community Sponsorship Program, this funding request does not meet the criteria to qualify the applicant to be considered for funding to be drawn from the Community Sponsorship Reserve pending endorsement of Council.

FINANCIAL IMPLICATIONS

Officers recommend that a contribution of $2,000 be drawn from the Chief Executive Officer Ad Hoc Funding Stream which has sufficient funding remaining ($2177.00 as of 12 April 2019).

Should Council wish to fund the project from the current financial years’ budget, savings would be required to be identified and allocated through the final quarterly budget review.

RISK

Option	Risk	Type	Rank	Mitigation
Community dissatisfaction with allocations	Perception that Shire process for providing additional funding is not fair and equitable	Reputational	Medium	Application was received outside the set processes. Guidelines have been put in place to ensure a fair and equitable assessment process has been undertaken, however final allocations are at the discretion of Council. Given the cultural significance officers believed this request is worthy of consideration by Council.
Funding recipient dissatisfaction with allocations	Perception that Shire is not maximising the opportunity to support community organisations and projects with demonstrated value	Reputational	Medium	Council considers a minor contribution to be sourced from budget savings.

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:

A preserved, historical and cultural heritage of Broome

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)

Moved: Cr D Male Seconded: Cr C Mitchell

That Council:

1. Receive and acknowledge Nyamba Buru Yawuru’s Repatriation Project entitled Gwarinman: Wanggajarli Burugun – “We are coming home” and the importance of this culturally significant initiative;

2. Write to Nyamba Buru Yawuru advising the Shire is regrettably unable to fund the requested amount due to fiscal constraints but seeks to make a symbolic contribution of $2,000 towards travel costs in recognition of the cultural ceremony to be drawn from the balance of the Chief Executive Officers Ad Hoc Funding stream in 2018/19; and

3. Note, as a project partner, its ongoing collaboration with Nyamba Buru Yawuru to establish a permanent memorial resting place in the agreed area within the Broome Cemetery.

11. When tenders have to be publicly invited

1.	Gwarinman Project (Confidential Attachment)
2.	Formal request from NBY seeking funding assistance

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

9.2.1 REQUEST FOR TENDER 19/05 - SUPPLY AND DELIVERY OF BASECOURSE MATERIAL

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: RFT19/05

AUTHOR: Asset Officer

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Infrastructure

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 21 May 2018

SUMMARY: This report considers tenders received for Request for Tender (RFT) 19/05 and seeks Council’s adoption of the recommendation contained within the attached confidential Evaluation Report.

BACKGROUND

Previous Considerations

Nil.

COMMENT

Scope of Works

This Tender is for a schedule of rates contract for the supply and delivery of basecourse materials. The quantity of basecourse scheduled is a “best estimate” based on the approved Resource Based Budget and Capital Works programmes for 2019/2020. Quantities for 2020/2021 and 2021/2022 will be established as part of the Resource Based Budget and forward Capital Works programme.

This Contract is for the supply and delivery of basecourse material to various Council road construction projects, carparks and for general use. The contract has several options in regard to delivery sites, rates of cartage and method of delivery. Prices include all costs associated with winning, raising, royalties, pit restoration, loading, carting, labour, on costs, plant hire, or any other costs involved in delivering the material to the designated location.

Process

Tenders were 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 13 March 2019, the Shire of Broome website and on the Administration Office and Library noticeboards. The submission period was open for the required minimum of 14 days and closed at 3:00pm AWST 28 March 2019.

Two tenders were received by the closing date and these were subsequently evaluated against the RFT’s compliance criteria and all tenders were assessed as compliant. The tenders then went through a shortlisting process as part of the evaluation. No tenders were excluded from the shortlist.

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 (3) panel members consisting of Shire officers. This included an assessment of several critical compliance and qualitative criteria. Qualitative criteria considered critical to this project were:

· Ability to meet Specification – 25%

· Methodology/Quality – 10%

· Price/Schedule of Rate – 65%

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 responses received and it is recommended that Council resolve to adopt the recommendation contained within the confidential evaluation report.

CONSULTATION

WALGA

STATUTORY ENVIRONMENT

Local Government Act 1995

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

(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 sub regulation (2) states otherwise.

POLICY IMPLICATIONS

Purchasing 2.1.2

Local Regional Price Preference 2.1.3

FINANCIAL IMPLICATIONS

A budget of $92,000 has been included within the 2019/20 Resource Based Budget which has driven the estimate of quantities for RFT 19/05. Historic quantities have been consistent and it is anticipated that allocations within future Resource Based Budgets will be remain consistent.

A detailed description of the schedule of rates is included within the confidential Evaluation Report provided as Attachment 1.

RISK

The risk associated with the engagement of a construction material supplier is the product supplied is to an unsatisfactory standard which may result in project delays and be detrimental to the Shire reputation.

This risk has been mitigated to Low, having undertaken an open public tender with the recommended contractor listed on the WALGA preferred supplier panel and inclusion of a qualitative rating on specification and quality.

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:

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:

Sustainable and integrated strategic and operational plans

Responsible resource allocation

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

Moved: Cr D Male Seconded: Cr C Mitchell

That Council:

1. Accepts the tender submitted by Kimberley Quarry Pty Ltd as the most advantageous tender to form a contract for RFT19/05 Supply and Delivery of Basecourse Material, on a Schedule of Rates basis.

2. Authorises the Chief Executive Officer to sign the contract documentation.

RFT19/05 - 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”. (Under separate cover)

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

9.2.2 REQUEST FOR TENDER 19/06 - SUPPLY AND APPLICATION OF BITUMENOUS SEALING WORKS

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: RFT19/06

AUTHOR: Asset Officer

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Infrastructure

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 21 May 2018

SUMMARY: This report considers tenders received for Request for Tender (RFT) 19/06 and seeks Council’s adoption of the recommendation contained within the attached confidential Evaluation Report.

BACKGROUND

Previous Considerations

Nil.

COMMENT

This Tender is for a schedule of rates contract for the supply and application of bituminous sealing works to various Shire roads and carparks. The quantities for these sealing works are an estimate based on the Asset Management Plan renewal programme for the 18/19, 19/20 and 20/21 financial years.

Scope of Works

The specification covers the supply of materials, design and application of sprayed seals for roads and related applications and includes the following types of sprayed treatments.

a) Prime

b) Primerseal, and

c) Seal.

The contactor will be responsible for all materials and services required to deliver the works as set our in the contract documentation.

Process

Tenders were 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 13 March 2019, the Shire of Broome Website and on the Administration Office and Library noticeboards. The submission period was open for the required minimum of 14 days and closed at 3:00 pm AWST 1 March 2019.

Value for Money Assessment

· Specification Methodology – 30%

· Key Personnel Skills and Organisational Capabilities – 25%

· Safety Management – 20%

· Price/Schedule of Rate – 25%

CONSULTATION

WALGA

STATUTORY ENVIRONMENT

Local Government Act 1995

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

POLICY IMPLICATIONS

Purchasing 2.1.2

Local Regional Price Preference 2.1.3

FINANCIAL IMPLICATIONS

The following table details the allocated amounts for urban/rural road reseals in the Shire’s adopted Long-term Financial Plan:

Financial Year	18/19	19/20	20/21	21/22	Total
AMP Value – Account Number - RRU	$187,887	$80,789	$439,777	$978,193	$1,686,645

A detailed description of the quotation prices is included within the confidential Evaluation Report provided as attachment 1.

RISK

The risk associated with the engagement of a construction company is that the contractor does not carry out the required works to a satisfactory standard which may result in project delays and be detrimental to the Shire’s reputation.

This risk has been assessed as Low, having undertaken an open public tender, along with the recommended contractor listed as a WALGA preferred supplier and has extensive experience undertaking similar works locally.

There is a medium level of risk of weather impacting the renewal (resealing) of roads.

The risk is mitigated by these works commencing on between May and October when the likelihood of monsoonal rain events is 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

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

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:

Sustainable and integrated strategic and operational plans

Responsible resource allocation

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

That Council:

1. Accepts the tender submitted by Manning Pavement as the most advantageous tender to form a contract for RFT19/06 Supply and Application of Bituminous Sealing Works, on a schedule of rates basis.

2. Authorises the Chief Executive Officer to sign the contract documentation.

Moved: Cr C Mitchell Seconded: Cr P Matsumoto

RFT19/06 - Evaluation Report (Confidential to Councillors and Directors Only)

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

9.2.3 LEASE DISPOSAL TENANCY 4 AT KIMBERLEY REGIONAL OFFICES, BUILDING 2

LOCATION/ADDRESS: Nil

APPLICANT: Minister for Works

FILE: LSS102

AUTHOR: Property and Leasing Senior Officer

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Infrastructure

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 2 April 2019

SUMMARY: The Minister for Works – Department of Corrective Services (Youth Justice) have expressed interest in renewing the lease at tenancy 4, Kimberley Regional Offices, Building 2.

The Minister for Works is seeking to commence a lease from 1 May 2019 for an initial term of two years with an option to renew for a further two years. The rent to be in line with ‘Market Value’ plus outgoings.

BACKGROUND

Previous Considerations

OMC 26 November 2009 Item 9.4.3

The Kimberley Regional Offices (KRO) are situated on Reserve 8656 and Lot 31 on Deposited Plan 222186 being the whole of the land in Certificate of Title Volume 476. The site comprises two, single storey office buildings known as KRO 1 & KRO 2 – both buildings offering an approximate Net Lettable Area (NLA) of 1,200sqm each. The NLA of tenancy 4 totals 331.87sqm.

See attachment 1 – Lettable Area Survey.

The Minister for Works – Youth Justice have been occupying tenancy 4 since 1 December 2005. The current lease expired on 30 November 2018. Shire Officers approached the Minister to offer a new lease in June 2018 however, the tenants were unable to commit as the State was undergoing a review of its commercial leases and resources in the Region / Broome. The lease continued under the Holding Over provisions as outlined in Clause 3.4.

COMMENT

On 22 February 2018 the tenant representative, LPC Cresa Pty Ltd, for the for the Minister for Works wrote to the Shire of Broome to express their interest to renew the lease at tenancy 4 KRO 2. Shire Officers have been working with LPC Cresa to present the offer outlined in this report

See attachment 2 – Letter of Offer

The key terms proposed by LPC Cresa on behalf of the Minister for Works are set out in the table below:

Lessee	Minister for Works
Lease Commencement Date	1 May 2019
Premises	Tenancy 4, Kimberley Regional Offices, Building 2
Occupant	Corrective Services – Youth Justice
Lease Area	331.87sqm
Term	Two Years
Further term / Options	Two Years
Rent	Market Value
Variable Outgoings	$195 per square metre estimate
Landlord Works	NA
Lessee Works	NA

Rent

It is recommended the rent be set at ’Market Value’ by an independent property valuer and the annual rent increases are in-line with the Annual CPI Increase based on Perth ‘All Groups’ December quarter index figures.

It should be noted the current rent at tenancy 4 sits at approximately $380.00 per square metre. On the commencement of the new lease the rent will reduce by approximately $4,000pa – based on comparable, recent valuations in the complex.

Current Market Conditions

Opteon Property have made the following comments regarding the current market conditions in Broome:

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

Over the past 10-15 years the town’s economy has expanded and diversified in particular with regard to the resources industry. The development of the Browse Basin (oil and gas fields) and the proposed associated land based industrial hub 60 km north of Broome was seen as a major new project which would support the main established industries of tourism, pearling, agriculture and government services. The market has softened considerably since April 2013 when Woodside shelved this project intended for James Price Point.

The above announcement in conjunction with similar announcements from smaller companies in the oil and gas industry over the past 5.5 years has impacted significantly upon local industry with not only decreases in mining and gas employment but also significantly in the logistics services and construction industry with a number of organisations laying off staff over this period. However, there has been a significant increase in helicopter transfers through the Broome International Airport in recent times as hook-up and commissioning phase of the Shell Prelude project and Inpex’s Icthy’s LNG project has taken place. This has had a positive impact on the local economy; however the volume of transfers have reduced over the second half of 2018 and return to an operational level as both plants go into production.

Tourism tends to fluctuate from year to year depending upon macro-economic factors (exchange rates), weather patterns, state and national economic conditions. The tourist market within Broome is seasonal with high/dry season months June, July and August; shoulder months April, May, September and October; and low season/wet season months November through to March. 2016, 2017 & 2018 were considered average to good seasons by most local operators. There are local efforts to open international flights from Singapore with four flights completed for 2018 and four scheduled for 2019. In addition, Qantas has discounted the cost of airfares to Broome as part of a deal with the State Government aimed at luring West Australians away from Bali. Under the arrangement, Qantas will use a 180-seat Airbus A320, which normally runs fly-in, fly-out services to mine sites but is idle from Friday to Sunday. It will operate daily flights to Broome with a $179 one-way fare in the off season, and $199 in peak season. The 12-month trial began in August 2018 and appears to have been well received by the market with strong ticket sales.

Government services have been hit relatively hard with poor State and National economies. As such, once strong government spending is now prudent. This has had broader implications for local employment, construction activity and therefore the property sector. That being said, there are two large local/state government projects underway/to commence which include the $12.7 million Chinatown Revitalisation project which will have positive impact on retailers within the main town centre when this is finished in 2019 and the $4.5 million Town Beach Foreshore redevelopment. In addition to these two projects the State Government is spending $20 million dollars on works at the Broome High School commencing in 2019.

There are other 'green shoots' in regards to some new economic stimulus/projects underway and set to commence within the region over the next 12 months. These projects include Sheffield Resources mineral sands mine positioned half way between Broome and Derby. The sealing of the Cape Leveque Road which started in 2018. Gibson Mining re-establishing mining operations on Koolan Island in early 2019 and the recently mooted ‘Broome Material Loading and Off-loading Port Facility, this infrastructure would comprise a floating pontoon adjacent to the existing Broome Port jetty, with over 180m of berth space and 700-tonne lift capacity delivering significantly improved marine freight and logistics solutions to the region. This latter project is still within the feasibility stage.

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 oversupply is available at present within the marketplace for smaller tenancies below 300 sqm in size. Discussions with a number of commercial property agents around town have revealed that there is limited enquiry/take up of space within the market place at present with landlords trying to hold onto their existing tenants when lease terms conclude.

CONSULTATION

LP Cresa Pty Ltd

Herbert Smith Freehills

Opteon Property Group

STATUTORY ENVIRONMENT

30 Local Government (Functions and General) Regulations 1996

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

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

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

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

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

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

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

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

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

(c) the land is disposed of to —

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

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

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

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

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

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

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

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

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

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

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

(i) the names of all other parties concerned;

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

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

(2b) Details (see section 3.58(4) of the Act) of a disposition of property under 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.

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

Land Administration Act 1997 WA

18 Crown land transactions that need Minister’s approval

(1) A person must not without authorisation under subsection (7) assign, sell, transfer or otherwise deal with interests in Crown land or create or grant an interest in Crown land.

(2) A person must not without authorisation under subsection (7) —

(a) grant a lease or licence under this Act, or a licence under the Local Government Act 1995, in respect of Crown land in a managed reserve; or

(b) being the holder of such a lease or licence, grant a sublease or sub licence in respect of the whole or any part of that Crown land.

(3) A person must not without authorisation under subsection (7) mortgage a lease of Crown land.

(4) A lessee of Crown land must not without authorisation under subsection (7) sell, transfer or otherwise dispose of the lease in whole or in part.

(5) The Minister may, before giving approval under this section, in writing require —

(a) an applicant for that approval to furnish the Minister with such information concerning the transaction for which that approval is sought as the Minister specifies in that requirement; and

(b) information furnished in compliance with a requirement under paragraph (a) to be verified by statutory declaration.

(6) An act done in contravention of subsection (1), (2), (3) or (4) is void.

(7) A person or lessee may make a transaction under subsection (1), (2), (3) or (4) —

(a) with the prior approval in writing of the Minister; or

(b) if the transaction is made in circumstances, and in accordance with any condition, prescribed for the purposes of this paragraph.

(8) This section does not apply to a transaction relating to an interest in Crown land if —

(a) that land is set aside under, dedicated or vested for the purposes of an Act other than this Act, and the transaction is authorised under that Act; or

(b) that interest may be created, granted, transferred or otherwise dealt with under an Act other than —

(i) this Act; or

(ii) a prescribed Act;

(c) an agreement, ratified or approved by another Act, has the effect that consent to the transaction was not required under section 143 of the repealed Act; or

(d) the transaction is a lease, sublease or licence and the approval of the Minister is not required under section 46(3b).

[Section 18 amended by No. 59 of 2000 s. 8(1)‑(5) ⁵.]

POLICY IMPLICATIONS

Nil

FINANCIAL IMPLICATIONS

The predicted income is in line with the budget forecasts for the 18/19 financial year which is set at $131,976.00 (Account 147485).

The below table reflects the annual income and expenses for the first year of the tenancy.

Description	Income	Expenses
Estimated Net Annual Rent (Year 1)*	$99,561 Acc 147483
Estimated Annual Outgoings (Year 1)**	$64,714.65 Acc 147489	$64,714.65 Acc 147270
Lease Fees	$3,000 Acc 149408	$3,000 Acc 144027
Total Year 1	$167,275.65	$67,714.65

* Rent based on an estimate of $300 per square metre. This is subject to change with the new Market Valuation report to be issued.

** Variable outgoings are budgeted at $195 per square metre per annum. In the 2017/18 financial year the actual outgoings came to $205.93 per square metre. With Major air-conditioning renewal being undertaken in the 2018/19 financial year it is anticipated this will reduce annual reactive maintenance and lower the variable outgoings into the future.

RISK

Should the new lease not be supported by Council there is a risk the tenants would seek alternate office accommodation and the Shire would forgo on up to $99,561.00 in annual rent and have to absorb the cost of variable outgoings for the premises of up to $67,714.65 per annum, until a new tenant is secured.

STRATEGIC IMPLICATIONS

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

Affordable services and initiatives to satisfy community need

A healthy and safe environment

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

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

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

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)

That Council:

1. In accordance with section 30(2)(b) of the Local Government (Functions and General) Regulations agrees to Lease tenancy 4 at the Kimberley Regional Offices to the Minister for Works, and authorises the Chief Executive Officer to seek Ministerial approval and negotiate the final terms and conditions of the lease in line with:

i) A new lease to be entered into for an initial term of two years with a two-year option, commencing from May 2019.

ii) Gross rent to be set in line with independent market valuation.

iii) Rental increases to be set by annual CPI (Perth All Groups December Quarter).

iv) The Lessee to be responsible for all associated costs in preparing the lease.

v) The Lessee to be responsible to pay variable outgoings.

1.	Lettable Area Survey
2.	Letter of Offer

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

9.2.4 REQUEST FOR TENDER - 19/04 TYRE REMOVAL AND DISPOSAL

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: RFT19/04

AUTHOR: Waste Coordinator

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Infrastructure

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 9 April 2019

SUMMARY: This report considers tenders received for Request for Tender (RFT) 19/04 and seeks Council’s adoption of the recommendation contained within the attached confidential evaluation report.

BACKGROUND

Previous Considerations

OMC 13 December 2018 Item 9.4.6

COMMENT

Tyres are classified as a controlled waste, and generally cannot be disposed of at a Class I, II or III landfill. The Shire of Broome Waste Management Facility (WMF) is a class II landfill and tyres are separated from general waste and stockpiled at Reserve 51151 otherwise known as Lot 400 Buckley’s Road (Lot 400).

Lot 400 is licenced to hold up to 5000 tyres. A volumetric survey of the tyre area was completed in March 2018, and it was estimated there were 6,500 cubic metres of tyres onsite. It is estimated that Lot 400 has surpassed its licensed capacity for tyres and the volume is required to be reduced to maintain compliance with the Department of Water and Environmental Regulation (DWER) license.

In December 2018, officers undertook a Request for Quote process to engage a suitable contractor to remove the tyres from site, in an environmentally sustainable manner. A contractor was engaged at this time; however it was found that the amount of tyres onsite was more than anticipated, and only around half of the amount of tyres were removed.

Officers have completed a further RFT process, to enable the remaining removal and annual ongoing tyre removal from site, to ensure licence compliance. The tender length is aimed to coincide with future activities at the RRRP or new transfer station facility and the end of the lease of lot 400 Buckley’s Road.

Sufficient budget was approved in Job 101033 to undertake the works.

Scope of Works

The Scope of Works is based on a volumetric survey of tyres at Lot 400, and the previous tyre removal contract.

The facility is open to commercial and domestic users, with tyres being diverted from landfill and used through the Contractors for sustainable end uses such as tyre derived fuel, rubber crumbs for roads, rubber crumbs for tile adhesives, rubber crumb and granules for playground and sporting surfaces.

The key components of the tender include:

· Tender period is for thirty six (36) months with the provision for two (2) twelve (12) month extensions.

· Tyres are to be sustainably recycled.

· All machinery to be used is utilised by the company.

Process

Tenders were 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 6 March 2019 and on the Administration Office, website and Library noticeboards. The submission period was open for the required minimum of 14 days and closed at 2.00pm WST 28 March 2019.

Two tender submissions were received by the closing date and this was subsequently evaluated against the RFT’s Compliance Criteria and assessed as compliant. The tender was then fully assessed against the Qualitative Criteria.

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 critical compliance and qualitative criteria. Qualitative criteria considered critical to this project were

· Relevant experience – 20%

· Resource capabilities – 20%

· Sustainability outcomes – 20%

· Pricing - 40%

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 responses received and it is recommended that Council resolve to adopt the recommendation contained within the confidential evaluation report.

CONSULTATION

Nil.

STATUTORY ENVIRONMENT

Local Government Act 1995

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

POLICY IMPLICATIONS

Purchasing 2.1.2

Local Regional Price Preference 2.1.3

FINANCIAL IMPLICATIONS

The table below outlines funding sources for the initial and ongoing costs.

Funding Source: Operational Budget – Tyre Removal and Disposal

Funding Type	Capital or Start Up Expense	Life Cycle Costs (Annual)		Funding Details (eg RLCIP)	Account Number
		Cost $	*Cost Type
Grant
Municipal	$158,000		Operating		101030
Cost Type – Asset: New, Upgrade, Renewal, Maintenance, Operating. Service: Start up and Operating *2018/19 allocated budget

RISK

There is a low level of risk of the Contractor being unable to complete the project due to breakdown or company failure over the length of the contract.

There is a medium level of risk of volumes being more than the Landfill licensed amounts. This risk is mitigated by the ongoing removal of tyres annually.

There is a low safety risk on site with undertaking the tyre removal activities. This risk is mitigated against with the contractor to provide a safety plan agreed with the principal and approved by the Shire before works commence, which will address exclusion zones, out of hours working, and handling of materials. Site meetings will be held to discuss concerns and act on any issues.

STRATEGIC IMPLICATIONS

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

Affordable services and initiatives to satisfy community need.

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

Core asset management to optimise 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

Simple Majority

Council Resolution:

(Report Recommendation)

That Council:

1. Accepts the tender submitted by Tyrecycle Pty Ltd as the most advantageous tender to form a contract for RFT19/04 Removal and Disposal of Tyres on a schedule of rate basis.

2. Authorises the Chief Executive Officer to sign the contract documentation.

Moved: Cr C Mitchell Seconded: Cr M Fairborn

Evaluation Report - RFT19/04 Tyre Removal and Disposal (Confidential to Councillors and Directors Only)

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

9.2.5 REQUEST FOR TENDER 19/03 - MULCHING OF GREENWASTE

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: RFT19/03

AUTHOR: Waste Coordinator

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Infrastructure

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 15 March 2019

SUMMARY: This report considers tenders received for Request for Tender (RFT) 19/03 and seeks Council’s adoption of the recommendation contained within the attached confidential evaluation report.

BACKGROUND

Previous Considerations

Following the cessation of the previous RFQ 18-70 for mulching of green waste at the Shire of Broome’s Waste Management Facility on Buckley’s Road this report outlines the requirements for a new tender to commence. The tender length is aimed to coincide with future activities at the RRRP or new transfer station facility and the end of the lease of lot 400 Buckley’s Road.

Sufficient budget was approved in Job 101028 to undertake the works.

COMMENT

Scope of Works

The Scope of Works is based on previous known volumes of green waste and pallets entering the facility and being diverted to mulch for use within the facility and the community.

The facility is open to commercial and domestic users. Facility users bring their sorted green waste in for disposal where it is collected and placed into windrows ready for mulching. The mulch is then stored to be used within the facility or within the Shire of Broome particularly in Parks and Gardens.

The outcome being that the green waste has been diverted from landfill and is being reused as mulched green waste.

The key components of the tender include: -

· Tender period is for thirty-six months (36) months with the provision for (2) x 12 month extensions at the Principals discretion.

· Any foreign or large items not able to be mulched are to be set aside neatly from the final mulched product so they may be collected for disposal to landfill;

· Equipment and machinery shall utilise magnets and other items to help in separating foreign materials from the finished mulch pile.

· The finished product is to be stockpiled into a windrow of uniform width and height to allow it to be surveyed accurately. The stockpile shall conform to site licence conditions being that the windrow will be no wider than five (5) metres in width, no higher than three (3) metres in height and no longer than forty (40) metres in length;

· A ten (10) metre clear buffer shall be maintained between the windrows and the boundary fence; and

· That a ten (10) metre separation distance be maintained between all windrows.

Process

Tenders were 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 2 March 2019 and on the Administration Office and Library noticeboards. The submission period was open for the required minimum of 14 days and closed at 14:00 WST 21 March 2019.

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 critical compliance and qualitative criteria. Qualitative criteria considered critical to this project were

· Relevant experience – 30%

· Resource capabilities – 20%

· Pricing - 50%

CONSULTATION

The City of Greater Geraldton, City of Joondalup, City of Karratha and Town of Port Hedland were consulted with regard to indicative processing rates of green waste.

The Banana Shire in Queensland were contacted for a referee check.

STATUTORY ENVIRONMENT

Local Government Act 1995

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

POLICY IMPLICATIONS

Purchasing 2.1.2

Local Regional Price Preference 2.1.3

FINANCIAL IMPLICATIONS

The table below outlines funding sources for the initial and ongoing costs.

Funding Source: Operational Budget – Mulching at Tip

Funding Type	Capital or Start Up Expense	Life Cycle Costs (Annual)		Funding Details (eg RLCIP)	Account Number
Funding Type	Capital or Start Up Expense	Cost $	*Cost Type	Funding Details (eg RLCIP)	Account Number
Grant
Municipal	$311,814	$325,000	Operating		101028

TOTAL	$311,184**
Cost Type – Asset: New, Upgrade, Renewal, Maintenance, Operating. Service: Start up and Operating *2018/19 allocated budget

RISK

There is a medium level of risk of the Contractor being unable to complete the project due to breakdown or excessive volume of green waste due to storm events. This is mitigated large storage areas on site and the contract will be structured with progress payments based on physical milestones achieved.

There is a medium level of risk of volumes being more than the licensed amounts of the Landfill Facility. This risk is mitigated by these works being ongoing through the full year.

There is a medium risk of extreme weather conditions delaying operations on site. This is mitigated through large storage areas and ongoing processing of the material.

commencing on site late April when likelihood of monsoonal rain events is low and only

There is a high Safety risk on site with undertaking the mulching activities. This is mitigated to low with the contractor to provide a safety plan agreed with the principal and approved by the Shire before works commence, which will address exclusion zones, out of hours working, and handling of materials. Site meetings will be held to discuss concerns and act on any issues.

STRATEGIC IMPLICATIONS

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

Affordable services and initiatives to satisfy community need

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

Core asset management to optimise 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

Simple Majority

Council Resolution:

(Report Recommendation)

That Council:

1. Accepts the tender submitted by Ironjack Recycling Pty Ltd as the most advantageous tender to form a contract for RFT19/03 Mulching of Greenwaste on a schedule of rate basis.

2. Authorises the Chief Executive Officer to sign the contract documentation.

The budget for the reconstruction of the road surface is comprised as per the table below.

Evaluation Report Mulching of Green Waste (Confidential to Councillors and Directors Only)

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

9.2.6 RFQ19-15 Hunter Street Stage 2 Road Reconstruction

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: RFQ19-15

AUTHOR: Project Engineer

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Infrastructure

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 9 April 2019

SUMMARY: This report considers quotations received for Request for Quote (RFQ) 19-15 and seeks Council’s adoption of the recommendation contained within the attached confidential evaluation report.

RFQ19-15 relates to the reconstruction of road pavement at Hunter Street, from Lucas Street to Guy Street.

BACKGROUND

Previous Considerations

OMC 26 April 2018 9.2.3

COMMENT

Scope of Works

Hunter Street is a major road in Broome’s light industrial area and was identified in Mains Road Western Australia strategy paper, Roads 2030, as a priority for reconstruction.

The Shire of Broome completed stage 1 of the reconstruction in 2018, from Clementson Street to Lucas Street. Stage 2 of the works involves the reconstruction of the remainder of Hunter Street; approximately 390 metres from Lucas Street to Guy Street.

The Shire of Broome issued RFQ19-15 to engage a suitably qualified contractor to undertake the works. These works included:

· Demolition and removal of existing pavement;

· Demolition and removal of existing kerb and cross overs;

· Relocation and protection of existing power, communication and water services;

· Replacement of Water Corporation water main asbestos concrete pipes with PVC pipes;

· Excavation and bulk earthworks;

· Pavement construction;

· Kerbing and concrete cross over construction

The Contractor will be responsible for all materials and services required to deliver the works as set out in the contract documentation.

RFQ19-15 also considered the construction of a footpath along the length of Hunter Street, from Clemenston Street to Guy Street.

Procurement Process

In accordance with Council’s Purchasing Policy 2.1.2, three quotations were sought for RFQ 18/09.

Two submissions were received by the closing date and these were subsequently evaluated against the RFQ’s compliance criteria and all tenders were assessed as compliant. The tenders then went through a shortlisting process as part of the evaluation. No submissions were excluded from the shortlist.

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 submission through a formal evaluation process including three (3) panel members consisting of Shire officers.

This included an assessment of the following qualitative criteria:

· Construction Methodology – 25%

· Construction Program – 20%

· Relevant Experience – 20%

· Key Personnel and Plant– 20%

· Safety Management and Project Risk Assessment – 15 %

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

Construction

Works are forecast to commence in May 2019 and be completed in July 2019. The works will be directly overseen and managed by the Shire’s Project Engineers.

CONSULTATION

Shire of Broome has consulted with the following external asset owners to ensure the design meets the requirements of their assets:

· Water Corporation

· Horizon Power

· Telstra

STATUTORY ENVIRONMENT

Local Government Act 1995

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

(2) Tenders do not have to be publicly invited according to the requirements of this Division if —

(b) the supply of the goods or services is to be obtained through the WALGA Preferred Supplier Program.

POLICY IMPLICATIONS

Purchasing 2.1.2

Local Regional Price Preference 2.1.3

FINANCIAL IMPLICATIONS

Funding Type	Source	Account Number	Project Capital Budget
Regional Roads Grant	Main Roads WA	121552	$362,447.00
Municipal	Shire of Broome	121552	$42,605.00
Roads to Recovery Grant	Main Roads WA	121552	$366,758.00
TOTAL			$771,810.00

This budget is to cover all costs associated with the road pavement reconstruction including but not limited to; design fees, construction, close out works and contingency.

The current budget position for the reconstruction of the road surface is as follows:

Expenditure	Value
Budget	$771,810.00
Spent	$55,244.45
Remaining	$716,565.55

Through the FACR process, it is anticipated that additional $140,000.00 will be made available for the project. These funds will be located from the following projects:

Account Number	Project	Value
1181403	Town Beach Redevelopment - Catalina Boat Ramp Carpark	$90,000.00
RU226	Cemetery	$4,000.00
0107034	Dakas Street	$46,000.00
Total		$140,000.00

These additional funds will increase the remaining budget for the project to; $856,565.55

Additional to the reconstruction of the road, RFQ19-15 considered the construction of a footpath along Hunter Street. The budget for this works is summarised below:

Funding Type	Source	Account Number	Project Capital Budget
Municipal	Shire of Broome		$132,450.00
TOTAL			$132,450.00

A detailed description of the quotation prices and budget implications is included within the confidential evaluation report provided as Attachment 1.

RISK

The Project currently carries financial risk that the works can not be delivered within the remaining budget.

Additional risk associated with the engagement of a construction company is that the contractor does not carry out the required works to a satisfactory standard which may result in project delays and has the potential to affect the eligibility of claims.

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:

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:

Sustainable and integrated strategic and operational plans.

Responsible resource allocation.

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

Moved: Cr C Mitchell Seconded: Cr D Male

That Council:

1. Accepts the submission by Roadline Civil Contractors as the most advantageous quotation to form a contract for RFQ 19/15 Hunter Street Reconstruction Stage 2.

2. Authorises the Chief Executive Officer to enter into value management negotiations with the contractor.

3. Requests the Chief Executive Officer to identify additional budget through the Quarter 3 Financial and Cost Review; and

4. Authorises the Chief Executive Officer to sign the contract documentation.

67. Local government may impose receptacle charge

Confidential Evaluation Report - Final (Confidential to Councillors and Directors Only)

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

9.4.2 ENDORSEMENT OF FEES AND CHARGES 2019/20

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: ACC01

AUTHOR: Manager Financial Services

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Corporate Services

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 2 April 2019

SUMMARY: Council is requested to consider endorsing the Fees & Charges Schedule for the 2019/20 financial year. This will provide sufficient time for the proposed changes to be communicated to the community prior to Council considering the adoption of the Fees and Charges Schedule in June 2019.

BACKGROUND

Previous Considerations

SMC 13 August 2015 Item 9.4.2

OMC 26 May 2016 Item 9.4.4

OMC 30 June 2016 Item 9.4.3

SMC 4 May 2017 Item 6.4.3

OMC 29 June 2017 Item 9.4.4

OMC 28 June 2018 Item 9.4.3

In accordance with sections 6.16 to 6.19 of the Local Government Act 1995 (the Act), a Local Government may impose a fee or charge for any goods or service it provides. Fees and charges must be imposed when adopting the annual budget, however may also be imposed or amended during the course of the year if necessary.

An extensive review to optimise fees and charges revenue was first conducted in 2017/18 with the use of Fees and Charges module of Magiq Budget Management Software. Officers reviewed the rationale for each fee and charge and adopted a focus on improving revenue raised through fees and charges based on full cost recovery through ‘user–pay’ principle. This was conducted through considerable consultation and engagement with responsible officers accountable for individual fees and charges levied.

In reviewing the fees and charges schedule for 2019/20, officers again focused on the verifying the following:

· the head of power of the fees and charges;

· whether regulated or otherwise;

· cost recovery;

· how important the fees and charges are to the community;

· rationale for the price;

· market competitiveness and regard to the current economic climate; and

· GST applicability

Further process optimisation of Fee and Charge revenue has occurred in a number of areas, particularly the Broome Recreation and Aquatic Centre (BRAC), Broome Civic Centre, Events and Venue Hire and Waste Management. This optimisation ensures that fees and charges are competitive within the market and are set at a level that will attract rather than deter business.

It should be noted that venue hire fees for structured sporting programs for junior sporting activities will continue to be waived at venues managed by the Shire. The intent is to make junior sport more financially accessible for junior participants and community sporting clubs facilitating junior sports.

A workshop was held with Council on 21 March 2019 to review the draft Schedule of Fees and Charges. The workshop was attended by Councillors Tracey, Male, Mitchell, Fairborn, Marriott, and Matsumoto.

COMMENT

While new fees have been introduced and some existing fees have either been reduced, discontinued or replaced, for most fees, there has either been no change or an increase of less than 2% in line with average inflation. Further recommendations were made to the proposed Fees and Charges Schedule at the workshop resulting in the waiving of event application and venue hire for non-profit organisations.

Several changes have been made to BRAC facility charges with the aim of achieving a balance between affordability and flexible membership options. This will encourage venue utilisation and community participation by appealing to different circumstances amongst community members. The following changes have been made:

· Customer charges have been categorised into Adult, Children, Concession and Family visit;

· Categorised whether swimming pool only, shoot arounds, racquet sports and full facility access; and

· Ticket pre-sales have been distinguished either by period (1 month, 3 months, 6 months and 1 year) or by visit (10 visit pass, 20 visit pass and 30 visit pass) with respective expiry periods.

The main changes to refuse charges at the Waste Management Facilities are summarised below:

· All charges have been changed from volume-based to weight-based charges;

· Introduction of several new charges:

o vehicle bodies with gas tank ($200),

o conveyor belt ($468),

o mattresses ($10),

o gas bottle ($10),

o 200L drum ($5),

o buoys ($5), and

o metal cable ($34);

· Charges for car tyres and light truck tyres have been decreased by 38% and 11% respectively.

· Charges for truck tyres and tractor/ large machinery tyres hand have been increased by 30% and 40%, respectively;

· Charges for 100L, 2.0 cubic meter and 6.0 cubic meter services charges have been removed; and

· Additional collection charge for 240L and 360L bins have been decreased, regardless of whether commercial or residential.

The basis for imposing fees and charges for Council services can be classified as either statutory fees and charges, or charges for the provision of goods and/or services. There are many statutory fees and charges determined under legislation other than the LGA, which dictate the level of fees and charges that may be imposed by Council. Each statutory fee has been referenced to its relevant legislative head of power and noted in the attached Fees and Charges Schedule. Should subsequent updates and changes to these statutory fees be received after adoption of the 2019/20 Fees and Charges Schedule, the new amount will apply and take effect from 1 July 2019.

Fees prescribed in Schedule 2 of the Building Regulations 2012 have been updated after the Council workshop to reflect the increase in minimum fees. No other changes are anticipated to statutory fees charged under the Building Act 2011 which remain the same as the fees published in the Government Gazette in June 2016.

The 2019/20 Fees and Charges Schedule is proposed to take effect from 1 July 2019 except for fees and charges set in accordance with section 53 of the Cemeteries Act 1986 which will not come into effect until not less than 14 days notice has been given in the Government Gazette.

The Fees and Charges Schedule also details the prior year comparison with the 2019/20 fees and charges.

Forecast 2019/20 budget revenue generated through Council charges, licences and statutory fees (excluding rent income and fines) is $8.4M which is $500K lower than $8.9M budgeted in 2018/19. The decrease is mainly attributable to the overall reduction of waste volume at the waste management facility, particularly from construction activities. There has also been a reduction in kerbside commercial waste collection following a number of businesses opting to engage a contractor in place of the Shire service.

Council is requested to endorse the 2019/20 Fees and Charges Schedule which will allow staff to inform the community of the fees and charges that will take effect on 1 July 2019. This will allow businesses to adjust for any financial implications caused to their operations. The 2019/20 Fees and Charges is to be adopted as part of the annual budget in June 2019, however it is not anticipated that there will be significant changes from the Fees and Charges presented here.

CONSULTATION

Nil.

STATUTORY ENVIRONMENT

Local Government Act 1995

6.16. Imposition of fees and charges

(1) A local government may impose* and recover a fee or charge for any goods or service it provides or proposes to provide, other than a service for which a service charge is imposed.

* Absolute majority required.

(2) A fee or charge may be imposed for the following —

(a) providing the use of, or allowing admission to, any property or facility wholly or partly owned, controlled, managed or maintained by the local government;

(b) supplying a service or carrying out work at the request of a person;

(c) subject to section 5.94, providing information from local government records;

(d) receiving an application for approval, granting an approval, making an inspection and issuing a licence, permit, authorisation or certificate;

(e) supplying goods;

(f) such other service as may be prescribed.

(3) Fees and charges are to be imposed when adopting the annual budget but may be —

(a) imposed* during a financial year; and

(b) amended* from time to time during a financial year.

* Absolute majority required.

6.17. Setting level of fees and charges

(1) In determining the amount of a fee or charge for a service or for goods a local government is required to take into consideration the following factors —

(a) the cost to the local government of providing the service or goods;

(b) the importance of the service or goods to the community; and

(c) the price at which the service or goods could be provided by an alternative provider.

(2) A higher fee or charge or additional fee or charge may be imposed for an expedited service or supply of goods if it is requested that the service or goods be provided urgently.

(3) The basis for determining a fee or charge is not to be limited to the cost of providing the service or goods other than a service —

(a) under section 5.96;

(b) under section 6.16(2)(d); or

(c) prescribed under section 6.16(2)(f), where the regulation prescribing the service also specifies that such a limit is to apply to the fee or charge for the service.

(4) Regulations may —

(a) prohibit the imposition of a fee or charge in prescribed circumstances; or

(b) limit the amount of a fee or charge in prescribed circumstances.

6.19. Local government to give notice of fees and charges

If a local government wishes to impose any fees or charges under this Subdivision after the annual budget has been adopted it must, before introducing the fees or charges give local public notice of –

(a) its intention to do so; and

(b) the date from which it is proposed the fees or charges will be imposed.

Waste Avoidance and Resource Recovery Act 2007

(1) A local government may, in lieu of, or in addition to a rate under section 66, provide for the proper disposal of waste, whether within its district or not, by making an annual charge per waste receptacle, payable in one sum or by equal monthly or other instalments in advance, in respect of premises provided with a waste service by the local government.

(2) The charge is to be imposed on the owner (as defined in section 64(1)) or occupier, as the local government may decide, of any premises provided with a waste service by the local government.

(3) The provisions of the Local Government Act 1995 relating to the recovery of general rates apply with respect to a charge referred to in subsection (1).

(4) In the case of premises being erected and becoming occupied during the year for which payment is to be made, the charge for the service provided is to be the sum that proportionately represents the period between the occupation of the premises and the end of the year for which payment is made.

(5) Notice of any charge made under this section may be included in any notice of rates imposed under section 66 or the Local Government Act 1995, but the omission to give notice of a charge does not affect the validity of the charge or the power of the local government to recover the charge.

(6) A charge may be limited to premises in a particular portion of the area under the control of the local government.

(7) Charges under this section may be imposed in respect of and are to be payable for all premises in respect of which a waste service is provided, whether such premises are rateable or not.

(8) A local government may make different charges for waste services rendered in different portions of its district.

68. Fees and charges fixed by local government

Nothing in this Part prevents or restricts a local government from imposing or recovering a fee or charge in respect of waste services under the Local Government Act 1995 section 6.16.

Building Regulations 2012

53. Inspection of barrier to private swimming pool

(1) The local government for the district in which a private swimming pool containing water that is more than 300 mm deep is located must arrange for an authorised person to inspect the barrier to the private swimming pool at intervals of no more than 4 years for the purpose of monitoring whether the provisions in regulations 50 and 52 are being complied with.

(2) A local government may, for a financial year, fix the charge to be imposed on each owner or occupier of land on which there is a private swimming pool containing water that is more than 300 mm deep, to meet the estimated cost in that financial year of carrying out the inspections mentioned in subregulation (1), but the charge fixed —

(a) must not exceed the estimated average cost to the local government of carrying out inspections in that year; and

(b) must not exceed $58.45.

POLICY IMPLICATIONS

Nil.

FINANCIAL IMPLICATIONS

The Draft Operating Budget for 2019/20 has been prepared with consideration of the Draft Fees and Charges Schedule as attached, with estimated income of $8.4M for the 2019/20 financial year.

RISK

Not endorsing the proposed 2019/20 Fees and Charges Schedule will mean that staff are not provided with a suitable amount of time to communicate changes to the community. This will have a reputation risk and may result in a reduction in income generated through fees and charges.

The possible level of impact is considered ‘High’ ($50,000-$150,000) with the likelihood of this outcome is considered to be ‘Almost Certain’.

The Risk Rating is therefore determined as ‘Extreme’.

To mitigate the ‘Extreme’ risk, it is recommended that Council endorse the 2019/20 Schedule of Fees and Charges.

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

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

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

Moved: Cr D Male Seconded: Cr C Mitchell

That Council:

1. Pursuant to section 6.16 of the Local Government Act 1995, endorse the Schedule of Fees and Charges as attached for 2019/20 effective from 1 July 2019 excluding statutory fees;

2. Pursuant to section 53 of the Cemeteries Act 1986, endorse the Fees & Charges for the Broome Cemetery as included in the Schedule of Fees and Charges under the section ‘Other Community Amenities’;

3. Pursuant to Regulation 53(2) of the Building Regulations 2012, endorse a non-GST Swimming Pool Inspection Fee of $58.45; and

4. Pursuant to section 67 of the Waste Avoidance and Resources Recovery Act 2007, endorse the following charges for the removal and deposit of domestic and commercial waste:

*Description*	*GST*	*Amount*
*a) Standard Refuse Kerbside Collection Service*
*Waste/Recycle Service (240L Waste bin weekly and 240L recycle bin fortnightly)*	*Nil*	*$469.20*
*Waste/Recycle Service (240L Waste bin weekly and 360L recycle bin fortnightly)*	*Nil*	*$469.20*
*b) Refuse Additional Kerbside Collection Services*
Additional 240L Waste Service (one additional service per week) - Includes additional bin	*Nil*	*$250.00*
Additional 240L Recycle Service (one additional service per fortnight) - Includes additional bin	*Nil*	*$165.00*
Additional 360L Recycle Service (one additional service per fortnight) - Includes additional bin	*Nil*	*$180.00*

Moved: Cr P Matsumoto Seconded: Cr D Male

1.	2019/20 Schedule of Fees and Charges

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

9.4.4 MONTHLY STATEMENT OF FINANCIAL ACTIVITY REPORT MARCH 2019

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 March 2019

SUMMARY: Council is required by legislation to consider and adopt the Monthly Statement of Financial Activity Report for the period ended 31 March 2019, 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 75.07%

Total Rates Raised Revenue 100% (of which 94.15% has been collected)

Total Other Operating Revenue 53%

Total Operating Expenditure 66%

Total Capital Revenue 64%

Total Capital Expenditure 44%

Total Sale of Assets Revenue 24%

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.

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 Finance and Costing Review (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 March 2019; and

2. Receives the General Fund Summary of Financial Activity (Schedules 2-14) for the period ended 31 March 2019.

Officers propose that a consultation be undertaken with ratepayers potentially impacted by the proposed changes, as part of the 21-day legislative requirement to provide local public notice. Written notice about the differential rates and object and reasons will be sent out to the owners of vacant commercial and tourism properties in a manner similar to the consultation done with UV-Commercial ratepayers having less than 30 ratepayers in the rating category.

1.	Monthly Financial Report - March 2019
2.	Schedule 2
3.	Schedule 3 - 16

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

9.4.5 INTRODUCTION OF GRV VACANT RATING CATEGORY

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: ARA12

AUTHOR: Finance Officer - Rates

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Corporate Services

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 28 March 2019

SUMMARY: This report proposes to undertake ratepayer consultation on discontinuance of the Gross Rental Value (GRV) Residential Vacant rate category with the aim of introducing a single rate category for all GRV vacant properties irrespective of zoning. It is proposed to introduce the changes effective 1 July 2019 in order to ensure the consistent, fair and equitable treatment of all vacant properties.

BACKGROUND

Previous Considerations

SMC 13 July 2011 Item 9.3.3

The Shire of Broome (the Shire) is responsible for ensuring that rates charged are fair and equitable across all ratepayers of the district. Section 6.33 of the Local Government Act 1995 (LGA) provides the ability to differentially rate properties based on zoning and/or land use as determined by the Shire. The application of differential rating maintains equity in the rating of properties across the Shire, enabling Council to provide facilities, infrastructure and services to the entire community and visitors.

The Valuation of Land Act 1978 (VLA) imposes limitations on the manner of valuation of properties whereby the value is prescribed to be determined as a percentage of capital value whenever an active rental market for land doesn’t exist (such as that of vacant properties). Prior to 24 January 2011, only one prescribed percentage could be set by regulation for all land valued this way. The prescribed percentage was set in 1979 at 5% which caused concern for owners of vacant residential properties due to the higher assessed rental value of their land in comparison to those applied to neighbouring improved properties.

To address this anomaly, the definition of ‘assessed value’ in the VLA was amended to allow for different percentages to be prescribed for different classes of land. New regulations took effect on 1 July 2011 applying a single rate of 3% to all vacant residential land while the existing 5% continues to apply to all remaining vacant land. Despite a general Gross Rental Value (GRV) revaluation not due for the year 2011-2012, the GRV of vacant residential properties in Broome were amended with effect from 1 July 2011.

With the favourable change in method of valuing vacant residential land along with the anticipated opening of many present and future residential subdivisions in Broome around that time, in keeping with the Shire’s responsibility to ensure that rates applied are fair and equitable, it was determined at the time that it was in the best interest of the community that rate categories be designed to encourage development and discourage speculative land holding.

The GRV Residential Vacant rate category was introduced for the first time in the adoption of the annual budget at the Special Meeting of Council dated 13th July 2011. The proposed rate in the dollar for the GRV Residential Vacant rate category was higher than the base GRV Residential rate category. Since 2011, this rate in the dollar is annually reviewed and was 63% higher than the GRV Residential rate category in 2018/19.

Current Rating Categories

The 2018/19 differential rate categories and corresponding rates in the dollar are as follows:

CATEGORY	RATE IN THE DOLLAR (in cents)	MINIMUM PAYMENT
GRV - Residential	9.9283	$1,220
GRV - Residential – Vacant	16.7027	$1,220
GRV - Commercial	10.9568	$1,220
GRV - Tourism	15.2390	$1,220
UV - Mining	12.5464	$500
UV - Rural	0.6687	$1,220
UV - Commercial Rural	3.1327	$1,220

As can be seen from the above differential rates, the GRV Residential Vacant rate category has the highest rate in the dollar of all rate categories.

Currently there is no rating category for vacant GRV properties classified as either Commercial or Tourism. This appears to be a failure to encourage development and discourage speculative land holding of land zoned for commercial and tourism purposes.

This report aims to address this irregularity and make recommendations for Council’s consideration.

COMMENT

Fairness, Equity and Consistency

As per the objects and reasons adopted by Council in June 2018, the GRV Residential Vacant rate category consists of vacant properties located within the townsite boundaries excluding land zoned as Tourist or Commercial. The object and reasons further state:

“The object of the rate for this category is designed to encourage land owners to develop residential vacant land, discourage land banking and to reflect the different method used for the valuation of vacant residential land as compared to the GRV Residential rate category.

The reason is that excessive vacant land leaves subdivisions appearing barren and unsightly to the detriment of the aesthetics of the area. The rate in the dollar for this category is 62% higher than the GRV Residential base rate.”

Ratepayers with vacant land in residential zoning are charged a higher rate in dollar to encourage development and discourage land banking. Considering the above, it seems unfair and inequitable that vacant properties in the GRV Residential rate category are penalised for not developing the vacant land, whereas tourism and commercial categories can continue to hold vacant land without a higher rate in dollar being imposed.

At the date of this report there were a total of 328 properties classified under GRV Residential Vacant with a rateable value of $3.27 million. Approximate yield from this rating category for 2018/19 totalled $525,858. Officers do not propose any changes to the classification of these properties and recommend that they remain classified as vacant, noting that the GRV Residential Vacant rate category is proposed to be renamed to GRV Vacant.

Based on the review of GRV properties carried out in February 2019, there are a total of 49 vacant properties zoned as either GRV Commercial or GRV Tourism, with a total rateable value of $2.06 million. Rates raised for 2018/19 from these properties yielded a total of $265,634. Officers propose that these properties be reclassified as GRV Vacant with the corresponding rate in the dollar applied. It is expected that this change will yield a total of $332,343 based on the 2018/19 rate in the dollar for vacant properties. This will see an increase in rates of approximately $66,708.95. This change is not aimed at increasing the rates revenue but is designed to ensure that Council’s rating methodology is applied fairly and consistently.

Legislative and Policy Implications

As per the Department of Local Government Sport and Cultural Industries (DLGSC) Rating Policy on Differential Rates (s.6.33) dated March 2016, local governments may impose a single general rate which applies to all of the properties in the unimproved value or gross rental value category. Alternatively, local governments can distinguish between land in either category based on its zoning, use or whether it is vacant land or a combination of these factors, and apply a differential general rate to each. Non-usage is deemed to be the primary use of vacant properties whether zoned residential, commercial or tourism.

The principles of fairness, equity and consistency will therefore be upheld if a single general rate would apply to vacant land as this results in rating similar properties used for the same purpose in the same way.

Consulting with Ratepayers

Community participation in the decisions and affairs of the local government is a key principle of the LGA. In keeping with this principle, affected property owners should be informed of proposed changes and provided with an opportunity to comment, especially where the changes are expected to significantly alter the rates payable.

For this comment to be meaningful, the information disseminated should include reasons for seeking to change the rating category, an indication of the overall likely impact of such changes, and details of how to comment on the proposed changes.

Officers believe that there is currently an inequity in the rating of vacant properties within the district and propose changing the rating category to address this inequity. The proposed changes are likely to have a significant impact on ratepayers and that information should be considered when assessing the appropriateness of changes to the rate category.

Method of Consultation

Officers recommend that a letter be sent to each affected landowner together with an advertising campaign utilising local news papers in addition to the Shire’s website and Facebook pages.

Officers propose that the following information be provided to the affected property owners:

a) General advice to the district (via advertisement) of Council’s decision to undertake the review and the rationale for the review;

b) Advice to the affected property owners of a rating category review, the rationale for the review and details of the review process;

c) Advice to the affected property owners on the outcome of the review as it relates to their property and the likely impact that any change in rating category will have on their property;

d) Details of how to lodge an objection to the change in rating category; and

e) The outcome of any objections or appeals.

The submissions received through this process will be assessed by officers and presented to Council at a future Ordinary Council Meeting for consideration.

CONSULTATION

Department of Local Government Sports and Cultural Industries

STATUTORY ENVIRONMENT

Local Government Act, 1995

6.33 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, whether or not under a local planning scheme or improvement scheme in force under the Planning and Development Act 2005; or

b. a purpose for which the land is held or used as determined by the local government; or

c. whether or not the land is vacant land; or

d. any other characteristic or combination of characteristics prescribed.

POLICY IMPLICATIONS

DLGSC Rating Policy Differential Rates (s.6.33) March 2016

Policy 2.2.4 Rating

FINANCIAL IMPLICATIONS

The table below indicates the estimated additional rates revenue generated should vacant properties within the GRV Commercial and GRV Tourism rate categories be transitioned to the GRV Vacant rate category. It should be noted that figures below are based on 2018/19 rates.

Assessment	GRV	Current Category	Current RID	GRV Vacant RID	Current Rates	Rates based on Vacant Category	Impact on Rates
A101347	135000.00	GRV - TOURISM	0.15239	0.160727	20572.65	21698.15	1125.50
A106820	102500.00	GRV - TOURISM	0.15239	0.160727	15619.98	16474.52	854.54
A107650	180000.00	GRV - TOURISM	0.15239	0.160727	27430.20	28930.86	1500.66
A114700	120000.00	GRV - TOURISM	0.15239	0.160727	18286.80	19287.24	1000.44
A120422	48000.00	GRV - TOURISM	0.15239	0.160727	7314.72	7714.90	400.18
A120460	85000.00	GRV - TOURISM	0.15239	0.160727	12953.15	13661.80	708.65
A120495	34500.00	GRV - TOURISM	0.15239	0.160727	5257.46	5545.08	287.63
A303139	15000.00	GRV - TOURISM	0.15239	0.160727	2285.85	2410.91	125.06
A304741	35000.00	GRV - TOURISM	0.15239	0.160727	5333.65	5625.45	291.80
A304868	95000.00	GRV - TOURISM	0.15239	0.160727	14477.05	15269.07	792.02
A306246	30000.00	GRV - TOURISM	0.15239	0.160727	4571.70	4821.81	250.11
A306483	32500.00	GRV - TOURISM	0.15239	0.160727	4952.68	5223.63	270.95
A101400	19500.00	GRV - COMMERCIAL	0.109568	0.160727	2136.58	3134.18	997.60
A101410	38500.00	GRV - COMMERCIAL	0.109568	0.160727	4218.37	6187.99	1969.62
A102250	27000.00	GRV - COMMERCIAL	0.109568	0.160727	2958.34	4339.63	1381.29
A102300	22500.00	GRV - COMMERCIAL	0.109568	0.160727	2465.28	3616.36	1151.08
A102301	22500.00	GRV - COMMERCIAL	0.109568	0.160727	2465.28	3616.36	1151.08
A102510	20000.00	GRV - COMMERCIAL	0.109568	0.160727	2191.36	3214.54	1023.18
A104772	55000.00	GRV - COMMERCIAL	0.109568	0.160727	6026.24	8839.99	2813.75
A105110	34500.00	GRV - COMMERCIAL	0.109568	0.160727	3780.10	5545.08	1764.99
A105111	32500.00	GRV - COMMERCIAL	0.109568	0.160727	3560.96	5223.63	1662.67
A106902	70000.00	GRV - COMMERCIAL	0.109568	0.160727	7669.76	11250.89	3581.13
A108510	31000.00	GRV - COMMERCIAL	0.109568	0.160727	3396.61	4982.54	1585.93
A110750	17000.00	GRV - COMMERCIAL	0.109568	0.160727	1862.66	2732.36	869.70
A110770	17250.00	GRV - COMMERCIAL	0.109568	0.160727	1890.05	2772.54	882.49
A113293	61500.00	GRV - COMMERCIAL	0.109568	0.160727	6738.43	9884.71	3146.28
A120150	33000.00	GRV - COMMERCIAL	0.109568	0.160727	3615.74	5303.99	1688.25
A120582	26500.00	GRV - COMMERCIAL	0.109568	0.160727	2903.55	4259.27	1355.71
A121015	32000.00	GRV - COMMERCIAL	0.109568	0.160727	3506.18	5143.26	1637.09
A121016	28500.00	GRV - COMMERCIAL	0.109568	0.160727	3122.69	4580.72	1458.03
A140073	24250.00	GRV - COMMERCIAL	0.109568	0.160727	2657.02	3897.63	1240.61
A140076	17750.00	GRV - COMMERCIAL	0.109568	0.160727	1944.83	2852.90	908.07
A302873	18750.00	GRV - COMMERCIAL	0.109568	0.160727	2054.40	3013.63	959.23
A302875	18750.00	GRV - COMMERCIAL	0.109568	0.160727	2054.40	3013.63	959.23
A302895	55000.00	GRV - COMMERCIAL	0.109568	0.160727	6026.24	8839.99	2813.75
A303416	84000.00	GRV - COMMERCIAL	0.109568	0.160727	9203.71	13501.07	4297.36
A303540	25000.00	GRV - COMMERCIAL	0.109568	0.160727	2739.20	4018.18	1278.98
A304238	55000.00	GRV - COMMERCIAL	0.109568	0.160727	6026.24	8839.99	2813.75
A304300	22250.00	GRV - COMMERCIAL	0.109568	0.160727	2437.89	3576.18	1138.29
A304301	22250.00	GRV - COMMERCIAL	0.109568	0.160727	2437.89	3576.18	1138.29
A304302	24500.00	GRV - COMMERCIAL	0.109568	0.160727	2684.42	3937.81	1253.40
A304864	49500.00	GRV - COMMERCIAL	0.109568	0.160727	5423.62	7955.99	2532.37
A305114	25500.00	GRV - COMMERCIAL	0.109568	0.160727	2793.98	4098.54	1304.55
A305118	24250.00	GRV - COMMERCIAL	0.109568	0.160727	2657.02	3897.63	1240.61
A305124	26000.00	GRV - COMMERCIAL	0.109568	0.160727	2848.77	4178.90	1330.13
A305127	16250.00	GRV - COMMERCIAL	0.109568	0.160727	1780.48	2611.81	831.33
A305130	22500.00	GRV - COMMERCIAL	0.109568	0.160727	2465.28	3616.36	1151.08
A305396	17000.00	GRV - COMMERCIAL	0.109568	0.160727	1862.66	2732.36	869.70
A305702	18000.00	GRV - COMMERCIAL	0.109568	0.160727	1972.22	2893.09	920.86
	2,067,750.00				265,634.31	332,343.25	66,708.95

RISK

The financial implication of this decision is moderate, with a change to the rate category leading to increased revenue. This change is expected to impact about 49 properties with an average increase of $1,361.41 (maximum increase - $4,297.36, minimum increase - $125.06).

STRATEGIC IMPLICATIONS

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

Affordable services and initiatives to satisfy community need

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

Affordable and equitable services and infrastructure

Affordable land for residential, industrial, commercial and community use

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

Sustainable and integrated strategic and operational plans

Responsible resource allocation

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

Moved: Cr C Mitchell Seconded: Cr M Fairborn

That Council:

1. Notes the lack of a consistent, fair and equitable approach to the rating of vacant land within the townsite and the need for a consultation about the differential rates process through direct notification;

2. Authorises the Chief Executive Officer to undertake consultation with ratepayers potentially affected by the introduction of a GRV – Vacant rating category;

3. Requests the Chief Executive Officer to receive, review and present to Council the results of the consultation undertaken; and

4. Requests the Chief Executive Officer to make recommendations based on the results of the review of rating category.

9.4.6 PROPERTY SEIZURE AND SALE ORDER ON LAND - UNPAID RATES AT LEAST 3 YEARS

1.	Landgate Letter Dated 24 January 2011 Change in Prescribed Percentages for Vacant Properties
2.	Landgate Letter Dated 1 February 2011 Revised GRV of Residential Properties

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

With regard to Item 9.4.6 Cr C Mitchell declared a financial interest, pursuant to section 5.60a of the Local Government Act 1995, and left the chambers at 5:37pm.

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: ARA06

AUTHOR: Finance Officer - Rates

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Corporate Services

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 28 March 2019

SUMMARY: This report seeks Council approval to obtain Property Seizure and Sale Orders (PSSO) on properties with unpaid rates in excess of 3 years.

BACKGROUND

Previous Considerations

OMC 19 March 2009 Item 9.1.3

OMC 17 December 2015 Item 9.4.3

OMC 25 August 2016 Item 9.4.4

OMC 14 December 2017 Item 9.4.5

COMMENT

In recovering debt, the Shire of Broome (the Shire) is guided by sections 6.13, 6.45, 6.51, 6.56, 6.60, 6.64 and 6.69 of the Local Government Act 1995 (LGA). The Shire established a debt recovery policy to guide operations, decision making and to set out a clear, equitable, accountable and transparent process for the Shire to follow in the management and collection of outstanding debts including rates.

Policy 2.2.5 Debt Recovery (the policy) was originally adopted on 19 March 2009 to enhance the functions of the LGA Part 6, Division 6, Subdivision 5: Recovery of Unpaid Rates and Service Charges to ensure the timely recovery of unpaid rates and service charges. The policy was reviewed, and subsequent amendments to enhance the efficiency and effectiveness of the policy were adopted by Council at the Ordinary Meeting of Council (OMC), held 14 December 2017.

Among the key aspects of the policy amendment was the clarification on requirement of Council approval when obtaining a PSSO. Council resolved to delegate authority to officers to initiate PSSO’s on Goods following all other debt recovery options being exhausted. A PSSO on Land however can only proceed with Council approval.

A PSSO on Goods may proceed without the need for Council endorsement. If a PSSO on Goods fails to identify sufficient freehold goods for seizure by a court-appointed Bailiff, and the rates remained unpaid for at least 3 years, authorisation to initiate a PSSO on Land must then be requested through Council.

As per the policy, recovery under the PSSO on Land is to be initiated only if any rates or service charges which are due in respect of any rateable land have been unpaid for at least 3 years, where all attempts to recover money due have failed, and after all reasonable efforts and avenues to locate the owner have been exhausted. The policy requires Council approval for the issue of a PSSO on Land to take the following actions as defined under the LGA:

• lease the land (s6.65);

• sell the land (s.6.68); and

• have the land transferred to the Shire (s.71).

The above actions are required to be reported on a confidential basis to Council for approval.

Attached to this report is a confidential list of ratepayers having unpaid rates exceeding 3 years. This report recommends obtaining a PSSO on Land on these properties. Debts have remained outstanding despite the Shire carrying out all reasonable efforts and avenues to recover the debt, including numerous written and verbal interactions by debt collectors and Shire staff (see attachment 1 for full details of communications undertaken with each defaulting ratepayer).

To summarise, the following actions have undertaken by the Shire before recommending this approach to recovering outstanding debts:

1. Final notices had been provided 14 days after the rates notice due date.

2. Letters of Demand had been issued by the Shire’s debt recovery agent 14 days after the date of the final notice issuance.

3. General Procedure Claims (GPC) have been issued by the Shire’s debt recovery agent 14 days after the issue of the Letter of Demand. The GPCs on the properties listed in Attachment 1 were obtained on 7 November 2017 and it is proposed that the amount to be claimed would be the resulting ending balance at 30 June 2019.

4. As detailed in the attachment to this report, in addition to the above standard debt collection procedures, significant written and verbal communication has been carried out over several years by both Shire officers and the Shire’s debt recovery agents.

This ongoing effort to address the outstanding debt has been largely ignored and has not resulted in the collection of rates due.

5. In some cases payment arrangements have been negotiated and accepted in various stages of debt recovery (e.g. after final notices or after Letter of Demand), however these ratepayers have subsequently defaulted on the commitment to pay.

Defaulting on payment arrangements necessitates a repeat of the above procedures. In these cases the defaulting ratepayers are utilising payment arrangements as a mechanism to delay the legal debt recovery process.

Typically, where a GPC has been served and remains unsatisfied for a period of 21 days, the next step would be to inform Council’s debt recovery agent to pursue the recovery of the debt by the issuance of a PSSO on Goods. Where a GPC has been served and remains unsatisfied for a period of 21 days, whether through payments or recovery of personal goods, and the debts are already outstanding for more than 3 years, the LGA allows local governments to exercise a PSSO on Land. Due to the time taken to progress through debt recovery, it is proposed that both the PSSO on Goods and PSSO on Land be obtained at the same time to save on court fees. PSSO on Goods have not been previously obtained due to ratepayers entering into payment arrangement only to default at a later time.

The properties listed in Attachment 1 (summarised in the table below) have debts outstanding beyond three years. It should be noted that while there were payments made in 2015-16, 2016-17 and 2017-18, these payments are required by section 6.62 of the LGA to be applied towards rates or service charges due in the order in which they become due and any outstanding cost of proceedings for the recovery of any such rates or charges.

The ratepayers owning properties in the list did not respond to the GPCs. This could either be caused by an inability to locate the ratepayers or the ratepayer disregarding the GPC and other communications received from the Shire. Due to resourcing constraints within the Shire, external debt collectors are engaged to locate the ratepayers through investigative means.

It is recommended that the Shire proceeds with the PSSO on Land since this option is the only available debt recovery option. Nevertheless, as part of normal court proceedings, Council’s debt collectors would first attempt to issue PSSO on Goods and if this does not lead to satisfactory recovery of debt, a PSSO on Land would follow. Officers will keep Council informed on the progress of the debt collection process and will advise should the process progress to the PSSO on Land being initiated.

Year	Earlier years	Rates Billing	Interest	Legal charges	Admin fees	Payment Received	Grand Total
A110891	1,502	15,941	5,159	6,281		-7,773	21,109
2013-14	1,502						1,502
2014-15		2,949	508	1,063			4,520
2015-16		3,151	628	3,799		-7,773	-194
2016-17		3,218	942				4,160
2017-18		3,276	1,496	1,419			6,191
2018-19		3,346	1,585				4,930
A119634	4,175	12,972	7,589	1,960			26,696
2013-14	4,175						4,175
2014-15		2,507	720	55			3,282
2015-16		2,538	1,113	523			4,175
2016-17		2,593	1,520				4,113
2017-18		2,639	2,210	1,382			6,231
2018-19		2,695	2,025				4,720
A200681		7,553	3,795	6,348		-2,684	15,012
2014-15		1,616	213	1,113			2,941
2015-16		1,610	478	3,816		-2,684	3,220
2016-17		1,457	813				2,271
2017-18		1,419	1,151	1,419			3,989
2018-19		1,450	1,141				2,591
A302990	26	15,448	4,045	3,243		-4,463	18,300
2013-14	26						26
2014-15		2,963	358	1,213			4,533
2015-16		3,030	326	625		-4,463	-481
2016-17		3,093	738				3,831
2017-18		3,148	1,254	1,405			5,807
2018-19		3,214	1,369				4,584
A303370	543	12,443	3,898	1,771	45	-3,618	15,082
2013-14	543						543
2014-15		2,335	285	40			2,659
2015-16		2,483	582	471		-2,000	1,537
2016-17		2,495	754				3,250
2017-18		2,539	1,148	1,260	45	-1,618	3,373
2018-19		2,591	1,129				3,720
A303862	1,639	18,035	3,522	1,519	21	-8,097	16,639
2013-14	1,639						1,639
2014-15		3,369	453	629		-6,098	-1,646
2015-16		3,559	239		21	-1,999	1,819
2016-17		3,633	539				4,172
2017-18		3,699	1,059	889			5,647
2018-19		3,776	1,232				5,008
Grand Total	7,886	82,392	28,008	21,121	66	-26,634	112,838

The process and timelines for PSSO for sale of land are as per below:

1. Debt collector seeks order from the court and seeks certified copy of the order (CCO) from the Bailiff (8 weeks)

2. Lawyers draft letter for registration of the PSSO on the title and send it to Landgate (2 weeks)

3. Landgate processes the PSSO and lodges the CCO on the title and issues a certificate of title showing the lodgement (8 weeks)

4. Shire receives a letter confirming that the PSSO has been processed and CCO is on the title (2 days)

5. Shire issues instructions to Bailiff for sale of property after which the Bailiff completes the remaining formalities, sets auction days, advertises the auction, holds auction and sells the property (9 months).

The entire process is expected to take up to 1 year and therefore poses additional delay to debt recovery if not commenced at the earliest time possible. We request that Council approve the request to proceed with PSSO on Land for the properties listed in the attachment to this report. Upon approval by Council, the ratepayers will be notified both in writing and via phone that the outstanding rates on their property have been approved by Council to be recovered through PSSO on Land.

Council should note that legal proceedings will be halted should affected ratepayers make acceptable payment arrangements subsequent to Council approval.

Council should note that section 6.71(1)(b) provides for the transfer of land in fee simple to the local government should the PSSO of Land be enacted and the property remain unsold for a period exceeding 12 months.

CONSULTATION

Magistrates Court of Western Australia

Austral (Austral Mercantile)

AMPAC Debt Collection

WALGA Rates Specialist

STATUTORY ENVIRONMENT

LOCAL GOVERNMENT ACT 1995 - SECT 6.64

6.55 . Recovery of rates and service charges

(1) Subject to subsection (2) and the Rates and Charges (Rebates and Deferments) Act 1992 rates and service charges on land are recoverable by a local government from —

(i) the owner at the time of the compilation of the rate record; or

(ii) a person who whilst the rates or service charges are unpaid becomes the owner of the land.

(2) A person who, by virtue of an Act relating to bankruptcy or insolvency or to the winding up of companies, has become the owner of land in the capacity of a trustee or liquidator, is not on that account personally liable to pay, out of the person’s own money, rates or service charges which are already due on, or become due on that land while that person is the owner in that capacity.

6.56 . Rates or service charges recoverable in court

(1) If a rate or service charge remains unpaid after it becomes due and payable, the local government may recover it, as well as the costs of proceedings, if any, for that recovery, in a court of competent jurisdiction.

(2) Rates or service charges due by the same person to the local government may be included in one writ, summons, or other process.

6.64 . Actions to be taken

(1) If any rates or service charges which are due to a local government in respect of any rateable land have been unpaid for at least 3 years the local government may, in accordance with the appropriate provisions of this Subdivision take possession of the land and hold the land as against a person having an estate or interest in the land and —

(a) from time to time lease the land; or

(b) sell the land; or

(c) cause the land to be transferred to the Crown; or

(d) cause the land to be transferred to itself.

(2) On taking possession of any land under this section, the local government is to give to the owner of the land such notification as is prescribed and then to affix on a conspicuous part of the land a notice, in the form or substantially in the form prescribed.

(3) Where payment of rates or service charges imposed in respect of any land is in arrears the local government has an interest in the land in respect of which it may lodge a caveat to preclude dealings in respect of the land, and may withdraw caveats so lodged by it.

6.68 Exercise of power to sell land

(1) Subject to subsection (2), a local government is not to exercise its power under section 6.64(1)(b) (in this Subdivision and Schedule 6.3 referred to as the power of sale ) in relation to any land unless, within the period of 3 years prior to the exercise of the power of sale, the local government has at least once attempted under section 6.56 to recover money due to it.

(2) A local government is not required to attempt under section 6.56 to recover money due to it before exercising the power of sale where the local government —

(a) has a reasonable belief that the cost of the proceedings under that section will equal or exceed the value of the land; or

(b) having made reasonable efforts to locate the owner of the property is unable to do so.

(3A) A local government is to ensure that a decision to exercise a power of sale without having, within the period of 3 years prior to the exercise of the power of sale, attempted under section 6.56 to recover the money due to it and the reasons for the decision are recorded in the minutes of the meeting at which the decision was made.

(3) Schedule 6.3 has effect in relation to the exercise of the power of sale.

6.69 . Right to pay rates, service charges and costs, and stay proceedings

(1) Up to 7 days prior to the time of the actual sale of any land for non-payment of rates or service charges a person having an estate or interest in the land may pay the rates or service charges and the costs and expenses incurred to that time in proceedings relating to the proposed sale.

(2) At any time after the 7 days referred to in subsection (1) but prior to the time of the actual sale of any land the local government may, upon such terms and conditions as are agreed between the parties, accept payment of the outstanding rates or service charges.

(3) On payment being made under subsection (1) or (2) the proceedings relating to the proposed sale are stayed and the local government is required to make such notifications and take such measures as are prescribed in relation to the payment and the cancellation of the proposed sale.

6.71 . Power to transfer land to Crown or to local government

(1) If under this Subdivision land is offered for sale but at the expiration of 12 months a contract for the sale of the land has not been entered into by the local government, it may by transfer, where the land is subject to the provisions of the Transfer of Land Act 1893 , and by deed, where the land is not subject to the provisions of that Act, transfer or convey the estate in fee simple in the land to —

(a) the Crown in right of the State; or

(b) the local government.

(2) When a local government exercises the power referred to in subsection (1)(a) in relation to any land all encumbrances affecting the land are, by virtue of this section of no further force or effect against that land and the Registrar of Titles or the Registrar of Deeds and Transfers, as the case requires, is to give effect to this section.

(3) When exercising the power referred to in subsection (1)(b) the local government is required to pay the sum secured by, or payable under, a mortgage, lease, tenancy, encumbrance or charge in favour of the Crown in right of the State or a department, agency, or instrumentality of the Crown in right of the State.

(4) Schedule 6.3 has effect in relation to the exercise of the power referred to in subsection (1).

Schedule 6.3 Provisions relating to sale or transfer of land where rates or service charges unpaid

1 . Conditions for exercise of power of sale of land

(1) A local government is not to exercise the power of sale until it has caused notice requiring payment of the rates or service charges owing in respect of the land —

(a) to be served on the owner of the land by being given to him or her or by being sent by certified mail to the address, if any, appearing in a register kept under the Transfer of Land Act 1893 or in a memorial or record kept under the Registration of Deeds Act 1856 relating to the land or by being advertised under subclause (3); and

(b) to be served on such other persons as appear by the records which relate to estates and interests in land to have an estate or interest in the land, by being given to, or by being sent by certified mail to, each of them at their address, if any, appearing in the record, or by being so advertised; and

(c) to be posted on the official notice board of the local government for not less than 35 days.

(2) The local government is to cause the notice requiring payment —

(a) to be in writing and be dated and signed by the CEO; and

(b) to specify the land in respect of which the rates or service charges are owing; and

(c) to specify the total amounts owing in respect of rates or service charges of which payment is required; and

(d) to include a statement that in default of payment of the amounts specified in the notice, the land will be offered for sale by public auction after the expiration of 3 months from the date of the notice at a time appointed by the local government; and

(e) to be in, or substantially in, the form prescribed unless subclause (3) applies.

(3) If in the case of a person required by this clause to be served, no sufficient address appears in a register kept under the Transfer of Land Act 1893 or in a memorial or record kept under the Registration of Deeds Act 1856 , the local government is to cause the notice requiring payment in, or substantially in, the prescribed form to be served on that person by local public notice and may include in that notice land belonging to more than one owner.

(4) The local government is to appoint a time not less than 3 months and not more than 12 months from the service of the notices required by this clause as the time at which the land may be offered for sale by public auction.

[Clause 1 amended by No. 81 of 1996 s. 153(1); No. 60 of 2006 s. 144(4).]

2 . Advertisement for sale

(1) The local government is to give Statewide public notice of the sale —

(a) in, or substantially in, the prescribed form; and

(b) by such other means, if any, as the local government considers is necessary or desirable.

(2) In the Statewide public notice the local government —

(a) may include land owned by more than one owner; and

(b) is to so describe the land and improvements, if any, on the land, as to identify the land and to convey to persons likely to be interested in the sale the condition of the land and improvements.

(3) The local government is to deliver a memorial of the Statewide public notice to the Registrar of Titles or to the Registrar of Deeds and Transfers, as the case requires, who is to register the memorial and endorse or note the title and land register or record, in respect of each piece of land comprised in the memorial.

(4) When the memorial is registered the Registrar of Titles, or the Registrar of Deeds and Transfers, as the case requires, is prohibited from registering and from accepting for registration an instrument affecting the land without the consent of the local government, until the land ceases under section 6.69 or clause 7 to be bound by this subclause but that prohibition does not extend beyond 12 months from the day on which the memorial is so delivered.

[Clause 2 amended by No. 47 of 2011 s. 16.]

3. Power of sale

The power of sale includes —

(a) power to sell the whole or part of the land either together or in lots —

(i) by public auction; or

(ii) by private contract, if having been offered for sale by public auction, it has not been sold,

subject to such terms and conditions with respect to the payment of the purchase money or any other matter, including power to fix a reserve price, as the local government thinks fit; and

(b) power to vary a contract of sale by agreement with the other party to the contract, and to buy in at auction; and

(c) power to rescind a contract for sale on default by the other party to the contract, and to resell without being answerable for loss occasioned by the rescission and resale; and

(d) power to make such thoroughfares and to grant such easements of right-of-way or drainage over the land as the circumstances of the case require and the local government thinks fit.

4. Power of local government to transfer or convey land

(1) A local government exercising the power of sale of any land has power —

(a) by transfer, where the land is under the Transfer of Land Act 1893 ; and

(b) by deed or transfer, where the land is not under that Act,

to transfer or convey to the purchaser an indefeasible estate in fee simple subject only to the encumbrances specified in section 6.75(1)(c), (d) or (e).

(2) The Registrar of Titles or the Registrar of Deeds and Transfers may register a transfer or conveyance of land by a local government under this clause if the transfer is in the approved form and the conveyance is acceptable to the Registrar of Deeds and Transfers.

(3) Where the land sold is subject to the provisions of the Transfer of Land Act 1893 , the Registrar of Titles, with the consent of the Commissioner of Titles, may dispense with the production of the duplicate certificate of title (if any) but the Registrar may cause such orders to be made and such advertisements to be published as are provided for by that Act in the case of dealing with land the duplicate certificate of title of which is lost or not produced.

[Clause 4 amended by No. 81 of 1996 s. 153(1); No. 47 of 2011 s. 16.]

5. Application of purchase money

Where a local government has exercised its power of sale it is required to apply the proceeds of sale in the following manner —

(a) firstly — in payment of the costs, charges and expenses properly incurred by the local government in or incidental to the sale or attempted sale or the exercise of any other power conferred upon the local government by Part 6, Division 6, Subdivision 6 or this Schedule; and

(b) secondly — in payment of —

(i) unpaid rates or service charges, for the time being due to or imposed by the local government in respect of the land; and

(ii) costs and other money, if any, due to or imposed in favour of the Crown in right of the State or a department, agency, or instrumentality of the Crown in right of the State; and

(iii) other amounts due to the local government under this or another written law,

in respect of the land at the time of the sale, but where the payments required by paragraph (a) to be made have been made, and the balance of the money then remaining is not sufficient for the payment in full of the items required by this paragraph to be made, the local government is to distribute the balance of the money so remaining, between the Crown, the department, the agency, the instrumentality, and the local government, pro rata with the amounts of their claims, respectively, unless the Governor, or the Minister controlling the department, agency, instrumentality as the case requires, consents to rank after the local government; and

(c) thirdly — in payment of the vendor’s costs and expenses of and incidental to conferring upon the purchaser a title to the land; and

(d) fourthly — in or towards the discharge of a charge, if any, on the land under a written law relating to the construction of drains and fittings to connect the land with a sewer; and

(e) fifthly — in or towards the discharge of other mortgages and encumbrances on the land, both registered and unregistered, according to their priorities at law so far as they can be ascertained by the local government; and

(f) sixthly — in payment of the residue of the money within 12 months after the local government has received it to —

(i) the person who would, but for the proceedings for sale, be entitled to the land; or

(ii) if there are several persons who would be so entitled, then to those persons in the proportions in which they would be respectively so entitled,

but if —

(I) a person is entitled to an estate in reversion or remainder in the land, the local government may pay that residue into the Supreme Court under section 99 of the Trustees Act 1962 ; and

(II) within that period of 12 months the local government has not paid the residue to the person entitled to it, it is to, on the expiration of that period, pay that residue into the Supreme Court under that section of that Act; and

(III) at the expiration of 6 years after the money is so paid into the Supreme Court, proceedings have not been commenced or are not pending and the Court has not made an order to the contrary the money is to be paid into the Consolidated Account.

[Clause 5 amended by No. 77 of 2006 s. 4.]

6. Receipt by local government sufficient discharge

A receipt in writing issued by the local government is a sufficient discharge for money paid to the local government on the exercise by it of the power of sale and a person paying it is not bound to inquire whether money remains due to the local government for rates or service charges or otherwise in respect of the land sold.

7. If sale not completed within 12 months after commencement, proceedings lapse

(1) If at the expiration of 12 months from the date the land is offered for sale pursuant to the power of sale a contract for sale has not been entered into the proceedings for the exercise of the power of sale cease to have effect.

(2) Where, under subclause (1), proceedings have ceased to have effect, the local government may again commence proceedings for sale of the land and the provisions of this Schedule relating to the procedure for the exercise of the power of sale again apply.

8. Transfer of land to Crown or local government under s. 6.71

(1) The Registrar of Titles or the Registrar of Deeds and Transfers may register a transfer or conveyance of land by a local government under section 6.71, or by the Minister under section 6.74(3), if the transfer is in the approved form or the conveyance is acceptable to the Registrar of Deeds and Transfers.

(2) Where the land is subject to the provisions of the Transfer of Land Act 1893 , the Registrar of Titles, with the consent of the Commissioner of Titles, may dispense with the production of the duplicate certificate of title (if any) but the Registrar may cause such orders to be made and such advertisements to be published as are provided for by that Act in the case of dealing with land the duplicate certificate of title of which is lost or not produced.

(3) Notwithstanding the provisions of the Transfer of Land Act 1893 , or any other written law —

(a) upon the registration of a transfer or conveyance pursuant to the power referred to in section 6.64(1)(c), the land becomes, and may be dealt with as, Crown land free from mortgages, leases, tenancies, encumbrances, charges and reservations of every kind; and

(b) the registration of the transfer or conveyance pursuant to the power referred to in section 6.64(1)(d) vests in a local government an indefeasible estate in fee simple in the land subject only to the encumbrances specified in section 6.75(1)(c), (d) or (e).

(4) If the land referred to in subclause 3(a) is under the Transfer of Land Act 1893 , the Registrar of Titles is to cancel the certificate of title to the land and remove the land from the operation of that Act and thereafter the land may be dealt with as if it had never been alienated from the Crown.

(5) Duty under the Duties Act 2008 is not chargeable on the transfer or conveyance.

(6) The procedure for the exercise of the powers referred to in sections 6.71, 6.74 and 6.75 is to be as prescribed.

POLICY IMPLICATIONS

2.2.5 Debt Recovery Policy

FINANCIAL IMPLICATIONS

The total amount of rates outstanding for more than 3 years in Attachment 1 amounts to $112,838. This amount is accruing interest daily and represents the debts being recovered.

The PSSO on Land would incur additional legal expenses which will be passed on to the ratepayers as part of the recovery of the debt.

RISK

STRATEGIC IMPLICATIONS

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

Affordable services and initiatives to satisfy community need

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

Affordable and equitable services and infrastructure

Affordable land for residential, industrial, commercial and community use

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

Council Resolution:

(Report Recommendation)

CARRIED UNANIMOUSLY 5/0

That Council:

1. Notes that the rates it has imposed on properties listed in Attachment 1 have been unpaid for a period of at least three years;

2. Notes that the Shire and its debt collection agents have made every reasonable attempt to enforce the debt and in doing so have fulfilled all legislative obligations in relation to the seizure of land under section 6.56 of the Local Government Act 1995; and

3. Resolves to exercise its power to seize the land under section 6.64 (1)(b) and Schedule 6.3 of the Local Government Act 1995 to recover the outstanding rates owing on properties listed in Attachment 1.

Moved: Cr C Mitchell Seconded: Cr P Matsumoto

Outstanding rates over 3 years. (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)(b) as it contains “the personal affairs of any person”, and 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”.

Cr C Mitchell returned to the Council Chambers at 5:37pm.

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

10.1 MINUTES OF THE JOINT MEETING OF THE KIMBERLEY ZONE OF WALGA AND KIMBERLEY REGIONAL GROUP HELD 19 MARCH 2019

LOCATION/ADDRESS: Kimberley Region

APPLICANT: Nil

FILE: KRG01

AUTHOR: Director Corporate Services

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Corporate Services

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 6 April 2019

SUMMARY: This report presents for Council endorsement the Minutes from the Joint Meeting of the Kimberley Zone of the Western Australian Local Government Association (WALGA) and the Kimberley Regional Group held on 19 March 2019.

BACKGROUND

Previous Considerations

OMC 13 December 2018 Item 12.2

A copy of the minutes from the joint meeting held 19 March 2019 between members of the Kimberley Zone of WALGA (Zone) and Kimberley Regional Group (KRG) is attached for Council consideration (Attachment 1 – Joint Kimberley Zone and Kimberley Regional Group Minutes 19 March 2019).

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 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 LOCAL GOVERNMENT ACT REVIEW SUBMISSION

This report recommended that the Zone endorse a submission to WALGA in response to their Advocacy Positions on the Department of Local Government, Sport and Cultural Industries (DLGSC) Local Government Act Review. The item also requested that the Secretariat forward the submission to WALGA.

The item was carried.

8.2 WALGA STATE COUNCIL AGENDA AND PRESIDENT'S REPORT

This report requested the Zone to consider the recommendations on Matters for Decisions that were considered at the WALGA State Council meeting on 27 March 2019, and to note the WALGA State President Report for March 2019.

The State Council Agenda and President’s Report for the meeting held on 27 March 2019 was received on 5 March 2019 (available at https://walga.asn.au/getattachment/1ec84900-16a4-46ec-b64b-520f643574db/State-Council-Agenda-27-March-2019-doc.pdf.

The summary minutes of the State Council Meeting were received 1 April 2019 (Attachment 2).

The item was carried.

9.1 UPDATE ON KIMBERLEY REGIONAL GROUP JUNE FORUM

This report provided an update to the group on the KRG Forum including the proposed date, venue, master of ceremonies, duration and theme:

Item	Update
Date	10 June
Venue	Mangrove Hotel; dinner venue to be confirmed
MC	Gerry Gannon (http://www.gerrygannon.com.au)
Duration	1 day plus dinner; Zone meeting the following morning
Theme	New opportunities are emerging in the North. Increasing diversification in mining, changes to State Government policies and alternative energy development are actively being explored and may transform the face of the north. How can local government help to power this new economy? The forum will be a thought-provoking day considering these new opportunities and what they could mean to the regional economy. Join us as we look at how the regions can effectively position themselves to capture benefits throughout the value chain to drive positive economic and social outcomes.

The item was carried.

9.2 FUNDING FOR ABORIGINAL HOUSING IN REMOTE COMMUNITIES

This briefing report clarified the funding rationale used by State and Federal Governments for the North West Aboriginal Housing Fund.

The recommendation included an invitation for the Manager of the North West Aboriginal Housing Fund to speak at a future joint meeting.

The item was carried.

9.3 DRAFT REGIONAL WASTE MANAGEMENT PLAN

The KRG commissioned a review of the Regional Waste Management Plan (RWMP) and a draft was noted at the December 2018 Joint Zone KRG meeting and referred to member Shire’s for consideration.

This report recommended that the KRG give in principle support for the RWMP.

An amended motion was put and carried:

KIMBERLEY REGIONAL GROUP RESOLUTION:

Moved: Cr David Menzel Seconded: Cr Malcolm Edwards

That the Kimberley Regional Group:

1. Gives in-principle support for the Regional Waste Management Plan and instructs the Secretariat to write to each Shire seeking their formal support of the plan subject to the following amendments:

a. removal of reference to a Regional Waste Coordinator;

b. amendment to the Regional Waste Education Officer to a ‘lower priority’;

c. inclusion of individual member Council priority projects.

2. Requests the Secretariat to review priority projects for inclusion in the 2019/20 Kimberley Regional Group budget utilising Executive Officer resourcing to progress.

Carried 4/0

REASON: TO PROVIDE CLARITY MEMBER COUNCIL POSITIONS IN RELATION TO THE REGIONAL WASTE MANAGEMENT PLAN AND CONFIRM PROJECTS FOR POSSIBLE INCLUSION IN THE KIMBERLEY REGIONAL GROUP BUDGET IN 2019/2020.

The Shire of Broome has previously suggested changes to the document which were implemented prior to the RWMP being presented to the KRG in March. The Shire of Broome has several projects which are not contained in the RWMP however we have sought an amendment for these projects to be included in the Regional Strategy.

It is recommended that Council note the KRG position and endorse the Regional Waste Management Plan (Attachment 3) subject to the inclusion of the additional projects nominated by the Shire of Broome.

9.4 ATEA CONSULTING - EXECUTIVE REPORT

This report provided an overview of the activity undertaken by ATEA Consulting to support the activities of the Kimberley Zone and Kimberley Regional Group.

The item was carried.

9.5 EXECUTIVE & ADMINISTRATIVE CONSULTANCY SUPPORT - HOURS AND CONTRACT VARIATION

This report considered an increase in the allocated annual executive and administrative support hours and resources required by the group and presented options and a recommendation to the group.

The group carried the recommendation:

· recognising the high level of activity and support provided to the group;

· Approving an increase of executive consultancy hours to a maximum of $41,600 inclusive of GST;

· Approving an increase of administrative consultancy hours to a maximum of $13,200 inclusive of GST;

9.6 TANAMI ROAD SUPPORT DOCUMENTATION - CONTRACT VARIATION

This report noted the previous approval of the engagement of ATEA Consulting for the development of supporting documentation for the Tanami Road Business Case, through a variation to contract of 56 hours of consultancy services up to a maximum value of $7,315.00 inclusive of GST.

The item also recommended a budget amendment to offset costs associated with the contract variation.

The item was carried.

9.7 KIMBERLEY REGIONAL GROUP FINANCIAL ACTIVITY STATEMENT JANUARY 2019

This report presented the KRG Financial Activity Report for the period ended 31 January 2019 and provided a mid-year budget review. The report recommended that the Kimberley Regional Group (KRG) adopt the Financial Activity Report and associated budget amendments.

The item was carried.

9.8 MINUTES OF THE WASTE TECHNICAL ADVISORY GROUP - MARCH 2019

This report presented the minutes of the KRG Waste Technical Advisory Group meeting held 7 March 2019.

The item was carried.

9.9 POSITION STATEMENT: ESTABLISHMENT OF A REGIONAL HEADWORKS FUND

This report presented a proposed position statement on the establishment of a regional headworks fund consistent with the Kimberley Regional Group (KRG) Strategic Community Plan position.

The item was carried.

9.10 POSITION STATEMENT: COMPULSORY TRAINING FOR NEW AND EXISTING COUNCILLORS

This report presented a proposed position statement on compulsory training for new and existing Councillors consistent with the KRG Strategic Community Plan position.

The item was carried.

9.11 POSITION STATEMENT: INNOVATIVE WASTE WATER REUSE

This report presented a proposed position statement on innovative waste water reuse

consistent with the KRG Strategic Community Plan position.

The item was carried.

9.12 POSITION STATEMENT: IN SITU BIO-SECURITY SERVICES

This report presented a proposed position statement on in situ Bio-Security Services

consistent with the KRG Strategic Community Plan position.

The item was carried.

9.13 POSITION STATEMENT: GAS PIPELINE LINK BETWEEN EAST AND WEST KIMBERLEY

This report presented a proposed position statement on a gas pipeline link between the East and West Kimberley consistent with the KRG Strategic Community Plan position.

The item was carried.

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 $51,500. $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 was an identified surplus this seed funding contribution was not required in 2018/19.

There may be some financial impact relating to the attendance of Council representatives at Zone meetings. Funds to facilitate attendance are allocated during the annual budget cycle.

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

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

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

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

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

Sustainable and integrated strategic and operational plans

Responsible resource allocation

Improved systems, processes and compliance

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

That Council:

1. Receives and endorses the resolutions of the Kimberley Zone of WALGA and Kimberley Regional Group as attached in the minutes from the Joint Meeting held 19 March 2019 en bloc;

2. Notes and endorses the Regional Waste Management Plan 2018 – 2013 for the Kimberley Region as attached subject to the inclusion of the additional projects nominated by the Shire of Broome.

12. Business of an Urgent Nature

1.	JOINT KIMBERLEY ZONE AND KIMBERLEY REGIONAL GROUP MINUTES 19 MARCH 2019 (Under separate cover)
2.	WALGA STATE COUNCIL MINUTES - 27 MARCH 2019 (Under separate cover)
3.	KIMBERLEY REGIONAL WASTE MANAGEMENT PLAN 2018 - 2023 (Under separate cover)

Minutes – Ordinary Meeting of Council 18 April 2019 Page 0 of 1

12.1 NOTICE OF INTENTION TO IMPOSE 2019/20 DIFFERENTIAL RATES

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: 468

AUTHOR: Manager Financial Services

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Corporate Services

DISCLOSURE OF INTEREST: Nil

DATE OF REPORT: 2 April 2019

SUMMARY: As part of the 2019/20 budget process, Council is required to endorse the proposed differential rates for local public notice seeking public comment for not less than 21 days. This provides an opportunity for public submissions to be considered prior to the final adoption of rates. In summary, the proposed rates for the 2019/20 financial year deliver a general rate increase of 1.75% required to balance the draft budget for 2019/20.

The UV Mining rating category is proposed to have a lesser minimum payment of $500 consistent with 2018/19. Minimum payments on all other properties are proposed to remain at $1,220.

BACKGROUND

The purpose of levying rates is to meet Council’s budget requirements in each financial year in order to deliver services and community infrastructure. The rates levied on properties are determined by applying the rate in the dollar to the applicable valuation amount of the properties in the district. The methods of land valuation are determined by the Minister for Local Government and Communities (the Minister) and the actual amount of property valuation is provided by the Valuer General’s Office (VGO).

The application of differential rates takes into consideration section 6.33 of the Local Government Act 1995 (LGA) which provides the ability to differentially rate properties based on zoning and/or land use as determined by the local government.

Section 6.35 of the LGA also provides the ability to impose a minimum payment which is greater than the general rate which would otherwise be payable on that land. The application of differential rating on the basis of land use and/or zoning results in a rate in the dollar and minimum payment amounts for each rating category.

In accordance with section 6.36 of the LGA, a local government is required to give local public notice of intention of imposing differential general rates or a minimum payment.

The application of differential rates and minimum payments maintains equity in the rating of properties across the Shire of Broome (the Shire), enabling Council to provide facilities, infrastructure and services to the entire community and visitors.

This report has been developed to present to Council:

1. The 2019/20 budget process to date including revenue required to be raised from rates as per the 2019/20 draft budget;

2. The proposed rating categories and corresponding valuations;

3. The proposed rate in the dollar for each rating category reflecting a 1.75% increase from the preceding year;

4. The proposed minimum payments for each rating category, which remained the same as the preceding year. Once again UV Mining category is set at a lower level to ensure compliance with section 6.35 of the LGA;

5. An illustration of the proposed differential rates and minimum payments required to be raised to balance the 2019/20 budget;

6. The requirement to advertise certain rating information through public notice; and

7. The requirement to consider submissions received in relation to the proposed rates.

Recommendations are also included in this report for Council’s consideration.

COMMENT

1. Summary of budget process to date and revenue required to be raised from rates

A number of Council presentations and workshops have been held to date including:

29 and 30 October 2018	Overview of Integrated Planning and Reporting Framework
21 March 2019	Draft Fees & Charges and Operating Budget which includes Engineering Works Resource Budget
4 April 2019	Capital Budget & Project Briefs, Plant Replacement, Project Site Visit and Rates Information

The draft budget was primarily developed with reference to Council’s adopted Corporate Business Plan (CBP), Long Term Financial Plan (LTFP) and Asset Management Plans (AMP’s). Consideration was also given to a number of project briefs that were submitted by staff and presented to Council through the aforementioned workshops.

Following deliberations and feedback provided by Councillors at the Budget Workshop on 4 April 2019, minor amendments have been made to the draft budget documents. As part of the budget workshops with Council, it was identified that $22.77M of rates revenue was required to achieve a balanced budget in 2019/20.

Key achievements in this year’s budget include:

· Zero-based budgeting and operational revenues, expenses and net results in line with the 2019/20 LTFP;

· A continued focus by officers in leveraging Council funds to attract significant grant funding; and

· A focus on revenue raised through fees and charges.

All of these factors have resulted in a proposed rate increase being contained to 1.75% across all differential rating categories to deliver the priorities and services of Council. This proposed increase is slightly higher than the indicative figure of 1% included within the Shire’s LTFP.

A proposed minimum rate of $1,220 has been applied to all rating categories except for the UV-Mining category which has been maintained at $500 to ensure compliance with section 6.35 of the LGA.

The proposed 1.75% increase in rates enables the delivery of the following key capital projects within the draft budget:

· Town Beach Jetty - $11.3M

· BRAC Outdoor Multi Sport Court Upgrade - $2.5M

· Plant Replacement - $1.8M (key items include replacement of heavy machinery and fleet vehicles)

· McDaniel Road Upgrade Stage 1 - $1M

· Chinatown Revitalisation Program Stage 2 - $800K

· Herbert and Saville Roundabout - $692K

· Urban roads reseal program - $611K

· Renewal and upgrades of various parks, ovals and pubic open spaces - $503K

· Furniture, equipment, capital ICT hardware and software projects- $460K

· Frederick Street and other drainage - $315K

· Various street lighting - $309K

· Other road upgrades- $274K

· Waste Management Facility Posi-Shell waste cover - $235K

· Broome Volunteer Bushfire Brigade Shed - $224K

· Various footpath constructions, renewals and upgrades - $224K

· Waste Management Facility capping and other rehabilitation - $200K

· Chinatown Entry Statement - $200K

· Renewal of various buildings - $165K

· Waste Management Facility Tyre Processing - $158K

· Australia Day, Reconciliation Week, Chinatown Christmas decorations and various community events - $102K

· Implementation of economic development, youth framework and community safety plan - $100K

· Review of Local Planning Scheme and Local Planning Strategy - $80K

· Road Visual Condition Survey - $80k

· Town Beach Erosion Study and various shoreline monitoring program - $79K

· Streeters Jetty Renewal - $68K

· Cemetery Ground Penetrating Radar - $65K

· Cable Beach Foreshore Redevelopment Business Case - $60K

· Skate Park Design - $58K

· Installation of large fans at BRAC - $51K

· BRAC Tennis Fencing renewal - $44K

· Various bus facilities renewal and upgrade - $30K

· Carparks and bus bays - $30K

· BRAC adjustable backboards - $28K

· Cricket facilities upgrade - $17K

· Surf Life Saving Club access bridge renewal - $15K.

The basis of the proposed rates modelling to achieve these capital projects and normal operational services is outlined in the following parts of this report.

2. 2019/20 Rating Categories and Corresponding Valuation Amounts

Gross Rental Value (GRV)

The LGA prescribes that properties of non-rural purpose be rated using GRV as the basis of calculation of annual rates. The Valuer Generals Office (VGO) determines the GRV for all properties within the Shire. As per section 22 of the Valuation of Land Act 1978, the VGO determines the frequency of general valuations although historically a GRV revaluation has occurred every three to five years. The most recent valuation was undertaken in September 2014, effective from 1 July 2015.

In October 2018, the VGO commenced a review of all GRV properties within the Shire with revised valuations to become effective from 1 July 2019.

Given the relationship between GRV and rental potential, property owners and the Shire are potentially exposed to large variations in property values from one valuation cycle to the next. For example, as can be seen in the tables below, there is an average reduction of 4.74% in total rateable land value between 2015/16 and 2019/20. It is important for both ratepayers and Council to recognise that changes in land values do not automatically drive changes to overall rates.

The 4.74% average decrease in GRV is also not uniform for all properties. As can be observed from the tables below, the average change in GRV of residential properties differed from that of commercial, tourism and vacant properties. Furthermore, the average change in GRV also varied one suburb to another.

In seeking to achieve a balanced budget and a single rate in the dollar for each rating category, the Shire amended its rate in the dollar and reviewed the relative rates burden placed on each category. This provided a fair and equitable methodology in achieving a required rate increase of 1.75%.

Change in GRV summarised by rating category

Change in GRV summarised by suburb

Properties rated based on GRV are categorised as follows:

a. GRV – Residential – This rating category consists of properties located within the townsite boundaries which have a predominant residential use. The object of the rate for this category is to be the base rate by which all other GRV rated properties are assessed. The reason is that the other GRV rating categories have a higher demand on Shire resources and vacant land is encouraged to be developed.

b. GRV – Vacant – This rating category consists of vacant properties located within the townsite boundaries including land zoned as Tourist, Commercial or Industrial. The object of the rate for this category is designed to encourage land owners to develop vacant land, discourage land banking and to reflect the different method used for the valuation of vacant land as compared to the GRV-Residential rate category. The reason is that excessive vacant land leaves subdivisions and various parts of the Shire appearing barren and unsightly to the detriment of the aesthetics of the area. The rate in the dollar for this category is 62% higher than the GRV-Residential base rate.

c. GRV – Commercial – This rating category consists of properties used for Commercial, Town Centre or Industrial purposes excluding properties with a tourism use. The object of the rate for this category is to raise additional revenue to fund the costs associated with the higher level of service provided to properties in this category. The reason is that the Shire incurs higher costs to service these areas including car park infrastructure, landscaping and other amenities. In addition, extra costs are also associated with economic development activities that have a benefit to these ratepayers. The rate in the dollar for this category is 10% higher than the GRV–Residential base rate.

d. GRV – Tourism – This rating category consists of properties with a tourism use. The object of the rate for this category is to raise additional revenue to fund the costs associated with the higher reliance on Shire resources and the higher level of service provided to properties in this category. The reason this category is rated higher than the base rate for GRV is to fund costs associated with the heavier use of infrastructure and other Council assets and services in addition to contribution towards tourism promotion activities. The rate in the dollar for this category is 53% higher than the GRV–Residential base rate.

Unimproved Value (UV) Revaluations

Properties that are predominantly used for rural purposes are assigned a UV valuation. The rate in the dollar set for the UV-Rural category forms the basis for calculating all other UV differential rates.

UV properties are updated and re-valued by the VGO on an annual basis with the most recent valuations taking effect from 1 July 2019. UV-Rural revaluations have yet to be received from the VGO at the date of this report although the VGO advised that they are not expecting any changes in the general valuations of unimproved values in Broome and therefore rateable value of UV properties in 2019/20 are expected to remain the same as 2018/19. UV-Mining revaluations had not been received as at the date of this report and expected to be available late May. Council will be consulted should these valuations affect the rate model as presented.

a. UV – Rural – This rating category consists of properties that are exclusively for rural use. The object of the rate for this category is to be the base rate by which all other UV rated properties are assessed. The reason is that the other UV rating categories have a higher demand on Shire resources.

b. UV - Commercial Rural – This rating category consists of properties that are outside of the town site that have a commercial use inclusive of:

o Pearling Leases;

o Pastoral leases or Pastoral use;

As a consequence of the UV to GRV review in 2016/17, caravan parks, roadhouses and other short stay accommodation facilities previously classified in 2016/17 under this category have been classified to either GRV-Tourism or GRV-Commercial depending on the nature of the related business.

The object of the rate for this category is to raise revenue to fund the additional costs of servicing these properties. The reason is that the Shire incurs higher costs in infrastructure maintenance as a result of extra vehicle movements on the Shire’s road network due to the activities associated with these properties.

c. UV – Mining – This rating category consists of properties that are used for mining, exploration or prospecting purposes. The object of the rate for this category is to raise additional revenue to fund the additional cost impacts to the Shire. The reason this category is rated higher than UV-Commercial is to reflect the higher road infrastructure maintenance costs to Council as a result of frequent heavy vehicle use over extensive lengths of Shire roads throughout the year.

3. The Proposed Rate in the Dollar

Following deliberations at the Budget Workshop on 2 April 2019 and feedback provided by Councillors, minor amendments have been made to the draft budget documents. The draft budget documents included a proposed general rate increase of 1.75% for all differential rating categories. Rates modelling has been undertaken and adjustments in the proposed general rates in the dollar and minimum payments have been made with consideration to achieving a minimal rate increase given the current economic climate.

As part of the annual budget process, Council must determine the general rate in the dollar to be used in the 2019/2020 financial year. Following receipt of the triennial GRV valuation from the VGO, which will apply from the financial year 2019/20 onwards, the Shire has adjusted the rate in the dollar to moderate the impact of the triennial revaluation as there has been a significant impact for most properties. This has been achieved by calculating the rate in the dollar that will result in a rate yield from each rating category that is 1.75% higher than 2018/2019 rate yield. The overall objective for the 2019/20 differential rating approach is an attempt to ease the burden of the GRV revaluation whilst ensuring that the required rates revenue to balance the budget is collected on an equitable basis, enabling the Shire to provide facilities, infrastructure and services to the entire community.

Differential Rate Category	Minimum Payment Proposed	Rate in the $ (Cents) Proposed
GRV – Residential	$1,220	10.8224
GRV – Vacant	$1,220	19.8104
GRV – Commercial/Industrial	$1,220	11.2119
GRV – Tourism	$1,220	14.6665
UV – Rural	$1,220	0.7623
UV – Mining	$500	11.7729
UV – Commercial Rural	$1,220	3.1875

The proposed rate in the dollar for each rating category is summarised in the table above and reflects a 1.75% increase from the preceding year.

4. The Proposed Minimum Payments

As part of the annual budget process, Council must determine the minimum payment for differential rating categories to be used in the 2019/20 financial year.

The setting of minimum rates within rating categories recognises that every property receives some minimum level of benefit from the works and services provided by the Shire which is shared by all properties regardless of size, value and use. A proposed minimum rate of $1,220 has been applied to all rating categories except for the UV-Mining category which has been set at $500.

UV of mining tenements ranges from $10 to $74,000 with an average UV of $17,334. The minimum rate for the UV-Mining category is set at a lower level compared to the other rating categories in order to ensure that the rate burden is distributed equitably between all other property owners paying the minimum amount. This will also ensure that less than 50% of the properties in this category are on the minimum rate and comply with section 6.35 of the LGA.

5. Rates from Proposed Differential Rates and Minimum Payments Making up the 2019/20 Budget Deficiency

Applying the rate in the dollar to the rateable value of the various properties within each rating category results in an estimated total rates of $22.77M, which is 100% of the $22.77M budget deficiency. This percentage satisfies the requirements of section 6.34 of the LGA.

Detailed calculations illustrating the resulting rates for all differential rating categories along with associated minimum payments is summarised in Attachment 3 of this report.

The following factors have been considered in the rates analysis due to their impact on ratepayers and yield and have been accounted for when setting the proposed rate in the dollar:

· The number of rateable properties compared to last year has increased from 6,847 in 2018/19 to 6,869 in 2019/20. This change is the net effect of the following changes:

o 32 vacant properties previously classified as GRV - Commercial have been classified as GRV - Vacant;

o 12 vacant properties previously classified as GRV - Tourism have been classified as GRV - Vacant;

o Surrender of 2 mining tenements;

o Several subdivisions of GRV - Residential land and changes to the rates exemption status of certain properties (e.g. Department of Housing) resulted in 24 additional rateable properties;

· $nil has been modelled to be received in interim rates for 20120.

· The UV-Mining minimum payments amount remain at $500.

· Minimum payments for all other rating categories remain at $1,220.

The proposed objects and reasons for Differential Rating for 2019/2020 is found in Attachment 2.

From a statutory perspective, it is important to note that 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 – 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 General rates as these are more than twice the lowest UV general rate.

It is acknowledged that the UV-Mining revaluations will require analysis upon receipt, however it is intended to ensure a comparable rate yield plus 1.75% is achieved from each UV category, thus not impacting the proposed total rate revenue. Council will need to consider these valuations prior to formally adopting differential rates and may need to adjust the UV rates in the dollar accordingly. In order to progress timely adoption of the budget it is proposed to seek public comments on the proposed UV differential rates indicating a 1.75% rate increase, however understanding this will be reviewed in due course upon receipt of UV-Mining valuations.

6. The Required Public Notice of Certain Rates

Section 6.36 of the LGA requires the Council to give local public notice of its intention to impose differential general rates or a minimum payment applying to a differential rate category. This allows the ratepayers to see how properties are rated across the district.

As per section 1.7 and 6.36 of the LGA, the local public notice of differential rates must:

· be published at least once in a newspaper circulating generally in the district;

· be displayed on a notice board at the local government’s offices;

· be displayed on a notice board at each local government library;

· contain details of each rate or minimum payment the Council proposes to impose;

· advise where a document can be inspected that provides the objects of and reasons for each proposed rate and minimum payment;

· contain an invitation for electors or ratepayers to lodge submissions on any of the proposals within 21 days from the date of notice (i.e. the 21-day submission period excludes the first day of publishing); and

· be published within the period of 2 months prior to 1 July 2019 (i.e. not earlier than 1 May).

Council must then consider any submissions received prior to seeking the Minister’s approval (should this be required) and prior to formally adopting the differential rates and minimum payments as part of the annual budget process.

CONSULTATION

Department of Local Government, Sport and Cultural Industries

STATUTORY ENVIRONMENT

Local Government Act 1995

1.7 Local public notice

(1) Where under this Act local public notice of a matter is required to be given, a notice of the matter is to be —

(a) published in a newspaper circulating generally throughout the district; and

(b) exhibited to the public on a notice board at the local government’s offices; and

(c) exhibited to the public on a notice board at every local government library in the district.

(2) Unless expressly stated otherwise it is sufficient if the notice is —

(a) published under subsection (1)(a) on at least one occasion; and

(b) exhibited under subsection (1)(b) and (c) for a reasonable time, being not less than —

(i) the time prescribed for the purposes of this paragraph; or

(ii) if no time is prescribed, 7 days.

6.28 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.

6.32 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.

6.33 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.

6.34 Limit on revenue or income from general rates

Unless the Minister otherwise approves, the amount shown in the annual budget as being the amount it is estimated will be yielded by the general rate is not to —

(a) be more than 110% of the amount of the budget deficiency; or

(b) be less than 90% of the amount of the budget deficiency.

6.35. 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.

[Section 6.35 amended by No. 49 of 2004 s. 61.]

6.36 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.

6.47 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

2.1.5 Rural Rating

2.1.6 Tourism Administration Policy

FINANCIAL IMPLICATIONS

The proposed differential rates and minimum payments for the 2019/20 financial year will raise estimated rates revenue of $22.77M. A detailed rates model is attached (attachment 3).

RISK

Future decisions on this matter impact the rates levied on the districts ratepayers.

There is possible moderate risk of non-compliance with the LGA, possible moderate level public embarrassment and almost certain major financial implications to Council. In order to mitigate these risks, it is advised that Council support the recommendations of this report.

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

Affordable land for residential, industrial, commercial and community use

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

VOTING REQUIREMENTS

Simple Majority

Council Resolution:

(Report Recommendation)

Moved: Cr C Mitchell Seconded: Cr M Fairborn

That Council:

1. Publishes a local public notice proposing the 2019/20 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)*	*10.8224*	*$1,220*
*Vacant (GRV)*	*19.8104*	*$1,220*
*Commercial (GRV)*	*11.2119*	*$1,220*
*Tourism (GRV)*	*14.6665*	*$1,220*
*Mining (UV)*	*11.7729*	*$500*
*Rural (UV)*	*0.7623*	*$1,220*
*Commercial Rural (UV)*	*3.1875*	*$1,220*

2. 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

3. 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(3) 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 - Vacant properties as exemption to subsections 2, 3 and 4 of section 6.35 of the Local Government Act 1995.