Agenda of Special Meeting - Thursday, 13 August 2020

Agenda – Special Meeting of Council 13 August 2020 Page 0 of 1

1. Official Opening

2. Attendance and Apologies

Attendance:

Leave of Absence:

Apologies:

Officers:

Public Gallery:

3. Declarations of Financial Interest / Impartiality

4. Public Question Time

5. Matters for Which the Meeting May Be Closed

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

RECOMMENDATION:

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

6.2.1 RFT 20-03 TOWN BEACH JETTY CONSTRUCTION

Item 6.2.1 and any attachments are confidential in accordance with section 5.23(2) of the Local Government Act 1995 section 5.23(2)((e)(ii)) as it contains “a matter that if disclosed, would reveal information that has a commercial value to a person, where the information is held by, or is about, a person other than the local government”.

6. Reports From Officers

6.1 OuR People

6.1.1 SALTWATER COUNTRY RHYTHM AND RIDE EVENT 2020 - FUNDING REQUEST

LOCATION/ADDRESS: Nil

APPLICANT: Nil

FILE: FIS10

AUTHOR: Director Development and Community

CONTRIBUTOR/S: Nil

RESPONSIBLE OFFICER: Director Development and Community

DISCLOSURE OF INTEREST: Nil

SUMMARY:

Council has previously provided funding towards the Saltwater Country Rhythm and Ride event and, in May 2019, resolved to enter into a Three-Year Funding Agreement to continue the provision of funds.

With the advent of the COVID-19 pandemic, and the ability of holding large-scale events in 2020 at risk, in April 2020 Council resolved to reallocate the funds towards other initiatives designed to provide additional community support.

With the easing of COVID-19 State Government Restrictions, organisers of the Saltwater Country Rhythm and Ride Event have approached the Shire requesting the reinstatement of funding to ensure the 2020 Event occurs.

This Agenda Item is requesting Council reconsider the resolution made in April 2020, which repurposed the previously agreed 2020 Saltwater Country Rhythm and Ride funding towards COVID-19 related support, and to now reinstate previously agreed funding of $60,000 (ex GST) to Saltwater Country Inc. to assist in the delivery of the 2020 Rhythm and Ride event.

BACKGROUND

Council considered the most recent funding agreement with Saltwater Country Inc. (Attachment 1) for the Rhythm and Ride event (the Event) at the May 2019 Ordinary Meeting of Council and resolved the following:

Council Resolution:

(Report Recommendation)

Moved: Cr H Tracey Seconded: Cr M Fairborn

That Council:

1. Endorses a total budget of $282,086 for the 2019/20 Events, Economic Development and Tourism Funding Program.

2. Support the following applications from available funds in the 2019/20 budget and enter into agreements to formalise the funding:

…

d) Saltwater Country Inc. to enter into a three-year agreement for support to the value of $60,000 per year, to be made as a cash payment for the cost associated Events infrastructure and Prizes, conditional on the provision of annual financial reports, and if available audited financial reports, for the event including itemised breakdown of expenditure of Shire of Broome funding, supported by supplier invoices as evidence of expenditure of the Shire’s cash contribution.

…

4. Notes funding to each applicant above is granted subject to adherence to the Economic, Events and Tourism Development Funding Program Guidelines.

5. Completes minor amendments to the Events Economic and Tourism Development funding guidelines and funding parameters section, to ensure clarity for applicants, clearly set the expectation of what an applicant can expect to be funded for and ensure that Shire resources are utilised in the most effective manner.

CARRIED UNANIMOUSLY 5/0

Within this same item, Shire officers considered the allocation of in-kind services as part of the application review process and, based upon the review, recommended all funding allocations are 1) made as cash payments to the recipients, 2) clearly outline the portion of funds being allocated to cover the cost of Council fees and charges and 3) clearly outline the portion to be used for other activities.

The Council agenda item also recognised the application for the event as scoring the highest possible criteria assessment score and noted:

“The event aligns with the strategic documents of the Shire of Broome and has the capacity to deliver tourism, events and economic development outcomes.

The applicant has demonstrated extensive knowledge and experience in the delivery of large events over a sustained period.

The value of this event to the community includes a training and development program undertaken over the full year to develop skills amongst local youth to deliver all aspects of the event building local capacity. The applicant has demonstrated a substantial organisational financial contribution to this project.

Officers recommend the support of this application of $60,000, which is a partial amount of the funds requested.”

In late-2019 / early-2020 the COVID-19 pandemic began negatively influencing the global economy and caused significant changes in travel and health arrangements to the extent the WA Minister for Emergency Services made a Declaration of State of Emergency on 15 March 2020.

Subsequent to the above-mentioned Declaration the WA Minister for Health declared a public health state of emergency in respect of COVID-19 on 23 March 2020.

Following on from these Declarations a series of State Government Directions were issued targeting health, travel restrictions, personal hygiene and other measures designed to mitigate the spread of the virus.

Included in these measures were very tight restrictions on the number of people being permitted to gather in any one location and the closure of parts of the state of WA to other people, with the Kimberley region effectively being separated from other parts of WA, Australia and the world.

At the time of the Declarations it was uncertain how long restrictions, and the subsequent economic impacts, would continue and, consequently, many organisations commenced making radical changes to operations, including the Shire.

Broad and sweeping changes were requested of Council by the Premier and Members of Parliament, to provide relief to families and businesses from the impacts of the spread of COVID-19, and legislative changes were implemented to assist local governments to undertake these requests.

Council undertook to adhere to these requests and, amongst other initiatives, sought to freeze increases to local government household rates, fees and charges in the 2020-2021 financial year.

These initiatives, and others, were included in the Council approved COVID-19 Support Packages, which were based on the information available at the time and any reasonably foreseeable actions and / or outcomes.

The initiatives required redirection of funds from other Council activities.

Council, at the April 2020 Ordinary Council Meeting, considered the position of several initiatives previously approved for funding assistance, including the Rhythm and Ride Event, and resolved the following:

Council Resolution:

(Report Recommendation) Minute No. C/0420/001

Moved: Cr C Mitchell Seconded: Cr D Male

That Council:

1. Withdraws funding support in 2020-2021 for scheduled 2020 events for Shinju Matsuri Inc. ($130,000 ex GST) and Saltwater Country Inc. ($60,000 ex GST), that had been supported at the Ordinary Meeting of Council held 30 May 2019, due to the impacts of the COVID-19 pandemic.

…

3. Consider, for inclusion in the Municipal Budget for 2021-2022, the allocation of $195,000 for the Economic, Events and Tourism Development Funding program and in-principle supports the allocation of funding and enters into agreements with recipients for the following projects:

…

(c) Reaffirmed support to Saltwater Country Inc. to the value of $60,000 (ex GST) to be made as a cash payment for the 2021 ‘Rhythm and Ride Rodeo’ costs associated with events infrastructure and prizes.

…

CARRIED UNANIMOUSLY 8/0

Noting the 2020-2021 financial year would be a fiscally sensitive year, Elected Members and Shire officers commenced reviewing and reducing expenses being considered for inclusion in the Draft 2020-2021 Annual Budget during the later months of the 2019-2020 financial year.

During this same period, as a result of reductions in COVID-19 cases in WA borne through the existence of strong health, gatherings and travel measures, the Premier began lifting restrictions through the announcement of the WA Roadmap.

This Roadmap is designed to ease Western Australia’s COVID-19 restrictions to benefit community and businesses and has been developed in conjunction with the National Cabinet principles and based on the best health advice for WA.

Whilst welcomed by the community and businesses, the easing of restrictions was initially linked to behavioural and COVID-19 positive case number outcomes, and not dates, resulting in many community groups and businesses (including the Shire) being unsure of what future initiatives could be undertaken and when they could occur.

During June 2020, due to positive case numbers reducing faster than predicted, the Premier implemented each of the next steps of the Roadmap earlier than anticipated.

As at the time of writing this Agenda Item, the second-last phase of the Roadmap (Phase Five) has been pushed back to 15 August 2020 due to high numbers of COVID-19 positive cases in Victoria and New South Wales and the remote possibility these cases may, in some manner, make their way to Western Australia.

The next phases of the Roadmap, as referenced on the State Government website (www.wa.gov.au), state:

“Phase 5 would see remaining restrictions removed, except WA’s hard border and access to remote Aboriginal communities.

It would also see the removal of WA’s 2 square metre rule and the 50 per cent capacity for our major venues.

Phase Six was going to include the removal of WA’s hard border with the rest of the country and travel restrictions currently in place for remote Aboriginal communities.

A tentative date for the removal of WA’s hard border was planned to be included as part of Phase Six, however, this was put on hold due to the rapidly evolving situation in Victoria.

When an indicative date is set in the future, it will be contingent on locally acquired infection rates in the eastern states.

The WA hard border will only be removed when the WA Chief Health Officer is confident the spread of infection is controlled in the eastern states.”

Following the announcement of the Phase Four lifting of restrictions and just prior to the announcement of the Phase Five lifting of restrictions, organisers of Rhythm and Ride restated, in writing, their intention to continue with the 2020 Event, and requested the Shire honour the original funding agreement.

At a meeting held with Event organisers on 30 June 2020, with the Director Development and Community present, the position of the Event organisers was reinforced, with the organisers again stating the 2020 event would be occurring and they had funding from other sources to assist in supporting the funding agreement from Council.

Event organisers indicated programming amendments may be required to accommodate the shortened lead time to the event depending on several key aspects including:

· COVID-19 guidelines;

· Travel restrictions; and

· Timing of Council’s reconsideration of funding.

It was noted event organisers have committed to the provision of a high-quality event, regardless of the lead time, attracting intrastate visitors and Kimberley locals alike.

Shire officers were advised by the event organisers they have been contacted by past participants and attendees, from across the State, to see if the event is proceeding.

With funding assistance, Shire officers are confident the Event will proceed.

The Executive Chairperson of Saltwater Country Inc. met with the Shire President and Chief Executive Officer on 3 August 2020 where discussion to progress the reconsideration of the Rhythm and Ride funding application to enable the event to be held in 2020.

Accordingly, Saltwater Country Inc. have provided the Shire with:

· An additional letter requesting funding (includes confirmation of event date) (Attachment 2);

· An event budget for Rhythm and Ride 2020 (Attachment 3); and

· A comparison of outcomes for the 2020 Rhythm and Ride Event compared to the original application (Attachment 4).

This Agenda Item is requesting Council reconsider the resolution made in April 2020, which repurposed the previously agreed 2020 Rhythm and Ride event funding towards COVID-19 related support, and to now provide $60,000 (ex GST) to Saltwater Country Inc. to assist in the delivery of the 2020 Rhythm and Ride event.

COMMENT

Rhythm and Ride is an Indigenous-led event designed to provide entertainment as well as providing a rite of passage for young Broome people to gain work experience in all elements of the event, as well as offering longer term Indigenous employment opportunities through education, experience and partnership.

The event raises funds to:

· Help combat the key issues of youth suicide and domestic violence in a culturally intelligent and relevant way, providing access and opportunity participants, both current and future, through the programs undertaken by Saltwater Country Inc.; and

· Build future Rhythm and Ride Events towards larger-scale events and to help build the sustainability of the Event.

The event itself is marketed as a Rodeo, Campdraft and Country Music event, and was established in 2016.

The 2020 Event is scheduled for 11-12 September.

Shire officers have been advised much of the groundwork has been undertaken in order to meet this timeframe.

The event has previously attracted competitors from across Western Australia including:

· Wagin

· Gidgegannup

· Perth

· Newman

· Karratha

· Derby

· Port Hedland

· Halls Creek

· Fitzroy Crossing

· Warmun (Turkey Creek)

· Kununurra

Competitors from across Australia and International locations have also taken part in previous years, although it is recognised this is unlikely to occur this year due to COVID-19 pandemic travel restrictions.

Event organisers are confident there will be little negative impact regarding participant and attendee numbers and have commenced preparing mitigation measures to ensure a full event programme is delivered.

Event organisers have indicated there is a likelihood participant numbers may increase due to a lack of events having occurred because of COVID-19 restrictions.

Traditionally the event forms part of the Northern Australia and Western Australian competitive rodeo circuit, as well as linking into the national circuit.

The event aims to bring together the local community as well as attract tourists and competitors to Broome and has been recognised as one of Broome’s key tourism events.

Additionally, the event promotes the premier nature of bucking stock from the Kimberley region, which has led to intrastate usage of this stock and interstate interest in the breeding stock in the Kimberley.

The event also uses and promotes local musicians with additional opportunities being developed to ensure local musicians are supported beyond Rhythm and Ride.

Following the event, many Indigenous youth are invited to continue with further training and development, providing a rite of passage into full time employment opportunities through the Saltwater Academy.

The organisation, Saltwater Country Inc., was founded by local Indigenous leaders in recognition of the importance of celebrating the past, present and future of Indigenous leadership and resilience, and is committed to a collaborative and innovative approach enabling Broome people of all ages and cultural backgrounds to develop opportunities and expand the ways they contribute to the community.

This is considered especially relevant in 2020 where the event can bring the community together, supporting a positive psychosocial response, and improving social and emotional wellbeing objectives inclusive of the whole community.

Recent organisations providing volunteers and in-kind services for Rhythm and Ride include, although are not limited to:

· RTS – Road Line Traffic Services

· Cleanaway

· Footprint Cleaning

· Goolarri Media Enterprises

· Australian Red Cross

· Roebuck Plains Station

· Kullarri Building

· Broome Circle

Additional to the Shire of Broome, recent funding providers, of which there are several, include, although are not limited to:

· Nyamba Buru Yawuru

· Tourism WA – Regional Events Scheme

· Tourism WA – Regional Aboriginal Event Scheme

· Department of Local Government, Sport and Cultural Industries – Active Regional Communities Initiative Scheme

· Department of Foreign Affairs and Trade

· Department of Primary Industries and Regional Development

· Life Without Barriers

· Agunya

· H and M Tracey Construction

· Footprint Cleaning

· Topstock WA Feed Services

· Cleanaway

· Horizon Power

Additional support organisations include, although are not limited to:

· Broome Explorer Bus

· Cygnet Bay Peals

· Pindan Printing

· Werewolf Security

· Troppo Sound

· Wanna Play?

· Broome Visitor Centre

· Broome Advertiser

· Dunning’s

· Absolute Ocean Charters

· Printing Ideas

· Stephanie Coombes Creative Photography

Economically, approximately 1,250 people visited Broome for the 2019 event, specifically for the event, generating an estimated additional income of $332,400 for local business.

Further, an additional $20,300 of Indigenous spend was generated by the 2019 event.

The event itself is estimated to have generated an additional $162,700 in local expenditure.

Below is a summary of some of the Shire of Broome requirements to be met by the event organisers as part of receiving funding support:

· All event collateral is to recognise the Shire of Broome as a Presenting Partner, with the Shire of Broome logo having priority placement.

· Shire of Broome signage is to be displayed at key locations throughout the event as well as being included as a Presenting Partner on official event signage.

· Event organisers are to promote the Shire of Broome in various media publications and mediums.

· Event organisers are required to acknowledge the contribution of the Shire of Broome through acknowledgement statements, speaking and presentation opportunities and radio, print and photography promotions.

· Event organisers are to provide regular reporting to Shire officers and Council prior to each event, and to also provide acquittal information highlighting community participation, tourism flow-on and economic benefits.

Tourism WA have committed $30,000 in grant funding for the 2020 Event, with a further $30,000 in funding pledged from other agencies subject to Council reinstating the previously agreed funding of $60,000. Additional revenue for the event, through sales, entry fees and sponsorship, is estimated at $102,000.

CONSULTATION

Regarding this latest request from Saltwater Country Inc., the following agencies have been consulted:

· Saltwater Country Inc.

· Tourism WA

· Kimberley Development Commission

· WA Local Government Association

STATUTORY ENVIRONMENT

Local Government Act 1995

POLICY IMPLICATIONS

Council’s Tourism Administration Policy (Policy 3.4.9) states, as the objective:

“To realise the benefits from tourism, promote coordination, infrastructure sharing opportunities and integration of tourism with other business sectors to optimise benefits and minimise any adverse impacts to the community and other industries. Ensuring a sustainable tourism industry that has balance between environmental, cultural and heritage values, and community lifestyle.”

This Policy identifies Council will, amongst other items;

· Work collaboratively with organisations for the promotion and development of Broome as a visitor destination;

· Lobby State and Federal Government departments to ensure the Shire of Broome is receiving its fair and appropriate allocation of available funds for industry development; and

· Encourage Local Business Associations and Tourism Associations to actively engage with Tourism WA and other industry stakeholders as a means of increasing the profile of the Shire of Broome as a tourism destination.

Funding for the event is sourced from the Economic, Events and Tourism Development Fund, which is guided by this Policy.

Saltwater Country Inc. has demonstrated, through previous agreements held with the Shire of Broome, they meet Council’s objectives and general requirements under the Policy.

FINANCIAL IMPLICATIONS

The request is for a reinstatement of the originally agreed event funding amount of $60,000 (ex GST), being for a cash payment for the costs associated with event infrastructure and prizes.

An allocation of $250,000 is contained within the 2020-2021 Annual Budget for the funding of initiatives, such as the Event, although funding directly towards the Event was withdrawn by the Council resolution in April 2020, as referred previously.

Funding associated with the Events, Economic Development and Tourism Funding grant program was earmarked by Council to assist in offsetting any negative financial impacts associated with COVID-19 support.

The full extent of the financial impact of COVID-19 on the Shire’s financial position is currently not yet known.

The funding request is within the current budget allocation with the only discerning fact being the request for funding for the 2020 event previously being withdrawn by Council, hence the requirement for this Agenda Item.

Organisers of the event have indicated:

· The full value of the funding request is required in order to host the event;

· A full event programme can still be delivered despite a shortened lead time;

· Other agencies have indicated funding will be provided to ensure the event can proceed; and

· Other bodies have been approached to assist in sponsorship, with positive levels of success thus far.

The Audited Financial Report for the acquittal of the 2019 Rhythm and Ride event (Attachment 5), as audited by Letizia Palmer Chartered Accountants, identifies total revenue of $190,500 with the primary financier being the Shire of Broome at $60,000, followed by Sponsorship and licensing fees ($41,500) and State Government Grants ($25,000).

Revenue exceeded expenses for the 2019 Event by $22,300, with half of those profits being used towards the 2020 Event and the other half being used to assist in the delivery of other Saltwater Country Inc. programs (the original application for Rhythm and Ride noted the event as a fundraiser towards the Saltwater Academy).

RISK

Risks associated with the provision of reinstating the funding for the 2020 Rhythm and Ride event are divisible into three defined options:

1. To provide full funding;

2. To provide partial funding; or

3. To provide no funding.

Risks and mitigation matters associated with each of the above options include, although are not limited to the following:

To provide full funding

• The fact the event could fail to attract enough numbers, be of limited success and fail to meet required outcomes provides a reputational risk to Council through association. The fact the organising committee has agreements with other bodies is seen as a mitigation in this regard.

• The fact the event could fail to sell enough tickets to the programme of events may provide a financial risk to Council due to the possibility of further requests for funding. The use of the Three-Year Funding Agreement, with clearly defined funding amounts, assists to minimise this risk.

• Community perception around the financial support of this event, and not others, may lead to additional financial and reputational risk. Discussion with other event holders, and consideration of their current arrangements may assist in the mitigation of this risk.

• Financially, the 2020-2021 financial year is expected to be very difficult to deliver on all requests and initiatives due to the likelihood of reduced rate payments, and the freezing of fees and charges, with any additional funding requests posing some financial risk. Continual review of the Annual Budget, through Finance and Costing Reviews, will help mitigate this.

To provide partial funding

• Organisers have indicated the provision of partial funding will mean the event will not proceed. This represents reputational risk to Council due to the perception it has ‘stopped’ the event from happening. Community members and local businesses have traditionally benefitted from a community participation and wellbeing perspective as well as from a financial perspective with the event occurring. Providing funding to the full value will assist in mitigating this.

• State government agencies willing to provide funding may also perceive Council is the reason the event did not occur. These agencies have a current mandate to spend money in the community and the regions, to boost local economies and support the tourism industry. Failing to fully support the event may have reputational and financial knock-on through a lack of future support to Council initiatives. Providing funding to the full value will assist in mitigating this.

• By not adhering to the originally agreed funding agreement a legal and reputational risk to Council may exist should the event organisers wish to pursue the matter legally. Although unlikely to succeed, as previous actions by Shire officers and Council to redirect allocated event funding to other initiatives were conducted in good-faith and due to the impacts associated with COVID-19, there still exists a risk this may be considered a departure from the original agreement. Providing funding to the full value will assist in mitigating this.

To provide no funding

• The level of future State Government agency support being lower than expected may occur if Council is not seen to fully support the event as these agencies are willing to provide funding assistance towards the event. Providing funding to the full value will assist in mitigating this.

• Organisers have indicated the provision of no funding will mean the event will not proceed. This represents reputational risk to Council due to the perception it has ‘stopped’ the event from happening. Community members and local businesses have traditionally benefitted from a community participation and wellbeing perspective as well as from a financial perspective with the event occurring. Providing funding to the full value will assist in mitigating this.

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

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:

A preserved, historical and cultural heritage of Broome

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

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

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

VOTING REQUIREMENTS

Simple Majority

REPORT RECOMMENDATION:

That Council reinstates funding payable to Saltwater Country Inc., under existing funding agreement conditions as previously resolved for the 2020 Rhythm and Ride event, of $60,000 (ex GST) being for event infrastructure and prizes, and noting the required funds are currently contained within the 2020/21 Annual Budget.

Attachments

1.	Rhythm and Ride 2019 - Funding Application (Confidential to Councillors and Directors Only) This attachment is confidential in accordance with section 5.23(2) of the Local Government Act 1995 section 5.23(2)((e)(iii)) as it contains “a matter that if disclosed, would reveal information about the business, professional, commercial or financial affairs of a person, where the information is held by, or is about, a person other than the local government”.
2.	Rhythm and Ride 2020 - Reinstatement of Funding Request
3.	Rhythm and Ride 2020 - Event Budget (Confidential to Councillors and Directors Only) This attachment is confidential in accordance with section 5.23(2) of the Local Government Act 1995 section 5.23(2)((e)(iii)) as it contains “a matter that if disclosed, would reveal information about the business, professional, commercial or financial affairs of a person, where the information is held by, or is about, a person other than the local government”.
4.	Rhythm and Ride 2020 - Outcomes Comparison
5.	Rhythm and Ride 2019 - Audited Report (Confidential to Councillors and Directors Only) This attachment is confidential in accordance with section 5.23(2) of the Local Government Act 1995 section 5.23(2)((e)(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”.

Communication	Integrity
Respect	Innovation
Transparency	Courtesy