Ordinary Council Late Report 22 January 2019

Report No: 15.2 (Late report) Subject: Request to lease a portion of Lot 803 Jane Eliza Avenue (CT 6053/488) From: Chief Executive Officer Purpose: To seek Council direction on whether it wishes to pursue leasing an additional portion of Lot 803 Jane Eliza Avenue (CT 6053/488) Recommendation: That Council acknowledges receipt of correspondence from Yates Electrical Services (YES) inquiring into leasing a portion of Lot 803 Jane Eliza Avenue (CT6053/488) to develop a renewable energy project. Further that Council advise YES that Council is not in a position to consider future leasing of the portion of Lot 803 Jane Eliza Avenue (CT6053/488) disconnected from the floodplain via the location of a new floodbank until all conditions of Development Application Number 753/181/17 (Solar Farm and Relocation/Construction of Flood Bank) have been met, to Council’s satisfaction. Further that in the event Council wishes to consider leasing additional land of Lot 803 Jane Eliza Avenue (CT6053/488) for the purpose of facilitating renewable energy projects it will undertake a further open market process to ensure a fair, competitive and non-discriminatory process is followed which complies with the spirit and letter of Councils Procurement Policy, as well as the Land and Asset Disposal Policy. _________________________________________________________________________ Background: In November 2015 Council engaged the services of Masterplan SA Pty Ltd (Masterplan) together with a team of consultants including Ian Robertson Design, Tonkin Consulting, Jones Lang LaSalle, System Solutions Engineering and Rider Levett Bucknall to develop a Master Plan for the development for the undeveloped sections of the Jane Eliza Estate. In its brief, the Council wished to set new benchmarks in the delivery of a contemporary leading edge and transformative development achieved through thoughtful collaboration between Local Government, State and Federal Government, and the private sector, to maximise the business and investment opportunities for the Jane Eliza Estate. The consultant team collaborated with Council to deliver a master plan exemplary in its practicality within the Council’s regional and strategic planning framework. The consultancy brief from Council required the following from the consultant team: • deliver a creative approach to all elements of the project including town planning, infrastructure engineering, waterfront, the public realm, sustainability and potential market sectors to advance the opportunities to develop a sense of place;

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Ordinary Council Late Report 22 January 2019

• bring to the table advanced thinking on energy efficiency and renewable energy sources, best practice community wellbeing and engagement strategies, and ideas for practical land use options; • create a Master Plan that is marked by ideas and concepts that guide smart, vibrant, liveable and connected outcomes that successfully interface with neighbouring land uses and existing communities; • utilise and maximise the unique characteristics of the surrounding environment and look at opportunities to drive new demand from potential markets; • support key objectives of Council’s Strategic Plan and through creative planning and urban design improve amenity and provide a desirable destination that makes the most of the location along the River Murray; and • support the precinct with a high level of understanding of the investment for the necessary infrastructure required to facilitate and encourage development to occur. As part of the consultancy Masterplan led a series of stakeholder engagement sessions with both Council and key stakeholders at the Renmark Paringa Council. A detailed site and locality inspection to analyse the site and determine the opportunities and constraints of the land was also held at this time. The workshops revealed a strong sense of community ownership and pride in the township of Renmark and painted a picture of the needs and aspirations of the community for the Jane Eliza site. These ideas, together with the findings of the opportunities and constraints site analysis, helped to create a defined 30-year vision for the Jane Eliza Master Plan. One of the opportunities defined in the Jane Eliza Masterplan, due to the proximity of the Renmark power substation, was the potential for a renewable energy site, as outlined on page 8 of the Jane Eliza Masterplan http://www.renmarkparinga.sa.gov.au/webdata/resources/files/Jane%20Eliza%20MasterPlan%20R.pdf

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Ordinary Council Late Report 22 January 2019

On 28 February 2017 Council resolved That Council endorse the Jane Eliza Masterplan and release the Masterplan for public interest. Further that Council use its Innovation Fund allocation for the 2016-2017 Financial Year to commence investigating the potential renewable energy options for the western side of Allotment 803 Jane Eliza Avenue. Further that Council instruct the Chief Executive Officer to commence drafting a work plan and budget submissions for the following components of Jane Eliza Masterplan

• Commercial Houseboat Marina feasibility & Detailed Design (subject to feasibility)

• Upgraded Slip & Dry Dock feasibility & Detailed Design (subject to feasibility) • Residential Development options & Detailed Design (subject to feasibility) • Tourist Accommodation expression of interest

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Ordinary Council Late Report 22 January 2019

Following the resolution Council undertook the following steps to investigate a renewable energy site on Lot 803 Jane Eliza Avenue - • South Australian Power Network (SAPN) network study • Presentation of a business case in November 2017 to Elected Members • Sort Development Consent – issued 19 January 2018 • Undertook an Expression of Interest to build, own and operate a 5 Mw solar farm • Undertook a Request for Proposal to build, own and operate a 5 Mw solar farm On 19 December 2018 Council signed a lease and development services agreement with Akuo Energy for them to build, own and operate a 5 Mw Solar Farm on a portion of Lot 803 Jane Eliza Avenue (CT 6053/488). One of the lease conditions placed on Akuo Energy was to relocate an ageing flood bank as per figure 3.3 below, effectively disconnecting approximately 80Ha of land from the current flood zone. This was done with the objectives of the Jane Eliza Masterplan in mind, with the view of making this land potentially more productive by not being prone to flood and creating future development opportunities including additional solar if Council is inclined to expand on the current lease.

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Ordinary Council Late Report 22 January 2019

In addition, Council is continuing negotiations with Akuo Energy, as per direction provided at the December 2018 meeting, to establish a native vegetation offset area as outlined in figure 3.8 below

The native vegetation offset area (land bank) will build on the environmental watering and revegetation which have already been undertaken by the Renmark Paringa Council, Renmark Irrigation Trust, Commonwealth Environmental Water holder and Renmark Paringa Landcare.

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Ordinary Council Late Report 22 January 2019

On 19 January 2018 Council issued Planning Consent for Development Application Number 753/181/17 (Solar Farm and Relocation/Construction of Flood Bank) with the following Development Plan consent conditions:

1. Development is to take place in accordance with the supporting documentation and plans relating to Development Application Number 753/181/17, except as modified by any conditions attached to this Decision Notification, specifically:

Plan type Dated Prepared By Development application documentation entitled “Development Application for Solar Farm and relocation/construction of flood bank”, as amended

October 2017 MasterPlan, Julie Jansen

2. Storm water from the development must be managed on site, to Council’s

specifications and requirements.

3. Any external lighting must be directed downwards so as to not cause hazard to users of the adjacent road, and to nearby residents.

4. The driveway crossover must be constructed to Councils specifications and requirements.

5. The external finish of the control building must be constructed of pre-colour treated materials.

6. The crossover, driveway and manoeuvring areas must be constructed of materials to minimise dust generation and maintained to prevent dust and erosion.

7. A vegetation planting and maintenance plan must be developed and submitted to Council, to Council’s satisfaction. The plantings must comprise local indigenous species in varying heights and habits. The plantings must be maintained and irrigated as necessary to ensure plant health and survival, with dead and diseased planting replaced as necessary to Council’s specifications and requirements.

8. A final construction environmental management plan (CEMP) must be prepared and submitted to Council for approval prior to any works commencing on site. DPTI SSD Traffic Operations must be consulted with prior to submission of the CEMP, which is to include written advice from DPTI that the MFY advice has been considered. Any subsequent requirements of DPTI are to be included in the CEMP.

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Ordinary Council Late Report 22 January 2019

DEWNR conditions:

9. During construction activities the property must be managed in a manner as to prevent erosion and pollution of the subject site and the environment, including keeping the area in a tidy state and ensuring any waste materials are appropriately contained to ensure no pollutants (including excavation or fill material) enter the River Murray system.

10. Any fill material brought to the site must be clean and not contaminated by construction or demolition debris, industrial or chemical matter, or pest plant or pathogenic material.

11. Any excavation or fill material surplus to the requirements of the development must be disposed of such that it will not: a) be located within the 1956 floodplain; b) impede the natural flow of any surface waters; c) allow sediment to enter any water body; d) adversely impact native vegetation; e) facilitate the spread of pest plant and pathogenic material.

12. Stormwater run-off from the control building and any other hard surfaces associated

with the development must be managed to prevent erosion or pollution of the site and the environment.

Council Notes:

1. The development must be substantially commenced within 36 months of the date of this Notification, unless this period has been extended by Council.

2. You are advised that any act or work authorised or required by this Notification must be completed within 5 years of the date of the Notification unless this period is extended by the Council.

DEWNR notes:

1. The applicant is advised of their general duty of care under the River Murray Act 2003 to take all reasonable measures to prevent any harm to the River Murray through his or her actions or activities.

2. The applicant is advised that the Central Archive, which includes the Register of Aboriginal Sites and Objects, has entries for Aboriginal sites (one burial site) within a nearby land parcel. It is recommended that the applicant consult with the First Peoples of the River Murray and Mallee Aboriginal Corporation prior to the commencement of any works. Contact Ms Christine Abdulla on telephone 0428 220 231 or email: abdulla.christine@yahoo.com.au.

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Ordinary Council Late Report 22 January 2019

3. The River Murray and many of its tributaries and overflow areas have abundant evidence of Aboriginal occupation and Aboriginal sites, objects or remains may be present on the subject land. Under section 20 of the Aboriginal Heritage Act 1988 (the Act), an owner or occupier of private land, or an employee or agent of such an owner or occupier, must report the discovery on the land of any Aboriginal sites, objects and remains to the Minister responsible for the administration of the Act, as soon as practicable, giving the particulars of the nature and location of the Aboriginal sites, objects or remains. It is an offence to damage, disturb or interfere with any Aboriginal site or damage any Aboriginal object (registered or not) without the authority of the Minister for Aboriginal Affairs and Reconciliation (the Minister). If the planned activity is likely to damage, disturb or interfere with a site or object, authorisation of the activity must be first obtained from the Minister under Section 23 of the Act. Penalties may apply for failure to comply with the Act.

4. Prior to the clearance of any native vegetation on the land at any time, the applicant should consult the Native Vegetation Council to determine relevant requirements under the Native Vegetation Act 1991 and its Regulations, which may include the provision of a Significant Environmental Benefit. Note that ‘clearance’ means any activity that could cause any substantial damage to native plants, including cutting down and removing plants, burning, poisoning, slashing of understorey, removal or trimming of branches, severing roots, drainage and reclamation of wetlands, and in some circumstances grazing by animals. For further information contact the Native Vegetation Council on telephone 8303 9777 or visit: http://www.nvc.sa.gov.au.

5. The applicant is encouraged to incorporate locally indigenous plant species into any landscaping, screen planting or revegetation activities at the site to enhance the natural character of the locality, stabilise soils and provide habitat for native species. For information on appropriate species to be planted, please contact State Flora at Bremer Road, Murray Bridge on telephone 8539 2105, or within Belair National Park on telephone 8278 7777 or visit: http://www.stateflora.sa.gov.au.

6. Under sections 175(1) and 175 (2) of the Natural Resources Management Act 2004 it is prohibited to move or sell declared plants or material, such as the seeds from plants, without obtaining a permit. It is therefore recommended that an appropriate Biosecurity Plan be prepared to ensure that declared plant material and seeds are not moved or sold as a consequence of development activities. Biosecurity guidelines can include wash down procedures to remove any contaminated soil or weed material from vehicles and machinery before entering the property and/or if landfill is required, ensure weed free soil is delivered or removed from the site. For further information visit: http://www.naturalresources.sa.gov.au/samurraydarlingbasin/plants-animals/pest-plants-andanimals/managing-pests.

7. Should acid sulfate soil conditions be encountered during the works, information on the assessment and management of acid sulfate soils and acidic water is available at: http://www.epa.sa.gov.au/environmental_info/water_quality/programs/acid_sulfate_soils.

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Ordinary Council Late Report 22 January 2019

8. This approval does not obviate any considerations that may apply to the Environment\ Protection and Biodiversity Conservation Act 1999 (Cth). For further information visit: http://www.environment.gov.au/epbc.

Many of these conditions are contingent on Council being satisfied that the conditions have been forefilled, to the Council’s satisfaction. Until such time as conditions have been completed to Council’s satisfaction it would be well served to see how the solar farm infrastructure layout affects the overall site logistics before contemplating putting any additional solar farms on the same site. The disconnection of approximately 80Ha of land from the current flood zone in line with the objectives of the Jane Eliza Masterplan has not necessarily been undertaken specifically for additional future renewable energy projects. As Elected Members would be aware on 2 October 2018 Council resolved the following in relation to the McCormick Centre for the Environment Moved Cr Hunter That Council resolves to keep the McCormick Centre for the Environment under Council ownership, operation and maintenance under all current contractual obligations until 25/11/2019 to: a. avoid reimbursement to the Minister for Education and Children Services as a result of non-compliance under Special Condition 7.1 of the Deed for Sale in the agreement between the Minister for Education and Children Services and Council and b. pursue opportunities to repurpose and lease the Centre between the period of 26/9/2018 and 25/11/2019 with a view to bringing a report back to Council during this period if options which provide a benefit to the community can be negotiated for further Council consideration and c. keep the three current user groups (Attachment E) within the building during this period: i. at a Council expense of $27,531(Attachment F) ii. generated income of $1,710 from the user groups (Attachment F) iii. to maintain utilisation of the building and to avoid higher maintenance costs from closing a building of this size and age for 14 months and d. that Council will seek to understand through negotiations with Australian Landscape Trust Inc. (ALT) the consequences of breaking 4.8 of “the covenant of the Council” within the Deed between Council and ALT 31 May 2001 (Attachment C) (30 years from Notice of Practical Completion of the McCormick Centre {Attachment D} which is estimated to be 24/9/2032) and a negotiated position will be brought back to Council for further consideration after consultation with Council Solicitors. Seconded Cr Slade CARRIED

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Ordinary Council Late Report 22 January 2019

In line with this resolution Council staff pitched to the South Australian Chief Entrepreneurs office on 28 November 2018 around a series of potential initiatives with the view of repurposing and activating the McCormick Centre for the Environment as well as surrounding land, including the portion of Lot 803 Jane Eliza Avenue which has been disconnected from the flood plain. In the event Council does wish to consider leasing more land for renewable energy generation Council should consider the best approach to market. As outlined in its Procurement Policy Council aims to achieve advantageous procurement outcomes by: • enhancing value for money through fair, competitive, non-discriminatory procurement; • promoting the use of resources in an efficient, effective and ethical manner; • making decisions with probity, accountability and transparency; • advancing and/or working within Council’s economic, social and environmental policies; • providing reasonable opportunity for competitive local businesses to supply to Council; • appropriately managing risk; and • ensuring compliance with all relevant legislation. In addition Council’s Land and Asset Disposal policy seeks to: • define the methods by which Land and Assets are disposed of; • demonstrate accountability and responsibility of Council to ratepayers; • be fair and equitable to all parties involved; • enable all processes to be monitored and recorded; and • ensure that the best possible outcome is achieved for the Council. Furthermore, Section 49 (a1) of the Act requires Council to develop and maintain policies, practices and procedures directed towards: • obtaining value in the expenditure of public money; and • providing for ethical and fair treatment of participants; and • ensuring probity, accountability and transparency in all disposal processes. Following Council issuing Development Consent 753/181/17 (Solar Farm and Relocation/Construction of Flood Bank) on 19 January 2018 Council received two unsolicited bids for the Solar Project, in line with Council’s Unsolicited Bid Policy. As per the Unsolicited Bid Evaluation attached, two Unsolicited Bids were received from French Based Multinational company Akuo Energy Pacific Pty Ltd and the Chinese Consortium Company of Yates Electrical Services - Green Gold Invest Pty Ltd. The two Unsolicited Bids were independently assessed with the conclusion highlighting that

• neither of the Proposals is sufficiently innovative or financially attractive enough to warrant progression to Stage 2 of the Unsolicited Proposal Process.

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Ordinary Council Late Report 22 January 2019

• accordingly, it was recommended that RPC instigate a competitive process in the form of an open market Expression of Interest (EOI) to progress the Solar Project.

Council followed the recommendation to proceed to EOI which was subsequently followed by a Request for Proposal (RfP) process which produced a substantially different result for Council. Elected Members should note that following the RfP process the matter was referred to the Ombudsman SA office by YES worker Gary Broughton. A copy of the Ombudsman SA’s report is attached which concluded that Council had not acted in a way that may possibly be unlawful, unreasonable or wrong within the meaning of the Ombudsman Act. The signing of the lease agreement with Akuo Energy Pacific Pty Ltd will deliver the following benefits for the Renmark Paringa Council

• $200,000 fix fee reimbursement to Council on signing of the lease. This fee has already been received by Council.

• A lease return estimated at $4.5m for the term of the lease, including the renewal period. In terms of the 25 year lease, putting it into perspective, Council’s net return it will receive equates to an average of $6,550 per hectare per annum over a 25 year period without factors such as the risk of market access, water leasing prices or market oversupply.

• Relocation of an ageing flood bank disconnecting approximately 80Ha of land providing future land development opportunities for Council, if they wish to pursue them.

In addition, and in line with the direction given by Council at the December 2018, Council is continuing discussion with Akuo Energy around the potential for them to make a sizeable financial contribution to Council to further enhance the environmental watering and revegetation works which have been undertaken by the Renmark Paringa Council, Renmark Irrigation Trust, Commonwealth Environmental Water holder and Renmark Paringa Landcare. I would recommend that if Council does wish to pursue further renewable energy projects on Lot 803 Jane Eliza Avenue in the future once you are satisfied with the conditions of Development Consent Number 753/181/17 being met you undertake a further open market process to ensure a fair, competitive and non-discriminatory procurement process is followed in accordance with your Procurement Policy, as well as your Land and Asset Disposal Policy. Relevant Legislation: Section 202 Local Government Act 1999 Community Plan Reference: Economic Development Strategy Theme 3 Capacity Building - Encourage inward investment Economic Development Strategy Theme 5 Promotion and Engagement - Promote the investment opportunities in the area

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Ordinary Council Late Report 22 January 2019

Risk/WH&S Impact: Nil Changes to Risk profile - LGAMLS notification required: Nil Financial Impact: Nil at this stage. Asset Management Impact: Nil Sustainability Impact: Nil at this stage Regional Opportunities project: Nil Author: Tony Siviour Chief Executive Officer Date: 17 January 2019

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