Ordinary Council - Shire of Augusta-Margaret River...4.1.1 Questions Taken of Notice at the 27 April 2016 Ordinary Council Meeting in relation to the Cape to Cape Winter Diversion

Ordinary Council

MINUTES

FOR THE MEETING TO BE HELD WEDNESDAY, 11 MAY 2016

IN COUNCIL CHAMBERS, WALLCLIFFE ROAD, MARGARET RIVER

COMMENCING AT 5:30PM

SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 11 MAY 2016

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Meeting Notice Dear Councillor I advise that an Ordinary Council Meeting of the Shire of Augusta Margaret River will be held in Council Chambers, Wallcliffe Road, Margaret River on Wednesday 11 May 2016, Commencing At 5:30pm. Yours faithfully

ANNIE RIORDAN ACTING CHIEF EXECUTIVE OFFICER


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ATTENTION/DISCLAIMER

This agenda has yet to be dealt with by the Council. The Recommendations shown at the foot of each item have yet to be considered by the Council and are not to be interpreted as being the position of the Council. The minutes of the meeting held to discuss this agenda should be read to ascertain the decision of the Council. In certain circumstances members of the public are not entitled to inspect material, which in the opinion of the Chief Executive Officer is confidential, and relates to a meeting or a part of a meeting that is likely to be closed to members of the public. No responsibility whatsoever is implied or accepted by the Shire of Augusta Margaret River for any act, omission, statement or intimation occurring during Council or Committee meetings. The Shire of Augusta Margaret River disclaims any liability for any loss whatsoever and howsoever caused arising out of reliance by any person or legal entity on any such act, omission or statement of intimation occurring during Council or Committee meetings. Any person or legal entity who acts or fails to act in reliance upon any statement, act or omission made in a Council or Committee meeting does so at that person’s or legal entity’s own risk. In particular and without derogating in any way from the broad disclaimer above, in any discussion regarding any planning application or application for a licence, any statement or intimation of approval made by any member or Officer of the Shire of Augusta Margaret River during the course of any meeting is not intended to be and is not taken as notice of approval from the Shire of Augusta Margaret River. The Shire of Augusta Margaret River advises that anyone who has any application lodged with the Shire of Augusta Margaret River must obtain and should only rely on WRITTEN CONFIRMATION of the outcome of the application and any conditions attaching to the decision made by the Shire of Augusta Margaret River in respect of the application. The Shire of Augusta Margaret River advises that any plans or documents contained within this agenda may be subject to copyright law provisions (Copyright Act 1968, as amended) and that the express permission of the copyright owner(s) should be sought prior to their reproduction. It should be noted that copyright owners are entitled to take legal action against any persons who infringe their copyright. A reproduction of material that is protected by copyright may represent a copyright infringement.


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TABLE OF CONTENTS

ITEM NO. SUBJECT PAGE NO.

1. DECLARATION OF OPENING .................................................................................................. 5

2. ATTENDANCE ........................................................................................................................... 5 2.1 APOLOGIES ............................................................................................................................... 5 2.2. APPROVED LEAVE OF ABSENCE ........................................................................................... 5

3. DISCLOSURES OF INTEREST ................................................................................................. 6

4. PUBLIC QUESTIONS ................................................................................................................ 6

4.1. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE ............................... 6 4.1.1 QUESTIONS TAKEN ON NOTICE FROM 27 APRIL 2016 ORDINARY COUNCIL

MEETING - CAPE TO CAPE WINTER DIVERSION TRAIL. ..................................................... 6

4.2. PUBLIC QUESTION TIME ......................................................................................................... 6 4.2.1 PHILLIP MCQUEEN - ITEM 11.2.1 SCHEME AMENDMENT NO 40 - LOT 4

WALLCLIFFE ROAD, MARGARET RIVER ................................................................................ 6

5. APPLICATIONS FOR LEAVE OF ABSENCE ........................................................................... 7

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING ..................................................... 7 6.1 ORDINARY COUNCIL MEETING HELD 27 APRIL 2016 .......................................................... 7

7. DEPUTATIONS .......................................................................................................................... 7 7.1 PHILLIP MCQUEEN - ITEM 11.2.1 SCHEME AMENDMENT NO 40 - LOT 4

WALLCLIFFE ROAD, MARGARET RIVER ................................................................................ 7

8. PETITIONS ................................................................................................................................. 8

9. ANNOUNCEMENTS FROM THE PRESIDING MEMBER......................................................... 8

10. QUESTIONS OF WHICH DUE NOTICE HAS BEEN GIVEN .................................................... 8

11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS ................................................... 8

11.1 CHIEF EXECUTIVE OFFICER ................................................................................................... 8

11.2. SUSTAINABLE DEVELOPMENT ............................................................................................ 11 11.2.1 SCHEME AMENDMENT NO.40 - LOT 4 WALLCLIFFE ROAD, MARGARET RIVER ............ 12

11.3. INFRASTRUCTURE SERVICES ............................................................................................. 19

11.4. CORPORATE AND COMMUNITY SERVICES ....................................................................... 21 11.4.1 2016-17 DIFFERENTIAL RATES AND MINIMUM PAYMENTS FOR PUBLIC

COMMENT ............................................................................................................................... 22 11.4.2 2016-17 DRAFT FEES AND CHARGES FOR PUBLIC COMMENT ....................................... 33 11.4.3 OPERATIONAL PLAN 2015-16 QUARTER 3 REPORT .......................................................... 39

12. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN ........................................... 44

13. MOTIONS FOR CONSIDERATION AT NEXT MEETING ....................................................... 44

14. NEW BUSINESS OF AN URGENT NATURE ......................................................................... 44 14.1. MEMBERS ................................................................................................................................ 44 14.2. CEO .......................................................................................................................................... 44

15. CONFIDENTIAL BUSINESS .................................................................................................... 44

16. CLOSURE OF MEETING ......................................................................................................... 41


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Minutes of the Ordinary Council Meeting held on Wednesday 11 May 2016, in Council Chambers, Wallcliffe Road, Margaret River, commencing at 5.30pm.

Ordinary Council Meeting

1. DECLARATION OF OPENING

The Shire President welcomed all in attendance and declared the meeting open at 5.30pm.

2. ATTENDANCE

Shire President : Cr Ian Earl North Ward

Councillors : Cr Peter Lane North Ward Cr Felicity Haynes Town Ward Cr Pam Townshend Town Ward Cr Kim Hastie Leeuwin Ward Cr Mike Smart Leeuwin Ward

Acting Chief Executive Officer : Ms Annie Riordan Acting Director Sustainable Development : Mr Nick Logan Director Infrastructure Services : Mr Johan Louw

Manager Planning and

Development Services : Mr Matt Cuthbert Manager Corporate Services : Mr Andrew Ross

Minute Secretary : Ms Claire Schiller MEMBERS OF THE PUBLIC 5

MEMBERS OF THE PRESS Augusta Margaret River Mail : Nil

Augusta Margaret River Times : Mr Warren Hately

2.1 Apologies

Mr Gary Evershed, Chief Executive Officer

2.2. Approved Leave of Absence

Cr Kylie Kennaugh, North Ward


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3. DISCLOSURES OF INTEREST

Nil

4. PUBLIC QUESTIONS

4.1. Response to Previous Public Questions Taken on Notice

4.1.1 Questions Taken of Notice at the 27 April 2016 Ordinary Council Meeting in relation to the Cape to Cape Winter Diversion Trail

Mr Ross Marshall of Lot 410 Caves Road, Margaret River, asked the following questions at the 27 April 2016 Ordinary Meeting of Council in relation to the Cape to Cape Winter Diversion Trail. The Shire President took the following questions on notice and the Coordinator Environment/Landcare Services provided the responses: Q: I understand that the councillors and staff are aware of the public statement the CCG

made on 1st March 2016 regarding the proposed dual use track along the Margaret River foreshore. Considering the important and respected role the CCG plays in maintaining the integrity of the natural assets of the region why has the Council not publicly acknowledged the statement made by the CCG?

The Shire has responded directly to the CCG letter of 1 March 2016 regarding their position

on the winter diversion. It is not usual practice for the Shire to provide a public response to media statements. Q Would a public statement by the Council addressing the CCG’s concerns not be part of a transparent public consultation process of which the lack of, is just one of the issues raised by the CCG?

Council’s position is open and transparent and dated back to the Ordinary Council meeting 27 August 2008 when Council resolved to initiate rezoning Location 410 Caves Rd including a requirement for the aplicant to cede sufficient land along the Margaret River foreshore to enable a 2.5m wide shared pathway to be constructed.

4.2. Public Question Time

4.2.1 Item 11.2.1 Scheme Amendment No. 40 – Lot 4 Wallcliffe Road, Margaret River – Mr Phillip McQueen

Phillip McQueen of 64 Wilderness Road, Margaret River, prior to the meeting submitted the following questions in relation to Item 11.2.1 Scheme Amendment No. 40 – Lot 4 Wallcliffe Road, Margaret River, Acting Manager Planning and Development provided the responses: The questions and responses were displayed for members of the public gallery. Development application received by Council on 8 October 2014 by Daly International on behalf of NBN Co. Ltd. For a telecommunication tower at Lot 4 Wallcliffe Road identifies at ‘B’ on page 5 – 304 Rivermouth Road, Prevelly (Lot 304 on plan 49923 Reserve 8428) as a potential site for the NBN telecommunications tower. It was also mentioned/ identified in Scheme Amendment 40 documents. Q1: The reason given that NBN did not pursue this site was due to the complexities associated with planning. What were these complexities associated with planning? The site referred to is a National Park and reserved by the Scheme as a State Reserve for the purposes of National Parks and Nature Reserves accordingly. Local Planning Scheme No. 1 only permits development on State Reserves for the purpose for which the land is reserved. Development in this reserve would likely require removal of sensitive coastal vegetation for


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construction and access. It should be noted that the judgement as to whether or not to pursue this site was made by NBN co. and not the Shire. Q2: Is this the correct address as the location on the aerial map marked by ‘B’ looks like the end of Kilcarnup Road, which would seem an ideal place for the tower as it is close to its target market in Burnside?

The address referred to in the Amendment documents is correct – candidate site B is Reserve 8428 which is a large reserve; however the specific location considered is in proximity to River Mouth Road as noted in the documents.

5. APPLICATIONS FOR LEAVE OF ABSENCE

Nil

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING

6.1 Ordinary Council Meeting held 27 April 2016

MOTION / COUNCIL DECISION CR SMART, CR HASTIE om2016/81 That Council confirms the minutes of the Ordinary Council Meeting held 27 April 2016 to be a true and correct record of the meeting.

CARRIED 6/0

7. DEPUTATIONS

7.1 Item 11.2.1 Scheme Amendment No. 40 – Lot 4 Wallcliffe Road, Margaret River – Mr Phillip McQueen

Mr Phillip McQueen of 64 Wilderness Road, Margaret River, addressed the meeting in relation to Item 11.2.1 Scheme Amendment No. 40 – Lot 4 Wallcliffe Road, Margaret River, a summary of his deputation is as follows: • The Council report states there were 40 submission objecting to the original development

application back in November 2014. We also submitted a petition to the CEO with 80 signatures which was not mentioned.

• The development application was against the Town Planning Scheme (TPS) and we received

notification that the NBN contractors wirthdrew their application witout having to address our objections. Many residents thought this was he end of the matter and were not aware of the Scheme Amendment as Council only notified a few surrounding residents.

• Even though residents have become stressed and worn out with the process there were still 21

submissions objecting to the Scheme Amendment stating planning and personal resons. The majotity of residents do not want it.

• Figure 3 on the report is inaccurate as people fronting the golf course, including myself, have not

been highlighted as objecting and it does not contain objections from the previous development application.

• Wilderness residents are not against high speed broadband, it’s the location and solution that are

the issue. • You could not have picked a worse location if you tried. The tower is right in front of and to the

side of properties and is basically in the middle of the Wilderness estate. Crs Kennaugh and Haynes will attest to this as they did a site visit in January 2015. An ugly 15 storey high radiation emmitting tower is the last thing you would want in this beautiful natural area.


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• The Golf Club will gain financially but at Wilderness redidents’ expense, creating a win loose

situation. This is not fair. • The NBN Co. has put forward 5 prospective sights in the Burnside area so one would think this is

there preferred location plus their tower would be closer to their target market in Burnside. • It should be clear that this amendment is against the Leeuwin Naturalist Ridge Statement of

Planning Policy (LNRSPP) which I was informed is the highest order planning document or at least on par with the State Planning Policy (SPP). Council planner Johan Pienaar informed Wilderness residents that NBN Contractors tried to short cut the process by going straight to the Minister Planning but were not successful. If the SPP is so overriding why didn’t the Minister agree with NBN’s request?

• State policy says communication towers should be considered anywhere is a very loosely worded

document and gives no certainty to people wanting to build. • The Amendment does not comply with the State Visual Management Manual which states towers

should not be in recreational areas. NBN does not put towers within 500m of child care centres. As renewal happens new residents may want to have children. Anyone wanting to give their children the best start in life would not want them living under a radiation emmitting tower. There are 3 young families living within 400m of the proposed tower. World Health Organisation has found pulsed electromagnetic radiation to change cell structure. Baby skulls are very thin and susceptable.

• It was mentioned in a recent Catalyst program that ARPANSA have not updated their standards

for 10 years. • I ask Council to vote no to this amendment and tell NBN there is unaccaptable visual impact and

burden on Wilderness residents. • Council should take exhaustive steps to find an acceptable solution and not make Wilderness

residents bear the burden financiallly, physchologically, physically and visually. It is not fair. The Shire President called for questions and thanked Mr McQueen for his deputation.

8. PETITIONS

Nil

9. ANNOUNCEMENTS FROM THE PRESIDING MEMBER

Nil

10. QUESTIONS OF WHICH DUE NOTICE HAS BEEN GIVEN

Nil

11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS


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11.1. Chief Executive Officer


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11.1. CHIEF EXECUTIVE OFFICER

Nil


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11.2. Sustainable Development


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11.2.1 SCHEME AMENDMENT NO.40 - LOT 4 WALLCLIFFE ROAD, MARGARET RIVER LOCATION/ADDRESS Lot 4 Wallcliffe Road, Margaret River APPLICANT/LANDOWNER Aurecon Australia Pty Ltd FILE REFERENCE LND/1/40 REPORT AUTHOR Lucy Gouws, Planning Officer AUTHORISING OFFICER Nick Logan, Acting Director Sustainable Development IN BRIEF • Council resolved to initiate and advertise Scheme Amendment 40 at its meeting on

9 December 2015. The amendment seeks to modify Schedule 4 'Special Use Zones' of LPS1 relating specifically to Lot 4 Wallcliffe Road, Margaret River, which forms part of the Margaret River Golf Course.

• The Amendment seeks to add 'telecommunications infrastructure' to the range of land uses which can be considered on Lot 4 Wallcliffe Road, Margaret River, which forms part of the Margaret River Golf Course.

• The amendment is put forward by consultants for the NBN Network who intend to seek approval for a 45m telecommunications tower on the site.

• The advertising period concluded in March 2016. A total of 21 submissions were received, all objecting to the proposal.

• The amendment, if approved, does not allow the tower to be constructed, but rather allows consideration of the use, in the same way that telecommunications infrastructure is a use which can be considered in most other zones throughout the Shire.

RECOMMENDATION That Council, pursuant of Section 75 of the Planning and Development Act 2005 amends the Local Town Planning Scheme No.1 for the purpose of amending Schedule 4 – Special Use Zones, as it applies to ‘SU9’ Lot 4 Wallcliffe Road, Margaret River by:

• Adding ‘Telecommunications Infrastructure’ as a permissible land use; • Modifying the use class symbols such that they reflect those set out at clause 4.3 of the

scheme; and • Adding to Special Provision No.2 circumstances in which the 8m height limit may be varied.

TABLED ITEMS Nil SUBJECT LAND The subject land is Lot 4 Wallcliffe Road, Margaret River which forms part of the Margaret River Golf Course. It is reasonably well vegetated with the exception of areas cleared for golf course purposes and that which contains the clubhouse, car park and associated structures. Lot 4 is a freehold lot owned by the golf club. The 'Wilderness' rural residential estate abuts the subject land on its southern and western borders and comprises vegetated lots of between 3 and 5ha. To the east of the site is the balance of the golf course which consists of a 60ha Reserve (see Figure 1). BACKGROUND In 2009 Council supported Amendment 203 to TPS11 which rezoned the subject land from 'Special Rural' (now referred to as Rural Residential) to 'Special Use' to facilitate a mixture of clustered rural residential development, small scale tourism development in the form of chalets and continued golf course operation on the site.


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Amendment 203 was accompanied by a Subdivision Guide Plan (now referred to as a 'Structure Plan') which shows how future development of the site would be arranged. Development as proposed has not yet been undertaken by the landowner.

Figure 1: Subject land and surrounds In 2014, an application was lodged for the development of a 45m telecommunications tower in the south west corner of the land. The tower was to accommodate wireless broadband internet infrastructure forming part of the Federal Government's National Broadband Network (NBN) – see Figure 2. The Shire's view was that the proposed use could not be considered given that 'telecommunications infrastructure' is not one of the 'special uses' specifically provided for by Schedule 4 of LPS1. The proponent encouraged the Shire to advertise the proposal whilst further advice on this matter was sought. Further consideration confirmed that the proposal could not be approved without first amending the LPS1. In response to the advertising of the development proposal, over 40 submissions were received raising objections, related primarily to perceived adverse visual impact. Given that the proposal could not be further progressed, the proponent withdrew the application and submitters were advised accordingly.

Wilderness Estate

Golf Course

Subject Land


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Figure 2: Development Proposal 2014 PLANINNG FRAMEWORK LPS1 The subject land is currently zoned 'Special Use S9'. The Special Use zone is unlike the majority of other zones throughout the Shire in that the only uses which can be considered for land with that zoning are those identified in Schedule 4, relating specifically to that property. Schedule 4 sets out a range of land use, subdivision and development requirements for the site which were devised to ensure that development of the site is consistent with the following stated objectives:

• Additional Rural Residential development in the form of an innovative cluster consistent with the objectives and policies of the Leeuwin-Naturaliste Ridge State Planning Policy.

• Providing for clubhouse, restaurant, function and tourist accommodation facilities in association with the Margaret River Golf Course.

• Site specific provisions and Guide Plans to indicate the disbursement of development and illustrate the interrelationship of the rural-residential cluster and tourism component, Margaret River Golf Course and surrounding land.

LPS1 defines telecommunications infrastructure as: "land used to accommodate any part of the infrastructure of a telecommunications network and includes any line, equipment, apparatus, tower, antenna, tunnel, duct, hole, pit or other structure used, or for use in or in connection with, a telecommunications network". Telecommunications Infrastructure can currently be considered on reserved land and in all but the conservation based zones of LPS1. It should be noted that telecommunications infrastructure can also be considered on land zoned 'Rural Residential' which is the zoning that was applicable to the subject land prior to Amendment 203 being gazetted in 2009.


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State Planning Policy 5.2 Telecommunications Infrastructure State Planning Policies (SPP's) are the highest order of planning policy and in accordance with clause 77 (1) (a) of the Planning and Development Act 2005, "Every local government in preparing or amending a local planning scheme is to have due regard to any State Planning Policy which affects its district,” SPP5.2 relates specifically to the proposal at hand and includes at section 6.1 direction as to how telecommunications infrastructure is to be dealt with by a local planning scheme or policy as follows: When preparing or reviewing local planning schemes or local planning policies, local governments should ensure that:

a) Telecommunications infrastructure is included in the zoning table as a land use; b) Telecommunications infrastructure is not designated as a 'use not permitted' (X) by the

scheme in any zone in the zoning table; c) In zones where the location of telecommunications infrastructure is supported,

telecommunications infrastructure is designated as a permitted use (P) in the zoning table; d) In zones where telecommunications infrastructure is permitted, the Scheme provides

guidance on development approval exemptions; e) Buffer zones and/or setback distances are not included in local planning schemes or local

planning policies; and f) Schemes and policies adhere to the policy measures outlined in Section 5 of this policy.

CONSULTATION AND ADVICE The proposed Amendment was advertised in accordance with the requirements of Town Planning Regulations 1967 and LPS1. During the consultation period, a total of 21 private and 8 government/service provider submissions were received. For a detailed description of the submissions received please refer to the Schedule of Submissions attached to this report as Attachment 1. Of the 21 private submissions received, all objected to the proposal. All 21 objections were from residents in either the Wilderness area or Terry Drive. Properties from which objections were made are identified at Figure 3. Understandably, the objections received were predominantly in response to the future development of a 45 metre NBN tower rather than to the rezoning amendment itself. Specific concerns relate to the potential visual and environmental impacts, unknown health risks, apprehension over future fire risk and affect the NBN tower will have upon the amenity of nearby residents.


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Figure 3: Properties that objected to Amendment DISCUSSION / OFFICER COMMENTS It should be noted that the Amendment before Council does not include the physical development of the NBN tower on this site. The Amendment seeks to add 'telecommunications infrastructure' to the range of land uses which can be considered on the site. As outlined in SPP5.2, the Shire has a duty to ensure that such facilities can be considered in all zones. The absence of any reference to telecommunications infrastructure in Schedule 4 as it relates to the site currently acts as a prohibition. The basis for the State Government’s directive in this regard is to ensure that there is potential for comprehensive and functional mobile and internet coverage across the state and that inconsistent planning requirements do not act to create areas which are not adequately serviced. In this regard, through considering any future development applications, Council would balance the competing demands for preservation of the existing amenity with expectations for fast and effective mobile and internet services. A detailed consideration of the development of the NBN tower and its visual impacts together with all other physical, environmental and technical elements will be assessed if the amendment is approved and if a development application is formally lodged, at which time detailed specifications will become known. However in response to the objections received it can be broadly stated at this point that: • There are locations on the site where a tower can be located which will have minimal impact on

existing vegetation; • There are no known occurrences of NBN/phone towers increasing fire risk to the Shire of

Augusta Margaret River; • Location of the tower is at the southern extent of the subject land positioned behind the most

attractive view which is to the north and north/east; and • The Australian Radiation Protection and Nuclear Safety Authority Regulatory Authority

(ARPANSA) responsible for radiation standards advise that “Health authorities around the world, including ARPANSA and the World Health Organization, have examined the scientific evidence regarding possible health effects from the RF EME emitted by NBN base stations. Current research indicates that there are no established health effects from the low exposure to the RF EME from NBN base station antennas”.

STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 3: Managing Growth Sustainably Community Outcome 3.1: Clearly defined areas for growth and renewal

Subject Site


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Strategic Response: Implement Local Planning Scheme No.1 Service level strategy/plan: Provide planning services FINANCIAL IMPLICATIONS Nil Environmental The proponent has advised that there is a suitable site within which to locate a telecommunications tower on the subject land which will involve minimal vegetation clearing in the form of three small trees/bushes being removed and the pruning of one large tree. An existing firebreak can be used for vehicular access. Social Good quality internet and phone reception are generally accepted as being essential infrastructure necessary to support sustainable communities. Economic Faster internet speeds as anticipated via the NBN, may open up new economic opportunities in the area. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Pursuant to the Planning and Development Act 2005 (as amended), and Part 50 (3) of the

Planning and Development (Local Planning Schemes) Regulations 2015 resolves to support Amendment 40 to Local Planning Scheme No. 1 for the purposes of:

a) Amending Schedule 4 – Special Use Zones, as it applies to ‘S9‘ Lot 4 Wallcliffe Road,

Margaret River by: b) Adding ‘Telecommunications Infrastructure’ as an “A” land use at point 4 of the Special

Use column; c) Modifying the use class symbols applicable to permissible uses listed at point 4 of the

‘Special Use’ column such that they reflect those set out at clause 4.3 of the scheme as follows:

Shop (Golf) “AA” “D” Residential Building “SA” “A” Holiday Cabin and Chalets “SA” “A” Licensed Restaurant “SA” “A” Eating House “SA” “A” Function Centre “SA” “A” Short Stay Use of Single Dwelling “SA” “A”

d) Adding to Special Provision No.2 of the ‘Conditions’ column circumstances in which the

8m height limit may be varied as follows: e) New buildings shall be restricted to a height of 8 metres (unless varied under Clause

5.13.3 or subject to Clause 5.13.4) as calculated in accordance with the local government’s Scheme and Policy requirements.

ATTACHMENTS 1. Schedule of Submissions


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RECOMMENDATION / COUNCIL DECISION CR SMART, CR HASTIE OM2016/82 That Council:

1. Pursuant to the Planning and Development Act 2005 (as amended), and Part 50 (3) of the Planning and Development (Local Planning Schemes) Regulations 2015 resolves to support Amendment 40 to Local Planning Scheme No. 1 for the purposes of:

a) Amending Schedule 4 – Special Use Zones, as it applies to ‘S9‘ Lot 4 Wallcliffe

Road, Margaret River by: b) Adding ‘Telecommunications Infrastructure’ as an “A” land use at point 4 of the

Special Use column; c) Modifying the use class symbols applicable to permissible uses listed at point 4 of

the ‘Special Use’ column such that they reflect those set out at clause 4.3 of the scheme as follows:

Shop (Golf) “AA” “D” Residential Building “SA” “A” Holiday Cabin and Chalets “SA” “A” Licensed Restaurant “SA” “A” Eating House “SA” “A” Function Centre “SA” “A” Short Stay Use of Single Dwelling “SA” “A”

d) Adding to Special Provision No.2 of the ‘Conditions’ column circumstances in

which the 8m height limit may be varied as follows: e) New buildings shall be restricted to a height of 8 metres (unless varied under

Clause 5.13.3 or subject to Clause 5.13.4) as calculated in accordance with the local government’s Scheme and Policy requirements.

CARRIED 5/1 CR LANE VOTED AGAINST


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11.3.

Infrastructure Services


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11.3. INFRASTRUCTURE SERVICES

Nil


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11.4. Corporate and Community

Services


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11.4.1 2016-17 DIFFERENTIAL RATES AND MINIMUM PAYMENTS FOR PUBLIC COMMENT LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/11 REPORT AUTHOR Vicki Scott, Coordinator Revenue and Customer Services

Andrew Ross, Manager Corporate Services AUTHORISING OFFICER Annie Riordan, Director Corporate and Community Services IN BRIEF • Providing public notice of the proposed differential rates and minimum payments for the 2016-17

financial year is a requirement of Section 6.36 of the Local Government Act 1995 (LG Act). • Council is requested to adopt for public advertising the proposed differential rates and minimum

payments and give public notice for a minimum period of 21 days.

RECOMMENDATION That Council:

1. Having considered the Long Term Financial Plan as the basis for the Shire's 2016-17 Budget approves for advertising the following rate model that results in a 4% increase to the Shire's rate yield by:

• increasing rates in the dollar by 4% for GRV categories; • increasing rates in the dollar for the UV Rural base rate by 7.5% to offset the impact

of an average decrease in rural property values of 3.5%; • increasing minimum payments for all rate categories by 4%.

2. Advertises these rates in the dollar and minimum payments and invites written feedback from

ratepayers within a period of 21 days from the giving of local public notice. 3. Approves the attached Statement of Objectives and Reasons for Differential Rates and

Minimum Payments.

4% Increase to Rate Yield

Category Total Properties

Minimum payment

% change Minimum

Rate in Dollar

% change Rate in $

Average Rate Rate Yield

Residential 4,851 1,239 4.0% 0.099892 4.0% 1,625.82 7,886,858.78 Residential Vacant 1,092 1,239 4.0% 0.191360 4.0% 1,596.10 1,742,941.93 UV Rural 928 1,390 4.0% 0.004586 7.5% 2,697.24 2,503,038.12 Rural Residential 772 1,508 4.0% 0.095690 4.0% 1,862.14 1,437,569.38 Rural Residential Vacant 171 1,508 4.0% 0.186264 4.0% 2,272.15 388,537.41 Strata Title Vineyard 37 816 3.9% 0.004586 7.5% 816.00 30,192.00 Industrial, Commercial, Tourism

1,245 1,331 4.0% 0.118321 4.0% 3,699.17 4,605,464.74

UV 1 - 1 non rural use 116 1,390 4.0% 0.005733 7.5% 3,533.94 409,936.71 UV2 - 2 non rural uses 19 1,390 4.0% 0.006879 7.5% 4,530.36 86,076.93 UV3 - 2+ non rural uses 16 1,390 4.0% 0.008026 7.5% 6,361.11 101,777.70 UV Conservation 85 1,337 4.0% 0.004407 7.3% 3,241.27 275,507.85

19,467,901.55


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LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Rate revenue constitutes the largest funding source for the Shire of Augusta Margaret River. Rates are levied on all rateable properties within the Shire and the basis of rates is determined using Policy FI.15 Shire Rating. The Rating methodology of Policy FI.15 Shire Rating is to apply a differential rating system based on the zoning and/or land use of a property in accordance with State Planning Legislation and the Shire’s Local Planning Scheme 1 (LPS 1). Differential rating provides for fair and equitable rating and is administratively efficient to apply. Landgate provide the Shire with valuations dependent on the properties rating basis of Unimproved Value (UV) or Gross Rental Value (GRV). The 2016 annual UV revaluation has been received and the next tri-ennial GRV revaluation will come into force on 1 July 2018. In accordance with the Waste Avoidance and Resource Recovery (WARR) Act 2007, the Shire’s waste services are funded by a waste facilities maintenance rate and annual charges for collection of waste receptacles. All rateable properties in the Shire are charged the waste facilities maintenance rate which funds operation of transfer stations and the Shire’s landfill site. A separate fee is also charged to properties provided a kerbside waste collection service and a kerbside recycling collection service. In keeping with the requirements of the LG Act, Council is required to give local public notice for a minimum period of 21 days of the proposed 2016-17 rates in the dollar and minimum payments before they are adopted. CONSULTATION AND ADVICE External Consultation Providing local public notice for 21 days of the proposed differential rates and minimum payments represents the external consultation process that is required. Landgate Manager, Country South West Property and Valuation services Department of Local Government and Communities Department of Local Government and Communities (DLGC) Rating Policy for Differential Rates DLGC Rating Policy for Minimum Payments Internal Consultation Nil DISCUSSION / OFFICER COMMENTS In setting the 2016-17 differential rate in the dollar and minimum payments, the Shire is required to take into consideration the following matters:

• Long Term Financial Plan; • 2016-17 draft Budget and specifically how the deficiency between revenue and expenditure is

to be funded by rates; • Growth of rateable properties; • Landgate UV property revaluations; • Shire Rating Policy; • Department of Local Government and Communities Rating policies; and • Compliance with the provisions of the LG Act.


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Long Term Financial Plan The annual review of the 2016 to 2026 LTFP was adopted by Council on 13 April 2016 (OM2016/67) and assumes an annual rate percentage increase of 4% over and above property growth for the 2016-17 financial year. The LTFP provides for continued commitment to sound and prudent financial management. The basis for developing the 2016-17 differential rates and minimum payments are consistent with the LTFP. The DLGC’s Integrated Planning and Reporting Framework and Guidelines state that “However strategic planning is expressed, local governments ensure sustainability by undertaking a process of identifying long term community aspirations and using these to shape the four to five year priorities of the local government within a context of long term financial planning and Annual Budgets”. It also includes the following statements in regard to processes relevant to the Corporate Plan and 10 year financial plan:

• “An annual process that drives development of the Annual Budget and is the review process to roll the Corporate Business Plan forward.

• Detailed budget development processes that inform and is informed by, the long term financial projections.”

Growth of rateable properties The Shire experienced a period of growth this year as a result of the release of land developments in Cowaramup, Kudardup, Karridale and Margaret River. A comparison of the increase in the rateable property base over the past 5 years is tabled below.

Table 1. Growth in rateable properties

Year

No. of Properties Rate Billing

Property Increase % Increase

2012 8,895 73 0.8% 2013 8,936 41 0.5% 2014 8,966 119 1.3% 2015 9,134 79 0.9% 2016 9,332 198 2.2%

It should be noted the table compares the number of rateable properties at the time rates are billed in July/August with the number billed in the previous year, with the exception of 2016 which represents the increase in the number of properties from the time of rates billing in July 2015 to April 2016. Landgate UV Revaluation The 2016 UV property revaluation completed by Landgate results in an overall average decrease of 3.5% to rural land values. This compares to previous years when values increased by 2.5% (2015) and decreased by 5% (2014), 4% (2013) and 8% (2012). To achieve an overall 4% increase in the rate yield despite the reduction in property values, the rural rate in the dollar has been increased by 7.5%. The UV tiered rating scale differentials of 25%, 50% and 75% have been applied against the rural rate to obtain the proposed rates for 2016-17. Variations in rural property values ranged from a decrease of 18% to an increase of 4% with the majority of properties recording decreases in property value of 3% to 5%. Due to this range of variances some property owners will receive property rates that have not increased by 4% compared to 2015-16. In fact property owners whose property values have reduced by more than 3.5% will receive a rate increase less than 4%.

LG Act Compliance In setting the differential rate in the dollar and minimum payment, the Shire must adhere to the requirements of the LG Act and in particular sections 6.33 and 6.35. Section 6.33 states that the Shire can’t apply a rate in the dollar that is more than twice the lowest rate in the dollar for any differential rating category.


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Section 6.35 states that the Shire can’t apply a minimum payment to more than 50% of the total number of properties for an individual differential rating category. The differential rating category of Residential Vacant is non-compliant with section 6.35 of the LG Act as the total number of properties on the minimum payment exceeds 50%. This rating category has 1,092 properties with 774 properties on a minimum payment and 318 on the non-minimum (rate in the dollar calculation). The total number of properties on the minimum is to be no more than 546 (50% of 1,092). This result is non-compliant by 228 properties. Ministerial approval is therefore required to be obtained before the rates can be implemented for 2016-17. If the proposed model is adopted by Council for advertising, submissions received during the 21 day advertising period, which is planned to close on Tuesday 7 June 2016, will need to be considered at the Ordinary Meeting of Council on Wednesday 22 June 2016. After Council has considered the submissions an application seeking approval of the proposed differential rates, specifically for the non-compliant Residential Vacant category, is to be provided to the Minister for Local Government via the Department of Local Government and Communities (DLGC). The DLGC in their rating policies have advised 21 days should be allowed for their consideration of the Shire’s request. Once approval is received from the Minister via the DLGC, the differential rates can be provided to Council for adoption. Rates adoption is scheduled for 27 July 2016.

Rating models Only one rate model was initially considered as the intention was to achieve consistency with the recently adopted LTFP. This rate model has the objective of achieving a 4% increase to the rate yield. The commencing point for rate modelling is to use up to date property details and the rating details for the current year (rates in the dollar and minimum payments) to identify the rate yield that has resulted from growth in properties. At April 2016 there are 9,332 rateable properties which is an increase of 198 or 2.2% on the number of properties levied rates in July 2015. This base model provided a rate yield of $18.731 million. The increase of $0.474 million compared to the rate yield obtained when rates were billed in July 2015 is directly attributable to the increase in rateable properties and the updated valuations received for developed properties. The next stage is to establish a rate yield target for 2016-17 using current rateable property details and rating details (rates in the dollar and minimum payments) for the current year that have been increased by 4%. This model provided a target rate yield of $19.481 million. This target is $1.224 million higher than the rate yield obtained when rates were billed in July 2015. Property details were then updated with the revised property valuations for rural or UV properties and due to the decrease in property values the rate yield achieved was $19.367 million. This result was a shortfall of $0.113 million on the target rate yield. Rates in the dollar for the UV rate codes were adjusted to compensate for the decrease in property values and the model rerun to obtain a rate yield of $19.468 million. This result was a shortfall of $0.013 million and is considered acceptable and also achieves the rating target of the LTFP. In summary and compared to 2015-16 the rate model:

• Increases all minimum rates by 4%; • Increases rates in the dollar for all GRV rating categories by 4%; • Reduces UV property values by an average of 3.5%; and • Increase rates in the dollar for all UV categories by up to 7.5%.

The results of the model are shown in the following table.


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Table 1: 4% Increase to Rate Yield


Minimum payment

% change Minimum

Rate in Dollar

% change Rate in $



1,245 1,331 4.0% 0.118321 4.0% 3,699.17 4,605,464.74


19,467,901.55 The model outcomes reflect the parameters of the Shire’s LTFP and provide sufficient revenue to meet expected service level needs and the expected expenditure funding deficiency of the 2016-17 Budget. Comparative Rate Models To provide an indication of the impact of lower increases to the Shire’s rate yield, rate models based upon rate yield increases of 3.5% and 3% were prepared. The following table compares the total rate yield of these models compared to the amount billed in 2015-16 and the rate yield from the preferred 4% increase model for 2016-17. Total Rate Yield Difference in Rate

Yield to 2015-16 Difference in Rate Yield to 4% Model

2015-16 Rate Billing 18,256,531 2016-17 : 4% Rate Yield Increase 19,467,902 1,211,371 2016-17 : 3.5% Rate Yield Increase 19,375,151 1,118,620 (92,751) 2016-17 : 3% Rate Yield Increase 19,282,075 1,025,544 (185,826) The table shows the total expected rate yield reduces by about $93,000 for each 0.5% decrease in the proposed annual rate yield percentage increases. The recently adopted LTFP for the ten years from 2016-17 to 2025-26, stated the consequences of a lower than 4% increase to the rate yield include:

• The risk of a higher rate yield increase being required in the future if the assumptions underlying the LTFP or financial/economic circumstances change;

• Less funds being available for asset renewal; • Less funds being available for new or expanded services; and • The continued recording of a net operating deficit.

To provide an understanding of the impact of the various rate yield increase scenarios on ratepayers, the following tables compare minimum payments and average rates for non-minimum payments compared to rates billed for 2015-16.


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Comparison of Minimum Payments2015-16 4%

IncreaseIncrease to

2015-163.5%

IncreaseIncrease to

2015-163%

IncreaseIncrease to

2015-16Residential 1191.00 1239.00 48.00 1233.00 42.00 1227.00 36.00Residential Vacant 1191.00 1239.00 48.00 1233.00 42.00 1227.00 36.00UV Rural 1337.00 1390.00 53.00 1384.00 47.00 1377.00 40.00Rural Residential 1450.00 1508.00 58.00 1501.00 51.00 1494.00 44.00Rural Residential Vacant 1450.00 1508.00 58.00 1501.00 51.00 1494.00 44.00Strata Titled Vineyard 785.00 816.00 31.00 813.00 28.00 809.00 24.00Industrial 1280.00 1331.00 51.00 1325.00 45.00 1318.00 38.00Commercial 1280.00 1331.00 51.00 1325.00 45.00 1318.00 38.00Tourism 1280.00 1331.00 51.00 1325.00 45.00 1318.00 38.00UV 1 - One rural use 1337.00 1390.00 53.00 1384.00 47.00 1377.00 40.00UV 2 - Two non rural uses 1337.00 1390.00 53.00 1384.00 47.00 1377.00 40.00UV 3 - Three or more non-rural uses 1337.00 1390.00 53.00 1384.00 47.00 1377.00 40.00UV Conservation 1286.00 1337.00 51.00 1331.00 45.00 1325.00 39.00 With a 4% increase in the rate yield minimum payments for 24% of total ratepayers would increase by about $1.00 per week. With each 0.5% decrease to the rate yield, ratepayers paying the minimum payment would benefit by 12 cents per week or $6 for the year. Comparison of Average Rates for Non-Minimum Payments

2015-16 4% Increase

Increase to 2015-16

3.5% Increase

Increase to 2015-16

3% Increase

Increase to 2015-16

Residential 1634.65 1707.53 72.88 1699.33 64.68 1691.12 56.47Residential Vacant 2328.96 2465.27 136.31 2453.42 124.46 2441.57 112.61UV Rural 2855.38 2957.34 101.95 2943.80 88.41 2930.25 74.87Rural Residential 1855.10 1937.86 82.76 1928.55 73.44 1919.23 64.13Rural Residential Vacant 2198.53 2319.61 121.09 2308.47 109.94 2297.31 98.78Strata Titled Vineyard 0.00 0.00 0.00 0.00 0.00 0.00 0.00Industrial 2936.39 3049.77 113.37 3035.10 98.71 3020.44 84.04Commercial 5349.25 5747.01 397.77 5719.37 370.13 5691.74 342.49Tourism 3044.20 3147.00 102.80 3131.87 87.67 3116.74 72.53UV 1 - One rural use 3500.56 3650.88 150.32 3633.69 133.13 3617.13 116.57UV 2 - Two non rural uses 4377.61 4530.36 152.75 4509.95 132.34 4488.87 111.26UV 3 - Three or more non-rural uses 6168.18 6361.11 192.92 6331.78 163.60 6302.46 134.28UV Conservation 3447.88 3585.10 137.21 3568.01 120.13 3551.74 103.86 With a 4% increase in the rate yield, average rates for ratepayers who are not charged the minimum payment would increase by less than $2.00 per week for 71% of total ratepayers. With each 0.5% decrease to the rate yield the majority of ratepayers would benefit by 15 cents to 30 cents per week ($8.00 to $16.00 per annum) depending upon their rate category. It should also be noted the average rate for the commercial category is inflated due to the inclusion of updated property valuations and increased property rates calculated after the 2015-16 rates were billed for some recently developed properties and it is likely the rate increase for the majority of ratepayers in this category would be less than the average shown in the table. Rates Objectives and Reasons The Objectives and Reasons for the proposed differential rates and minimum payments for the year ending 30 June 2017 are attached to this report. Ministerial Circular 02-2016 advised the DLGC will continue to have an emphasis on the quality of these documents as they explain to ratepayers and the community why differential rates vary. The Shire’s document has been updated to improve this explanation. Waste Collection Rate The Waste Collection Rate is an annual rate levied on rateable land within the shire for the purposes of providing for the proper performance of all or any of the waste services it provides.


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Details of this rate and the fees and charges for the collection of kerbside rubbish and recycling are also being provided to the Ordinary Meeting of 11 May 2016 as part of the Schedule of Fees and Charges proposed for 2016-17. These details are repeated in this item for completeness. Waste Collection Rate 2016-17 2014-15 % Change GRV properties rate in the dollar $0.0222 $200 $200 0% UV properties rate in the dollar $0.0021 $200 $200 0% The Waste Collection Rate is at the maximum allowable charge. The purpose of the rate is to raise funds to be used for improvements to the Davis Road landfill facility so it complies with legislative and environmental requirements and to ensure its life as an approved landfill site is maximised. Any excess funds raised from this levy are provided to reserves for future year’s expenditure and to provide for an investment in a future landfill site. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Part VI Local Government Act 1995 deals with the levying of differential rates.

Section 6.33 states that Council may impose differential rates based on differential categories.

Section 6.35 states that Council may impose a minimum payment for each category.

Pursuant to Section 6.36 of the Local Government Act 1995 the Shire is to give appropriate notice of its intention to impose differential rates and minimum payments in respect to each differential rate category. Section 66 of the Waste Avoidance and Resource Recovery Act 2007 (WARR) states a local government may impose on rateable land within its district, and cause to be collected, an annual rate for the purpose of providing for the proper performance of all or any of the waste services it provides. Section 67(1) of the WARR states 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. 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. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 5: Effective Leadership and Governance. Community Outcome 2: Effective strategy, planning and asset management. Strategic Response: Ensure the Shire’s financial performance is well managed and leads to a strong financial position. Service level strategy/plan: Bill property rates on adoption of the Shire’s annual budget. Policy FI.15 Shire Rating (OM20140528) outlines the administrative processes in applying differential rates. PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS The model included within this report shows the expected yield to be obtained from rates in 2016-17. The model results in a total rate yield of $19,467,902 which is an increase of $1,211,370 compared to the rate yield obtained when rates were last billed in July 2015. The increase includes $474,232 obtained from rateable property growth.


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The total revenue from rates used for the 2016-17 draft Budget is calculated on the basis of the Long Term Financial Plan assumption of a 4% increase on rate yield to achieve a balanced budget position for the year. SUSTAINABILITY IMPLICATIONS Environmental Rate revenue is used to carry out works on parks, reserves, beaches, foreshores and all other land owned and managed by the Shire which has an impact on the environment. There is continued demand for these activities. Social Rate revenue is utilised by the Shire to carry out a range of community oriented activities which impact on the social fabric of the community. Economic Rate revenue is the main source of funding for the Shire. Increased rate revenue is required to make up the deficiency between expenditure and income. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Having considered the Long Term Financial Plan as the basis for the Shire's 2016-17 Budget

approves for advertising the following rate model that results in a 4% increase to the Shire's rate yield by:

• increasing rates in the dollar by 4% for GRV categories; • increasing rates in the dollar for the UV Rural base rate by 7.5% to offset the impact of an

average decrease in rural property values of 3.5%; • increasing minimum payments for all rate categories by 4%.

2. Advertises these rates in the dollar and minimum payments and invites written feedback from

ratepayers within a period of 21 days from the giving of local public notice. 3. Approves the attached Statement of Objectives and Reasons for Differential Rates and Minimum

Payments. ADVICE TO APPLICANT / PROPONENT Nil



Minimum payment

% change Minimum

Rate in Dollar

% change Rate in $



1,245 1,331 4.0% 0.118321 4.0% 3,699.17 4,605,464.74


19,467,901.55


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ATTACHMENTS 1. Objectives and Reasons for the proposed differential rates and minimum payments for the year

ending 30 June 2017. RECOMMENDATION CR EARL, CR That Council: 1. Having considered the Long Term Financial Plan as the basis for the Shire's 2016-17

Budget approves for advertising the following rate model that results in a 4% increase to the Shire's rate yield by:

• increasing rates in the dollar by 4% for GRV categories; • increasing rates in the dollar for the UV Rural base rate by 7.5% to offset the impact

of an average decrease in rural property values of 3.5%; • increasing minimum payments for all rate categories by 4%.

2. Advertises these rates in the dollar and minimum payments and invites written feedback

from ratepayers within a period of 21 days from the giving of local public notice. 3. Approves the attached Statement of Objectives and Reasons for Differential Rates and

Minimum Payments. 0/0

The motion lapsed for want of a seconder Cr Hastie then moved the following motion: MOTION / COUNCIL DECISION CR HASTIE, CR TOWNSHEND That the recommendation be amended as follows: a) Item 1 be amended to show a general increase of 3%;



Minimum payment

% change Minimum

Rate in Dollar

% change Rate in $



1,245 1,331 4.0% 0.118321 4.0% 3,699.17 4,605,464.74


19,467,901.55


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b) Item 2 to remain the same; and c) relating to item 3, the statement of objectives and reasons for differential rates and

minimum payments be amended to reflect Council’s intent. CARRIED 6/0

REASONS Cr Hastie spoke to the motion, referring to historical data from the Audited Annual Financial Statements, stating that for every financial year since 2012 the Shire’s employee expenses have been significantly under budget (ranging from $400,000 to $700,000). Cr Hastie suggested that $185,000 (which is the dollar amount of 1%) be taken from this to allow a 3% increase instead of 4% without jeopardising the budget. PRIMARY MOTION / COUNCIL DECISION CR HASTIE, CR TOWNSHEND OM2016/83 That Council:

1. Having considered the Long Term Financial Plan as the basis for the Shire's 2016-17 Budget approves for advertising the following rate model that results in a 3% increase to the Shire's rate yield by:

• increasing rates in the dollar by 3% for GRV categories; • increasing rates in the dollar for the UV Rural base rate by 6.5% to offset the

impact of an average decrease in rural property values of 3%; • increasing minimum payments for all rate categories by 3%.



Minimum payment

% change Minimum

Rate in Dollar

% change Rate in $



1,245 1,318 3.0% 0.117183 3.0% 3,663.55 4,561,123.10


19,282,075.24


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2. Advertises these rates in the dollar and minimum payments and invites written

feedback from ratepayers within a period of 21 days from the giving of local public notice.

3. Approves the attached Statement of Objectives and Reasons for Differential Rates and Minimum Payments.

CARRIED 6/0



Minimum payment

% change Minimum

Rate in Dollar

% change Rate in $



1,245 1,318 3.0% 0.117183 3.0% 3,663.55 4,561,123.10


19,282,075.24


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11.4.2 2016-17 DRAFT FEES AND CHARGES FOR PUBLIC COMMENT LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER N/A FILE REFERENCE FIN/357 REPORT AUTHOR Vicki Scott, Coordinator Revenue and Customer Service AUTHORISING OFFICER Annie Riordan, Acting Chief Executive Officer The Acting Chief Executive Officer, Ms Annie Riordan, notified the meeting that due to an administrative error, the fee for 6 months health club membership at the Augusta Civic Park Recreation Centre on page 10 of Attachment 1, has been updated to reflect the correct figures as shown below: 6 months membership includes appraisal is 20% discount - $331 6 months membership includes appraisal with S,P,HCC card 20% concession on the $331 = $265 6 months DA card is 50% concession on $331 = $165.50 IN BRIEF • Council is to consider adopting the 2016-17 draft fees and charges for advertising. • As the Shire is intending to impose updated fees and charges for 2016-17 before the adoption of

the 2016-17 budget the Local Government Act 1995 (LG Act) requires the Shire to give a minimum of 14 days local public notice of its intention to impose the 2016-17 fees and charges to become effective on 1 July 2016.

• Council will also be required to adopt the fees and charges when the 2016-17 Budget is adopted to ensure full compliance with legislation.

RECOMMENDATION That Council: 1. Adopts the draft fees and charges as per attachment 1 that are proposed to be imposed from 1

July 2016 to 30 June 2017; and 2. Advertises the draft fees and charges for 2016-17 for a minimum of 14 days locally. LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND In accordance with the requirements of the LG Act, fees and charges are to be imposed when adopting the annual Budget. Providing local public notice for a minimum period of 14 days is required if fees and charges are to be imposed after the annual Budget has been adopted. Historically, this advertising process has been followed by the Shire to allow the fees and charges to be imposed at 1 July of the financial year rather than from the date the budget is adopted. To ensure compliance with legislation Council will also be requested to adopt the fees and charges at the time of adopting the 2016-17 Budget. The fees and charges are set prior to the adoption of the annual budget so implementation is effective from 1 July, the beginning of the financial year to match the timing of cost increases with revenue.


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The Shire imposes fees and charges for any goods or service it provides or proposes to provide, and when setting the level of a fee or charge considers the following factors: (a) cost to the local government of providing the service or goods; (b) importance of the service or goods to the community; and (c) price at which the service or goods could be provided by an alternative provider; Shire Policy FI8 Fees and Charges OM2014/84, allows for establishing a fair and equitable fee structure which reflects actual reasonable costs for services and goods provided by the Shire. If fees and charges are to be changed or amended after the Schedule of Fees and Charges has been adopted by Council, these fees and charges will need to be provided to Council for adoption by absolute majority. CONSULTATION AND ADVICE External Consultation Internal Consultation Executive Leadership Team Business Unit Managers and Coordinators DISCUSSION / OFFICER COMMENTS The Shire adopts a ‘user contributes’ approach to the provision of services and goods in order that the cost burden is fairly set and spread more equitably amongst customers. The basic principles considered in establishing Shire fees and charges are:

• Charges reflect the true cost of providing a facility; • Compliance with the LG Act and Regulations; • Fees for a service on a cost recovery basis; • Importance of the service to the Community; and • Compliance with Goods and Services Tax (GST).

When considering possible fees and charges increases, the increase in the Perth Consumer Price Index (CPI) is used as a guide. For the 12 months to December 2015 the increase in this index was 1.5%. WA Treasury forecast an increase of 2.5% in the Perth CPI for 2016-17 and the Shire’s Long Term Financial Plan (LTFP) has escalated revenue and expenditure by a base of 3%. In order to be consistent increases to Fees and Charges for 2016-17 are up to 3%. As a result of the recent organisation restructure various business unit names have changed in the 2016-17 Schedule, and associated teams moved such as:

• Financial Services is now Corporate Services; • Community Development and Safety is now Human and Community Services; and • Environmental Services is now Health, Waste and Ranger services and the Ranger Services

Team has been moved from Community Development and Safety. To assist with financial reporting and budget management, the Schedule of Fees and Charges includes for each business unit details of revenue income codes including either the account number, job number or work order number. The Schedule also includes Charge Type descriptions of ‘Statutory’, ‘Regulatory’ or ‘Shire’ as follows:

• ‘Statutory’ charges are levied by the Shire in accordance with relevant legislation and is not determined by Council;

• ‘Regulatory’ charges are levied by the Shire in accordance with legislation, a regulatory body or Australian Law including the Shire’s Local Laws and are determined by Council; and

• ‘Shire’ fees and charges are determined by Council.

Business units have completed the review of the 2016-17 fees and charges and the following changes and amendments have been made.


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Governance and Marketing Governance fees and charges have increased by the LTFP escalation rate. New fees have been introduced for the use of the Civic Administration Centre Council Chambers and Mainbreak meeting room by commercial and non-community organisations. Corporate Services Charges for Customer and Information services, Finance and Revenue have been increased in line with the LTFP escalation rate. No increase to photocopying charges to remain consistent with service provided by other Business Units. Records Management statutory fees apply under the Freedom of Information Act 1992 and associated Shire fees for copying are charged at ‘actual cost’ recovery. Human and Community Services As Community Development and Planning’s Augusta Museum entry fees were increased above CPI in 2015-16 no increase has been applied. Zone room commercial fees and charges have been increased by the LTFP escalation rate, with continuation of a 50% discount on fees for community and not for profit groups. Alexandra Bridge Camping Ground has no increase as fees remain in-line with Department of Parks and Wildlife (DPAW) camp grounds. The fee structure for Flinders Bay Caravan Park and Turner Caravan Park are similar with the exception of Flinders Bay which has fees for dogs and Turner has additional fees for Residential/Annual holiday sites. From 1 July, it is proposed the fees for powered sites, unpowered sites, and additional fees are consolidated into one fee structure. It is recommended Turner Caravan Park fees be held for 2016-17 and Flinders Bay Caravan Park fees be increased to or above the LTFP escalation rate. Discounts will continue to apply for Seniors, Pensioners and Caravan Club members. Libraries The majority of fees for the Augusta and Margaret River Libraries have not increased as photocopying/printing prices are reasonable to satisfy customer service and revenue raising obligations. The coin box systems are unable to increment in small amounts and an increase would be well above the LTFP escalation rate so these fees remain unchanged. Sport and Recreational Services Discounts apply to emergency service volunteers, membership for extended terms, multiple entry purchases, educational institutions, students and sporting associations. Concessions apply for seniors, pensioners and disability card holders. The presentation of discount and concession rates has been reviewed to clarify the savings in entrance and usage fees and charges resulting from increased use and/or holding a concession card. Margaret River Aquatic Centre, Fitness, Indoor Recreation Centre and Child Care fees and charges have increased by the LTFP escalation rate. For 2016-17 a new discounted fee of 30% for court hire in the Margaret River Indoor Recreation Centre for sporting associations holding seasonal sporting competitions is proposed. This discounted fee should assist the sustainability of these associations. New Fees for Recreation Centre change rooms and bond. Margaret River and Augusta outdoor community sporting facilities fees and charges have been increased by the LTFP escalation rate. A more detailed review of these fees to take into consideration participation rates and the cost of maintaining facilities may occur next year. Augusta Civic Park Recreation Centre fees and charges have increased by the LTFP escalation rate and improvements to the new gym facility results in an increase in the one month membership fee to charges equivalent to the Margaret River gym. Asset Services Asset Management fees and charges have increased by the LTFP escalation rate.


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Planning and Development Services At this stage, the WA Planning Commission has not advised of any changes to statutory planning regulatory fees. Shire fees and charges have increased by the LTFP escalation rate and fees for plan printing and copying are to be removed and consolidated with the fees and charges for this service included in the Corporate Services section. Local Government Property and Activities in Thoroughfares and Public Places are fees for use of Shire parks, reserves, beaches and foreshores. New fees are to be implemented for shorter permit terms. New fees and charges for Mobile Food Traders in accordance with the Mobile Food Business Policy adopted by Council on 13 April 2016 (OM2016/63) have bene included. Building approvals and inspections The majority of fees and charges for Building services are statutory and levied in accordance with the Building Act 2011. It has been advised fees for 2016-17 will increase by 1%. Shire fees and charges have increased by the LTFP escalation rate. Health, Waste and Ranger Services Environmental health, event approvals and waste management services fees are to generally increase by up to the LTFP escalation rate. The Waste Facilities Maintenance rate of $200 per property is unchanged as this is the maximum amount allowable under the legislation. The kerb-side rubbish collection charge is to increase by 2% from $213 to $217 and the recycling collection charge is to increase from $57 to $62. The annual licence fee for a lodging house has been increased by 25% to $250 to ensure cost recovery. A new follow-up inspection fee for public buildings of $80 has been introduced for cost recovery purposes. The Local Government Report for Waste Water fee has been reduced from $164 to $51 as the fee previously included an inspection fee. Noise monitoring fees have been increased to recover costs of new equipment and noise regulations. Events approvals fees have generally been increased by up to the LTFP escalation rate apart from trader permits for community groups and charity organisations which have been increased to allow for improved cost recovery. Waste management bulk waste fees have been increased due to compliance costs and infrastructure and liquid waste disposal fees have been increased to recover increased operating costs. Waste disposal fees for solid waste landfill items have been increased to improve the rate of cost recovery. Ranger Services have proposed consolidating cemetery fees for Cowaramup, Karridale and Margaret River. From 1 July the schedule will include a section for administration fees, niches walls and graves and the majority of duplicated fees will be removed. Fees for animal trap hire will increase due to cost recovery on equipment and no changes to statutory registration fees for dogs and cats are proposed at this stage. Fire control and vehicle impounding fees will increase to recover costs for these services. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS LG Act section 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;


37

(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. LG Act section 6.17 refers to setting level of fees and charges. LG Act section 6.19 refers to Local government to give notice of fees and charges. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 5: Effective Leadership and Governance. Community Outcome 2: Effective strategy, planning and asset management. Strategic Response 2.5: Ensure the Shire’s financial performance is well managed and leads to a strong financial position. Service level strategy/plan: Fees and Charges are incorporated in preparation of annual budget. Policy Policy FI8 Fees and Charges (OM2014/84). PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Revenue generated from fees and charges are a major component of the 2016-17 Budget and Long Term Financial Plan. For 2016-17 the LTFP forecasts $8.964 million to be obtained from fees and charges which is equivalent to 29% of operating revenue. SUSTAINABILITY IMPLICATIONS Environmental Revenue generated from fees and charges are utilised by the Shire to carry out work, which impacts on the environment. There is continued demand for these activities. Social Revenue generated from fees and charges is utilised by the Shire to support a range of community oriented activities which impact on the social fabric of the Community. Economic Revenue generated from fees and charges are a major component of the 2016-17 Budget, without this revenue the Shire would be financially unviable. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council: 1. Adopts the draft fees and charges as per attachment 1 that are proposed to be imposed from 1

July 2016 to 30 June 2017; and 2. Advertises the draft fees and charges for 2016-17 for a minimum of 14 days locally. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. 2016-17 draft Schedule of Fees and Charges.


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RECOMMENDATION / COUNCIL DECISION CR SMART, CR HAYNES OM2016/84 That Council: 1. Adopts the draft fees and charges as per attachment 1 that are proposed to be imposed

from 1 July 2016 to 30 June 2017; and 2. Advertises the draft fees and charges for 2016-17 for a minimum of 14 days locally.

CARRIED 6/0


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11.4.3 OPERATIONAL PLAN 2015-16 QUARTER 3 REPORT LOCATION/ADDRESS N/A APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE COR/130 REPORT AUTHOR Kirstie Kitis, Coordinator Community Planning and Development AUTHORISING OFFICER Annie Riordan, Acting Chief Executive Officer IN BRIEF • Council adopted the Community Strategic Plan 2033 (Reviewed 2015) at the Ordinary Council

Meeting (OM) of 11 February 2015 • Council received the Operational Plan and Budget 2015-16 at OM 22 July 2015 • The Operational Plan 2015-16 is a sub plan of the Corporate Plan and outlines the activities,

delivery of services, projects, infrastructure and other Shire informing strategies to achieve the priorities set by Council

• The Operational Plan confirms the Shire’s ability to achieve priorities in alignment with the Corporate Plan and the Long Term Financial Plan and addresses the objectives and strategies outlined in the Community Strategic Plan.

• The Operational Plan allocates responsibility to business units, sets and meets performance measures for evaluating projects, services and delivery of priorities in the short term and is aligned to the Annual Budget, capital works program details and key funding partners.

• It is a requirement for the Shire to report quarterly to Council. RECOMMENDATION That Council receives the Operational Plan 2015-16 Quarter 3 Report (Attachment 1) LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Under the Local Government (Administration) Regulations 1996 (LGAR), all local governments in Western Australia are required to have developed and adopted two key documents: a Strategic Community Plan and a Corporate Business Plan which are supported and informed by resourcing and delivery strategies. These plans drive the development of each local government’s annual budget. The Community Strategic Plan, was reviewed in February 2015, and outlines the goals that will be achieved through the strategies and actions that are provided in the Corporate Plan. The Corporate Plan integrates the Resourcing Strategy which is comprised of the Workforce Plan, Asset Management Plan, Long Term Financial Plan and the Information and Communication Technology (ICT) Strategic Framework. The Corporate Plan sets out the projects and services the Shire will deliver over the next four years that work towards achieving the outcomes identified in the Community Strategic Plan. The Corporate Plan is achieved through the annual Operational Plans. An Annual Operational Plan is developed which includes information on individual actions and projects programmed to be completed throughout the year (Year 1 of the Corporate Plan) and incorporates the CEO Performance Targets as adopted by Council. The Annual Operational Plan is reported quarterly to Council.


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The Integrated Planning and Reporting Framework and Guidelines issued by the Department of Local Government and Communities provide guidance in the reporting requirements of local government in relation to the integrated plans. Performance monitoring of Operational Plans is required to be undertaken quarterly and reported to Council. This is the third quarter report of the Operational Plan 2015-16 to be received by Council. CONSULTATION AND ADVICE External Consultation No external consultation is required as part of the Quarterly Report review. Internal Consultation Executive Leadership Team Business Unit Managers and Coordinators DISCUSSION / OFFICER COMMENTS In accordance with the LGAR, Council is required to receive quarterly updates on the annual Operational Plan 2015-16 and to be cognisant of the resourcing process required by the Shire to implement Council’s Community Strategic Plan and Corporate Plan. The quarterly review process provides a description of planned activities for the financial year indicates the responsible person and provides an opportunity to understand how the projects, activities and services are developing according to key business unit indicators whilst gaining an insight to highlights and challenges encountered on the way. Third quarter progress on the Operational Plan 2015-16 as reported in the Quarterly Report indicates:

Of the 332 reportable actions, 304 actions (92%) are on track and 8 actions (2%) are achieving between 40-60% of their target. In this quarter there are 14 actions (4%) of which less than 40% of the target has been achieved. The completed actions this quarter are: 1.2.4.1 Complete the water wise landscaping project 1.2.4.2 Operation of the Margaret River Recycled Waste Water Scheme 1.3.1.1 Construct and open a new cell at the Davis Road Waste facility 1.5.1.1 Construct Gloucester Park mains supply extension (subject to funding) 1.5.1.5 Construct Gloucester Park drainage between recreation centre and bowling club 1.5.1.8 Deliver the annual Tree Planting Program on time and on budget 2.2.1.13 Provide upgrades and equipment for Childcare to meet legislative requirements 2.6.1.16 Provide swimming pool compliance monitoring 3.2.1.11 Implement Wallcliffe Road Streetscape upgrade


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3.2.2.4 Undertake equipment upgrades to the Margaret River Cultural Centre 3.4.1.14 Complete the annual allocation for roads program 4.1.1.3 Maintain a positive collaborative relationship with the Margaret River Wine Industry

Association and promote the Margaret River Wine Region as Australia's premier wine region

4.2.1.1 Administer the CapeROC events website in conjunction with the City of Busselton 4.2.1.2 Produce the Capes Regional Organisation of Councils (CapeROC) Calendar of Events in

conjunction with the City of Busselton 4.2.2.1 Maintain a positive collaborative relationship with the Margaret River Busselton Tourism

Authority (MRBTA) to measure visitor numbers and impacts and maximise visitor benefits to the Shire

5.1.3.1 Complete and submit Statutory Compliance Return and remediate any errors within timeframes

5.2.1.9 Review Business Unit plans for directorate in line with strategic direction 5.2.2.3 Undertake desktop review of Ten Year Capital Works Program 5.2.3.9 Implement Margaret River Depot master plan 5.3.1.6 Undertake annual Records Disposal program 5.3.2.6 Undertake hardware maintenance program 5.6.2.2 Conduct comprehensive rolling review of Shire policies over a three year period The actions in which less than 40% of their target has been met are:

1.5.1.4 Construct Swimmers Beach power supply and BBQ facilities Quote to install power to Swimmers Beach exceeded available budget. Additional power required by to service the toilets. Project to be deferred to 2016-17

2.2.1.5

Review Active Ageing Plan and Policy This action will occur in 2016-17 in conjunction with consultation for Community Strategic Plan. Have conducted initial research, local govt. scan and attended PD days to gather info/research into providers for community engagement and meeting held with procurement officer on RFQs

2.2.1.9 Provide Crèche facilities in Augusta Upon completion of the new gym upgrade staff will investigate the need for a crèche facility in Augusta

2.6.2.6

Review and update Shire Emergency Management Arrangements, Recovery Plan and Evacuation Plan Updated Local Emergency Arrangements Guide and Model provided by SEMC in April 2016. Project will now be completed in 2016-17 with review to be finalised by December 2016

4.2.3.2 Alexandra Bridge Camp Ground - develop concept plan for camp kitchen The Camp Kitchen project has been deferred based upon other pressing priorities at this site

4.2.3.20 Turner Caravan Park - install Quantam Hot Water System Currently reviewing quote for upgrades

4.2.3.18 Turner Caravan Park - complete road resurfacing Under review based upon chalet development taking priority

4.2.3.19 Turner Caravan Park - complete scheduled infrastructure works Under review based upon chalet development taking priority

4.2.3.20 Turner Caravan Park - install Quantam Hot Water System Currently reviewing quote for upgrades

4.2.3.21 Turner Caravan Park - upgrade works to Dekkers Amenity Block Under review based upon chalet development taking priority

4.4.3.2 Obtain feedback from sample of local suppliers to identify the Shire's impact upon their business No action as yet and is unlikely to be progressed in 2015-16

5.2.2.13 Develop a Strategic Waste Management Plan The project was delayed due to competing high priority projects in the waste portfolio ( cell construction) taking longer than originally anticipated due to a lack


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of external providers able to undertake the project and construction delays and complications. The project requires significant project management, steering and consultation between the Shire and the chosen provider to ensure the document is both relevant and accurate in terms outcomes for the Shire. Given the recent resignation of Manager Environmental Health, Waste & Ranger Services, this project will now be deferred to next financial year to enable the new manager to take carriage of the project

5.4.3.6 Review Managers KPIs on diverse workforce and inclusive culture - employee survey Deferred due to restructure

5.4.4.3 Develop a workforce communication strategy Deferred. A specific communication strategy had been applied to restructure project works, but this will need to be adapted to an overall workforce communication strategy

5.7.3.3 Develop financial indicators for Business Units No progress at this stage - unlikely to be progressed in 2015-16

Below is a brief road map on reading the quarter report:

STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Section 5.56 (1) Local Government Act 1995 requires local governments to have in place a plan for the future. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2015-2019 Goal 5: Effective Leadership and Governance Community Outcome 7: Measure and report on success and sustainability Strategic Response: Prepare and advertise quarterly reports of the Community Strategic Plan PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS The actions and projects which are detailed in the Operational Plan 2015-16 and the Operational Plan 2015-16 Quarter 3 Report were aligned with the Annual Budget 2015-16 and the Long Term Financial Plan. SUSTAINABILITY IMPLICATIONS The Community Strategic Plan fosters an identification and integration of environmental protection, social advancement and economic prosperity which is enacted through the Corporate and Operational Plan. VOTING REQUIREMENTS Simple Majority


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RECOMMENDATION That Council receives the Operational Plan 2015-16 Quarter 3 Report (Attachment 1) ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Operational Plan 2015-16 Quarter 3 Report RECOMMENDATION / COUNCIL DECISION CR HASTIE, CR LANE OM2016/85 That Council receives the Operational Plan 2015-16 Quarter 3 Report (Attachment 1).

CARRIED 6/0


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12. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN

Nil 13. MOTIONS FOR CONSIDERATION AT NEXT MEETING

Nil 14. NEW BUSINESS OF AN URGENT NATURE

14.1. Members

Nil

14.2. CEO

Nil

15. CONFIDENTIAL BUSINESS

Nil

16. CLOSURE OF MEETING

The Shire President thanked all in attendance and declared the meeting closed at 6.32pm.

Documents

Ordinary Council - Shire of Augusta-Margaret River...4.1.1 Questions Taken of Notice at the 27 April 2016 Ordinary Council Meeting in relation to the Cape to Cape Winter Diversion