MINUTES - Shire of Wyndham–East Kimberley

MINUTES

ORDINARY COUNCIL

MEETING

S H I R E O F W Y N D H A M E A S T K I M B E R L E Y

I hereby certify that the Minutes of the Ordinary Council Meeting held are a true and accurate record of the proceedings contained therein. _________________________ Shire President _________________________ Date

30 O

cto

ber

20

18

Minutes Ordinary Council Meeting 30 October 2018 2 of 79

DISCLAIMER

Members of the Public are advised that recommendations to Council contained within this

Agenda and decisions arising from the Council meeting can be subject to alteration.

Applicants and other interested parties should refrain from taking any action until such time

as written advice is received confirming Council’s decision with respect to any particular

issue.

Signed on behalf of Council

CARL ASKEW

CHIEF EXECUTIVE OFFICER

NOTES

1. Councillors wishing to make alternate motions to officer

recommendations are requested to provide notice of such motions

electronically to the minute taker prior to the Council Meeting.

2. Councillors needing clarification on reports to Council are requested

to seek this from relevant Officers prior to the Council meetings.


C O N T E N T S

1. DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS .............................. 4

2. RECORD OF ATTENDANCE / APOLOGIES / LEAVE OF ABSENCE (PREVIOUSLY

APPROVED) .................................................................................................................. 4

3. DECLARATION OF INTEREST ..................................................................................... 5

4. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE ..................... 6

5. PUBLIC QUESTION TIME ............................................................................................. 6

6. APPLICATIONS FOR LEAVE OF ABSENCE .............................................................. 10

7. PETITIONS ................................................................................................................... 10

8. CONFIRMATION OF MINUTES ................................................................................... 10

9. ANNOUNCEMENTS BY THE PERSON PRESIDING WITHOUT DISCUSSION .......... 10

10. MATTERS FOR WHICH THE MEETING MAY BE CLOSED........................................ 11

11. DEPUTATIONS / PRESENTATIONS / SUBMISSIONS ................................................ 11

12. REPORTS .................................................................................................................... 12

12.1. MATTERS ARISING FROM COMMITTEES OF COUNCIL ................................... 12

12.2. CHIEF EXECUTIVE OFFICER ............................................................................... 12

12.2.1. Standing Item - Outstanding Actions from Previous Council Resolutions 12

12.2.2. 2019 Ordinary Council Meeting Dates .......................................................... 15

12.2.3. Additional flight options ............................................................................... 22

12.3. COMMUNITY DEVELOPMENT ............................................................................. 31

12.3.1. Development Approval Application - Lot 707 Drovers Road, Kununurra -

Caretaker's Dwelling ..................................................................................... 31

12.3.2. Kununurra Aquatic and Leisure Facility Draft Masterplan ......................... 41

12.3.3. Annual Report 2017-18 .................................................................................. 47

12.4. CORPORATE SERVICES ..................................................................................... 54

12.4.1. Interim Monthly Financial Report September 2018 ..................................... 54

12.4.2. List Of Accounts Paid From Municipal Fund and Trust Fund .................... 57

12.4.3. Changing Method of Valuation of Land ....................................................... 60

12.4.4. Budget Adjustments 2018/19 ........................................................................ 66

12.5. INFRASTRUCTURE .............................................................................................. 74

13. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN ................................. 74

14. QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN ............... 74

15. URGENT BUSINESS APPROVED BY THE PERSON PRESIDING OR BY DECISION

..................................................................................................................................... 74

16. MATTERS BEHIND CLOSED DOORS ........................................................................ 74

16.1. ACTING CHIEF EXECUTIVE OFFICER - JANUARY/FEBRUARY 2019 ............... 75

16.2. 2018/19 PLANT MANAGEMENT PROGRAM - ROAD GRADER ......................... 77

17. CLOSURE .................................................................................................................... 79


SHIRE OF WYNDHAM EAST KIMBERLEY

ORDINARY COUNCIL MEETING AGENDA

KUNUNURRA COUNCIL CHAMBERS TO BE HELD ON 30 OCTOBER 2018 AT 5:00PM

1. DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS Members of the Public are advised that recommendations to Council contained within this

Agenda and decisions arising from the Council meeting can be subject to alteration.

Applicants and other interested parties should refrain from taking any action until such time

as written advice is received confirming Council’s decision with respect to any particular

issue.

An audio and/or video record will be made of these proceedings to assist in the taking of

minutes.

The Shire President Declared the Meeting open at 5.00pm

2. RECORD OF ATTENDANCE / APOLOGIES / LEAVE OF ABSENCE (PREVIOUSLY APPROVED)

ATTENDENCE Cr D Menzel Shire President Cr T Chafer Deputy Shire President Cr N Brook Councillor Cr M Dear Councillor Cr J Farquhar Councillor Cr G Lodge Councillor Cr D Pearce Councillor Cr A Petherick Councillor C Askew Chief Executive Officer N Kearns Director Planning and Community Development V Lawrence Director Corporate Services F Hamilton Minute Taker

A Wright Resident K Wright Resident D Spackman Resident M Northover Resident S Rushby Resident A Cottle Kununurra Crocs Swim Club J Withey Kununurra Crocs Swim Club M Cottle Kununurra Crocs Swim Club S Cottle Kununurra Crocs Swim Club I Radford Kununurra Crocs Swim Club T Withey Kununurra Crocs Swim Club E Withey Kununurra Crocs Swim Club


K Withey Kununurra Crocs Swim Club W Cottle Kununurra Crocs Swim Club P Cottle Kununurra Crocs Swim Club G Taylor Kununurra Crocs Swim Club J Simons Kununurra Crocs Swim Club F Ramsay Kununurra Crocs Swim Club M Fitzpatrick Kununurra Crocs Swim Club D Hindmarsh Kununurra Crocs Swim Club B Corey Kununurra Crocs Swim Club C Ramsay Kununurra Crocs Swim Club P McAuliffe Kununurra Crocs Swim Club J Ellis Kununurra Crocs Swim Club S Bohn Kununurra Crocs Swim Club M Bohn Kununurra Crocs Swim Club J Bohn Kununurra Crocs Swim Club S Pufke Kununurra Crocs Swim Club U Pufke Kununurra Crocs Swim Club R Exell Kununurra Crocs Swim Club C Beer Kununurra Crocs Swim Club B Nadge ABC Reporter APOLOGIES

Cr M McKittrick Councillor S Dyson Director Infrastructure

3. DECLARATION OF INTEREST

● Financial Interest

Councillor Item Title Description of

interest Cr N Brook 12.2.3 Additional Flight Options I am the administrator

of the East Kimberley Marketing Group

● Impartiality Interest

Councillor/Staff Item Title Description of

interest Carl Askew 12.2.3 Additional Flight Options I represent the Shire at

the East Kimberley Marketing Group

Cr T Chafer 12.2.3 Additional Flight Options Member of the East Kimberley Marketing Group

● Proximity Interest

Nil


4. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE

Nil

5. PUBLIC QUESTION TIME Question from Keith Wright, Resident, Kununurra 1. In relation to Item 12.3.2 to be deliberated later this evening I would ask the following: Dependent on the eventual resolution regarding this matter I would ask that Council give meaningful thought to approaching the designers of this exciting project (Donovan Payne Architects ) seeking that they in some way save, and incorporate in the new structure, the stone façade of what we now know as “the old Shire offices”? Backgrounding a little, this building built in about 1967 was the focal point of the town as the Kununurra Civic Centre. It was in this building that all the balls, all the dances and in fact all the official functions held in Kununurra, this was the venue. This building was Heritage listed in 1997. Sadly in a town that is only just over 58 years old since gazettal on February 11 1961 we have destroyed some parts of our earlier beginnings. Already in our short life we have seen the original Ord Co-op building demolished. The original Post Office has gone and the Tavern now stands where the original 4-Square Store (the supermarket) and later the first Pharmacy in the East Kimberley once stood. It would be a pity if this original part of our history is not saved and used in a functional way for all who come after us to enjoy a relic of our heritage. I am sure that the original concept designers of the building, Cr Bill Withers (now in Perth) and Cr John Cole (dec) would be overjoyed if this small part of our history could be saved. Thank you Response by Shire President: Thank you for your suggestion, which I consider is a positive one that Council could support. The building is included in the Shire’s Municipal Heritage Inventory and I am sure that it would be possible to look at incorporating the original stone façade into the new structure or to integrate it with the eventual redevelopment of the former Shire administration site as it is reflective of the town’s heritage. If the redevelopment of the leisure centre proceeds as currently envisaged, there would also be a larger footprint for redevelopment which would allow even greater flexibility to incorporate this feature into a new design. Questions from Kununurra Crocs Swim Club Ian Radford, Kununurra Crocs Swim Club, Kununurra 1) How will community feedback be used? Will decisions be made according

to majority rule, financial expediency (cheapest option) or the greater good?


Response by Shire President: Redevelopment of our pool will be one of the most significant investments in

infrastructure that we will undertake. The concept master plan is very high level however the assessment undertaken to date indicates that the site can support a 50m lap pool, leisure pool and required amenities.

In light of the initial comments received from stakeholders, the Council proposes to

ask the community for feedback and all comments will be considered as part of the consultation process. Council will include in its decision making factors including a combination of strong support for the proposal, financial capacity to deliver and maintain and recognising the high social value of this investment. It will not be based on the cheapest option.

The final design will be fleshed out once the concept is agreed to and supported by

the community as well as to meet the needs of stakeholders, budget (capital and operational) and site constraints.

2) External consultation: Are the pool plans to state and national competition

standards? For instance are lanes a standard width for lap swimming and swim meets? Has Swim Western Australia been consulted about standard Olympic pool specifications and this incorporated into current plan?

Response by Shire President: The intention is for the pool to be built to competition standard and the plan will be

referred to Swim Western Australia for comment and advice. The space provided in the concept master plan, nevertheless, allows sufficient area to meet competition standards.

Colin Ramsay, Kununurra Crocs Swim Club, Kununurra 3) How do SWEK/Donavan and Payne propose to do a multi-staged

development while retaining the existing 25 m pool during initial construction of 50 m pool? Presumably the site will have to be levelled for the new development. How can this be done while retaining the pool in situ and without soil disturbance to surrounding areas including the current pool? Will the new 50 m pool then become operational and open to the public once constructed and prior to the other stages of the development being completed? Does SWEK have a plan in place in case the existing 25 m pool collapses prior to construction of 50 m pool?

Response by Shire President: Our first preference will be to keep the facility open while construction takes place in

stages. However, issues of Community safety, construction limitations and additional costs associated with this option will need considering. We recognise construction may potentially extend beyond one dry season.


The general idea is that the lower part of the aquatic facilities, the 25m lap pool and plant room, will remain operational during construction, this will require the installation of temporary water treatment chemicals and power supply to the existing plant room. The upper shallow water pools will be decommissioned and demolished to make way for construction of the proposed new pools and plant room building, to the north west of the site. After completion, commissioning and handover, demolition of the existing 25m pool and plant room would occur, followed by civil works along the eastern edge of the site, allowing for construction of the splash pad and landscaping.

Above is a general description of the construction sequence. The tender documents

would describe separable portions for completion during the construction. The head contractor would be required to outline their methodology in their tender to achieving this requirement, this would form part of the building contract.

There is no plan in place to provide alternative lap swimming facilities if the current

25m pool fails. Hence the urgency of the Council to proceed to more detailed designs and to obtain funding for construction.

Sue Cottle, Kununurra Crocs Swim Club, Kununurra 4) Is SWEK going to be true to its strategic plan: For instance, are pool

opening times going to be extended to facilitate increased use of the improved facility to increase Health, Fitness and Wellbeing in the Community? How is this to be done with no increases in Leisure Centre staff numbers (as mentioned in draft report)?

Response by Shire President: The Council is conscious of the considerable cost associated with operating this

facility and is mindful not to add significantly to those costs through the employment of additional personnel. Nevertheless there may be opportunities for clubs and users to submit proposals to increase access and extend coverage within this facility but as I said we are at very early days in this process.

The Council is not in a position to review opening hours etc at this very preliminary

stage in the design process. Council would be interested in exploring all options or suggestions around operating costs, funding opportunities and efficiencies.

Ben Corey, Kununurra Crocs Swim Club, Kununurra 5) Will there be scope for a crèche facility, even if run externally, at the

Leisure Centre so that parents can do exercise sessions at pool while their children are safely looked after?

Response by Shire President: There is scope for a crèche to be run within the facility and may be examined once

the Shire moves to preparing more detailed designs and business cases.


Maxine Fitzpatrick, Kununurra Crocs Swim Club, Kununurra 6) The swim club is supportive of this concept for expanding pool

infrastructure. How does SWEK plan to “sell” the pool concept/vision to the public? Will they allow the swim club to be part of this?

Response by Shire President: As indicated previously, we need to explore all options for funding both for capital

works and operational costs. Engagement with the community and stakeholders will be undertaken to maximise

input, refine design ideas and to build a high level of confidence in Council (of support) prior to initiating the preparation of more detailed plans.

The Council’s hope is that all users and stakeholders including the Kununurra Crocs

Swimming Club will be a participant in the engagement process and provide input and once the plan is agreed upon to provide support.

Fiona Ramsay, Kununurra Crocs Swim Club, Kununurra 7) Will there be an opportunity for the Swim Club to put forward amendments

to the current plan (for instance extension of the walking/kids lanes in the 25 m pool to 25 m in length?) once public feedback is received?

Response by Shire President: Yes. Input will be available at any time during this initial engagement period and the

Council would expect additional input from the community, users and stakeholders once the project shifts to the preparation of more detailed plans.

Sue Cottle, Kununurra Crocs Swim Club, Kununurra 8) How is the new pool complex with estimated cost of ca. $17 million going

to be funded if the public and SWEK approve the proposal? Who are the potential funding organisations? Can the Swim Club support or help in any way to make sure this proposal gets funded? Will SWEK be seeking support letters, etc.?

Response by Shire President: I am aware that the cost estimate includes $1.5m of contingencies and $6m of

district loading and I would hope that these are overly conservative estimates from the quantity surveyor and that real costs are much lower.

Funding will need to come from Federal and State government and from municipal

funds and could include community funding, noting that the State government has previously agreed to fund the splash pad/waterpark element.


If the Council agrees to proceed to the preparation of more detailed plans, they will be looking for support from the Kununurra Swimming Club, other centre users and the community.

D Spackman, Resident, Kununurra Delineators are being placed on Packsaddle Road. Is this being done to any

standard and if so, what standard is the work being done to? The Shire President took the question on notice. 6. APPLICATIONS FOR LEAVE OF ABSENCE Nil 7. PETITIONS Nil 8. CONFIRMATION OF MINUTES OFFICER’S RECOMMENDATION

That Council confirms the Minutes of the Ordinary Council Meeting held on 25

September 2018

COUNCIL DECISION

Minute Number: 30/10/2018 - 115863

Moved: Cr N Brook

Seconded: Cr T Chafer

That Council confirms the Minutes of the Ordinary Council Meeting held on 25

September 2018

Decision:8/0

Note: The Minutes of the Ordinary Council Meeting held on 25 September 2018 are provided

under separate cover via www.swek.wa.gov.au

9. ANNOUNCEMENTS BY THE PERSON PRESIDING WITHOUT DISCUSSION The Shire President, along with Cr Pearce and Cr Brook, attended the Kimberley Economic

Forum and Zone Meeting in Broome from 9-12 October On 26 October the Shire, MG, WAPOL, Chamber of Commerce and Industry and other local

businesses attended the Business After Hours event. A focus of the meeting was Youth Issues and respectful and honest discussions involved the current exercise, Orange Sky and the Integrated Youth Partnership Model.


On 28 October the Shire President attended a dinner meeting with the Director General for Department of Justice, Dr Adam Tomison and two of his colleagues; Mr Mark Burgess and Mr Matthew Abrahamson. Discussions revolved around programs and ideas coming out of the Department of Justice and how we may work together.

On 29 and 30 October, Councillors and Staff participated in WALGA Governance training sessions and a workshop by the DLGC Staff on the Local Government Act review. Each session was highly informative.

10. MATTERS FOR WHICH THE MEETING MAY BE CLOSED 16.1. Acting Chief Executive Officer - January/February 2019

16.2. 2018/19 Plant Management Program - Road Grader

11. DEPUTATIONS / PRESENTATIONS / SUBMISSIONS Nil


12. REPORTS Due to the large number of people in attendance from the Kununurra Crocs Swim Club, the

Shire President suggested to Council that item 12.3.2 be dealt with first.

12.1. MATTERS ARISING FROM COMMITTEES OF COUNCIL Nil 12.2. CHIEF EXECUTIVE OFFICER 12.2.1. Standing Item - Outstanding Actions from Previous Council

Resolutions

DATE: 30 October 2018

AUTHOR: Executive Assistant

RESPONSIBLE OFFICER: Carl Askew, Chief Executive Officer

DISCLOSURE OF INTERESTS: Nil

VOTING REQUIREMENT

Simple Majority

OFFICER’S RECOMMENDATION

That Council notes the report - Outstanding Actions from Previous Council

Resolutions.

COUNCIL DECISION

Minute Number: 30/10/2018 - 115865

Moved: Cr T Chafer

Seconded: Cr M Dear

That Council notes the report - Outstanding Actions from Previous Council

Resolutions.

Decision:8/0

PURPOSE

To report to the Council on the progress of and provide comment on outstanding actions

from Council resolutions.


NATURE OF COUNCIL’S ROLE IN THE MATTER

Leader - plan and provide direction through policy and practices

BACKGROUND/ PREVIOUS CONSIDERATIONS BY COUNCIL/ COMMITTEE

At each meeting of Council, resolutions are made which require actions to be taken by

officers to implement those resolutions. This monthly update advises the Council as to the

status of the implementation of resolutions.

STATUTORY IMPLICATIONS

Nil

POLICY IMPLICATIONS

Nil

FINANCIAL IMPLICATIONS

Not applicable as referenced in individual reports presented to the Council.

STRATEGIC IMPLICATIONS

Focus Area 4: Civic Leadership

Strategy 4.2.2: Ensure community input informs planning and decision making

RISK IMPLICATIONS

Nil

COMMUNITY ENGAGEMENT

No community engagement is required.

COMMENTS

This report includes actions from the September 2018 Council resolutions (Attachment 1).

Attachment 2 summarises all other actions that are outstanding from previous Council

resolutions.


ATTACHMENTS

Attachment 1 - Council Action Register - September 2018

Attachment 2 - Council Action Register - Outstanding Actions from Previous Council

Resolutions


12.2.2. 2019 Ordinary Council Meeting Dates


AUTHOR: Executive Assistant


FILE NO: N/A


VOTING REQUIREMENT

Simple Majority


1. That Council adopt the proposed meeting dates/times and locations for 2019

Month Ordinary Council Meeting Location of OCM

January RECESS N/A

February 26 February Wyndham

March 26 March Kununurra

April 30 April Kununurra

May 28 May Wyndham

June 25 June Kununurra

July 23 July Kununurra

August 27 August Wyndham

September 24 September Kununurra

October* 20 October

Special Council Meeting*

Kununurra


October 29 October Kununurra

November 19 November Wyndham

December 10 December Kununurra

All meetings will commence at 5.00pm.

*Note: Special Council Meeting to be held following Council Elections on Saturday 19

October 2019

2. That Council authorises the Chief Executive Officer to give public notice, by way of

advertising of the accepted Ordinary Council Meeting dates, times and place of meeting

COUNCIL DECISION

Minute Number: 30/10/2018 - 115866

Moved: Cr G Lodge


1. That Council adopt the proposed meeting dates/times and locations for 2019


January RECESS N/A




May 28 May Wyndham






October* 20 October

Special Council Meeting*

Kununurra




All meetings will commence at 5.00pm.

*Note: Special Council Meeting to be held following Council Elections on Saturday 19

October 2019

2. That Council authorises the Chief Executive Officer to give public notice, by way of

advertising of the accepted Ordinary Council Meeting dates, times and place of

meeting

Decision:8/0

PURPOSE

For Council to consider the 2019 Ordinary Council Meeting dates, times and locations.




At the November 2017 Ordinary Council Meeting, Council made the following resolution:

COUNCIL DECISION

Minute Number: 28/11/2017 – 117831

Moved Cr Chafer

Seconded Cr Lodge

That Council adopt the proposed meeting dates/times and locations for 2018:



January RECESS N/A




May 29 May Wyndham








Note: All meetings will commence at 5.00pm.

Carried 8/1

The Audit (Finance & Risk) Committee meetings were determined and advised separately.


In accordance with the Local Government Act 1995:

5.3. Ordinary and special council meetings

(1) A Council is to hold Ordinary Meetings and may hold special meetings

(2) Ordinary meetings are to be held not more than three months apart.

5.5. Convening council meetings

(1) The CEO is to convene an ordinary meeting by giving each Council member

at least 72 hours notice of the date, time and place of the meeting and an

agenda for the meeting


In accordance with the local government (Administration) Regulations 1996, Section 2:

12 Meetings, public notice of

(1) At least once each year a local government is to give local

public notice of the dates on which and the time and place at which

—

(a) the ordinary council meetings are to be held in the next 12 months.

POLICY IMPLICATIONS

Council Policy CP/CNC-3140 Council Briefing Sessions


Minor expenditure will be incurred to ensure the appropriate statutory advertising occurs.

This is provided for in the 2018/19 and to be considered in the 2019/2020 Annual Budget.


Strategic Community Plan 2017-2027

Focus Area 4 Civic Leadership

Goal: 4.3: Ensure a strong and progressive organisation delivering customer focused

services

Strategy 4.3.1: Be adaptive, responsive with a strong customer focus

RISK IMPLICATIONS

Nil.


Engagement will take place in accordance with the Shire’s Community Engagement

Guidelines and will include:

Local public notice of the Ordinary Council Meeting dates, times and locations will be given

in accordance with the legislative requirements.

COMMENTS

The proposed schedule has taken into account the following events:

● Easter 19 April - 22 April 2019

● ANZAC Day Public Holiday - 25 April 2019

● Ord Valley Muster mid - May 2019


● Local Government Week – usually first week of August (dates have not been

confirmed)

● WA Public Holidays

● Local Government Elections - 19 October 2019

● The Council Briefing Policy states briefings should be on the second Tuesday of

the month.

It is common practice in many Councils to take a recess in January due to the Christmas

period, when many businesses close down and individuals take holidays (including Shire

councillors and staff) and this is the case in the East Kimberley due to both the Christmas

period and the impact of the wet season. Until 2018 Council had continued to meet in

January, although a briefing session did not occur due to the limited time available to

prepare reports and unavailability of many staff early in the month. The recess in 2018 did

not significantly impact business and would not pose a risk if repeated again in 2019. Any

issues raised can be overcome through either a delegation or the convening of a Special

Council meeting for that purpose.

The October meeting is scheduled for 29 October to accommodate the Local Government

Elections scheduled for Saturday 19 October 2019. It is therefore appropriate to delay the

October Ordinary Council Meeting by one week in order to allow time for the possible

requirement of swearing in new Elected Members and to conduct their inductions.

Typically the December Council meeting occurs early in the month primarily because of the

reasons outlined above, combined with the fact that the fourth Tuesday tends to be very

close to Christmas (for 2019 it will be 24 December) and even the third Tuesday tends to be

late in the month, often after school holidays and when many businesses are considering

closure and individuals are planning holidays - with many leaving the region during this

period.

However when the December meeting is set too early in the month, and depending upon the

date of the November meeting, there is a very small gap between the two meetings, and the

consequential impact on the preparation of reports and agenda. For 2019 the November

meeting is proposed for 19 November and the December meeting three weeks later on 10

December. This will not allow the usual time to also prepare/present a briefing for the

December meeting as the agenda for the 10 December meeting will need to be finalised and

sent out on Friday 6 December at the latest.

The proposed meeting dates/times and locations for the 2019 Audit (Finance & Risk)

Committee will be considered by the Committee at their meeting on 5 November 2018 and

will take into consideration the adopted Ordinary Council Meeting dates, times and locations

for 2019. This will be reported to the December 2018 Council meeting.

Regular Briefing Sessions will continue and will generally occur two weeks prior to each

Ordinary Council meeting with the exception of Easter and December.


ATTACHMENTS

Attachment 1 - CP/CNC-3140 Council Briefing Sessions

Attachment 2 - Draft Council Meeting Schedule Planner 2019


12.2.3. Additional flight options

Cr N Brook declared a financial interest as the administrator of the East Kimberley Marketing

Group

Cr T Chafer declared an impartiality interest as a member of the East Kimberley Marketing

Group

Carl Askew, CEO declared an impartiality interest as he represents the Shire at the East

Kimberley Marketing Group

Cr N Brook departed Chambers at 5:51pm


AUTHOR: Carl Askew, Chief Executive Officer


FILE NO: TT.15.3

DISCLOSURE OF INTERESTS: The CEO declares an impartiality interest as he

represents the Shire at the East Kimberley Marketing

Group

VOTING REQUIREMENT

Absolute Majority


That Council: 1. Authorise the CEO and Administration to further investigate the business

case and potential risk exposure for Council in financially supporting a trial of

an air service proposed by the East Kimberley Marketing Group between

Kununurra and Melbourne for forty (40) return services between May and

October 2019 and report back to Council by December 2019;

2. Request the CEO to continue negotiations with the East Kimberley Marketing

Group and their partners to develop an Agreement to deliver the proposal as

outlined in point 1 above;

3. Request the CEO to further negotiate with the East Kimberley Marketing

Group and the Airlines regarding the type of aircraft, flight schedules and the

implications for connections with Melbourne Airport and services required of

EKRA, confirmation of the opportunity for booking arrangements and

seamless ticketing or connectivity to secondary destinations, confirmation of

details related to fare structures and ticketing costs, key performance


indicators and risk mitigation options;

4. Confirm its support and contribution to the trial upon the development and

execution of a professional marketing campaign properly funded and

resourced by the State Government through Tourism WA and Australia’s

North West (ANW) and the East Kimberley Marketing Group to promote the

commencement and for the duration of the trial service; and

5. Authorise, in accordance with section 6.11 (2) of the Local Government Act

1995, the advertising of a change to the Airport Reserve purpose to “The

Reserve is to provide support for the Shire’s Airport operations and facilities

and to promote an expansion of airport operations and increased passenger

numbers through the airport. These include normal operations, asset

management, expansion of facilities and operations and projects that support

the strategic objectives for the Airport”. This change is in order to facilitate a

potential use of the reserve to assist in the underwriting of the proposal

outlined in point 1 above, if endorsed by Council.

Cr D Pearce put forward an alternative motion. This was distributed to all Councillors prior to

the meeting. The Shire President called for a mover and a seconder for the Alternative

Motion.

Cr G Lodge foreshadowed the Officer’s Recommendation should the Alternative Motion not

be successful.

COUNCIL DECISION

Minute Number: 30/10/2018 - 115867

Moved: Cr D Pearce


That Council: 1. Authorises the CEO and administration to further investigate the business case and potential risk exposure and benefits to the Community, SWEK and the EKRA in financially supporting a trial of a direct air service between Kununurra and Melbourne, including:

a) A benefit-cost analysis and risk assessment of the flights proposal from EKMG, addressing the full range of impacts on the business operations of the East Kimberley Regional Airport.

b) Sensitivity analyses of the proposed Melbourne flights, modelling varying

proportions of passenger flight substitution over existing routes, and the extent to which this will impact on airport passenger numbers (using historical EKRA passenger numbers as a guide).


c) An assessment of broader impacts on the community arising from the proposal, not limited to tourism. This is to include positive impacts as well as risks.

d) Provision of a timeline identifying those critical milestones that need to be

achieved to best ensure the success of the project. 2. Requests the CEO to report back to Council on progress towards investigating these matters at the next Council Briefing.

3. Authorise, in accordance with section 6.11 (2) of the Local Government Act 1995, the

advertising of a change to the Airport Reserve purpose to “The Reserve is to provide

support for the Shire’s Airport operations and facilities and to promote an expansion of

airport operations and increased passenger numbers through the airport. These

include normal operations, asset management, expansion of facilities and operations

and projects that support the strategic objectives for the Airport”.

Decision:6/1

Against: Cr A Petherick

Cr N Brook returned to Chambers at 6.13pm

V Lawrence departed chambers at 6.13pm

V Lawrence returned to Chambers at 6.15pm

Shire President informed Cr N Brook of the resolution.

PURPOSE

For Council to consider supporting a proposed trial of a new (additional) air service between

Melbourne and Kununurra from the East Kimberley Marketing Group with the proposal to

trial two flights per week for 20 weeks (40 flights) from May 2019 using an 80 seat F100

aircraft to increase the tourism and business potential between Kununurra and Melbourne.


Advocator - advocate and support initiatives on behalf of the community and the Kimberley

Facilitator - bring stakeholders together

Funder - provide funds or other resources

Provider - provide physical infrastructure and essential services


The East Kimberley Marketing Group (EKMG) has been working toward the introduction of

additional flights in to Kununurra from Melbourne since prior to 2015. Significant work

including research and marketing studies have been commissioned and completed by the

EKMG as well as ongoing negotiations with a number of airline providers. The Council has

previously and continues to appoint an Elected Member representative to the Group and

the EKMG has previously received $49,500 support from the Shire for various related

studies as outlined in their initial proposal to Council in November 2016 and subsequent

proposal in 2017.


When the matter was considered by Council at its Ordinary Meeting of on 22 November

2016 Council resolved as follows;

COUNCIL DECISION

Minute No: 22/11/16-11549

Commissioner resolved:

That Council:

1. Provide in principle support for a trial of an air service proposed by

East Kimberley Marketing Group between Kununurra and Melbourne for

forty (40) return services between May and October 2017 and authorise

the CEO to enter into negotiations with the East Kimberley Marketing

Group and their partners on the basis of the following:

a. Consideration of a supporting financial package comprising:

i. Waiver of Passenger Service Fees for screening

and terminal usage.

ii. Operational subsidy to maximum of $200,000

(acknowledging an additional contribution from the local

community of at least $100,000).

iii. Marketing campaign funded and professionally

resourced to promote the commencement and for the

duration of the trial service.

b. Advise the East Kimberley Marketing Group that Landing

Fees should be met for flights as they comprise a

contribution towards the asset management and

maintenance of the runway and other airside

infrastructure.

c. Further negotiate with East Kimberley Marketing Group

regarding pricing structure, landing fees, marketing, key

performance indicators, underwriting and “claw back”

mechanism and Council’s assistance with the proposed

trial.

2. Refer the cost of the trial for consideration in both the Mid-

Year Budget Review 2016-17 and Annual Budget 2017-18.

Carried 1/0

At the 28 November 2017 Ordinary Council Meeting, the item was once again considered

and Council resolved;

COUNCIL DECISION

Minute Number: 28/11/2017-117835


Moved: Cr Chafer

Seconded: Cr Pearce

That Council reaffirm its decision of 22 November 2016 and specifically:

1. Provide support for a trial of an air service proposed by the East

Kimberley Marketing Group between Kununurra and Melbourne for

forty (40) return services between May and October 2018 and authorise

the CEO to enter into negotiations with the East Kimberley Marketing

Group and their partners on the following basis:

a. Consideration of a supporting financial package

comprising:

i. Waiver of Passenger Service Fees for screening,

Terminal Passenger Handling Fees and Landing Fees to

a maximum value of $153,000. conditional upon the

flights arriving and departing between 10:00 am and 4:00

pm (WA time) when the airport staff are onsite and

available.

ii. Operational subsidy to maximum of $200,000

(acknowledging an additional contribution from the

State Government and/or local community of at

least $200,000).

b. Further negotiate with the East Kimberley Marketing Group

and the Airline regarding the type of aircraft, flight schedules

and the implications for connections with Melbourne Airport

and services required of EKRA, confirmation of the opportunity

for, booking arrangements and seamless ticketing or

connectivity to secondary destinations, confirmation of details

related to fare structures and ticketing costs, key performance

indicators.

2. Condition its support and contribution to the trial upon the

development and execution of a professional marketing campaign

properly funded and resourced by the State Government to promote

the commencement and for the duration of the trial service;

3. Refers the cost of the trial for consideration in both the Mid-Year

Budget Review 2017-18 and Annual Budget 2018-19; and

4. Refers the replacement of Landing Fees to the Airport Reserve

from Municipal funds for consideration in both the Mid-Year Budget

Review 2017-18 and Annual Budget 2018-19.

Carried 8/0



Council is subject to a number of provisions under the Local Government Act in relation

to the allocation of funds.

6.11. Reserve accounts

(1) Subject to subsection (5), where a local government wishes to set

aside money for use for a purpose in a future financial year, it is to establish and

maintain a reserve account for each such purpose.

(2) Subject to subsection (3), before a local government —

(a) changes* the purpose of a reserve account; or

(b) uses* the money in a reserve account for another purpose,

it must give one month’s local public notice of the proposed change of

purpose or proposed use.

* Absolute majority required.

(3) A local government is not required to give local public notice under

subsection (2) —

(a) where the change of purpose or of proposed use of money has

been disclosed in the annual budget of the local government for that financial year; or

(b) in such other circumstances as are prescribed.

(4) A change of purpose of, or use of money in, a reserve account is to be

disclosed in the annual financial report for the year in which the change occurs.

(5) Regulations may prescribe the circumstances and the manner in

which a local government may set aside money for use for a purpose in a future

financial year without the requirement to establish and maintain a reserve account.

Council also needs to be mindful of issues related to the National Competition Policy

and associated Competition Principles Agreement - an intergovernmental agreement

between the Commonwealth and State/Territory governments that sets out how

governments will apply National Competition Policy principles to public sector

organisations within their jurisdiction.

The State Government released a policy statement effective from July 1996 called the Clause

7 Statement, which forms part of the Competition Principles Agreement. The provisions of

Clause 7 requires local government to report annually on their implementation, application

and effects of Competition Policy as well as the structural reform of public monopolies and

the implementation of Legislative review. Competition Policy does not require contracting out

or competitive tendering. It does not preclude local government from continuing to subsidize

its business activities from general revenue, nor does it require privatisation of Government

functions. Competitive neutrality principles apply to those significant business activities

conducted by (or under the control of) one or more local government.

POLICY IMPLICATIONS

There are no specific policy implications that impact on the consideration of this

report however there is a need to meet good governance principles in assessing the

request.



The East Kimberley Marketing Group have taken the lead on negotiations to date with

both the airlines and the State Government in relation to the proposed service and the

financial support for the proposal. Support from the State Government has been limited

to date and the airlines have been reluctant to bear the full risk of a new route trial. To

date the Shire has been supportive of the proposal (see above prior resolutions and

financial commitments) including a combination of foregone revenue and direct

contributions. Components such as marketing/promotion and contributions from

commercial operators, other levels of Government and individual community members

have also been identified.

The current proposal is considered to be commercially sensitive at this time and prior to

negotiations being finalised, and as such the general financial commitment and exposure to

the proposal is still under consideration by the Administration and has been advised to

Council under confidential cover.

The current purpose of the Airport Reserve is to “provide support for the Shire’s Airport

operations and facilities and to promote an expansion of airport operations. . These include

normal operations, asset management, expansion of facilities and operations”. The

proposed change expands that purpose as follows “to provide support for the Shire’s

Airport operations and facilities and to promote an expansion of airport operations and

increased passenger numbers through the airport. These include normal operations, asset

management, expansion of facilities and operations and projects that support the strategic

objectives for the Airport”.



Focus Area 3: Economic Prosperity


Goal 3.1: To deliver the critical infrastructure that will create the conditions for

economic growth across the Shire

Goal 4.4: Sustainably maintain the Shire’s financial viability


services

Strategy 3.1.1: Improve the Shire’s transport infrastructure, including Wyndham

Port and East Kimberley Regional Airport through lobbying, project support and

funding opportunities

Strategy 3.1.2: Improve access and transport links to the East Kimberley (air,

road and sea)

Strategy 4.4.3: Adequately plan for and fund asset maintenance and renewal to

deliver planned services


Strategy 4.4.4: Apply best practice financial management to ensure long term

sustainability

RISK IMPLICATIONS

The wider risk implications are as follows:

Risk: Inability to deliver levels of service expected by the community.

Control: Develop agreed standards of service and communicate with the community

Risk: Failure to comply with legislative requirements leading to damage of reputation

and/or financial loss.

Control: Increased accountability to the Audit (Finance and Risk) Committee


No community engagement has been undertaken to date by the Shire other than via

communication with EKMG and associated meetings. EKMG have been active in promoting

the trial and have made a number of presentations to Council including the most recent

Briefing session on 16 October 2018. They have also raised funds from the general

community and tourism industry operators as well as having a number of articles and reports

in the local papers. As such there has been community awareness of the proposal with

general positive support.

Under section 6.11 of the Local Government Act any change to the purpose of a reserve

account will require one month’s local public notice.

COMMENTS

As has been outlined by the EKMG to Council previously and most recently at the Council

Briefing this proposal has been discussed and considered for a number of years. Most

recently the Group were confident that during 2018 the trial would take place with the

support of Alliance Airlines and were at the point of signing an Agreement with all pre-

conditions met and a draft agreement prepared however at the last minute Alliance indicated

that there were previously unidentified challenges with their partners and securing sufficient

crews and aircraft for the trial and as a consequence the trial did not take place. (refer to

EKMG Media Release attached).

Negotiations have continued since then with various partners in relation to securing the trial

for the 2019 season including high level discussions with the State Government in relation to

financial support for the trial. That support remains unsecured at this time however Council

has an opportunity to show leadership for this project by negotiating an agreement that may

allow the trial to proceed but which can also protect the Shire from potential financial risk.

This work is ongoing and will take significant time by the Administration and so this initial

report seeks Council’s support and authority to further investigate and report back on the

matters identified in the above resolution. If supported by Council a further briefing will be


provided to Elected Members in November 2019 and a formal report will be provided to

Council in December 2019.

Timing is critical for this proposal and significant work will need to be undertaken quickly if

the proposal is to be given every chance of success with advertising needed in the

Melbourne market early in the new calendar year and tickets available on the GDS also by

the end of January 2019. This would also mean a signed Agreement with the EKMG and

partner airlines will need to be finalised and signed by the end of December 2018.

The current proposal is considered to be commercially sensitive at this time and prior to

negotiations being progressed and/or finalised, and as such the general detail, financial

commitment and risk exposure to the proposal, including a detailed draft Agreement, is still

under consideration by the Administration and will be advised to Council under separate

confidential cover, if Council supports further investigation by the Administration.

ATTACHMENTS

Attachment 1 – Media Release – Plight for Direct Flights Continues


12.3. COMMUNITY DEVELOPMENT 12.3.1. Development Approval Application - Lot 707 Drovers Road, Kununurra -

Caretaker's Dwelling


AUTHOR: Planning Officer

RESPONSIBLE OFFICER: Nick Kearns, Director Planning and Community

Development

ASSESSMENT NO: A2859P

FILE NO: A2859P


VOTING REQUIREMENT

Simple Majority


That Council:

1. Authorises the Chief Executive Officer to sign the application form for

development and building approvals to develop a caretaker’s dwelling within the

Kununurra Campdraft and Rodeo Association (KCRA) lease area at R30290 Lot

707 Drovers Road, Kununurra.

2. Grants development approval consent to use and develop the land for a

caretaker’s dwelling within the Kununurra Campdraft and Rodeo Association

(KCRA) lease area at R30290 Lot 707 Drovers Road, Kununurra, subject to the

following conditions:

a. The use and development shall be in accordance with the attached

approved plan(s) and subject to any modifications required as a

consequence of any conditions of this approval. The endorsed plans shall

not be modified or altered without the prior written approval of the local

government.

b. No development shall occur that will cause additional runoff of stormwater

to adjacent properties. Stormwater runoff from roof and any sealed areas

shall be directed onsite to garden areas, sumps or rainwater tanks, or

directed into the local government’s stormwater system in accordance with

the local governments specifications. Stormwater will not be permitted to

pond on the site or against any building or structure.

c. The caretaker’s dwelling shall only be used to accommodate a caretaker

employed to caretake the Kununurra Campdraft and Rodeo Association


(KCRA) lease area, and shall not be rented to any other person on a semi-

permanent or permanent basis. Any change of use shall require consent

from the local government.

d. An Asset Protection Zone (APZ) shall be maintained to a minimum 27 metre

radius around the caretaker’s dwelling at all times. Within the APZ

combustible objects shall not be located close to vulnerable parts of the

building (ie. windows and doors), grasses shall be managed to a maximum

height of 100 mm and other vegetation shall be managed to reduce the

bushfire hazard to an acceptable level at all times.

e. A minimum 10,000 litres of water shall be available for firefighting purposes

at all times. All water tanks accessible for firefighting purposes shall be

fitted with suitable connection fittings and be maintained in correct

operating condition at all times.

f. All external water pipes shall be laid underground to a minimum depth of

300 mm to withstand the effects of a bushfire.

g. The development shall be provided with:

i. Access via an all-weather road with dimensions adequate to

accommodate emergency vehicles;

ii. Connection to a wastewater treatment system in accordance with

the Health (Treatment of Sewerage and Disposal of Effluent and

Liquid Waste) Regulations 1974 and subject to the approval of the

local government.

iii. Connection to a reticulated potable water supply or an alternative

potable water supply with adequate storage for domestic use as

well as for fire-fighting purposes;

iv. Connection to a reticulated electricity supply or an alternative

energy source.

ADVICE NOTES TO APPLICANT

1. If the applicant and/or owner are aggrieved by this decision, as a result of

a condition of approval or by a determination of refusal, you may have a

right of review through the State Administrative Tribunal in accordance

with Clause 76 of the Planning and Development (Local Planning Schemes)

Regulations Act 2015 (WA).

2. An owner of land may, in respect of which development approval has been

granted by the local government, make an application to the local

government requesting the local government to amend or cancel an

approval in accordance with Clause 77 of the Planning and Development

(Local Planning Schemes) Regulations Act 2015 (WA).

3. This approval is valid for a period of two (2) years. A new application will

be required to be submitted if development has not been substantially

commenced within this time.


4. This approval is not a Building Permit or an approval under any other law

than the Planning and Development Act 2005. It is the responsibility of the

applicant/owner to obtain any other necessary approvals, consents and/or

licenses required under any other law, and to commence and carry out

development in accordance with all relevant laws).

5. It is the responsibility of the applicant to ensure the building setbacks,

including waste disposal facilities if appropriate, correspond with the legal

description of the land. The local government will not accept responsibility

for incorrectly located buildings.

6. It is the responsibility of the applicant to search the title of the property to

ascertain the presence of any easements that in any case must not be built

upon.

7. This lot is designated as bushfire prone within the Department of Fire and

Emergency Services’ Map of Bushfire Prone Areas. A Bushfire Attack Level

Assessment carried out by the Shire of Wyndham East Kimberley (Dated:

15 October 2018) identifies the site as being BAL-12.5 with a requirement

to maintain grasslands at a maximum height to 100mm for a minimum 27

metres around the caretaker’s dwelling. All construction must be in

accordance with the Australian Standard - Construction of buildings in

bushfire prone areas (AS 3959-2009).

8. In regards to Condition g: all water storage tanks to be used for firefighting

purposes shall include the installation of an outlet with gate valve and male

coupling located at the base of the tank to the local Fire Brigade

specifications and be clearly marked “Fire Brigade Connection Point”.

Water tanks should be designed and maintained to prevent the harbourage

and breeding of mosquitoes.

COUNCIL DECISION

Minute Number: 30/10/2018 - 115868

Moved: Cr G Lodge

Seconded: Cr J Farquhar

That Council:

1. Authorises the Chief Executive Officer to sign the application form for

development and building approvals to develop a caretaker’s dwelling

within the Kununurra Campdraft and Rodeo Association (KCRA) lease

area at R30290 Lot 707 Drovers Road, Kununurra.

2. Grants development approval consent to use and develop the land for a

caretaker’s dwelling within the Kununurra Campdraft and Rodeo

Association (KCRA) lease area at R30290 Lot 707 Drovers Road,


Kununurra, subject to the following conditions:

a. The use and development shall be in accordance with the attached

approved plan(s) and subject to any modifications required as a

consequence of any conditions of this approval. The endorsed

plans shall not be modified or altered without the prior written

approval of the local government.

b. No development shall occur that will cause additional runoff of

stormwater to adjacent properties. Stormwater runoff from roof

and any sealed areas shall be directed onsite to garden areas,

sumps or rainwater tanks, or directed into the local government’s

stormwater system in accordance with the local governments

specifications. Stormwater will not be permitted to pond on the

site or against any building or structure.

c. The caretaker’s dwelling shall only be used to accommodate a

caretaker employed to caretake the Kununurra Campdraft and

Rodeo Association (KCRA) lease area, and shall not be rented to

any other person on a semi-permanent or permanent basis. Any

change of use shall require consent from the local government.

d. An Asset Protection Zone (APZ) shall be maintained to a minimum

27 metre radius around the caretaker’s dwelling at all times. Within

the APZ combustible objects shall not be located close to

vulnerable parts of the building (ie. windows and doors), grasses

shall be managed to a maximum height of 100 mm and other

vegetation shall be managed to reduce the bushfire hazard to an

acceptable level at all times.

e. A minimum 10,000 litres of water shall be available for firefighting

purposes at all times. All water tanks accessible for firefighting

purposes shall be fitted with suitable connection fittings and be

maintained in correct operating condition at all times.

f. All external water pipes shall be laid underground to a minimum

depth of 300 mm to withstand the effects of a bushfire.

g. The development shall be provided with:

i. Access via an all-weather road with dimensions adequate to

accommodate emergency vehicles;

ii. Connection to a wastewater treatment system in accordance

with the Health (Treatment of Sewerage and Disposal of

Effluent and Liquid Waste) Regulations 1974 and subject to

the approval of the local government.

iii. Connection to a reticulated potable water supply or an

alternative potable water supply with adequate storage for

domestic use as well as for fire-fighting purposes;

iv. Connection to a reticulated electricity supply or an alternative

energy source.


ADVICE NOTES TO APPLICANT

1. If the applicant and/or owner are aggrieved by this decision, as a result of

a condition of approval or by a determination of refusal, you may have a

right of review through the State Administrative Tribunal in accordance

with Clause 76 of the Planning and Development (Local Planning

Schemes) Regulations Act 2015 (WA).

2. An owner of land may, in respect of which development approval has

been granted by the local government, make an application to the local

government requesting the local government to amend or cancel an

approval in accordance with Clause 77 of the Planning and Development

(Local Planning Schemes) Regulations Act 2015 (WA).

3. This approval is valid for a period of two (2) years. A new application will

be required to be submitted if development has not been substantially

commenced within this time.

4. This approval is not a Building Permit or an approval under any other law

than the Planning and Development Act 2005. It is the responsibility of

the applicant/owner to obtain any other necessary approvals, consents

and/or licenses required under any other law, and to commence and

carry out development in accordance with all relevant laws).

5. It is the responsibility of the applicant to ensure the building setbacks,

including waste disposal facilities if appropriate, correspond with the

legal description of the land. The local government will not accept

responsibility for incorrectly located buildings.

6. It is the responsibility of the applicant to search the title of the property

to ascertain the presence of any easements that in any case must not be

built upon.

7. This lot is designated as bushfire prone within the Department of Fire

and Emergency Services’ Map of Bushfire Prone Areas. A Bushfire

Attack Level Assessment carried out by the Shire of Wyndham East

Kimberley (Dated: 15 October 2018) identifies the site as being BAL-12.5

with a requirement to maintain grasslands at a maximum height to

100mm for a minimum 27 metres around the caretaker’s dwelling. All

construction must be in accordance with the Australian Standard -

Construction of buildings in bushfire prone areas (AS 3959-2009).

8. In regards to Condition g: all water storage tanks to be used for

firefighting purposes shall include the installation of an outlet with gate

valve and male coupling located at the base of the tank to the local Fire

Brigade specifications and be clearly marked “Fire Brigade Connection

Point”. Water tanks should be designed and maintained to prevent the

harbourage and breeding of mosquitoes.

Decision:8/0


PURPOSE

For Council to consider an application for development approval for a caretaker’s dwelling

for the Kununurra Rodeo and Campdraft Association (KCRA) in the KCRA lease area at

R30290 Lot 707 Drovers Road, Kununurra.


Regulator - enforce state legislation and local laws


The land is located to the west of the Victoria Highway and on the northern side of Lake

Kununurra/Ord River and has an approximate site area of 109 hectares. The property is

Reserve 30290 which is under management of the Shire and is set aside for the purpose of

Racecourse, Recreation and Sporting Clubs.

The land is generally flat and contains several lease areas including: the Kununurra Race

Club, the Kununurra Campdraft and Rodeo Association (formerly Kununurra Bushmen’s

Rodeo Association), the Kununurra Dragon Boat Club and Kimberley Action Sports. Each

lease area contains development associated with the particular land use or group. There is

also a Designated Fenced Area which is licensed and located to the north-east of the

Kununurra Race Club and Kununurra Campdraft and Rodeo Association lease areas. The

land located to the north, south, east and west is Crown Land.

The Kununurra Campdraft and Rodeo Association (KCRA) lease is located towards the

centre of the site, immediately to the north of the Kununurra Race Club lease. Approvals

have been granted in recent years for upgrades to the KCRA lease area, including for a

Multipurpose Building and Ablution Building.

Previously there was a caretaker’s dwelling located in close proximity to the rodeo grounds,

however it fell into disrepair and was removed from the property prior to the most recent

lease being entered into.


Locality Plan: Lot 707 Drovers Road, Kununurra

Proposal:

Key details of the proposal can be summarised as follows:

● Caretaker’s dwelling with two bedrooms, two ensuites and open plan kitchen/living

area.

● The building will be 14.5 metres by 3.3 metres.

● A tropical roof will be constructed over the building, which will provide car parking

space under roof and a deck area.

● The building will be setback approximately 7 metres from the eastern boundary of the

KCRA lease boundary (adjoining the designated fenced area) and approximately 7

metres from the western lease boundary (adjoining the Kununurra Race Club lease).

The applicant has highlighted the need for a permanent caretaker to provide on-site security

and for general repairs and maintenance, grounds maintenance and upkeep (mowing and

watering) and cleaning of facilities. A permanent on-site caretaker would also provide a

check-in point for people who were visiting the site. It is proposed that the accommodation

would allow either a couple or 2 single people to undertake the position.

Clause 67 of the Planning and Development (Local Planning Scheme) Regulations 2015

outlines what the local government is required to consider in assessing an application for

development approval. This includes: orderly and proper planning, character and amenity of


the local area and any proposed amendments or reviews to the Local Planning Scheme that

have been advertised.


Draft Local Planning Strategy

The draft Local Planning Strategy identifies the opportunity for redevelopment of the

Kununurra Racecourse as an events precinct to support racing, concerts, and other larger

community events. The draft Local Planning Strategy highlights that the redevelopment of

the events precinct would not replace recreational activities from within the townsite area,

however would facilitate larger scale activities and opportunities as the town grows.

Local Planning Scheme No. 7 - Kununurra and Environs (LPS No. 7)

Under LPS No. 7 the land is set aside as a Parks and Recreation Reserve, the objective of

which is to identify and protect land utilised for local recreational needs.

Draft Local Planning Scheme No. 9 (draft LPS No. 9)

Draft Local Planning Scheme No. 9 (draft LPS No. 9) and has been approved by the Minister

for Planning subject to modifications, which are currently being updated. Under draft LPS

No. 9 the land will be reserved for Public Open Space, the objectives of which include to set

aside areas of public open space and to provide for a range of active and passive recreation

uses.

POLICY IMPLICATIONS

CP/PMG-3780 - Leasing of Council Managed Reserve Land - Community

Clause 5 (“Development”) of the Leasing of Council Managed Reserve Land - Community

Policy, requires that authorisation for any proposed development on leased land should be

sought from the Shire, to determine community needs based on long term strategic

relevance and planning.


The relevant development approval application fee has been paid.





services

Strategy 4.3.2: Create a culture that encourages innovation, collaboration, best

practice and organisational discipline to improve efficiency, effectiveness and

productivity


RISK IMPLICATIONS

Strategic Risk: Failure to comply with legislative requirements leading to damage of

reputation and/or financial loss.



COMMENTS

This application is put forward for Council to authorise the CEO to sign the application form

for the proposed development and for Council to approve the development on land which is

under the management of the Shire and currently reserved for Parks and Recreation under

LPS No. 7.

The proposed development is consistent with the objectives of the Reserve and the use of

the Kununurra Campdraft and Rodeo Association (KCRA) lease area and will provide

permanent accommodation for a caretaker to maintain the grounds and facilities within the

lease area.

The site is identified in the draft Local Planning Strategy for potential redevelopment of a

major event precinct in the future. The proposed development will be located to the south-

eastern corner of the KCRA lease area, which is in an area currently not utilised by the

Association. It is considered the location and design of the proposed development will not

inhibit future redevelopment of the site.

In accordance with bushfire requirements a Bushfire Attack Level (BAL) Assessment was

undertaken at the site. An initial assessment determined that a BAL of 12.5 could be

achieved, on the proviso that a revised site plan and a management agreement, between

the KCRA and the Kununurra Race Club, be submitted for approval, which is reflected in the

recommended conditions of approval. On the revised site plan the proposed caretaker’s

dwelling is to be 7 metres from the eastern boundary (abutting the licenced area) and 7

metres from the western boundary (abutting the Kununurra Race Club lease area). The

management agreement provided states that the KCRA will be responsible for management

of vegetation surrounding the proposed caretaker’s dwelling for a minimum radius of 27

metres, which will include methods of mowing, slashing, whipper snipping and irrigation to

ensure fire safety is maintained and that at all times grasses will be maintained under a

height of 100mm. The agreement has been signed by both parties.

A Bushfire Attack Level (BAL) Certificate has been issued with a determination of a BAL

12.5 on the proviso of a signed management agreement between the KCRA and the

Kununurra Race Club (as described above). It is recommended that conditions are included

to address these requirements and the Bushfire Attack Level (BAL) Certificate and the

signed management agreement will form part of the endorsed plans for the proposed

development.


Other standard conditions are recommended with regard to drainage and for the treatment of

septic waste and are in line with what has been submitted, including supporting

documentation.

The proposal is recommended for approval.

ATTACHMENTS

Attachment 1 - Development Plans

Attachment 2 - Application Documents

Attachment 3 - Bushfire Attack Level (BAL) Certificate


12.3.2. Kununurra Aquatic and Leisure Facility Draft Masterplan


AUTHOR: Nick Allen, Acting Manager Community Development

RESPONSIBLE OFFICER: Director Planning and Community Development

FILE NO: CP.06.14


VOTING REQUIREMENT

Simple Majority


That Council:

1. Endorses the Kununurra Aquatic Redevelopment - Design Report for the

purpose of advertising for public comment, and

2. Authorises a 28 day advertising period for public comment and consultation

with relevant stakeholders and users of the Kununurra Leisure Centre.

COUNCIL DECISION

Minute Number: 30/10/2018 - 115864

Moved: Cr D Pearce

Seconded: Cr J Farquhar

That Council:

1. Endorses the Kununurra Aquatic Redevelopment - Design Report for the

purpose of advertising for public comment, and

2. Authorises a 28 day advertising period for public comment and consultation

with relevant stakeholders and users of the Kununurra Leisure Centre.

Decision:8/0

PURPOSE

For Council to endorse the advertising and comment period for the redevelopment of the

Kununurra Leisure Centre in line with the Kununurra Aquatic Redevelopment - Design

Report.




Facilitator - bring stakeholders together




The Shire has undertaken significant planning and design regarding the redevelopment of the Kununurra Leisure Centre since the pool failure in 2012. This has included redevelopment proposals on the existing site as well as new developments at East Lily Creek. Both of the options, although having merit, required considerable funding in excess of $40m. In response to this and in light of funding that may be available, the Shire engaged architects Donovan and Payne (specialists in the design of community projects and aquatic facilities) to prepare a new proposal which would essentially entail the retention of the main leisure centre building and the construction of new aquatic (pool) facilities including a water park feature. The architects met with key stakeholders and facility users and determined the following key priorities:

● Single level aquatic facilities for improved surveillance ● Consideration for facility cost including to maintain operating costs ● Improved disability access throughout the building - particularly in relation to the

change rooms ● Increased storage ● Additional program (activity) space ● New entry including a kiosk or cafe space for parents and other visitors to the centre ● More flexible lap swimming being preferably a 50m pool which would have ability to

transform to two 25m pools (with centre boom) ● Freeform pool with universal access (beach entry) and integrated learn to swim area ● Water park - flexible enough to be expandable but as a feature of the centre and also

to be freely accessible at times ● Options to incorporate pool heating to extend usage through the dry season ● The need to optimise the use of the site area and to make the facility more attractive

to families

A copy of the Design Report which provides relevant plans is at Attachment 1. Key features include:

● Construction of new freeform and 50m lap pool on a concourse level with the main

facility as well as a toddler’s pool. The suggestion is that a boom may be installed in

the lap pool to allow the pool to be divided into two 25m pools if required.

● Splash pad/ water park. This is shown as a second stage of the proposal but given

that funding has previously been agreed, is likely to be constructed in the initial

stage.

● Renovated change rooms and toilets to conform with disability standards

● New entry and expanded gymnasium

● New and expanded storage areas

● Creation of a new programmable activity space or community meeting space by

utilising part of the former Shire administration offices, being the newest part of the

building closest and adjoining the centre


The project has been costed into two components, being staged fundamentally to replace the current aquatic facilities which are at their end of useful life and subject to failure.

First stage aquatic facility: $17,267.147 (excluding splash pad)

● Building works and pools excluding 50m pool - $1,565,625 ● Construction of new 50m pool - $3,240,000 ● Leisure Pool, Program Pool, Toddlers Pool - $2,078,000 ● External works - $502,500 ● External services - $210,000 ● Builders preliminaries - $911,535 ● Contingencies (17%) - $1,531,379 ● Professional fees - $1,204,685 ● 60% district loading - $6,023,423

Ideally within this stage the pool side and hall change rooms and toilets would also be renovated which would cost in the order of $275,000 as these were previously identified as priority works.

The additional proposals (within subsequent stages) in the masterplan for the complex would add additional $4.5M in costs and would need to be programmed and funded in separately.

Separate funding has previously been provided for the construction of the splash pad/ water park component which would constructed within the first stage of the proposal, in the order of $590,000.

Some discussion and preliminary costings associated with potentially heating the pools is included in the Design Report and is able to be integrated into future enhancements of the centre.


There are no statutory implications associated with this report.

POLICY IMPLICATIONS

There are no policy implications associated with this report.


The adopted 2018/19 budget included an expenditure budget of $75,000.00 for the

development of a recreation master plan for the site. Consultant fees for Donovan and

Payne to develop an Aquatic and Leisure Facility Master Plan and quantity surveyor costing

associated with the plan has been $24,900. It is anticipated that the remaining funds will be

utilised to prepare more detailed site plans for future funding purposes, particularly relevant

to the most urgent (aquatic) components as well as to assist the Shire to better estimate the

associated contingency costs.

Construction of the first stage will be dependent upon achieving funding from the State and

Federal Government, which would need to be in the order of $16M, with the balance being

from municipal funds. The additional components of the masterplan may be able to be

constructed progressively over the next 5 years but would be funding dependent.


Contained within the overall costings are estimates for Contingencies at $1.5m and District

Loading of $6m. The Shire would like to think that these estimates are overly conservative

and “risk averse” and that the subsequent stages of development, including tender

processes, will see these figures much lower than estimated to date.



Focus Area 1: Healthy vibrant active communities

Goal 1.2: Increase participation in sporting, recreation and leisure activities

Goal 2.2: Provide sustainable public infrastructure that serves the current and future

needs of the community

Goal 4.2: Good decision making through engagement with the community

Strategy 1.2.1: Collaborate with a wide range of stakeholders to advocate and

provide accessible facilities that supports a range of sporting and

recreational activities

Strategy 1.2.3: Support and build capacity of community groups and clubs

through community grants programs, advice and management of Shire

reserves and facilities

Strategy 2.2.1: Provide and maintain infrastructure that promotes sustainable

growth and positively impacts the well-being and lifestyle of residents

and users

Strategy 2.2.2: Ensure energy efficiency options are considered to reduce the

Shire’s costs

Strategy 4.4.2: Secure the maximum grant assistance available, whilst ensuring

the greatest relevant benefit to the community

RISK IMPLICATIONS

The current (main) pool is at risk of failure in the structural integrity (cracking and movement)

of the shell and this is evidenced by water intrusion into the liner. It may not be possible to

repair the shell and liner in the event that there is further cracking. The development of this

plan will provide a ‘shovel-ready’ solution for the purpose of planning for this eventuality as

well as to plan and improve the centre into the future.


The Shire of Wyndham East Kimberley CP/GOV - 3100 Community Engagement Policy has

been considered in relation to this item.

Engagement prior to the draft document being developed has taken place with key

stakeholders and user groups, including with operational staff at the centre. This has

included: Kununurra Swim Club; Crazy Croc’s Playgroup and Kununurra Taekwondo. Shire

staff have also discussed the draft concept with the Kununurra District High School, as users

of the facility.


Further engagement will take place in accordance with the Shire’s Community Engagement

Guidelines and will include:

● Meetings with Shire representatives (Officers and Councillors), community members,

sports clubs and other key stakeholders, including to discuss the concept proposal

with those organisations and clubs previously consulted

● Have your Say - Shire Website

● Letterbox flyer

● Media release

● Public stalls and displays

The consultation period will be open for comment for a period of 28 days from 1 November

2018.

COMMENTS

The concept proposal addresses the fundamental need to replace the aquatic facilities which

are at risk of failure. The Plan, at least in the initial stage, would also address the poor

standard of the change facilities and toilets to bring them in line with modern standards and

with disability requirements, which is a priority for the purpose of bringing the centre into

compliance with disability standards. Eventually, through the progressive implementation of

the plan, the centre will have an improved and more ‘legible’ entry point that also meets

these standards and also provides improved amenities for users, families and other guests

of the facility.

The design of the new aquatic facilities has the potential to meet the needs of the community

for the next 20 to 25 years with the option of constructing a 50m pool. The addition of a

water park feature along with the freeform pool design, all on the one level, will improve

management and surveillance and has the potential to be an attractor to the centre.

Additional advantages to the concept design include the provision of expanded storage and

gymnasium and improved amenities and landscaping such as BBQ huts and sporting club

facilities for the benefit of centre users and families. Consideration has also been given to

containing operational costs to acceptable limits and in particular to ensure that the Shire

does not need to employ additional recreation staff. Additional research will also be

undertaken to determine costs associated with heating the pool in association with other

(staged) out-year proposals.

The reduced footprint of the site will allow the Shire to plan for redevelopment of part of the

former Shire Administration and allow for potential expansion and enhancement of Tourism

House, but including the provision of new programmable and community spaces. Additional

work will, nevertheless, need to be undertaken to improve the number of car parking spaces

and improve access to car parking and space is available around the centre for this purpose.

Feedback and community comment received within the 28 day period for comment will

enable Officers to confirm support for the proposal and to make any improvements, including

to relevant documentation prior to it being resubmitted for Council consideration.

Engagement will include follow-up consultation with key stakeholders, Kununurra Croc’s

Swim Club, Kununurra Taekwondo Club, Kununurra Gymnastics Clubs, Kununurra Squash

Club, Schools and other service providers, as well as operational (centre) staff. A letterbox


flyer will be sent to Kununurra and Wyndham post boxes with information detailing how

community members can provide feedback through the Shire’s “Have your Say” page on the

Shire’s website.

It is recommended that Council endorse the draft document for the purpose of seeking

comment from the community and key stakeholders for 28 days, prior to further

consideration of the proposal.

ATTACHMENTS

Attachment 1 - Kununurra Aquatic Redevelopment - Design Report


12.3.3. Annual Report 2017-18


AUTHOR: Senior Integrated Planning and Reporting Officer

RESPONSIBLE OFFICER: Director Planning and Community Development

FILE NO: CM.13.9


VOTING REQUIREMENT

Absolute Majority


That Council:

1. Accepts the 2017- 2018 Annual Report (including the 2017-18 Annual Financial

Statements [Part B] and Associated Notes) as presented.

2. Convenes the Annual General Meeting of Electors on 5 December 2018 at 5pm at

the Kununurra Council Chambers.

3. Requests that the Chief Executive Officer, pursuant to sections 5.29 and 5.55 of

the Local Government Act 1995, provide the requisite statutory local public

notice of the acceptance of the 2017 - 2018 Annual Report and the time and date

of the Annual General Meeting of Electors.

COUNCIL DECISION

Minute Number: 30/10/2018 - 115869

Moved: Cr M Dear

Seconded: Cr N Brook

That Council:

1. Accepts the 2017- 2018 Annual Report (including the 2017-18 Annual Financial

Statements [Part B] and Associated Notes) as presented.

2. Convenes the Annual General Meeting of Electors on 5 December 2018 at 5pm at

the Kununurra Council Chambers.

3. Requests that the Chief Executive Officer, pursuant to sections 5.29 and 5.55 of

the Local Government Act 1995, provide the requisite statutory local public

notice of the acceptance of the 2017 - 2018 Annual Report and the time and date

of the Annual General Meeting of Electors.

Decision:8/0


PURPOSE

For Council to accept the Annual Report for 2017-18 and to set the date for the Annual

General Electors Meeting.




BACKGROUND/ PREVIOUS CONSIDERATIONS BY COUNCIL

The development of an Annual Report is a requirement of the Local Government Act 1995

(the Act). Section 5.53(1) of the Act requires local governments to develop and publish an

annual report for each financial year with the required content of the annual report specified

in section 5.53(2) of the Act.

Section 5.54 of the Local Government Act 1995 requires that the local government accept

the Annual Report for a financial year no later than 31 December after that financial year; the

exception being that if the Auditor’s report is not available in time for the annual report for a

financial year to be accepted by 31 December after that financial year. The annual report is

to be accepted by the local government no later than 2 months after the Auditor’s report

becomes available.

A general meeting of the electors is to be held once every financial year no later than 56

days after accepting the annual report. The meeting is to be convened by the Chief

Executive Officer giving at least 14 days local public notice.

The Annual Financial Report (AFR) is prepared in accordance with Australian Accounting

Standards, the Local Government Act 1995 and the Local Government (Financial

Regulations) 1996. Management’s responsibility is to prepare the AFR in accordance with

the Standards, Act, and Regulations and to ensure that the report presents fairly the financial

position of the Shire at 30 June 2018 and the performance of the Shire for the year then

ended, free from material misstatement, whether due to fraud or error.

The role of the auditor is to provide an opinion based on their audit as to whether

management has fulfilled these obligations. The auditors also prepare a separate, more

detailed report for management identifying any issues arising from the conduct of the audit,

and recommending any corrective actions.

The Council has formally delegated its responsibility in accordance with section 5.18 of the

Local Government Act 1995 to meet annually with the auditors as required by section

7.12A(2) of the Local Government Act 1995. The Terms of Reference adopted by the

Council also incorporate the responsibility for the Committee to review and examine the

auditor’s report and any management letters arising from the conduct of the audit and

recommending the adoption of the AFR to the Council.



Local Government Act 1995

5.27. Electors’ general meetings

1) A general meeting of the electors of a district is to be held once every financial

year.

2) A general meeting is to be held on a day selected by the local government but

not more than 56 days after the local government accepts the annual report for

the previous financial year.

3) The matters to be discussed at general electors’ meetings are to be those

prescribed

5.53. Annual reports

1) The local government is to prepare an annual report for each financial year.

2) The annual report is to contain —

a) a report from the mayor or president;

b) a report from the CEO;

e) an overview of the plan for the future of the district made in accordance

with section 5.56, including major initiatives that are proposed to

commence or to continue in the next financial year;

f) the financial report for the financial year;

g) Such information as may be prescribed in relation to the payments made

to employees;

h) the auditor’s report for the financial year;

5.54. Acceptance of annual reports

1) Subject to subsection (2), the annual report for a financial year is to be accepted*

by the local government no later than 31 December after that financial year.


2) If the auditor’s report is not available in time for the annual report for a financial

year to be accepted by 31 December after that financial year, the annual report is

to be accepted by the local government no later than 2 months after the auditor’s

report becomes available.

5.55. Notice of annual reports

The CEO is to give local public notice of the availability of the annual report as soon

as practicable after the report has been accepted by the local government.

6.4. Financial report

1) A local government is to prepare an annual financial report for the preceding

financial year and such other financial reports as are prescribed.

2) The financial report is to —

a) be prepared and presented in the manner and form prescribed; and


b) contain the prescribed information.

3) By 30 September following each financial year or such extended time as the

Minister allows, a local government is to submit to its auditor —

a) the accounts of the local government, balanced up to the last day of the

preceding financial year; and

b) the annual financial report of the local government for the preceding

financial year.

7.9. Audit to be conducted

1) An auditor is required to examine the accounts and annual financial report

submitted for audit and, by the 31 December next following the financial year to

which the accounts and report relate or such later date as may be prescribed, to

prepare a report thereon and forward a copy of that report to —

a) the mayor or president;

b) the CEO of the local government; and

c) the Minister.

2) Without limiting the generality of subsection (1), where the auditor considers that

—

a) there is any error or deficiency in an account or financial report submitted

for Audit;

b) any money paid from, or due to, any fund or account of a local

government has been or may have been misapplied to purposes not

authorised by law; or

c) there is a matter arising from the examination of the accounts and annual

financial report that needs to be addressed by the local government,

details of that error, deficiency, misapplication or matter, are to be

included in the report by the auditor.

3) The Minister may direct the auditor of a local government to examine a particular

aspect of the accounts and the annual financial report submitted for audit by that

local government and to —

a) prepare a report thereon; and

b) forward a copy of that report to the Minister, and that direction has effect

according to its terms.

4) If the Minister considers it appropriate to do so, the Minister is to forward a copy

of the report referred to in subsection (3), or part of that report, to the CEO of the

local government to be dealt with under section 7.12A.

7.12A. Duties of local government with respect to audits

1) A local government is to do everything in its power to —

a) assist the auditor of the local government to conduct an audit and carry

out his or

b) her other duties under this Act in respect of the local government; and

c) ensure that audits are conducted successfully and expeditiously.


2) Without limiting the generality of subsection (1), a local government is to meet

with

a) the auditor of the local government at least once in every year.

b) A local government is to examine the report of the auditor prepared under

section

Local Government (Audit) Regulations 1996

10. Report by auditor

1) An auditor’s report is to be forwarded to the persons specified in section 7.9(1)

2) within 30 days of completing the audit.

a) The report is to give the auditor’s opinion on —

b) the financial position of the local government; and

c) the results of the operations of the local government.

3) The report is to include —

a) any material matters that in the opinion of the auditor indicate significant

adverse trends in the financial position or the financial management

practices of the local government; and

b) any matters indicating non-compliance with Part 6 of the Act, the Local

Government (Financial Management) Regulations 1996 or applicable

financial controls in any other written law; and

c) details of whether information and explanations were obtained by the

auditor; and

d) a report on the conduct of the audit; and

e) the opinion of the auditor as to whether or not the following financial ratios

included in the annual financial report are supported by verifiable

information and reasonable assumptions —

i) the asset consumption ratio; and

ii) the asset renewal funding ratio.

4) In subregulation (3)(e) — asset consumption ratio has the meaning given in the

local government (Financial Management) Regulations 1996 regulation 50(2);

asset renewal funding ratio has the meaning given in the local government

(Financial Management) Regulations 1996 regulation 50(2).

5) Where it is considered by the auditor to be appropriate to do so, the auditor is to

prepare a management report to accompany the auditor’s report and to forward a

copy of the management report to the persons specified in section 7.9(1) with the

auditor’s report

POLICY IMPLICATIONS

CP/FIN-3200 Strategic Rating and CP/FIN-3201 Significant Accounting Policies

The Audited Annual Financial Report for year ended 30 June 2018 has been prepared in

accordance with Council Policies CP/FIN-3200 Strategic Rating and CP/FIN-3201 Significant

Accounting Policies.


CP COM-3100 - Community Engagement Policy

The Community Engagement Policy aims to improve the outcomes and benefits of effective

community engagement including:

● Increased community awareness about services, planning and program delivery;

● Increased awareness of the needs, priorities and diversity of the community, which in

turn ensures that service provision and planning functions are aligned appropriately;

● Council and the community working together to address local issues where

appropriate


The Annual Report provides a comprehensive account of the Shire’s activities throughout

2017/18 (Attachment 1). It outlines the progress made towards the strategic objectives as

set out in the Shire’s Strategic Community Plan 2017-2027, and details achievements

against the 2017/18 commitments made in the Corporate Business plan 2017/18 to 2020/21.

The Annual Report also includes commentary on the financial performance of the Shire for

the 2017-18 financial year.

The finalisation of the 2017-18 Annual Financial Statements has resulted in an actual net

result of $9.84 million as opposed to a budgeted net result of $5.05 million. While the Shire

achieved an Operating deficit ($1.85 million), its performance against the budgeted

Operating deficit ($6.42 million) was good. The Shire expended $14.54 million on its capital

works program during the year and so met its asset management requirements for renewals

and replacements. The Shires cash position is once again sound. The Rate Setting

Statement indicates that there was surplus cash generated of $898k for the financial year.

This cash is required to be used substantially for Reserves and funding carry forward

projects. The Annual Financial Statements also indicate that the Reserves of the Shire are

fully backed by cash.




Goal 4.2: Good decision making through engagement with the community

Strategy 4.2.1: Engage and communicate with all sections of the community to

better understand needs and priorities

Strategy 4.2.2: Ensure community input informs planning and decision making

Strategy 4.2.3: Ensure community awareness of issues, activities and decisions

affecting the Shire


services

Strategy 4.3.1: Be adaptive, responsive with a strong customer focus



sustainability


Corporate Business Plan 2018/19

CBP Action: #53 - Ensure compliance with the Integrated Planning and Reporting

Framework

CBP Action: #57 - Ensure effective communication with the community including regular

good news stories about the Shire

RISK IMPLICATIONS

Risk: Strategic - failure to comply with legislative requirements leading to damage of

reputation and/or financial loss

Control: Undertake independent Annual Financial Audit


Engagement will take place in accordance with the Shire’s Community Engagement

Guidelines and will include statutory local public notice pursuant to sections 5.29 and 5.55 of

the Local Government Act 1995:

- Informing the community that the Annual Report has been accepted and is

available.

- Making the Annual Report accessible for viewing online and in the Shire Offices

and other Shire facilities.

- Informing the community of the location, date and time of the Annual General

Electors Meeting.

At the Annual General Electors Meeting the community will be able to ask public questions

and registered electors will be able to put forward elector motions on which the electors can

vote and which will be subsequently considered by Council.

COMMENTS

The Annual report is derived from information provided by responsible officers and through

the Integrated Planning and Reporting Process. The report is designed to present

information to the community in an easy to read format. The attached Annual Report

provides a summary of the financial year 2017/18 and meets the requirements for

preparation of an annual report as detailed in Section 5.53 of the Local Government Act

1995.

It is recommended that Council accepts the 2017- 2018 Annual Report and agrees to a date

for the Annual General Electors Meeting to ensure sufficient time to prepare the required

statutory local public notice.

ATTACHMENTS

Attachment 1 - Annual Report 2017-18


12.4. CORPORATE SERVICES 12.4.1. Interim Monthly Financial Report September 2018


AUTHOR: Coordinator Financial Management

RESPONSIBLE OFFICER: Vernon Lawrence, Director Corporate Services

FILE NO: FM.09.5


VOTING REQUIREMENT

Simple Majority


That Council receives the interim monthly financial report as at 30 September 2018.

COUNCIL DECISION

Minute Number: 30/10/2018 - 115870

Moved: Cr T Chafer

Seconded: Cr M Dear

That Council receives the interim monthly financial report as at 30 September 2018.

Decision:8/0

PURPOSE

For Council to receive the interim monthly financial report for the period ended 30 September 2018. NATURE OF COUNCIL’S ROLE IN THE MATTER



Council is to prepare monthly financial reports as required by the Local Government

(Financial Management Regulations) 1996.

At the 26 June 2018 Ordinary Council Meeting, the Council resolved the following:


COUNCIL DECISION

Minute Number: 26/06/2018-115800

Moved: Cr M McKittrick

Seconded: Cr M Dear

That Council, in accordance with Regulation 34(5) of the Local Government (Financial

Management) Regulations 1996, approves the materiality level for monthly reporting

to be set at +/- 10% and +/- $20,000 at account level and +/- 10% and +/- $100,000 at

financial statement level.

Carried 9/0

These materiality levels have been applied in the preparation of this report.


Local Government Act 1995, Section 6.4.

Local Government (Financial Management) Regulations 1996, Regulation 34.

POLICY IMPLICATIONS

CP FIN-3201 Significant Accounting Policies has been applied in the preparation of the

report.


There are no additional costs associated with the preparation of this report. Monthly

financial reporting is a primary financial management and control process. This report

provides the Council with the ability to oversee the Shire’s financial performance

against budgeted targets.






sustainability

RISK IMPLICATIONS

Strategic Risk: Failure to comply with legislative requirements leading to damage of

reputation and/or financial loss.



The Shire of Wyndham East Kimberley’s CP/GOV-3100 Community Engagement Policy

has been considered in relation to this item.


COMMENTS

Comments in relation to budget to actual variances are included as notes in the Financial Report attached.

ATTACHMENTS

Attachment 1 Interim Monthly Financial Report for the period to 30 September 2018.


12.4.2. List of Accounts Paid From Municipal Fund and Trust Fund


AUTHOR: Creditors Officer


FILE NO: FM.09.20


VOTING REQUIREMENT

Simple Majority


That Council receives the listing of accounts paid from the Municipal and Trust funds,

being:

Municipal EFT 132977 - 132976 (06 Sept 18 - 26 Sept 18) $ 3,434,139.05

Municipal cheques 51819 - 51828 (06 Sept 18 - 20 Sept 18) $ 55,225.04

Trust EFT 501662 - 501676 (04 Sept 18 - 28 Sept 18) $ 9,391.05

Payroll (12 Sept 18 - 26 Sept 18) $ 476,901.40

Direct bank debits (03 Sept 18 - 28 Sept 18) $ 116,939.99

TOTAL $ 4,092,596.53

COUNCIL DECISION

Minute Number: 30/10/2018 - 115871

Moved: Cr G Lodge

Seconded: Cr D Pearce

That Council receives the listing of accounts paid from the Municipal and Trust funds,

being:

Municipal EFT 132977 - 132976 (06 Sept 18 - 26 Sept 18) $ 3,434,139.05

Municipal cheques 51819 - 51828 (06 Sept 18 - 20 Sept 18) $ 55,225.04

Trust EFT 501662 - 501676 (04 Sept 18 - 28 Sept 18) $ 9,391.05


Payroll (12 Sept 18 - 26 Sept 18) $ 476,901.40

Direct bank debits (03 Sept 18 - 28 Sept 18) $ 116,939.99

TOTAL $ 4,092,596.53

Decision:8/0

PURPOSE

To present the listing of accounts paid from the Municipal Fund and Trust Fund in

accordance with the requirements of the Local Government (Financial Management)

Regulations 1996.


Regulator - enforce state legislation and local laws.


In accordance with Councils Delegations Register 2018/19 which was adopted by the

Council on the 28 August 2018, the Council has delegated to the CEO the exercise of its

power under regulations 12 and 13 of the Local Government (Financial Management)

Regulations 1996 to make payments from Municipal Fund and Trust Fund.


Local Government Act 1995 – Section 5.42

Local Government (Financial Management) Regulations 1996 – Regulations 5, 11, 12,

12(1)(a) and 13.

POLICY IMPLICATIONS

Sub-delegation 12 “Payments from the Municipal Fund and Trust Fund” applies subject to

compliance with Council Policy CP/FIN-3204 Purchasing.


There are no financial implications arising out of the preparation of this report. The financial

implications arising from the payments made from the Municipal and Trust funds have been

provided for in the 2018/19 Adopted Budget and any subsequent amendments thereto. This

report provides for the ongoing management of the Shire’s funds by providing the Council

with sufficient information to monitor and review payments made.



Strategic Community Plan 2017-2027.



Strategy 4: Apply best practice financial management to ensure long term

sustainability.

RISK IMPLICATIONS

Risk: Failure to comply with legislative requirements leading to damage of reputation and/or

financial loss.

Controls: Annual Financial Audit. Annual Compliance Return to Department of Local

Government, Sport and Cultural Industries.



COMMENTS

In accordance with statutory requirements, each payment from the Municipal Fund or the

Trust Fund is to be noted on a list compiled each month showing: the payee’s name, amount

of payment, date of payment and sufficient information to identify the transaction. The list is

to be presented to the Council at the next ordinary meeting of the Council following the

preparation of the list and is to be recorded in the minutes of the meeting at which it is

presented.

ATTACHMENTS - Item 12.4.2

Attachment 1 - List of Accounts Paid September 2018


12.4.3. Changing Method of Valuation of Land

DATE: 30 October, 2018

AUTHOR: Director Corporate Services


FILE NO: FM.11.68


VOTING REQUIREMENT

Simple Majority


That Council suspends the process to transition Unimproved Value (UV) rated

properties not used for rural purposes to Gross Rental Values (GRV) rated properties

until the current review of the Local Government Act, 1995 has been completed.

COUNCIL DECISION

Minute Number: 30/10/2018 - 115872

Moved: Cr J Farquhar

Seconded: Cr A Petherick

That Council suspends the process to transition Unimproved Value (UV) rated

properties not used for rural purposes to Gross Rental Values (GRV) rated properties

until the current review of the Local Government Act, 1995 has been completed.

Decision:8/0

PURPOSE

To request that Council resolve to suspend the process whereby properties in certain rate

categories from Unimproved Valuations (UV) are transitioned to Gross Rental Valuations

(GRV) until the review of the Local Government Act currently in progress has been

completed.


Leader - plan and provide direction through policy and practices.

Regulator - enforce state legislation and local laws.



COUNCIL DECISION

Minute Number: 28/08/2018 - 115846

Moved: Cr T Chafer

Seconded: Cr M McKittrick

That Council Authorises the Chief Executive Officer to undertake a review of

Unimproved Value (UV) rated properties and commence the process to transition

properties not used for rural purposes to Gross Rental Values (GRV) in accordance

with section 6.28 of the Local Government Act 1995.

Decision: 7/0

Council resolved at the 28 August 2018 Ordinary Council Meeting to undertake the review of

UV rated properties to ensure that they complied with the section 6.28 of the Local

Government Act, 1995 in terms of which the Minister for Local Government is responsible for

determining the method of valuation of land to be used by a local government as the basis

for a rate. In determining the method of valuation, the Minister is to have regard to the

general principle that the basis for a rate on any land is to be:

● Where the land is used predominantly for rural purposes, the Unimproved (UV) value

of the land; and

● Where the land is used predominantly for non-rural purposes, the Gross Rental

Value (GRV) of the land.

It is the local government’s responsibility to review the predominant use of land and apply to

the Minister to have the method of valuation changed where appropriate. In 2014 Council’s

Strategic Rating policy was reviewed and the current policy includes Council’s intention that

properties in the UV Rural Residential and UV Commercial/ Industrial rating categories will

be transitioned from UV to GRV values as the primary purpose is non rural. 237 properties

have been identified in these rating categories as requiring transition. In addition 17

properties in the UV Rural Agriculture 2 rating category have been identified as having a

residential land use. These properties are due to be re-zoned in Local Planning Scheme No.

9 to Rural Small holding.

The UV to GRV transition process was scheduled to be undertaken in 2017 with the

implementation of changes to valuations to take effect from 1 July 2018, however due to the

general GRV revaluation taking place in 2018 the process was postponed until the 2018/19

financial year to avoid any potential confusion for ratepayers of two separate unrelated

revaluations occurring in the same year.


Local government has a role in ensuring rating principles of the Local Government Act 1995

(the Act) are correctly applied so that land used for rural purposes is rated on its Unimproved

Value (UV), and similarly land used for non-rural purposes is rated on its Gross Rental Value


(GRV). Section 6.28 of the Act differentiates between the two methods of valuation available

dependent upon the predominant use of the land.


6.28. Basis of rates

(1) The Minister is to —

(a) determine the method of valuation of land to be used by a local

government as the basis for a rate; and

(b) publish a notice of the determination in the Government Gazette.

(2) In determining the method of valuation of land to be used by a local

government the Minister is to have regard to the general principle that the

basis for a rate on any land is to be —

(a) where the land is used predominantly for rural purposes, the

unimproved value of the land; and

(b) where the land is used predominantly for non‑ rural purposes, the

gross rental value of the land.

(3) The unimproved value or gross rental value, as the case requires, of rateable

land in the district of a local government is to be recorded in the rate record of

that local government.

(4) Subject to subsection (5), for the purposes of this section the valuation to be

used by a local government is to be the valuation in force under the Valuation

of Land Act 1978 as at 1 July in each financial year.

(5) Where during a financial year —

(a) an interim valuation is made under the Valuation of Land Act 1978; or

(b) a valuation comes into force under the Valuation of Land Act 1978 as

a result of the amendment of a valuation under that Act; or

(c) a new valuation is made under the Valuation of Land Act 1978 in the

course of completing a general valuation that has previously come into

force, the interim valuation, amended valuation or new valuation, as

the case requires, is to be used by a local government for the

purposes of this section.

POLICY IMPLICATIONS

Council Policy CP FIN-3200 Strategic Rating outlines the Council’s principles and

methodology when exercising the Council’s discretionary powers to determine the level and

structure of rates levied under the Local Government Act 1995.

The above policy incorporates the Objects and Reasons for Differential Rates including the

following relevant to the UV rates categories for which the land use is to be reviewed:

UV – RURAL RESIDENTIAL


A differential rate is applied to UV valued land located outside the gazetted town site that is

zoned Rural Living, Rural Smallholding and Special Rural which is used primarily for or

capable of being used primarily for rural residential purposes.

Rural residential has the same meaning as the objectives of TPS7 and TPS6 for these

Zones, being:-

a. Providing for those people wishing to reside on a small rural holding (as in the

case of a Rural Living Zone in TPS7); or

b. Providing for those people wishing to reside on rural lifestyle lots (as in the case

of the Rural Smallholding Zone in TPS7); or

c. Providing for those people wishing to reside on a small rural holding (as in the

case of the Special Rural Zone in TPS6).

It should be noted that this is intended as a transitionary rating differential category while the

Shire work through a process to have these properties provided with a gross rental value

instead of an unimproved value given the primary purpose is residential.

The average rates payable for each property will be similar to the average rates payable for

GRV Residential properties, recognising the transition to a GRV value.

UV – COMMERCIAL/INDUSTRIAL

A differential rate is applied to UV valued land located outside the gazetted town site that is

used primarily for, or capable of being used primarily for commercial, industrial and/or

tourism purposes.

This sector generates high traffic volumes and should therefore contribute a greater share of

the costs associated with road construction, maintenance and refurbishment including road

drainage systems and other infrastructure required, along with other costs associated with

marketing and economic development.

It should be noted that this is intended as a transitionary rating differential category while the

Shire work through a process to have these properties provided with a gross rental value

instead of an unimproved value given the primary purpose is commercial, industrial and/or

tourism and the land owners should be contributing more equitably to these costs.


$40,000 has been allocated in the 2018/19 budget for the cost of the revaluation. The

suspension of the process will not have any adverse financial implications for the Shire.






Strategy 4.4.3: Adequately plan for and fund asset maintenance and renewal

to deliver planned services


sustainability

RISK IMPLICATIONS


financial loss.

Control: Review policies and procedures in accordance with review schedule.


Engagement has taken place in accordance with the Shire’s Community Engagement Guidelines and will include the following:

● Letters have been sent to affected landowners requesting a declaration of land use to be completed and returned to the Shire within 21 days. Replies have been received by the Shire together with other correspondence which form the basis for this report.

COMMENTS

Changing the method of valuation from UV to GRV for properties not used for rural purposes

is required so that all properties in the Shire are valued in accordance with the requirements

of section 6.28 of the Local Government Act 1995. The Shire commenced the process and

has achieved the following milestones:

August 2018 - Council resolved to authorise the Chief Executive Officer to carry out a

review of the land use for UV rated properties.

August 2018 - Indicative Values have been obtained from the Valuer General’s Office for

specified properties in the relevant UV rate categories.

September 2018 - Letters have been sent to affected landowners requesting a declaration

of land use to be completed and returned to the Shire within 21 days. Numerous responses

have been received from affected landowners.

Correspondence received from those affected landowners indicated varying levels of opinion

on how the term “rural purpose” is to be defined and applied. While “rural purpose” is defined

by the Department of Local Government Sports and Cultural Industries (DLGSC) to mean “a

purpose pertaining to agriculture and agriculture is defined to mean the use or cultivation of

land for any purpose of husbandry or horticulture, including the raising of livestock and the

growing of crops”, the Local Government Act, 1995 does not define “rural purpose”. As the

Local Government Act, 1995 does not provide a precise definition of “rural purpose“ it is

open to interpretation. Correspondence with affected landowners has revealed a wide range

of interpretations.


Shire Officers have obtained legal advice on how the term is to be interpreted which

substantially agrees with the Departments interpretation and what Shire Officers consider to

be the correct interpretation.

However, upon reflection Shire Officers now recommend to Council that the process be

suspended for the following reasons:

1. There is currently a review of the Local Government Act, 1995 underway by the

Department of Local Government Sports and Cultural Industries. As the definition of

“rural purpose” has created uncertainty for the Shire and its landowners, it has also

done so for other Councils in the State. The review of the Local Government Act,

1995 may well address this issue and provide certainty by defining what “rural

purpose” is for determining method of valuation;

2. There is also a potential review of the valuation methodology by the Valuer General’s

Office as part of the Local Government Act, 1995 review;

3. As this process was undertaken only as a compliance issue, there is no adverse

finance or budget implication associated with suspending the process; and

4. The suspension of the process until certainty is provided on what “rural purpose” is

will eliminate the potential of a future revisit of the process should the review of the

Local Government Act,1995 result in a course of action contrary to what the Shire

may implement should the process continue.


12.4.4. Budget Adjustments 2018/19


AUTHOR: Director Corporate Services


FILE NO: FM 05.15


VOTING REQUIREMENT

Absolute Majority


That Council -

1. Adopt the changes to the Municipal Fund Budget 2018/19 as detailed in

Attachment 3;

2. Adopt the recommendation to transfer an additional amount of $76,373 to the

Drainage Reserve;

COUNCIL DECISION

Minute Number: 30/10/2018 - 115873

Moved: Cr T Chafer

Seconded: Cr M Dear

That Council -

1. Adopt the changes to the Municipal Fund Budget 2018/19 as detailed in

Attachment 3;

2. Adopt the recommendation to transfer an additional amount of $76,373 to the

Drainage Reserve;

Decision:8/0

PURPOSE

The purpose of this report is to consider changes to the Municipal Fund Budget for the

2018/19 financial year arising from changes to the cash position estimated at the time of the

preparation of the budget and the actual cash position presented to the Shire’s auditors in

the draft Annual Financial Statements for the year ended 30 June 2018.









The 2018/19 Budget was considered by Council at the Ordinary Council Meeting on 26 June

2018. The relevant decision related to the Officer’s Recommendation 14 of the report.

COUNCIL DECISION

Minute Number: 26/06/2018-115803

Moved: Cr T Chafer

Seconded: Cr A Petherick

Pursuant to the provisions of section 6.2 of the Local Government Act 1995 and

Part 3 of the Local Government (Financial Management) Regulations 1996, that

Council adopt the Municipal Fund Budget as contained in Attachment 1 of this

agenda, for the Shire of Wyndham East Kimberley for the 2018/19 financial year

which includes the following:

1. Statement of Comprehensive Income by Nature and Type

2. Statement of Comprehensive Income by Program

3. Statement of Cash Flows;

4. Rate Setting Statement showing a net amount required to be raised

from rates of $10,420,934;

5. Notes to and forming Part of the Budget;

6. Fees and Charges Schedule.

Carried 9/0



Part 2 – Constitution of local government

Division 2 – Local governments and councils of local government

2.7. Role of council

(1) The council —

(a) governs the local government’s affairs; and

(b) is responsible for the performance of the local government’s functions.

(2) Without limiting subsection (1), the council is to —

(a) oversee the allocation of the local government’s finances and resources; and

(b) determine the local government’s policies.



Part 6, Division 2 – Annual Budget

6.2. Local government to prepare annual budget

(1) During the period from 1 June in a financial year to 31 August in the next financial year,

or such extended time as the Minister allows, each local government is to prepare and

adopt*, in the form and manner prescribed, a budget for its municipal fund for the financial

year ending on the 30 June next following that 31 August.



Part 6 - Financial management

Division 4 - General financial provisions Division

6.11. Reserve accounts

(1) Subject to subsection (5), where a local government wishes to set aside money for use

for a purpose in a future financial year, it is to establish and maintain a reserve account for

each such purpose.

(2) Subject to subsection

(3), before a local government —

(a) changes* the purpose of a reserve account; or

(b) uses* the money in a reserve account for another purpose, it must give one month’s local

public notice of the proposed change of purpose or proposed use. * Absolute majority

required. (3) A local government is not required to give local public notice under subsection

(2) —

(a) where the change of purpose or of proposed use of money has been disclosed in the

annual budget of the local government for that financial year; or

(b) in such other circumstances as are prescribed.

(4) A change of purpose of, or use of money in, a reserve account is to be disclosed in the

annual financial report for the year in which the change occurs.

(5) Regulations may prescribe the circumstances and the manner in which a local

government may set aside money for use for a purpose in a future financial year without the

requirement to establish and maintain a reserve account.

6.2. Local government to prepare annual budget

(1) During the period from 1 June in a financial year to 31 August in the next financial year,

or such extended time as the Minister allows, each local government is to prepare and

adopt*, in the form and manner prescribed, a budget for its municipal fund for the financial

year ending on the 30 June next following that 31 August.



(2) In the preparation of the annual budget the local government is to have regard to the

contents of the plan for the future of the district made in accordance with section 5.56 and to

prepare a detailed estimate for the current year of —

(a) the expenditure by the local government; and

(b) the revenue and income, independent of general rates, of the local government;

and

(c) the amount required to make up the deficiency, if any, shown by comparing the

estimated expenditure with the estimated revenue and income.

(3) For the purposes of subsections (2)(a) and (b) all expenditure, revenue and income of

the local government is to be taken into account unless otherwise prescribed.

(4) The annual budget is to incorporate —

(a) particulars of the estimated expenditure proposed to be incurred by the local

government; and

(b) detailed information relating to the rates and service charges which will apply to

land within the district including —

(i) the amount it is estimated will be yielded by the general rate; and

(ii) the rate of interest (if any) to be charged by the local government on

unpaid rates and service charges; and

(c) the fees and charges proposed to be imposed by the local government; and

(d) the particulars of borrowings and other financial accommodation proposed to be

entered into by the local government; and

(e) details of the amounts to be set aside in, or used from, reserve accounts and of

the purpose for which they are to be set aside or used; and

(f) particulars of proposed land transactions and trading undertakings (as those terms

are defined in and for the purpose of section 3.59) of the local government; and

(g) such other matters as are prescribed.

(5) Regulations may provide for —

(a) the form of the annual budget; and

(b) the contents of the annual budget; and

(c) the information to be contained in or to accompany the annual budget.

Local Government (Financial Management) Regulations 1996

Part 2 – General financial management

5. CEO’s duties as to financial management

(1) Efficient systems and procedures are to be established by the CEO of a local

government —

(g) to assist in the preparation of budgets, budget reviews, accounts and reports

required by the Act or these regulations.

(2) The CEO is to —

(b) assist the council to undertake reviews of fees and charges regularly (and not

less than once in every financial year).


6.8. Expenditure from municipal fund not included in annual budget

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

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

b) is authorised in advance by resolution*; c) is authorised in advance by the mayor or president in an emergency.


(1a) In subsection (1) — additional purpose means a purpose for which no expenditure estimate is included in the local government’s annual budget. 2) Where expenditure has been incurred by a local government —

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

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

c) [Section 6.8 amended by No. 1 of 1998 s. 19.] Local Government (Financial Management) Regulations 1996 32. Amounts which may

be excluded when calculating budget deficiency (Act s. 6.2(3))

A local government may exclude from the calculation of the budget deficiency —

a) money borrowed or to be borrowed, to the extent that it is proposed in the

annual budget to remain unspent at the end of the financial year; and

b) reserves, to the extent that they are proposed in the annual budget to remain

unspent at the end of the financial year; and

c) in relation to a land transaction or trading undertaking, assets and liabilities, to

the extent to which they are proposed in the annual budget to remain

restricted to the purposes of the land transaction or trading undertaking at the

end of the financial year; and

d) any proposed amounts of depreciation of non-current assets; and

e) assets from grants or gifts or non-cash revenue or expenditure; and

f) current liabilities which, by their nature, are restricted, to the extent that they

are proposed in the annual budget to remain uncleared at the end of the

financial year; and

g) any other current assets which, by their nature, are restricted, to the extent

that they are proposed in the annual budget to remain unused at the end of

the financial year.

POLICY IMPLICATIONS

Nil


The detailed financial implications have been set out in the Attachments. The net impact on

the operating position of the Shire is that there is additional available cash generation of

$129,373 which the officers recommend be allocated to the 2018/19 Operating Budget in the

amount of $53,000 and a transfer to the Drainage Reserve of $76,373.

With respect to the Capital Works portion of the budget all savings and underspend from the

forecast position have been allocated to the relevant reserves. An additional $3,404,758 of


capital funding has been transferred into reserves. Allocations will be made from the

reserves into the 2018/19 capital works program where projects have been carried over from

the 2017/18 year.


Strategic Community Plan 2017 to 2027

Focus Area: 4: Civic Leadership


Strategy 4.4.3: Adequately plan for and fund asset maintenance and renewal

to deliver planned services


sustainability

RISK IMPLICATIONS


financial loss.

Control: Annual financial audit.

Risk: Inability to deliver levels of service expected by the community.

Control: Current budget and service levels.

Risk: Failure to undertake proactive maintenance leading to damaged infrastructure

Control: Proactive maintenance included in Depot Maintenance Works program.



COMMENTS

At the time of the preparation of the 2018/19 Budget estimates of both capital and operating

expenditure and revenue had to be made as actual data was not available at that time. It

was the intention that once the actual data was available then the budget would be revisited

to adjust budget allocations for any change in circumstances due to any material variance

between actual data and estimated data. This exercise is not a review of the budget as

contemplated by Section 33A. Review of Budget - Local Government (Financial

Management) Regulations 1996, but an adjustment to the budget based on information we

did not have at the time of the budget preparation.

In the preparation of the 2018/19 Budget, the Rate Setting Statement detailed the estimated

revenue and expenditure of both operating and capital nature, the financing activities and

the movement in the Reserves for the 2017/18 financial year. These estimates gave a

forecast opening cash position of $1,622,635 for the 2018/19 financial year. The actual

position as presented to the auditors in the draft Annual Financial Statements for 30 June

2018 differed to the estimated position in each of these categories, yielding an opening cash


position of $2,834,174 which is greater by $724,360 (Refer Appendix 1). This amount is a

composite of operational savings, underspending and savings on the capital works program

and transfers to reserves for both capital and operational items. This is explained more

comprehensively below.

The amount attributable to operating activities and rates was greater than the forecast by

$829,782. Of this amount $700,409 has been transferred into reserves as part of the Shires

normal year end reserve funding processes. Expenditure that was estimated to be spent

before the 2017/18 financial year end but was not and needs to be carried forward to

2018/19 amounts to $53,000. These are amounts for two projects carried forward from the

2017/18 financial year and one item that a budget allocation was approved by Council in

respect of the Kununurra Visitor Centre. No other changes to the Operational Budget are

considered necessary at this stage. This leaves an unallocated balance of $76,373. To be

consistent with the prior year it is the officers recommendation that this amount be

transferred into the Drainage Reserve.

The capital works program in the rate setting statement shows that officers forecast a net

spend of $5,056,396 against an actual net spend of $2,505,374 (refer Attachment 1). The

“savings” of $2,551,022 is all quarantined in the reserves of the Shire in line with the

financial strategy of the Shire. These are primarily allocated to the Capital Works Reserve,

the Unspent Grants Reserve and the Unspent Loans Reserve.

The third factor to consider in the analysis is the difference in the movement on reserves.

The actual movement on reserves is a net transfer to reserves of $169,472 against a

forecast of a net transfer from reserves of $1,999,795 (refer Attachment 1). The net

difference is $2,169,267 that has been transferred into reserves. This analysed as follows:

Difference between actual and forecast on reserves $ 2,169,267

Adjustment for Financial Assistance Grant $ 1,935,900

Transfer to capital related reserves $(3,404,758)

Transfer to Operating related reserves $ ( 700,409)

The Shire’s auditors have required the Shire to no longer place the advance receipt of the

Commonwealth Financial Assistance Grant in a reserve for unspent grants. This accounts

for $1,935,900 of the difference between the actual data and the forecast data. As stated

above $700,409 is in respect of operational items that are required to be transferred into

reserves. The amount relating to the Capital Works program is $3,404,758. Of this amount

$1,919,235 relates to unspent loans and grants and $1,288,268 of Municipal funds allocated

to capital projects that have been quarantined in the Capital Works Reserve. The remaining

$197,252 comprises of amounts for the Airport General Reserve, the Plant and Equipment

Reserve and the Parks Reserve.

Changes to the Capital Works program need to be made to reflect the uncompleted work

that has been carried over from the 2017/18 financial year as well as correcting any changes

in estimates that have arisen since the budget was adopted. Annexure 2 analyses the

Capital Works Program and sets out the changes that need to be made to the projects so

that the works can be properly funded for the current year. The additional funds that are


required to complete the work is $3,060,621. This is fully funded from the additional amounts

that have been put into the reserves.

ATTACHMENTS

Attachment 1 - Rate Setting Statement - Actual vs Forecast

Attachment 2 - Capital Works Program - Carry Over Adjustments

Attachment 3 - Amended Statutory Budget Statements 2018/19


12.5. INFRASTRUCTURE 13. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN 14. QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN 15. URGENT BUSINESS APPROVED BY THE PERSON PRESIDING OR BY

DECISION

16. MATTERS BEHIND CLOSED DOORS

COUNCIL DECISION

Minute Number: 30/10/2018 – 115874

Moved: Cr D Pearce


That Council move in-camera with officers to leave (CEO and Minute Taker to remain)

at 6.25pm.

Decision:8/0


16.1. Acting Chief Executive Officer - January/February 2019 Carl Askew, CEO, declares an impartiality interest as the item is regarding a person acting in

his role.


AUTHOR: Carl Askew, Chief Executive Officer


FILE NO: PL.1907

DISCLOSURE OF INTERESTS: The CEO declares an impartiality interest as

the item is regarding a person acting in his role.

COUNCIL DECISION

Minute Number: 30/10/2018 - 115875

Moved: Cr T Chafer

Seconded: Cr N Brook

That Council appoint the Director Corporate Services, Mr Vernon Lawrence, as the

Acting Chief Executive Officer for the period 21 January 2019 to 22 February 2019

(inclusive).

Decision:8/0

This item is to be considered behind closed doors as per the Local Government Act 1995:

5.23 (2) (a) and (b)

5.23. Meetings generally open to public

(2) If a meeting is being held by a council or by a committee referred to in subsection (1)(b), the council or committee may close to members of the public the meeting, or part of the meeting, if the meeting or the part of the meeting deals with any of the following —

(a) a matter affecting an employee or employees; and (b) the personal affairs of any person; and

(c) a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting; and

(d) legal advice obtained, or which may be obtained, by the local government and which relates to a matter to be discussed at the meeting; and

(e) a matter that if disclosed, would reveal — (i) a trade secret; or (ii) information that has a commercial value to a person; or

(iii) information about the business, professional, commercial or financial affairs of a person, where the trade secret or information is held by, or is about, a person other than the local government; and

(f) a matter that if disclosed, could be reasonably expected to —


(i) impair the effectiveness of any lawful method or procedure for preventing, detecting, investigating or dealing with any contravention or possible contravention of the law; or

(ii) endanger the security of the local government’s property; or (iii) prejudice the maintenance or enforcement of a lawful measure for protecting public safety; and

(g) information which is the subject of a direction given under section 23(1a) of the Parliamentary Commissioner Act 1971; and

(h) such other matters as may be prescribed. (3) A decision to close a meeting or part of a meeting and the reason for the decision are to be recorded in the minutes of the meeting.

VOTING REQUIREMENT

Simple Majority

PURPOSE

For Council to consider the appointment of an Acting Chief Executive Officer from the 21

January 2019 to 22 February 2019 (inclusive).


16.2. 2018/19 Plant Management Program - Road Grader


AUTHOR: Senior Procurement and Contracts Officer



COUNCIL DECISION

Minute Number: 30/10/2018 - 115876

Moved: Cr J Farquhar

Seconded: Cr M Dear

That Council:

1. Accepts the trade quotation submitted by Hitachi Construction Machinery

(Australia) Pty Ltd, for RFQ09-18/19 Heavy Plant Replacement - Grader, as the

most advantageous quotation to form a Contract, for the fixed lump sum price of

$274,500.00 ($268,000.00 plus optional extras to the value of $6,500.00) excluding

GST.

2. Delegates the formation of the Contract to the Chief Executive Officer, subject to

any variations (of a minor nature) prior to entry to Contract.

3. Should a Contract not be formed within 30 business days with Hitachi

Construction Machinery (Australia) Pty Ltd, that the Chief Executive Officer may

form a Contract with the next most advantageous Tenderer.

Decision:8/0

This item is to be considered behind closed doors as per the Local Government Act 1995

5.23 (2) (c):

5.23. Meetings generally open to public

(2) If a meeting is being held by a council or by a committee referred to in subsection (1)(b), the council or committee may close to members of the public the meeting, or part of the meeting, if the meeting or the part of the meeting deals with any of the following —

(a) a matter affecting an employee or employees; and (b) the personal affairs of any person; and

(c) a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting; and

(d) legal advice obtained, or which may be obtained, by the local government and which relates to a matter to be discussed at the meeting; and

(e) a matter that if disclosed, would reveal — (i) a trade secret; or


(ii) information that has a commercial value to a person; or (iii) information about the business, professional, commercial or financial affairs of a person, where the trade secret or information is held by, or is about, a person other than the local government; and

(f) a matter that if disclosed, could be reasonably expected to — (i) impair the effectiveness of any lawful method or procedure for preventing, detecting, investigating or dealing with any contravention or possible contravention of the law; or

(ii) endanger the security of the local government’s property; or (iii) prejudice the maintenance or enforcement of a lawful measure for protecting public safety; and

(g) information which is the subject of a direction given under section 23(1a) of the Parliamentary Commissioner Act 1971; and

(h) such other matters as may be prescribed. (3) A decision to close a meeting or part of a meeting and the reason for the decision are to be recorded in the minutes of the meeting.

VOTING REQUIREMENT

Simple Majority

PURPOSE

To consider offers received for the renewal of the Shire’s road grader, subject to the 2018/19

Plant Management Program.


COUNCIL DECISION

Minute Number: 30/10/2018 - 115877

Moved: Cr M Dear

Seconded: Cr G Lodge

That Council move out of camera at 6.36pm

Decision:8/0

Members of the gallery were invited back to Chambers. The Shire President read aloud

resolutions from matters behind closed doors

17. CLOSURE The Shire President declared the meeting closed at 6.38pm

MINUTES - Shire of Wyndham–East Kimberley

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