SHELLHARBOUR CITY COUNCIL

SHELLHARBOUR CITY COUNCIL Extraordinary Council Meeting – 11 June 2015

Minutes of the Extraordinary Meeting

of Shellharbour City Council held at the Council Chambers, Council Administration Centre

Shellharbour City Centre on Thursday 11 June 2015 commencing at 6.33 pm

Present

Mayor M Saliba Deputy Mayor P Rankin (arrived 6.51pm) Councillor K Marsh Councillor D Boyle Councillor H Stewart Councillor J Murray Councillor P Moran

In attendance

General Manager M Willis Director City Outcomes C McIntyre Director Corporate Policy L Furness Director Shellharbour Enterprises M Youell Executive Manager / Public Officer F MastroDomenico Group Manager Infrastructure Services M Boenisch Chief Financial Officer R Owens Manager Property and Recreation D Flanagan Manager Assets and Projects G Standen Manager Projects and Contracts S Gillen Media Officer C Lewis Senior Executive Assistant L Davey Council Liaison Officer (Minute Taker) J Frasca Justin Thornton – Marsdens Colin Stewart - CBRE

This is page 1 of the Minutes of the Extraordinary Meeting of the Council of the City of Shellharbour held 11 June 2015.


1. Acknowledgement to Country

Shellharbour City Council acknowledges the Traditional Owners and Custodians of the Land on which we are meeting and pays its respects to Elders past and present. Webcasting and Emergency Plan Statement The Mayor read the usual advice regarding the webcasting of the meetings of the Council.

2. Apologies / Leave of Absence

Nil

3. Confidential Business (Committee of the Whole)

In accordance with the Local Government Act 1993, and the Local Government (General) Regulation 2005, in the opinion of the General Manager, the following business is of a kind as referred to in Section 10A(2) of the Act, and should be dealt with in a Confidential Session of the Council meeting closed to the press and public. Set out below is Section 10A(2) of the Local Government Act 1993, in relation to Confidential Business: 10A(2) Which parts of a meeting can be closed to the public? The

matters and information are the following: (a) personnel matters concerning particular individuals; (b) the personal hardship of any resident or ratepayer; (c) information that would, if disclosed, confer a commercial advantage on a person

with whom the council is conducting (or proposes to conduct) business; (d) commercial information of a confidential nature that would, if disclosed:

(i) prejudice the commercial position of the person who supplied it, or (ii) confer a commercial advantage on a competitor of the council, or (iii) reveal a trade secret,

(e) information that would, if disclosed, prejudice the maintenance of law; (f) matters affecting the security of the council, councillors, council staff or council

property; (g) advice concerning litigation, or advice that would otherwise be privileged from

production in legal proceedings on the grounds of legal professional privilege.



CONFIDENTIAL ITEMS

3.1 City Hub - Sale of Lamerton House and Related Properties (10466399)

This item is classified CONFIDENTIAL under the provisions of section 10A(2) (c, d(i), d(ii)) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to the following: (c) information that would, if disclosed, confer a commercial advantage on a

person with whom the council is conducting (or proposes to conduct) business

(d) commercial information of a confidential nature that would if disclosed: (i) prejudice the commercial position of the person who supplied it

(ii) confer a commercial advantage on a competitor of the council Council will be considering the possible divestment of Lamerton House, Lot 3000 and part of Benson Basin. Whilst any decision to sell such assets must be made in the public domain, consideration of information pertaining to any sales must also be conducted in confidential session, to enable candid debate of commercial details, options and strategies without prejudicing the Council’s commercial interest, thereby protecting the public interest.

4. Declarations of Interest

Nil

5. Committee of the Whole in Closed Session: Adjournment

The Mayor asked whether anyone in the public gallery wished to speak on the reasons why Item 3.1 City Hub – Sale of Lamerton House and Related Properties, should not be held in Confidential Session (closed to the public). One member of the public expressed their interest in addressing the Council.

166 RESOLVED: Marsh/Murray

That members of the public be permitted to address council on the reasons why they consider Item 3.1 City Hub – Sale of Lamerton House and Related Properties should not be held in Confidential Session (closed to the public).

CARRIED UNANIMOUSLY



Agenda Item No & Title Name

3.1 City Hub – Sale of Lamerton House and Related Properties (10466399)

Sonya McKay

167 RESOLVED: Murray/Boyle

1. That Council resolve into Committee of the Whole (in Confidential Session) to consider the above business as listed, together with any late reports tabled at the meeting.

2. That pursuant to Section 10A(1-3) of the Local Government Act 1993, the

press and public be excluded from the proceedings on the basis that the business to be considered is classified confidential under the provisions of Section 10A(2) (c, d(i), d(ii)) of the Act as outlined above.

3. That the correspondence and reports relevant to the subject business be

withheld from access to the press and public in accordance with Section 11(2) of the Local Government Act 1993.

FOR VOTE - Cr Boyle, Cr Saliba, Cr Murray AGAINST VOTE - Cr Moran, Cr Stewart, Cr Marsh ABSENT DID NOT VOTE – Cr Rankin CARRIED on the Mayor’s casing vote

Meeting adjourned 6.50pm Meeting resumed 6.56 pm

6. Committee of the Whole: Consideration of Adoption of Decisions Reached in Closed Session

The following Recommendations to Council from the Committee of the Whole Council (confidential) were read to the Meeting by the General Manager.

3.1 City Hub – Sale of Lamerton House and Related Properties (10466399) COMMITTEE RECOMMENDATION:



That Council:

1. Receive and note the report. 2. Confirm the reserve price suggested in this report for the auction of

Lamerton House. 3. Sell Lamerton House (being Lot 4000 in DP809913) and Lot 3000 in

DP739087 by way of public auction. 4. Authorise the General Manager or his nominated delegate and the Mayor

to execute any contract for the sale of Lamerton House (being Lot 4000 in DP809913) and Lot 3000 in DP739087 to give effect to that sale, provided that the price under that contract is not less than the reserve price suggested in the report.

5. Confirm the Expression of Interest process for the sale of the 3.4ha

surplus Operational Land at Benson Basin 6. Confirm that the proceeds of the surplus land at Benson Basin be applied

to the City Hub project. 7. Confirm that in order to protect the Council's commercial interests in this

matter, all the material contained in this report (including the reserve prices and price guides) are to remain confidential, and is not to be publicly disclosed, until such time as it may be subsequently reported back to an open meeting of the Council, or declassified in accordance with Clause 11.1.4 of Council's Code of Meeting Practice.

168 RESOLVED: Murray/Rankin

That the Recommendations to Council from the Committee of the Whole Meeting held earlier today be adopted. CARRIED 4/3 FOR VOTE - Cr Boyle, Cr Saliba, Cr Murray, Cr Rankin AGAINST VOTE - Cr Moran, Cr Stewart, Cr Marsh

7. Reports

7.1 Award of Design and Construct Contract to ADCO Constructions Pty Ltd for the Shellharbour City Hub Stage 1 Project (10472334)

MOTION: Murray/Boyle



That Council: 1. In accordance with the Early Contractor Deed, that Council notify ADCO

Constructions Pty Ltd that it wishes to proceed to award the ADCO Constructions Pty Ltd the Design and Construct Contract for the Project on the terms of the Final Design and Construct Contract Terms proposed in the Design and Construct Stage Offer; subject to the following conditions being achieved: a. ADCO Constructions Pty Ltd are deemed to be financially capable of

fulfilling the contract requirements. b. Council receives an operable Development Approval.

2. Subject to the abovementioned conditions being fulfilled, Council negotiates and enters into a Design and Construct Contract with ADCO Constructions Pty Ltd.

3. The General Manager or his nominee is delegated authority to issue the notification under the Early Contractor Involvement Deed.

4. The General Manager or his nominee is delegated authority to enter in a Design and Construct Contract with ADCO Constructions Pty Ltd

Councillor Marsh FORESHADOWED a MOTION that should the Motion be lost that she would move that the item be deferred. Councillor Moran asked why the total cost of the hub project was not able to be released on the Tuesday, but was publicly released on the Friday. The General Manager took the Question on Notice. Councillor Moran proposed the following addendum to point 2 of the Motion, which was accepted by the Mover:

2. Subject to the abovementioned conditions being fulfilled, Council negotiates and enters into a Design and Construct Contract with ADCO Constructions Pty Ltd for a maximum of $46,435,480.

Councillor Moran asked what other developments in the City have used leasable floor area for the determination of their parking requirements under the DCP. The General Manger took the Question on Notice.

169 RESOLVED: Moran/Marsh

That Councillor Stewart be given an extension of 2 minutes to conclude her address. CARRIED UNANIMOUSLY



Councillor Marsh asked how much the building will cost Council to service. The General Manager took the Question on Notice. During Councillor Rankin's address, Councillor Marsh MOVED a POINT of ORDER in relation to Councillor Rankin's comments. The Mayor did not accept the Point of Order and asked that Councillor Rankin continue with his address. Following a statement made by Councillor Stewart, Councillor Murray MOVED a POINT of ORDER that Councillor Stewart should either ask a question or otherwise not re-enter the debate, which was accepted by the Mayor.

170 RESOLVED: Murray/Boyle

That Council: 1. In accordance with the Early Contractor Deed, that Council notify ADCO

Constructions Pty Ltd that it wishes to proceed to award the ADCO Constructions Pty Ltd the Design and Construct Contract for the Project on the terms of the Final Design and Construct Contract Terms proposed in the Design and Construct Stage Offer; subject to the following conditions being achieved: c. ADCO Constructions Pty Ltd are deemed to be financially capable of

fulfilling the contract requirements. d. Council receives an operable Development Approval.

2. Subject to the abovementioned conditions being fulfilled, Council negotiates and enters into a Design and Construct Contract with ADCO Constructions Pty Ltd for a maximum of $46,435,480.



CARRIED: 4/3 FOR VOTE - Cr Boyle, Cr Saliba, Cr Murray, Cr Rankin AGAINST VOTE - Cr Moran, Cr Stewart, Cr Marsh

Two NOTICES OF RESCISSION MOTIONS were lodged at this point in the meeting. Rescission Motion 1 (see attached) RESCISSION MOTION: Murray/Rankin



That Item 6. Committee of the Whole: Consideration of Adoption of Decisions Reached in Closed Session as follows be rescinded: 3.1 City Hub – Sale of Lamerton House and Related Properties (10466399) That Council:

1. Receive and note the report.

2. Confirm the reserve price suggested in this report for the auction of Lamerton House.

3. Sell Lamerton House (being Lot 4000 in DP809913) and Lot 3000 in

DP739087 by way of public auction. 4. Authorise the General Manager or his nominated delegate and the Mayor

to execute any contract for the sale of Lamerton House (being Lot 4000 in DP809913) and Lot 3000 in DP739087 to give effect to that sale, provided that the price under that contract is not less than the reserve price suggested in the report.

5. Confirm the Expression of Interest process for the sale of the 3.4ha

surplus Operational Land at Benson Basin 6. Confirm that the proceeds of the surplus land at Benson Basin be applied

to the City Hub project. 7. Confirm that in order to protect the Council's commercial interests in this

matter, all the material contained in this report (including the reserve prices and price guides) are to remain confidential, and is not to be publicly disclosed, until such time as it may be subsequently reported back to an open meeting of the Council, or declassified in accordance with Clause 11.1.4 of Council's Code of Meeting Practice.

That the Recommendations to Council from the Committee of the Whole Meeting held earlier today be adopted.

The Mayor ruled the meeting be adjourned for five minutes due to disorderly conduct in the gallery and asked that the Councillors leave the Chamber.

Meeting adjourned at 8.04pm Meeting resumed at 8.08pm

Councillor Moran moved a Motion of Dissent from the Mayor's ruling for an adjournment.



MOTION: Moran That the Mayor's ruling be dissented from.

171 The MOTION on being PUT to the Meeting was LOST 3/4

FOR VOTE - Cr Moran, Cr Stewart, Cr Marsh AGAINST VOTE - Cr Boyle, Cr Saliba, Cr Murray, Cr Rankin

172 RESCISSION MOTION 1 on being PUT to the MEETING was LOST

FOR VOTE – Cr Moran, Cr Stewart, Cr Marsh AGAINST VOTE - Cr Boyle, Cr Saliba, Cr Murray, Cr Rankin

Rescission Motion 2 (see attached) RESCISSION MOTION: Murray/Rankin That Item 7.1 Award of Design and Construct Contract to ADCO Constructions Pty Ltd for the Shellharbour City Hub Stage 1 Project (10472334), as follows be rescinded: That Council:

1. In accordance with the Early Contractor Deed, that Council notify ADCO Constructions Pty Ltd that it wishes to proceed to award the ADCO Constructions Pty Ltd the Design and Construct Contract for the Project on the terms of the Final Design and Construct Contract Terms proposed in the Design and Construct Stage Offer; subject to the following conditions being achieved:

a. ADCO Constructions Pty Ltd are deemed to be financially capable of fulfilling the contract requirements.

b. Council receives an operable Development Approval. 2. Subject to the abovementioned conditions being fulfilled, Council negotiates

and enters into a Design and Construct Contract with ADCO Constructions Pty Ltd for a maximum of $46,435,480.





During the Mayor’s address the Mayor called Councillor Moran to order and asked that he retract his comments and apologise. Councillor Moran retracted his comments and apologised unreservedly. During Councillor Stewart's address, Councillor Murray MOVED a POINT of ORDER in relation to Councillor Stewart's comments. The Mayor accepted the Point of Order and stated that Councillors are responsible for their own behaviour. During Councillor Stewart's address, Councillor Rankin MOVED a POINT of ORDER in relation to Councillor Stewart's comments, which was not accepted by the Mayor. The Mayor called Councillor Murray for his Right of Reply and Councillor Moran MOVED a POINT of ORDER and stated that as there were no speakers against the Rescission Motion, a Right of Reply was not required. The Mayor accepted the Point of Order.

173 RESCISSION MOTION 2 on being PUT to the Meeting was LOST 3/4

FOR VOTE - Cr Moran, Cr Stewart, Cr Marsh AGAINST VOTE - Cr Boyle, Cr Saliba, Cr Murray, Cr Rankin

Business Arising: Councillor Marsh asked that the General Manager review security at Council Meetings.

Meeting closed 8.53 pm

Attachments 1. Notice of Rescission Motion: Item 6. Committee of the Whole: Consideration of

Adoption of Decisions Reached in Closed Session as follows be rescinded: 3.1 City Hub – Sale of Lamerton House and Related Properties (10466399)

2. Notice of Rescission Motion: Item 7.1 Award of Design and Construct Contract

to ADCO Constructions Pty Ltd for the Shellharbour City Hub Stage 1 Project (10472334)



Rescission Motion 1



Rescission Motion 2


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