1 web view3. to extend the ownership base of ycdco so that ... kath oswald - town planner ......

$: 1 Web view3. to extend the ownership base of YCDCo so that ... Kath Oswald - Town Planner ... council meeting minutes\ordinary council meeting minutes - 11 december$
INDI

GO

S

HIRE

COU

NCIL

ORDINARY COUNCIL MEETING MINUTES – 11 DECEMBER 2012

SMission Statement:

To support and develop a sustainable, thriving and resilient Community through leadership and partnership.

HELD: Tuesday, 11 December 2012 at 5.30pm

LOCATION: Soldiers Memorial Hall, Barnawartha

ATTENDEES: Councillors: Senior Management/Officers

Barb Murdoch – Mayor Brendan McGrath – CEO

Peter Croucher – Deputy Mayor Greg Pinkerton

Bernard Gaffney Mark Florence

James Trenery Alan Clark

Jenny O’Connor Roberta Baker

Roberta Horne

Don Chambers

APOLOGIES:

Vision Statement:INDIGO – A great place to live, work and visit.

/tt/file_convert/5a9dec8b7f8b9adb388be273/document.doc Page 1

TABLE OF CONTENTS

1.0 WELCOME 42.0 OPENING PRAYER & acknowledgement of the traditional owners of the land 43.0 APOLOGIES AND LEAVE OF ABSENCE 44.0 DECLARATION OF CONFLICT OF INTEREST 45.0 OPEN FORUM 46.0 CONDOLENCES 77.0 CONFIRMATION OF MINUTES FROM PREVIOUS MEETING – 13 November 2012 78.0 BUSINESS ARISING FROM PREVIOUS MINUTES 79.0 DEPUTATIONS AND PETITIONS 710.0 CORPORATE SERVICES8

10.1 October 2012 Finance Report

10.2 Defined Benefits Payment Options 10

10.3 Land Sale or Exchange Pricing Policy 14

10.4 Lot 1 Steel Road, Yackandandah 16

10.5 Sale of Land at Lot 1 Railway Avenue 20

10.6 Rutherglen Wine Centre Board Annual Report and Audit Document 25

11.0 SUSTAINABLE COMMUNITIES 2711.1 Indigo Planning Scheme Amendments c52 & c54 Beechworth Commercial Rezonings

27

11.2 Planning Permit Application 12-0152 Signage, Nicholas Hotel Bottle Shop,

1A Camps St Beechworth 31

11.3 Indigo Heritage Advisory Committee Membership - National Trust Position 40

12.0 MAJOR PROJECTS AND PROGRAMS 4212.1 MUNICIPAL FIRE MANAGEMENT PLAN 42

13.0 GOVERNANCE 4513.1 Council Advisory Committee Minutes 45

13.2 Assembly of Councillors Record 47

13.3 2013 Meeting Schedule 48

13.4 Appointment to Regional Murray Darling Association 49

13.5 Beechworth and Yackandandah Council Office Redevelopment Project 55

14.0 INFRASTRUCTURE SERVICES 51

14.1 VEHICLE PURCHASING..............................................................................................51

15.0 GENERAL BUSINESS 53

16.0 COMMITTEE AND DELEGATES REPORTS (FOR INFORMATION ONLY) 5516.1 Cr Barb Murdoch – Mayor 55

16.2 Cr Peter Croucher – Deputy Mayor 56

16.3 Cr Bernard Gaffney – Councillor 57

16.4 Cr Don Chambers – Councillor 58

16.5 Cr Roberta Horne – Councillor 59

16.6 Cr James Trenery – Councillor 60

16.7 Cr Jenny O’Connor – Councillor 60

IND

IGO

SHIR

E C

OU

NC

IL


1.0 WELCOMEMeeting Commenced 5.30pm

The Mayor welcomed all those in attendance.

2.0 OPENING PRAYER & ACKNOWLEDGEMENT OF THE TRADITIONAL OWNERS OF THE LANDCr Chambers read the opening prayer and acknowledgement of the traditional owners of the land.

3.0 APOLOGIES AND LEAVE OF ABSENCECr Murdoch requested leave of absence from 14 to 21 December 2012 inclusive and 6 to 26 January 2013 inclusive.

Cr O’Connor requested leave of absence from 10 to 25 January 2013 inclusive.

Cr Chambers requested leave of absence from 19 February to 11 March 2013 inclusive.

Cr Croucher requested leave of absence from 7 – 19 January 2013 inclusive.

RESOLUTION

Moved: Cr HorneSeconded: Cr Gaffney

That the leave of absence requests from Cr Murdoch, Cr O’Connor, Cr Chambers and Cr Croucher is accepted.

UNANIMOUSLY CARRIED

4.0 DECLARATION OF CONFLICT OF INTERESTCr Trenery declared an indirect conflict of interest by close association with Item 10.5 Sale of Lane at Lot 1 Railway Avenue Yackandandah, as a family member is a shareholder.

5.0 OPEN FORUM5.1 JUNIOR COUNCIL

Cr Croucher interviewed Mitch Rockcliffe from Barnawartha Primary School to get his thoughts and experiences on being a Junior Councillor in 2012.

Page 4

IND

IGO

SHIR

E C

OU

NC

IL


5.2 BOOK PRESENTATION

St Mary’s Primary School and Rutherglen Primary School representatives presented a book to the Mayor, which was accepted on behalf of Council.

5.3 QUESTIONS RAISED BY GEOFFREY PALMER

1. What expense has been incurred by Council – YTD - on the appeal at present before VCAT in the matter of the proposed Indigo Shire Office development project? What is the forecast expense for the current financial year?

2. Will Council make public details of the authority delegated to its representatives to the VCAT mediation meeting, to be held in Melbourne in January, such as may there settle the matter? If not, why not?

Brendan McGrath, CEO advised details will not be released publicly at this point.

Mr Palmer commented that the parties who had taken Council to VCAT had spent very little on their case and asked why Council needed to engage a town planner and a legal representative to represent Council at VCAT. Mr Palmer suggested Council staff could prepare and present Council’s case. There was some discussion about the cost to Council preparing its case for VCAT. However, the CEO suggested it was not wise or prudent to signal publically how much Council had spent or was intending to spend on the matter.

RESOLUTION

Moved: Cr ChambersSeconded: Cr Horne

That discussions relating to Mr Palmer’s questions be minuted.

UNANIMOUSLY CARRIED

5.4 QUESTIONS RAISED BY HARVEY ANDERSSEN

1. Can the local and state government officials please sort out why my address does not validate on the Australia Official List of valid postal addresses? Are you aware that your Shire that wrote to me well over a year ago, in September 2011 to tell me it was changing my street number from 40 to 24 Gilchrist Avenue, and to display that the new number?

2. Are you aware that in today’s internet age, I am continually confronted by the new address the council gave me over 15 months ago not showing up as a valid address? Insurance, online purchases, Medicare, bank accounts, legal matters, police, all try to validate the address, but generally take my word for the error, albeit with a laugh at bureaucratic inefficiency, although one bank has refused to do so. Reticulated vehicles come to my house with commercial deliveries intended for the Men’s Shed, whom have my old number and are confronted by a dangerous one-way street.

3. This is the second time the Council has changed my street number in a couple of years. I raise the issue and point out the risk and emergency services consequences with Council

Page 5

IND

IGO

SHIR

E C

OU

NC

IL


staff every few months without a result. Could Council please look into the State / Local Government poor and inherently dangerous service efficiencies and ensure the new address that Council gave me 15 months ago gets onto the Database of valid Australian Addresses?

Alan Clark, General Manager Infrastructure Services responded that he would investigate the matter and respond accordingly.

4. Is the establishment of a Sale of Public Land Policy necessary when there are provisions in the Local Government Act?

Greg Pinkerton, General Manager Corporate Services ensured the Local Government Act conditions would be adhered to, and this policy has provisions for an internal process to buy / sell land.

5. Several assets at LaTrobe, which are of historical significance, are missing from the site, in particular an antique street lamp. I have enquired to Council officers, but have had a satisfactory answer.

Brendan McGrath, CEO taken on notice.

6. Does Council have a role in the selection process of new owners for the Latrobe site?

Brendan McGrath, CEO responded there is no role for Council during the selection process. The land is offered for sale with the current zoning, Council would not be required to be involved until a new owner is found.

5.5 STATEMENT READ BY GERRY HORNE – BEECHWORTH GALLERY

Mr Horne read a lengthy statement voicing his support to the changes to the zoning of 8 Albert Road, Beechworth. He opposes the panel’s recommendation to abandon the amendments proposed in Indigo Planning Scheme Amendments C52 & C54.

Mrs Horne: queried whether the Councillors had actually read each page of the 66-page report. The Mayor advised that this was a matter for each Councillor.

Cr Murdoch, Mayor: It is on today's agenda and Council will consider all information in considering their decision on this item.

5.6 QUESTIONS RAISED BY GREG CLYDESDALE

Why are the legal costs to date for Office Project VCAT hearing considered confidential? It would not be necessary to reveal the legal issues discussed, just the costs associated with the hearings.

Brendan McGrath, CEO: In accordance with the Local Government Act, the costs can be considered confidential, as they relate to legal matters. It does not serve Council well to signal what resources it is prepared to put into a legal defence on civil proceedings.

6.0 CONDOLENCESCr Croucher expressed condolences for Graeme Allsop and requested a letter of condolence be sent on behalf of Council.

Page 6

IND

IGO

SHIR

E C

OU

NC

IL


7.0 CONFIRMATION OF MINUTES FROM PREVIOUS MEETING

RESOLUTION

Moved: Cr CroucherSeconded: Cr Trenery

That the minutes from 13 November 2012 Council Meeting be confirmed.

For: Cr Murdoch, Cr Gaffney, Cr Croucher, Cr Trenery, Cr O’ConnorAgainst: Cr Chambers, Cr Horne

CARRIED

8.0 BUSINESS ARISING FROM PREVIOUS MINUTESNil.

9.0 DEPUTATIONS AND PETITIONSNil.

Page 7

IND

IGO

SHIR

E C

OU

NC

IL


10.0 CORPORATE SERVICES10.1 OCTOBER 2012 FINANCE REPORT File No: 2012/574Frank Bonacci - Manager Finance Corporate Services

For Information

INTRODUCTION

As advised in the Finance report presented to the November Council meeting, non-quarterly Finance reports are classified as minor reports showing Year to Date (YTD) progress to Budget or the latest forecast.

This report presents financial information to 31 October 2012 and is a minor report.

BACKGROUND

This finance report covers the first four months of the 2012/13 financial year to the 31 October 2012. At the end of September 2012, all budget managers provided revised year end forecast for the remainder of the 2012/13 financial year and the Year to Date (YTD) financial figures contained within the attachments to this report compare the October YTD result against both the YTD Budget and the YTD forecasts prepared at that September quarterly review.

The October 2012 YTD result is $311,382 favourable to Budget and $56,940 favourable to the latest October YTD forecast prepared at the September quarterly review.

To avoid duplication of explanation of variances already presented in the previous months finance report, the following variance explanations are provided against the October YTD forecasts prepared at the September quarterly review.

Income is $111,852 favourable to the latest forecast while expenditure is $54,912 unfavourable to the latest forecast on a YTD basis.

The following variances are of permanent nature and will provide a saving for 2012-13.

An extra $33k operating grant income received from DPCD/DPI for roadside weed control Higher that forecast building permit application fees ($6.5k) Higher than forecast user charges for Freeza events ($6.3k) and Homecare ($3k) A saving of $4.2k in the production costs of one less Indigo Informer for the year Lower than forecast fleet running costs ($6k)

The following October YTD variances are generally timing related matters (expense or income forecast in the wrong month) and are expected to correct themselves over the coming months

Interest received on investments paid early than forecast ($9.2k) Operating grant income for early years development received earlier than forecast ($10k) Operating grant income for roadside bushfire safety received earlier than forecast ($32.5k) Operating grant income for weed control received earlier than forecast ($8.2k) Contractor payments for Burke Museum manager now paid as salaries ($8k) Contractor payments for heritage advisor paid later than forecast ($4.6k) Contractor payments for tree management services paid later than forecast ($6.6k) Part of the Councillor allowance incorrectly forecast as contract payment ($5k) Invoices for swimming pool chemicals & materials received later than forecast ($4.6k)

Page 8

IND

IGO

SHIR

E C

OU

NC

IL


Material costs for conservation & environment projects received later than forecast ($2.7k) Payments / contributions made to Council Committee’s earlier than forecast ($5.5k) Payments made for IT system software maintenance made earlier than forecast ($15k) Contributions made to SES earlier than forecast ($75k) Contributions made to Rutherglen Wine Experience earlier than forecast ($26.6k) Councillor allowance being paid fortnightly but was forecast for the start of each quarter

($27k) Payment to internal auditors forecast to be paid earlier than actual ($9k)

Council’s Cash position as at the 31st October 2012 is $6.4 million. This compares with a cash position of $4.5 million for the same period last year. Details of how these funds are invested are contained within the attached Cash & Investment Report as at 31 October 2012.

The YTD Capital works spend as at the 31 October 2012 is $1.02 million which compares to $2.2 million at the same period last year.

At the November meeting council requested that a running total of expenditure on the office project be provided each month. At the end of October the YTD position is as follows:

Account YTD ActualsDirect Staff Costs $ 782.10 Legal Expenses $ 14,639.70 Advertising $ 690.92 Contracts Services $ 49,857.54 Materials $ 2,455.12

Total $ 68,425.38

Attachments1. Profit and Loss Report to October 2012

2. Department By Business Unit Report for October 20123. Cash & Investment Report as at 30 October 2012

Page 9

IND

IGO

SHIR

E C

OU

NC

IL


10.2 DEFINED BENEFITS PAYMENT OPTIONS File No: 2012/576Greg Pinkerton - General Manager Corporate Services

Corporate Services

For Decision

RESOLUTION

Moved: Cr GaffneySeconded: Cr Croucher

That Council:

1. Approve the reduction of current financial year expenditure as listed in the attachment to this report; and

2. Approve the payment of $1,278,779 being the Vision Superannuation Defined Benefits payout figure as at 12 December 2012

UNANIMOUSLY CARRIED

INTRODUCTION

This report briefly explains council’s current obligation under Vision Superannuation’s Defined Benefit (DB) plan, and then sets out two options for the payment of this obligation.

BACKGROUND

The latest review of the Vision Super defined benefit superannuation scheme was completed and audited late in FY12. As has happened in previous reviews this review has identified a shortfall in the funding that must be covered by participants. Indigo Shire is a participant in this scheme and is therefore required to pay a pre-determined proportion of the shortfall.

The total state-wide shortfall identified in the review is $453 million, of which the ISC component is $1,131,124.97 plus $199,610.29 contribution tax (total of $1,330,735.26, assuming full payment is made on 1/7/2013). The charge relates to the performance of the superannuation fund over the past 3 years and therefore needed to be recognised as soon as it became known to council. It was therefore included in the FY12 annual financial report.

Various groups have been looking at different ways of challenging and/or financing this shortfall. Most notably the MAV are leading a group looking into alternatives and possible state government assistance. To date there has been no significant progress in relation to funding alternatives.

Vision Super has offered to fund this bill over 15 years at 7.5% interest per annum. The total cost of this offer would be $2,103,563 ($140,238 per year for 15 years).

Page 10

IND

IGO

SHIR

E C

OU

NC

IL


Payment Option 1

Council’s Finance Manager and General Manager Corporate Services reviewed the available options for payment of this bill and briefed Councillors on 28 August 2012. At that stage the plan was to pay the full amount when it becomes due in July 2013. The reasons for this recommendation were:

Payment in full has a more favourable NPV than the Vision Super offer of financing over 15 years at 7.5%.

Indigo Shire can currently borrow at a lower rate than the Vision Superannuation offer and this was not expected to increase in the next 10 months to a point that would change the outcome of the NPV calculation.

This option did not lock ISC into a particular course of action and allows some time for various lobby groups to explore alternate funding options prior to the due date.

Due to the timing of the notification and the need to have this expense recognised in the FY12 statements ISC has already taken up the required $1,330,735.26. The decision is therefore not one of recognising the expense, rather one of payment and cash management.

If council proceed with this option the additional expense payment will obviously have an impact on cash reserves and the plan at the August Councillor briefing discussed the likely need to increase borrowings to cover this payment. If an additional loan of $1.3 million was required it would clearly have an impact on the Strategic Resource Plan (SRP) and the VAGO sustainability ratios. The exact impact is difficult to predict with great accuracy because the interest rate, exact loan amount, and timing of the loan are not yet known however some projections can be made based on the current information. These estimations are based on the following assumptions:

$1.3 million loan – This is clearly a maximum loan that would be needed to fund this liability.

Loan date of 1/7/13. It is likely to be a little later than this in reality because council’s cash position in June is traditionally high.

8.1% interest rate. This is our estimated interest rate for long-term financial modelling. It is expected that the real loan will be at a significantly better interest rate than this, however it is appropriate to use council’s long-term rate for a conservative calculation.

Other input variables as identified in the existing 2012 – 2016 Strategic Resource Plan (SRP).

As can be seen from the points above the SRP estimations are quite conservative and represent a high-end estimate of this addition due to the early loan at high interest rate to the full value of the DB call.

The key SRP variables, with the additional loan, indicate that a new $1.3 million loan keeps ISC well within the 40% ‘low risk’ threshold for indebtedness (calculated using the VAGO ratio methodology). Even with the full value of this loan the highest level of indebtedness occurs in FY14 with a value of 29.73%. It should be pointed out that this figure includes the $1 million deemed loan for Buller Gas (a ‘paperwork’ loan).

Page 11

IND

IGO

SHIR

E C

OU

NC

IL


Payment Option 2

Since the August briefing to Councillors the ISC executive team has been working on an alternate strategy aimed at eliminating (or at least reducing) the need for additional borrowing. There is very little flexibility in council’s annual budget and therefore this has been a difficult process of identifying the actions that would need to be taken to save approximately 5% of council’s annual budget. Each area of the council budget was closely analysed and the total savings identified through this process comes to $1.1 million in the current financial year. The savings were achievable through a mixture of deferral and deletion of projects and activities. The current market conditions also assisted the process with a few key projects providing one-off savings.

When assessing possible budget savings council’s executive team assessed the likelihood of success, potential for significant savings, and risk considerations. With little or no ‘fat’ in the budget these actions will have some impacts on services and projects that were planned for the next 6 months. The attached list contains only items that the executive team consider to be acceptable and palatable as a short-term measure to address the defined benefit call. These savings would allow ISC to pay the DB bill with little or no need for increased borrowings for this purpose. Whilst not an easy process, the executive team believe that the identified savings are an appropriate adjustment in the circumstances.

$888k of the proposed savings are in capital works. Savings in this area were a mix of cancelled expenditure, deferred projects and efficiency gains within current projects. A further $222k was found in Council’s operating budget by a combination of deferring and cancelling expenditure.

Early Payment Saving

By exercising the savings option Council would be in a position to pay the defined benefits bill immediately. This early payment would be at a slightly reduced rate $1,278,779 due to the reduction in interest on this bill and would save council $51,956.26.

KEY IMPLICATIONS

Vision Super re-assess the DB funding gap every 3 years. This expense is unavoidable. This is the largest of any of the DB funding gaps to date. The full $1.33 million has been recognised as an expense in the FY12 financial statements. Payment in full in July 2013 with subsequent loan was considered and Council briefed in

August. Additional savings in the current financial year can be made to reduce the impact of this

charge and allow ISC to pay the bill early – saving $51,956.26. This would involve the cancellation and deferral of several activities that have been

previously communicated.

RISK MANAGEMENT

There are a number of risks to ISC from this defined benefits fund – mainly financial. However there is limited ability to control this risk. The most appropriate risk management strategy in this case is to be proactive and – as you would for a large bill at home – prepare for the next bill. To this end the current internal 1.8% salaries and wages provision for future defined benefits calls will continue. This will provide a modest provision for future calls. This level of surcharge has been calculated a previous bills on the belief that the recent $453 million shortfall is an anomaly.

There are some reputational risks to council associated with the reduction, removal, and deferral of several activities that were previously communicated. Council’s executive team have assessed

Page 12

IND

IGO

SHIR

E C

OU

NC

IL


each project and determined that – in the context of the $1.3 million DB bill – this is a reasonable and appropriate balance of priorities.

FINANCIAL IMPLICATIONS

These changes will necessitate council undertaking a formal revised budget process at the mid-year review.

LEGAL/COUNCIL PLAN/POLICY IMPACT

1. Several projects and activities identified in this document for deferral or deletion have been previously included in policy and budget documents. Where a deferral is recommended this may have a knock-on effect for future strategies and budgets.

CONCLUSION

This expense is unavoidable. By accepting the recommended action Indigo Shire Council will have sufficient resources to pay this bill, and can also take advantage of the early payout figure of $1,278,779.

This plan changes the program that council had for FY12 and defers / delays / cancels some activities that have been previously communicated. While not an ideal situation, the early payment of the defined benefit call and subsequent savings regime outlined above is seen as the most appropriate response to this unexpected circumstance.

The continuing 1.8% provision will continue for the foreseeable future to smooth the P&L burden of future Vision Superannuation DB calls.

Attachments1. Proposed FY13 Savings

Page 13

INDIGO SHIRE COUNCIL


10.3 LAND SALE OR EXCHANGE PRICING POLICY File No: 2012/571Greg Pinkerton - General Manager Corporate Services

Corporate Services

For Decision

RESOLUTION

Moved: Cr GaffneySeconded: Cr Horne

That Council adopt the attached Land Sale or Exchange Pricing Policy, with the amendment that, “any decision to sell or exchange land below the market value will be by resolution of the Council”

UNANIMOUSLY CARRIED

INTRODUCTION

The attached policy is designed to fill a gap in council’s current policy suite. It is a policy with a clear default position – that council generally sells at full valuation price (as required by legislation). The proposed policy does however provide a framework to assess when this default position may be inappropriate, and then sets out a process to follow when a sale below valuation is being considered.

BACKGROUND

Council holds a number of parcels of land throughout the shire. Some of these are specifically held for sale and others are identified for sale from time to time.

When considering land sales council is obligated under the Local Government Act 1989 as well as other legislation to obtain a price based on the highest and best use of the land proposed for sale, as well as to follow certain processes and protocols. The “Local Government Best Practice Guideline for the Sale, Exchange & Transfer of Land” (the Guide) published by the Department of Planning and Community Development is an ideal reference guide for complying with these obligations.

The guide states that:

Generally, all sales and exchanges of land should occur at not less than the market value assessed by a valuer engaged by the council. However in the event that land is sold for less than the market value or exchanged for land of lesser value, the council should explain the circumstances, reasons or factors which lead to the decision to accept a sale price that is less than market value or land on exchange with a lower value.

The attached policy provides important guidelines that will be used in the situation where council are considering the sale or exchange of land, with specific applicability when council are considering sale or exchange at a price that is less than valuation.

KEY IMPLICATIONS

Legislation requires council to sell or exchange land at a valuation price that reflects the highest and best value of that land.

Page 14



Some flexibility is permitted for under-valuation sales where council can demonstrate that there are other circumstances that they consider fair compensation for the forgone sale price.

RISK MANAGEMENT

When considering a sale of land below valuation council are exposed to several legislative and governance risks. For this reason the policy document sets out a clear process and criteria that council should adhere to. Whilst non-council land sale negotiations are often done in private it is important that council follow a public process that clearly identifies in the public sphere the reasons for any below-valuation sale.

An additional risk is that land may be purchased from council at a price less than valuation and then on-sold at a profit. This risk is addressed in the policy by the use of a contractual clause requiring that above-CPI profit from on-selling within a 2-year period to be paid to council.


An under-valuation sale is a loss of income for Indigo Shire. Council should only consider a sale under valuation where the circumstances lead council to believe that the mitigating circumstances adequately counterbalance the loss of income.


This policy refers to, and is compliant with:

The Local Government Act 1989 (sections 189, 191, 207, and Schedule 10), Subdivision Act 1988 (section 20), The “Local Government Best Practice Guideline for the Sale, Exchange & Transfer of

Land” (the Guide) published by the Department of Planning and Community Development, Council Plan (2012-2016) item 3.3: “Continue to pursue opportunities for the construction

and marketing of industrial land including securing external funding where possible”.

CONCLUSION

This policy will be rarely used however it is important that a consistent approach be set in place so that council’s important governance requirements for land sales & exchanges are met.

Attachments1. Land Sale or Exchange Pricing Policy

Page 15



10.4 LOT 1 STEEL ROAD YACKANDANDAH File No: 2012/573Greg Pinkerton - General Manager Corporate Services

Corporate Services

For Decision

RESOLUTION

Moved: Cr CroucherSeconded: Cr Gaffney

That Council:1. Recognise the current softening of market conditions for industrial land and reduce

the current asking price for Lot 1 Steel Road Yackandandah to $92,665. This price being valid until January 31 2013, and,

2. Request council staff to make an assessment of the level of contamination in the soil at Lot 1 Steel Road Yackandandah and, if contamination is found, further adjust the asking price by up to $10,000 (dependent on level of contamination), and,

3. Authorise the CEO to approve the adjusted price and commence a sale process in accordance with DPCD best practice guidelines.

UNANIMOUSLY CARRIED

BACKGROUND

Council are required under legislation to sell land at a valuation price that is based on the highest and best use of the land. Some exemptions apply to this and Council is able to alter the sale price if it is done in a transparent manner and Council “…explain the circumstances, reasons or factors which led to the decision to accept a sale price that is less than market value” (DPCD “Local Government Best Practice Guideline for the sale, Exchange & Transfer of Land” 2009).

No Indigo Shire Council policy existed for the sale of land below valuation and previous Council discussions and resolutions confirmed the ISC position of selling at valuation. Inquiries from 3 rd parties for purchase below valuation were informed of Council’s obligation and history of selling at valuation unless a clear reason for reducing the price could be demonstrated to Council.

Council have a number of industrial land blocks for sale at Steel Road Yackandandah. These were developed in conjunction with state government. Low level marketing has occurred over the past few years and to date no sales have been made in this estate. Council’s economic development team is currently working on a re-launch of the marketing with an increased local presence.

Page 16



Recently Council staff were approached by Mr Andrew Colquhoun with an offer to purchase the land at Lot 1 Steel Road Yackandandah for $55,000. This is well below the $97,000 valuation.

Mr Colquhoun has raised 4 issues in relation to this block and it is these 4 issues that have guided his offer.

Issue 1 – Easements

The land has significant electrical easements that reduce the area available for construction of buildings. The easement area is still available for some limited uses such as parking storage etc.

The valuation report states the following:

“We note that easements for power supply (E1 and E2) quite heavily encumber this lot indicating a potential building envelope of some 1,500 square meters which has been taken into account in our assessment”.

After receiving Mr Colquhoun’s offer Staff re-confirmed verbally with the valuer that the price contained an adjustment for the easements (as stated in the valuation report). It is therefore not believed that the sale price should be reduced any further for the reason of electrical easements.

Issue 2 – Current Poor Market Conditions

The block was valued at $110,000 in April 2010. The current valuation of $97,000 was completed in July 2012 and the valuation report contains the following statement:

“There has been a general softening of the market for commercial/industrial property in country Victoria over the past two years, with small towns more particularly affected than regional centres”.

The reduction in valuation since 2010 is a reflection of the current market conditions. The difference in valuations from 2010 to 2012 equates to an average devaluation of $867 per month. If an assumption was made that this declining valuation has continued for the past 5 months at its previous rate the value of the block in December 2012 would be approximately $867 x 5 months = $4,335 less than the current valuation. This methodology is considered by staff as a reasonable estimation for a short period. Such as six months. Longer periods would become problematic.

It is suggested that the above calculation is a reasonable assumption given the current market conditions and that council should consider reducing the asking price by $4,335 to $92,665.

Issue 3 – Benefit to the Community

Mr Colquhoun has suggested that the relocation of his business has some additional benefits to the community beyond that of an average business. This is a subjective judgement, but an important one when considering any incentive payment that may be appropriate. Officer opinion is that this business is relatively unique, very exciting, and in keeping with the type of business that Indigo Shire is well known for, however there is little additional economic or social benefit to Indigo Shire that would arise from the relocation of Mr Colquhoun’s current operation to Steel Road.

When assessed against the draft criteria set out in the proposed “Land Sale or Exchange Pricing Policy” Mr Colquhoun’s proposal does not rate particularly highly against the assessment criteria,

Page 17



and certainly would not rate as high as a recent land sale offer where council decided that no price reduction was appropriate.

For this reason it is not believed that the offer price should be reduced any further in this instance or the reason of community benefit.

Issue 4 – Contamination

This relates to the belief that the top soil on the site has contamination in the form of “…‘off the cuff ‘ binding material (steel reinforcement, concrete chunks and more)”. Essentially the belief is that past users of the land have used this material to stabilize the soil to aid year-round access.

In the time frame available for this report it has not been possible to confirm this claim or get an understanding of the extent of any contamination that may exist. Officers have however confirmed with the valuer that no account has been made in the valuation for any contamination on this site.It is suggested that if significant contamination were to be found that this would add additional cost and risk to the purchaser. The additional cost would be incurred in digging footings, clean-up of key areas, etc. This would involve additional earthworks expense. Depending on the type and location of any building it is estimated that this could add up to $10,000 to the cost of a building.

It seems entirely reasonable to expect that a contaminated site would be valued at a lower price than one with no contamination. Therefore it is recommended that council staff be authorised to investigate this claim and adjust the price of the land up to $10,000 contingent on the outcome of the investigation. This flexibility will allow this sale process to continue in a timely manner without the need to return to the next council meeting (February). It is further recommended that the CEO be authorised to approve the new offer price and to commence a sale process in accordance with DPCD best practice principles.

KEY IMPLICATIONS

Council have a desire to sell these industrial blocks. Council have some clear obligations to sell at the highest and best value. Generally this

means at the valuation price. Mr Colquhoun has raised some issues that are worth of consideration by Council.

RISK MANAGEMENT

There are very few risks to council if the block is sold a full valuation price. If however council were to reduce the price there is some degree of risk associated with a/ process and b/ precedent.

Process risks will be mitigated by staff adherence to the DPCD best practice guidelines.

Precedent risk will be mitigated by council giving very clear and specific reasons for any reduction in price, as well as a sunset date for this price.

Page 18




Reductions in sale price is a loss of income to Indigo Shire.


Covered in “process” risk above”

CONCLUSION

The four issues raised in the report have been assessed and the recommendation is that council adjust the asking price of the land in this instance to valuation ($97,000) minus an adjustment for market depreciation ($4,335) minus a possible contamination component ranging between $0 and $10,000 depending on further investigations of the site.

The final sale price will be explained to, and approved by, the CEO prior to continuing to the standard sale process (community consultation, etc.).

If significant contamination is found, or additional new important information comes to light this matter will be returned to council for further decision.

AttachmentsNil

Page 19

IND

IGO

SHIR

E C

OU

NC

IL


10.5 SALE OF LAND AT LOT 1 RAILWAY AVENUE File No: 2012/577Greg Pinkerton - General Manager Corporate Services

Corporate Services

Cr Trenery declared an indirect conflict of interest by close association with Item 10.5 Sale of Lane at Lot 1 Railway Avenue Yackandandah, as a family member is a shareholder.Cr Trenery left the meeting at 6.33pmFor Decision

RESOLUTION


That Council offer the land to YCDCo at a price of $103,500 and until the land is sold, YCDCo pay rent to Council at the market rate value of the site.

For: Cr Chambers, Cr Horne, Cr Murdoch, Cr Gaffney, Cr CroucherAgainst: Cr O’Connor

CARRIED

INTRODUCTION

This report is a continuation of a process that council has been involved in for the past year. This report seeks to bring this complex sale process to a conclusion.

BACKGROUND

Council hold a number of industrial land allotments for sale. Most of these unsold allotments are vacant and open to public sale. Lot 1 Railway Avenue is not vacant, it is the site of the Yackandandah Community Development Company (YCDCo) operating as Yackandandah’s only fuel site.

YCDCo is the company that operates the fuel business in Yackandandah. It was formed under a company structure for the purposes of using community contributions (in the form of an initial share offering) to build a fuel business in Yackandandah. As with other companies YCDCo shareholders have financial rights. In the case of YCDCo the share value is a direct calculation from the asset base of the company. In past years YCDCo has paid dividends to shareholders and shareholders are eligible for product discounts. In this way the YCDCo structure is similar to any private business that might operate a commercial enterprise in Indigo Shire.

Page 20

IND

IGO

SHIR

E C

OU

NC

IL


Where YCDCo differs from other businesses in Indigo Shire is that they were formed with the goal of keeping fuel in Yackandandah. According to the YCDCo website the aims of the business are:

1. to undertake projects and initiatives which will economically and socially and culturally benefit the community of Yackandandah and its surrounding areas;

2. to operate YCDCo on a commercially sustainable basis and generate profits to shareholders in the long term;

3. to extend the ownership base of YCDCo so that it has a broad-based community ownership structure;

4. to return 50% of any future profits the company generates (e.g. after operating expenses) back to community causes and projects (to be defined); and,

5. to return the remaining 50% of any profits to YCDCo shareholders.Year Litres Sold Revenue Surplus/(Deficit)

(before tax)CommunitySponsorship

2003-2004 1,486,119 $1,538,732 $42,000 -2004-2005 1,658,628 $1,709,792 $60,362 $15,5782005-2006 1,728,851 $2,304,749 $46,815 $17,2412006-2007 (15 months)

2,417,786 $3,540,504 $38,614 $22,560

2007-2008 2,056,542 $3,234,402 $38,235 $33,5582008-2009 2,382,300 $3,558,051 $33,292 $12,8472009-2010 2,525,354 $3,363,040 ($7,781) $1,0002010-2011 2,387,400 $3,446,471 $5,137 $8762011-2012 2,298,530 $3,607,653 $18,101 $909

Results for the site have varied dramatically and are summarised below (again from the YCDCo website):

YCDCo have stated that their company structure is a pragmatic requirement of the organisation and that their primary focus is community support. There is certainly strong evidence that supports this. However the company structure does mean that profits and assets are owned by individual shareholders.

The history of YCDCo is long, complex, and intertwined with Council. YCDCo and Council have worked together to secure and revitalise the fuel supply in Yackandandah and then to build an industrial land subdivision (YCDCo was the catalyst for the Railway Avenue project). Over the years this relationship has benefited council (securing the fuel supply for Yackandandah residents as well as council’s own operations), YCDCo (who’s constitution dictates that profits are split between community-based shareholders and community support activities), and the residents of Yackandandah and surrounds (through stable fuel supply).

Council developed the Railway Avenue subdivision with a combination of Council and YCDCo cash and in-kind support as well as state government grant funding.

In August 2012 Council considered an offer from YCDCo to purchase the land on which the fuel site sits at a price that recognises the cash and in-kind contribution made to the original development of that land. Council resolved at that meeting:

That Council commence negotiations with YCDCo for either sale under vendor terms (by means of private treaty) or lease of this land at valuation price.

Page 21

IND

IGO

SHIR

E C

OU

NC

IL


Since that meeting YCDCo has been assessing its options for sale / lease / finance etc. This report is the next step in this process.

There are a number of key aspects to this matter.

1. Sale vs. LeaseThe overwhelming desire of YCDCo is to purchase the land rather than lease. From staff investigations into the history of the Railway Avenue development this seems to be the intent of both parties at the beginning. Concerns about the viability of the YCDCo business prevented this at the start however reference is made in some documentation to a mutual desire to sell the land to YCDCo at some later date.

2. Vendor TermsYCDCo is a company structure for a number of practical reasons – including the ability to obtain finance. Having said that, the standard arrangements for a commercial loan of this type requires a significant deposit (circa 50%). YCDCo are not yet in a position to be able to allocate this amount of cash reserve to the purchase of the land. Attempts in the past few months to find alternate sources of funding or bypass the 50% contribution have not been successful.

The land that YCDCo occupy was developed with council money, YCDCo cash contribution, and state government grant funding. No loans or other financial obligations are held for this parcel of land. It is therefore reasonable that ISC offer sale under vendor terms.

The interest rate for this vendor terms contract would be set on the signing date at council’s 10 year fixed borrowing rate.

3. Private TreatyGenerally speaking council offer land for sale to an open market. This is not only an intuitively logical method of selling any item, in council’s case it is part of the requirements of local government. There are some exceptions to this rule, namely where there is a clear and logical reason to offer land for sale by private treaty. One example of this might be a land-locked parcel of land that is only of value to an adjoining land owner.

In the case of Lot 1 Railway Avenue it is entirely reasonable that sale negotiations proceed with YCDCo under a private treaty. Not only does the fuel site owned by YCDCo sit on the land, the fuel tanks are in the land and significant difficulties may arise if this land were to be sold to a 3rd party.

4. Valuation PriceCouncil have some clear obligations to sell land at valuation price unless clear and specific reasons are given by Council to reduce the price. In August 2012 Council considered the case of Lot 1 Railway Avenue and determined not to reduce the price of the land below valuation.

On 28 November YCDCo submitted a valuation report from Cosgraves Property Advisors. This valuation report is attached. Cosgraves have determined that the block is valued at $97,000 with a confidence range of $92,000 to $102,000.

This is a significant difference from Council’s valuation of $138,000. Council staff have sent a copy of the Cosgraves valuation to Council’s valuers for assessment and comment. Their response was:

Page 22

IND

IGO

SHIR

E C

OU

NC

IL


“In looking back at the market and the evidence supporting the valuation from December 2011 I am still happy about the $50/m2 at that time. However there has been a slowing in the regional market for property and in particular for industrial land. This slowing has been most evident in small towns. I would suggest there has been a reduction of around 20%, which would put the land at around $40 per square meter or $110,000, and as it’s a small town in a week market it is appropriate to adopt a range of $5,000 either way, therefore $105,000 to $110,000”.

It is therefore suggested that Council reduce the asking price to $103,500 – being the mid-point between the two valuations.

KEY IMPLICATIONS

This matter has been ongoing for an extended period of time. Council want to sell the land, YCDCo want to buy it. The reasons for the delay are

important issue of process, price, and probity. YCDCo are not in a position to finance this without significantly increasing the cash flow

risk to their business. Council are in a position to offer this sale under vendor terms. The commercial / industrial land market is currently in a slump and prices have softened.

RISK MANAGEMENT

There are multiple risks for council to consider. Financial, governance, and reputational risks are important factors in this decision. The extended process involved in this sale has allowed for these risks to be managed however it is now at a point where a decision is due.

One significant risk mitigation under vendor terms is that the land remains in council ownership until the loan is discharged. This provides a level of control and risk management for council.


Sale of land improves council cash position however sale at a price lower than the market incurs cost to council.

Being vendor terms the cash flow will be received over an extended period.


The sale of land by Councils is governed by a number of pieces of legislation. Council has been, and will continue to, comply with these rules as well as the best practice guidelines for the sale of land (DPCD).

Page 23

IND

IGO

SHIR

E C

OU

NC

IL


CONCLUSION

After a lengthy process involving two complex organisations it is exciting to see some common ground emerging. The offer proposed by YCDCo is in keeping with previous council resolutions whilst still offering an attractive price to YCDCo due to the soft market conditions.

Council guidance and direction is sought to enable this process to continue.

Attachments1. Cosgraves Site Valuation

6.41pm Cr Trenery invited to return to the meeting

Page 24

IND

IGO

SHIR

E C

OU

NC

IL


10.6 RUTHERGLEN WINE CENTRE BOARD ANNUAL REPORT AND AUDIT DOCUMENT File No: 2012/572Kate Biglin - Manager Tourism Corporate Services

For Information

INTRODUCTION

The Rutherglen Wine Centre Board is required to provide an Annual Report detailing financial and operational outcomes and audited financial statements each year. Council is required to receive their Annual Report.

BACKGROUND

The Rutherglen Wine Centre Board is a Section 86 Committee of Council charged with governing and directing the operation of the Rutherglen Wine Centre, including the Visitor Information Centre. The Board consists of 7 members including one Indigo Shire Councilor, one nominee of the Winemakers of Rutherglen, and five members appointed by the board of Destination Rutherglen Inc. from their financial membership. The current Rutherglen Wine Centre Board Instrument of Delegation came into force on 1 July 2010 and requires the Board to lodge an Annual Report detailing financial and operational outcomes and audited financial statements by August 10 each year. These documents were delayed this year due the timing of the required external audit.

KEY IMPLICATIONS

The Annual Report highlights a strong year of activity including marketing and promotional campaigns, participation in regional tourism activities, delivery of networking events and industry training. The financial and audit statements show financial stability.

RISK MANAGEMENT

The annual report, audit, and presentation of these documents to Council is a key part of the Rutherglen Wine Centre governance framework. The use of an independent external auditor provides a high level of confidence in the attached reports.


The Rutherglen Wine Centre Board’s operating result for the period was $22,847 which was down by 34% on last year with employment, advertising and promotional expenses the key contributors. They have net assets $78,678 which is up 41% on last year. Contributing factors to the movement in net assets were changes to cash assets, plant and equipment, leave and other liabilities.


The provision of these reports to council on an annual basis is a requirement of this s86 committee.

Page 25

IND

IGO

SHIR

E C

OU

NC

IL


CONCLUSION

The Rutherglen Wine Centre Board has had a successful 12 months and is well placed for ongoing operation of the Rutherglen Wine Centre.

Attachments1. RWCB Audit 2012

2. Annual Report RWCB

Page 26

IND

IGO

SHIR

E C

OU

NC

IL


11.0 SUSTAINABLE COMMUNITIES11.1 INDIGO PLANNING SCHEME AMENDMENTS C52 & C54 BEECHWORTH

COMMERCIAL REZONINGSFile No: 2012/565Kath Oswald - Town Planner Sustainable Communities

For Decision

RESOLUTION


That Council defer this matter to February meeting to allow Councillors the opportunity to meet with the Planning Department for history and advisory session.

UNANIMOUSLY CARRIED

INTRODUCTION

Amendments C52 and C54 to the Indigo Planning Scheme propose to rezone six properties historically and/or currently used for commercial purposes in Beechworth from Residential 1 Zone to Mixed Use Zone.

A number of submissions were received in response to exhibition of the amendment, and as required by the Minister for Planning’s authorisation of 11 November 2012 and Section 23(b) of the Planning & Environment Act, the amendments were reported to an Independent Panel and Advisory Committee for consideration.

The report from the Panel and Advisory Committee has now been received, with a recommendation that Amendments C52 and C54 to the Indigo Planning Scheme be abandoned.

As such, it is recommended that Council resolve to abandon the amendments, and subsequently advise the Minister for Planning of the decision in accordance with Section 28 of the Planning & Environment Act.

BACKGROUND

(For a full background of this matter, Councillors are directed to Attachments A, B, C and D, comprising the minutes and attachments of previous reports to Council)

Following representations from the owners of 8 Albert Road but also in reference to the other properties at 9 Bridge Rd, 29 Last Street, 3 Harper Ave, 22 Junction Rd and 30 High Street, Beechworth, Council resolved at its meeting of 14 September 2010 to exhibit a planning scheme amendment to rezone the various parcels of land from Residential 1 Zone to Mixed Use Zone.

In essence all of the referenced land has premises historically used for a commercial or business activity but are located within residential areas. At the time of preparation of the amendments all premises had some level of existing use rights and four are covered by Heritage Overlay provisions.

Page 27

IND

IGO

SHIR

E C

OU

NC

IL


The Department of Planning and Community Development (DPCD) requested that the rezonings be undertaken in two separate amendments and in authorising preparation of the amendments the Minister for Planning requested that Council thoroughly test the strategic planning outcomes for the sites and that irrespective of the need for a Panel, the amendments be referred to an Advisory Committee.

An advisory Committee is established under Clause 151 of the Planning & Environment Act. Its purpose is to compliment the Panel considering submissions on the matter, and then report its findings to the Minister for Planning in the form of a report, which is a single report in conjunction with the independent planning panel appointed to consider amendments C52 & C54.

The Panel / Advisory Committee hearing was held on the 11th and 12th of October 2012 at the Beechworth Memorial Hall, and the final report was received 19 November (Attachment E).

DISCUSSION

Planning Schemes in Victoria must seek to achieve the objectives of planning in Victoria as set out in Section 4(1) of the Planning & Environment Act 1987. These objectives are:

To provide for the fair, orderly, economic and sustainable use and development of land. To provide for the protection of natural and man-made resources and the maintenance of

ecological processes and genetic diversity. To secure a pleasant, efficient and safe working, living and recreational environment for all

Victorians and visitors to Victoria. to conserve and enhance those buildings, areas or other places which are of scientific,

aesthetic, architectural or historical interest, or otherwise of special cultural value. To protect public utilities and other assets and enable the orderly provision and

coordination of public utilities and other facilities for the benefit of the community. To facilitate development in accordance with the objectives set out in the points above. To balance the present and future interests of all Victorians.

To this end, planning in Victoria is guided by the Victorian Planning Provisions (VPP’s), which include a suite of zones and overlays which seek to ensure that land use and development occurs in an orderly manner. It then follows that these zones and overlays must be applied in an orderly manner, based on sound strategic justification.

With regard to the properties identified for rezoning as part of Amendments C52 & C54, the justification and rationale for the rezoning is largely based on the personal circumstances of the landowners and the perception that the residential zoning of the land is hampering the expansion of the commercial operation.

The Panel & Advisory Committee members did not see this as sufficient justification to alter the zone of the land, finding that:

“None of the circumstances of the six sites warrant rezoning from R1Z to MUZ – rather, rezoning of one, some or all sites has the potential to undermine the strategic intent and outcomes contained in the Indigo Planning Scheme” (p.28)

There is also some discussion on the disbenefits of spot rezonings:

“Spot rezoning describes the zoning of a site to that applying to the surrounding area, allowing land to be used in a less restrictive way than the surrounding area. Spot zoning can be regarded as the antithesis of planning because it:

Page 28

IND

IGO

SHIR

E C

OU

NC

IL


May be ad hoc and arbitrary, without sound strategic reason or foundation. May be sought for the benefit of an individual or small group at the expense of the broader

community and wider benefit. Has the inherent danger that the number of spot zones can grow and overly complicate,

and undermine, the broader aims for the overall land use strategy. Overlooks the fact that existing commercial businesses within the broader residential area

can be accommodated by specific provisions – notably Clause 63 (existing use rights) – and, in the context of HOs, gives scope for new prohibited uses through the schedule to the Overlay.” (p.28)

The Panel and Advisory Committee also commented that if spot rezonings such as those suggested as part of the current amendments were approved, it would set a precedent for other requests for spot rezonings, which could potentially undermine the strategic intent of the Indigo Planning Scheme.

The following comments were offered by the Panel & Advisory Committee in conclusion:

“The Panel and Advisory Committee do not consider sound planning reasons have been provided to support the proposed rezonings in full or in part based on the principles and grounds relied upon by supporters of one or both amendments.

“Heritage fabric is protected through the HO. The Amendments will not allow more as-of-right uses and many land use opportunities are available to the heritage properties today as they are entitled to be the subject of an application for prohibited uses. The basis of an assessment of a permit application may differ if the sites are within the MUZ, giving more latitude than is currently the case, but that outcome of the Amendments is not underpinned by strategic analysis or impact assessment, nor do the Amendments demonstrably advance the strategic directions of the scheme in a better way than the existing provisions applying to the sites. There is no demonstrated or substantiated planning outcome that will be achieved by the proposed rezonings that is otherwise prevented under the current planning regime. There is no case to support the spot rezoning of properties that have no heritage values.

“The rationale for the current controls is sound in support of the heritage protection, and the consolidation of retaining and residential areas. The consequences of rezoning are likely to include other requests for spot zoning and potential undermining of the directions for the orderly development of Beechworth provided in the Scheme.

“There are no identified or substantiated proposals or planning problems relating to the sites that are sought to be addressed by the Amendments.”

Page 29

IND

IGO

SHIR

E C

OU

NC

IL


KEY IMPLICATIONS

There would be no legislative, regulatory or environmental impacts should Council resolve to abandon the amendments.

RISK MANAGEMENT

It is not anticipated there would be any major risks associated with the abandonment of the amendments.


Council has previously resolved to accept the resource allocation required for the costs for Amendments C52 & C54. These include the statutory amendment fees payable to DPCD, fees associated with representation at the Panel hearing, and the total costs of the Panel & Advisory Committee.


COUNCIL PLANThe abandonment of C52 & C54 is in accordance with Objective 4.4 of the Council Plan ‘Ensure our Land Use Planning System meets the objectives of sustainable growth, protection of our built and natural environment and reflects community aspirations’, and associated action ‘Review the Municipal Strategic Statement and Indigo Planning Scheme and amend the Indigo Planning Scheme where appropriate.’ (emphasis added)

Though as a result of individual requests for rezoning and pursued separately to an MSS Review, Amendments C52 & C54 have undergone the same tests, and the Panel and Advisory Committee have found that the proposed Amendments are not appropriate and as such should not be incorporated in to the Indigo Planning Scheme, thus ensuring it continues to meet appropriate local planning objectives.

CONCLUSION

The Independent Panel appointed to hear submissions concerning the rezoning have recommended Amendments C52 & C54 to the Indigo Planning Scheme are abandoned by Council.

This action would represent consideration of sound planning principles, including avoiding spot rezoning with little or no strategic justification, and would avoid setting a precedent for similar applications in the future.

It is recommended that Council observe the Panel recommendations and abandon Amendments C52 & C54 to the Indigo Planning Scheme, and further to advise the Minster for Planning of the decision in accordance with Section 26 of the Planning & Environment Act.

Attachments1. Council minutes 08.12.092. Council minutes 09.02.103. Council minutes 14.09.104. Council minutes 10.04.12

5. Indigo C52 & C54 Panel & AC Report

11.2 PLANNING PERMIT APPLICATION 12-0152 Signage, Nicholas Hotel Bottle Shop, 1A Camp St Beechworth.

Page 30

IND

IGO

SHIR

E C

OU

NC

IL


File No: 2012/568Kath Oswald - Town Planner Sustainable Communities

For Decision

RESOLUTION

Moved: Cr ChambersSeconded: Cr Gaffney

That Council:Refuse the application to develop the land by the replacement of signage to the façade of the bottle shop at the Nicholas Hotel, 1A Camp Street, Beechworth for the following reasons:

The proposal is inconsistent with State Planning Policy Framework, particularly 15.03 ‘Heritage’;

The proposal is inconsistent with Local Planning Policy Framework, particularly 22.03-9 ‘Heritage Policy’ and 22.03-10 ‘Advertising Sign Policy’;

The proposal is inconsistent with the purposes of the Heritage Overlay, in particular the changes would adversely affect the significance of the historic Beechworth streetscape.

The proposal is inconsistent with Objectives of Planning in Victoria, particularly to conserve and enhance those buildings, areas or other places which are of scientific, aesthetic, architectural or historical interest, or otherwise of special cultural value; and is inconsistent with orderly planning;

The proposal is inconsistent with advice from Indigo Shire’s Heritage Advisor.

UNANIMOUSLY CARRIED

BackgroundDate Application Lodged:

26/07/2012

Purpose: To develop the land by the replacement of signage to the façade of the bottle shop at the Nicholas Hotel, 1A Camp Street, Beechworth

Subject Site Land Area:

2657m2

Current Use of Subject Site:

Business

Surrounding Land Use:

Business

Surrounding Land Zoning:

Business

Page 31

http://www.austlii.edu.au/au/legis/vic/consol_act/paea1987254/s3.html#area

http://www.austlii.edu.au/au/legis/vic/consol_act/paea1987254/s3.html#building

IND

IGO

SHIR

E C

OU

NC

IL


The existing bottleshop signage was approved by PP03-057 in March of 2003 (Attachment 1 shows the existing signage).

PROPOSAL

The applicant seeks to replace the existing bottleshop signage, to “update to the current style guide”, and to bring the signage in line with the corporate format (see Attachment 2 for application documentation).

The replacement of existing signage and erection of new signage proposes to incorporate Bottlemart’s corporate colours and logo. The corporate colours are PMS ‘Reflex Blue’, PMS 109C (yellow), PMS 032C (red) , Dulux ‘Accord’ and Dulux ‘Grid’ There are three signs proposed in total.

Sign 1: Fascia Sign facing Camp St. This proposed sign is intended to replace the existing fascia sign. The sign is approximately 800mm x 6000mm in area.

Sign 2: Fascia Sign perpendicular to Camp St. This is a new sign on the fascia. The sign is approximately 600mm x 6000mm in area.

Sign 3: Flush Wall Sign. This proposed sign is intended to replace the existing wall sign and is approximately 2400mm x 3600mm in area.

ZONING AND PLANNING CONTROLS

Business 1 Zone Heritage Overlay (HO30)

A permit is required under the provisions of the Heritage Overlay to construct a building or construct or carry out works, including the erection and display of signage.

Particular Provisions Clause 52.05 Category 1 – Business AreasA permit is required to construct Business Identification Signage where the total advertisement area exceeds 8m2.

INDIGO PLANNING SCHEME- STATE PLANNING POLICY FRAMEWORK

15.03 Heritage

This policy aims to ensure the conservation of places of heritage significance. The SPPF strives to achieve this through strategies which include:

Provide for the conservation and enhancement of those places which are of, aesthetic, archaeological, architectural, cultural, scientific, or social significance, or otherwise of special cultural value.

Retain those elements that contribute to the importance of the heritage place. Ensure an appropriate setting and context for heritage places is maintained or enhanced

This policy also directs that the findings and recommendations of the Victorian Heritage Council must be considered.

Page 32

IND

IGO

SHIR

E C

OU

NC

IL


LOCAL PLANNING POLICY FRAMEWORK

Environment

21.02 Key IssuesThe Municipal Strategic Statement at Clause 21.02 identifies one of the key issues relating to land use planning in Indigo Shire is “The need to conserve, enhance and promote the Shire’s rich built form and cultural heritage.”

21.03-1 Vision & Strategic FrameworkThe vision of the Indigo Shire is “A great place to live, work and visit”. The Shire seeks to support and develop a sustainable, thriving and resilient community through leadership and partnerships. One of the ways identified to achieve this is:

“Protect and enhance the quality of the Shire’s built environment, cultural facilities and natural features, identified by residents and visitors alike as being of value.”

21.04-3 Economic DevelopmentSignificant European cultural heritage built environment, which when viewed as a collective, forms one of Australia’s most significant heritage regions. Tourism is an important aspect of Indigo Shire’s economy and heritage is a major tourist drawcard.

21.05-1 BeechworthOne of the key issues and challenges facing Beechworth is identified as the need for retail expansion without compromising heritage assets. Strategies to achieve this include the facilitation of new residential, commercial and community development that respects the preferred character and heritage significance of the locality.

22.03-5 Classified National Trust landscapesClassified National Trust landscapes applies to all National Trust of Australia (Victoria) classified landscapes within Indigo Shire, as described and defined in the incorporated document Classified National Trust Landscapes applying to the Shire of Indigo, 1998. This policy implements the heritage objectives and strategies of the SPPF and builds on the MSS objectives in Clause 21.04-3-2 relating to conservation and enhancement of significant landscapes within the Shire.

Classified National Trust landscapes form an important part of the cultural and built environment of Indigo Shire. Land use and development within these areas must be compatible with the landscape and heritage values identified in the landscape classifications.

The objectives of this policy as appropriate are:

To protect classified landscapes from insensitive design and development. To maintain and protect the diversity of classified landscapes. To protect classified landscapes from visual intrusion and inappropriate development. To maintain passive recreational use of classified landscapes for the enjoyment of all

visitors.

The National Trust first classified the Beechworth Historic area at state level in 1983.

Page 33

IND

IGO

SHIR

E C

OU

NC

IL


22.03-09 Heritage PolicyThis clause manages new development (including additions and alterations and demolition of all or part of a heritage place) in all areas covered by the Heritage Overlay through the application of a series of performance measures and decision guidelines.

The objective of this policy is to maintain the cultural heritage significance of all identified places and precincts within the Indigo Shire and to foster correct practices in accordance with the criteria as described by ICOMOS Australia and the Burra Charter. The Indigo Shire contains a wide range of built and natural heritage places that have community, economic and cultural significance for current and future generations.

Throughout the Shire are buildings, streetscapes, sites and precincts, landscapes and natural features that represent a significant asset and resource for North East Victoria. The municipality is rich in heritage dating from European settlement, in particular, the discovery of gold. There are therefore fine examples of nineteenth century commercial, community and residential buildings, features reflecting mining, pastoral and agricultural activities, and natural features and landscapes of significance.

The value of the collection of heritage items within the Indigo Shire lays in its intactness, in that the development of the Shire socially and economically through time can be seen through these items. When viewed as a whole, this collection also describes the relationship of the settlements to each other. All of the heritage places, if not significant in themselves, combine to produce a distinctive character. They should be preserved because of their intrinsic value and their contribution to urban character. The demolition of heritage places and the development of sites can erase their value forever and alterations can also affect the historical integrity of significant places.

Beechworth Conservation Precinct 1 (Commercial):Ford and Camp Streets have retained a predominantly 19th century built character and this includes the granite kerb and guttering, street tree plantings and commemorative monuments. The extant built fabric assists in the interpretation of the commercial nature of Beechworth during the 19th and early 20th century. The integrity of the streetscapes is very high. The Beechworth Commercial Precinct 1 is of historical, architectural, social, technical, aesthetic and archaeological significance.

It can be demonstrated that this policy implements the heritage strategies and objectives found in the SPPF. The MSS also identifies the need to implement consistent heritage conservation and management approaches across the Shire and to provide certainty and direction in relation to the use and/or redevelopment of heritage places (Clause 21.04-3-2).

The objective is to ensure that any additions, alterations, including signage, and replacement buildings are sympathetic to the heritage place and its surrounds.

To achieve this, it is policy to ensure that no work will be permitted that will degrade and/or compromise the cultural heritage significance of the conservation precincts.

Page 34

IND

IGO

SHIR

E C

OU

NC

IL


Decision guidelinesIt is policy to consider as appropriate:

The recommendations of:

Heritage Advisor Indigo Heritage Advisory Committee Indigo Shire Heritage Study (2002) Guidelines for the assessment of Heritage Planning Applications (2000).

22.03-10 Advertising Sign PolicyThis local policy recognises that advertising signs need to be appropriately controlled to ensure that they are compatible with the character of the area in which they are located and the building or site on which they are to be displayed, to avoid creation of visual disorder and clutter. These controls provide extra protection to the Shire’s unique heritage and urban character.

The objectives of this policy include:

To ensure all signage takes account of the heritage and urban character of the area in which it is being placed; To ensure that signs on buildings relate to the scale and design of the building on which they are located and should not dominate the building and overall streetscape; To ensure that the display of advertising signs does not detract from the visual amenity of the surrounding area.

It is policy to encourage signs that are discreet on heritage buildings and in heritage areas, and to encourage styles and colours that are appropriate to the design of the building and streetscape.

This policy also has the requirement that lettering on signs on heritage buildings and in heritage areas is to be in upper case and use colours from the heritage range where appropriate. The policy also makes particular reference to the publications ‘Lettering and Signs on Buildings c1850-1900, Technical Advisory Committee, Technical Bulletin 2.1, National Trust of Australia Victoria (1976)’ and ‘Guidelines for the Assessment of Heritage Planning Applications (2000) ’.

43.01 HERITAGE OVERLAY

The purposes of the Heritage Overlay as relevant to this application are:

To implement the State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.

To conserve and enhance heritage places of natural or cultural significance. To conserve and enhance those elements which contribute to the significance of heritage

places. To ensure that development does not adversely affect the significance of heritage places.

Page 35

IND

IGO

SHIR

E C

OU

NC

IL


43.01-4 Decision guidelinesBefore deciding on an application the responsible authority must consider:

The State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.

The significance of the heritage place and whether the proposal will adversely affect the natural or cultural significance of the place. Any applicable statement of significance, heritage study and any applicable conservation

policy. Whether the demolition, removal or external alteration will adversely affect the significance

of the heritage place. Whether the proposed sign will adversely affect the significance, character or appearance

of the heritage place.

PARTICULAR PROVISIONS

52.05 Advertising SignsThe purposes of Clause 52.05 include ‘To provide for signs that are compatible with the amenity and visual appearance of an area, including the existing or desired future character ’.

This clause also directs the Responsible Authority to consider the character of the area, including the character of the area, including the sensitivity of the area in terms of heritage values.

The proposed signage falls into Category 1 – Business areas, and is a Section 2 sign, as the total advertisement area of all signs is greater than 8m2 .

Decision guidelinesBefore deciding on an application to display a sign, in addition to the decision guidelines in Clause 65, the responsible authority must consider, as appropriate: The character of the area including the sensitivity of the area in terms of the natural

environment, heritage values, waterways and open space, rural landscape or residential character.

The compatibility of the proposed sign with the existing or desired future character of the area in which it is proposed to be located.

The cumulative impact of signs on the character of an area or route, including the need to avoid visual disorder or clutter of signs.

The consistency with any identifiable outdoor advertising theme in the area. The relationship to the streetscape, setting or landscape: The proportion, scale and form of the proposed sign relative to the streetscape,setting or

landscape. The position of the sign, including the extent to which it protrudes above existing buildings

or landscape and natural elements. The ability to screen unsightly built or other elements. The ability to reduce the number of signs by rationalising or simplifying signs. The ability to include landscaping to reduce the visual impact of parts of the sign structure. The relationship to the site and building The scale and form of the sign relative to the scale, proportion and any other significant

characteristics of the host site and host building. The extent to which the sign displays innovation relative to the host site and host building. The extent to which the sign requires the removal of vegetation or includes new

landscaping.

GENERAL PROVISIONS

Page 36

IND

IGO

SHIR

E C

OU

NC

IL


Understanding Neighbourhood Character, December 2001

REFERENCE AND INCORPORATED DOCUMENTS

Indigo Shire Heritage Study 2002

REFERRAL AUTHORITIES

The application was referred to the Council’s Heritage Advisor in accordance with Section 52 of the Planning and Environment Act 1987 and the following advice was provided.

HERITAGE ADVICE

Council’s Heritage Advisor has stated that the proposed signage does not meet the requirements of the Indigo planning Scheme or the Business Signage Guidelines, in particular:

“For the signage to meet the guidelines the lettering must be in upper case, use colours from the heritage range (as set out in the Business Signage Guidelines) and use a compatible font.

“It is the opinion of the Heritage Advisor that the proposed signage should be refused. The significance of the heritage place will be adversely affected if the signage is constructed. The signage is not discreet and it has the potential to dominate the streetscape.

“The proposed signage will adversely affect the cultural heritage significance, character and the appearance of the Nicholas Hotel and the historic streetscape.

“It is recommended that the Bottlemart branding team reconsider their application and look at the guidelines and produce a sign that is compatible with the heritage values of Beechworth and its nationally recognised streetscapes.

“Council’s Heritage Signage Guidelines have their basis in this local policy, and expand and elaborate on the principles contained within it. The purpose of the Guidelines is to ensure that all commercial signage is sympathetic to the aesthetic and architectural cultural heritage significance of individually significant buildings, contributory buildings and the historic commercial streetscapes. The Guidelines apply to all buildings in a precinct to minimise any potential impact that inappropriate/unsympathetic signage might have on the historic and aesthetic values of the whole streetscape.”

PUBLIC NOTICE

Clause 43.01-3 (Heritage Overlay) of the Indigo Planning Scheme provides that the construction or display of a sign is exempt from the notice requirements of Section 52(1) (a), (b) and (d), the decision requirements of Section 64(1), (2) and (3) and the review rights of Section 82(1) of the Act. Therefore no notice of the application was given in this instance.

Page 37

http://www.dse.vic.gov.au/dse/nrenpl.nsf/LinkView/#understneigbch

IND

IGO

SHIR

E C

OU

NC

IL


DISCUSSION

Heritage controls aim to preserve the Indigo Shire’s significant Heritage assets, which apply to individual buildings as well as streetscapes. Such controls have allowed flow on effects to the local economy through tourism and provide a wider community benefit.

All applications, whether they be for signage or alterations should aim to retain the heritage values of the significant buildings and streetscapes. Each application is considered on its merit, and decisions will vary depending on the nature of alterations, the significance of the building and its context to surrounds (streetscape values). Beechworth’s tourism is based on the town’s heritage. There is the potential for the gradual diminishment of Beechworth’s heritage through minor alterations and additions which in turn has implications for the integrity and quality of Beechworth’s heritage and the commercial viability of the tourism ‘product’. The various clauses in the State and Local Planning Policy Framework serve to provide the framework by which Council provide protection to those places which are considered to be of heritage importance. With regard to the current application, the land is within an area of heritage significance, noted as a collection of buildings, which make up a streetscape recognized at a state and national level.

It is because of the importance of this streetscape and others within the Indigo Shire that business identification signage has been dealt with in a consistent manner, in particular with regard to colour, font and use of upper case lettering.

This notwithstanding, Council resolved in September of 2011 that the requirement for upper case lettering to be maintained except for company logos that are in lower case, web page and email addresses.

A logo is defined in the Macquarie Dictionary as “A trademark or Symbol designed to identify a company, organisation, etc.”

The Bottlemart trademark includes the pictorial depiction of the ‘laughing bottle’ and ‘bottle mart’ in lower case (see page 8 of Attachment 2). As such, it is considered that although the text does not comply with local policy, the technical bulletin published by the National Trust, or the recommendations of the Heritage Adviser, lower case text can be considered in the ‘logo’ section of the signage in this instance. However, the remainder of the lettering would be required to be in upper case.

In this instance, however, the applicant has indicated that Bottlemart is unwilling to vary from the current corporate image for any aspect of the proposal, despite having done so in the past. This is demonstrated by the existing signage on the premises, where the colours deviate from the corporate colours of the time, and the text is in upper case, contrary to the corporate image.

Page 38

IND

IGO

SHIR

E C

OU

NC

IL


CONCLUSION

Indigo Shire’s Heritage brand is recognised throughout the region and nationally. It is part of the Shire’s identity and generates significant economic benefits for the community. The Heritage Overlay and local policies seek to conserve and enhance the Shire’s Heritage assets. While the signage may be viewed as a minor alteration, its approval in the form submitted would set a precedent for the gradual deterioration of the streetscape and heritage assets, in particular with regard to corporate identities.

The proposal is inconsistent with the decision guidelines of the Heritage Overlay; particularly, the form and appearance of the proposed alterations are not in keeping with the character and appearance of adjacent buildings and will adversely affect the cultural heritage significance, character and the appearance of the Nicholas Hotel and the historic streetscape.

The signage as proposed is clearly in conflict with Council’s signage policy at Clause 22.03-10 of the Indigo Planning Scheme which recognises the need to appropriately control advertising signs to ensure that they are compatible with the character of the area in which they are located and the building or site on which they are to be displayed.

There has been no attempt by the organisation to modify the corporate image to respect the existing character or streetscape, and the applicant has indicated that Bottlemart are unwilling to alter the proposal to meet the heritage objectives. As a result, the proposal will modify and reduce the intactness of the historic streetscape which is locally, State and National Trust listed and may set a precedent for similar proposals on Camp Street.

Having regard to the above discussion, the merits of the proposal in this particular location, and detrimental effect on the surrounding heritage area, it is felt that on balance the application should be refused.

Attachments1. Existing Bottlemart signage, 1A Camp St Beechworth

2. 12-0152 Application documents

Page 39

IND

IGO

SHIR

E C

OU

NC

IL


11.3 Indigo Heritage Advisory Committee membership - National Trust PositionFile No: 2012/569Bridie Guy - Town Planner Sustainable Communities

For Decision

RESOLUTION

Moved: Cr ChambersSeconded: Cr O’Connor

That Council:Agree that Pamela Thomas be appointed as the National Trust representative on the Indigo Heritage Advisory Committee as provided for in the Instrument of Delegation.

UNANIMOUSLY CARRIED

INTRODUCTION

It is proposed that a change in membership to the Indigo Heritage Advisory Committee occur. The change in membership will appoint Pamela Thomas, the Chairperson of the new North East National Trust branch, to the vacant National Trust representative position provided for in the Instrument of Delegation.

BACKGROUND

The Instrument of Delegation provides that the Indigo Heritage Advisory Committee is composed of voting and non-voting members.

The Committee’s voting members are comprised of: Two Councillors of the Indigo Shire Council Six Community representatives -Representatives should have experience in at least one of

the following fields - building industry, arts community, horticulture/landscape, local history, writing or media skills, cultural heritage management or tourism.

National Trust of Australia

The Committee’s non-voting members are comprised of: Heritage Advisor Manager Sustainable Development (or delegate) Representative of Indigo Shire Council Tourism Department A representative of Heritage Victoria

The Instrument of Delegation provides that a quorum is the majority of the number of persons who comprise the voting members of the Committee.

There has been some difficulty in achieving a quorum at some meetings this year. The June and October meetings were both cancelled due to an inability to raise a quorum. The vacancy of the National Trust position has contributed to this issue.

The National Trust position on the Committee has been vacant since the resignation of the former representative as reported to the Council in February 2012. On the vacancy of this position, a letter was written to the National Trust seeking an expression of interest to fill this position. No correspondence was received.

Page 40

IND

IGO

SHIR

E C

OU

NC

IL


Indigo Shire views its link with the National Trust as an important one and would like to maintain a collaborative relationship on heritage matters; evidence by the collaborative delivery of the 2012 Heritage Awards. In the absence of a local representative, the Shire worked closely with the Trust’s Advocate for Heritage Programs.

The National Trust launched a North East branch in Beechworth on 25 October 2012 which covers the municipalities of Indigo, Wangaratta and Alpine.

The National Trust has advised that the Chairperson of the branch, Pamela Thomas, would like to fill the vacant National Trust position on the Indigo Heritage Advisory Committee.

The Instrument of Delegation provides that changes to the composition of the Committee shall be considered by the Council upon recommendation of the Committee. In this instance, the composition of the Committee is not being amended, but rather; an existing position provided for in the Instrument of Delegation is sought to be filled.

KEY IMPLICATIONS

More collaborative relationship with the National Trust; ensuring a wider promotion of Heritage within the Indigo Shire; and greater opportunity to enable a quorum and hold regular meetings, assisting the Committee to perform is functions.

RISK MANAGEMENT

There are no risk management implications.


There are no financial implications with this appointment.


COUNCIL PLANThe Strategy of ‘continuing to foster a strong culture of support for the historic assets in our communities’ will assist with the achievement of the key strategic objective ‘protect the Shire’s heritage assets’, as set out in the Council Plan 2012-2016.

CONCLUSION

The Indigo Heritage Advisory Committee serves a valuable role in a range of ways including promoting heritage and in advising Council on heritage matters. The collaboration with the National Trust on heritage matters is a valuable relationship and will assist in a wider promotion on Heritage throughout the Shire. The appointment to this position will also assist the Committee in raising a quorum to hold regular meeting and perform its functions.

AttachmentsNil

12.0 INFRASTRUCTURE SERVICES

12.1 Municipal Fire Management PlanFile No: 2012/495Mark Greene - Civil Works & Waste Management Coordinator

Infrastructure Services

For Decision

Page 41

IND

IGO

SHIR

E C

OU

NC

IL


RESOLUTION


That Council adopt the Municipal Fire Management Plan as attached and request officers to work through anomalies between this plan and the Council’s Roadside Conservation Management Plan, and report back to Councillors prior to the 12 month review date.

UNANIMOUSLY CARRIED

INTRODUCTION

The formation of a Municipal Fire Management Planning Committee (MFMPC) and the development of a Municipal Fire Management Plan (MFMP) signify an important first step in the transition from Municipal Fire Prevention Plans developed under the guidance and direction of Municipal Fire Prevention Committees, to a MFMP developed under the guidance and leadership of a MFMPC.

Organisations and agencies involved in fire management already have a range of activities, plans, policies and procedures that are directly involved with, or that impact on fire management. This MFMP builds on this existing work, so as to chart and coordinate the implementation of measures in use across the municipality designed to minimise the occurrence and mitigate the effects of bushfires. It also seeks to identify the need for adopting or developing new activities, processes and policies, and communicating this need to the relevant responsible authority.

In doing so, it takes into consideration all aspects of fire management. These include:

Prevention – minimising the incidence of fire Preparedness – being prepared to fight fires that might occur Response – fighting fires when they occur Recovery – being able to return to normal after a fire.

MFMP has a three year planning cycle and this plan has a three year duration commencing from the date of Council endorsement. However, it will be subject to annual review and modification as appropriate. This MFMP concentrates on bushfires, however it is expected that future versions will incorporate structural and chemical fires, as well as the use of fire.

Page 42

IND

IGO

SHIR

E C

OU

NC

IL


BACKGROUND

Victoria has a long history of community, government and organisations working cooperatively to combat the threat of fire. However, recent challenges such as the decade of dry conditions, an increase in people living in high risk areas and the occurrence of a number of major fires, prompted the need for increased coordination and cooperation to secure fire safety across the state.

Integrated Fire Management Planning (IFMP) provides a framework for consistent and effective fire management planning across the fire management continuum, by providing a multi-agency approach, bringing together fire management planners and other stakeholders, including emergency service agencies, government departments, private organisations and the community. Working together, they build relationships and share information to plan across public and private land tenures for all types of fire. IFMP is based on analysis and management of risk, uses best practices and builds on existing information.

This MFMP has been developed in accordance with Part 6A of the Emergency Management Manual of Victoria and using the IFMP planning process as described in the IFMP Guide.

KEY IMPLICATIONS

Legislative & Regulatory

The MFMP is derived from the Emergency Management Manual Victoria. Part 6A directly covers the requirements in which municipalities are required to produce a Fire Management Plan.

The development of the MFMP will fulfil the obligations of Sec 55 and 54 of the CFA Act, which means the Indigo Shire Council (ISC) will not have to produce and maintain a Municipal Fire Prevention Plan nor run and record a Municipal Fire Prevention Committee.

The Municipal Emergency Management Planning Committee (MEMPC) will govern the responsibilities and activities of the MFMPC. This committee will be a subcommittee of the MEMPC. The MFMPC comprises representatives of the key stakeholders responsible for the planning and suppression of fire, and will be the prime committee to plan and make recommendations to the MEMPC.

The MFMP sits under the Hume Regional Strategic Fire Management Planning committee and this committee will, from time to time, advise and direct responsibilities onto the MFMPC.

Environmental

The MFMP will trigger the Roadside Native Vegetation Exemptions (as constituted under Part 2 of the Conservation Forests & Land act 1987) for those works identified as activities where fuel reduction may occur to mitigate fire hazards.

Page 43

IND

IGO

SHIR

E C

OU

NC

IL


RISK MANAGEMENT

The establishment of the MFMPC is to improve the integration and decision making of agencies and local government in the development of Risk Mitigation strategies for the protection of communities from fire across Indigo Shire Council.

Organisational risk is low.

Implementation risk is moderate. This is directly linked to the disbandment of Municipal Fire Prevention Committees. This is a responsibility of CFA at the completion of the MFMP. Some local dissatisfaction amongst their internal stakeholders may impact Indigo Shire Council.


Financial

No financial implications will occur in the short term of the Municipal Fire Management Plan (out to 3 years). Medium term (beyond 3years) may have financial liability on the Indigo Shire Council as development of mitigation activities upon the land vested under its control is identified and requires works.


COUNCIL PLANThis Municipal Fire Management Plan will assist with the achievement of the key strategic objective 4.2 Provide a Safe Environment For Our Community, as set out in the Council Plan 2012-2016,

There may be conflict to parts of the ISC Roadside Conservation Management Plan, in particular, where high conservation areas are consequently judged as high risk areas, following roadside assessments, with life safety implications.

CONCLUSION

Following a report presented to the Council Briefing meeting of 7 August 2012 the MFMP has been placed on public exhibition, with copies forwarded to all CFA brigades and relevant Emergency Management Agencies. Submissions received were considered by the MFMPC and appropriate amendments made to the MFMP. The MFMP was then presented to the MEMPC and endorsed at their meeting of 27 September 2012.

The MFMP is now presented to Council for adoption.

Attachments1. Indigo Municipal Fire Management Plan - Draft7

Page 44

IND

IGO

SHIR

E C

OU

NC

IL


13.0 GOVERNANCE

RESOLUTION

Moved: Cr GaffneySeconded: Cr ChambersThat Item 13.5 is moved to the end of General Business.

UNANIMOUSLY CARRIED

13.1 Council Advisory Committee MinutesFile No: 2012/566Leanne Williams - Risk Management Coordinator

Governance

For Information

1. That the following Advisory Committee Minutes have been received. Note: all minutes listed below are unconfirmed unless specified;

COMMITTEE DATE OF MEETINGBeechworth Trees Consultative Group 29 October 2012Indigo Disability and Community Access Advisory Committee

19 November 2012

Indigo Economic Development and Tourism Advisory Committee

AGM and Ordinary Meeting – 5 October 2012

Indigo Heritage Advisory Committee 21 November 2012Audit Committee – Chairperson Report only Minutes not available to the public

15 October 2012

2. The resolutions from these Advisory Committee meetings are outlined below;

COMMITTEE RESOLUTION MOVED SECONDEDBeechworth Trees Consultative Group

That the minutes of the consultative group held on 24 September 2012 be confirmed.

David McIntyre

Alan Clark

Indigo Disability and Community Access Advisory Committee

Confirmation of previous minutes

Joy Lee Peter Royle

Indigo Disability and Community Access Advisory Committee

Create Accessible Events Guide

Ron Walker

Joy Lee

Page 45

IND

IGO

SHIR

E C

OU

NC

IL


COMMITTEE RESOLUTION MOVED SECONDEDIndigo Economic Development and Tourism Advisory Committee (AGM)

Confirmation of the previous minutes

Brian Millar

Cr Peter Croucher

Indigo Economic Development and Tourism Advisory Committee (AGM)

Election of Kevin Mayhew as chair

Cr Bernard Gaffney

Cr Peter Croucher

Indigo Economic Development and Tourism Advisory Committee (AGM)

Election of Cr Bernard Gaffney as deputy chair

Brian Millar

Kevin Mayhew

Indigo Economic Development and Tourism Advisory Committee

Minutes of the previous meeting confirmedas true and correct

Brian Millar

Cr Peter Croucher

Indigo Heritage Advisory Committee

2. Motion: That the minutes from the September Meeting be confirmed.Carried.

Mandy Jones

Rex Fuge

Indigo Heritage Advisory Committee

3. Motion: That the Heritage Awards be held on 10th May 2013.

4.5. All in favour.6. Carried.

Rex Fuge

Mandy Jones

Attachments1. Minutes - Beechworth Trees Consultative Group - 29 October 2012

2. Minutes - Indigo Disability and Community Access Advisory Committee - 19 November 20123. Minutes - Annual General Meeting - Indigo Economic Development and Tourism Advisory Committee - 5

October 20124. Minutes - Indigo Economic Development and Tourism Advisory Committee - 5 October 2012

5. Minutes - Indigo Heritage Advisory Committee - 21 November 20126. Chairperson Report - Audit Committee - 15 October 2012

Page 46

IND

IGO

SHIR

E C

OU

NC

IL


13.2 ASSEMBLY OF COUNCILLORS RECORD File No: 2012/567Leanne Williams - Risk Management Coordinator

Governance

For Decision

RESOLUTION

Moved: Cr HorneSeconded: Cr O’ConnorThat Council, in accordance with Section 80A of the Local Government Act 1989, accept the attached Assembly of Councillors records

UNANIMOUSLY CARRIED


Section 76AA of the Local Government Act 1989 provides the definition of an Assembly of Councillors.

Section 80A of the Local Government Act 1989 sets out the requirements to be observed by an Assembly of Councillors.

Attachments1. Assembly of Councillors Record - Beechworth Trees Consultative Group - 29 October 2012

2. Assembly of Councillors Record - Councillor Induction Session - 20 November 20123. Assembly of Councillors Record - Indigo Disability and Community Access Advisory Committee - 19 November

20124. Assembly of Councillors Record - AGM - Indigo Economic Development and Tourism Advisory Committee - 5

October 20125. Assembly of Councillors Record - Indigo Economic Development and Tourism Advisory Committee - 5 October

20126. Assembly of Councillors Record - Indigo Heritage Advisory Committe - 21 November 2012

Page 47

IND

IGO

SHIR

E C

OU

NC

IL


13.3 2013 Meeting ScheduleFile No: 2012/578Donna Rupp - Executive Assistant Governance

Governance

For Decision

RESOLUTION


That Council adopt the 2013 Meeting Schedule.

AMENDMENT


That Council adopt the 2013 Meeting Schedule with the meetings to be held in the four major towns of Beechworth Rutherglen Yackandandah and Chiltern.

For: Cr Chambers Cr HorneAgainst: Cr Gaffney, Cr Croucher, Cr Trenery, Cr O’Connor, Cr Murdoch

LOSTThe original motion when put was carried

For: Cr Gaffney, Cr Croucher, Cr Trenery, Cr O’Connor, Cr Murdoch Against: Cr Chambers, Cr Horne

RESOLUTION


That Council adopt the 2013 Meeting Schedule with the February meeting to be brought forward to 12 February 2013.

UNANIMOUSLY CARRIED

This Schedule confirms Council’s commitment to Council Meetings and Public Forums being held around the Shire in 2013.

Attachments1. 2013 Meeting Schedule

Page 48

IND

IGO

SHIR

E C

OU

NC

IL


13.4 Appointment to Regional Murray Darling AssociationFile No: 2012/580Donna Rupp - Executive Assistant Governance

Governance

For Decision

RESOLUTION

Moved: Cr GaffneySeconded: Cr Trenery

That Council elect Cr Chambers as the Murray Darling Association representative and Cr O’Connor as the substitute representative.

UNANIMOUSLY CARRIED

INTRODUCTION

Previously ISC has been represented on the Murray Darling Association by a single Councillor. Council will now need to elect a new representative for Indigo’s position on the Region 1 sub-committee of the Murray Darling Association.

BACKGROUND

According to their official website, the Murray Darling Association was formed in 1944 as the Murray Valley Development League. It is an association of over 90 Local Government municipalities, along with community groups, businesses and individuals with an interest in ensuring that the Murray-Darling Basin continues as a viable and valuable asset for all.

The Association is a non-government organisation that crosses state boundaries and represents the views, aspiration and concerns of a large number of people living in the Murray-Darling Basin.

The Association: Seeks to ensure that the environmental integrity of the Murray-Darling Basin is conserved

and protected; Believes that Local Government is central to the orderly management of the Basin; Encourages responsible development while ensuring that the environment is protected; Fosters the evolvement of Local Government in natural resource management and

decision making processes within the Basin; Supports integrated catchment management; Provides leadership and helps to resolve conflict; Is committed to best practice in management, community involvement and participation,

service delivery and accountability.

The Association represents Local Government along the Murray, Darling and other rivers in New South Wales, Victoria, Queensland and South Australia as well as communities that rely on water from the Basin.

The Association is made up of 12 sub-regions. Indigo Shire Council has a position on the Region 1 committee.

Page 49

IND

IGO

SHIR

E C

OU

NC

IL


Other members of region 1 are: City of Albury City of Wodonga Greater Hume Shire Council Rural City of Wangaratta Shire Council of Urana Shire of Corowa Shire of Towong Shire of Tumbarumba

CONCLUSIONCouncillors are requested to consider this committee and appoint a representative Councillor and sub.

AttachmentsNil

14.0 INFRASTRUCTURE SERVICES

Page 50

IND

IGO

SHIR

E C

OU

NC

IL


14.1 VEHICLE PURCHASING

RESOLUTION


That the CEO prepare a fleet policy for presentation to Council. This policy will include a preference for buying / leasing motor vehicles made in Australia. In the interim the purchase / lease of a motor vehicle not made in Australia will be by resolution of Council. This motion does not include trucks or plant.

UNANIMOUSLY CARRIED

Page 51

TAKE NOTICE that at a meeting of Ordinary Council to be held on 11 December 2012, I intend to move the following motion:

That the CEO prepare a fleet policy for presentation to Council. This policy will include a preference for buying / leasing motor vehicles made in Australia. In the interim the purchase / lease of a motor vehicle not made in Australia will be by resolution of Council.

This motion does not include trucks or plant

Explanatory commentHundreds of Australian workers involved in the motor vehicle industry have been made redundant in recent times. The federal and state governments have supported this industry to the tune of hundreds of millions of dollars. This Council should also be supporting the Australian workers and the industry. Currently there are several vehicles in the Council fleet that are fully imported.

As with all Council purchases the “buy local “initiative should apply.

Cr Bernard Gaffney

Date received 29 November 2012

IND

IGO

SHIR

E C

OU

NC

IL


Officer comment

Officers agree that Australian businesses are an important part of the economy and council does try wherever practical to purchase locally. In the case of vehicles “Australian” now refers to vehicles assembled (at least in part) in Australia.

Council officers have been working on an update of the fleet policy for quite some time and expect to bring a significantly updated policy to Council’s February meeting. This policy will include a preference for buying / leasing motor vehicles assembled in Australia where other factors are equal. Selection of vehicle type is a complex combination of fitness for purpose, whole of life costing, safety, environmental concerns, etc. Local assembly is an important element however it should not be the primary consideration.

To illustrate this point take the example of the pool car fleet. Using the “RACV 2012 Vehicle Operating Costs” guide the difference between a medium locally made car and the lowest net cost vehicle is $9.12 per week ($474.24 each year) for travel of 15,000 km per year. Extrapolating that out to a typical council work car annual KM and multiplying it by the number of vehicles ISC operates the Australian assembled option would cost council an additional $15,000 to $20,000 each year when compared to an overseas model.

Where the Australian vehicle is the most appropriate for the task and economically viable this is an appropriate purchase and supports ‘local’ business.

As for vehicle purchases between now and the presentation policy of the new policy in February this would not cause any problem at all for passenger vehicles. There are some operational vehicles (dual cab utes, etc.) due for replacement soon however these vehicles:

1. probably fit into the “plant” category mentioned in Cr Gaffney’s motion,2. are assessed mainly on safety, work requirements and cost. Location of manufacture is a

relatively low priority for these vehicles,3. have very few locally assembled competitors.

For this reason, we would suggest operational vehicles should be considered to be part of the “plant” exclusion mentioned in Cr Gaffney’s motion.

Page 52

IND

IGO

SHIR

E C

OU

NC

IL


15.0 GENERAL BUSINESS 15.1 MAYORS LEAVE OF ABSENCE

RESOLUTION


That Cr Gaffney act as Mayor during Cr Murdoch and Cr Croucher’s leave of absence in January 2013.

UNANIMOUSLY CARRIED

15.2 NEVERWASTE BRIEFING REQUEST Cr Chambers requested an opportunity for NeverWaste to brief Councillors on the upcoming “away from home” recycling program.

15.3 UPRIVER ROAD, RUTHERGLEN Cr Chambers requesting a VicRoads report on heavy truck usage of Upriver Road. Believes it should be a state responsibility not local government.

15.4 SEPTIC TANKS Cr Chambers requesting a status report to Council on Indigo Shire’s responsibility to inspect septic tanks across the Shire.

15.5 INDIGENOUS ENGAGEMENT

RESOLUTION

Moved: Cr ChambersSeconded: Cr Gaffney

That Cr Chambers instigate engagement with indigenous tribes within Indigo Shire Council on behalf of Council.

UNANIMOUSLY CARRIED

Page 53

IND

IGO

SHIR

E C

OU

NC

IL


15.6 LIGHT INDUSTRIAL ESTATE WAHGUNYAH

RESOLUTION


That CEO investigates the establishment of a light industrial estate at Wahgunyah.

UNANIMOUSLY CARRIED

15.7 NO SMOKING

Cr Chambers foreshadowed that Council consider taking a lead role and developing a policy for not smoking in all public places.

15.8 DELEGATES TO MAV COMMITTEES An expression of Interest is sought by MAV for membership to several committees. Forms were distributed and the following Councillors showed interest in these committees:Cr O’Connor EnvironmentCr Murdoch Professional Development Reference GroupCr O’Connor Human ServicesCr Chambers Environment

Page 54

IND

IGO

SHIR

E C

OU

NC

IL


16.0 COMMITTEE AND DELEGATES REPORTS (ARE ALL FOR INFORMATION ONLY)

16.1 CR BARB MURDOCH - MAYOR For Information

DATE TIME FUNCTION/EVENT LOCATION1-Nov 4pm Special Council Meeting Yackandandah2-Nov 3pm Meeting with CEO Beechworth

4pm Glenview Fete Rutherglen6pm Launch of Rutherglen Sculpture Trail Rutherglen

3-Nov 7pm Display Greg Williams Paintings Chiltern9-Nov 1pm Council Workshop Yackandandah10-Nov 10:30a

mRemembrance Day Ceremony Beechworth

11am Celtic Festival Beechworth13Nov 10am Meeting with CEO Beechworth

2pm Briefing Meeting Sandy Creek3pm Council Meeting Sandy Creek6:30pm Community Forum Sandy Creek

14-Nov 9:30am Meeting of Advisory Group on Hume to Yarrawonga Waterway Management

Wodonga

15-Nov 9am MAV Councillors Induction Session Melbourne16-Nov 5:30pm Indigo Sustainability Awards Rutherglen17-Nov 11am Meeting Constituent Chiltern19-Nov 10am Meeting with CEO Beechworth20-Nov 4pm Council Briefing Yackandandah

5:30pm Councillor Induction Session Yackandandah21-Nov 1:30pm Meeting Economic Development Chiltern22-Nov 11:00a

mMeeting Media Officer Beechworth

23-Nov 5pm Meeting Constituent Chiltern7pm Chiltern Lions Amateur Players Performance Chiltern

25-Nov 7:30am Chiltern Mo Ride Chiltern26-Nov 10am Meeting with CEO Beechworth

12pm Opening of Disability Ramp Chiltern3:40pm Interview 2AY Beechworth

27-Nov 4pm Council Briefing Yackandandah

AttachmentsNil

Page 55

IND

IGO

SHIR

E C

OU

NC

IL

ORDINARY COUNCIL MEETING MINUTES – 11 DECEMBER 2012-

16.2 CR PETER CROUCHER - DEPUTY MAYOR For Information

DATE TIME FUNCTION/EVENT LOCATION1-Nov 10am Kiewa CWA meeting re: U3A Tangambalanga

7pm Kergunyah CWA U3A Project Kergunyah2-Nov 12pm Beechworth community meal Beechworth

1pm Official launch of Farm Safety is Fun DVD Beechworth3-Nov 10.30a

mUpper Murray Regional Library meeting Yackandandah

3pm Upper Murray Regional Library meeting Holbrook6pm Official opening of 2030 Vision Exhibition Yackandandah

6-Nov 11am Lions Club function Barooga7-Nov 4pm Upper Murray Regional Library meeting Wodonga8-Nov 9.30am Early Years meeting Yackandandah

2pm Council Briefing Meeting Kergunyah3pm Council Meeting Kergunyah6.30pm Community Forum Kergunyah

9-Nov 1.30pm Upper Murray Regional Library meeting Tallangatta10-Nov 10am Junior Council meeting Middle Indigo11-Nov 10am Chiltern Primary School opening Chiltern

12pm Indigo 2030 Project business luncheon Rutherglen13-Nov 10am 2011 Volunteers Expo Rutherglen

2pm Past & Present Book Launch Chiltern 14-Nov 10.30a

mUpper Murray Regional Library visit Tumbarumba

5.30pm 2030 community champions report back Yackandandah15-Nov 11am Upper Murray Regional Library visit Urana

3pm Asset Management Training Yackandandah16-Nov 1pm Upper Murray Regional Library visit Wodonga

7pm Kiewa/Sandy Creek Football Club annual general meeting

Tangambalanga

17-Nov 12.30pm

Rostrum Albury

3.30pm Upper Murray Regional Library visit Corowa5.30pm Atauro Island Friendship Committee Rutherglen

AttachmentsNil

Page 56

IND

IGO

SHIR

E C

OU

NC

IL

ORDINARY COUNCIL MEETING MINUTES – 11 DECEMBER 2012 -

16.3 CR BERNARD GAFFNEY - COUNCILLOR For Information

DATE TIME FUNCTION/EVENT LOCATION1-Nov 6pm Special Council meeting Yackandandah2-Nov 7pm Rostrum anniversary dinner Albury3-Nov 9am Beechworth Farmers market Beech worth5-Nov 11am Meeting with members Stanley Rural Community

Inc.Stanley

8-Nov 9am Wine Board meeting Rutherglen9-Nov 10am Inspect PP 12 – 0201 Stanley

1pm Briefing meeting Yackandandah10-Nov 11am Celtic Festival Beechworth13-Nov 2pm Briefing meeting Sandy Creek

3pm Council Meeting Sandy Creek6:30pm Community Forum Sandy Creek

14-Nov 3:30pm Chair Stanley Spring Ditch and Wetlands COM AGM

Stanley

15-Nov 11am Meeting with Manager Burke Museum Beechworth20-Nov 4pm Briefing Meeting Yackandandah17-Nov 3pm Dan Kelly display Burke Museum Beechworth21-Nov 9:30am Indigo Heritage Advisory Committee Yackandandah25-Nov 8am Volunteer @ Chiltern Moride Chiltern27-Nov 4pm Briefing Meeting Yackandandah28-Nov 7pm Wooragee NHW AGM Wooragee30-Nov 5pm ISC Christmas Party Indigo Valley

AttachmentsNil

Page 57

IND

IGO

SHIR

E C

OU

NC

IL


16.4 CR DON CHAMBERS - COUNCILLOR For Information

DATE TIME FUNCTION/EVENT LOCATION30-Oct Briefing Beechworth1-Nov Meeting with Packaging Stewardship Forum Sydney

Council Meeting Yackandandah7-Nov Meeting re vegetation of Gold Battery land Rutherglen8-Nov Meeting with North East Branch of Heritage

VictoriaRutherglen

Land Care meeting Rutherglen9-Nov Briefing Meeting Yackandandah11-Nov Remembrance day Service Rutherglen12-Nov Meeting at MAV Melbourne13-Nov Rutherglen Land Care Group Rutherglen

Council Meeting Sandy Creek14-Nov Keep Australia Beautiful Vic, AGM Melbourne

Meeting with CEO Sustainability Victoria Melbourne15-Nov MAV Council Induction Workshop Melbourne16-Nov Indigo Shire Sustainability Awards Rutherglen18-Nov Chiltern Guides Chiltern19-Nov Meeting with Communications Manager Beechworth20-Nov With Roberta Horne meeting constituents Chiltern &

BeechworthBriefing Meeting Yackandandah

21-Nov Meeting with Wahgunyah Progress Association Wahgunyah Arts and Cultural Advisory Committee Beechworth

22-Nov23-Nov

Keep Australia Beautiful Tasmanian Community Awards

Wynyard

25-Nov Arts Rutherglen sculpture launch Rutherglen26-Nov Meeting constituents Beechworth &

Wahgunyah27-Nov Meeting with Mayor

Briefing Meeting Yackandandah28-Nov Meeting with General Manager Infrastructure

servicesRutherglen

Gold Battery Committee RutherglenRutherglen Primary School Book Launch Rutherglen

30-Nov Keep Australia Beautiful national sustainability awards

Sydney

AttachmentsNil

16.5 CR ROBERTA HORNE - COUNCILLOR For Information

Page 58

IND

IGO

SHIR

E C

OU

NC

IL


DATE TIME FUNCTION/EVENT LOCATION1-Nov 6pm Special Council Meeting Yackandandah9-Nov 12:30p

mBriefing Session Yackandandah

13-Nov 3pm Council meeting Sandy Creek15-Nov 5:15pm MAV Seminar Darebin16-Nov 5:30pm Sustainability Awards Rutherglen20-Nov 7:30am Meet with Rex Fuge Chiltern20-Nov 3pm Team Building Yackandandah22-Nov 6pm Growth Rings Exhibition Albury23-Nov 7:30pm ‘Act you Age' performance Chiltern24-Nov 11am Studio 495 Market Day Corowa25-Nov 5:30pm Arts Rutherglen sculpture launch Rutherglen27-Nov 4pm Briefing Session Yackandandah29-Nov 6pm Twilight Market Rutherglen30-Nov 6pm Shire Xmas Party Indigo Valley

AttachmentsNil

Page 59

IND

IGO

SHIR

E C

OU

NC

IL


16.6 CR JAMES TRENERY - COUNCILLOR For Information

DATE TIME FUNCTION/EVENT LOCATION1-Nov 4pm Special Council Meeting Yackandandah9-Nov 1pm Council Workshop Yackandandah10-Nov 10:30a

mRemembrance Day Ceremony Rutherglen

13Nov 9am Yackandandah chamber of commerce Yackandandah2pm Briefing Meeting Sandy Creek3pm Council Meeting Sandy Creek6:30pm Community Forum Sandy Creek

14 Nov 1.30pm Meeting with the CEO Beechworth 14-15-Nov

9am MAV Councillors Induction Session Melbourne

16-Nov 5:30pm Indigo Sustainability Awards Rutherglen

19 Nov 1.30 Access Advisory Committee20-Nov 3:45pm Council Briefing Yackandandah

5:30pm Councillor Induction Session Yackandandah26- Nov

130pm Meeting with CEO Beechworth

27-Nov 4pm Council Briefing Yackandandah5:30pm Council Induction Session Yackandandah

30-nov 5pm Indigo Shire Christmas Party Indigo Valley

AttachmentsNil

16.7 CR JENNY O'CONNOR - COUNCILLOR For Information

Date Time Function Location1-Nov 4pm Special council Meeting Yackandandah9-Nov 1pm Council Workshop Yackandandah13-Nov 2 pm Briefing Meeting Sandy Creek

3 pm Council Meeting Sandy Creek6:30 pm Community Forum Sandy Creek

15-Nov 9am MAV Councillor Induction Session Melbourne20-Nov 4pm Council Briefing Yackandandah

5:30 pm Councillor Induction session Yackandandah22-Nov 5;30 pm Meeting constituents Beechworth27-Nov 4pm Council briefing Yackandandah

5:30pm Induction session Yackandandah29-Nov 6pm Meeting constituents Beechworth

AttachmentsNil

Page 60

IND

IGO

SHIR

E C

OU

NC

IL


13.5 Beechworth and Yackandandah Council Office Redevelopment Project

File No: 2012/579Brendan McGrath - Chief Executive Officer Governance

For Decision

RESOLUTION

Moved: Cr GaffneySeconded: Cr Chambers

That no documents regarding the commencement of work on either the Shire office complex at Yackandandah or Beechworth are to be prepared or signed by the Shire except by resolution of Council.

For: Cr Murdoch, Cr Gaffney, Cr Chambers, Cr HorneAgainst: Cr Croucher, Cr Trenery, Cr O’Connor

CARRIED

RESOLUTION


That Mayor and CEO are to enter negotiations on options to these projects and to present these options to the February meeting of Council for decision.


CARRIED

RESOLUTION


That the CEO advise the lawyers and town planner appearing for the Shire at VCAT that the plans/designs of the Yackandandah and Beechworth offices may be changed

For: Cr Murdoch, Cr Gaffney, Cr Chambers, Cr Horne, Cr O’ConnorAgainst: Cr Croucher, Cr Trenery

CARRIED

Page 61

IND

IGO

SHIR

E C

OU

NC

IL


RESOLUTION


That the CEO is to advise our solicitors to request an adjournment of the VCAT hearing to a date to be fixed.


CARRIED

SUMMARY

This report is provided in response to resolutions passed by Council at the Special Council Meeting on 1 November, 2012 and the Ordinary Council Meeting on 13 November, 2012 relating to this project.

BACKGROUND

This office redevelopment project is about:

creating more efficient work places resolving poor working conditions reducing OH&S risks reducing fragmentation of working business units supporting cost and time efficiencies providing for growth improving amenities.

The intended goal of all of the principles above is improved planning and delivery of service to our communities.

At the Ordinary Council Meeting on 13 November, 2012, Council passed a subsequent motion which was as follows:

15.3 COUNCIL OFFICE PROJECT

RESOLUTIONMoved: Cr TrenerySeconded: Cr O’Connor

That Officers be authorised to prepare the necessary information to present Council’s case at VCAT.

UNANIMOUSLY CARRIED

Page 62

IND

IGO

SHIR

E C

OU

NC

IL


In summary, the previous Council had passed several resolutions prior to the 2012 Elections to try and bring some conclusion to a project that several Councils have worked on over a number of terms, and that the previous Council had set as a Council Plan goal to conclude after much work in their four year term.

The recent resolutions by the previous Indigo Shire Council were as follows.

At the Ordinary Council Meeting on 14 August, 2012, the Council determined as follows:

11.3 YACKANDANDAH COUNCIL OFFICES REDEVELOPMENT

RESOLUTION

Moved: Cr PockleySeconded: Cr Croucher

That Council resolve to grant a permit for Planning Permit Application No. PP12-0114 subject to the conditions set out at Attachment 5 and to issue a Notice of Decision.

For Councillors Pockley, Croucher, Goldsworthy, Issell, GrahamAgainst Councillors Murdoch, Gaffney

CARRIED

At the Ordinary Council Meeting on 11 September, 2012, Council also determined the following:

11.7 BEECHWORTH COUNCIL OFFICE – EXTENSION AND CAR PARK

RESOLUTION


That Council resolve to grant a permit for Planning Permit Application No. PP12-0133 subject to conditions set out in the attachments and to issue a Notice of Decision.

For: Cr Pockley, Cr Croucher, Cr Issell, Cr Graham, Cr GoldsworthyAgainst: Cr Gaffney, Cr Murdoch

CARRIED

CCA

Page 63

IND

IGO

SHIR

E C

OU

NC

IL


12.3 INDIGO SHIRE COUNCIL OFFICE ACCOMMODATION PROJECT – YACKANDANDAH

RESOLUTION

Moved: Cr GrahamSeconded: Cr Croucher

That Council authorise the CEO to sign Contract 12/2224 – Indigo Shire Office AccommodationProject – Yackandandah to the value of $2,808,437 excluding GST, with Browns Wangaratta Master Builders.

For: Cr Graham, Cr Croucher, Cr Pockley, Cr GoldsworthyAgainst: Cr Murdoch, Cr Gaffney, Cr Issell

CARRIED

12.4 INDIGO SHIRE COUNCIL OFFICE ACCOMMODATION PROJECT – BEECHWORTH

RESOLUTION


That Council:

a) Acknowledge the local economic and employment contribution made by appointing a local builder, by applying key selection criteria 5.4.6 – “any matters considered material to the assessment of Tenders, as determined by the Council in its absolute discretion”; and

b) Authorise the CEO to sign Contract 12/2192 – Indigo Shire Office Accommodation Project – Beechworth to the value of $920,589 excluding GST, with Beechworth Traditional Homes.

For: Cr Pockley, Cr Croucher, Cr Graham, Cr Goldsworthy, Cr IssellAgainst: Cr Gaffney, Cr Murdoch

CARRIED

The effect of those resolutions passed in August and September 2012 were to issue Notices of Decision approving the Planning Permits for the redevelopment of the Yackandandah and Beechworth sites and to authorise the signing and sealing of contracts for the construction of those projects.

CURRENT STATUS

Those contracts have been entered into in accordance with those resolutions. Any further work on this project is largely dependent on an application that has been made to VCAT by objectors for both Planning Permits and at this stage it is anticipated that VCAT will convene mediation sessions early in 2013 and hearings for both matters in February or March 2013.

No work on construction of those two sites or the provision of temporary office accommodation can be undertaken until such time as VCAT’s determination is made. The contracts that were entered into were provisional on planning approval at Beechworth and Yackandandah and the provision and occupation of temporary accommodation at Yackandandah only and also the issuing of written direction from the Council to commence works.

Page 64

IND

IGO

SHIR

E C

OU

NC

IL


Following the 2012 Elections, the new Council has moved quickly to consider one of its key projects, the Beechworth and Yackandandah Council Office Redevelopment Project.

At the Special Meeting on 1 November, 2012, Council resolved as follows:

16. GENERAL BUSINESS

RESOLUTION


That all work, process and progress (except the practice day hearing on VCAT), in regard tothe Beechworth Shire office project and the Yackandandah Shire office project be delayed(except for the work on temporary accommodation), so the new Council can be fully briefedon all aspects of the decision currently on the books with particular regards to financialimplications for long term viability.

For: Cr Gaffney, Cr Chambers, Cr Murdoch, Cr O’Connor, Cr HorneAgainst: Cr Trenery, Cr Croucher

CARRIED

CONSIDERATIONS

So, returning to the resolutions passed by the current Council, the practice day hearing referred to in the resolution from 1 November, 2012, has been held and this resulted in the two planning permit application matters being joined and agreement that mediation would be scheduled for early in 2013 and an indication that a full hearing for the projects would be scheduled in February or March 2013.

Two workshops have now been convened for the new Council.

The first of those was held on Friday, 9 November, 2012.

A range of material was provided and discussed at this session including advice on the current contracts that have been entered into, what is included in those and included in the overall project budget.

There was some discussion about Council’s Long Term Financial Plan. Comparisons of an analysis of Council’s current forecast borrowings and rates, particularly in relation to other similar Councils.

Discussions regarding detail of tenders received. An overview of the objections to the planning permits, application made to VCAT and the

VCAT process, information regarding Council’s commitment to provision of temporary accommodation costs.

Some discussion around the current expression of interest process relating mainly to Mayday Hills.

The second workshop was convened on 27 November, 2012 and again a range of options and issues were canvassed, including:

Advice on the contractual obligations. The financing of the project including the use of State Government grants. Consideration of the process leading to the decision to redevelop these two sites versus

single or multiple sites and a range of other options including the refurbishment of existing facilities and the provision of emergency access and egress.

Page 65

IND

IGO

SHIR

E C

OU

NC

IL


Councillors were also afforded the opportunity to ask some questions and discuss the matter directly with a Solicitor whose firm had provided advice on this particular matter.

During these workshop discussions, various combinations of the use of the two existing sites as well as other sites previously considered and the use of the provision of additional lease facilities have been canvassed to varying degrees.

Many of these alternatives have some merit and for that reason were considered and ultimately discarded by previous Councils. It is apparent that should VCAT determine in Council’s favour in relation to the two planning permit applications, then the Council’s alternatives with regard to the two contracts that have been entered into are quite limited and to withdraw from them would have significant financial implications for the Council. More specific information on these costs is provided in Confidential Attachment No. 1.

Whilst potentially there will be some disquiet that this information is confidential, it is considered that it would be extremely imprudent for Council to telegraph the likely costs associated with exiting contracts if it chose to go down this path, nor should the Council be assisting anyone with an interest in mounting a claim for compensation against the Council.

A briefing has also been provided by Council’s Heritage Advisor outlining why the two designs and locations are considered appropriate.

ISSUES

Commitments and Obligations

The main issue being considered by the new Council is how it deals with commitments made by the previous Council, that it has not had a history of being associated with and may not necessarily agree with in all aspects. To some degree this is the reality of a local government political environment with terms spanning four years and decisions being made with commitment beyond those terms. Council has chosen quite prudently to do its own due diligence on information leading up to that point to ensure that at the very least it understands what led to those decisions and what capacity, if any, they have to vary those decisions.

The Council has considered its capacity to vary those decisions, particularly should VCAT find in the Council’s favour in relation to the planning permit applications. Part of the briefing provided to the Council has been the legal obligations created by those previous decisions and the financial implications associated with policy implications. The granting of planning approval for these projects is considered to be consistent with state and local planning policies within the Indigo Shire Planning Scheme. This will be tested at the VCAT hearings in 2013. The provision of contracts to construct these was consistent with both Council’s Strategic Resource Plan and 2012-13 budgets as well as the current Council Plan.

This had been a priority in previous budgets, Strategic Resource Plans and Council Plans for a number of years over several Council terms, so there was considered a very clear “head of power” to proceed with this particular matter.

Risks and Implications

The Council is obviously entitled to review its position in relation to this project and go back to reviewing new options, or revisiting previously discarded options. There are implications stemming from this of course including:

public perception and Council’s commercial/business reputation contractual obligations cost of investigations/re-design staff time

Page 66

IND

IGO

SHIR

E C

OU

NC

IL


OH&S issues with existing sites and conditions access issues remain unaddressed during ongoing delay.

All of these need to be carefully considered in coming to any decision.

FINANCIAL AND RESOURCE IMPLICATIONS

The total budget for this project is $4.74M. The current commitments for the project design, legal costs, construction contracts, temporary accommodation and various other costs are all well within the current operating and capital budgets provided for in the 2012-13 budgets. As highlighted earlier, other financial implications to be considered are the potential penalties if the Council were to choose to withdraw from either or both contracts and again further information is provided on this in the confidential attachment No.1.

CONCLUSION

The new Council has moved quickly to conduct its own due diligence exercise on this project through the review of existing material and two workshop sessions. Having had the opportunity to review this history and decisions made during previous Council terms, and in the absence of clear or effective alternatives, the recommendation is that the current project and processes be confirmed. It is considered important that given the pending VCAT consideration of this matter, current contractual and budget obligations, that it is brought to a conclusion as quickly as possible. Councillors and Officers need to continue to progress this project, but also importantly, to commence on a range of other important strategic activities, such as the new Council Plan, a review of policies and delegations, the construction of the 2013-14 budget, much of which is due within the next six months, in what will be a very busy period for Indigo Shire Council.

Attachments1. Contract Claims

2. Advice Letter

Meeting Concluded: 8.33pm

Page 67

1 web view3. to extend the ownership base of ycdco so that ... kath oswald - town planner ......

Documents