briefing paper - randwick city council · 13. a constructive relationship between employers,...

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Briefing Paper 'Better, Stronger Local Government

- The Case for Sustainable Change'

(NSW Independent Local Government Review Panel -

Consultation Paper - November 2012)

The Randwick App:

Introduction

Introduction

Randwick City Council is considered a leader in local government. This is demonstrated through a range of

initiatives, partnerships and strategic alliances as discussed throughout this report. This demonstrates the

Council’s capability to deliver the best outcome for the community as well as being able to implement the vision

in the State Plan and the Sydney Metropolitan Strategy.

The Council considered the Independent Local Government Review Panel’s (the Panel) ‘The Case for Sustainable

Change’ report in December 2012 and has resolved:

‘That:

a) Council affirm the position that Randwick Council not be amalgamated;

b) Council consider a plebiscite of the residents of Randwick at an appropriate time when further feedback

is available from the review panel to obtain guidance from the residents on the issue of possible

amalgamation;

c) non-voluntary Council amalgamations are opposed;

d) but should non-voluntary amalgamations proceed a preferred outcome for Randwick would include the

following:

i. The election of Councillors should be based on a proportional system of at least three Councillors

per ward with this system being introduced into the Botany Council area;

ii. The current ratio of Councillors to residents across the eastern suburbs should not be reduced but

increased to a realistic level;

iii. If Botany Council is to be absorbed into an expanded City of Sydney Council, Randwick, Woollahra

and Waverly should be kept separate as a distinct eastern suburbs council area;

iv. If the City of Sydney amalgamates with Botany Council the Port Botany complex should be retained

within whatever eastern suburb Council emerges; and

e) neighbouring Councils are to be informed of this resolution.’

The Panel has identified elements of an effective system of local government in their report the “The Case for

Sustainable Change” (page 11). Randwick City Council more than satisfies each of the elements identified, as

outlined in Part A of this report. Further, with our long term financial plan, asset management, workforce plan

and strategic land use planning, the Council is sustainable and can cater for the growth, over the 25 year

horizon being considered by the Independent Review Panel.

Council is in a very sound position in terms of its long term sustainability. The Council has:

• a demonstrated track record of operating surpluses and these are forecast to continue

• sound liquidity and this is forecast to continue

• a strong focus on sustainability

• forecast capital expenditure is well above benchmark for supporting an acceptable standard of assets

• significant capacity to undertake debt to deal with any unexpected adverse financial situations.

The Council has been assessed as “well managed” and “financially sustainable in the long term” by NSW Treasury

Corporation in their review of the Council in 2012.

On any measure, Randwick City Council is a sustainable council in the long term. It has a population of

approximately 130,000 people far exceeding any of the neighbouring Councils. It is a socially diverse city with

sections of public housing; an indigenous community; a non-English speaking community; and a large

percentage of the community born overseas. In addition, Randwick has large areas of open space for

recreational purposes (30% of the City consists of open space), major educational institutions such as the

University of New South Wales and Randwick TAFE, a regional hospital complex, Randwick Racecourse, Port

Botany, and a sporting heritage.

In recent months the State Government has identified major areas of Randwick as “Urban Activation Precincts”.

The renewal of these areas has major strategic, population and employment implications for Randwick City. The

Council has embarked on a major strategic partnership with the State Government in reviewing the potential

and the strategic requirements for these areas.

Randwick Council has always fulfilled and achieved the commitments outlined in the State Plan and the

Metropolitan Strategy and works as an equal partner with the State Government in the implementation of

these plans.

In addition, the Council has demonstrated that it has the necessary strategic capacity and foresight to deal with

future challenges. The Council has had a community strategic plan in place since 2006 and has been working

with the community to implement and refine the plan, as required. The Council also has in place a number of

strategic alliances with the State Government and other major industry partners for the benefit of the

community. A recent example is the Council’s leadership in the successful delivery of light rail to Randwick.

These are detailed further in this report.

The Council is concerned that the discussion in relation to amalgamations was initiated without extensive public

input from the City’s residents. Randwick City Council is recognised for its commitment to community

consultation and engagement. Residents have an expectation that the Council will consult with them on

significant strategic issues that affect their city now and into the future.

While the Council’s preference is to retain its current boundaries, options for structural change have also been

considered. The General Manager has met with the General Managers of Waverley, Woollahra and Botany

councils to discuss the reform process. The Council also engaged SGS Economics and Planning to conduct an

independent strategic and financial assessment of potential options for structural change to local government

within Eastern Sydney. This high level assessment, detailed in Part B of this report, concluded enhanced

strategic capacity, strong asset management and financial sustainability could be achieved in the Eastern

Suburbs subregion through structural reform.

Part A – the case for Randwick City

Council boundaries remaining unchanged

This report forms the basis for a submission to the Local Government Review Panel to support the case for

retaining Randwick City Council’s current local government boundaries and for not being amalgamated with any

other Council. The Independent Local Government Review Panel sets out the key aspects of local government

that are most in need of reform as ‘signposts’ in their report on the Case for Change. They also provide a list of

key elements of an effective system of local government. This report has been structured to address these

elements:

Independent Local Government Review Panel – Signposts and elements of an

effective system of local government (Source: Better, Stronger Local Government, 2012)

Signposts Elements of an Effective System of

Local Government*

Randwick’s Response

1. The local

government

system and

challenges

faced

1. A reduction in State regulation and compliance

regimes, replaced by improved auditing and a focus

on capacity building and continuous improvement.

2. A Local Government Act that minimises prescription

and provides a range of options for the way councils

and regional organisations are structured and

operate, tailored to the differing characteristics and

needs of communities.

Auditing and a focus on capacity

building and continuous

improvement

2. Fiscal

responsibility

and financial

management

3. Councils with an adequate revenue base (own source

or grants), healthy balance sheets, and sound

financial management including reasonable and

justifiable rate increases and proper use of

borrowing.

4. A range of effective mechanisms for State local

consultation, policy development and operational

partnerships, linked to the State Plan and regional

coordination framework.

Sound financial management

Policy development and

operational partnerships

3. Services and

infrastructure

5. Universal use of modern information and

communications technologies for service delivery,

council meetings and community engagement.

Use of modern information and

communications technologies

4. Structures

and

boundaries

6. Regional organisations of councils that share

resources on a large scale and jointly plan and

advocate for their regions (but not a ‘fourth tier’ of

government).

Resource sharing

5. Governance

7. Councils that are managed like multi-million dollar

companies; have highly skilled mayors, councillors

and executive teams; and are respected by the State

government and community alike.

8. Mayors who are recognised leaders both within the

council and throughout the local community, and

enjoy a positive reputation for that leadership.

9. Mayors and councillors who are adequately

remunerated in return for high-level performance.

10. Professional development for new councillors and

mayors, including access to accredited courses and

coaching of a high quality, similar to that of company

directors.

11. Council elections characterised by high quality

candidates standing on soundly-based policy

Highly skilled teams that are

respected by the State government

and community alike;

- Community satisfaction

- Awards and recognition

Councillor development;

- Professional development for

new Councillors and mayors

- Candidates fully aware of their

potential responsibilities as a

councillor

Signposts Elements of an Effective System of

Local Government*

Randwick’s Response

platforms, and fully aware of their potential

responsibilities as a councillor.

12. Clear definition in the Local Government Act of the

respective roles of mayors, councillors and senior

managers.

13. A constructive relationship between employers,

employees and employee organisations, focused on

improving productivity, performance and rewards.

14. An electoral system designed to ensure that as far as

possible councils are representative of the make-up

and varied interests of their communities.

15. Councils renowned for their efficiency and focus on

outcomes, based on the Integrated Planning and

Reporting framework.

Constructive relationships

6. A compact for

change and

improvement

16. Integrated strategic planning involving State and local

governments as partners at all levels.

17. A local government association that is focused on

strategy; a well-informed, dynamic advocate; a leader

in reform; and a trouble-shooter for dysfunctional

councils or councillors.

Efficiency and focus on outcomes;

- Integrated Planning and

Reporting framework

- Environmental sustainability

- Comprehensive Local

Environmental Plan

* Each element has been assigned to one signpost. We acknowledge that some of these elements are important considerations for

more than one signpost.

1. The local government system and challenges

faced

Randwick City Council has championed in the local government industry with the aim of streamlining and

integrating its approach to planning and service delivery. Randwick Council was one of the first councils in NSW

to prepare its Integrated Planning and Reporting (IP&R) publications. The Council’s foresight in strategic

planning has enabled it to provide a high level of efficiencies and streamlining the delivery of services to the

community.

The Council shares its knowledge with other councils within the region. As one of the first councils to complete

its Integrated Planning, together with the Division of Local Government, we provided many other councils with

detailed briefings and information on how to embrace the IP&R framework. This is explained in more detail in

section 6 of this report.

The Council’s efforts focus not only on working with residents but with the many varied and diverse institutions

which bring a large number of daily visitors and employees to the City. The Council took a strategic lead in

working with major institutions including University of NSW, Randwick hospitals complex and Randwick

racecourse in line with the recommendation of the Metropolitan Strategy to plan for the specialised health and

education centre. The Council also advocated for a high capacity transport for the employees and users of

these institutions and residents. Randwick Health and Education Precinct has been identified as a Specialised

Centre within the Sydney Metropolitan Strategy. Once again the Council took a strategic lead in working in

partnership with the major institutions to provide an integrated approach to supporting this significant

employment region.

The Council works with local business leaders and residents to improve the quality and viability of town centres

to provide a prospering economy and liveable communities. Through regular leadership forums, seminars and

workshops the Council has strived to encourage investment and increased employment in the City.

1.1 Auditing and a focus on capacity building and continuous improvement

The publication ‘Probity in Randwick City Council’ has been produced to highlight council’s multifaceted

approach and leadership in the industry. The document provides insight into the probity approach used at

Randwick City Council for Councillors, staff and throughout the Local Government sector as an example of best

practice.

Randwick City Council’s audit function is considered on the leading edge in the industry. The Council is called on

to provide guidance, assistance and direction to other councils’ audit functions. The Council’s Internal Auditor

established the Local Government Auditor Group, as a way of sharing the knowledge and information with

colleagues within local government.

Council’s internal audit function is represented diagrammatically as follows:

A strong approach to continuous improvement is achieved through the review of key processes (using the

Division of Local Government’s Promoting Better Practice Checklist), organisational risk review profiling and

external peer reviews. These major activities are undertaken on a four-yearly cycle and provide the basis for a

suite of improvements such as the internal communications and customer service project that included the re-

development of Council’s intranet site.

The reviews continue to reflect that the Council is delivering services to the community at a standard exceeding

many other council areas, that key systems and processes are operating effectively and that the Council is

clearly demonstrating good governance and ethical conduct.

The Council has implemented a number of initiatives to maintain its position as an industry leader in the

performance of its systems and processes. The ongoing reviews by the Internal Auditor has strengthened

governance and management across the organisation and has led to the development of an online risk

management function which is monitored by external insurers to ensure maximum effectiveness.

2. Fiscal responsibility and financial management

2.1 Sound financial management

The Council is in a strong financial position with a history of generating operating surpluses, strong capital works

programs, sound liquidity, while remaining debt free for over a decade. Furthermore, the Council has a capacity to

generate operating surpluses and fund capital works and infrastructure programs well into the future.

The centrepiece of the Council’s programmed and disciplined approach to financial management is the Long Term

Financial Plan (LTFP). Please refer to Attachment A. The purpose of the LTFP is to enable the Council to better plan

and understand long term financial requirements. This includes consideration of sustainability, service provision

levels and the creation, upgrading and renewal of infrastructure.

The LTFP is a key component of the Randwick City Council Resourcing Strategy. This Strategy underpins the

Council's Integrated Planning and Reporting framework and demonstrates how The Randwick City Plan will be

resourced over the next 10 years. The LTFP is integrated with the Council’s Asset Management Strategy and

Plans and the Workforce Plan.

In 2012 an independent review of the Council’s financial position and LTFP was undertaken by NSW Treasury

Corporation. The review concluded that the Council has been well managed and is in a financially sustainable

position long term. The following are extracts from their review:

‘The Council has been well managed over the review period based on the following observations:

• Operating surpluses have been posted in each review year when capital grants and contributions are

excluded

• Liquidity has remained sound as indicated by an Unrestricted Current Ratio above benchmark

• Council’s underlying operating performance, measured by EBITDA, has been on a positive trend between

2010 and 2012

• Council’s financial flexibility is good as indicated by an Own Source Operating Revenue Ratio above

benchmark in all four years.’ (NSW Treasury Corporations (TCorp) ‘Financial Assessment, Sustainability

and Benchmarking Report - 21 November 2012’. Page 4)

‘The key observations from our review of Council’s 10 year forecasts for its General Fund are:

• Operating surpluses (excluding capital grants and contributions) are forecast to continue for all 10 years

• Council’s liquidity is expected to remain adequate with an Unrestricted Current Ratio above the

benchmark for all forecast years

• Council’s own source operating revenue is forecast to be above the benchmark for the forecast period

indicating a sufficient level of financial flexibility

• Council is forecast to remain debt free throughout the 10 years

• Council’s capital expenditure is forecast to be above the benchmark for all 10 years.’ (NSW Treasury

Corporations (TCorp) ‘Financial Assessment, Sustainability and Benchmarking Report - 21 November

2012’. Page 4).

‘From our review, Council appears to be in a sound position in terms of its long term Sustainability. Our key

observations are:

• Council has demonstrated a track record of operating surpluses and these are forecast to continue

• Council has had sound liquidity over the review period and this is forecast to continue over the forecast

period

• Council has a strong focus on the subject of Sustainability as indicated in their Community Strategic Plan

and other IP&R documents. This has been recognised by Council receiving external awards for their work

in this area since 2006

• Council’s forecast capital expenditure is well above benchmark which should support an acceptable

standard of assets

• Council has significant capacity to undertake debt to deal with any unexpected adverse financial

situations.’ (NSW Treasury Corporations (TCorp) ‘Financial Assessment, Sustainability and Benchmarking

Report - 21 November 2012’. Page 5)

Financial Management Indicators

* The Council revalued the Community Land asset class in 2010-11 financial year and this resulted in a restatement of the values

in the 2009-10 financial year.

‘Financial Sustainability

In considering the longer term financial sustainability of the Council we make the following comments:

• Council’s current LTFP shows a continuation of the strong financial position over the forecast period with

operating surpluses trending upwards.

• Liquidity is forecast to remain sound.

• Capital expenditure is forecast to be at levels above what is required to maintain and expand assets at an

acceptable standard

• Council operates debt free however they have the capacity to utilise borrowings in the future that could

assist with the issue of intergenerational equity for funding long term capital projects and reducing or

eliminating the Infrastructure Backlog

• Council has significant capacity to undertake debt to deal with any unexpected adverse financial

situations.’ (NSW Treasury Corporations (TCorp) ‘Financial Assessment, Sustainability and Benchmarking


The Council champions best practice and an ever improving system of local government in terms of financial

performance through demonstrating financial management techniques in presentations to over forty councils,

provision of ‘Financial Management at Randwick’ publication and a reporting samples booklet, submissions and

consultation with the State government and membership of the Local Government Finance Professionals

Executive Committee.

2.2 Policy development and operational partnerships

As required by the Integrated Planning and Reporting guidelines many of the outcome statements and

strategies in the Randwick City Plan are aligned very closely with the main objectives of the NSW 2021 State

Plan and other relevant state and regional plans. Randwick City Council is working with the NSW Government

towards achieving the relevant priorities of the NSW 2021 State Plan and its associated plans including the State

Infrastructure Strategy and the NSW Long Term Transport Master Plan. The Sydney Metropolitan Plan, which is

currently being updated, will align with these priorities.

The Council works with neighbouring councils within the Southern Sydney Regional Organisation of Councils

(SSROC) to deal with common issues, particularly those that cross boundaries. Key issues include planning,

transport, environment, sustainability, procurement and waste management.

Other agencies, such as the Sydney Metropolitan Catchment Management Authority (SMCMA), also affect the

Council’s planning and direction. The SMCMA is working with other agencies, including councils, for natural

resource management of the Sydney catchment to establish NSW targets for biodiversity, water, land and

community wellbeing.

Performance Indicators Year ended 30 June 2012 2011 2010 2009

EBITDA ($’000s) 25,815 23,399 19,766 20,433

Operating Ratio 2.9% 1.8% 1.2% 4.2%

Interest Cover Ratio N/A N/A N/A N/A

Debt Service Cover Ratio N/A N/A N/A N/A

Unrestricted Current Ratio 2.83x 2.44x 2.52x 3.25x

Own Source Operating Revenue Ratio 78.0% 72.1% 80.2% 70.0%

Cash Expense Ratio 1.3 months 0.8 months 1.6 months 4.9 months

Net Assets ($'000s) 1,292,053 1,283,821 1,270,950* 2,106,037

Since the adoption of the Randwick City Plan in 2006 the Council has developed a number of significant

strategic alliances and partnerships with major institutions, other local governments and organisations that

benefit the wider Community.

Randwick City Council continues to provide leadership in local government in a Metropolitan strategic policy

and planning context. A key current State initiative is to review the NSW planning legislation, which will shape

the future of both State and local government planning. Given the Council’s expertise and experience, Council

staff have been invited and have actively participated in key working groups as part of this review, involved in

the drafting of the main consultation paper (the Green Paper), considering development

contributions/infrastructure issues and funding mechanisms, and improving/extending the application of

exempt and complying development. The Council has sought and achieved the State Government’s

commitment, through its metropolitan planning and transport strategies, to the importance of the City’s key

employment hub, the Randwick education and health specialised precinct, and of the need and benefits of

bringing light rail to Randwick.

In turn, the Council's local planning both acknowledges and addresses its responsibilities as part of a Global

metropolitan city. Working within its long term visions under its Community Strategic Plan, Council has recently

completed a new comprehensive Local Environment Plan (LEP), which provides a model for extensive

community engagement extending over three years of planning and delivery. During the preparation of the East

Sydney Subregional Strategy the Council prepared residential and employment targets for the City which were

incorporated by the State Government into their strategy. In the preparation of the LEP the Council ensured the

targets are being met, ensuring the Council contributes to addressing Sydney's growing housing demands. A

draft comprehensive Development Control Plan (DCP) is now on exhibition, and the LEP and DCP documents

recognise the key challenges facing the City and East Sydney sub-region, with new development required to

enhance people's quality of life through measures such as better design, sustainability, housing affordability and

equity of access.

The Council works with all major stakeholders across the City and often extending beyond local government

boundaries, noting that strong partnerships help to better utilise important state and local infrastructure and

services. Council meets regularly with Sydney Ports Corporation, seeking to ensure that this Nationally

significant freight and container handling port continues to meet its import/export needs while delivering local

jobs and minimising impacts on nearby residents. Similarly, we liaise closely with the UNSW and the 4 teaching

hospitals within the Randwick Education and Health specialised centre, to maximise the benefits of this centre

which provides almost 40% of the City's jobs and specialty education, medical research and health services well

beyond the local boundary.

Given the significant existing and proposed State infrastructure and services in the City, the NSW Government

has commenced two Urban Activation Precincts (UAP) within Randwick City. These projects aim to optimise the

planning for Sydney's housing and employment growth in accessible locations, with opportunities to improve

existing infrastructure that needs upgrading (including 3500 public housing dwellings) and opportunities to

optimise the benefits of new infrastructure, with the recent announcement of light rail. Council has committed

extensive resources to these projects, providing a conduit between the State government and the local

community given the Council’s existing planning and understanding of the local environment and its role within

the broader regional and metropolitan context.

Fundamental to the Council’s success as an organisation is the viable partnerships formed with key stakeholders

such as government and non-government agencies. These partnerships expand the Council’s understanding of

the community’s needs, allow the Council to assist other local organisations and provide opportunities to

contribute to significant projects and initiatives that benefit the broader community.

Key Randwick City Council partnerships include:

• Randwick Education and Health Specialised Centre – The Council established a strategic partnership

with the State Government, UNSW, Randwick Hospitals Complex, Randwick Racecourse and TAFE for

informing and the implementation of the Metropolitan Strategy.

• Light Rail - the importance of light rail was identified during the Randwick City Plan consultations with

the community. Council has advocated strongly for the introduction of light rail in the City. The Council

has entered into a Rail Transport Infrastructure memorandum of understanding with the UNSW,

Australian Turf Club, South Eastern Health Network, Centennial Park/Moore Park Trust, the Sydney

Cricket Ground and Sports Ground Trust and the City of Sydney to work in partnership to advocate for

Light Rail. In addition, the Council has actively participated in a Transport Working Group with the

relevant NSW Government agencies. The Council will contribute $68 million of works surrounding the

light rail to Randwick corridor.

• The Eastern Beaches Premier’s Crime Prevention Partnership (CPP). Agencies participating in this

project are the Eastern Beaches Local Area Command Police, Department of Premier and Cabinet,

Department of Housing, Attorney General’s Department, State Transit Authority and the Office of

Liquor Gaming and Racing. Coogee and Maroubra have been identified as areas within the City for

implementation of strategies and actions.

• Partnerships arising from the Matraville Town Centre Action Plan with the Matraville Chamber of

Commerce, the precincts, Industry and Investment NSW, the Roads and Maritime Services, local

schools, local sporting organisations and local market organisers.

• Working relationship with each Precinct Committee where, for example, we work closely gathering

input from each Precinct at the preparation stage of Council’s Operational Plans rather than the

exhibition phase of these documents.

• A Sustainability Agreement with the University of NSW (UNSW). Randwick Council was the first local

government entity to sign a Memorandum of Understanding with the UNSW to share and work on

joint research, projects and promotions including encouragement of sustainable transport.

• A partnership with Housing NSW aimed at delivering improved social and physical outcomes for

residents living in and around public housing precincts in Randwick City. Representatives attend

quarterly meetings to discuss issues.

• A Deed of Agreement with the local Guriwal Aboriginal Corporation for the management and

operation of the La Perouse Bush Tucker Track to generate income and employment for the local

Aboriginal community.

• Partnerships with major sporting clubs such as South Sydney Rugby League Club to assist

disadvantaged youth and junior rugby league clubs in the area and to support community volunteers.

• A community partnership with the Cancer Council of NSW to support the Cancer Council conduct

education campaigns by adopting relevant policies and providing suitable venues for meetings and

education programs.

• A memorandum of understanding with the NSW Police regarding the use of CCTV in Randwick City

to assist in the prevention and investigation of criminal offences.

3. Services and infrastructure

3.1 Use of modern information and communications technologies

Background

The Council has fostered a culture of innovation. This ingrained culture is evident in a range of projects that the

Council has developed and implemented. The use of modern technology has enabled the Council to deliver

services to the residents the way they want them delivered.

Randwick Council is recognising and embracing the challenges that come with communicating with residents

who through new technologies now have more choice and access to information. Traditional communication

methods like local newspapers and flyers are still important, but they are now part of a much more

sophisticated communication and engagement strategy design to service local residents.

We recognise that Council should be providing information for our residents in a range of ways such as

Facebook, Twitter, YouTube and online to give residents a choice about how they would like to receive

information. This principle governs how we inform and engage our community.

In 2012, former Mayor Scott Nash set the direction that:

Council will provide the capability for any resident, business

owner or visitor to engage with Council without the need to

come into a Council office, if they so choose.

This strategic direction has been the driver for delivering services to our residents in the way they want those

services delivered.

This change is also helped by an ingrained culture of innovation within the organisation. New ideas are

welcomed and staff are empowered to come up with new ideas to better serve our local residents. One

example of this is Council’s iPhone App myRANDWICK which was initially envisaged by a Property Coordinator

as reporting tool before it was expanded to its current format.

myRANDWICK app

Imagine a smartphone application that asked not what

you could do for it, but how it could help you.

This was the premise for an iPhone app and HTML 5

mobile site called myRANDWICK. The app uses

geographical awareness and social media to deliver

tailored information about Council services, events, news

and projects providing a customised experience based on

property address.

The app allows users to report problems for Council to

fix, track and comment on development applications

(DAs) in their area, and receive email/push reminders for

rubbish, recycling, clean ups and events. Residents can look at daily beach condition reports and photos, receive

local news and events per suburb, find interactive maps of each suburb showing parks, pools, libraries and

facilities, book a free clean-up, and locate contact details for Council, Ward Councillors and local Precincts. It

was developed as a response to our residents’ increasing use of mobile devices and desire for customised

content.

Since launch in August 2012, more than 4,000 residents have downloaded the iPhone app including 1,200

unique visitors to the mobile site (www.my.randwick.nsw.gov.a) in February 2013 and more than 50 service

requests a month a lodged through the app.

Online services In 2012 we created a GIS and Online Services Department to develop innovative ways for our customers to

access information and submit requests.

The Unit is driving change and innovation within the organisation by aiming to put all Council services and

request forms online. This means residents can lodge requests on line, view Council documents and procedures

about all aspects of Council services, track their requests, complete business and service transactions etc., all

online. Further, for our local business owners, Council can assist with their payroll, employee assistance

programs, recruitment, promotion of their business, etc. Thus reducing costs and providing growth

opportunities whereby local employment opportunities may be created.

http://www.my.randwick.nsw.gov.a/

This is a significant extension on the services we previously provided and reinforces the Council as a leader in

our community. This area of online support is the future direction of Local Government as we transition from an

industry that strives to provide best value facilities and services for our community to an industry that not only

provides facilities and services to our community but proactively delivers these services for our community in an

easy and accessible form that is tailored to their requirements.

Wi-Fi

The Council has recently approved a pilot implementation of public Wi-Fi hotspots at Coogee Beach and The

Spot and High Cross Park in Randwick and has allocated $125,600 to fund the pilot project.

The program is designed to stimulate the economy of the local businesses within these town centres by

attracting more patrons and enticing them to stay longer in these precincts – increasing vibrancy and

perceptions of public safety.

Public Wi-Fi has been available in two of the three libraries in Randwick and Maroubra for many years and the

Council has recently extended the Wi-Fi service to its third library at Malabar.

Social media

Council has been using social media since November 2011 to engage and communicate with local residents on

local issues. Council’s Facebook page is approaching 2,000 active members and posts are regularly published to

communicate Council events and services but also to encourage discussion and engagement at a local level

about topics of interest helping further Council’s motto of ‘a sense of community’.

The Mayor regularly uses Twitter to drive engagement with local residents who prefer this communication

medium. Almost 700 people follow the Mayor’s activities on Twitter which range from attending functions and

events to communicating important Council decisions, events and other services.

Council’s YouTube channel hit 10,000 views this year across more than 20 videos. The most popular video with

almost 3,000 views is a fly-through animation of a major public works construction project at Maroubra. The

high number of views is attributed to an innovative signage strategy at the construction site encouraging users

to ‘see the future’ of the site by scanning a large QR code which is part of the fencing signage design.

Electronic Direct Marketing

Feedback from local residents through Communication Surveys and Community Satisfaction Surveys show a

high number of people wanting to be engaged about Council issues through email. In response Council has

developed a weekly Randwick eNews bulletin that has a subscriber based in excess of 7,500 local residents.

Each edition is written to inform local residents about the top issues or projects affecting them. Open rates for

the eNews bulletin are extremely high - averaging about 35 per cent.

Online engagement

Council has been a leader in community engagement for many years. Council was a pioneer in the use of the

online engagement platform called YourSay Randwick. This online discussion forum gives local residents a voice

in important Council projects and decisions ranging from playground upgrades, planning policy and transport. In

2012 there were more than 77,000 unique site visits and 42,871 document downloads. This clearly shows and

engaged community willing to access information online.

2012 2011

Site visits 77,028 35,061

Page views 144,641 82,000

Comments 335 2,000*

Documents

downloaded 42,871 16,000

Time on site 2m53s 3m8s

* High number of comments in 2011 can be attributed to the popular Light Rail to Randwick website.

Dashboard/Hub App Council Dashboard is a new way to securely deliver information and content to Councillors and council staff

who have access to smart devices. Content is delivered to small groups who require information for specific

purposes, such as access to meeting agendas and minutes, and to

a broader range of council staff.

Council Dashboard provides for:

• Distribution and annotation of meeting agendas and

minutes

• Publishing of council brochures and forms

• Remote (off-line) storage of content

• Inter-council collaboration possibilities.

Randwick City Council was one of the first Councils in NSW to take

up the ‘Dashboard/Hub App’ and is using the App for:

• Access to Council business papers and minutes (for Councillors and staff) • Councillor induction (following the September 2012 elections) • Distribution of its draft 2013-14 Budget and working papers • Updates on major capital projects (for staff and Councillors) • Access to HR policies (for staff) • Access to Councillors’ Bulletin (a weekly newsletter for Councillors). • Access to Councillor Briefing documents (for Councillors).

The use of this App (particularly for Council business papers and minutes, Councillor induction and the Draft

2013-14 Budget process) has created significant efficiencies with respect to paper usage and timing of the

distribution of documents. One of the main advantages of the App, however, is to allow remote access to

documents and ease of navigation around documents (particularly large documents, such as business papers)

and the ability to share comments on published documents.

3.2 Asset management The Council owns and operates more than $1.3 billion worth of assets, including footpaths, roads, drainage,

parks, buildings and equipment. The Asset Management Strategy analyses our existing assets, allows the

Council to properly plan necessary maintenance, and makes projections for replacement as necessary.

The following table shows the significant level of funding allocated to maintaining major infrastructure assets

from 1 July 2008 to 30 June 2012. The actual expenditure on infrastructure over the 4 year period has exceeded

the value of maintenance required to maintain the assets in satisfactory condition (see the Asset Infrastructure

Expenditure graph). The strong level of expenditure on infrastructure has resulted in an improved overall

condition to our roads and drainage assets.

Continuing the Council’s commitment to quality infrastructure assets, attention has turned to improving

community buildings with the introduction of the ‘Buildings for our Community’ program. After consulting the

community in early 2010, the Council adopted a $34.8 million, seven year ‘Buildings for our Community’

program to bring 65 buildings up to standard and meet community expectations, thus ensuring the long term

sustainability of the Council’s community buildings. The Council is currently in year 3 of the 7 year program.

Council’s infrastructure backlog in 2012 is dominated by buildings and other structures that total $22.6m. The

drainage works backlog reduced by $16.1m to $9.4m in 2012. This reduction was a result of the completion of a

seven year drainage data collection process that concluded in October 2011 and now allows Council to

accurately state the drainage asset quality and backlog figure. An understanding of how the community views

drainage assets at a satisfactory standard has also assisted in a reduced requirement to bring the assets to the

satisfactory standard.

The buildings and other structures total has increased in each year and this has also occurred following a

comprehensive review of the condition of the assets. The Buildings for the Community SRV will assist to reduce

the backlog figure over the seven year plan with the impact likely to be seen in the later years of the seven year

program.

The Council’s updated LTFP commencing in July 2013 allocates additional funds to the renewal of infrastructure

assets that will eliminate the infrastructure backlog by 2023. These additional funds result in all of the Council’s

categories of assets being brought to a satisfactory condition within 10 years, as indicated by the strong Asset

Sustainability Indexes in the Asset Management Plans for each asset category.

Integrated Mobility of Works System (IMoWS)

The Integrated Mobility of Works System (IMoWS) is a Randwick City Council initiative which leverages

innovative electronic job allocation and mobile technologies to streamline and enhance the delivery of Council

maintenance services.

Prior to the solution being implemented jobs were created manually when required. Each supervisor printed

and distributed daily job sheets. The ganger organised the work for the day and manually filled out the job

sheet running sheets for each team member. These sheets were passed to the supervisor for manual data entry

to the asset system or the CRM system and the timekeeping system. If the ganger had other matters or issues

to report then this again was written down, passed onto the supervisor which was manually entered into the

service request system.

The IMoWS initiative was designed to deliver a number of business benefits:

• Reduce the time taken to resolve customer requests

• Reduce paperwork and increasing time spent on servicing the customer

• Improve scheduling and resource allocation to allow the Council to maintain high levels of customer

service

• Reduce the cost of fuel by optimising the type and schedule of work and routing through the local area

• Reduce vehicle down time by proactively managing maintenance schedules to help make sure that the

proper maintenance like oil changes and the like are performed on a regular basis

• Manage risk by knowing where vehicles are out of operating hours. Should they be stolen, they can be

tracked instantly and the location forwarded on to local police agencies for immediate recovery and

prosecution of the perpetrators

• Improve productivity by providing customised management reports to highlight areas which could be

streamlined or done differently

• Improve safety through an Emergency alert system

• Improve accuracy of work information for insurance claims and on levels of service

• Improved safety and efficiency with an in vehicle navigation system

• Supervisors are concentrating on customer service activity not paperwork.

• Seamless integration between Council’s business systems including Pathway CRM, Trim, Kronos and

TechnologyOne Financials and Payroll (interfaces) and the mobile platform for outdoor workers

reduces.

4. Structures and boundaries

4.1 Resource sharing

The Council seeks out partnership opportunities that can benefit our community and regularly assesses the

effectiveness of individual partnerships and resource sharing arrangements.

The Council has a number of shared services/resource sharing arrangements in place, including:

• the Eastern Sydney Libraries Cooperative

• South Sydney Regional Organisation of Councils (SSROC) and sub-groups

• Sustainability Schools Exchange

• Four Council Sustainable Housing Partnership

• ‘Surf Safe’ Education Program

• Working with eleven local councils, three rural and eight metropolitan, on the development and

application of a Local Government Carbon Trading Scheme, known as LGETS. The scheme is being used

to increase the understanding and opportunities for cooperation and collaboration by participating

councils on carbon trading principles and to share knowledge and experience on becoming more

energy efficient in the operations of local government

• ‘Three Council Ecological Footprint’ project with Waverley and Woollahra Councils.

The General Managers of Randwick City Council and Sutherland Shire Council established The Futurist Forum in

2011. This innovative forum brings key staff from the two councils together to look at the past social, technical,

economic, environmental and political factors that influence our communities and explore global trends.

Leading futurist and trend spotter Tim Longhurst facilitated the inaugural forum. During the past year this

Futurist Forum has regularly met to apply his futurist toolkit to our local government environment and a

number of innovative initiatives have been explored and implemented.

5. Governance

5.1 Highly skilled team respected by the State government and community

alike

Randwick City Council is directly accountable to its residents and the community. The Council tests its levels of

community satisfaction every two years through an independently managed telephone survey (1,200

demographically based sample) and use the results to help set the priorities for the annual operational plan.

The results of these surveys show increasing levels of community satisfaction with our performance as a

Council.

Community Satisfaction Survey Council uses the results of the Community Satisfaction Survey to measure the progress of the City Plan. Each

survey question is associated with one of the six themes and using the satisfaction level percentages Council is

then able to produce meaningful measures and targets. The process enables Council to see what we are doing

well and where we need to improve in relation to the Randwick City Plan.

The above data illustrates the overall progress trend and how each year Council is achieving results which place

it on the path to not only achieving its targets but also fulfilling the outcomes of the Randwick City Plan. The

graph below shows a positive trend towards the targets.

• Satisfaction with the performance of Council is high and the result of 67% in 2012 is consistent with the

result of 71% in 2010. This indicates that Council is maintaining its delivery levels.

• This result retains Council’s position above the Micromex LGA Benchmark (in terms of councils surveyed

by Micromex Research) for overall satisfaction, where Randwick Council is at a mean score of 3.7

(rounded) compared to 3.5 for the benchmark.

• Dissatisfaction with the Council’s performance remains low with 8% in 2012, which is consistent with the

7% in 2010.

Residents have a strong attachment to their community and local area demonstrating that the Council is

achieving its vision of building a ‘sense of community, as evidenced by the following statistics.

• 95% of the community rated their quality of life as very high

• 97% of residents think that the Randwick Council area is a good place to live

• 84% prefer to shop in their local neighbourhood

• 79% of residents said that they feel a part of my local community

• Two-thirds of residents have participated in major events in the past 12 months.

Awards and recognition The Council’s high standards of service to our community have been recognised by over 50 awards and

commendations by professional bodies and government agencies in addition to six awards to individual

outstanding staff.

Throughout the 2008-12 council term the Council maintained its strong position as a leader in local government

and continued to pursue excellence. Through the effective partnership between Council and the community,

the organisation has received awards for projects across a wide range of Council activities and programs.

AREAS OF ACHIEVEMENT INCLUDE:

2012 Local Government Managers Association Management Challenge

• Winners for NSW Region : Randwick City Council 2012 Institute of Public Works Engineering Australia

• NSW (IPWEA) Engineering Excellence Award

• Winner – Occupational Health and Safety - Workplace Health and Safety Workshop

• Highly Commended – Des Renford Aquatic Centre - Filtration

2011 Keep Australia Beautiful NSW – Clean Beach Challenge

• Water Conservation Award - Winner – State Award - Coogee Beach

• Overall Clean Beach Award – Winner – Clovelly Beach

• Overall Clean Beach Award – Highly Recommended – Coogee Beach

2010 The Australian Centre of Excellence for Local Government (ACELG) and the Australian Local Government

Women’s Association (ALGWA) - 50:50 Vision - Councils for Gender Equity Program

• Bronze Award accreditation for the promotion and encouragement of gender equity

2010 Planning Institute of Australia’s NSW Planning Excellence Awards: Social and Community Based Planning

category

• Commended: Randwick City Council for ‘An Integrated Planning Framework - Suite of community

Plans’

2010 Local Government Managers Association Management Challenge

• Runner up for NSW Region : Randwick City Council

• Winner: Pre-task challenge magazine: ‘Transparency’

2010 Australian Bicycling Achievement Awards

• Finalist: in the 2010 Australian Bicycling Achievement Awards.

Local Government and Shires Association - Excellence in the Environment Awards: Energy Saving and Climate

Protection

• Commended C Division: Randwick City Council’s Sustainable Home Makeover Program and Best Gift in

the World Campaign

2010 Energy Australia Heritage Awards

• Highly Commended: Randwick by Pauline Curby - Randwick - Celebrating 150 years of heritage

RH Dougherty Awards - Reporting to Your Community 2010 The International Association for Public

Participation (IAP2) Core Values Award for Public Participation Enhanced Decision-making.

• Winner: Randwick City Council’s Buildings for our Community

2010 The International Association for Public Participation (IAP2) Core Values Award for Robust Public

Participation Process.

• Highly commended: Randwick City Council’s Buildings for our Community

2010 The Local Government Managers Association (Australia) award for Excellence in Engaging and Serving

Communities.

• Highly commended: Randwick City Council’s Buildings for our Community

2010 NSW Premier’s History Award (NSW Community and Regional History Prize)

• Winner: Randwick by Pauline Curby

2010 Local Government and Shires Association Excellence in the Environment Awards: Energy Saving and

Climate Protection

• Commended C Division: Randwick City Council’s

Sustainable Home Makeover Program; Best Gift in the World Campaign 2010 RH Dougherty Awards

• Recognising leading practice in communication management

Presented by the Local Government and Shires Associations of NSW

• Winner Reporting to the community (population over 100,000): Randwick, by Pauline Curby

2010 The Cancer Council - Local Government Partnership Award for

• Winner: Local Government Association category for the Council’s outstanding efforts to reduce the

impact of cancer in the community.

2010 yourtutor e-learning Innovation Awards

• Highly Commended: for innovative strategies to support the local community and promote library

services.

2010 Keep Australia Beautiful, Sustainable Cities Awards

• Highly commended in the Dept of Environment, Climate

Change and Water NSW Environmental Education Award division. - Interior design awards

• Idea10 Best institutional interior, Round 1 shortlist - Randwick Branch Library refurbishment

• Idea10 Best sustainable project, Round 1 shortlist - Randwick Branch Library refurbishment

2010 National Australian Publisher’s Association - Annual Book Design Awards

• Commended (best designed reference and scholarly book): Randwick by Pauline Curby

2010 Energy Australia Heritage Awards

• Highly Commended: Randwick by Pauline Curby

• 2010 Sydney Water – Every Drop Counts Business Program – 5 Star Rating

• Winner – Highest 5 star rating for best practice water management

• 2010 Institute of Public Works Engineering Australia – Environmental Enhancement Project or Initiative

Awards

• Winner – Clovelly Bay Salt Water Harvesting

2009 Keep Australia Beautiful, Sydney region - Water Conservation Award - December

• Winner: Clean Beach Challenge 2010: Water Conservation, Clovelly Bay Salt Water Harvesting

2009 Sydney Water - Every Drop Counts Water Efficiency Awards 2009 - November

• Winner: Highest Percentage KPI Reduction, Pioneers

Park Stormwater Harvesting 2009 ALIA (Australian Library and Information Association) - NSW Marketing

Awards for Public Libraries - November 2009

• Highly commended: Library and Community Services

2009 Local Government Managers Association (Aust) NSW Div - Management Excellence Awards - Sept 2009

• Winner: Excellence in Sustainable Environment, Creating sustainable behavioural change through

community education initiatives

2009 Local Government Managers Association - Management Innovation - Sept 2009

• Winner: All Stops to Randwick

2009 Local Government Cultural Awards

• Winner: Library and Information Services, Division C for A Migrant’s Story

2009 Austswim National Awards - July 2009

• Winner: National Austswim Swim School of the Year, Des Renford Aquatic Centre

2009 Planning Institute of Australia NSW Award - July 2009

• Winner: Social and Community Based Planning category, Cultural Plan ‘A Cultural Randwick City’

2009 United Nations Association (Australia) - World Environment Day Awards - June 2009

• Winner: Excellence in Overall Environmental Management - Randwick City Council

• Winner: Meeting the Greenhouse Challenge - NSW Local Government Emissions Trading Scheme

2009 OverDrive - International OverDrive marketing awards - May 2009

• Third place: Library and Community Services

2009 Institute Public Works Engineers Australia - NSW Engineering Excellence Awards - May 2009

• Winner: Environmental Enhancement Project or Initiative - Remediation and stormwater irrigation of

Pioneers Park, Malabar

2009 Coalface Award - May 2009

• Highly Commended: NSW Annual Financial Statements 2007-08 Award

2009 ICLEI Cities for Climate Protection - June 2009

• Achieved Milestone 5 to complete the CCP program.

• 2009 Keep Australia Beautiful NSW – Clean Beach Challenge

• Litter Prevention Award – Highly Recommended – Coogee Beach

• Friendly Beach Award – Highly Recommended – Yarra Bay

• Friendly Beach Award – Highly Recommended – Maroubra Beach

• Resource Management Award – Highly Recommended – Maroubra Beach

2008 Local Government Managers Association – Management Excellence Award

• Ongoing organisational review and improvement relating to the implementation of the Business

Excellence Framework and the Promoting Better Practice review.

2008 Local Government and Shires Associations - Excellence in Environment Awards - December 2008

• Winner: Energy and water Savings Award - Retrofitting Des Renford Aquatic Centre for energy and

water savings

• Winner: Biodiversity Management Award - Randwick’s Biodiversity Conservation Program

• Highly Commended: Climate Change Adoption / Mitigation Award - NSW Local Government Emissions

Trading Scheme

2008 Planning Institute of Australia (PIA) - NSW Excellence in Planning Awards - October 2008

• High Commendation in Urban Planning: The Council’s Affordable Housing Strategy and Program

• High Commendation in Urban Design: The Council’s Design Ideas for Rejuvenating Residential Flat

Buildings Guide

2008 Australian Property Industry - Innovation and Excellence Awards - October 2008

• High Commendation: The Council’s Design Ideas for Rejuvenating Residential Flat Buildings Guide 2008

NSW Sustainable Water Challenge - September 2008

• Winner: Plant Nursery Water Sensitive Urban Design (WSUD)

2008 Clean Beach Challenge CBC Sydney Region

• Winner: Clovelly Beach, Coogee Beach

• Highly Commended: Maroubra Beach, Yarra Bay

2008 NSW Sustainable Water Challenge - Sept 2008

• Winner of the Commercial and Industrial category for Water Conservation Management in Council’s

Community Nursery

• Highly Commended: Financial Incentives category for Sustainable Makeover Rebate Program 2008

LGSA Dougherty Awards, August 2008

• Winner of Excellence in Communication for “Come and Have a Sticky Beak” Open Days

2008 Keep Australia Beautiful - NSW Sustainable Cities Awards - July 2008

• Winner: Grundfos Water Conservation Award, for saving 100 million litres of water in Randwick City

• Highly Commended: Biodiversity Conservation Award - Randwick City Council

2008 United Nations Association of Australia - World Environment Day Awards - June 2008

• Winner: Sustainable Water Management Award, All Water Recycling Initiatives

2008 Keep Australia Beautiful NSW – Clean Beach Challenge

• Overall Clean Beach Award – Winner – Clovelly Beach

• Environmental Protection Award – Winner – Coogee Beach

• Environmental Protection Award – Highly Recommended – Yarra Bay

• Community Partnership and Action Award – Highly Recommended – Maroubra Beach

• Friendly Beach Award – Highly Recommended – Coogee Beach

2008 Austswim NSW Award of Excellence

• Large Swim school of the year – Des Renford Aquatic Centre

• 2008 Aquatic and Recreational Institute

• Facility of the Year – Des Renford Aquatic Centre

• 2008 Every Drop Counts - Water Efficiency Awards

• Finalist – Des Renford Aquatic Centre

STAFF ACHIEVEMENTS

The Council’s commitment to responsible management extends to the individual achievements of Council staff.

The Council has a dedicated team that work diligently to perform for the community. The areas of individual

excellence that have been recognised by awards include:

• 2012 CPA Australia top 40 under 40 Young Business Leaders (Manager Corporate and Financial

Planning, Mitchel Woods)

• 2012 Australian Financial Review – Financial Manager of the Year (Manager Corporate and Financial

Planning, Mitchel Woods)

• 2012 Royal Humane Society Bronze Medal Award for Bravery (Beach Lifeguards: Peter Halcro and Paul

Moffatt)

• 2012 Australia Day Community Service Awards – Mayors Medal of Excellence (Beach Lifeguards: Peter

Halcro, Paul Moffatt, Joshua Reading, Duncan Scott and Patrick Falzon)

• 2012 Minister’s Award for Women in Local Government (Internal Auditor, Vanessa Creighton)

• 2009 Local Government Managers Australia - Finalist Young Manager of the Year (Manager Corporate

and Financial Planning, Caroline Foley)

5.2 Councillor development

The City Plan aligns with the Destination 2036 guidelines demonstrating our understanding of the crucial role

local government plays in delivering better outcomes for the community. The City Plan outlines how the Council

will ensure the highest standard of civic leadership to attract and retain high quality councillors to serve and

lead the community.

Randwick

Mayoral + Councillors Fees ($000) $359

Number of Councillors 15

Number of Wards 5

Number of Councillors/Ward 3

Population - 2011 Census 128,989

Population per councillor 8,599

Area (sq mtr) 37.4

Local representation and the interaction between elected representatives and the community is the corner

stone of local government. Residents pay rates to local councils and expect their local council, in return, to

deliver a range of services to them. As local issues become more complex, elected representatives are under

more pressure (with respect to time and knowledge) from local communities. This needs to be considered in

the context of Councillor remuneration and training.

Randwick Council works strenuously to maximise its engagement with the local community and to give

residents the opportunity to participate in the decisions that affect their lives and their environment. In 2008,

the Council adopted its policy to guide and direct community consultations— the Community Consultation

Principles and Consultation Planning Guide. This Guide gives staff an easy and practical tool to frame and

implement consultation plans.

The Council communicates and consults with the community using direct mail, surveys, web-based consultation

and social media tools, focus groups, quarterly community newsletters, exhibitions and displays, on-site

meetings, open days, community meetings, project newsletters. The use of web based consultations through

the Your Say Randwick site continues to expand and attract community engagement in Council projects. The

Council also convenes working and reference groups of residents and stakeholders for specific projects on a

need basis.

The Council supports 12 precincts, which are open to all residents and ratepayers. Precincts provide

opportunities for residents to become involved in decisions that affect their area. Representatives of precincts

meet quarterly with the Council’s General Manager to discuss issues of significance. Precincts help Council

develop our Budget and Operational Plan by suggesting upgrade and improvement projects that would benefit

the community. The Council also hosts regular meetings with representatives from the City’s Chambers of

Commerce and the Service Clubs in Randwick.

Professional development for new councillors and mayors In the lead up to the September 2012 local government elections, Randwick City Council participated in a

working group on the development of a state wide councillor induction program.

Subsequent to the elections the Council developed and delivered a comprehensive councillor induction

program that involved councillor briefing sessions over a two (2) month period. The distribution of

documentation to the councillors as part of the induction program was all managed electronically using the

Council Dashboard App (referred to elsewhere in this report).

In addition, Council has recently included in its ‘Councillors’ Expenses and Facilities Policy’ ongoing membership

of the Australian Institute of Company Directors to encourage councillors to develop skills that will assist in

better understanding the operational complexities of managing and leading a multimillion dollar organisation.

Randwick Council has also set aside a budget for councillors to attend relevant conferences and participate in

the ongoing professional development programs provided for councillors by the Division of Local Government

(Department of Premier and Cabinet), the Local Government Association and other professional bodies.

Candidates fully aware of their potential responsibilities as a councillor Prior to the September 2012 local government elections, Council re-launched its award winning Online Guide

for Councillors and Candidates. The interactive guide provides information about local government and

Randwick City Council including the many services provided to the community.

The new online guide was made available for candidates prior to the September 2012 elections to help

candidates understand:

• Randwick City, including its history and direction over the next 20 years

• Randwick City Council's policies

• the impact councillors have on Council's services, policies and strategic direction.

The guide was available for downloading from the Randwick City Council website and can be viewed via either

PC or iPad.

The online guide was also used as a tool for training new councillors as part of Council’s Councillor induction

process after the elections.

5.3 Constructive relationships

Strong governance framework Our internal processes are robust.

The City Plan demonstrates the Council’s commitment to best practice in its own governance, and to providing

leadership in environmental and social sustainability. To manage responsibly, we value business excellence,

leadership, innovation and sustainability. Our responsible management is demonstrated by the integrity of our

governance systems, our financial management, how we value our staff, and how we sustainably manage our

community’s assets.

We have a strong commitment to continuous improvement as well as being flexible and responsive to change.

We are consistently identifying opportunities to engage staff more meaningfully, deliver improved services to

our community and contribute to the development of the local government sector.

Council has adopted the Business Excellence Framework that provides a systematic and structured framework

that enables the development and improvement of our management and leadership systems. The success of

this strategy led to Council being awarded the Bluett Award in 2006, an annual award that is specific to NSW

councils and is only awarded to one municipal council and one shire council per year. Council also received the

Local Government Managers Australia Gold Award for management excellence in 2008.

‘Councillors also confirmed the commitment to sustainability by signing the International Earth Charter in 2008

that commits to sustainability, democratic and governance principles that was signed by more than 3,500

organisations worldwide.’ (NSW Treasury Corporations (TCorp) ‘Financial Assessment, Sustainability and

Benchmarking Report - 21 November 2012’. Page 24)

5.4 Professional development for staff

Council and the Australian Centre for Excellence in Local Government (ACELG) have formed a partnership that

enables Council staff to receive credit towards the Graduate Certificate in Local Government Leadership by

completing select learning and development programs offered at the Council.

Council’s award-winning ‘All Stops to Randwick’ provides training programs for all staff on their corporate and

legal obligations. In addition, Council has a range of learning and development and leadership initiatives in place

to enhance the productivity and performance of our workforce. These initiatives include ‘step up’ and ‘next

step’ programs and an ‘ICARE About Learning’ publication to promote internal and external learning and

development programs. This publication is supported by a team of Learning and Development officers to assist

and promote a learning environment within the organisation.

In 2009 Randwick City Council launched the inaugural NSW council sister cities Corporate Leadership Cup. This

challenge bought together employees from Temora Shire, Sutherland Shire, Harden Shire, City of Canterbury,

Cobar Shire and Randwick City Council to build on their leadership skills. This highly successful development

program was designed to support industry growth and sustainability by building a workforce that ensures it has

the best people ready to meet current and future leadership needs.

Council’s Corporate Obligations Package, detailing our employee obligations such as delegations, conflict of

interests and Customer Service Charter, is provided to all new employees. These obligations are reinforced

through annual corporate training activities.

Resource and knowledge sharing Through the establishment of relationships with Burwood, Marrickville and Waverley Councils we can offer an

increased variety and frequency of courses whilst keeping our costs minimal. This increased efficiency has a

twofold benefit, responsible financial management while increasing the percentage of fully completed Learning

and Development plans

The Council’s Learning and Development department not only build relationships with other local government

authorities but with other small, medium enterprises, government agencies and large corporations. Sharing

ideas, challenges and information is conducive to developing an innovative and creative environment.

Knowledge sharing is achieved by networking face-to-face and online, attending forums and other industry

conferences. We have worked with NSW Police the delivery of custom training and working collaboratively on

leadership programs with NSW Police strengthens our relationship through the sharing of ideas and experiences

via a learning program, and improves delivery of services to the local government area.

The Council also works collaboratively with the community groups within the local government area for delivery

of training programs. The inclusion of community groups in learning programs delivered for Council staff not

1. Executive Vision and

Leadership on Engagement

2. A Measuring

Tool

3. Organisational

Wide Consultation

4. Action Plan & Deliver

only strengthens community ties but increases staff understanding of the community issues. Community groups

with limited resources benefit by gaining access to a high level of learning and training programs.

Employer of Choice recognition Randwick City Council has created an innovative and accessible framework for local government to become an

employer of choice. Between 2011 and 2012, Randwick City Council designed and implemented a framework

that saw an increase in employee engagement levels by 15 per cent. This came at an expense of $18,500,

returning approximately $376,000 back to the organisation.

The Division of Local Government has set a clear direction for councils to show leadership within local

communities as employers of choice. We have risen to this challenge in an innovative and sustainable way,

creating a framework applicable to all NSW local governments.

Council created a framework with four key components. These are a measuring tool, executive vision and

leadership on engagement, organisational wide consultation and an action plan with deliverables. This

framework is unique for a number of reasons:

1. A doubled approach – a focus from the top down, but also an equal focus from the bottom up.

2. Looked at measurable actions, rather than visions, statements or expectations.

3. Create transparent plans, and then go beyond them.

In August 2011 we embarked on a consultation process that involved the voice of staff across the organisation:

over five days 480 staff participated in 25 workshops focused on how to make Randwick City Council a great

place to work. This grass roots process allowed our diverse staff from every level of the organisation to share

their views and ideas with their colleagues and come up with valuable solutions together.

We were the first NSW Council to participate in the Aon Hewitt Employer of Choice Survey.

6. A compact for change and improvement

6.1 Efficiency and focus on outcomes

Integrated Planning and Reporting Framework

Randwick City Council was one of the first (Group 1) councils in NSW to deliver its IP&R framework to the

community and the Division of Local Government.

Council adopted its first Community Strategic Plan in June 2006 – the 20 year Randwick City Plan, which was

founded on comprehensive community consultation and research. The Randwick City Plan reflects our

community’s long term aspirations and needs, and outlines the clear directions we will take to shape our city’s

future. The success of this plan lies with the strong working partnerships Council creates with our community

and key organisations.

The Plan is a strategic document that guides and coordinates the Council’s activities over a 20 year period.

Together with our long-term planning for financial management, workforce management and asset

management it ensures we have a cohesive and effective way forward. Council’s Integrating Planning

Framework was introduced with the adoption of the initial Randwick City Plan and is represented in the

following diagram:

With the election of a new Council in September 2012 there has recently been an extensive community

engagement process to review the City Plan and prepare a new delivery program and resourcing strategy. With

a revised suite of documents being adopted at the 26 February Council Meeting, as follows:

• The 20-Year Randwick City Plan

• The Resourcing Strategy Executive Summary 2013-23

• The Long Term Financial Plan 2013-14 to 2022-23

• The Asset Management Strategy 2013-23

• The Asset Management Plans 2013-23

• The Workforce Plan 2013-23

Council has also resolved to apply to IPART for a special variation to rates income of 3.59% per annum for each

year of the four-year Delivery Program (2013-17), in accordance with modelling in its Long Term Financial Plan.

‘General Sustainability

Council has addressed the challenge of sustainability within their Community Strategic Plan (CSP) and other

IP&R documents. They have utilised the ‘Principles for Sustainable Cities’ that are a high level set of aims being

used by councils and other governing bodies throughout the world. These were devised within the United

Nations Environment Program (UNEP) to assist cities in sustainable development. These 10 principles integrate

well within one of Council’s six themes of ‘Responsible Management’ that focuses on leadership in

sustainability.’ (NSW Treasury Corporations (TCorp) ‘Financial Assessment, Sustainability and Benchmarking


6.2 Strategic capacity examples

Environmental sustainability Following almost a decade of Council's Sustaining our City initiative, funded by a dedicated environmental levy,

Randwick has undergone a transformation in its thinking and implementation of environmentally sustainable

projects. This includes projects achieving savings of more than 450 million litres of townwater in Council

operations; installing solar panels at more than a dozen Council and community sites; upgrading and replacing

sections of its coastal walkway for millions of visitors across Sydney to enjoy; restoring habitat for wildlife

through the planting out of native trees, grasses and shrubs; and actively engaging with residents, businesses

and schools to assist them in taking action and making their own sustainability changes. Council's sustainability

efforts have been recognised nationally and internationally and its dedicated funding has been able to attract

more than $5 million in additional external funding to strengthen our sustainability efforts. Regular events such

as the annual Eco Living Fair, one of the largest in the metropolitan area, the Marine and Coastal education

activities, repeated three times a year, and comprehensive Sustainable Living courses and workshops attract

thousands of participants a year and have become major attractions in the environmental calendar, not only for

Randwick residents but residents across the Eastern Suburbs.

The Minister for Local Government approved Randwick Council’s special environmental levy for the period July,

2004 to June 2009 and approved the continuation of the levy from July 2009 to June 2014 based on the success

of the initial five year program.

Environmental sustainability trends for 2012 are as follows:

Comprehensive Local Environmental Plan The Randwick City Plan guided the review of the Council’s Local Environmental Plan (LEP). The outcomes and

directions of the City plan broadly informed the LEP and they require various items in it. The section, Our City –

A Closer Look, outlines the local framework and details the directions along with State and Federal issues for the

LEP.

Randwick’s new comprehensive LEP commenced on 15 February 2013. Preparation of the comprehensive LEP

was informed by a series of six (6) land use discussion papers for Industrial lands, Special Uses, Open Space and

Environment, Education and Health Specialised Centre Precinct, Business Centres and Residential Uses. These

were exhibited for community comment throughout 2010 and 2011.

The discussion papers provided an additional, non-statutory consultative process prior to the statutory

exhibition process of the draft comprehensive LEP. Preparation of a comprehensive LEP is recognised in the

Randwick City Plan as a key tool for its implementation by determining how the City is developed. While not a

statutory requirement, the draft comprehensive LEP is consistent with the directions of the City Plan, as was

detailed in each discussion paper.

6.3 Strategic capacity

The Council’s integrated planning focus has provided a platform to work collaboratively as equal partners in the

three spheres of government. As the plan is so closely aligned with the State Plan and Federal Government

policies on economic and environmental sustainability, the Council has been able to work within the framework

of the plan securing resources for its implementation.

As outlined above the Council has been working strategically with the Local Government Association and the

Division of Local Government in disseminating information, sharing knowledge and championing strategic

thinking in local government.

Part B – Eastern Sydney Structural Reform

Part B – Eastern Sydney Structural Reform

1. Eastern Sydney Structural Reform

While the Council’s preference is to retain its current boundaries, evidence based options for structural change

have also been considered. In December 2012 the Council resolved “…if Botany Council is to be absorbed into

an expanded City of Sydney Council, Randwick, Waverley and Woollahra Councils should be kept separate as a

distinct eastern suburbs council area.” Furthermore the Council resolved “that the Port Botany facilities be

retained in whatever eastern suburbs council configuration emerges…”.

The general managers of Waverley, Woollahra and Randwick councils formed a Local Government Reform

Working Party. The General Manager has also met with the General Manager of the City of Botany Bay Council

to discuss the reform process.

The Council engaged SGS Economics and Planning to undertake an independent strategic and financial

assessment of potential options for structural change to local government within Eastern Sydney, focusing on

the Local Government Authorities (LGAs) of Woollahra, Waverley, Randwick and Botany Bay. Four options were

developed:

Table 1. Options for structural change

Option 1 Option 2 Option 3 Option 4

Randwick + Waverley + Woollahra

Randwick + Waverley + Woollahra + All of Port Botany and associated industrial areas

Randwick + Waverley + Woollahra + Botany (excl the airport and associated industrial areas connected to south Sydney)

Randwick + Waverley + Woollahra + Botany + All of the airport

Figure 31 Page 49 Figure 32 Page 50 Figure 33 Page 51 Figure 34 Page 52

Source: SGS Economics and Planning, Eastern Sydney Local Government Review, February 2013

2. Overview of each Council

The geography, characteristics, community profile, and community strategic plan objectives for each LGA were

analysed to determine where similarities and differences existed and to ensure the boundaries of each option

did not create conflict. The analysis identified that while there are some differences across the subregion in

terms of community profiles, the communities have similar visions as identified in each council’s community

strategic plan.

3. Strategic context

The options for structural change evolved primarily from the strategic assessment of the Eastern Sydney

subregion. SGS reviewed the outcomes of previous local government reviews, the current local government

reform discussions and reports, and the strategic planning view for the Eastern Sydney subregion set out in the

NSW State Government’s Sydney Metropolitan Plan and the NSW Long Term Transport Master Plan.

The various local government reform agendas have identified a number of key elements to both an effective

system of local government and logical LGA boundaries. These elements were used in the multi criteria

assessment of each option to determine the preferred structural changes for Eastern Sydney.

The draft Sydney East Subregional Strategy (2007) contains the LGAs of Woollahra, Waverley, Randwick and

Botany Bay. The 2031 vision for the subregion is as follows:

• A thriving economy bolstered by expansion of Australia’s primary economic gateways (Port

Botany and Sydney Airport)

• Protected and enhanced Employment Lands and increased employment opportunities in

Strategic Centres (25,000 new jobs forecasted by 2036, recognising the subregion’s important

role in terms of the Global Economic Corridor)

• Superior quality of life and amenity for residents, visitors and tourists and will continue to be

one of Australia’s premier tourist destinations

• Diverse supply of housing to meet the needs of the changing demographics of residents and

the workforce (with 23,000 new dwellings by 2036), and

• Enhanced range of public transport with improved east–west connections to the sub-region

(further expanded upon in the NSW Long Term Transport Master Plan including ‘Sydney’s

Light Rail Future’)

A strong partnership between the State and local governments, integrated planning and provision of supporting

spaces and infrastructure will be essential to achieving this vision.

The strategies for the future of both the Eastern Sydney subregion and the City of Sydney subregion have been

taken into consideration when determining appropriate boundaries for each option. They have also been

consulted in the assessment of the preferred options for structural reform.

4. Financial analysis and modelling

Financial models were prepared for each option for a ten year period based on Randwick Council’s current

service costs. The analysis found that, on a per capita basis, Randwick is able to service its population most cost-

efficiently, with an average service cost of $858 per capita. This is 45 per cent lower than the per capita cost in

Waverley and 33-35 per cent lower than the cost in Woollahra and Botany Bay:

Table 2. Service costs by function and activity

4.1 Assumptions

A number of assumptions were applied to the modelling including:

- Randwick’s current per dwelling service costs were applied, where applicable, to the amalgamated

Council from year 4 (assuming the amalgamation process would take 3 years)

- Rates and charges were based on the current weighted average rate for the amalgamated group – so

there is no increase in the total revenue collected above the annual rate peg

- Capital expenditure is based on the current plans outlined in each Council’s current Long Term

Financial Plan

- Funds have been allocated towards the cost of bringing all assets to a satisfactory standard (“asset

quality upliftment cost”) within 10 years

- Funds have also been set aside to repay Waverley and Woollahra’s debt (respectively $3.2m and $6m

as at 30 June 2012).

4.2 Results

The financial analysis indicates that if the councils continue to operate as individual LGAs the group would

generate a very weak surplus of $23.3m over 10 years, with no scope to address the infrastructure backlog of

$70.8m nor Waverley and Woollahra’s current debts without creating a $51.7m deficit over the same period.

The only way such a deficit could be funded would be through increasing rates, the sale of assets (if available),

drawing on reserves (if available) or borrowing more funds (unsustainable when there is no way of servicing the

debt).

In contrast, all of the options for structural change result in strong surpluses, even after allowing for funds to

eliminate the infrastructure back log and debt repayments.

The following table compares the projected financial results for each option with the results should the councils

remain separate LGAs (Base Case):

Table 3. Present values comparison of options - 10 year period (2011-20)

The following figure compares projected financial flows as they occur over the 10 year period of the analysis.

Figure 1. Net surplus – after operating and capital expenditure (excl asset quality upliftment cost and loan

repayments)

($40,000)

($20,000)

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Am

ou

nt

pe

r a

nn

um

($ t

ho

usa

nd

s)

Base case Option 1 Option 2 Option 3 Option 4 Source: SGS, (2012).

4.3 Sensitivity testing

In order to test the robustness of the modelling results, the following scenarios were constructed:

• Lower rates and annual charges: 10 per cent and 20 per cent reduction

The modelling applies the current rate structure to each option, with annual increases based on a forecasted

2.8 per cent rate peg. This scenario tests a 10 per cent and 20 per cent reduction in the rates and annual

charges forecasted.

The following table shows that even with a 10 per cent reduction each option maintains a strong surplus:

Table 4. 10 per cent lower rates and annual charges income (2011-20)

Includes net proceeds from the sale of surplus depots

Includes net proceeds from the sale of Waverley’s Zetland depot

When rates and charges income is reduced by 20 per cent, a small surplus is still achieved in each option as

indicated below.

Table 5. 20 per cent lower rates and annual charges income (2011-20)

• Higher service costs: 10 per cent and 20 per cent increase

The financial models have been based on Randwick’s current service costs per dwelling from year 4 for the

majority of the operating expenses for the amalgamated group. Should costs be 10 per cent or 20 per cent

higher than forecasted all options will still maintain a strong surplus as shown in the following tables.

Table 6. 10 per cent higher average service costs (2011-20)

Table 7. 20 per cent higher average service costs (2011-20)

4.4 Amalgamation transition period

The modelling assumes that the amalgamation process takes 3 years, with the amalgamated Council working

progressively towards the economies of scale achieved by year 4. If the councils are provided with a longer

period in which to plan for the amalgamation date, the amalgamated Council may be able to transition to the

lower service cost structure within 12 months. As the table below indicates, this results in the new Council

achieving greater surpluses from year 2 rather than year 4, hence a greater surplus over the 10 year period.

Table 8. Duration of amalgamation process – one year with transition arrangements (2011-20)

4.5 Multi criteria assessment A multi criteria assessment (MCA) was used to evaluate the options. The analysis tested each option against key

factors identified by the Local Government Review Panel in their report “Better, Stronger Local Government –

The Case for Sustainable Change” (November 2012), including the results of the strategic and financial

assessments outlined above.

Options 2 and 3 resulted in the highest scores in this evaluation:

Figure 2. Multi criteria assessment weighted score

Conclusion

Conclusion

Randwick City Council is an award winning organisation with high community satisfaction rates, a strong

investment in asset management, and has been assessed as well managed and financially sustainable in the

long term by NSW Treasury.

The Council is in a very sound position in terms of its long term sustainability. The Council has a demonstrated

track record of operating surpluses and these are forecast to continue; sound liquidity and this is forecast to

continue; a strong focus on sustainability; forecast capital expenditure well above benchmark for supporting an

acceptable standard of assets; and significant capacity to undertake debt to deal with any unexpected adverse

financial situations.

The Council has demonstrated that it has the necessary strategic capacity and foresight to deal with future

challenges. We have had a community strategic plan in place since 2006 and have been working with the

community to implement and refine the plan, as required. The Council also has in place a number of strategic

alliances with the State Government and other major industry partners for the benefit of the community.

While the Council’s preference is to retain its current boundaries, evidence based options for structural change

within the Eastern Sydney subregion have been identified and analysed. A high level analysis conducted by SGS

Economics and Planning was undertaken identifying options focused on amalgamating with Woollahra and

Waverley councils plus the addition of part or all of the City of Botany Bay Council including the airport.