Agenda of Finance and Governance

Georges River Council – Finance and Governance Committee Meeting - Monday, 12 March 2018 Page 2

Committee Reports

Item: FIN007-18 Advice on Costs and Status of Council's Court Proceedings - February 2018

Author: General Counsel

Directorate: Office of the General Manager

Matter Type: Committee Reports

Recommendation

That the information be received and noted.

Executive Summary

1. Advice on Council’s Court Proceedings for the period 3 February 2018 to 5 March 2018 is contained within this report.

2. Total costs to date for the 2017/18 financial year for Court proceedings are $327,003. This is within Council’s legal budget of $1million.

3. Total legal costs recovered to date for the 2017/18 financial year are $183,938.

4. Total costs for Court proceedings in the 2016/17 financial year were $736,241 [$575,161 (Hurstville) and $161,080 (Kogarah)].

Background

5. The current Court Proceedings for the reporting period are broken down as follows:

Supreme Court

· 1 x Application under s88K for property easements (Telado) over Council’s land

Land and Environment Court

· 19 x Class 1 (Merit/DA)

· 3 x Class 4 Proceedings (including 2 x Contempt of Court proceedings)

District Court

· 1 x Workers Compensation

Local Court

· 15 x Prosecutions

NSW Industrial Relations Commission

· 1 x Dispute (United Services Union)

NSW Civil & Administrative Tribunal

· 1 x Application (Briscoe-Hough v Tegg & Ors)

Cost Recovery

· 7 x cost recovery matters

New Matters

6. One new matter was received during the reporting period: Land and Environment Court Class 1 appeal (Touma Property Developments Pty Limited).

Finalised Matters

7. Two Land and Environment Court Class 1 appeals (AMIA Investments Pty Limited and D R Design NSW Pty Limited), one Class 4 Land and Environment Court appeal (Australia Consulting Builder Pty Limited) and one costs recovery matter (CC Builders Pty Limited).

Current Table

8. The Court Proceedings current for the reporting period for Council are set out below. The external costs include both external legal and expert consultants’ fees.

No.	Property Address / Applicant / Proceedings Number	Description of Matter	Status / Critical Dates	External Costs to Date From 2017/18 FY
Land and Environment Court Proceedings – Class 1 Appeals
1	58 and 60 Blackshaw Avenue MORTDALE Applicant: Marion McDowell and Associates Proceedings No. 241879 of 2016	Class 1 Appeal against Council Order for demolition of existing unauthorised structure.	Judgment handed down on 13 June 2017. Council’s order was upheld. Compliance period extended to 13 September 2017, pending outcome of building certificate application. Building certificate application refused. Appeal lodged. Awaiting outcome of appeal to commence enforcement.	$7,765.00
2	70 – 78 Regent Street, Kogarah Applicant: Regent Land Pty Limited ATF Regent Land Unit Trust Proceedings No. 215083 of 2017	Class 1 Appeal against deemed refusal of DA 2017/111 for the demolition of existing buildings over eight lots (5 properties), amalgamation of the lots and development of an 11 storey residential flat building with 127 apartments and 145 car parking spaces.	Matter not resolved at S34 Conference on 6 December 2017. Matter has now been listed for hearing on 5 and 6 July 2018. External urban design, planning and traffic consultants briefed.	$28,848.00
3	11 Stanley Street & 28 – 36 Victoria Street, Kogarah Applicant: No. 1 Victoria Dragons Pty Limited Proceedings No. 217118 of 2017	Class 1 Appeal against deemed refusal of DA9/2017/110/1 for demolition of existing buildings and construction of a residential flat building comprising 96 residential dwellings over 3 levels of basement parking.	Matter not resolved at S34 Conference on 4 December 2017. Matter listed for hearing on 5 and 6 July 2018. External urban design, planning, heritage and traffic consultants briefed.	$23,022.00
4	2 – 10 Palmerston Street, Kogarah Applicant: Palmerston Dragon No. 1 Pty Limited Proceedings No. 217105 of 2017	Class 1 Appeal against deemed refusal of DA9/2017/112/1 for demolition of existing buildings and construction of a residential flat building comprising 67 residential dwellings over 2 levels of basement parking.	Matter not resolved at S34 Conference on 5 December 2017. Matter now listed for hearing on 15 & 16 August 2018. External urban design, planning, heritage and traffic consultants briefed.	$14,040.00
5	41 – 47 Princes Highway, Kogarah Applicant: GCK Investments Pty Limited Proceedings No. 235909 of 2017	Class 1 Appeal against refusal of DA183/2016 for the demolition of existing buildings and construction of a 10 storey mixed use development consisting of ground floor commercial tenancy and 51 residential apartments over basement car parking.	Matter not resolved at S34 Conference on 19 December 2017. Matter now listed for hearing on 28 & 29 August 2018. External urban design, planning, heritage and traffic consultants briefed.	$17,709.00
6	58 and 60 Blackshaw Avenue MORTDALE Applicant: Marion McDowell and Associates Proceedings No. 294745 of 2017	Class 1 Appeal against refusal of Building Certificate Application No. 149D2016/0038 lodged on 21 September 2016 and refused on 20 September 2017.	Matter listed for contested hearing on 2 March 2018. Applicant ordered to carry out structural rectification works to the warehouse building within 28 days, to pay $7,000 for contribution to storm water works and to obtain Sydney Water consent relative to the sewer assets within 3 months.	$9,504.00
7	1 – 5 Treacy Street, Hurstville Applicant: G R Capital Group Pty Limited Proceedings No. 304530 of 2017	Class 1 Appeal against refusal of DA2017/0205 for the construction of five additional levels (31 apartments) to an approved mixed development under Development Consent DA2014/0183 (as modified)	Matter is listed for hearing on 29 & 30 May 2018. External town planner and traffic consultant briefed.	$15,075.00
8	6 The Crescent, Kingsgrove Applicant: One Funds Management Ltd ATF Kingsgrove Property Trust Proceedings No. 2017/309712	Class 1 Appeal against actual refusal of DA2017/0151 for construction of new off-street entry to premises along Vanessa Street, Kingsgrove.	Matter is listed for S34 Conference on 22 March 2018.	$0
9	16 – 20 Tooronga Terrace, Beverly Hills Applicant: Nicole Saoud Proceedings No. 328848 of 2017	Class 1 appeal against refusal of DA 2016/0230 seeking development consent for retention of existing development fronting Tooronga Terrace, Beverly Hills and construction of a 3 storey building at rear for use as a boarding house with parking at ground level	Matter is listed for S34 Conference on 30 April 2018. External town planner and traffic consultant briefed.	$4,290.00
10	70 Carwar Crescent, Carss Park Applicant: Belinda Sun Proceedings No. 335225 of 2017	Class 1 appeal against refusal of DA263/2016 for demolition of existing structure and construction of a new 2 storey attached dual occupancy with sub floor garage.	Matter is listed for S34 Conference on 1 May 2018.	$250.00
11	27 Newman Street, Mortdale Applicant: Morgan Ng Proceedings No. 343784/2017	Class 1 appeal against deemed refusal of DA2017/0121 for demolition of existing structure and construction of a new boarding house (12 rooms) and carport.	Matter listed for S34 Conference on 8 May 2018.	$0
12	849 King Georges Road, South Hurstville Applicant: Urban Link Pty Limited Proceedings No. 351493 of 2017	Class 1 Appeal against refusal of DA for demolition of existing structures and construction of a 4 storey flat building with 13 units and basement parking.	Matter is listed for S34 Conference on 16 May 2018. External planner briefed.	$0
13	14 Wright Street, Hurstville Applicant: Prajna Monastery Australia Incorporated Proceedings No. 2017/353101	Class 1 appeal against Council’s refusal of DA 2017/0384 for demolition of an existing single storey dwelling and construction of a place of worship (Buddhist monastery).	Matter listed for hearing on 21 & 22 May 2018. External traffic and noise consultants briefed.	$9,168.00
14	2 – 10 Woniora Road, Hurstville Applicant: Stellar Hurstville Pty Limited Proceedings No. 2017/370324	Class 1 Appeal against deemed refusal of DA262/2016 for demolition of existing buildings and ancillary structures and construction of a new mixed use commercial residential building comprising three basement levels containing car parking and storage, ground floor commercial and basement parking and 12 residential apartment levels containing 112 apartments.	Matter has been listed for S34 Conference on 15 June 2018.	$0
15	2 – 4 Gladstone Street & 10 Victor Street, Kogarah Applicant: Vortex Property Group Proceedings No. 2017/377046	Class 1 appeal against Council’s deemed refusal of DA 2017/0519 for demolition of existing structures and construction of eleven (11) storey residential flat building containing thirty eight (38) units with basement car parking at 2 – 4 Gladstone Street and 10 Victor Street, Kogarah.	Matter has been listed for S34 Conference on 11 July 2018. External traffic and urban design briefed.	$0
16	832 – 836 King Georges Road & 51 Connells Point Road, South Hurstville Applicant: Cash Warwick Pty Limited Proceedings No. 2017/384934	Class 1 appeal against Council’s deemed refusal of modification application no. MOD2017/0169 seeking to modify development consent structures and construction of a part 5, part 7 storey residential flat building containing sixty seven (67) units to provide for internal reconfigurations and addition of a storey to building B at 832-836 King Georges Road and 51 Connells Point Road, South Hurstville.	Matter listed for S34 Conference on 25 June 2018.	$7,119.00
17	35 – 37 Empress Street, Hurstville Applicant: Tribeca Property Developers Pty Limited Proceedings No. 2017/385110	Class 1 appeal against Council’s deemed refusal of DA 2017/0496 lodged on 20 October 2017 for the demolition of existing structures and construction of a four (4) storey residential flat building comprising of fifteen (15) units with partially below ground basement car parking at 35 – 37 Empress Street, Hurstville.	Matter listed for S34 Conference on 29 May 2018.	$0
18	2D The Crescent, Kingsgrove Applicant: W & J Lee Property Investments Pty Limited Proceedings No. 2018/9499	Class 1 appeal against Council’s refusal of DA 2016/0107 for the construction and operation of a Resource Recovery Facility at 2D The Crescent, Kingsgrove.	Matter listed for directions on 13 March 2018.	$0
19	5 – 9 John Street, Kogarah Bay Applicant: Touma Property Developments Proceedings No. 2018/38420	Class 1 appeal against Council’s deemed refusal of DA 2017/0663 for demolition of existing structures and construction of a six storey residential flat building with 44 units with associated 2 levels of basement parking.	Matter listed for first directions hearing on 6 March 2018.	$0
	Subtotal			$136,790.00
Land and Environment Court Proceedings – Class 4 Proceedings
1	84D Roberts Avenue MORTDALE Parties: Romanous Developments Pty Ltd Proceedings No. 40883 of 2013	Court orders entered on 24 July 2015 for Class 4 proceedings requiring remediation works under supervision of independent site auditor.	Respondent sought variation to complete works the subject of DAs for Wall and Drainage Works (as defined) which were to be completed in December 2017. Respondents have advised that works 85-95% complete. Subject to on-going monitoring of orders (mid-March 2018).	$3,983.00
2	117 Kyle Parade, Kyle Bay Parties: Michael Stanley Lowe Proceedings No. 127157 of 2017	Class 4 commenced in relation to removal of crane	Matter heard 16 and 17 October 2017. Orders made for crane to be removed by 17 April 2018 and costs of $30,000 to be paid by 17 February 2018. Costs received. Awaiting removal of the crane.	$19,054.00
3	977 Forest Road, Lugarno Parties: The Congregational Christian Church in Samoa, Parish of Sydney Incorporated and Taeipo Malifa Proceedings No. 2018/23816	Proceedings commenced against Respondents for a declaration that the First and Second Respondents have each breached the Protection of the Environment Operations Act 1997 by failing to comply with prevention notices given to each of them under section 96 of that Act by Council on 19 June 2017 in respect of premises known as 977 Forest Road, Lugarno for the purpose of a place of public worship.	Matter listed for mediation on 21 March 2018.	$4,602.00
	Subtotal			$27,639.00
Supreme Court
1	296 Forest Road and Diment Way, Hurstville Applicant: Telado Pty Limited Proceedings No. 299079 of 2017	Applicant seeks s88K order for property rights in perpetuity over Council land known as Central Plaza.	Evidence filed. Mediation fixed for 6 April 2018. Hearing fixed for 25 and 26 June 2018.	$71,441.00
	Subtotal			$71,441.00
District Court
1	Proceedings commenced by former employee for work injury damages		StateCover has issued a response to the Work Injury Damages Claim declining liability. Statecover has served pre-filing defence. Conciliation expected in April/May 2018 followed by a hearing. Awaiting advice from Statecover.	$0 (StateCover funded)
	Subtotal			$0
Local Court Proceedings
1	13-17 Peake Parade PEAKHURST Parties: Oxford (NSW) Pty Ltd	Appeal against Penalty Notice for breaches of development consent. Defendant pleaded not guilty.	Defendant has been found guilty and judgment to be delivered on 25 May 2018.	$2,277.00
2-6	13-17 Peake Parade PEAKHURST Parties: Oxford (NSW) Pty Ltd	Appeals against five Penalty Notices for breaches of development consent and one water pollution offence under POEO Act.	Defendant has been found guilty and judgment to be delivered on 25 May 2018.	$4,428.00
7-12	25 Koorabel, 25A Koorabel, 25B Koorabel Street LUGARNO Parties: Daoud & Daoud Developments Pty Ltd	Appeals against six Penalty Notices issued for carrying out development not in accordance with development consent.	Defendant found guilty and the matter is listed for judgment on 16 March 2018.	$12,299.00
13	46 Queens Road, Connells Point Parties: Kosta Karkoulas	Appeal against Penalty Notice for unauthorised building works not in accordance with development consent.	Matter is listed for a contested hearing on 29 March 2018.	$0
14	33 Robyn Street, Peakhurst Height and Gannons Park, Peakhurst Heights Parties: Hassan Abbas	Local Court prosecution for unlawful tree removal.	Defendant has pleaded not guilty. Matter listed for hearing on 2 May 2018.	$0
15	8 Kimberley Road, Hurstville Parties: Petre Dimovski	Local Court prosecution for unlawful tree removal.	Defendant has pleaded not guilty. Matter listed for hearing on 8 May 2018.	$0
	Subtotal			$19,004.00
NSW Civil & Administrative Tribunal
1	Briscoe-Hough v Tegg & Ors Gregory Briscoe-Hough v Warren Tegg, Constantine Hindi, Lupco Konjarski, Gavin Tennant & Greg Copson	Applicant has commenced proceedings alleging, “Irregularities in the conduct of the election in breach of Act and Regs”. Council is not a party to the proceedings and maintains a watching brief only.	Matter heard on 15 February 2018. Judgment delivered on 22 February 2018 dismissing the application. The applicant has lodged an appeal which is listed for directions on 9 March 2018.	$0
	Sub Total			$0
NSW Industrial Relations Commission
1	United Services Union and Georges River Council	Dispute has arisen around protocol for site visits and use of confidential information.	Matter heard before Commissioner Newall on 11 December 2017. Agreed protocol put in place. Mention listed before Commissioner Newall on 20 March 2018.	$0
Cost Recovery
1	The Baptist Church Union of NSW and The Baptist Churches of NSW Property Trust No. 83357 of 2017	Church has taken proceedings to prevent gazettal of the acquisition notice relating to 4 – 6 Dora Street, Hurstville	Council was successful in resisting the Church’s injunction. Property acquired by Council on 31 March 2017. Costs initially agreed however, the Church has now refused to pay Council’s costs. Matter referred to costs assessor.	$0
2	37 Boronia Street KYLE BAY Parties: Mrs Megan McOnie Proceedings No. 40940 of 2015	Class 4 commenced in relation to failing to comply with Council Notices/Orders relating to a non-compliant swimming pool fence, overgrown vegetation and unhealthy swimming pool water.	Court Orders in support of Council’s Notices/Orders made including costs. Dangerous swimming pool secured by Council December 2016. Costs recovery commenced.	$0
3	977 Forest Road, Lugarno Applicant: Congregational Christian Church Samoa Parish of Sydney Proceedings No: 103967 of 2017	Class 1 Appeal against refusal of DA2015/0443 for a child care centre	Council successful in obtaining costs order for $1,200 following applicant’s application being out of time.	$0
4	1 Arnold Street PEAKHURST Parties: Mofeed Louis Tanious Proceedings No. 2017/32320	Class 2 Land and Environment Court commencing in relation to failing to comply with Council Notices/Orders concerning keeping of poultry at the premises. Orders upheld by Court with extension of time to comply to 25 April 2017.	Council was successful in resisting the applicant’s leave application to the Court of Appeal. Summons dismissed with costs on 16 August 2017. Applicant has commenced proceedings in the High Court. Leave application dismissed by High Court on 16 November 2017. Matter raised with Minister and Local Member.	$1,350.00
5	54 – 56 Johnstone Street, Peakhurst Applicant: AMIA Investments Pty Ltd ATF MIAA Trust Proceedings No: 206973 of 2017	Class 1 Appeal against deemed refusal of DA2017/0105 for demolition of existing structure, construction of 9 townhouses and strata title subdivision.	Following S34 Conference on 6 November 2017, applicant submitted amended plans for consideration. Matter to be resolved through S34 Agreement, subject to conditions. Awaiting payment of s97B costs in the amount of $13,000.	$22,425.00
6	70 – 76 Pitt Street, Mortdale Applicant: D R Design (NSW) Pty Limited Proceedings No. 273727 of 2017	Class 1 Appeal against deemed refusal of DA2017/0242 for demolition of existing structures, site amalgamation and the construction of a 3 storey residential flat building with basement car parking.	Matter was listed for S34 Conference on 18 January 2018. Matter is listed for further directions on 9 February 2018. Awaiting payment of s97B costs in the amount of $4,500.	$0
7	5 Maclaurin Street, PENSHURST Parties: Emanuel Mifsud & Crystina Mifsud Proceedings No. 377447 of 2016	Class 4 commenced in relation to clearing of articles and matter.	Contempt proceedings heard on 26 July 2017 before her Honour Justice Pain. Judgment delivered on 1 September 2017. Mr Mifsud was fined $2,000 (to be paid by 29 September 2017) and fined $500 per week until the orders are complied with. Mr Mifsud was allowed until 24 November 2017 to clean up the property before the $500 per week fine would commence. Council was awarded costs. Mr Mifsud has complied with orders to clean up the property. Awaiting payment of costs.	$10,130.00
	Subtotal			$42,779.00

9. The cost savings to date by virtue of S34 delegations are as follows:

Month (2017/18)	Savings
July	$0
August	$32,000
September	$32,000
October	$0
November	$0
December	$16,000
January	$16,000
February	$32,000
Total	$128,000

Financial Implications

10. Within budget allocation.

File Reference

09/1077

Georges River Council – Finance and Governance Committee Meeting - Monday, 12 March 2018 Page 13

Item: FIN008-18 Investment Report as at 31 January 2018

Author: Financial Accounting Officer

Directorate: Office of the Chief Operating Officer

Matter Type: Committee Reports

Recommendation

(a) That Council receive and note the Investment Report as at 31 January 2018.

Executive Summary

1. This report details Council’s performance of its investment portfolio for January 2018 and compares it against key benchmarks. The report includes the estimated market valuation of Council’s investment portfolio, loan liabilities and an update on Council’s legal action against various parties.

2. Council’s annualised rate of return is 3.29%, which is 1.54% above benchmark. Income from interest on investments totals $3,049,755 which is $190,059 above 2017/18 year-to-date adopted budget of $2,859,696.

Background

3. Council’s Responsible Accounting Officer is required to report monthly on Council’s Investment Portfolio and certify that the Investments are held in accordance with Council’s Investment Policy and Section 625 of the Local Government Act.

Investment Performance Commentary

4. Council’s performance against the benchmark for returns of its investment portfolio for January 2018, are as follows:

	1 Month	3 Month	12 Month
Portfolio Performance	0.27%	0.75%	3.29%
Performance Index	0.16%	0.43%	1.75%
Excess	0.11%	0.32%	1.54%

Notes

1. Portfolio performance is the rate of return of the portfolio over the specified period

2. The Performance Index is the rate of return of the market (comparable securities) over the specified period

3. Excess performance is the rate of return of the portfolio in excess of the Performance Index.

5. Council’s investment portfolio as at the end of January was as follows:

Security Type	Market Value $000's	% Total Value
Cash at Bank	5,852	3.04%
11am Cash	9,300	4.83%
31 Day Notice Account	22	0.01%
Flexi Deposit (Fix/Float)	5,016	2.61%
Floating Rate Deposit	5,004	2.60%
Floating Rate Note	66,150	34.38%
Floating Rate TCD	3,537	1.84%
Term Deposit	91,550	47.58%
Managed Funds Trust	5,998	3.12%
Total Cash and Investments	192,429	100.00%

6. At the end of January 2018, Total Cash and Investments were $192.429m and have decreased by $2.85m from December 2017 as a result of Council’s normal monthly operational spend.

7. Council continues to utilise the Federal Government’s current guarantee ($250k) investing in Term Deposits with a range of Authorised Deposit Taking Institutions (ADI’s) on short to medium term investments (generally 30 days to 180 days maturity) where more competitive rates are available.

Legal Issues

8. Nil

Loan Liability

9. Council’s loan liability as at 31 January was $2.375m which represents the balance of a $5m ten (10) year loan drawn down on 16 November 2012 for Jubilee Park upgrade in Mortdale. Next repayment of $125k is due 28 March 2018.

The outstanding balance on this facility is at a variable interest of 194 basis points over 3 month BBSW. At the current 3 month BBSW rate, the interest rate payable is 3.73% pa.

10. Council receives a 4.00% p.a. subsidy under the NSW Government’s Local Infrastructure Renewal Scheme funding agreement for this Jubilee Park upgrade facility. It is intended to continue this financially-advantageous arrangement through to full term in 2022.

Policy Limits

11. The following graph shows the limits, as a percentage of total cash investments, of the amount by periods, as allowed under Council’s policy, and comparing them to the amounts actually invested, as a percentage of the total cash investments.

12. It shows that the funds invested are within the limits set in the Investment Policy.

Investment Income

13. Income from interest on investments totals $3,049,755 which is $190,059 above 2017/18 year-to-date adopted budget of $2,859,696.

Certificate by Chief Operating Officer (Responsible Accounting Officer): David Tuxford

14. Investments have been made in accordance with the Local Government Act, Minister’s Guidelines, Regulations and Council’s Investment Policy.

Analysis of Investments

Investment Duration

Investment Term	Market Value ‘000	% Total Value	Policy Limits %
0 to < Year	62,189	32.32%	100
1 to < 3 Years	79,271	41.20%	70
3 to < 5 Years	48,968	25.45%	50
> 5 Years	2,000	1.04%	25
Portfolio Total	192,429	100.00%

15. Council’s portfolio is very liquid, with 32.32% of assets maturing within 12 months. FRNs, funds and fixed bonds also provide additional liquidity in an emergency.

16. The following graphs show analysis of the total cash investment by:

Type of Investments

17. Council’s investment portfolio is mainly directed to term deposits, which account for approximately 51% of total investments. Yields have steadily contracted, while tracking bond market volatility in the short term.

18. Bank Floating Rate Notes (FRN) offer liquidity and a higher rate of income accrual, which is highly recommended by our Investment Advisors (CPG Research & Advisory) going forward.

19. The following are the types of investments held by Council:

a) At Call refers to funds held at a financial institution, and can be recalled by Council either same day or on an overnight basis.

b) A Floating Rate Note (FRN) is a debt security issued by a company with a variable interest rate. This can either be issued as Certificates of Deposit (CD) or as Medium Term Notes (MTN). The interest rate can be either fixed or floating, where the adjustments to the interest rate are usually made quarterly and are tied to a certain money market index such as the Bank Bill Swap Rate.

c) A Fixed Rate Bond is a debt security issued by a company with a fixed interest rate over the term of the bond.

d) A managed fund is a professionally managed investment portfolio that individual investors can buy into, purchasing 'units' rather than shares. Each managed fund has a specific investment objective. This is usually based around the different asset classes (cash, fixed interest, property and shares). The money you invest is used to buy assets in line with this investment objective. When you invest in a managed fund, you are allocated a number of 'units'. The value of your units is calculated on a daily basis and changes as the market value of the assets in the fund rises and falls.

* These managed funds have been grandfathered since the NSW State Government changed the list of Approved Investments as a result of the Cole enquiry (which was reflected in the Ministerial Order dated 31/7/2008).

Credit Rating

20. Credit ratings are generally a statement as to an institution’s credit quality. Ratings ranging from A1+ to NR (Short Term) & AAA to NR (long term) are considered investment grade.

21. A general guide as to the meaning of each credit rating that Council deals with is as follows:

Short-term

A1+: the best quality companies, reliable and stable. An obligor has extremely strong capacity to meet its financial commitments.

A1: Adequate capacity to meet financial commitments, many positive investment attributes but also elements susceptible to adverse effects of changes in economic conditions.

A2: Adequate capacity to meet financial commitments, but also speculative s or lack of protection against changes of economic conditions.

B1: Moderate characteristic capacity to meet financial commitments, also in good economic conditions.

Unrated: This category includes unrated Authorised Deposit-Taking Institutions (ADI’s) such as some Credit Unions and Building Societies to the extent not Commonwealth-guaranteed. No rating has been requested, or there is insufficient information on which to base a rating.

Long-term

AAA: the best quality companies, reliable and stable. An obligor has extremely strong capacity to meet its financial commitments.

AA: quality companies, a bit higher risk than AAA. An obligor has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree.

A: economic situation can affect finance. An obligor has strong capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories.

BBB: medium class companies, which are satisfactory at the moment. An obligor has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.

22. The credit quality of Council’s portfolio is relatively high with approximately 64% of assets rated ‘A’ or higher. The ‘AAA’ assets represent the deposit investments covered by the Federal Government’s Financial Claims Scheme (FCS).

23. The remaining 36% rated ‘BBB’ or ‘unrated’ reflects the deposit and Floating Rate Notes (FRN) investments with the regional and unrated ADIs.

Council’s Investment Powers

24. Council’s investment powers are regulated by Section 625 of the Local Government Act, which states:

· A council may invest money that is not, for the time being, required by the council for any other purpose.

· Money may be invested only in a form of investment notified by order of the Minister published in the Gazette.

· An order of the Minister notifying a form of investment for the purposes of this section must not be made without the approval of the Treasurer.

· The acquisition, in accordance with section 358, of a controlling interest in a corporation or an entity within the meaning of that section is not an investment for the purposes of this section.

25. Council’s investment policy and strategy requires that all investments are to be made in accordance with:

· Local Government Act 1993 - Section 625

· Local Government Act 1993 - Order (of the Minister) dated 12 January 2011

· The Trustee Amendment (Discretionary Investments) Act 1997 – Sections 14A (2), 14C (1) & (2)

· Local Government (Financial Management) Regulation 1993

· Investment Guidelines issued by the Department of Local Government

Financial Implications

26. Within budget allocation

File Reference

D18/36957

ATTACHMENTS

Attachment ⇩1

Investment Portfolio as at 31 January 2018

Georges River Council – Finance and Governance Committee Meeting - Monday, 12 March 2018 Page 56

Item: FIN011-18 Review of Georges River Council Policy for Payment of Expenses and Provision of Facilities for the Mayor and Councillors

Author: Executive Manager, Office of the General Manager

Directorate: Office of the General Manager

Matter Type: Committee Reports

Recommendation

(a) That Council endorse the public exhibition of the proposed “Mayor and Councillors Expenses and Facilities Policy”, as attached for a period of at least 28 days as required by the Local Government Act 1993, Section 253(1).

(b) That the draft Policy be sent to the Office of Local Government for feedback prior to the close of the public exhibition period.

(c) That the draft Policy be referred to the Independent Commission Against Corruption (ICAC) for feedback prior to the close of the public exhibition period.

(d) That after the public exhibition period, a further report be provided to Council detailing any submissions received, and seeking the adoption of the final “Mayor and Councillors Expenses and Facilities Policy”.

Executive Summary

1. As required by the Local Government Act 1993, Section 252, Council is required to adopt the “Mayor and Councillors Expenses and Facilities Policy” within the first 12 months of each term of council. As part of this process, Council is required to place the draft policy on public exhibition for a period of 28 days. Following adoption, Council is required to submit the policy to the Office of Local Government (OLG), including a copy of the public notice and public submissions received.

2. This Policy was last adopted by Council on 7 August 2017. Following the election of Councillors on 9 September 2017, the “Mayor and Councillors Expenses and Facilities Policy” has been reviewed at a workshop by Councillors.

Background

3. The Mayor and Councillors will incur some reasonable expenses and require reasonable use of some facilities, in order to be effective in the conduct of their civic roles.

4. Council is required under Section 252 of the Local Government Act 1993, to follow a process in adopting a policy for the payment of any expenses and provision of any facilities for the Mayor and Councillors.

5. A Council must not pay any expenses for, or provide any facilities to the Mayor, the Deputy Mayor or a Councillor, unless in accordance with a policy under Section 252 of the Act.

6. The attached draft policy is proposed to provide for the specified, reasonable expenses and facilities required by our elected Mayor and Councillors, in order to effectively exercise their functions on behalf of the community.

7. The draft policy, if adopted for exhibition, is required to go on public exhibition for a minimum of 28 days, to allow any person to express a view about the policy.

8. The draft policy was referred to Council’s Audit, Risk and Improvement Committee at its meeting held on 13 February 2017. The Committee noted the draft policy and offered to provide retrospective oversight of its administration, by considering future auditor’s reports on historical expenses. The Committee also requested that the audit of these expenses should be included in Council’s Audit Program.

Proposed Amendments to the Policy

9. As discussed with Councillors, the following changes are proposed in order to ensure greater transparency and openness in the administration of the Policy.

Eligible Facilities and Expenses

(Section Table 1 - Maximum Value of Facilities and Expenses)

This draft policy includes a revision of maximum values of reimbursement for reasonable expenses associated with a) conferences and seminars, b) professional development, c) carer expenses, and d) Christmas or festive cards.

a) Conferences and Seminars

Currently the policy provides that Council is able to reimburse $45,000 total for all Councillors per year. This report proposes that the annual limit be modified to $3,000 per Councillor per year. The proposed increase supports Section 232 of the Act, namely that a Councillor must make all reasonable efforts to acquire and maintain the skills necessary to perform the role of a Councillor.

b) Professional Development

Currently the policy provides that Council is able to reimburse $1,000 per Councillor per year for professional development opportunities. This report proposes that the annual limit be increased to $1,500 per Councillor per year.

c) Carer Expenses

Currently the policy provides that Council is able to reimburse $3,000 per Councillor per year towards carer expenses. This report proposes that the annual limit be decreased to $2,000 per Councillor per year based on current expenditure rates.

d) Christmas or Festive Cards

Currently the policy offers that Council is able to provide 200 cards per Councillor and 300 additional cards for the Mayor, per year. This report proposes that the annual limit be modified to 500 digital cards per Councillor per year or 200 hard copy cards per Councillor per year.

10. Options for Device Packages

(Section 10 - Communications, Phones, Electronics and Computer equipment)

In the current policy, Councillors purchase their own computer devices and accessories, including insurance and maintenance options, and are reimbursed $2,500 per Councillor per term.

This draft policy proposes two options to Councillors for the provision of computer devices and accessories.

a) Councillors may purchase their device and accessories (including maintenance and insurance) for Council business and seek reimbursement up to a maximum, cumulative value of $4,000 per Council term or,

b) Councillors may opt for Council to supply them with devices and accessories up to the value of $4,000 per term. This would include Council provided options for device insurance and maintenance.

11. Communications and Consumable Package

(Section 10 - Communications, Phones, Electronics and Computer equipment)

It was also proposed that the provisions in the current Policy 10.1.2. (Telephones, Mobile Phones and Call / Data Plan Charges) and 10.1.3. (Computer consumables and stationery), would be merged to create 10.1.4. (Communication and consumable package).

Currently Councillors are able to be reimbursed up to $200 per month for Mobile and data plans (with an additional $200 per month for the Mayor) and $250 for other consumables per Councillor per month. The change proposed stipulates a reimbursement of up to $500 per month (with an additional $200 per month for the Mayor) for the newly created communication and consumable package. This package would include postage, data allowances, website management, electronic and hard copy newsletters, ink cartridges, printing paper and business cards.

Financial Implications

11. Within budget allocation.

File Reference

D18/38561

ATTACHMENTS

Attachment ⇩1

Amended Mayor and Councillors Expenses and Facilities Policy

Georges River Council – Finance and Governance Committee Meeting - Monday, 12 March 2018 Page 78

Item: FIN012-18 Tender for Sans Souci Pool Concrete Remediation and Refurbishment Works

Author: Manager Project Delivery

Directorate: Assets and Infrastructure

Matter Type: Committee Reports

Recommendation

(a) That, under Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accept the tender that is recommended for T17/039 Tender for Sans Souci Pool Concrete Remediation and Refurbishment Works as outlined in the report.

(b) That the General Manager be authorised to sign the Contracts with the preferred Contractor on behalf of Council.

Executive Summary

1. The purpose of this report is to advise Council of the results of the tender process completed in accordance with Part 3, Division 1, Section 55 and Section 377 of the Local Government Act 1993, for Sans Souci Pool Concrete Remediation and Refurbishment Works and to seek resolution from Council on entering into a Contract with a successful Tenderer to appoint as the Principal Contractor to carry out the proposed contract works.

2. This report explains the background for Council to decide if it wishes to enter into a contract with the entity recommended as the Principal Contractor. The report details the tender process supporting the recommendation for Council’s consideration, with the confidential matters being contained within the confidential attachments.

Background

3. In 2016, Georges River Council commissioned a Building Assets Condition Assessment of all aquatic facilities within the Council area. The purpose of these reports was to review all aspects of the facilities including structural, electrical, mechanical, hydraulic and fire to develop a long term capital works program.

4. The Cardno Building Assets Conditions Assessment, identified that the outdoor 50m pool and toddler pool required refurbishment due to extensive cracking of the structure.

5. As part of the Stronger Communities Fund, $1 million was allocated to the Georges River Aquatic Facilities Refurbishment Program with Sans Souci Pool being allocated the funding to undertake extensive rectification works.

6. In 2017, Cardno were engaged to develop a detailed scope of works for the project. It was identified that the main purpose of the proposed refurbishment was to re-waterproof and re-tile the existing Learn to swim pool and 50m outdoor pool. The refurbishment would bring the tiling and finishing standard to current FINA requirements, however no structural modifications were to be made to the pool shell and surrounds. The refurbishment would include possible structural concrete repair such as jointing repair to existing slab joints, concrete spalling repair and/or crack injection.

7. Council Officers prepared a Request for Tender for Sans Souci Pool Concrete Remediation and Refurbishment Works.

8. The Director Assets and Infrastructure appointed a Tender Evaluation Committee for the Tender prior to advertising, and all tender documentation was reviewed by the Manager Project Delivery prior to issuing.

9. Tender documentation included:

a. RFT T17/039 - Sans Souci Pool Concrete Remediation and Refurbishment Works

b. General Conditions of Contract Incorporating AS4000-1997 (as amended)

c. Technical Specifications and Drawings

d. Returnable Schedules

10. The Tender Evaluation Committee determined the Tender Evaluation Criteria prior to advertising of the tender. The essential criteria and mandatory criteria was determined as follows:

Essential Criteria

· Best value for money

Ø Lump Sum price and trades break-up prices;

Ø Schedule of hourly rates.

· Financial standing and position of the Tenderer.

· Demonstrated capacity and technical ability to carry out the works under the Contract:

Ø Specific experience and expertise in design and construct contracts;

Ø company profile; current commitments for main and sub-contractors;

Ø proven capacity to meet deadline; and

Ø plant and equipment available to complete the works.

· Demonstrated managerial and technical capability, qualifications, experience:

Ø quality experience and quality references of the Tenderer;

Ø nominated site personnel CVs and previous work history; and

Ø nominated sub-contractors CVs and previous work history with the Tenderer.

· Capacity to achieve the program:

Ø program shows critical paths and detailed tasks required to achieve deliverables for the project; and

Ø sequencing of the works.

· The proposed methodology:

Ø traffic and pedestrian management plan; and

Ø storage of materials.

· Demonstrated capacity to fulfil the WHS and environmental requirements including insurances.

Mandatory Criteria

· Insurances:

Ø Public Liability min. $20M

Ø Workers Compensation

Ø Comprehensive Vehicle(s) Insurance.

· Compliance with quality assurance standards and systems of quality assurance.

· Degree of compliance with Work Health & Safety requirements.

· Conformity and compliance of the Tenderer’s submission with the RFT.

· Accreditation to BNG Conserve.

11. T17/039 Tender for Sans Souci Pool Concrete Remediation and Refurbishment Works was advertised in the Sydney Morning Herald and Tenderlink on 19 December, 20 December and 23 December 2017.

12. The tender closed at 2pm Wednesday 31 January 2018 in the presence of the Tender Opening Committee. Five (5) submissions were received via Tenderlink from the following companies:

a. Camporeale Holdings Pty Ltd

b. Dapcor Building Services Pty Ltd

c. Metropolitan Restorations Pty Ltd

d. RM Watson Pty Ltd

e. Structural Building Maintenance Pty Ltd

No late submissions were received.

13. The Tender Evaluation Committee individually assessed the submission, and met on 6 February 2018 to review the submissions and seek any clarifications. Details of the Tender Evaluation Committee and these meetings are provided in the confidential attachment.

14. The Tender Evaluation Committee completed the tender assessments and the evaluation process and identified a tender that represents best value for money.

15. The Tender Evaluation Committee recommends that under Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accepts the tender identified as the preferred Contractor as outlined in the confidential attachment to this report.

Financial Implications

16. Within budget allocation - $1 million has been allocated from the Stronger Communities Grant to facilitate the Aquatic Facilities Refurbishment Program.

Community Engagement

17. Community engagement will be conducted including ample signage around the site, posters and website messages advising customers that the Sans Souci Pool will be closed from 3 April 2018 until September 2018 to facilitate the refurbishment works.

File Reference

T17/039

ATTACHMENTS

Attachment 1	Confidential Attachment - T17-039 - Sans Souci Pool Concrete Remediation and Refurbishment Works (Confidential)
Attachment 2	Confidential Attachment A - T17 039 Sans Souci Pool Rectification and Refurbishment Works -Tender Assessment Summary (Confidential)

Georges River Council – Finance and Governance Committee Meeting - Monday, 12 March 2018 Page 81

Item: FIN013-18 Tender for Construction Parking Bays at Hedley Street Riverwood

Author: Manager Project Delivery

Directorate: Assets and Infrastructure

Matter Type: Committee Reports

Recommendation

(a) That, under Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accept the tender that is recommended for T18/001 Tender for Construction of Parking Bays at Hedley Street Riverwood as outlined in the report.

(b) That the General Manager be authorised to sign the Contracts with the preferred Contractor on behalf of Council.

Executive Summary

1. The purpose of this report is to advise Council of the results of the tender process completed in accordance with Part 3, Division 1, Section 55 and Section 377 of the Local Government Act 1993, for Construction of Parking Bays at Hedley Street Riverwood and to seek resolution from Council on entering into a Contract with a successful Tenderer to appoint as the Principal Contractor to carry out the proposed contract works.

Background

3. As part of the 2017-2018 Budget, funds were allocated from the Peakhurst Ward Capital Works Program to formalise the parking bays at Hedley Street, Riverwood. Works were to include

· Construction of asphalt concrete parking bays and roadway

· Construction of 450mm x 150mm kerb and gutter

· Construction of concrete edge strip 300mm x 150mm deep along the park boundary.

· Construction of 150mm barrier kerb

· 100mm AC14 heavy duty asphalt patching

· Re-grading and turfing surrounding area and other landscape works.

· Installing parking bay line markings as detailed on technical drawings.

A budget of $180,000 was allocated to this project.

4. Council Officers prepared a Request for Tender for Construction of Parking Bays at Hedley Street Riverwood.

5. The Director Assets and Infrastructure appointed a Tender Evaluation Committee for the Tender prior to advertising, and all tender documentation was reviewed by the Manager Project Delivery prior to issuing.

6. Tender documentation included:

a. RFT T18/001 - Construction of Parking Bays at Hedley Street Riverwood

b. General Conditions of Contract Incorporating AS4000-1997 (as amended)

c. Technical Specifications and Drawings

d. Returnable Schedules

7. The Tender Evaluation Committee determined the Tender Evaluation Criteria prior to advertising of the tender. The essential criteria and mandatory criteria was determined as follows:

Essential Criteria

· Best value for money

Ø Price and trades break-up in accordance with the provided Bill of Quantities;

Ø Schedule of hourly rates.

· Demonstrated capacity and technical ability to carry out the works under the Contract:

Ø Specific experience and expertise in design and construct contracts;

Ø Company profile; current commitments for main and sub-contractors;

Ø Proven capacity to meet deadline; and

Ø Plant and equipment available to complete the works.

· Demonstrated managerial and technical capability, qualifications, experience:

Ø Current Licenses;

Ø Nominated site personnel CVs and previous work history; and

Ø Nominated sub-contractors CVs and previous work history with the Tenderer.

· Capacity to achieve the program:

Ø Program shows critical paths and detailed tasks required to achieve deliverables for the project; and

Ø Sequencing of the works.

· The proposed methodology:

Ø Traffic and pedestrian management plan; and

Ø Storage of materials.

Ø Demonstrated capacity to fulfil the WHS and environmental requirements including insurances.

Mandatory Criteria

· Insurances:

Ø Public Liability min. $20M

Ø Workers Compensation

Ø Comprehensive Vehicle(s) Insurance.

· Compliance with quality assurance standards and systems of quality assurance.

· Degree of compliance with Work Health & Safety requirements.

· Conformity and compliance of the Tenderer’s submission with the RFT.

· Accreditation to BNG Conserve.

8. T18/001 Tender for Construction of Parking Bays at Hedley Street Riverwood was advertised in the Sydney Morning Herald and Tenderlink on 6 February, 7 February and 10 February 2018.

9. The tender closed at 10am Tuesday 27 February 2018 in the presence of the Tender Opening Committee. Ten (10) submissions were received via Tenderlink from the following companies:

a. All Civil Solutions Group Pty Ltd

b. Ally Property Services Pty Ltd

c. Civil Constructions Pty Ltd

d. KK Consultants Pty Ltd T/A KK Civil Engineering

e. Mack Civil Pty Ltd

f. N Moit & Sons Earthworks

g. North Shore Paving Co P/L

h. Planet Civil Pty Ltd

i. State Civil Pty Ltd

j. The Trustee for The Awada Civil Family Trust

No late submissions were received.

10. The Tender Evaluation Committee individually assessed the submission, and met on 1 March 2018 to review the submissions and seek any clarifications. Details of the Tender Evaluation Committee and these meetings are provided in the confidential attachment.

11. The Tender Evaluation Committee completed the tender assessments and the evaluation process and identified a tender that represents best value for money.

12. The Tender Evaluation Committee recommends that under Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accepts the tender identified as the preferred Contractor as outlined in the confidential attachment to this report.

Financial Implications

13. Within budget allocation - $180,000 allocated from Peakhurst Ward Capital Works Program and savings from other completed capital works projects.

Community Engagement

14. Community engagement will be conducted via a letterbox drop to all residents in the street prior to the commencement of works on site.

File Reference

T18/001, D18/39286, D18/39285

ATTACHMENTS

Attachment 1	Confidential Attachment - T18 001 - Construction of Parking Bays at Hedley Street Riverwood (Confidential)
Attachment 2	Confidential Attachment A - T18 001 - Construction of Hedley Street Parking Bays - Tender Assessment Summary (Confidential)

Georges River Council – Finance and Governance Committee Meeting - Monday, 12 March 2018 Page 84

Item: FIN014-18 Councillor Ward Discretionary Fund

Author: Acting Director Community and Culture

Directorate: Community and Culture

Matter Type: Committee Reports

Recommendation

(a) That the Councillor Ward Discretionary Fund be considered for implementation as part of 2018-2019 financial year budget.

(b) That Council reviews the proposed funding options for the Councillor Ward Discretionary Fund and nominates a preferred option for further consideration and development as part of the 2018-19 budget process.

(c) That the General Manager prepare a Councillor Ward Discretionary Fund administrative guideline, to support the implementation of the Fund, having regard to similar successful Funds currently operating in New South Wales and Victorian councils.

(d) That the administrative guidelines be referred to the Independent Commission Against Corruption (ICAC) for feedback.

(e) That the Councillor Ward Discretionary Fund guideline be sent to the Office of Local Government (OLG) for feedback.

(f) That, subjected to adoption by Council, the Councillor Ward Discretionary Fund be conducted as a trial for a period of 12 months, from 1 July 2018.

Executive Summary

1. This report proposes the development of a Councillor Ward Discretionary Fund for consideration as part of 2018-2019 financial year budget, as previously discussed at the Councillor workshop in February 2018.

Background

2. The Councillor Ward Discretionary Fund will enable Councillors to assign funds to community groups and minor capital works at their discretion, subject to Council resolution.

3. This funding allocation must benefit Georges River Council residents. It is proposed that the Fund could be allocated to capital projects and social initiatives and will be a more timely and flexible approach to requests for funding from the community. It will supplement Council’s existing community grants program and sponsorship and donations program.

4. All requested donations or capital investments through the Fund will be submitted to a Council Meeting for adoption prior to the allocation of funds.

5. The Fund would be audited quarterly and a register of all approved Fund allocations would be available on Council's website.

6. Council officers now seek Council’s direction on the preferred funding model for the proposed Councillor Ward Discretionary Fund and propose three models below for Councillors’ consideration.

7. Following a decision of Council on the preferred funding model for the Councillor Ward Discretionary Fund, the budget allocation for this Fund would be considered as part of the 2018-2019 financial year Budget process.

8. In the event that in-principle approval is provided by Council to progress the development of the Fund as part of the new financial year Budget in June 2018, an administrative guideline for the Councillor Ward Discretionary Fund will be developed and provided to the Independent Commission Against Corruption (ICAC) and to the Office of Local Government (OLG) for feedback prior to the Fund coming into effect from 1 July 2018.

9. Council officers propose three funding options for the establishment of the Councillor Ward Discretionary Fund.

10. Option one proposes capital funds be pooled by Ward with $170,000 being allocated per Ward, and non-capital funds being individually allocated with $10,000 per Councillor.

11. Option two proposes both capital and non-capital funds being individually allocated with $57,000 of capital funds and $10,000 non-capital funds per Councillor, respectively.

12. Option three proposes a separate fund per Councillor and Mayor for both capital and non-capital initiatives.

Option		Per Ward	Per Councillor	Per Mayor	Total
1	Capital	$170,000	-	-	$850,000
1	Non-capital	-	$10,000	-	$150,000
2	Capital	-	$57,000	-	$855,000
2	Non-capital	-	$10,000	-	$150,000
3	Capital	-	$50,000	$75,000	$775,000
3	Non-capital	-	$15,000	$25,000	$235,000

Financial Implications

The financial implications of the Councillor Ward Discretionary Fund are as follows:

Option	Total Funding
1	$1,000,000
2	$1,005,000
3	$1,010,000

13. It is proposed to implement the fund as a one year trial. Therefore, the allocated funding would not form part of Council’s base budget and would only do so in the future if the trial proved successful and was adopted by Council for inclusion in future budgets.

14. The preferred funding option, as indicated by Council, would be considered in the 2018-2019 financial year Budget development.

15. The Fund will supplement Council’s existing community grants program and sponsorship and donations program.

File Reference

17/396

Georges River Council – Finance and Governance Committee Meeting - Monday, 12 March 2018 Page 87

Item: FIN015-18 Property Matter - Illuminated Street Signs

Author: Strategic Property Officer

Directorate: Office of the General Manager

Matter Type: Committee Reports

Recommendation

(a) That the contents of the report be received and noted.

(b) That a formal Expression of Interest process be undertaken in July 2020 for the provision of Illuminated Street and Transport Shelter advertising signage across the Georges River LGA.

(c) That Council commence an Expression of Interest process for the lease of prime billboard advertising sites in Blakehurst and Penshurst as generally detailed in this report and that a further report be submitted to Council following completion of the Expression of Interest process.

Executive Summary

1. On 11 November 2017 a report was submitted to the Finance and Governance standing committee recommending the expansion of the former Kogarah Council’s illuminated signage across the Georges River Council LGA, via an Expression of Interest (EOI) process.

2. During the standing committee, it was identified that the former Hurstville City Council’s agreement with AdShel for advertising signage on transport (bus) shelters may inhibit the EOI process.

3. The standing committee resolved to defer this item pending further information. This purpose of this report is to inform Council of the additional information sought relating to the Claude Outdoor, Adshel and the OOH Media agreements.

Background

4. In February 1992 the former Kogarah City Council entered into an agreement with (the then named) Claude Neon Aust. Pty Ltd to allow the company to erect and display advertising structures called “Identilites”, within the City. An example of the signage can be viewed in Attachment 1.

5. The initial agreement term was for a ten (10) year term with an option for a further five (5) years. The subject agreement ran until 31 December, 2006.

6. On 23 May, 2005 the former Kogarah City Council then resolved to enter into a further agreement for a term of five (5) years, which subsequently expired on 31 December, 2011. No further formal agreement was entered into after this date, however the commercial relationship between the parties continued on a hold-over basis.

7. On 28 October 2014, Claude Outdoor was advised that the agreement was to be terminated on 31 December 2015. However, a further holdover notice was issued on 6 August 2015, with an increased licence fee of $25,000pa (plus GST), that would run until 31 December 2017.

8. On 7 December 2016, Georges River Council received a request from Claude Outdoor to install a new illuminated sign in the Kogarah Bay area. On 5 April 2017 Georges River Council responded by advising that additional signage will not be permitted, reiterating that the hold over provisions will expire in December 2017 and further advising that any future illuminated signage would be subject to Council resolution and a further competitive public process being undertaken.

9. Following the recommendation of the 11 December 2017 Finance and Governance Standing Committee, further investigations were conducted in relation to agreements currently in place relating to similar advertising signage across the Georges River Council LGA. The review revealed that Council had existing contractual arrangements in place with Claude Outdoor, Adshel and OOH Media.

10. On 21 March 2000 the former Hurstville City Council entered into an agreement with Adshel Street Furniture Pty Ltd for the provision and maintenance of transport (bus) shelters which included the procurement and management of advertising appearing on the bus shelters.

11. This agreement was then renegotiated and the agreement executed on 28 May 2015. The updated agreement is due to expire on 30 June 2020.

12. The current agreement includes an exclusivity clause which stops Council from permitting anyone other than Adshel from “deliver, display or make available… any advertisements in any format on or from any Street Furniture in the Council Area, if those advertisements are within the Prescribed Sizes & Configurations.” This clause in effect excludes any illuminated street signs from being installed in the former Hurstville City Council LGA.

13. Additionally, the former Kogarah City Council had an agreement with Adshel which is due to expire on 13 May 2019. The agreement includes an option for a further five (5) years to be exercised at the discretion of Council.

14. The former Kogarah City Council also had an agreement for an advertising sign located in a Council owned car park, situated on the corner of Princes Highway and Stuart Street, Blakehurst with Outdoor Plus Pty Ltd (OOH Media). The agreement, which expired on 14 April 2012, has continued on a month to month basis. Council did, however, formally extend the current agreement to 10 June 2018 (under the same terms and conditions of the expired lease allowing for annual rental increases).

15. As the lease has expired for this site, Council proposes to seek Expressions of Interest (EOI) from the market for the re-leasing of the site for advertising purposes. It is proposed that the EOI process will commence early May 2018.

16. In addition to the Blakehurst site, Council has identified another prime advertising site on the Corner of King Georges and Forest Roads, Penshurst (former Blackshaw Pavilion site adjacent to Hurstville Aquatic Centre). It is proposed to offer both sites as part of the EOI process in order to maximise Council’s commercial return.

Current Position

17. The current contractual arrangement with Adshel expires on 30 June 2020. Until such time as this agreement expires, it is proposed that Council extend the current Claude Outdoor illuminated signage agreement, (on existing hold-over provisions) until the same date at which time Council will test the market for signage across the entire LGA in an open and competitive public process.

18. In this regard, a further report to Council will be submitted in 2020 to advise the results of the competitive public process for Illuminated Street and Transport Shelter advertising signage across the Georges River Council LGA.

19. In relation to the EOI for prime advertising locations, a further report to Council shall be submitted in June 2018 to report on the outcome of the EOI process and to seek approval to enter into a contractual agreement with the most suitable applicant.

Financial Implications

20. Within budget allocation.

Community Engagement

21. A formal and public Expression of Interest process will be undertaken in 2020 should Council resolve to continue with the provision of Illuminated Street and Transport Shelter advertising signage in the LGA.

File Reference

17/704

ATTACHMENTS

Attachment ⇩1

Example of Current Illuminated Signs

Georges River Council – Finance and Governance Committee Meeting - Monday, 12 March 2018 Page 92

Item: FIN016-18 Jubilee Oval - Name and Naming Rights

Author: Executive Manager Premium Facilities and Properties

Directorate: Office of the General Manager

Matter Type: Committee Reports

Recommendation

(a) That Council adopt the name Jubilee Stadium for the venue currently known as Jubilee Oval, located in Carlton.

(b) That the General Manager be authorised to canvass the marketplace for expressions of interest from companies and organisations acquiring the naming rights sponsorship of Jubilee Stadium.

(c) That the General Manager be authorised to negotiate with and secure the naming rights sponsorship of Jubilee Stadium for a period of up to five years.

Executive Summary

1. Jubilee Oval no longer has a naming rights sponsor, therefore it is recommended that Expressions of Interest be sought in order to secure a sponsor and maximise the commercial opportunity.

2. In addition, this report proposes that the name of the venue, currently known as Jubilee Oval, be renamed as ‘Jubilee Stadium’. This change would characterise the status of the venue in the marketplace, and would also serve to avoid confusion with another venue by the name of Jubilee Oval, which is situated in Glebe.

Background

Jubilee Oval Naming Rights - History

3. From 1950 until 2003, the ground was simply known as Jubilee Oval.

4. In 2003, printing and data communications company OKI signed a five-year sponsorship deal for naming rights to the ground with the name becoming OKI Jubilee Stadium.

5. In October, 2008, OKI Printing Solutions decided not to renew the naming rights of Jubilee Oval, as the Dragons played at ANZ Stadium during the 2008 season due to re-developments at Jubilee Stadium.

6. The naming rights ended on 31 October 2008 with the venue reverting to its former name.

7. It was officially announced on 25 December 2008, that WIN Corporation had bought the naming rights for Jubilee Oval. With this agreement, WIN owned the naming rights to both of St. George Illawarra's home grounds, WIN Jubilee Oval and WIN Stadium. The venue could not be known as WIN Jubilee Stadium as there already was a WIN Stadium in Wollongong.

8. In early 2014, WIN relinquished this sponsorship, with once again the venue reverting to its original name.

9. From 2016, the University of Wollongong held the rights to the ground for a two-year period at a fee of $50,000 + GST paid to Council. The ground was known as "UOW Jubilee Oval".

· Jubilee Oval (1950–2003, 2008, 2014 - 2015)

· OKI Jubilee Stadium (2003–2008)

· WIN Jubilee Oval (2009–2013)

· UOW Jubilee Oval (2016-2017)

10. Council contacted University of Wollongong to explore a 12 month extension option but their Chief Finance Officer informed Council that the university’s marketing strategy had changed direction and that the future marketing fund did not include naming rights at the Jubilee venue.

11. The Council is now in a position to seek a new naming rights sponsor through an expression of interest process.

12. The value of the sponsorship is generally determined by the amount of content at the venue that is televised with the sponsor’s brand being exposed within the TV arc as well as reference in the various media platforms to the venue’s name in hosting events.

13. At this time there are five St George Illawarra-Dragons home games played per year for the next two years.

14. There may be opportunities in the near and distant future to secure more content that would enhance the value of the naming rights at the Jubilee Stadium.

15. The value of the sponsorship is also market driven so it is difficult to stipulate what would be an expectation, however, depending on the quantum of secured content on approaching the market, this could range between around $75,000 and $175,000 with corporate hospitality as well as signage opportunity included in the sponsorship package.

The Status of the Facility – The Importance of the Name

16. In addition to seeking naming rights, there is an opportunity for Council to establish the ‘co-naming’ status of the venue as a ‘stadium’ rather than an ‘oval’.

17. The overwhelming rationale, is that another location in the Sydney basin carries the name of Jubilee Oval, as described below on a location website :-

“Jubilee Oval

Address: Maxwell Road and Victoria Road Glebe NSW 2037

With access to Jubilee Park Light Rail and set against the beautiful backdrop of Bicentennial Park and Rozelle Bay, Jubilee Oval is an historic cricket oval and pavilion that also hosts AFL and hockey. There is a playground nearby and dogs are welcome off leash.”

18. Additionally, the codes played at the Jubilee venue in Carlton are rugby, rugby league and football as the venue is configured for rectangular sports. Cricket and AFL are associated with ovals.

19. However, if cricket were ever to be played there with a drop-in wicket, (though the dimensions of the ground are in doubt except for possibly WBBL) the name inclusion of ‘stadium’ does not preclude this sporting code’s association with the venue.

20. The venue has just over 10,000 seats in the seating bowl and a grandstand that reflect the status of a stadium rather than an ‘oval’. The venue is one of Georges River Council’s Premium Facilities.

21. Therefore, including Jubilee Stadium in the name for the venue, has well founded rationale and this would be the appropriate juncture to establish this suffix to a naming rights sponsor.

Financial Implications

22. An improvement in the revenue for the Jubilee venue will be a step closer to the venue being more sustainable.

Community Engagement

23. Community engagement may be a consideration in relation to Oval versus Stadium in the name, however it is noted that this has not occurred in any of the previous naming rights sponsorship deals since 2003.

Attachment ⇩1	Terms of Reference - Environment and Planning Standing Committee - Amended - for F&G 12 March 2018
Attachment ⇩2	Terms of Reference - Finance and Governance Standing Committee - Amended - for F&G 12 March 2018
Attachment ⇩3	Terms of Reference - Community and Culture Standing Committee - Amended - for F&G 12 March 2018
Attachment ⇩4	Terms of Reference - Assets and Infrastructure Standing Committee - Amended - for F&G 12 March 2018

Project Name	Estimated Costs	Expenditure 31/12/17
Community Amenities Building – Peakhurst Park (Eastern end), Peakhurst	$800,000	$18,513
Gannons Park Stormwater Harvesting & Irrigation Project, Peakhurst Heights	$1,000,000	$22,805
Community Amenities Building – Riverwood Park, Riverwood	$800,000	$0
Community Amenities Buildings – Renown Park, Peakhurst	$1,200,000	$34,095
New or upgraded public toilet facilities at Oatley Memorial Gardens – including disabled toilet	$250,000	$10,500
Community Pavilion Amenities Building – Harold Fraser Oval, Kogarah Bay	$1,100,000	$40,585
New Public Toilet Facilities – Carss Bush Park, Carss Park	$350,000	$3,085
Georges River Aquatic Facilities Refurbishment Program	$1,000,000	$23,633
Sports Amenities Building – Claydon Reserve	$600,000	$0
Customer Service Hubs (Stage 1: Kogarah Library – roof replacement, customer service one-stop-shop and technology upgrade; Stage 2: public Wi-Fi in Kogarah, Beverley Hills and Riverwood Town Centres; Stage 3: Roll-out of Wi-Fi in other town centres)	$1,500,000	$32,896
Town Centres’ Place-Making and Economic Development Program (Public domain works, job expo, business attraction and investment, activation of centres, retail strategy, footway dining projects, shop-front makeovers and easy-to-do-business program)	$1,100,000	$144,742
Shade Structure – Carss Cottage Museum Carss Bush Park	$40,000	$40,000