Agenda of Council Meeting

Georges River Council – Ordinary Meeting - Monday, 25 June 2018 Page 10

Item: CCL028-18 Report of the Assets and Infrastructure Committee - Meeting held on 12 June 2018

Author: Acting Head of Executive Services

Directorate: Office of the General Manager

Matter Type: Committee Reports

Recommendation

That the Committee recommendations for items ASS022-18 to ASS029-18 (inclusive), detailed below, be adopted by Council in accordance with the delegations set out in the Terms of Reference for the Assets and Infrastructure Committee.

ASS022-18 Tender for Refurbishment of Olds Park Amenities Building - Infrastructure Plus Funds

(Report by Manager Project Delivery)

Recommendation: Councillor Konjarski and Councillor Symington

a) That in accordance with Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accepts the Tender from Jag Building & Bricklaying Pty Ltd, in the amount of $444,900.00 (excluding GST), after having regard to all the circumstances, as the tender that appears to be the most advantageous and appoint Jag Building & Bricklaying Pty Ltd as the Principal Contractor under the Contract Number T17/029 Tender for Refurbishment of Olds Park Amenities Building.

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

c) That Council Officers inform the unsuccessful Tenderers of the resolution to decline to accept those tenders.

Record of Voting:

For the Motion: Unanimous

ASS023-18 Tender for Construction of Stormwater Drainage Infrastructure - Collateralized Debt Obligation (CDO) Recovered Funds

(Report by Manager Project Delivery)

Recommendation: Councillor Elmir and Councillor Agius

a) That in accordance with Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accepts the Tender from KK Consultants Pty Ltd trading as KK Civil Engineering, in the amount of $487,350, after having regard to all the circumstances, as the tender that appears to be the most advantageous and appoint KK Consultants Pty Ltd trading as KK Civil Engineering as the Principal Contractor under the Contract Number T18/019 Tender for Construction of Stormwater Drainage Infrastructure.

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

c) That Council Officers inform the unsuccessful Tenderers of the resolution to decline to accept those tenders.

Record of Voting:

For the Motion: Unanimous

ASS024-18 Tender for Construction of Peakhurst Amenities Building - Stronger Communities Fund

(Report by Manager Project Delivery)

Recommendation: Councillor Symington and Councillor Konjarski

a) That in accordance with Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accepts the Tender from Sullivans Construction (Aust) Pty Ltd, in the amount of $1,075,547.43 (excluding GST), after having regard to all the circumstances, as the tender that appears to be the most advantageous and appoint Sullivans Construction (Aust) Pty Ltd as the Principal Contractor under the Contract Number T17/031 Tender for Construction of Peakhurst Park Amenities Building.

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

c) That Council Officers inform the unsuccessful Tenderers of the resolution to decline to accept those tenders.

d) That Council approves the allocation of $300,000 from the Asset Management Reserve Investment to fund this project.

Record of Voting:

For the Motion: Unanimous

The Mayor, Councillor Greene entered the meeting at 7.04pm.

The Mayor, Councillor Greene left the meeting at 7.05pm.

ASS025-18 Pedestrian Crossings Review within Georges River Council

(Report by Coordinator Traffic & Transport)

Recommendation: Councillor Katris and Councillor Payor

That the report be received and noted.

Record of Voting:

For the Motion: Unanimous

ASS026-18 Tender for Refurbishment of Amenities and Construction of Adult Change Facility at Carss Park - Stronger Communities Fund and Disability Inclusion Action Plan Implementation Funding

(Report by Manager Project Delivery)

Recommendation: Councillor Elmir and Councillor Katris

a) That in accordance with Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accepts the Tender from Sullivans Construction (Aust) Pty Ltd, in the amount of $373,901.35, after having regard to all the circumstances, as the tender that appears to be the most advantageous and appoint Sullivans Construction (Aust) Pty Ltd as the Principal Contractor under the Contract Number T17/034 Refurbishment of Amenities and Construction of Adult Change Facility at Carss Park.

b) That Council allocate $100,000 from the Disability Inclusion Action Plan Implementation Fund to fund the new adult change facility.

c) That the General Manager be authorised to sign the Contracts with the preferred Contractors on behalf of Council.

d) That Council Officers inform the unsuccessful Tenderers of the resolution to decline to accept those tenders.

Record of Voting:

For the Motion: Unanimous

ASS027-18 Tender for Construction of New Amenities at Riverwood Park - Stronger Communities Fund

(Report by Manager Project Delivery)

Recommendation: Councillor Symington and Councillor Konjarski

a) That in accordance with Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accepts the Tender from Jag Building & Bricklaying Pty Ltd, in the amount of $291,330.00 (excluding GST), after having regard to all the circumstances, as the tender that appears to be the most advantageous and appoint Jag Building & Bricklaying Pty Ltd as the Principal Contractor under the Contract Number T18/027 Tender for Construction of New Amenities Building at Riverwood Park.

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

c) That Council Officers inform the unsuccessful Tenderers of the resolution to decline to accept those tenders.

Record of Voting:

For the Motion: Unanimous

ASS028-18 Georges River Traffic Advisory Committee Meeting - 5 June 2018

(Report by Coordinator Traffic & Transport)

Recommendation: Councillor Konjarski and Councillor Katris

That the recommendations contained within the minutes of the Georges River Traffic Advisory Committee Meeting held on 5 June 2018 be adopted by Council.

Record of Voting:

For the Motion: Unanimous

ASS029-18 Tender for provision of an Overland Flow Risk Management Study and Plan for Hurstville, Mortdale and Peakhurst Wards (formerly Hurstville LGA) - NSW OEH Grant funded project under the Floodplain Management Program

(Report by Design Engineer)

Recommendation: Councillor Katris and Councillor Symington

a) That in accordance with Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accepts the Tender of WMA Water Pty Ltd for the amount of $140,184, that it is recommended as the most advantageous tender for Contract Number T17/049, ‘Provision of an Overland Flow Risk Management Study and Plan for Hurstville, Mortdale and Peakhurst Wards (formerly Hurstville LGA)’ subject to satisfactory outcome of the financial assessment.

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

c) That Council inform the unsuccessful Tenderers of the resolution.

Record of Voting:

For the Motion: Unanimous

ATTACHMENTS

Attachment ⇩1

Minutes of the Assets and Infrastructure Committee - 12 June 2018

Georges River Council – Ordinary Meeting - Monday, 25 June 2018 Page 33

Environment and Planning

Item: CCL031-18 Planning Proposal to address the impact of the new Low Rise Medium Density Housing Code in the Georges River LGA

Author: Manager Strategic Planning

Directorate: Environment and Planning

Matter Type: Environment and Planning

Recommendation;

(a) That the Planning Proposal – Low Rise Medium Density Housing Code be forwarded to the delegate of the Greater Sydney Commission for a Gateway Determination under Section 3.34 of the Environmental Planning and Assessment Act 1979.

(b) That Council be advised of the conditions of the Gateway Determination when received.

Executive Summary

1. The Planning Proposal was considered by the Local Planning Panel at its Meeting held 21 June 2018. The outcome of the Local Planning Panel Meeting is subject to a separate subsequent report. Direction from the Minister for Planning under Section 9.1 of the Environmental Planning and Assessment Act 1979 and the Charter of the Georges River Council Local Planning Panel 2018 both specify that the Planning Proposal is to be referred to the Local Planning Panel before it is forwarded for Gateway Determination (approval).

2. The intended outcomes of the Planning Proposal are to:

a. Seek an exemption from the application of the Low Rise Medium Density Housing Code to the R2 Low Density Residential zone within HLEP for manor houses, multi dwelling housing (terraces), multi dwelling housing, residential flat buildings and dual occupancies.

b. Seek an exemption from the application of the Low Rise Medium Density Housing Code to Schedule 1 Additional Permitted Uses within the KLEP for multi dwelling housing (terraces), multi dwelling housing, manor houses and dual occupancies.

c. Seek an exemption from any related amendment to the Standard Instrument – Principal Local Environmental Plan, including the Standard Instrument (Local Environmental Plans) Amendment (Low Rise Medium Density Housing) Order 2017 [NSW] to the R2 Low Density Residential zone within the Georges River LGA, which is intended to introduce two new terms (manor houses and multi dwelling housing (terraces)); amend the existing definition of multi dwelling housing and the existing definition of residential flat buildings; and amend Direction 5 and introduce Direction 6 and Direction 7 in the Land Use Table, after Direction 5.

d. Seek an exemption from any State Government initiated amendment to HLEP that is intended to add the terms manor houses and multi dwelling housing (terraces)) to the R2 Low Density Residential zone, and to permit those land uses where medium density housing or residential flat buildings is allowed in the R2 Low Density Residential zone.

e. Seek an exemption from Environmental Planning and Assessment Amendment (Low Rise Medium Density Housing) Regulation 2017 or any amendment to the Environmental Planning and Assessment Regulation 2000 to the R2 Low Density Residential zone within the Georges River LGA, which is intended to allow an applicant to lodge a complying development certificate for medium density housing and concurrent subdivision and require the submission of a Design Verification Statement from the Building Designer.

f. If exemptions are not supported, Council requests a deferment of:

i. the commencement of the Low Rise Medium Density Housing Code;

ii. any related amendment to the Standard Instrument – Principal Local Environmental Plan, including the Standard Instrument (Local Environmental Plans) Amendment (Low Rise Medium Density Housing) Order 2017 [NSW];

iii. any related State Government initiated amendment to HLEP; and

iv. any related amendment to the Environmental Planning and Assessment Regulation 2000.

v. Until 1 July 2019 or such time as Council has undertaken its local Housing Strategy and prepared its new principal local environmental plan informed by this strategy (whichever is sooner).

g. Prohibit Multi dwelling housing, Multi dwelling housing (terraces) and Manor houses in the R2 Low Density Residential zone of the HLEP.

h. Increase the minimum lot size for dual occupancies under HLEP so that it mirrors the minimum lot size for dual occupancies under KLEP

i. Prohibit manor houses, multi dwelling housing (terraces), town houses and villas from being built on land listed under Items 17, 18 or 19 of Schedule 1 Additional Permitted Uses of KLEP.

j. Prohibit dual occupancies from being built on land listed under Items 17, 18 or 19 of Schedule 1 Additional Permitted Uses of KLEP, unless development consent is granted by Council.

3. The intent of the planning proposal is for Council to develop its own provisions for manor housing and terrace housing in the R3 zones, with such provisions being developed through a housing strategy process.

4. Direction 5, 6 and 7 state:

a. Direction 5: Only the following types of development may be included in the Land Use Table: Add “Multi dwelling housing (terraces)” after “Multi dwelling housing”.

b. Direction 6. Manor houses must be permitted wherever multi dwelling housing is permitted in the Land Use Table.

c. Direction 7. Multi dwelling housing (terraces) cannot be prohibited in a zone if multi dwelling housing is permitted in that zone.

5. Council has raised concern with the impact of the Low Rise Medium Density Code and medium density housing in its R2 Low Density Residential Zone with the Department of Planning and Environment.

6. By letter dated 24 May 2018 the Department has advised that the Minister has indicated that he would consider deferring the commencement of the code to allow councils to rectify local planning controls to meet the strategic intent of the council area.

7. The Department’s letter further stated that this deferral from the Code will need the lodgement of a planning proposal with the Department by 27 June 2018. A copy of the Department’s letter dated 24 May 2018 is in Attachment 1.

8. This report, which is to be read in conjunction with the separate report titled Addendum to Planning Proposal – Low Rise Medium Density Housing Code, recommends that Council forward the Planning Proposal – Low Rise Medium Density Housing Code, to the delegate of the Greater Sydney Commission for a Gateway Determination under Section 3.34 of the Environmental Planning and Assessment Act 1979.

9. This report also provides the information required by Notice of Motion 035-18 which was adopted by Council on 28 May 2018 in relation to the suspension of the New Low Rise Medium Density Housing Code in Georges River Local Government Area.

The Site and Locality

10. On 12 May 2016 the Minister for Local Government announced the newly formed Georges River Council (Council), which was formed out of the amalgamation of the former Kogarah Council and the former Hurstville Council.

11. The new Georges River Local Government Area (LGA) is 44.14 square kilometres with 147,000 people residing in the area. The Georges River LGA has approximately 1,945 hectares of land zoned R2 Low Density Residential and approximately 222 hectares of land zoned R3 Medium Density Residential.

12. The LGA is located in Southern Sydney and includes the suburbs of Allawah, Beverley Park, Beverly Hills (part), Blakehurst, Carlton (part), Carss Park, Connells Point, Hurstville, Hurstville Grove, Kingsgrove (part), Kogarah, Kogarah Bay, Lugarno, Mortdale, Narwee (part), Oatley, Peakhurst, Peakhurst Heights, Penshurst, Ramsgate (part), Riverwood, Sans Souci (part) and South Hurstville.

Current Zoning and Permissibility

13. Council currently has:

a. Three LEPs:

i. Kogarah Local Environmental Plan 2012;

ii. Hurstville Local Environmental Plan 2012; and

iii. Hurstville Local Environmental Plan 1994.

b. Four DCPs:

i. Kogarah Development Control Plan 2013;

ii. Hurstville Development Control Plan 1 (Applies to land within the Peakhurst, Mortdale and Hurstville Wards);

iii. Hurstville Development Control Plan 2 Amendment Number 5 (Applies to sites within the Hurstville City Centre identified as Deferred Land); and

iv. Hurstville Development Control Plan 2 Amendment Number 6 (Applies to land identified as Hurstville City Centre, excluding the Deferred Land).

14. Kogarah Local Environmental Plan 2012 (KLEP) and Hurstville Local Environmental Plan 2012 (HLEP) are in the standard form, prescribed in the Standard Instrument (Local Environmental Plans) Order 2006. Hurstville Local Environmental Plan 1994 is not in the standard form as it was made prior to the standardisation of LEPs and applies only to the land deferred from HLEP (Deferred Land). Please see Figure 1 below for a map of the Deferred Land.

Figure 1 – Deferred Land Map

15. The Deferred Land, which sits under Hurstville Local Environmental Plan 1994, is zoned 3(b) City Centre Business zone. There are no development controls in the Hurstville Local Environmental Plan 1994 that apply to the 3(b) City Centre Business zone. Therefore the community and developers must refer to Hurstville Development Control Plan 2 Amendment Number 5 for the relevant planning and design guidelines.

16. Whilst Kogarah Local Environmental Plan 2012 and Hurstville Local Environmental Plan 2012 are in the standard form, both instruments have different objectives, zoning patterns, local provisions and development controls.

Proposed Georges River Local Environmental Plan

17. Council resolved on 27 November 2017 (Notice of Motion 015-17):

a. That Council commence the preparation of a new Local Environmental Plan (LEP) for the Georges River local government area in early 2018.

b. That the General Manager prepare a report detailing the proposed program for preparation of the LEP, including the necessary strategic studies, community consultation framework, timeframes and costs for preparation of the LEP.

c. That the General Manager investigates the scheduling of additional Councillor Workshop sessions during 2018 for the purposes of formulating the draft LEP.

18. In October 2017, the NSW Government released the draft Greater Sydney Region Plan and the revised draft South District Plan. The draft Greater Sydney Region Plan and Draft South District Plan outlined the need for councils to update their local environmental plans once both of the State Government Plans were finalised. The draft South District Plan also sets out a requirement for councils to prepare a Housing Strategy for the local government area. At the same time, the Environmental Planning & Assessment Act 1979 (EP&A Act) was in a review phase, with the Environmental Planning & Assessment Bill 2017 (Bill) being passed by Parliament and awaiting assent. The Bill set out a requirement that councils must draft a Community Participation Plan and a Local Strategic Planning Statement for the local government area.

19. Council staff prepared a Council report to respond to Notice of Motion 015-17, the Bill, the draft Greater Sydney Region Plan and the Draft South District Plan, by recommending the preparation of a Housing Strategy, Community Participation Plan, Local Strategic Planning Statement and a principal Local Environmental Plan for the local government area.

20. Council resolved on 26 February 2018 (CCL001-18) that:

a. The report on the Georges River Principal Local Environmental Plan be received and noted.

b. Council endorse the preparation of a Housing Strategy, Community Participation Plan and Local Strategic Planning Statement for the Georges River local government area.

c. Council endorse the preparation of a principal Local Environmental Plan for the Georges River local government area.

21. In March 2018, the amendments to the EP&A Act came into force and the Greater Sydney Region Plan and the South District Plan were finalised.

22. Council has commenced the drafting of the Georges River principal local environmental plan and has a dedicated planning resource for this project.

23. Council is awaiting the release of guidelines to inform the drafting of a Housing Strategy, amendments to the Environmental Planning & Assessment Regulation 2000 to inform the drafting of a Community Participation Plan and the release of Planning Secretary requirements on the preparation and making of Local Strategic Planning Statements, including with respect to the participation of councillors.

24. A Housing Strategy, Community Participation Plan and Local Strategic Planning Statement are all required to inform the drafting of the Georges River Local Environmental Plan.

South District Plan’s Housing Targets for Georges River

25. Council’s current planning controls will ensure that the 2016 – 2021 housing target of 4,800 (South District Plan, Planning Priority S5, p42) for the LGA will be delivered. Our current approvals are tracking beyond our five year housing target.

26. Significant housing is also being delivered within our centres, our transport corridors, the Kogarah North precinct and other areas of the former Kogarah Council. For example:

a. King Georges Road and Princes Highway Blakehurst – increase of 868 dwellings

b. Blakehurst waterfront, along the Princes Highway – increase of 300 dwellings

c. Kogarah Town Centre and Kogarah North precinct – increase of 2800 dwellings

d. South Hurstville precinct – increase of 1337 dwellings

e. Princes Highway Carlton precinct (B6 Enterprise corridor) – increase of 950 dwellings

f. Ramsgate, Rocky Point Road – increase of 327 dwellings

27. A Housing Strategy was prepared for Kogarah Council in July 2014. The Kogarah Housing Strategy supported the “New City Plan” amendment which was gazetted in May 2017 to the Kogarah Local Environmental Plan 2012. The former Hurstville Council did not have a housing strategy. The Hurstville LEP 2012 is a translation of the previous Hurstville LEP 1994.

28. Council requires a new housing strategy that addresses the existing and future housing needs of its population. Council has not assessed the LGA’s changing demographic forecasts of population and local housing demand since the current LEPs were gazetted in 2012. Nor has Council have an estimate of local housing needed in 20 years. This is the role of a housing strategy.

29. Each LGA within the Greater Sydney Region is required to prepare a Housing Strategy, Community Participation Plan and Local Strategic Planning Statement, under the Greater Sydney Region Plan, District Plans and the EP&A Act.

30. The purpose of these strategic documents is to inform any amendments to local planning controls. However, councils have not been given the opportunity to draft the documents as we are awaiting the guidelines to inform the drafting of a Housing Strategy, amendments to the Environmental Planning & Assessment Regulation 2000 to inform the drafting of a Community Participation Plan and the release of Planning Secretary requirements on the preparation and making of Local Strategic Planning Statements, including with respect to the participation of councillors.

31. If an assessment of where such development and density is appropriate in the LGA is not conducted at the strategic level through a Housing Strategy, Community Participation Plan and Local Strategic Planning Statement, the implementation of the new Low rise medium density housing code and new medium density housing types will result in an ad hoc approach to density and housing type with no consideration for local infrastructure demands and deficits, and no assessment of environmental, social or economic impacts of the development.

32. It should be noted that Council only received the Guideline from the Department of Planning and Environment for the preparation of the Local Strategic Planning Statement on 12 June 2018. The Housing Strategy Guidelines and Template have not been released by the Department of Planning and Environment.

Notice of Motion 035-18 - Low Rise Medium Density Housing Code

33. Notice of Motion 035-18 was adopted by Council on 28 May 2018 and states:

a. That the General Manager urgently prepare a report to Council in June 2018 on the NSW Coalition Government's new Low Rise Medium Density Housing Code, to be introduced on 6 July 2018, and the impact that this new Code will have on the Georges River Council LGA, including the extent of the likely significant increase in the number of dwellings permitted in low density areas and; the approximate number of sites in the LGA where the new Code will allow the fast-tracked development of manor houses, duplexes and terrace houses in low density areas.

b. That Council notes with serious concern that the new Code will allow Private Certifiers to approve 2 storey residential flat buildings comprising 3-4 dwellings, known as "manor homes", as well as duplexes and terrace housing, under the complying development approval process (SEPP) in R2 Low Density Residential Zones, with minimal neighbour notification and no requirement for objections to be considered.

c. That to protect our community from future impacts from the Code:

i. Council immediately and concurrently prepare a Planning Proposal to:

a. Prohibit manor houses from the R2 Low Density Residential Zone.

b. Prohibit terraces/town houses/villa development from the R2 Low Density Residential Zone.

c. Restrict dual occupancy development to current planning rules.

ii. Submit the Planning Proposal to the Greater Sydney Commission for Gateway approval.

iii. Delegate to the General Manager any administrative arrangements to progress the Planning Proposal, including exhibition, once a Gateway Determination has been received.

d. That Council write to the Minister for Planning, the Hon Anthony Roberts MP to seek an exemption from the Code’s SEPP amendments within the R2 zone and to request that Council’s local planning controls prevail over the SEPP until the Planning Proposal has been gazetted.

e. That Council apply for grant funding of $2.5 million to assist in accelerating the preparation of the Georges River LEP review within a 12 month period, with such funds being used for studies, resources and other items needed to advance the LEP review within the required two-year period.

f. That the NSW Coalition Government’s policy changes and its implications for our City be widely communicated to the community.

34. Council has written to the Minister for Planning, the Hon Anthony Roberts MP by letter dated 1 June 2018 seeking an exemption from the Code’s SEPP amendments within the R2 zone. The letter requests that Council’s local planning controls prevail over the SEPP until the Planning Proposal has been gazetted.

35. Council by letter dated 4 June 2018 has applied for grant funding of $2.5 million to assist in accelerating the preparation of the Georges River LEP review, with such funds being used for studies, resources and other items needed to advance the LEP review within the required two-year period.

Impact of the new Code within Georges River LGA

36. The following table (Table 1) provides an outline of the planning provisions that will apply for complying development under the Medium Density Housing – Low Rise Medium Density Housing Code within Georges River LGA.

37. It should be noted that the following directions apply and overrule the local environmental plans of Council:

a. Direction 5: Only the following types of development may be included in the Land Use Table: Add “Multi dwelling housing (terraces)” after “Multi dwelling housing”.

b. Direction 6: Manor houses must be permitted wherever multi dwelling housing is permitted in the Land Use Table.

c. Direction 7: Multi dwelling housing (terraces) cannot be prohibited in a zone if multi dwelling housing is permitted in that zone.

38. In summary:

a. The Kogarah LEP 2012 permits Dual Occupancies in the R2 Low Density Residential Zone and Dual Occupancies and Multi Dwelling Housing in the R3 – Medium Density Residential Zone.

b. The Hurstville LEP 2012 permits Dual Occupancies and Multi Dwelling Housing in the R2 and R3 Zones.

39. The Low Rise Medium Density Housing Code and its accompanying legislative changes will permit:

a. manor housing and terrace housing in the R2 and R3 residential zones under the Hurstville LEP 2012;

b. manor housing and terrace housing in the R3 residential zone under the Kogarah LEP 2012; and

c. terrace housing for land listed in Items 17, 18 and 19 of Schedule 1 Additional Permitted Uses and that are zoned R2 under the Kogarah LEP 2012. Refer to Attachment 2 for the properties listed in Items 17, 18 and 19 of Schedule 1 to the Kogarah LEP 2012.

Table 1 - Planning provisions and the Code

Type of Housing	Low Rise Medium Density Housing Code	KLEP applicable controls	HLEP applicable controls
Dual Occupancy Attached or detached but not located above
Lot requirements – size		650m2 1000m2	630m2 1000m2
Lot Width	Width 12m
Height	8.5m
Maximum gross floor area	400m2 – 2000m2: 25% of lot area + 300m2 >2,000m2: 800m2
Manor Houses, Dual occupancies (located above part of another dwelling) manor house means a building containing 3 or 4 dwellings, where: (a) each dwelling is attached to another dwelling by a common wall or floor, and (b) at least 1 dwelling is partially or wholly located above another dwelling, and (c) the building contains no more than 2 storeys (excluding any basement).
Lot size requirements – manor house	600m2
Lot size requirements - dual occupancy		650m2 1000m2	630m2 1000m2
Lot Width	15m width
Height	8.5m
Maximum gross floor area	The maximum gross floor area of all buildings on a lot is 25% of the lot area plus 150m2, to a maximum of 400m2.
Multi dwelling housing (terraces) multi dwelling housing means 3 or more dwellings (whether attached or detached) on one lot of land where: (a) each dwelling has access at ground level, and (b) no part of a dwelling is above any part of any other dwelling, and includes multi dwelling housing (terraces). Note. Multi dwelling housing is a type of residential accommodation—see the definition of that term in this Dictionary. multi dwelling housing (terraces) means multi dwelling housing where all dwellings are attached and face, and are generally aligned along, 1 or more public roads
Lot size requirements	Other than K in the HELP 2012 – 600m2	800m2	K – 500m2 per dwelling
Lot Width	18m width
Height	9m
Maximum gross floor area	R2 – 60% of lot area 80% of lot area

40. Table 2 below provides the approximate number of sites in the LGA where the new Low Rise Medium Density Housing Code will allow the fast tracked development of dual occupancies, manor housing and terrace housing.

Table 2 – Number of sites affected by Code per Zone/LEP

Type	LEP	Zone	Lot Area	Frontage	Estimated No. of Land
Dual Occ	HLEP12	R2
(attached & detached)			≥ 630sqm	≥ 12m	3130
			≥ 1000sqm	≥ 12m	170
		R3
			≥ 630sqm	≥ 12m	640
			≥ 1000sqm	≥ 12m	0
	KLEP12	R2
			≥ 650sqm	≥ 12m	2950
			≥ 1000sqm	≥ 12m	70
		R3
			≥ 650sqm	≥ 12m	800
			≥ 1000sqm	≥ 12m	1
Dual Occ	HLEP12	R2
(2 storey)			≥ 630sqm	≥ 15m	2350
			≥ 1000sqm	≥ 15m	150
		R3
			≥ 630sqm	≥ 15m	610
			≥ 1000sqm	≥ 15m	0
	KLEP12	R2
			≥ 650sqm	≥ 15m	2230
			≥ 1000sqm	≥ 15m	60
		R3
			≥ 650sqm	≥ 15m	730
			≥ 1000sqm	≥ 15m	1
Manor House	HLEP12	R2
			≥ 600sqm	≥ 15m	4030
		R3
			≥ 600sqm	≥ 15m	650
	KLEP12	R3
			≥ 600sqm	≥15m	810
Terraces	HLEP12	R2
			≥ 600sqm	≥ 18m	1460
			≥ 1500sqm	≥ 18m	10
		R3
			≥ 600sqm	≥ 18m	510
			≥ 1500sqm	≥ 18m	0
	KLEP12	R3
			≥ 800sqm	≥ 18m	570

41. Table 2 only details the sites that are eligible for complying development for the different types of housing that will be permitted under the new Low Rise Medium Density Housing Code. Land affected by the following is excluded from complying development:

a. Land that contains State heritage

b. Land that contains Item of environmental heritage’

c. Land that is in an environmentally sensitive area (Coastal SEPP 2018)

d. Land within a heritage conservation area

e. Land reserved for public acquisition

f. Land affected by classes 1 and 2 acid sulphate soils

g. Land in the foreshore area

h. Environmentally sensitive land (E1 and E2 zones)

Note: Table 2 does not distinguish sites that already have been developed for dual occupancy and multi-unit housing.

42. The table indicates that sites available under the SEPP for:

a. Dual occupancies with a 12m frontage is 7,761;

b. Dual occupancy with a 15m frontage – 6,131 (council controls);

c. Manor housing is 5,490; and

d. Terraces is 2,550.

43. The changes to the Standard LEP instrument amend both the Kogarah and Hurstville LEPs. If the development cannot be carried out as complying development due to an exclusion or a non-compliance with the new Low Rise Medium Density Housing Code, a DA can be lodged, as manor housing and terrace housing will be permitted in the R3 Medium Density Housing zone under Kogarah LEP 2012 and in the R2 and R3 zones under the Hurstville LEP 2012.

44. Therefore it is envisaged that there will be an increase in the DA and the CDCs numbers for manor housing, dual occupancies and terrace housing – and it is anticipated that manor housing will be a popular form of development.

45. It should be noted that in the 2017 calendar year:

a. Council received 101 DAs for Dual Occupancies with a total of $166,000.00 received in DA fees.

b. Out of the 101 DAs received, 61 construction certificates were issued by private certifiers.

c. Only 5 construction certificates were issued by Council with a total of $21,500.00 received in fees.

Kogarah Local Environmental Plan 2012

46. Items 17, 18 and 19 of Schedule 1 Additional Permitted Uses allow medium density housing to be carried out in the R2 Low Density Residential zone on land listed in the schedule.

47. Medium density housing is not currently permitted in the R2 Low Density Residential zone and is contrary to the objectives of the zone.

48. The proposed expansion of the definitions of multi dwelling housing and residential flat buildings to include multi dwelling housing (terraces) and manor houses, the amendment to Direction 5 and the introduction of Directions 6 and 7 in the Land Use Table means that the Multi dwelling housing land use is diametrically opposed to the R2 objective of providing for the housing needs of the community within a low density residential environment.

49. It is no longer appropriate to allow multi dwelling housing on land in the R2 Low Density Residential zone through an additional permitted use, until such time as Council has completed a Housing Strategy and reviewed all of the land in the LGA, to determine what land has merit on strategic planning grounds to accommodate medium density housing.

50. Dual occupancies are permitted with consent in the R2 Low Density Residential zone. It is not appropriate to apply the Low Rise Medium Density Housing Code to Dual occupancies in the R2 Low Density Residential zone as it changes the characterisation of the Dual occupancy land use into a land use that is only appropriate in the R3 Medium Density zone. The Dual Occupancy land use is only acceptable in the R2 Low Density Residential zone if the merit of each development is assessed against the objectives of the zone through the development assessment process.

51. If the Low Rise Medium Density Housing Code applied to the dual occupancy land use in the R2 Low Density Residential zone, the land use would no longer meet the low density character of the zone. The Code will increase the density of the area in a zone that does not have the requisite facilities or services for such medium density housing, to meet the day to day needs of residents in that zone.

52. The permissibility of medium density housing may continue on land zoned R3 Medium Density Housing and Council does not oppose the application of the Low Rise Medium Density Housing Code to the R3 Medium Density Housing zone, as such development meets the objectives of the zone and the community and Council have been consulted with in determining the appropriateness of such a zoning on that land. However, such provisions should be developed by Council through a housing strategy process.

Hurstville Local Environmental Plan 2012

53. Multi dwelling housing is currently permitted with consent in the R2 Low Density Residential zone. The proposed expansion of this land use to include manor houses and multi dwelling housing (terraces) means that the Multi dwelling housing land use will no longer meet the objectives of the R2 Low Density Residential zone. The purpose of the zone is to provide housing for the community in a low density residential environment, whilst ensuring that a high level of residential amenity is achieved and maintained. Multi dwelling housing is now contrary to these objectives, as it will adversely affect the surrounding residential amenity and the natural and cultural heritage of the area. This is further compounded by the Low Rise Medium Density Housing Code which will remove any consideration of the objectives of the zone and the impact of the development on the low density character of the area.

54. It is no longer appropriate to permit multi dwelling housing on land in the R2 Low Density Residential zone, until such time as Council has completed a Housing Strategy and reviewed all of the land in the LGA, to determine what land has merit on strategic planning grounds to accommodate medium density housing.

55. Dual occupancies are permitted with consent in the R2 Low Density Residential zone. However applying the density controls of the Low Rise Medium Density Housing Code to the R2 Low Density Residential zone will increase the housing density in the zone and therefore resulting in housing not meeting the objectives of a low density residential zone. The Dual Occupancy land use is only acceptable in the R2 Low Density Residential zone if the merit of each development is assessed against the objectives of the zone through the development assessment process.

56. If the Low Rise Medium Density Housing Code applied to the Dual occupancy land use in the R2 Low Density Residential zone, the land use would no longer meet the low density character of the zone, a high level of residential amenity could not be maintained and such development would compromise the amenity of the surrounding area, as whole streets of low density houses could become rows of dual occupancies without development consent and with no neighbour consultation. This would dramatically increase the density of the area in a zone that does not have the requisite facilities or services for such medium density housing, to meet the day to day needs of residents in that zone.

57. The permissibility of medium density housing may continue on land zoned R3 Medium Density Housing, however the intent of the planning proposal is for Council to develop its own provisions for multi-unit housing in the R3 zones, with such provisions being developed through a housing strategy process.

Impact of the Low Rise Medium Density Housing Code on the planning proposal process

58. The commencement of the Low Rise Medium Density Housing Code and medium density housing in the R2 Low Density Residential zone will undermine the Department’s own process for preparing local environmental plans, which requires such changes to land uses and zoning to have strategic justification and be appropriately assessed through the planning proposal process. This includes the application of a “suite of Ministerial Directions which require consideration for local plan making that covers issues such as employment, environment and heritage, housing, infrastructure and urban development” (Greater Sydney Region Plan, Objective 39, p. 183).

Impact of the expansion of multi dwelling housing on the Georges River LGA

59. The impact of the expansion of medium density housing in the Georges River LGA can be illustrated by understanding the area of land zoned R2 Low Density Residential and R3 Medium Density Residential; the number of lots eligible for manor houses, multi dwelling housing (terraces) and dual occupancies in the R2 Low Density Residential and R3 Medium Density Residential zones; and the number of multi dwelling housing developments that have been approved by the former Kogarah Council, former Hurstville Council and Georges River Council.

Impact of SEPP Controls on the Built Environment of the City

60. The SEPP provisions proposing a 12m frontage for dual occupancies and the provision of 600m2 site area and 15m frontage for manor houses will have an adverse impact on the built form characteristics of the R2 zoned areas within the City.

61. The impacts are:

a. the resulting land use would no longer meet the low density character of the R2 zone;

b. a high level of residential amenity could not be maintained as such development would compromise the amenity of the surrounding area, as whole streets of low density houses could become rows of dual occupancies without development consent and with no neighbour consultation;

c. a dramatic increase the density of the area in a zone that does not have the requisite facilities or services for such medium density housing, to meet the day to day needs of residents in that zone; and

d. The reduction of rear yard areas and tree canopy.

62. Council should be able to develop its own provisions for manor housing and terrace housing in the R3 zones, with such provisions being developed through a housing strategy process – looking at appropriate zoning, lot size, frontage, height and setbacks.

63. For these reasons Council is seeking exemption from the SEPP. The delivering of a diversity of housing through a range of housing typology such as manor houses, small scale residential flat buildings, terrace housing and dual occupancy should be developed by Council which reflect local characteristics.

Planning Proposal

64. The Planning Proposal has been drafted in accordance with the relevant sections of the Environmental Planning and Assessment Act 1979, Environmental Planning and Assessment Regulation 2000 and the following advisory documents prepared by the Department of Planning and Environment:

a. “A guide to preparing planning proposals” (August, 2016); and

b. “A guide to preparing local environmental plans” (August, 2016).

65. The drafting has included a review of the strategic planning framework and an LGA wide assessment as listed below:

a. Kogarah Local Environmental Plan 2012;

b. Hurstville Local Environmental Plan 2012;

c. State Environmental Planning Policies;

d. Ministerial Section 117 Directions;

e. Environmental, Social and Economic Impacts; and

f. Services and Infrastructure.

66. Section 55 of the Environmental Planning & Assessment Act, 1979 outlines that a planning proposal must explain the intended effect and the justification for making the proposed instrument and must include the following components:

a. A statement of the objectives and intended outcomes of the proposed instrument (Part 1)

b. An explanation of the provisions that are to be included in the proposed instrument (Part 2)

c. The justification for those objectives, outcomes and the process for their implementation (including whether the proposed instrument will comply with relevant directions under section 117) (Part 3)

d. Maps, where relevant, to identify the intent of the planning proposal and the area to which it applies (Part 4)

e. Details of community consultation that is to be undertaken before consideration is given to the making of the proposed instrument (Part 5)

67. Attachment 3 contains a copy of the Planning Proposal for Councils information.

68. The objectives of the Planning Proposal are to:

a. Ensure that appropriate strategic studies are carried out to “identify the right locations for growth, including areas that are unsuitable for significant change in the short to medium term” (Greater Sydney Region Plan, Objective 10, p. 64)

b. Uphold the integrity of the objectives of the R2 Low Density Residential zone

c. Protect the low density residential character of the R2 Low Density Residential zone

d. Ensure that the community is able to have their say on the future of the Georges River LGA, including the type of housing that is permitted and where it is permitted in the LGA

e. Ensure that social, environmental and economic factors are considered prior to allowing multi dwelling housing in the Georges River LGA

Conclusion

69. Council has raised concern with the impact of the Low Rise Medium Density Code and medium density housing in its R2 Low Density Residential Zone with the Department of Planning and Environment; and has outlined those concerns in this report.

70. By letter dated 24 May 2018 the Department has advised that the Minister has indicated that he would consider deferring the commencement of the code to allow councils to rectify local planning controls to meet the strategic intent of the council area; and that this deferral was contingent on the lodgement of a planning proposal with the Department by 27 June 2018.

71. A Planning Proposal has been prepared in accordance with the Council resolution dated 28 May 2018. This report recommends that the Georges River Local Planning Panel recommends to Council that the Planning Proposal – Low Rise Medium Density Housing Code, be forwarded to the delegate of the Greater Sydney Commission for a Gateway Determination under Section 3.34 of the Environmental Planning and Assessment Act 1979.

Financial Implications

72. Within budget allocation.

Risk Implications

73. Risks include:

a. Financial – loss of DA income from more housing development being approved under SEPP (Exempt and Complying Development Codes) 2008,

b. Operational – increase in number of DAs lodged for dual occupancies, terrace housing and manor housing, the changes to the Standard LEP instrument amend both the Kogarah and Hurstville LEPs. If the development cannot be carried out as complying development due to an exclusion or a non-compliance with the new Low Rise Medium Density Housing Code, a DA can be lodged, as manor housing and terrace housing will be permitted in the R3 Medium Density Housing zone under Kogarah LEP 2012 and in the R2 and R3 zones under the Hurstville LEP 2012,

c. Environmental - the resulting land use would no longer meet the low density character of the R2 zone; a high level of residential amenity could not be maintained as such development would compromise the amenity of the surrounding area, as whole streets of low density houses could become rows of dual occupancies without development consent and with no neighbour consultation; a dramatic increase the density of the area in a zone that does not have the requisite facilities or services for such medium density housing, to meet the day to day needs of residents in that zone; and, the reduction of rear yard areas and tree canopy.

Community Engagement

74. Community engagement will be conditioned through the gateway determination.

File Reference

Trim File 18/1177

ATTACHMENTS

Attachment ⇩1	Letter dated 24 May 2018 from Department of Planning on requirements for a planning proposal which seeks deferral of Code
Attachment ⇩2	Schedule 1 - Additional Permitted Uses under the Kogarah LEP 2012
Attachment ⇩3	Planning Proposal

Georges River Council – Ordinary Meeting - Monday, 25 June 2018 Page 98

Item: CCL032-18 Offer to Enter Into a Voluntary Planning Agreement in Association with DA2017/0205 - 1-5 Treacy Street, Hurstville

Author: Executive Strategic Planner

Directorate: Environment and Planning

Matter Type: Environment and Planning

Recommendation;

(a) That Council accept and endorse the written offer dated 18 May 2018 from GR Capital Group Pty Ltd (Developer) to enter into a Voluntary Planning Agreement (VPA) (Attachment 1) for 1-5 Treacy Street, Hurstville, accompanying Development Application DA2017/0205 for construction of two and half additional levels of residential units above the mixed use development approved by Development Consent DA2014/0183, which provides the following:

i. the Developer provide a monetary contribution of $799,200 based on a residual land value rate of $1,350 per square metre and additional gross floor area of 1,184m² (noting that the approved gross floor area is to be confirmed as part of drafting the VPA);

ii. the final VPA is in addition to section 7.11, 7.12 and 7.24 contributions (previously section 94, s94A and s94EF contributions) applicable in the development consent;

iii. the final VPA will contain provisions necessary to ensure compliance with the provisions of the Environmental Planning and Assessment Act 1979 and Council’s Policy on Planning Agreements.

(b) That Council delegate authority to the General Manager to negotiate the specific terms of the Voluntary Planning Agreement and to subsequently exhibit a draft of the Voluntary Planning Agreement in accordance with the relevant provisions of the Environmental Planning and Assessment Act and Regulation.

i. Authorise any minor changes to the draft Voluntary Planning Agreement following public exhibition, provided that those changes do not diminish the value or nature of the public benefits to be delivered as identified in (a) above; and

ii. Subsequently enter into the Voluntary Planning Agreement on behalf of Council.

Executive Summary

1. Development Application No. DA2017/0205 was subject to a Class 1 appeal in the Land and Environment Court. A deferred commencement consent to the additional two and half storeys was granted by the Court subject to the applicant entering into a VPA with Council.

2. An offer to enter into a Voluntary Planning Agreement (VPA) (see Attachment 1) was submitted on 18 May 2018 from GR Capital Group Pty Ltd (Developer) in conjunction with the Development Application No. DA2017/0205, relating to additional residential levels to the approved development under DA2014/1083.

3. In summary the offer to enter into a VPA provides the following:

i. the Developer will provide a monetary contribution of $799,200 for the additional gross floor area of 1,184m2 in the Development. This contribution value is based on a residual land value rate of $1,350 per square metre which is justified by a Residual Land Value Assessment Report prepared by Hill PDA Consulting (see Attachment 3). The additional gross floor area of 1,184m2 is to be clarified in the drafting of the VPA;

ii. the public benefits are over and above the section 7.11, 7.12 and 7.24 contributions (previously section 94, s94A and s94EF contributions) applicable to the development;

iii. the final VPA will be provided for generally in accordance with the template planning agreement contained in the Council’s Planning Agreement Policy and will contain provisions necessary to ensure it complies with the EP&A Act.

4. The Development Application No. DA2017/0205 was subject to a Class 1 appeal in the Land and Environment Court. A deferred commencement consent to the additional two and half storeys was granted by the Court subject to entry into a VPA. The development consent states that within twelve months of the Determination Date of the consent:

“the applicant is to enter into a planning agreement under s7.4 of the Environmental Planning and Assessment Act 1979 with the Council generally in accordance with the terms of the “Offer to Enter into a Voluntary Planning Agreement” from GR Capital Group Pty Ltd dated 18 May 2018 which constitutes the applicant’s offer for the purposes of s7.4(3) of the Environmental Planning and Assessment Act 1979 to enter into a planning agreement.

The applicant is to provide evidence to the Council sufficient to enable the Council to be satisfied as to the above matter within twelve (12) months from the Determination Date of this consent together with a bond for the dollar amount specified in the agreement.

The consent is not to operate until evidence of the executed planning agreement is provided to Council and written approval of the acceptance and execution of the planning agreement has been given by Council to the applicant”.

5. Whilst the formal offer contemplates a monetary contribution of $799,200, this amount was calculated based upon an earlier reiteration of plans before the final amended plans were agreed. The final approved gross floor area is to be confirmed in the drafting of the VPA and contribution value calculated on this area.

6. The Applicant now seeks to give effect to the condition of the Deferred Commencement Consent.

7. The letter of offer to enter into a VPA and public benefits have been assessed against Council’s Policy on Planning Agreements and are considered to be satisfactory in respect of the Acceptability Test under the Council’s Planning on Agreements Policy.

8. It is recommended that Council accept and endorse the offer to enter into a VPA dated 18 May 2018 and that the Council delegate authority to the General Manager to negotiate the specific terms of the VPA, and to subsequently exhibit a draft of the VPA. Following this, that the General Manager have authority to enter into the VPA on behalf of Council, with authority to make any minor changes to the draft VPA following public exhibition that do not diminish the value or nature of the public benefits.

Background

9. Development Consent DA2014/1083 was granted on 1 April 2015 for an eleven (11) storey mixed retail/residential development (comprising 76 residential units) with basement car parking at 1-5 Treacy Street, Hurstville. This consent has been modified on three occasions. A VPA was entered into in association with the DA2014/1083 (see details below)

10. Development Application No. DA2017/0205, lodged on 3 July 2017, sought consent for the construction of five (5) additional levels (consisting of an additional 31 residential units) to the approved mixed development under Development Consent DA2014/1083 (as modified), and changes to the basement levels on 1-5 Treacy Street Hurstville.

11. The proposed development under DA2017/0205, did not comply with the Hurstville Local Environmental Plan 2012 development standards for building height and floor space ratio. A Clause 4.6 – Exception to Development Standard could not be considered due to the extent of the variation proposed and as such the Application was refused under delegated authority on 5 October 2017.

Figure 1: Aerial photograph of 1-5 Treacy Street, Hurstville (outlined in purple) and surrounds

12. A class 1 appeal against the refused application was filed by GR Capital Group Pty Ltd in the Land and Environment Court on 9 October 2017.

13. The Court proceedings resulted in significant amendment to the plans including a reduction in height and floor space together with an improved design from that contemplated with the original application. The Council’s experts were satisfied that the proposal was acceptable at two and a half storeys (11 residential units). In addition, the VPA offer had been made during the course of the proceedings.

14. Accordingly, agreement was reached between the Developer and Council on 29 May 2018 and Commissioner Brown of the Court subsequently endorsed a section 34 Agreement between the parties. This Agreement gave a Deferred Commencement Consent No. DA2017/0205 for an additional two and half storeys to the development (consisting of 11 residential units) subject to entry into a VPA.

15. A condition of the Deferred Commencement Consent is that within twelve months of the Determination Date of the consent is as follows:

16. The Applicant now seeks to give effect to the condition of the Deferred Commencement Consent.

Existing VPA relating to DA2014/1083

17. There is an existing executed VPA between Council and GR Capital Group Pty Ltd relating to the Development Application DA2014/1083 for 1-5 Treacy Street and 1 Hill Street, Hurstville (Attachment 2).

18. The VPA was executed on 14 March 2016 and in summary provides for the following public benefits:

- Dedication of a 27.3m² strip of land on The Avenue frontage for footpath and road widening (including drainage, electrical and other services relocation for footpath and road widening).

- Dedication of commercial floor space, 81m²and 1 at grade car space.

- Fit out of commercial floor space.

- Public domain works to Treacy Street frontages (adjoining & opposite the Site) -footpath and paving upgrade, landscaping and public furniture.

- Public domain works to The Avenue frontages (adjoining & opposite the Site) - construction of footpath, kerb/ gutter and landscaping and retaining wall.

- Reporting, site establishment, demolition and earthworks.

- Maintenance of landscaping works.

19. The public benefits under the VPA are to be provided prior to the issue of the first Occupation Certificate for the Development and are in addition to the development contributions conditioned on the Consent.

Offer to enter into a Voluntary Planning Agreement relating to DA2017/0205

20. An offer to enter into a Voluntary Planning Agreement (VPA) was submitted on 18 May 2018 from GR Capital Group Pty Ltd (Developer) in conjunction with the Development Application No. DA2017/0205, relating to additional residential levels to the approved development under DA2014/1083 (see Attachment 1).

21. In summary the Developer offers to pay a monetary contribution based on $1,350 per square metre of additional gross floor area above the quantum permitted under Council’s planning controls for the site, sought as part of the Development Application. Whilst the formal offer contemplates a monetary contribution of $799,200, this amount was calculated based upon an earlier reiteration of plans before the final amended plans were agreed. The final approved gross floor area is to be confirmed in the drafting of the VPA and the monetary contribution calculated.

22. The offer based on the RLV of $1,350 per square metre per GFA is discussed later in this report.

23. The public benefits in the VPA offer are over and above the usual section 7.11, 7.12 and 7.24 contributions (previously section 94, s94A and s94EF contributions) applicable to the development;

24. In accordance with Council’s Policy on Planning Agreements, the Developer has provided additional information to support the VPA offer in respect of the residual land value associated with the additional floor space proposed by the Development Application. The Residual Land Value Assessment Report - 1-5 Treacy Street, Hurstville prepared by Hill PDA Consulting (April 2018) (Attachment 3) recommends a residual land value of $1,350 per square metre of GFA.

Assessment of the offer

25. The letter of offer and public benefits has been assessed in accordance with Councils Policy on Planning Agreements and the ‘Acceptability Test’ contained in the Policy as follows:

Does the Planning Agreement:	Assessment
(a) Satisfy the statutory requirements for planning agreements contained in the Act and Regulation?	· The purpose of the letter of offer is to outline the general terms on which the VPA will be based. The letter of offer states that “the final voluntary planning agreement will be provided for generally in accordance with the template contained in the Planning Agreement Policy and will contain provisions necessary to ensure that it complies with the Environmental Planning and Assessment Act 1979 and the developer’s interests are protected”. The letter of offer to enter into a VPA does not constitute ‘a planning agreement’ under the terms of the Act and Regulations. As such it does not need to fully satisfy the statutory requirements of the EP&A Act and Regulations. A condition of the Deferred Development Consent is that the applicant is to enter into a VPA under s7.4 of the EP&A Act and the consent is not to operate until a VPA is executed. · As outlined above, the letter of offer is to provide a monetary contribution in the amount of $799,200 based on a RLV of $1,350 per sqm for the additional GFA of 1,184sqm (which is to be clarified). In accordance with the EP&A Act, the VPA will specify that this monetary contribution will be used for or applied towards a public purpose. This may include the provision of (or the recoupment of the cost of providing) public amenities or public services and the provision of (or the recoupment of the cost of providing) transport or other infrastructure relating to land. · Other legislative requirements for VPAs include, but are not limited to, securities, dispute mechanisms, the application of section 7.11 and 7.12 development contributions (previously section 94 and section 94A). In this case, the letter of offer states that the VPA would not exclude the application of s7.11, 7.12 or 7.24 contributions. A condition in the Deferred Development Consent levies a section 7.11 contribution of $180,562.73 under the Hurstville Section 94 Development Contributions Plan 2012. In respect to securities a condition of the Deferred Development Consent is that a bond for the dollar amount specified in the agreement is be provided prior to the consent operating. In respect of dispute mechanisms, these will be addressed in the drafting of the VPA. Council’s Policy on Planning Agreements template for Planning Agreements provides standard clauses in this regard and also require the VPA be registered on the title of the Developer’s Land. · A further statutory requirement is the public notification of the proposed Planning Agreement, once both parties have agreed on its final form. The minimum exhibition period under the EP&A Act is 28 days.
(b) Comply with the principles set out in clause 2.3 of this Policy?	· Clause 2.3 of the Council’s Policy on Planning Agreements contains the following eleven (11) principles on the Council’s use of planning agreements: (a) “planning decisions must not be bought or sold through planning agreements; (b) the Council will not allow planning agreements to improperly fetter the exercise of its functions under the Act, Regulation or any other Act or law; (c) the Council will not use planning agreements for any purpose other than a proper planning purpose; (d) the consideration, negotiation and assessment of a proposed planning agreement will be separate from the consideration of the planning merits of a development application or planning proposal; (e) the Council will not use planning agreements as a means to overcome revenue raising or spending limitations to which it is subject or for other improper purposes; (f) development that is unacceptable on planning grounds will not be permitted because of public benefits offered by developers that do not make the development acceptable on planning grounds; (g) the Council will not seek benefits under a planning agreement that are wholly unrelated to the development; (h) in assessing a development application or planning proposal, the Council will not take into consideration planning agreements that are wholly unrelated to the subject matter of the development application or planning proposal, nor will the Council give disproportionate weight to a planning agreement; (i) the Council will not allow the interests of developers, individuals or interest groups to outweigh the public interest when considering a proposed planning agreement; (j) the Council will not improperly rely on its position in order to extract unreasonable public benefits from developers under planning agreements; and (k) where the Council has a commercial stake in development the subject of a planning agreement, it will take appropriate steps to ensure that it avoids a conflict of interest between its role as a planning authority and its interests in the development”. · Taking the above principles into consideration, Council staff and solicitors negotiated the terms of the letter of offer to enter into a VPA. · The determination of the DA was subject to Court proceedings which resulted in agreement being reached between the Applicant and Council on 29 May 2018 and Commissioner Brown of the Court subsequently endorsed a section 34 Agreement between the parties. This Agreement gave consent to the additional two and a half storeys subject to entry into a VPA which is to be based on the letter of offer. · The monetary contribution will provide public benefits that are directly in relation to ameliorating impacts of the development brought about by the additional gross floor area of the development above the current development standards in Hurstville LEP 2012.
(c) Be directed towards a proper or legitimate planning purpose ordinarily ascertainable from the statutory planning controls and other adopted planning policies applying to development and the circumstances of the case?	· As discussed under item ‘(a)’ above, the VPA will provide that the monetary contribution be used for a public purpose which may include the provision of public amenities or services and the provision of transport or infrastructure relating to the land and within the Hurstville City Centre. · This is consistent with the suggested infrastructure works listed in Appendix F of Council’s Policy on Planning Agreements.
(d) Provide for public benefits that bear a relationship to the development that is not wholly unrelated to the development?	· The monetary contribution will be applied to public benefits that will bear relationship to the development, and also provide benefit to the greater public. · The public benefits will generally be within the Hurstville City Centre and address the additional demand and impacts of the development.
(e) Produce outcomes that meet the general values and expectations of the public and protect the overall public interest?	· The general expectations of the public and the protection of the public interest in the case of development, is that the developer will bear some cost in ameliorating against the impacts their private development of their land on its neighbours and the greater community. Whilst development contributions plans raise funds for Council to put toward capital projects to mitigate against the impacts of ongoing development, those plans are based on particular predictions made from planning controls in place at the time the plans were published. Planning Agreements are able to step in where particular development was ‘unforeseen’ by the Development Contributions Plan, i.e. where the developer seeks an increase over and above the current development standards contained in a Local Environmental Plan to obtain a greater outcome. · The Deferred Commencement Consent grants consent to a development that exceeds the development standards in Hurstville LEP 2012. · In accordance with Council’s Policy on Planning Agreements, the Developer has provided additional information to support the VPA offer in respect of the residual land value associated with the additional floor space proposed by the Development Application. · The Residual Land Value Assessment Report - 1-5 Treacy Street, Hurstville prepared by Hill PDA Consulting (April 2018) providing justification for a residual land value of $1,350 per square metre. · As such the monetary contribution contained in the letter of offer, provides further mitigation against the impact of the development commensurate with the uplift sought in the development controls. As such they can be reasonably viewed to be meeting the general values and expectations of the public.
(f) Provide for reasonable means of achieving the relevant purposes and outcomes and securing the benefits?	· The VPA will provide timelines by which the public benefits are to be delivered. · A condition of the Deferred Commencement Consent provides that “a bond for the dollar amount specified in the agreement” be provided as security prior to the consent operating. This bond will be held by Council until such time as the monetary contribution is paid to Council.
(g) Protect the community’s reasonable planning expectations and avoid environmental harm?	· As per item ‘(e)’ above, the public benefits to be provided under the VPA will enhance the public domain and infrastructure and provide some amelioration against the impacts of the development. In terms of avoiding environmental harm, this is addressed by the Development Consent.
(h) Ensure the quantum of the public benefit offered is commensurate with the value of the development contributions which the Council considers are reasonably due in the circumstances?	The quantum of the public benefit offered in the letter of offer is considered to be reasonable for the following reasons: · The proposed VPA will provide a monetary contribution based on $1,350 per square metre of additional GFA. · The contribution is considered reasonable considering the estimated land value capture amount, which is discussed below. Economic consultants, Hill PDA Consulting, assessed the development and recommended a residual land value of $1,350 per square metre of GFA.

Land Value Capture – Hill PDA Consultant Assessment

26. Council’s Policy on Planning Agreement, 2016 provides that where development proposed in a development application does not comply with development standards and controls and it will, if approved, results in an increase in the value of the land or the development, Council will determine appropriate contributions by applying land value capture or use an alternative mechanism. For the purpose of the Policy, land value capture is a public financing mechanism by which Council captures for the community’s benefit a share of the unearned increment to developers in land value.

27. The Policy provides a formula for calculating a monetary contribution associated with land value capture, by assessing the residual land value (RLV) of a site under the existing and proposed controls. The Policy then seeks to capture 50% of the increase in the RLV for public benefits.

28. The Policy provides average RLV rates for precincts in the Hurstville City Centre. The subject site is within the Hurstville East Precinct which has an average residential RLV of $2,500 per sqm. As the RLVs in the Policy are averages, the Policy states that if a developer does not agree with the RLVs in the Policy then:

“the developer will be required to provide the Council with sufficient details, costs and valuations to determine a realistic figure for the residual land values under the existing and altered statutory planning controls, or resulting from the exceedance of development standards/planning controls.

Such documentation provided to the Council is to be verified by a certified practising valuer or a qualified and experienced land economist, or both if necessary. The Council’s staff responsible for the planning agreement may engage an independent land economist and other specialists to review information provided by the developer”.

29. As outlined above, the Developer engaged land economists, Hill PDA Consulting, to assess the RLV for site. The Residual Land Value Assessment Report - 1-5 Treacy Street, Hurstville (April 2018) (see Attachment 3 - Confidential) provides a detailed assessment of the development and local market and recommends a residual land value of $1,350 per square metre of GFA. Based on Council’s Policy on Planning Agreements Policy land value capture formula, this results in monetary contribution of $799,200 (which reflects 50% of the land value uplift) for the additional GFA of 1,184sqm.

30. The Hill PDA report provides a current analysis and justification for the residual land value. When benchmarked against other recent residual land value assessment reports undertaken by Council’s consultants in the Hurstville City Centre, the RLV rate of $1,350 per square metre of GFA generally reflects the current rates established elsewhere in the centre and is considered reasonable. Each site has unique residual land values reflecting the planning controls, site specific issues, neighbourhood amenity, access to local infrastructure and services and as such there is variation of the RLV rates across the city centre. The offer is considered reasonable and to satisfy the Land Value Capture component of Council’s Policy on Planning Agreements.

Next Steps

31. Should Council endorse and accept the offer to enter into a VPA, the following steps will need to occur:

a. The General Manager negotiate and finalise the draft Planning Agreement with the Developer. Council’s solicitor will prepare the draft documentation in accordance with Council’s Policy on Planning Agreements and EP&A Act,

b. Once agreement is reached on the draft VPA between the parties, the draft VPA will be publicly notified for a minimum of 28 days in accordance with the EP&A Act and Regulation.

c. Following public notification, should no submissions be received objecting the VPA, the General Manager be delegated authority to authorise minor changes to the draft VPA, provided that those changes do not diminish the value or nature of the public benefits to be delivered, and to subsequently enter into the VPA on behalf of Council.

d. Once entered into, the VPA is registered on the title of the land.

Financial Implications

32. Council’s Policy on Planning Agreements states that Council will generally require a planning agreement to make provision for payment by the developer of Council’s costs of negotiating, preparing, and executing the planning agreement, as well as monitoring, enforcing and administering the planning agreement. The draft VPA will make provision for Council’s reasonable costs to be meet by the Developer.

Risk Implications

33. Enterprise risk/s identified and management process applied.

34. As noted above, a condition of the Deferred Commencement Consent is that “the consent is not to operate until evidence of the executed planning agreement is provided to Council and written approval of the acceptance and execution of the planning agreement has been given by Council to the applicant. Additionally the condition of consent requires, “a bond for the dollar amount specified in the agreement” be provided as security.

Community Engagement

35. Public notice of the draft VPA will be conducted should Council endorse and accept the letter of offer to enter in to a VPA. The draft VPA will be on public notice for not less than 28 days before the agreement is entered into, in accordance with the EP&A Regulation. Copies of the draft VPA will be made available on Council’s website, Hurstville and Kogarah Libraries during this period.

File Reference

18/820

ATTACHMENTS

Attachment ⇩1	Offer to enter into a Voluntary Planning Agreement for 1-5 Treacy Street, Hurstville (relating to DA2017/0205) from GR Capital Group Pty Ltd
Attachment ⇩2	Executed Planning Agreement between Council and GR Capital Group Pty Ltd for 1-5 Treacy Street (executed 14 March 2016)
Attachment 3	Hill PDA Residual Land Value Assessment Report for 1-5 Treacy Street, Hurstville (April 2018) (Confidential)

Georges River Council – Ordinary Meeting - Monday, 25 June 2018 Page 155

11. Finance and Governance

Item: CCL033-18 Confirmation of Georges River Council Organisational Structure 2018

Author: Executive Manager People and Culture

Directorate: Office of the Chief Operating Officer

Matter Type: Finance and Governance

Recommendation:

That Council:

(a) Re-determine the organisation structure as detailed in this report.

(b) Approve the staged removal of the Transformation and Change Directorate and associated Senior Staff position from the organisation structure.

(c) Approve the establishment of a temporary (2 year) Senior Staff position in the organisation structure being the Director City Strategy and Innovation to advance the portfolio and priorities of the new City Strategy and Innovation Directorate.

(d) Approve the draft budget for the financial year 2018-19 that includes the implementation of the changes to the staffing establishment and the necessary funding required for the creation of the City Strategy and Innovation Directorate as outlined in this report.

Executive Summary

1. This report details Council’s review and re-determination of the organisation structure as required by section 333 of the Local Government Act 1993.

2. Council has been consulted on the following proposed changes to the organisation structure that are detailed in the attached confidential report submitted to the Finance and Governance Committee meeting (9April 2018):

a. Dissolution of the Transformation and Change Directorate and removal of the associated Senior Staff position by the end of 2018;

b. Establishment of a new Directorate - City Strategy and Innovation including the establishment of a new temporary (2 year) Senior Staff position being the Director City Strategy and Innovation;

c. The transfer of the Premium Facilities and Properties Department from the Office of the General Manager to the Community and Culture Directorate;

d. Retitle the position of General Counsel to Director Legal Services;

e. Increase to staffing in the service areas of Event Management, Community Safety and Chinese community support (Community and Culture Directorate);

f. Retitle the Manager of Communications, Customer Service and Events to Manager Customer Service and Events;

g. Transfer the staff within Communications to the new City Strategy and Innovation Directorate;

h. Increase in staffing to provide environmental policy, engagement and education services within the Environment and Planning Directorate;

i. Increase in staffing in the areas of waste education, waste investigations and swimming pool compliance within the Environment and Planning Directorate, (funded through existing financial reserves and additional revenue streams); and

j. Retitle the Chief Operating Directorate to the Business and Corporate Services Directorate. The position of Chief Operating Officer will be retitled to Director Business and Corporate Services.

3. Council was also consulted on the funding resources associated with the implementation of the changes to the staffing establishment and for the creation of the City Strategy and Innovation Directorate.

Background

4. At the Council meeting held on 26 February 2018, Council unanimously resolved that the General Manager, as part of the review and re-determination of the organisational structure as required by section 333 of the Local Government Act 1993, be requested to investigate the establishment of a ‘City Futures’ Unit (or similar) in order to:

§ Advance the status and influence of Georges River Council across all levels of government, and in particular, in the Sydney metropolitan area and the State of NSW.

§ Enhance the reputation and brand of the City of Georges River (and its Council) through the preparation and delivery of a City Reputation Strategy.

§ Allow a greater focus on advocacy for the City to assist in securing the necessary government investment towards infrastructure, grant funding, community programs and other government projects to support our population growth.

§ Prepare a 30 year Vision for the City of Georges River to help shape the City with a solid future direction which will assist the Council to set the correct policies and invest in the right infrastructure to secure our economic and social fortunes for the long term.

5. Following a review of the organisation structure, Council received a report in April 2018 detailing staff establishment changes and proposing the creation of a City Strategy and Innovation Directorate comprising 11 staff (5 new positions and 6 positions transferred from other Directorates). Council resolved to hold a workshop to discuss the proposal in greater detail.

6. A Councillor workshop was held in May 2018 at which the changes proposed for the organisation structure and staffing establishment were discussed. At the conclusion of the workshop a request for further information was made on determining the Council’s organisation structure, employment costs and the City Strategy and Innovation work program.

7. A final workshop was held in June 2018 where the portfolio and priorities of the proposed City Strategy and Innovation Directorate was presented to Councillors together with a range of staffing options and associated budgets. Councillors demonstrated support for the establishment of the City Strategy and Innovation Directorate and elected a staffing structure that included the establishment of a new temporary (2 year) Senior Staff position.

8. Councillor queries about the process of re-determining the organisation structure for the Council and current employment costs were also addressed at the workshop.

Review and Re-determination of the Organisation Structure

In accordance with sections 332 and 333 of the Local Government Act 1993 within
12 months of an ordinary election, the Council must review and may re-determine the structure (i.e. senior staff (Director) positions, their reporting lines and the resources (budget) allocated towards the employment of staff). (Refer to section 333 of the Act)

8.1 Current Organisation Structure

A Georges River Council permanent organisation structure was implemented in February 2017. This structure included a temporary (2 year) Transformation and Change Directorate and associated Senior Staff position to support the organisation to facilitate critical merger and transformation functions.

8.2 Re-determined Organisation Structure June 2018

The re-determined organisation structure removes the temporary Transformation and Change Directorate and associated Senior Staff position and establishes a temporary (2 year) City Strategy and Innovation Directorate.

The new Directorate includes the creation of a new temporary (2year) Senior Staff Position being the Director, City Strategy and Innovation.

9. City Strategy and Innovation Directorate

With an outwards focus concentrating on positioning the Georges River area and the Council as a strong and influential entity in both the Sydney metropolitan region and in NSW, the new City Strategy and Innovation Directorate will deliver on critical outcomes in driving vitalisation, health and prosperity of the City and will continue to build and improve the City’s reputation and brand.

10. The portfolio and priorities of the Directorate within 2018-2020 include:

10.1 City Reputation, Branding and Marketing

§ The new Directorate will be responsible for preparing a 30 year City Vision and a City Reputation Strategy, evolving Council’s position and exposure through branding, presence, extending networks and partnerships and logo identification.

§ A city’s reputation is strongly correlated with its success in attracting investment, business and trade, a skilled workforce, students and visitors for tourism and events. Perceptions about Georges River don’t always align with how we would like to position the city in the metropolitan area and nationally.

§ A new story needs to be told to change mindsets and differentiate our city through our genuine competitive advantages. This story needs to be told in a strategic, integrated and consistent way, not only by Council but by all Georges River image makers, and should reflect the actions we take to enhance our reputation through city-building projects and service improvements.

§ The Council merger and the projects and actions that will transform our city over the coming decade, provide a unique opportunity to reposition the city and unify marketing in line with best practice approaches.

§ With the adoption of a new city vision and the launch of the new brand/logo, the stage has been set to establish shared ownership of our city reputation by Georges River Council, businesses and the broader community, and integrate whole-of-city marketing and promotions to drive reputational change.

10.2 Communications (external and internal)

§ To maximise and leverage Council’s external presence and brand, it is proposed to transfer the existing Communications team (6 FTE) to work within the City Strategy and Innovation Directorate.

§ Our Communications team will help build the city’s story from ‘where we’ve come from’ to ‘what we have to offer.’ In this way we will move beyond defining our city brand, to building our city reputation. We will do this by focusing our messages on our competitive advantages, reflecting our brand values and demonstrating what makes us different from other Sydney metropolitan cities.

§ The Communications team will also continue to work on the merger projects and initiatives that have been introduced for the community and staff including:
‘Your Say’ community panel, annual community satisfaction survey, website development, intranet development, Community Engagement Strategy, etc.

10.3 Kogarah Health + Research Hub

§ Council needs to play an active role in facilitating the evolution of the emerging Kogarah Health and Research Hub. The 36 hectare Kogarah CBD provides a unique opportunity to attract business and investment to create the jobs of the future.

§ As one of Sydney’s fastest growing health and research precincts, Kogarah has the potential to become a unique national business location for health and medical research collaboration and innovation.

§ Supported by two major hospitals, a university campus and a TAFE, the precinct has the potential to attract world-class researchers and become an unprecedented investment opportunity for multi-national health and research companies to cluster and grow.

§ Council needs to take advantage of this opportunity to help drive innovation, research, knowledge creation and entrepreneurship in the Hub. Amongst other things, Council needs to:

- Develop a prospectus to attract business investment and jobs to the Hub

- Prepare an Investment Attraction Program for the Health Hub

- Investigate planning incentives for innovation/start-ups/investors

- Investigate financial concessions (rates, contributions, etc.) for businesses who locate to the Hub

- Identify investment opportunities/partnerships

- Lobby for additional infrastructure provision in/around the Hub

- Target Industry Sectors: biotechnology, medical technology, preventative health, e-health, medical conferences/training hub, clinical trials, etc.

10.4 The Heart of the City – Creating an Identity for Hurstville

§ The Hurstville CBD needs to be transformed into a lively, engaging city centre with its own identity - an inviting and vibrant destination.

§ We need to inject new life into the main streets and forgotten laneways, and celebrate our ‘Chinatown’ with less cars and increased pedestrian traffic.

§ Hurstville can become the cultural heart of our city with theatres/events, galleries, retail, hotels, clubs, restaurants, public art and plazas supporting our commercial centre. Council needs to plan and focus on generating sustainable areas of activation, quality infrastructure and a suite of diverse and safe social options.

11. Some key programs and projects that could be explored include:

- Laneways revitalisation: events and festivals; pop-ups, small bars, eateries and cafes; music and art; food and drink experiences, night-life strategy

- Small creative business hubs in clusters and refurbished spaces; business incentives for start-ups; hot spots for retail

- Streetscape improvements: paving; lighting upgrades; shared zones and road closures; art installations; new pedestrian linkages; plazas as destinations and meeting places; hot spots

- Cultural Strategy actions; live music, galleries, specialist retails, fashion outlets, food tourism

- Leveraging on our transport infrastructure, Council needs to position the Hurstville city centre as a destination appealing to the local demographic as the key place for retail, business and pleasure.

12. Georges River = Smart City

§ The new Directorate will also be responsible for embracing ‘smart cities’ solutions to maximise the use of information (data) to solve problems in a cost-effective, creative and environmentally sensitive way.

§ The Smart City concept covers many technologies representing a wide range of opportunities for Council to improve services to our community. We are already developing Smart City technology such as street furniture sensors, ‘power me’ tables and healthy living public space hardware, as part of our Federal grant funding initiative with UNSW. Building on this work the Directorate will explore further initiatives aimed at the better use of public assets and the improved delivery of Council services.

§ Council needs to be at the heart of the evolving Smart City movement by engaging in regional cooperation, procurement and bidding for grant funding wherever possible. The NSW Government is moving towards mandatory data sharing platforms and open data access by Councils. Georges River needs to ‘catch-up’ to those Sydney metropolitan councils who have already been invested in this work for some years.

§ Council needs to:

- Prepare a Digital/Innovation/Smart City Strategy

- Develop a suite of policies regarding privacy and data sovereignty, joint procurement, shared data platforms and communications networks

- Advocate for legislative reform for data sharing platforms across levels of government

- Use Smart City technologies to deliver current services more efficiently, deliver new services of demonstrable community benefit, deliver better environmental safety and economic benefits

- Selectively engage with major Telecos and IT companies to partner on projects and data sharing

- Target grant funding

§ Essentially, the roll-out of smart city solutions will be a key driver in improving the quality of life for Georges River residents by helping to reduce the cost of Council services (reducing the cost of living), identifying opportunities for investment in smart city infrastructure and planning, and building a more responsive Council.

13. Advocacy - Driving Legislative Reform and Investment

§ It is proposed to establish a new and focused advocacy stream to actively lobby and advocate for our local government area in relation to legislation, policy, grant funding and infrastructure decisions.

§ The focus is external and will concentrate on positioning the Georges River area and Council as a strong and influential entity in both the Sydney metropolitan region and in NSW.

§ A targeted approach to legislative and regulatory reform by Council will help shape and influence the impact that Federal and State government policies have on local government in NSW and in particular on Georges River Council.

§ Increased collaboration with State and Federal agencies will assist in exposing the capacity of Council to provide innovative and informative ideas as part of the legislation and policy making processes of governments.

§ Georges River Council has recently provided expert advice to governments on the operation of planning panels, infrastructure planning, smart city strategies, merger processes, best-practice governance and private certification systems.

§ In the past two years, Council has been selected to partner with the NSW government on various pilot programs and trials such as the Easy to Do Business Pilot and the CDC electronic pilot. Council needs to continue to be an important confidant of governments and be included in important legislative and policy-making discussions and taskforces.

§ Council needs to represent the interests of local residents and influence:

- Rating legislation reform (rate pegging)

- Funding arrangements/costs shifting/grant reform that delivers greater certainty and long term planning to Council

- Land use planning innovation; including meaningful consultation on legislation, SEPPS, Codes, certifiers and other reforms

- Development of regional infrastructure plans as part of the LEP and State budget process that provides a dedicated annual funding program

- Container Deposit Scheme funding impacts on Council’s waste budgets

- Delivery of climate change data tailored for local councils

- Regulatory reform to encourage innovative local energy solutions, power generation distribution and storage

- Creation of a dedicated fund to assist with CCTV network operations that are utilised by the State government

- Reform of the private certification system in NSW

14. In Pursuit of Grant Funding

§ In the 2017/18 financial year Council received $23.8 million in grants for capital works and $8.8 million for operational grants (eg: FAG and RMS grants). In 2018/19 it is projected that Council will $14.6 million and $8.1 million, respectively.

§ The record-breaking amount of capital grant funding in 2017/18 has allowed Council to deliver an ambitious capital works program across the city. However, the loss of Stronger Communities grant funding next year will result in a substantially smaller capital works program for the city.

§ At the moment Council relies on officers throughout various Departments to individually apply for grant funding and collaborate with each other to ensure consistency of applications and approaches and to prevent duplication.

§ The new Directorate will centralise and coordinate grant applications across all Departments of Council and across all state and national jurisdictions. A coordinated and targeted approach will also enable Council to seek out similar levels of grant funding as has been enjoyed this year and to ensure that our capital program does not diminish to a level where our 5 year program will take 10-15 years to deliver.

15. Riverwood and Other Priority Town Centres (Cool Places: Urban Oasis project)

§ The five town centres targeted by this program will benefit extensively due to their distinct location and sense of destination, serving growing local communities: Hurstville, Allawah, Mortdale, Penshurst and Riverwood. The town centres provide high density residential, strip shopping streets, commercial and industrial zones and integrated public transport nodes, air quality, and pedestrian counts and movement.

§ The Cool Places: Urban Oasis project aims to provide an enhanced tree canopy in urban town centres to deliver an improved experience for users of public space that will benefit local businesses and residents. By strategically selecting and locating street trees, town centres will become scenic destinations that drive the local economy. Environmental impacts include improved air quality and a reduction in the urban heat island effect. Smart technology will be used to monitor environmental and social impacts such as temperature.

§ The new Directorate will drive the applications for grant funding of this program and its implementation across the town centres.

16. Service Delivery Reviews and other Ongoing Merger Projects

§ A requirement of the merger included a review of all of the services delivered by the former council to determine why the service was delivered, key activities and costs of delivery, how the performance of the service was rated and whether it needed to be continued.

§ The Transformation and Change Directorate commenced this work with an audit of 56 Council services being undertaken in late 2017- early 2018.

§ Two critical service reviews have progressed to the next stage with a strategic review of Customer Service and Communications being completed. Both reviews have recommended important short and long-term improvements that should be introduced to provide an enhanced service to the community, eg: extending the hours of the duty planner, introduce customer advocates, increase the level of self-service options available to customers, etc.

§ It is important that this works continues after the Transformation and Change Directorate is dissolved. Whilst it could be incorporated into the ‘business as usual’ work plans of each Directorate it will likely not be progressed with the same urgency and focus (due to competing priorities) as if it were being undertaken by a central unit of Council.

§ The new Directorate will be responsible for completing the service delivery reviews in a targeted and prioritised manner with the review of child care services,
DA assessment, venue hire system and library services requiring immediate attention.

17. Council will be provided with a report on the progress of the new Directorate 12 months after it is established and resourced.

Financial Implications

18. The draft budget for the financial year 2018-19 includes funding for the implementation of the changes to the establishment and $580,700 in annual salary costs for the staffing structure of the City Strategy and Innovation Directorate as outlined in this report.

Risk Implications

19. No risks identified.

ATTACHMENTS

Attachment 1

Confidential - Confirmation of Organisational Structure - Finance and Governance Committee 09 April 2018(2) (Confidential)

Georges River Council – Ordinary Meeting - Monday, 25 June 2018 Page 165

Item: CCL034-18 Approval of Integrated Planning and Reporting Documents

Author: Senior Corporate Planner and Acting Chief Financial Officer

Directorate: Office of the General Manager

Matter Type: Finance and Governance

Recommendation;

(a) That Council note that following the public exhibition period, the:

a. Draft Community Strategic Plan 2028

b. Draft Delivery Program 2018 – 2019 to 2020 – 2021

c. Draft Operational Plan 2018 – 2019 including the budget, revenue policy and Schedule of Fees and Charges, and

d. Draft Resourcing Strategy

annexed to this report as Attachments 2 ,3 ,4 and 5 have been amended as detailed in the body of this report.

(b) That in accordance with Sections 402, 403, 404 and 405 of the Local Government Act 1993, the:

a. Draft Community Strategic Plan 2028

b. Draft Delivery Program 2018 – 2019 to 2020 – 2021

c. Draft Operational Plan 2018 – 2019 including the budget, revenue policy and Schedule of Fees and Charges, and

d. Draft Resourcing Strategy

including amendments referred to in (a) above be adopted.

(c) That Council note the Long Term Financial Plan as an essential decision making tool that is to be updated in line with decisions that may impact and effect the sustainability of Council.

(d) That Council adopt the reduction of $1 million in employee costs in the 2018-19 Budget, resulting in a change from the exhibited 2018-19 budget of $59.73m to $58.73m.

(e) That the 2018 - 2019 Schedule of Fees and Charges, subject to approval of (b) above, become effective as at 1 July 2018.

(f) That the General Manager be delegated authority to make minor editorial changes and enhancements prior to publishing the Integrated Planning and Reporting documents on Council’s website and providing a copy of the Community Strategic Plan to the Office of Local Government.

(g) That, in accordance with Sections 534, 535 and 538 of the Local Government Act, 1993, Council makes the following rates and charges for every parcel of rateable land within the Georges River Council Local Government Area for the year commencing 1 July 2018 as detailed in the Three Year Delivery Plan 2018-19 to 2020-21 including One Year Operational Plan 2018-19.

(h) That the former Kogarah City Council variation increase to general income of 2.3% for 2018-2019 be adopted.

(i) That in accordance with Sections 493, 494 and 535 of the Local Government Act 1993, Council make and levy the 2018-19 Residential Rate based on the latest valuations (Base Date 1 July 2016) and any supplementary valuations applicable as at 1 July 2018. As such the former Kogarah City Council Residential Rate will be at 0.0012411 cents in the dollar and apply to all properties categorised as Residential.

(j) That in accordance with Section 493 of the Local Government Act 1993, Council make and levy the 2018-19 Business Differential Rate based on the latest valuations (Base Date 1 July 2016) and any supplementary valuations applicable as at 1 July 2018. As such the former Kogarah City Council Business Rate will be at 0.0030690 cents in the dollar and apply to all properties categorised as Business, except for the following subcategories:

(i) Kogarah CBD Commercial Centre will be 0.0040920 cents in the dollar for 2018-19;

(ii) Blakehurst CBD Commercial Centre will be 0.0040920 cents in the dollar for 2018-19;

(iii) Hurstville CBD Commercial Centre will be 0.0040920 cents in the dollar for 2018-19;

(iv) Oatley CBD Commercial Centre will be 0.0040920 cents in the dollar for 2018-19;

(v) Ramsgate CBD Commercial Centre will be 0.0040920 cents in the dollar for 2018-19;

(vi) Blakehurst Industrial Area will be 0.0040920 cents in the dollar for 2018-19;

(vii) Carlton Industrial Area will be 0.0040920 cents in the dollar for 2018-19; and

(viii) South Hurstville Industrial Area will be 0.0040920 cents in the dollar for 2018-19.

(k) That in accordance with Section 548 of the Local Government Act 1993, Council levy and make the 2018-19 annual minimum amount of the former Kogarah City Council ordinary rates on each separate parcel of land or assessment to be $917.47.

(l) That the former Hurstville City Council variation increase to general income of 2.3% for 2018-19 be adopted.

(m) That in accordance with Sections 494 and 535 of the Local Government Act 1993, Council make and levy the 2018-19 Residential Rate based on the latest valuations (Base Date 1 July 2016) and any supplementary valuations applicable as at 1 July 2018. As such the former Hurstville City Council Residential Rate will be at 0.0015374 cents in the dollar and apply to all properties categorised as Residential.

(n) That in accordance with Section 493, 494, 495, and 535 of the Local Government Act 1993, Council make and levy the 2018-2019 Business Differential Rate based on the latest valuations (Base Data 1 July 2016) and any supplementary valuations applicable as at 1 July 2018. As such the former Hurstville City Council Business Rate will be at 0.0038851 cents in the dollar and apply to all properties categorised as Business. Special rates will be charged on properties in the below business districts, based on the following cents in the dollar:

(i) Hurstville Town Improvement District will be 0.00054742 cents in the dollar for 2018-19;

(ii) Mortdale Town Improvement District will be 0.00068785 cents in the dollar for 2018-19; and

(iii) Riverwood Town Improvement District will be 0.00066768 cents in the dollar for 2018-19.

(o) That in accordance with Section 548 of the Local Government Act 1993, Council levy and make the 2018-19 annual minimum amount of the former Hurstville City Council ordinary rates on each separate parcel of land or assessment to be $555.87.

(p) That interest charged on overdue rates for the year 1 July 2018 to 30 June 2019, be the rate set by the Minister for Local Government of 7.5% per annum, calculated on a daily basis.

(q) That in accordance with Section 496 of the Local Government Act 1993, the annual charges for the former Kogarah City Council Domestic Waste Management be set as $464.88 per annum for 2018-19.

(r) That in accordance with Section 496 of the Local Government Act 1993, the annual charges for the former Hurstville City Council Domestic Waste Management be set as $433.68 per annum for 2018-19.

(s) That in accordance with Section 496A of the Local Government Act 1993, the annual charges for Stormwater Management for 2018-19 be set as:

(i) Residential Stormwater $25.00 per rateable property

(ii) Residential Strata lot Stormwater $12.50 per rateable property

(iii) Business Stormwater $25.00 per 350 square meters or part thereof to a maximum of $1,500 per rateable property

(iv) Business Strata lot Stormwater $5.00 per rateable property.

(t) That the annual charges for Georges River Council other Waste Management Services be set as follows for 2018-19:

Charge Description	Charge Per Annum
Additional “red lid” bin garbage only service	$267.80
Residential categorised properties (vacant land site)	$59.28
Availability charge (dwellings with private waste contractor)	$59.28
Each Additional Domestic Recycling Service	$104.00
Each Additional Domestic Recycling Green Service	$137.80
Recycling Green Waste Service Strata Complex Sites	$137.80
Non-Residential Commercial Waste Service (240L MGB)	$491.00
Non-Residential Commercial Waste Service (1,100L MGB)	$2,050.00
Non-Residential Commercial Non-Rateable Waste Service	$491.00
Non-Residential Commercial Recycling Service	$246.00
Special Additional Waste Service	$123.76
Charge for Boarding Houses	$210.08
Non-Rateable Property	$491.00

Executive Summary

1. This report requests Council’s consideration and adoption of its draft Integrated Planning and Reporting documents, being the:

a. Draft Community Strategic Plan 2028

b. Draft Delivery Program 2018 – 2019 to 2020 – 2021

c. Draft Operational Plan 2018 – 2019 including the budget, revenue policy and Schedule of Fees and Charges, and

d. Draft Resourcing Strategy

as amended, following the public exhibition period.

2. The report seeks a resolution for the making of the required rates and charges for 2018 - 2019 financial year, in accordance with Section 535 of the Local Government Act 1993 pursuant to which Council must make each rate and charge by resolution of Council.

3. The report also provides an overview of the submissions received, copies of which have been provided to Councillors, and Council’s response.

Background

4. Local councils in NSW undertake their planning and reporting activities in accordance with the Local Government Act 1993 and the Local Government (General) Regulation 2005.

5. The legislation requires councils to work within an Integrated Planning and Reporting (IP&R) framework. The framework draws various plans together and includes a requirement to adopt, after 28 days of public exhibition, the following documents:

· A Community Strategic Plan (CSP) that outlines the community’s aspirations for the next 10+ years

· A four-year Delivery Program (three-year in the case of newly merged councils), and

· An annual Operational Plan.

The Resourcing Strategy, exhibited with the other IP&R documents and which details the workforce, funding and assets required to implement the Community Strategic Plan and Delivery Program, is also recommended for adoption.

6. An extensive community engagement program, underpinned by Council’s Community Engagement Policy, was carried out prior to Council adopting the draft IP&R documents for public exhibition. This consultation included pop-up stalls across the Georges River area, community visioning workshops, telephone survey, postcard and youth surveys, consultation with CALD (Culturally and Linguistically Diverse) and ATSI (Aboriginal and Torres Strait Islander) representatives, a government agency representatives workshop and staff workshops. The business community was also engaged by way of surveys and economic development strategy workshops.

7. At the Council Meeting held on 23 April 2018 the following was resolved:

(a) That Council endorse for the purposes of public exhibition, the attached Draft Integrated Planning and Reporting documents, being the Draft Community Strategic Plan 2018-2028, Draft Delivery Program 2018-2021, Draft Operational Plan including the 2018/19 Draft Budget, Fees and Charges and Draft Resourcing Strategy.

(b) That the Draft Integrated Planning and Reporting documents be placed on public exhibition for a period of at least 28 days allowing the community to comment on the content of these documents.

(c) That the General Manager be delegated authority to make formatting and minor editorial adjustments to the Draft Integrated Planning and Reporting documents during the public exhibition period.

(d) That submissions received as part of the public exhibition of the Draft Integrated Planning and Reporting documents, including the 2018/19 Draft Budget and Fees and Charges be reported to the June 2018 Council meeting for consideration as part of the adoption of these documents.

(e) That the General Manager be delegated authority to explore options that will strengthen Council’s financial sustainability from the impact of the cessation of the former Hurstville Council’s Special Rate Variation from 2021/22.

Public Exhibition

8. Public exhibition of the draft IP&R documents ran from 2 May 2018 to 31 May 2018. Notification of the public exhibition, including invitations to provide comment, occurred as follows:

· Information and copies of the documents were placed on Council’s website under the Have Your Say and Public Exhibitions pages

· The scrolling carousel on Council’s home page linked to Council’s new Your Say page where people could view the documents and submit comments. The page also included links to all the various consultation reports prepared in the lead-up to adoption of the draft IP&R documents

· Advertisements were placed in the St George Leader under the Public Notices section on 2 May 2018, 16 May 2018 and 23 May 2018

· Information and hard copies of all documents were available for viewing in Council’s Service Centres and Council’s libraries

· Two Community eNewsletters – 3 May 2018 and 17 May 2018

· Members of Council’s Have Your Say Committee were notified of the public exhibition

· Information and a feedback invitation was emailed to individuals and organisations on Council’s business community database

· Promoted as part of a Customer Service pop-up stall in Westfield Hurstville

· Staff newsletter encouraged staff to provide feedback

· One media release, and

· Two social media posts.

Submissions on the draft IP&R documents

9. At the close of the exhibition period 29 public submissions had been received from 26 individuals or organisations covering 98 topics. Councillors were provided with a full copy of the submissions at the June Councillor Briefing, together with information from Council officers in respect to each of the matters raised. Attachment 1 to this report is a summary of the submission topics.

10. Following consideration of public submissions, internal reviews and Councillor feedback, changes have been made to the exhibited IP&R documents and these have been incorporated in the attached documents. Many of the submissions contained ideas and suggestions that already form part of existing programs or may be considered for inclusion in future programs following further consideration.

11. Changes also include a number of formatting and editorial changes that do not result in substantive or significant changes. The exhibited IP&R documents have also been redesigned to include photos, graphics and colour to improve their overall look and feel. There may be some further editorial changes and enhancements prior to publishing the adopted documents on Council’s website, and prior to providing a copy of the CSP to the Office of Local Government as required under the Local Government Act.

12. The more substantive changes to the draft documents are listed below.

· Inclusion of a Welcome to Country in the CSP.

· Wording change to Pillar 5 to now read A harmonious and proud community with strong [previously ‘the right’] social services and infrastructure.

· The goals and strategies in the CSP have also been added to the Delivery Program and Operational Plan (DP/OP) to improve the linkage between these two documents.

· A revision of the success measures in the CSP to better measure achievement of longer term goals.

· A reduction in the number of performance indicators in the DP/OP to provide more focussed performance assessment.

· The inclusion of a proposed new organisational structure, which is subject to another report on tonight’s agenda.

· Inclusion of a quick-reference guide to the DP/OP actions, including responsibility for their achievement.

· New strategies, and three and one year actions, in regard to affordable facilities (strategy 5.4.3 in DP/OP) and promoting the Arts (strategy 5.4.4 in DP/OP).

· The inclusion of a 2018/19 action to re-establish Alcohol-Free Zones and Alcohol-Prohibited Areas (see strategy 5.3.3 in DP/OP).

· Amendments to actions in relation to audit responsibilities (see strategy 6.2.5 in DP/OP).

· Inclusion of actions in the DP/OP under strategy 6.2.6 – Councillor role, in particular implementing a program of open days and councillor skills’ development.

· An expanded range of actions in relation to customer service (see strategy 6.3.1 in DP/OP).

· Inclusion of actions in the DP/OP under strategy 6.3.3 – Strategy and innovation, to reflect proposals recently discussed with councillors in regard to city visioning, the Kogarah Health and Research Hub, Hurstville CBD, a Smart City Strategy, Advocacy Strategy, the Cool Places: Urban Oasis project in Riverwood and other priority town centres and completion of the service delivery review program.

· There was a reduction of $1 million in employee costs in the exhibited Draft 2018-19 budget from $59.73m to $58.73m. This was as a result of the recognition of back office efficiencies and this reduction will result in an amendment to Council’s estimated surplus from $2.88m to $3.88m.

Conclusion

13. The documents that satisfy Council’s Integrated Planning and Reporting requirements have been publicly exhibited are now ready for adoption.

14. Extensive consultation with the community, beginning in mid-2017, has occurred and the more recent exhibition of the draft documents has elicited a number of submissions that are required to be considered before adopting the recommendations to this report. Councillors have been provided with a copy of these submissions.

15. Changes are recommended to the exhibited documents, as outlined in this report, and have been incorporated in the relevant attached documents.

16. Formal recommendations in relation to the making of rates and charges for 2018 – 2019 are also included in this report.

Financial Implications

17. The adoption of the recommendations contained in this report will provide to the Council and community of Georges River a Community Strategic Plan 2028, a Delivery Program 2018 – 2019 to 2020 – 2021, an Operational Plan 2018 – 2019 including the budget, revenue policy and Schedule of Fees and Charges, and a Resourcing Strategy; all of which is in accordance with sections 402,403,404 and 405 of the Local Government Act 1993.

Risk Implications

18. Operational risks identified and management process applied.

Community Engagement

19. Extensive community engagement occurred, which is listed under the sub-heading of ‘Public Exhibition’ in the body of this report.

File Reference

ATTACHMENTS

Attachment ⇩1	Attachment 1 - IP&R submission topics pdf
Attachment ⇩2	Attachment 2 - GRC CSP 2018-2028 FINAL
Attachment ⇩3	Attachment 3 - Delivery and Ops Plan Final
Attachment ⇩4	Attachment 4 - Fees And Charges Report 2018-19
Attachment ⇩5	Attachment 5 - GRC resourcing strategy 2018_FINAL

Georges River Council - Ordinary Meeting - Monday, 25 June 2018

CCL034-18 Approval of Integrated Planning and Reporting Documents

[Appendix 5] Attachment 5 - GRC resourcing strategy 2018_FINAL

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