Original source · versioned page text
2015-03-12 Ordinary Meeting Agenda
Text sections have not been matched to the original PDF pages. Use the original document to check page numbers.
AGENDA
Ordinary Meeting
Thursday, 12 March 2015
commencing at 6pm
Council Chambers, 9 Pelican Street, Tewantin
Crs Noel Playford (Chair), Bob Abbot, Sandy Bolton, Joe Jurisevic,
Frank Pardon, Tony Wellington, Frank Wilkie
See the original
The page text is free to read. Viewing or downloading an original file needs an account.
Log in to see the originalSearchable page text hides email addresses. Original files are unchanged and may show email addresses.
Full text of the other 23 sections
Section 2
ORDINARY MEETING AGENDA 12 MARCH 2015
TABLE OF CONTENTS
1 ATTENDANCE & APOLOGIES 3
2 CONFIRMATION OF MINUTES 3
3 MAYORAL MINUTES 3
4 NOTIFIED MOTIONS 3
5 CONSIDERATION OF COMMITTEE RECOMMENDATIONS 4
INFRASTRUCTURE & SERVICES COMMITTEE RECOMMENDATIONS 4
PLANNING & ORGANISATION COMMITTEE RECOMMENDATIONS 6
GENERAL COMMITTEE RECOMMENDATIONS 10
6 ORDINARY MEETING REPORTS 13
1 UPDATE ON OUTCOMES OF DE-AMALGAMATION BALANCE SHEET
ALLOCATION 13
7 PETITIONS 20
8 CLOSED SESSION 21
2 PROGRESS UPDATE
POMONA FLOOD MITIGATION PROPERTY RESUMPTION OBJECTION –
FURTHER REPORT 21
9 NEXT MEETING 24
10 MEETING CLOSURE 24
Page 2 of 24
Section 3
ORDINARY MEETING AGENDA 12 MARCH 2015
1 ATTENDANCE & APOLOGIES
2 CONFIRMATION OF MINUTES
The Minutes of the Ordinary Meeting held on 12 February 2015 be received and confirmed.
3 MAYORAL MINUTES
Nil.
4 NOTIFIED MOTIONS
Nil.
Page 3 of 24
Section 4
ORDINARY MEETING AGENDA 12 MARCH 2015
5 CONSIDERATION OF COMMITTEE RECOMMENDATIONS
INFRASTRUCTURE & SERVICES COMMITTEE RECOMMENDATIONS
3 MARCH 2015 - Crs Sandy Bolton (Chair), Bob Abbot, Frank Pardon, Noel Playford
Other Councillors in Attendance: Cr Wilkie
1 REQUEST FOR CHANGES TO NOOSA LOCAL ROADS OF REGIONAL SIGNIFICANCE
That Council note the report by the Project Officer, Asset Planning to the Infrastructure &
Services Committee Meeting dated 3 March 2015 and:
A. Endorse the changes requested to the approved listing of Noosa Local Roads of
Regional Significance as presented to the Northern South-East Queensland Regional
Roads & Transport Group; and
B. Appoint Cr Frank Pardon as Council’s representative on the Northern South-East
Queensland Regional Roads & Transport Group.
2 MUNNA POINT CARAVAN PARK FORESHORE EROSION
That Council note the report by the Coastal & Foreshores Technical Officer to the
Infrastructure & Services Committee Meeting dated 3 March 2015 providing an update on
the Munna Point Caravan Park Foreshore Protection project.
3 REVIEW OF THE OPERATIONS OF THE COOROY BUTTER FACTORY
Item not dealt with by Infrastructure & Services Committee. Referred to General
Committee for consideration.
Reason for referral: Significance of issue
4 NOOSA AQUATIC CENTRE (NAC) – HALF YEARLY REPORT TO 31 DECEMBER 2014
That Council note the report by the Noosa Aquatic Centre Coordinator to the Infrastructure
& Services Committee Meeting dated 3 March 2015 providing an update on the activities of
the Noosa Aquatic Centre (NAC) to 31 December 2014.
5 NOOSA LEISURE CENTRE (NLC) – HALF YEARLY REPORT TO 31 DECEMBER 2014
That Council note the report by the Noosa Leisure Centre Coordinator to the Infrastructure
& Services Committee Meeting dated 3 March 2015 providing an update on the activities of
the Noosa Leisure Centre (NLC) to 31 December 2014.
6 THE J AND BICENTENNIAL COMMUNITY CENTRE (BCC) – HALF YEARLY REPORT
TO 31 DECEMBER 2014
That Council note the report by the The J Coordinator to the Infrastructure & Services
Committee Meeting dated 3 March 2015 providing an update on the activities of The J and
Bicentennial Community Centre to 31 December 2014.
Page 4 of 24
Section 5
ORDINARY MEETING AGENDA 12 MARCH 2015
7 NOOSA COMMUNITY CARE (NCC) – HALF YEARLY REPORT TO 31 DECEMBER 2014
That Council note the report by the Noosa Community Care Coordinator to the
Infrastructure & Services Committee Meeting dated 3 March 2015 providing an update on
the activities of Noosa Community Care (NCC) to 31 December 2014.
Recommendation
The Infrastructure & Services Committee recommendations dated 3 March 2015 be adopted
except where dealt with or held over by separate resolution.
Page 5 of 24
Section 6
ORDINARY MEETING AGENDA 12 MARCH 2015
PLANNING & ORGANISATION COMMITTEE RECOMMENDATIONS
3 MARCH 2015 – Crs Joe Jurisevic, Noel Playford, Tony Wellington, Frank Wilkie
Other Councillors in Attendance: Nil.
Cr Frank Wilkie stepped down as Chair.
APPOINTMENT OF CHAIRPERSON
Committee Resolution
Moved: Cr Wilkie
Seconded: Cr Wellington
That the Planning & Organisation Committee appoint Cr Joe Jurisevic as the Chair of that
Committee.
Carried.
1 DEVELOPMENT OF A NOOSA SHIRE KOALA POLICY
That Council note the report by the Principal Environment Officer to the Planning &
Organisation Committee Meeting dated 3 March 2015 and:
A. Undertake public consultation through Council’s ‘Your Say Noosa’ webpage to inform
the development of Noosa Shire Koala Policy and through targeted consultation with
key interest groups; and
B. Endorse the development of a Noosa Shire Koala Policy.
2 MCU14/0103 MATERIAL CHANGE OF USE APPLICATION FOR A DETACHED HOUSE
IN CONSERVATION ZONE SITUATED AT 146 SOLAR ROAD, COOROY MOUNTAIN
That Council note the report by the Development Planner to the Planning & Organisation
Committee Meeting dated 3 March 2015 regarding Application No. MCU14/0103 for a
Development Permit for Material Change of Use for a Detached House situated at 146
Solar Road, Cooroy Mountain and
A. Approve the application in accordance with the following conditions contained in the
Planning & Organisation Committee Agenda dated 3 March 2015; and
B. Find the following are sufficient grounds to justify the decision despite the conflict with
the Planning Scheme:
1. The proposed development is appropriately sited, will not require the removal of
any existing vegetation within the Open Space Conservation zone, and is within
an existing disturbed part of the site.
2. The proposed house does not conflict with any of the values intended to be
protected by the Open Space Conservation zone and will not adversely impact
on the Mount Cooroy Conservation Park.
Page 6 of 24
Section 7
ORDINARY MEETING AGENDA 12 MARCH 2015
3 DEVELOPMENT APPLICATION FOR MATERIAL CHANGE OF USE FOR A DETACHED
HOUSE SITUATED AT 71 SEAVIEW TERRACE, SUNSHINE BEACH - MCU14/0084
That Council note the report by the Development Planner to the Planning & Organisation
Committee Meeting dated 3 March 2015 regarding Application No. MCU14/0084 for a
Development Permit for Detached House situated at 71 Seaview Terrace, Sunshine Beach
and approve the application in accordance with the following conditions contained in the
Planning & Organisation Committee Agenda dated 3 March 2015.:
4 NEGOTIATED DECISION REQUEST FOR RECONFIGURING OF 3 LOTS INTO 17 LOTS
- REC13/0146 SITUATED AT 55 LAKE MACDONALD DRIVE, COOROY
That Council note the report by the Development Planner to the Planning & Organisation
Committee Meeting dated 3 March 2015 regarding a request for a Negotiated Decision
Notice for Reconfiguring 3 lots into 17 lots situated at 55 Lake Macdonald Drive, Cooroy
and:
A. Agree to change the Preliminary Approval to a Development Permit with a relevant
period of 4 years;
B. Agree to issue a Negotiated Decision Notice and change Condition 1 and 15 to read
as follows:
Stormwater Detention and Flooding
1. The Development must be carried out in accordance with the revised
Stormwater Detention and Flooding Report, prepared by BSM, dated 10
February 2015.
a. Deleted
b. Deleted
Active Park
15. Active park embellishments must be provided generally in accordance with
drawing number 14/005-S01, titled Erindale Park, Cooroy Proposed Park Land
Development Concept Plan, prepared by Play Environment Consulting dated
17.11.14 and 14/005-S02, titled Erindale Park, Cooroy Proposed Park Land
Development Concept Plan, prepared by Play Environment Consulting dated
17.11.14. All works to be dedicated are “non-trunk infrastructure” for the
purposes of the Sustainable Planning Act 2009.
C. Execute the Infrastructure Agreement for the provision of Park embellishments.
5 NOOSA COMMUNITY PROFILE & DEMOGRAPHIC REVIEW
That Council note the report by the Principal Strategic Planner to the Planning &
Organisation Committee Meeting dated 3 March 2015 and endorse the Community Profile
prepared by AEC Group for use in policy preparation.
6 DECEMBER 2014 QUARTERLY BUDGET REVIEW REPORT
Item not dealt with by Planning & Organisation Committee. Referred to General
Committee for consideration.
Reason for referral: Planning & Organisation Committee requested a further report
regarding the costs and savings associated with the recently appointed Electrician.
Page 7 of 24
Section 8
ORDINARY MEETING AGENDA 12 MARCH 2015
7 COMMUNITY PURPOSE LAND AND INFRASTRUCTURE TENURE POLICY
That Council note the report by the Property and Facilities Manager to the Planning &
Organisation Committee Meeting dated 3 March 2015 and:
A. Repeal the Interim Tenure Policy for the Community Use of Council Owned and
Managed Infrastructure that transferred to the Noosa Council from the Sunshine
Coast Regional Council under the Local Government (De-amalgamation
Implementation) Regulation 2013; and
B. Approve the Community Purpose Land and Infrastructure Tenure Policy as set out in
Attachment 1 to this report and subject to the following amendments:
1. Inclusion of an advisory note under “Land and Infrastructure Operating
Expenses” advising that Council has policies in place that deal with how
general rates can be waived for community groups;
2. changes as follows to “Land and Infrastructure Maintenance and Renewal
Expenses”:
All new tenure arrangements will specify the tenure holder as solely responsible
for the costs of maintaining, repairing and replacing improvements and also
maintenance of existing grounds and facilities within the tenured area, unless
otherwise agreed. It is acknowledged that there may be exceptional
circumstances, such as matters relating to public safety, where Council takes
responsibility for short-term repairs and associated costs. An annual inspection
program undertaken by Council will generate an asset renewal and
maintenance plan which will be the community organisation’s responsibility to
implement; and.
C. aAuthorise the Chief Executive Officer to put in place administrative guidelines and
tools required to implement the policy.
8 NOOSA BIOSPHERE RESERVE MANAGEMENT - FUNDING ARRANGEMENTS AND
LEASE OF DOONELLA HOUSE
Item not dealt with by Planning & Organisation Committee. Referred to General
Committee for consideration.
Reason for referral: Planning & Organisation Committee requested a further report
providing detailed changes to Clause 6.2 in the Draft Funding Deed.
9 COMMUNITY ENGAGEMENT ACTIVITY AND PROJECT OVERVIEW
That Council note the report by the Community Engagement Manager to the Planning &
Organisation Committee Meeting dated 3 March 2015 detailing community engagement
activities and a review of projects.
10 COUNCILLOR REQUEST GUIDELINES
That Council note the report by the Chief Executive Officer to the Planning & Organisation
Committee Meeting dated 3 March 2015 and
A. Repeal the Councillor Acceptable Request Guidelines that transferred to the Noosa
Council from the Sunshine Coast Regional Council under the Local Government (De-
amalgamation Implementation) Regulation 2013; and
B. Adopt the Councillor Request Guidelines (provided at Attachment 1 to the report).
Page 8 of 24
Section 9
ORDINARY MEETING AGENDA 12 MARCH 2015
11 CONTACT WITH LOBBYISTS POLICY
That Council note the report by the Executive Manager to the Planning & Organisation
Committee Meeting dated 3 March 2015 and defer consideration to a future meeting so
that a further report can be provided which includes the proposed policy, guidelines and
procedures for Council’s consideration.
A. Repeal the Contact with Lobbyists Policy that transferred to the Noosa Council from
the Sunshine Coast Regional Council under the Local Government (De-
amalgamation Implementation) Regulation 2013;
B. Adopt the Noosa Council Contact with Lobbyists Policy; and
C Authorise the Chief Executive to develop Guidelines to support the Contact with
Lobbyists Policy and subsequently arrange training for Councillors and relevant staff.
12 PUBLIC INTEREST DISCLOSURE POLICY
That Council note the report by the Governance Advisor to the Planning & Organisation
Committee Meeting dated 3 March 2015 and:
A. Adopt the Noosa Council Policy “Public Interest Disclosure” (Attachment 1); and
B. Authorise the Chief Executive Officer to develop an organisational level Public
Interest Disclosure Procedure.
Recommendation
The Planning & Organisation Committee recommendations dated 3 March 2015 be adopted
except where dealt with or held over by separate resolution.
Page 9 of 24
Section 10
ORDINARY MEETING AGENDA 12 MARCH 2015
GENERAL COMMITTEE RECOMMENDATIONS
9 MARCH 2015 - Crs Bob Abbot, Sandy Bolton, Joe Jurisevic, Frank Pardon, Noel Playford
Tony Wellington and Frank Wilkie
Cr Wellington stepped down as Chair.
APPOINTMENT OF CHAIRPERSON
Committee Resolution
Moved: Cr Wellington
Seconded: Cr Jurisevic
That the Planning & Organisation Committee appoint Cr Frank Wilkie as the Chair of that
Committee.
Carried.
1 REVIEW OF THE OPERATIONS OF THE COOROY BUTTER FACTORY
Cr Wellington declared a perceived conflict of interest in this matter (as defined in section 173
of the Local Government Act) due to his regular attendance of the Cooroy Lower Mill Board
Meetings in an ex-officio capacity.
Cr Wellington believed he could consider this item impartially and in the public interest and
therefore remained in the meeting room for debate and decision on this matter.
That Council note the report by the Director of Community Services to the Infrastructure &
Services Committee Meeting dated 3 March 2015 and agree to:
A. Adopt Option 3 as its preferred option; and enter into a Memorandum of
Understanding (MOU) with the Cooroy Lower Mill Board to manage the operations of
the Cooroy Butter Factory for an initial period of three years;
B. Include in the MOU that U3A Noosa and the Ceramic Centre of Excellence be anchor
tenants in the Butter Factory for this period; Staff consulting with the Cooroy Lower
Mill Board to develop a Business plan and budget to present to Council in a future
report; and
C Consider as part of the 2015/16 budget process, the allocation of $80,000 to the
Cooroy Lower Mill Board to allow them to meet start-up expenses and employ
suitably qualified staff to support the operations of the Butter Factory. This amount to
be reviewed annually thereafter with a view to the subsidy being reduced to $55,000
in the third year; and
D.C. Continue to maintain the Butter Factory and Pottery Shed buildings.
2 DECEMBER 2014 QUARTERLY BUDGET REVIEW REPORT
That Council note the report by the Manager Financial Services to the Planning &
Organisation Committee Meeting dated 3 March 2015 and the further report to the General
Committee dated 9 March 2015, and approve the requested changes to the budget for the
2014/2015 financial year as outlined in the Schedule of Proposed Budget Adjustments
(Attachment 1) and Budget Financial Statements (Attachment 2).
Page 10 of 24
Section 11
ORDINARY MEETING AGENDA 12 MARCH 2015
3 NOOSA BIOSPHERE RESERVE MANAGEMENT – FUNDING ARRANGEMENTS AND
LEASE OF DOONELLA HOUSE
That Council note the report by the Executive Officer to the Planning & Organisation
Committee Meeting dated 3 March 2015 and the further report to the General Committee
Meeting dated 9 March 2015 and:
A. Agree to enter into a funding deed with the Noosa Biosphere Reserve Foundation Ltd
as provided in Attachment 1 to the report to Planning & Organisation Committee
dated 3 March 2015 with the change to Clause 6.2 as outlined in the further report to
General Committee dated 9 March 2015 with the following changes:
1. Clause 4.1 Payments
Amend clause 4.1 b) ii) to read “$250,000 (excluding GST) – payable to the
NBRF Public Trust for projects that meet the Trust objects from the
Environment Levy for projects that conserve and/or improve biodiversity in the
Noosa Shire and have tangible and measurable outcomes”.
Amend clause 4.1 b) iii) to read “$80,000 (excluding GST) – payable to the
NBRF Public Trust for economic projects with an environmental benefit
consistent with the purposes of the Trust.
2. Clause 6.2 Repayment of Funding
Amend as outlined in the further report to General Committee dated 9 March 2015.
B. Authorise the Chief Executive Officer to make minor alterations to the Deed, as may
be necessary, and enter into a formal agreement with the Foundation;
C. Agree in principle to a one-off contribution of $10,000 being for the establishment and
initial operating costs of a community based incorporated association that is aligned
with the objects purposes of the Noosa Biosphere Reserve Trust, subject to no
membership fees being charged until after the second annual general meeting;
D. Apply the exception to the requirement for tendering under Section 236(1)(b)(ii) of the
Local Government Regulation 2012 for the occupancy of part of Council owned
premises located on Lot 1, RP96529 at 52 Doonella Street, Tewantin as the
proposed lease is to a not for profit community organisation; and
E. Authorise the Chief Executive Officer to enter into negotiations with the Noosa
Biosphere Reserve Foundation Ltd and finalise a lease for part of Council owned
premises located on Lot 1, RP96529 at 52 Doonella Street, Tewantin, for a period of
3 years, with a 3 year option.
4 CONTRACT 1415Q020 – WALLACE PARK SHARED PATHWAY
That Council note the report by the Designer, Capital Works to the General Committee
meeting dated 9 March 2015 and award contract 1415Q020 to Carruthers Contracting for
the lump sum amount of $318,040.38.
5 PROGRESS UPDATE POMONA
FLOOD MITIGATION PROPERTY RESUMPTION OBJECTION
That Council note the report by the Property Officer and Project Manager to the Planning &
Organisation General Committee meeting dated 3 9 March 2015 and hold over the matter
to allow a further report the Ordinary Meeting dated 12 March 2015 to address issues
raised during the General Committee meeting.
Page 11 of 24
Section 12
ORDINARY MEETING AGENDA 12 MARCH 2015
Recommendation
The General Committee recommendations dated 9 March 2015 be adopted except where dealt
with or held over by separate resolution.
Page 12 of 24
Section 13
ORDINARY MEETING AGENDA 12 MARCH 2015
6 ORDINARY MEETING REPORTS
1 UPDATE ON OUTCOMES OF DE-AMALGAMATION BALANCE SHEET ALLOCATION
Author Chief Executive Officer, Brett de Chastel
Executive Office
Index ECM/ Subject/ De-amalgamation Balance Sheet Allocation
Attachments Nil.
EXECUTIVE SUMMARY
Not applicable.
RECOMMENDATION
That Council note the report by the Chief Executive Officer to the General Committee Meeting
dated 12 March 2015 and:
A. Note the outcome of the five issues in dispute between Noosa Council and Sunshine Coast
Regional Council as determined by the Minister for Local Government, Community
Recovery and Resilience; and
B. Note the legal advice received by the Chief Executive Officer in relation to the decision by
the Minister for Local Government, Community Recovery and Resilience.
REPORT
The purpose of this report is to inform Council about the finalisation of the split of assets and
liabilities as part of the de-amalgamation process.
Background
As Council would be aware, the implementation of the de-amalgamation was regulated by the
Local Government (De-Amalgamation Implementation) Regulation 2013 (“the regulation”).
The Regulation established a Transfer Committee which had a number of important roles
including approving de-amalgamation costs and also deciding on the assets and liabilities to be
transferred from Sunshine Coast Regional Council (SCRC) to Noosa Council. The Transfer
Committee completed its role on 30 June 2014.
At the completion of its term, there were five matters upon which the Transfer Committee could
not reach agreement. All of these were related to the allocation of cash reserves. In accordance
with the Regulation, these matters were referred to the Minister for determination. (Early in 2014,
three other relatively minor matters were referred to the Minister for determination and were
resolved by the Minister).
On 12 August 2014 the Department advised that the Minister had appointed an independent
consultant to examine the dispute and provide a report and advice to the Minister. The
independent consultant appointed was Mr Jeff Tate of Jeff Tate Consulting. Mr Tate was a
Transfer Manager previously appointed to establish Douglas Shire Council and had completed
his appointment in that role. Mr Tate was an experienced CEO from South Australia.
Page 13 of 24
Section 14
ORDINARY MEETING AGENDA 12 MARCH 2015
The consultant was given 12 weeks to undertake the review. Meetings were held onsite with both
Noosa Council and SCRC representatives on a number of occasions. There was also a
substantial amount of material provided in hard copy and by email together with phone
conferences explaining the issues from the Noosa Council perspective. Noosa Council’s Director
Corporate Services undertook an enormous amount of work, often in his own time, to present the
issues to the independent consultant.
On 10 December 2014, the Noosa Council CEO received a letter from the Minister outlining his
determination on the five issues in dispute. This followed verbal advice from the Minister to the
Mayor and CEO earlier that same day.
The Minister also provided a copy of the independent consultant’s report. The disclaimer in the
independent consultant’s report makes it clear that the Department did not allow the independent
consultant to seek further expert advice as recommended by the independent consultant and
indeed, the Department provided an early termination of his engagement, thus not allowing him
to finalise his report to the Minister.
The independent consultant outlined their recommendations in the report to the Minister as set
out below:
“As indicated in part 4 of this report the Consultants had planned, with DLGCRR’s approval, to
obtain expert advice on a number of matters related to some of the issues in dispute. The early
conclusion to the project before that expert advice could be obtained has severely impacted the
ability of the Consultants to make fully definitive recommendations for the Minister’s decisions on
Issues 1, 3 and 5.
Issue 1 – Water and Sewerage Restricted Cash
The Consultants recommend that the Minister make a decision on this matter according to either:
the ‘FY10 reserves’ approach, based on NSC share of total SCRC Water and Sewerage
reserves at 30 June 2010; or
the ‘modified funds provided’ approach – that is, the approach used by QTC for the Boundary
Commissioner Report, with adjustments made to reflect the correct opening balances
between regions.
Issue 2 – Carbon Tax
The Consultants recommend that the residual funds after acquitting the carbon tax liability be
distributed 80% to NSC and 20% to SCRC.
Issue 3 – Region Specific Developer Contributions
Without expert advice the Consultants are unable to make recommendations on the
appropriateness of the ‘normalising’ adjustments undertaken by SCRC at 30 June 2013 or their
retrospective application. The Consultants are also unable to make a recommendation regarding
the NSC claim that SCRC has ‘double dipped’ through the adjustments in addition to the
allocation of debt.
Issue 4 – Unearned Revenue
The Consultants recommend that the Minister determine that the SCRC treatment of unearned
revenue as a region specific item is correct.
Issue 5 – Unitywater Dividend and Tax Equivalent
The Consultants are unable to make a recommendation in relation to the Unitywater Dividend
without expert accounting advice on the correct treatment of the Dividend in SCRC’s books at 31
December 2013.
Page 14 of 24
Section 15
ORDINARY MEETING AGENDA 12 MARCH 2015
The table below sets out the five issues that were in dispute together with details of how much SCRC claimed, how much Noosa Council claimed
and the final decision by the Minister.
Issue Amount as per Amount Noosa Amount Independent Consultant Minister Notes
Transfer Council claimed SCRC Recommendation Decision –
Committee payable Claimed Noosa to
Cash payable receive this
Reconciliation amount
Statement
1. Water & $2.615m $11.4M (in $4.182M Under the ‘FY10 reserves’ $4.182M Note that the amounts quoted
Sewerage (Disputed) addition to the (total) approach NSC would by the independent consultant
Transfer receive $13.973m. include $4.182M already
Committee Cash OR accounted for in the Minister’s
Reconciliation decision.
Under a ‘modified funds
Statement) The Minister did not follow the
provided’ approach NSC
would receive $8.610m. findings of the independent
consultant
2. Carbon Tax $0 (Disputed) $777K $0 The Consultants recommend $412K An allowance was made for
that the residual funds after additional landfill that was
acquitting the carbon tax deposited at Noosa in 2012/13
liability be distributed 80% to which reduced our claim by
NSC and 20% to SCRC. 20%
3. Developer $984K $6.8M (in $0 Without expert advice the $0 Numerous examples of the
Contributions (Disputed) addition to the Consultants are unable to SCRC justification including
Transfer make recommendations on the projects outside the Noosa
Committee Cash appropriateness of the area (e.g. Coolum) and
Reconciliation ‘normalising’ adjustments projects not identified in the
Statement) undertaken by SCRC at 30 PIP
June 2013 or their
retrospective application. The
Consultants are also unable to
make a recommendation
regarding the NSC claim that
SCRC has ‘double dipped’
through the adjustments in
addition to the allocation of
debt.
Page 15 of 24
Section 16
ORDINARY MEETING AGENDA 12 MARCH 2015
Issue Amount as per Amount Noosa Amount Independent Consultant Minister Notes
Transfer Council claimed SCRC Recommendation Decision –
Committee payable Claimed Noosa to
Cash payable receive this
Reconciliation amount
Statement
4. Unearned $567K $724K (in $567K The Consultants recommend $0
Revenue (Disputed) addition to the (total) that the Minister determine that
Transfer the SCRC treatment of
Committee Cash unearned revenue as a region
Reconciliation specific item is correct
Statement)
5. Unitywater $0 (Disputed) $3.1M $0 The Consultants are unable to $1.148M Minister applied a shareholding
Dividend make a recommendation in percentage (10.18%) rather
relation to the Unitywater than a cash split percentage
Dividend without expert (25.29%)
accounting advice on the
correct treatment of the
Dividend in SCRC’s books at
31 December 2013.
Page 16 of 24
Section 17
ORDINARY MEETING AGENDA 12 MARCH 2015
On 8 January 2015, the CEO wrote to the Minister seeking a Statement of Reasons pursuant to
the Judicial Review Act. This was on the basis that the original decision of the Minister did not
contain any details of why the Minister made his decision on each of the five issues. The State
Government went into caretaker mode during the election period.
On 4 February 2015, the Minister provided a Statement of Reasons. Given the significant amount
of public funds at stake, the CEO briefed barristers to give advice on the Council’s prospects of
challenging the decision of the Minister. Briefed were Mr Mark Hinson QC (one of Queensland’s
leading barristers on Judicial Review) and Mr Stephen Fynes-Clinton (a leading barrister on local
government law).
Their advice was received on 5 March 2015. All Councillors have been provided with a copy of
that advice.
In a nutshell, the advice was that we should not pursue an action in the Supreme Court as our
prospects of successfully arguing to overturn the decision of the Minister on a matter of law (as
distinct from the merits of the decision) are not good.
The reasons include the following:
The Regulation did not prescribe or fetter how the Minister could apply his discretion in
making his decision. The way the Regulation was framed would seem to imply that the
Minister could apply political or policy considerations rather than just technical
considerations;
A Court review under Judicial Review is focused on the lawfulness of the decision, not the
merits of the decision. We may well have good prospects if a court could look at the merits
of the decision (the facts) but that is not within its jurisdiction; and
A Court would have to be convinced that the Minister has clearly exceeded any constraints
that are contained or implied in the regulation. The QCs advice is that given the legal
issues, this would be very difficult to achieve given that there were no constraints contained
or implied in the Regulation.
Perhaps the summary of the relevant issues by Stephen Fynes-Clinton best outline the key
issues:
“The view which we have come to, not without some debate, but now reflected in the advice as
our final view, is that we would have little prospect of persuading the Supreme Court to read
anything in to the Regulation that was sufficiently detailed or prescriptive to require the Minister to
go behind the competing views expressed to him, as distinct from choosing one or the other of
the views presented.”
“It is a matter of asking how far the Minister was (impliedly) constrained by the objects and
purposes of the Regulation so as to found a proposition that what he decided exceeded those
constraints. In the end, there was not enough in the Regulation to give us a basis upon which to
advise with any confidence that a Court would recognise constraints sufficient to establish that
the Minister had so exceeded his limits so as to require him to go back and do it again.”
“At the risk of repetition, it is not about the merits of Noosa’s position. It is about the limits of
judicial review of a discretionary decision about a matter concerning public finances when the
legislation is effectively silent on any detail as to what the Minister is allowed or not allowed to
do.”
On the basis of that advice, there is no point in pursuing the matter further. While we may have
good arguments based on the merits of the issues that were in dispute, that is not a matter
capable of being reviewed under the law.
Page 17 of 24
Section 18
ORDINARY MEETING AGENDA 12 MARCH 2015
Some reflections
To a large extent, this result reinforces the general thrust of the de-amalgamation process
i.e. the Noosa Community received the right to vote on its future with SCRC not having any
vote on the issue and to offset that approach, the Regulation implementing the de-
amalgamation (and decisions of the Minister under that Regulation) generally favoured
SCRC. As an example, section 55 of the Regulation gave the sole power to the CEO of the
continuing Council to decide which (and how many) staff would transfer to the new Council
subject to some broad parameters.
Indeed, the Minister reinforced this approach in his Statement of Reasons which included
his overarching approach to the resolution of the disputes - “to ensure their equitable,
timely and cost effective resolution for the residents and ratepayers of both councils, taking
into account the broad de-amalgamation policy position that the continuing council would
be no worse off…..”.
Previous Council Consideration
Nil.
Finance & Risk
In formulating, Noosa Council’s financial plans and budgets, a conservative approach was taken
to estimating the final cash split result. With that conservative cash split estimate, Council met all
relevant QTC financial ratios. The table below outlines the various estimates that were applied to
the cash reserve splits as the de-amalgamation process progressed.
Details Amount
Amount estimated in De-amalgamation submission to QTC in 2013 $39.6M
Amount estimated in Council’s first budget (January 2014) $40M
Amount agreed via Transfer Committee process excluding the five disputed issues $40.4M
(30 June 2014)
Final amount as per Local Government Ministers Decision $42.5M
At our request, QTC is currently undertaking a credit review of Noosa Shire Council. As
previously advised to Council, they were also requested by the State to undertake credit reviews
of all four de-amalgamating Councils. That review is progressing well and a report and
presentation will be provided to Council in due course.
The only other issue to note at this stage is that one of the key financial challenges facing this
Council is the same as that facing many other Councils i.e. Council have adopted Priority
Infrastructure Plans (PIPs) which they use as the basis of collecting contributions from
development.
Part of the commitment in having PIPs (previously headworks, ICPs etc.) is that there is
ultimately an obligation to build trunk infrastructure that we are collecting contributions for. The
contributions do not (and cannot) fund all of the required future works. Regardless of whether or
not the decision by the Minister in relation to issue number 3 had been made, this Council will
need to ultimately identify how and when it will fund future capital works associated with the PIP.
That will be an outcome of the development of Asset Management Plans and careful long term
financial planning. The decision by the Minister in relation to issue 3 will exacerbate that
challenge for Council.
Page 18 of 24
Section 19
ORDINARY MEETING AGENDA 12 MARCH 2015
Consultation
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
Discussions have been held with the Director Corporate Services in the preparation of this report.
Departments/Sections Consulted:
Community Services Planning & Infrastructure
Disaster Management & Public Order Building & Plumbing Services
Waste & Environmental Health DA Planning
Community Facilities Strategic Land Use Planning
Cultural Facilities Asset Design & Investigations
Asset Planning
Civil Operations
Environment
X Executive Office X Corporate Services
Community Engagement Finance
Customer Service ICT
Executive Support Procurement & Fleet
Governance Property & Facilities
Human Resources Revenue Services
Page 19 of 24
Section 20
ORDINARY MEETING AGENDA 12 MARCH 2015
7 PETITIONS
Page 20 of 24
ORDINARY MEETING AGENDA 12 MARCH 2015
7 PETITIONS
Page 20 of 24Section 21
ORDINARY MEETING AGENDA 12 MARCH 2015
8 CLOSED SESSION
2 PROGRESS UPDATE POMONA
FLOOD MITIGATION PROPERTY RESUMPTION OBJECTION – FURTHER REPORT
Author Property & Facilities Manager, Clint Irwin
Corporate Services Department
Project Manager, Adam Britton
Planning and Infrastructure Department
Attachments Nil.
REASON FOR CLOSED SESSION
This report was considered in closed session in accordance with Section 275 (1) of the Local Government Regulation
2012, which permits the meeting to be closed to the public for business relating to the following: -
(h) other business for which a public discussion would be likely to prejudice the interests of the local
government or someone else, or enable a person to gain a financial advantage
_____________________________________________________________________________
Page 21 of 24
Section 22
ORDINARY MEETING AGENDA 12 MARCH 2015
Page 22 of 24
Oo
5
a
>
x
=
m
s™> a
a
“= — >
NS m
—a) S
-» >
—“\
_—
—— \
Ze
\S
Us
—
_—
~_—_—
VV
4 =
\
3 .
© >
e 3
ND a
° SSection 23
ORDINARY MEETING AGENDA 12 MARCH 2015
Page 23 of 24
Section 24
ORDINARY MEETING AGENDA 12 MARCH 2015
9 NEXT MEETING
The next Ordinary Meeting will be held on 9 April 2015 in the Council Chambers, 9 Pelican
Street, Tewantin commencing at 6pm.
10 MEETING CLOSURE
Page 24 of 24