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2020-12-17 OM Agenda - Late Report - Kin Kin Quarry - Potential Legal Action

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ORDINARY MEETING REPORT                                                                           17 DECEMBER 2020


1                      KIN KIN QUARRY – POTENTIAL LEGAL ACTION
DOCUMENT INFORMATION




Author                             Chief Executive Officer, Brett de Chastel
                                   CEO’s Office

Index                              ECM/ Subject/ Kin Kin Quarry

Attachments                        1.    Kin Kin Quarry – Information Sheet
                                   2.    Legal advice in relation to the Kin Kin Quarry (Note: This attachment is
                                         confidential and not for public release)



EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Chief Executive Officer to the Ordinary Meeting dated 17
December 2020 and:
A.                     Note the confidential legal advice in relation to the operation of the Kin Kin Quarry provided as
                       Attachment 2 to the report;
B.                     Authorise the Chief Executive Officer to initiate legal action in accordance with that advice and
                       to work with Council’s legal advisers in gathering the necessary evidence prior to initiating that
                       legal action.



REPORT
1.                     Background

As Council would be aware, the Kin Kin Quarry has a long and extensive history dating back to its
original approval in July 1987. There have been numerous court cases and decisions over the last
33 years in relation to that site and its operation as a quarry.

This report is not intended to cover all of that history however, by way of background, Attachment 1
to this report contains an information sheet which covers some of the more relevant history, current
issues and the role of different government agencies. This is provided by way of background and
this information sheet will shortly be placed on Council’s website for the information of our community
as well.

Also as Council would be aware, there is considerable community angst in relation to the
intensification of use of the quarry resulting in a large number of quarry trucks going to and from the
quarry site, thus impacting on resident amenity and well-being. The Mayor has established a
Roundtable bringing together all relevant government agencies (Police, Transport and Main Roads),
local State Member Sandy Bolton, representatives of community groups (Kin Kin Community Group,
Save Noosa Hinterland and more recently, the Pomona Chamber of Commerce), representatives of
the quarry operators (Cordwells) and relevant Council staff.

Council has also retained the services of a Special Project Officer to provide support to the affected
communities and to assist the Mayor and Council officers with the Roundtable and community
liaison.

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Section 2

ORDINARY MEETING REPORT                                                          17 DECEMBER 2020


The purpose of this report is to provide Council with an update on recent legal advice about options
available to the Council to support our community in relation to the Kin Kin Quarry. This report also
proposes to authorise the CEO to commence legal proceedings on behalf of Council in the Planning
and Environment Court once the necessary evidence has been gathered to support those
proceedings.

2.    Key issues

Council has recently sought legal advice about legal options to deal with various impacts of the Kin
Kin Quarry on the local community. That legal advice has now been received.

For legal professional privilege reasons set out below, that legal advice is a confidential attachment
to this report.

 About legal professional privilege

 One of the challenges for a Council that prides itself on openness and transparency, is how to
 manage legal professional privilege in relation to legal advice it receives. In court actions, there
 is an obligation on each party to provide the other party with access to relevant documents as
 part of the court process (called discovery). There are certain exemptions to this rule including
 the exemption for legal professional privilege.

 Essentially, this means that advice and correspondence between the client and its legal advisor
 is protected from being provided to the other party on the basis of legal professional privilege.
 This enables clients to obtain “frank and fearless legal advice” on an issue without having to
 disclose that to the other party in the litigation. This could include advice from lawyers about
 legal tactics, prospects of success, evidence required etc.

 Legal professional privilege is lost if those documents are provided to a third party. This means
 that they would no longer be protected under legal professional privilege and would be required
 to be provided to the other party in the litigation. This is obviously of considerable disadvantage
 in any litigation as the other party would have a “playbook” on how the litigation is being
 managed and understand the strengths and weaknesses of the opposition case.

 It is for this reason that the legal advice Council has received in relation to the proposed action
 is not being made public. That legal advice will therefore retain legal professional privilege.


If Councillors wish to discuss this legal advice at the Council meeting, the meeting should be closed
to the public in accordance with Section 254J (3)(e) of the Local Government Regulation 2012 which
permits the meeting to be closed to the public for business relating to legal advice obtained by the
local government or legal proceedings involving the local government including, for example, legal
proceedings that may be taken by or against the local government.

Based on that legal advice, it is proposed to initiate proceedings in the Planning and Environment
Court but it should be noted, the Council will need to work with its legal advisers to establish the
necessary evidence required to successfully pursue such an action. Proceedings cannot commence
until that occurs and our legal advisers estimate that will take between 8 to 12 weeks to collate.
Proceedings can issue once that has been finalised. It is envisaged that we will also seek to work
with our community on this evidence gathering stage.




                                                                                        Page 2 of 10

Section 3

ORDINARY MEETING REPORT                                                            17 DECEMBER 2020


Previous Council Consideration
Ordinary Meeting Minutes, 19 May 2016, Item 2, Page 13
That Council note the report by the Manager Planning & Environment and Coordinator Planning to
the Planning & Environment Committee Meeting dated 10 May 2016 and the further report to the
Ordinary Meeting dated 19 May 2016 and advise Council’s solicitor to settle the current Court
applications generally in accordance with the following:
A.    Agree to settle the Neilsens Quality Gravels Pty Ltd application D18 of 2016 to the Planning
      and Environment Court in accordance with the draft judgement subject to the further agreed
      amendments set out in the confidential report;
B.    Discontinue the Noosa Shire Council application D114 of 2015 to the Planning and
      Environment Court; and
C.    Enter into a Deed of Agreement whereby the quarry operator is to pay Council’s expert costs
      associated with the above matters and payment of $30,000 into an appropriate land
      management fund.


Ordinary Meeting Minutes, 22 October 2015, Item 10, Page 10
That Council note the report by the Manager, Planning & Environment to the Planning & Organisation
Committee Meeting dated 13 October 2015 and authorise the Chief Executive Officer to proceed
with further legal action is required in accordance with the proposed approach set out in the
confidential report.


Ordinary Meeting Minutes, 2 July 2015, Item 2, Page 12
That Council note the report by the Manager, Planning & Environment to the Ordinary Meeting dated
2 July 2015 and resolve to address the breach of the development approval and conditions of the
Kin Kin Quarry by Neilsens by lodging proceedings in the Planning & Environment court in
accordance with the proposed approach set out in the Closed Session Report.


Ordinary Meeting Minutes, 12 February 2015, Item 5, Page 9
That Council note the report by the Manager, Planning & Environment to the General Committee
meeting dated 9 February 2015 and resolve to address the breach of the development approval and
conditions of the Kin Kin Quarry by Neilsens by instructing officers to take action in accordance with
Options 1 and 3 outlined in the report and authorise the CEO to make this information public once
the actions have commenced.

Finance
It is not yet possible to provide an accurate estimate of what this litigation will cost Council. That will
depend on a range of variables including expert costs, the extent to which the litigation is contested
etc. The ongoing cost can be monitored through the Case Management Working Group. It should
be noted, however, that Council’s legal costs in the planning area are already over budget.

Risks & Opportunities
Any litigation has risks associated with the outcome. Nevertheless, pursuing court action will support
our community in seeking to ameliorate the impacts of the Kin Kin Quarry on residents in affected
hinterland areas.




                                                                                          Page 3 of 10

Section 4

ORDINARY MEETING REPORT                                                            17 DECEMBER 2020


Consultation
External Consultation - Community & Stakeholder
Council’s legal advisers

Internal Consultation
Mayor Clare Stewart
Development Assessment Manager
Special Project Officer
Communications and Community Engagement Manager
Director Corporate Services


Departments/Sections Consulted:

 x   Chief Executive Officer       Community Services                      x   Corporate Services
     Executive Officer             Director                                    Director
     Executive Support             Community Development                       Financial Services
                                   Community Facilities                        ICT
                                   Libraries & Galleries                       Procurement & Fleet
                                   Local Laws                                  Property
                                   Waste & Environmental Health                Revenue Services

     Executive Services            Environment & Sustainable Development       Infrastructure Services
     Director                      Director                                    Director
 x   Community Engagement          Building & Plumbing Services                Asset Management
     Customer Service          x   Development Assessment                      Buildings and Facilities
     Governance                    Economic Development                        Civil Operations
     People and Culture            Environmental Services                      Disaster Management
                                   Strategic Land Use Planning                 Infrastructure Planning,
                                                                               Design and Delivery




                                                                                            Page 4 of 10

Section 5

ORDINARY MEETING REPORT   17 DECEMBER 2020


                             ATTACHMENT 1




                               Page 5 of 10

ORDINARY MEETING REPORT                                                                   17 DECEMBER 2020

                          ;                                                                    ATTACHMENT 1
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        Background
        The quarry was approved by Council in July 1987 subject to conditions. Under the planning legislation
        there is no ability for this approval to be revoked or changed (without the owners agreement), with the
        approval valid until 12 May 2033.
        The conditions require the quarry to operate in accordance with an approved Quarry Management Plan
        (QMP), which includes a number of requirements that address on site operations, including stormwater
        management and traffic management.

        While the conditions do identify the approved extraction footprint for the quarry, the conditions do not
        include an annual extraction limit or restrict the number of trucks permitted on the haul route.
        For a comprehensive background of the Kin Kin Quarry, refer to Appendix A below.
        To change the approval for the quarry, would require an application to be made by the land owner and the
        operator (Cordwells) to Council. The process to change the quarry approval is regulated by the Planning
        Act 2016, state legislation, with the land use rights afforded by the approval protected by this Act. This
        means new planning requirements and/or state legislation such as the new koala conservation protections
        for South East Queensland do not apply.

        Quarry Operating Hours
        The permitted operating hours are 6am to 6pm Monday to Friday and 7am to 5pm Saturday, with trucks
        not to be loaded outside the approved operating hours or leave the site full after operating hours.

        Haul Route
        The QMP requires that the main haulage route for the quarry is Kin Kin —- Pomona Road which is state
        controlled road, though Dr Pages Road and other local roads may be used for local deliveries. This
        haulage route was identified in the original application to Council and has been reflected in subsequent
        approved QMPs. To change the haul route would require a development application to be lodged with
        Council. Such an application would be subject to public consultation with the community including
        residents along any proposed new haul route.

        QMP - Traffic Management Requirements
        ¢  Trucks must not arrive at the quarry site prior to the approved operating hours;
        e  Departures from the quarry site are to be staggered with a minimum gap of 5 mins between trucks;
        e  Where trucks encounter other heavy vehicles, the minimum separation distance between heavy
           vehicles is to be approximately 60m but with greater separation distances recommended for drivers;
        e  When approaching the quarry site, drivers are to maintain a minimum separation distance of 300m to
           avoid causing queuing at the quarry entry;
        ¢  To assist in maintaining these separation distances, drivers should communicate with other drivers on
           UHF Channel;
        e  Truck drivers are not to overtake other vehicles;
        e  The quarry operator is to seek to minimise truck movements by rescheduling product deliveries from
           the site and discouraging unnecessary truck movements, during school bus hours.

        NOOSA COUNCIL               PO Box 141                 P. (07) 5329 6500      [email protected]
                                    TEWANTIN QLD 4565          F. (07) 5329 6501      wvyw.noosa.gid.gov.at

                                                                                                  Page 5 of 10

Section 6

ORDINARY MEETING REPORT   17 DECEMBER 2020




                               Page 6 of 10

ORDINARY MEETING REPORT                                                            17 DECEMBER 2020

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        Driver Behaviour
       Speeding, and non-compliance of road rules along the road network must be reported to the police, as
       these issues are matters for the police to investigate and address. The police have been  actioning
        complaints where the owner of the truck can be identified — vehicle registration number.

        Actions Taken To Date
        e Both Council and the local state member have been advocating for some time for the Kin Kin Pomona
          road to be upgraded, as it is recognised that the quarry operations are significantly impacting on other
          road users and residents along this route.
        e  Local police have been asked to monitor the road and driver behavior and have issued a number of
           fines for traffic infringements.
        e  Council has written to Cordwells and all the trucking companies using the quarry advising them of the
           QMP traffic management requirements and wamed them that infringements will be issued for
           breaches.
        «  A camera and traffic counter has been installed on Shepperson Road for surveillance and monitoring
           purposes to ensure Cordwells and truck drivers are adhering to the quarry management plan
           requirements. Infringements are being issued to Cordwells for breaches identified.
        e Regular inspections are undertaken of the quarry operations by Council officers, with joint inspections
           with officers from the state’s Department of Environment also conducted from time to time.
        e An annual audit of the quarry operations is also undertaken by an extemal independent auditor
           specialised in stormwater management, with Cordwells required to reimburse Council's costs for this
           audit.
        «  Council have previously issued notices/infringements to the quarry operators on a number of occasions
           for breaches of the approval and are continuing to actively monitor the quarry and take compliance
           action.
        e  Council has formally written to the Department of Transport and Main Roads calling for the department
           to investigate the Pomona-Kin Kin Road and identify what works can be done to improve the safety of
           this state controlled road.
        « Council is currently seeking a legal opinion from a Barrister on what actions Council may be able to
           take to stop/minimise the impacts from the quarry operations on road users and residents.

        Round Table
        A round table has been established by Council with Sandy Bolton, representatives of the Kin Kin
        Community Group, Martin and David Cordwell, Local Police, DTRM representatives, councilors and
       council officers. The round table is intended to provide a forum to identify issues arising from the quarry
        operations and work together to identify potential solutions.

        Department of Natural Resources - Mines
        This state department are responsible for the safety and health requirements for quarry workers, including
        explosive safety. It is important to clarify that this department has no jurisdiction outside the boundaries
        of the quarry site.

        Department of Environment & Science
        The quarry has approval from this department for an Environmentally Relevant Activity (ERA). The ERA
        permits up to 1,000,000 tonnes to be extracted annually and primarily regulates potential environmental
        impacts from the quarry operations such as ensuring appropriate stormwater management measures are
        in place to address the quantity and quality of water runoff from the quarry site.

                                                                                              Page 2

                                                                                           Page 6 of 10

Section 7

ORDINARY MEETING REPORT   17 DECEMBER 2020




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Section 8

ORDINARY MEETING REPORT   17 DECEMBER 2020




                               Page 8 of 10

ORDINARY MEETING REPORT                                                         17 DECEMBER 2020

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       APPENDIX A
      Quarry first approved in 1987
      The quarry was approved by Council in July 1987, subject to conditions. The approval was for 3 years
       and made provision for subsequent extensions of the approval by Council. It was also subject to some
       roadwork requirements and included the requirement for a Management Plan to be lodged with Council.
       The applicant appealed Council's decision, with the Local Government Court issuing a Court Order in May
       1988 reducing the extent of roadworks required and giving an operating life of 30 years. In terms of road
       improvements, the conditions of approval required:
       .    upgrading of the intersection of Sheppersons Lane and Kin Kin Road;
       .    upgrading of the existing timber bridge within Sheppersons Lane; and
       .   the widening and upgrading of Sheppersons Lane from intersection with Kin Kin Road to the access
            point to the site.
       These road upgrade works were subsequently undertaken by the former Noosa Council, around the time
       Noosa Council had a lease over the quarry site. Notably, the requirement to upgrade the intersection of
       Sheppersons Lane with Kin Kin Road was a requirement of the Main Roads Department at the time, as
       Council's Shire Engineer sought their advice in relation to the application as part of the assessment.
      The conditions of approval also require the performance of regular maintenance of roadworks within
       Sheppersons Lane, including the removal of any materials which may fall from vehicles transporting quarry
       matenals.
       The conditions do not include an annual tonnage limit on excavation, but do require the quarry to operate
       in accordance with a Management Plan addressing location of siltation ponds, the extent of proposed
       excavations, access, location of crusher and office, buffers to adjoining properties boundaries and
       rehabilitation procedures. In 1991, a Management Plan for Ready Mix was approved.
       Extension to Term of
       In 2003, Council extended the term of the quarry until 12 May 2033, subject to conditions. These conditions
       required the submission of an updated Management Plan. In 2005, an updated Management Plan by the
       Neilsen Group was approved by Council. It identified a similar quarry footprint to the 1991 Management
      Plan, with the quarry to be quarried from the top down.
       First Breach Action
       In September 2010, officers issued a Show Cause Notice to the operators, requiring that the conditions of
       the development approval be complied with. At the time, there was significant community concem over
      the operations of the quarry, and inspections indicated that the quarry was not being operated in
       accordance with the approved Neilsen Group Management Plan. The operators challenged Council's
       Show Cause Notice and, due to the non-specificity of the 2005 Management Plan, Council could not
      proceed further with this action.
       Amended QMP lodged
       In December 2011, an amended Management Plan was submitted by the quarry operator, seeking to
       commence quarrying at the botiom of the hill and then proceed to the hilltop and quarry down. This
       Management Plan provided a greater amount of detail to that contained in the previously approved
       Management Plan for the site, but maintained a degree of flexibility in relation to the operation, recognising
      that quarry operations are an evolving process affected by the nature of the extracted resource and market
       demand for material.
                                                                                            Page 4

                                                                                       Page 8 of 10

Section 9

ORDINARY MEETING REPORT   17 DECEMBER 2020




                               Page 9 of 10

ORDINARY MEETING REPORT                                                            17 DECEMBER 2020

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       Kin Kin Community Group Action
       In October 2010, the Kin Kin Community Group contested the quarry approval, asking the Planning &
       Environment Court:
       .    Whether the town planning consent approval given by Noosa Shire Council in 1987 was lawfully
            given;
       .   Was the order made by the Local Government Court on 13 May 1988, allowing the appeal against
            some conditions to which the Noosa Shire Council subjected its approval and varying conditions,
            made within jurisdiction;
       .    In the event the approval of the Council was lawfully given and the Court's orders were within its
            jurisdiction, did the town planning consent approval lapse; and
       .    In the event the approval has not lapsed, is use of the site for quarry purposes for extractive industry,
            limited to the area and scale of development particularised in the application for town planning
            consent and the town planning consent limited only until 2018.
       The judge dismissed all of the Group's claims in December 2010.
       Environmental Protection Order Issued
       In early 2011, the Department of Environment and Resource Management issued an Environmental
       Protection Order to the operators of the quarry through their Environmentally Relevant Activity permit. The
       Environmental Protection Order specified that no further material was to be extracted from the quarry on
       a commercial basis until a number of steps had been undertaken, including the implementation of
       appropriate stormwater management measures. In January 2012, the Department of Environment and
       Resource Management informed the applicant that the Department was satisfied all actions had been
       completed regarding the Environmental Protection Order, and all activities must be undertaken in
       accordance with the Environmentally Relevant Activity permit.
       The Environmentally Relevant Activity Permit allows for the extraction of up to 1,000,000 tonnes a year. In
      March 2014 the Department of Environment and Heritage Protection revised the water management
       conditions over the previous environmental licence.
       Approval of Amended QMP
       In July 2012, the Sunshine Coast Regional Council resolved to approve, in part, the amended Quarry
       Management Plan for the initial quarry development phase, given a feasible Stormwater Management
       Plan was only included for that phase. This meant that the Management Plan will be required to be further
       updated in the future and approved by Council before further quarrying stages proceeded. The Council
       also requested a number of amendments to be made to the Management Plan.
       At its Ordinary Meeting on 23 May 2013 Council considered further amendments to the Quarry
       Management Plan and resolved again to approve the plan in part, subject to 8 amendments being made
       to the Management Plan.
       At its Ordinary Meeting on 19 September 2013 Council considered a further amendment to the Quarry
       Management Plan in relation to the haul route, with Council maintaining the previously approved haul
       route.

       Breach Action in 2014-2016
       In late 2014 complaints were received that the quarry operators had blasted the lower foothill area (‘the
       finger’), which is predominantly outside of the approved short term development area footprint and in part
      outside the long term approved footprint of the excavation area. The matter was reported to Council and
       an application to the Planning & Environment Court was subsequently lodged. The application sought
      orders from the Court that excavation is not permitted outside the approved excavation footprint and that
       works undertaken outside the approved footprint were in breach of the approval.
                                                                                               Page 5

                                                                                          Page 9 of 10

Section 10

ORDINARY MEETING REPORT   17 DECEMBER 2020




                              Page 10 of 10

ORDINARY MEETING REPORT                                                             17 DECEMBER 2020

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       During the course of Council's application to the P&E court, the quarry operators also made an application
       to the P&E Court to change the quarry approval and incorporate a new management plan into the
       conditions of approval. The changes sought to consolidate all the approvals, including the Extension to
       Term of Approval into one document for ease of reference and delete, amend existing conditions and
       include additional requirements. A new condition to comply with the management was of significant benefit
       to the Council with respect to its enforcement obligations and future dealings with the quarry operators. It
       overcame a flaw in the original approval which undermined the Council’s ability to enforce the QMP or
       effectively regulate the quarry’s operations, removing the uncertainty. It also meant future changes to the
       QMP must also be by way of a statutory development application process.
       The amended QMP also provided for an annual audit to be undertaken of the quarry by an independent
       specialist on behalf of Council but paid for by the operators. Council consequently resolved to not continue
       with their application, and settle the operator's application to the cour. A Deed of Agreement was also
       entered into to pay Council's costs in the matter and payment of $30,000 to an appropriate land
      management fund.
       Since then officers have undertaken regular inspections of the quarry activities as workload permits.
       Breach Action in    2020
       In early 2020, after a large rain event, complaints were received from residents that dirty water was coming
      from the quarry site. Inspection by officers and the state found a significant breach, with the quarry
       operator extending the excavation area without first extending the necessary stormwater management
       controls. The operators were issued an Enforcement Notice and infringement notice by officers. The
       operators have since complied with all actions required by the Enforcement Notice and the fine will be
       collected through SPER.

                                                                                               Page 6

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