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2014-02-25 Planning & Organisation Committee Meeting Agenda
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AGENDA
Planning & Organisation
Committee Meeting
Tuesday, 25 February 2014
commencing at 1.30pm
Council Chambers, 9 Pelican Street, Tewantin
Committee: Crs Frank Wilkie (Chair), Noel Playford, Joe Jurisevic, Tony Wellington
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Section 2
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
TABLE OF CONTENTS
ITEM SUBJECT PAGE
ATTENDANCE & APOLOGIES 3
PRESENTATION 3
COMMUNITY & DEVELOPMENT DEPARTMENT REPORTS 4
Planning & Development 4
1. REVIEW OF PLANNING & DEVELOPMENT INSTRUMENTS OF DELEGATION 4
2. COUNCIL POLICY: DEVELOPMENT ASSESSMENT – ROLES AND
RESPONSIBILITIES OF COUNCILLORS AND COUNCIL OFFICERS 21
3. AMENDMENTS TO THE NOOSA PLAN 32
4 CHANGE TO DEVELOPMENT APPROVAL FOR VIRIDIAN RESORT AT
5 MORWONG DRIVE, NOOSA HEADS 38
ORGANISATIONAL SERVICES DEPARTMENT REPORTS 46
Financial Services 46
5. FINANCIAL PERFORMANCE - JANUARY 2014 46
6. 2013/14 NATIONAL COMPETITION POLICY REFORM APPLICATION 52
Property & Contracts 57
7. UPDATE ON COUNCIL LEASED VEHICLE REVIEW 57
8. PROCUREMENT - DELEGATION OF AUTHORITY AND POLICY 61
9. PROCESS UPDATE – COMMERCIAL ACTIVITIES ON COMMUNITY LAND 71
10. FEES AND CHARGES UPDATE – NOOSA RIVER HOLIDAY PARK 76
EXECUTIVE OFFICE REPORTS 79
Executive 79
11. ESTABLISHMENT OF A CASE MANAGEMENT WORKING GROUP 79
Communication & Governance 84
12 ESTABLISHMENT OF INTERNAL AUDIT PROCESSES 84
CLOSED SESSION 92
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Section 3
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
ATTENDANCE & APOLOGIES
PRESENTATION
Overview Plumbing Services
Allan Hazell, Co-ordinator Plumbing Services
Page 3 of 92
Section 4
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
COMMUNITY & DEVELOPMENT DEPARTMENT REPORTS
(Planning & Development Section only)
Planning & Development
1. REVIEW OF PLANNING & DEVELOPMENT INSTRUMENTS OF DELEGATION
Author Coordinator, Development Assessment, Kerri Coyle
Community & Development
Index ECM/Subject/Governance and Executive/Delegations of Authority
Attachments 1. 2014-20 - Building Services
2. 2014-22 - Integrated Planning
3. 2014-35 - Sustainable Planning
PURPOSE
The purpose of this report is to review the current planning and development delegations that
have transferred from Sunshine Coast Council under the provisions of the Local Government
(De-amalgamation Implementation) Regulation 2013 and De-amalgamation Transfer
Methodology.
EXECUTIVE SUMMARY
The current delegations for planning and development transferred to Noosa Council in
accordance with the de-amalgamation regulations and methodology. These include:
2009- 20 (v3) - Building Services
2009- 35 (v3) - Sustainable Planning
2009- 22 (v2) - Integrated Planning
2011- 42 (v1) - Planning Scheme - Development Control Plan 1 (Kawana Waters)
2012-49 (v1) - Sustainable Planning Act - Master Plans
This report reviews the current delegations that transferred to ensure they address current
legislation and are appropriate for the Noosa area. The report concludes that some minor
changes are required to address legislative changes and identifies that some delegations are not
applicable to the Noosa area and should be rescinded. Amendments to the Sustainable
Planning Act 2009 delegations are also recommended in respect to those development
applications that are required to be reported to a Council meeting.
RECOMMENDATION
That Council note the report by Coordinator, Development Assessment to the Planning &
Organisation Committee dated 25 February 2014 and
A. Delegate to the Chief Executive Officer pursuant to section 257 of the Local Government
Act 2009 the exercise of powers as contained in Attachment 1;
B. Delegate to the Chief Executive Officer pursuant to section 257 of the Local Government
Act 2009 the exercise of powers as contained in Attachments 2 & 3; subject to the following
limitations in deciding development applications under the Integrated Planning Act 1997
and Sustainable Planning Act 2009:
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Section 5
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
1. an application for a preliminary approval mentioned in section 242 of the Act to vary
the effect of the planning scheme;
2. the approval for a proposed development where there is substantial non-compliance
with a stated policy of the council or a high order provision of the planning scheme
being a desired environmental outcome, or an overall outcome of a code;
3. the refusal of any development application where council is the assessment
manager;
4. requests, including Negotiated Decision requests, to change or cancel conditions that
were imposed by Council at an Ordinary Meeting; and
5. an application for a proposed development of significant community interest.
However, even if paragraphs 1 or 5 above apply, the delegated officer may exercise the
powers of the local government under the Act for an application where:
(i) the application has the potential for “deemed approval” in accordance with sections
330-331 of the Act; and
(ii) the application is for Operational Works for clearing vegetation; and
C. Repeal existing delegations that transferred to the Noosa Council from the Sunshine Coast
Regional Council under the Local Government (De-amalgamation Implementation)
Regulation as detailed in “2012-49 Planning Scheme - Development Control Plan 1
(Kawana Waters)” and “2012-49 (v1) - Sustainable Planning Act - Master Plans”.
BACKGROUND INFORMATION
Delegations are the process by which the Council delegates local government powers under
relevant legislation to implement and enforce legislation, standards and requirements.
‘Delegation’ to the Chief Executive Officer and council officers will ensure actions undertaken by
council are compliant with State Government legislative requirements. These powers must be
exercised subject to any applicable criteria and procedures detailed in the delegations.
The development or amendment of delegations does not require community consultation as they
are purely an administrative process that provides the Chief Executive Officer with the necessary
authority under the various Acts.
Section 257 (Delegation by the Local Government) of the Local Government Act 2009 allows, by
resolution, a local government to delegate its powers under the local government Act to the
Mayor, CEO, a standing committee or a joint standing committee.
Section 259 (Delegation by the Chief Executive Officer) of the Local Government Act 2009 allows
the chief executive officer of a local government to delegate the Chief Executive Officer’s powers
(including powers delegated to the Chief Executive Officer by the local government) to another
employee of the local government.
PREVIOUS COUNCIL CONSIDERATION
Not previously considered by Noosa Council.
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Section 6
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
REPORT
The current delegation instruments that are primarily applicable to planning and development
matters that transferred from the Sunshine Coast Council include:
2009- 20 (v3) - Building Services
2009- 35 (v3) - Sustainable Planning
2009- 22 (v2) - Integrated Planning
2011- 42 (v1) - Planning Scheme - Development Control Plan 1 (Kawana Waters)
2012-49 (v1) - Sustainable Planning Act - Master Plans
Review of these delegations finds that 2 of the delegations, including delegations in respect to
Kawana Waters and Master Plans are not relevant to the Noosa area, with Kawana Waters
located outside the Noosa Shire, and the master planning process in the Sustainable Planning
Act 2009 now removed from the Act.
The delegations relating to Building matters require some minor amendment to reflect legislative
changes to now address the Residential Services (Accreditation) Act 2002. It is also be
appropriate for council to review the delegation instrument for the Sustainable Planning Act 2009
in respect to those development applications that are not delegated to the Chief Executive Officer
and must be decided at an Ordinary Meeting of Council.
Currently, the delegations that transferred from the Sunshine Coast Council require the following
applications to be decided at an Ordinary Meeting of Noosa Council:
(a) an application where the estimated construction value of the proposed development
exceeds $50 million (excluding land content);
(b) an application for the approval of a master plan for a master planned area;
(c) an application for a preliminary approval mentioned in section 242 (Preliminary approval
may affect a local planning instrument) of the Act that states the way in which the
application seeks the approval to vary the effect of any applicable local planning instrument
for the land;
(d) the approval for a proposed development where there is substantial non-compliance with a
stated policy of the council or a high order provision of the planning scheme being a
desired environmental outcome, strategic outcome, or an overall outcome of a code;
(e) an application for a proposed development where more than 20 submissions have been
received during the notification stage objecting to the proposed development.
(f) Development applications where a councillor of officer has a material personal interest in
the development application.
It has also been the practice of Sunshine Coast Council to refer all reports on impact assessable
applications to councillors for 3 business days to provide an opportunity for councillors to request
a matter to go to a council meeting for a decision.
In reviewing the current delegations, a number of examples were sought from other council’s in
Queensland, including:
Redland City Council
Cairns City Council
Moreton Bay Regional Council
Ispwich City Council
Gympie Regional Council
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Section 7
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
A summary of these council delegations is provided below:
Redlands City Council
The Redlands City Council requires the following matters to be decided by a council meeting:
all major and significant assessments having state and/or city wide significance or
highly controversial development proposals attracting significant public interest and
submissions;
refusal of any development application;
approval of plans of subdivision and associated documentation where there is non-
compliance with any relevant planning instrument; and
management of appeals and legal proceedings.
The mayor and any other councillor in consultation with the committee chair may choose to refer
an application to council for a decision.
Cairns City Council
The Cairns City Council requires the following matters must be referred to a committee or
Ordinary Meeting of council:
applications for significant development proposals having state and/or City wide
significance or
highly controversial development proposals attracting significant public interest and
submissions
and/or refusal of any development application.
The Mayor, Divisional Councillor or at the request of the Manager and/or General Manager for
Planning and Environment or Chief Executive officer may also request an application to be
referred to a Council meeting. This is affected through each councillor being providing a copy of
all incoming development applications for their electorate and having 48hrs to request the matter
go before a Council meeting.
Moreton Bay Regional Council
In Moreton Bay Regional Council the following matters are not delegated to the CEO and must
be decided at a council meeting:
Impact Assessable Material Change of Use Development Applications with submissions
unless the Divisional Councillor provides written authorisation that the Development
Application can be determined through officer delegation;
Request to change or cancel conditions that were imposed by Council at a Committee
Meeting or General Meeting of Council;
Negotiated Decision requests seeking to change or delete conditions imposed by Council
at a Committee Meeting or General Meeting of Council; and
Applications for Preliminary Approval to vary the effect of the Planning Scheme.
The Divisional Councillor, Director Strategic Planning and Development and the Manager
Development Services may also request that where a Development Application is a major
project, challenges Council policy, or has attracted significant attention or raised community
concern, that the application is reported to Council for a decision.
Ipswich City Council
The delegations for Ipswich City Council require that prior to determining a development
application, officers must consult with the Chairperson of the Planning and Development
Committee and the relevant divisional councillor and seek their views, allowing 2 days for the
matter to be referred to a council meeting at their request, with the exception of:
Page 7 of 92
Section 8
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Operational, building, plumbing or drainage works
Minor development matters including applications which are unlikely to cause a substantial
impact on the amenity of nearby land and involve building work not associated with a
material change of use (eg. Reduced front setbacks) and a minor amendment to a current
development approval.
Operational, plumbing or drainage works and minor development matters may be decided by
delegation.
Gympie Regional Council
The delegations for Gympie Regional Council require the following matters to be decided at a
Council meeting:
Refusal of any development application
All development applications where submissions have been received objecting to the
proposed development. This may be impact or code assessable applications.
Councillors also have the ability to request an application to be reported to a Council meeting.
Conclusion
There are some similarities in the delegation instruments of the council’s reviewed, with a
number of the council’s requiring applications of significant community interest, and shire wide
significance to be decided at a council meeting, with some differences noted for Ipswich and
Gympie. Some council delegations also provided for the ability for councillors to request a matter
to go before a council meeting. The delegations do not significantly vary from the Sunshine
Coast Council delegations which transferred, with the Sunshine Coast Council delegations
seeking to define those applications that are of shire or regional significance, based on a
monetary value and number of submissions received.
For Noosa Council some changes are recommended to the existing delegations to remove the
limitations relating to master planned areas as the master planning process is no longer part of
the Sustainable Planning Act 2009. It is also recommended that the monetary value and number
of submissions received be replaced with all applications of significant community interest to be
decided by a council meeting. Applications of significant community interest may include
development proposals for highly prominent or environmentally sensitive sites such as Hastings
Street, Gympie Terrace or proposals on the Noosa North Shore; new developments in the
business centres; prescribed tidal works for commercial operations on the Noosa River; heritage
sites; proposals of significant construction value ($20 million) and applications attracting 20
opposing submissions.
A new limitation to the delegations is also recommended in respect to refusal of development
applications given the appeal cost implications and consequences for the applicant. However, it
would be appropriate that some exclusions apply for statutory time constraints, or practical
reasons to this delegation limitation.
FINANCE & RISK
No Financial Implications. There is a minor a risk if the current delegations are not amended as
they do not address some legislative changes in respect to the Residential Services
(Accreditation) Act 2002 and the Local Government Act 2009.
Page 8 of 92
Section 9
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
CONSULTATION
External Consultation - Community & Stakeholder
Nil
Internal Consultation
Departments/Sections Consulted:
Community Infrastructure x Community & Development
Asset Planning & Delivery Community Services
Civil Operations Planning & Development
Environmental Services Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
x Executive Office Organisational Services
Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination Property & Contracts
Page 9 of 92
Section 10
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Page 10 of 92
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Delegation No: 2014-20
ATTACHMENT 1
Noosa Shire Council
DELEGATION OF AUTHORITY
TITLE: Building
Delegation by the Council to: Date and Resolution No..
Chief Executive Officer
Delegation by the Chief Executive Officer to: Date approved:
Source of Authority:
Local Government Act 2009 — 257 and 259
Building Act 1975
Sustainable Planning Act 2009
Sustainable Planning Regulation 2009
Residential Services (Accreditation) Act 2002
Delegated Power:
1. To exercise the following powers of the Council under the Building Act 1975 (the Act),
Sustainable Planning Act 2009 (SPA) and the Sustainable Planning Regulation 2009
including without limitation the authority to:
(a) perform building certifying functions;
(b) receive, assess and decide building development applications under IDAS with or
without conditions;
(c) appoint or employ a building certifier,
(d) issue a building development approval; and
(e) release security;
(f) consult with private certifiers;
(g) grant, refuse, use or provide concessional approval for BCA classification change
or use change;
(h) take enforcement action;
Page 1 of 4
Page 10 of 92Section 11
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Delegation No: 2014-20
(i) approve the use of a building for residential purposes':
(j) give a building certificate of classification if built before the 30 April 1998;
(k) give a show cause notice to a building certifier;
(I) consider any representations made under the show cause notice;
(m) apply to the QCAT* to start a disciplinary proceeding against a building certifier,
and
(n) notify the Queensland Building Services Authority (BSA) with regards to an
application to QCAT.
2. To exercise the powers of the Council under the Act with respect to building works under
section 65, section 87, section 92(2) and section 93(1).
3. To exercise the following powers of the Council under the Act with respect to budget
accommodation buildings, including without limitation the authority to:
(a) consult with any other entity;
(b) grant an application for a longer period of conformity with the fire safety standard
with or without conditions;
(c) refuse an application; for a longer period of conformity with the fire safety
standard;
(d) on written application® from the owner, decide and give notice if the building
conforms with the fire safety standard; and
(e) inspect budget accommodation buildings.
4. To exercise the powers of the Council under the Act with respect to residential care
buildings including without limitation the authority to approve an application with or without
conditions, for a later day to obtain a fire safety certificate or certificate of classification.
5. To exercise the following powers of the Council under the Act with respect to pool safety
standards, including without limitation the authority to:
(a) determine all applications in respect of exemption from complying with swimming
pool fencing standards (with or without conditions);
(b) give a show cause notice about revoking an existing exemption;
(c) consider representations made under a show cause notice and give a further
notice* to the applicant;
(d) make copy of exemption available for inspection and purchase;
(e) as owner of adjoining land, the authority to exercise the powers under the Act
relating to pool barriers along the common boundary under section 245XG(1),
245XN(2), 245XS(1), 245XS(3) and 245XV(2);
* Other than a class 1,2,3 or 4 building for residential purposes
? Queensland Civil and Administrative Tribunal
3 Within 20 business days after receiving the application.
* Revocation Notice
Page 2 of 4
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Delegation No: 2014-20
(f) where the local govemment receives for a regulated pool a (a) notice of pool
immersion incident under section 245] of the Act or (b) a pool safety complaint
notice or a (c) notice under section 245UA under the Act the authority to:
|. inspect a regulated pool for compliance; and
ll.take necessary enforcement action to ensure a pool is compliant with pool
safety standards or fencing standards for the pool;
(g) cancel a pool safety certificate for a regulated pool;
(h) give a show cause notice about cancelling a pool safety certificate;
(i) consider submissions and decide whether to cancel a pool safety certificate;
(j) extend the time for an owner of a swimming pool to comply with the Act®; and
(k) appoint or employ a pool safety inspector.
6. To exercise the powers of the Council under the Act to designate land as a transport noise
corridor by gazette notice.
7. To exercise the following powers of the Council with respect to offences made under the
Act, including without limitation the authority to:
(a) give a show cause notice;
(b) give an enforcement notice; and
(c) make a complaint for an offence made under section 256 (2)°.
8. To act on behalf of the local government in legal proceedings under the Loca/ Government
Act 2009 including the authority to:
(a) give instructions and act as the authorised agent for the local government; and
(b) sign all documents for the local government.
9. To exercise the powers of the local government under the Residential Services
(Accreditation) Act 2002 including the authority to:
(a) on application by a person conducting, or proposing to conduct, a residential service
in premises, to assess and determine whether a building complies with the
prescribed building requirements;
(b) issue a building compliance notice;
(c) approve the form to be used for an application; and
(d) issue a notice stating the extent to which the premises comply with the prescribed
building requirements.
* Only where an extension under section 49H(11)(b) of the Local Government Act 1936 is still in force.
®Other than 256(2\a), (b), (Xi) and (j).
Page 3 of 4
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Page 13 of 92
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Delegation No: 2014-20
Delegated Criteria:
10. The Delegated Officer may exercise the powers delegated only in accordance with the
relevant provisions outlined in the Act and Sustainable Planning Act 2009 and regulations.
Delegation Administrative Procedure:
11. The following procedure is to be undertaken for this delegation in accordance with the
powers delegated:
(a) Delegated Officers should consider the impacts of any obligations and contractual
responsibilities being imposed on council as a result of exercising the powers in this
delegation;
(b) The Delegated Officer must act impartially and consider any potential conflicts of
interest when exercising this delegation;
(c) The Delegated Officer must follow lawful and fair procedures, gather information
relevant to any decision and give procedural fairness to ensure due process is
followed when exercising this delegation; and
(d) will apply all relevant policies, guidelines and procedures.
Page 4of 4
Page 13 of 92Section 14
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Page 14 of 92
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Delegation No: 2014-22
ATTACHMENT 2
Noosa Shire Council
DELEGATION OF AUTHORITY
TITLE: Integrated Planning
Delegation by the Council to: Date and Resolution No..
Chief Executive Officer
Delegation by the Chief Executive Officer to: Date approved:
Source of Authority:
Local Government Act 2009 - Section 257 & 259
Integrated Planning Act 1997 — Chapter 3, Chapter 4, Chapter 5, Chapter 6
Sustainable Planning Act 2009 - Chapter 10
Delegated Power:
1. To exercise the Council's powers under Chapter 3 of the repealed /ntegrated Planning Act
1997 (repealed Act) in respect of the Integrated Development Assessment System,
including without limitation, the following:
(a) to receive and determine whether a development application is properly made;
(b) to assess and decide a development application;
(c) to decide a request to change a development approval (other than a change of a
condition);
(d) to decide a request to change or cancel a condition;
(e) to decide a request to extend the period of a development approval;
(f) to decide a request for the giving of a negotiated decision notice;
(g) to decide a request to cancel a development approval;
(h) to give the Minister all reasonable assistance the Minister requires to assess and
decide a development application that has been called in by the Minister,
(i) to approve a plan of subdivision for the reconfiguring of a lot.
Page 1 of 3
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Page 15 of 92
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Delegation No: 2014-22
2. To exercise the Council's powers under Chapter 4 of the repealed Act, except for the
power contemplated in section 4.3.11(5) to give an enforcement notice ordering the
demolition of a building, but otherwise without limitation, including the following:
(a) to conduct an appeal or proceeding in which the Council is a party;
(b) to initiate a legal proceeding;
(c) to issue a show cause notice and enforcement notice.
3. To exercise the powers of the Council under Chapter 5 of the repealed Act, including
without limitation, the following:
(a) to impose conditions about infrastructure on an approval of a development
application;
(b) to give an infrastructure charges notice;
(c) to give a regulated infrastructure charges notice;
(d) to enter into infrastructure agreements;
(e) the making available for inspection and purchase of documents which are
required by the repealed Act to be kept available for inspection and purchase;
(f) the maintenance of a register of development applications;
(g) the giving of a limited, standard or full planning and development certificate for a
premises;
(h) the provision of a copy of a document from the register of all development
applications at the request of members of the public.
4. To exercise the powers of the Council under Chapter 6 (Transitional Provisions) of the
repealed Act.
Delegation Crite ria:
5. The Delegated Officer may exercise the powers of the Council under the repealed Act to
the extent that the powers continue in effect in accordance with the transitional provisions
of the Sustainable Planning Act 2009.
6. The Delegated Officer may exercise the powers of the Council under the repealed Act for
an application other than the following:
(a) an application where the estimated construction value of the proposed
development exceeds $20 million (excluding land content);
(b) an application for the approval of a master plan for a master planned area;
(c) an application for a preliminary approval mentioned in section 3.1.6 (Preliminary
approval may ovemde a local planning instrument) of the repealed Act that states
the way in which the application seeks the approval to vary the effect of any
applicable local planning instrument for the land:
(d) the approval for a proposed development where there is substantial non-
compliance with a stated policy of the Council or a high order provision of the
Page 2 of 3
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Delegation No: 2014-22
planning scheme being a desired environmental outcome or an overall outcome of
a code;
(e) an application for a proposed development where more than 20 submissions have
been received during the notification stage objecting to the proposed
development.
Delegation Administrative Procedure:
7. This delegation is to be exercised in accordance with the repealed Act.
8. The extent of authority is in accordance with the delegated criteria where stated.
9. The Delegated Officer shall cause a register to be kept of all instances of where this
delegation has been exercised.
10. The following procedure is to be undertaken for this delegation:
(a) The policies of the Council are be complied with and in particular any policy
related to entering into an infrastructure agreement in accordance with the power
delegated in paragraph 4(e) of this delegation.
(b) The policies and codes of conduct of the Council are be complied with and in
particular a development application is to be referred to the Council for
determination where a councillor or officer has a material personal interest in the
development application.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Delegation No: 2014-35
ATTACHMENT 3
Noosa Shire Council
DELEGATION OF AUTHORITY
TITLE: Sustainable Planning
Delegation by the Council to: Date and Resolution No..
Chief Executive Officer
Delegation by the Chief Executive Officer to: Date approved:
Source of Authority:
Local Government Act 2009
Sustainable Planning Act 2009
Delegated Power:
1. To exercise the powers of the local government under Chapter 3 of the Sustainable
Planning Act 2009 (the Act).
2. To exercise the powers of the local government under Chapter 6 of the Act in respect of
the Integrated Development Assessment System, including without limitation, the following:
(a) to receive and determine whether a development application is properly made;
(b) to assess and decide a development application, including the imposition of
conditions an approval of a development application;
(c) to decide a request to change a development approval;
(d) to decide a request to extend the period of a development approval;
(e) to decide a request for the giving of a negotiated decision notice;
(f) to decide a request to cancel a development approval;
(g) to give the Minister all reasonable assistance the Minister requires to assess and
decide a development application that has been called in by the Minister;
(h) to approve a plan of subdivision for the reconfiguring of a lot;
(i) to nominate an entity to carry out compliance assessment for the Council;
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Delegation No: 2014-35
(j) to assess and decide a request for compliance assessment, including approving a
request with or without conditions, or giving an action notice;
(k) to assess and decide representations made in respect of an action notice;
(I) to assess and decide a request to change a compliance permit or compliance
certificate; and
(m) to assess and decide a request for application of a superseded planning scheme.
3. To exercise the powers of the local government under Chapter 7 of the Act, except for the
power contemplated in section 590(7) to give an enforcement notice ordering the
demolition of a building, but otherwise without limitation, including the following:
(a) to conduct an appeal or proceeding in which the council is a party;
(b) to initiate a legal proceeding;
(c) to issue a show cause notice and enforcement notice.
4. To exercise the powers of the local government under Chapter 8 of the Act, including but
not limited to the following:
(a) to impose conditions about infrastructure on an approval of a development
application;
(b) to give an infrastructure charges notice;
(c) to give a regulated infrastructure charges notice;
(d) to give an adopted infrastructure charges notice;
(e) to enter into an infrastructure agreement.
5. To exercise the powers of the local government under Chapter 8A of the Act, including
without limitation, the following:
(a) to note registered premises on the planning scheme.
6. To exercise the powers of the local government under Chapter 9 of the Sustainable
Planning Act 2009, including without limitation, the following:
(a) the making available for inspection and purchase of documents which are required
by the Act to be kept available for inspection and purchase;
(b) the maintenance of a register of development applications;
(c) the giving of a limited, standard or full planning and development certificate for a
premises;
(d) the provision of a copy of a document from the register of all development
applications at the request of members of the public;
(e) the publishing on Council's website information about each development
application made to the Council as assessment manager in accordance with the
requirements of the Act.
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Delegation No: 2014-35
7. To exercise the powers of the local government under Chapter 10 (Transitional Provisions)
of the Act.
8. To exercise the powers of the local government under the Loca/ Government Act 2009,
including but not limited to the following:
(a) act for the local government in legal proceedings including the authority to:
(i) | give instructions and act as the authorised agent for the local government; and
(ii) sign all documents for the local government.
Delegation Criteria:
9. The delegated officer may exercise the powers of the local govemment under the Act for
an application other than the following:
(a) an application for a preliminary approval mentioned in section 242 of the Act to
vary the effect of the planning scheme ;
(b) the approval for a proposed development where there is substantial non-
compliance with a stated policy of the council or a high order provision of the
planning scheme being a desired environmental outcome, or an overall outcome of
a code;
(Cc) the refusal of any development application where council is the assessment
manager,
(d) requests, including Negotiated Decision requests, to change or cancel conditions
that were imposed by Council at an Ordinary Meeting;
(e) an application for a proposed development of significant community interest;
10. However, even if paragraphs 9 (a) or (€) above apply, the delegated officer may exercise
the powers of the local govemment under the Act for an application where:-
(a) the application has the potential for “deemed approval” in accordance with
sections 330-331 of the Act.; and
(b) the application is for Operational Works for clearing vegetation.
Delegation Administrative Procedure:
11. This delegation is to be exercised in accordance with the relevant Acts.
12. The extent of authority is in accordance with the delegated criteria where stated.
13. The delegated officer shall cause a register to be kept of all instances of where this
delegation has been exercised.
14. The following procedure is to be undertaken for this delegation:
(a) The policies of the council must be complied with and in particular any policy related
to entering into an infrastructure agreement in accordance with the power delegated
in paragraph 4(e) of this delegation.
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Delegation No: 2014-35
(b) The policies and codes of conduct of the council must be complied with and in
particular, a development application is to be referred to the Council for
determination where a councillor of officer has a material personal interest in the
development application.
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2. COUNCIL POLICY: DEVELOPMENT ASSESSMENT – ROLES AND
RESPONSIBILITIES OF COUNCILLORS AND COUNCIL OFFICERS
Author Interim Director, Alan (Fox) Rogers
Community & Development
Index ECM / Subject / Governance and Executive / Organisational Policies
Attachments 1. Council Policy: Development Assessment – Roles and
Responsibilities of Councillors and Council Officers
2. Sunshine Coast Council Policy Statement: Development
Assessment – Roles and Responsibilities of Councillors and
Council Employees
PURPOSE
The purpose of this report is to present a proposed Council Policy on roles and responsibilities of
Councillors and Council Officers in development assessment to Council for consideration and
adoption. In adopting this policy, Council acknowledges that it sets out, for both Councillors and
Officers, the standards expected for the development assessment process in Noosa Shire
Council.
EXECUTIVE SUMMARY
This report makes recommendation that Council repeal the previous Sunshine Coast Council
Policy Statement: Development Assessment – Roles and Responsibilities of Councillors and
Council Employees that transferred to the Noosa Council under the De-amalgamation Regulation
and adopt the proposed Noosa Council Policy: Development Assessment – Roles and
Responsibilities of Councillors and Council Officers for Noosa Council.
The Sunshine Coast Regional Council policy which translated to the Noosa Shire under the
transition provisions is set out in Attachment 2.
RECOMMENDATION
That Council note the report by the Interim Director Community & Development to the Planning &
Organisation Committee dated 25 February 2014 and:
A. Repeal the Policy Statement: Development Assessment – Roles and Responsibilities of
Councillors and Council Employees that transferred to the Noosa Council from the
Sunshine Coast Regional Council under the Local Government (De-amalgamation
Implementation) Regulation as set out in Attachment 2; and
B. Adopt Noosa Council’s Policy on Development Assessment - Roles and Responsibilities of
Councillors and Council Officers as set out in Attachment 1 of the report.
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BACKGROUND INFORMATION
The Queensland Sustainable Planning Act 2009 (SPA) provides for a development assessment
system where, in most cases, Local Governments are the assessment managers (or decision
maker). SPA requires that the development assessment process is transparent, unbiased,
unfettered and legally correct.
PREVIOUS COUNCIL CONSIDERATION
Not previously considered by Noosa Council.
REPORT
The proposed Council policy reflects current legislative provisions and expectations for officers
as well as Councillors. The policy provides Councillors and officers with guidelines for their
involvement in discussions with parties having an interest in any particular development proposal
or development application. It spells out both guiding principles as well as specific instructions
for every phase of the development assessment process. Particularly it seeks to ensure
Councillors do not “pre-determine” a proposed development before they have received the
appropriate reports and recommendations of officers.
FINANCE & RISK
There are no financial implications. Adoption of and adherence to this policy will mitigate the risk
of Council’s development process being subject to challenge due to bias or other procedural
irregularities.
CONSULTATION
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
In preparation of this policy consultation has occurred with the Planning and Development
section and the Executive Office.
Departments/Sections Consulted:
Community Infrastructure x Community & Development
Asset Planning & Delivery Community Services
Civil Operations Planning & Development
Environmental Services Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
x Executive Office Organisational Services
Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination Property & Contracts
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Section 23
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Attachment 1
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Attachment 1
an NOOSA COUNCI COUNCIL POLICY
no OOSA COUNCIL Development Assessment — Roles and
Responsibilities of Councillors and
Council Officers
Policy adopted by Council: << Date of Council resolution>>
POLICY PURPOSE AND SCOPE
The purpose of this policy is to provide Councillors and officers with guidelines for their
involvement in discussions with parties having a direct material interest in any particular
development proposal or development application. Contact with Council is undertaken by
many people in the community in relation to a broad range of matters including development
proposals. The outcome of this policy is that such contact is carried out ethically and
transparently.
This policy applies to all Councillors and officers of the Noosa Shire Council, particularly as
dealings relate to IDAS under SPA. It is important to note that, once a development
application moves past a simple enquiry and into the pre-lodgement phase, caution must be
exercised and the principles of this policy applied.
The Codes of Conduct for Councillors and Employees, as well as an understanding of the
general principles for managing conflicts of interests, should be understood and read in
conjunction with this policy.
POLICY STATEMENT
The Development Assessment (DA) process is a legal process. It must be transparent,
unbiased, unfettered and legally correct. The provisions of the SPA, particularly IDAS,
require that the “assessment manager” (usually Council) does not pre-determine an
application.
Each Councillor has an obligation under the Local Government Act 2009 (the Act) to
represent the overall public interest for the Shire. In doing so, Councillors must comply with
the “Statutory Provisions” Act and have regard to the Local Govemment principle of
transparent and effective processes and decision making in the public interest outlined in
Section 4(2) of the Act.
In all communications with development proponents and others having, or likely to have, a
direct material interest in a development proposal, Councillors are required to, at all times,
conduct themselves in such a manner that their actions and comments:
(1) cannot be readily construed as representing the views of Council as a whole unless
those comments and actions either reflect current Council policy or are specifically
authorised by a resolution of Council, and
(2) promote and maintain the public’s trust and confidence in Council.
Pre-Application Phase
During the pre-application phase, Councillors when meeting with or approached by
development proponents should not attempt to influence the form of a particular
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development beyond what is clearly stated in Council's planning scheme and adopted
policies.
Pre-Lodgement Meetings with Council Planning Staff
Pre-lodgement meetings are used to reach consensus on policy, statutory obligations and
layout issues. As such, attendees representing Council's interests at pre-lodgement
meetings will be Council Planning staff who are likely to be involved in the assessment of the
subsequent development application. Officers should be cautious about offering definitive
comment on a prospective application until a full assessment can be made.
Application Assessment Phase
Once an application has been lodged, Councillors should not involve themselves in meetings
or external discussions about an application under assessment nor should they direct, or
attempt to direct, an assessment officer in the course of that officer's duties to assess and
report on a development application.
Officers may openly communicate concems about the application with the applicant but
should remain cautious about offering definitive comment on the application until a full
assessment can be made.
Decision Stage
After Council officers have prepared a report and made an assessment and that report has
been provided as part of the normal Council meeting agenda process, Councillors may make
any necessary enquiries of Council staff to ensure their duty is discharged in deciding the
application.
Councillors should take care not to advocate on behalf of the applicant and should avoid
making any commitment about their likely decision on the application until the matter is
considered at a Council committee or Council meeting.
Post Decision Phase & Appeals
The post decision phase of any development application is particularly sensitive and can
involve negotiations between parties having an interest in the outcome of the application.
Under SPA, every applicant has the right to negotiate with Council on conditions and the
scope of any decision issued by Council.
All such negotiations must be attended by Council Officers staff and Councillors should not
be involved.
Should an appeal be lodged, it is inappropriate for Councillors to enter into discussions with
applicants, appellants or third party submitters.
Senior officers and Council's legal representatives manage the conduct of the Appeal.
During the course of the Appeal ‘without prejudice’ meetings may be held between the
parties in the appeal to try to reach an agreement, or at least limit the issues in dispute.
Councillors should not attend ‘without prejudice’ meetings. Officers should ensure that
Councillors are briefed on the outcomes of the meeting and seek direction from Council
where an alternative direction is proposed.
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At All Times
Each Councillor must avoid making any statement to a party having a direct material interest
in a development application which that Councillor knows, or should reasonably believe,
would be construed as a view of Council as a whole, since further information and facts may
be presented during the course of the Council meeting at which the application is
considered.
It is acknowledged that Councillors may be approached at any time and without notice by
persons having an interest in a development proposal. In these circumstances it is expected
Councillors would explain the views expressed in the discussion do not represent the views
of Council as a whole and that a Council decision would only be reached after having the
benefit of the final report by the assessing officer.
GUIDING PRINCIPLES FOR COUNCILLORS
e The primary duty of a Councillor, and the Council, is to govem in the wider public interest
of the community as a whole, and to pursue matters to the advantage of the Council and
the Noosa Shire.
e Councillors should not confuse their general representative responsibilities (advocating,
lobbying, brokering) with the specific assessment manager role/legal determination
responsibilities under the SPA. Similarly, Council officers should not confuse their roles
of providing good customer service with biased or subjective technical advice.
e For Councillors to avoid conduct which indicates a reasonable apprehension of bias they
must ensure that they genuinely consider the relevant material, the development
application and recommendations by Council officers prior to reaching a position.
e Confidentiality should be maintained for any information, records, briefings and
discussions that if released at a particular point in time, could prejudice the interests of
Council, the public at large, or another party as per S171 Act — use of information by
Councillors.
e Councillors may view Council files, and are invited to make all necessary enquiries, but
all requests should be through the Director Community & Development or Manager
Planning & Development.
GUIDING PRINCIPLES FOR OFFICERS
e Officers are to act in the public interest and to take policy direction from the Mayor and
Council.
e Anyone with a proper interest in a development matter, including Councillors, should be
kept informed.
e Officers are to regularly communicate with applicants advising on the progress of an
application, likely information required and issues that the assessment will need to
consider.
e Notwithstanding the fact that every development application and documentation relating
to it (including supporting material, properly made submissions, information requests and
referral agency responses) are publically accessible, officers should refrain from
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disclosing any information not publicly accessible or which may breech confidentiality or
give any party a commercial advantage.
RELATED POLICIES AND LEGISLATION
Councillor Code of Conduct
Employee Code of Conduct
Noosa Planning Scheme, Policies and Documentation
Local Government Act 2009
Sustainable Planning Act 2009
Public Sector Ethics Act 1994
Version control:
Version | Reason/ Trigger Change Endorsed/ Date
(Y/N) Reviewed by
1.0 Eg. Create new DD/MM/YYY
Eg. Review
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Attachment 2
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Attachment 2
| Regional Council
POLICY STATEMENT
TITLE: Development Assessment — Roles and Responsibilities of
Councillors and Council Employees
Category: Corporate Plan — Leadership and Governance
Date: 24 April 2012
Responsible Department: Regional Strategy and Planning
Reference No.: 8
POLICY OBJECTIVE
Councillors and council employees are frequently consulted by proponents regarding
planning and development applications or proposals.
This policy provides a guide to the appropriate level of interaction and involvement between
Councillors, council employees, developers and members of the community regarding
development proposals during the formal development assessment (DA) phases.
The policy sets a framework that provides a guide to the level and extent of what is
considered to be appropriate interaction with various stakeholders during the DA process
and applies only to those applications that are ‘live’ development applications, as opposed to
simple enquiries about future visions, plans or opportunistic ventures.
The policy aims to:
* assist Councillors and council employees to avoid any inference or allegation of
dishonesty or bias in the performance of their public or professional duties;
= instil public confidence in the open and transparent manner in which council deals
with development applications and the impartiality of council’s decision making
process; and
= inform Councillors and officers of their role and obligation as a preventative strategy
to alleviate the risk of legislative breach or inappropriate behaviour.
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POLICY STATEMENT — Development Assessment — Roles and Responsibilities of Councillors and Council Employees
POLICY APPLICATION
This policy applies to all Councillors and employees of the Sunshine Coast Regional Council,
particularly as dealings relate to IDAS under the Sustainable Planning Act 2009. It is
important to note that, once a development application moves past a simple enquiry and into
the pre-lodgement phase, caution must be exercised and the principles of this policy applied.
The Codes of Conduct for Councillors and Employees, as well as an understanding of the
general principles for managing conflicts of interests, should be understood and read in
conjunction with this policy.
DEFINITIONS
A full list of relevant definitions can be found in the Sustainable Planning Act 2009, relevant
Planning Schemes and local laws for the Sunshine Coast Regional Council.
POLICY STATEMENT
1. Integrated Planning Act and IDAS:
The Development Assessment process is a legal process. Its inference in law is that it must
be transparent, unbiased, unfettered and legally correct. The provisions of the Sustainable
Planning Act 2009, particularly IDAS, require that the “assessment manager” (usually
Council) does not pre-determine an application.
For Councillors to avoid conduct which indicates a reasonable apprehension of bias they
must ensure they genuinely consider the relevant materials, the development application and
recommendations made by council officers prior to reaching a position on a proposal."
Applications must be dealt with in accordance with the statutory requirements of the
Sustainable Planning Act 2009 and with due regard to the principles outlined in section 4 of
the Local Government Act 2009. An appreciation of the separation of duties, roles and
responsibilities of Councillors and the ‘administrative’ arm of Council is essential.
The following matrix outlines the protocols for involvement by Council and Council Officers
during each phase or formal Stage of the IDAS process. In all communications with
developers and other stakeholders having, or likely to have, a direct material interest in a
development proposal, Councillors and council employees must conduct themselves in such
a manner that their actions or comments cannot be construed as representing the views of
Council as a whole, unless those comments and actions either reflect current Council Policy
or are specifically authorised by a Council resolution.
LEVEL OF INVOLVEMENT BY COUNCILLORS AND OFFICERS IN DEVELOPMENT
Roo Nels PSS So =
Pre-lodgement Involvement = Cautionary Involvement = Technical Advice
Phase
Cautionary approach to offering any Cautionary approach to offering any
definitive comment to applicants in definitive comment to applicants in
relation to applications relation to applications
Pre-lodgement meetings should not be Arrangement of pre-lodgement meetings if
convened by Councillors, but handled by requested to discuss technical
the council officers on a technical basis requirements of the planning scheme and
Councillors may attend pre-lodgement other State or Local policies that might
" McGovern v Ku-Ring-Gai Council [2008] NSWCA 209
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POLICY STATEMENT — Development Assessment — Roles and Responsibilities of Councillors and Council Employees
LEVEL OF INVOLVEMENT BY COUNCILLORS AND OFFICERS IN DEVELOPMENT
STAGE ORS 1S el)
meetings only by invitation from the CEO, | impact on the proposal. These meetings
Director or co-ordinating Manager, in an should be convened by council officers on
observer capacity. a technical basis and not by Councillors.
Where known, Officers should advise
The risk is the perception of “pre- Councillor whether the pre-lodgement
determining” applications and the test of meeting is merely a presentation of an
“unbiased” and “unfettered” decision- idea or the precursor to a serious
making. development application.
Lodgement Involvement = Cautionary Involvement = Technical Advice
Live DA
(Lodgement is a Cautionary approach to offering any Advice to applicants to ensure all
significant point in | definitive comment to applicants in mandatory information has been
time at which relation to applications. submitted with the application.
conduct should be
considered) The risk is the perception of interference Caution should be exercised in regard to
and “pre-determining” applications and offering any definitive outcome comments
the test of “unbiased” and “unfettered” to applicants in relation to applications.
decision-making.
Assessment of Involvement = Nil / Cautionary Involvement = Technical Assessment
the Application
No involvement with applicants during the | Provision of technical assessment of the
Assessment Phase is recommended. application against the Planning Scheme
and other relevant policies.
No involvement with council officers
where the involvement may be seen as
directing or attempting to direct a council
officer or to apply time associated
pressures.
The risk is that involvement at this phase
could constitute a ‘statutory breach’ of
s.170(3) of the Local Government Act
2009 and give rise to suspicion of
inappropriate interference.
Councillors should participate in site
inspections or discussions if proposed by
the appropriate co-ordinating Manager.
Decision Stage Involvement = Enquiry/Decision Making | Involvement = Technical Assessment
(Applications not
determined by After council officers have prepared a Officers make an assessment and
delegation (i.e. report and made an assessment, prepare a report on the development
determined by the | Councillors have an obligation to make application for council's consideration.
Council) enquiries as necessary to ensure their
duty is discharged in deciding the
application. Councillors may confer with
any person, including the applicant, in
order to clarify any matter and to gain a
full understanding of the proposal.
Councillors should take care not to
advocate on behalf of the applicant if the
proposal is contrary to the public interest.
Councillors should avoid making any
commitment about their likely decision on
the application as further information and
facts may be presented during the course
of the council meeting convened for the
purpose of considering the matter.
Where a Negotiated Decision is
requested by the Applicant, Councillors
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POLICY STATEMENT — Development Assessment — Roles and Responsibilities of Councillors and Council Employees
LEVEL OF INVOLVEMENT BY COUNCILLORS AND OFFICERS IN DEVELOPMENT
STAGE ASSESSMENT PHASES
should take a cautionary approach to
commenting on conditions of approval as
conditions are subject to review by the
courts against the tests for
reasonableness and relevancy.
Post-Decision Involvement = Cautionary Involvement = Technical Advice
Phase —
Requests for The post-decision phase is particularly Officers prepare assessment of an
Changes to sensitive as the applicant may accept to application to change or modify an
Approvals appeal a decision approval
Council should take caution with dealings
and seek direction from the appropriate
co-ordinating Manager if in doubt.
Appeals Involvement = Nil / Cautionary Involvement = Technical Advice
(to the Tribunal or
the Planning and Once an appeal is lodged it is Officers and council's legal
Environment inappropriate for Councillors to enter into representative(s) manage the conduct of
Court) discussions with applicants, appellants or | the Appeal.
third party submitters aimed at brokering a
settlement or a compromise different from | During the course of the Appeal ‘without
the corporate decision reached by the prejudice’ meetings may be held between
council (or its delegate). the parties in the appeal to try to reach an
agreement, at least, limit the issues in
As a rule Councillors should not attend dispute
‘without prejudice’ meetings, unless
expressly requested by the CEO or Officers should ensure that relevant
Mayor. Officers will ensure that Councillors are briefed on the outcomes
Councillors are briefed on the outcomes of ‘without prejudice’ meetings.
of the meeting
In some instances where policy issues are
The risk of attendance and participation at | involved, the matter should be reported to
‘without prejudice’ Meetings is the the whole of council as discussions
perception of directing council officers progresses in order that officers can
who are present to take some particular obtain a whole of council view on the
position. This would constitute a policy related issues and proposed
‘statutory breach’ of s.170(3) of the Loca/ conduct of the Appeal.
Government Act 1993.
2. Infrastructure Agreements
The Sustainable Planning Act 2009 makes provision for an applicant and a council to enter
into an agreement for the provision of infrastructure over and beyond established standards.
This provision exists specifically for large developments which require special consideration
and may not have been accounted for in standard codes and policies (e.g. developer
charges policies).
While a Councillor may readily identify to the Development Manager some aspect of
infrastructure provision that they believe should apply to a large, impacting development, it is
inappropriate for the Councillor to be negotiating the content of an Infrastructure Agreement
with the applicant because the Infrastructure Agreement becomes part of the development
proposal (“offer”) and should be considered by the council as a part of the whole DA
package.
Involvement in direct negotiations on an Infrastructure Agreement has the capacity to be
viewed as pre-determining an application, or advocacy on behalf of the Applicant.
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POLICY STATEMENT — Development Assessment — Roles and Responsibilities of Councillors and Council Employees
3. General Principles
= The primary duty of a Councillor, and the Council, is to govern in the wider public interest
of the community as a whole, and to pursue matters to the advantage of the council and
the Sunshine Coast Region.
=" Councillors should not confuse their general representative responsibilities (advocating,
lobbying, brokering) with the specific assessment manager role/legal determination
responsibilities under the IPA. Similarly, council officers should not confuse their roles of
providing good customer service with biased or subjective technical advice.
* For Councillors to avoid conduct which indicates a reasonable apprehension of bias they
must ensure that they genuinely consider the relevant material, the development
application and recommendations by council officers prior to reaching a position.
= Due consideration should be given throughout the entire DA Process. Commitment to a
particular view too early in the DA process will mislead the applicant and compromise the
perception of an unbiased outcome by the council.
= If a Councillor is unhappy with the manner in which an officer handles any stage of the
DA process, then the relevant Manager should be contacted. It is inappropriate for a
Councillor to take over the problem and to assume the role of the officers in order to
manufacture a different outcome. It is essential that the separation of functions between
Councillors and the ‘administrative arm’ of council is understood.
=» Where deemed necessary, confidentiality in accordance with the provisions of 171 of the
Local Government Act 2009 should be maintained for any confidential information,
records, briefings and discussions that if release at a particular point in time, could
prejudice the interests of council, the public at large, or another party.
=» Councillors may view council files (at the Council Administration Offices), and are invited
to make all necessary enquiries, but all requests should be through the Director,
Manager, Planning Assessment, or other officer as designated by the Chief Executive
Officer.
RELATED POLICIES AND LEGISLATION
Councillor Code of Conduct
Employee Code of Conduct
SCRC Planning Schemes, Policies and Documentation
Local Government Act 2009
Sustainable Planning Act 2009
Public Sector Ethics Act 1994
Version control:
| Version | Reason/Trigger__| Change (YIN) | Endorsed/Reviewedby | Date
Draft Policy Update nla 24/12/2012
(V5.0)
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3. AMENDMENTS TO THE NOOSA PLAN
Author Project Leader Strategic Planning, Rowena Skinner
Community & Development
Index ECM / Subject / Planning Instruments – Noosa Plan Amendments
Attachments Nil
PURPOSE
The purpose of this report is to recommend that Council start a formal process of amending the
Noosa Plan by resolving to make planning scheme amendments in accordance with the
Sustainable Planning Act 2009 (SPA), and that Council communicate its intentions with people
who have previously provided feedback on the Draft Sunshine Coast Planning Scheme.
EXECUTIVE SUMMARY
The Noosa Plan was first gazetted in February 2006. State legislation requires Council to
undertake a comprehensive review of the planning scheme every 10 years. This would make a
review due no later than 2016. At this stage a comprehensive review of the plan is not
recommended due to changes occurring to state planning legislation and advice received from
senior State Officers.
Amendments to the Noosa Plan are required however to, amongst other things, reflect new State
Planning Policy, respond as appropriate to the 400 submissions received relating to Noosa when
the draft Sunshine Coast Planning Scheme was placed on public display, and address a number
of issues that Council officers have identified as needing review. The process to amend the
scheme may take from 6 up to 12 months.
RECOMMENDATION
That Council note the report by Project Leader, Strategic Planning, Planning & Development to
the Planning & Organisation Committee dated 25 February 2014 and:
A. Resolve to commence the process of making planning scheme amendments;
B. Authorise the Chief Executive Officer to advise the Minister of Council’s proposal to
commence the process of making planning scheme amendments; and
C. Respond to persons who made Noosa-relevant submissions to the draft Sunshine Coast
Planning Scheme in 2012 to advise them of Council’s intention regarding a planning
scheme review.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
BACKGROUND INFORMATION
The Noosa Plan was first gazetted in February 2006 and prepared in compliance with the
Integrated Planning Act 1997 (IPA) – the planning legislation in force at the time. It has since
been amended a number of times. It has remained intact through Council amalgamation and de-
amalgamation exercises.
The Noosa Plan has served Noosa well with sufficient detail and clarity but requires further
improvement to:
a) update the Strategic Framework and the Desired Environmental Outcomes including
reinforcement of an urban footprint or growth management boundary;
b) respond to the results of 2009 and 2012 Sunshine Coast Council community engagement
exercises;
c) update vegetation protection provisions to incorporate the Temporary Local Planning
Instrument for Vegetation Protection (subject of a separate report to Council);
d) respond to Council resolutions of 2008 regarding the Shire Business Centre to facilitating
economic development;
e) reflect the new State Planning Policy;
f) review local area plans in light of place making recommendations
g) revise provisions to help facilitate small scale, rural and nature based tourism;
h) provide better planning direction for new rural developments and industries;
i) ensure engineering and other standards reflect current state requirements and are
complementary to local places and Noosa values; and
j) correct minor ‘glitches’ and editorial anomalies.
The SPA requires local governments to complete a review of their planning scheme within 10
years after the planning scheme was originally made. While planning schemes developed under
the IPA remain valid under the SPA, they must be updated to reflect the new Queensland
Planning Provisions (QPP) when their review is due.
By February 2016 Noosa Council must complete a comprehensive review of the scheme
including an assessment of the achievement of the strategic outcomes stated in the scheme.
After reviewing the planning scheme, Council must resolve whether to:
a) propose to prepare a new scheme; or
b) propose to amend the scheme; or
c) if the local government is satisfied the scheme is suitable to continue without amendment -
decide to take no further action.
There have been various changes to planning legislation over the last few years and more to
come. In late 2013 the state government introduced the single State Planning Policy that sets
out the State’s interests and expectations around planning and development. The South East
Queensland Regional Plan is also under review with a draft likely to be released in April this year.
The state government is also developing a Queensland Development Act intended to replace the
SPA, potentially in mid-2015.
Given the various changes to legislation and plan drafting requirements (with further expected in
the next 2 years) option (c) is unlikely to be accepted by the State however senior State Officers
are also cautioning against starting a new scheme at this point in time.
Therefore it is not recommended that Council attempt to prepare a new planning scheme within
this term of Council due to the resources required, time involved and upcoming state legislative
reforms. Rather it is recommended a review of the scheme be completed in the second half of
2015 with a view to commence preparing a new scheme in 2016. In the meantime, it is proposed
to amend the current scheme to deal with pressing issues until a comprehensive review is
commenced.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
PREVIOUS COUNCIL CONSIDERATION
Nil.
REPORT
1. Process for amending a planning scheme
The figure below is a simplified outline of the process for making a planning scheme amendment
- in this instance it would be referred to as a ‘major amendment’. While timeframes can vary
considerably, based on the suite of amendments proposed, the process may take 6-12 months.
2. Noosa Plan Improvements
A. Updating Strategic Framework/Desired Environmental Outcomes
Part 1 Division 2 of the Noosa Plan includes high level policy statements that express the
strategic framework and community vision for Noosa Shire. As was the norm with IPA-based
planning schemes this division of the scheme does not have a role in development assessment.
Statements could not, for instance, be relied upon to exclude urban development outside of our
towns and villages.
The Desired Environmental Outcomes in Part 3 provide important high level policy direction to
guide decision making around land use, development and the development assessment process.
Since the replacement of the IPA the move has been back to a local planning scheme including a
Strategic Framework (or Strategic Plan) again, which does have a statutory role in development
assessment.
Council could consider preparation of a strategic framework or strategic plan as a first step
towards a new scheme. This would state our position on various things including longer term
urban and rural residential growth.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
B. Responding to Community feedback
Sunshine Coast Council (SCC) has prepared a new planning scheme and the Noosa component
has been removed as a result of de-amalgamation so the balance can proceed. During the
course of consultation on the draft SCC planning scheme over 400 submissions directly relevant
to Noosa were received. This feedback from the community is valuable in understanding
community expectation and desires around future planning and should be reviewed and
responded to, as appropriate, during the Noosa Plan review.
While submissions covered a wide range of issues the most frequently repeated issues were:
1. Complaints about helicopters and the request to have Noosa North Shore landing strip
removed from the Strategic Framework Map.
2. Individual objection to the proposed zone of a property and request to have it changed,
generally to a “higher” zoning (for example rural to rural residential, rural residential to urban
residential, multi-residential to a mixed use or commercial zone etc).
3. Objections to the application of the “Limited Development” zone and its implications for
property owners.
4. Submissions requesting a change to the relevant scheme provisions to allow Viridian
Outrigger resort to be occupied by permanent residents as well as short term visitors.
5. Submissions objecting to the application of overlays over their property and questioning the
accuracy of these overlays. Of particular concern were koala habitat mapping, riparian
mapping and flood mapping (particularly in Kin Kin).
6. Requests for the ability to subdivide rural land or rural residential land.
7. Objection to the Kin Kin Quarry and the extent of the Key Resource designation over the
sites.
8. Concern over the ongoing operation of the extractive operations at Ringtail Creek.
9. Submissions relating to density and built form (particularly height). There was some support
for a move away from density calculations focussed on people per hectare to dwellings per
hectare.
10. Submissions concerning dwelling houses and the detached house code as well as
objections to “party houses” within residential neighbourhoods.
11. Comments regarding broader environmental concerns and issues around sustainability,
including protection of the natural environment, coastal management, climate change etc.
12. Comments requesting business facilitation and increased flexibility around changes of use.
These included comments in support of small businesses as well as large scale retail
commitments.
Submissions were received during the period of October – December 2012. As well as an initial
acknowledgement submitters should have received a letter mid 2013 from Sunshine Coast
Council informing them that because the decision to de-amalgamate, Council was not proceeding
with the Noosa component of the draft scheme.
It would be appropriate, following consideration of this report, to advise submitters of what action
Noosa Council intends to take in terms of a planning scheme review and advise them that their
submissions are retained for consideration through the planning scheme review process.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
C. Staff Identified Issues
There are a number of issues that Council officers have identified as needing review. These
range from editorial fixes and innocuous improvements to more significant amendments that may
raise community interest.
Temporary Local Planning Instrument (Protected Vegetation Overlay)
A Temporary Local Planning Instrument (TLPI) to protect vegetation across the Noosa Shire was
put in place in 2012. It provides a legal mechanism to regulate vegetation clearing and replaced
Council’s previous Vegetation Management Local Law. It is intended that the TLPI continue until
the planning scheme can be amended to include the provisions from the TLPI into the planning
scheme. This includes the code for assessing the clearing of protected vegetation, relevant
definitions and a description of the range of exempt activities.
Shire Business Centre Revisions
A comprehensive review of the Shire Business Centre Master Plan brought forth a number of
recommendations to facilitate economic development within the centre that remain relevant. The
recommendations were adopted by Council in 2008 and are yet to be written into the planning
scheme due to amalgamation.
Farming Practices
Extensive consultation with primary producers over the last 6 years has revealed a number of
areas where planning regulation could be made clearer and simpler to protect existing farming
rights and to make it easier for new farming enterprises to occur. This is particularly relevant to
small scale and free range animal operations, boutique or niche crops and forestry uses, all of
which should be expected in rural areas.
Likewise the scheme could be clearer around more intensive forms of agriculture and animal
husbandry uses qualifying the expectations for such development.
Enterprises in Rural areas
For various reasons there is increasing demand for new uses within rural areas which are not
generally considered to be rural uses eg cabins, farm stays, cooking schools, yoga classes and
art studios. These uses are relatively low impact and might offer a supplementary income to
farming and draw visitors into the hinterland. In general terms the scheme could take a more
enabling approach to these where they are not going to compromise the productivity or amenity
of the rural lands.
Other uses are larger but proponents are specifically drawn to the physical and locational
characteristics of the land such as an eco-tourism lodge, health spa, meditation retreat or a
wedding reception venue with a particularly scenic backdrop. The scheme could be clearer
around these types of uses to clarify where and how they may be appropriate and what
conditions need to be met. Again, the need to protect the productive capacity and amenity of
rural lands remains paramount.
Other non-rural uses which are increasingly drawn to larger lots outside the urban areas include
schools and churches. These are land intensive uses and for that reason are costly to establish
within the urban boundary, however this is not on its own sufficient grounds to support them in
rural areas.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Standard Engineering Drawings
Standard Drawings for Infrastructure greatly influence the look and feel of our urban environment
and the cost of civil design projects. Officers of Noosa Council have been revising engineering
standards in line with updated Australian Standards and State Government standard drawings,
as well as providing for infrastructure that is aesthetically pleasing and pedestrian friendly.
Current best practise in urban design includes outcomes that respond to climate change and
reduce environmental impact, increasing Noosa’s “point of difference”. Engineering design
standards are included in Planning Scheme Policy No 5 and No. 6 that accompany the planning
scheme.
Privately owned land in the Community Services or Open Space Recreation Zone
The planning scheme needs to be clear of the intention of such land should the current use be
discontinued. This is likely to be dependent of the size and location of the site and the particular
needs of its surrounding community.
FINANCE & RISK
This recommended action can be accommodated within the existing budget of staff resources
CONSULTATION
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
The following areas were consulted in preparation of this report:
Planning & Development
Community Services;
Business Facilitation;
Asset Planning & Delivery
Environmental Services
Civil Operations
Departments/Sections Consulted:
x Community Infrastructure x Community & Development
Asset Planning & Delivery Community Services
Civil Operations Planning & Development
Environmental Services Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
Executive Office Organisational Services
Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination Property & Contracts
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
4 CHANGE TO DEVELOPMENT APPROVAL FOR VIRIDIAN RESORT AT 5 MORWONG
DRIVE, NOOSA HEADS
Author Coordinator, Development Assessment, Kerri Coyle
Community & Development
Index ECM / Application / 132006.823.07
Attachments 1. Locality Plan
2. Site Plan
PURPOSE
The purpose of this report is to seek Council’s determination of an application to change the
development approval for the Viridian Resort to remove the permanent restrictions for unit 10105.
The application is before Council as the recommendation is for refusal.
APPLICATION DETAILS
Application Number: 132006.823.07
Applicant: Viridian Noosa Pty Ltd
Request Received Date: 1 December 2013
Original Approval Type:
Development Permit for Material Change of Use of
Premises - Visitor Accommodation - Type 4
Conventional (Resort), Entertainment & Dining - Type 1
Food & Beverages (Conference Room & Restaurant),
Retail Business - Type 2 Shop & Salon (Shop),
Commercial Business - Type 2 Medical (Health Spa)
Number of Submissions for
Original Application:
PROPERTY DETAILS
Division: 11
Property Address: Viridian Noosa 5 Morwong Dr NOOSA HEADS QLD
4567
RP Description: Lot 10105 SP 190823
Land Area: 349.0000 Square Metres
Existing Use of Land: Viridian Noosa Resort
STATUTORY DETAILS
SEQRP Designation: Urban Footprint
Planning Scheme: The Noosa Plan (16 September 2013)
Strategic Plan Designation: Not Applicable
Planning Area / Locality: Noosa Heads Locality – Attached Housing & Open
Planning Precinct / Zone: Space Conservation Zone
Assessment Type: Change to Approval
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
EXECUTIVE SUMMARY
This application seeks to change condition 23 of the current development approval for the
Viridian Resort at Noosa Heads to remove the permanent residency restrictions for unit 10105.
In support of their application, the applicant submits that the change is consistent with the
condition applied to the Noosa Springs approved resort.
The proposed change is not consistent with the current development approval for the site with
the approved use specifically defined by the Noosa Plan as being for short term visitor
accommodation, unlike the Noosa Springs development which was approved under the
superseded planning scheme as a multiple dwelling.
The proposed change is also inconsistent with The Noosa Plan which identifies this site as one of
several key sites in Noosa to be protected for resort development, given the importance of
tourism to Noosa’s economy. While the proposed change may not result in any significant
impacts, approving the change is likely to result in other resort unit owners seeking similar
concessions and there are no grounds in the community’s interest to approve the application.
RECOMMENDATION
That Council note the report by Coordinator, Development Assessment to the Planning and
Organisation Committee on 25 February 2014 and refuse the request to change Development
Approval No. 132006.823.07, situated at Viridian Noosa 5 Morwong Drive, Noosa Heads for the
following reasons:
A. The proposed change is contrary to the Overall Outcomes of the Noosa Heads Locality
Code, which seek that substantial key sites are protected for resort development, with the
subject site identified as a key site;
B. The proposed change is not consistent with the approved use of the site as Visitor
Accommodation Type 4 Conventional, which is for the purpose of providing short-term
visitor accommodation;
C. The proposed change is contrary to The Noosa Plan and there are insufficient grounds to
justify the conflict with planning scheme; and
D. The application has not been properly made, as the consent of the body corporate for the
Viridian Resort has not been provided for the change and the change affects other unit
owners.
BACKGROUND INFORMATION
The site and surrounding land originally formed part of a greater site on Noosa Hill in which
development proposed over the site was subject to a Consent Order issued by the Planning and
Environment Court on 29th June 2001. The approved development for the site and surrounding
area was subsequently referred to as the Court Approved Scheme (CAS).
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
The CAS provided for a range of development on Noosa Hill including the Viridian development;
as detailed below:-
Bayview Road Houses – Group Housing Development of 6 Dwelling Units (completed);
Angler Street Houses – 2 Dwelling Houses (completed);
Morwong Drive Dwelling Units – 23 Multiple Dwelling Units comprising 13 x 3 bedroom
and 10 x 2 bedroom (completed);
Resort comprising accommodation in the form of 130 dwelling units, 17 villas and a
managers residence, central facilities including reception and administration centre,
function room, conference centre, restaurant, storage, pool, tennis court, health spa, bars
and ancillary facilities and both private and public open space.
Stages 1 and 2 of the development (comprising Bayview Road and Angler Street houses,
Morwong Villas) are already complete, and have been developed in accordance with the
approved plans attached to the Consent Order.
Stage 3 of the CAS included a resort development, however, the applicant saw it necessary to
make significant changes to the Court approved scheme, which resulted in a new application
being lodged with Council.
On 15 February 2007, Council approved the new application for a Material Change of Use for
Visitor Accommodation – Type 4 Conventional (Resort), Entertainment and Dining – Type 1 Food
and Beverages (Conference Room and Restaurant), Retail Business – Type 2 Shop and Salon
(Shop), Commercial Business – Type 2 Medical (Health Spa) over the subject site.
On 19 April 2007, Council approved representations to conditions of the development approval
and on 27 February 2008, Council approved changes to a number of conditions as part of a
request to change the existing development approval.
On 21 January 2009, Council approved changes to a number of conditions and the inclusion of
an additional condition and two additional advice conditions as part of a request to change the
existing development approval.
On 18 November 2009 Council refused a change to the approval to allow occupation of 54 units
on a permanent basis. Notably subsequent to this application the applicant lodged MCU10/2127
seeking approval for 38 of the units to be occupied permanently. This application was similarly
refused and was subject to an appeal, which was dismissed by the Planning & Environment
Court and council’s decision upheld.
PREVIOUS COUNCIL CONSIDERATION
As detailed in the previous section.
REPORT
1. Proposal
This application seeks to change condition 23 of the development approval, which restricts
permanent occupation of all units in the resort development. The applicant submits that the
change is only intended to relate to villa 10105 and that the application does not seek permanent
residency rights for the subject villa. Villa 10105 has a floor area of 298m 2 and is located in
Building Block J along with 6 other villas of similar standard. The applicant requests that Council
consider the change on the basis of the following:-
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Council has established a precedent in regard to similar conditions imposed for the Noosa
Springs Resort.
The amended Condition results in a positive outcome by requiring promotion of the
availability of short-term letting
The amended Condition maintains the financial objectives of the resort operator.
The amended Condition does not detract from the tourism economy of Noosa
The adoption of the amended Condition represents fair and reasonable obligations on the
use of the resort
The resort has been established and is achieving economic benefits for the Noosa
economy.
Approval of the Change of Condition 23 does not impact on the Court’s decision in
relation to MCU10/2127.
Current condition
23. The Resort (comprising the Restaurant and Conference Room Facility Building V, Health
Spa, Resort Accommodation Buildings (dwelling units & accommodation units), Reception
Area and Shop) shall be operated and maintained as a Resort. The resort shall operate in
accordance with the defined use of ‘Visitor Accommodation - Type 4 Conventional’ in the
Noosa Plan which provides for predominately short term visitor accommodation .Villas in
Buildings A, B, C, E, F and Penthouse Units: 9417, 8601, 8602, 7501, 7502, 7503, 7504,
4201, 4202, 4301, 4302, 4401, 4402, 4501, 4502 and the Managers Unit number 8201 as
shown on Plan of Survey SP190823 may be occupied on a short and long term basis. All
other dwelling units in the Resort may be occupied only for short term visitor
accommodation. The community management statement for any or all bodies corporate
having control of the Resort or any part thereof shall incorporate this condition.
Applicant’s Proposed Change
23. The Resort (comprising the Restaurant and Conference Room Facility Building, Health
Spa, Resort Accommodation Buildings (dwelling units & accommodation units), Reception
Area and Shop shall be operated and maintained as a Resort. The Managers
Accommodation may be occupied on a permanent basis. The community management
statement for the body corporate having control of the Resort shall incorporate a
condition:
- Requiring the accommodation and facilities to be operated and maintained as a resort.
- Restricting the use of units and villas in Blocks A,B,C,D,E,F,G,H,I and villas 10101,
10102, 10103, 10104, 10106 & 10107 in Block J for permanent residential
accommodation.
- Requiring a letting pool service promoting and managing short term accommodation to
be established on site and made available to all owners.
2. Statutory Process
The applicant has requested to make a change to a development approval under s369 of the
Sustainable Planning Act 2009. A request to change a development approval under s369 can
only be made in circumstances where that change would constitute a ‘permissible change’.
The proposed change to the development approval requested by the applicant is determined to
constitute a permissible change on grounds that:
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
The change would not result in a substantially different development because the proposed
change is intended to relate to one unit.
The change would not require the application to be referred to additional concurrence
agencies;
The original application was impact assessable and the proposed changes would not likely
cause a person to make a properly made submission because the proposed change is
intended to relate to one unit. Notwithstanding this, concern is raised that owners consent
has only been provided in relation to lot 10105 with the body corporate not consenting to
the application and yet the proposed changes to condition 23 seek to control the Resort
use through the body corporate’s community management statement.
The change would not cause the approval to involve prohibited development.
3. Assessment
The proposed change is difficult to reconcile given the application material states that permanent
residency rights for the subject villa is not sought, whereas the proposed change to the condition
specifically excludes the subject villa from the proposed permanent residency restrictions clause.
Notwithstanding the application material, the intent of the proposed change appears seek to
allow permanent occupation of the unit.
The Viridian Resort has a current approval for Visitor Accommodation Type 4 Conventional,
which is defined as:
Two or more dwelling units or accommodation units, for the purpose of providing short term
visitor accommodation. The use may include common recreation or dining facilities and
includes an ancillary dwelling unit for onsite manager. The use includes a guesthouse,
visitor hostel, motel, resort and serviced rooms, but does not include Visitor accommodation
Type 1 home hosted or Type 3 Rural as separately defined.
The proposed change is not consistent with the current development approval for the site being
for short term visitor accommodation. The proposed change is also contrary to the Noosa Plan,
which identifies this site as one of several key sites in Noosa to be protected for resort
development. The retention of a range of visitor accommodation choices is important to the
economy of Noosa, given the economy has a large tourism component. The loss of visitor
accommodation to permanent residential housing reduces visitor choice and therefore has the
potential to have a negative effect on the economy for Noosa. Mixing long term accommodation
for residents with short-term accommodation for visitors also has the potential to cause conflicts
between users of the resort and permanent residents.
While the proposed change is intended only to one unit and may not result in any significant
impacts, approving the change is likely to result in other resort unit owners seeking similar
concessions reducing the available accommodation for visitors to Noosa. There are also no
grounds in the community’s interest to justify approving the application in conflict with The Noosa
Plan.
While the Noosa Springs Resort approval does include a condition similar to the applicant’s
requested change, Noosa Springs was given approval under the Superseded Planning Scheme
for a multiple dwelling. The Superseded Planning Scheme also lacked a use definition specific to
short term visitor accommodation.
FINANCE & RISK
Nil
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Section 43
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
CONSULTATION
External Consultation - Community & Stakeholder
Nil
Internal Consultation
Departments/Sections Consulted:
Community Infrastructure x Community & Development
Asset Planning & Delivery Community Services
Civil Operations Planning & Development
Environmental Services Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
Executive Office Organisational Services
Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination Property & Contracts
Page 43 of 92
Section 44
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Page 44 of 92
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
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Page 44 of 92Section 45
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Page 45 of 92
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Page 45 of 92Section 46
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
ORGANISATIONAL SERVICES DEPARTMENT REPORTS
Financial Services
5. FINANCIAL PERFORMANCE - JANUARY 2014
Author Coordinator Financial Services, Wayne Jensen
Organisational Services
Index ECM / Subject: Financial Management / Accounting - Monthly Exception
Report
Attachments 1. Statement of Comprehensive Income
2. Capital Works Schedule
PURPOSE
The purpose of this report is to inform Council of the financial performance for January 2014.
EXECUTIVE SUMMARY
The financial position as at 31 January 2014 is generally in accordance with original forecasts.
The cash position of Council improved over the period from $32 million (preliminary transfer of
cash from Sunshine Coast Council) up to $39.1 million.
The operating result for the period was a surplus of $26,384,041 against an original forecast of
$25,168,964, with the variance generally associated with the transition of utility and leasing
charges from Sunshine Coast Council and employment costs.
RECOMMENDATION
That Council note the Financial Performance report for January 2014 from the Coordinator
Financial Services to the Planning & Organisation Committee dated 25 February 2014.
BACKGROUND INFORMATION
Following the separation from Sunshine Coast Council, January 2014 represents the first month
of operations for Noosa Council. It is noted that this cannot be considered to be a “normal”
month, as staff were returning from leave and business areas were restructured as part of the
transition.
It is noted that at the time of writing this report, the final opening balance position for assets and
liabilities transferred from Sunshine Coast Council had not been determined or agreed. As such,
no balance sheet can be provided at this time.
Further, the statement of comprehensive income (operating statement) presented is compared
with the originally adopted budget, and it is too early in the life of Council with the currently
changing business delivery model, to undertake a detailed comparison of costs against previous
levels of operation.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
PREVIOUS COUNCIL CONSIDERATION
Nil.
REPORT
Operating Performance for the month of January has been skewed by the payment of
redundancies to staff transferred from Sunshine Coast Council who were not successful in
obtaining positions within the Noosa Council structure.
Overall financial performance is generally in accordance with original forecasts, with key areas
and exceptions identified below.
1. Operating Revenue
Rates were levied as planned in the first week in January and issued with a due date of 14
February 2014. Overall rates revenue is roughly on par with original forecasts, and there is
the potential for supplementary notices to be issued later in the year.
The final result for discounts will not be known until after all payments have been processed
up until the due date.
Fees and charges revenue is generally in line with forecasts, and will continue to be
monitored over coming months.
Interest received is generally in accordance with estimates, although the delay in finalising
the opening cash position has impacted on returns shown within Noosa Council books.
However, this will be adjusted on the overall position as part of the final true-up with Sunshine
Coast.
2. Operating Expenses
The figures shown for Employee Benefits are generally in accordance with estimates, with
redundancy payments offset against the gain on de-amalgamation.
Materials and Services costs for January are impacted by some delays in the transition of fuel
and electricity accounts, and also through the timing of payments for lease arrangements,
etc. The transition to the Noosa Council business model is expected to create real savings
within this budget line item over coming months.
Finance costs include accrued interest on external loans with Queensland Treasury
Corporation, plus merchant and banking fees for agency payment facilities. These elements
are all in line with original forecasts.
3. Capital Works Expenditure
Expenditure on capital works during the month of January was generally in accordance with
original forecasts. Detailed scheduling of works has been undertaken to give more surety
around cash flow requirements and resourcing.
4. Investment Performance
Council funds are held in operating accounts with the Commonwealth Bank of Australia
(CBA); with an additional cash management account at the CBA; and a Capital Guaranteed
Cash Fund account at Queensland Treasury Corporation. The weighted average return for
January was 3.08%, which compares favourably with the UBS Bank Bill Index (the accepted
industry benchmark) of 2.67%.
There were no breaches of Council’s investment policy during the month, and 100% of the
funds are held with A1+ ranked agencies.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
FINANCE & RISK
Resolutions of Council approving changes to the originally adopted budget have not yet been
incorporated into the financial system, and as such the forecast position has not been amended
to identify potential savings, additional costs or shortfalls in funding. A full review of the budget
will be undertaken as at the end of March to provide a modified base for the next year forecast.
CONSULTATION
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
Comments have been sought from the respective business areas where variances have been
identified.
Departments/Sections Consulted:
x Community Infrastructure x Community & Development
Asset Planning & Delivery Community Services
Civil Operations Planning & Development
Environmental Services Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
x Executive Office x Organisational Services
Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination Property & Contracts
Page 48 of 92
Section 49
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
ATTACHMENT 1
Page 49 of 92
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
ATTACHMENT 1
Noosa Council
Statement of Comprehensive Income
For the Year Ended 30 June 2014
As at 31 January 2014
Budget Budget Actual Percentage
Full Year YTD YTD Annual Budget
Income SS SSS—E———————EE
Revenue
Recurrent Revenue
Rates, levies and charges 30,268,368 30,264,636 29,586,526 97.75%
Fees and charges 4,331,467 901,799 840,034 19.39%
Rental income 467,534 110,395 146,795 31.40%
Interest received 2,539,769 96,002 95,291 3.75%
Other income 2,367,393 195,168 199,208 8.41%
Grants, subsidies, contributions and donations 2,405,752 446,688 446,688 18.57%
42,380,283 32,014,686 31,314,543 73.89%
Expenses
Recurrent Expenses
Employee benefits 12,967,643 2,020,226 1,553,142 11.98%
Materials and services 18,537,350 3,049,543 1,639,195 8.84%
Finance costs 1,370,052 214,310 213,902 15.61%
Depreciation and amortisation 9,145,579 1,524,263 1,524,263 16.67%
Other expenses 352,773 37,379 - 0.00%
42,373,397 6,845,722 4,930,502 11.64%
Operating Result 6,886 25,168,964 26,384,041 383151.48%
Capital Income
Capital Contributions 1,050,858 175,143 238,900 22.73%
Grants, subsidies, contributions and donations 410,000 - - 0.00%
Net Result 1,467,744 25,344,107 26,622,941 1813.87%
Other Comprehensive Income
Gain on de-amalgamation 947,598,462 32,000,000 25,473,478 2.69%
Total Other Comprehensive Income 947,598,462 32,000,000 25,473,478 2.69%
Total Comprehensive Income 949 066,206 57,344,107 52,096,418 5.49%
Page 49 of 92Section 50
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
ATTACHMENT 2
Page 50 of 92
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
ATTACHMENT 2
Noosa Council
Capital Works Schedule
As at: 31-Jan-2014
Original Current YearToDate % of Annual
Project Budget Budget Actual Budget Spent
Bridges
Forward design for bridge rehab program 10,000 10,000 0 0.00%
Noosa Parade Munna Point Bridge - Investigations and interim 250,000 250,000 74 0.03%
Total Bridges 260,000 260,000 74 0.03%
Coastal Canals and Waterways
David Low Way, Beach Access 49 refurbishment 45,000 45,000 467 1.04%
Gympie Terrace and William Street Revetment wall and pathway 50,000 50,000 1,630 3.26%
Munna Point Holiday Park Bank Protection - Design 50,000 50,000 1,227 2.45%
Noosa Dog Beach SEMP Coastal monitoring 20,000 20,000 0 0.00%
Noosa River Mouth Groyne amd Rock Wall - Rehab 100,000 100,000 0 0.00%
Noosa Waters revetment walls - Stage 2a 1,300,000 1,300,000 89,064 6.85%
Total Coastal Canals and Waterways 1,565,000 1,565,000 92,387 5.90%
Community Facilities
Peregian Surf Club Public Amenities - Planning & Design 15,000 15,000 0 0.00%
Total Community Facilities 15,000 15,000 0 0.00%
Holiday Parks
Noosa Nth Shore Holiday Park - Upgrade Septic treatment 90,000 90,000 0 0.00%
Total Holiday Parks 90,000 90,000 0 0.00%
Information Technology
IT Major Projects 1,600,000 1,600,000 957,294 59.83%
Total Information Technology 1,600,000 1,600,000 957,294 59.83%
Parks & Playgrounds
Cooroy Skate Park Minor Renewal 34,000 34,000 0 0.00%
Gympie Terrace Park Furniture Renewal program 50,000 50,000 1,148 2.30%
Joe Bazzo Park (Pomona Community House Park) BBQ Relocation 12,000 12,000 0 0.00%
Noosa Lions Pk - Rehab Shower Facilities 30,000 30,000 0 0.00%
Peregian Beach Park Plan - Finalise upgrade and removal of Surplus equip 30,000 30,000 200 0.67%
Total Parks & Playgrounds 156,000 156,000 1,348 0.86%
Pathways & Enabling Facilities
Cooran State School - Charles Street Pathway improvements 30,000 30,000 0 0.00%
Pomona State School Station Street Pathway improvements 100,000 100,000 0 0.00%
Weyba Creek Boarwalk Rehab Stage 1 20,000 20,000 0 0.00%
Gibson Road (Eumindi Noosa Rd to Thomas St) - On road cycleway 440,000 440,000 0 0.00%
Sunshine Beach State School Safety Improvements2 90,000 90,000 1,369 1.52%
Total Pathways & Enabling Facilities 680,000 680,000 1,369 0.20%
Public Transport Infrastructure
Noosa Junction Mini Bus Shelter - Panels for weather protect 25,000 25,000 0 0.00%
Noosa Parade Transit Hub-Stage 1 300,000 300,000 0 0.00%
Total Public Transport Infrastructure 325,000 325,000 0 0.00%
Sealed Roads Network
Page 50 of 92Section 51
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Noosa Council
Capital Works Schedule
As at: 31-Jan-2014
Original Current YearToDate % of Annual
Project Budget Budget Actual Budget Spent
Annual Sealed Road Renewal & Rehabilitation Program 500,000 500,000 0 0.00%
Sealed Road Pavement surveys and Investigations 60,000 60,000 0 0.00%
Total Sealed Roads Network 560,000 560,000 0 0.00%
Sports Ground and Facilities
Noosa District Sports Complex - Stage One - redevelop crick 30,000 30,000 371 1.24%
Total Sports Ground and Facilities 30,000 30,000 371 1.24%
Stormwater Drainage
Daintree Estate - Flood Mitagation Planning and Design 50,000 50,000 0 0.00%
Gympie Terrace Pipe Rehabilitation - Investigation & Design 25,000 25,000 0 0.00%
Rifle Street Pomona - Flood Mitigation Planning and Design 50,000 50,000 0 0.00%
Seaview Ck - open drain civil works 25,000 25,000 1,148 4.59%
Stormwater replacement program (non pipe work) 75,000 75,000 356 0.47%
Total Stormwater Drainage 225,000 225,000 1,504 0.67%
Streetscapes and Road Corridors
Forward Planning for Streetscape and Road Corridor improvement 50,000 50,000 1,414 2.83%
Total Streetscapes and Road Corridors 50,000 50,000 1,414 2.83%
Transport and Infrastructure Management
Eenie Creek Road / Langura Street Intersection safety upgrade 8,000 8,000 0 0.00%
Eenie Creek Road / Walter Hay Drive Intersection safety upgrade 15,000 15,000 0 0.00%
Weyba Road Reef Street Intersection Improvements - PIP 125,000 125,000 574 0.46%
Total Transport and Infrastructure Management 148,000 148,000 574 0.39%
Grand Total 5,704,000 5,704,000 1,056,334 18.52%
Page 51 of 92Section 52
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
6. 2013/14 NATIONAL COMPETITION POLICY REFORM APPLICATION
Author Interim Director, Michael Shave
Organisational Services
Index ECM/ Subject/ Financial Management / Accounting
Attachments 1. NCP Reform Options
PURPOSE
To update Council as to the previous application of National Competition Policy (NCP) reforms to
affected Council business activities for the 2013/2014 financial year by Sunshine Coast Regional
Council (SCRC), and recommend the continued application to identified Noosa Council business
activities for 2013/14.
EXECUTIVE SUMMARY
The Local Government Act 2009 requires Council to decide each financial year whether to apply
competition reform to its identified Council business activities. Certain activities of Council are
required to be identified as business activities if they trade in goods and services that could
potentially be delivered by a private sector firm for the purposes of earning profits in the absence
of Council’s involvement.
Expenditure thresholds are published each financial year by the Queensland Government and
Councils are required to determine if an activity is a significant business activity based on the
definition under the Local Government Regulation 2012, or a prescribed or smaller business
activity when implementing the Competitive Code of Conduct.
Two activities have been identified that meet the criteria and relevant threshold level for
identification as business activities. The activities identified and reform levels to apply based on
the estimated budgeted expenditure in 2013/14 are:
Business Activity Reform Level
Waste Management Significant
Caravan Parks Code of Competitive Conduct
RECOMMENDATION
That Council note the report by the Interim Director, Organisational Services to the Planning &
Organisation Committee dated 25 February 2014 and:
A. Apply the Full Cost Pricing reform option to the Waste Management business activity for
the remainder of the 2013/14 financial year in accordance with section 44(1)(b) of the Local
Government Act 2009; and
B. Apply the Code of Competitive Conduct to the Caravan Parks business activity for the
remainder of the 2013/14 financial year in accordance with section 47 of the Local
Government Act 2009.
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Section 53
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
BACKGROUND INFORMATION
The Local Government Act 2009 requires Council to decide each financial year whether to apply
competition reform to its identified business activities.
Certain activities of Council are required to be identified as business activities if they trade in
goods and services that could potentially be delivered by a private sector firm for the purposes of
earning profits in the absence of Council’s involvement. They do not include the non-business,
non-profit activities of Council such as libraries, swimming pools, parks maintenance etc.
The primary purpose for Councils to apply NCP reforms to its business activities is to assist in
removing anti-competitive conduct, encourage greater transparency in the operation of its
competitive activities and improve the allocation of Council’s limited resources.
A number of different reform options are provided under legislation for application to identified
business activities. Attachment 1 outlines the different reform options, however
Commercialisation or Full Cost pricing reforms are generally applied to larger or financially
significant business activities, whereas the Code of Competitive Conduct is applied to the smaller
or prescribed business activities.
The general premise to consider is that the larger the Council business activity the larger the
potential financial impact on the local economy and potential competitors, and hence greater
level of reform applied to ensure ongoing competitive neutrality.
SCRC resolved to apply competition reforms to the following activities for the 2013/14 financial
year:
Business Activity Reform Level
Waste Management Significant
Airport Code of Competitive Conduct
Caravan Parks Code of Competitive Conduct
Quarries Code of Competitive Conduct
Amendment to the Local Government Regulation 2012 was enacted to delay the requirement for
the de-amalgamating Councils to assess whether competition reform is required to be applied to
activities until the 2015/16 financial year. It is however felt that it is appropriate to review the
applicability to Noosa Council’s activities now to ensure clarity in the application of competition
reform moving forward.
PREVIOUS COUNCIL CONSIDERATION
Nil.
REPORT
1. Business Activity Classification
Expenditure thresholds are published each financial year by the Department of Local
Government, Community Recovery and Resilience, and Councils are required to determine if any
of their activities deemed competitive in nature are classified as either a significant business
activity based on the definition under the Local Government Regulation 2012, or a prescribed or
smaller business activity when implementing the Competitive Code of Conduct. The published
expenditure thresholds applicable for the 2013/14 financial year are as follows:
Page 53 of 92
Section 54
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
$8.8 million for significant business activities; and
$300,000 for Code of Competitive Conduct business activities.
2. Application to Noosa Identified Activities for 2013/14
Two of Council’s activities have been identified as competitive in nature that meet the criteria and
relevant threshold levels for identification as business activities. The activities that have been
identified and reform levels to apply (based on the estimated annualised budgeted expenditure)
are:
Business Activity Expenditure Reform Level
Waste Management $10.2 million Significant
Caravan Parks $1.2 million Code of Competitive Conduct
3. Public Benefit Assessments
Section 46 of the Local Government Act 2009 requires that a public benefit assessment (PBA) be
undertaken for a new significant business activity. A PBA is an assessment of whether the
benefit to the public (in terms of service quality and cost) of applying competitive neutrality in
relation to a significant business activity outweighs the costs.
A number of PBAs were undertaken when NCP reforms were first introduced prior to 2000, with a
further round of PBAs undertaken following the amalgamations in 2008 as a result of the creation
of consolidated financially significant business activities for regional Councils. There has been a
trend with recent PBAs to apply the minimum level of reform (i.e. Full Cost Pricing) as the
benefits of applying Commercialisation have generally not been realised.
As Council’s waste management activity meets the threshold for recognition as a significant
business activity, a PBA would be required to be undertaken in the 2014/15 financial year.
Discussions will be held with the Department of Local Government, Community Recovery and
Resilience to determine if a new PBA is indeed warranted.
FINANCE & RISK
Financing implications primarily revolve around administrative effort in ensuring ongoing
competitive neutrality compliance (budget preparation, reporting, full cost pricing modelling). With
respect to waste management a full cost pricing modelling exercise will be undertaken in
preparation for the 2014/15 budget deliberations.
CONSULTATION
External Consultation - Community & Stakeholder
Nil
Internal Consultation
Interim Director Community Infrastructure
Departments/Sections Consulted:
X Community Infrastructure Community & Development
Asset Planning & Delivery Community Services
Civil Operations Planning & Development
Environmental Services Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
Executive Office X Organisational Services
Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination Property & Contracts
Page 54 of 92
Section 55
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Page 55 of 92
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
ATTACHMENT 1
NCP Reform Options
1. Significant Business Activities
Competition reforms may be applied to significant business activities via Full Cost Pricing or
Commercialisation.
Full Cost Pricing
e Reform option is determined via a public benefit assessment process.
e Retention of the business activity within Council's current organisational structure.
¢ Setting prices in accordance with commercial full cost recovery principles, including recovery
of:
- Efficient operating expenses;
- Areturn of capital (i.e. depreciation expense); and
- Areturn on capital (i.e. cost of debt plus return on equity invested in the business).
e Full cost pricing reform implies the application of competitive neutrality principles.
Commercialised Business Unit
e Reform option is determined via a public benefit assessment process.
e Creation of a commercialised business unit (not a separate legal entity) to manage the
business.
e Setting prices in accordance with commercial full cost recovery principles, including recovery
of:
- Efficient operating expenses;
- Areturn of capital (ie. depreciation expense); and
- A returm on capital (i.e. cost of debt plus return on equity invested in the business).
e Implied that an increase in managerial autonomy for day-to-day operations is provided.
e Implied that there is a greater ability to source inputs from outside of Council.
e Own business and operating plan.
e Implied that there is more of a commercial orientation than full cost pricing.
e Additional reporting obligations such as annual tax equivalent retums, annual performance
plan and separate reporting of performance in Council's annual report.
¢ Commercialisation requires the application of competitive neutrality principles.
2. Prescribed or Voluntarily Recognised Business Activities
Code of Competitive Conduct
e Reform option applied via annual Council resolution.
e Retention of the business activity within Council's current organisational structure.
e Setting prices in accordance with commercial full cost recovery principles, including recovery
of:
- Efficient operating expenses;
- Areturn of capital (ie. depreciation expense); and
- Areturn on capital (i.e. cost of debt plus retum on equity invested in the business).
« Code of competitive conduct implies the application of competitive neutrality principles.
e Automatic application of the code of competitive conduct to prescribed activities under
legislation (i.e. building certification and competitive roads activities).
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
3. No Reforms Elected to Be Applied
Cost Reflective Pricing Principles
e Retention of the activity within Council's current organisational structure.
e Setting prices to reflect the cost of providing non-competitive services including recovery of:
- Efficient operating expenses; and
- Afeturn of capital (i.e. depreciation expense).
e Excludes the application of competitive neutrality principles to non - competitive services.
e Note: application of the code of competitive conduct should be applied if the activity engages
in competitive services and is above the threshold.
Page 56 of 92Section 57
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Property & Contracts
7. UPDATE ON COUNCIL LEASED VEHICLE REVIEW
Author Co-ordinator Procurement and Fleet, Phill Parkman
Organisational Services
Index ECM / Fleet Plant and Equipment Management / Acquisition and Disposal
Attachments Nil
PURPOSE
To provide an update regarding progress made to date with the review of the number of vehicle
leases transferred to Noosa Council, as part of the de-amalgamation process.
EXECUTIVE SUMMARY
As part of the de-amalgamation process 109 Sunshine Coast Regional Council (SCRC) leased
vehicles were transferred to Noosa Council according to an agreed methodology for the
allocation of plant and equipment agreed by the Transfer Committee. Prior to amalgamation
Noosa Council had a fleet of approximately 95 light vehicles (that excludes vehicles utilised by
water and sewerage and building certification operations in 2008 no longer provided).
Interim directors were requested to review the leased vehicles under their respective jurisdiction
to determine whether ongoing use of each vehicle was required to deliver services for the new
Council, and for those vehicles to be retained whether current commuter use arrangements in
place were appropriate.
The table below outlines the status of the review process and the number of vehicles identified
for lease termination, in addition to the annual cost savings that will be made. Currently a 28%
saving has been made in the leased vehicle fleet, as the interim directors and staff have been
closely looking at their operations and need for the vehicle numbers that have transferred.
Vehicle Type Original Number Return Retained % Saving Annual $ Saving
Sedan 1 0 1 0% $-
Wagons 36 13 23 36% $203,255
Hatch 4 1 3 25% $14,060
Utes 4x2 23 9 14 39% $107,753
Utes 4x4 38 7 31 18% 97,994
Vans 6 0 6 0% $-
Truck 1 0 1 0% $-
Total 109 30 79 28% $412,009
Once the organisation structure is finalised and service levels are confirmed a further review of
fleet vehicles will be undertaken, particularly in relation to the type of vehicles required to deliver
services to ensure costs are minimised. It is also expected that the provision of vehicles as part
of employment packages will also be reviewed and rationalised where possible.
Page 57 of 92
Section 58
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
RECOMMENDATION
That Council note the report from the Co-ordinator Procurement and Fleet to the Planning &
Organisation Committee dated 25 February 2014 regarding progress to date with the review of
leased vehicles transferred as part of the de-amalgamation process.
BACKGROUND INFORMATION
As part of the de-amalgamation process a number of Sunshine Coast Regional Council (SCRC)
leased vehicles were required to be transferred to Noosa Council according to a methodology for
the allocation of plant and equipment agreed by the Transfer Committee.
The methodology effectively stated that vehicles would transfer with the respective employee
identified to transition back to Noosa Council. A significant number of vehicles surplus to
Council’s needs were transferred, and given the significant annual costs of operating these
vehicles a review commenced immediately after 1 January 2014 to rationalise the number of
vehicles required to deliver operational services going forward.
PREVIOUS COUNCIL CONSIDERATION
Nil.
REPORT
1. Vehicles Numbers Pre Amalgamation
Prior to amalgamation Noosa Council had a fleet of approximately 115 light vehicles. Of this fleet
approximately 20 vehicles were utilised by water and sewerage (17) and building certification (3)
operations. Assuming these services were not provided by Council as is currently the case, the
vehicle fleet prior to amalgamation was approximately 95 vehicles.
2. Vehicles Transferred
SCRC originally identified 124 leased vehicles to transfer to Noosa Council. Following review and
negotiation the final number of leased vehicles to transfer was reduced to 109. It should be noted
that former SCRC Councillors Green and Wellington elected to purchase their vehicles that were
on the transfer list, rather than allow Noosa to take on the ongoing liabilities for these vehicles.
The table below provides a breakdown of the leased vehicles that transferred by type, and also
includes the estimated annual cost to operate the vehicles (includes fuel, lease cost, insurance,
FBT costs).
Vehicle Type Number Annual Annual
Cost* Cost /
Vehicle
Sedan 1 $13,659 $13,659
Wagons 36 $566,911 $15,748
Hatch 4 $51,067 $12,767
Utes 4x2 23 $271,330 $11,797
Utes 4x4 38 $521,098 $13,713
Vans 6 $77,129 $12,855
Truck 1 $37,304 $37,304
Total 109 $1,538,498 $14,115
* Includes FBT
Page 58 of 92
Section 59
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
The main reason for the increase in vehicles from 2008 levels can be attributed to the fact that
approximately 17 vehicles related to employees who were identified for transfer SCRC who were
unplaced in the interim Noosa Council structure.
3. Rationalisation Process to Date
Interim Directors were requested to review the leased vehicles under their respective jurisdiction
to determine whether ongoing use of the vehicle was required to deliver services for the new
Council, and for those vehicles to be retained whether current commuter use arrangements in
place were appropriate. Commuter use is generally provided when insufficient Council facilities
exist to store vehicles overnight in a safe manner.
A number of vehicles (sedans, wagons) transferred with commuter use were incurring a Fringe
Benefits Tax (FBT) cost of approximately $4,700 per vehicle per annum. The first priority of the
review was to eliminate commuter use of sedans and wagons to eliminate this cost from day one
where possible. A full review of FBT costs on all vehicles (including vehicles as part of employee
contracts) will be undertaken over the next 6 months to further reduce unnecessary FBT costs.
The table below outlines the status of the review process and the number of vehicles identified
for lease termination, in addition to the annual cost savings that will be made. Currently a 28%
saving has been made in the leased vehicle fleet, as the interim directors and staff have been
closely looking at their operations and need for the vehicle numbers that have transferred.
Vehicle Type Original Return Retained % Saving Annual $
Number Saving
Sedan 1 0 1 0% $-
Wagons 36 13 23 36% $203,255
Hatch 4 1 3 25% $14,060
Utes 4x2 23 9 14 39% $107,753
Utes 4x4 38 7 31 18% 97,994
Vans 6 0 6 0% $-
Truck 1 0 1 0% $-
Total 109 30 79 28% $412,009
As of 14 February 2014, 25 of the 30 vehicles have been returned to the lease companies. A
significant volume of work has been undertaken within the organisation to transfer remaining
vehicles across departments and sections to minimise lease payout costs, whilst at the same
time continuing to meet the specific operational needs for each section to deliver services to the
community. The level of co-operation across the Council departments to allow vehicle transfers
to occur efficiently should be acknowledged.
Pool vehicle arrangements are currently being established. There are currently approximately 20
of the 80 remaining vehicles (25%) under private use arrangements as part of employment
contracts. These vehicles will need to be utilised as part of the Council pool fleet across the
various sites that will avoid the need for a separate pool vehicle fleet.
4. Rationalisation Process Going Forward
Once the organisation structure is finalised and service levels are confirmed a further review of
fleet vehicles will be undertaken, particularly in relation to the type of vehicles required to deliver
services to ensure costs are minimised. It is also expected that the provision of vehicles as part
of employment packages will also be reviewed and rationalised where possible.
Page 59 of 92
Section 60
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Already a number of staff with vehicle private use arrangements have indicated that they are
interested in returning their vehicles. These options are currently being investigated.
The Mayor and Chief Executive Officer have opted to not take up options for the use of a Council
motor vehicle, in order to contribute towards Council’s ongoing financial sustainability.
5. Other Issues
GPS tracking technology is being progressively implemented to allow monitoring of vehicle
usage, which will assist with ensuring the efficient use of the vehicle fleet to minimise cost. In
particular commuter use will be closely monitored to ensure that usage remains within Council
motor vehicle usage guidelines.
FINANCE & RISK
The savings identified to date will be realised in the 2014/15 budget. Any ongoing savings will be
progressively recognised within Council’s budget when they are achieved.
CONSULTATION
External Consultation - Community & Stakeholder
Nil
Internal Consultation
Interim Directors and relevant Council officers have been consulted as required as part of the
review.
Departments/Sections Consulted:
X Community Infrastructure X Community & Development
X Asset Planning & Delivery X Community Services
X Civil Operations X Planning & Development
X Environmental Services X Health & Regulatory Services
X Waste Management X Business Facilitation
X Community Resilience & Disaster Management
X Executive Office X Organisational Services
X Communications & Governance X Financial Services
X Human Resources X ICT
De-amalgamation Coordination X Property & Contracts
Page 60 of 92
Section 61
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
8. PROCUREMENT - DELEGATION OF AUTHORITY AND POLICY
Author Co-ordinator Procurement and Fleet, Phill Parkman
Organisational Services
Governance Project Officer, George Corkill
Executive Office
Index ECM/27.12 Delegations of Authority & 44.03 Purchasing & Supply
Matters
Attachments 1. Delegation of Authority: Procurement & Contracting
2. Procurement Policy
PURPOSE
Council’s approval is sought under the Local Government Act 2009, Section 257 to delegate
powers to the Chief Executive Officer (CEO) to undertake procurement and contracting activities
and authorise payments.
In addition, the Local Government Regulation 2012, Section 198 requires Council to prepare and
adopt a policy about procurement (a procurement policy).
EXECUTIVE SUMMARY
Under the provisions of the Local Government (De-amalgamation Implementation) Regulation
2013 and De-amalgamation Transfer Methodology, the following delegation and strategic policy
adopted by the Sunshine Coast Regional Council (SCRC) in 2013 were transferred to Noosa
Council.
Delegation No.2 Procurement and Contracting Activities and Payments and
Procurement Policy
A review has been undertaken by staff to ensure the delegation and policy reflects the
operational needs and resources of the new Noosa Council. Accordingly, the attached
documents are presented for Council consideration.
Delegation No 2 “Procurement & Contracting” Attachment 1 - will authorise the CEO to
conduct procurement and contracting activities for Council; and
“Procurement Policy” Attachment 2 - has been drafted to meet Noosa Council’s operational,
budget and workforce requirements. The policy outlines the framework for officers when
conducting procurement and contracting activities, which includes procurement of goods and
services and the disposal of valuable non-current assets.
RECOMMENDATION
That Council note the report by the Co-ordinator Procurement and Fleet and Governance Project
Officer to the Planning & Organisation Committee dated 25 February 2014 and:
A. Repeal the Procurement Policy and Delegation of Authority for Procurement & Contracting
to the CEO that transferred to the Noosa Council from the Sunshine Coast Regional
Council under the Local Government (De-amalgamation Implementation) Regulation;
B. Authorise the Delegation of Authority for Procurement & Contracting to the CEO as set out
in Attachment 1; and
C. Adopt the Procurement Policy as set out in Attachment 2.
Page 61 of 92
Section 62
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
BACKGROUND INFORMATION
The proposed delegation and policy will replace current delegation No.2 Procurement and
Contracting Activities and Payments and Procurement Policy both adopted in 2013 by the SCRC
and transferred under the provisions of Local Government (De-amalgamation Implementation)
Regulation 2013 and the associated De-amalgamation Transfer Methodology.
PREVIOUS COUNCIL CONSIDERATION
Nil
REPORT
Delegations are the process by which the Council delegates its local government powers to
another person (CEO or subordinate) to carry out or implement and enforce legislation and
standards. The Act authorises Council to undertake procurement and contracting activities
provided in the Regulation for its Local Government Area. The context and structure for
conducting these activities is outlined in the Procurement Policy.
The Act also permits Council, by resolution, to delegate a power contained within the Act, or
another Act, to the CEO. The proposed delegation passes to the CEO the powers to conduct the
procurement and contracting activities outlined below as well as making payments for
established contracts.
The delegated powers created include (in brief) to:
invite written quotes, tenders and expressions of interest for medium sized ($15,000 -
$200,000) and large sized (greater than $200,000) in a financial year or over the proposed
term of the contracts (note: all amounts are exclusive of GST).
Example: large sized contract - A contractual arrangement for the supply of a service over a 5
year period that is expected to be worth, exclusive of GST, $80,000 each year has a total
expected value of $400,000.
make, enter into, amend or discharge contracts;
establish legislative exceptions including supplier arrangements;
authorise payments;
authorise the issue of purchase cards;
authorise statutory payments and specific system payments; and
determine authority limits for Council officers.
The delegation and policy will be effective from the date of Council’s resolution and subject to
annual reviews. The CEO will further delegate necessary powers to appropriately qualified
Council officers. It is anticipated there will be occasions when the CEO chooses not to exercise
the delegation or is required to seek Council’s approval. The proposed delegation will be
administered in accordance with Council’s Procurement Policy and subject to internal and
external audit reviews.
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Council’s Procurement Policy outlines the framework for conducting procurement and contracting
activities, for the procurement of goods and services and the disposal of valuable non-current
assets. The Regulations require Council to incorporate into its Procurement Policy the sound
contracting principles of:
(a) value for money;
(b) open and effective competition;
(c) the development of competitive local business and industry;
(d) environmental protection; and
(e) ethical behaviour and fair dealing.
FINANCE & RISK
There are no budget implications for the current or future financial year as an outcome of these
recommendations. The delegation and policy are fully implemented and administered within
departmental operational budgets.
Nonetheless, the delegation and procurement policy will facilitate the efficient and timely
administration and approval of contracts and recurring expenditure within the organisation, whilst
ensuring compliance with relevant legislation.
CONSULTATION
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
The Delegation and Procurement Policy were drafted via consultation between the Procurement
& Fleet and Governance teams.
Departments/Sections Consulted:
Community Infrastructure Community & Development
Asset Planning & Delivery Community Services
Civil Operations Planning & Development
Environmental Services Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
X Executive Office X Organisational Services
x Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination x Property & Contracts
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ATTACHMENT 1
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ATTACHMENT 1
Delegation No: 2014-02
Noosa Shire Council
DELEGATION OF AUTHORITY
TITLE: Procurement & Contracting
Delegation by the Council to: Date and Resolution No..
Chief Executive Officer
Source of Authority:
Local Government Act 2009 — Sections 257, 259, 262
Local Government Regulation 2012 — Sections 225 to 228 230 to 235 and 238
Delegated Power:
1. To exercise the powers of the local government under the Loca! Goverment Act 2009 (the
Act) and the Local Government Regulation 2012 (the Regulation) including the authority to:
(a) undertake the following procurement and contracting activities:
(i) invite written quotes for medium-sized contractual arrangements;
(ii) invite written tenders for large-sized contractual arrangements;
(iii) invite expressions of interest (following Council resolution);
(iv) _ invite offers for the sale of valuable non-current assets (other than sale of land)
by written tender or auction; and
(v) _ invite offers to dispose of an interest in land (valuable non-current assets) by
written tender or auction.
(b) make, enter into, amend or discharge contracts (established by the aforementioned
methods) for up to $200,000 (excluding GST) for the:
(i) | procurement of goods and services (including contracts about carrying out of
works);
(ii) | the disposal of valuable non-current assets, including an interest in land (but not
the sale of land);
(ii) the disposal of goods and assets (that are valuable non-current assets).
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Delegation No: 2014-02
(c) make, enter into, amend or discharge contracts from the following properly established
medium-sized and large-sized contractual arrangements:
(i) | quote or tender consideration plan;
(ii) | approved contractor list;
(iii) register of pre-qualified suppliers;
(iv) preferred supplier arrangement;
(v) LGA arrangement;
(vi) an entity resolved by Council as a sole supplier;
(vil) an entity resolved by Council as providing specialised or confidential services;
(vill) when a genuine emergency exists;
(ix) the contract is for the goods and is made by auction;
(x) _ the contract is for second-hand goods; or
(xi) the contract is made with, or under an arrangement with, a government agency.
(d) make, enter into, amend or discharge contracts for valuable non-current asset
exceptions, subject to legislative conditions and Council resolution:
(i) disposal of an interest by renewal to an existing tenant of the land;
(ii) | disposal of an interest in land to a person who owns the adjoining land;
(ii) disposal of an interest in land by lease for a telecommunications tower,
(iv) disposal of an interest in land that is used as an airport or for related purposes;
(v) disposal of a valuable non-current asset, other than land, by way of a trade-in for
the supply of goods and services; or
(vi) following Ministerial exemption (Council resolution not required).
(e) authorise payments under a properly established contract;
(f) authorise the issue of purchase cards up to the approved limit; and
(g) authorise statutory payments and specific system payments.
Conditions:
1. The Delegated Officer may make, amend or discharge a contract for Council if-
(a) Council's expenditure for the contract has been provided for in the approved annual
budget for-
(i) the financial year when the contractual action is taken; or
(ii) _ the financial year in which the delegation is made, if the expenditure is within the
limits stated in the resolution making the delegation; or
(b) The contractual action has been taken because of genuine emergency or hardship.
2. ‘The delegated officer may exercise the delegated powers on behalf of Council subject to:
(a) compliance with relevant legislation, policies, guidelines and procedures; and
(b) the accepted offer is the most advantageous to Council.
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ATTACHMENT 2
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ATTACHMENT 2
qe NOOSA Strategic Policy
~~ @ | COUNCIL PROCUREMENT POLICY
Endorsed by Council on: 6 March 2014
Policy Owner and Department: Director Organisational Services
1. POLICY PURPOSE
This document sets out Council’s policy for the procurement of goods and services (including the
carrying out of works) and the disposal of assets. This policy applies to the procurement of all
goods, equipment and related services, construction contracts and service contracts (including
maintenance).
The procurement of all Council goods and services must be carried out in compliance with the
Local Government Act 2009 (the Act) and the Local Government Regulation 2012 (the Regulation).
2. POLICY OUTCOME
e To facilitate the procurement of goods and services in the most cost-effective, timely and
practical manner.
e To ensure that Council complies with the regulation and where appropriate, the State
Procurement Policy.
e To ensure all officers have a clear understanding of all aspects of the Procurement Policy
and procedures.
e Council endorse financial delegations as per the financial delegations register:
O To ensure that all delegated officers have a clear understanding of their
responsibilities.
O To maintain adequate internal control over all aspects of purchasing, supply and
disposal.
O To ensure purchased works, goods and services contribute positively to Council’s
delivery of quality infrastructure and services.
oO Disposal of all goods must be approved by the Chief Executive Officer, with higher
value items offered for public auction or tender.
e Council’s procurement activities aim to achieve advantageous procurement outcomes by:
O promoting value for money with probity and accountability;
oO advancing Council's economic, social and environmental policies;
Oo providing reasonable opportunity for competitive local businesses that comply with
relevant legislation to supply to Council; and
O° promoting compliance with relevant legislation.
In accordance with the contracting provisions contained in Chapter 6 of the regulation, this policy
incorporates relevant requirements regarding the procurement of goods and services and the
carrying out of the sound contracting principles as stated in Section 104 of the Act.
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3. RESPONSIBILITY
Council officers responsible for the procurement of goods and services must comply with this
policy. It is the responsibility of Council officers involved in the procurement process to understand
the meaning and intent of this policy.
4. SOUND CONTRACTING PRINCIPLES
Council officers must have regard to the following procurement principles in all purchasing
activities:
a) Value for money
Council must harness its purchasing power to achieve the best value for money. The concept of
value for money is not restricted to price alone. The value for money assessment must include
consideration of:
e contribution to the advancement of Council's priorities;
e fitness for purpose, quality, services and support;
e whole-of-life costs including costs of acquiring, using, maintaining and disposal;
e internal administration costs;
e technical compliance issues;
e risk exposure; and
e the value of any associated environmental benefits.
b) Open and effective competition
Purchasing should be open and result in effective competition in the provision of goods and
services. Council must give fair and equitable consideration to all prospective suppliers.
c) The development of competitive local business and industry
Where price, performance, quality, suitability and other evaluation criteria are comparable, the
following areas may be considered in evaluating offers:
e creation of local employment opportunities;
e more readily available servicing support;
e more convenient communications for contract management; and
e the benefit to Council of an associated local commercial transaction.
d) Environmental protection
Council promotes environmental protection through its purchasing procedures. In undertaking any
purchasing activities Council will:
e promote the purchase of environmentally friendly goods and services that satisfy value for
money criteria;
e foster the development of products and processes of low environmental and climatic impact;
e provide an example to business, industry and the community by promoting the use of
climatically and environmentally friendly goods and services; and
e encourage environmentally responsible activities.
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e) Ethical behaviour and fair dealing
Council officers involved in purchasing are to behave with impartiality, fairness, independence,
openness, integrity, and professionalism in their discussions and negotiations with suppliers and
their representatives.
Note: Equal consideration is not required to be given to each of the contracting principles.
5. PROCUREMENT THRESHOLDS
Procurement thresholds refer to the aggregate expenditure with a supplier for goods and services
of a similar type.
a) Purchases < $15,000 (excl GST)
When entering into a contract for the acquisition of goods or services for less than $15,000.00 the
following options apply:
e for purchases under $ 7,500 (excl GST) one verbal quotation is sufficient, however verbal
quotations can be recorded in the Technology One (T1) procure to pay module;
e for purchases between $ 7,500 and $15,000 (excl GST) two written quotations are to be invited
and recorded. Council may decide not to accept any of the quotes it receives.
e If a procurement activity is likely to be medium to high risk then a risk analysis should be
undertaken.
Records of offers received must be kept on file in the T1 procure to pay module .
b) Purchases > $15,000 and < $200,000 (excl GST)
Council cannot enter into a medium-sized contract unless Council first invites three written quotes
for the contract. Written quotations are to be recorded.
If a procurement activity is likely to be medium to high risk then a risk analysis should be
undertaken.
The invitation must be to at least three persons who Council considers can meet Council's
requirements, at competitive prices. Council may decide not to accept any of the quotes it receives.
However, if Council does decide to accept a quote, Council must accept the quote most
advantageous to it having regard to the sound contracting principles identified in Section 106 of the
Act.
This requirement is subject to the exceptions identified in paragraph 8.
Records of offers received must be kept on file in in the T1 procure to pay module .
c) Purchases > $200,000 (excl GST)
Council cannot enter into a large-sized contract unless Council first invites written tenders for the
contract in accordance with the requirements of Section 224 of the regulation.
For purchases greater than $200,000 a formal tender process must be undertaken.
This requirement is subject to the exceptions identified in paragraph 8 below.
Council must either invite written tenders or invite expressions of interest (EOI) under Section 228
of the regulation. A Council resolution is required prior to undertaking an EOI.
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The invitation for tenders must:
e be made by an advertisement in a newspaper that circulates generally in the local government
area of Council: and
e allow written tenders to be given to Council for at least 21 days after the advertisement is
published.
Council must comply with the requirements in section 228(7) of the regulation if it wants to invite
tenderers to change their tenders to take account of a change in the tender specifications.
Records of offers received must be kept on file in accordance with Council’s records management
procedures.
Council must as soon as practicable after entering a contract worth $200,000 or more (excl GST):
e publish the relevant details of the contract on Council’s website; and
e display the relevant details of the contract in a conspicuous place in Council’s public office in
Tewantin.
The relevant details must be published or displayed for a period of at least 12 months.
6. EXCEPTIONS FOR MEDIUM AND LARGE SIZED CONTRACTUAL ARRANGEMENTS
Section 229 of the Regulation identifies exceptions for medium and large-sized contracts. If one of
the exceptions applies, Council may enter into:
e amedium-sized contract without first inviting written quotes; or
e a large-sized contract without first inviting written tenders.
The exceptions are:-
e if Council decides, by resolution, to prepare a quote or tender consideration plan and prepares
and adopts the plan in accordance with the requirements of section 230 of the regulation;
e entering into a contract if the contract is made with a person who is on an approved contractor
list established by Council in accordance with the requirements of section 231 of the regulation;
e entering into a contract if the contract is entered into with a supplier from a register of pre-
qualified suppliers established by Council in accordance with the requirements of section 232
of the regulation;
e entering into a contract for goods or services if the contract is entered into with a preferred
supplier under a preferred supplier arrangement that is made in accordance with the
requirements of section 233 of the regulation;
e entering into an arrangement with an approved supplier arrangement under an LGA
arrangement established in accordance with the requirements of section 234 of the regulation;
and
e entering into a medium-sized contract or a large-sized contract if:
o Council resolves that it is satisfied that there is only one supplier who is reasonably
available; or
o Council resolves that, because of the specialised or confidential nature of the services that
are sought, it would be impractical or disadvantageous for Council to invite quotes or
tenders; or
© agenuine emergency exists; or
o the contract is for the purchase of goods and is made by auction; or
o the contract is for the purchase of second-hand goods; or
o the contract is made with, or under an arrangement with, a government body.
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7. DELEGATIONS
Only the Council officers listed in the delegations register are entitled to sign / approve requisitions,
and then only in accordance with their financial delegation limits. By signing or approving a
requisition / purchase order all officers are confirming that they have taken full notice of this policy
and will comply with all of the requirements of this policy.
8. REVIEW
It is the responsibility of the Director Organisational Services to monitor the adequacy of this policy
and recommend appropriate changes. This policy will be formally reviewed by Council annually.
9. RELATED POLICIES AND PROCEDURES
Council's Corporate Plan
Council’s Operational Plan
Council’s Financial Delegations
Employee Code of Conduct
Councillor's Code of Conduct
Procurement and Contracting Procedures
Purchase Card Procedures
Version control:
Version Reason/ Trigger Change (Y/N) | Endorsed/ Reviewed by Date
1.0 New Policy Council 6 March 2014
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
9. PROCESS UPDATE – COMMERCIAL ACTIVITIES ON COMMUNITY LAND
Author Co-ordinator Property and Land Management, Clint Irwin
Organisational Services
Index ECM/Subject/Commercial Use of Community Land
Attachments Nil
PURPOSE
The purpose of this report is to provide an update on the approach to awarding high use/high
impact permits for commercial activities on community land.
EXECUTIVE SUMMARY
Since the reformation of the Noosa Council (Council), the Property and Land Management team
has been inundated with inquiries from commercial operators wishing to commence commercial
businesses on Council owned or managed community land.
The current policy governing the administration of high use / high impact permits is the
Community Land and Complementary Commercial Strategic Policy which was adopted on the 27
April 2011 by the Sunshine Coast Regional Council (SCRC).
High use / high impact permits approved by SCRC were due to expire 30 June 2013, but were
extended for a further 6 months until 31 December 2013 for Divisions 11 and 12 due to
impending de-amalgamation. Transfer Manager Peter Franks further extended the expiry date for
all high use / high impact permits to 30 June 2014 to allow the new Noosa Council to consider its
policy position.
With the approaching 30 June 2014 deadline, a further report will be submitted to Council which
will address:
current activities and locations;
a future framework / policy for administration;
a tender process; and
a fee structure for permitted activities.
Since 1 January 2014, Noosa Council has not approved any high use / high impact permit
applications. This report proposes that no high use / high impact permits are offered to
applicants while the existing SCRC policy is under review and until a new framework / policy is
endorsed by Council.
RECOMMENDATION
That Council note the report by Co-ordinator Property and Land Management to the Planning &
Organisation Committee dated 25 February 2014 and determine that no high use / high impact
permit applications be approved until such time as the Noosa Council has adopted its future
policy framework for commercial use of community land.
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BACKGROUND INFORMATION
Previous Noosa Council
The previous Noosa Council offered three year permits for commercial use activities on
community land. Typical activities included learn to surf, beach kayak, catamaran, beach
hire/equipment, food vending and beach massage.
Prior to the expiry of the permits, Council advertised for activities for specific locations
previously endorsed by Council. Applications for activities were then assessed based on
merit and the number of operations currently in place at the location and suitability of the
activity for the location.
The last tender process conducted by Noosa Council took place in June 2006 with permits
offered for a three year period.
Applicants submitted a tender response for the activity along with an amount offered to
Council to conduct the activity.
Businesses proposing new initiatives could also apply if they felt they value added to the
tourist experience and these applications were assessed as part of the assessment process.
The previous Noosa Council did not categorise permits and did not assess permit
applications outside of a three yearly assessment process. However, itinerant food vendors
were approved by the Council’s Health Department.
The previous Noosa Council did not approve ad hoc applications outside of an assessment
period because:
a) proposed businesses often competed with existing permit holders detrimentally affecting
the viability of the existing permit holder over the permit term;
b) proposed businesses often competed with existing commercial businesses leasing
premises at commercial rates; and
c) the preferred approach was to assess all applications together considering the impact on
the community and the impact on commercial businesses.
Sunshine Coast Regional Council
Subsequent to amalgamation, the SCRC also endorsed a process in which applicants
submitted a tender response along with an offer to conduct the activity.
SCRC reviewed this approach and endorsed the Community Land and Complementary
Commercial Strategic Policy on the 27 April 2011. This policy:
a) aimed to provide guiding principles for the commercial use of community land;
b) outlined the two types of commercial use categories which were identified as high use /
high impact and low use / low impact permits; and
c) defined the roles and responsibilities of Council stakeholders.
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A high use / high impact application:
a) was subject to Council determination as to the number of permits, types of activities and
specific locations;
b) related to activities on beaches and waterways, popular or high use parks, some
roadways, pathways, footpaths and trails where locations had a higher intensity of use
and potentially more significant impact on the community; and
c) was subject to an expression of interest process every three years for a three year term.
Once an expression of interest period closed applications could still be submitted, however
no guarantees were given as to whether an assessment would be undertaken until the next
period.
The high use / high impact fee structure was set at $95 per square metre. For example:
Beach Equipment Hire 1, 42 square metres- $3,990 per annum. Learn to Surf 1, 39.5 square
metres -$3,752 per annum. Under the 2006 Noosa Council tender process, Beach Equipment
Hire 1 submitted an offer of $1,000 per year to conduct permit activities, while Learn to Surf 1
submitted an offer of $16,000 per year to conduct permit activities.
There were exceptions to the high use / high impact permit category. For example there is an
iconic lifetime permit for mobile refreshments on Noosa Main Beach and an ice cream van
has a 10 year permit expiring September 2020. These exceptions acknowledge the long term
business use of the area by both businesses.
In contrast, a low use / low impact permit was for one year only and could be granted for:
a) applications for locations which have a lesser intensity of use and can easily be
accommodated in the area;
b) irregular, occasional or regular minor use;
c) applications assessed as having no impact on the space or the community; and
d) on occasion where there is little competition in the marketplace for the requested use.
The low use / low impact application fee varied depending on activity – for example the
commercial fitness and itinerant food vendor fee was $223 per application.
PREVIOUS COUNCIL CONSIDERATION
SCRC endorsed the Community Land and Complementary Activity Strategic Policy on 27 April
2011. Due to the confidential nature of the report, the specific Council resolution is unavailable.
REPORT
Noosa Shire has always been an enviable place to operate a commercial business on community
land. In comparison to leasing commercial premises, overheads are generally lower and there
are opportunities to create profitable lifestyle businesses depending on the type of business and
broad appeal to patrons. This is offset somewhat depending on the activity on the vagaries of the
weather.
High use / high impact permit holders’ activities are concentrated either on Noosa Main Beach or
in close proximity to it due to the north facing aspect of the beach and high visitation numbers.
There are currently 14 activities undertaken by 11 permit holders (including the 10 year ice cream
van permit and the mobile refreshment iconic lifetime permit).
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The appeal of Noosa combined with the return of the Noosa Council has encouraged all nature of
businesses to approach Council to seek permission to operate commercial businesses on
community land.
A policy/framework is essential to administer Council’s approach to these permit applications as
opposed to an ill-considered, ad hoc approach, for the following reasons:
it is a highly competitive and at times complaint driven area;
the locations are highly desirable community land parcels which the community value for
recreation; and
areas are highly patronised by tourists and locals; and
possible conflict with commercial businesses with significantly higher overheads operating
similar services.
Consequently, a strategic approach involves assessment of all applications periodically so that
the range of competing priorities between the community and the commercial sector are
considered together. Currently, this occurs every three years and also occurred at this interval
with the previous Noosa Council.
Total fees payable to Council are currently approximately $25,000 per annum (including the 10
year ice cream van permit and the mobile refreshment iconic lifetime permit fees). There is also a
cost to Council to administer these permits. This includes managing the application process and
assessment of applications, processing of fees, complaints and enquiry management and the
cost to enforce compliance as required.
A further report will be submitted to Council which will address:
current activities and locations;
a future framework/policy for administration;
a tender process; and
a fee structure for permitted activities.
FINANCE & RISK
The costs that will be incurred in the administration of the permits are accommodated in Council’s
operational budget and predominately as labour costs within the Organisational Services
department.
The risk of not endorsing a policy and by default encouraging an inconsistent approach and
therefore unfettered growth of these activities exposes Council to criticism from the community
which value recreational space, and commercial businesses and existing permit holders whereby
existing profitability may possibly be compromised.
CONSULTATION
External Consultation - Community & Stakeholder
In February this year, Council conducted consultation with current permit holders. All permit
holders have been contacted and encouraged to provide feedback on issues related to their
permits, appropriate locations, activities and a possible future approach to issuing permits by
Council. Many of the permit holders either visited Council offices, or have provided written
feedback.
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Common themes emerging from the consultation include:
That Noosa Main Beach and adjoining areas cannot support more surf school, kayaking or
beach hire activities if current businesses are to remain viable;
That a flat fee structure be adopted by Noosa Council. Activities that attract patrons at high
profile locations should pay more than those permit holders with less opportunity. For
example, main beach surf schools should pay more than the beach massage and catamaran
hire;
That the tender process be a simplified expression of interest process. Previous application
processes focused on writing skills and provision of detailed information, as opposed to
quality of actual service provided, years of experience and number of complaints; and
That local businesses which value add and provide a memorable Noosa experience, be
granted preference over larger businesses from outside the local area.
Internal Consultation
Interim Director Organisational Services
Manager Health and Regulatory Services
Public Space Permits Officer
Departments/Sections Consulted:
Community Infrastructure X Community & Development
Asset Planning & Delivery Community Services
Civil Operations Planning & Development
Environmental Services X Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
Executive Office X Organisational Services
Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination X Property & Contracts
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
10. FEES AND CHARGES UPDATE – NOOSA RIVER HOLIDAY PARK
Author Property Officer – Property & Land Management, Michelle Stirling
Organisational Services
Index Subject/Noosa River Holiday Park - Administration
Attachments Nil
PURPOSE
The purpose of this report is to endorse new fees and charges for the Noosa River Holiday Park.
EXECUTIVE SUMMARY
Severe erosion at the Noosa River Holiday Park during 2013 prompted Sunshine Coast Regional
Council (SCRC) to reconfigure the foreshore tent site area to maximise revenue. As a result,
SCRC adopted a new set of fees for the affected area. The new charges were not included in the
fees and charges schedule provided by SCRC to Noosa Council.
Property and Land Management has recently been made aware of the new fees and charges for
the affected area and is seeking to adopt the changes as part of the Noosa fees and charges
schedule.
RECOMMENDATION
That Council note the report by the Property Officer, Property and Land Management to the
Planning & Organisation Committee dated 25 February 2014 and adopt the following fees and
charges for the Noosa River Holiday Park to 26 January 2015:-
Tourist Unpowered Camp Sites, Foreshore Waterfront – Off Peak – Daily $41.00
Off Peak – Weekly $287.00
Tourist Unpowered Camp Sites, Foreshore Waterfront – Peak - Daily $55.00
Peak - Weekly $385.00
Tourist Unpowered Camp Sites, Foreshore Waterfront – Shoulder – Daily $46.00
Shoulder – Weekly $322.00
Tourist Powered Camp Sites, Long RV – Off Peak – Daily $37.00
Off Peak – Weekly $259.00
Tourist Powered Camp Sites, Long RV – Peak – Daily $51.00
Peak – Weekly $357.00
Tourist Powered Camp Sites, Long RV – Shoulder – Daily $43.00
Shoulder – Weekly $301.00
.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
BACKGROUND INFORMATION
Fees and Charges for the Holiday Parks are set each year for the period 28 January 2014 to 26
January 2015 (the 1st day of the non-peak period after the Christmas Season.), not according to
financial year as is the case for other Council fees and charges. The fees and charges for
Holiday Parks are set until the end of the Summer Peak Season to provide some financial
certainty to patrons who pre book sites in advance (i.e. upwards of 6-18 months in advance).
Noosa Council at its Ordinary Meeting on 2 January 2014 adopted the fees and charges
schedule for Council. At the time Council were not aware of the changes made to the fees and
charges for the Noosa River Holiday Park in relation to the foreshore camping area and the
newly installed long recreational vehicle (RV) sites.
The SCRC Holiday Parks Manager reconfigured the tent site area prior to Christmas 2013 due to
severe erosion which has been impacting on the foreshore campsites during 2013.
The reconfiguration resulted in 12 new fees and charges that were subsequently not reported in
Noosa Council’s fees and charges schedule.
PREVIOUS COUNCIL CONSIDERATION
Nil.
REPORT
The new fees and charge additions include:
Tourist Unpowered Camp Sites, Foreshore Waterfront – Off Peak – Daily $41.00
Off Peak – Weekly $287.00
Tourist Unpowered Camp Sites, Foreshore Waterfront – Peak - Daily $55.00
Peak - Weekly $385.00
Tourist Unpowered Camp Sites, Foreshore Waterfront – Shoulder – Daily $46.00
Shoulder – Weekly $322.00
Tourist Powered Camp Sites, Long RV – Off Peak – Daily $37.00
Off Peak – Weekly $259.00
Tourist Powered Camp Sites, Long RV – Peak – Daily $51.00
Peak – Weekly $357.00
Tourist Powered Camp Sites, Long RV – Shoulder – Daily $43.00
Shoulder – Weekly $301.00
FINANCE & RISK
The new fees and charges for the reconfigured area will increase revenue for the site. This is
due to more efficient use of the existing space and the addition of a fee that reflects the use of
space by RVs.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
CONSULTATION
External Consultation - Community & Stakeholder
Onsite Manager, Noosa River Holiday Parks
Manager Sunshine Coast Council Holiday Parks
Internal Consultation
Interim Director Organisational Services
Departments/Sections Consulted:
Community Infrastructure Community & Development
Asset Planning & Delivery Community Services
Civil Operations Planning & Development
Environmental Services Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
Executive Office x Organisational Services
Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination x Property & Contracts
Page 78 of 92
Section 79
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
EXECUTIVE OFFICE REPORTS
Executive
11. ESTABLISHMENT OF A CASE MANAGEMENT WORKING GROUP
Author Chief Executive Officer, Brett de Chastel
Executive Office
Index ECM/Subject/Case Management Working Group
Attachments 1. Working Group Charter
PURPOSE
The purpose of this report is to establish a Case Management Working Group to better manage
planning litigation; given it is one of Council’s significant issues.
EXECUTIVE SUMMARY
Noosa Council has always had a history of vigorously defending its planning decisions through
the court system. Obviously, this comes at a significant cost and has the potential of having a
major impact on Council’s future financial position. It is also important to effectively manage our
litigation strategy and provide clear direction to Council’s solicitor on priorities and planning
outcomes desired.
It is proposed to establish a Case Management Working Group consisting of the Mayor, the
Chairperson of the Planning and Organisation Committee and key staff to oversee the
management of Council’s litigation with a particular focus on planning appeals. The Case
Management Working Group will provide advice and direction to Council’s solicitor on our
litigation and review progress with various cases. The Case Management Working Group will not
have any delegation to commence or settle cases and those decisions will continue to be made
by Council. The Working Group will focus on ensuring that the litigation process is as efficient as
possible and that Council’s planning goals are achieved through the Planning and Environment
Court process.
RECOMMENDATION
That Council note the report by the Chief Executive Officer to the Planning & Organisation
Committee dated 25 February 2014 and:
A. Establish a Case Management Working Group to oversee the management of Council’s
litigation with a particular focus on planning appeals;
B. Adopt the Charter for the Working Group as set out in the attachment to the report; and
C. Appoint the Mayor and the Chairperson of the Planning and Organisation Committee as
members of the Case Management Working Group, together with the Council staff
identified in the Case Management Working Group’s Charter.
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BACKGROUND INFORMATION
The Noosa Shire area has continuously experienced significant development activity with an
associated level of development disputes. In defending its Planning Scheme, the Council has
always taken a strong stance to make sure that the principles of the Planning Scheme are
preserved. Historically, the Council has had a statistically high success rate in the Planning and
Environment Court in defending the Planning Scheme and particularly the 1997 Strategic Plan.
The Council has also historically defended a significant number of town planning compensation
cases where applicants have sought compensation from the Council due to changes to its
Planning Scheme. Almost all of those have been now resolved successfully however, as Council
is aware, there is still one major case being conducted.
The Planning and Environment Court is an expensive system for resolving development
disputes. It involves a significant investment in solicitors, barristers, experts etc. It is important
that the Council manages this process effectively to get the best value and achieve the best
planning outcomes.
PREVIOUS COUNCIL CONSIDERATION
The former Noosa Shire Council established a Case Management Working Group in July 2004.
The Working Group operated very successfully until 2008 and significantly streamlined the
litigation process from the former Council’s perspective.
REPORT
The proposal to establish a Case Management Working Group is based on managing Council’s
planning litigation more effectively.
1. History of appeals
At various times, the former Noosa Council had up to 30 town planning cases at any one time.
These were a mix of appeals against Council decisions, town planning compensation cases and
planning prosecutions. Some of those cases have been very high profile and expensive (e.g.
Leisuremark, TM Burke and Leightons’ cases). However, while there are now a smaller number
of cases, there are a number of very significant ones from both a planning and cost perspective.
The Council will need to proactively manage these to get the best outcome.
2. Looking ahead
While almost impossible to predict with any certainty what future planning litigation will arise, it is
highly likely that Council’s Planning Scheme will continue to be challenged for a number of
reasons. Firstly, almost all of the greenfield and straightforward type development sites have
already been developed. It is the more marginal sites from a planning perspective that remain
(e.g. flooding, slope, vegetation etc). Secondly, the economics of supply and demand will
encourage more challenges to Council’s Planning Scheme for applicants to gain development
rights that will result in higher density or more development. It will be important to continue to
defend the Planning Scheme in the P&E Court.
3. Goals for the Working Group
Attached to this report is the proposed Charter for the Working Group. The overall goal of the
Working Group is to ensure that development disputes are managed effectively. The specific
goals are:
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Development appeals and disputes are systematically managed;
There is a regular review of cases to ensure progress in resolving disputes;
Development and review of appropriate strategies to manage appeals; and
Optimise efficiency of Council’s planning cases to reduce the financial impact on Council.
4. Council Role
The Working Group will have no delegated authority to initiate or settle any litigation. That is a
matter for Council. In practice, when an appeal is lodged, staff will prepare a report to Council
outlining the basis of the appeal and propose a course of action (e.g. defend the appeal). The
ongoing strategy and tactics in the case can be managed by the Case Management Working
Group. The Case Management Working Group may come to the conclusion that a particular
case should be settled but the final decision to settle a case can only be made by the Council.
5. Membership
It is proposed that the Mayor and the Chairperson of the Planning and Organisation Committee
be members of the Case Management Working Group together with key staff. The staff
proposed are the Chief Executive Officer, Coordinator Development Assessment and Interim
Director Organisational Services. Other staff can be added as required by the Chief Executive
Officer. This is likely once the organisational structure review has been finalised.
FINANCE & RISK
There are no financial or risk implications in relation to this proposal. If the Case Management
Working Group operates effectively, the Council should be able to minimise its litigation
expenditure and manage risk in the litigation process.
CONSULTATION
External Consultation - Community & Stakeholder
This issue has been discussed with the Solicitor currently undertaking Council’s planning
litigation. He is supportive of the proposal as it will provide a process for better management of
planning litigation from his perspective.
Internal Consultation
Discussions have been held with Planning staff and the Interim Director Organisational Services.
All are supportive of this proposal.
Departments/Sections Consulted:
Community Infrastructure x Community & Development
Asset Planning & Delivery Community Services
Civil Operations x Planning & Development
Environmental Services Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
x Executive Office x Organisational Services
Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination Property & Contracts
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Section 82
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
ATTACHMENT 1
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
¢ w NOOSA ATTACHMENT 1
mm MESON Working Group Charter
i
Name Case Management Working Group
Goals The overall goal of the Working Group is to effectively manage
Council's planning disputes.
Specific goals:
e Development appeals and disputes are systematically
managed;
e There is a regular review of cases to ensure they are
managed properly;
e Development and review of appropriate strategies to
manage appeals; and
e Optimise efficiency of Council’s planning cases to reduce the
financial impact on Council.
Roles & Responsibilities The Working Group’s roles and responsibilities include:
e Overview from a strategic standpoint, development disputes
after Council has decided an application;
e Receive regular updates from Council's Solicitor and
Planning staff concerning the ongoing management of
development disputes;
e Review the strategies and tactics in upcoming court cases;
and
e Ensure Council's resources are used wisely in planning
cases.
Resources The Working Group will generally operate based on Council's
own staff resources. The intention is that the Working Group
will be able to save Council money through the careful oversight
of planning litigation.
Timeframes The Working Group is likely to be required in the long-term as
Council will continue to have development issues into the future.
However, it would be appropriate for there to be review of the
Working Group’s effectiveness after a twelve month period.
Limitations The Working Group does not have any delegation to decide to
commence or settle planning cases. Those decisions will be
made by Council.
Reporting to Council Routine reports to Council on progress with addressing
development disputes could be expected on a three-monthly
basis. However, the Working Group may need to report to
Council on more specific issues as required.
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Meeting Location/Frequency A meeting program of a six-weekly basis would be suitable for
routine reviews of appeals. In the event of preparation being
undertaken for a significant appeal, meetings will be held more
frequently as required.
The meetings of this Working Group will not be open to the
public, and in fact its deliberations will be of a highly confidential
nature as they relate to litigation.
Membership Councillors:
Mayor - Cr Noel Playford
Planning & Organisation Committee Chair - Cr Frank Wilkie
Council staff.
Chief Executive Officer
Coordinator, Development Assessment
Director Organisational Services
plus any other staff requested by the CEO
It is intended that the Council’s Solicitor would provide any
required secretariat support to the Working Group.
Date Adopted by Council <>
Meeting Coordinator To be confirmed.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Communication & Governance
12 ESTABLISHMENT OF INTERNAL AUDIT PROCESSES
Author Chief of Staff, Debra Iezzi
Executive Office
Index ECM/Subject/Internal Audit & Subject/Audit Committee
Attachments 1. Audit Committee Charter
PURPOSE
The purpose of this report is to inform Council of the requirement of the Queensland Local
Government Act 2009 (the Act) and the Local Government Regulation 2012 (the Regulation) for
Council to establish an efficient and effective internal audit function and to seek approval for the
establishment of an Audit Committee.
EXECUTIVE SUMMARY
Section 105 of the Local Government Act 2009 provides that each Council must establish an
internal audit function and that large councils must establish an Audit Committee. While Noosa
Council is not a ‘large’ council by definition, the establishment of an Audit Committee is
recognised as an important feature of good governance and is recommended.
Internal audit provides an independent and objective review and advisory service designed to
add value and improve the performance of the organisation by providing assurance to the
Council, Chief Executive Officer (CEO) and management that Council’s financial and operational
controls effectively and efficiently manage Council’s risks and achieve the Council’s objectives.
In the current organisational structure internal audit reports functionally to the CEO, however as
Council does not have a dedicated internal resource to undertake the internal audit function, it is
proposed that Council engages a suitably qualified external auditing firm to act as Council’s
internal audit adviser and representative.
The Audit Committee is an advisory committee that assists Council in fulfilling its oversight
responsibilities relating to accounting and reporting requirements imposed by the Act including
monitoring and reviewing the integrity of financial documents, oversight of the internal audit
function and making recommendations to Council about any matters considered to need action
or improvement.
The Audit Committee is required to meet on a regular basis (at least twice per financial year) and
must report on matters reviewed at the committee to Council. It is proposed that the Audit
Committee meet quarterly and comprise the Mayor, a Councillor and two external members, of
which one must have significant experience and skills in financial matters (an Expression of
Interest will need to be undertaken to attract suitably qualified candidates). A draft Audit Charter
Policy document containing the terms of reference for the Audit Committee has been prepared
for consideration by Council and the Committee, once it is established.
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Section 85
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
RECOMMENDATION
That Council note the report by the Chief of Staff to the Planning and Organisation Committee
dated 25 February 2014 and:
A. Authorise the Chief Executive Officer to seek quotations for the provision of an internal
audit service;
B. Establish the Audit Committee and endorse the Mayor and Councillor **** as the Councillor
representatives on the Committee; and
C. Authorise the Chief Executive Officer to invite applications from suitably qualified applicants
for the two external members of the Audit Committee.
BACKGROUND INFORMATION
Section 105 of the Act provides that each local government must establish an effective and
efficient internal audit function, and Section 207 of the Regulation details the internal auditing and
reporting requirements which must be fulfilled. This includes the preparation of an annual internal
audit plan that addresses operational risks and control measures adopted by Council as well as
the reports and documentation required to be provided to the Audit Committee.
Section 209 of the Act provides that a “large” local government must establish an Audit
Committee. A large local government is defined as “a local government belonging to a
remuneration category of 3 or higher mentioned in the remuneration schedule”. Noosa Council is
currently a category 4 council.
PREVIOUS COUNCIL CONSIDERATION
Nil.
REPORT
The Local Government Act 2009 (the Act) provides for the establishment of an Audit Committee
and an internal audit function.
Internal Audit
Council does not have a dedicated officer to perform the internal audit function. As such it is
proposed that Council engage in a process to invite and evaluate offers from suitably qualified
audit firms to act as Council’s internal audit function, risk adviser and representative. It is
common practice with smaller councils such as Bundaberg Regional Council to ‘buy in’ audit
expertise.
It will be necessary that the CEO be authorised to prepare the necessary tendering
documentation for the provision of the internal audit and risk service for a two year period 2014 -
2016 (i.e. the current term of Council) and that an evaluation team made up of the CEO, Director
Organisational Services, Mayor and the Chairman of the Audit Committee be responsible for
assessing and evaluating quotations.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Audit Committee
While Noosa Council is a category 4 council, and is not required to establish an Audit Committee,
it is proposed that one be established. The Audit Committee’s function is to act on behalf of
Council to offer independent advice and assurance to the CEO and Council on the adequacy of
financial and management controls in policy making and operational areas, and systems for
identifying strategic and operational risks. It is recognised as an important feature of good
governance, and will provide an additional layer of scrutiny to assist Council with its financial
sustainability challenges moving forward.
Sections 208 - 211 of the Regulation provide for the composition of the Audit Committee and its
responsibilities which include:
the requirement to meet at least twice each financial year; and
to review and report on the internal audit plan, internal audit progress reports, Council’s draft
financial statements, and the Auditor General’s report.
In relation to the membership of the Committee, Section 210 of the Regulation provides that the
Audit Committee consist of 3 - 6 members including 2 Councillors appointed by Council, and that
at least one member must possess significant experience and skills in financial matters.
It is proposed that the Audit Committee meet quarterly and comprise the Mayor, one Councillor
and two independent members, supported by the CEO and Council officers. In relation to the
independent members, it is proposed that the CEO invite applications for these roles and
external members be paid an appropriate sitting fee for attendance at set meetings.
A draft Audit Committee Charter outlining the terms of reference for the Audit Committee has
been prepared for consideration by Council and further review by the Audit Committee (refer
Attachment 1).
FINANCE & RISK
The cost of engaging an external auditing firm to provide the necessary audit services to Council
to deliver an internal audit plan is estimated to be $10,000 per quarter or $40,000 per year.
The cost of engaging two external members on the Audit Committee is estimated to be $500 per
person per sitting or $1,000 per quarter or $4,000 per year.
The current budget provides for these expenses and a recommendation will be made for the
inclusion of these items in the 2014-15 Budget.
CONSULTATION
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
Nil.
Departments/Sections Consulted:
Community Infrastructure Community & Development
Asset Planning & Delivery Community Services
Civil Operations Planning & Development
Environmental Services Health & Regulatory Services
Waste Management Business Facilitation
Community Resilience & Disaster Management
x Executive Office x Organisational Services
Communications & Governance Financial Services
Human Resources ICT
De-amalgamation Coordination Property & Contracts
Page 86 of 92
Section 87
PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
ATTACHMENT 1
a NOOSA Strategic Policy
@ | COUNCIL
DRAFT
AUDIT COMMITTEE CHARTER
Policy Owner and Department: = Chief Executive Officer
1. Function, Role and Duties of the Audit Committee
The Audit Committee will act as an advisory committee to Council in the effective discharge
of the responsibilities prescribed in the Loca! Government Act 2009, the Locai Govemment
Regulation 2012 and other relevant legislation and prescribed requirements. In doing so, it
will provide independent comment, advice and counsel on audit and risk management
issues covering all Council operations and projects reported and considered by the
Committee at its regular meetings.
The Committee does not replace or replicate established management responsibilities and
delegations, the responsibilities of other executive management groups within Council, or the
reporting lines and responsibilities of the internal audit, external audit or risk management
functions.
The Committee will provide prompt and constructive reports on its findings directly to
Council, particularly when issues are identified that could present a material risk or threat to
Council.
In the discharge of its responsibilities, a key duty of the Committee will be to provide
reasonable assurance to Council that its core business goals and objectives are being
achieved in an efficient and economical manner, within an appropriate framework of intemal
control and risk management. The discharge of this responsibility principally involves the
consideration of audit-related findings and risks highlighted and reported in respect of
performance management.
In the assessment of audit findings, the Committee must take into account management's
responses and recommendations in relation to such matters.
The Audit Committee’s core duties are to:
e Assess and contribute to the audit planning processes relating to the risks and
threats to Council, taking into account the financial and operational environment in which
it operates and its performance management framework;
e Assess and enhance Council's corporate governance, including its systems of
internal control;
e Oversee and appraise Council's financial and operational reporting processes;
e Review Council's internal controls to ensure they are best practice and for fraud and
risk prevention; and
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
e Advise Council regarding the management of its strategic risks.
Other key responsibilities of the Committee, through the respective audit functions, are to
assist Council to discharge the responsibilities of ‘due care and diligence’ in relation to:
e The delivery of the organisation's outputs efficiently, effectively and economically and so
as to obtain optimal value for money;
e Optimising the organisation's performance in terms of quality, quantity, timeliness, cost
and where appropriate, location;
e Reporting organisational financial and operational information to the users of its reports in
a relevant, reliable and timely manner;
e Ensuring the integrity and consistency of the organisation's corporate culture relative to
ethical conduct and probity, including in relation to its tendering, contracting and other
procurement processes; and
e Initiate special investigations as it sees fit, or as directed by Council, in relation to
matters set out in this Charter.
In the discharge of the foregoing responsibilities the Committee must provide prompt and
constructive advice to Council, particularly where issues are identified that could present a
material risk or threat to the Council.
2. Relationship with Internal Audit
It is noted that due to its size, the Noosa Council does not have a dedicated resource to
perform the internal audit function.
Therefore, in terms of this, the Audit Committee may from time-to-time seek independent
reports for specific matters.
3. Relationship with Council Executive Management Groups
The Audit Committee will liaise closely with other Council executive management groups
and ensure, to the extent practicable that there is no material overlap between the internal
and extemal audit functions. The Committee will ensure that there is a frank and meaningful
exchange of information between the groups where this is necessary or desirable.
4. Relationship with Line Management
The role of the Audit Committee with respect to line management will focus on whether the
actions proposed to address audit concerns are satisfactory and cost-effective and will
enhance the effectiveness and efficiency with which Council delivers its outputs and
contributes to whole of Council priorities.
5. Relationship with External Audit
The Audit Committee has no power of direction over extemal audit or the manner in which
the extemal audit is planned or undertaken but will act as a forum for the
consideration of external audit findings and will ensure they are balanced with the views of
management. The Committee will consult with extemal audit on that function's proposed
audit strategy and audit fees for each year and ensure that an integrated audit process
occurs, to the extent practicable. The Committee will review letters and reports provided by an
external auditor.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
6. Membership of Audit Committee
The Audit Committee will consist of the Mayor and one Councillor as per Section 210 of the
Local Government Regulation 2012.
The Council will appoint two extemal members with the appropriate qualifications to the
Committee. At least one member will have significant experience and skills in finance matters.
Collectively, the Committee shall possess:
e A thorough understanding of the core activities of Council and the environment in which
it operates, including its strengths, weaknesses, opportunities and threats;
e A commitment to the continual improvement of the outputs that the organisation delivers
and that contribute to the achievement of Council's priorities;
e Strong business acumen and management skills;
e A high level of understanding of best practice internal control, risk management and
corporate governance;
e Asound knowledge of information systems and emerging technology
e A high level of competency in financial and operational reporting and the ability to
analyse complex financial reports, including Council's Operating Statement, Statement
of Financial Position, Cash Flow Statement and Notes to and forming part of those
statements;
e An inquiring attitude, objectivity and independence; and
e Astrong, demonstrated sense of probity and ethical conduct.
The membership of the Committee may be reviewed during the life of the Committee but will
be reviewed following the completion of each General Local Government Election.
6.1 Committee Chairperson
The Chairperson shall be elected by the Committee.
6.2 Committee Secretary
The Secretary will be responsible for the preparation and circulation of the meeting
agenda and accurately minuting all decisions of the Committee in consultation with its
Chairperson. The Secretary will also be responsible for the timely tabling of all
correspondence, reports and other information relevant to the Committee’s activities
and operations.
The Secretary is to be provided by the Chief Executive Officer.
7. Ethical Practices
Members of the Audit Committee will, at all times in the discharge of their duties and
responsibilities, exercise honesty, objectivity and probity and not engage knowingly in acts or
activities that have the potential to bring discredit to Council.
Members also must refrain from entering into any activity that may prejudice their ability to
carry out their duties and responsibilities objectively and must at all times act in a proper
and prudent manner in the use of information acquired in the course of their duties.
Members must not use Council information for any personal gain for themselves or their
immediate families or in any manner that would be contrary to law or detrimental to the
welfare and goodwill of the organisation. Further, members must not publicly comment
on matters relative to activities of the Committee other than as authorised by Council.
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
Members who become aware of a conflict of interest or issues which may affect their
objectivity on matters raised within the Committee should advise the Chairman immediately. In
the case of the Chairman they are to advise the Chief Executive Officer.
8. Committee Meetings
Meetings shall be conducted on a formal basis and be effectively minuted by the Secretary as
to proceedings and decisions. Meeting agendas must be prepared and distributed to all
members of the Committee at least seven (7) working days prior to a meeting. Minutes of
meetings must be prepared and distributed to Committee members as soon as possible
after the conclusion of the meeting and must be confirmed as an accurate record of the
meeting at the next subsequent meeting of the Committee.
In the setting of the Committee agenda, there will be an emphasis on the most significant
risks and threats to Council and the ongoing evaluation of what is being done to mitigate
such risks.
The Committee shall meet quarterly. In addition, the Committee Chairperson may call such
additional meetings as may be necessary to address any matters referred to the
Committee or in respect of matters that the Committee wishes to pursue.
A quorum shall consist of at least three (3) members. As far as practicable, decisions of the
Committee shall be regarded as its collective decision or advice. However, where there is
material dissension to a decision, a minority view may be placed before the Council.
8.1 Other Attendees at Committee Meetings
The Chairperson may invite a representative of extemal audit or other appropriate
persons to attend any meeting of the Committee and to present and comment on
appropriate items.
Where advice is required in relation to a matter subject to a committee inquiry and it is
considered sufficiently material to warrant the services of a specialist external
consultant, the Committee may request Council assistance.
9. Committee Reports
The Audit Committee must prepare prompt and timely meeting minutes and reports to
Council as soon as practicable after each meeting outlining relevant matters that have been
considered by it, as well as the Committee’s opinions and recommendations thereon. A
summary of the role and achievements of the Committee shall be included in the Annual
Report of Council together with a statement that the Committee has observed the terms of its
Charter.
10. Evaluation of Committee Activities
On an annual basis the Committee Chairperson will:
e Assess the performance of the Committee and take appropriate action in respect of
areas where there is a perceived need for enhancement of its role, operational
processes or membership; and
e Provide each individual member of the Committee with feedback on that person’s
work performance and professional contributions to the Committee's activities for the
year.
Membership of the Committee will be reviewed by Council following each Local
Government Election with the aim of ensuring appropriate balance between continuity of
membership, the contribution of fresh perspectives and a suitable mix of skills, knowledge
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and experience.
Extemal and Non-executive Management members are to be limited to a maximum of two
terms equivalent to two local government elections.
11. References and Associated Documents
Local Govemment Act 2009
Local Goverment Regulation 2012
Version control:
Version Reason/ Trigger Change (Y/N) | Endorsed/ Reviewed by Date
1.0 New Policy Council
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PLANNING & ORGANISATION COMMITTEE MEETING AGENDA 25 FEBRUARY 2014
CLOSED SESSION
Nil.
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