Agenda of Special Community, Culture and Events Committee Meeting

Item No. 4.1

Agenda (Open Portion)

Special Community, Culture and Events Committee Meeting

Page 6

19/6/2017

REPORT TITLE: Playful City Public Art Project

REPORT PROVIDED BY: Manager Community and Cultural Programs

Director Community Development

1. Report Purpose and Community Benefit

1.1. This report is to seek Council approval for the commissioning of three public art projects for children in the city centre.

1.2. This project would address an existing gap in provision of children’s play facilities in the city centre, increase the number of child and family friendly spaces, and improve the impetus for families to visit the city.

2. Report Summary

2.1. The City of Hobart widely acknowledges that the city centre lacks facilities for children’s play. This was identified in the Jan Gehl and Associates produced Hobart 2010 Public Spaces and Public Life - A City with People in Mind. This report suggested that the city centre lacked public spaces that were attractive for children and their caregivers. This feedback continues to be received through consultations with families accessing the city.

2.2. It is proposed that three new public art projects for children be commissioned for the city centre. Rather than traditional structures for play, these artworks would focus on making the urban landscape playable.

2.3. Two possible sites have been identified and a third site’s suitability is currently being scoped for the introduction of playful public artworks for children. The two confirmed proposed sites are:

(i) Collins Court. The artwork would be located in the rear section of the court, and would form part of the scheduled Stage 2 refurbishments designed by the City Design team. (Refer Attachment A to this report for location as part of proposed Stage 2 design.)

(ii) Victoria Walk. The artwork would be located in the paved seating area immediately next to the southern Centrepoint entrance. (Refer Attachment B to this report.)

2.4. Artists would be selected via a two-stage process that includes a nationally advertised Expression of Interest (including a selection of a shortlist), and a paid Concept Development stage.

2.5. The total cost for these three projects is $120,000. Funding for these artworks would be drawn from existing project allocations for both the Public Art Program and the Collins Court Project in the draft 2017-18 Annual Plan.

3. Recommendation

That the Council approve the commissioning of three public art projects for children in the city centre at a total cost of $120,000, to be funded from existing budget allocations within the Public Art Program and Collins Court Project budgets.

4. Background

4.1. In 2010, Jan Gehl and Associates produced Hobart 2010 Public Spaces and Public Life - A City with People in Mind. This report suggested that the city centre lacked public spaces that were attractive for children and their caregivers. The report stated the following points:

4.1.1. “Of all the activities that were recorded on a Saturday, only two per cent represent activity for children.

4.1.2. There is almost no space left over offering activities that encourage people to stay. Places with benches and outdoor seating could do a lot, as well as smaller spaces where children could play.

4.1.3. Children playing is an indicator of a city that has been created for all users. Public spaces require extra features in order to invite children and elderly people to use and enjoy them.”

4.2. Following on from the Gehl recommendations, ‘A Child Friendly Hobart’ was developed as an outcome of the creative consultation project IMAGINE BUILD PLAY.

4.3. IMAGINE BUILD PLAY, initiated by the City of Hobart in 2013 and funded by the Tasmanian Early Years Foundation, engaged community artists to work collaboratively with over 200 young children, adults and community organisations to explore the idea of a child friendly Hobart through the creation and use of interactive artwork. The result of this project was to identify a number of core ideas as to what a Child Friendly Hobart should look like:

· Involve children and families in design and decision making.

· Maintain a safe environment with slow moving traffic, clean parenting rooms, and protection from the sun, wind and rain.

· Be imaginative and fun with colours, sounds and textures to provide stimulating and interesting ways to navigate through the city centre.

· Provide active spaces to play, climb, roll, swing, slide, hop and jump.

· Cater for families to stop and rest by providing grass areas, seats, benches and tables.

· Be full of surprise and evoke curiosity and engagement with diverse sensory elements.

4.4. Following the IMAGINE BUILD PLAY consultation, the City’s Cultural, Community and Activation teams developed a presentation for a meeting of the Executive Leadership Team on 23 June 2016, detailing the lack of facilities for children’s play in the Hobart city centre and offering examples of national and international public art and design that offer play in the urban environment.

4.4.1. The Executive Leadership Team endorsed the provision of facilities for play within the city centre.

4.5. Two possible sites have been identified and a third site’s suitability is being scoped for the introduction of playful public artworks for children. The two confirmed proposed sites are:

(i) Collins Court. The artwork would be located in the rear section of the court and would form part of the scheduled Stage 2 refurbishments designed by the City Design team. (Refer Attachment A to this report for location as part of proposed Stage 2 design.)

(ii) Victoria Walk. The artwork would be located in the paved seating area immediately next to the southern Centrepoint entrance. (Refer Attachment B to this report.)

4.6. Building on core ideas presented in the IMAGINE BUILD PLAY project, these artworks would be different from traditional playground structures by focusing on making the urban landscape playable with interactive, imaginative elements that may utilise contemporary technology/sound/light.

5. Proposal and Implementation

5.1. It is proposed that three public art projects for children be implemented as permanent works within the city centre. The following two proposed sites have been confirmed as optimal locations, and the Public Art Program team is currently looking for a third suitable site.

Collins Court

5.1.1. A permanent artwork would be integrated into the rear section of the court, which is scheduled as Stage 2 of the Collins Court refurbishment. Refer Attachment A for location details.

5.1.2. The overall refurbishment project for Collins Court would incorporate a range of works including improvements to the accessibility of this area and surrounding spaces, new soft and hard landscaping, seating, and tables.

Victoria Walk

5.1.3. A permanent artwork would be located within the existing seating area in Victoria Walk, at the rear of Centrepoint.

5.2. Artists would be selected via a two-stage process that includes a nationally advertised Expression of Interest (including a selection of a shortlist), and a paid Concept Development stage.

5.3. Relevant internal and external stakeholders, including children and people who work with children would be consulted as part of the selection process, with the Public Art Advisory Panel making the final recommendation.

5.4. The Collins Court project would be implemented as part of the Stage 2 works in conjunction with the overall project.

5.5. The Victoria Walk project and the project on the third site (to be confirmed) would be standalone projects implemented concurrently.

6. Strategic Planning and Policy Considerations

6.1. The Playful City Public Art Project addresses Strategic Objectives 1.3, 1.4, 1.5, 2.2, 4.1, 4.2, 4.3 and 4.4 from the Capital City Strategic Plan 2015-2025, addressing Economic Development, Vibrancy and Culture; Urban Management; and Strong Safe and Healthy Communities.

6.2. Correspondingly, the project addresses Outcome Area 1.1 and 1.2 of the Creative Hobart Strategy, namely:

“Enhancing sense of place (1.1); and

Activating Public Spaces (1.2).”

6.3. The project also connects with the City of Hobart Children and Families Strategy, in particular:

“Priority Area 2: Engaging and Participating, which sets a priority for providing opportunities for Children and Families to participate in activities and future planning for the city.”

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. There will be no impact on the Current Year Operating Result.

7.2. Impact on Future Years’ Financial Result

7.2.1. The total project costs of all three projects is anticipated to be $120,000.

7.2.2. The Collins Court project cost of $55,000 would be funded from the 2017-18 allocation for this project in the draft 10 Year Capital Works Plan.

7.2.3. The Victoria Walk project and the third site project combined cost of $65,000 would be funded from the 2017-18 allocation for Public Art in the draft 10 Year Capital Works Plan.

7.3. Asset Related Implications

7.3.1. Each of the projects will result in a new asset for the City, to be maintained for the life of each commission (expected 15-20 years).

7.3.2. Given the complexity of ownership and maintenance considerations for the entire public art collection, a further report will be provided including detailing ongoing maintenance requirements for these assets.

8. Legal, Risk and Legislative Considerations

8.1. The Public Art Program has consulted with City Infrastructure regarding the artworks likely to be within pedestrian zones. No issues were identified, providing public access is maintained, in particular the ability to shoreline along the building edge for the partially sighted.

8.2. The contract for the commission will specify that any artwork must conform to Australian Standards relevant to an installation for children within a public place.

9. Environmental Considerations

9.1. The brief for each of the three commissions will specify potential themes for exploration/expression within the work. Science and the Environment will be proposed as a potential theme.

10. Social and Customer Considerations

10.1. This project would address an existing gap in the provision of children’s public play facilities within the city centre by specifically providing public artwork for children.

10.2. In addressing the identified gap, provision for children’s play facilities would allow and encourage more families to use the city centre by offering reasons to stay longer and providing child-centric destinations.

10.3. Providing infrastructure intended for children would increase the accessibility and enjoyment of the city for families.

11. Marketing and Media

11.1. The Playful City Project offers considerable opportunities to link with other future initiatives for children in the city centre, such as:

· Staging events adjacent to the new artworks, marketed to children and families.

· Establishing a trail of elements and spaces of interest to children and families.

· Developing a map of elements and spaces of interest to children and families.

12. Community and Stakeholder Engagement

12.1. This project has emerged from consultation with the community, including children of different ages, about the needs of children and families in the city centre.

12.2. The Director City Planning, the Executive Manager City Design, Building owners, the City’s Asset Managers, and other relevant stakeholders for each of the confirmed proposed sites have been consulted in the preparation of this report.

12.3. As a part of the development of the artwork, artists will be provided with a summary of the IMAGINE BUILD PLAY project and associated consultation projects to date, including contributions by children and young people, and shortlisted artists will be required to attend a briefing to meet local stakeholders and talk with local children about their thoughts for the project.

12.4. Representatives of the local Reggio Emilia Network, which develops innovative learning programs for children, will be invited to participate in the artist briefing and artist selection process.

13. Delegation

13.1. This matter is delegated to the Council.

As signatory to this report, I certify that, pursuant to Section 55(1) of the Local Government Act 1993, I hold no interest, as referred to in Section 49 of the Local Government Act 1993, in matters contained in this report.

Kimbra Parker

Manager Community and Cultural Programs

Philip Holliday

Director Community Development

Date: 14 June 2017

File Reference: F17/3685; 2016-0676

Attachment a: Potential Site - Collins Court ⇩

Attachment b: Potential Site - Victoria Walk ⇩

Item No. 4.2

Agenda (Open Portion)

Special Community, Culture and Events Committee Meeting

Page 15

19/6/2017

REPORT TITLE: 2017-18 Fees and Charges - Salamanca Market

REPORT PROVIDED BY: Director Community Development

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to seek approval of the proposed fees and charges for Salamanca Market for the 2017-18 financial year.

1.2. Setting appropriate fees and charges for the Council’s programs and services provides a sustainable framework within which programs and services can be delivered.

2. Report Summary

2.1. The Licence Agreement between Salamanca Market stallholders and the Hobart City Council provides for site fees to be adjusted annually by Consumer Price Index (CPI) (Hobart) for the previous 12 months with revaluation every 5 years.

2.2. Accordingly, the site rentals are now due to be valued for the 2017-18 financial year.

2.3. Opteon Property Group was engaged to undertake the review of the Salamanca Market site fees.

2.4. The new valuation proposes increasing site fee charges between 55% and 75% on the 2016-17 fees; however the current Licence Agreement places a 10% cap on fee increases which would result in $73,876 additional income each year for the next 5 years, not taking into account yearly CPI movement.

2.5. The valuer has also recommended removing the current mobile food business fees and replacing them with two new premiums; consume on site and combination to provide for a fairer and more equitable fee structure for food vendors.

2.5.1. However, as detailed in the Five Year Review of Salamanca Market Stallholder Licence Agreement report, food stallholders have expressed strong opposition to this model.

2.5.2. As a result, it is not proposed to proceed with the premium at this time, but instead retain the mobile food business fees.

2.6 It is understood that a petition objecting to the proposed implementation of the consume on site food premium fee has been lodged to the Council for tabling at the meeting of 19 June 2017.

3. Recommendation

That the schedule of fees and charges for Salamanca Market, marked as Attachment D to this report, be adopted effective from 1 July 2017 for the 2017-18 financial year.

4. Background

4.1. The Licence Agreement between Salamanca Market stallholders and the Hobart City Council provides for site fees to be adjusted annually in accordance with movements of the Consumer Price Index (CPI) (Hobart) for the previous 12 months with revaluation by a suitably qualified valuer every 5 years.

4.2. Site rentals were last revalued in 2013. Accordingly, the site rentals have been revalued for the 2017-18 financial year.

4.3. Opteon Property Group, who have previously provided valuations on Salamanca Market site fees to the Council, were engaged to undertake the review of the Salamanca Market site fees.

4.4. The current sites fees presently charged at Salamanca Market, exclusive of GST and insurance levy are:

Site Type	Description	Fee and Market (ex. GST)
A Sites	Side aisle sites located from the Law Courts to Silos, which could be seen to be the premium sites at the Market	$67.94
B Sites	Smaller centre aisles sites within the main body of the Market	$54.33
C Sites	Smaller sites at the Davey Street end of the Market	$50.16
Split Centre Aisle Site	Centre aisles sites with only one service area	$43.74
Mobile Food Business A Sites	Located within A Sites, and business is on wheels	$83.63
Mobile Food Business B Sites	Located within B Sites, and business is on wheels	$78.40
Mobile Food Business C Sites	Located within C Sites, and business is on wheels	$73.17
Casual Sites	15% higher than the relevant fee

4.5. The valuer’s report, Rental Valuation Report – Salamanca Market is provided at Attachment A to this report.

VALUATION

4.6. In determining “a fair market rental”, the valuer gave particular consideration to the recent trading history at the Market, including the sale of individual businesses, and comparable licence fees with other markets including Hobart Farm Gate Market, MONA, Queen Victoria Market, and Harvest Launceston Farmers’ Market, amongst others.

4.6.1. The following is a snapshot of those relevant markets’ stall fees to allow a comparison. It is not understood/known if these fees include an insurance component:

Market	Type	Price (ex. GST)
MONA	Food stall	$163.64
MONA	Art/Craft	$90.91
Harvest Launceston Farmers’ Market	Annual membership	$30.00
	Unpowered single site	$60.00
	Unpowered double site	$120.00
	Powered single site	$70.00
	Powered double site	$140.00
Farm Gate Market	Standard site 3m x 3m	$72.73
	Corner site 3m x 3m	$95.45
	Standard site (2 businesses operating)	$109.09
	Corner site (2 businesses operating)	$127.27
	Standard food to consume onsite	$90.00
	Combination site	$109.09
	Coffee site	$181.82

4.7. The valuer also gave consideration to:

· Submissions made by the Salamanca Market Stallholders’ Association (SMSA) and the Hobart City Council which are provided at Attachments B and C respectively to this report.

· Current tourism and general conditions prevailing at the date of valuation.

· The size of particular stalls.

· The specific location of stalls and observed pedestrian traffic and customer characteristics of the Market.

4.8. In analysing other markets the valuer cited that the evidence indicated a premium was applied for food stalls and casual lettings.

4.9. This report needs to be considered in the context of the five-yearly review of the Salamanca Market Stallholder Licence Agreement. A revised draft Licence was the subject of a report to the June Community, Culture and Events Committee at which time it was endorsed by the Committee for consultation purposes.

Casual Sites

4.10. The valuer determined that casual lettings in comparable markets achieve a slightly higher fee.

4.11. The valuer determined that a fee 15% higher than the relevant fee is appropriate.

4.11.1. This is in line with the current stallholder fee structure.

4.12. Considerations for this structure include that no financial outlay is required to purchase an existing licenced Market business, the casual stallholder must attempt to trade only every three months to continue as a certified casual stallholder, and stall fees only need to be paid four days out from Market day.

Mobile Food Business

4.13. Under the current fees and charges structure mobile food businesses have separate rates applied as detailed in the table at paragraph 4.4 of this report.

4.14. The mobile food business fee has historically been charged to those stallholders selling ready-to-eat food and/or beverages, and their business is on wheels; such as a van.

4.15. It was proposed, in line with the valuer’s advice, that to provide a more equitable fee arrangement a premium be established at two levels:

4.15.1. Consume on site: foods that are consumed on site such as hot foods, drinks, coffees, pasties, etc.

4.15.2. Combination: stalls that sell food that that is likely to be consumed at home such as fruit leathers, breads, bulk biscuits and cakes, but that may also be consumed on site.

4.16. The premium would act as a flat charge in addition to the site fees, and would replace all mobile food business charges at Salamanca Market.

4.17. This would have impacted on 18 existing mobile food businesses, with their site fees changing between ($10.61) and $18.67 per Market day, and 20 tent based operators which would have seen their site fees increase by $25 per Market day.

4.18. The SMSA endorsed this proposed change as part of its consideration of the draft Licence Agreement currently with stallholders.

4.19. At the request of the SMSA, two meetings between Council officers and those stallholders who would be affected by this reclassification have been held to explain this Licence change; the first on 17 May 2017, and the second on the 29 May 2017.

4.20. Concern around the fairness and application of the premiums and their associated fee amounts were raised by a majority of consume on site food and beverage stallholders at both meetings.

4.21. In addition to the submissions and verbal concerns, it is understood that a petition objecting to the proposed implementation of the consume on site food premium fee has been lodged to the Council for tabling at the meeting of 19 June 2017.

4.21.1 The petition requests the Council to:

· abolish the ‘mobile food stall’ category

· not create the ‘consume on site’ category for stallholders

· not charge a $25 per week food premium for ‘consume on site’ food stallholders.

4.21.2 The petition has collected 157 signatures from licensed and casual Salamanca Market stallholders.

4.22. After consideration of stallholder feedback, the proposed premium fees have been removed and existing mobile food business fees have been retained.

4.22.1. Given this proposal, subsequent advice was sought from Opteon Property Group who confirmed on 1 June 2017 that the three current mobile food business sites fees classifications have increased in value by greater than the cap of 10%.

4.22.2. It is proposed that further consideration be given to the possible passing on of costs such as electrical, gas and structural audits for those stalls that require them. These would mainly impact consume on site food businesses. The capacity to pass on these charges would need further amendments in the Licence Agreement, which could be undertaken subject to further stallholder and SMSA consultation, at some time over the five year life of the proposed revised Licence Agreement.

5. Proposal and Implementation

5.1. The following licence fees for stalls were assessed by the valuer in the below table.

5.1.1. As can be seen from the table, the valuer recommends increases of between 55% and 75% for all site types on current site fees.

5.1.2. It is important to note however that movement in site fees, as assessed by the valuer, is capped at 10% as per the current Licence terms.

5.1.3. Legal advice indicates that while this clause refers to year-on-year price movements, this cap also applies to those years when a revaluation is undertaken.

5.1.4. The licence agreement provides for site fees to be adjusted annually in accordance with movements of CPI for the previous 12 months.

5.1.5. As part of the ongoing consultation process informing the revised Licence, the SMSA has strongly indicated a reluctance to see a dilution of the 10% rise and fall clause. This is also supported by the Market administration, given that the Market needs to remain attractive to quality and innovative stallholders in an increasing competitive farm/craft market environment.

5.1.6. By way of context the average CPI increase applied to the Market in the last 3 years was 1.40% per year for each year.

5.1.7. The valuer’s proposed fees in line with the 10% cap is detailed in the following table (not including GST or insurance):

Site Type	2016/17 Fee (ex. GST)	Assessed 2017/18 Fee (ex. GST)	% Increase	Assessed 2017/18 Fee (ex. GST) with 10% cap applied
A Sites	$67.94	$105.00	55%	$74.73
B Sites	$54.33	$95.00	75%	$59.76
C Sites	$50.16	$85.00	69%	$55.17
Split Centre Aisle Site	$43.74	$75.00	71%	$48.11
Mobile Food Business A Sites	$83.63	N/A	N/A	$91.99
Mobile Food Business B Sites	$78.40	N/A	N/A	$86.24
Mobile Food Business C Sites	$73.17	N/A	N/A	$80.49
Consume on Site	N/A	$25.00	N/A	Not proposed to proceed at this time
Combination	N/A	$20.00	N/A	Not proposed to proceed at this time
Casual Sites	15% higher than the relevant fee	15% higher than the relevant fee	N/A	15% higher than the relevant fee

5.2. The Licence permits the SMSA to appoint a registered valuer to determine the SMSA’s Market site fee, however if the SMSA elects not to appoint a valuer then the new site fee would be the Council’s fee.

5.3. The SMSA has been provided with a copy of the valuer’s report.

5.3.1. Correspondence from the SMSA was received on 3 May 2017 advising that the Association saw no benefit in appointing a second valuer.

5.4. The SMSA and all licensed stallholders would be notified of the new site fees as it applies to their individual circumstances prior to the issuance of the 2017-18 site fee invoices.

5.5. The schedule of fee and charges for the site fees and all other fees and charges that apply to Salamanca Market are provided at Attachment D to this report.

6. Strategic Planning and Policy Considerations

6.1. The change of fees and charges aligns with:

The Capital City Strategic Plan 2015-2025, Goal 1 – Economic Development, Vibrancy and Culture “City Growth, vibrancy and culture comes when everyone participates in city life”.

Strategic Objective 1.3 – Vibrant city centre and suburban precincts

“1.3.1 – Support and deliver events, festivals and markets”.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. There is no impact on the current year operating result.

7.2. Impact on Future Years’ Financial Result

7.2.1. The proposed increases in site fees would add an estimated $73,876 (ex. GST) in income for Salamanca Market in 2017-18 financial year.

This increase in revenue would be reinvested in the Market through performing quarterly waste audits, and an increase in marketing and promotional activities; all designed to benefit stallholders and Market patrons.

7.2.2. This is some $31,702 (incl. GST) less than the stallholder fee income listed in the Salamanca Market function in the draft 2017-18 Annual Plan. This shortfall could be offset to some degree by reductions in expenditure in the areas of entertainment, promotions and marketing.

7.2.3. In this scenario, the Market would return a small surplus to Council of $92,999 (incl. GST).

7.2.4. Site fees would increase by Hobart CPI for the following four years.

7.2.5. If the Council also removed the existing mobile food business fees this would result in a further reduction in income of $24,239 (incl. GST).

8. Legal, Risk and Legislative Considerations

8.1. Clause 35 of the Stallholder Licence states that:

“Any year-on-year change in fee (including Site fee) is capped at a maximum of 10% (increase or decrease).”

8.2. Legal advice received confirms that the Council is unable to increase subsequent year increases by more than CPI, without a change to the Stallholder Licence Agreement.

8.3. Clause 89 of the Stallholder Licence states that:

“The Council will provide written notice to the Licensee of the proposed change to the terms or conditions of this Licence at least thirty (30) days prior to the commencement of these changes.”

9. Social and Customer Considerations

9.1. The modest increase in site fees of 10% is expected to have little effect on stallholder desire to continue being licensed stallholders.

9.2. The demand for stall sites has been recently verified with over 154 expressions of interest to be included in the approved casual stallholder pool.

10. Community and Stakeholder Engagement

10.1. Communication has been maintained with the SMSA throughout the process, including meeting with a representative from Opteon Property Group.

10.2. The Council has a formal Memorandum of Understanding with the SMSA which notes in part that the Council will assist the Association through the provision of information, provided that the Association does not release confidential details or information without the approval of the Council.

10.3. Assistance has also been provided by City officers with the SMSA’s submission to Opteon Property Group.

10.4. Any approved increases to the fee structure will be communicated to the SMSA and licensed stallholders prior to issuing the new Licence Agreement for 2017.

10.5. Two information sessions have been held for invited stallholders with products lines that meet the food premium definition on 17 May 2017, and again on 29 May 2017.

11. Delegation

11.1. This matter is delegated to the Council.

Philip Holliday

Director Community Development

Date: 15 June 2017

File Reference: F17/44696; 17/41

Attachment a: Rental Valuation Report - Salamanca Market ⇩

Attachment b: Revaluation Submission from the Salamanca Stallholders Association ⇩

Attachment c: Revaluation Submission from Hobart City Council ⇩

Attachment d: Schedule of Fees and Charges 2017-18 - Salamanca Market ⇩

Item No. 4.3

Agenda (Open Portion)

Special Community, Culture and Events Committee Meeting

Page 56

19/6/2017

REPORT TITLE: Five Year Review of Salamanca Market Stallholder Licence Agreement

REPORT PROVIDED BY: Director Community Development

1. Report Purpose and Community Benefit

1.1. This report presents the final 2017-2022 Salamanca Market Stallholder Licence Agreement for Council endorsement.

2. Report Summary

2.1. The current Salamanca Market Stallholder Licence Agreement was endorsed by the Council in 2012 and came into effect on 1 January 2013 and expires on 30 June 2017.

2.2. The current Licence states that it be reviewed every five years.

2.3. The Council at its meeting held on 24 April 2017 resolved the following:

“That: 1. The draft 2017-2022 Salamanca Market Stallholder Licence Agreement marked as Attachment A to item 6.1 of the Open Community, Culture and Events Committee agenda of 5 April 2017, be endorsed by the Council.

2. The endorsed draft 2017-2022 Salamanca Market Stallholder Licence Agreement be distributed to all licensed Salamanca Market Stallholders and the Salamanca Market Stallholders’ Association for review and comment.

3. Upon receipt of comments from all licensed Salamanca Market Stallholders and the Salamanca Market Stallholders’ Association, the final draft 2017-2022 Salamanca Market Stallholder Licence Agreement be the subject of a further report to the Council for final approval.”

2.4. Principal changes to the Agreement include:

· Extending the term until 2022.

· Streamlining and strengthening breach of conduct incidences.

· Ability to introduce a Trade Waste fee.

· Recognising Food Licences issued by any Local Government.

· Extending the definition of Exceptional Leave.

2.5. A final Licence Agreement 2017-2022 (Agreement) is attached for the Council’s approval, and is provided at Attachment A to this report.

2.6. The Agreement has had input from City staff, and the Salamanca Market Stallholders’ Association (SMSA), as well as external legal advice from Dobson Mitchell & Allport.

2.6.1. Additionally all licensed stallholders have been provided with a draft copy of the Agreement and afforded 30 days to review and provide comment.

2.7. If approved by the Council the draft Agreement would be distributed to all licensed stallholders for signature.

2.8. To allow sufficient time for stallholders to sign the new Agreement, it is proposed that the current Licence Agreement continues for each individual Licensee until the new Agreement is signed and received by the Council.

2.9. In accordance with the proposed terms and conditions of the Agreement, it is intended that the final and approved Agreement would come into effect on 1 July 2017 and be in place until 30 June 2022.

3. Recommendation

That:

1. The final 2017-2022 Salamanca Market Stallholder Licence Agreement marked as Attachment A to this report be approved by the Council.

2. The approved 2017-2022 Salamanca Market Stallholder Licence Agreement be distributed to all licensed Salamanca Market Stallholders for signature.

3. The current Salamanca Market Stallholder Licence Agreement continues to apply on an individual basis for each Licensee until the new Salamanca Market Stallholder Agreement is signed by each Licensee and received by the Council.

4. Background

4.1. The Agreement between Salamanca Market licensed stallholders and the Council provides the legal framework within which stallholders can trade at the Salamanca Market (the Market).

4.2. The Agreement clarifies the requirements and responsibilities of both licensed stallholders and the Council to ensure the efficient, safe and sustainable delivery of the Market.

4.3. The contract between licensed stallholders and the Council is reviewed every five years.

4.4. Casual stallholders who are not signatories to the Agreement operate within the Market under a separate Salamanca Market Casual Stallholder Agreement.

4.4.1. The Salamanca Market Casual Stallholder Agreement is derived from the Licence Agreement. Therefore any relevant changes endorsed by the Council to the 2017-2022 Agreement will subsequently be made to the Salamanca Market Casual Stallholder Agreement.

4.5. The current 2011-2016 Agreement is the result of negotiations between licensed stallholders, the SMSA, and the Council.

4.6. The Council at its meeting held on 24 April 2017 resolved the following:

4.7. The significant changes in this Agreement are:

Clause	Description of Change	SMSA Support
Throughout the Agreement	Defined SMSA Inc to recognise the stallholder representative body	Requested by the SMSA
3(c)	Provides the Council the right to change Market boundaries if prompted to for security or workplace health and safety reasons	Requested by the SMSA
4(a)	Extend the term of the new Agreement until 30 June 2022	Supported by the SMSA
8 & 9	In the event of conduct concerns, the Licensee’s response time has been reduced from 30 to 14 days to provide for a timely process	Supported by the SMSA
11(a)	Requires joint Licensees to now provide a written legal document agreeing with joint arrangement to Council to protect all Licensee parties	Supported by the SMSA
19	Allows the Council to undertake a broader range of actions in the event of a dispute	Supported by the SMSA
19(k) (l) & (m)	Allows the Council to take action if a Licensee becomes insolvent	Requested by the SMSA
20	Where a Licensee has breached the Agreement, the Council has introduced a 5 day rectification period	Supported by the SMSA
26	Where an Agreement has been cancelled, all monies owing to the Council now become due and payable	Supported by the SMSA
31	Reference to product line approvals approved to prior 1 July 2012 maintained	Requested by the SMSA
34	Provides the Council with the ability to record stallholder product lines more specifically	Supported to some degree by the SMSA, but operationally important
38	Introduces the ability to levy a Trade Waste fee, as TasWater is expected to begin charging during the next Agreement period	Supported by the SMSA
40	Reduces the absence notification period from 11 to 10 days to reflect improved Council administration processes	Supported by the SMSA
46(e)	Allows the Council to accept online payment methods depending on the outcomes of Project Phoenix	Supported by the SMSA
50	Extends the definition of Exceptional Leave	Supported by the SMSA
55	Requires the Licensee to participate in the Dispute Resolution Process prior to legal action	Supported by the SMSA
57(a) & (b)	Defines the Dispute Resolution Process steps and provides a 14 day period	Supported by the SMSA
73(b)	The Council will now recognise Food Licences issued by any Local Government body rather than just the City of Hobart	Supported by the SMSA
78	Strengthens the Council’s right over Market intellectual property	Supported by the SMSA
97	Introduces the ability to perform credit checks	Requested by SMSA

4.8. The Council endorsed the draft version of the Agreement at its meeting held on 24 April 2017.

4.9. As per the requirements of the current Licence Agreement, the Council provided a 30 day consultation period for stallholders, which allowed for submissions to the Council, and concluded on 26 May 2017.

4.9.1. In good faith, the Council permitted an extension to this consultation period of a further five days.

4.10. The Council is required to take into account the views of stallholders before deciding on any amendments to the Licence Agreement.

4.11. All 269 licenced Market stallholders were sent a copy of the draft Licence Agreement and were given a 30 day period (plus an additional period of five days) in which to provide their feedback.

4.12. Ten submissions were received during the consultation period and are provided at Attachment B to this report.

4.12.1. The principal concern from the majority of the submissions was concerning the new proposed premium charges for food stallholders that was contained in the draft version of the Agreement, as tabled below.

Stall Name	Site	Request/comment	Commentary
Art of Tea	224/248	Clause 14-16 be amended to allow current licenced stallholders to hold two licenses concurrently where the stallholder intends to sell their first business.	It would be unreasonable for a stallholder to hold two licenses pending sale as the Council is removed from the sale of business process and has no influence over timelines.
Fairy Floss Factory	189	The fairness of the consume on site premium be reviewed.	Both food premiums have been removed.
Tasmanian Small Fruits	43	Opposes the consume on site premium and the methodology used to determine.	Both food premiums have been removed.
Rachel Kyle Food Van	254	Opposes the consume on site premium and the methodology used to determine.	Both food premiums have been removed.
Salamanca Juice	156	Opposes the consume on site premium and the methodology used to determine.	Both food premiums have been removed.
Summer Delights	265	Opposes the consume on site premium.	Both food premiums have been removed.
Top Nosh	264	Opposes the consume on site premium.	Both food premiums have been removed.
Cantina Latina	49	Opposes the consume on site premium and the proposed amount of $25.	Both food premiums have been removed.
Todd Leale & Louise Stevenson	94	Clause 3A: Schedule 4 should be referenced.	External legal advice received advises this is unnecessary.
		Clause 3B: All site categories should be referenced.	External legal advice received advises this is unnecessary to protect the Market.
		Clause 19: Believes that this is an extreme measure.	This clause allows the Council to take appropriate action when necessary to protect the Market.
		Clause 20: Believes that this is unfair.	This clause allows the Council to take appropriate action when necessary to protect the Market.
		Clause 21: Believes 5 day rectification period is unreasonable.	Allows the change to occur prior to the next Market Day.
		Clause 21-22: Believes that this is an extreme measure.	This clause allows the Council to take appropriate action when necessary to protect the Market.
		Clause 39: Requests that a dollar limit be determined in the recovery of costs such as power.	Fees are already on a cost recovery basis only.
Todd Leale & Louise Stevenson (continued)	94	Clause 58 b: Believes there should be two officers agreeable in the decision making process.	The decision making process is within the delegated authority of the Manager Events and Salamanca Market.
		Clause 61: Council should not have the power to suspend, cancel or terminate.	This clause allows the Council to take appropriate action when necessary to protect the Market.
		Clause 62 b: Disputes placement of any costs of mediation or arbitration onto stallholder.	It is appropriate for the stallholder to pay for such costs.
		Clause 98: Disputes providing consent to PPSR and credit checks and asks that 7 days’ notice is provided.	This will be used for new stallholders to protect the Council’s revenue stream.
Viking Cones	167	Opposes the consume on site premium.	Both Food Premiums have been removed.

4.12.2. On the recommendation of the SMSA, and given the number of concerns raised, Council officers held two meetings during May 2017 with food stallholders to discuss the effect of removing the Mobile Food Business definition and adding the Consume on Site and Combination Premiums.

4.12.3. At the two meetings there was a significant amount of concern from food stallholders about the proposed introduction of premiums within the Agreement and this has been reflected in the submissions received.

4.12.4. It is understood that this matter may be the topic of a forthcoming petition to the Council.

4.12.5. After consideration of this feedback the proposed premiums have been removed from the Agreement and the reference to Mobile Food Business has been reinstated.

4.12.6. It is proposed however, that further consideration be given to the possible passing on of costs such as electrical, gas and structural audits for those stalls that require them. These costs would mainly impact the consume on site food businesses. The capacity to pass on these charges would need further amendments in the Licence Agreement, which could be undertaken subject to further stallholder and SMSA consultation, at some time over the five year life of the proposed revised Agreement.

5. Proposal and Implementation

5.1. It is proposed that the Council approve the final 2017-2022 Salamanca Market Stallholder Licence Agreement, shown at Attachment A to this report.

5.2. It is further proposed that the approved 2017-2022 Salamanca Market Stallholder Licence Agreement be distributed to all licensed Salamanca Market Stallholders for signature.

6. Strategic Planning and Policy Considerations

6.1. The review and redrafting of the Agreement supports the following Strategic Objective from the Capital City Strategic Plan 2015-2025, specifically:

Strategic Objective.3.1 - “Support and deliver events, festivals and markets.”

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. The proposed Agreement comes into effect on 1 July 2017 so there is no impact on the current year operating budget.

7.2. Impact on Future Years’ Financial Result

7.2.1. All changes to the valuation of Market sites resulting from the implementation of a new Agreement with Market stallholders would be incorporated into budget projections for 2017-18, and would be subject to the Council’s budgetary approval process.

7.2.2. As detailed in the Salamanca Market fees and charges report also on this agenda, the proposal in regard to the treatment of consume on site food and beverage businesses would result in some $31,702 less than the stallholder site fee income listed in Salamanca Market function in the draft 2017-18 Annual Plan.

7.2.3. This shortfall could be offset to some degree by reductions in expenditure in the areas of entertainment, promotions and marketing.

7.3. Asset Related Implications

7.3.1. There are no impacts on assets as a result of the implementation of the proposals detailed in this report.

8. Legal, Risk and Legislative Considerations

8.1. The Licence Agreement provides the legal framework within which licenced stallholders can trade at the Salamanca Market over a five year term.

8.2. The Agreement clarifies the requirements and responsibilities of both licensed stallholders and the Council to ensure the efficient, safe and sustainable delivery of the Market.

8.3. The Council’s Manager Legal and Governance has worked closely with staff from the Events and Salamanca Market Unit, as well as engaging Dobson Mitchell & Allport in the development of the draft revised Agreement.

9. Social and Customer Considerations

9.1. The implementation of an Agreement with licensed Salamanca Market stallholders provides clarity for community members and small businesses wishing to trade at the Market.

9.2. The Agreement provides the Council with a robust document that helps to ensure diversity and quality of stallholders trading at the Market, which provides the community, visitors and other businesses reliant on the Market with a high quality and engaging event.

10. Marketing and Media

10.1. The strong working relationship between the SMSA and the Council is something that can be built on and promoted to the wider community through communication and marketing.

10.2. While the implementation of a new licence agreement may not within itself be worthy of marketing, the ongoing marketing of the growing success of the Market and of individual stallholders certainly is and will continue to be delivered through the Market’s marketing strategy.

11. Community and Stakeholder Engagement

11.1. Significant stakeholder engagement has been undertaken in the development of the final Agreement, with the ongoing involvement of the SMSA throughout the review process.

11.2. All 269 licenced Market stallholders were sent a copy of the draft Licence Agreement and were given a 30 day period (plus an additional period of five days) in which to provide their feedback. Ten submissions were received.

11.3. All licensed stallholders now have been provided with the opportunity to review and comment on the proposed changes prior to the final draft being presented to the Council for approval.

11.4. Council officers held two meetings during May 2017 with food stallholders to discuss the effect of removing the Mobile Food Business definition and adding the consume on site and combination premiums.

11.5. Consultation has also been undertaken with the Manager Legal and Governance, Senior Operations Coordinator - Events and Salamanca Market, Advisor Divisional Projects Community Development, and the Salamanca Market Operations Coordinator, as well as externally with Dobson Mitchell & Allport.

12. Delegation

12.1. This matter is delegated to the Council.

Philip Holliday

Director Community Development

Date: 16 June 2017

File Reference: F17/53964; S33-060-02

Attachment a: Final Salamanca Stallholder Licence Agreement ⇩

Attachment b: Submissions from Stallholders ⇩

about people	We value people – our community, our customers and colleagues.
professional	We take pride in our work.
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responsive	We’re accessible and focused on service.
inclusive	We respect diversity in people and ideas.
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