HCC Coat of Arms.jpg
City of hobart

 

 

 

 

AGENDA

Finance and Governance Committee Meeting

 

Open Portion

 

Wednesday, 14 March 2018

 

at 5.00 pm

Lady Osborne Room, Town Hall


 

 

 

 

THE MISSION

Our mission is to ensure good governance of our capital City.

THE VALUES

The Council is:

 

about people

We value people – our community, our customers and colleagues.

professional

We take pride in our work.

enterprising

We look for ways to create value.

responsive

We’re accessible and focused on service.

inclusive

We respect diversity in people and ideas.

making a difference

We recognise that everything we do shapes Hobart’s future.

 

 


 

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 3

 

14/3/2018

 

 

ORDER OF BUSINESS

 

Business listed on the agenda is to be conducted in the order in which it is set out, unless the committee by simple majority determines otherwise.

 

APOLOGIES AND LEAVE OF ABSENCE

1.        Co-Option of a Committee Member in the event of a vacancy  4

2.        Confirmation of Minutes. 4

3.        Consideration of Supplementary Items. 4

4.        Indications of Pecuniary and Conflicts of Interest. 4

5.        Transfer of Agenda Items. 5

6          Reports. 6

Governance

6.1     Hobart City Vision Project: Presentation by Community Panellists. 6

6.2     Notice of Motion - Code of Conduct  - Bias and Conflict of Interest 18

Finance

6.3     Code for Tenders and Contracts - Tender and Quotation Exemption Reporting  37

7          Committee Action Status Report. 73

7.1     Committee Actions - Status Report 73

8.        Responses to Questions Without Notice. 91

8.1     Meeting With The New UTAS Vice Chancellor 92

8.2     Clarifying the Council's Current Procurement Policy. 93

9.        Questions Without Notice. 95

10.     Closed Portion Of The Meeting.. 96

 


 

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 4

 

14/3/2018

 

 

Finance and Governance Committee Meeting (Open Portion) held Wednesday, 14 March 2018 at 5.00 pm in the Lady Osborne Room, Town Hall.

 

COMMITTEE MEMBERS

Ruzicka (Chairman)

Thomas (Chairman)

Deputy Lord Mayor Christie

Zucco

Sexton

Cocker

Reynolds

 

ALDERMEN

Lord Mayor Hickey

Briscoe

Burnet

Denison

Harvey

 

APOLOGIES: Nil

 

 

LEAVE OF ABSENCE:

Alderman E R Ruzicka.

 

1.       Co-Option of a Committee Member in the event of a vacancy

 

 

 

 

2.       Confirmation of Minutes

 

The minutes of the Open Portion of the Finance and Governance Committee meeting held on Wednesday, 14 February 2018, are submitted for confirming as an accurate record.

 

 

 

 

 

 

3.       Consideration of Supplementary Items

Ref: Part 2, Regulation 8(6) of the Local Government (Meeting Procedures) Regulations 2015.

Recommendation

 

That the Committee resolve to deal with any supplementary items not appearing on the agenda, as reported by the General Manager.

 

 

4.       Indications of Pecuniary and Conflicts of Interest

Ref: Part 2, Regulation 8(7) of the Local Government (Meeting Procedures) Regulations 2015.

 

Aldermen are requested to indicate where they may have any pecuniary or conflict of interest in respect to any matter appearing on the agenda, or any supplementary item to the agenda, which the committee has resolved to deal with.

 

 

 

 

 

5.       Transfer of Agenda Items

Regulation 15 of the Local Government (Meeting Procedures) Regulations 2015.

 

A committee may close a part of a meeting to the public where a matter to be discussed falls within 15(2) of the above regulations.

 

In the event that the committee transfer an item to the closed portion, the reasons for doing so should be stated.

 

Are there any items which should be transferred from this agenda to the closed portion of the agenda, or from the closed to the open portion of the agenda?

 


Item No. 6.1

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 6

 

14/3/2018

 

 

6        Reports

Governance

 

6.1    Hobart City Vision Project: Presentation by Community Panellists

          File Ref: F18/20682;  F18/20682

Report of the Associate Director City Economy, Tourism and Events and the Project and Research Officer of 9 March 2018.

Stephen Poljansek, Raja Iyer, Kartika Franks, Samuel Watson, Nitesh Raj Pant/Lucinda Toynbee Wilson, Boshra Yazahmeidi, Amelia Lawrence and Sarah Wilcox, Community Panel Members from the Hobart City Vision Project, will address the Committee in relation to Item 6.1.

Delegation:     Council


Item No. 6.1

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 7

 

14/3/2018

 

 

REPORT TITLE:                  Hobart City Vision Project: Presentation by Community Panellists

REPORT PROVIDED BY:  Associate Director City Economy, Tourism and Events

Project and Research Officer

 

1.         Report Purpose and Community Benefit

1.1.     The purpose of this report is to present a summary of findings from the vision project community engagement, as background for the presentation of the vision put forward by Community Panellists.

1.1.1.     A considerably more detailed report on findings will accompany the draft vision document once it is compiled.

1.2.     Representatives from the Community Panel will be at the meeting to present their vision to the Aldermen.

1.2.1.     The work that the panellists will present is the culmination of their collaboration over four sessions.

1.2.2.     It will be presented as a first draft vision that will undergo further editing and wider community engagement.

2.         Report Summary

2.1.     The main period of community engagement for the vision project began in September 2017 and concludes with the Community Panellists’ presentation to Aldermen on 14 March 2018.

2.1.1.     The engagement involved five major phases, outlined in this report, with detailed information to be provided in subsequent reporting:

·      Phase 1: Talking to Hobart

·      Phase 2: City Forum

·      Phase 3: Wider engagement

·      Phase 4: Stakeholder workshops

·      Phase 5: Community Panel

2.2.     The presentation by panellists represents the culmination of their work over four sessions in February 2018.

2.2.1.     Their presentation will focus on an overarching vision statement, along with long-term vision statements, objectives, and strategies for eight focus areas, called pillars.

2.2.2.     These elements comprise the core of the community’s vision, which will become the draft vision document, in consideration of findings from the preceding stages of engagement.

3.         Recommendation

That the Council receive and note the presentation from Community Panellists, as the core input leading into a subsequent comprehensive project report and draft vision document.

 

4.         Background

4.1.     Aldermen will recall that two research projects helped to inform the Council decision to create a new, community-led vision document to guide the City’s strategic planning.

4.1.1.     A preliminary report evaluated changes that had occurred in Hobart since the first vision document was created in 2006.

4.1.2.     The Governance Committee received a presentation on that report, along with preliminary recommendations. On 1 March 2016, the Governance Committee decided inter alia:

That:

This memorandum and the attached report are for the information of Aldermen.

The work undertaken by Ms Field will be used as an input by officers in the development of the new vision project.

4.1.3.     A second report evaluated global trends in city visioning and long-range strategies, including document structures, content, and community engagement methods, and related initiatives. The report reviewed examples from over 60 cities in 37 countries.

4.1.4.     The Governance Committee received a presentation on that report, along with specific recommendations as to means of undertaking the project to create a new vision. On 6 March 2017, the Council decided inter alia:

That:

1.   The Council reaffirm its commitment to creating a new vision or long-range strategy for the City of Hobart

2.   The process to create a new vision commence in early 2017.

 

 

3.   The process to create the new vision involve broad-scale community engagement, including:

(i)     Both online and offline methods, including web and social media presence and a range of in-person interactions.

(ii)    Incorporating techniques of relevance to long-range strategy, such as strategic foresight, systems thinking, and participatory democracy.

(iii)   Building vision-specific partnerships with key stakeholders, such as the University of Tasmania and metropolitan local government entities.

(iv)   Wherever practicable, entering into direct dialogue with leading cities in relation to the development and measurement of individual and aspirational visions, to assist the process.

4.   The process to create the new vision involve comprehensive pre-engagement planning, including:

(i)     A dedicated communications strategy, including provisions for project branding, marketing and messaging.

(ii)    A dedicated research and evaluation strategy, including provisions for data collection and analysis.

5.   Regular updates be provided to ELT and the Council.

4.2.     A national expression of interest process was undertaken, to seek consultants to undertake some elements of the vision project.

4.2.1.     Two requests for quote were circulated in mid-2017, one for the community panel and wider engagement, and one for communications and marketing.

4.2.2.     A Hobart-based consortium of consultants, under the banner of The20 (a communications and marketing agency, formerly Clemenger Tasmania) was engaged.

4.2.3.     The20 put forward a unique and integrated approach to engagement, in particular the use of in-depth interviews feeding into a narrative expression of Hobart identities and characteristics.

 

 

4.3.     The major phase of the vision project community engagement began in September 2017 and is now largely complete.

4.3.1.     A comprehensive analysis of engagement findings will comprise a subsequent report, as a means of introducing the draft vision document itself. The purpose of the information in this section is to provide a brief background as to the process that fed into the Community Panel and their presentation.

4.3.2.     This subsequent report will include more detailed information about participant recruitment, participant demographics, evaluation findings, and other project characteristics and outcomes.

4.3.3.     Phase 1: Talking to Hobart

·      The first phase involved 214 one-on-one interviews with greater Hobartians who live, work, study, and access services and amenities in Hobart LGA, conducted by consultants from The20 and the City of Hobart project manager.

·      Roughly half of participants were recruited as a random stratified sample through market research company, EMRS. The remainder were recruited through City of Hobart and The20’s databases and contacts, which a focus on thematic diversity (e.g. representation from creative industries and entrepreneurs).

·      Detailed information about participant demographics will be provided in a subsequent report.

·      Aldermen and Directors from the City of Hobart were also interviewed as part of this phase.

·      Topics discussed in interviews included:

What brought you to Hobart or what has kept you here, if you chose this place?

What are you most and least proud of?

What could only happen here?

What is an example of Hobart at its best?

·      The aim was to find the sources of pride in Hobart—starting the project from what people love, rather than what they want to fix.

·      Major themes heard in the interviews were shared through 20 blog posts at www.onlyinhobart.com.au.

·      The major themes were brought together into a Hobart Story, a narrative piecing together the major themes in an aspirational style. The Story was a core input to the Community Panel (Phase 5) and can be viewed at www.onlyinhobart.com.au/contributions

4.3.4.     Phase 2: City Forum

·      The most visible public event, the City Forum was a two-day workshop at City Hall, attended by 116 people from across the Hobart metropolitan area.

·      Participants chose from eight perspective groups (the percentage of participants who selected each area is shown in brackets):

Interested in development and the environment (39%)

(A little bit) creative (21%)

Keeping our city in business (12%)

Passionate about sport, games, the outdoors or tech (10%)

Someone who helps and cares (9%)

Helping people learn new things (6%)

Leaders of tomorrow (and today) (3%).

·      Further details on participant demographics will be provided in a subsequent report.

·      The central activity of the forum was the creation of pillars, focus areas or categories for thinking about the future of Hobart. Participants voted on their preferred pillars, which were considered alongside vision project research findings from earlier stages of the project.

·      The pillars taken forward to the Community Panel were:

Community inclusion and participation

Creativity and culture

City economies

Natural environment

Movement and connectivity

Land use and development

Urban design and sense of place

Governance and civic involvement.

 

·      Participants also workshopped principles: what they believed that ‘we need to apply as individuals and as a city to achieve the future we have talked about’. Participants voted on their preferred principles, which were compiled and copyedited by The20:

We are transparent and accountable in our decision making.

We value and respect our natural, built, cultural and Aboriginal heritage.

We are inclusive in our engagement.

We foster distinctiveness and diversity.

We value the human scale of our city.

Change must lead to improvements for our people, our environment and our place.

We put future generations at the heart of our thinking.

 

4.3.5.     Phase 3: Wider engagement

·      The main feature of wider community engagement was a survey in the City News, sent to every residence and business in Hobart, and posted on Your Say Hobart, resulting in 527 responses.

·      There were three pop-ups in November 2017, at Farm Gate Market, Salamanca Market, and the Christmas tree lighting, where people could complete postcards about what they love about Hobart. The postcards were displayed at the City Forum.

·      A workshop with 60 Hobart primary school students, as part of Children’s Week celebrations, was undertaken, and a report compiled. The report was shared with Community Panellists for their consideration.

·      Broader public engagement through formal and informal media occurred during this stage, including:

A Talking Point and advertisements in the Mercury

Posters displayed in various locations around Hobart

Emails circulated by Council staff and UTAS.

·      Further details on media and communications will be provided in a subsequent report.

 

 

4.3.6.     Phase 4: Stakeholder workshops

·      Three, two-hour workshops attended by 46 key stakeholder representatives were undertaken. Details on attendance will be provided in a subsequent report.  Broadly speaking attendance was from business, developers, the community sector and key individuals that the City has regular dealings with.

·      Participants responded to the Hobart Story and reflected on the key opportunities and challenges under each pillar area.

·      Approximately 90 organisations were invited to send representatives to the workshops. Just under 200 more were sent invitations to provide a written submission that would be given to the panel to consider, although only five organisations responded.

·      Stakeholders will be invited to comment on the draft vision when it is released to the public.

4.3.7.     Phase 5: Community Panel

·      A group of 50 community members and businesspeople, who deliberated over the inputs from the previous stages and drafted a new vision of the city.

·      Panellists were recruited and selected primarily through EMRS, to be representative of the City and its’ constituents with some demographic gaps fulfilled through direct expressions of interest through City of Hobart databases.

·      Details on panellist demographics and recruitment and selection methods will be provided in a subsequent report.

4.4.     The Community Panel deliberations were the culmination of the engagement program to date.

4.4.1.     Panellists met over four sessions, on 8 and 16 February (from 5:30 to 9:30pm) and 17 and 24 February (from 9am to 5pm).

4.4.2.     Panellists self-selected into groups based on the eight pillars derived from the City Forum.

4.4.3.     They had the opportunity to review findings from the aforementioned stages of engagement, vision project reports to date, and topic-specific documentation.

 

4.4.4.     Panellists also heard from 58 contributors with expertise in the relevant pillar topics. The contributors came from diverse organisations, such as the University of Tasmania, CSIRO, Tasmanian chapters of peak bodies, and the Tasmanian Government. They joined 2-3 City of Hobart staff members in each pillar area for discussions with panellists.

4.4.5.     The panellists, as an overall group, voted on a preferred vision statement to headline the draft vision document.

4.4.6.     The panellists, in pillar groups, created topic-specific vision statements, objectives, and strategies that they wished to recommend to the City of Hobart.

4.5.     The remainder of the community engagement program will be completed following the presentation by Community Panellists. Next steps include:

4.5.1.     Building on the Community Panel’s vision documentation, the core of the new vision, to incorporate additional findings from the preceding engagement stages

4.5.2.     Submission of the draft vision document to panellists for their review and feedback

4.5.3.     Submission of the draft vision document to the Council for endorsement to go out to the community for wider engagement

4.5.4.     A period of wider engagement to seek feedback from Hobart communities and stakeholders, including participants in previous project stages

4.5.5.     A final round of edits based on wider engagement findings and subsequent feedback from panellists

4.5.6.     Submission of the final draft to the Council for approval

4.5.7.     The release of a final vision document.

4.6.     Once the vision document has been finalised, a new body of work will be undertaken, to integrate the vision through and into the City of Hobart’s strategic planning framework and create a suitable strategic measurement system that will measure progress.

5.         Proposal and Implementation

5.1.     The Community Panel deliberations were the culmination of the vision project community engagement to date.

5.2.     The presentation by panellists covers the major aspects of their work, and therefore the vision elements that their respective pillar groups agreed were the most valuable.

5.3.     The draft vision document will be a reflection the Panel’s deliberations, the wider community’s contributions through previous stages, and the City of Hobart’s capacity to provide strategic leadership, through weaving together the major themes.

5.4.     It is proposed that the Council receive and note the Panellists’ presentation, as the core input leading into a subsequent comprehensive project report and draft vision document.

 

6.         Strategic Planning and Policy Considerations

6.1.     Creating a new vision document inherently affects City of Hobart strategic planning and policy.

6.1.1.     The resulting document will provide a new strategic framework for the City, superseding Hobart 2025: A strategic framework.

6.2.     Adopting the proposal will make City of Hobart strategic planning more relevant and aligned with community values, as the panellists are presenting the results of 24 hours of deliberations.

7.         Financial Implications

7.1.     Funding Source and Impact on Current Year Operating Result

7.1.1.     Should the Council endorse the proposal set out in this report, there will be no notable impact on the current year operating result, as the major phase of engagement has concluded.

7.2.     Impact on Future Years’ Financial Result

7.2.1.     Impact on the 2018-19 operating results depends on the exact timing and scale of the projects to integrate the community’s vision through the strategic plan, and to create a suitable strategic measurement system to track progress against the strategic plan.

7.2.2.     Both stages will likely required input from consultant(s).

7.3.     Asset Related Implications

7.3.1.     None arise from this report.

8.         Legal, Risk and Legislative Considerations

8.1.     Although there is no legal requirement to adopt Community Panel recommendations, considering their input will yield benefits to Council activities that are legislatively required, such as strategic planning.

8.2.     The use of a community panel for the vision project will have positive impacts on the City of Hobart’s ability to manage risk.

8.2.1.     The Community Panel represented a cross-section of Hobart communities, including businesspeople, providing deep insights into areas of importance for the community.

8.2.2.     The resulting information will make the vision (and thus Council strategic planning) more relevant to the community at large and can thus more accurately inform risk management approaches.

9.         Environmental Considerations

9.1.     A group of panellists deliberated specifically on environmental topics—directly, through the Natural environment pillar, and indirectly, through discussions on transport, urban design, and other areas.

9.1.1.     The Aldermen will note specific mention of environmental considerations by panellists in their presentation, as a key element of the overall vision.

10.      Social and Customer Considerations

10.1.   The Community Panel proceedings were a first for the City of Hobart and yielded many lessons that could be applied to social and customer considerations.

10.1.1.  It is important to give due consideration and feedback to panellists and the community and staff members who have been involved so they can see and comment on the results of their work.

11.      Marketing and Media

11.1.   There are significant marketing and media opportunities associated with receiving the panellists’ recommendations.

11.1.1.  These include publicising the draft documents through traditional channels, as well as with other organisations who may undertake similar processes.

11.2.   As stated in Section 4.3.5, further details on media engagement and opportunities to date will be discussed in a subsequent report.

12.      Community and Stakeholder Engagement

12.1.   The panel deliberations, and their recommendations, involved significant customer and stakeholder engagement.

12.1.1.  As outlined in this report, the panel received substantial reporting on previous engagement stages.

12.1.2.  Given the time constraint on panel proceedings, these findings will be considered in compiling the draft vision document, to ensure major themes are represented.

12.1.3.  Significant internal and external engagement was undertaken, and it is critical to project success that the panel’s work be communicated to those who have participated so far.

12.1.4.  It will likewise be important to raise awareness about the draft and final vision documents so that the panel’s work can be seen and considered by the wider community.

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.

 

Tim Short

Associate Director City Economy, Tourism and Events

Marisa McArthur

Project and Research Officer

 

Date:                            9 March 2018

File Reference:          F18/20682;  F18/20682

 

 

  


Item No. 6.2

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 18

 

14/3/2018

 

 

6.2    Notice of Motion - Code of Conduct  - Bias and Conflict of Interest

          File Ref: F18/7408; 15/153-167

Report of the General Manager of 9 March 2018 and attachments.

Mr David Morris, Partner, Local Government, Environment, Planning & Development Law, from Simmons Wolfhagen, will be in attendance at the meeting for the purposes of answering questions from the Committee in relation to Item 6.2.

Delegation:     Council


Item No. 6.2

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 19

 

14/3/2018

 

 

REPORT TITLE:                  Notice of Motion - Code of Conduct  - Bias and Conflict of Interest

REPORT PROVIDED BY:  General Manager

 

1.         Report Purpose and Community Benefit

1.1.     The purpose of this report is to respond to a Notice of Motion, adopted by the Council at its meeting of 20 November 2017 requesting a report in relation to the legal issues around decision making of the Council and the provisions of the Model Code of Conduct.

2.         Report Summary

2.1.     A motion was adopted by the Council at its meeting of 20 November 2017 in relation to the provisions of the Aldermanic Code of Conduct relating to conflicts of interest and specifically in relation to the materiality test included within the Code.

2.2.     That motion required that legal advice be obtained in relation to these provisions and this was sought from Simmons Woflhagen.  The advice concludes that:

2.2.1.     The cornerstone of all Council decision making are the rules of natural justice which are codified within Part 1 of the Code of Conduct – requiring a decision to be made in a manner which is fair and reasonable in all the circumstances.

2.2.2.     Alderman should always approach considerations of pecuniary conflict of interest by reference to Part 5 of the Local Government Act 1993.  A pecuniary interest identified as a ‘conflict of interest’ by operation of Part 5 of the Act will always be a material conflict of interest.

2.2.3.     Decisions that are made by public authorities in breach of the rules of natural justice and associated principles of procedural fairness are open to challenge as to their validity in the Courts.  A successful challenge may require the decision to be made again in accordance with the law and also have significant cost consequences and reputational damage.

2.3.     It also provides guidance for Aldermen in relation to determining whether they have a non-pecuniary interest on a particular matter.

2.4.     It also highlights some concerns with respect to the drafting of the Code of Conduct and it is proposed that the Council write to the Director of Local Government conveying those concerns.

 

3.         Recommendation

That:

1.      The Council note the advice provided by Simmons Wolfhagen dated 16 February 2018.

2.      The Council write to the Director of Local Government and Local Government Association of Tasmania expressing its concern with the materiality test in the Code of Conduct.

4.         Background

4.1.     At its meeting of 20 November 2017 the Council adopted the following motion:

4.2.     That the General Manager prepare an urgent report that advises the Council on:

4.2.1.     The legal principles that underpin Part 1 of the Aldermanic Model Code of Conduct relating to Decision Making and bringing an open mind to decision making (bias);

4.2.2.     The requirements that Aldermen should follow in order to determine if they have a conflict of interest pursuant to Part 2 of the Aldermanic Code of Code and in particular how the ‘materiality’ test should be applied under Part 2 - 6 of the Code;

4.2.3.     The impact any breach of the above Parts of the Code may have on any decision taken by the Council; and

4.2.4.     Requesting the Local Government Office to either provide clarification of the “materiality” provision in the Aldermanic Code of Conduct such that Codes of Conduct do not need to be resorted to in the first instance, or request the Minister to seek its removal altogether.

4.3.     In addition the Council resolved that the Lord Mayor write to the Director of Local Government, Minister for Local Government, the Integrity Commission and other appropriate entities, as determined by the General Manager, seeking clarification of the provisions with the Model Code of Conduct as referenced in the motion.

4.4.     The Minister for Local Government and the Integrity Commission were written to by the Lord Mayor on 22 December 2017.  The Director of Local Government was not written to as he circulated correspondence to all councils dealing with this matter pre-emptively which was distributed to all Aldermen via email and uploaded to the Hub.

4.5.     In relation to the substantive part of the motion, the advice of Simmons Wolfhagen was obtained.  That advice is included as Attachment A to this report.

4.6.     The advice concludes that:

4.6.1.     The cornerstone of all Council decision making are the rules of natural justice which are codified within Part 1 of the Code of Conduct – requiring a declension to be made in a manner which is fair and reasonable in all the circumstances.

4.6.2.     Alderman should always approach considerations of pecuniary conflict of interest by reference to Part 5 of the Local Government Act 1993.  A pecuniary interest identified as a ‘conflict of interest’ by operation of Part 5 of the Act will always be a material conflict of interest.

4.6.3.     Decisions that are made by public authorities in breach of the rules of natural justice and associated principles of procedural fairness are open to challenge as to their validity in the Courts.  A successful challenge may require the decision to be made again in accordance with the law and also have significant cost consequences and reputational damage.

4.7.     The advice also provides guidance to Aldermen in how to determine if they have a conflict of interest and how to apply the materiality test.  This is included at paragraph 2.20 of the advice.

4.8.     As mentioned above, the Director of Local Government wrote to all councils on 20 December 2017 in relation to this issue.  In that correspondence the Director provided some practical guidance with respect to the operation of materiality test within the Code of Conduct.  Attachment B to this report is a copy of that correspondence.

4.9.     In addition, however, the Director noted feedback in relation to the review of the Code has included a proposal to remove the materiality test, so that in principle any ‘grey area’ is removed.  The Director noted that this proposal has merit.

4.10.   The advice from Simmons Wolfhagen noted particular concerns with the operation of the Code of Conduct in this respect.  It establishes a two-stage requirement that an Alderman first identify a conflict of interest and then secondly determine whether or not that conflict is ‘so material that it requires removing himself or herself physically from any Council discussion and remaining out of the room until the matter is decided by the Council’.

4.11.   To quote the advice:

4.11.1.  In my opinion, this process is fraught, confusing and is out of step with the way in which non-pecuniary conflict of interest is dealt with in other jurisdictions. It is my view that community expectation of the conduct of Alderman requires that they deal and should be required to deal only with non-pecuniary conflict of interest which is material. Yet this code of conduct requires declarations of non-pecuniary interest, even if they are not material. The consequence is that Alderman will be always exposed to the risk of code of conduct complaints on the basis of an allegation that they have failed to act in good faith and exercise reasonable judgment in determining whether or not a conflict of interest was in fact a material conflict of interest which required further action under Part 2 – 6.

4.12.   The advice ultimately recommends a ‘way forward’ which is legislative amendment to remove the ‘materiality test’ from the Code of Conduct.

4.13.   In light of the correspondence received from the Director and the advice from Simmons Wolfhagen it is considered appropriate to write to the Director communicating the City of Hobart’s concerns with this provision of the Code of Conduct.

5.         Proposal and Implementation

5.1.     It is proposed that the Council note the advice provided by Simmons Wolfhagen dated 16 February 2018.

5.2.     It is also proposed that the Council write to the Director of Local Government and the Local Government Association of Tasmania expressing its concern with the materiality test in the Code of Conduct.

6.         Strategic Planning and Policy Considerations

6.1.     Clearly, good quality decision making is strongly aligned to the Council’s Capital City Strategic Plan.  Specifically Goal 5 – Governance states that leadership provides for informed decision-making for our capital city.

7.         Financial Implications

7.1.     Funding Source and Impact on Current Year Operating Result

7.1.1.     None arise from this report.

7.2.     Impact on Future Years’ Financial Result

7.2.1.     None arise from this report.

7.3.     Asset Related Implications

7.3.1.     None arise from this report.

8.         Legal, Risk and Legislative Considerations

8.1.     These have been addressed in the body of this report.

9.         Delegation

9.1.     This matter requires the consideration of 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.

 

N.D Heath

General Manager

 

 

Date:                            9 March 2018

File Reference:          F18/7408; 15/153-167

 

 

Attachment a:             Letter of Advice Code of Conduct - conflict of interest and bias - Simmons Wolfhagen - 16 February 2018

Attachment b:             Correspondence from Alex Tay, Director of Local Government, dated 20 December 2017   


Item No. 6.2

Agenda (Open Portion)

Finance and Governance Committee Meeting - 14/3/2018

Page 24

ATTACHMENT a

 

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Item No. 6.2

Agenda (Open Portion)

Finance and Governance Committee Meeting - 14/3/2018

Page 34

ATTACHMENT b

 

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Item No. 6.3

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 37

 

14/3/2018

 

 

Finance

6.3    Code for Tenders and Contracts - Tender and Quotation Exemption Reporting

          File Ref: F18/17602

Report of the Group Manager Rates and Procurement and the Director Financial Services of 9 March 2018 and attachments.

Delegation:     Council


Item No. 6.3

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 38

 

14/3/2018

 

 

REPORT TITLE:                  Code for Tenders and Contracts - Tender and Quotation Exemption Reporting

REPORT PROVIDED BY:  Group Manager Rates and Procurement

Director Financial Services

1.         Report Purpose and Community Benefit

1.1.     The purpose of this report is to seek Council’s approval of a change to the City’s quotation exemption reporting procedures and a resultant change to the City of Hobart Code for Tenders and Contracts.

1.2.     The community benefit is consistent with strategic objective 5.1 in the City of Hobart Capital City Strategic Plan 2015-25, being to deliver best value for money through strategic procurement decision-making.

2.         Report Summary

2.1.     This report proposes a change to the City’s quotation exemption reporting procedures, which the City is required to include in its code for tenders and contracts (Code).

2.2.     It is proposed that a report of all instances where an exemption has been granted from the requirement to seek 3 written quotations pursuant to the City’s Code is presented to Committee as at 31 March, 30 June, 30 September and 31 December each year.

2.3.     The proposed change requires an amendment to the City’s Code.

2.4.     It is proposed that the Council adopt the amended Code and make it available to the public in paper and electronic form.

3.         Recommendation

That:

1.      The Report ‘Code for Tenders and Contracts – Tender and Quotation Exemption Reporting’ be received and noted.

2.      A report of exemptions granted from the requirement to seek 3 written quotes be presented to the Finance and Governance Committee as at 31 March, 30 June, 30 September and 31 December each year. 

3.      The Council adopt the amended City of Hobart Code for Tenders and Contracts marked as Attachment A to this report.

4.      The General Manager be authorised to finalise the City of Hobart Code for Tenders and Contracts and arrange for it to be made available to the public in paper format from the Council’s Customer Service Centre and in electronic format from Council’s website.


 

4.         Background

4.1.     As outlined in the City’s Code for Tenders and Contracts (the Code) where a Council Contract does not exist the City has 4 procurement thresholds, being (GST exclusive):

4.1.1.     Up to $10,000 – 1 written quote shall be sought.

4.1.2.     $10,000.01 to $50,000 – 2 written quotes shall be sought.

4.1.3.     $50,000.01 to $249,999.99 – 3 written quotes shall be sought.

4.1.4.     $250,000 and over – Public Tender.

4.2.     Exemptions from the requirement to seek written quotes under the thresholds (4.1.1, 4.1.2 and 4.1.3) above can be sought from the appropriate financial delegate but only if an acceptable reason exists as outlined in the City’s Purchasing Policy and Guidelines, as follows:

(a)  where, in response to a prior notice, invitation to participate or invitation to tender:

-    no tenders were submitted; or

-    no tenders were submitted that conform to the essential requirements in the tender documentation;

(b)  where the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute goods or services exist for the following reasons:

-    the requirement is for works of art;

-    the protection of patents, copyrights or other exclusive rights or proprietary information; or

-    due to an absence of market competition for technical reasons.

(c)   for additional deliveries of goods or services by the original supplier that are intended either as replacement parts, extensions or continuing services for existing equipment, software or installations, where a change of supplier would result in the purchase of goods or services that do not meet requirements of interchangeability with existing equipment;

(d)  for goods purchased on a commodity market;

(e)  where there is an emergency and insufficient time to seek quotes for goods, services or works required in that emergency;

(f)   for purchases made under exceptionally advantageous conditions that only arise in the very short term, such as from unusual disposals, liquidation, bankruptcy or receivership and not for routine purchases from regular suppliers; or

(g)  for a joint purchase of goods or services purchased with funds contributed by multiple entities, where Council is one of those entities and does not have express control of the purchasing decision.

4.3.     As stated in regulation 27 of the Local Government (General) Regulations 2015, (the Regulations) the requirement for public tendering does not apply to the following:

a)   an emergency, if, in the opinion of the general manager, there is insufficient time to invite tenders for the goods or services required in that emergency;

b)   a contract for goods or services supplied or provided by, or obtained through, an agency of a State or of the Commonwealth;

c)   a contract for goods or services supplied or provided by another council, a single authority, a joint authority or the Local Government Association of Tasmania;

d)   a contract for goods or services obtained as a result of a tender process conducted by –

(i) another council; or

(ii) a single authority or a joint authority; or

(iii) the Local Government Association of Tasmania; or

(iv) any other local government association in this State or in another State or a Territory; or

(v) any organisation, or entity, established by any other local government association in this State or in another State or a Territory;

e)   a contract for goods or services in respect of which a council is exempted under another Act from the requirement to invite a tender;

f)    a contract for goods or services that is entered into at public auction;

g)   a contract for insurance entered into through a broker;

h)  a contract arising when a council is directed to acquire goods or services due to a claim made under a contract of insurance;

i)    a contract for goods or services, if the council resolves by absolute majority and states the reasons for the decision, being that a satisfactory result would not be achieved by inviting tenders because of

(i)         extenuating circumstances; or

(ii)        the remoteness of the locality; or

(iii)       the unavailability of competitive or reliable tenderers;

j)   a contract of employment with a person as an employee of the council.

4.4.     Currently all approvals for the exemptions from the requirement to Tender under section 4.3 (i) above are sought and reported through the formal Committee / Council approval processes.

4.5.     Section 333B of the Local Government Act 1993 (Tas) requires Council to adopt a Code for tenders and contracts.  That Code must include any prescribed matter.

4.6.     Regulation 28 states that the code must (j) establish and maintain procedures for reporting by the general manager to the council in relation to the purchase of goods or services in circumstances where a public tender or quotation process is not used.

4.7.     As required under Regulation 29(2), all instances where a public tender process has been exempted by Council are reported in the City’s Annual Report with the following details:

4.7.1.     A brief description of the reason for not inviting public tenders,

4.7.2.     A description of the goods or services acquired,

4.7.3.     The value of the goods or services acquired, and

4.7.4.     The name of the supplier.

4.8.     Public Tender exemption requests are not common.

4.9.     No changes are proposed to these Public Tender exemption reporting procedures.

4.10.   The current procedure on quotation exemptions is that Council pursuant to its Purchasing Policy and Guidelines requires quotation exemptions to be sought using an exemption reporting form, to be approved by the appropriate financial delegate who has authority to approve and saved with the purchase order in Council’s financial system.  There is no requirement to report these in Council’s annual report.

4.11.   It should be noted that while quotation exemptions are currently approved by the appropriate financial delegate, moving forward all quotation exemptions will be considered and approved by the relevant Divisional Directors. 

4.12.   While this is Council’s current agreed procedure, it has been challenging to obtain a corporate report of these approved quotation exemptions with current system constraints.  System improvements have recently been undertaken enabling a report of quotation exemptions granted to be more easily generated.

5.         Proposal and Implementation

5.1.     Noting that public tender exemptions are already reported to Council, it is proposed that quotation exemptions be reported to Council on a quarterly basis where the value of the expenditure exceeds $50,000.  That is, where 3 written quotations are required to be sought but an exemption from the requirement to seek the 3 written quotes is granted.

5.2.     It is proposed that quotation exemptions for a value under $50,000, that is where 1 or 2 written quotations are required to be sought but an exemption from that requirement is granted, are reported to the General Manager.

5.3.     It is considered more efficient from an administrative perspective for the General Manager to receive reports on quotation exemptions granted where the value of the expenditure is less than $50,000, that is, where 1 or 2 quotations are required to be sought. 

5.4.     The $50,000 threshold is also consistent with the threshold for reporting budget variances to Council and pursuant to Regulation 28(j) Council is only required to specify in its Code when 3 written quotations are required for contracts valued under the Tender threshold. 

5.5.     As this is a change to the City’s current procedures for exemption reporting pursuant to Regulation 28(j), the City’s Code will need to be amended.

5.6.     A marked up version of the proposed amended Code for Tenders and Contracts is attached – refer attachment A.

5.7.     It is proposed that the Council adopt the attached City of Hobart Code for Tenders and Contracts, as amended, and make copies available to the public in a paper format from the Customer Service Centre and in electronic format prominently from the Council’s website as required under section 333(B)(4) of the LG Act, which states that:

5.7.1.     The general manager is to make a copy of the council's code and any amendments to the code available –

5.7.1.1.      (a)     for public inspection at the public office during ordinary office hours; and

(b) for purchase at a reasonable charge; and

(c)   on its internet site free of charge.

5.8.     Moving forward a report on exemptions granted from the requirement to seek 3 written quotes will be presented as at 31 March, 30 June, 30 September and 31 December each year.

5.9.     It should be noted that the Code is currently the subject of annual review.  Any further changes arising from that review will be presented to Committee / Council in due course.

6.         Strategic Planning and Policy Considerations

6.1.     This report proposes amendments to the Hobart City Council Code for Tenders and Contracts.

6.2.     This report is consistent with strategic objective 5.1 in the City of Hobart Capital City Strategic Plan 2015-25, being to deliver best value for money through strategic procurement decision-making.

7.         Financial Implications

7.1.     Funding Source and Impact on Current Year Operating Result

7.1.1.     There are no financial implications arising from this report.

7.2.     Impact on Future Years’ Financial Result

7.2.1.     Not applicable.

7.3.     Asset Related Implications

7.3.1.     Not applicable.

8.         Legal, Risk and Legislative Considerations

8.1.     These are considered elsewhere in this report.

9.         Delegation

9.1.     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.

 

Lara MacDonell

Lara MacDonell

Group Manager Rates and Procurement

David Spinks

David Spinks

Director Financial Services

 

Date:                            9 March 2018

File Reference:          F18/17602

 

 

Attachment a:             Hobart City Council Code for Tenders and Contracts Draft v5   


Item No. 6.3

Agenda (Open Portion)

Finance and Governance Committee Meeting - 14/3/2018

Page 44

ATTACHMENT a

 

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Item No. 7.1

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 73

 

14/3/2018

 

 

7        Committee Action Status Report

 

7.1      Committee Actions - Status Report

A report indicating the status of current decisions is attached for the information of Aldermen.

REcommendation

That the information be received and noted.

Delegation:      Committee

 

 

Attachment a:             Status Report    


Item No. 7.1

Agenda (Open Portion)

Finance and Governance Committee Meeting - 14/3/2018

Page 74

ATTACHMENT a

 

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Item No. 8.1

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 92

 

14/3/2018

 

 

8.       Responses to Questions Without Notice

Regulation 29(3) Local Government (Meeting Procedures) Regulations 2015.
File Ref: 13-1-10

 

The General Manager reports:-

 

“In accordance with the procedures approved in respect to Questions Without Notice, the following responses to questions taken on notice are provided to the Committee for information.

 

The Committee is reminded that in accordance with Regulation 29(3) of the Local Government (Meeting Procedures) Regulations 2015, the Chairman is not to allow discussion or debate on either the question or the response.”

 

8.1    Meeting With The New UTAS Vice Chancellor

          File Ref: F18/14404; 13-1-10

Report of the Deputy General Manager of 14 March 2018.

8.2    Clarifying the Council's Current Procurement Policy

          File Ref: F18/20509; 13-1-10

Report of the Group Manager Rates and Procurement of 14 March 2018.

 

Delegation:      Committee

 

That the information be received and noted.

 

 

 


Item No. 8.1

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 93

 

14/3/2018

 

 

Memorandum:          Lord Mayor

Deputy Lord Mayor

Aldermen

 

 

Response to Question Without Notice

 

Meeting With The New UTAS Vice Chancellor

 

Meeting: Finance and Governance Committee

 

Meeting date: 14 February 2018

 

Raised by: Alderman Cocker

 

Question:

 

Has a meeting been organised for Aldermen to meet with the new University of Tasmania (UTAS) Vice Chancellor, Professor Rufus Black?

 

Response:

 

An opportunity for Aldermen to meet with the new Vice Chancellor and President at University of Tasmania, has been organised for Tuesday 1 May 2018. Professor Rufus Black will hold a briefing for Aldermen commencing at 5:00pm in the Lady Osborne Room.

 

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.

 

Heather Salisbury

Deputy General Manager

 

 

Date:                            8 March 2018

File Reference:          F18/14404; 13-1-10

 

 

  


Item No. 8.2

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 94

 

14/3/2018

 

 

Memorandum:          Lord Mayor

Deputy Lord Mayor

Aldermen

 

 

Response to Question Without Notice

 

Clarifying the Council's Current Procurement Policy

 

Meeting: Finance and Governance Committee

 

Meeting date: 14 February 2018

 

Raised by: Acting Lord Mayor Christie

 

Questions:

 

1.      Does the current Procurement Policy only allow for the purchase of goods from Tasmanian suppliers or agents?

2.      If the Procurement Policy does only allow for the purchase of goods from Tasmanian suppliers or agents, can the policy be amended to allow for the purchase of goods from all Australian suppliers or agents?

 

Response:

 

No, the City does not have a procurement policy of only allowing the purchase of goods from Tasmanian suppliers or agents.

 

The City has a number of procurement principles outlined in its Code for Tenders and Contracts and Purchasing Policy and Guidelines upon which the City’s purchasing is to be based.  These include:

·    obtaining value for money;

·    encouragement of open and effective competition;

·    probity, ethical behaviour and fair dealing;

·    accountability, transparency and reporting;

·    encouragement of the development of competitive local business and industry;

·    ensuring compliance with the law;

·    environmental protection and sustainability;

·    workplace health and safety; and

·    ethical and social procurement.

 

Encouraging the development of competitive local business and industry means that where local capacity exists, actively seeking to engage the local market and encourage their participation in Tender and Quotation processes.   It does not mean giving preferential treatment to local Service Providers. 

 

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.

 

Lara MacDonell

Lara MacDonell

Group Manager Rates and Procurement

David Spinks

David Spinks

Director Financial Services

 

Date:                            6 March 2018

File Reference:          F18/20509; 13-1-10

 

 

   


 

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 96

 

14/3/2018

 

 

9.       Questions Without Notice

Section 29 of the Local Government (Meeting Procedures) Regulations 2015.

File Ref: 13-1-10

 

An Alderman may ask a question without notice of the Chairman, another Alderman, the General Manager or the General Manager’s representative, in line with the following procedures:

1.         The Chairman will refuse to accept a question without notice if it does not relate to the Terms of Reference of the Council committee at which it is asked.

2.         In putting a question without notice, an Alderman must not:

(i)    offer an argument or opinion; or

(ii)   draw any inferences or make any imputations – except so far as may be necessary to explain the question.

3.         The Chairman must not permit any debate of a question without notice or its answer.

4.         The Chairman, Aldermen, General Manager or General Manager’s representative who is asked a question may decline to answer the question, if in the opinion of the respondent it is considered inappropriate due to its being unclear, insulting or improper.

5.         The Chairman may require a question to be put in writing.

6.         Where a question without notice is asked and answered at a meeting, both the question and the response will be recorded in the minutes of that meeting.

7.         Where a response is not able to be provided at the meeting, the question will be taken on notice and

(i)    the minutes of the meeting at which the question is asked will record the question and the fact that it has been taken on notice.

(ii)   a written response will be provided to all Aldermen, at the appropriate time.

(iii)  upon the answer to the question being circulated to Aldermen, both the question and the answer will be listed on the agenda for the next available ordinary meeting of the committee at which it was asked, where it will be listed for noting purposes only.

 


 

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 97

 

14/3/2018

 

 

10.     Closed Portion Of The Meeting

 

The following items were discussed: -

 

Item No. 1          Minutes of the last meeting of the Closed Portion of the Council Meeting

Item No. 2          Consideration of supplementary items to the agenda

Item No. 3          Indications of pecuniary and conflicts of interest

Item No. 4          Committee Action Status Report

Item No. 4.1       Committee Actions - Status Report

LG(MP)R 15(2)(d) and  (f)

Item No. 5          Questions Without Notice