Agenda of Finance and Governance Committee Meeting

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 5

17/4/2018

Finance and Governance Committee Meeting (Open Portion) held Tuesday, 17 April 2018 at 5.00 pm in the Lady Osborne Room, Town Hall.

COMMITTEE MEMBERS

Ruzicka (Chairman)

Thomas (Chairman)

Lord Mayor Christie

Deputy Lord Mayor Sexton

Zucco

Cocker

Reynolds

ALDERMEN

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 March 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 8

17/4/2018

REPORT TITLE: Procurement Strategy

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 present the inaugural City of Hobart Procurement Strategy 2018 – 2022 for consideration and approval.

1.2. The community benefits are outlined in attachment A.

2. Report Summary

2.1. An inaugural 5-year City of Hobart Procurement Strategy is presented to Council for consideration. If approved the document will be made public from the City’s website and form part of the City’s planning and reporting framework as a resourcing strategy.

2.2. The City of Hobart Procurement Strategy 2018-2022 has been developed following research and stakeholder consultation around a set of eight strategic objectives and goals that outline where the City needs to take its procurement activities over the period. These eight goals provide the structure and framework from which work and priorities will be planned and implemented over the next five years.

2.3. The Procurement Strategy brings together all the outcomes from the Procure to Pay Phoenix review, procurement risk management, improvement actions, recent project outcomes, new processes, system requirements and importantly creates a vision for the City’s procurement function for the future.

2.4. The aim of the Procurement Strategy is to ensure the City’s procurement activities are compliant with the law and undertaken within the City’s policy framework, efficiently and economically whilst realising the economic, social and environmental benefits for the City, aligning with the strategic objectives of the City of Hobart Capital City Strategic Plan 2015-2025.

3. Recommendation

That:

1. The report ‘Procurement Strategy’ be received and noted.

2. The City of Hobart Procurement Strategy 2018 – 2022 be approved and made available from Council’s website.

4. Background

4.1. The purpose of this report is to present the inaugural 5-year City of Hobart Procurement Strategy, which, subject to Council approval, will be made public from the City’s website and form part of the City’s planning and reporting framework as a resourcing strategy.

4.2. The Procurement Strategy brings together all the outcomes from the Procure to Pay Phoenix review, procurement risk management, improvement actions, recent project outcomes, new processes, system requirements and importantly creates a vision for the City’s procurement function for the future.

4.3. A strategic approach to procurement can achieve significant benefits for the City and the community and should be seen in the context of Council’s overall objectives. Whilst Council’s procurement activity has been and will remain focused on obtaining goods, services and works that demonstrate best value for money, it is also important that procurement decisions are taken in light of the broader objectives that Council is seeking to achieve, as outlined in the City of Hobart Capital City Strategic Plan 2015-2025.

4.4. The current economic climate brings challenges to both the public and private sectors. This means as a Council we need to use our spending power wisely and strategically to ensure that we support the economic, social and environmental needs of our community.

4.5. The aim of the Procurement Strategy is to ensure the City’s procurement activities are compliant with the law and undertaken within the City’s policy framework, efficiently and economically whilst realising the economic, social and environmental benefits for the City, aligning with the strategic objectives of the City of Hobart Capital City Strategic Plan 2015-2025.

4.6. The City of Hobart Procurement Strategy 2018 - 2022 is attached – refer attachment A.

4.7. The Procurement Strategy is detailed and outlines the benefits of a strategic approach to procurement, the challenges facing the City and the issues to be address. Given this, these points are not replicated here in this covering report.

5. Proposal and Implementation

5.1. It is proposed that Council approve the inaugural City of Hobart Procurement Strategy 2018-2022 and the strategy be finalised and implemented in accordance with the Actions set out in the document.

5.2. The procurement strategy has been developed following research and stakeholder consultation around a set of eight strategic objectives and goals that outline where the City needs to take its procurement activities over the period. These eight goals provide the structure and framework from which work and priorities will be planned and implemented over the next five years. Each of the eight goals are interrelated and is as important as the others in ensuring delivery of the procurement vision and mission. Actions relevant to one objective may also be relevant to others.

5.3. Each goal has been designed around a key procurement theme with actions to be undertaken to realise the goal over the period.

5.4. Performance against the action plan, together with procurement statistics will be reported to the City’s Executive Leadership Team on a quarterly basis as at 30 September, 31 December, 31 March and 30 June each year.

5.5. As a public document the Procurement Strategy will be made available from the City’s website. The Procurement Strategy will become part of the City’s planning and reporting framework as a resourcing strategy.

6. Strategic Planning and Policy Considerations

6.1. The procurement strategy supports the delivery of the corporate strategies of the City outlined in the City of Hobart Capital City Strategic Plan 2015-2025.

6.2. As such the procurement strategy is considered to be a resourcing strategy and it is proposed that it is included in the City’s planning and reporting framework as shown in the procurement strategy document.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. There are no financial implications for the current year. All actions outlined for 2018 have already been budgeted for in the 2017-18 budget estimates.

7.2. Impact on Future Years’ Financial Result

7.2.1. There is no impact on future years’ financial result as all actions proposed for 2018-19, 2019-20, 2020-21 and 2021-22 will be included in the respective year’s budget estimates.

7.3. Asset Related Implications

7.3.1. Not applicable.

8. Legal, Risk and Legislative Considerations

8.1. An organisational procurement strategy is not required under legislation, however, it is considered best practice.

9. Environmental Considerations

9.1. One of the goals in the procurement strategy is sustainable procurement, which includes actions on Council’s environmental procurement principle.

10. Delegation

10.1. 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

Group Manager Rates and Procurement

David Spinks

Director Financial Services

Date: 12 April 2018

File Reference: F18/26789

Attachment a: City of Hobart Procurement Strategy 2018-2022 ⇩

Item No. 6.2

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 35

17/4/2018

Memorandum: Finance and Governance Committee

Outstanding Long Term Permit Parking Debts as at 28 February 2018

Information on sundry and long term parking debts (greater than $2,000) is provided to the Finance Committee on a quarterly basis. At the Finance Committee meeting of 15 June 2016, it was resolved that the debts be reported separately to allow the reporting of long term parking debts to appear on the Open portion of the Finance Committee agenda.

This memorandum provides information on long term (permit) parking debts only. Debts relating to rates, sundry debts and parking fines are reported separately to the Finance Committee and animal debts are managed by City Planning Division.

The table below, in comparison to the same period last year, shows:

· A 45% increase ($30,510.22) in total debts outstanding;

· A $3,206.14 decrease in the 90 days and over category; and

· A $6061.18 increase in debts 30 days and older;

	28-Feb-17	% of total O/S	31-Jan-18	% of total O/S	28-Feb-18	% of total O/S
	$		$		$
Current	56,169	82%	57,483	99%	80,619	81%
30 days	8,370	12%	-900	-1%	16,754	17%
60 days	-613	-1%	444	1%	270	0%
90 days	4,610	7%	845	1%	1,404	1%
Total	68,537		57,872		99,047

* 30 days+(all)	12,367	18%	389	1%	18,429	19%

DEBTS GREATER THAN $2,000

There are currently no outstanding long term (permit) parking debts greater than $2,000.

REcommendation

That the information contained in the memorandum of the Manager Finance and Director Financial Services of 6 March 2018 titled “Outstanding Long Term Parking Debts as at 28 February 2018” be received and noted.

Peter Jenkins

Manager Finance

David Spinks

Director Financial Services

Date: 12 April 2018

File Reference: F18/20455

Item No. 6.3

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 38

17/4/2018

Memorandum: Finance and Governance Committee

3 Morrison Street - Australian Antarctic Festival 2018

The Council has received a request from Hobart Antarctic Festival Pty Ltd (HAF), who conduct the Australian Antarctic Festival (“the Festival”), to utilise the vacant premises at 3 Morrison Street, Hobart in the lead-up and during the Festival.

They intend to use the space for the collection and display of plywood penguins that schools throughout Tasmania, and some from interstate, will be painting for display during the Festival. The Festival has advised that they will require the space until the end of August.

They have also requested that access be given at no charge.

The most recent valuation of the property sets the value of the rent at $32,000 per annum. To proceed with the request from HAF would represent slightly more than $10,000 in foregone rent. However it should be noted that the property is currently vacant and this would see the site activated for a period of time. The Council has unsuccessfully tried to obtain a replacement tenant in the premises over the last twelve months. While the value would be recorded as a grant to HAF, it is unlikely that the income would actually be foregone.

The Council also provides a grant to HAF toward the Festival of $50,000 cash and $10,000 in-kind. This is provided through the competitive Community Development Grant Program for events. The in-kind component of that grant is pre-allocated by HAF at the time of making its application for grant funding. The quantum of the foregone rent exceeds the in-kind value of the grant and would therefore be outside of that Grant Program.

If the Council is minded to proceed with this request then it is proposed that a licence agreement be entered into with HAF in order to formalise the arrangement and protect the respective parties’ interests.

REcommendation

That:

1. The Council grant the Hobart Antarctic Festival Pty Ltd use of the property at 3 Morrison Street under licence until 31 August 2018 at no charge.

2. The Council’s contribution will be noted in the Council’s annual report in accordance with Council policy.

Paul Jackson

Manager Legal and Governance

Date: 12 April 2018

File Reference: F18/31471; 15/153-127

Item No. 6.4

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 41

17/4/2018

REPORT TITLE: Council and Committee Meetings - Publication of Arrival and Departure Times

REPORT PROVIDED BY: Group Manager City Government & Customer Relations

Report Purpose and Community Benefit

1.1. The purpose of this report is to respond to the following Notice of Motion from former Lord Mayor Hickey which was adopted by the Council at its meeting of 6 June 2016:

“That a report be prepared exploring the benefits of recording and publishing the departure times of Aldermen from Council and committee meetings.”

1.2 The rationale for the Notice of Motion noted that the implementation of this practice would continue to demonstrate that the Council is committed to being transparent and accountable to the ratepayers of Hobart.

2. Report Summary

2.1. It is a requirement of the Local Government (Meeting Procedures) Regulations 2015 (the MPR) that the General Manager ensure that the minutes of a meeting accurately record the attendance of Aldermen, including the times of all arrivals and departures which occur during a meeting.

2.1.1. In accordance with the legislation, the minutes of meetings include details of the arrival and departure for all Aldermen attending Council and Council committee meetings.

2.2. In addition to this recordkeeping, the Council also maintains a separate Aldermanic attendance register which summarises attendance of at all Council and committee meetings.

2.2.1. The format for the attendance register does not list arrival and departure times of Aldermen.

2.2.2. The Aldermanic attendance register is also used as the basis for recording meeting attendance in the City of Hobart’s Annual Report.

2.3. Minutes of all open Council and committee meetings and attendance registers are made available on the Council’s website.

2.4.

3. Recommendation

That It be noted that:

1. The Council is complying with the requirements of the Local Government (Meeting Procedures) Regulations 2015 in that the minutes of meetings of all Council and Council committee meetings record the attendance of Aldermen, including the times of all arrivals and departures which occur during a meeting.

2. The minutes of all open Council and Council committee meetings are made available on the Council’s website.

4. Background

4.1. The Council adopted the following Notice of Motion at its meeting of 6 June 2016:

“That a report be prepared exploring the benefits of recording and publishing the departure times of Aldermen from Council and committee meetings.”

4.2. The rationale for the Notice of Motion was as follows:

“At its 23 February 2015 meeting, the Council provided in-principle support to the monthly publication online, of all Aldermanic allowances, entitlements, and expenses, identified to the individual Aldermen. This decision was based on a desire to be a fully transparent and accountable Council.

In addition to the above decision the Council also resolved at its meeting held on 13 April 2015 to report monthly Aldermanic attendance at Council and committee meetings. Accordingly, Aldermanic attendance at Council and Council committee meetings is now available for viewing on the City of Hobart’s public website.

By providing a published record of departure times the Council continues to demonstrate that it is committed to being transparent and accountable to the Hobart ratepayers.

This information will also provide the ratepayers with an indication of the level of participation and involvement of Aldermen in the decision making process.”

4.3. Under the Meeting Procedures Regulations 2015, the General Manager is required to include details of meeting attendance, including all departure and return times of Aldermen during meetings, within the minutes of its meetings.

4.3.1. This obligation is met by the Council with details appearing in the minutes of Council and committee meetings.

4.3.2. The minutes of all open Council and committee meetings are published on the City of Hobart website.

4.4. Additionally as noted in the rationale accompanying the notice of motion, as a good governance practice, the City publishes a separate record of Aldermanic attendance at all Council and committee meetings on its website, with an annual summary appearing as part of each Annual Report.

5. Proposal and Implementation

5.1. It is a matter for the Council to determine whether it wishes to adopt the practice of publishing additional documentation regarding the departure times of Aldermen from meetings, on its website.

6. Strategic Planning and Policy Considerations

6.1. The Notice of Motion is consistent with Strategic Objective 5.1 – the organisation is relevant to the community and provides good governance and transparent decision-making.

7. Financial Implications

Funding Source and Impact on Current Year Operating Result

7.1 There are no financial implications arising from this matter.

8. Legal, Risk and Legislative Considerations

8.1. The legislative considerations have been addressed in the body of this report. It is not considered that there are any further legal considerations in addition to those imposed by the MPR.

9. Delegation

9.1. This matter is reserved to the Council.

M_johns_adobe signature

Margaret Johns

Group Manager City Government & Customer Relations

Date: 12 April 2018

File Reference: F16/100138; 13-1-2

Item No. 6.5

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 46

17/4/2018

Memorandum: Finance and Governance Committee

Facilitating Deputations as Supplementary Items on Council Committee Agendas

The Council, at its meeting of 4 December 2017 resolved to include general deputations as a supplementary item on future council committee agendas. As such, the Council policy titled Meetings: Procedures and Guidelines (Policy) will require an amendment to reflect this change.

The existing procedure in relation to making a deputation to a council committee which is set out in the current Policy is as follows:

11. DEPUTATIONS

(i) Any person who wishes to make a deputation to a committee may be requested to provide a written request to the chairman setting out:

(a) The likely members of the delegation.

(b) The purpose of the request.

(c) The nature of the matter or matters intended to be placed before the committee.

(ii) The committee chairman is to decide whether or not the deputation is to be received.

(iii) If the chairman decides that the deputation is to be received, the chairman is to inform the General Manager to note the item on the appropriate agenda.

(iv) A deputation:

(a) is not to exceed 3 persons: and

(b) is to be limited in duration to 5 minutes.

The Local Government (Meeting Procedures) Regulations 2015, in relation to deputations, states that a matter may only be discussed at a meeting if it is specifically listed on the agenda of that meeting. To facilitate the Council’s resolution, it is proposed that the current Policy be amended to include an additional sub-clause to clause 11(iii) to read as follows:

(a) If the matter is not listed to be discussed on the appropriate agenda but is in accordance with the Terms of Reference of that committee, the item is to be listed as a general deputation and the current procedure in relation to a deputation will apply.

The revised Policy is shown in ‘track-changes’ in Attachment A to this report.

Should the amendment be adopted by the Council all committee agendas will be modified to include general deputations as a standing item where one has been approved in accordance with the Policy.

REcommendation

That the Council policy titled “Meetings: Procedures and Guidelines” be amended, as marked in Attachment A to the memorandum.

Heather Salisbury

Acting General Manager

Date: 11 April 2018

File Reference: F18/20116

Attachment a: Council Policy - Meetings: Procedures and Guidelines - Excerpt - With Amendment ⇩

Item No. 6.6

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 50

17/4/2018

REPORT TITLE: Solar Panels - Additional Installations on City of Hobart Buildings

REPORT PROVIDED BY: Group Manager Infrastructure Planning

Director City Infrastructure

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to seek approval for a project to install an additional 173 kilowatts of solar panels on City facilities at a cost of $187,000.

2. Report Summary

2.1. The City has about 470 kilowatts of solar panels installed at nine of its facilities, with a further 50 kilowatts to be installed in the current financial year on the Centrepoint and Hobart Central Car Parks.

2.2. These panels are generating about 6% of the electricity that the City uses and saving about $90,000 per annum.

2.3. Following on from these projects and as identified in the City’s Energy Savings Action Plan 2018-2020 an investigation has been undertaken into the possible installation of further solar panels.

2.4. The cost of solar panels continues to fall, albeit somewhat more slowly than in the past, and the price achievable for electricity exported back to the grid has increased in the past year or so. These factors have resulted in improved economics for solar panel installations.

2.5. A review of sites which already have panels has been undertaken. It has been assessed that about a further 175kW of panels can be installed across eight sites. This amount of panels would generate about 220,000 kWh per year or about 2% of the City’s use.

2.6. The estimated cost for this project is $187,000 with net savings of about $32,000 per year giving a simple payback period of 5.8 years.

2.7. This project is not specifically included in the current 10 year capital works program. It is proposed to fund the project from the future allocations for the Energy Savings Action Plan with $100,000 to be sourced from the 2018-2019 year allocation and $87,000 to be brought forward from the 2019-2020 year allocation for the Plan’s implementation.

3. Recommendation

That:

1. Solar photovoltaic systems to a total capacity of about 175 kilowatts be installed at the following sites in the 2018-2019 year:

(i) Town Hall Annex;

(ii) Clearys Gates Depot;

(iii) McRobies Gully Waste Management Centre;

(iv) North Hobart Oval

(v) Bushland Operations Depot

(vi) City Hall;

(vii) Mathers House; and

(viii) Mornington Nursery.

2. A sum of $187,000 be allocated to this project, with $100,000 to be transferred from the Energy Savings Action Plan works funding allocation in 2018-2019 year and $87,000 be transferred and brought forward from the Energy Savings Action Plan works funding allocation in 2019-2020 year, subject to final approval of the 2018-2019 budget.

4. Background

4.1. A 100kW solar panel system was installed at the Doone Kennedy Hobart Aquatic Centre (DKHAC) in 2015 and the system commenced operation on 23 December 2015.

4.2. Following this successful installation a report in June 2016 to Council sought approval to install additional panels at the DKHAC and at a further 10 of the City's facilities.

4.3. Most of these systems have now been installed and are operational with the exception of the Hobart Central (20kW) and Centrepoint Car Park (31kW) systems. There have been a number of issues in resolving the structural support of the panels on the top floors of those car parks. The contractor has now completed the design work and the solar panel systems are expected to be installed and commissioned before the end of the financial year.

4.4. The installations which have been completed and are operational are listed in Table 1 below.

Site	System Size
DKHAC (including the previous 100kW system)	402kW
Town Hall Annex	25kW
Clearys Gates Depot	10kW
McRobies Gully Waste Management Centre	10kW
Bushland Operation Depot	5kW
City Hall	5kW
North Hobart Oval	4kW
Mathers House	3kW
Mornington Nursery	3kW

Table 1: Solar Panel Systems at City Facilities in March 2018

4.5. These panels are generating about 600,000 kWh per year, equivalent to the electricity used by about 80 houses and about 6% of the City's use.

4.6. Compared to many of the energy efficiency projects undertaken by the City, at least some of the solar panels are visible, providing visual evidence of the work being undertaken to reduce the City's electricity use from the grid. In particular, there has been favourable comment from the public about the DKHAC project.

4.7. Following on from the success of these installations a review of the City's facilities has been undertaken to identify further opportunities for solar photovoltaic system installations.

4.8. The sizes of the systems that have been installed were mainly limited to minimise the export of electricity, as the price gained for exported power was, at the time, much lower than the savings from reducing use on site, and the economics for extra panels much poorer.

4.9. The costs of installing solar panels are continuing to fall although at a slower rate than previously, and the price which can be obtained for exported electricity has risen somewhat.

4.10. Given these changes to installation costs and export power prices, it was considered appropriate to reconsider whether extensions to the installed systems would be financially viable.

4.11. As part of this review officers held discussions with the currently contracted electricity retailer, which provides electricity for the City's larger use sites, in regard to prices that could be expected for exported electricity.

4.12. These discussions were favourable in regard to the price that could be achieved for exported electricity.

4.13. In addition the tariff rates for smaller use sites with regulated pricing were reviewed, and the rates that can be obtained for exported electricity and replacing onsite use have both improved.

4.14. The review has also included analysing current and future electricity usage patterns, the electricity tariff applying to each site, available roof area, roof orientation, overshadowing, heritage issues and estimated site specific installation costs.

4.15. A number of potential sites with significant electricity usage were excluded from the assessment including Argyle Street Car Park (potential overshadowing from surrounding development), Tasmanian Travel & Information Centre (heritage issues) and Franklin Square (heritage and visual impact issues).

4.16. The results of this investigation have found that a further 173 kW of solar panels can be installed at the City's facilities with a reasonable level of economic return, as listed in Table 2 below.

4.17. Further investigations will be undertaken over the coming months of a number of other facilities, which do not yet have any panels installed.

Sites for Additional Solar Panels	Extra Power
Town Hall Annex	5kW
Clearys Gates Depot	35kW
McRobies Gully Waste Management Centre	34kW
Bushland Operation Depot	16kW
City Hall	26kW
North Hobart Oval	38kW
Mathers House	11kW
Mornington Nursery	8kW

Table 2: Proposed Addition Solar Panel Systems at City Facilities

4.18. The actual amount of solar power that can be installed may vary slightly from the above depending on the types of panels and alternative designs or layouts.

4.19. Based on previous experience, the costs of recent similar sized projects elsewhere in Tasmania and industry cost indices, the estimated net cost for the installation of solar panels is expected to average about $1,000 per kilowatt for sites with simple installations. This cost varies slightly depending on the specific issues at each site, including whether frames are required and degree of difficulty for installation.

4.20. The estimated cost to install the solar panels based on a review of each of the sites listed in Table 2 is $187,000, net of renewable energy certificate offsets.

4.21. The savings vary from site to site depending on energy production, how much of the generated electricity will be used on site and the price to be achieved for exported electricity.

4.22. The total amount of electricity projected to be generated with the proposed panels is about 221,000 kWh. An analysis of electricity savings based on onsite usage and amount exported has been undertaken. This gives total savings of about $33,500 per annum.

4.23. Operating and maintenance costs have proven to be very low to date for existing installations, and for the additional panels is expected to average about $1,500 per year in the medium term, resulting in net savings of about $32,000 per year.

4.24. This gives a simple payback period of 5.8 years or about a 17% return on investment.

4.25. It is noted that this project is not specifically included in the current 10 year capital works program.

4.26. In terms of funding these works, there are allocations currently reserved for the Energy Savings Action Plan implementation in the 2018-2019 and 2019-2020 financial years (each $100,000). It is proposed that the 2018-19 allocation be utilised along with a further $87,000 being brought forward from the 2019-2020 allocation be used to fund the project.

4.27. In regard to external funding opportunities, the current State Government loan schemes related to energy efficiency are not available to local government and the Clean Energy Finance Corporation has previously advised that its guidelines only involve projects of in the order of millions of dollars. All of the schemes reviewed provide loans, but none offer grants for solar panel installations.

5. Proposal and Implementation

5.1. It is proposed to install approximately a further 175 kilowatts of solar panels, to extend the generating capacity at eight sites, where systems have already been installed.

5.2. As the issues of installation have previously been addressed at each of these sites it is anticipated that the project could be completed by December 2018.

6. Strategic Planning and Policy Considerations

6.1. This project supports the Capital City Strategic Plan including Strategic Objective 3.4 Leadership in environmental performance with the efficient use of natural resources, and specifically priority actions 3.4.2 Improve corporate environmental sustainability and 3.4.4 Implement the Energy Savings Action Plan.

6.2. The Energy Savings Action Plan 2018-2020 included actions to investigate the feasibility of additional solar panels and proceed with installation (if found to be viable) at Clearys Gates Depot, McRobies Gully Waste Management Centre, Mornington Nursery, North Hobart Oval, City Hall, Mathers House, Council Centre and Argyle Street Car Park.

6.3. This proposal includes the first six of these sites, along with two others (Town Hall and Bushland Operations Depot). At this stage there are no plans for the Council Centre (due to poor orientation, limited space and overshadowing issues) or the Argyle Street Car Park mainly due to overshadowing issues.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Funding of $187,000 for the project is proposed to be sourced from the future allocations for the Energy Savings Action Plan with $100,000 from 2018-2019 year and $87,000 to be brought forward from the 2019-2020 year allocation. There is no impact on the current year operating result.

7.2. Impact on Future Years’ Financial Result

7.2.1. It is projected that there will be a net reduction in operating cost of $32,000 per annum, that will vary with electricity prices and network tariffs.

7.3. Asset Related Implications

7.3.1. The City’s buildings are valued and depreciated at the whole of building level. As a consequence there will be no impact on depreciation as the solar panels will be considered a component of the respective buildings. The solar panels have a nominal life of 25 years, and would need to be replaced after that period.

8. Legal, Risk and Legislative Considerations

8.1. There are no significant risk issues associated with this project, apart from the standard working at heights and electrical works issues, which can be appropriately managed.

8.2. The savings could vary over time, however electricity prices have stabilised to some degree over the past 12 months and there appears to be little likelihood that they will decrease.

8.3. In regard to the National Energy Guarantee proposed by the Australian Government there has been some public discussion as to the ongoing structure and incentives for renewable energy, including renewable energy certificates. Changes could impact on the cost of installing the solar panels, but not on the ongoing savings.

8.4. It is considered unlikely that there will be major changes in the next 12 months or so, but thereafter there may well be a risk of amendments to the current arrangements.

9. Environmental Considerations

9.1. It is projected that the systems will generate about 221,000kWh per year or similar to that used by about 30 houses. It is about 2% of the City’s current electricity use.

9.2. This is equivalent to reducing the City’s greenhouse gas emissions by about 50 tonnes CO₂-equivalent, using a standardised greenhouse gas emissions coefficient of 0.23 tonnes CO₂-equivalent/MWh of electricity.

10. Marketing and Media

10.1. The project will offer further opportunities for positive media coverage. There may however, be limited uptake by media outlets given this project involves extensions to existing systems and the panels for the selected sites are not readily visible to members of the public or users of the facilities (as compared to those at DKHAC).

11. Delegation

11.1. This is a matter for the Council to determine.

Scott Morgan

Group Manager Infrastructure Planning

Mark Painter

Director City Infrastructure

Date: 12 April 2018

File Reference: F18/21714; 2016-0018-003

Item No. 6.7

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 58

17/4/2018

REPORT TITLE: Local Government Association of Tasmania General Meeting Motions

REPORT PROVIDED BY: Acting General Manager

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to determine whether the Council wishes to submit any motions to the Local Government Association of Tasmania’s (LGAT) July General Meeting.

1.2. In providing motions to the LGAT the Council has the opportunity to influence government policy in the areas of particular interest and benefit to the City of Hobart.

2. Report Summary

2.1. The LGAT’s Annual General Meeting and General Meeting are to be held on Wednesday 25 July 2018.

2.2. Each year the LGAT invites councils to submit motions connected with the objectives of the Association or of common concern to members for inclusion in the July meeting agenda.

2.3. The Council submitted three motions to the 2017 meeting; two of which were carried whilst one was lost.

2.4 In considering whether to submit any motions to the LGAT General Meeting, the Council may wish to submit the following motions which concern matters the Council has previously resolved to support:

· The LGAT lobby the State Government for the introduction of legislation to ban the provision of petroleum-based single-use take-away food packaging currently used to enable prepared food or beverages to be carried from the retailer’s premises.

· The LGAT lobby the State Government to remove the ‘materiality’ test as it relates to conflict of interest set out in Part 2 of the Model Code of Conduct.

2.5 In addition to the above, Aldermen are invited to identify any appropriate motions which they may wish to see progressed through this process.

3. Recommendation

That:

1. The Council submit the following motions to the Local Government Association of Tasmania’s (LGAT) July General Meeting:

The LGAT lobby the State Government for the introduction of legislation to ban the provision of petroleum-based single-use take-away food packaging currently used to enable prepared food or beverages to be carried from the retailer’s premises.

The LGAT lobby the State Government to remove the ‘materiality’ test as it relates to conflict of interest set out in Part 2 of the Model Code of Conduct.

2. The Council determine whether it wishes to submit any other motions to the Local Government Association of Tasmania’s (LGAT) July General Meeting.

4. Background

4.1. Every year the LGAT writes to members inviting them to submit motions on matters connected with the objectives of the Association or of common concern to members for inclusion on the agenda of the July General Meeting.

4.2. In 2017, the Council submitted three motions to the meeting, namely:

That the State Government be urged to increase its per capita spending on the provision of public transport services within metropolitan and regional Tasmania (carried)

That the Local Government Association of Tasmania lobby the State Government to introduce container deposit legislation for the state (carried)

That LGAT, the 29 Councils and any individual Elected Members be request to lobby the Federal Government to commence a conversation with the Australian public regarding the date of recognition of Australia Day (lost)

4.3 There are three other matters which the Council may wish to submit as motions to this years’ General Meeting, those being:

· The LGAT lobby the State Government to remove the ‘materiality’ test as it relates to conflict of interest set out in Part 2 of the Model Code of Conduct.

4.4 In addition to the above, Aldermen are invited to identify any appropriate motions which they may wish to see progressed through this process

5. Proposal and Implementation

5.1. The Council determine whether it wished to submit any motions to the LGAT General Meeting to be held on 25 July 2018.

5.2. The LGAT has requested that any motions for the 25 July 2018 meeting be submitted by close of business 15 May 2018.

6. Strategic Planning and Policy Considerations

6.1. The Council has the opportunity to influence government policy in the areas of particular interest to the City of Hobart.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Nil

7.2. Impact on Future Years’ Financial Result

7.2.1. Nil

7.3. Asset Related Implications

7.3.1. Nil

8. Legal, Risk and Legislative Considerations

8.1.1. Not applicable.

9. Delegation

9.1. This matter is delegated to the Council.

Heather Salisbury

Acting General Manager

Date: 12 April 2018

File Reference: F18/30498

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.

Meeting: Finance and Governance Committee	Meeting date: 14 February 2018
Raised by: Alderman Cocker