Agenda of Finance and Governance Committee Meeting

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 4

13/8/2019

Finance and Governance Committee Meeting (Open Portion) held Tuesday, 13 August 2019 at 4:30 pm in the Lady Osborne Room, Town Hall.

COMMITTEE MEMBERS

Zucco (Chairman)

Deputy Lord Mayor Burnet

Sexton

Thomas

Dutta

NON-MEMBERS

Lord Mayor Reynolds

Briscoe

Denison

Harvey

Behrakis

Ewin

Sherlock

Apologies:

Leave of Absence:

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 Tuesday, 16 July 2019, 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.

Members of the committee 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

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13/8/2019

Memorandum: Finance and Governance Committee

Battery Point Slipyards Masterplan - Conclusion of Consultation

The purpose of this report is to present the final version of the Batter Point Slipyards master plan following the conclusion of the public consultation period.

The Council resolved to undertake a masterplan for the Battery Point Slipyards site. It engaged ERA Planning as a consultant to prepare a master plan. This was completed and in May 2018 the Council endorsed the draft masterplan.

Consultation was undertaken with the tenants on the site in relation to the content of the draft master plan and their feedback considered by ERA Planning. Some minor amendments were subsequently made to the master plan, although there is not universal support for the master plan from tenants.

The master plan was released during May and June 2019 seeking public feedback. Engagement was undertaken online through Your Say Hobart and in hard copy format at the City’s offices. Promotion of the engagement was across multiple platforms.

A total of 68 people completed the online survey provided via Your Say. The majority of the responses collected by community members indicated they were either supportive (34%) or somewhat supportive (51%) of plan, 15% were unsupportive. In addition to the online survey, a number of written submissions were made to the City.

Attachment A to this report is the Community Engagement Summary Report which includes copies of the submissions made, with personal information redacted.

Some of the feedback provided requires a response given the issues they raised. Appropriate responses will be arranged.

All feedback was considered by ERA Planning and a report responding to the feedback was subsequently prepared. No substantive changes to the draft master plan were required.

Attachment B to this report is a copy of the report provided by ERA Planning in response to the community engagement feedback.

Attachment C to this report is a copy of the final Battery Point Slipyards master plan.

It is proposed that the Council adopt the final version of the master plan. It is also proposed given the nature of the recommendations contained in the master plan these be addressed as part of relevant Divisional work plans and therefore no specific implementation plan is required with funding considered by the Council as part of its annual budget preparation process.

REcommendation

That:

1. That the Council adopt the Battery Point Slipyards master plan included as Attachment C to this report.

2. Implementation be progressed over future years as budget funding is secured within relevant Council program areas.

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.

Paul Jackson

Manager Legal and Governance

Date: 5 August 2019

File Reference: F19/104949; 16/213

Attachment a: Community Engagement Report - Battery Point Slipyards - July 2019 ⇩

Attachment b: ERA Planning Report Responding to Community Engagement Feedback ⇩

Attachment c: Battery Point Slipyards Masterplan ⇩

Item No. 6.1

Agenda (Open Portion)

Finance and Governance Committee Meeting - 13/8/2019

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ATTACHMENT a

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Item No. 6.1

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ATTACHMENT c

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Item No. 6.2

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Memorandum: Finance and Governance Committee

Local Government Association of Tasmania - Amendment of Rules

Introduction
The purpose of this memorandum is to update the Council on correspondence received from the Local Government Association of Tasmania following the Council’s request for an amendment to the Association Rules as they relate to the Southern Electoral District.

Background
At its 20 May 2019 meeting the Council resolved inter alia as follows:

The Council write to the Local Government Association of Tasmania seeking an amendment to the Rules to provide for eligibility for the Hobart City Council for membership of the General Management Committee as a Southern Electoral District nominee.

Following the Council’s decision, correspondence was sent to the Local Government Association of Tasmania (LGAT) seeking their guidance on how best to approach any amendment to the Rules of the Association to allow the City of Hobart to be included in the Southern Electoral District.

A response has been provided to the General Manager which advises what is required to amend the Rules of the Association to allow the Council to be included in the Southern Electoral District (attachment A). This advice states that:

· LGAT Rules can only be amended through a vote of councils at the LGATs Annual General Meeting (held annually in July).

· When a vote is being taken to amend the LGAT Rules, the resolution must be carried by at least two-thirds of the votes capable of being cast by members, whether present at the meeting or not.

· In practice, in-principle support for rule amendments is usually canvassed at one of the LGATs General Meetings. This enables any issues to be fully addressed and amendments to be considered prior to the AGM.

The correspondence also details information relating to the composition of the General Management Committee (GMC). The GMC provides oversight to LGAT operations with members being elected by LGAT member council representatives every two years. It comprises the popularly elected president, Lord Mayor and six other members elected by regional groupings of councils. The current representatives are:

· President – Mayor Christina Holmdahl

· Lord Mayor Anna Reynolds

· Vice President – Mayor Ben Shaw (Southern Region)

· Mayor Daryl Quilliam (North West Region)

· Mayor Annette Rockliffe (North West Region)

· Mayor Mick Tucker (Northern Region)

· Alderman Brendan Blomeley (Southern Region)

As the Lord Mayor does not face election the GMC the City of Hobart is guaranteed membership to GMC and the Premier’s Local Government Council (PLGC). The LGAT Rules do not allow for the possibly of a second seat except through election as President and as the Council would be aware, the Deputy Lord Mayor stood for the recent LGAT President election.

As noted, in the correspondence, LGAT member councils may find it difficult to support a rule change which could provide the Council with potentially three seats on GMC (the ‘as of’ right seat, a southern large council seat and a President seat). Notwithstanding this, the Council is entitled to test a rule change with the member councils through a General Meeting motion.

REcommendation

That:

1. The Council determine whether it wishes to submit a motion to a Local Government Association of Tasmania General Meeting requesting an amendment to the Association Rules to allow the City of Hobart to be included in the Southern Electoral District.

N D Heath

General Manager

Date: 7 August 2019

File Reference: F19/104705

Attachment a: LGAT Correspondence ⇩

Item No. 6.3

Agenda (Open Portion)

Finance and Governance Committee Meeting

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REPORT TITLE: ARRB Parking Review - Off Street, Residential and Commuter Parking - Results from Workshop

REPORT PROVIDED BY: Manager City Parking

Director City Innovation

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to present to the Finance and Governance Committee a list of topics for further review resulting from the City Parking Elected Member Workshop held on 16 July 2019, and to seek approval for officers in the City Innovation Division to review each topic and progressively report to Council on each proposed action.

2. Report Summary

2.1. At the recent City Parking Elected Member Workshop, ARRB (Australian Road Research Board) presented a number of outcomes from the Parking Operations review of off street, residential and commuter parking.

2.2. Following this Workshop eight topical areas are being further examined, and further information will be provided back to Council.

2.3. The eight topical areas for City Innovation Divisional officers to review are as follows:

(i) Early bird parking;

(ii) Pensioner voucher parking scheme;

(iii) 90-minute free parking in short term car parks;

(iv) On-street rates (floating rates);

(v) Off-street parking technologies;

(vi) Hours of operation of car parks;

(vii) Peripheral parking (commuter shuttle service); and

(viii) Commuter parking in inner city areas.

2.4. A summary of each of the above topical areas is presented below in the background section of this report (refer section 4).

2.5. Officers within the City Innovation Division will undertake a review of each topic and progressively report specific recommendations to Council.

3. Recommendation

That the Finance and Governance Committee note the following eight topical areas to be reviewed by officers within the City Innovation Division, and report back to Council:

(a) Early bird parking;

(b) Pensioner voucher parking scheme;

(d) On-street rates (floating rates);

(e) Off-street parking technologies;

(f) Hours of operation of car parks;

(g) Peripheral parking (commuter shuttle service); and

(h) Commuter parking in inner city areas.

4. Background

4.1. ARRB were contracted by the City of Hobart in late 2018 to conduct a full review of its Parking Operations. The review included all aspects of parking, from operational staffing to infrastructure, car parks and parking meters.

4.2. ARRB presented a draft report to the Director City Innovation in May 2019. The report contained a number of specific recommendations focused on reviewing enforcement staffing, and on- and off-street parking practices.

4.3. Initial actions from the report’s recommendations were approved by the Council in June 2019, and have commenced or been implemented. These include meter fee increases across the city, extension of operating hours in specific locations including the waterfront and North Hobart, and a restructure of the Parking Operations Unit to support a transition to seven-day operations and shift work for the officers.

4.4. On 16July 2019 an Elected Member Workshop was conducted to present the outcomes of the review of off street, residential and commuter parking.

4.5. Following this Workshop eight topical areas are being further examined, and further information will be provided back to Council.

4.6. The following is a brief summary of each of the topical areas:

Early Bird Parking

4.6.1. Early Bird parking was introduced in Hobart Central and Centrepoint car parks to fill the void between the number of short-term users and the overall car park capacity. With current demand for short-term parking increasing across, ARRB has recommended the City consider removing early bird parking in order to create additional short-term availability as a way of supporting CBD decongestion.

Pensioner Voucher Parking Scheme

4.6.2. The pensioner voucher scheme provides free parking for up to 5½ hours one day per week for eligible Tasmanian (state-wide) pensioners. ARRB has recommended a review of the program including limiting or targeting distribution and amending program entitlements.

90-Minute Free Parking

4.6.3. The multi-storey car park free parking scheme was introduced in the early 2000’s to provide an economic stimulus to CBD traders and compete with suburban shopping centres. When introduced the scheme provided for 60-minutes free then increased to 90 minutes in 2009 following the Myer fire. ARRB has recommended that the City undertake detailed analysis of the scheme to inform reduction or removal of the significant entitlements.

On-street rates (floating rates)

4.6.4. Floating parking fees, based on demand, are fees that can be adjusted dynamically. It is considered a contemporary best practice for cities to improve the use and efficiency of parking resources, and to reduce road traffic congestion. Prices are set based on a target of achieving one- or two vacant on-street parking bays in any given zone. This maximises parking efficiency and reduces the volume of motorists circulating the city to find available spaces.

Off-street Parking Technologies

4.6.5. The use of mobile apps such as EasyPark have proven to be very popular with Hobart motorists, with over fifteen per cent of all customers now paying parking meter fees via the mobile, self-service channel. Similar mobile technologies must be expanded for use in the City’s short-term car parks to support vacant bay location (on- and off-street) and the automation of fee payment on exit, instead of utilising the aging pay station, cashiering and facility management systems.

Hours of Operation of Car Parks

4.6.6. Currently Hobart Central and Centrepoint multi-storey car parks close at 6.30pm of a weekday, whilst Argyle Street is open until 10pm daily. ARRB has identified that Hobart’s increasing night-time economy now requires some or all of these facilities to be operating later into the evening, if not all night.

Peripheral Parking (Commuter Shuttle Service)

4.6.7. Current data identifies that the city’s parking assets are in excess of 80% capacity, five days a week (Tuesday-Saturday) during peak periods. ARRB have ratified that the city will be at parking capacity (of its own assets) within 3 years. Through the early bird and permit parking schemes the CBD has already experienced a dramatic increase in commuter vehicles entering the city in 2019. At the time of writing, all of the City’s permit car parks are full, and all early bird car parks are at capacity by around 8am. The creation of a peripheral “park and ride” (or similar) facility and service to provide commuters with city fringe parking options is seen as critical to the operational management of a CBD less reliant on auto-mobility as its primary transport mechanism.

Commuter Parking in Inner City Areas

4.6.8. In order to create additional short-term parking capacity within the CBD and support alternate options in both transport and parking for commuters outside the central city ARRB has recommended reviewing the number and commercial viability of city-owned and privately operated commuter spaces within the city that are currently set aside for permit holders and early bird commuters.

5. Proposal and Implementation

5.1. Following the Elected Member Parking Review Workshop that was held on 16 July 2019, City Innovation Division officers will now begin reviewing the identified key areas arising from the parking operations review and progressively report back to Council.

6. Financial Implications

6.1. Funding Source and Impact on Current Year Operating Result

6.1.1. While the known forgone operational revenue to Council of the identified schemes and programs exceeds several million dollars, the financial impact of each of these proposals will vary according to the nature of change or changes that are made to established practices.

6.1.2. Accordingly, each individual topical area, as it is reported back to Council, will contain its own financial impact analysis.

6.2. Impact on Future Years’ Financial Result

6.2.1. Each topical area will contain its own future year’s financial impact analysis.

6.2.2. It is suggested that increased revenue or returned savings may provide an offset to lost parking revenue as result of proposed future city projects such as separate cycleways.

6.3. Asset Related Implications

6.3.1. These will be identified in each report back to Council.

7. Legal, Risk and Legislative Considerations

7.1. There is no impact on existing legislation, however a number of these topical areas if implemented, will require amendments to Council Policies.

8. Social and Customer Considerations

8.1. Impacts on customers, including any requirements for community consultation, engagement and communication plans will be addressed separately as each topical area is reported back to Council.

9. Delegation

9.1. This matter is delegated to the Committee for determination.

Matthew Tyrrell

Manager City Parking

Peter Carr

Director City Innovation

Date: 7 August 2019

File Reference: F19/104494

Item No. 6.4

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 180

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REPORT TITLE: Procurement - Quotation Exemption Report

REPORT PROVIDED BY: Group Manager Rates & Procurement

Deputy General Manager

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide a listing of exemptions from the requirement to seek 3 written quotations granted for the period 1 April to 30 June 2019 for the information of Elected Members as requested by the Finance and Governance Committee.

1.2. The community benefit is providing transparency and delivering best value for money through strategic procurement decision-making.

2. Report Summary

2.1. At its meeting on 19 March 2018, the Council resolved that a report of exemptions granted from the requirement to seek 3 written quotes be presented to the Finance and Governance Committee quarterly as at 31 March, 30 June, 30 September and 31 December each year.

2.2. A report is attached for the period 1 April to 30 June 2019.

2.3. It is proposed that the Committee note the exemption from the requirement to seek 3 written quotes granted for the period 1 April to 30 June 2019.

3. Recommendation

That:

1. The Finance and Governance Committee receive and note the report titled ‘Procurement – Quotation Exemption Report’.

2. The Committee note the exemption granted from the requirement to seek 3 written quotations for the period 1 April to 30 June 2019.

4. Background

4.1. At its meeting on 19 March 2018, the Council resolved inter alia that:

4.1.1. 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.

4.2. A report outlining the quotation exemption from the requirement to seek 3 written quotes granted during the period 1 April to 30 June 2019 is attached – refer Attachment A.

4.3. As outlined in the City’s Code for Tenders and Contracts (the Code) where a Council Contract does not exist the City will seek a minimum of 3 written quotes for procurements between $50,000 and $249,999.

4.4. There may be occasions where, for a number of reasons, quotation(s) cannot be obtained / sought from the market or where doing so would have no additional benefit to the City or the market.

4.5. Therefore, exemptions from the requirement to seek written quotes can be sought from the Divisional Director but only if an acceptable reason exists as outlined in the Code, 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, services or works can be supplied only by a particular supplier and no reasonable alternative or substitute goods, services or works 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, services or works 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, services or works that do not meet requirements of interchangeability with existing goods, services or works;

(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.

4.6. For the period 1 April to 30 June 2019 there were 3 exemptions granted, where expenditure was between $50,000 and $249,999 and therefore 3 written quotations were required to be sought in line with the Code.

4.7. Two exemptions were granted on the grounds that the goods or services could only be supplied by one particular supplier and one exemption was granted on the grounds that the goods and services were additional goods and services by the original supplier intended as continuing goods and services for existing equipment.

5. Proposal and Implementation

5.1. It is proposed that the Committee note the exemption granted from the requirement to seek 3 written quotes for the period 1 April to 30 June 2019.

5.2. As outlined in the Code, 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 has been granted by the relevant Divisional Director, have been reported to the General Manager.

5.3. All approvals for the exemptions from the requirement to Tender are sought and reported through the formal Committee / Council approval processes.

6. Strategic Planning and Policy Considerations

6.1. The City’s Code for Tenders and Contracts is referenced in this report as it provides a framework for best practice procurement and sets out how the City will meet its legislative obligations in respect to procurement, tendering and contracting.

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. All expenditure noted in the attached listing of quotation exemptions granted was funded from the 2018-19 budget estimates.

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. Regulation 28 of the Local Government (General) Regulations 2015 states that the Council’s Code for Tenders and Contracts 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.

9. Delegation

9.1. This report is provided to the Finance and Governance Committee for information.

Lara MacDonell

Group Manager Rates & Procurement

Heather Salisbury

Deputy General Manager

Date: 5 August 2019

File Reference: F19/100250; 18/311

Attachment a: Report - Quotation Exemptions Granted (3 Quotes) 1 April to 30 June 2019 ⇩

Item No. 6.5

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 189

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Memorandum: Finance and Governance Committee

Southern Tasmanian Extreme Weather Event Update

This memorandum provides a further update on activities resulting from the 10-11 May 2018 extreme weather event.

The City continues to undertake remedial works resulting from the May flood. A large number of works have been completed including the initial clean up and repairs to roads, underground stormwater assets, parks and bushland, buildings and within waterways.

The work required for the fire trail repairs has now been completed with the works on walking tracks well underway. Recent rain has assisted works in some areas on kunanyi/Mt Wellington and Knocklofty Reserve by improving soil conditions allowing effective compaction and remediation works.

Flood repair work is expected to continue into 2020.

Natural Disaster Relief and Recovery Arrangement (NDRRA)

Methodology

In general terms the NDDRA is separated into a number of measures:

Category	Claimable expenses
Category A	emergency assistance to individuals
Category B	restoration or replacement of essential assets (road, footpath, pedestrian bridge, stormwater, bridges, tunnels, culverts, rivulets, Pinnacle Road, local government offices)
Category C	community recovery packages
Category D	exceptional acts of relief or recovery to alleviate distress or damage.

Following the 10-11 May weather event the affected Councils worked with the Tasmanian Government to obtain a Community Recovery Fund of up to $9.67 million comprising:

- Reimbursement of expenditure to restore damaged non-essential assets

- Funding of a community recovery officer

- community awareness and resilience-building initiatives (including a grants program)

For City of Hobart the Category C reimbursement is capped at $2.4M (plus 15% contingency).

Under the NDRRA the Tasmanian Government reimburses the Council 50% of eligible expenditure between the first and second thresholds and 75% of eligible expenditure above the second threshold. The first threshold is 0.225% of the Council’s total general rates revenue and general purposes grants receipts two financial years prior to the financial year in which the eligible natural disaster occurred. The second threshold is 1.75 times that amount.

Claims

The City has submitted two claims for reimbursement of eligible repairs to essential and non-essential assets under the Natural Disaster Relief and Recovery Arrangements (NDRRA). Both claims have been assessed by the Tasmanian Audit Office (TAO). Following the audit, the TAO make a recommendation to the Federal Government to reimburse expenditure as per the final claim. It is unknown at this stage when reimbursement will be made.

The initial claim for $2.34M is for costs incurred up until 30 November 2018, including $69,454 related to McRobies Waste Management Centre.

The second claim for $0.855M is for costs incurred from 1 December 2018 to 30 April 2019. $62,682 of this is related to McRobies Waste Management Centre.

TAO is continuing to review data to support McRobies Waste Management Centre being considered an essential asset under the NDRRA.

Expenditure and Financial Recovery

The following table summarises the expenditure for storm-related repairs:

Financial Year	Claim 1 (including McRobies)	Claim 2	Not yet claimed	Non-claimable
17/18	$1.31M			$0.314M
18/19	$1.03M	$0.855M	$0.748M	$0.201M
Total	$2.34M	$0.855M	$0.748M	$0.515M

The NDRRA in place at the time of the incident does not allow Councils to claim employee ordinary time, plant depreciation and asset improvements unrelated to meeting current Australian Standards. These costs make up the non-claimable expenditure.

Taking the NDRRA methodology into consideration the likely reimbursement related to the initial two claims is approximately $2.21M. This is made up of:

- $1.22M for Category A (Emergency Assistance to Community) and B (Essential Assets); and

- $0.99M of the possible $2.4M for Category C (Non-Essential Assets).

Insurance

Settlement has been received from the City’s property insurer for City Hall, Youth Arc and a number of leased properties totalling $542,944.57. This comprises reimbursement for expenses incurred by Council to repair damaged insured assets, as well as a cash settlement in lieu of the floor being sanded at City Hall ($36,349) and the insurer reinstating Youth ARC ($264,446). The cash settlement has been used to offset the City Hall floor replacement and the Youth ARC redevelopment.

The insurance excess was $50,000 for the storm event. The excess has been included on the first NDRRA claim.

The City has selected to take the opportunity to upgrade the damaged leachate pond fence at McRobies Waste Management Centre. This will need to be completed prior to finalising the insurance claim.

Repair Progress

Regular meetings are being held to review progress towards repairing the flood damage. Of the projects yet to be completed, two have been identified as having potential to extend beyond the 30 June 2020 deadline. Applications for extension are being prepared for these projects as a contingency.

All other projects are currently scheduled to be completed prior to the deadline. Some projects, however, may be delayed due to factors outside the Project Managers’ control including on-site latent conditions and statutory planning requirements.

REcommendation

That:

1. That the information be received and noted.

Nick heath

N D Heath

General Manager

Date: 8 August 2019

File Reference: F19/107610; 18/182-013

Item No. 6.6

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 194

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REPORT TITLE: Grants and Benefits Listing as at 30 June 2019

REPORT PROVIDED BY: Group Manager Rates & Procurement

Deputy General Manager

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide a listing of the grants and benefits provided by the Council for the period 1 July 2018 to 30 June 2019.

2. Report Summary

2.1. A report outlining all grants and benefits provided by Council Committees and Council for the period 1 July 2018 to 30 June 2019 is attached.

2.2. It is proposed that the Committee note the listing of grants and benefits provided for the period 1 July 2018 to 30 June 2019, and that these are required, pursuant to Section 77 of the Local Government Act 1993 (“LG Act”), to be included in the annual report of Council.

3. Recommendation

That the Finance and Governance Committee receive and note the information contained in the report titled ‘Grants and Benefits Listing as at 30 June 2019’.

4. Background

4.1. A report outlining the grants and benefits provided for the period 1 July 2018 to 30 June 2019 is provided at Attachment A.

4.2. Pursuant to Section 77 of the LG Act, the details of any grant made or benefit provided will be included in the annual report of the Council.

4.3. The listing of grants and benefits marked as Attachment A, has been prepared in accordance with the Council policy titled Grants and Benefits Disclosure – refer Attachment B.

5. Proposal and Implementation

5.1. It is proposed that the Committee note the grants and benefits listing as at 30 June 2019.

5.2. It is also proposed that the Committee note that the grants and benefits listed are required to be included in the Annual Report of the Council and will be listed on the City of Hobart’s website.

6. Strategic Planning and Policy Considerations

6.1. Grants and benefits are provided to organisations which undertake activities and programs that strongly align with the Council’s Strategic Framework – Hobart 2025, the City of Hobart Capital City Strategic Plan 2015-2025 as well as other relevant City of Hobart strategies.

6.2. The linkage between the City’s grants and benefits provided and the City of Hobart Capital City Strategic Plan 2015-2025 is referenced in Attachment A.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. All grants and benefits provided as at 30 June 2019 were funded from the 2018-19 budget estimates.

8. Legal, Risk and Legislative Considerations

8.1. The Council provides grants and benefits within the requirements of Section 77 of the LG Act as follows:

8.1.1. Grants and benefits

(1) A council may make a grant or provide a pecuniary benefit or a non-pecuniary benefit that is not a legal entitlement to any person, other than a councillor, for any purpose it considers appropriate.

(1A) A benefit provided under subsection (1) may include:

(a) in-kind assistance; and

(b) fully or partially reduced fees, rates or charges; and

(c) remission of rates or charges under Part 9 (rates and charges)

(2) The details of any grant made or benefit provided are to be included in the annual report of the council.

8.2. Section 72 of the LG Act requires Council to produce an Annual Report with Section 77 of the LG Act providing an additional requirement where individual particulars of each grant or benefit given by the Council must be recorded in the Annual Report.

8.3. Section 207 of the LG Act provides for the remitting of all or part of any fee or charge paid or payable.

8.4. Section 129 of the LG Act provides for the remitting of rates.

9. Delegation

9.1. This report is provided to the Finance and Governance Committee for information.

Lara MacDonell

Group Manager Rates & Procurement

Heather Salisbury

Deputy General Manager

Date: 6 August 2019

File Reference: F19/106282; 25-2-1

Attachment a: Grants and Benefits Listing as at 30 June 2019 ⇩

Attachment b: Council Policy - Grants and Benefits Disclosure ⇩

Item No. 8.1

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 224

13/8/2019

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 Electric Charging Stations

File Ref: F19/98423

Memorandum of the Director City Innovation of 8 August 2019.

8.2 Elector Poll

File Ref: F19/98426

Memorandum of the Manager Legal and Governance of 7 August 2019.

8.3 Staffing Numbers - Restructure

File Ref: F19/98429

Memorandum of the Deputy General Manager of 7 August 2019.

8.4 Administration and Service Delivery Costs

File Ref: F19/98998

Memorandum of the Deputy General Manager of 7 August 2019.

Delegation: Committee

That the information be received and noted.

Item No. 8.1

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 225

13/8/2019

Memorandum: Lord Mayor

Deputy Lord Mayor

Elected Members

Response to Question Without Notice

Electric Charging Stations

Meeting: Finance and Governance Committee

Meeting date: 16 July 2019

Raised by: Deputy Lord Mayor Councillor Burnet

Question:

The first State Government charge smart test electric vehicle charging grant was $50k of and estimated $170k, the balance borne by the City of Hobart. This is a huge impost on Council. What other measures can be taken in order to ensure Coucnil(s) do not bear so much of the cost, given the increased demand for electric vehicle fast charge stations?

Response:

The City is taking a number of measures to ensure the sustainable rollout of electric vehicle charge stations. These include additional third party funding such as through rebates under the TasNetworks Electric Vehicle Fast Charger Scheme, the use of in-situ solar and battery storage solutions, and commercial recovery models involving charging for both parking and electricity use subject to review and prevailing electricity prices.

The comparatively high-cost of the Dunn Place installation comprises an $85,000 TasNetworks connection fee and $40,000 for electrical upgrade works that will allow for the installation of additional units in the future. Regardless of these costs, the site was chosen due to its central and very visible location close to the Hobart CBD, being accessible and suitable for Tasmanians and visitors, and for its high-use destination charging (commercial) potential.

Peter Carr

Director City Innovation

Date: 8 August 2019

File Reference: F19/98423

Item No. 8.2

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 227

13/8/2019

Memorandum: Lord Mayor

Deputy Lord Mayor

Elected Members

Response to Question Without Notice

Elector Poll

Meeting: Finance and Governance Committee

Meeting date: 16 July 2019

Raised by: Alderman Behrakis

Question:

In regards to the Height Limit elector poll and the $200k of ratepayers funds spent, can a breakdown be provided from the TEC as to what that money was spent on? What percentage was for advertising, and what forms of advertising were used?

Response:

It is not possible to provide advice to the Council in relation to the final expenditure related to the elector poll as final accounts have not been received from the Tasmanian Electoral Commission. It is understood that the TEC is awaiting final accounts relating to its expenditure in order to account to the Council.

Further detail will be provided once final invoices have been received.

Paul Jackson

Manager Legal and Governance

Date: 7 August 2019

File Reference: F19/98426

Item No. 8.3

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 229

13/8/2019

Memorandum: Lord Mayor

Deputy Lord Mayor

Elected Members

Response to Question Without Notice

Staffing Numbers - Restructure

Meeting: Finance and Governance Committee

Meeting date: 16 July 2019

Raised by: Alderman Behrakis

Question:

In regards to the recent restructure, what were the number of council staff before and after the restructure?

Response:

The restructure I undertook in January of this year aimed to realign the organisational structure more effectively with the new Vision and Strategic Plan as well as achieve better alignment of functions and activities within the organisation. In doing so, I realised the opportunity to reduce the previous Executive Leadership Team by three full time positions. While there have been impacts on staff positions at lower levels in the organisation and reviews of the structure of the new Divisions will continue for some time, there was no other impact on total employee numbers.

The City’s equivalent full-time employee level for 2018/19 was 629.

Heather Salisbury

Deputy General Manager

Date: 7 August 2019

File Reference: F19/98429

Item No. 8.4

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 231

13/8/2019

Memorandum: Lord Mayor

Deputy Lord Mayor

Elected Members

Response to Question Without Notice

Administration and Service Delivery Costs

Meeting: Finance and Governance Committee

Meeting date: 16 July 2019

Raised by: Alderman Behrakis

Question:

What percentage of Council expenditure is administrative costs and what percentage is in relation to service delivery? Could that be broken down by department?

Response:

Set out below are two cost breakdowns using various definitions of ‘administration’.

1. For each Division there is a budget function for ‘Administration’ comprising salaries, on-costs and associated material/equipment costs for the administrative staff in that Division. The breakdown between these costs and other Divisional budget functions is set out in the table below:

	City Planning	Community Life	City Amenity	City Technology	City Governance	Marketing and Comms	GM & LM Office
Administration	695,846	304,889	624,660	403,972	525,339		-
Service Delivery	16,721,516	14,201,119	43,799,950	26,950,796	11,807,135	965,835	1,231,038
	17,417,362	14,506,008	44,424,609	27,354,768	12,332,474	965,835	1,231,038
% Admin	4.00%	2.10%	1.41%	1.48%	4.26%	0.00%	0.00%

Source: 2019/20 Estimates.

Across the organisation the administration functions comprise 2.15 per cent of the total Divisional costs.

While appearing as separate budget functions in the Council’s Annual Plan, it should be noted that these administrative units are responsible for activities that support service delivery. By way of example, the City Planning Administration Unit spends the majority of its processing planning applications and staff in the City Amenity Administration Unit are responsible for booking of all sport and recreation facilities.
Conversely, of course, functions within the Divisions which constitute service delivery will have some administrative components to the work.

2. If the definition of administration is expanded to include areas of Council that undertake work which may be considered as ‘governance and administration’, including the Council Support Unit, Elected Members allowances and expenses, General Manager, Lord Mayor’s Office, Legal, People and Capability, Finance and Rates, the breakdown is as follows:

	City Planning	Community Life	City Amenity	City Technology	City Governance	Marketing and Comms	GM & LM Office
Administration	695,846	304,889	624,660	403,972	11,049,761		1,231,038
Service Delivery	16,721,516	14,201,119	43,799,950	26,950,796	1,808,052	965,835
	17,417,362	14,506,008	44,424,609	27,354,768	12,857,813	965,835	1,231,038
% Admin	4.00%	2.10%	1.41%	1.48%	85.94%	0.00%	100.00%

Source 2019/20 Estimates

Across the organisation governance and administration constitutes 12.05 per cent of total costs.

Heather Salisbury

Deputy General Manager

Date: 7 August 2019

File Reference: F19/98998

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 233

13/8/2019

9. Questions Without Notice

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

File Ref: 13-1-10

An Elected Member may ask a question without notice of the Chairman, another Elected Member, 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 Elected Member 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, Elected Members, 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 Elected Members, at the appropriate time.

(iii) upon the answer to the question being circulated to Elected Members, 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 234

13/8/2019

10. Closed Portion Of The Meeting

RECOMMENDATION

That the Committee resolve by majority that the meeting be closed to the public pursuant to regulation 15(1) of the Local Government (Meeting Procedures) Regulations 2015 because the items included on the closed agenda contain the following matters:

· proposals for the council to acquire land or an interest in land or for the disposal of land

· the personal hardship of any person who is resident in, or is a ratepayer in, the relevant municipal area

· information of a personal and confidential nature or information provided to the council on the condition it is kept confidential

The following items are listed for discussion:-

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 Reports

Item No. 4.1 Lease of Hobart Rivulet - Hobart Private Hospital Site

LG(MP)R 15(2)(f)

Item No. 4.2 Outstanding Rates as at 30 June 2019

LG(MP)R 15(2)(g) and (j)

Item No. 5 Committee Action Status Report

Item No. 5.1 Committee Actions - Status Report

LG(MP)R 15(2)(a), (c)(i), (f), (g), (i), (j) and e(i)

Item No. 6 Responses to Questions Without Notice

Item No. 6.1 Conflicts of Interest

LG(MP)R 15(2)(a)

Item No. 7 Questions Without Notice

People	We value people – our community, our customers and colleagues.
Teamwork	We collaborate both within the organisation and with external stakeholders drawing on skills and expertise for the benefit of our community.
Focus and Direction	We have clear goals and plans to achieve sustainable social, environmental and economic outcomes for the Hobart community.
Creativity and Innovation	We embrace new approaches and continuously improve to achieve better outcomes for our community.
Accountability	We work to high ethical and professional standards and are accountable for delivering outcomes for our community.