Agenda of Finance and Governance Committee Meeting

THE MISSION

Working together to make Hobart a better place for the community.

THE VALUES

The Council is:

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.

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 5

15/10/2019

Finance and Governance Committee Meeting (Open Portion) held Tuesday, 15 October 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, 17 September 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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15/10/2019

REPORT TITLE: Southern Tasmania Netball Association - Request to Amend (Increase) Loan Guarantee

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 seek Council’s approval of an increase in the loan guarantee provided to the Southern Tasmanian Netball Association (STNA). STNAs request is attached - refer Attachment A and B.

2. Report Summary

2.1. STNA propose to undertake a solar installation at the Creek Road Netball Centre for circa $235,000, funded by debt.

2.2. Council has a loan guarantee currently in place. Their loan balance is currently around $270,000. They wish to borrow a further $235,000 and refinance the total borrowing of $505,000 over 14 years.

2.3. STNAs current facility has been satisfactorily conducted for many years. Despite the increased loan, repayments will fall due to lower interest rates, and the term being extended out to 14 years (the current loan has approximately 4 years remaining).

2.4. The STNA financial statements for the year ended 31 December 2018 are attached as Attachment C. A review has found that STNA appear to be in a satisfactory position to service the proposed increased loan.

2.5. Council first approved a guarantee of loans policy in 2016 – Attachment D. It is considered this request meets all of the criteria of that policy, except one. The policy requires any loan must not have a redraw facility. STNAs current facility has a redraw facility and they would prefer to maintain that ability. On balance, this is considered reasonable.

2.6. As is standard practice, approval of the guarantee will require STNA to provide Council with relevant information throughout the loan term, at its discretion, to enable Council to satisfy itself that the loan is being conducted according to arrangements, and STNAs ongoing ability to service the loan. Such information could include access to minutes, year to date financial information, budgets, forecasts, annual reports and financial statements, and loan statements.

3. Recommendation

That:

1. The Report ‘Southern Tasmanian Netball Association – Request to Amend (Increase) Loan Guarantee’ be received and noted.

2. Council guarantee a loan to Southern Tasmanian Netball Association from Westpac Banking Corporation for $505,000.

3. The General Manager be delegated authority to negotiate and finalise the terms of the loan guarantee.

4. Council receive quarterly loan updates from STNA and/or Westpac Banking Corporation, and other financial information such as financial statements, and year to date performance information, at Council’s discretion.

5. STNA immediately notify Council in the event of any default in loan payments.

6. STNA notify Council of any legal actions that they enter or are joined to, and any intention to take out further borrowings.

7. Any future changes to loan arrangements be subject to Council approval.

4. Delegation

4.1. Council delegation.

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 & Procurement

Heather Salisbury

Deputy General Manager

Date: 10 October 2019

File Reference: F18/107405; 18/17

Attachment a: STNA Request for Increase in Loan Guarantee ⇩

Attachment b: PowerCom Installation Specification and Forecast ⇩

Attachment c: STNA Financial Report year ended 31 December 2018 ⇩

Attachment d: Council Policy - Guarantee of Loans ⇩

Attachment e: Background Information - Southern Tasmania Netball Association - Request to Amend (Increase) Loan Guarantee (Supporting information)

Item No. 6.1

Agenda (Open Portion)

Finance and Governance Committee Meeting - 15/10/2019

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ATTACHMENT c

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Item No. 6.2

Agenda (Open Portion)

Finance and Governance Committee Meeting

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15/10/2019

REPORT TITLE: Charitable Rates Exemptions - Rates Remission Request from Uniting Agewell

REPORT PROVIDED BY: Group Manager Rates & Procurement

Deputy General Manager

1. Report Purpose and Community Benefit

1.1. This report seeks Council’s consideration of a request from The Uniting Church in Australia Property Trust (Tas) (Uniting Agewell) for a remission of general rates paid on their properties at 3 Peel Street, Sandy Bay and 51 Cross Street, New Town for the period 1 July 2016 to 30 June 2019.

2. Report Summary

2.1. Council has received an application from Uniting Agewell, owner of 3 Peel Street, Sandy Bay and 51 Cross Street, New Town for a remission of general rates paid on both properties for the period 1 July 2016 to 30 June 2019 on the grounds that the land was exempt from the payment of general rates pursuant to section 87(1)(d) of the Local Government Act 1993 (Tas) (LG Act), in accordance with the Southern Cross Care Full Court decision of October 2018.

2.2. The Southern Cross Care decision was concerned with the rates exemption for independent living units in retirement villages, no other scenario was considered by the Supreme Court, and the decision is therefore not necessarily binding in relation to other types of properties.

2.3. The property at 3 Peel Street, “Queenborough Rise” is a 60 bed nursing home and 30 independent living units. The property at 51 Cross Street, New Town is 3 independent living units. The independent living unit scenarios at both properties is exactly the scenario considered by the Supreme Court.

2.4. The Supreme Court found that the general rate exemption applies to independent living units and therefore it does apply to the independent living units at 3 Peel Street and 51 Cross Street and did apply for the period 1 July 2016 to 30 June 2019.

2.5. Following the Supreme Court decision the General Rate was removed from both properties under the revised Council Policy – Rates Exemption Charitable Purposes. Therefore, both properties are currently 100% exempt from General Rates pursuant to section 87(1)(d) of the LG Act.

2.6. It should be noted that while a Local Government Association of Tasmania (LGAT) working group, which Council Officers are members of, are working on a review of the legislation (section 87(1)(d) of the LG Act) in relation to this matter, currently both properties are entitled to the General Rate exemption.

2.7. It is proposed that the remission is granted on the basis that the land was exempt from the payment of general rates for the period of the remission request.

2.8. Funding Source and Impact on Current Year Operating Result:

2.8.1. The total value of the rates remission request across both properties is $96,982.08.

2.8.2. A remission of this quantum has not been budgeted for so it would result in a revenue short fall and place pressure on the current year’s operating result.

2.9. In respect to risk considerations, Uniting Agewell is the only other owner that the City removed the general rates exemption from in 2016. The City therefore does not expect to receive any further requests of this nature.

3. Recommendation

That:

1. The Report ‘Charitable Rates Exemptions – Rates Remission Request from Uniting Agewell’ be received and noted.

2. The Council approve a remission of general rates paid by Uniting Agewell for 3 Peel Street, Sandy Bay and 51 Cross Street, New Town for the period 1 July 2016 to 30 June 2019 pursuant to section 129 of the Local Government Act 1993 (Tas).

4. Delegation

4.1. Pursuant to section 129(3) of the Local Government Act 1993,

A council, by absolute majority, may grant a remission of all or part of any rates, penalty or interest paid or payable by the ratepayer.

Lara MacDonell

Group Manager Rates & Procurement

Heather Salisbury

Deputy General Manager

Date: 9 October 2019

File Reference: F19/130524

Attachment a: Letter from Uniting Agewell - rates exemption application ⇩

Attachment b: Council Policy - Rates Exemption Charitable Purposes ⇩

Attachment c: Background Information (Supporting information)

Item No. 6.3

Agenda (Open Portion)

Finance and Governance Committee Meeting

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15/10/2019

REPORT TITLE: Proposed 2020 Council and Committee Meeting Schedule and Temporary City Planning Committee Delegation

REPORT PROVIDED BY: Deputy General Manager

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to consider the Council and committee meetings schedule for 2020.

2. Report Summary

2.1. A schedule is compiled annually which outlines the meeting dates for Council and Council Committees and is submitted to the Council for adoption.

2.2. Three options for 2020 are presented for the Council’s consideration.

2.2.1. It should be noted that the Council has an open resolution to give consideration to aligning the committee structure to the City’s Vision, which was approved by Council in July 2018.

2.2.2. With the recent adoption of the City’s Strategic Plan, this review is now scheduled to occur early in the New Year.

2.2.3. If the result of this process requires changes to the meeting schedule adopted as a result of this report, this will be accommodated at the appropriate time. Formalising a 12-month meeting schedule now, provides the community and Elected Members with a preliminary calendar for the conduct of Council business in the interim period.

2.3. Historically, the meeting schedule has been prepared using an approach which is based around a monthly meeting cycle which includes two Council and City Planning Committee meetings and one meeting of each of the other Council committees.

2.4. The schedule has provided for three, three week cycles between Council meetings which have traditionally been aligned with Easter and months which contain 5 weeks.

2.5. The approach taken in preparing the 2020 scheduled has varied from previous years with officers providing three different options for consideration:

2.5.1. Option A (Attachment A) – the meeting cycle commences in the third week of January allowing a longer break from Council business over the Christmas / New Year period. The three week cycles have been aligned with Easter and the second week of both the July and October school holidays.

2.5.1.1. Commencing the third week of January avoids agenda’s having to be circulated in the first three days of January. It also means that some Council meetings will be held on a Tuesday due to a public holiday occurring on the Monday.

2.5.2. Option B (Attachment B) – in addition the changes made in option A, option B proposes that the Community Culture and Events Committee and the Economic Development and Communications Committees be held on the same Thursday evening with one scheduled to occur at the conclusion of the other.

2.5.2.1. Scheduling these two traditionally lighter committees to occur on the same evening has the advantage of ‘smoothing’ the Council agenda cycle.

2.5.3. Option C (Attachment C) – this is the same as Attachment B with the additional proposal to alternate the Council Workshop timeslot across Tuesday, Thursday and Friday.

2.5.3.1. Workshops occurring on the Tuesday and Thursday would commence at 5pm.

2.5.3.2. Workshops occurring on a Friday would commence at 2pm or at another time as agreed by Council.

2.6. All options retain a meeting cycle which includes two Council and City Planning Committee meetings and one meeting o f each of the other Council committees per month.

2.7. In the event that any urgent business arises which cannot be accommodated within any of the proposed meeting schedule options, special meetings will be convened as required.

2.8. In accordance with Regulation 7(2) of the Local Government (Meeting Procedures) Regulation 2015, the Council’s adopted meeting schedule will be advertised in the Mercury in January and also published on the City of Hobart website.

2.9. It is also recommended that the Council provide a delegation to the City Planning Committee, consistent with the delegation provided in prior years, to enable planning applications to be approved during the Christmas period.

3. Recommendation

That:

1. The Council consider its preferred option for a 2020 Council and Council Committee meeting schedule, from options marked as Attached A, Attachment B and Attachment C to the report.

2. In the event that any urgent matters arise which cannot be accommodated within the preferred 2020 meeting schedule option, special meetings be convened as required.

3. The City Planning Committee be provided with the following delegation in order to facilitate the processing of planning permit applications during the Christmas period:

(i) To determine all planning permit applications which would otherwise be determined by the Council, between 10 December 2019 and the first ordinary scheduled Council meeting in January 2020, in circumstances where it would not otherwise be possible to determine the application within the statutory time period required under Sections 57(6), 57(6A), 58(2) or 58(2A) of the Land Use Planning and Approvals Act 1993, and an extension of time cannot be obtained, unless an Elected Member has requested the convening of a special meeting or meetings to determine the application.

4. Delegation

4.1. This matter is delegated to the Council.

Heather Salisbury

Deputy General Manager

Date: 9 October 2019

File Reference: F19/131963

Attachment a: Option A - 2020 Meeting Schedule ⇩

Attachment b: Option B - 2020 Meeting Schedule ⇩

Attachment c: Option C - 2020 Meeting Schedule ⇩

Item No. 6.4

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 63

15/10/2019

Memorandum: Finance and Governance Committee

Mawson Place - Matilda

The Matilda is a double ended fishing boat and is one of the 12 oldest fishing/sailing vessels in the world (International Register of Historic Ships). It was built around 1886. Following its use as a fishing boat the Matilda was based at Port Arthur and worked around the Tasman Peninsula, also carrying mail & passengers to and from the Tasman Island lighthouse.

At its meeting of 25^th September 2000, Council formally accepted the transfer of ownership of the vessel “Matilda” from the Port Arthur Historic Site Management Authority and restored it as part of the Mawson Place project. The following caveat applied to the transfer:

· A covenant be placed on the transfer to ensure that if disposal of the vessel becomes necessary it will remain in public ownership in an appropriate public repository.

Council specified the following directions in their decision:

· The “Matilda” be displayed as a dry exhibit on a floating pontoon in Constitution Dock and covered by a boom tent in accordance with the conservation recommendations as detailed in the Matilda Conservation Assessment carried out by Michael Staples.

· An allocation of $20,000 per annum be provided in subsequent annual Council operating budgets for security surveillance of Mawson Place and the “Matilda” ($15,000 pa) and the ongoing maintenance of the “Matilda” ($5,000).

The Matilda is now displayed on a pontoon at Mawson Place. The boat was valued at $238,300 by Dean Marks Boatbuilding in June 2014. The annual operational budget is in the order of $10,000 for maintenance and insurance.

As a result of the proposal by TasPorts to modify Constitution Dock, officers are proposing a review of Council continuing ownership and/or management of Matilda. In accordance with the caveat, ownership would need to be transferred to a public repository that was capable of maintaining the ongoing upkeep of the boat. An Informal approach to the Maritime Museum Tasmania indicated that they would not be interested in taking ownership. Initial discussions with the Port Arthur Historic Site indicate that they may consider the return of the Matilda to them. Alternatively an expression of interest could be called. The issue of ‘public ownership’ may be problematic. Depending on the outcome of the Expression of Interest process there may be options for a public authority to have ownership with an appropriate agreement for management by an interest group.

REcommendation

That:

1. The Council authorise the General Manager to formally approach the Port Arthur Historic Site with regard to the return of the Matilda.

2. If the Port Arthur Historic Site is not interested in the return, an Expression of Interest be called to identify possible options for the future of The Matilda.

N D Heath

General Manager

Date: 10 October 2019

File Reference: F19/132749

Item No. 6.5

Agenda (Open Portion)

Finance and Governance Committee Meeting

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15/10/2019

REPORT TITLE: Update of Customer Service Charter and Annual Complaint Report 2018/19

REPORT PROVIDED BY: Principal Advisor - Customer Relations

Deputy General Manager

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to update the customer service charter and provide the statistics in relation to registered complaints.

2. Report Summary

2.1. The Council adopted its latest Customer Service Charter at its meeting on 21 May 2018.

2.2. The customer services charter has been updated to reflect the new City of Hobart values adopted in January this year, it includes more commentary about our commitment to customer service as well as expanding the definition of a complaint.

2.3. An updated version has been prepared and is provided with track changes as Attachment A, a clean version without track changes can be seen as Attachment B.

2.4. Section 339F (5) of the Local Government Act 1993 requires the General Manager to provide the Council with a report at least once a year with the number and nature of complaints received.

2.4.1. During 2018/19, 22 complaints were received.

2.4.2. By comparison 26 complaints were received during 2017/18.

2.5. It is anticipated the expansion of the complaints definition and the improved process for capturing complaints will lead to an increase in the numbers reported.

2.6. An internal awareness campaign in relation to compliment and complaint management has led to the increased recording of this data for the 2019/20 period.

2.7. To date in the first quarter of 2019/20 there has been a similar number of compliments recorded, as there has been complaints.

2.8. Centralised management of complaints has increased the visibility and requirement to ensure complaints are captured. Oversight via the new management process has also assisted in ensuring that initial acknowledgement and contact is made within the appropriate timeframes.

2.9. Of the complaints received during 2018/19, twenty related to officer behaviour.

2.9.1. City Amenities Division, Civil Works Crew had ten officer behaviour complaints. The focus of these complaints was on poor driving or behaviour of staff while in a CoH Vehicle.

2.9.2. City Innovation Division, Parking and Information officers had ten complaints related to rude or unhelpful officer behaviour. These complaints came from customers;

· receiving an on street parking infringement

· using off street car parking facilities

· making a call to our phone services

2.9.3. Two complaints related to customer queries not being responded to in a timely manner.

2.10. In all cases an investigation was carried out by the respective manager with feedback provided to the complainant.

2.11. The introduction of the Council’s first whole of organisation customer request system will considerably assist in capturing, and responding to customer request and subsequent complaints.

2.12. The Capital City Strategic Plan 2015-2025 commits the organisation to “Deliver best practice customer service across the organisation”.

2.13. This matter is delegated to the Council.

3. Recommendation

That:

1. The report be received and noted.

2. Council endorse the updated Customer Service Charter

anna holland sig

Anna Holland

Principal Advisor - Customer Relations

Heather Salisbury

Deputy General Manager

Date: 10 October 2019

File Reference: F19/119268; 11-15-9

Attachment a: Updated Customer Service Charter - Track Changes ⇩

Attachment b: Updated Customer Service Charter - Clean Version ⇩

Item No. 7.1

Agenda (Open Portion)

Finance and Governance Committee Meeting

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15/10/2019

7. Motions of which Notice has been Given

7.1 Elected Members - Random Illicit Drug and Alcohol Testing

FILE REF: F19/129656; s13-001-09

Aldermen Briscoe / Denison

Motion

“That a report be prepared addressing the following:

· The Elected Members (All Aldermen, Councillors, Deputy Lord Mayor and Lord Mayor) be included in the City of Hobart staff random illicit drug and alcohol testing program.

· The results (including nil results) of the Elected Members drug and alcohol testing be published on the City of Hobart webpage regularly as part of the monthly reporting.

· The consequences if an Elected Member fails the drug or alcohol test, including not participating in any meetings for that day (similar to the City of Hobart staff policy)

· Appropriate counselling being offered to repeat offenders.”

Rationale:

“Elected Members are held to the highest standard of behaviour, as the decisions they make involve, at times, spending high sums of money and making important strategic and planning decisions.

Impaired judgment through illicit drug or alcohol use prior to meetings would affect the quality of decisions made. Only zero tolerance is acceptable.

The absence of testing of the Elected Members of HCC is an anomaly that can be readily corrected by this motion.

It is also arguable that the Council Chamber and meeting rooms are a workplace under the Work Health and Safety legislation and that the elected members are workers under the legislation and that similar rules should apply to elected members as they do to employees. All City of Hobart employees are subject to random drug and alcohol testing.

The Unions in the past have called for the testing of Elected Members in line with the City of Hobart staff.”

Alderman Jeff Briscoe Alderman Tanya Denison.

The General Manager reports:

“In line with the Council’s policy in relation to Notices of Motion, I advise that the matter is considered to be within the jurisdiction of the Hobart City Council as it relates to safety in the Council workplace.”

Agenda (Open Portion)

Finance and Governance Committee Meeting

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15/10/2019

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

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15/10/2019

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:

· contracts, and tenders, for the supply of goods and services and their terms, conditions, approval and renewal

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

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

· matters relating to actual or possible litigation taken, or to be taken, by or involving the council or an employee of the council

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

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 Contract Extension - Contract No. 5798 - Provision of Mobile Phone Services

LG(MP)R 15(2)(d)

Item No. 4.2 Request to Waive Requirement to Tender - Australia Post PostBillPay Services

LG(MP)R 15(2)(d)

Item No. 4.3 Sale of Land for Unpaid Rates

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

Item No. 4.4 Write-Off of Debts

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

Item No. 4.5 Outstanding Sundry Debts as at 30 September 2019

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

Item No. 4.6 Remissions of Rates and Charges Granted

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

Item No. 4.7 Outstanding Long Term Parking Permit Debts as at 30 September 2019

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

Item No. 5 Committee Action Status Report

Item No. 5.1 Committee Actions - Status Report

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

Item No. 6 Questions Without Notice