Page 1 of 9 MINUTES OF A GOVERNANCE AND FINANCE COMMITTEE MEETING OF THE DEVONPORT CITY COUNCIL HELD IN THE COUNCIL CHAMBERS ON TUESDAY, 15 MARCH 2016 COMMENCING AT 6:30PM PRESENT:
Ald J T Keay (Chairman) Ald C D Emmerton Ald S L Martin Ald L M Perry
Aldermen in Attendance: Ald L M Laycock Ald J F Matthews Council Officers: General Manager, P West Deputy General Manager, M Atkins Executive Manager Corporate & Business, S Crawford Executive Manager Organisational Performance, K Peebles Governance Coordinator, K Hampton Audio Recording: All persons in attendance were advised that it is Council policy to record Council meetings, in accordance with Council’s Audio Recording Policy. The audio recording of this meeting will be made available to the public on Council’s website for a minimum period of six months. 1.0
APOLOGIES The following apologies were received for the meeting. Name Ald Goodwin Ald Rockliff
2.0
Reason Apology Leave of Absence
DECLARATIONS OF INTEREST There were no Declarations of Interest.
3.0
PROCEDURAL 3.1 3.1.1
PUBLIC QUESTION TIME QUESTIONS ON NOTICE FROM THE PUBLIC
Nil 3.1.2
QUESTION WITHOUT NOTICE FROM THE PUBLIC
MR TREVOR SMITH - 7 GLEN COURT, DEVONPORT Q1. I noticed in your Finance Report for February 2016, that you have omitted to include the amount of interest paid on your loan of $15 million dollars, to purchase buildings in and around the Devonport CBD. This should be a separate item included in your report and not fudged with other figures!!! After all, the Ratepayers of this LIVING CITY have a right to be informed.
Minutes of Governance and Finance Committee meeting held 15 March 2016
Page 2 of 9 Q2. You state in your Strategic Plan Progress Report, ‘That Devonport is the Retail and Service Centre for the North West Tasmania’. Do you judge this outcome on the population of Devonport or the number of shops open for business?? Does this also include the growing number of empty shops around this LIVING CITY as well? Response The questions were taken on notice and a response will be provided in writing. MR PETER SCHULZE - 6 ENDERLY COURT, AMBLESIDE The Devonport Council held a public meeting on Monday 29th Feb 2016, this meeting was only about one week after Council had disclosed (Advocate 24th Feb) that they were putting $50 million into stage one, apparently because private developers saw the project as unviable. At the meeting a Slide Show displayed the following cost inputs for Stage 1:$ 578,000 $ 987,000 $1,000,000
Rentals Parking Fees Council Rental
The Council Rental Figure was qualified in that it was notional. Most who viewed the slide regarded those figures as income that justified the project. However when clarification was sought at a meeting with Council by a ratepayer group on Tuesday 8th of March 2016 the Parking fee figure did not seem credible as it indicated a 40% increase from current receipts and the Council Rental was being paid by Council to itself from a property they would own, that also seemed peculiar. At the meeting with Council we were told that these figures had been ‘qualified’ and were not the figures used in the Long Term Financial Plan and that in the case of the Parking fees the figure displayed was just from the new multi-story car park and there had been no deduction from the loss from other meters that would not be used. At the public meeting I had been misled by what I later saw as dodgy accounting or even fudged figures? The figures displayed to ratepayers at the public meeting had little relevance to the economic viability of the project or to how the loan repayments could be met, so in that sense they were misleading, and may justify a complaint to the Director under Section 339E of the Local Government Act. My question relates to the LIVING CITY Project and the cost inputs as displayed at the Public meeting on the 29th Feb. being: $578,000 Rentals
$987,000 Parking Fees
and $1,000,000 Council Rental
Because the Parking fees do not have a reduction because of the lower use of existing meters, and because the Council rental is being paid by council for a building, they will own: does the Council therefore accept that these figures have little relevance to the economic viability of the project, nor do they give any real indication on how the loan can be serviced, so in this sense they were misleading? Response The question was taken on notice and a response will be provided in writing.
Minutes of Governance and Finance Committee meeting held 15 March 2016
Page 3 of 9 TONY BUTLER - 2 DREW STREET, EAST DEVONPORT Q1
On many occasions I have asked Council about 26 Pardoe Street in East Devonport. Reading through all the information I have got the building and the activities in there should have been closed down two years ago. This has been going on for five years it must be asking a lot to find out what has been going on there. How come we can’t get an answer?
Q2
Why can’t something be done with the old cars in Bass Street, East Devonport?
Response The questions were taken on notice and a response will be provided in writing. BOB VELLACOTT - 11 COCKER PLACE, DEVONPORT The following are the views of an Accountant (From someone who knows how to add up one and one and gets TWO). It seems to me that most of the income generated from the LIVING CITY project is questionable: 1.
Car parking $1.70 per hour x 3 hours per day x 365 days) = $996,450 cf $987,000 per dashboard. What about the existing revenue and fines which will be forgone. This is not all NEW income, so what replaces this revenue to fund existing programmes etc?
2.
Multipurpose building has income of $1,176,000. But, $1,000,000 of this is notional rent from the council. They are not paying this amount now, so this will need to be found from within existing revenues?
3.
Take these amounts out and there is very little left to fund the loan P+i.
Each “new” retail area has an effect on the existing spaces. The mere construction of a retail space does not increase the retail spend. There may be marginal increase if new retail offerings can effect a change in behaviour. ie move and online purchase to in store. What is the effect on business confidence in Devonport, when the council is proposing to “shift” the focus of the town? Rooke Street traders and property owners are facing substantial sovereign risk to their investments. This plan does nothing to consolidate retail areas, it stretches an underperforming, patchy, vacancy ridden area even thinner. Apart from some uninformed ideas of creating a food pavilion which showcases local produce, there is nothing in the plan which would add to a tourist experience in Devonport. Even this idea does not seem tourist friendly. There is a lack of experience in this sort of sanitised offering. In my opinion the experience is in visiting the place that the produce is grown or produced. This cannot compete with farm/factory tours, for starters there is not likely to be the connection with the passionate producer. I do not believe that our population is large enough to sustain specialist food outlets ( which will necessarily be seasonal in many instances) without a substantial change in consumer mindset. While local produce is preferred in principal, for the vast majority of people, cost is pre-eminent. This is especially true in a society which has a lower socioeconomic profile. Tourists are attracted to experiences: MONA, mountain bike trails, bush walks, cellar door wine tasting. Devonport will never have the population base to become a shopping Mecca. There is a reason people flock to Sydney and Melbourne for shopping experiences. It is possible to have a wider range not only of goods but also outlets, where the base population is large enough to sustain variety. We need only look south to Sheffield to see how a simple idea done well can attract visitors. The mural trail not only attracts tourists, it encourages them to explore the Minutes of Governance and Finance Committee meeting held 15 March 2016
Page 4 of 9 region, by taking them on a journey. The Mersey River is beautiful, and should be the focal point of our City, but to attract visitors there needs to be a reason to stay and to explore. There is an existing bike/walking track, why not use the parklands to showcase sculpture and tie this into other cultural activities which exist in the City? Q1
Do you Mayor and Aldermen agree with the assessment/conclusion for points 1 & 2 in regard to the car parking and Council paying itself rental of $1 Million per year in rent?
Q2
Would you also agree with all the other comments?
Response The questions were taken on notice and a response will be provided in writing. PETER STEGMAN - 118 RIVER ROAD, EAST DEVONPORT Q1
What makes the Council believe that they have the support of the ratepayers for this amended plan, because my research indicates that nearly the whole of the City itself is totally opposed to it and I am talking particularly about the CBD because this new plan intends to create a new CBD totally separate which is going to downgrade the valuation of those properties in this area.
Q2
The other question I have is with the contract that you are about to let I believe it is a guaranteed maximum price contract for the design to construct tender submission which the Council has accepted. I really struggle to believe that you can agree and commence work on a project of this magnitude that you have sold to us with a guaranteed maximum price and yet you are going to continue over the next two months to negotiate with the builder. That is just an appalling management tool, I can’t imagine how anyone would go into a contract like this, start work then start to negotiate and if you can’t agree on the negotiations, you stop work and maybe even sack the builder you have employed. My question is why is it necessary to commence work on this LIVING CITY project prior to finalising the construction contract?
Response The questions were taken on notice and a response will be provided in writing. 3.2
QUESTIONS FROM ALDERMEN
Nil
3.3 NOTICES OF MOTION Nil 4.0
GOVERNANCE AND FINANCE REPORTS 4.1
PUBLIC WI-FI EXPANSION (D404599) GFC 01/16 RESOLUTION MOVED: SECONDED:
Ald Martin Ald Perry
That it be recommended to Council that the report of the Executive Manager Corporate and Business Services be received and Council: 1.
note the information relating to the public Wi-Fi utilisation;
Minutes of Governance and Finance Committee meeting held 15 March 2016
Page 5 of 9 2.
agree to proceed with the provision of free Wi-Fi services to include the Fourways, East Devonport Shopping Precinct, expanded CBD area and the Mersey Bluff, within the existing budget allocation. For
Ald Keay Ald Emmerton
Against
For
Ald Martin Ald Perry
Against
CARRIED UNANIMOUSLY 4.2
DOG MANAGEMENT POLICY - COMMUNITY FEEDBACK (D409542) GFC 02/16 RESOLUTION MOVED: SECONDED:
Ald Perry Ald Martin
That it be recommended to Council that in relation to the Dog Management Policy 2016, Council: (a)
note the feedback received;
(b)
amend the draft as outlined in this report; and
(c)
adopt the attached Policy with immediate effect. For
Ald Keay Ald Emmerton
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY 4.3
RENEW DEVONPORT (D409553) GFC 03/16 RESOLUTION MOVED: SECONDED:
Ald Emmerton Ald Martin
That it be recommended to Council that the report of the Executive Manager Corporate, Community and Business Services regarding Renew Devonport be received and noted and that Council: 1.
wind up the program due to a lack of support from landlords; and
2.
agree the residual money from the State Government of $2,980.74 be returned to the Department of State Growth from the Devonport Chamber of Commerce where it is currently held in trust.
Ald Keay Ald Emmerton
For
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY
Minutes of Governance and Finance Committee meeting held 15 March 2016
Page 6 of 9 4.4
DULVERTON REGIONAL WASTE MANAGEMENT AUTHORITY - AMENDMENTS TO RULES (D409587) GFC 04/16 RESOLUTION MOVED: SECONDED:
Ald Martin Ald Perry
That it be recommended to Council that it approves the amendments to the Dulverton Regional Waste Management Authority Rules in accordance with the “1 September 2016 Rules Draft” attached to this report. For
Ald Keay Ald Emmerton
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY 4.5
COUNCIL MEETING DATES - NOTIFICATIONS (D409775) GFC 05/16 RESOLUTION MOVED: SECONDED:
Ald Perry Ald Martin
That it be recommended to Council that it note that advertising of Council meetings has been undertaken in accordance with the Local Government (Meeting Procedures) Regulations 2015 and that a comment outlining the ordinary meeting schedule will be included in the rates brochure to be distributed with the annual rate notices. For
Ald Keay Ald Emmerton
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY 4.6
LOCAL GOVERNMENT ASSOCIATION OF TASMANIA AND AUSTRALIAN LOCAL GOVERNMENT ASSOCIATION - CALL FOR MOTIONS (D409785) GFC 06/16 RESOLUTION MOVED: SECONDED:
Ald Perry Ald Emmerton
That it be recommended to Council that it note the details in relation to the 2016 Local Government Association of Tasmania Annual General Meeting and General Meeting and the 2016 Australian Local Government Association’s 2016 National General Assembly. Ald Keay Ald Emmerton
For
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY
Minutes of Governance and Finance Committee meeting held 15 March 2016
Page 7 of 9 4.7
REVIEW OF PUBLIC QUESTION TIME GUIDELINES (D409822) GFC 07/16 RESOLUTION MOVED: SECONDED:
Ald Martin Ald Perry
That it be recommended to Council that Council’s updated Public Question Time guidelines be endorsed as follows: 1.
Public participation shall take place at Council meetings in accordance with Regulation 31 of the Local Government (Meeting Procedures) Regulations 2015.
2.
Public participation will be the first agenda item following the formal motions; Apologies, Minutes and Declarations of Interest.
3.
A maximum period of time of 30 minutes in total will be allowed for public participation.
4.
A maximum period of time of 3 minutes will be allowed for each individual.
5.
A member of the public may give written notice to the General Manager 7 days before an ordinary meeting of Council of a question to be asked at that meeting.
6.
A member of the public will be entitled to ask questions relating to the activities of Council, giving an explanation that is necessary to give background to the question and ask supplementary or follow up questions relating to that specific matter that may come to light as a result of the answer.
7.
Questions do not have to be lodged prior to the meeting, however they would be preferably provided in writing.
8.
A question by any member of the public and an answer to that question are not to be debated.
9.
The Chairperson may refuse to accept a question. If the Chairperson refuses to accept a question, the Chairperson is to give reason for doing so. For
Ald Keay Ald Emmerton
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY 4.8
INDEPENDENT LIVING UNITS - RATING ARRANGEMENTS (D409964) GFC 08/16 RESOLUTION MOVED: SECONDED:
Ald Martin Ald Perry
That it be recommended to Council that the report of the General Manager relating to the rating arrangements for independent living units be received and noted and that: 1.
Council consult with the aged care providers regarding its intention to:
Minutes of Governance and Finance Committee meeting held 15 March 2016
Page 8 of 9
2.
(a)
withdraw the 100 per cent remission/exemption from the General Rate for independent living units managed by a not-forprofit/charitable institution with effect from the 2016/17 financial year.
(b)
phase in at 20 per centre per year the levying of the general rate on aged care providers over the next five financial years for all existing independent living units;
(c)
require any units under construction or proposed in the future to be charged the full General Rate from time of valuation.
following feedback from the aged care sector a further report be provided to Council for consideration prior to the finalisation of the 2016/17 budget. For
Ald Keay Ald Emmerton
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY 4.9
FINANCE REPORT FOR FEBRUARY 2016 (D410190) GFC 09/16 RESOLUTION MOVED: SECONDED:
Ald Perry Ald Emmerton
That it be recommended to Council that the Finance Report for February 2016 be received and noted. For
Ald Keay Ald Emmerton
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY 4.10
ANNUAL PLAN PROGRESS REPORT - NOVEMBER 2015-FEBRUARY 2016 (D402585) GFC 10/16 RESOLUTION MOVED: SECONDED:
Ald Perry Ald Martin
That it be recommended to Council that the 2015/16 Annual Plan Progress Report for the period 1 November 2015 to 29 February 2016 be received and noted.
Ald Keay Ald Emmerton
For
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY
Minutes of Governance and Finance Committee meeting held 15 March 2016
Page 9 of 9 4.11
ELECTED MEMBERS' EXPENDITURE REPORT - NOVEMBER 2015 TO FEBRUARY 2016 (D409461) GFC 11/16 RESOLUTION MOVED: SECONDED:
Ald Emmerton Ald Perry
That it be recommended to Council that the report advising of Aldermen expenses be received and noted. For
Ald Keay Ald Emmerton
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY 4.12
GOVERNANCE & FINANCE REPORT (D408937) GFC 12/16 RESOLUTION MOVED: SECONDED:
Ald Martin Ald Perry
That it be recommended to Council that the Governance and Finance report be received and noted. Ald Keay Ald Emmerton
For
Against Ald Martin Ald Perry
For
Against
CARRIED UNANIMOUSLY
5.0
CLOSURE
There being no further business on the agenda the Chairman declared the meeting closed at 7:30pm. Confirmed
Chairman
Minutes of Governance and Finance Committee meeting held 15 March 2016