NAMBUCCA SHIRE COUNCIL

 

 

Ordinary Council Meeting - 26 November 2015

 

LATE AGENDA                                                                                        Page

 

 

 

   

9        General Manager Report

9.10   Response to Applicants Proposed Changes to Conditions of Consent............................... 2

9.11   Purchase of Computer Software in Conjunction with Gloucester, Kempsey and Bellingen Councils for Service Reviews............................................................................................................. 14

10      Assistant General Manager Corporate Services Report

10.6   Year End Financial Statement - 30 June 2015 - Addendum to Item 10.3............................. 17    


      


Ordinary Council Meeting                                                                                            26 November 2015

General Manager's Report

ITEM 9.10    DA2015/093      261115         Response to Applicants Proposed Changes to Conditions of Consent

 

AUTHOR/ENQUIRIES:    Daniel Walsh, Senior Town Planner         

 

Summary:

 

This late report is a supplementary report for DA2015/093 and has been prepared in response to the applicant’s submission to Council regarding amendments to conditions contained within the recommended conditions of consent. The applicant’s submission has been included within attachment 1.

 

It is recommended that amendments be made to the recommended conditions of consent which have been included within attachment 2.

 

 

Recommendation:

 

That Council as the consent authority, pursuant to Section 80 of the Environmental Planning and Assessment Act 1979, grant consent for Development Application 2015/093 for the use of existing buildings on site as a truck depot incorporating the operation of an existing water carting business on Lot 202 DP 841112, subject to the schedule of conditions outlined in attachment 2 of this report. 

 

 

 

OPTIONS:

 

(a) Grant consent to the development application, either unconditionally or subject to conditions, or

(b) Refuse to grant consent to the development application and take compliance action.

 

 

DISCUSSION:

 

Development application DA2015/093 has been referred to Council for determination (Item 9.9 of the business paper). The applicant sent an email to all Councillors on 24 November 2015 with an attachment containing suggested changes to recommended conditions 16, 17, and 20. The applicants suggested changes have been included within attachment 1.

 

In response to the applicants suggested amendments; Council staff provide the following advice:

 

Condition 16 – This condition restricts the servicing of vehicles on the premises between 7am-6pm Monday to Friday and between 8am-1pm on Saturdays. The intent of including such a condition is to make clear the times noise associated with the servicing of vehicles can be heard on adjoining residential premises. This provides clarity for the operator, surrounding residences, and Council staff undertaking regulatory investigations.

 

It is to be made clear that this condition does not restrict the servicing of vehicles outside the specified times if it cannot be heard at surrounding residential premises. Given the separation of the development from the closest dwelling it is considered that a large proportion of servicing activates could occur without resulting in noise impacts on the closest residence. Please note that condition 19 restricts noise levels experienced at adjoining residences within the specified times to the acceptable limits contained within the NSW Industrial Noise Policy (INP).

 

To provide greater potential for lower noise levels, greater flexibility to the applicant, and to provide clarity on the term ‘residential premises’, it is recommended that the following amendments be made to condition 16:

 

·   Instead of restricting all servicing of vehicles to the open shed facing the closest adjoining dwelling; permit the servicing of vehicles within any of the buildings associated with the development.

·   Permit the applicant to emit noise levels which can be heard at adjoining residential premises between 7am-6pm on a Saturday. These times are consistent with the ‘time of day’ provisions contained within the INP.

·   Given the rural setting of the development, replace the term ‘residential premises’ with ‘within 30m of a surrounding dwelling’. This is consistent with the INP and will make clear that the consent is not restricting noise over the entirety of surrounding properties.

 

The above amendments have been made to Condition 16 and incorporated within the amended conditions of consent contained within attachment 2.

 

Condition 17 – The intent of this condition is to restrict the use of the truck depot for the servicing of trucks associated with the development. This is to ensure the development does not become a ‘vehicle repair station’ which is a separate land use and prohibited within the zone.

 

As proposed by the applicant and controlled by condition 18, only three trucks are associated with the proposed truck depot. Given that one of the proposed trucks to be stored on the property is not owned or leased by the owners of the business; it is recommended that condition 17 be amended by deleting the words ‘owned/leased by the owners of the business undertaking on the land’ with ‘associated with the development’.

 

The above amendment has been made to Condition 17 and incorporated within the amended conditions of consent contained within attachment 2.

 

Please note the applicant’s statement that indicates that other plant and equipment not associated with the development will be serviced on site is not permitted on the land under the Nambucca Local Environmental Plan 2010 unless it is proposed to store the plant and equipment on site when not in use as part of the truck depot.

 

Condition 20 – The intent of this condition was to limit the use of the eastern access road to minimise potential impacts on the adjoining property and to provide clear timeframes for its use.

 

Having considered the applicants point of view, the separation of the closest section of the eastern road from the closet dwelling (90m), and the existing dwellings proximity to Wilson Road (40m); it is considered reasonable to amend condition 20 by permitting its use for the servicing of trucks associated with the development. Timeframes for its use would be regulated by condition 16 which will be more flexible for the applicant, while still minimising potential amenity impacts on the closest adjoining dwelling by focusing the majority of truck movements on the western road.

 

The above amendment has been made to Condition 20 and incorporated within the amended conditions of consent contained within attachment 2.

 

Additional Amendments

It is also recommended that condition 11 and a sectional heading be amended to require the applicant to obtain a building certificate and undertake all works required to be undertaken as part of the conditions of consent within four months from the operation of the consent. This will ensure Council can enforce regulatory action on the applicant if the relevant conditions of consent are not complied with.

 

Condition 7 has been amended to reflect Council’s standard requirements for the sealing of driveway entrances within rural areas.

 

Condition 18 has also been amended to reflect the intention of the condition which is to limit the development to the storage and servicing of no more than three watering trucks on the property.

 

The above amendments have been included within attachment 2.

 

 

CONSULTATION:

 

Senior Health & Building Surveyor

Area Health & Building Surveyor

 

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

N/A

 

Social

 

N/A

 

Economic

 

N/A

 

Risk

 

N/A

 

 

FINANCIAL IMPLICATIONS:

Nil.

Direct and indirect impact on current and future budgets

Nil.

 

Source of fund and any variance to working funds

Nil.

 

Service level changes and resourcing/staff implications

Nil.

 

Attachments:

1

38230/2015 - Attachment 1 - Applicants submission regarding recommended conditions

 

2

38229/2015 - Attachment 2 - Amended Recommended Conditions of Consent

 

  


Ordinary Council Meeting - 26 November 2015

Response to Applicants Proposed Changes to Conditions of Consent

 

Recommended Conditions of Consent

 

DETAILS OF CONDITIONS

 

GENERAL CONDITIONS OF THIS CONSENT

 

Development is to be in accordance with approved plans

 

1        The development is to be implemented generally in accordance with the plans and supporting documents endorsed with the Council stamp, dated TBC and authorised signature, and set out in the following table except where modified by any conditions of this consent.

 

Plan No/Supporting Document

Version

Prepared by

Dated

Statement of Environmental Effects

-

Neale + Simone Howle

-

Site Plan + Building Plan + ENGINEERING

15-070

Ron Hawkins & Associates

8.10.15

 

In the event of any inconsistency between conditions of this development consent and the plans/ supporting documents referred to above, the conditions of this development consent prevail.

 

Compliance with Building Code of Australia and insurance requirements under Home Building Act 1989

 

2        All building work must be carried out in accordance with the requirements of the Building Code of Australia as in force on the date the application for the relevant construction certificate or complying development certificate was made.

 

          In the case of residential building work for which the Home Building Act 1989 requires there to be a contract of insurance in force in accordance with Part 6 of that Act, that such a contract of insurance is in force before any building work authorised to be carried out by the consent commences.

 

This condition does not apply:

 

a        to the extent to which an exemption is in force under clause 187 or 188, subject to the terms of any condition or requirement referred to in clause 187 (6) or 188 (4), or

b        to the erection of a temporary building.

 

Existing buildings to be bought into compliance with fire safety provisions

 

3        In accordance with Clause 93 and 94 of the Environmental Planning & Assessment Regulation 2000 Council requires the existing building(s), subject to a development application, be bought into partial compliance with the provisions of the Building Code of Australia in respect to the following table:

 

Building Code of Australia edition (Year)

Section & Clause No to be complied with

Description of upgrade works

2015

Services & Equipment

Part E1 Fire Fighting Equipment

E1.6 Portable fire extinguishers.

Provide portable fire extinguishers in accordance with Sections 1,2,3 and 4 of AS2444

 

 

 

 

THE FOLLOWING CONDITIONS ARE TO BE COMPLIED WITH DURING CONSTRUCTION

 

Construction times

 

4        Any works involving the generation of noise which extends beyond the boundary of the land, other than works required in an emergency to avoid the loss of life, damage to property and/or to prevent environmental harm, shall only be carried out between 7:00 am and 6:00 pm Monday to Saturday inclusive. No works shall occur on public holidays.

 

The builder/site manager is responsible to instruct and control sub-contractors regarding the hours of work

 

 

Builders rubbish to be contained on site

 

5        All builders rubbish is to be contained on the site in a ‘Builders Skips’ or an enclosure. Building materials are to be delivered directly onto the property. Footpaths, road reserves and public reserves are to be maintained clear of rubbish, building materials and all other items.

 

 

Consent required for works within the road reserve

 

6        Consent from Council must be obtained for all works within the road reserve pursuant to Section 138 of the Roads Act 1993. Three (3) copies of engineering construction plans must accompany the application for consent for works within the road reserve. Such plans are to be in accordance with Council's Adopted Engineering Standard.

 

 

THE FOLLOWING CONDITIONS ARE TO BE COMPLIED WITH PRIOR TO ISSUE OF THE BUILDING CERTIFICATE

 

Sealed driveway in accordance with Roads Act

 

7        A sealed driveway is to be constructed 3 metres in from the edge of the road formation in accordance with the Roads Act consent.

 

Damage to Council’s Infrastructure

 

8        Where any damage occurs to Council’s infrastructure during construction, such as kerb and gutter, footpaths, inlet pipes, etc, fronting the development site, the principal contractor shall replace or make good the damaged infrastructure before the occupation certificate is issued.

 

Rural stormwater disposal

 

9        Stormwater must be collected and disposed of in a controlled manner such that stormwater flows are:

a        Clear of buildings and infrastructure,

b        Clear of effluent disposal areas,

c        Not concentrated so as to cause soil erosion,

d        Not directly to a watercourse, and

e        Not onto adjoining land.

 

Works to be completed prior to the Use and issue of the Building Certificate

 

11      All engineering works as specified by Ron Hawkins & Associates Ref No 15-070 are to be completed and inspected by Council prior to the issue of the Building Certificate.

 

Design and installation of the fuel tank

 

12      The diesel fuel tank must comply with the requirements of the NSW Work Cover Authorities and Australian Standard AS1940-2004 “The Storage and Handling of Flammable and Combustible Liquids”.  In this regard, certification from a Work Cover Authority Approved Consultant must be submitted to Council.

 

THE FOLLOWING CONDITIONS MUST BE COMPLIED WITH AT ALL TIMES

 

Building not to be used for residential occupation

 

13      The building must not be used for any form of residential occupation.

 

Fire Safety Certificate (Part 9, Division 4 Clause 172 of the EP&A Regs 2000)

 

14      As soon as practicable after a final Fire Safety Certificate is issued, the owner of the building to which it relates:

 

a        must cause a copy of the Certificate (together with a copy of the Fire Safety Schedule) to be given to the Commissioner of the NSW Fire Brigade, and

b        must cause a copy of the Certificate (together with a copy of the current Fire Safety Schedule) to be prominently displayed in the building.

 

Access must be permitted to Council officers

 

15      Authorised Council Officers must be permitted access to the property during normal business hours for the purpose of ensuring compliance with consent conditions.

 

Servicing of Vehicles associated with business

 

16      All servicing of the vehicles shall be conducted within the existing workshop that is operated in association with truck depot. Waste from servicing must be managed in accordance with EPA guidelines. Any associated noise that is generated from the servicing of the water carting vehicles must not unreasonably interfere with the amenity of the area. In particular noise when audible on adjoining residential premises, can only occur:

 

A    Monday to Friday from 7.00am to 6.00pm

B    Saturday, from 8:00am to 1.00pm 

 

RESPONSE – APPLICANT - NEALE AND SIMONE HOWLE:

 

Servicing of vehicles associated with Business – We are concerned with the limitation of hours of service time allotted in this consent.

 

Currently two trucks are working on the Warrell Creek to Nambucca Heads Road Project (WC2NH). Both trucks work six days a week. This only leaves limited time to maintain and prepare vehicles for the upcoming week. The principal contractor demands the highest preventative maintenance and safety schedule. Any vehicle defects are reported on the daily prestart checks. Depending on seriousness of faults, defects are often attended to after hours at our residence due to commercial businesses being closed. All major work is carried out away from our residence. The third truck is garaged at existing the shed (erected and council approved approx 2 years ago). Hours of operation are weather dependent and work demand. This truck leaves the residence between 6.30am and 7am and returns around 4pm. Please note other 2 trucks mentioned are only here on completion of working week, thus limiting truck movements.

 

In our opinion all adjoining properties are located well away from these areas and any associated noise would not interfere with the amenity of the area.

 

 

17      The use of the truck depot to service vehicles and machinery that are not owned/leased by the owners of the business undertaking on the land is not permitted under this development consent.

 

The use of the truck depot to service vehicles and machinery that are not owned/leased by the owners of the business undertaking on the land is not permitted under this development consent - RESPONSE – APPLICANT - NEALE AND SIMONE HOWLE:

 

We believe restricting vehicle servicing and safety maintenance to only ‘’owned vehicles’’ is unfair and unreasonable as the third truck (owned by my father in law) is maintained on the premises usually after hours. This truck has limited use therefore repairs are infrequent but sometimes necessary again adhering to vehicle servicing and safety schedule.

 

Although, I am a qualified mechanic by trade and due to my family having a background in earthworks there are occasions when plant and equipment will be serviced, maintained or garaged on our premises. Please clarify restraint on “trade”. Please note there is no financial gain from this goodwill.

 

Number of Trucks Onsite

 

18      No more than 3 watering trucks are to be utilised as part of the operation of the business should they be stored on the property subject to the development application.

 

Noise

 

19      Noise emitted from the truck depot must comply with the requirements for industrial premises contained in the NSW Industrial Noise Policy and must not cause the relevant amenity criteria in Table 2.1 in the NSW Industrial Noise Policy to be exceeded.

 

Use of Internal Property Access

 

20      Vehicles used in association with the operation of the water carting business must use the most western internal property road.  The use of the eastern access road may only be used by the water carting vehicles for servicing and in exceptional circumstances and not before 8am or after 4pm on any day.

 

RESPONSE – APPLICANT - NEALE AND SIMONE HOWLE:

 

We are concerned with the content of this option. Currently there is no access from the western side of shed to the eastern side of the shed.

 

Vehicles are fuelled on the eastern side and scheduled maintenance is performed on this side.

 

Limiting access on eastern road entrance would severely inhibit vehicle maintenance/refueling and safety schedule. Easterly neighbour is approximately 100m from Eastern Road. A thick and bushy tree line exists screening any noise levels to a minimum.

Please note: only one truck is garaged equating to approximately 10 truck movements on the eastern side. On return of remaining trucks at week’s end, truck movements would equate to approximately 14 in total weather permitting and work demand. (most weeks it would have less truck movements due to demand). In our opinion this would not impact increased noise on eastern side.

 

Time restrictions are unreasonable considering we work on a contract basis and need to comply with principal contractors start/finish times and seem unreasonable when other non business vehicles can enter/exit the same road all hours, multiple times with unrestricted noise levels.

 

The access roads are watered to suppress any dust issues, for our benefit only and this is usually carried out outside ‘restricted’ hours.

 

Erosion and Sediment Measures

 

21      Sediment and erosion control measures must be maintained at all times until the site has been stabilised by permanent vegetation cover or hard surface.

 

 

REASONS FOR CONDITIONS

 

i.    To comply with the provisions of Nambucca Local Environmental Plan 2010

 

ii.    To ensure the development is completed in accordance with conditions of consent and approved plans

 

iii.   To preserve the environment and existing or likely future amenity of the neighbourhood

 

iv.   To ensure adequate access to and from the development

 

v.   To protect vegetation

 

vi.   To protect the environment

 

vii.  To preserve the amenity of the area

 

 

NOTES

 

Issue of Building Certificate required

The building must not be occupied until Council has issued a Building Certificate.

 

Penalties apply for failure to comply with development consents

Failure to comply with conditions of this development consent may lead to an on the spot fine (generally $750 or $1500 Corporation) being issued pursuant to Section 127A of the Environmental Planning & Assessment Act 1979 or prosecution pursuant to Section 125 of the Environmental Planning & Assessment Act 1979.

 

Signed:

 

APPLICANT - NEALE AND SIMONE HOWLE


Ordinary Council Meeting - 26 November 2015

Response to Applicants Proposed Changes to Conditions of Consent

 

Recommended Conditions of Consent

 

DETAILS OF CONDITIONS

 

GENERAL CONDITIONS OF THIS CONSENT

 

Development is to be in accordance with approved plans

 

1        The development is to be implemented in accordance with the plans and supporting documents endorsed with the Council stamp, dated TBC and authorised signature, and set out in the following table except where modified by any conditions of this consent.

 

Plan No/Supporting Document

Version

Prepared by

Dated

Statement of Environmental Effects

-

Neale + Simone Howle

-

Site Plan + Building Plan + ENGINEERING

15-070

Ron Hawkins & Associates

8.10.15

 

In the event of any inconsistency between conditions of this development consent and the plans/ supporting documents referred to above, the conditions of this development consent prevail.

 

Compliance with Building Code of Australia

 

2        All building work must be carried out in accordance with the requirements of the Building Code of Australia as in force on the date the application for the relevant construction certificate was made.

 

Existing buildings to be bought into compliance with fire safety provisions

 

3        In accordance with Clause 93 and 94 of the Environmental Planning & Assessment Regulation 2000 Council requires the existing building(s), subject to the development application, be bought into partial compliance with the provisions of the Building Code of Australia in respect to the following table:

 

Building Code of Australia edition (Year)

Section & Clause No to be complied with

Description of upgrade works

2015

Services & Equipment

Part E1 Fire Fighting Equipment

E1.6 Portable fire extinguishers.

Provide portable fire extinguishers in accordance with Sections 1,2,3 and 4 of AS2444

 

 

 

THE FOLLOWING CONDITIONS ARE TO BE COMPLIED WITH DURING CONSTRUCTION

 

Construction times

 

4        Any works involving the generation of noise which extends beyond the boundary of the land, other than works required in an emergency to avoid the loss of life, damage to property and/or to prevent environmental harm, shall only be carried out between 7:00 am and 6:00 pm Monday to Saturday inclusive. No works shall occur on public holidays.

 

The builder/site manager is responsible to instruct and control sub-contractors regarding the hours of work

 

Builders rubbish to be contained on site

 

5        All builders rubbish is to be contained on the site in a ‘Builders Skips’ or an enclosure. Building materials are to be delivered directly onto the property. Footpaths, road reserves and public reserves are to be maintained clear of rubbish, building materials and all other items.

 

Consent required for works within the road reserve

 

6        Consent from Council must be obtained for all works within the road reserve pursuant to Section 138 of the Roads Act 1993. Three (3) copies of engineering construction plans must accompany the application for consent for works within the road reserve. Such plans are to be in accordance with Council's Adopted Engineering Standard.

 

 

THE FOLLOWING CONDITIONS ARE TO BE COMPLIED WITH WITHIN 4 MONTHS FROM THE OPERATION OF THIS CONSENT

 

Sealed driveway in accordance with Roads Act

 

7        A sealed driveway is to be constructed from the edge of the Wilson Road bitumen to 3 metres within the property boundary in accordance with a consent granted by Council under section 138 of the Roads Act 1993.

 

If the above requirement will result in the sealed section of driveway exceeding 10m in length, sealing a minimum of 10m from the edge of the existing bitumen will satisfy this condition.

 

Damage to Council’s Infrastructure

 

8        Where any damage occurs to Council’s infrastructure during construction, such as kerb and gutter, footpaths, inlet pipes, etc, fronting the development site, the principal contractor shall replace or make good the damaged infrastructure before the occupation certificate is issued.

 

Rural stormwater disposal

 

9        Stormwater must be collected and disposed of in a controlled manner such that stormwater flows are:

a        Clear of buildings and infrastructure,

b        Clear of effluent disposal areas,

c        Not concentrated so as to cause soil erosion,

d        Not directly to a watercourse, and

e        Not onto adjoining land.

 

Building Certificate

 

11      A building certificate must be obtained from Council. All engineering works as specified by Ron Hawkins & Associates Ref No 15-070 are to be completed and inspected by Council prior to the issue of the Building Certificate.

 

Design and installation of the fuel tank

 

12      The diesel fuel tank must comply with the requirements of the NSW Work Cover Authorities and Australian Standard AS1940-2004 “The Storage and Handling of Flammable and Combustible Liquids”.  In this regard, certification from a Work Cover Authority Approved Consultant must be submitted to Council.

 

THE FOLLOWING CONDITIONS MUST BE COMPLIED WITH AT ALL TIMES

 

Building not to be used for residential occupation

 

13      The building must not be used for any form of residential occupation.

 

Fire Safety Certificate (Part 9, Division 4 Clause 172 of the EP&A Regs 2000)

 

14      As soon as practicable after a final Fire Safety Certificate is issued, the owner of the building to which it relates:

 

a        must cause a copy of the Certificate (together with a copy of the Fire Safety Schedule) to be given to the Commissioner of the NSW Fire Brigade, and

b        must cause a copy of the Certificate (together with a copy of the current Fire Safety Schedule) to be prominently displayed in the building.

 

Access must be permitted to Council officers

 

15      Authorised Council Officers must be permitted access to the property during normal business hours for the purpose of ensuring compliance with consent conditions.

 

Servicing of Vehicles associated with business

 

16      Servicing of vehicles shall be conducted within the buildings associated with the development. Waste from servicing must be managed in accordance with EPA guidelines. Any associated noise that is generated from the servicing of the water carting vehicles must not unreasonably interfere with the amenity of the area. In particular noise when audible within 30m of a surrounding dwelling, can only occur Monday to Saturday from 7.00am to 6.00pm.

 

17      The use of the truck depot to service vehicles and machinery that are not associated with the development is not permitted under this development consent.

 

Number of Trucks Onsite

 

18      This development consent is limited to the storage and servicing of no more than three (3) watering trucks.

 

Noise

 

19      Noise emitted from the truck depot must comply with the requirements for industrial premises contained in the NSW Industrial Noise Policy and must not cause the relevant amenity criteria in Table 2.1 in the NSW Industrial Noise Policy to be exceeded.

 

Use of Internal Property Access

 

20      Vehicles used in association with the operation of the water carting business must use the most western internal access road.  The use of the eastern access road may only be used by the water carting vehicles for the purpose of servicing those vehicles.

 

Erosion and Sediment Measures

 

21      Sediment and erosion control measures must be maintained at all times until the site has been stabilised by permanent vegetation cover or hard surface.

 

 

REASONS FOR CONDITIONS

 

i.    To comply with the provisions of Nambucca Local Environmental Plan 2010

 

ii.    To ensure the development is completed in accordance with conditions of consent and approved plans

 

iii.   To preserve the environment and existing or likely future amenity of the neighbourhood

 

iv.   To ensure adequate access to and from the development

 

v.   To protect vegetation

 

vi.   To protect the environment

 

vii.  To preserve the amenity of the area

 

 

NOTES

 

Penalties apply for failure to comply with development consents

Failure to comply with conditions of this development consent may lead to an on the spot fine (generally $750 or $1500 Corporation) being issued pursuant to Section 127A of the Environmental Planning & Assessment Act 1979 or prosecution pursuant to Section 125 of the Environmental Planning & Assessment Act 1979.

 

 


Ordinary Council Meeting                                                                                            26 November 2015

General Manager's Report

ITEM 9.11    SF979              261115         Purchase of Computer Software in Conjunction with Gloucester, Kempsey and Bellingen Councils for Service Reviews

 

AUTHOR/ENQUIRIES:    Michael Coulter, General Manager         

 

Summary:

 

The report is relatively short. A summary is not required.

 

 

Recommendation:

 

1        That Council commit $25,050 for the purchase of the RevuMap software for use in service reviews to be undertaken in conjunction with Bellingen, Kempsey and Gloucester councils.

 

2        That provision for this expenditure be made in the next quarterly budget review.

 

 

OPTIONS:

 

Council has the option of not purchasing the RevuMap software.  If it doesn’t purchase the software it is unlikely that it will be able to participate in conducting a review of its services in collaboration with Bellingen, Kempsey and Gloucester councils.

 

 

DISCUSSION:

 

Council is aware of on-going discussions between the General Managers of Gloucester, Kempsey, Nambucca and Bellingen Councils concerning the opportunities which may exist to provide cheaper or better services by collaborating with the other councils in reviewing particular services and assessing alternative means of supply other than the traditional “stand alone” approach whereby each Council makes their own arrangements for the delivery of services.

 

In 2014 MIDROC engaged consulting firm KPMG to undertake an investigation to identify optimal service delivery models for the MIDROC councils.  With a limited data set, KPMG identified the potential for a 10% saving in councils’ operating costs by councils working collaboratively across their boundaries.  Similar findings have been made in other investigations including by Percy Allan & Associates in reviewing the operations of Sydney North Shore councils.

 

Reviewing the services which an organisation provides (the what, why and how) is crucial to a culture of continuous improvement.

 

Earlier in 2014, Council management had proposed to undertake a review of the services this Council provides, both back of house to internal customers as well as external services to ratepayers.  Following some initial facilitation by Kerry Grace, the whole project was overtaken by Council’s Fit for the Future response and on-going work on asset management required to meet existing plus new audit requirements.

 

Undertaking the same type of service reviews discussed earlier this year but in conjunction with the other Councils doing exactly the same work, opens up additional opportunities for benchmarking on costs as well as applying more intelligence to options for process improvement.

 

Kempsey Shire Council has circulated a proposed draft program for service reviews with the early priorities being internal “back of house” services:

 

·      Information technology

·      Financial services

·      Procurement and contract management

·      Human resources

·      Fleet management

·      Community engagement

·      Customer management

·      Internal audit

·      Asset management

·      Corporate strategy

·      Governance

·      Planning and land-use

 

The preparation of service reviews is a necessary pre-cursor to any investigation of the potential for shared services to further reduce costs or improve the standard of service for the same cost.  The reason for this is because the “what, why and how” needs to be documented so that unit costs can be attributed and valid comparisons can be made with other Councils or indeed with the private sector.  The “what, why and how” questions may also elicit some opportunities for improved efficiency and effectiveness.

 

In terms of internal services there are often many processes and costs associated with the provision of those services which are not specifically defined or costed.  In comparisons between Councils there are often differences in the level of service provided or the entity which provides the service.  For example, even in a function as discrete as “payroll” we do know that across the MIDROC councils some functions and processes might be undertaken by the Finance Section in one Council but the Human Resources Section in another.  To enable reliable benchmarking of the performance of Councils it is necessary to document the service being reviewed and collate the relevant costs of providing the service from whatever cost centres they are attributed to in the Council.

 

Therefore process of service reviews is reasonably involved and particularly where valid comparisons are being sought with other councils or with the private sector.

 

For this reason the General Managers of the councils are keen to acquire some specialist computer software called RevuMap which has been developed specifically for Councils to undertake service reviews.  The software has been developed by a longstanding and well regarded company providing services to local government, the CAMMS group in association with Local Government Professionals Australia (NSW Division).  The General Manager, Assistant General Manager Corporate Services and other staff have been provided with a demonstration of the software’s capability.

 

The minimum cost for the provision of the RevuMap software to this Council being less than 10 user licences with training is $25,050 and thereafter an annual licence fee of $3,542.  There would be a 10% discount on this cost for all four Councils taking up the software.

 

On the basis that Council needs to periodically undertake service reviews as well as the additional opportunities presented by benchmarking and intelligence sharing with nearby councils, it is recommended that Council purchase the software in conjunction with the other councils.

 

 

CONSULTATION:

 

There has been consultation with the General Managers of Kempsey, Bellingen and Gloucester Councils and with the Assistant General Manager Corporate Services.  The General Managers of the other Councils are committed to undertaking service reviews in a collaborative manner with the RevuMap software.

 

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

There are no environmental implications.

 

Social

 

There are no social implications.

 

Economic

 

There are no economic implications.

 

Risk

 

With the limited capability of existing staff to take on additional projects the major risk is not regularly utilising the software or not utilising it to its full potential and hence not receiving a return on the investment which Council has made.  Alternatively if Council does not purchase the software and participate in the service review process, the potential opportunities created by a collaborative service review will be lost.  It will also be more difficult for this Council to participate in any shared services arrangements in the future as potential partners will be wary of a Council which has not shown commitment.

 

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

The financial implications are discussed in the report.  The cost of the software is $25,050 and thereafter an annual licence renewal of $3,542.

 

Source of fund and any variance to working funds

 

The recommendation involves utilising $25,050 of working funds for the software purchase.

 

Service level changes and resourcing/staff implications

 

There will be considerable training required for less than 10 staff in the use of the software.  Training will also be required in undertaking service reviews.

 

As with previous software roll-outs and process changes, it is likely that around 5 staff will receive significant training and become “the champions”.  These staff will then provide training to other staff as different sections of the organisation become involved in the service review process.

 

 To the extent that Council should be regularly undertaking service reviews as part of a process of continuous improvement, the resourcing/staff implications will be no different if council was to work alone (as proposed earlier this year) or in collaboration with the other councils.

 

Attachments:

There are no attachments for this report.   


Ordinary Council Meeting                                                                                            26 November 2015

Assistant General Manager Corporate Services Report

ITEM 10.6    SF1974            261115         Year End Financial Statement - 30 June 2015 - Addendum to Item 10.3

 

AUTHOR/ENQUIRIES:    Craig Doolan, Manager Financial Services         

 

Summary:

 

Attached please find the Audit Report Audit of the Financial Statements for the Year Ended 30 June 2015 from Forsyths.  This was inadvertently omitted from report Item 10.3.

 

 

Recommendation:

 

That Council consider the Audit Report – Audit of the Financial Statements for the Year Ended 30 June 2015 which is attached to this report.

 

 

OPTIONS:

 

 

Attachments:

1

37662/2015 -  Audit Report

 

  


Ordinary Council Meeting - 26 November 2015

Year End Financial Statement - 30 June 2015 - Addendum to Item 10.3