Agenda of Council Meeting - 6 December 2016

ORANGE CITY COUNCIL

MINUTES OF THE

Ordinary Council Meeting

HELD IN Council Chamber, Civic Centre, Byng Street, Orange

ON 15 November 2016

COMMENCING AT 7.00pm

1 Introduction

Attendance

Cr J Davis OAM (Mayor), Cr J Hamling (Deputy Mayor), Cr A Brown, Cr K Duffy, Cr R Gander, Cr C Gryllis, Cr R Kidd (7.12pm), Cr S Munro, Cr G Taylor (7.05pm), Cr R Turner, Cr J Whitton

General Manager, Director Corporate and Commercial Services, Director Development Services, Director Community, Recreation and Cultural Services, Director Technical Services, Manager Administration and Governance, Manager Corporate and Community Relations, Manager Financial Services, Operations Manager, Works Manager

1.1 APOLOGY

RESOLVED - 16/468 Cr C Gryllis/Cr J Hamling

That the apology be accepted from Cr N Jones for the Council Meeting of Orange City Council on 15 November 2016.

1.2 ACKNOWLEDGEMENT OF COUNTRY

1.3 Declaration of pecuniary interests, significant non-pecuniary interests and less than significant non-pecuniary interests

Cr C Gryllis declared a pecuniary interest in item 5.10 – North Orange Traffic as a Real Estate Agent selling land in this area.

2 Mayoral Minutes

Nil

LATE ITEM

RESOLVED - 16/469 Cr K Duffy/Cr R Turner

That Late Item 6.5 – Acquisition of Land – Lot 1 DP1071299 be dealt with at the Closed Meeting of Orange City Council held on 15 November 2016.

3 Confirmation of Minutes of Previous Meeting

RESOLVED - 16/470 Cr R Gander/Cr R Turner

That the Minutes of the Ordinary Meeting of Orange City Council held on 1 November 2016 (copies of which were circulated to all members) be and are hereby confirmed as a true and accurate record of the proceedings of the Council meeting held on 1 November 2016.

4 Notices of Motion/Notices of Rescission

Nil

5 General Reports

5.1 Recommendations and Resolutions from Policy Committees

TRIM Reference: 2016/2664

RESOLVED - 16/471 Cr K Duffy/Cr R Gander

1 That the resolutions made by the Planning and Development Committee at its meeting held on 1 November 2016 be noted.

2 That the resolutions made by the Employment and Economic Development Policy Committee at its meeting held 1 November 2016 be noted.

3 That the resolutions made by the Infrastructure Policy Committee at its meeting held on 1 November 2016 be noted.

4 That the resolutions made by the Sport and Recreation Policy Committee at its meeting held on 1 November 2016 be noted.

5 That the resolutions made by the Finance Policy Committee at its meeting held on 1 November 2016 be noted.

6 That the resolutions made by the Services Policy Committee at its meeting held on 1 November 2016 be noted.

5.2 Outstanding Questions Taken on Notice

TRIM Reference: 2016/2665

RESOLVED - 16/472 Cr J Hamling/Cr R Turner

That the information provided in the report by the Manager Administration and Governance on Questions Taken on Notice be acknowledged.

5.3 Quarterly Budget Review and Performance Indicators

TRIM Reference: 2016/2666

RESOLVED - 16/473 Cr K Duffy/Cr C Gryllis

1 That the information provided in the report by the Director Corporate and Commercial Services on the Quarterly Budget Review and Performance Indicators – July to September 2016, be acknowledged.

2 That the variations arising from the September Quarterly Budget Review, amounting to an improvement of $559,547, be adopted.

5.4 Statement of Investments - October 2016

TRIM Reference: 2016/2667

RESOLVED - 16/474 Cr K Duffy/Cr C Gryllis

1 That Council receives the Statement of Investments as at 31 October 2016.

2 That Council receives and adopts the certification of the Responsible Accounting Officer.

5.5 License for use of shed at Orange Airport by Royal Flying Doctor Service

TRIM Reference: 2016/2423

RESOLVED - 16/475 Cr J Hamling/Cr G Taylor

1 That Council enter into a license agreement with the Royal Flying Doctor Service for five years with two five year options for a single lockable bay attached to the existing machinery shed at the Orange Airport.

2 That approval be granted for the use of the Council seal on all relevant documentation if required.

5.6 Harness Racing Relocation

TRIM Reference: 2016/2661

RESOLVED - 16/476 Cr K Duffy/Cr R Turner

1 That the report by the Manager Corporate and Community Relations be acknowledged.

2 That Council enter a performance based funding agreement with Orange Harness Racing of $20,000 (ex GST) per year, paid in two equal amounts, for a 10 year period commencing 2016/17, to sponsor two harness racing events per year at Towac Park with Council being acknowledged as the sponsor of the events.

3 That funding in 2016/17 be from the advertising budget as the donations budgets are fully expended.

4 That in 2017/18 to 2025/26, funding be allocated from the donations budget.

5.7 Orange Health Service Parking

TRIM Reference: 2016/1642

RESOLVED - 16/477 Cr J Hamling/Cr S Munro

1 That funding source for the $150,000 contribution for parking on the Orange Health Service campus be identified as part of the next quarterly review.

2 That approval be granted for the use of the Council Seal on any relevant documents if required.

** Cr Kidd arrived at the meeting with the time being 7.12pm. **

5.8 Draft Infill Development Guidelines

TRIM Reference: 2016/2448

RESOLVED - 16/478 Cr R Gander/Cr C Gryllis

That the Infill Development Guidelines be placed on public exhibition to close on Friday 3 February 2017.

5.9 Number Plate Recognition Technology

TRIM Reference: 2016/2472

RESOLVED - 16/479 Cr C Gryllis/Cr J Davis

1 That the report on the Number Plate Technology be acknowledged and Council recommence operation of the Number Plate Recognition Technology in the enforcement of parking regulations.

2 That a public awareness campaign on the recommencement of the system be undertaken to include a one-week no fine period, making the vehicle highly visible and information provided on disabled parking regulations.

3 That a progress report be provided in six months.

QUESTION TAKEN ON NOTICE

Cr Duffy requested comparative information on infringements issued over 2015 under the manual system.

5.10 North Orange Traffic

TRIM Reference: 2016/2655

Cr C Gryllis declared a pecuniary interest in this item as a Real Estate Agent selling land in this area, left the Chamber, and did not participate in the voting or debate on this item.

RESOLVED - 16/480 Cr R Gander/Cr G Taylor

1 That Council develop detailed design plans for the construction of a four leg roundabout at the intersection of William Maker Drive and the Northern Distributor Road, including the realignment of Hill Street adjacent to the Botanic Gardens.

2 That Council develop a full cost estimate for this project and identify both internal and/or external funding options to enable this project to be included in a future Delivery/Operational Plan.

5.11 Tourism industry led entity - Transition board composition

TRIM Reference: 2016/2670

RESOLVED - 16/481 Cr J Hamling/Cr C Gryllis

1 That Council approve the structure of the Transition Board which will prepare a proposal for Council’s consideration to form an industry led tourism entity to be comprised:

· 4 Orange City Council appointed members

· 4 Brand Orange appointed members, one to be the Chair

· 1 member nominated by Cabonne Council

· 1 member nominated by Blayney Shire Council

· 1 member to represent the business sector, to be agreed between Orange City Council and Brand Orange

2 That Council seek from Brand Orange a proposal for services for the 1 January 2017 to 30 June 2017 period to be the basis of a performance based funding agreement for the delivery of regional tourism marketing activities.

**Crs Kidd and Turner requested that their names be recorded as having voted against this decision of the Council. **

5.12 Tourism Strategy

TRIM Reference: 2016/2380

RESOLVED - 16/482 Cr K Duffy/Cr C Gryllis

That the draft Tourism Strategy be placed on exhibition for 28 days with comments to be assessed.

6 Closed Meeting

In accordance with the Local Government Act 1993, and the Local Government (General) Regulation 2005, in the opinion of the General Manager, the following business is of a kind as referred to in Section 10A(2) of the Act, and should be dealt with in a Confidential Session of the Council meeting closed to the press and public.

In response to a question from the Mayor, the General Manager advised that no written submissions had been received relating to any item listed for consideration by the Closed Meeting of Council.

The Mayor extended an invitation to any member of the public present at the meeting to make a presentation to the Council as to whether the meeting should be closed for a particular item.

Mr Cyril Smith made a presentation in relation to Item 6.3 - Tender for the Design Development and Construction of the Central Tablelands Regional Water Security Pipeline Project

RESOLVED - 16/483 Cr R Kidd/Cr R Gander

That Council adjourn into a Closed Meeting and members of the press and public be excluded from the Closed Meeting, and access to the correspondence and reports relating to the items considered during the course of the Closed Meeting be withheld unless declassified by separate resolution. This action is taken in accordance with Section 10A(2) of the Local Government Act, 1993 as the items listed come within the following provisions:

6.1 Lease Hangar Site R Orange Airport

This item is classified CONFIDENTIAL under the provisions of Section 10A(2) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to (c) information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

6.2 Central West Libraries RFID - Tender

6.3 Tender for the Design Development and Construction of the Central Tablelands Regional Water Security Pipeline Project

6.4 Tender - Airport Runway Micro-Seal

This item is classified CONFIDENTIAL under the provisions of Section 10A(2) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to (d)i commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it and (d)ii information that would, if disclosed, confer a commercial advantage on a competitor of the council.

6.5 Acquisition of Land - Lot 1 DP 1071299

The Mayor declared the Ordinary Meeting of Council adjourned for the conduct of the Closed Meeting at 7.52pm.

The Mayor declared the Ordinary Meeting of Council resumed at 8.17pm

7 Resolutions from Closed Meeting

The Manager Administration and Governance read out the following resolutions made in the Closed Meeting of Council.

6.1 Lease Hangar Site R Orange Airport

TRIM Reference: 2016/2654

RESOLVED - 16/484 Cr R Gander/Cr C Gryllis

1 That Council enter into a lease of Hangar R for a term of five years plus four five year options.

2 That approval be granted for the use of the Council Seal on any necessary documentation if required.

6.2 Central West Libraries RFID - Tender

TRIM Reference: 2016/2653

RESOLVED - 16/485 Cr R Kidd/Cr C Gryllis

1 That Council accept the tender from FE Technologies up to $223,462 (exc. GST) for the supply and implementation of their RFID technology solution, Central West Libraries taking advantage of benefits to Council.

2 That permission is granted to affix the Council Seal to any relevant document if required.

Division of Voting
Voted For	Cr J Davis (Mayor), Cr K Duffy, Cr R Gander, Cr C Gryllis, Cr J Hamling, Cr R Kidd, Cr S Munro, Cr G Taylor, Cr R Turner, Cr J Whitton, Cr A Brown
Voted Against	Nil
Absent	Cr N Jones

6.3 Tender for the Design Development and Construction of the Central Tablelands Regional Water Security Pipeline Project

TRIM Reference: 2016/2656

RESOLVED - 16/486 Cr R Turner/Cr R Gander

1 That Council enter into a contract with Leed Engineering and Construction Pty Ltd and Leed Holdings Pty Ltd (Leed Consolidated Group) for the Design Development and Construction of the Central Tablelands Regional Water Security Pipeline Project Orange to Carcoar F-2210 (separable portions 1 and 2), including the Orange to Spring Hill Effluent pipeline and alternative proposal items for the total price of $23,587,000 (ex GST).

2 That permission be granted to affix the Council Seal to all relevant documents if required.

Division of Voting
Voted For	Cr J Davis (Mayor), Cr K Duffy, Cr R Gander, Cr C Gryllis, Cr J Hamling, Cr R Kidd, Cr S Munro, Cr G Taylor, Cr R Turner, Cr J Whitton, Cr A Brown
Voted Against	Nil
Absent	Cr N Jones

6.4 Tender - Airport Runway Micro-Seal

TRIM Reference: 2016/2663

This item was withdrawn.

6.5 Acquisition of Land - Lot 1 DP 1071299

TRIM Reference: 2016/2759

RESOLVED - 16/487 Cr K Duffy/Cr J Hamling

1 That Council resolve to acquire approximately 2120m² of Part Lot 1 DP 1071299 for the purposes of road upgrading for the sum of $120,000.

2 That upon acquisition the land be classified as Operational.

3 That authority be granted to affix the Council Seal to all relevant documentation if necessary.

Council acknowledged the efforts of Cr Chris Gryllis, Roger Smith and the Tidy Towns Committee on the awards held in Orange recently.

The Meeting Closed at 8.35PM

This is page number 140 and the final page of the Minutes of the Ordinary Meeting of Orange City Council held on 15 November 2016.

Council Meeting 6 December 2016

5.1 2015/16 Financial Statements

Attachment 1 Orange City Council - Financial Statements 2015-16

PDF Creator

Council Meeting 6 December 2016

5.2 Tourism Transition Board

TRIM REFERENCE: 2016/2842

AUTHOR: Kathy Woolley, Director Corporate and Commercial Services

EXECUTIVE Summary

Council recently considered the creation of an industry led tourism board and determined the need for a Transition Board to be formed to prepare comprehensive strategic and operating plans for the industry led entity. This report provides some background information on the question from Council for more information on how the role of chairperson would work across the entities likely to remain in place in the tourism sector. This report also seeks to have the nominations for the Transition Board finalised and seeks to have Council consider the terms of a six month funding agreement for Brand Orange from January – June 2017.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “10.1 Our Economy – Capitalise on the character and lifestyle of Orange to enhance tourism”.

Financial Implications

Council has been advised that as a council included in the NSW Government’s merger proposals under consideration by the Office of Local Government since referral on 6 January 2016, Council must comply with the merger proposal period guidelines issued under S23A of the Local Government Act 1993.

The guidelines instruct Council it should expend money in accordance with the detailed budget adopted for the purposes of implementing the Delivery/Operational Plan for the 2015/16 year.

Any expenditure outside the adopted budget requires the identification of clear and compelling grounds and must be approved by Council at a meeting that is open to the public. The guidelines indicate the resolution of Council for increased expenditure must specify the reasons why the expenditure is required and warranted.

If increased expenditure is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, Council is required to exhibit the increase to the budget and consider comments received.

Council must also avoid entering into contracts or undertakings where expenditure or revenue is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, unless the contract or undertaking is as a result of a decision or procurement process commenced prior to the merger proposal period or where entering into a contract or undertaking is reasonably necessary for the purposes of meeting the ongoing service delivery commitments of the Council or was previously approved in the Council’s Delivery/Operational Plan.

Implications in this report

Council allocated $400,000 for tourism services in 2016/17. Council has already entered into a performance based contract with Brand Orange, primarily for the delivery of events management. Brand Orange has approached Council for a further six month contract.

Policy and Governance Implications

Nil

Recommendation

1 That Council identify the 4 names of the Transition Board to be the nominees from Council to enable the industry led tourism entity concept to be developed.

2 That Council note the comments in the report about director independence and the responsibilities of directors of entities formed under the Corporations Act.

3 That Council enter into a six month performance based funding agreement with Brand Orange from 1 January 2017 to 30 June 2017 for a value of $159,000 (ex GST) to be funded from the tourism services contract, payable in two instalments on 9 January and 3 April 2017.

further considerations

Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.

SUPPORTING INFORMATION

Council has determined its interest in the creation of an industry led tourism board following a proposal for such an entity having been raised by Brand Orange and strongly supported in the tourism strategy workshops Council ran in August 2016.

On 15 November 2016, Council resolved as follows:

5.11 Tourism industry led entity - Transition board composition

TRIM Reference: 2016/2670

RESOLVED - 16/001 Cr J Hamling/Cr C Gryllis

1 That Council approve the structure of the Transition Board which will prepare a proposal for Council’s consideration to form an industry led tourism entity to be comprised:

· 4 Orange City Council appointed members

· 4 Brand Orange appointed members, one to be the Chair

· 1 member nominated by Cabonne Council

· 1 member nominated by Blayney Shire Council

· 1 member to represent the business sector, to be agreed between Orange City Council and Brand Orange

**Crs Kidd and Turner requested that their names be recorded as having voted against this decision of the Council. **

At the 15 November 2016 meeting, Council asked for further information on the possible conflict of members of Brand Orange being on the Transition Board, in particulalr relating to the position to the Chair of the Transition Board.

The Transition Board is proposed to be formed as an entity under the Corporations Act 2001 (Cth). As such, the responsibilities of the Directors of that Board are as they would be for any other entity thus formed. That is, a Director must always act in the best interests of the entity that they are appointed to.

The Australian Securities and Investment Commission (ASIC) website provide a general statement of directors’ duties as follows:

“General duties

General duties imposed by the Corporations Act on directors and officers of companies include:

· the duty to exercise your powers and duties with the care and diligence that a reasonable person would have which includes taking steps to ensure you are properly informed about the financial position of the company and ensuring the company doesn’t trade if it is insolvent

· the duty to exercise your powers and duties in good faith in the best interests of the company and for a proper purpose

· the duty not to improperly use your position to gain an advantage for yourself or someone else, or to cause detriment to the company, and

· the duty not to improperly use information obtained through your position to gain an advantage for yourself or someone else, or to cause detriment to the company.”

Council has been advised that the Chair of Brand Orange has recently tendered his resignation as the Chair of that organisation.

As the Transition Board is to be formed as an entity under the Corporations Act, the responsibility to be exercised while acting as a director of the Transition Board is to that Board, not to any entity that may have nominated the director to the position.

The recommendation seeks the names of the four Council appointed members of the Transition Board.

The second part of the resolution from the 15 November meeting sought the negotiation of a six month perfomance based funding agreement between Council and Brand Orange for the January – June 2017 period. Brand Orange has proposed a suite of services it would offer durng the January to June 2017 period.

Negotiations have been held and the following is an agreed basis for a performance based agreement with Brand Orange to operate between 1 January and 30 June 2017. It is recommended to Council that the elements on the following page be in the perfomance based funding agreements.

The current six month funding agreement with Brand Orange is due to expire on 31 December 2016. The update report was due on 1 December 2016 but Brand Orange has sought an extension on the reporting time frame until 8 december 2016.

The proposed funding level for the January – June 2017 period is significantly less than the $190,000 provided in the current six month agreement. In the current agreement $120,000 was allocated to the Martin Place event. Council will recall that the Transition Board is to provide analysis and recommendations to Council on which events are to be continued on a value for money basis if the industry led entity is formed.

BRAND ORANGE PERFORMANCE BASED FUNDING AGREEMENT PARAMETERS:

January – June 2017

· Payments to be made in two equal amounts – on 9 January and 3 April 2017.

· Total allocation - $159,000 (ex GST).

· Any non-delivery of an item will mean a refund is required for that item.

· A report on progress against the Key performance indicators will be provided to Council on 1 June 2017, or within one week if Brand Orange ceases operation

Deliverable	Ex GST	Comment/Key performance indicator
Watson's Bay - sponsorship - subject to being able to have "proudly sponsored by Orange City Council" and visitOrange logo applied as per previous agreement	$15,000	· KPI - Application of "Proudly sponsored by Orange City Council" and use of branding as per supplied artwork. Approval on all promotional materials including marketing, promotions, online and newsletters. · KPI- Survey of attendees and report on outcomes
Apple Ramble - new event - need to be offered opportunity for principle sponsor rights	$3,000	· KPI - Council to be identified as principle sponsor and branding as supplied used on all materials. Preapproval of all artwork including marketing, promotions, online and newsletters · KPI- Survey of attendees and report on outcomes
2017 Banjo Paterson Festival - representation and marketing	$6,000	· KPI – attendance as Council’s representative to all committee meetings · KPI – details of marketing initiatives
2017 F.O.O.D Week - Council representation and event support	$5,000	· KPI – attendance as Council’s representative to all committee meetings · KPI – details of marketing initiatives
2017 Apple Festival - Council representation	$3,000	· KPI – attendance as Council’s representative to all committee meetings · KPI – details of marketing initiatives
Public relations agency management and engagement	$5,000	· KPI - Evidence of engagement with agencies, media operators
Prepare and publish the 2017 Orange Wine Festival Program	$10,000	· KPI - Draft Publication of the program by 1 June 2017
Report on the achievements from the contract including surveys	$10,000	· KPIs - Provision of report on all KPIs on 1 June 2017 or within one week of windup of Brand Orange if occurs before 1 July 2017
Key Stakeholder engagement	$5,000	· Number of engagements and list of outcomes of the engagement

Deliverable	Ex GST	Comment/Key performance indicator
Australian Tourism Data Warehouse updates and overhaul	$15,000	KPIs - Increase of 25% on the following listings in each category - must be unique listings, not double counted across categories - figures from ATDW end Nov 2016: · Accommodation - 70 facilities now - KPI target 87 entries · Attractions: 30 entries now - KPI target 37 entries · Food and Wine: 45 entries now - KPI target 56 entries · Tours: 6 entries now - KPI target 8 entries · Events: 32 entries now - KPI target 40 entries
Cycling tourism opportunities assessment - infrastructure needs, demand market (who else apart from competitors who already come to events would be attracted and how do we reach them)	$15,000	· KPI - identification of the demand and a marketing campaign that will reach the identified target audience target
Health tourism opportunities assessment - identify demand and how to reach the target audience	$15,000	· KPI - identification of the demand and a marketing campaign that will reach the identified target audience target
Accommodation sector - facilitation to merge the various groups into one group	$10,000	· KPI -30% of total accommodation operators signed up to create a single accommodation group
Packages - develop and market 2 packages identified in the Tourism Strategy - to illustrate industry integration opportunities - suggested 1 Harvest based (pick your own, farm experience etc) and Indigenous culture based	$20,000	· This would be $10K per package - with a minimum of $8.5K per package on actual advertising spend as long as get matching $ for $ value from those operators offering products. No in kind. $3K per package retained by Brand Orange KPI - specific bookings through Bookeasy for overnight stays or event tickets
Joint marketing initiative - use to get matching $ for $ from industry for a short specific marketing campaign designed and executed by Brand Orange by February 2017	$20,000	· This would be $17K applied to an advertising campaign as long as Brand Orange gets matching $ for $ against every dollar applied. No in kind. $3K retained by Brand Orange for operating costs KPI - specific bookings through Bookeasy for overnight stays or event tickets showing
Newcrest cycling event - managing local media placement	$2,000	· KP - placement of local advertising/promotional activities to be advised
TOTAL	$159,000

Council Meeting 6 December 2016

5.3 Outcomes From Two Free Waste Disposal Days at the Ophir Road Resource Recovery Centre

TRIM REFERENCE: 2016/2716

AUTHOR: Wayne Davis, Manager Waste Services and Technical Support

EXECUTIVE Summary

Council resolved on 5 April 2016 to allow two free waste disposal days for Orange residents up to a 6’x 8’ trailer or utility load as a result of a request from an Environmental Protection Agency endorsed study on Tackling Illegal Dumping in Kinross Forest. The study aims to assist in implementing community behavioural change with the ultimate goal of reducing illegal dumping. Council recognised that positive incentives and ongoing community education are important elements in reducing illegal dumping. This report provides a summary of the outcomes of the two free waste disposal days for Council’s consideration.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “13.3 Our Environment – Identify changing community aspirations and undertake community engagement to inform planning and advocacy of plans and policies for waste management and resource recovery”.

Financial Implications

The guidelines instruct Council it should expend money in accordance with the detailed budget adopted for the purposes of implementing the Delivery/Operational Plan for the 2015/16 year.

Implications in this report

The report to Council considered on 5 April 2016 advised of a potential loss of income from endorsing the waiving of waste disposal fees over a two day period for loads of waste meeting the acceptance criteria of a 6’x 8’ trailer or utility load per Orange resident. The report also advised Council that it would be in Council’s interest to trial this initiative and review actual volumes of waste and lost income associated with two free waste disposal days to determine continuance of this initiative beyond 2016. As a result of advertising the two free waste disposal days and as predicted, the uptake of the initiative was very high.

The 7 May 2016 free waste disposal day resulted in 406 patrons delivering 93.65 tonnes of mixed waste and as a result, a loss of income of $12,539.65 was sustained to Council’s Waste Services Program.

The 5 November 2016 free waste disposal day resulted in 629 patrons delivering 153.18 tonnes of mixed waste and a corresponding loss of income of $20,362.70 was sustained to Council’s Waste Services Program.

Any ongoing offering of a free voucher based service needs to be considered in light of the need for the waste services to offer full cost recovery. A costing exercise is required to estimate the possible impacts on the waste budget.

Policy and Governance Implications

Nil

Recommendation

1 That Council recognise the importance of creating positive incentives to Orange residents in relation to waste minimisation and resource recovery opportunities thereby discouraging potential illegal dumping of wastes and continue appropriate education initiatives within its adopted education strategies.

2 That Council model the costs of a trial voucher system for Orange residents to make application and record against the residential address for up to one free bulky waste disposal of waste in a financial year limited to the size of a 6’x 8’ trailer or utility load size of acceptable material.

further considerations

SUPPORTING INFORMATION

Council’s first free waste disposal day held on 7 May 2016 saw 406 patrons delivering 93.65 tonnes of mixed waste to the Ophir Road Resource Recovery Centre. The day was also promoted to raise awareness of compost awareness week (2-8 May 2016) and to raise awareness of what items are normally free to dispose of at the facility and how to reduce waste disposal costs by segregating loads into recoverable items as opposed to waste items. Council also took the opportunity to hold tours of the baling/organics pre-shred building in order to promote to residents how we handle their waste streams using technologies and processes not common practice in regional NSW.

Over 400 information flyers promoting waste segregation and what is not charged at the facility was handed out to patrons including advice from the weighbridge staff on the benefits of purchasing compost whilst at the site with their trailer/utility.

It was evident from the day that patrons were focused on disposing of their waste and leaving (most with an information flyer) as there were only five cubic metres of compost and four cubic metres of mulch sold on the day and seven adults and one child participating in the facility tours.

The second free waste disposal day held on 5 November 2016 was even more highly patronised with 629 patrons delivering 153.18 tonnes of mixed waste to the facility. Survey results from 139 patrons revealed 80% were bringing waste out to the facility as a result of the “free day”; there was less recognition of some of the waste products that are not charged at the facility relating to sump oil, batteries, gas bottles, light tubes and globes and smoke detectors as opposed to the more recognised items of green waste, scrap steel, household recyclables, white goods and e-waste, and just over half of the patrons surveyed had heard of the campaign to prevent illegal dumping at Kinross Forest.

Promotional material in the form of a water bottle and fridge magnet were also given out to over 200 patrons that highlighted the illegal dumping campaign and what can be delivered to the Ophir Road Resource Recovery Centre for free on any day of the week.

Council also followed up on the initiative by issuing a media release on 8 November 2016 advising of the outcomes of the day and reinforcing those waste items that are not normally charged.

In summary, the two free waste disposal days were highly patronised by Orange residents and it was a good opportunity to promote the key messages of waste segregation to avoid higher waste disposal costs; what is and what is not normally charged at the Ophir Road Resource Recovery Centre and to promote the campaign against illegal dumping at Kinross Forest.

Having scheduled “free waste disposal days” does come at a significant cost to Council’s Waste Services operating revenue whilst also placing high demands on resourcing and the traffic flow and management of high volume waste in-take over a day period. Ongoing education strategies and promotional initiatives will continue to be delivered to the Orange community with the key objective of enhancing appropriate waste diversion and resource recovery.

Provision has been made within the new domestic waste and recycling contract for a “user-pay” ticket service in lieu of the previous contracts scheduled bulky-waste collection. This affords residents with the ability to have regular clean-ups that suit their needs throughout the year albeit at the real cost of providing this service.

As this service may be unaffordable to some of our residents, if Council is of the view to support a subsidised alternative bulky-waste service, it would be prudent to limit the availability of such a service based on a voucher system made available to “owners” and “tenants” based on making an application to Council which would also permit resident use at their convenience and not being confined to a set date. Upon receipt of an application, Council may record issue of a voucher to the resident against the property address for “free disposal” of one bulky waste load of materials up to a 6’x8’ trailer or utility load size in the financial year. As previously mentioned within this report, any ongoing offering of a free waste disposal voucher needs to be considered in light of the need for waste services to offer full cost recovery. The percentage of community uptake of a free service will determine the bottom line position of the waste services operating budget. For example, if 5% of the resident services utilised this free waste disposal voucher, the nett loss of income to the waste services operating budget would be $37,404.00. Ongoing operations including necessary capital development of new landfill cells have significant impact on the financial position of the waste services operating budget and hence the capacity to offer subsidised services in any given year needs to be closely monitored.

Council Meeting 6 December 2016

5.4 2016/2017 Water Consumption Charges - 3 Beech Crescent, Orange

TRIM REFERENCE: 2016/2715

AUTHOR: Matt Dean, Clerical Assistant - Water Billing

EXECUTIVE Summary

This report seeks a reduction of the 2016/17 water consumption charges due to an internal water leak.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “1.2 Our City - Information and advice provided for the decision-making process will be succinct, reasoned, accurate, timely and balanced”.

Financial Implications

The guidelines instruct Council it should expend money in accordance with the detailed budget adopted for the purposes of implementing the Delivery/Operational Plan for the 2015/16 year.

Should Council resolve to support the recommendation, a further reduction of $2,229.17 in the water consumption charges collected for 2016/2017 will be experienced.

Policy and Governance Implications

Nil

Recommendation

1 That the amended 2016 fourth quarter consumption charge of $1,403.60 be reduced to $169.40.

2 That the 2017 first quarter consumption charge of $1,122.09 be reduced to $127.12.

further considerations

SUPPORTING INFORMATION

Whilst on holidays the owner of the property 3 Beech Crescent Orange contacted Council following receipt of the 2016 Fourth Quarter Water Charges Notice on 16 June 2016. The owner was advised of the option to write to Council and request consideration of the charges based on the circumstances of the water leak which was repaired 23 June 2016.

Council’s response, based on the circumstances, was to reduce the consumption charged at the higher rate of $3.30 per kilolitre to the first step tariff of $2.20 per kilolitre resulting in a credit of $541.20. As a result the 2016 Fourth Quarter Consumption charge was reduced from $1,944.80 to $1,403.60.

It was then found that the initial leak repaired on 23 June 2016 was not the only water leak contributing to the excessive water usage.

The owner again wrote to Council compiling a detailed report outlining the difficulty involved in locating the water leak, as pressure testing and the use of a thermal camera initially proved to be unsuccessful. After continued efforts to locate the leak, the internal water line was again pressure tested and the water leak located and repaired on 28 September 2016.

The plumbing costs involved in repairing the water leaks during this period exceeded $1,500.00 with the combined water consumption charges exceeding $2,500.00 (including the initial reduction of $541.20). The owner has requested Council reduce the charges based on the same period the previous year.

The reduced amounts presented in the recommendations of this report have been calculated based on the equivalent consumption for the same period of the previous year.

Council Meeting 6 December 2016

5.5 Tender - Water Meter Readings 2016-2019

TRIM REFERENCE: 2016/2679

AUTHOR: Matt Dean, Clerical Assistant - Water Billing

EXECUTIVE Summary

Tenders closing 25 October 2016 were called for interested contractors to provide quarterly water meter reading services for a period of three years commencing with the third quarter read in the 2016/17 financial year.

Link To Delivery/OPerational Plan

Financial Implications

The guidelines instruct Council it should expend money in accordance with the detailed budget adopted for the purposes of implementing the Delivery/Operational Plan for the 2015/16 year.

Policy and Governance Implications

Nil

Recommendation

1 That Council accept the tender from UASG (Skilltech) to provide water meter reading services for a period of three years at the rate of $2.11 per meter in residential and commercial locations and $4.40 per meter in rural, village and industrial locations.

2 That permission be granted to use the Council Seal on any relevant document if required.

further considerations

SUPPORTING INFORMATION

Form 2 –Schedule of rates form is attached.

Council received one response to the advertised tender for water meter reading services, UASG (Skilltech). Skilltech held the previous three year contract and have effectively held the contract for water meter reading service since December 2005 when previously known as Fieldforce.

Skilltech has provided a very good service over the past 3 years with a quick turnaround of the uploading of data. The water meter readers also provide a very efficient service with a very low percentage of errors and great familiarity of meter locations. This leads to short reading periods allowing the quarterly accounts to be issued within the timeframe allowed.

The rate for meter reading services over the past 3 years was $1.98 for residential and commercial rated properties and $4.25 for rural, village and industrial properties. The tendered rate for residential and commercial rated properties is now $2.11; an increase of $0.13 per meter and $4.40 for rural, village and industrial meters; an increase of $0.15 per meter. The rural, village and industrial meters make up 6% of the total number of meters read and are charged at a higher rate as these meters are more time consuming to the meter reader. Based on the number of meters at the time the tender was advertised the result is an increase of $2,432.04 (exc GST) from 2016 third quarter billing period; the first increase in three and a half years.

Attachments

1 Form 2 Schedule of Rates - Water meter reading Tender 2016, D16/54423 ⇩