Agenda of Council Meeting - 7 February 2017

ORANGE CITY COUNCIL

MINUTES OF THE

Ordinary Council Meeting

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

ON 20 December 2016

COMMENCING AT 7.00pm

1 Introduction

Attendance

Cr J Davis OAM (Mayor), Cr J Hamling (Deputy Mayor), Cr A Brown (arrived at 7.20pm), Cr K Duffy, Cr R Gander, Cr C Gryllis, Cr N Jones, Cr R Kidd, Cr S Munro, Cr G Taylor, Cr R Turner, Cr J Whitton (arrived at 7.15pm)

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, Water Treatment Manager , Transport Asset Engineer.

1.1 APOLOGIES

RESOLVED - 16/527 Cr C Gryllis/Cr S Munro

That the apologies for lateness be accepted from Crs Brown and Whitton for the Council Meeting of Orange City Council on 20 December 2016.

1.2 OPENING PRAYER

Andrew Wratten of the Mountain Hope Church led the Council in prayer

1.3 ACKNOWLEDGEMENT OF COUNTRY

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

Cr Gryllis declared a pecuniary interest in item 6.5 in Closed Council - Inquiry for Potential Sale of Land, as a Real Estate agent acting for an interested party.

Cr Brown declared a pecuniary interest in item 6.6 in Closed Council - Land Sales Heads of Agreement, as a Real Estate agent acting for an interested party.

2 Mayoral Minutes

Nil

3 Confirmation of Minutes of Previous Meeting

RESOLVED - 16/528 Cr S Munro/Cr R Gander

That the Minutes of the Ordinary Meeting of Orange City Council held on 6 December 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 6 December 2016.

4 Notices of Motion/Notices of Rescission

Nil

5 General Reports

5.1 Recommendations and Resolutions from Policy Committees

TRIM Reference: 2016/2980

RESOLVED - 16/529 Cr R Kidd/Cr S Munro

1 That the resolutions made by the Planning and Development Committee at its meeting held on 6 December 2016 be noted.

2 That the resolutions made by the Infrastructure Policy Committee at its meeting held on 6 December 2016 be noted.

3 That the resolutions made by the Sport and Recreation Policy Committee at its meeting held on 6 December 2016 be noted.

4 That the resolutions made by the Environmental Sustainability Development Policy Committee at its meeting held 6 December 2016 be noted

5 That the resolutions made by the Finance Policy Committee at its meeting held on 6 December 2016 be noted.

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

QUESTION TAKEN ON NOTICE

Cr Duffy asked if roadside vendors are required to submit a development application. Information to be circulated to Councillors.

5.2 Outstanding Questions Taken on Notice

TRIM Reference: 2016/2983

RESOLVED - 16/530 Cr J Hamling/Cr S Munro

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

QUESTION TAKEN ON NOTICE

Cr Taylor requested the City of Orange Traffic Committee consider installing speed reduction measures in William Maker Drive, particularly the newer section.

MATTER ARISING

RESOLVED- 16/531 Cr C Gryllis/Cr J Whitton

That Council provide traffic control until Christmas at the pedestrian crossing in Anson Street opposite Woolworths Supermarket.

5.3 Statement of Bank Balances as at 30 November 2016

TRIM Reference: 2016/2923

RESOLVED - 16/532 Cr K Duffy/Cr S Munro

That the information provided in the report by the Accounting Officer – Management on the Statement of Bank Balances as at 30 November 2016 be acknowledged.

5.4 Statement of Investments - November 2016

TRIM Reference: 2016/2913

RESOLVED - 16/533 Cr K Duffy/Cr S Munro

1 That Council receives the Statement of Investments as at 30 November 2016.

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

5.5 Request For Financial Assistance

TRIM Reference: 2016/2911

RESOLVED - 16/534 Cr J Whitton/Cr J Davis

1 That a donation of $500 be made to the Orange Bush Nippers from Cr Hamling’s allocation.

2 That a donation of $200 be made to Tiarah Jade Fisher from Cr Whitton’s allocation.

5.6 Changes to the Local Government Act

TRIM Reference: 2016/2885

RESOLVED - 16/535 Cr R Kidd/Cr R Turner

That Council note the amendments to the Local Government Act 1993.

5.7 Crown Land Gazettal Gosling Creek

TRIM Reference: 2016/2912

RESOLVED - 16/536 Cr J Hamling/Cr J Whitton

That Council request the Department of Industry - Lands to add the purpose of "Public Recreation" to the Gosling Creek Reserve.

5.8 Complaints under Council's Code of Conduct

TRIM Reference: 2016/2924

RESOLVED - 16/537 Cr R Kidd/Cr C Gryllis

That the report on complaints under Council’s Code of Conduct for the 2016 year be acknowledged.

QUESTION TAKEN ON NOTICE

Cr Taylor requested a report on whether the identity of complainants (if a Councillor) can be disclosed if considered to be in the public interest.

5.9 Tourism Strategy - Completion of Exhibition

TRIM Reference: 2016/2988

RESOLVED - 16/538 Cr J Whitton/Cr N Jones

That the Tourism Strategy be adopted with the noted amendments identified in the report and the proposed activities be considered in future budget preparations.

5.10 Strategic Policy Review

TRIM Reference: 2016/2991

RESOLVED - 16/539 Cr R Turner/Cr S Munro

That Council place Strategic Policy ST138 – Related Parties on public exhibition.

COUNCIL FOLDER

· Letter of thanks from William Mackson who won a $600 tuition in the scholarship event of the Orange Piano Eisteddfod.

· Thank you letter to Cr Gryllis and Cr Gander for providing a donation towards the Canobolas Rural Technology High School 50^th Anniversary celebrations that will be held in May 2017.

· Letter from Leukaemia Foundation thanking Council for generous donation in support of Light the Night that was held in October.

· Email from Daryl and Kelly Frost thanking Council for donation that will go towards Claudia Frost attending the Softball Championship in January in Perth.

RESOLVED - 16/540 Cr R Gander/Cr C Gryllis

That the contents of the Council Folder be noted.

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.

RESOLVED - 16/541 Cr R Gander/Cr C Gryllis

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 Proposed acquisition of land/easements - Southern Cyclelink

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 Easement Purchase for Sewer Main - 98 Gorman Road Lot 1 DP 581736 Gorman Road, Orange

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)ii information that would, if disclosed, confer a commercial advantage on a competitor of the council.

6.3 Tender - Monitoring and Reporting for Operation Environmental Management Plan for Orange Raw Water Supply System

6.4 Tender for reconstruction of Burrendong Way Stage 4

6.5 Inquiry for Potential Sale of Land

6.6 Land Sale Heads of Agreement

6.7 Complaints under Orange City Council Code of Conduct

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 (i) alleged contraventions of any code of conduct requirements applicable under section 440.

The Mayor declared the Ordinary Meeting of Council adjourned for the conduct of the Closed Meeting at 7.43pm.

The Mayor declared the Ordinary Meeting of Council resumed at 9.55pm.

7 Resolutions from Closed Meeting

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

6.1 Proposed acquisition of land/easements - Southern Cyclelink

TRIM Reference: 2016/1426

MOTION Cr K Duffy/Cr R Gander

That Council invite interested land owners to make a submission or address Council in February 2017.

AMENDMENT Cr C Gryllis/Cr J Hamling

1 That Council acquire an easement for the Orange Southern Link Cycleway over Lots 16, 17, 18 and 19 DP9756 (School Land) located at Anson Street, subject to approval for the construction of the rail underpass at Anson Street.

2 That Council acquire an easement for the Orange Southern Link Cycleway for a rail underpass at Anson Street (Rail Land), or, if a lease agreement is preferred by the landowner, that the General Manager have delegated authority to negotiate a lease or licence with the landowners to use the Rail Land for the purpose of the Cycleway.

3 That the General Manager be delegated authority to negotiate the acquisition of these easements identified in 1 and 2.

4 That failing reaching agreement with landowners, Council compulsorily acquire the easements over the School Land and the Rail Land pursuant to s186 and s187 of the Local Government Act 1993.

5 That Council make an application to the Minister for Local Government for the issue of a Proposed Acquisition Notice under the Land Acquisition (Just Terms Compensation) Act 1991 with respect to the School Land and Rail Land.

6 That Council make an application to the Governor for the publication of an Acquisition Notice in the NSW Government Gazette under the Land Acquisition (Just Terms Compensation) Act 1991 with respect to the School Land and Rail Land.

7 That approval be granted for the use of the Council Seal on any document if required.

8 That the funding for all costs associated with the land matters be from the existing Orange Southern Link Cycleway budget.

9 That staff continue to negotiate with the owners of 79 Gardiner Road and these negotiations be reported to Council.

THE AMENDMENT ON BEING PUT TO THE MEETING WAS CARRIED AND BECAME THE MOTION

THE MOTION ON BEING PUT TO THE MEETING WAS CARRIED

RESOLVED - 16/542 Cr C Gryllis/Cr J Hamling

3 That the General Manager be delegated authority to negotiate the acquisition of these easements identified in 1 and 2.

4 That failing reaching agreement with landowners, Council compulsorily acquire the easements over the School Land and the Rail Land pursuant to s186 and s187 of the Local Government Act 1993.

7 That approval be granted for the use of the Council Seal on any document if required.

8 That the funding for all costs associated with the land matters be from the existing Orange Southern Link Cycleway budget.

9 That staff continue to negotiate with the owners of 79 Gardiner Road and these negotiations be reported to Council.

6.2 Easement Purchase for Sewer Main - 98 Gorman Road Lot 1 DP 581736 Gorman Road, Orange

TRIM Reference: 2016/2969

RESOLVED - 16/543 Cr R Kidd/Cr S Munro

1 That Council authorise the General Manager to negotiate the purchase of an easement through Lot 1 DP 581736 for the construction of a sewer rising main and gravity main for maximum compensation outlined in the body of the report.

2 That Council authorise the General Manager to negotiate a Construction Access Licence Agreement with the landowner(s) in order to fast track the construction of the sewer rising main and gravity main as detailed in the body of the report.

3 That Council allocate funds from Section 64 Water and Sewer Developer Contributions in order to acquire a sewer easement through 98 Gorman Road, Orange, Lot 1 DP 581736.

4 That permission be granted to use the Council Seal on any relevant document, if necessary.

6.3 Tender - Monitoring and Reporting for Operation Environmental Management Plan for Orange Raw Water Supply System

TRIM Reference: 2016/2811

RESOLVED - 16/544 Cr R Kidd/Cr J Whitton

1 That Council award the contract for the Orange Raw Water Supply System Operation Environmental Management Plan - Monitoring and Reporting, in the amount of $229,416 (inc GST) to Geolyse for the period 1 March 2017 through to 30 September 2020.

2 That approval be granted to affix the Council Seal to 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 N Jones, Cr R Kidd, Cr S Munro, Cr G Taylor, Cr R Turner, Cr J Whitton, Cr A Brown
Voted Against	Nil
Absent	Nil

6.4 Tender for reconstruction of Burrendong Way Stage 4

TRIM Reference: 2016/2865

RESOLVED - 16/545 Cr J Hamling/Cr S Munro

1 That Council decline to accept any of the tenders for the reconstruction of Burrendong Way stage 4, tender number F2341 as a result of all tenders exceeding the available budget.

2 That Council cancel the proposal to contract the reconstruction of Burrendong Way Stage 4 contemplated in the tender.

3 That Council note that extenuating circumstances exist, being a better outcome would not be achieved within the available timeframe by inviting fresh tenders or applications.

4 That Council seeks the approval of the Roads and Maritime Services Regional Consultative Committee for a reduction in the scope of works.

5 That the General Manager be authorised to enter into negotiations with suitably qualified organisations for a cost effective solution, subject to REPAIR grant funding approval, to achieve a suitable reconstruction of Burrendong Way at a reduced scope of works.

6 That approval be granted for the use of the Council Seal on 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 N Jones, Cr R Kidd, Cr S Munro, Cr G Taylor, Cr R Turner, Cr J Whitton, Cr A Brown
Voted Against	Nil
Absent	Nil

6.5 Inquiry for Potential Sale of Land

TRIM Reference: 2016/2993

Cr C Gryllis declared a pecuniary interest in this item as a Real Estate Agent acting for an interested party, left the Chamber, and did not participate in the voting or debate on this item.

RESOLVED - 16/546 Cr J Hamling/Cr R Gander

1 That Council prepare and submit to the Department of Planning for Gateway determination, a planning proposal to appropriately rezone the former base hospital site including relevant adjustments to building height and floor space ratio limits, mixed uses, medium density residential uses and recreational/open spaces uses.

2 That the General Manager be authorised to continue negotiations with interested parties for potential development of the site.

6.6 Land sale heads of agreement

TRIM Reference: 2016/3007

Cr A Brown declared a pecuniary interest in this item as a Real Estate Agent acting for an interested party, left the Chamber, and did not participate in the voting or debate on this item.

RESOLVED - 16/547 Cr J Whitton/Cr G Taylor

1 That Council enter a heads of agreement on the land at 24 and 4 Perc Griffith Way and 5190 Mitchell Highway as detailed in this report.

2 That the General Manager be delegated to finalise the negotiations on the heads of agreement as detailed in the report.

6.7 Complaints under Orange City Council Code of Conduct

TRIM Reference: 2016/2987

RESOLVED - 16/548 Cr G Taylor/Cr J Whitton

That Council invite the subject Councillor to make an oral presentation to Council in relation to the recommended sanctions listed in the Final Reports in accordance with clause 8.47 of the NSW Office of Local Government Procedures for the Administration of the Code of Conduct.

RESOLVED - 16/549 Cr J Davis/Cr S Munro

That Cr Turner provide an unqualified apology to the next Open Council Meeting in relation to breaches of the Code of Conduct.

The Meeting Closed at 10.05 PM

This is Page Number 12 and the Final Page of the Minutes of the Ordinary Meeting of Orange City Council held on 20 December 2016.

Council Meeting 7 February 2017

4 Notices of Motion/Notices of Rescission

4.1 Pedestrian Access March and Sale Streets by Cr Duffy

TRIM REFERENCE: 2017/53

I, CR Kevin Duffy wish to move the following Notice of Motion at the Council Meeting of 7 February 2017:

Motion

1 That Council modify the pedestrian access along Sale Street on the eastern side of the intersection of March Street and Sale Street be aligned with the streetscape footpath, as it is on the western side of the intersection.

2 That Council remove the crossing that is some further 40 metres east along March Street.

Background

Issues identified in this matter include:

· Elderly residents extra walking distance, walking frames, gofers etc.

· Students allowed walking to school straight ahead at Byng Street roundabout

· It is not allowable on the right hand turn travelling west and it is allowable is a right hand turn travelling east

· Approximately an extra 80 metres walking

· The blisters make intersections busier. In some cases makes traffic build up e.g. schools

· Heavy service vehicles have turning circle issues

· If Council progresses with old hospital site development, pedestrians movement will increase

· There is no law against crossing at street corners and people will use a common sense approach

Signed Cr Kevin Duffy

STAFF COMMENT

The works recently undertaken at the intersection of March and Sale Streets were funded under a Federal Government Roads Safety Program. This intersection was identified as having an ongoing accident history, with the installation of kerb blisters helping to better define the intersection and reduce the speed of traffic in an attempt to reduce both the incidence and severity of accidents.

In developing the design for this intersection consideration was given to reducing, where possible, all potential points of conflict within the intersection, either for motorists or pedestrians. In particular, on the eastern side of the intersection an existing mid-block refuge island, located some 27m from the intersection, provides a safe crossing point for pedestrians, especially for parents with prams and people in wheelchairs or scooters.

When developing the overall design of the intersection, rather than remove this very safe crossing point, where pedestrians can safely negotiate a single lane of traffic at a time, the design incorporates this facility into the overall intersection design. As a consequence, this also avoids directing pedestrians travelling north-south along the eastern side of Sale St directly into the intersection, where they have to negotiate three lanes of traffic at the one time, including turning traffic.

The blisters as constructed on the eastern side of Sale Street could be modified to allow pedestrians to travel in a straight path across the intersection. However it needs to be understood that in doing so Council would be making this side of the road more unsafe for vulnerable pedestrians than exists at the current time, an unfortunate outcome for a project funded specifically for improved road safety.

If Council seeks to modify the intersection as proposed in part 1 of this Notice of Motion, the removal of existing pedestrian refuge island on March Street east of Sale St as proposed in part 2 of this motion is strenuously opposed. This removes the opportunity for pedestrians to make a choice whether they choose to cross at a more safe crossing point, and effectively directs all pedestrians into the Sale Street/March Street intersection, where they have to negotiate three lanes of traffic without any protection of a refuge island which is currently available some 27m away.

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 were 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

The proposed works can be accommodated within the existing budget for this project as the works to date have been completed below the originally estimated costs. An estimate of the costs of the works is $12,000.

Council Meeting 7 February 2017

5 General Reports

5.1 External Loan

TRIM REFERENCE: 2017/100

AUTHOR: Kathy Woolley, Director Corporate and Commercial Services

EXECUTIVE Summary

Council approved an internal loan in the adoption of the Delivery/Operational Plan for 2015/16 – 2018/19. As Ministerial approval has still not been provided, this report seeks to convert the loan to an external loan should if necessary.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “1.4 Our City - Ensure a framework that Council’s policies, procedures and programs relate to the vision and directions of the Community Strategic Plan, including a disability action 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.

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

The budgeted interest repayments will need to be increased if an external loan is to be taken out given the internal loan rate was estimated at 2% and the current external loan rate for interest only is 4.72% and for interest and principle is 3.96%. If Council seeks an interest only external loan it will add around $380,000 to the costs.

Policy and Governance Implications

Nil

Recommendation

That failing the receipt of approval from the Minister of Local Government’s office for a re-submission of the application for an internal loan, the Council pursue an external loan for the purchase of two properties.

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 to take out two internal loans to fund projects related to the airport expansion program. The formal requests to the Minister for Local Government for approval were made in December 2015. The projects were to build the 24 hour emergency retrieval helicopter hangar and to purchase two properties.

The uptake of internal loans from the sewer fund were included in the Delivery/Operational Plan which was duly received and adopted by Council after having been exhibited. Council made the required request to the Minister for approval of the loans and has followed up with the Minister for Local Government and the Office of Local Government on numerous occasions to seek advice on the delays in getting an answer on the loan request. The Mayor and General Manager became involved to escalate the matter and have been corresponding with the Minister and the Executive Officer of the Office of Local Government over a number of occasions.

Borrowing internally is not an abnormal transaction and is an effective use of funds reserved for capital purposes. The process proposed in this instance establishes interest only loans with a 2% interest payment (an amount just ahead of the cash rate) concluding with a balloon payment at the end of the 10 year term. There is also rental income opportunities from these properties which can be applied to loan repayments. The loan terms see the reserves fully refunded over a 10 year period.

The internal interest rate is cheaper than loan offers that can be achieved in the market and this offers a financial benefit to Council. To investigate the impact of getting an external loan on the remaining matter, quotations for an external loan have been sought and the rate offered to Council for an external loan is 4.72%. This will add around $380,000 to the cost of the loan. It is likely that the amount initially sought of $2.723M can be reduced as it is not thought necessary to borrow to cover GST or other costs associated with the purchase.

There is no technical reason the loans should not approved. Council’s financial systems and plans show loan repayments and that the reserves will be fully repaid and moneys are not being called upon during the loan period to require the funds for sewer capital purposes.

One of the loans was finally approved in November 2016 but the second loan request remains unanswered. The most recent interaction with the Office of Local Government resulted in them requesting a re-submission of the loan request. This will be undertaken, but given the lengthy delay in receiving an answer, it is recommended to Council that should the matter not be resolved with a timely response from the Minister, that an external loan be implemented.

Council Meeting 7 February 2017

5.2 Amendments to Fees and Charges

TRIM REFERENCE: 2017/8

AUTHOR: Michelle Catlin, Manager Administration and Governance

EXECUTIVE Summary

At its meeting held on 1 November 2016, Council considered proposed amendments to the Schedule of Fees and Charges, relating to fees at the Colour City Caravan Park and Wade Park, and to formalise the payments to the independent members of Council’s Audit and Risk Management Committee and to the Council appointed members of the Conduct Review Panel. Council resolved to place this amendments on public exhibition, which has occurred from 2 November 2016 to 5 December 2016, with no submissions received during the exhibition period. The amendments are therefore recommended to Council for adoption.

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.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.

Policy and Governance Implications

No submissions were received on the proposed amendments to the Fees and Charges.

Recommendation

That the following amendments to the Schedule of Fees and Charges be adopted:

1 Colour City Caravan Park – Four Seasons Cottage – for up to 4 persons:

a) Remove the minimum length of stay

b) Retain maximum length of stay of 2 weeks

c) Low season: Night fee of $180 (Inc. GST)

d) Low Season: Per week fee of $1,260 (Inc. GST)

e) Peak Season: Night fee of $200 (Inc. GST)

f) Peak Season: Per week fee of $1,400 (Inc. GST)

g) Additional person to be charged at $30 (Inc. GST) per head

2 Fees for commercial hire of Wade Park to be as follows:

a) Charge per day $1,000 (plus GST)

b) Security bond $10,000 (plus GST)

3 Payment for Service – Audit and Risk Independent Committee Members:

a) Independent Chairperson $1,050 per meeting (plus GST) inclusive of all reading/other time.

b) Independent member $840 per meeting (plus GST) inclusive of all reading/other time.

c) All travel costs for independent members and chairperson to attend ARMC meetings as to be at the km rate in the Local Government State Award for the use of own vehicles.

d) All other expenses are considered to be covered in the meeting fees.

4 Payment for Service – Conduct Review Panel Members:

a) Preliminary Assessment of complaint - $1,250 (plus GST) inclusive of all expenses.

b) Sole Reviewer investigation costs:

i. For the first 10 hours - $250 (plus GST) per hour inclusive of all expenses.

ii. For subsequent hours - $220 (plus GST) per hour inclusive of all expenses.

iii. Where pre-approved, a per km rate for the use of private vehicles owned by Conduct Reviewers to attend meetings will be paid in accordance with the own use schedule in the Local Government State Award.

iv. Payment for any other expenses will not be made unless pre-approved by Council on a matter by matter basis and if so approved, will be at cost.

c) Conduct Review Panel members (where a Conduct Committee is formed – minimum three members):

i. For the first 10 hours - $220 (plus GST) per hour inclusive of all reading/meeting time and all expenses.

ii. For all hours after the first 10 hours - $200 (plus GST) per hour inclusive of all reading/meeting time and all expenses.

iii. Where approved at the time of engagement on a matter by matter basis, panel members may be paid travel costs associated with use of their own vehicle which will be reimbursed at the own vehicle per km rate as listed in the Local Government State Award.

iv. Payment for any other expenses will not be made unless preapproved by Council on a matter by matter basis and if so approved, will be at cost.

further considerations

The recommendation of this report has been assessed against Council’s other key risk categories and the following comments are provided:

Service Delivery

The amendments to the fees for the Four Seasons Cottage at the Caravan Park are proposed to increase utilisation of the Cottage.

The payments for services are required to be set for the statutory committees Council is required to have, the Audit and Risk Committee and the Conduct Review Panel.

SUPPORTING INFORMATION

Council at its meeting held on 1 November 2016 considered a report on the amendments to the Schedule of Fees and Charges, and resolved to place this amendments on public exhibition. Under the Local Government Act 1993, Council cannot charge a fee unless public exhibition process has been undertaken.

No submissions were received, so the amendments are recommended for adoption.

Council Meeting 7 February 2017

5.3 Statement of Investments - December 2016

TRIM REFERENCE: 2017/30

AUTHOR: Brock Gannon, Financial Accounting Officer

EXECUTIVE Summary

The purpose of this report is to provide a statement of Council’s investments held as at 31 December 2016.

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.

Implications in this report

Nil

Policy and Governance Implications

Nil

Recommendation

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

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

further considerations

SUPPORTING INFORMATION

Section 212(1) of the Local Government (General) Regulation 2005 requires that a written report be presented each month at an Ordinary Meeting of the Council detailing all money that Council has invested under Section 625 of the Local Government Act 1993.

As at 31 December 2016, the investments held by Council totalled $117,229,246.27 and is attributed to the following funds.

	31/12/2016	30/11/2016
General Fund	45,510,332.46	50,892,545.53
Sewer Local Fund	33,820,820.98	32,566,616.93
Water Supply Local Fund	37,898,092.83	36,860,331.98
Orange CBD Special Rate
	117,229,246.27	120,319,494.44

A reconciliation of Council’s investment portfolio provides a summary of the purposes for which Council’s investments are being held.

Externally Restricted	31/12/2016	30/11/2016
General Fund	21,737,621.40	21,135,061.56
Water Fund	37,898,092.83	34,321,821.51
Sewer Fund	33,820,820.98	32,973,012.21
Auspiced	1,522,412.52	1,522,752.52
Internally Restricted	7,396,935.86	7,654,128.32
Unrestricted	14,853,362.68	22,712,718.32
	117,229,246.27	120,319,494.44

Portfolio Performance

Council’s current Long Term Financial Plan establishes the benchmark for Council’s interest on investments at “75 basis points above the current cash rate”. The cash rate as at 31 December 2016 remained at 1.50%. The annualised average interest rate of Council’s investment portfolio at the same reporting date was 3.07% (weighted average 2.94%) which continues to exceed Council’s benchmark i.e. the cash rate of 1.50% plus 0.75% (or 75 basis points).

Council has also utilised the AusBond Bank Bill Index to provide a further benchmark focused towards long term investments. As at 31 December 2016, the AusBond rate was 1.72%. The annualised average interest rate of Council’s investment portfolio at the same reporting date was 3.07%.

Council’s adopted Investment Policy establishes limits in relation to the maturity terms of Council’s investments as well as the credit ratings of the institutions with whom Council can invest.

The following tables provide a dissection of Council’s investment portfolio as required by Council’s Investment Policy. The Policy identifies the maximum amount that can be held in a variety of investment products or with institutions based on their respective credit ratings.

Table 1 and Table 2 show the percentage held by Council (holdings) and the additional amount that Council could hold (capacity) for each respective category in accordance with limits as established by Council’s Policy.

Table 1: Maturity – Term Limits

Term to Maturity Allocation	Maximum	Holding	Capacity
0 - 3 Months	100.00%	9.15%	90.85%
3 - 12 Months	100.00%	59.48%	40.52%
1 - 2 Years	70.00%	12.71%	57.29%
2 - 5 Years	50.00%	18.66%	31.34%
5+ Years	25.00%	0.00%	25.00%

Table 2: Credit Rating Limits

	Maximum	Holding	Capacity
AAA	100.00%	0.00%	100.00%
AA	100.00%	14.93%	85.07%
A	60.00%	41.95%	18.05%
BBB & NR	40.00%	39.41%	0.59%
Below BBB	0.00%	0.00%	0.00%

Certification by Responsible Accounting Officer

I, Kathy Woolley, hereby certify that all investments have been made in accordance with Section 625 of the Local Government Act 1993, Clause 212 of the Local Government (General) Regulation 2005 and Council’s Investment Policy.

Council Meeting 7 February 2017

5.4 Centroc Board Report

TRIM REFERENCE: 2016/2944

AUTHOR: Garry Styles, General Manager

EXECUTIVE Summary

Report from the General Manager, Garry Styles attending the Centroc Board Meeting on 24 November 2016 held at Parliament House in Canberra.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “4.1 Our City – Continue to deliver a leadership role as a major entity in the region and actively contribute to the future direction of local, regional and national initiatives to support and facilitate improved outcomes for the community”.

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

That the Report from the General Manager from the Centroc Board Meeting 24 November 2016 at Parliament House be noted.

further considerations

SUPPORTING INFORMATION

Transport Infrastructure – Cr Bill West, Immediate Past Chair of Centroc updated the Board on the recent Strategic Roads Group meeting, where TfNSW and RMS spoke about the Bells Line of Road and the Corridor updates. The Board resolved to reaffirm the importance of the Corridor.

He also met with the Hon Duncan Gay, Minister for Roads, Maritime and Freight on the 7 November to discuss the Blayney Demondrille, securing the Corridor for the Bells Line, roads funding particularly for flood damaged roads and the closure of the Newell Highway.

All Ministers acknowledged the case for the high productivity link to Central NSW. The issue of day labour and the national disaster funding was also raised.

Water Security – Centroc lodged a submission on the draft framework on Microbial Health Based targets. This can be viewed on the Centroc website.

An update on the meeting held 17 November with Centroc, Lachlan Valley Water and Belubula Landholders was given to the Board.

Regional Development – Centroc participated in the review of Regional Development Australia processes.

Tourism - The Board resolved that members fund CNSWT for this financial year and support CNSWT while it seeks funding for transition arrangements.

Planning – A submission to the proposed JO boundaries was lodged, Centroc response was support for the boundaries. Hilltops and Upper Lachlan confirmed their intent to continue as operational members with the group

Management Plan and Constitutional, Policy Review - Legal advice was sought for an amendment to the Constitution to enable administrators to be on the Centroc Executive. The Board resolved in this direction.

Operational – An example of the value for Centroc Regional Contracts was given on a recent Centroc contract for bulk fuel that Mid Western Regional Council calculated would save them $155,000.

Centroc operations continue to maintain savings for the Region.

· Over 6000 courses have been completed since the online training system began in 2012.

· There are 33 contracts that member councils have access to.

· $3.6 million dollars’ worth of savings to September 2016 have been calculated since December 2009.

Opportunities for Central NSW will be maximized through a submission to the NSW Government on the draft Climate Change fund strategic Plan and the Draft Plan to save NSW Energy and Money.

Financial – the anticipated loss for 30 June 2017 is $25,454 against a budgeted loss of $697. This is due to Mid Western Regional Council no longer being a member. Centroc staff will endeavour to make up this loss.

AGM – Cr Bill West stepped down from Chair of Centroc, he thanked the Board for their support through his time as Chair.

Cr Gary Rush, Mayor of Bathurst Regional Council was elected to the position of the Chair of Centroc, and Cr John Medcalf was elected as Deputy Chair of Centroc.

As part of a new initiative, the Board nominated a delegate, who will each be responsible for priority Portfolios for 12 months

· Water (Cr Gary Rush);

· Health, (Cr John Medcalf);

· Regional Development, (Cr Bill West);

· Transport (Cr Ken Keith) and

· Planning (Cr John Davis).

Attachments

1 Centroc Minutes - AGM - 24 November 2016, D16/62744 ⇩

Council Meeting 7 February 2017

5.4 Centroc Board Report

Attachment 1 Centroc Minutes - AGM - 24 November 2016

Minutes of AGM Thursday 24 November 2016 held in Canberra Parliament House

Delegates in Bold

Cr G Rush	Bathurst Regional Council	Mr G Wallace (Acting)	Oberon Council
Mr D Sherley	Bathurst Regional Council	Mr G Styles	Orange City Council
Cr S Ferguson	Blayney Shire Council	Cr K Keith	Parkes Shire Council
Ms R Ryan	Blayney Shire Council	Cr B McCormack	Upper Lachlan Shire
Cr I Gosper	Cabonne Council	Mr J Bell	Upper Lachlan Shire
Mr S Harding (Acting)	Cabonne Council	Cr M Liebich	Weddin Shire Council
Cr D Somervaille	Central Tablelands Water	Cr P Best	Weddin Shire Council
Mr G Rhodes	Central Tablelands Water	Mr Andrew Gee	Member for Calare
Cr B West	Cowra Council	Mr Mark Coulton	Member for Parkes
Mr P Devery	Cowra Council	Mr Michael McCormack	Member for Riverina
Cr G Miller	Forbes Shire Council	Mr Angus Taylor	Member for Hume
Mr D Green	Forbes Shire Council	Ms A Morgan	Dept Premier & Cabinet
Ms W Tuckerman	Hilltops Council	Mr A McCormack	RDACW
Cr J Medcalf	Lachlan Shire Council	Mr P Mc Millan	RDACW
Mr R Hunt	Lachlan Shire Council	Ms J Bennett	Centroc
Cr S Lesslie	Lithgow City Council	Ms M Macpherson	Centroc
Mr A Muir (Acting)	Lithgow City Council	Ms A Thomas	Centroc
Cr K Sajowitz	Oberon Council	Ms V Page	Centroc

1 Meeting opened at 1.15pm Chaired by Cr B West

2 Apologies

Cr J Davis, Mr K Boyd, Mr A McMahon

Resolved Mr D Sherley/Cr J Medcalf

That the apologies for the Centroc AGM meeting 24 November listed above be accepted.

3 Minutes

Ratification of the Minutes of the AGM 26 November 2015

Resolved Mr D Sherley/Mr J Bell

That the Minutes of the AGM 26 November 2015 be confirmed.

4 Chairperson’s Report – Presentation of the Annual Report

Resolved Cr G Rush/Mr D Green

That the Annual Report be received and accepted with copies sent to member Councils for circulation to all Councillors in the region

5 Election of new Executive

· Cr B West stepped down from Chair.

· Mr A McCormack became returning Officer.

· Cr Gary Rush was elected as Chair unopposed.

· Cr John Medcalf was elected as Deputy Chair unopposed.

Resolved Mr G Styles/Cr K Keith

That the Centroc Board confirms that Cr S Lesslie, Cr K Keith, Cr Davis being the Mayors from Lithgow City Council, Parkes Shire Council and Orange City Council as the ordinary members of the Centroc Executive.

The Centroc Board welcomes the balance of the Executive:

· Cr Bill West (Cowra) as immediate past chair

· Cr G Miller and Mr D Green (Forbes) as Centroc Treasurer

· Mr D Sherley (Bathurst) as Secretary and Chair of GMAC

· Messers – Hunt (Lachlan), Devery (Cowra), Boyd, (Parkes)and Styles (Orange) forming the balance of the Executive.

Cr G Rush Assumed Chair

6 Election of Centroc Delegates

Resolved

1.Cr B West, Cr K Keith, Cr G Rush, Cr S Lesslie, Cr G Miller are the delegates for the Blue Mountains Expressway Group

Cr B West/ Cr K Keith

2.Cr S Ferguson will represent Centroc on the Western Region Academy of Sport

Mr G Styles/Cr B West

3. Sally Hall and Charmaine Bennett will represent Centroc on the, NSW Council Safe Advisory Network

Mr G Styles/Mr D Sherley

4.Cr B West, Cr K Keith, Cr S Lesslie, Cr G Miller is the representative for the Regional Strategic Roads Group

Mr D Sherley/Cr J Medcalf

5.Cr G Rush is the representative for The Western Mining Taskforce

Cr B West/Mr D Sherley

6.Cr G Rush is the representative for The Outer Sydney Orbital and Castlereagh Connection Corridor Steering Committee

Cr B West/Mr G Styles

6a External bodies and portfolio Mayors

Resolved Cr B West/Mr G Styles

That, from the floor, the Board determine delegates to external bodies and portfolio Mayors

For 12 Months.

Transport - Cr Ken Keith

Water – Cr Gary Rush

Health - Cr John Medcalf

Regional Development - Cr Bill West and

Planning – Cr John Davis

7 Appointment of Auditor

Resolved Mr D Green/Cr S Ferguson

That Crowe Horwath be appointed as the Auditor for Centroc

8 Constitutional Review

Resolved Mr G Styles/Mr D Sherley

That the Board note the Constitution and that update advice will be provided during the Joint Organisation reform period.

9 Policy review

Resolved Mr D Sherley/Cr K Keith

That the Centroc Policy Manual be adopted and the balance of the report be noted, with amendment to wording, page 44 under the heading of Responsibility - Staff and Board Members, the wording be changed from ‘’directs’’ to ‘’informs’’ when referring to Board members.

10 Presentation of the Statement of Finances

Resolved Cr B West/ Mr G Styles

That the Statement of Finances for Centroc be adopted.

11 Meeting Dates for 2017

Resolved Cr J Medcalf/Cr I Gosper

That the Centroc Meeting dates for 2017 be

Board	Meeting of	Time	Host
Thursday 23 February	Board	9:30 for 10am	Forbes
Thursday 25 May	Board	9:30 for 10am	Hilltops/State Parliament
Thursday 24 August	Board	9:30 for 10am	Lachlan/Federal Parliament
Thursday 23 November	Board	9:30 for 10am	Lithgow

Executive	Meeting of	Time	Host
Thursday 9 February	Executive	8.30 - 10am	Orange
Thursday 4 May	Executive	8.30 - 10am	Orange
Thursday 27 July	Executive	8.30 - 10am	Orange
Thursday 26 October	Executive	8.30 - 10am	Orange

GMAC	Meeting of	Time	Host
Thursday 9 February	GMAC	9:30 for 10am -12:30	Orange
Thursday 4 May	GMAC	9:30 for 10am -12:30	Orange
Thursday 27 July	GMAC	9:30 for 10am -12:30	Orange
Thursday 26 October	GMAC	9:30 for 10am -12:30	Orange

12 Other Business

Resolved Cr S Lesslie/ Cr J Medcalf

To record the appreciation for Mr Roger Bailey for his work at Lithgow City Council and Centroc.

Meeting closed at 1.30pm

Page 3 is the last page of the Centroc AGM minutes 24 November 2016 held in Parliament House

Council Meeting 7 February 2017

5.5 Strategic Policy Review

Attachment 1 Strategic Policy - ST138 - Related Parties

RELATED PARTIES

ST138 F22

ObjectiveS

From July 2016, the Australian Accounting Board Standard – Related Parties Disclosures (AASB 124) applies to councils in New South Wales.

Council is required to disclose Related Party Transactions and Relationships and Key Management Personnel compensation in the annual Financial Statements to comply with AASB 124.

Applicability

Key Management Personnel named in this policy.

General

AASB 124 framework and requirements

The Policy establishes that Related Parties and Key Management Personnel will be identified such that transactions between Council and Related Parties can be identified and where assessed as being required to be disclosed, be reported in the annual Financial Statements in accordance with AASB 124.

AASB 124 requires that Council must disclose the following financial information in its annual Financial Statements:

· disclosure of any Related Party relationships outlining the relationship with any Related Parties or subsidiaries (where applicable), whether or not there have been transactions within the relevant reporting period

· Key Management Personnel (KMP) Compensation Disclosures

The disclosure of Related Parties information requirements under AASB 124 are additional to those in place under Section 449 of the Local Government Act 1993 regarding the annual returns disclosing interests of Councillors and designated persons. Additionally, the requirements under this Policy do not supplant the responsibilities to declare conflicts of interest as identified in the Council’s Code of Conduct.

In the preparation of the annual Financial Statements, an assessment of the materiality and significance of the Related Party Transactions will be made to determine the level of disclosure.

AASB 124 identifies that the purpose of disclosing Related Parties is to assess where transactions or relationships could impact on the profit and loss of an entity. This may be because a Related Party may enter into transactions in a manner that other parties may not due to the relationship with the Council or Key Management Personnel. Alternatively, there may be a personal relationship between a Key Management Personnel and their relatives or other persons that could influence the transactions of the Council with another party.

Key Management Personnel are responsible for planning, directing and controlling the Council.

Key Management Personnel are required to identify Related Parties and Related Transactions that they expect will or do occur between those Related Parties and Council. Council will itself have Related Parties and Related Transactions which similarly need to be identified.

The Policy identifies the requirement to capture disclosures of Related Parties and Transactions between those Parties and Council and the need to collate the disclosures in a Register. The Register will be used to prepare the required components for inclusion in the annual Financial Statements.

Related Parties Identification and Disclosure timetable

Disclosures of Related Parties and Transactions will be required of Key Management Personnel at least twice annually.

The due dates for Disclosures will be 15 January and 15 June annually.

Key Management Personnel should provide updates on Related Parties and Transactions as issues arise by submitting an updated Related Parties Disclosure Form at times other than the two collection dates listed above if their situation changes.

The Council will also disclose any Related Parties and Related Transactions for inclusion in the Related Parties Disclosures register by 15 January and 15 June annually.

Related Parties Disclosure Register

Information collected on the Related Parties Disclosure Form (attached) will be securely stored in Council’s Related Parties Disclosure Register.

Access to the Related Parties Disclosure Register will be available only to those who may lawfully be granted access after consideration of matters of privacy and other legislative requirements.

The Related Parties Disclosures Register will be used as the basis for the information included in the annual Financial Statements to satisfy the Related Party reporting requirements.

The Manager Financial Services is responsible for the updating and maintenance of the Related Parties Disclosures Register.

KEY MANAGEMENT PERSONNEL (KMP)

Key Management Personnel are identified as those persons having authority and responsibility, either directly or indirectly, for planning, directing and controlling the activities of the entity.

Orange City Council has identified as Key Management Personnel:

· Councillors

· Administrators

· General Manager

· Directors

Compensation Disclosure requirements

KMP Compensation Disclosures require that information on all forms of paid, payable, or provided in exchange for services provided must be disclosed.

This information may include:

· Short-term employee benefits - such as:

o wages, salaries and social security contributions

o paid annual leave and paid sick leave

o profit sharing and bonuses (if payable within twelve months of the end of the period

o non-monetary benefits (such as medical care, housing, cars and free and subsidised goods or services) for current employees.

· Post-employment benefits such as:

o pensions, other retirement benefits

o post employment life insurance

o post-employment medical care

· Other long-term employee benefits, including:

o long-service leave or sabbatical leave

o jubilee or other long-service benefits

o long-term disability benefits

o and, if they are not payable wholly within twelve months after the end of the period, profit sharing, bonuses and deferred compensation

· Termination benefits.

Close members of the family of KMP

The method for identifying the close family members and associated entities of KMP will be by KMP self-assessment with details to be submitted on the Related Parties Disclosure form.

KMP have an ongoing responsibility to advise Council immediately of any changes to Related Parties and associated Transactions.

Close family members of the KMP are those family members who may be expected to influence, or be influenced by, that person in their dealings with the Council, and include:

· that person’s children

· that person’s spouse/domestic partner

· children of that person’s spouse/domestic partner

· dependants of that person or that person’s spouse/domestic partner.

In addition to those family member identified above as close family members, a KMP may have other members of their extended family who they should identify as close family members if these family members could be expected to influence, or be influenced by, that person in their dealings with Council. This could include:

· that person’s brothers and sisters

· that person’s spouse/domestic partner’s brothers and sisters

· aunts, uncles, and cousins of that person’s or that person’s spouse/domestic partner

· dependants of those person’s or that person’s spouse/domestic partner

· that person's or that person's spouse/domestic partners', parents and grandparents.

It is the responsibility of KMP to assess and report all related parties that they know do, or expect are likely to, have transactions with Council.

RELATED PARTIES AND RELATED PARTY RELATIONSHIPS

Related Party

A Related Party is:

a) a person who is a close family member of a KMP where that person has control or joint control of the reporting entity or has significant influence over, or could be influenced by any nominated person in the key management personnel.

b) an entity related to the Council if the entity is the member of the same group of companies (e.g. parent company or one of its subsidiaries), is part of arrangements such as joint ventures or is an associate of the reporting entity, is a post employment benefit plan, is an entity controlled, jointly controlled or is significantly influenced by a person identified in (a), is an entity that a person identified in (a) is a key management personnel of, as a related party.

Entities frequently carry on parts of their activities through subsidiaries, joint ventures and associates. Entities may also include companies, trusts, partnerships, incorporated association or unincorporated groups or bodies and non-profit associations such as sporting clubs. In those circumstances, there is the possibility of the entity having the ability to affect the financial and operating policies of Council through the presence of control, joint control or significant influence.

A KMP and the Council needs to consider what associated entities exist when compiling their Related Parties Disclosures form.

Related Party Relationships

Related Party relationships are a normal feature of commerce and business.

A Related Party relationship could influence the normal business operations of Council even if Related Party Transactions do not occur.

The mere existence of the relationship may be sufficient to affect the transactions of the Council with other parties.

Related Party Transactions

Related Party Transactions are the transfer of resources, services or obligations between Council and a related party. They are considered to be transactions whether or not a price is charged.

Such transactions may include:

· purchase or sale of goods (finished or unfinished)

· purchase or sale of property and other assets

· rendering or receiving services

· leases

· transfers of research and development

· transfers under licence agreements

· transfers under finance arrangements (including loans and equity contributions in cash or in kind)

· provision of guarantees or collateral

· commitments to do something if a particular event occurs or does not occur in the future, including executory contracts (recognised and unrecognised)

· quotations and/or tenders

· commitments

· settlements of liabilities on behalf of Council or by Council on behalf of the related party.

Regard must also be given if transactions that are collectively or individually significant.

ISSUES THAT WILL BE ASSESSED IN CONSIDERING RELATED PARTY TRANSCTIONS

The Disclosure process will consider all transactions between Council and persons and entities the Council or KMPs have named as related parties.

Collations of the disclosures may be made in some circumstances. AASB 124 provides that Council must disclose all material and significant Related Party Transactions and outstanding balances, including commitments, in its annual Financial Statements. Generally, reporting will be made where a transaction has occurred between Council and a related party of Council where the transaction is material and/or significant in nature or size when considered individually or collectively.

For the purpose of this policy, it is not considered appropriate to set either a dollar value or a percentage value to determine materiality. In preparing the information for the annual Financial Statements, the Council will consider the information in the Related Parties Disclosures Register on the basis of materiality and significance.

Ordinary citizen transactions

Ordinary citizen transactions do not need to be disclosed on the basis of services being available to all citizens at the same fee or level of service. Examples include:

· paying rates and charges

· paying normal entry fee for use of the Council’s swimming pool

· attending the theatre when tickets have been bought at prices other patrons would pay

· fines on normal terms and conditions

DISCLOSURES

AASB 124 provides that Council must disclose all material and significant Related Party Transactions in its annual Financial Statements by aggregate or general description and include the following detail:

· the nature of the Related Party Relationship, and

· relevant information about the transactions including:

o the amount of the transaction;

o the amount of outstanding balances, including commitments, and

o their terms and conditions, including whether they are secured, and the nature of the consideration to be provided in the settlement; and

o details of any guarantee given or received;

· provision for doubtful debts related to the amount of outstanding balances; and

· the expense recognised during the period in respect of bad or doubtful debts due from Related Parties.

Generally, transactions with amounts receivable from and payable to KMP or their Related Parties which occur within normal employee, customer or supplier relationships and at arm’s length and are not material or significant, shall be excluded from detailed disclosures, but they will be disclosed in the financial statements by general description.

Disclosures that Related Party Transactions were made on terms equivalent to an arm’s length transaction can only be made if such terms can be substantiated.

Review of this policy

This policy will be reviewed annually but may also be reviewed if any of the following occur:

· corporate restructure that impacts on the KMPs,

· legislative, accounting standard or Local Government Code of Accounting Practice change that impacts on the application of the Policy, or

· other circumstances as determined from time to time by a resolution of Council

Related Policies/Documents

Related Party Disclosure form (attached)

Local Government Act 1993

Australian Accounting Board Standard – Related Parties Disclosures AASB 124

Council’s Code of Conduct

Related Parties Operational Policy

Responsible Area – Corporate and Commercial Services

REVISION
	DATE	RESOLUTION		DATE	RESOLUTION
1	December 2017 – New policy		6
2			7
3			8
4			9
5
All policies can be reviewed or revoked by resolution of Council, at any time.

SUMMARY OF AMENDMENTS

Amendment Date	Section/Reference and Amendment
Dec 2017	New Policy

Name of related person or entity	Relationship of KMP with the person or entity	Nature of transaction(s)