Agenda of Council Meeting - 5 February 2019

ORANGE CITY COUNCIL

MINUTES OF THE

Ordinary Council Meeting

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

ON 18 December 2018

COMMENCING AT 7.00Pm

Attendance

Cr R Kidd (Mayor), Cr S Romano (Deputy Mayor), Cr K Duffy, Cr J Hamling, Cr J McRae, Cr T Mileto, Cr S Munro, Cr S Nugent, Cr M Previtera, Cr G Taylor, Cr R Turner, Cr J Whitton

Acting General Manager (Director Technical Services), Director Corporate and Commercial Services, Director Development Services, Director Community, Recreation and Cultural Services, Manager Corporate Governance, Governance Coordinator, Executive Support Manager, Water and Sewerage Strategic Manager, Communications Officer, Manager Engineering Services.

1.1 APOLOGIES

Nil

1.2 LIVESTREAMING AND RECORDING

The Mayor advised that the meeting was being livestreamed and recorded.

1.3 ACKNOWLEDGEMENT OF COUNTRY

The Mayor conducted the Acknowlegemnet of Country.

1.4 OPENING PRAYER

Jon Baker of the Church of Christ led the Council in Prayer.

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

Nil

CR TAYLOR MADE A STATEMENT OF APOLOGY

2 Mayoral Minutes

2.1 Mayoral Report Centroc AGM, Centroc Board Meeting and Central NSW Joint Organisation Minutes 22 November 2018

TRIM Reference: 2018/3073

RESOLVED - 18/579 Cr S Nugent/Cr S Munro

That the information contained in this Mayoral Minute be acknowledged.

THE MAYOR DECLARED THE ORDINARY MEETING OF COUNCIL ADJOURNED FOR THE CONDUCT OF THE OPEN FORUM AT 7:06PM

CR ROMANO CONGRATULATED CR TAYLOR ON HIS STATEMENT

CR ROMANO SPOKE REGARDING VISITORS TO ORANGE AND HIS MEETING WITH MEMBER FOR ORANGE, MR PHILIP DONATO MP.

OPEN FORUM

DA 329/2018(1) – 269-279 Summer Street, Robertson Park

Jim Prosser-Fenn of 64 McNamara Street spoke outlining his concerns regarding the development, safety and lighting.

Stewart Church of 70 McNamara Street, Paraway Pastoral, spoke outlining concerns regarding the safety of the proposed development.

Sophie Fardell of 1/66 McNamara Street, Orange Physiotherapy Pilates in the Park, spoke outlining her disapproval of the application and safety concerns in the park.

Harry Fardell on behalf of Ben Cochrane, Parkview Hotel, read a statement prepared by Ben outlining his concerns about the development application.

Robert Blake of Orange Legacy, spoke regarding the proposed development suggesting the position be revised to next to the CWA where there is existing plumbing or the Taxi rank.

Ryan Stewart of 72 McNamara Street spoke regarding concerns of antisocial behaviour in Robertson Park and safety concerns.

Charlie Perkins of 68 McNamara Street spoke regarding his understanding of the history of the Robertson Park amenities and their proposed use by the community in support of the Rescission Motion.

THE MAYOR DECLARED THE ORDINARY MEETING OF COUNCIL RESUMED AT 7:39PM

3 Confirmation of Minutes of Previous Meeting

RESOLVED - 18/580 Cr S Nugent/Cr J McRae

That the Minutes of the Ordinary Meeting of Orange City Council held on 4 December 2018 (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 4 December 2018.

4 Notices of Motion/Notices of Rescission

4.1 RESCISSION MOTION - Robertson Park Toilets by Cr K Duffy, Cr S Munro and Cr S Nugent

TRIM Reference: 2018/3087

RESOLVED - 18/581 Cr K Duffy/Cr S Nugent

That Council rescind the following decision of the Planning and Development Meeting of 4 December 2018:

2.9 Development Application DA 329/2018(1) - 269-279 Summer Street (Robertson Park)

TRIM Reference: 2018/2901

RESOLVED - 18/544 Cr G Taylor/Cr J Whitton

That Council consents to development application DA 329/2018(1) for Recreation Area - Amenities Block and Demolition (tree removal) at Lot 702 DP 1002273 - 269-279 Summer Street, Orange pursuant to the conditions of consent in the attached Notice of Approval.

NOTICE WAS GIVEN OF A FORESHADOWED MOTION

MOTION Cr K Duffy/Cr S Munro

That Council resolves to proceed to construct toilet facilities adjacent the CWA building in accordance with DA 31/2016. In addition, a delegation of elected Council representatives are to meet with CWA representatives in relation to the construction and other upgrades required to the existing CWA building.

THE MOTION ON BEING PUT TO THE MEETING WAS LOST

4.2 Notice of Motion - Glenroi Oval by Cr S Nugent and Cr J Hamling

TRIM Reference: 2018/2976

RESOLVED - 18/582 Cr S Nugent/Cr J Hamling

That Council:

1 Develop a master plan for the future development of Glenroi Oval, and connected public space, with the aim of maximising its safe use for sporting and recreation purposes, minimising vandalism and other anti-social behaviour, and developing a sense of local ‘ownership’ and responsibility for the area.

2 Consider an annual budget for the development and implementation of the master plan.

4.3 Notice of Motion - Mayoral Vehicle Registration Plates by Cr G Taylor and Cr R Turner

TRIM Reference: 2018/3044

RESOLVED - 18/583 Cr G Taylor/Cr R Turner

That the “Orange” registration plates be retrieved from the RMS and be placed back onto the Mayoral vehicle.

** Cr R Kidd (Mayor) left the chamber with the time being 8.40pm and did not participate in discussion or voting on this item. **

** Cr Romano (Deputy Mayor) assumed the chair for this item. **

** Cr R Kidd (Mayor) returned to the chamber and reassumed the chair at 8.55pm. **

4.4 Notice of Motion - Public Forum on Roads and Footpath Program by Cr J Hamling

TRIM Reference: 2018/3077

RESOLVED - 18/584 Cr J Hamling/Cr S Munro

That Council conduct a public forum on the roads and footpath program to highlight what projects and works have been completed in the 6 months from July to December 2018 and what works are planned for the period January to July 2019.

4.5 Notice of Motion - Councillors Working With Children Checks by Cr G Taylor and Cr J Whitton

TRIM Reference: 2018/3080

RESOLVED - 18/585 Cr G Taylor/Cr S Munro

The Council administration provide feedback on the feasability and enforceability of requiring all Councillors to undertake working with Children and Federal Police Checks.

QUESTION TAKEN ON NOTICE

Cr Mileto requested information on who in Council is the White Ribbon Ambassador, as a signatory to the White Ribbon campaign.

** Cr G Taylor left the meeting at 9.10pm. **

4.6 Notice of Motion - Security at Orange Airport by Cr S Romano and Cr M Previtera

TRIM Reference: 2018/3135

RESOLVED - 18/586 Cr S Romano/Cr M Previtera

That Council staff actively pursue additional lighting, cameras and formalised car parking at the Orange Airport, to act as a deterrent to thieves.

5 General Reports

5.1 Recommendations and Resolutions from Policy Committees

TRIM Reference: 2018/3067

RESOLVED - 18/587 Cr S Nugent/Cr J McRae

That Council resolves to adopt the following resolutions of Policy Committees from the meetings of 4 December 2018:

1 PLANNING AND DEVELOPMENT Committee

1 Council resolves to approve the Planning and Development Committee minutes held on 4 December 2018.

2 Council resolves to approve the following recommendations of the Planning and Development Committee meeting held on 4 December 2018:

2.9 Development Application DA 329/2018(1) - 269-279 Summer Street (Robertson Park)

2.3 Enforcement Policy

That Council resolves to adopt the attached Enforcement Policy.

2.4 Orange Local Environmental Plan 2011 - Planning Proposal for an Administrative Amendment

That Council resolves:

1 To endorse the attached scope of the next administrative housekeeping amendment to Orange Local Environmental Plan 2011.

2 That staff prepare a formal Planning Proposal in accordance with the attached scope.

3 To send the Planning Proposal to the NSW Department of Planning and Environment seeking a Gateway Determination.

4 That staff proceed to address any conditions or requirements of the Gateway Determination and then place the draft Planning Proposal on public exhibition for 28 days (or as required by the Gateway Determination).

2.6 Development Application DA 136/2018(1) - 100 Bathurst Road

That Council resolves to consent to development application DA 136/2018(1) for Take Away Food and Drink Premises, Restaurant or Cafe, Demolition (existing building and tree removal) and Business Identification Signage at Lot 4 DP 778409 - 100 Bathurst Road, Orange pursuant to the conditions of consent in the attached Notice of Approval.

2.7 Development Application DA 313/2018(1) - 26 Prince Street

That Council resolves to consent to development application DA 313/2018(1) for Demolition (existing dwelling, ancillary structures and vegetation), Subdivision (two lot residential) and Dwelling Houses (construction of two new dwelling houses) at Lot 1 Sec 33 DP 155632 – 26 Prince Street, Orange pursuant to the conditions of consent in the attached Notice of Approval.

2.8 Development Application DA 349/2018(1) - 59-67 and 99 Bathurst Road

That Council resolves to consent to development application DA 349/2018(1) for Demolition (tree removal) at Lot 40 DP 810916 and Lot 30 DP 1190518 - 99 Bathurst Road and 59‑67 Bathurst Road, Orange pursuant to the conditions of consent in the attached Notice of Approval.

2.10 Development Application DA 348/2018(1) - 5 Hanrahan Place

That Council resolves to consent to development application DA 348/2018(1) for Highway Service Centre and Business Identification Signage at Lot 85 DP 1167633 - 5 Hanrahan Place, Orange pursuant to the conditions of consent in the attached Notice of Approval.

2 EMPLOYMENT AND ECONOMIC DEVELOPMENT Policy Committee

1 Council resolves to approve the Employment and Economic Development Policy Committee minutes held on 4 December 2018.

2 Council resolves to approve the following recommendations of the Employment and Economic Development Policy Committee meeting held on 4 December 2018:

2.1 Minutes of the Sister Cities Community Committee - 7 November 2018

That Council resolves:

1 To acknowledge the reports presented to the Sister Cities Community Committee at its meeting held on 7 November 2018.

2 The recommendations and updated action plan from the minutes of the Sister Cities Community Committee meeting of 7 November 2018 being:

4.1 That the Action List for the Sister Cities Community Committee be reviewed and updated with the following actions :

1 Bring costings for a ‘Welcome’ banner, a Japanese flag and suggestions to improve the council welcome events for visiting exchanges students.

2 That proceeds from the PNG Earthquake Appeal be directed to the local school at Mt Hagen by way of the local council, and investigate if proceeds could be delivered during a visit by planning staff.

3 That information about the next national Sister Cities Association conference be circulated to Sister Cities committee members.

4 That the section of the Community Strategic Plan that outlines the work of the Sister Cities committee be circulated to committee members

5 That a letter of congratulation be sent to the incoming Mayor of the City of Orange, California once the results of the November 6 election are known.

6 That Christmas greetings be sent to the council leadership of each of the sister cities.

7 That a prospective date for the next meeting on a Wednesday in February at 5.3pm be circulated to committee members.

3 To adopt the remainder of the minutes of the Sister Cities Community Committee at its meeting held on 7 November 2018.

3 Infrastructure Policy Committee

1 Council resolves to approve the Infrastructure Policy Committee minutes held on 4 December 2018.

2 Council resolves to approve the following recommendations of the Infrastructure Policy Committee meeting held on 4 December 2018:

2.1 MINUTES OF THE FLOODPLAIN RISK MANAGEMENT COMMUNITY COMMITTEE MEETING - 5 NOVEMBER 2018

That Council resolves to adopt the minutes of the Floodplain Risk Management Community Committee meeting of 5 November 2018.

2.2 MINUTES OF THE CITY OF ORANGE TRAFFIC COMMITTEE MEETING – 13 NOVEMBER 2018

That Council resolves:

1 To acknowledge the reports presented to the City of Orange Traffic Committee at its meeting of 13 November 2018.

2 Recommendations 3.1 to 3.4 from the minutes of the City of Orange Traffic Committee meeting of 13 November 2018 being:

3.1 That Council amends the bus zone in Bletchington Street outside the MET School as per Annexure A and notifies the school that the driveway gates must be locked during the bus zone times, with confirmation in writing to this effect being received from the school.

3.2 That Council installs No Stopping signs on the southern side of the Northern Distributor Road, between existing No Stopping west of Telopea Way and 93 Northern Distributor Road as per the supporting information.

3.3 That Council approves the line marking and signage at the intersection of Matthews Avenue and Anson Street as per the plans attached to this report.

3.4 That Council approves the Newcrest Orange Challenge event on 31 March 2019 subject to the attached conditions.

3 To adopt the remainder of the minutes of the City of Orange Traffic Committee meeting of 13 November 2018.

4 Sport and Recreational Policy Committee

1 Council resolves to approve the Sport and Recreational Policy Committee minutes held on 4 December 2018.

2 Council resolves to approve the following recommendations of the Sport and Recreation Policy Committee meeting held on 4 December 2018:

2.1 Minutes of the Australia Day Community Committee Meeting – 14 November 2018

Council resolves to adopt the minutes of the Australia Day Community Committee meeting held on 14 November 2018.

2.2 Minutes of the Sport and Recreation Community Committee meeting held on 29 October 2018

That Council resolves:

1 To acknowledge the reports presented to the Sport and Recreation Community Committee at its meeting held on 29 October 2018.

2 To adopt recommendations 3.2, 3.3, 3.4 from the minutes of the Sport and Recreation Community Committee meeting of 29 October 2018 being:

3.2 That Council send a letter to the NSW Minister of Sport expressing disappointment in missing out on funding through the Regional Sporting Infrastructure Fund.

3.3 That the Hon. Rick Colless be invited to the next meeting of the Sport and Recreation Community Committee to provide him with an overview of the Committee’s priority sport and active recreation projects and seek support and assistance in securing funding for the projects.

3.4 That the future of the Anzac Park BMX Track be added to the Sport and Recreation Community Committee Action Plan for further discussion.

3 To adopt the remainder of the minutes of the Sport and Recreation Community Committee at its meeting held on 29 October 2018.

3.2 Orange Sporting Precinct

The Council resolves:

1 To note the findings of the report.

2 That a schematic design incorporating current and future requirements for the NDR site be developed to a standard to enable costing be completed.

5 Environmental Sustainability Policy Committee

Council resolves to approve Environmental Sustainability Committee minutes held on 4 December 2018.

6 Finance Policy Committee

1 Council resolves to approve Finance Policy Committee minutes held on 4 December 2018.

2 Council resolves to approve the following recommendations of the Finance Policy Committee meeting held on 4 December 2018:

2.1 Requests for Financial Assistance

The Council resolves:

1 That a donation of $500.00 be made from the Sports Participation Program to Philippa Mannix for attending the School Sport Association (SSA) All Australian Hockey Team European Tour as part of the SSA All Australian Hockey Team.

7 SERVICES POLICY COMMITTEE

1 Council resolves to approve Services Policy Committee minutes held on 4 December 2018.

2 Council resolves to approve the following recommendations of the Services Policy Committee meeting held on 4 December 2018:

2.1 Minutes of the NAIDOC Week Community Committee Meeting – 22 October 2018

1 That Council acknowledge the reports presented to the NAIDOC Week Community Committee at its meeting of 22 October 2018.

2 That the remainder of the minutes and recommendations made by the NAIDOC Week Community Committee at its meeting held on 22 October 2018 be adopted.

2.2 Minutes of the Lucknow Community Committee Meeting – 1 November 2018

That Council resolves:

1 To acknowledge the reports presented to the Lucknow Community Committee at its meeting held on 1 November 2018.

2 Recommendations 3.2 from the minutes of the Lucknow Community Committee meeting of 1 November 2018 being:

1 That the Lucknow Community Committee Action Plan be reviewed and updated.

2 That the remediation of the northern side bus stop progress with the laying of hotmix.

3 That the installation of solar lighting in bus stops progress.

4 That the beautification between Two Fat Ladies and Wentworth Mine be placed on the Action Plan.

3 To adopt the remainder of the minutes of the Lucknow Community Committee at its meeting held on 1 November 2018.

2.3 Minutes of the Spring Hill Community Committee Meeting – 15 November 2018

That Council resolves:

1 To acknowledge the reports presented to the Spring Hill Community Committee at its meeting held on 15 November 2018.

2 Recommendations 3.2 and 4.1 from the minutes of the Spring Hill Community Committee meeting of 15 November 2018 being:

3.2 Illegal Parking in Park

That correspondence be forwarded to Live Better, expressing concerns regarding illegal parking of company vehicles in Alf Read Park.

4.1 Spring Hill Community Committee Action Plan and Priority Works

1 That the Spring Hill Community Acton Plan be reviewed and updated.

2 That the item of investigating the addition of plaques and interment of ashes at the cemetery be added to the Action Plan.

3 To adopt the remainder of the minutes of the Spring Hill Community Committee at its meeting held on 15 November 2018.

3.1 Additional Policing Numbers - Central West Police District

That Council resolves to support the addition of sworn officers to the existing approved positions of the Orange Command in the Central West Police District of:

1 14 sworn officers;

2 1 dog unit;

3 Establishment of a Regional Enforcement Squad located in Orange; and

4 Orange Command be one the first command to receive additional police within NSW.

Matter Arising from minutes of Centenary of World War I Community Committee Final Report

That thanks be given to all members, past and present, involved in the Centenary of World War I Community Committee.

8 That the remainder of the minutes of the Employment and Economic Development Policy Committee, Infrastructure Policy Committee, Sport and Recreation Policy Committee, Environmental Sustainability Policy Committee, Finance Policy Committee and Services Policy Committee be noted.

QUESTION TAKEN ON NOTICE

Cr Duffy requested information be circulated on the readiness of fire hydrants for the Summer season.

MATTER ARISING

Cr Whitton requested information on the Australian Flag on Bathurst Road. Cr Turner advised the flag is currently being repaired and the pole is situated on Council land.

5.2 Update on Outstanding Resolutions of Council including Questions Taken on Notice and Notices of Motions.

TRIM Reference: 2018/3068

RESOLVED - 18/588 Cr J McRae/Cr S Nugent

That the information provided in the report by the Manager Corporate Governance on Outstanding and Completed Notices of Motion, Questions of Notice and Matters arising be acknowledged.

Cr R Kidd (Mayor) and Cr S Nugent congratulated staff on the updated listing and format.

5.3 Requests for Financial Assistance

TRIM Reference: 2018/3074

RESOLVED - 18/589 Cr R Turner/Cr S Munro

The Council resolves:

1 That a donation of $1,000.00 be made from Emergent Funding to Mak Boxing Promotions for the staging of an Orange-staged Boxing Festival.

5.4 Purchase of Printer for Use by Councillors

TRIM Reference: 2018/3026

RECOMMENDATION

The Council resolves to:

1 Lease a printer for use exclusively by Councillors be approved as determined by the General Manager.

THE RESOLUTION ON BEING PUT TO THE MEETING WAS LOST

5.5 Development Application DA 33/2018(1) - 4613 Mitchell Highway, Lucknow

TRIM Reference: 2018/2955

RESOLVED - 18/590 Cr K Duffy/Cr M Previtera

That Council resolves to issue a consent to development application DA 33/2018(1) for Demolition (existing service station), Service Station (includes sales building, fuel dispensing canopy, underground fuel tanks), and Business and Site Identification Signs at Lot 101 DP 1053642 - 4613 Mitchell Highway, Lucknow pursuant to the conditions of consent in the attached Notice of Approval.

Division of Voting
Voted For	Cr R Kidd (Mayor), Cr S Romano (Deputy Mayor), Cr K Duffy, Cr J Hamling, Cr J McRae, Cr T Mileto, Cr S Munro, Cr S Nugent, Cr M Previtera, Cr R Turner, Cr J Whitton
Voted Against	Nil
Absent	Cr G Taylor

5.6 Road Closure Application - Part Pinnacle Road Orange

TRIM Reference: 2018/3043

RESOLVED - 18/591 Cr K Duffy/Cr R Turner

That Council resolves to:

1 Proceed with an application for road closure for part Pinnacle Road, Orange.

2 Once closed, proceed to sell that part of the road closed to the owner of 474 Pinnacle Road, Orange.

3 Grant approval for the use of the Council Seal on any necessary documentation.

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 - 18/592 Cr S Munro/Cr T Mileto

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 2018-2019 Icely Road Water Main Renewal

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 2018-2019 Sewer Rehabilitation Tender Assessment

6.3 Contracts for Linemarking Services

The Mayor declared the Ordinary Meeting of Council adjourned for the conduct of the Closed Meeting at 9.44pm

The Mayor declared the Ordinary Meeting of Council resumed at 9.57pm.

7 Resolutions from Closed Meeting

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

6.1 2018-2019 Icely Road Water Main Renewal

TRIM Reference: 2018/2961

RESOLVED - 18/593 Cr S Nugent/Cr S Romano

That Council resolves to:

1 Decline to accept any of the tenders for the renewal of the Icely Road water main.

2 Cancels the proposal to contract the renewal of the Icely Road water main contemplated in the tender.

6.2 2018-2019 Sewer Rehabilitation Tender Assessment

TRIM Reference: 2018/2977

RESOLVED - 18/594 Cr R Turner/Cr S Munro

That Council resolves to:

1 Award the contract for the 2018/19 Sewer Rehabilitation Program to Interflow Pty Ltd for the sum of $626,533.99 (GST inclusive).

2 Grant permission to the General Manager or nominee to do such things as may be necessary or convenient to give effect to this decision, including affixing the Council Seal to all relevant documents if required.

3 Not participate in the Centroc Regional Contract for Sewer Rehabilitation.

** Cr Duffy left the chamber with the time being 9.58pm.**

6.3 Contracts for Linemarking Services

TRIM Reference: 2018/3008

RESOLVED - 18/595 Cr S Nugent/Cr K Duffy

That Council resolves to:

1 Approve the establishment of a new Line-Marking Services Panel under the Council’s Purchasing Policy;

2 Approve the General Manager, or his nominee, to enter into a standard contract with Central West Linemarking, Complete Linemarking Services, Gumbay Holdings t/as Avante Linemarking, Oz Linemarking and Red Squirrel for linemarking services as part of the Panel;

3 Grant permission to the General Manager or nominee to do such things as may be necessary or convenient to give effect to this decision, including affixing the Council Seal to all relevant documents if required.

** Cr Duffy returned to the Chamber with the time being 10.01pm.**

The Meeting Closed at 10.03pm

This is Page Number 16 and the Final Page of the Minutes of the Ordinary Meeting of Orange City Council held on 18 December 2018.

Council Meeting 5 February 2019

5 General Reports

5.1 Statement of Investments - November 2018

TRIM REFERENCE: 2018/3086

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 30 November 2018.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “17.2 Collaborate - Ensure financial stability and support efficient ongoing operation”.

Financial Implications

Nil

Policy and Governance Implications

Nil

Recommendation

That Council resolves:

1 To note the Statement of Investments as at 30 November 2018.

2 To adopt the certification of the Responsible Accounting Officer.

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

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 30 November 2018, the investments held by Council in each fund is shown below:

	30/11/2018	31/10/2018
General Fund	63,490,909.40	62,089,354.36
Water Fund	46,568,995.07	46,260,205.70
Sewer Fund	43,071,109.46	42,431,761.02
Total Funds	$153,131,013.93	$150,781,321.08

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

Externally Restricted	30/11/2018	31/10/2018
General Fund	26,753,428.22	27,260,022.52
Water Fund	46,568,995.07	46,260,205.70
Sewer Fund	43,071,109.46	42,431,761.02
Auspiced	1,899,415.05	1,899,415.05
Internally Restricted	15,245,692.39	15,290,448.08
Unrestricted	19,592,373.74	17,639,468.71
Total Funds	$153,131,013.93	$150,781,321.08

The unrestricted cash position movements during the month are normal as projects commence and income is received. Movements may also arise following processing of income received between funds or into restricted assets to appropriately allocate for the purposes Council has determined.

Portfolio Advice

Council utilises the services of an independent investment advisor in maintaining its portfolio of investments. Council’s current investment advisor is Imperium Markets, an independent asset consultant that works with wholesale investors to develop, implement and manage their investment portfolio. Imperium Markets is a leading provider of independent investment consulting services to a broad range of institutional investors including government agencies, superannuation funds and not-for-profit organisations.

Imperium Markets major services provided to Council include:

· Quarterly portfolio summary reports

· Advice on investment opportunities, in particular Floating Rate Note products

· Advice on policy construction

· Year-end market values for Floating Note Rate products held by Council.

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 30 November 2018 remained at 1.50 per cent. The weighted average interest rate of Council’s investment portfolio at the same reporting date was 2.88 per cent which continues to exceed Council’s benchmark i.e. the cash rate of 1.50 per cent plus 0.75 per cent (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 30 November 2018, the AusBond rate was 1.84 per cent. The weighted average interest rate of Council’s investment portfolio at the same reporting date was 2.88 per cent.

Council’s 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 the 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 shows the percentage held by Council (holdings) and the additional amount that Council could hold (capacity) for each term to maturity allocation in accordance with limits established by Council’s Policy.

Table 1: Maturity – Term Limits

Term to Maturity Allocation	Maximum	Holding	Remaining Capacity
0 - 3 Months	100.00%	32.03%	67.97%
3 - 12 Months	100.00%	46.75%	53.25%
1 - 2 Years	70.00%	9.69%	60.31%
2 - 5 Years	50.00%	11.53%	38.47%
5+ Years	25.00%	0.00%	25.00%

Table 2 shows the total amount held, and the weighted average interest rate (or return on investment), by credit rating. The credit rating is an independent opinion of the capability and willingness of a financial institution to repay its debts, or in other words, the providers’ financial strength or creditworthiness. The rating is typically calculated as the likelihood of a failure occurring over a given period, with the higher rating (AAA) being superior due to having a lower chance of default. However, it is generally accepted that this lower risk will be accompanied by a lower return on investment.

Table 2 demonstrates that Council receives a lower return for its AA rated investments than for those with ratings of A or less. The level of money held in the bank accounts has been added to the table to illustrate the ability of Council to cover the operational liabilities that typically occur (for example payroll, materials and contracts, utilities).

Table 2: Credit Rating Limits

Credit Rating	Maximum	Holding	Remaining Capacity	Value	Return on Investment
Bank Accounts	100.00%	6.05%	93.95%	$10,132,399.98	1.50%
AAA	100.00%	0.00%	100.00%	N/A	N/A
AA	100.00%	46.47%	53.53%	$73,058,613.95	2.75%
A	60.00%	19.86%	40.14%	$29,700,000.00	2.95%
BBB & NR	40.00%	26.90%	13.10%	$40,240,000.00	3.06%
Below BBB	0.00%	0.00%	0.00%	N/A	N/A

Certification by Responsible Accounting Officer

I, Jason Cooke, 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 5 February 2019

5.2 Statement of Investments - December 2018

TRIM REFERENCE: 2019/45

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 2018.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “17.2 Collaborate - Ensure financial stability and support efficient ongoing operation”.

Financial Implications

Nil

Policy and Governance Implications

Nil

Recommendation

That Council resolves:

1 To note the Statement of Investments as at 31 December 2018.

2 To adopt the certification of the Responsible Accounting Officer.

further considerations

SUPPORTING INFORMATION

As at 31 December 2018, the investments held by Council in each fund is shown below:

	31/12/2018	30/11/2018
General Fund	61,104,976.13	63,490,909.40
Water Fund	46,776,378.19	46,568,995.07
Sewer Fund	44,051,428.19	43,071,109.46
Total Funds	$151,932,782.51	$153,131,013.93

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

Externally Restricted	31/12/2018	30/11/2018
General Fund	27,479,784.85	26,753,428.22
Water Fund	46,776,378.19	46,568,995.07
Sewer Fund	44,051,428.19	43,071,109.46
Auspiced	1,899,415.05	1,899,415.05
Internally Restricted	15,253,930.18	15,245,692.39
Unrestricted	16,471,846.05	19,592,373.74
Total Funds	$151,932,782.51	$153,131,013.93

Portfolio Advice

Imperium Markets major services provided to Council include:

· Quarterly portfolio summary reports

· Advice on investment opportunities, in particular Floating Rate Note products

· Advice on policy construction

· Year-end market values for Floating Note Rate products held by Council.

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 2018 remained at 1.50 per cent. The weighted average interest rate of Council’s investment portfolio at the same reporting date was 2.89 per cent which continues to exceed Council’s benchmark i.e. the cash rate of 1.50 per cent plus 0.75 per cent (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 2018, the AusBond rate was 1.84 per cent. The weighted average interest rate of Council’s investment portfolio at the same reporting date was 2.89 per cent.

Council’s 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.

Table 1: Maturity – Term Limits

Term to Maturity Allocation	Maximum	Holding	Remaining Capacity
0 - 3 Months	100.00%	37.31%	62.69%
3 - 12 Months	100.00%	39.11%	60.89%
1 - 2 Years	70.00%	10.00%	60.00%
2 - 5 Years	50.00%	13.57%	36.43%
5+ Years	25.00%	0.00%	25.00%

Table 2: Credit Rating Limits

Credit Rating	Maximum	Holding	Remaining Capacity	Value	Return on Investment
Bank Accounts	100.00%	8.88%	91.12%	$13,492,782.51	1.50%
AAA	100.00%	0.00%	100.00%	N/A	N/A
AA	100.00%	45.09%	54.91%	$68,500,000.00	2.75%
A	60.00%	19.55%	40.45%	$29,700,000.00	2.95%
BBB & NR	40.00%	26.49%	13.51%	$40,240,000.00	3.06%
Below BBB	0.00%	0.00%	0.00%	N/A	N/A

Certification by Responsible Accounting Officer

Council Meeting 5 February 2019

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6 Closed Meeting - See Closed Agenda

The General Manager will advise the Council if any written submissions have been received relating to any item advertised for consideration by a closed meeting of Orange City Council.

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

Recommendation

6.1 Compulsory Acquisition of Land - Construction of Roundabout

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 (a) personnel matters concerning particular individuals (other than councillors)..

6.2 Tender - Vertical Transport System

6.3 Tender - Detailed Design and Documentation of a New Inlet Works for Orange Sewage Treatment Plant

6.4 Acquisition of Land - 185 Shiralee Road Orange

6.5 Lease of 79 Kite Street Orange

6.6 Land Sale - Housing Plus

6.7 Request for Reduction of Footpath Hoarding Fees

6.8 Tender - Chiller replacement at the Civic Theatre