CITY OF RYDE ACTING GENERAL MANAGER’S REPORT NO. 19/07 ... · This is page no. 1 of the Acting General Manager’s Report No. 19/07, dated 12 October 2007, submitted to Council

CITY OF RYDE

ACTING GENERAL MANAGER’S REPORT NO. 19/07

Council Meeting – 16 OCTOBER 2007

CONTENTS Item Property/Subject Page

1 INVESTMENT REPORT – SEPTEMBER 2007.................................................... 1

2 COUNCIL’S INVESTMENT PORTFOLIO – Review by the Department of Local Government – (Circular 07-47) ............................................................... 18

3 COUNCILLOR WORKSHOPS............................................................................ 56

4 AUDIT COMMITTEE - Progress report ............................................................. 57

5 CITY OF RYDE – Local Strategy ....................................................................... 61

6 REPORTING OF ELECTRICITY, WATER AND FUEL CONSUMPTION ......... 72

7 REVIEW OF RESIDENT PARKING SCHEME................................................... 75

8 PLANT AND EQUIPMENT – Replacement of Street Sweeper, Plant No. 127........................................................................................................................ 86

9 NSROC TENDER 7/07 – Supply, Supply and Delivery and Supply Delivery and Laying of Asphaltic Concrete and Associated Works. ........... 89

PRECIS OF CORRESPONDENCE THERE ARE NO ITEMS OF CORRESPONDENCE.

NOTICES OF MOTION THERE ARE NO NOTICES OF MOTION.

NOTICES OF RESCISSION THERE ARE NO NOTICES OF RESCISSION.

This is page no. 1 of the Acting General Manager’s Report No. 19/07, dated 12 October 2007, submitted to Council on 16 October 2007. Acting General Manager Chairperson

ACTING GENERAL MANAGER’S REPORT NO.19/07

12 October 2007 The Mayor and Councillors ITEM 1 INVESTMENT REPORT – SEPTEMBER 2007 Report Summary This report provides details of Council’s performance against the benchmark for returns of its Investment portfolio for the month of September 2007, and the rolling 12 month period. Council’s return for September is as follows: Sept 2007 12 Months Council Return 7.67% 6.62% Benchmark 7.19% 6.54% Variance 0.48% 0.08% This report provides a commentary on Council’s investment performance and also details actions taken by Council Officers in managing the Investment Portfolio. Background The Chief Financial Officer as Council’s Responsible Accounting Officer is required to report to Council on a monthly basis on Council’s Investment Portfolio and to certify that the Investments are held in accordance with Council’s Investment Policy and Section 625 of the Local Government Act. All of Council’s investments comply with its policy and all legislative requirements. Report As reported to Council in both the July and August 2007 Investment reports, the reduction in funds held in managed funds to cash management/term deposit investments has been a positive initiative and contributed to the result for September 2007.

Acting General Manager’s Report No. 19/07 12 October 2007

This is page no. 2 of the General Manager’s Report No.19/07, dated 12 October 2007, submitted to Council on 16 October 2007. Acting General Manager Chairperson

ITEM 1 (continued) Key actions taken: • Close monitoring has continued of all Council’s CDO investments. No material

changes have occurred to the position from August 2007. • The Phoenix CPDO investment ($2M) was sold effective 5 October 2007 at a net

gain to Council of $47K or approximately 20% annualised. • A meeting was held with representatives of Grange Securities on 9 October 2007

to discuss the portfolio’s performance which again has slightly improved over the August 2007 result.

• Expressions of Interest (EOI) to establish an Independent Investment Panel close on Tuesday 16 October 2007.

• Preparation of information in respect to Council’s investment portfolio that is required to be supplied to the Department of Local Government is detailed in a separate report, Item 2 on this Agenda.

Investment Performance Commentary and Outlook Performance for the month of September was 7.67%, which has outperformed the UBSA Bank Bill benchmark of 7.19% by 0.48%, and has resulted in Council’s interest from investments being $540K for the month of September. Whilst this is an improvement over the month of July and August, there remains ongoing liquidity problems in the credit markets, and volatility is expected to remain in investment returns for a continuing period. However, if market conditions continue to stabilise it is expected that Council will meet its budget allocation for interest on investments for 2007/2008. Rolling 12 Month returns are 6.62%, or 0.08% above the 1 year UBSA Bank Bill Index. There are a number of investments that have returned their minimum coupon return of 2-3%. These investments pay a return after either 1 year, or upon maturity and are geared towards a higher return at the end of their life cycles. These investments are anticipated to meet targets. Council’s investment in the Focus Note, (Investment 18) which has exposure to the equity market via the BT Focus Share Fund, has benefited from the performance of the equities market in September and is currently showing a 12 month average return of 19.3%.



ITEM 1 (continued) Council’s investment portfolio (excluding the CPDO sale as reported) is as follows: Cash/Term Deposits $45.0M 46.1% FRNs $ 6.0M 6.1% CDOs $11.5M 11.7% CPDOs $ 1.0M 1.0% Managed Funds $11.3M 11.5% Other Financial Products $ 8.0M 8.2% Total Cash Investments $82.8M Property $15.1M 15.4%

Total Investment Portfolio $97.9M All of Council’s investment products are rated ‘A’ or higher, with the exception of the NSW Treasury Corporation investment. All investments comply with the Minister’s Order. Council’s direct investments (FRNs and CDOs) have continued to pay coupons as expected this month. None of the underlying entities in any of Council’s CDOs have experienced a default. Council’s Individually Managed Fund (IMP), managed by Grange Securities Limited has partially recovered in value by 1.38% ($60K of $4.4M) this month from the negative 6% ($320K) in July 2007. Credit spreads are slowly returning to normal, although interest rate spreads remain well above normal levels due to the continued concerns and volatility in the market as a result of the US sub-prime mortgage market. Equity markets traded at or above record highs towards the end of the month, as investors focussed on equity investments in preference to credit markets. Several major banks in the US and Europe have revealed lower than expected earnings (or losses) during the most recent quarter due to exposure to the sub prime market. In the US, Federal Bank chief Ben Bernanke slashed interest rates by 50 basis points (0.50%) in response to ongoing concerns and to improve liquidity levels in the market. The US dollar has weakened appreciably, with both the Australian dollar and the Euro trading at or near record highs against the US dollar. Concerns remain that the US economy as a whole is slowing. Domestically, the Reserve Bank of Australia announced on 3 October that it would leave interest rates unchanged for the present. If the September quarter shows a strong inflation figure, the risk of another local interest rate rise will increase. Local figures recently released indicate the Australian economy is in a quite robust shape.



ITEM 1 (continued) Investment Portfolio – September 2007

Issuer Investment NameInvestment

Rating

Invested at 30-Sep-07

$000's

Annualised Period

Return (%)

12 Month Average Return

on Current Investments (%)

% of Total Invested

Select Access Investments (no 2) Ltd

1. Forum 'AAA' Tranche AAA 1,500 8.02 7.95 1.77

Perennial Investment Partners 2. Perennial Cash Enhanced Fund AA 586 8.10 6.03 0.69

Westpac 3. Westpac 12_2013 AA- 1,000 7.31 7.04 1.18CBA 4. CBA 02_2014 AA- 1,000 7.35 7.02 1.18Thunderbird Investments plc 5. Balmoral AA AA 1,000 8.42 7.91 1.18CBA 6. Shield Series 21 AA 500 4.98 7.70 0.59ANZ 7. ANZ Subordinated AA- 2,001 7.39 6.93 2.36Merrill Lynch 8. Merrill Lynch & Co A+ 1,000 7.49 6.98 1.18Select Access Investments (no 2) Ltd

9. Titanium AAAAAA 2,000 7.79 7.39 2.36

Adelaide Bank 10. Adelaide Bank AAA Saver AAA 4,877 6.95 6.72 5.75

BlackRock Investment Management

11. Merrill Lynch - BlackRock Diversified Credit Fund A 537 2.95 6.00 0.63

Deutsche Bank 12. Aberdeen Income Fund AA 567 7.10 6.15 0.67

Perpetual Investment 13. Perpetual Credit Income 2 AA 495 7.88 4.31 0.58

Macquarie Bank 14. Macquarie Income Plus Fund A 559 5.07 6.08 0.66

Credit Suisse First 15. Aust Property Linked Note No1 A+ 1,000 2.01 2.00 1.18

Alpha Financial Products 16. FRN Alpha AA 1,000 9.37 9.16 1.18Helix Capital 17. OASIS AA 1,000 8.52 8.01 1.18Westpac 18. FOCUS Note AA 500 77.84* 19.30 0.59CBA 19. ELD Series 2 AA 500 3.01 3.00 0.59Qld Invest Corp 20. QIC Enh Cash AA 1,082 6.95 6.06 1.28UBS AG London 21. STIRM AA 500 2.52 2.53 0.59Westpac 22. Camelotfund AA 500 6.90 6.57 0.59Grange 23. Grange IMP A 4,402 18.17* -2.17 5.19AB Svensk Exportkredit 24. Global Protected

Property Note VII AA+ 1,000 0.00 0.00 1.18Script Securitisation Ltd 25. Constellation A 1,000 8.11 7.99 1.18NSW Treasury Corporation 26. TCorp MTGF UNRATED 3,047 8.31 5.00 3.59Longreach 27. Longreach CPWF AAA 2,000 2.01 2.00 2.36Credit Suisse First 28. Trident AA- 1,000 0.00 0.00 1.18C.L.E.A.R. plc 29. Palladin AA 2,000 7.85 7.70 2.36Rembrandt Australia Trust 30. Rembrandt AAA 1,000 8.74 8.63 1.18CBA 31. ELD Series 4 AA 500 3.01 3.00 0.59Obelisk Trust 2007-3 32. Covent Garden AA 2,000 7.86 7.86 2.36Macquarie Bank 33. Macquarie Treasury

Fund AAA 10,055 6.26 6.73 11.85BT Financial Group 34. BT Institutional

Managed Cash AAA 10,055 6.71 6.71 11.85Colonial First State 35. CFS Premium

Cash AAA 10,055 6.77 6.70 11.85Aphex Pacific Capital 36. PHOENIX CPDO AA 2,000 9.43 9.61 2.36ANZ 37. ANZ 60 Day Term

Deposit AA 10,000 7.07 7.07 11.79ANZ 38. ANZ 3 YEAR

SENIOR AA 1,000 7.46 7.46 1.18

TOTALS/WEIGHTED AVERAGES 84,818 7.67 5.91 100

Return including Matured/Traded InvestmentsWeighted Average Return for the Previous 12 Months (%) 7.67 6.62

Benchmark Return: UBSA 1 Year Bank Bill Index (%) 7.19 6.54Variance From Benchmark (%) 0.48 0.08

*Monthly returns when annualised can appear to exaggerate performance



ITEM 1 (continued) Investment Income Sources and Purposes for Investments

$000's as at 30 Sep 2007 $000'sThis Period 540 Externally Restricted - Section 94 18,054

Externally Restricted - Other 8,196Financial Year To Date 732 Unexpended Grants and Contributions 1,867Revised Budget Profile 933 Internally Restricted - Liability Reserves 8,033Variance from Budget - $ -201 Internally Restricted - Revenue Reserves 39,602

General Fund 9,066Total 84,818

Certificate of the Chief Finance Officer

I certify that as at the date of this report, the investments listed have been made and are held incompliance with Council's Investment Policy and applicable legislation.

Richard Nankivell Date Council’s Property Investment Portfolio At 31 September 2007, the following properties were held as part of Council’s Property Investment portfolio: • 2 Dickson Avenue, West Ryde • 1a Station St, West Ryde • 8 Chatham Road, West Ryde • 202 Rowe St, Eastwood (commercial) • 226 Victoria Rd, Gladesville (commercial) The Manager Buildings and Property is currently reviewing Council’s property portfolio and will be providing a report to Council in the future on property investment proposals as a result of the funds received from the sale of the stratum lot at the Civic Centre site. In undertaking this review, two (2) additional property holdings should be added to Council’s investment portfolio. These are: • West Ryde Car Park Site • Herring Road Overpass This adjustment has been made and is reflected in the revised estimated value of Council’s Investment property of $15.1M. Types of Investments: At Call refers to funds held at a financial institution, and can be recalled by Council either same day or on an overnight basis.



ITEM 1 (continued) A Floating Rate Note is a longer term investment issued by a financial institution with a variable interest rate. The adjustments to the interest rate are usually made quarterly, and are tied to a certain money market index such as the Bank Bill Swap Rate. A Floating Rate CDO or Collateralised Debt Obligation is an investment backed by a diversified pool of one or more classes of debt. These investments are for longer terms and offer a higher rate of interest. Credit ratings are assigned to these investments as detailed in the portfolio. A Constant Proportion Debt Obligation or CPDO is an investment in an index of debt securities, similar in theory to a CDO. The investment index is periodically rolled, whereby the Special Purpose Vehicle buys protection on the old index, and sells protection on the new index. Credit Rating Information Credit ratings are generally a statement as to an institutions credit quality. Ratings ranging from AAA to BBB- (long term) are considered investment grade. A general guide as to the meaning of each credit rating is as follows: AAA: the best quality companies, reliable and stable AA: quality companies, a bit higher risk than AAA A: economic situation can affect finance BBB: medium class companies, which are satisfactory at the moment BB: more prone to changes in the economy B: financial situation varies noticeably CCC: currently vulnerable and dependent on favourable economic conditions to meet

its commitments CC: highly vulnerable, very speculative bonds C: highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay

out on obligations D: has defaulted on obligations and Standards & Poors believes that it will generally

default on most or all obligations Council’s Investment Powers Council’s investment powers are regulated by Section 625 of the Local Government Act, which states: (1) A council may invest money that is not, for the time being, required by the council

for any other purpose. (2) Money may be invested only in a form of investment notified by order of the

Minister published in the Gazette.



ITEM 1 (continued) (3) An order of the Minister notifying a form of investment for the purposes of this

section must not be made without the approval of the Treasurer. (4) The acquisition, in accordance with section 358, of a controlling interest in a

corporation or an entity within the meaning of that section is not an investment for the purposes of this section.

Council’s investment policy requires that all investments are to be made in accordance with: • Local Government Act 1993 - Section 625 • Local Government Act 1993 - Order (of the Minister) dated 15 July 2005 • The Trustee Amendment (Discretionary Investments) Act 1997 – Sections 14A(2),

14C(1) & (2) • Local Government (Financial Management) Regulation 1993 • The Code of Accounting Practice and Financial Reporting • Investment Guidelines issued by the Department of Local Government Council’s Investment Committee which is made up of senior staff meets on a regular basis to review investment performance and to consider recommended investment opportunities. Overview of Investments A brief overview of all investments held by the City of Ryde is provided; 1. Forum (AAA) CDO with a portfolio of 142 investment grade corporate entities, paying 130bps

over 90 day BBSW. Matures 28 March 2008. No fees are payable by Council on this investment.

2. Perennial Cash Enhanced Fund (AA) This fund aims to provide a total return that exceeds the benchmark, UBSA Bank

Bill Index, over rolling three-year periods by 0.50% p.a. (before fees). These funds are at call. The management fee on this account is currently 0.28% p.a.

3. Westpac FRN (AA-) Floating Rate Note issued by Westpac. Pays 47 bps over 90 day BBSW. This

investment matures on 18 December 2013. No fees are payable by Council on this investment.



ITEM 1 (continued) 4. CBA FRN (AA-) Floating Rate Note issued by the CBA. Pays 43 bps over 90 day BBSW. This

investment matures on 10 February 2014. No fees are payable by Council on this investment.

5. Balmoral (AA) CDO with a portfolio of 3 AA rated OECD government bonds and 36 AAA rated

asset backed securities paying 130 bps over 90 day BBSW. This note expires on 4 March 2009. No fees are payable by Council on this investment.

6. CBA - Shield Capital Protected Series 21 (AAp) Council invested in the Shield Capital Protected Hedge Fund Note at the end of

March 2004. This is a medium to long term investment (3-7 years). As the name suggests, the capital of the investment is guaranteed by CBA on maturity of the note. The note is linked to the performance of a diversified fund of hedge funds, being Colonial First State Wholesale Global Diversified Strategies Fund. The target return at maturity is anticipated to be over 10% pa annualised. This is a volatile investment that has active market exposure. This investment matures 28 February 2011. No fees are payable by Council on this investment.

7. ANZ Subordinated (AA-) Floating Rate Note issued by the ANZ bank, paying 41 bps over 90 day BBSW.

This FRN matures on 21 May 2009. No fees are payable by Council on this investment.

8. Merrill Lynch (A+) Floating Rate Note issued by Merrill Lynch, paying 40bps over 90 day BBSW.

This FRN matures 9 March 2010. No fees are payable by Council on this investment.

9. Titanium (AAA) CDO with a portfolio of a minimum of 100 investment grade names, paying 80 bps

over 90 days BBSW. This note matures 14 December 2010. No fees are payable by Council on this investment.

10. Adelaide AAA Saver (AAA) At call account, currently paying 7.00%. No fees are payable by Council on this

investment.



ITEM 1 (continued) 11. Blackrock (formerly Merrill Lynch) Diversified Credit 2 (A) This Fund aims to generate returns in excess of the benchmark index (the UBS

Australia Bank Bill Index) by seeking opportunities in the broad universe of floating rate securities. The Fund aims to outperform the benchmark by 0.70% p.a. before fees over the medium term (3 years). These funds are at call. The management fee on this account is currently 0.15% p.a.

12. Aberdeen (nee Deutsche) Income Fund (AA) This fund aims to outperform the UBS Australian Bank Bill Index, before fees, over

rolling twelve-month periods. The Fund invests in Australian cash, fixed income securities, asset-backed securities, hybrid securities and structured debt issued by government, semi-government, and corporations. These funds are at call. The management fee on this account is currently 0.15% p.a.

13. Perpetual Credit Income 2 (AA) This managed fund aims to outperform the benchmark by 0.75% to 1.00% per

annum on a rolling one year basis. These funds are at call. The management fee on this account is currently 0.221% p.a.

14. Macquarie Income Plus Fund (A) This Managed Fund aims to outperform the UBS Australian Bank Bill Index over

the medium term by using an active credit based investment strategy of non-government and structured securities. These funds are at call. The management fee on this account is currently 0.308% p.a.

15. Australian Property Linked Note (Ap+) This is an Australian Property Linked Note with wide property exposure to a

number of property groups. This note is capital protected on maturity with recurring income of a fixed 2% p.a. coupon paid quarterly. It is anticipated that the return on maturity will be between 8-10% p.a. annualised. This investment matures 17 September 2010. No fees are payable by Council on this investment.

16. FRN Alpha (AA) This is a CDO containing 2 separate portfolios, a capital portfolio and an income

portfolio. The 2 portfolios are managed to maintain ratings stability. This note pays 250 bps above 180 day BBSW, and matures on 20 March 2012. No fees are payable by Council on this investment.



ITEM 1 (continued) 17. OASIS (AA)

This is a CDO that is actively managed by Société Générale. This CDO pays 140 bps over 90 day BBSW, and matures on 4 September 2014. No fees are payable by Council on this investment.

18. FOCUS Note (AAp)

This note commenced at the end of December 2006. This is a medium to long term investment (3-7 years). The capital of the investment is guaranteed by Westpac on maturity of the note. This note consists of a dynamically managed portfolio consisting of investments in the BT Focus Australian Share Fund, and aims to outperform the S&P/ASX 300 Accumulation Index by 5% over a 3 to 5 year horizon. This note has had an annualised return of 10% since inception, with short term returns anticipated to be volatile. This note also pays a biannual contingent coupon of 180 day Bank Bill swap rate (currently approximately 7.00%). Monthly returns, when annualised can appear to exaggerate performance. Maturity date of this investment is 20 December 2012. Performance of this investment benefited from record highs in the equities markets during September. Westpac receive a principal protection fee of 0.90 p.a., an upfront structuring and distribution fee of 2.50%. BT Financial Group receives a management fee of 0.60% p.a., and a performance fee of 15% of the amount that exceeds the S&P/ASX Accumulation index plus the management fee.

19. ELD 2 (AAp) This note provides Council with a variable return based on the performance of a

reference basket of stocks selected from the ASX 100. Minimum return is 3.00% p.a., and returns are capped at 13.50%. This note has a life of 3 years (maturing Dec 2009), with the actual return for each year to be calculated in December. The return at the end of September was 9.62%. No fees are payable by Council on this investment.

20. QIC Enhanced Cash (AA) The Fund targets a return of at least 0.40% p.a. above benchmark by diversifying

funds across a number of interest rate and credit strategies. These funds are at call. The management fee on this account is currently 0.275% p.a.



ITEM 1 (continued) 21. STIRM (AAp) This investment is linked to the performance of a short term interest rate yield

enhancement strategy. Returns are based on a fixed coupon payable quarterly and a floating coupon based on the performance with additional return on maturity as capital gain. The expected return over the life of this note (maturing Feb 2012) is anticipated to be between 8% and 10%. Longreach receive an upfront fee of 0.50% of the note value, plus 0.66% p.a. paid annually out of the notes NAV. UBS receive a capital protection fee of 0.50% p.a., and a management fee of 0.35% p.a. An advisory fee of 0.20% is paid to Fortinbras plus 10% of returns in excess of BBSW + 1.00%.

22. Camelotfund (AAp) This investment was made at the end of February 2007 in a fund that provides

opportunity to diversify into a foreign exchange strategy with low correlation to other products and asset classes. Short term (i.e. monthly) returns on this note will be volatile. This note has a 5 year maturity. The SPV set up by Westpac receives a distribution fee of 2% of the note value, and the manager receives a management fee of 1% p.a., and a performance fee of 15% of the amount above the 180 day BBSW. Westpac receives a capital protection fee of 1% p.a. times NAV.

23. Grange IMP (Min A Rating) This is a portfolio of FRNs, CDOs and Bank issued securities managed by Grange

Securities on Council’s behalf. As some liquidity (albeit limited) returned to the markets in August, the market value of this portfolio increased. Council originally opened this portfolio with $5M, and has since withdrawn $500K, leaving a total balance of $4.5M held. This has partially recovered in value by 1.38% ($60K of $4.4M) this month from the negative 6.6% ($340K) in July 2007, but is still trading at $100K below face value. The management fee on this account is currently 0.10% p.a.

24. Global Protected Property Note VII (AAp+) This note was purchased in March 2007. It is a capital guaranteed investment

which provides Council with a return on maturity based on the performance of three international property funds. It matures 20 September 2011. It is anticipated that performance at the commencement of this investment will be low, with returns geared heavily towards the end life of the investment. This investment’s performance has been impacted upon by the rapidly rising Australian dollar. This note was invested in due to a swap out of the earlier series VI note, in which Council realised a profit of $237K capital profit after 9 months. Capital protection fee of 2.5% to Svensk Export Kredit.



ITEM 1 (continued) 25. Constellation (A) This is a CDO that is paying 130 bps above 90 day bps, and has a legal maturity of

20 March 2012, but may be called by the issuer as at March 2011. This investment was previously downgraded from AA to A as advised in the August Investment report and is being closely monitored. No fees are payable by Council on this investment.

26. Treasury Corporation Medium Term Growth Fund (Unrated) The investment in the medium term growth fund was made in May 2007. This is a

fund managed by the NSW Treasury Corporation which invests in a range of Australian shares & international shares (30%), and bonds and cash (70%). This is a growth oriented product, and as such, returns may appear quite volatile when annualised over short time periods. These funds are at call. The management fee on this account is currently 0.24% p.a.

27. Longreach Capital Protected Wholesale Fund (AAAp) This investment is in property, infrastructure and utilities and was made in May

2007. The Fund Manager’s expectation is a target range of 8% to 10% pa over the life of the investment, which matures in May 2012. There is a fee of 0.95% pa payable of the capital protection amount, plus a 3% fee payable semi-annually of the capital protection amount, plus a performance fee of 25% of the amount above UBS Bank Bill Index + 4%.

28. Trident (AAp-) This is a 4 year capital protected investment made by Council at the end of May

2007 with exposure to a basket of bond funds, with a coupon paid 6 monthly of 50% of the positive performance of the funds, with the other 50% being reinvested. There is a distribution fee charged upfront of 2%, plus a principal protection fee of 0.95% p.a. of the portfolio value, plus a leverage charge of USD 30 day LIBOR +0.50% p.a. on any leverage amount.

29. Palladin (AA) This is an actively managed CDO paying 100 bps over 90 day BBSW, and

matures 20 June 2010. No fees are payable by Council on this investment. 30. Rembrandt (AAA) This is a Constant Proportion Debt Obligation (CPDO), with exposure to credit

spreads in the iTraxx and DJ Investment Grade Indices, paying 190 bps over 90 day BBSW. This portfolio is rebalanced and repriced every 6 months. This note matures on 2 November 2016. There is an arrangement fee of 1% on this investment, plus 29 bps p.a. of the NAV.



ITEM 1 (continued) 31. Equity Linked Deposit Series 4 (AAp) This note is almost identical to the structure of the ELD 2 (No 19) above, except

that returns are based on the performance of a reference basket of resource stocks. Minimum return is 3.00% pa, and returns are capped at 11.50%. This note has a life of 3 years (maturing June 2010), with the actual return for each year to be calculated in December. This investment commenced in early June 2007. No fees are payable by Council on this investment.

32. Covent Garden (AA) This is a managed CDO paying 120 bps over 90 day BBSW. This note matures in

Oct 2012. No fees are payable by Council on this investment. 33. Macquarie Treasury Fund (AAA) Cash Management Trust, which seeks to return the bank bill index by investing in

cash and short term fixed interest securities issued by banks and corporations. These funds are at call. The management fee on this account is currently 0.211% p.a.

34. BT Institutional Managed Cash (AAA) Cash Management Trust, which seeks to return the bank bill index by investing in


35. CFS Premium Cash (AAA) Cash Management Trust, which seeks to return the RBA cash rate by investing in


36. Phoenix CPDO (AA) This is a Constant Proportion Debt Obligation (CPDO), with exposure to credit

spreads in the iTraxx and DJ Investment Grade Indices, currently paying 283 bps over 90 day BBSW. This portfolio is rebalanced and repriced every 6 months. This note matures on 14 August 2017. As a result of monitoring of investments, and favourable pricing, this note was sold for a $47K profit on 5 October 2007. There is an upfront issuance fee of the principal amount of the notes of 0.30%, plus a running fee of 0.50% p.a. of the principal amount of the notes, payable quarterly.



ITEM 1 (continued)

* FRN's not revalued to market on a monthly basis

4.0

5.0

6.0

7.0

8.0

Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07Month

YTD

Wei

ghte

d A

vera

ge R

etur

n (%

)

12 Mth Return Benchmark

4.0

5.0

6.0

7.0

8.0

Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07

Month

YTD

Wei

ghte

d A

vera

ge R

etur

n (%

)

Managed FundsBenchmark

4.0

5.0

6.0

7.0

8.0

Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07

Month

YTD

Wei

gted

Ave

rage

Ret

urn

(%)

Direct InvestmentsBenchmark



ITEM 1 (continued)

>365 days <365 daysFRN's $6.0M $0MCDO's $10.0M $1.50M

CPDO's $3.0M $0MOther $8.0M $0M

Mgd Funds/Cash $0M $56.3M

Less Than 180 Days

180 Days to 365 days

More Than 365 Days

0 10,000 20,000 30,000 40,000 50,000 60,000

Managed Cash Fund

Direct Investment

Managed Cash Plus

Fund

Term Deposit

0% 10% 20% 30% 40% 50%0% 5% 10% 15%

Select Access Investments (no 2) LtdPerennial Investment Partners

WestpacCBA

Thunderbird Investments plcANZ

Merrill LynchAdelaide Bank

BlackRock Investment ManagementDeutsche Bank

Perpetual InvestmentMacquarie Bank

Credit Suisse First Alpha Financial Products

Helix CapitalQld Invest Corp

UBS AG LondonGrange

AB Svensk ExportkreditScript Securitisation Ltd

NSW Treasury CorporationLongreach

C.L.E.A.R. plcRembrandt Australia Trust

Obelisk Trust 2007-3BT Financial GroupColonial First State

Aphex Pacific Capital

Portfolio % With Institution (Maximum Permitted: 10%)

0% 10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

AAA to AA-

A+ to A

A- to BBB

Low/Unrated

Permitted Actual



ITEM 1 (continued) Management Plan Budget / Linkages This project forms part of the 2007/2008 Operational Budget for the Finance Unit. Relationship to Key Outcome Areas People Interest on Investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for People. Assets Interest on Investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Assets. Environment Interest on Investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Environment. Governance Interest on Investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Governance. This project meets the following key outcomes for Governance (set out on page 39 of the Management Plan 2007-2010): • Compliance with all legislative requirements and statutory obligations Consultation – Internal and External Investment issuers Investment advisers Policy Implications The recommendation is consistent with Section 625 of the Local Government Act, which deals with the investment of surplus funds by Council’s. Critical Dates The Chief Financial Officer as Council’s Responsible Accounting Officer is required to report to Council on a monthly basis on Council’s Investment Portfolio and to certify that the Investments are held in accordance with Council’s Investment Policy and Section 625 of the Local Government Act. .



ITEM 1 (continued) Financial Impact The high levels of volatility that commenced in July due to the US sub prime mortgage market concerns continued in August however credit markets were considerably more stable in September though still not at the levels seen in the first half of the year. Council’s investment portfolio is trending in line with the global investment markets, and whilst returns are currently below budgeted figures, these have improved for both August and September over the July results. This is being closely monitored and will be addressed in Council’s quarterly budget reviews. Other Options Not applicable. RECOMMENDATION: That the information contained in the Investment Report – September 2007, be received and noted.



ITEM 2 COUNCIL’S INVESTMENT PORTFOLIO – Review by the Department of Local Government – (Circular 07-47) FILE: COR2007/1926 Report Summary This report provides details of Council’s submission in respect of its Investment Portfolio to the Department of Local Government in accordance with Circular No. 07-47. This submission is to be lodged with the Department on Wednesday 17 October 2007. Council’s submission to the Department provides all the required information requested by the Department and is supplemented with additional documentation that is relevant to Council’s submission. Background The Department of Local Government issued Circular 07-47 on 26 September 2007 advising that a review is being undertaken as a result of the recent concerns relating to the recent sub prime mortgage market decline in the USA and the exposure of some Councils to possible losses through investments in structured financial products ATTACHMENT 1 The review’s main focus is to clarify the exposure of NSW Councils to any losses, particularly through Collaterised Debt Obligations (CDOs) and similar products. The review will be conducted under the direction of a Steering Committee, chaired by the Department and including members from the Department of the Premier and Cabinet and NSW Treasury. The required information is due to the completed and returned to the Department by Wednesday 17 October 2007. Report It is proposed that Council’s submission consist of the following information: 1. Summary of completed worksheet as at 30 June 2007 – as requested by the

Department of Local Government. 2. Summary of Investment Reports from July to September 2007. 3. Summary of Financial Position as at 30 June 2007 and Key Financial Indicators. 4. Summary of Council’s Investment Portfolio. 1. Summary at 30 June 2007 The completed worksheet as at 30 June 2007 is ATTACHMENT 2.



ITEM 2 (continued) The worksheet details the investments held at 30 June 2007 which is reconciled to Council’s Annual Financial Report. It then provides the comparison between the purchase details, valuation details as at 30 June 2007 and as at 30 September 2007. An explanatory note is provided in the worksheet to provide details on the valuations, including changes in valuations. These figures also reflect additions / withdrawals of investments made between 30 June 2007 and 30 September 2007. In summary the key points are: • Changes in value of managed funds reflect transfer of funds to cash investments in

August 2007. • FRN investments have maintained value during this period. • CDO, CPDO and Capital Protected investments, whilst providing $321,000 in

coupon payments for the period July – September 2007 show a net reduction of $1.377 million in current market value since 30 June 2007. This is a result of the global impact on financial markets caused by the US sub-prime mortgage market. This movement in current market value, if traded, represents 2.26% of Council’s Investment Portfolio as at 30 June 2007 and 1.41% as at 30 September 2007. As previously reported, it is Council’s intentions to hold these investments to maturity.

It also represents 0.08% of Council’s gross book value of Infrastructure, Property, Plant and Equipment Assets as at 30 June 2007.

While current market valuations in CDO / CPDO investments reflect the lack of liquidity in the market, it is important to stress that Council purchased these investments with the intention of holding to maturity. In accordance with this approach the value of CDO / CPDO investments are shown and reported in Council’s Financial Report at face value. As detailed in Council’s Investment Policy, the maximum exposure to these products has been set at 15%, with the September Investment Report, detailing Council’s exposure to these products is currently at 12.7% of the portfolio.

As reported to Council previously confirmations have been received from issuers that Council has no investment with direct exposure to the US sub-prime mortgage market. However, a number of Council’s investments have indirectly been affected by the global impact of financial markets that has resulted in a lack of liquidity across all markets.



ITEM 2 (continued)

Whilst the money markets have recovered in September, the market for these products has been slower to respond and will require a longer period to recover. There have been no defaults from any of the underlying securities in Council’s investments and all CDO /CPDO investments are backed by corporate securities. The majority of CDOs are rated by Standard and Poor’s as AA or AAA and all coupon payments from these products have continued to be paid.

• The worksheet includes details of all Managed Fund investments. As Council is aware, action has been taken to establish an independent Investment Panel with Expressions of Interest called and due to close on 16 October 2007. ATTACHMENT 3. Council at its meeting of 25 September 2007 also revised its Investment Policy which is ATTACHMENT 4. This review of the policy strengthened the ratings required for new CDO investments and also defined the thresholds for each product type within Council’s portfolio. It should be noted that Council’s Investment Policy has been based and formulated on the LGMA NSW Local Government Investments Best Practice Guide. 2. Summary of Investment Report – July to September 2007. The submission will include each of the Investment Reports for the months of July, August and September 2007. These reports demonstrate how Council has reported on its Investment portfolio in this period disclosing all relevant details in respect of its portfolio. It will also include details of the Workshop provided to Councillors on 28 August 2007 when presentations were made from both the ANZ Bank and Grange Securities Limited. Key points from these reports have been: • The negative returns from Council’s portfolio in July 2007 was 0.67% below the

UBSA Bank Bill index. This equated to a 0.2% reduction of Council’s Investment Portfolio.

• Returns have steadily improved through August and September, with the

September report showing a return of 7.67%, 0.48% above the benchmark.



ITEM 2 (continued) • Reports reinforced Council’s compliance with all legislative requirements including

the Minister’s Order, Council’s Investment Policy and the Code of Accounting practice and guidelines issued by the Department of Local Government.

• The July report highlighted Council’s performance over the years 2001 -2007,

resulting in substantial returns for Council with cumulative returns for the period totalling $15.7 million. Over the period Council has outperformed the benchmark by an average of 0.4%, representing approximately $1 million.

• The July report detailed the receipt of the funds from the stratum lot sale of

Council’s Civic Centre site and the transfer of investments from managed funds to cash investments. This was to secure and provide certainty of Council returns. This decision has been reinforced in the result achieved for September with the average return for Managed funds being approximately 6.2% and cash investments being an average of 6.6%.

• The reports reinforced the balance and diversity of Council’s Investment Portfolio,

consistent with Council’s Investment Policy. Currently over 45% of investments held are in cash investments.

• The reports have highlighted the volatility in the global investment markets, giving

examples of losses experienced in the Australian Stock Market of between 12 – 20% with similar experiences worldwide.

• At the Councillor Workshop on 28 August 2007 on Investments, the following

information was provided: o Summary of comparison of All Ordinary Index to Dow Jones Index –

May/August 2007 o Summary of Council’s Investment performance. Key points highlighted:

Council’s Investment portfolio is compliant to all legislative requirements including the Minister’s Investment Order and Council’s Investment Policy.

Council’s advice on investments comes from various sources including Grove Research & Advisory, Grange Securities, and all major banks

Described Council’s governance framework for Council’s investment decisions that has included the formation of an Investment Committee

Monthly Investment reports to Council. This report has been regularly reviewed and enhanced following feedback and resolutions by Council.

Initiated an independent review of investments, excluding the Grange Securities IMP Investment in response to issues related to the US sub-prime mortgage market. RIM Securities advice confirmed that Council’s investments were compliant to both the Minister’s Order and Council’s policy.



ITEM 2 (continued) Presentation explained return for the last 12 months was 5.8% or

0.67% below benchmark. Confirmed all interest from investments was paid in July. Confirmed actions taken in respect of requiring Investment Managers /

Issuers to confirm level of exposure to sub-prime mortgage market. Received separate presentations from Mr Charles Evans and Mr Nick

Fyffe from the ANZ bank and Mr David Rosenbaum from Grange Securities Limited. The ANZ presentation provided an overview on the current market volatility and projections for the period ahead. Mr Rosenbaum provided Councillors with an update on the performance of the Grange IMP Investment.

Outlined proposed actions: • Continue to monitor daily. • Continue to liaise and discuss with Investment advisers to confirm

status and latest performance. • Call Expressions of Interest to establish an Independent

Investment Panel. • Continue to review portfolio to address underperforming

investments and risk exposure. • Complete review of Investment Policy and liaise with Investment

Panel and Department of Local Government in this process. The reports have reinforced that in respect of Council’s direct

investments, i.e. Floating Rate Notes (FRNs) and CDOs, they have continued to pay coupons, with no defaults being experienced in underlying securities. The reports have indicated that these types of investments are medium to long term investments and are generally held to maturity. The returns from Council’s direct investments have generally outperformed all other investments over the last two (2) to three (3) years.

The reports have indicated the fluctuation in managed funds and as they have been valued on a mark to market basis and with the sharp correction in credit markets, this resulted in a negative return on Council’s investments in July 2007.

The July report highlighted that Council’s investment held with Grange Securities Limited had decreased by 6% or $320,000.

At the Council meeting of 28 August 2007, a separate report was provided to Council on Collateralised Debt Obligations (CDOs). This report reinforced the following points: o All Council’s investments complied with the Ministers Order, all

legislative requirements and Council’s Investment Policy. o Provided a background and explanation on CDOs and provided a

status of CDOs currently held by Council.



ITEM 2 (continued) o Highlighted the key actions taken in respect of Council’s

Investment Portfolio. The September Investment Report shows Council has realised a 7.67%

return which is 0.48% above the benchmark. It also shows the rolling 12 month return has been 6.62% being 0.08% over the benchmark.

3. Summary of Financial Position as at 30 June 2007 and Key Financial Indicators

As reported to Council at its meeting of 25 September 2007, Council’s 2006/07 result is regarded as sound with improving indicators. A copy of Council’s Income Statement and Balance Sheet is ATTACHMENT 5. The Auditors Certificate when received will also be included in Council’s submission. Key result areas from the 2006/07 financial report are as follows: Key Result Area 2006/07 Result 1.Working Capital

Increased to $3.4 million from Management Plan forecast of $2.847 million.

2. Operating Result Before Capital

Increased from $1.64 million in 2005/06 to $6.764 million in 2006/07.

3. Unrestricted Current Ratio

Council's ratio is 1.7: 1 and means for every $1 of current liabilities, there is $1.70 of Working Capital to satisfy obligations.

4. Debt Service Ratio

Council's ratio is 2.6% and has been steadily decreasing over the last 5 years.

5. Rates & Annual Charges Outstanding

Council has maintained a strong recovery rate with 2.5% outstanding rates and annual charges as at 30 June 2007.

6.. Capital Works Program

For the 2006/07 year, Council delivered a $23.6 million capital works program with major projects including the restoration of Brush Farm House ($2.5m) Town Centre Upgrades ($1.2m) Roadworks ($3.5m) Catchments ($2m) Parks ($2m) and Ryde Aquatic Leisure Centre (RALC ($0.9m)



ITEM 2 (continued) 7. Key Statistics Gross Book Value of Council’s Assets

$1.92 billion

Value of Investments $60.939 million

Interest Bearing Liabilities (Loans outstanding)

$7.376 million

Total Income $84.455 million Total Operating Expenditure $67.3 million

To further reinforce the 2006/07 result, benchmarking the City of Ryde to other Category 3 Councils for 2005/06 from a sample of key financial indicators shows the following:

KPI Category 3 Average

City of Ryde

Average Residential Rate $651.71 $545.73 Lowest Outstanding Rates & Annual Charges 3.30% 2.59% 3rd lowest Staff Costs / Total Operating Expenses 40.96% 37.40% Lowest Capital Expenditure Ratio 0.73 1.26 3rd highest Debt Service Ratio 2.61% 3.16% 7th lowest Staff FTE 581.43 475 5th lowest Source - Draft DLG Comparative Information 2005/06 14 Category 3 Councils

The above results and benchmarking analysis provides an overview of Council’s financial position and confirms the prudent and responsible approach taken by Council in its financial management of the City. The other key aspect to note when assessing Council’s financial position is its long term position, having regard to Council’s adopted Long term Financial Strategy. This Strategy takes into full consideration all of Council’s infrastructure and the cost to renew and maintain it’s infrastructure to an acceptable standard. The City of Ryde owns $2billion of essential infrastructure (roads, drains, parks, libraries etc) and needs to source an extra $4million per annum to invest in these assets so they continue to be maintained in a satisfactory condition for future generations. This financial challenge is something the Council is endeavoring to resolve.



ITEM 2 (continued) In the 2007/2010 Management Plan, Council is projecting to deliver a $38.9 million Capital Works Program that is significantly targeted at addressing Council’s infrastructure. 4. Summary of Council’s Investment Portfolio A summary of Council’s Investment Portfolio as at 30 September 2007 is as follows:

Cash/Term Deposits $45.0M 46.1% FRNs $ 6.0M 6.1%

CDOs $11.5M 11.7% CPDOs $ 1.0M 1.0% Managed Funds $11.3M 11.5% Other Financial Products $ 8.0M 8.2% Total Cash Investments $82.8M

Property $15.1M 15.4% Total Investment Portfolio $97.9M

Summary This report addresses the information required to be submitted by the Department of Local Government in respect of the Department’s review of Council’s investments. The report also includes other relevant information and supporting documents that will supplement Council’s submission to the Department. In respect of Council’s Investment Portfolio the following points are made: • Council’s Investment Portfolio is compliant to all legislative requirements including

the Minister’s Order and Council’s Investment Policy. • All Council’s investments are rated at A or higher with the exception of the NSW

Treasury Corporation Investment. • Council’s portfolio is a balanced, diversified portfolio that is consistent with

Council’s Policy. • The spread of investment risk over the various products within Council’s portfolio is

believed prudent and consistent with professional investment advice. • Council’s portfolio has consistently out performed the UBSA Bank Bill Index by

approximately 0.4% each year. • In respect of the recent global volatility in world markets, as reported this has

affected Council’s investment return resulting in a negative 0.67% return for July. This impact has been experienced in all markets and has affected global investment returns. Through the months of August and September, markets have slowly stabilised however the volatility and lack of liquidity in the market is still prevalent. Council’s result for September is 7.67%, 0.48% above benchmark.



ITEM 2 (continued) • Although continuing to pay coupon payments totaling $321,000 for the period July-

September 2007, Council’s CDO, CPDO Investments have had their current market valuation impacted by this volatility. However these investments are seen as mid to long term investments, generally with investment terms between 3-7 years and to be held to maturity. In accordance with this practice, Council has reported these investments at face value. This complies with the Australian accounting standards.

• There have been no defaults of any of the underlying securities of Council’s investments.

• The other supporting documentation provided in this report and to be included in Council’s submission demonstrates Council’s financial position as at 30 June 2007 and how the City of Ryde’s position compares to the average group 3 category of Councils, as provided by the Department of Local Government as at 30 June 2006.

Management Plan Budget / Linkages This project forms part of the 2007/08 Operational Budget for the Finance Unit. Relationship to Key Outcome Areas People Interest on Investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for People. Assets Interest on Investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Assets. Environment Interest on Investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Environment. Governance Interest on Investments represents a significant source of Council’s income and contributes to the funding of a range of services and initiatives in the key outcomes for Governance. This project meets the following key outcomes for Governance (set out on page 39 of the Management Plan 2007-2010): • Compliance with all legislative requirements and statutory obligations



ITEM 2 (continued) Consultation – Internal & External • Finance Unit • Investment issuers • Department of Local Government • NSW Treasury Policy Implications A further review of Council’s Investment Policy will be undertaken once the independent Investment Panel is established, which will include liaising with the Department of Local Government. Critical Dates The DLG Investment Review worksheet plus associated documentation is due to be submitted to the Department by 17 October 2007. Council’s submission will be submitted in compliance with this timeframe. Financial Impact Council’s officers continue to monitor and review Council’s Investment Portfolio on a daily basis to minimize risk and take appropriate action as required. Council’s intention is to hold it’s CDO, CPDO and Capital Protected products to maturity and not to incur any capital loss. The performance of Council’s Investment Portfolio is reported to Council on a monthly basis and will be further addressed at each quarterly review of the Management Plan. It is also proposed that a review of Council’s Investment Policy will be undertaken and advice provided to Council from the Investment Panel when formed. This review will also be undertaken in liaison with the Department of Local Government. Other Options Not applicable. RECOMMENDATION: That Council note and endorse the details to be included in its submission to the Department of Local Government in respect of Council’s Investment Portfolio in accordance with the Department’s Circular No. 07/47.



ITEM 2 (continued) ATTACHMENT 1




















































































ITEM 3 COUNCILLOR WORKSHOPS In accordance with Council's resolution of 26 June 2001, I wish to report on the Councillor Workshops held since the previous Council meeting. Date: 9 October 2007, 6pm – 6.30pm Subject: Management Plan 2008/11 - Workshop Schedule and

Introduction Present: The Mayor, Councillor I J Petch (Chairperson) and Councillors

T P McCosker, C M Netterfield, T W Perram, T D A Ryan, V J Tagg, E M Wilde OAM and S Yedelian.

Leave of Absence: Councillors G O’Donnell and M Melhem. Staff Present: Acting General Manager, Group Manager – Community Life,

Group Manager – Environment & Planning, Group Manager – Corporate Services, Chief Financial Officer, Corporate Planning Coordinator and Media & Community Relations Officer.

Summary: The workshop outlined the proposed timeframe and deliverables

for the 2008-2011 Management Plan. RECOMMENDATION: That the information be received and noted.



ITEM 4 AUDIT COMMITTEE - Progress report File No. COR2006/2067 Report Summary The report provides Council with a report on the progress of the Audit Committee against its main objectives. Background At its meeting on 27 June 2006, Council adopted the terms of reference for the establishment of an Audit Committee and an Internal Audit function at the City Of Ryde. Included in the terms of reference was the requirement for the Audit Committee to provide six monthly reporting on progress against the main objectives of the Audit Committee. It was further resolved that the Audit Committee report any major breaches of Internal control detected to Council. Report The Audit Committee held its inaugural meeting on 24 August 2006. Since this meeting, the Committee has met on another three occasions. During this period the major focus of the Committee and the Internal Audit function has been on the completion of a detailed risk assessment and evaluation and the formulation of an Internal Audit plan for the 2007/2008 financial year and beyond. The main objectives of the Audit Committee and the progress made against these are as follows: 1. To maximize the effectiveness of the Internal And External Audit functions

In conducting the Internal Audit planning exercises, Councils External Auditors were consulted as to the level and extent of their testing of key controls and processes within the City Of Ryde. This was done to avoid a duplication of effort between the Internal and External Audit functions.

2. To endorse, review and monitor the outcome of the Annual Audit plan

The focus of the Audit Committee and the Internal Audit function has been in compiling an Audit plan for the 2007/08 and 2008/09 financial years. The Internal Audit plan for the 2007/08 and 2008/09 financial years has been endorsed by the Committee following an extensive risk assessment and evaluation process that involved the whole of Council. The key areas of the audit plan for the 2007/2008 year are as follows: • Investigations and or adhoc Internal Audit reviews as directed by the Audit

Committee or the General Manager



ITEM 4 (continued)

• Parking Meters – review of supporting systems setup and review of contract administration

• Ryde Aquatic Leisure Centre – internal control review • Development Assessments – review of compliance with internal and external

requirements • Review of contract administration procedures across Council, compliance

review of selected contracts • Recurrent testing of internal controls including compliance with procurement

policies, payroll, facility bookings, general ledger reconciliations, cashier and petty cash floats

The other focus of the Internal Audit function was to progress the Interim Internal Audit plan for December 2006 to June 2007. This has been completed.

3. To maximize the professional credibility of the City Of Ryde through the

promotion of ethical drivers and standards This objective has been achieved through the following: • The establishment and promotion of Councils Audit Committee and Internal

Audit function • Use of Councils intranet site for the promotion of the Audit committee and

Council’s procurement framework • Improvements in the levels of documentation relating to procurement

activities 4. The facilitation and promotion of sound governance procedures throughout

the City Of Ryde

This objective has been achieved through the following: • The promotion of Councils Audit Committee and Internal Audit function to

staff at the City Of Ryde • The conduct and compilation of the organization wide risk assessment

resulting in the identification of key risks for Internal Audit focus • The involvement of the Manager Procurement and Auditing Services as

Probity Auditor for key/major projects • The continuing promotion of Council’s policy and procedures

5. To assist Council Management in the effective discharge of its responsibilities in relation to: • Internal Control • Financial reporting • Risk Assessment • Compliance with laws and regulations



ITEM 4 (continued) Input by the Internal Audit function in the review of Internal Controls and Financial reporting has been limited as the focus has been on planning activities. An organization wide risk assessment has been compiled. This involved liaison with Council Management in all service units across Council and the identification and ranking of risks areas. This process was then reviewed and potential Audit tasks formulated into an Internal Audit plan. The Audit Committee was also asked to report on any major breaches of Internal Control detected. The Audit Committee reports that no major breaches of internal Control have been detected to date. Management Plan Budget / Linkages Relationship to Key Outcome Areas People This matter has no direct relationship to this key outcome area. Assets This matter has no direct relationship to this key outcome area. Environment This matter has no direct relationship to this key outcome area. Governance This project meets the following key outcomes for Governance (set out on page 39-41 of the Management Plan 2007-2010): • Compliance with all legislative requirements and statutory obligations. The key outcomes for governance are incorporated into the objectives of the Audit committee. These objectives and the progress of the Audit Committee towards the achievement of the objectives is outlined in the main body of this report Consultation – Internal and External Internal Consultation included:- • Audit Committee members and advisers External consultation included:- • Not Applicable Policy Implications The recommendation is consistent with the terms of reference for the Audit Committee adopted by Council at its meeting 27 June 2006.



ITEM 4 (continued) Critical Dates There are no critical dates or deadlines to be met. Financial Impact Adoption of the recommendation outlined in this report will have no financial impact. Other Options Not applicable. RECOMMENDATION: That the report on the Audit Committee Progress, be received and noted.



ITEM 5 CITY OF RYDE – Local Strategy File No. COR2007/2022 Report Summary The City of Ryde is required by the Department of Planning to prepare a local land use planning strategy. This strategy, the City of Ryde Local Strategy, will be prepared from eight background studies (sub-strategies): Housing, Employment, Centres and Corridors, Environment, Parks (Open Space), Transport, Community and Culture and Design Quality. The City of Ryde Local Strategy will provide the basis from which to prepare a City wide comprehensive LEP. The preparation of this comprehensive LEP is a requirement of the department of Planning. This report recommends that the proposed City of Ryde Local Strategy: • be prepared as outlined in this Report; and • be funded in to the amount of $710,800, with $310,000 being provided in the

2007/08 financial year. Background The City of Ryde Local Strategy is currently being prepared in the context of recent planning reforms undertaken by the Department of Planning. The planning reforms include the release of the Metropolitan Strategy and the standard instrument local environmental plan (the LEP template). The Metropolitan Strategy is the NSW Government’s long term plan to maintain Sydney’s role in the global economy and to plan for growth and change. It is a series of ongoing decisions, actions, plans and projects which plans to the year 2031. A key component of the Metropolitan Strategy is the document City of Cities. A Plan for Sydney’s Future. The document has seven subject areas:

A Economy and Employment, B Centres and Corridors, C Housing, D Transport E Environment and Resources, F Parks and Public Places, and G Implementation and Governance.

The Metropolitan Strategy divides Sydney into sub regions. The City of Ryde is located within the Inner North Subregion together with Hunters Hill, Willoughby, Lane Cove, North Sydney and Mosman Councils.



ITEM 5 (continued) The Department of Planning released the Inner North Draft Subregional Strategy in July 2007. Key directions of the Draft Sub regional Strategy include: • strengthening the employment role of the global economic corridor from North

Sydney to Macquarie Park; • improving housing choice and creating liveable and sustainable communities; • encouraging public transport use; • protecting and promoting the Subregion's harbour and bush land setting; and • supporting the Subregion's knowledge assets such as Macquarie University. The Draft Subregional Strategy also set a dwelling target for the City of Ryde of 12,000 and an employment target of 21,000. Council’s submission on the Inner North Draft Subregional Strategy was reported to Council on 18 September 2007. Report The City of Ryde Local Strategy will be a planning strategy for the City of Ryde which will establish the planning direction for the City up to 2031, and provide a basis for the preparation of a new comprehensive local environmental plan. The City of Ryde Local Strategy will plan for the years to 2031 in 2 stages: Stage 1 - 2010 to 2021, Stage 2 – 2021 to 2031. It is intended to have an initial review of the strategy in 2015. The City of Ryde Local Strategy will be consistent with the City of Ryde’s City Vision. The City of Ryde Local Strategy will implement the relevant objectives and actions of the Metropolitan Strategy and of the Inner-North Subregional Plan. The City of Ryde Local Strategy will also: • articulate a vision for land use planning in the whole of the City of Ryde; • provide a single mechanism that coordinates and focuses Council’s planning

activities; • establish strategic priorities and provide for growth in population (and a

corresponding growth in dwelling numbers) and employment; • provide for protection of the environment; • demonstrate Council’s commitment to sustainability, well designed places, and

economic and social benefits; • recommend zoning and permissible land uses; • recommend local planning provisions for a comprehensive City of Ryde local

environmental plan; • meet the State Government planning targets for the number of dwellings and

employment opportunities;



ITEM 5 (continued) • recommend practical and achievable implementation actions; • incorporate appropriate monitoring mechanisms; and • help to bring about ecologically sustainable development The City of Ryde applied to the Department of Planning for funding to assist in the preparation of a comprehensive LEP and received funding of $150,000 on the basis that the development of a comprehensive LEP would occur in the following 3 stages:

Stage 1 a consolidating LEP, Stage 2 a local strategy to be used for the preparation of a comprehensive

LEP, Stage 3 a comprehensive LEP for the City of Ryde.

A memorandum of understanding (MOU) has been signed with the Department. The MOU sets out objectives, including:

Carry out strategic studies for the development of a comprehensive LEP for the City of Ryde.

The City of Ryde Local Strategy is required to meet the project description, project objectives, and the terms and conditions, of the MOU.

CITY OF RYDE COMPREHENSIVE PLAN

Stage 2 Local Strategy

Stage 1 Consolidating LEP

Stage 3 Comprehensive LEP

Centres

Housing

Employment

Parks/Open Space

Community and Culture

Environment

Transport

Design quality



ITEM 5 (continued) The City of Ryde Local Strategy will be developed from existing strategies, plans and studies that have been prepared by various Service Units and the following background studies: • Centres and Corridors • Housing • Employment • Parks (Open Space) • Community and Culture • Environment • Transport • Design Quality The studies will be undertaken over 2 years:

2007/08 - Housing - Parks - Environment - Transport 2008/09 - Centres and Corridors - Employment - Community and Culture - Design Quality

An outline of the scope of each study is summarised below. Centres and Corridors Strategy The Metropolitan Strategy promotes the enhanced liveability of centres by providing for a greater concentration of activities in centres, including an increased number of dwellings. There are a range of centre types from specialised centres such as Macquarie Park, through to town centres such as Ryde and neighbourhood centres such as Cox’s Road. The Centres and Corridors Strategy will: • establish a centres hierarchy using Metropolitan Strategy centres typologies; • define relationships between centres; • determines the boundary, function and role of each centre; • help ensure that each centre has a distinctive urban character and sense of place; • provide for activities to be concentrated in centres; • appropriately increase employment and housing capacity at a range of centres; • establish appropriate staging for the increase in employment and housing

capacities; • establish how social needs can be met by centres (eg housing choice, housing for

the aged and people with disabilities); • include an investigation of neighbourhood centres;



ITEM 5 (continued) • include the completion of the West Ryde Town Centre study to Master Plan stage

with additional information on employment and dwelling number potential based on the Master Plan; and

• investigate the possibility of Victoria Road being considered as an enterprise or renewal corridor.

The Strategy will be prepared by Council staff but consultant will undertake the work for the neighbourhood centres and the West Ryde Town Centre. Housing Strategy The City of Ryde has been advised by the Department of Planning that an additional 12,000 new dwellings will need to be provided for within the LGA by the year 2031. Options for how these additional dwellings could be provided for, and the building typologies associated with these increased numbers, will be prepared for discussion with Councillors. The housing strategy will: • provide for additional dwelling numbers as required by the Inner-North Subregional

Plan; • consider the social needs of existing and future residents of the City of Ryde

(affordable housing, housing for seniors and those with a disability); • ensure appropriate lands are designated for identified housing needs and for a

range of housing types; • provide for a staged increase in dwelling numbers (Stage 1 up to 2021, Stage 2

up to 2031); • ensure that the future development is feasible with regard to both housing types

and staging; and • contribute to a distinctive urban character and sense of place. The Strategy will be prepared by Council staff, however the preparation of the Housing Strategy will include extensive consultation with the community on the housing issues facing the City now and into the future. A specialist consultant will be engaged to undertake this work. It is intended that options for the Housing Strategy will be prepared and work-shopped with Councillors prior to development, public exhibition and community consultation of the preferred option. Employment Opportunities Strategy The City of Ryde has been advised by the Department of Planning that the target for the number of additional jobs to be provided within the City of Ryde by 2031 is 21,000.



ITEM 5 (continued) The Employment Opportunities Strategy will: • identify and examine key employment issues; • identify local industry-specific ‘clusters’ ( e.g. education, IT, biotechnology,

biomedical and pharmaceutical industry clusters); and • meet the State Government planning requirements set out in the Metropolitan

Strategy, and the Inner-North Subregional Plan (yet to be released); • recognise and provide for the protection and enhancement of employment

opportunities; • support the Department of Planning ,City of Cities Employment Lands for Sydney

Action Plan, March 2007; • improve opportunities for complementary employment opportunities to be co-

located with primary employment opportunities e.g. cafes, hotels, day to day services, in business parks or industrial areas;

The Employment Opportunities Strategy will be prepared by a specialist consultant. Parks/Open Space Strategy The Parks (Open Space) Strategy is being prepared by City of Ryde staff and will be closely based on the Parks Strategy, Parks on Track for People 2025, which has been prepared by Council’s Parks section and adopted by Council in December 2006. The Parks Strategy will have a focus on land use and planning issues and will address the issue of the increased population and employment numbers proposed by the Metropolitan Strategy. Community and Culture Strategy The Community and Culture Strategy have several distinct strands. The heritage part of the strategy would examine: • the results of the Parramatta River Foreshore natural, cultural, archeological and

Aboriginal heritage study which id due for completion in December 2007; • review of current heritage listings identified as needing clarification; • NPWS listings for Aboriginal sites; • review potential items proposed by the limited community based heritage study

and by Council’s heritage officers; and • a new comprehensive heritage study. The public art part of the strategy would examine: • Council’s policies with regard to the provision of public art; and • the location of public art sites with regard to a City wide strategy. The community facilities part of the strategy would examine: • the community facilities policies and plans (such as the Community Facilities

Strategic Plan and Social Plan);



ITEM 5 (continued) • the provision of community facilities to meet future needs (staged at 2021 and

2031) including an investigation of the joint use of community facilities; • how the LEP land use zonings can accommodate the future need for community

facilities; and • how s94 can be used to provide for future facilities. The events part of the strategy would examine: • if special provision would need to be made in the LEP land use zonings for

community events; and • using exempt and complying provisions for events. Environment Strategy The Environment Strategy will: • identify current environmental issues, including air, water, soil and biodiversity, and

recommend land use and planning related actions; • reinforce the City of Ryde Environment Strategy 2007 – 2010 and implement its

relevant actions; and • help protect and enhance the natural environment. The Strategy is being prepared by a specialist consultant. Transport Strategy The Transport Strategy will build upon the Ryde Integrated Land Use and Transport Strategy (RITLUS) which has recently been prepared. It will recommend how to implement relevant actions listed in RITLUS, and propose key indicators and mechanisms for monitoring. The Strategy will also recommend how to implement relevant actions of the Metropolitan Strategy and the Inner-North Subregional Plan. The Transport Strategy will include a study of issues associated with neighbourhood centres and this will be co-ordinated with the investigation of neighbourhood centres study which is being undertaken as part of the Centres and Corridors Strategy. The Transport Strategy will be prepared by a specialist consultant. Design Quality Strategy The Design Quality Strategy will: • provide for design excellence and in particular, well designed urban places and

large and small scale development (e.g. design competitions); and • provide for quality design criteria for different development typologies; Management Plan Budget / Linkages This City of Ryde Local Strategy project is from the Management Plan listed on page no. 58 of the Management Plan 2007-2010.



ITEM 5 (continued) Relationship to Key Outcome Areas People This project meets the following key outcomes for People (set out on page 34 of the Management Plan 2007-2010): • A vibrant city that is healthy, physically attractive, economically strong and

engages its community through cultural and social activities. • A city that plans for people by identifying their diverse needs and involving them in

decision making to improve their quality of life. • A harmonious community through a culturally enriched and respectful society. The City of Ryde Local Strategy will plan for the present and future communities of the City of Ryde by identifying of the needs of the community and providing for places to enhance community well being. The City of Ryde Local Strategy will enhance the economic strength of the City by protecting existing employment opportunities and by providing for additional employment opportunities. The City of Ryde Local Strategy will be engaging the community through a public consultation process. Assets This project meets the following key outcomes for Assets (set out on page 36 of the Management Plan 2007-2010): • Well designed streets and paths where motorists, cyclists and pedestrians feel

safe. • Well designed places and spaces that minimise personal harm and where people

interact with each other, so that crime is reduced. The City of Ryde Local Strategy will plan for the present and future communities of the City of Ryde by providing for well-design urban places. Environment This project meets the following key outcomes for Environment (set out on page 38 of the Management Plan 2007-2010): • Clean air through protection of natural resources and better integrated transport

systems. • Attractive streets, public places and buildings through better planning and design

which is responsive to community expectations and our local environment. • Protected ecological systems and processes that support life and the environment

through actions that safeguard them. • Preserved natural areas which are enhanced and maintained. • A leafy City through parks, gardens, trees and the build environment.



ITEM 5 (continued) The City of Ryde Local Strategy will plan for the present and future communities of the City of Ryde by providing for attractive urban places through better planning and design and through the consideration of environmental sustainability. The City of Ryde Local Strategy will provide for the protection of the natural environment and existing parks. The City of Ryde Local Strategy will engage the community through a public consultation process. Governance This project meets the following key outcomes for Governance (set out on page 41 of the Management Plan 2007-2010): • Improved communication with the community and increased awareness and

understanding of Council’s decision by the community. • Members of the community are engaged through involvement in democratic

decision making and the promotion of active citizenship. • Incorporation of best practice approached in the delivery of services to the

community. • A safe and harmonious working environment with skilled and motivated staff who

embrace the organisation’s vision and values. • Compliance with all legislative requirements and statutory obligations. • An efficient and effective regulatory environment. The City of Ryde Local Strategy will engage the community through a public consultation process. The City of Ryde Local Strategy will comply with the requirements of the Department of Planning and with legislative requirements associated with the preparations of local environmental plans. Consultation – Internal and External Internal Council Groups consulted included:- • Community Life External public consultation included:- • NSW Department of Planning • NSROC The preparation of the Local Strategy will require extensive internal and external consultation with key stakeholders. It is also proposed that an expert in community consultation be engaged to prepare a community consultation plan (in 2008/09).



ITEM 5 (continued) Policy Implications The City of Ryde Local Strategy will provide a basis from which to prepare a City of Ryde comprehensive local environmental plan. This comprehensive LEP will replace the consolidating LEP. The City of Ryde Local Strategy may also provide recommendations for DCP controls. Critical Dates The Department of Planning has advised that a comprehensive LEP is to be completed by March 2009. However, it is unlikely that this deadline can be met, and a revised deadline is to be discussed with the Department. Financial Impact It is estimated that the total cost of the project (excluding staff costs) would be $710,800 as set out in the table below. These costs would be spread over 2 financial years: 2007/08 $270,150 2008/09 $440,650

Sub-strategy/study Costs (consultant’s fees plus sundries)

2007/08 Housing $170,000Environment $70,000Transport $60,000Parks/Open Space $150Total for 2007/08 $300,1502007/08 Employment $50,000Centres $200,000Community and Culture $90,000Design Quality $20,000Total for 2008/09 $360,650TOTAL FOR SUB-STRATEGIES $660,800Community Consultation $70,000Local Strategy Document $60,000Total $130,000PROJECT TOTAL $790,800FUNDING FROM DEPARTMENT OF PLANNING $80,000FUNDING REQUIRED TO BE PROVIDED BY CITY OF RYDE $710,800



ITEM 5 (continued) The cost of the project is partly funded by the Department of Planning who have provided a grant of $150,000 for the preparation of a Comprehensive Plan provided that it is undertaken in accordance with the memorandum of Understanding. The Comprehensive Plan has 3 stages: a consolidated LEP, a local strategy, and a comprehensive LEP. $80,000 of this funding is to be allocated to the preparation of a local strategy. The studies being undertaken in 2007 - 2008 will be funded mainly through s94 funds and from the current budget for the 2007/08 financial year Other Options Not applicable. RECOMMENDATION: (a) That the City of Ryde Local Strategy be prepared as outlined in the report. (b) That specialist consultants be engaged to undertake the following studies

i. Housing Study - community consultation ii. Environment Study iii. Transport Study



ITEM 6 REPORTING OF ELECTRICITY, WATER AND FUEL CONSUMPTION File No. COR2006/647 Report Summary This report has been prepared to respond to the following Notice of Motion adopted at Council meeting on 12 June 2007: ‘That the General Manager report to Council on the practicality of Council assessing its total metered electricity consumption, metered water consumption and total fuel usage on an annual basis for publication in the interests of demonstrating a decline in each area as an example to the community’. Measuring total electricity, water and fuel consumption is essential, if Council is to effectively manage its resource consumption and it is considered entirely appropriate that it be required to report and publish these figures on an annual basis to inform the local community. The collation of quarterly summaries of electricity, water, gas and unleaded fuel and diesel consumption across the various accounts has commenced and will be used for annual reporting and to inform future policy direction. Background This Notice of Motion was passed to enable an investigation into the feasibility of assessing the Council’s total metered electricity, water and fuel consumption and for Council’s performance to be reported to the local community. The City of Ryde is currently implementing approved energy and water saving action plans and the recently adopted Greenhouse Gas Reduction Action Plan 2007-2010. Report Planet Footprint Pty Ltd has been engaged to assist in the data collection and reporting process and to benchmark Council’s performance for electricity, water and gas against other NSROC Councils and some 50 Councils across the country also participating in a similar program. Quarterly summaries and benchmarking reports of electricity, water and gas consumption can be provided by Planet Footprint across all of Council accounts. Total fuel usage can also be collected quarterly and analysed separately by Council staff and added to reports.



ITEM 6 (continued) Annual results will be reported via State of the Environment Reports, posted on the Council’s website and reported in the new Ryde City View Community Newsletter, to coincide with annual reporting. Management Plan Linkages Each of the Key Outcome Areas (People, Assets, Environment and Governance) listed in City’s Management Plan 2007/2010 Relationship to Key Outcome Areas Assets This project meets the key outcomes for Assets (set out on pages 34 of the Management Plan 2007-2010): Reporting and analysis of resource conservation results will serve to improve the way our local assets, infrastructure and facilities are managed and maintained. Environment This project meets the key outcomes for Environment (set out on pages 36 of the Management Plan 2007-2010): Reporting and analysis of resource conservation results will help inform Council policy/strategy towards clean air, reduced energy and water and the use of renewable resources. Governance This project meets the key outcomes for Governance (set out on page 39 of the Management Plan 2007-2010): Reporting and analysis of resource use will consolidate and increase community awareness and understanding about energy, water and fuel use through improved communications and engagement with the community People This project meets the key outcomes for People (set out on pages 32 of the Management Plan 2007-2010): Reporting demonstrates the Council’s commitment to strive for a socially sustainable City, through effective community participation, the active application of social justice principles and by the fostering improved learning and access opportunities for people to better understand the environment.



ITEM 6 (continued) Consultation – Internal and External Internal: City’s Water and Energy Savings Team (CORWEST), City’s Environmental Education Team (EET) and City’s Executive Team Policy Implications There are no policy implications with this report. Critical Dates There are no critical dates for this report. Financial Impact $2,000p/annum for Organisation Footprint reports which can be funded from the Environment Operations budget. There are no other financial implications associated with this report. RECOMMENDATION: (a) That the report on the practicality of reporting Council’s metered electricity and

water consumption and fuel usage on an annual basis for publication to the local community, be received and noted.

(b) That Council’s metered electricity and water consumption rates and total fuel

usage by fleet, plant and equipment be reported annually in the State of the Environment, in the Ryde City View Community Newsletter and on the City website.



ITEM 7 REVIEW OF RESIDENT PARKING SCHEME Report Summary This report is provided in accordance with Council’s resolution on 12 September 2006, to review the introduction of the Resident Parking Scheme after six months. The report provides Council with the current status of Resident Parking Scheme (RPS) within the Macquarie Park Business Corridor (MPC) and the immediate area surrounding the Ryde Aquatic Leisure Centre (RALC). The report reviews the operation of the RPS, permits issued, customer feedback and proposes a number of amendments to the Permit Parking Policy. Background Council, at its meeting of 12 September 2006 resolved: “That following any introduction of a Resident Permit Parking Policy, there should be a review at six (6) months and then again at twelve (12) months after the introduction of the scheme”. The objectives of the Resident Parking Schemes were to:- • Reinstate the residential amenity by discouraging non-resident and private vehicles

users to park all day in residential areas; • Enhance on-street parking access to residents who have limited or no off-street

parking; • Support the regional transport objectives and strategies; • Increase public transport usage by converting those unrestricted kerbside parking

spaces in residential areas into restricted parking spaces. Following Council’s resolution six Resident Parking Scheme zones were identified within the MPC and one surrounding the RALC. Community consultation revealed that not all residents supported the introduction of a RPS and only where the residents supported the Scheme was it introduced. All RPS zones have the appropriate regulatory signage informing drivers that they are entering / leaving the RPS zone. Council’s Resident Parking Scheme commenced on 1 December 2006.



ITEM 7 (continued) Report How the Scheme Operates Following a request from residents for the introduction of RPS, by way of petition or individual letters, preliminary data is gathered in order to ascertain the impact non-resident and private vehicles users have upon the residents. The preliminary data is collated and a memorandum prepared and forwarded to the Manager Regulatory Services and Group Manager Environment and Planning for approval to undertake a formal survey of the residents in order to ascertain the willingness of residents to accept a RPS in their street. Consequently, the survey data is collated and a report is prepared for consideration by the Traffic Committee and referral to Council. Areas covered by a RPS are periodically patrolled by Council’s Rangers (Compliance and Parking), vehicles marked up and penalty notices issued to vehicles that overstay the 2 hour time limit. Resident Parking Schemes and Permits Issued Within the MPC six zones were identified for the implementation of a RPS and to-date the residents in five zones have accepted the Scheme and 945 permits have been issued. Within the RALC area one zone was identified and 74 permits have been issued. Please refer to ATTACHMENT “A” for RPS zones. A breakdown of the streets involved in the Scheme and permits issued as of 10 October 2007 are as follows:- Macquarie Park Corridor Zone 1 Cottonwood Crescent, Peachtree Road, Lachlan Avenue, Windsor Drive

and Herring Road – east side form Waterloo Road to Ivanhoe Place. Permits issued - 596

Zone 2 No Streets

Permits issued - 0 Zone 3 Paul Street, McGregor Street, David Avenue, Holt Street, Parklands Road

and Whiteside Street. Scott Street, Beswick Street, Booth Street and Pine Street have been surveyed and reported to the Ryde Traffic Committee. Permits issued - 288



ITEM 7 (continued) Zone 4 Allengrove Crescent

Lorna Avenue and Folkard Street. Permits issued – 12

Resident Parking Schemes and Permits Issued (cont) Zone 5 No Streets

Permits issued - 0 Zone 6 Talavera Road, Culloden Road and Taranto Road are approved for

implementation. Permits issued – 38

Ryde Aquatic Leisure Centre Zone 7 Ryde Aquatic Leisure Centre Corridor

Searle Street, Weaver Street and Brereton Street. Permits issued - 92

Customer Complaints & Penalty Notices Issued For the period 1 December 2006 to 30 June 2007 Council received 24 complaints regarding vehicles overstaying the time limit in RPS zones. These complaints were dealt with the same day and penalty notices issued where appropriate. A total of 271 penalty notices have been issued in Resident Parking Scheme zones during the reporting period.

Resident Parking Scheme Penalties December 2006 to June 2007

0

50

100

150

200

250

Pena

lties

issu

ed

Penaltiesissued

200 0 10 2 0 59

Zone 1 Zone 2 Zone 3 Zone 4 Zone 6 Zone 7



ITEM 7 (continued) Objective Outcomes Following the introduction of the Scheme Council has achieved its objective in regard to reinstating the residential amenity by discouraging non-resident and private vehicles users to park all day in residential area and enhance parking access to residents who have limited off-street parking. Permit Parking Policy Since its introduction no concerns have been raised regarding the Policy. However, the Policy could be enhanced by the following proposed inclusions:- 1. How can a resident have their street included in a RPS?

The Policy provides no information on how residents can have their street included in a RPS. It is proposed to provide the residents with guidelines and petition format. Please see ATTACHMENT “B”

2. How does Council use to conduct surveys? 3. What methodology is used to asses surveys?

The Policy does not outline the process used to conduct surveys or how they are assessed. It is proposed to include the Methodology in the Policy, which outlines when surveys will be conducted, survey medium, coverage and duration, type of questionnaire and assessment criteria. Please see ATTACHMENT “C”.

Management Plan Budget / Linkages This project is from the Management Plan, Macquarie Park Corridor / Integrated Transport Strategy listed on pages 14, 17 & 18 of the Management Plan 2007-2010. Relationship to Key Outcome Areas Assets This project meets the following key outcome for Assets (set out on page 34 of the Management Plan 2007-2010): • Well designed streets and paths where motorists, cyclists and pedestrians feel

safe Managing parking demand is essential to improving local amenity and supporting a change in modal split to support the upcoming rail infrastructure in Macquarie Park Corridor.



ITEM 7 (continued) Environment This project meets the following key outcome for Environment (set out on page 36 of the Management Plan 2007-2010): • Clean air through protection of natural resources and better integrated transport

system Supports the use of public transport systems and integrated transport nodes to reduce air pollution and greenhouse gas emissions. Governance This project meets the following key outcome for Governance (set out on page 39-40 of the Management Plan 2007-2010): • Members of the community are engaged through involvement in democratic

decision making and the promotion of active citizenship People This project meets the following key outcome for People (set out on pages 32 of the Management Plan 2007-2010): • A City that pans for people by identifying their diverse needs and involving them in

decision making to improve their quality of life. Consultation – Internal and External Not applicable. Policy Implications There are no policy implications through adoption of the recommendation. Critical Dates Not applicable Financial Impact Not applicable RECOMMENDATION: (a) That the report outlining the review of the Resident Parking Scheme be received

and noted. (b) That the Permit Parking Policy is amended to include the “Methodology” and “How

can I have my street included in a Resident Parking Scheme”.



ITEM 7 (continued) ATTACHMENT “A”



ITEM 7 (continued) ATTACHMENT



ITEM 7 (continued) ATTACHMENT “B”

MMeetthhooddoollooggyy ffoorr CCoonndduuccttiinngg RReessiiddeenntt PPaarrkkiinngg SSuurrvveeyyss Conducting Surveys Surveys will only be conducted during neutral month, not during December, January, Easter, School / University Holidays. Surveys will be initiated if 5 or more residents from within the street request a Resident Parking Scheme. Survey Medium Survey forms will be forwarded to residents either by mail or hand delivered. Residents can respond to the survey by using the reply paid envelope or hand deliver it to Council’s Customer Service Centre. Survey Coverage All residents within the survey area will be forwarded a survey form, covering letter, other relevant information and a reply paid envelope. Duration of Survey Residents will be provided with 10 clear working days to return the survey. Type of Survey The survey will take the form of a questionnaire which will be designed for completion within ten minutes. Answers from a number of statements are requested from a multi-choice list. Questionnaires will not ask for the resident’s name, address or telephone number. Questionnaires will be numbered but no record will be kept of which questionnaire went to which house number. Only the total number of surveys forwarded will be recorded. The numbering system is used to eliminate duplicate returns. Assessment of Questionnaires Responses to the questionnaires will be entered into a data base. For a proposed scheme to proceed the following criterion must be met:- • A minimum of fifty one percent (51%) of the returned surveys must be in favour of the

scheme. Surveys that fail to meet Assessment Criteria Areas surveyed that failed to meet the assessment criteria will generally not be re-surveyed for 12 months. However, in the event of unusual circumstances this timeframe may be waived.



ITEM 7 (continued) ATTACHMENT “C”

Permit Parking Policy How can I have my street included in a Resident Parking Scheme? Council’s objectives:- • Reinstate the residential amenity by discouraging non-resident and private vehicles users

to park all day in residential areas; • Enhance on-street parking access to residents who have limited or no off-street parking; • Support the regional transport objectives and strategies; • Increase public transport usage by converting those unrestricted kerbside parking spaces

in residential areas into restricted parking spaces. What can you do? 1. Have all the residents that are affected by non-resident and private vehicles parking in

their street write to Council requesting that a survey be conducted in order to determine if all the residents will agree to a resident Parking Scheme in their street.

2. Complete the attached petition, have is signed by the affected residents and forward it to

Council. What will Council do? 1. Upon receipt of the letters/petition Council will conduct a preliminary survey to ascertain

the impact of non-resident/private vehicles parking in their street. • Correspond with the initiator of the petition/resident informing them of the outcome of

the preliminary survey and the next step to be taken. 2. If the preliminary survey confirms the concerns raised in the petition a formal survey will be

conducted. Please refer to Methodology for Conducting Surveys for additional information. 3. If the formal survey meets the assessment criteria a resident Parking Scheme will be

introduced. 4. All residents surveyed will be notified in writing of the outcome of the survey.




PETITION Date: ___/___/______ To: General Manager City of Ryde Locked Bag 2069 NORTH RYDE NSW 1670 Dear Sir We the undersigned petitioners request the City of Ryde to implement a Resident Parking Scheme for the following reasons: 1._________________________________________________________________ 2._________________________________________________________________ 3._________________________________________________________________ 4._________________________________________________________________ The petitioners request that the Scheme is introduced in front of the following properties: Numbers Street / Road Suburb ______ to _____ ________________________ ____________________ ______ to _____ ________________________ ____________________ ______ to _____ ________________________ ____________________ Yours sincerely (Name of initiator) (Address of initiator) (Contact telephone number of initiator)




PETITION Signature Address



ITEM 8 PLANT AND EQUIPMENT – Replacement of Street Sweeper, Plant No. 127 File No. COR 2007/2083 Report Summary To advise Council of the receipt of tenders for the replacement of Plant No.127 and recommend acceptance of the tender to supply a MacDonald Johnston model RT570 Street Sweeper by MacDonald Johnston Engineering Company Pty Ltd. Background The replacement of the existing Street Sweeper is necessary because the existing plant is five(5) years old (purchased in 2002), incurs high maintenance and is no longer commercially viable to maintain and operate. The Street Sweeper will be used on a daily basis for the street sweeping operation in the City of Ryde. The type of machinery is very specialised and must be robust to ensure longevity. Report The tender for the changeover of the Street Sweeper was advertised on 25, 28 & 29 of August 2007. The tender closed on 18 September 2007, and the analysis of the tenders received has been forwarded to Councillors UNDER SEPARATE COVER (CONFIDENTIAL). Pursuant to Section 10A (2)(d) of the Local Government Act 1993, these documents are listed as confidential as they contain commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the persons who supplied it. Furthermore, it is considered that discussion in open meeting would, on balance, be contrary to the public interest as it could affect Council’s ability to secure the preferred tenderers. Two (2) firms submitted six (6) tenders meeting the specification for the supply of a Street Sweeper. Three (3) Street Sweepers were short-listed and subsequently demonstrated, and the final selection was carried out by a panel of Council’s plant staff including Council’s Street Sweeper operators. The selection criteria included price, truck and sweeping equipment performance, general requirements and assessment at demonstration. These criteria also include the analysis of mechanical & hydraulic characteristics, efficiency of the machine, operator ease & comfort, safety/OHS requirements, warranty/sales and service, reputation within the industry and several reference checks. Experience shows that these are critical factors in meeting the construction requirements. Having gone through this process, the preferred tenderer was selected on the basis that they conformed competitively to the specified criteria. It is recommended that Council purchase the MacDonald Johnston RT570 on R Pro 7 street sweeper which was assessed as the most advantageous tender.



ITEM 8 (continued) Management Plan Budget / Linkages The cost of plant replacement is included in the 2007/08 Capital Budget for Waste & Fleet. Relationship to Key Outcome Areas People This matter has no direct relationship to this key outcome area. Assets Maintain Council’s assets to serviceable and operable standards to meet the needs of Council Operations. Environment Noise and air emissions were taken into account in determining the recommended tenderer. Governance An open tender process, with probity and best operational and financial deal for Council. Consultation – Internal and External Internal: In the selection process consultations were made with the operators and

the workshop staff. External: Consultations were made with other Councils and private organisations

which use similar Street Sweepers. Policy Implications There are no policy implications through adoption of the recommendation. Critical Dates There are no critical dates or deadlines to be met. Financial Impact This plant replacement is provided for in the plant replacement budget for 2007/08. Net capital cost to Council (including trade-in) will be $193,915.55 excluding GST (or, $213,306.00 including GST). Other Options Option 1-Continue using the present Street Sweeper Keeping the present Street Sweeper will incur high maintenance cost and not commercially viable to maintain and operate.



ITEM 8 (continued) Option 2 – Hire a Street Sweeper from outside The external hire rate is much higher than the internal hire rate because of the high daily usage. Hence Council will be financially benefited by owning a Street Sweeper rather than hiring one. Conclusion Replacement of the existing Street Sweeper, plant 127 with a new Sweeper is the most advantageous option to Council and the recommended Sweeper is highly suitable for the operation. RECOMMENDATION: (a) That the report of the Coordinator - Plant & Fleet Management dated 16 October

2007 on the replacement of Street Sweeper, plant 127, be received and noted. (b) That the tender COR-RFT-08/07, for the supply and delivery of one (1) new Street

Sweeper, MacDonald Johnston RT570 on R Pro 7 be awarded to MacDonald Johnston Engineering Company P/L for a net tender price of $193,914.55 excluding GST, including a trade-in of $54,545.45.

(c) That the unsuccessful tenderers be advised of Council’s decision.



ITEM 9 NSROC TENDER 7/07 – Supply, Supply and Delivery and Supply Delivery and Laying of Asphaltic Concrete and Associated Works. File No. COR2006/1635 Report Summary This report advises Council of NSROC Tender 7/07 and recommends acceptance of specific tenders relating to the Supply, Supply and Delivery and Supply Delivery and Laying of Asphaltic Concrete and Associated Works on an as and when required basis up until 30 June 2008. Background Council calls annual tenders for asphalting and associated works on behalf of six (6) of the seven (7) NSROC Councils and has done so for the past nine (9) years. Rates are sought for each individual Council in the NSROC tender document and it is then up to each Council to determine the most cost effective tender. Works are undertaken on an “as and when required” basis and paid by the unit rates tendered. Report Council called for tenders on behalf of the NSROC Councils on 10 July 2007 for the following items of work: • Asphalting Works - Supply, Supply and Delivery and Supply Delivery and Laying of

Asphaltic Concrete. • Road Profiling • Supply of Asphalt (ex-bin). • Supply and delivery of Asphalt. • Supply (ex-bin), and Supply and Delivery of Cold Mix. • Heavy Patching. • Crack and Joint Sealing. Tenders closed on 8 August 2007. Tenders have been received from the following Companies: • A & J Paving • Boral Asphalt • D & M Excavations & Asphalting • Downer EDI Works • FRH Group • Pioneer Road Services • Sami Road Services • Sharp Bros. Australia • State Asphalt Services • Tropic Asphalts



ITEM 9 (continued) The following information is ON FILE have been forwarded to Councillors UNDER SEPARATE COVER – CONFIDENTIAL. Pursuant to Section 10A(2)(d)(i) of the Local Government Act 1993, this document is listed as confidential as it concerns the receipt and discussion of commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it. • Tender prices are detailed in Table A (6 pages). • The preferred Tenderer for the Supply, Supply and Delivery and Supply Delivery and

Laying of Asphaltic Concrete is that submitted by Downer EDI. A more detailed cost comparison was carried out between the rates submitted by this Company and State Asphalts over a large range of projects carried out through 2006-2007. The rates submitted by Downer EDI are fixed rates where, as the rates submitted by State Asphalts are fixed for tonnages of 300 tonnes and more, laid per shift with additional costs being incurred for lower tonnages laid per shift. A comparison of these costs Table B (2 pages).

• A summary of the recommended asphalt tenders and rates for 2007-2008 - Table C

(1 page). Notwithstanding, from time-to-time, Council has difficulty in having asphalting works carried out due to the availability of preferred contractors. State Asphalts could be used as a back-up supplier to Downer EDI. The preferred Tenderer for the Supply (ex-bins) of asphaltic concrete is Downer EDI. With regard to the supply (ex bins) of cold mix the lowest tender is that submitted by the FRH Group. The plant for this Company is located at Minto and the cost to travel to and from Minto negates any cost advantage. It is recommended that Council does not accept a tender for the supply (ex bins) of cold mix and that, in future, all cold mix be purchased on the basis of supply and delivery. The preferred Tenderer for the Supply and Delivery of Asphaltic Concrete and Cold Mix is Downer EDI. The preferred Tenderer for Profiling (rotomilling) is Downer EDI, whose rates are mostly less than the second-lowest tenderer except in the area of Zero to 500 sq. metres. As well, from a project management point of view, it will be far more effective to engage the one (1) Company to carry out both the asphalting work and the profiling works. The preferred Tenderer for Heavy Patching is A & J Paving, which was the lowest tender for that category of work. This company has carried out this type of work for the City of Ryde over previous year in a very professional manner, meeting all required standards.



ITEM 9 (continued) The preferred Tenderers for Joint and Crack Sealing are A & J Paving and Tropic Asphalts. It is recommended that Council accept both tenders and that work be allocated depending upon the extent of works and in the cost effect manner. Overall a comparison of the rates submitted in 2007-2008 compared to the rates submitted in 2006-2007, are as follows: • The supply, delivery and laying of asphalt and crack sealing are similar to the rates

tendered in 2006-2007. • The rates for supply and delivery of asphalt will decrease by approximately 4.5%

while rates for supply only will decrease by approximately 7%. • The rates for profiling will decrease approximately 5%, and the rates for heavy

patching, will increase by 0.5%. Management Plan Budget / Linkages The asphalt resurfacing and associated works are essential components of many of the items of works included in the Access Capital Works Program which are listed on pages A7, A8 and A9 of the Capital Works Program for 2007-2008. The heavy patching works are listed on page A7 of the Capital Works Program for 2007-2008. The Supply, Supply and Delivery Asphaltic products and cold mix are mostly used as part of Council’s road and footpath maintenance works which are funded as part of the recurrent expenditure for Access and funded as part of the 2007-2008 Operating Budget. Relationship to Key Outcome Areas People This matter has no direct relationship to this key outcome area. Assets This project meets the following key outcomes for Assets (set out on page 34-35 of the Management Plan 2007-2010): • Well designed streets and paths where motorists, cyclists and pedestrians feel

safe. Environment This project meets the following key outcomes for Environment (set out on pages 36-38 of the Management Plan 2007-2010): • Attractive streets, public places and buildings through better planning and design

which is responsive to community expectations and our local environment.



ITEM 9 (continued) Governance This project meets the following key outcomes for Governance (set out on page 39-41 of the Management Plan 2007-2010): • Incorporation of best practice approaches in the delivery of services to the

community. • Compliance with all legislative requirements and statutory obligations. Consultation – Internal and External Internal Council business units consulted included:- • Consultation with Council’s Operations Unit as and when required. External public consultation included:- • State and Federal Governments as and when required. Policy Implications There are no policy implications through adoption of the recommendation. Critical Dates There are no critical dates or deadlines to be met. Financial Impact There is no financial impacts as the projects or works covered by the tenders are been funded as part of Councils 2007-2008 Capital Works and Operating Budgets. Conclusion Asphalting and associated works are an important component of the construction and maintenance of Council’s road network. As a result of calling annual tenders, recommendations regarding the acceptance of tenders have been made. RECOMMENDATION: (a) That the report regarding the NSROC Tender 7/07 – Supply, Supply and Delivery

and Supply Delivery and Laying of Asphaltic Concrete and Associated Works, be received and noted.

(b) That the tender of Downer EDI be accepted for the Supply, Supply and Delivery

and Supply Delivery and Laying of Asphaltic Concrete, be accepted. (c) That the tender by Downer EDI for Profiling works be accepted. (d) That the tender of A & J Paving for Heavy Patching works be accepted.



ITEM 9 (continued) (e) That the tender by A & J Paving and Tropic Asphalts be accepted for Crack

Sealing. (f) That State Asphalts be advised that Council will consider using their Company as

a back-up for the Supply, Delivery and Laying of Asphaltic Concrete. (g) That the other Tenderers be advised of Council’s resolution in this matter and

relevant tender deposits refunded. Kim Woodbury ACTING GENERAL MANAGER

COUNCIL MEETING 16 OCTOBER 2007

Precis of Correspondence for Consideration

- 1 -

THERE ARE NO ITEMS OF CORRESPONDENCE.


Notices of Motion

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THERE ARE NO NOTICES OF MOTION.


Notices of Rescission

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THERE ARE NO NOTICES OF RESCISSION.

Documents

CITY OF RYDE ACTING GENERAL MANAGER’S REPORT NO. 19/07 ... · This is page no. 1 of the Acting General Manager’s Report No. 19/07, dated 12 October 2007, submitted to Council