Minutes Ordinary Meeting of Council · TOWONG SHIRE COUNCIL ORDINARY MEETING 4 FEBRUARY 2014 2 P:\Council Minutes\2014\02 February\4 February 2014.doc MINUTES OF THE ORDINARY MEETING

$Page 1: Minutes Ordinary Meeting of Council · TOWONG SHIRE COUNCIL ORDINARY MEETING 4 FEBRUARY 2014 2 P:\Council Minutes\2014\02 February\4 February 2014.doc MINUTES OF THE ORDINARY MEETING$
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Minutes

Ordinary Meeting of Council Tallangatta Council Office

Tuesday 4 February 2014

This information is available in alternative formats on request

TOWONG SHIRE COUNCIL

ORDINARY MEETING 4 FEBRUARY 2014

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P:\Council Minutes\2014\02 February\4 February 2014.doc

MINUTES OF THE ORDINARY MEETING OF COUNCIL HELD AT TOWONG SHIRE COUNCIL,

TALLANGATTA OFFICE ON TUESDAY 4 FEBRUARY 2014 COMMENCING AT 10.05 AM.

TABLE OF CONTENTS

1 Opening Prayer ........................................................................................................................................... 4

2 Councillor and Officer presence at the meeting ............................................................................ 5

3 Apologies and granting of leave of absence ................................................................................... 5

4 Declaration of pecuniary interest and/or conflict .......................................................................... 5

5 Confirmation of minutes ......................................................................................................................... 5

6 Petitions, joint letters and declarations ............................................................................................. 6

6.1 Walwa Odour Issue (01/04/0054-DTS) ....................................................................................... 6

6.2 Goats in Mitta Mitta (02/09/0003-Cr Scales) ........................................................................... 6

7 Assembly of Councillors .......................................................................................................................... 7

8 Open Forum ................................................................................................................................................. 7

9 Organisational improvement ................................................................................................................. 8

9.1 Finance Report as at 31 December 2013 (CEO) ...................................................................... 8

9.2 Action Sheet Reports (06/05/0010-EA) ................................................................................... 20

9.3 Council Plan Priorities (07/05/0022-DCCS) .......................................................................... 20

9.4 Performance Reporting Graphs (DCCS) .................................................................................. 20

10 Community wellbeing ........................................................................................................................... 21

10.1 Neighbourhood Safer Places (07/01/0123-DTS) ............................................................. 21

11 Asset management ................................................................................................................................ 26

11.1 Works Schedule (DTS) ............................................................................................................... 26

12 Land-use planning .................................................................................................................................. 27

12.1 Towong Planning Scheme Amendment C30 – Environmental Significance

Overlay (ESO) (03/02/0038–CEO) .......................................................................................................... 27

13 Environmental sustainability ............................................................................................................... 33

14 Economic and tourism development............................................................................................... 33

15 Councillor reports ................................................................................................................................... 34

15.1 Bellbridge Australia Day Community Breakfast Awards (Cr Joyce) ........................... 34

15.2 Walwa Australia Day Community Breakfast Awards (Cr Gadd) .................................. 34

15.3 Corryong Australia Day Community Breakfast Awards (Cr Fraser) ........................... 34

15.4 Mitta Valley Australia Day Community Breakfast Awards (Cr Scales) ...................... 34

15.5 Tree Clearing Corryong (Cr Fraser) ....................................................................................... 34

15.6 Dart Mining Community Meeting (Cr Wortmann) .......................................................... 34

16 Urgent business ....................................................................................................................................... 35

16.1 Procurement of Fuel Products (07/05/0007-CEO) .......................................................... 35

16.2 Banking Services Review (06/02/0021-CEO) ..................................................................... 43



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17 Committee minutes ............................................................................................................................... 53

17.1 Audit Committee (07/07/0010-CEO) ................................................................................... 53

17.2 Lake Hume Land and On-Water Management Plan CRG (07/01/0121-Cr

Wortmann) ..................................................................................................................................................... 57

17.3 Murray Darling Association (07/01/001-Cr Wortmann) .............................................. 58

17.4 Tourism North East (05/02/0153-CEO) ............................................................................... 58

17.5 MAV Representatives, Mayors and CEO’s Forum (07/01/0006-Mayor) .................. 58

17.6 NevRwaste (07/01/0050-Cr Joyce) ........................................................................................ 59

17.7 Rural Councils Victoria (07/01/0137-CEO) ......................................................................... 59

18 Occupational health and safety ......................................................................................................... 60

18.1 OHS Committee (06/04/0212-DCCS) .................................................................................. 60

19 Council policies (10/01/0007-CEO) .................................................................................................. 61

20 Sealing of documents ........................................................................................................................... 61

21 Confidential ............................................................................................................................................... 62

21.1 Consideration of Tender – Replacement of 2001 Caterpillar 140H Grader Contract

No. 1407/0905 (10/02/0008-DTS) ......................................................................................................... 63



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1 Opening Prayer

“Almighty God, we ask that you be present at this meeting to assist us in our service to the

Community through Local Government.

We pray that our decisions will be wise and taken with goodwill and clear conscience.

Amen.”



5

2 Councillor and Officer presence at the meeting

Present: Cr Fraser OAM, Crs Wortmann, Gadd, Joyce and Scales

In Attendance: Title:

J Phelps Chief Executive Officer

J Heritage Director Technical Services

D Snaith Executive Assistant

3 Apologies and granting of leave of absence

Nil.

4 Declaration of pecuniary interest and/or conflict

For the purpose of this section, Councillors must disclose the nature of the conflict of

interest in accordance with s79(2) of the Local Government Act.

Nil.

5 Confirmation of minutes

Ordinary meeting of 3 December 2013 and Special Meeting of 21 January 2014.

CR JOYCE

CR WORTMANN

THAT THE MINUTES OF THE ORDINARY MEETING OF 3 DECEMBER 2013 AND THE

SPECIAL MEETING OF 21 JANUARY 2014, AS CIRCULATED, BE CONFIRMED.

CARRIED



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6 Petitions, joint letters and declarations

6.1 Walwa Odour Issue (01/04/0054-DTS)

Cr Wortmann presented a petition from Mr Ivan Baxter and the residents of Walwa

regarding an odour that has been noticed in Walwa.

CR SCALES

CR GADD

THAT THE PETITION BE RECEIVED AND LAY ON THE TABLE FOR ONE MONTH TO BE

DISCUSSED AT THE 4 MARCH 2014 COUNCIL MEETING.

CARRIED

6.2 Goats in Mitta Mitta (02/09/0003-Cr Scales)

Cr Scales tabled a petition from residents of the Mitta Valley in relation to the removal of

goats in the Mitta Valley.

CR GADD

CR JOYCE

THAT THE PETITION BE RECEIVED AND LAY ON THE TABLE FOR ONE MONTH TO BE

DISCUSSED AT THE 4 MARCH 2014 COUNCIL MEETING.

CARRIED



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7 Assembly of Councillors

A written record of the Assemblies of Councillors from 3 December 2013 to 28

January 2014 is included at Appendix 1.

CR SCALES

CR JOYCE

THAT THE INFORMATION BE NOTED.

CARRIED

8 Open Forum

Nil.



8


9 Organisational improvement

9.1 Finance Report as at 31 December 2013 (CEO)

Disclosure of Interests (S.80C):

This report was prepared by Mr Peter Barber, Manager Corporate Services.

At the time of preparation of the report the officer did not have a direct or indirect

interest in any matter to which the report or advice relates.

OPERATING RESULT

Dec-13 Dec-13 YTD YTD YTD YTD

(Actual) (Budget) (Actual) (Budget) (Variance) (Variance)

$’000 $’000 $’000 $’000 $’000 %

Income 1 193 1,385 11,039 11,410 (371) -3%

Expenditure 2 1,138 1,146 5,202 5,986 (784) -13%

Surplus (945) 239 5,837 5,424 413 8%

Note

Income and expenditure are lower than budget. This is due to projects, where the

timing is unknown, being placed in the month of July.

Note 1: See “Grant Income” below



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Note 2:

Projects that were budgeted in ahead of actual expenditure:

$75,000 High Country Rail Trail

$79,000 Planning services

$33,000 Early Childhood review

$44,000 Community Health and Wellbeing

$50,000 Insight 360 Development

$68,000 Upper Murray 2030 Vision Plan

$60,000 Tourism Strategies and Master Plans

$90,000 Local Government Reform (Shared Services)

$146,000 Infrastructure maintenance

Projects that were budgeted but did not proceed:

$55,000 Flood Recovery Officer

$90,000 Development Services Director

Grant Income

Dec-13 YTD YTD YTD 12 Month

(Actual) (Actual) (Budget) (Variance) (Budget)

$’000 $’000 $’000 $’000 $’000

Recurring 30 1,049 1,108 (59) 2,184

Non-Competitive 1 9 1,884 1,585 299 2,783

Competitive 2 27 817 1,342 (525) 1,576

Total 66 3,750 4,035 (285) 6,543

Note

Note 1:

The following grant was budgeted for but not yet received:

$197,000 Roads to Recovery

The following grant was received but not yet budgeted:

$500,000 Local Government Infrastructure Program

Note 2:

The following grants were budgeted for but not yet received:

$68,000 Tallangatta Multi Sport Precinct

$235,000 Tallangatta Community Hub (Senior Citizens)-RDAF Round 5 grant

withdrawn

$354,000 Blackspot funding

The following grants were received but not yet budgeted:

$108,000 Colac Colac bike path

$45,000 L2P Program



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Grants received Year-to-Date (YTD) are shown in the following table:

YTD (Act)

$’000

Recurring

VGC General Purpose Funds 863

Library 93

Pre-School Cluster 65

Maternal and Child Health 51

Corryong Pre School 48

Tallangatta Pre School 29

Berringa Pre School 24

State Emergency Service Corryong 13

State Emergency Service Tallangatta 13

State Emergency Service Mitta 7

Health Administration 2

Competitive and Non-Competitive

Country Roads and Bridges 1,000

LG Infrastructure Projects 500

Tallangatta Multi-sport Precinct 339

R2R Supplementary 213

Scenic Wayside Stop Project 117

Colac Colac Bike Path 108

Municipal Emergency Response Program (P Leddy) 60

Tallangatta Community Hub 50

L2P Program 45

Weed Project 28

Mitta Valley Dairy Pathways 25

Community Access 18

Tallangatta Neighbourhood House 14

Walwa Community Recovery Centre 9

Freeza Funding 6

Comm Health & Wellbeing (VPR) 5

Towong Racecourse (DSE) 4

Seniors Week 2

Total 3,750



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Operating result

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14

$'0

00

Income

Income - Budget Income - Actual YTD Income - Budget YTD Income - Actual

-

3,000,000

6,000,000

9,000,000

12,000,000

15,000,000

-

1,000

2,000

3,000

4,000

5,000


$'0

00

Expenditure

Expenditure - Budget Expenditure - Actual YTD Expenditure - Budget YTD Expenditure - Actual

(4,000)

(2,000)

-

2,000

4,000

6,000

8,000


$'0

00

Operating Surplus

Surplus - Budget Surplus - Actual YTD Surplus - Budget YTD Surplus - Actual

Notes to major income and expenditure:

Council rates were budgeted to be raised in August. This occurred in

September.

Depreciation is budgeted to be recorded in June.



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CASH POSITION

Cash on Hand

The cash position moved during the month as detailed below:

Current Month Prior Month

Dec-13 Nov-13

$ $ $ %

Unexpended Grants 5,556,157 5,865,226 (309,069) -5.3%

Provisions and reserves 973,120 973,120 - 0.0%

Restricted Funds 6,529,277 6,838,346 (309,069) -4.5%

Unrestricted Funds 3,478,594 3,726,468 (247,874) -6.7%

Section 86 Committee Funds 115,468 115,468 - 0.0%

Total Investments 10,123,338 10,680,282 (556,943) -5.2%

Bank and Cash on Hand 87,967 560,242 (472,274) -84.3%

Total Cash 10,211,306 11,240,524 (1,029,218) -9.2%

Average Interest Rate 3.61% 3.43%

Variance

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

Restricted Funds Unrestricted Funds

Section 86 Committee Funds Bank and Cash on Hand

Prior Year - 2013 Cash Budget 2013/14



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Investments

Investments were made up of the following at the month end:

Date Product Institution Principal Yield Term Rating Maturity

9/08/2013 Term Deposit ING Bank 1,055,293 3.90% 180 Days A1 5/02/2014

22/10/2013 Term Deposit NAB 2,000,000 3.75% 183 Days A1+ 23/04/2014

16/12/2013 Term Deposit AMP 1,000,000 3.90% 182 Days A1 16/06/2014

10/10/2013 Term Deposit Bank of Queensland 1,055,304 3.70% 152 days A2 11/03/2014

22/10/2013 Term Deposit Rural Bank Ltd 1,010,552 3.72% 125 days A2 24/02/2014

13/11/2013 Term Deposit Wide Bay Australia Ltd 1,000,000 3.70% 120 Days A2 13/03/2014

10/10/2013 Term Deposit ME Bank 1,033,419 3.70% 123 Days A2 10/02/2014

26/12/2013 Term Deposit WAW 786,197 3.70% 90 Days 26/03/2014

N/A Online Saver ANZ 1,067,107 2.25% On Call AA- N/A

N/A S86 Committees Various 135,588 4.68% N/A N/A

10,143,459Total Investments

Restricted Funds

Unexpended Grants and Provisions and Reserves at the end of the month are

detailed on the next page.



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$

Unexpended Grants

Country Roads and Bridges 1,690,000

Tallangatta Community Hub 1,219,417

LG Infrastructure Projects 1,178,712

R2R Supplementary 400,000

Local Government Reform 130,977

Colac Colac Bike Path 108,000

Walwa Community Recovery Centre 85,979

Flood Recovery Officer (T Hall) 75,264

High Country Rail Trail Upgrade (DSE) 75,000

Municipal Emergency Response Program (P Leddy) 73,799

Mitta Valley Dairy Pathways 60,673

Magorra Park (DSE) 53,559

Flood Recovery (Community projects) 50,634

Improving Liveability of Older People 47,329

Cudgewa Multi Purpose Facility (DSE) 45,650

Staceys Bridge Reserve (DSE) 44,000

Tallangatta Neighbourhood House 37,634

Community Access 33,150

Towong Racecourse (DSE) 33,028

Weed Project 32,457

L2P Program 22,500

NE Dairy Regional Growth Plan 20,088

Tallangatta Swimming Pool Upgrade 14,003

Bushfire Management Overlay 13,090

SP Ausnet Community Development 4,203

Freeza Funding 4,203

Fire Access Track Maintenance 1,764

Biggara Recreation Reserve (DSE) 1,045

Provisions and Reserves

Long Service Leave 773,120

Landfill Rehabilitation 200,000

Total 6,529,277



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RECEIVABLES

Rates, Municipal Charge, Waste Management Charge and Waste Collection Charge

The outstanding amount of rates, municipal charge, waste management charge and

waste collection charge at month end were $3,949,880.

The breakdown of rates received for the current month and year to date is shown in

the following table and graph:

Rates, charges and FSPL Debtors Amount Received % Collected Received Collected Balance

Dec-13 Dec-13 YTD YTD Outstanding

$ $ % $ $ $

Levied 2012/13 7,303,608 686,318 9.4% 3,500,333 47.9% 3,803,275

Arrears prior to 2012/13 339,358 11,745 3.5% 192,753 56.8% 146,605

Total Charges 698,063 3,693,085 3,949,880

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

Debtor Balance (Current) Debtor Balance (Arrears)



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Sundry Debtors

The Sundry Debtors outstanding at month end total $247,935.

The variance in Sundry Debtors from the current month to prior months is shown

below:

Sundry Debtors Current 30 Days 60 Days 90+ Days Total

$ $ $ $ $

December 2013 19,353 158,485 30,540 39,557 247,935

November 2013 75,435 6,759 - 35,148 117,343

Variance (56,082) 151,726 30,540 4,409 130,592

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Current 30+ Days 60+ Days 90+ Days

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Current 30+ Days 60+ Days 90+ Days

Note: Debtors in the 30 days column are greater than the November current due to

timing of completing the report caused by office closure.



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Significant debtors (>$1,000) with ageing of greater than 90 days are as follows:

Debtor Amount Description RO Notes

DSE (19583) $8,051.00 NE Bushfire

Camera

Network

JS Final payment on acquittal.

Cudgewa

Football/Netball

Club

$5,000.00 Community

Contribution

JH An additional funding

contribution has been raised

by the community – still to

be paid.

VicRoads (10266) $4,807.00 School

Supervisor

JH For December 2013, invoiced

entered ahead of schedule.

Regional

Development

Victoria (17261)

$4,070.00

Towong

Racecourse

PS

10% balance due when

acquittal report lodged. The

project is not complete and

acquittal will be prepared

once the project is finalised.

Debtor 18925 $4,000.00 Community

Group Loan

JS The long term binding

payment agreement has not

yet been signed. Paying $500

per annum. $500 received

May 2013.

Debtor 17007 $2,950.00 Infringement

Notice

PL Unable to place in debt

collection process as not

allowed as part of

infringement notifications.

Debtor 18781

$1,337.00 Equipment

Loan

JS Agreed (annual) payment

plan. Within payment plan

terms.

Tallangatta Health

Service

$1,010.00 Tip tokens JP Following up on outstanding

statements.



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LOCAL ROADS

Local Roads Capital Works

YTD Actual YTD Budget Annual Budget

$ $ $

402 Survey and Design 39,285 85,000 (45,715) 105,000

410 Road Construction 1 220,176 395,000 (174,824) 570,000

413 Storm Damage 2 39,902 380,000 (340,098) 418,951

416 Sealing 3 8,982 171,000 (162,018) 188,500

417 Resealing - - - 750,000

420 Drainage Construction - 51,500 (51,500) 91,500

421 Digouts 369,893 312,000 57,893 1,075,972

422 Resheeting 33,431 90,000 (56,569) 230,000

432 Footpaths 13,941 - 13,941 30,000

433 Kerb and Channel 23,136 30,000 (6,864) 100,000

450 Bridge Construction 4 919,990 741,077 178,913 2,239,077

Total 1,668,736 2,255,577 (586,841) 5,799,000

Note Variance

Note 1: Timing of budget does not align with works, Georges Creek Road due for

completion in February, remainder of works programmed in March – April.

Note 2: Works relating to the March 2012 event. Expenditure has not been incurred

in line with budget predictions and will occur later in the year.

Note 3: Georges Creek Road commenced in November, these works were budgeted

to be completed earlier in the financial year. Invoice not yet received.

Note 4: Construction began ahead of budget timing.



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Local Roads Maintenance

YTD Actual YTD Budget Annual Budget

$ $ $

301 Inspections 766 - 766 -

302 Survey and Design 14,252 2,502 11,750 5,000

304 Pavement Maintenance 5 41,305 90,000 (48,695) 180,000

306 Grading 6 167,116 240,000 (72,884) 480,000

308 Shoulder Maintenance 31,233 49,998 (18,765) 100,000

310 Drainage Maintenance 75,488 97,500 (22,012) 195,000

312 Call Outs 8,378 6,000 2,378 12,000

313 Storm Damage 12,441 - 12,441 -

324 General Roadside Maintenance 38,798 32,502 6,296 65,000

326 Mowing 663 - 663 -

328 Tree Maintenance 35,635 44,874 (9,239) 89,749

330 F/Path Maintenance 638 4,002 (3,364) 8,000

331 K and C Maintenance 1,560 2,502 (942) 5,000

334 Roadside Treatments - 7,500 (7,500) 15,000

336 Signs Maintenance 5,529 6,000 (471) 12,000

338 Linemarking 256 4,998 (4,742) 10,000

340 Guideposts 3,603 3,498 105 7,000

342 Guardrail - 2,502 (2,502) 5,000

346 Bridge Maintenance 10,688 - 10,688 -

Total 448,349 594,378 (146,029) 1,188,749

Note Variance

Note 5: The Budget is spread evenly throughout the year. The Works Schedule will

increase in the summer months.

Note 6: The timing of works does not align with budget distribution. Increased

works will occur over the summer months.

CR WORTMANN

CR JOYCE

THAT THE FINANCE REPORT BE NOTED.

CARRIED



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9.2 Action Sheet Reports (06/05/0010-EA)

Items requiring action from the 3 December 2013 Council Meeting are attached at

Appendix 2.

CR GADD

CR JOYCE

THAT THE REPORT BE NOTED.

CARRIED

9.3 Council Plan Priorities (07/05/0022-DCCS)

The monthly updates on the 2013-2017 Council Plan priorities are attached at

Appendix 3 for information.

CR SCALES

CR JOYCE


CARRIED

9.4 Performance Reporting Graphs (DCCS)

The Performance Reporting Graphs are attached at Appendix 4 for information.

CR SCALES

CR WORTMANN


CARRIED



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10 Community wellbeing

10.1 Neighbourhood Safer Places (07/01/0123-DTS)


This report was prepared by Mr Paul Leddy, Emergency Management Co-ordinator.



Background:

Council is responsible for identifying potential places as Neighbourhood Safer Places

(NSP’s) within its municipal district. Section 50 G of the CFA Act requires Council to

identify potential NSP locations. The process of NSP identification is ongoing.

The Mitta Valley Sports Complex 3645 Omeo Highway Eskdale 3701 is submitted for

endorsement as a designated NSP. The location has been assessed by the CFA and

has been deemed fully compliant and meets the CFA Fire Rating Criteria (CFA

Assessment No: 1000009595).

The attachment for the proposed NSP is enclosed for the information of Council.

Attached at Appendix 5 is the CFA Assessment together with the supporting

documents in relation to the proposed NSP.

A number of factors are considered when identifying potential NSP locations

(a) The environment surrounding the potential NSP;

(b) What other uses are made of the potential NSP and whether or not those uses

could be inconsistent with its designation as an NSP;

(c) The land ownership and whether there is a clear means for access and egress

to and from the potential NSP;

(d) That the NSP is in close proximity to the population’s centre;

(e) The risks involved in people staying in the area being considered versus

leaving the area and travelling to a nearby urban area; and



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(f) The adequacy of egress routes out of the NSP, including proximity to major

roads and minimal vegetation surrounding the site. Having the capacity of

egress routes to accommodate large numbers of vehicles is a positive factor.

As part of the process Council should assess the site against its Neighbourhood Safer

Places Plan.

The key criteria described in this plan relate to:

1. Consent and right of access – Can Council enter into an arrangement with the

land owner to access the site for use as an NSP?

Completed. Signed letter of consent from the Committee of Management

to Council as non tenant for designation of NSP and public notification in

Victoria Government Gazette has been received.

2. Access and Egress – Do access routes to the proposed NSP allow for the

anticipated potential number of people to move to and from the site and for

CFA and other emergency services to attend?

Consideration has been given to the criteria for Access and Egress and

the site is deemed compliant with the following points:

Maintenance of roads and surrounding areas

Proximity of major road networks

Pedestrian access

Buffer zone

Council’s Road Management Plan.

3. Maintenance of NSP in accordance with CFA assessment – Can Council

maintain the proposed NSP in accordance with the criteria taken into account

by CFA in arriving at its fire rating assessment?

Council will need to monitor vegetation levels around the site and place

any required works within its works program to ensure limits remain

within the assessment criteria.



23


4. Opening of the NSP – Will it be possible and practicable to make the

proposed NSP available for use on a 24 hour basis during the declared fire

danger period.

Access to the site will be available on a 24 hour basis. As the premises

are secured, the Committee of Management will allow access to the

premises as a Neighbourhood Safer Place by providing keys to all locks

to a representative of Council.

5. Defendable space and fire suppression activities – Is the proposed NSP

surrounded by sufficient open space to enable the CFA to conduct asset

protection and fire suppression operations?

The site is well cleared and accessible for this purpose.

6. Defendability of buildings – Are there any building on the site that may be

subject to ember attack and if so can that risk be satisfactorily managed?

Assessed by the CFA to be compliant with the setback distance and

radiant heat measures.

7. Signage – Can appropriate signage be erected at the entry to the proposed

NSP and in the general vicinity?

Yes (appropriate location to be determined on site).

8. Maintenance and maintainability – Is the proposed NSP capable of being

maintained to ensure continuing compliance with the CFA Fire Rating Criteria

and Council’s Neighbourhood Safer Places Plan Criteria?

Yes – refer to comments at criteria 3.

9. Disabled access – Are there means of access for disabled and mobility

impaired persons to the proposed NSP?

Access is available at the site for persons with mobility impairments.

10. Alternative uses of proposed NSP – Can Council manage alternative uses

which may be made of the proposed NSP so as to ensure that those uses will

not compromise its use as an NSP?

Yes as agreed to in a letter of consent and NSP Criteria assessment tool,

as site is not locked and always open.



24


11. Community Communication - Will it be possible to ensure that there will be

good community awareness of the location of the proposed NSP and the risks

associated with its use.

The site is located in a small community where communication about the

proposed NSP can be readily achieved.

A copy of the CFA Assessment Criteria Report includes the CFA radiant heat

guidelines (Appendix 5).

This site has been deemed compliant. Attached at Appendix 5 are the documents

received for perusal by Council.

1 Cover Sheet

2 CFA Neighbourhood Safer Places Assessment Summary Report

3 CFA Assessment Criteria Report

4 Site Map

5 Council NSP Criteria Assessment Tool

6 Inspection Pro Forma

7 Department of Environment and Primary Industries Letter

8 Letter from Committee of Management to Council – Consent to Designation

of premises as NSP – No tenant.

9 Copy of Public Notification in Victoria Government Gazette

10 Liability relating to designated NSP- Extract from CFA Act (Section 50N)

Impact on Council Policy:

The process being undertaken is consistent with Council’s adopted Neighbourhood

Safer Places Plan.

State Government Policy Impacts:

The process is consistent with the intent of

Emergency Services Legislation Amendment Act 2009.

Recommendation 4 from the 2009 Victorian Bushfires Royal Commission.

Budget Impact:

Maintenance requirements are included in Council’s current works program.

Signage at the NSP will be in accordance with Council’s assessment criteria.



25


Risk Assessment:

Advice from the MAV suggest that provided Council follows recommended

procedures developed in response to the outcomes of the Bushfires Royal

Commission and amendments to the CFA Act 1958 that Council would not be liable

for any incident arising out of a person relying on a NSP in the event of a bushfire.

Division 4 of the amended CFA Act 1958 deals with Liability in relation to designated

neighbourhood safer places.

Community Consultation/Responses:

Consultation has taken place with CFA Community Safety Manager Darren Viney and

assessor Mark Williams, Janelle Hunt Coordinator – Bushfire Shelter Options. The

proposal was discussed and supported at the Municipal Fire Prevention Planning

Committee meeting conducted on 13 August 2013.

Discussion/Officers View:

The Mitta Valley Sports Complex 3645 Omeo Highway Eskdale 3701 is submitted to

Council for the purpose of being approved as a designated neighbourhood safer

place.

The site is proposed with protocols of information supplied to Council by the

Department of Environment and Primary Industries.

CR WORTMANN

CR SCALES

THAT THE MITTA VALLEY SPORTS COMPLEX AT 3645 OMEO HIGHWAY,

ESKDALE, BE APPROVED FOR DESIGNATION AS A NEIGHBOURHOOD SAFER

PLACE.

CARRIED



26


11 Asset management

11.1 Works Schedule (DTS)

The works scheduled for the period 9 November 2013 to 3 January 2014 is attached

at Appendix 6 for information.

CR JOYCE

CR GADD


CARRIED



27


12 Land-use planning

12.1 Towong Planning Scheme Amendment C30 – Environmental

Significance Overlay (ESO) (03/02/0038–CEO)


This report was prepared by Mr Simon Hollis, Manager Planning.



Background:

The matter of introducing an expanded Environmental Significance Overlay (ESO)

into the Towong Planning Scheme was initially reported to Council on 2 July 2012. At

that time Council resolved to seek Ministerial authorisation to prepare and exhibit

Amendment C30 to the Towong Planning Scheme.

Amendment C30 proposes to replace the existing ESO with an overlay based on the

Rural Land Mapping Project (RLMP) agricultural quality mapping (Figure 1) and to

revise the schedule to the ESO to update the Environmental Objectives, Statement of

Environmental Significance and Decision Guidelines.



28


Figure 1: Proposed Environmental Significance Overlay

The purpose of the expanded Environmental Significance Overlay (ESO) is to protect

high quality agricultural land within Towong Shire. The intention of Amendment C30

is to ensure that the Towong Planning Scheme can better achieve the objective of

State Planning Policy to protect productive farmland which is of strategic significance

in the local or regional context.

The introduction of an expanded ESO was recommended by the Council adopted

Towong Shire Rural Land Use Study which identified significant shortcomings with the

existing ESO.

Notification and Exhibition

Amendment C30 was formally placed on public exhibition pursuant to Sections 17,

18 and 19 of the Planning and Environment Act 1987 with the notice in the

Government Gazette on 7 March 2013. Direct notification was given to affected

property owners and occupiers. Notice was provided to the prescribed Ministers,

agencies and authorities. Notices also appeared in the following:

Tallangatta Herald – 28 February 2013

Border Mail – 2 March 2013

Government Gazette – 26 July 2013

Corryong Courier – 28 February and 7 March 2013



29


A media release was further issued in the middle of March 2013 and subsequent

public consultation meetings were held at:

Eskdale: 2 April 2013

Bethanga: 3 April 2013

Corryong: 4 and 9 April 2013

Walwa: 4 April 2013

Submissions

Council received fifteen submissions during the exhibition period with one

submission being withdrawn. Responses were received from Goulburn Murray

Water, North East Catchment Management Authority, Environment Protection

Authority, Department of Environment and Primary Industries, VicRoads and North

East Water.

Council considered the submissions to Amendment C30 pursuant to Sections 22 and

23 of the Planning and Environment Act at the 2 July 2013 meeting of Council. At this

meeting it resolved to request the Minister for Planning appoint a Planning Panel

pursuant to Section 153 of the Planning and Environment Act 1987 to provide a

recommendation to Council about Towong Planning Scheme Amendment C30.

In response to the submissions received during the exhibition of the Amendment,

Council also decided at the 2 July 2013 meeting to remove from the exhibited

Schedule to the ESO the requirement for a permit for buildings and works associated

with agriculture.

Panel Hearing and Findings

At the request of Council, the Minister for Planning appointed a single member Panel

to provide a recommendation about Towong Planning Scheme Amendment C30. The

Panel hearing was held on the 16 October 2013. Due to the late withdrawal of a

submission, Council was the only party to formally present to the Hearing, although

one submitter did attend and participate in discussions facilitated by the Panel. The

Panel findings and recommendations have now been presented to Council (Appendix

7).

All written submissions were considered and assessed by the Panel and the Panel is

satisfied that Amendment C30:

Is supported by Council’s adopted ‘Rural Land Use Strategy’ and the preceding

‘Rural Land Mapping Project’;

Will not unreasonably prejudice the plantation forestry industry;

Is supported by, and implements, the relevant sections of the State and Local

Planning Policy Framework;



30


Does not conflict with or duplicate another existing provision in the Towong

Planning Scheme that deals with the same land, use or development.

The Panel also accepted Council’s submission that the use of the Environmental

Significance Overlay in conjunction with the application of the Farming Zone is an

appropriate planning framework to protect high quality agricultural land from

fragmentation and encroachment by inappropriate development. The Panel

supported Council’s desire to apply the Overlay to all of its identified high quality

agricultural land and in doing so achieve consistency with the application of the

Farming Zone throughout the Shire.

In addition, the Panel also supported Council’s proposed post‐exhibition

modification to Schedule 1 of the Environmental Significance Overlay to include a

permit requirement exemption for buildings and works associated with agriculture.

The Panel was satisfied that the inclusion of the exemption will not compromise the

intent and objectives of the Overlay and will negate an unnecessary administrative

burden for both landowners and Council officers. Further, the Panel does not

consider the proposed modification substantially transforms the Amendment to such

a degree that warrants re‐exhibition.

The Panel has recommended that Amendment C30 to the Towong Planning Scheme

be adopted subject to the following Council suggested modifications (Appendix 7)

1. Amend the exhibited Environmental Significance Overlay maps to exclude the

following facilities and or sites:

North East Water’s water and wastewater facilities;

Corryong Airport;

Land recently rezoned from the Farming Zone to the Mixed Use Zone,

north of Corryong including:

o 979 Murray Valley Highway, Corryong (Lot 1 and Lot 2 PS

329795);

o 989 Murray Valley Highway, Corryong (Lot 1 T245326 and

CP174178);

o 1011 Murray Valley Highway, Corryong (Lot 1 TP377632).

2. Amend the exhibited Schedule 1 to the Environmental Significance Overlay

to include a permit requirement exemption for “buildings and works

associated with agriculture”.



31



The proposed change to the Towong Planning Scheme implements the

recommendations of the Council adopted Towong Shire Rural Land Use Study and

the current Council Plan.


The Amendment seeks to ensure the Towong Planning Scheme can better achieve

the objective of State Planning Policy at Clause 14.0 to protect productive farmland

which is of strategic significance in the local or regional context.

In accordance with State Planning Policy at Clause 14.01-1, the amendment seeks to

utilise available information to identify areas of productive agricultural land and take

into consideration local issues and characteristics in the assessment of agricultural

quality and productivity.

The amendment was prepared in accordance with Minister’s Direction No 11

‘Strategic Assessment of Amendments’, the Practice Note ‘Strategic Assessment

Guidelines for Planning Scheme Amendments’ (revised August 2004).

Budget Impact:

The cost associated with the Amendment has been budgeted for.


Extensive community consultation was undertaken as part of the Rural Land Use

Study process and protection of high quality agricultural land to support continued

agricultural investment and the productive resource base for future generations was

a consistent theme in the community feedback through this process.

The community has had the opportunity to formally comment as part of the

amendment process pursuant to Sections 17, 18 and 19 of the Planning and

Environment Act 1987 and via the formal Planning Panel process. Community

responses were considered by Council at the 2 July 2013 meeting of Council and by

the Planning Panel.



32



It is the officer’s view that the use of the Rural Land Mapping Project (RLMP)

agricultural quality mapping presents a cost effective opportunity for Council to

achieve a more complete and accurate ESO across Towong Shire. The ESO is

intended to recognise the finite nature of high quality agricultural land within the

municipality and protect such land because of its versatility, productivity and ability

to sustain a wide range of agricultural uses. The deployment of the ESO using RLMP

mapping is a key recommendation of the Towong Shire Rural Land Use Study and

implements the 2009-2013 Council Plan and Municipal Strategic Statement.

Amendment C30 also seeks to ensure that the Towong Planning Scheme can better

achieve the objective of State Planning Policy which is to protect productive farmland

which is of strategic significance in the local or regional context.

In line with the advice from the Planning Panel, Amendment C30 should be adopted

by Council and Ministerial approval for the Amendment sought with the following

minor modifications (Appendix 8):

1. The exhibited Environmental Significance Overlay maps be changed to

exclude the

ESO from the following sites:

North East Water’s water and waste water facilities;

Corryong Airport;

Land recently rezoned from the Farming Zone to the Mixed Use Zone,

north of Corryong including:

o 979 Murray Valley Highway, Corryong (Lot 1 and Lot 2 PS

329795);

o 989 Murray Valley Highway, Corryong (Lot 1 T245326 and

CP174178);

o 1011 Murray Valley Highway, Corryong (Lot 1 TP377632)

2. Amend the exhibited Schedule 1 to the Environmental Significance Overlay

to include a permit requirement exemption for “buildings and works

associated with agriculture” as reflected in the Panel Recommended version

of the Overlay.



33


CR WORTMANN

CR JOYCE

THAT COUNCIL RESOLVE TO:

1. ADOPT AMENDMENT C30 TO THE TOWONG PLANNING SCHEME

PURSUANT TO SECTION 29 OF THE PLANNING AND ENVIRONMENT ACT

AS EXHIBITED AND INCLUDING THE FOLLOWING MODIFICATIONS

ENDORSED BY THE PLANNING PANEL (APPENDIX 8):

a) THE EXHIBITED ENVIRONMENTAL SIGNIFICANCE OVERLAY MAPS BE

CHANGED TO EXCLUDE THE ESO FROM THE FOLLOWING SITES:

NORTH EAST WATER’S WATER AND WASTE WATER FACILITIES;

CORRYONG AIRPORT;

LAND RECENTLY REZONED FROM THE FARMING ZONE TO THE

MIXED USE ZONE, NORTH OF CORRYONG INCLUDING:

o 979 MURRAY VALLEY HIGHWAY, CORRYONG (LOT 1 AND

LOT 2 PS 329795);

o 989 MURRAY VALLEY HIGHWAY, CORRYONG (LOT 1

T245326 AND CP174178);

o 1011 MURRAY VALLEY HIGHWAY, CORRYONG (LOT 1

TP377632)

b) AMEND THE EXHIBITED SCHEDULE 1 TO THE ENVIRONMENTAL

SIGNIFICANCE OVERLAY TO INCLUDE A PERMIT REQUIREMENT

EXEMPTION FOR BUILDINGS AND WORKS ASSOCIATED WITH

AGRICULTURE.

2. REQUEST MINISTERIAL APPROVAL OF AMENDMENT C30 PURSUANT TO

SECTION 31 OF THE PLANNING AND ENVIRONMENT ACT 1987.

CARRIED

13 Environmental sustainability

No report.

14 Economic and tourism development

No report.



34


15 Councillor reports

15.1 Bellbridge Australia Day Community Breakfast Awards (Cr

Joyce)

Verbal report

15.2 Walwa Australia Day Community Breakfast Awards (Cr Gadd)

Verbal report

15.3 Corryong Australia Day Community Breakfast Awards (Cr

Fraser)

Verbal report

15.4 Mitta Valley Australia Day Community Breakfast Awards (Cr

Scales)

Verbal report

15.5 Alleged Planning Scheme Breach - Corryong (Cr Fraser)

Verbal report

15.6 Dart Mining Community Meeting (Cr Wortmann)

Verbal report



35


16 Urgent business

CR JOYCE

CR SCALES

THAT TWO ITEMS OF URGENT BUSINESS BE ADMITTED IN RELATION TO:

PROCUREMENT OF FUEL PRODUCTS; AND

BANKING SERVICES REVIEW.

CARRIED

16.1 Procurement of Fuel Products (07/05/0007-CEO)


This report was prepared by Mr Christopher Nuck, Business Improvement Manager.



Background/History:

Each year Towong Shire Council uses a significant volume of both diesel and

unleaded fuel for the operation of Council’s light fleet and plant.

The purpose of this report is to highlight potential savings in the procurement of

fuel. The report has been prepared following an analysis of:

Market rates (and identifying the best contract and fuel card makeup possible)

Fuel tax credits

Council has the following volumes of active cards in the fleet with most of the fleet

having a card for each provider;

Caltex: 54 fuel cards

BP: 44 fuel cards

Table 1 shows the volume of diesel and unleaded petroleum purchased through fuel

cards in financial year 2012-13 along with the level of spend.



36


Table 1: Fuel Card Expenditure 2012-13

In addition Council

also purchased

60,000 litres of bulk

diesel from Caltex.

The existing fuel card supply is sourced predominantly from service stations within

the Shire boundaries with 88.6% of total fuel spend being with Caltex and BP service

stations in Corryong and Tallangatta. Table 2 shows the distribution of fuel

expenditure with service stations located within the Shire.

Table 2: Local Fuel Expenditure 2012-13

Station + Product

Quantity

(ltrs)

Spend

($)

Average Unit

Price % of Total Spend

Diesel

Caltex Tallangatta

Diesel 64,430 $98,359 $1.5266 31.4%

Caltex Corryong Diesel 65,589 $100,583 $1.5335 32.1%

BP Tallangatta Diesel 17,523 $26,612 $1.5187 8.5%

BP Corryong Diesel 106 $160 $1.5049 0.1%

Total Diesel 147,648 $225,714 $1.5287 72%

ULP

Caltex Tallangatta ULP 10,715 $15,885 $1.4825 5.1%

Caltex Corryong ULP 13,661 $20,385 $1.4922 6.5%

BP Tallangatta ULP 9,550 $13,982 $1.4641 4.5%

BP Corryong ULP 921 $1,366 $1.4827 0.4%

Product 2012-13

Quantity

2012-13 Spend

Gas (ltrs) 2,815 ltrs $2,595

Diesel (ltrs) 150,084 ltrs $229,299

ULP (ltrs) 53,309 ltrs $72,575

Total 206,208 ltrs $304,469



37


Total ULP 34,847 $51,618 $1.4813 16.5%

Total Diesel + ULP 182,496 $277,332 $1.5197 88.6%

Table 2 shows that currently 75.2% of fuel card spend is with Caltex compared to BP

with 13.5%.

The arrangement for these fuel cards is currently through a Procurement Australia

Contract with the following applicable rates.

Table 3: Current Pump Discount an Rates

Product BP Rate Caltex Rate

Discount

on

pump

Gas (ltrs) $0.00 $0.00

Diesel (ltrs) $0.02 $0.02

Premium ULP (ltrs) $0.02 $0.02

ULP (ltrs) $0.02 $0.02

Fuel Card (Card / Month) $2.20 $0.00

Fuel Card (Card/Month) *Diesel

Rebate $0.00 $7.70

Transactions $0.00 $0.00

Comparison of potential contracts

There are a number of options available and these are summarised in table 4. The

summary of the various options is obtained by taking the average price paid for each

product per litre then applying the discount to obtain a pump price from which all

other prices were calculated from. It should be noted that given the discount

method the pump price has no bearing on the level of savings whatsoever, only on

the total cost.



38


There is also an assumption within that the pump prices between the two suppliers

are equal across the year. That is, we have assumed an open market where suppliers

are well informed of the local market prices.

Option 1. MAV Fuel Tender maintaining the current mixed supply from BP and

Caltex.

Option 2. MAV Fuel Tender through Caltex only – means decommissioning the

existing

BP Cards.

Option 3. Vic State Contract maintaining the current mixed supply.

Option 4. Vic State Contract through Caltex only – means decommissioning the

existing BP cards. Represents a saving of $8,701.

Table 4 – Supplier Comparisons

Product

Total Cost

- Current

State

Total -

Option 1 -

MAV +

Current

Suppliers

Total -

Option 2 -

MAV +

Caltex

Only

Total -

Option 3 -

Vic State +

Current

Suppliers

Total -

Option 4

- Vic

State +

Caltex

Only

Gas (ltrs) $2,595 $2,298 $2,544 $2,572 $2,615

Diesel (ltrs) $229,299 $223,525 $223,525 $223,851 $223,615

Premium ULP

(ltrs) $6,241 $6,088 $6,212 $6,164 $6,173

ULP (ltrs) $72,575 $71,279 $72,373 $71,664 $71,877

Fuel Card $2,270 $2,323 $0 $1,162 $0

Transactions $0 $942 $1,197 $157 $0

Total $312,980 $306,454 $305,851 $305,570 $304,279



39


Bulk Fuel

Due to issues with ground water intrusion into the underground tanks the bulk fuel

tanks at both the Corryong and Tallangatta Depots have been decommissioned. The

only operational bulk fuel tank currently is the diesel storage at the Corryong Depot.

Table 5 – Council own the following bulk storage tanks;

Fuel Location Capacity Annual Use

(est)

DSL* Tallangatta Depot, Wagara St,

Tallangatta

4,500

litres

30,000 litres

DSL Corryong Depot, Sugarloaf Rd,

Corryong

11,500

litres

30,000 litres

UPL* Corryong Depot, Sugarloaf Rd,

Corryong

4,200

litres

200 litres

* Decommissioned

As bulk fuel supplies are being phased out no work has been done to provide a

detailed analysis or comparison of the options. We do have access to various bulk

fuel discounts via both the MAV and State Government Contract options however

due to the differing pricing mechanisms, fluctuating prices, tight margins and the

absence of delivery costs included in the available contract details, it is difficult to

compare the various bulk fuel options with confidence.

Fuel Tax Credits

The ATO offer tax credits in cents per litre for particular fuel uses. In particular

relevance to Council are credits for diesel consumption used off road in construction,

earth moving, road maintenance, operation of plant including bulldozers, graders,

scrapers, backhoes as well as chainsaws, lawnmowers, trimmers and edger’s.

Through our analysis we were able to identify an area where the correct tax rebate

was not being claimed from the ATO. Table 6 below shows the additional amount

claimed back.



40


Table 6 – Fuel Tax Credits Claimed

Adjustment Litres Eligible

(90%)

Rate

Used

Rate

Applicable

Rate

Variance

Claim Adj

Sep-11 20205 18184.5 0.190715 0.31933 0.128615 $2,338.80

Dec-11 20205 18184.5 0.190715 0.31933 0.128615 $2,338.80

Mar-12 10100 9090 0.1504 0.31933 0.16893 $1,535.57

Jun-12 20500 18450 0.1504 0.31933 0.16893 $3,116.76

Sep-12 9900 8910 0.1264 0.31933 0.19293 $1,719.01

Dec-12 11499 10349.1 0.1264 0.31933 0.19293 $1,996.65

Mar-13 0 0 0.1264 0.31933 0.19293 $0.00

Jun-13 7900 7110 0 0.31933 0.31933 $2,270.44

100309 $15,316.03


The procurement process is compliant with the Towong Shire Council Procurement

policy requirements.


The procurement of fuels is above the Local Government Act 1989 threshold

requiring Council to publicly tender for the supply. Procuring through the State

Government Purchase Contract negates this requirement.

The procurement process is compliant with the Local Government Act 1989 as the

overall spend is within the limits requiring public tender. Despite this the final

recommendation to move to a State Government Purchase Contract is consistent

with State Department internal policies to utilise these contracts.



41


Budget Impact:

Savings directly from change of supplier and consolidation of accounts to Caltex are

$8,701 per annum based on historical fuel usage.

Savings directly from additional fuel tax rebate $15,316 as a one off and

approximately half of this figure annually dependent on the final level of use.

Risk Assessment:

Risk Type The risk (what can happen and

how) Risk Mitigation

Financial

Not moving to a single supplier

perpetuates the current complexity

experiences when dealing with

multiple suppliers.

Reputation Moving the majority of fuel

purchases to a single supplier in

small country towns may have the

appearance of Council preferring

one supplier over another.

The procurement process is

robust, compliant with the

applicable policy and

represents best value to the

rate payer.

People Where a Caltex service station is

not available there could be issues

with officers and

Councillors having access to fuel

supplies.

The State Contract is a panel

arrangement that does not

preclude the Council from

using a BP or even a Shell fuel

card where the need can be

reasonably justified.

See below on Caltex Opening

Hours.



42


Caltex Opening Hours

Given the opening hours (shown below) for the local Caltex service stations cover the

normal operating hours of Council the risk to fuel supply generally is considered

minimal.

Caltex Tallangatta: 7am to 6pm Mon-Fri; 8am to 3pm Sat-Sun

Caltex Corryong: 7am to 7:30pm Mon-Fri; 7:30am to 7pm Sat-Sun

It should also be noted that in an emergency situation where the local Caltex Service

station is not available and the BP is there is nothing precluding Council from

procuring fuels from BP at the standard pump rates in an extraordinary situation.


No Community consultation has been undertaken.


It is the officer’s recommendation that Council move to the Victorian State

Government Contract with Caltex.

Benefits include;

Best pricing

No card or transaction fees

Moving to one supplier has administrative benefits – fewer invoices, easier to

manage and monitor fuel use, one set of data

Fuel used to run Council vehicles and plant is one of the most significant expenses

within the annual budget. Given the competitiveness of pricing in this marketplace

achieving a saving of over 3% on the price side is significant.

There are also administration and reporting benefits from moving to a single supplier

in addition to selecting the supplier offering the best value in cost terms to Council.



43


CR GADD

CR JOYCE

THAT:

1. COUNCIL MOVE TO THE VICTORIAN STATE GOVERNMENT CONTRACT

WITH CALTEX; AND

2. WHERE DEEMED APPROPRIATE BY THE CHIEF EXECUTIVE OFFICER BP

FUEL CARDS BE RETAINED FOR CERTAIN VEHICLES FOR OPERATIONAL

PURPOSES.

CARRIED

16.2 Banking Services Review (06/02/0021-CEO)


This report was prepared by Mr Christopher Nuck, Business Improvement Manager.



Background/History:

Banking services for Council are currently provided by the ANZ Bank. This

relationship has been in place for a number of years and a summary of some of the

services provided is provided below:

Merchant Banking

BPAY

PostBillPay (provided through Australia Post)

Transaction Banking (ANZ Transactive)

Bank Overdraft

Cheque and Deposit Accounts

The diagram below shows the current account structure.



44


Source: ANZ Banking Review December 2013

The annual cost of the above services was $30,239 in 2012-13.

Figure 1 below shows a breakdown of the fees paid by service for the 2012-13

financial year.

The chart shows that the highest cost areas for banking services are related to the

receipt of customer funds predominantly for rates payments with merchant charges,

BPAY charges and PostBillPay making up 77% of the cost.



45


Figure 2 (on the following page) shows a comparison of the volume of funds

received through each customer payment channel to illustrate the variance in cost to

Council for the various payment options.

It is noteworthy that despite the high proportion of funds received being in the form

of cash and cheques there is no additional banking charges for the processing of

these channels.

There are however significant administration costs associated with processing and

reconciling cash and cheque payments when compared to other channels.



46


Method

From the initial audit of the existing banking services and fees the following steps

were identified as the best path to reducing the overall cost of the service:

1. Market comparison of existing banking fees with the following;

a) Benchmarking the rates of a nearby Council

b) ANZ Service Review

c) State Procurement Contract (SPC)

2. Identification of the most efficient payment channels for customer payments

Market Comparison of the Existing Banking Fees

Using the data from the audit we spoke with a number of councils and banks to

identify the market range for merchant and BPAY fees (which are the biggest

component of cost that we could affect on the banking side).

The following table is a full listing of the comparative final costs for each supplier.



47


Table 1. Comparison of Final Banking Costs

Description

2012-13

Fees

Benchmarked

Cost

ANZ

Review

Cost

SPC

Total

Cost

BPAY $8,474 $1,716 $3,869 $2,009

Merchant Service

Facility

EFTPOS/Credit Card $7,726 $2,825 $4,022 $1,627

Postbill Pay $7,117 $7,117 $7,078 $7,117

Transaction Banking

- Creditors, Payroll,

Statement Items $2,796 $690 $2,796 $196

Account Servicing

Fee $1,500 $500 $1,500 $0

Overdraft Facility $1,250 $1,250 $0 $1,250

EFTPOS Terminal

Rental $899 $468 $719 $432

ANZ Corporate Card $225 $225 $0

Bank Guarantee in

Favour of Minister of

Agriculture $140 $140 $140 $140

Bank Guarantee in

Favour of Minister of

Resources $113 $113 $113 $113

Cash & Cheque

Deposits $0 $0 $0 $869

Cheques Paid $0 $0 $0 $17

Total $30,239 $15,043 $20,236 $13,769



48


From the comparison of market rates the State Government Procurement Contract

(SPC), through Westpac, is the cheapest overall option for Council representing an

anticipated saving of $16,470 per annum. The SPC is also $6,467 lower than the ANZ

Review offer.

The difference is predominantly due to the significantly lower merchant services rates

and higher rates for ANZ transaction banking.

Some notable points on the comparison include:

The ANZ Bank had not reviewed the banking services and fees for some time

which led to a situation where the council was paying well above the market

rates.

The ANZ are able to compete more closely on the transaction banking fees by

migrating the council to another system for payments processing. This is

however not possible at this stage due to daily payment limits on this system

and so the option has not been included in the analysis.

Complete data for the breakdown of BPAY payments processed from credit

accounts was not available - to calculate the volume of BPAY payments from

credit accounts we worked backwards from the total payments, total fees and

the transaction fee - all of which are known.

Note: While PostBillPay is processed through the standard bank account this service

is established under a separate agreement directly between Towong Shire Council

and Australia Post. As such, the banking service provider has no influence on these

rates and we found no opportunity to reduce the costs from the current levels under

the existing agreement.

Current Supplier Service Review

A request was made to the ANZ Bank to conduct a full service review of the Councils

banking services at the beginning of the banking analysis exercise back in September

2013. This was provided in December 2013.

The pricing provided in the ANZ review has been applied in the market analysis

above under the column ANZ Review Cost.

Customer Payment Channels

The customer payment channel is the term used to describe the payment method

used by the rate payer to pay council charges such as rates and other fees. There are

differences in the costs for the various payment channel options provided to rate



49


payers and there are also benefits from moving high paying fees to the most efficient

payment channel.

To illustrate the differences a flow chart 'Customer Payment Channels $500

Transaction' that shows the variety of payment methods with the end cost of the fees

in dollar terms will be presented at the meeting. Highlighted is the BPay channel

that is the most efficient in terms of cost and administration.

Surcharge on Customer Payments

A commonly employed strategy for directing customers to pay through a more cost

effective channel or to recoup the expenses incurred when customers use the higher

cost channel is to place a surcharge on these transactions.

This can be in the form of a percentage fee equivalent to or just above the value or a

fixed charge.

Following are the payment channels that we could apply a surcharge to with minor

adjustments to the process.

Modelled Revenue Surcharge

Options

Description Count

2012-13

Transaction

Value

0.25%

Surcharge

$2 Transaction

Surcharge

Merchant Service

Facility

EFTPOS/Credit

Card 1157 $513,617 $1,284 $2,314

Postbill Pay 2892 $1,415,543 $3,539 $5,784

Total 4049 $1,929,160 $4,823 $8,098

The above modelled surcharge revenue is an estimate of the level of additional

revenue raised from a surcharge based on the 2012-13 financial year.

Applying a surcharge to the PostBillPay payment channel requires setup with the

Australia PostBillPay Agency. Details of the requirements have been requested from

Australia Post and we are currently awaiting a response.



50


For over the counter card transactions the fee would need to be added to the

customer charge through the terminal at the time of processing. The process and

steps for doing this are to be formulated but it should be noted that the onus of

adding the charge will be on the customer service staff member.

Any such surcharge would also need to be accounted for in Lynx correctly so as not

to create reconciliation issues where a customer is credited with the additional

payment onto their whole rates bill.


Towong Shire Council Investment Policy, Ref 10/01/0004, 10th October 2013 (refer to

Section 2).

'Council shall only invest funds in short term investment products with a credit

rating of A-2 or higher. For long term investments, Council will only invest in products

with a rating of BBB+ or higher.'

Given there is likely to be significant working capital, Council’s operating bank

accounts should be with an institution that is consistent with the requirements of the

investment policy. All of the major Australian banks are currently compliant.


The procurement process is compliant with the Local Government Act 1989 as the

overall spend is within the limits requiring public tender. Despite this the final

recommendation to move to a State Government Purchase Contract is consistent

with State Department internal policies to utilise these contracts.

Budget Impact:

Westpac have agreed to waive all of the standard implementation costs associated

with a bank migration. Any internal costs of the move will be borne by Council, these

include:

Staff time in setup, training and updating processes.

File format modification to suit the Lynx finance system. The ABA file

exported for creditors and payroll batch payments are standard and should

require only minor changes. It is likely that the BPAY receivables file format

will be different - Lynx does accept a variety of file formats and we have asked

for a test file from Westpac to run through the system.



51


The move however will benefit the Council budget by approximately $16,000

annually. As a recurring benefit this represents significant value for Council.

Risk Assessment:

Risk

Type

The risk (what can happen

and how) Risk Mitigation

Financial Additional implementation costs

above the expected internal costs.

Westpac have confirmed a waiver of

implementation costs for all standard

products which covers Council’s

requirements. The remaining risk is

outlined above in the budget

implications as being related to the

BPAY receivables reconciliation file.

Financial

Not migrating banks leads to an

additional recurring cost to the

Council budget when compared to

moving of $6,467 annually

(compared to the ANZ Review

offer).

People

Moving banks will lead to some

changes in existing processes in

particular creditors and payroll

processing and connections with

Lynx for reconciliations.

Westpac to provide appropriate

training. Corporate Services Manager

to update existing processes and

work with staff and Westpac to

implement these processes.

Reputation

ANZ may close down or reduce the

operation of local agencies citing

the council banking move as a

reason

The Council business from a banking

side would move to the post office

for deposits of cash and cheques. All

other business with ANZ with the

business banking division based

outside Towong Shire.

Reputation

Council could be seen to not be

supporting a bank that provides

services locally

The Council will still be depositing

cash and cheques locally through the

post offices and a Westpac Agency in

Corryong.

Reputation

Customers may have Council’s

payment details setup in finance or

banking platforms - will these need

to be changed.

For anyone paying through BPAY or

PostBillPay the details will not

change. The payment information

can be migrated to the new service

provider. This will cover ratepayers

and negate the requirement to

update the rates notice. Where an

entity pays Towong Shire via EFT the

new bank details will need to be

provided. The Council can keep the



52


current ANZ accounts open for a

period while they change over to

Westpac.


No community consultation has been undertaken as part of this process.


It is the officer’s recommendation that Council move banking services away from

ANZ to Westpac under the State Government Procurement Contract.

The recommendation is based in the difference in cost for an equivalent level of

service and is consistent with Towong Shire Council’s ongoing work to improve

business efficiency and reduce costs where possible without impacting the service

level.

Serious consideration should also be given to Council’s position on adding a

surcharge to the more expensive payment channels where this can be done

efficiently and managed effectively.

CR WORTMANN

CR JOYCE

1. THAT THE COUNCIL COMMENCE A MIGRATION OF BANKING SERVICES

FROM ANZ TO WESTPAC UNDER THE STATE GOVERNMENT

PROCUREMENT CONTRACT; AND

2. A REPORT BE PROVIDED TO COUNCIL DURING THE BUDGET PROCESS IN

RELATION TO THE INTRODUCTION OF A SURCHARGE ON THE MORE

EXPENSIVE PAYMENT CHANNELS.

CARRIED



53


17 Committee minutes

17.1 Audit Committee (07/07/0010-CEO)

The minutes of the meetings held on 21 October 2013 (confirmed) and 9 December

2013 (unconfirmed) are attached at Appendix 9 for information.

Recommendations from the 21 October 2013 meeting are tabled below:

Final Management Letter

MR FAGENCE

CR FRASER

THAT:

1. THE VAGO RISK RATING OF THE ISSUE BE INCLUDED FOR FUTURE REPORTS;

AND

2. THE REPORT BE NOTED.

CARRIED

Internal Audit Plan

CR FRASER

MR HAYSEY

THAT:

1. AUDIT RECOMMENDATIONS AND ACTION TAKEN STATUS BE PRESENTED

AT FUTURE MEETINGS;

2. THE INTERNAL AUDIT PLAN AND RMSAP BE WORKSHOPPED WITH

COUNCIL WITHIN FOUR MONTHS (FEBRUARY 2014); AND


CARRIED



54


Risk Management Strategy and Action Plan

MR FAGENCE

MR HAYSEY

THAT:

1. THE INTERNAL AUDIT PLAN AND RMSAP BE WORKSHOPPED WITH

COUNCIL WITHIN FOUR MONTHS (FEBRUARY 2014);

2. THE NEW COUNCIL PLAN PRIORITIES REPORT FORMAT PRESENTED BY

MANAGEMENT IS AN EASY TO READ, USER FRIENDLY FORMAT. THAT THIS

REPORT BE USED TO INFORM THE RMSAP AND INTERNAL AUDIT PLAN;

AND


CARRIED

Tenders Underway or Awarded

MR HAYSEY

MR FAGENCE

THAT:

1. AN ATTESTATION OF COMPLIANCE WITH COUNCIL POLICY BE MADE BY

MANAGEMENT EACH TIME A TENDER IS AWARDED;

2. THE TENDER PROCESS BE PRESENTED TO THE AUDIT COMMITTEE BY JUNE

2014; AND

3. THAT THE REPORT BE NOTED.

CARRIED



55


Review of the Charter

MR FAGENCE

CR FRASER

THAT THE AUDIT COMMITTEE RECOMMENDS TO THE COUNCIL THE

FOLLOWING CHANGES TO THE CHARTER BE MADE:

CONSOLIDATION OF ROLES AND RESPONSIBILITY HEADINGS:

o FINANCIAL REPORT AND EXTERNAL AUDIT

o INTERNAL CONTROL AND INTERNAL AUDIT

o REPORTING RESPONSIBILITIES AND OTHER RESPONSIBILITIES

CARRIED

A copy of the Charter is attached at Appendix 10.

General Business

MR HAYSEY

MR FAGENCE

THAT THANKS BE GIVEN TO THE DCCS, MR DAVE BARRY, FOR HIS EFFORTS WITH

THE AUDIT COMMITTEE.

CARRIED



56


Recommendations from the 9 December 2013 meeting are tabled below

Internal Audit Plan

CR FRASER OAM

MR HAYSEY

THAT:

1. THE ACTION PLANS BE REVIEWED AND PRIORITISED TO PROVIDE REALISTIC

TARGETS FOR THE ECHELON SAFETY AUDIT (JANUARY 2012) AND THE

SWIMMING POOLS SAFETY AUDIT (2011);

2. COUNCIL NEEDS TO BE AWARE THAT RISK MANAGEMENT MUST BE A HIGH

PRIORITY WITH APPROPRIATE TIMEFRAMES FOR WORK TO BE DONE. THE

IDENTIFIED HIGH PRIORITY RISKS FROM THE AUDITS NEED TO BE

ADDRESSED IN A TIMELY FASHION; AND

3. THE REPORTS BE NOTED AND CONTINUE TO BE PROVIDED.

CARRIED

Council Policies for Review

CR FRASER OAM

MR HAYSEY

THAT THE AUDIT COMMITTEE CONSIDER THE POLICIES AND PROVIDE ANY

FEEDBACK OR RECOMMENDATIONS FOR ALTERATION TO COUNCIL.

THE AUDIT COMMITTEE HAS REVIEWED THE FOLLOWING POLICIES SINCE

OCTOBER 2013:

COMPUTER USE

DISABILITY ACCESS

EMPLOYEE CODE OF CONDUCT

FRAUD AND CORRUPT CONDUCT

FRAUD, CORRUPT CONDUCT AND CONFLICT OF INTEREST REPORTING

PROCEDURE

PROTECTED DISCLOSURE, AND

SOCIAL MEDIA

CARRIED



57


Annual Self Assessment

MR FAGENCE

MR HAYSEY

THAT:

1. THE ANNUAL SELF ASSESSMENT BE NOTED. AMENDMENTS TO BE MADE

FOLLOWING RETURN OF OUTSTANDING EVALUATION FORMS; AND

2. THE ANNUAL SELF ASSESSMENT BE PROVIDED TO COUNCIL AS PART OF

ORGANISATIONAL IMPROVEMENT SECTION OF THE AGENDA IN FEBRUARY

2014.

CARRIED

CR GADD

CR SCALES

THAT THE MINUTES OF THE MEETINGS HELD ON 21 OCTOBER 2013

(CONFIRMED) AND 9 DECEMBER 2013 (UNCONFIRMED) BE NOTED AND THE

RECOMMENDATIONS MADE BE ADOPTED.

CARRIED

17.2 Lake Hume Land and On-Water Management Plan CRG

(07/01/0121-Cr Wortmann)

The unconfirmed minutes of the meeting held on 4 October 2013 are attached at


CR JOYCE

CR GADD

THAT THE UNCONFIRMED LAKE HUME LAND AND ON-WATER MANAGEMENT

PLAN MINUTES BE NOTED.

CARRIED



58


17.3 Murray Darling Association (07/01/001-Cr Wortmann)

The unconfirmed minutes of the meeting held on 15 November 2013 are attached at


CR WORTMANN

CR SCALES

THAT THE UNCONFIRMED MURRAY DARLING ASSOCIATION MINUTES BE

NOTED.

CARRIED

17.4 Tourism North East (05/02/0153-CEO)

The unconfirmed minutes of the meeting held on 22 November 2013 are attached at


CR WORTMANN

CR GADD

THAT THE UNCONFIRMED TOURISM NORTH EAST MINUTES BE NOTED.

CARRIED

17.5 MAV Representatives, Mayors and CEO’s Forum (07/01/0006-

Mayor)

The unconfirmed minutes of the meeting held on 5 December 2013 are attached at


CR JOYCE

CR GADD

THAT THE UNCONFIRMED MAV REPRESENTATIVES, MAYORS AND CEO’S

FORUM MINUTES BE NOTED.

CARRIED



59


17.6 NevRwaste (07/01/0050-Cr Joyce)



CR WORTMANN

CR JOYCE

THAT THE UNCONFIRMED NEVRWASTE MINUTES BE NOTED.

CARRIED

17.7 Rural Councils Victoria (07/01/0137-CEO)



CR GADD

CR WORTMANN

THAT THE UNCONFIRMED RURAL COUNCILS VICTORIA EXECUTIVE

COMMITTEE MINUTES BE NOTED.

CARRIED

J Heritage left the Council Chamber at 11.30 am

J Heritage returned to the Council Chamber at 11.31 am



60


18 Occupational health and safety

18.1 OHS Committee (06/04/0212-DCCS)

The minutes of the meetings held on 5 December 2013 (confirmed) and 9 January

2014 (unconfirmed) are attached at Appendix 17 for information.

CR WORTMANN

CR GADD

THE MINUTES OF THE MEETINGS HELD ON 5 DECEMBER 2013 (CONFIRMED)

AND 9 JANUARY 2014 (UNCONFIRMED) BE NOTED.

CARRIED



61


19 Council policies (10/01/0007-CEO)

The following policies were tabled for review at the 3 December 2013 Council

meeting and are presented at Appendix 18 for adoption. Please note that

recommended changes are shown in red.

Conflict of Interest Guidelines Planning Staff

Tree

CR GADD

CR JOYCE

THAT THE FOLLOWING POLICIES AS AMENDED BE ADOPTED:

CONFLICT OF INTEREST GUIDELINES PLANNING STAFF

TREE

CARRIED

At the 3 December 2013 meeting the Whistleblower Protection policy was also

circulated for review.

The Whistleblowers Protection Act 2001 has been replaced with the Protected

Disclosure Act 2012 and this means that the ‘Protected Disclosure’ policy that was

adopted by Council at the 3 December 2013 meeting replaces the Whistleblowers

policy that was circulated with the December minutes.

The following policy is attached at Appendix 19 for review. Councillors are requested

to provide feedback on the policy to the Director Community and Corporate Services

by 4 March 2014.

OH and S Committee Constitution (DCCS)

20 Sealing of documents

Nil.



62


21 Confidential

In accordance with S77(2) information is ‘confidential information” if:

(a) the information was provided to the Council or a special committee in relation

to a matter considered by the Council or special committee at a meeting closed to

members of the public and the Council or special committee has not passed a

resolution that the information is not confidential; or

(b) the information has been designated as confidential information by a

resolution of the Council or a special committee which specifies the relevant ground

or grounds applying under section 89(2) and the Council or special committee has

not passed a resolution that the information is not confidential; or

(c) subject to sub-section (3), the information has been designated in writing as

confidential information by the Chief Executive Officer specifying the relevant ground

or grounds applying under section 89(2) and the Council has not passed a resolution

that the information is not confidential.

In accordance with Section 89(2) and 89(3) of the Local Government Act 1989,

(2) A Council or special committee may resolve that the meeting be closed to

members of the public if the meeting is discussing any of the following—

(a) personnel matters;

(b) the personal hardship of any resident or ratepayer;

(c) industrial matters;

(d) contractual matters;

(e) proposed developments;

(f) legal advice;

(g) matters affecting the security of Council property;

(h) any other matter which the Council or special committee considers would

prejudice the Council or any person;

(i) a resolution to close the meeting to members of the public.

(3) If a Council or special committee resolves to close a meeting to members of

the public the reason must be recorded in the minutes of the meeting



63


CR GADD

CR JOYCE

THAT THE MEETING BE CLOSED TO THE PUBLIC TO CONSIDER INFORMATION

CONSIDERED UNDER SECTION 89(2)(h) OF THE LOCAL GOVERNMENT ACT TO

BE CONFIDENTIAL THE TIME BEING 11.37 AM.

CARRIED

CR GADD

CR JOYCE

THAT THE MEETING BE REOPENED TO THE PUBLIC, THE TIME BEING 11.50 AM.

CARRIED

21.1 Consideration of Tender – Replacement of 2001 Caterpillar

140H Grader Contract No. 1407/0905 (10/02/0008-DTS)

CR SCALES

CR WORTMANN

THAT THE TENDER RECEIVED FROM HITACHI CONSTRUCTION MACHINERY

FOR THE JOHN DEERE 670GP ($339,990 EX GST) LESS THE TRADE IN OF THE

CATERPILLAR 140H GRADER ($135,000 EX GST) BE ACCEPTED.

CARRIED

There being no further business the meeting closed at 11.52 am.

________________________________________________

Cr Mary Fraser OAM 4 March 2014

Documents

Minutes Ordinary Meeting of Council · TOWONG SHIRE COUNCIL ORDINARY MEETING 4 FEBRUARY 2014 2 P:\Council Minutes\2014\02 February\4 February 2014.doc MINUTES OF THE ORDINARY MEETING