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AGENDA PAPERS LIGHT REGIONAL COUNCIL TUESDAY AUGUST at pm

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					                              OUR VISION:
A vibrant growing area supported by quality infrastructure and services that
         meet community needs and maintains our unique lifestyle


                              OUR MISSION:
 To service our growing community by providing cost efficient and effective
   services and quality infrastructure to maintain and enhance our rural
                                   lifestyle




                                   AGENDA PAPERS
                                   for the Special Meeting of

                              LIGHT REGIONAL COUNCIL
                                            in the
                                    COUNCIL CHAMBER
                                   93 Main Street, Kapunda

                        TUESDAY, 8 AUGUST 2006 at 7.00pm




Principal Office: 93 Main Street                                Branch Office: 12 Hanson Street
                  Kapunda 5373                                                 Freeling 5372
                                      Telephone: 8525 3200
                                      Facsimile: 8566 3262
                                                       NOTICE OF MEETING




Mayor and Councillors,

Notice is hereby given pursuant to the provisions of Section 83 (2) of the Local
Government Act, 1999, that the next Special Meeting of Council will be held in the
Council Chamber, 93 Main Street, Kapunda on Tuesday, 8 August 2006 commencing
at 7.00pm.

A copy of the Agenda for the above meeting is supplied as prescribed by Section 83 (3)
of the said Act.




....................................................
Peter J Beare
CHIEF EXECUTIVE OFFICER                                                    7 August 2006
                                                                                            2006/348




                                LIGHT REGIONAL COUNCIL

                                             AGENDA


       SPECIAL COUNCIL MEETING HELD ON TUESDAY, 8 AUGUST 2006,
          IN THE COUNCIL CHAMBER, 93 MAIN STREET, KAPUNDA,
                        COMMENCING AT 7.00PM

1.    PRESENT

2.    OPENING

3.    APOLOGIES

4.    DECLARATION OF INTEREST BY MEMBERS OF COUNCIL

5.    REPORTS FOR DECISION

5.1   STATUTORY COMPLIANCE AND ACCOUNTABILITY

5.1.1. 2006/2007 Budget
       (Appendix 5.1A – Pages 1 – 8)
       (Appendix 5.1B – Pages 1 – 7)
       (Appendix 5.1C – Pages 1)
       (Appendix 5.1D – Pages 1-2)
       (Appendix 5.1E – Page 1)
       (Appendix 5.1F – Pages 1-15)
      Purpose
      The purpose of this report is to process the various components required under the Local
      Government Act 1999 for the adoption of Council’s proposed 2006/2007 financial year budget,
      and to declare the various rates and charges needed to fund Council’s annual budget.

      Background
      The Local Government Act 1999 and the Local Government (Financial Management) Regulations
      1999 stipulate various pieces of legislation which determine the manner in which Council must
      adopt its annual budget and declare the annual rate. Included in the discussion points following,
      is detail of the relevant sections of the Act needed to be dealt with in meeting the Act
      requirements.

      Discussion
      Adoption of Assessment
      Elected members would be aware that part of the annual budgetary process is for Council to
      adopt, pursuant to section 167 of the Local Government Act 1999, the most recent valuations
      available to the Council at the time that the Council adopts its budget under the Act. The adopted
      valuation will govern the assessment of rates for the financial year.
Special Meeting of Council
Council Agenda – 8 August 2006                                                                 2006/349


      The total capital valuation of all assessments in the Council area as at Saturday, 29 July 2006,
      was $2,137,813,500. Of this amount the capital valuation of those properties that are deemed as
      non-rateable pursuant to section 147 of the Act was $31,491,986, leaving therefore an assessable
      capital valuation for the district of $2,106,321,514.

      It is therefore recommended that the following recommendation be passed.


      Recommendation 1
      That Council, for the financial year ending 30 June 2007, pursuant to section 167 of the
      Local Government Act 1999, adopt the most recent valuations of the Valuer-General of the
      capital value of land in the council area for rating purposes, (such valuations to apply to
      the Council area from 1 July, 2006), and totalling $2,137,813,500, of which $2,106,321,514 is
      rateable.

      Rebate of Rates
      Elected members would be aware that from year to year the Council provides various ratepayers
      either through statutory requirements or through discretionary powers contained in the Local
      Government Act 1999 the rebate of general rates.

      The various provisions of the Act are contained within Chapter 10 of the Local Government Act
      1999. The applicable sections can be summarised as follows;

      •       Section 147, Rateability of land, specifically where an exemption from the charging of
              Council rates is provided by virtue of the Local Government Act or another Act of
              parliament, such as the Recreation Grounds Rates and Taxes Exemption Act 1981.

      •       Section 159, Rebates of rates, Preliminary, which states that a person or body may apply
              to the council to receive a rebate, that person must not provide false or misleading
              information, a council may grant a rebate if satisfied (whether upon application or of its
              own initiative), etc.

      •       Section 160, Rebates of rates – health services

      •       Section 161, Rebates of rates – community services

      •       Section 162, Rebates of rates – religious purposes

      •       Section 163, Rebates of rates – public cemeteries

      •       Section 164, Rebates of rates – Royal Zoological Society of SA

      •       Section 165, Rebates of rates – educational purposes, and

      •       Section 166, Discretionary rebates of rates.

      For the benefit of the members it is worthwhile to re-iterate the matters which provide for a
      discretionary rebate under the Act. Specifically section 166 of the Act states;

      “Discretionary rebates of rates
      166.    (1)    A council may grant a rebate of rates or service charges in any of the following cases
                     (not being cases that fall within a preceding provision of this Division):

                      (a)     where the rebate is desirable for the purpose of securing the proper
                              development of the area (or a part of the area);
Special Meeting of Council
Council Agenda – 8 August 2006                                                               2006/350


                    (b)     where the rebate is desirable for the purpose of assisting or supporting a
                            business in its area;

                    (c)     where the rebate will conduce to the preservation of buildings or places of
                            historic significance;

                    (d)     where the land is being used for educational purposes;

                    (e)     where the land is being used for agricultural, horticultural or floricultural
                            exhibitions;

                    (f)     where the land is being used for a hospital or health centre;

                    (g)     where the land is being used to provide facilities or services for children or
                            young persons;

                    (h)     where the land is being used to provide accommodation for the aged or
                            disabled;

                    (i)     where the land is being used for a residential aged care facility that is
                            approved for Commonwealth funding under the Aged Care Act 1997 (Cwlth)
                            or a day therapy centre;

                    (j)     where the land is being used by an organisation which, in the opinion of the
                            council, provides a benefit or service to the local community;

                    (k)     where the rebate relates to common property or land vested in a community
                            corporation under the Community Titles Act 1996 over which the public has a
                            free and unrestricted right of access and enjoyment;

                    (l)     where the rebate is considered by the council to be appropriate to provide
                            relief against what would otherwise amount to a substantial change in rates
                            payable by a ratepayer due to—

                            (i)     a redistribution of the rates burden within the community arising from
                                    a change to the basis or structure of the council’s rates; or

                            (ii)    a change to the basis on which land is valued for the purpose of
                                    rating, rapid changes in valuations, or anomalies in valuations.

             (1a)   A council must, in deciding whether to grant a rebate of rates or charges under
                    subsection (1)(d), (e), (f), (g), (h), (i) or (j), take into account—

                    (a)     the nature and extent of council services provided in respect of the land for
                            which the rebate is sought in comparison to similar services provided
                            elsewhere in its area; and

                    (b)     the community need that is being met by activities carried out on the land for
                            which the rebate is sought; and

                    (c)     the extent to which activities carried out on the land for which the rebate is
                            sought provides assistance or relief to disadvantaged persons,

                    and may take into account other matters considered relevant by the council.

             (2)    A rebate of rates or charges under subsection (1) may be granted on such conditions
                    as the council thinks fit.
Special Meeting of Council
Council Agenda – 8 August 2006                                                                  2006/351




                (3)    A rebate of rates or charges under subsection (1)(a), (b) or (k) may be granted for a
                       period exceeding one year, but not exceeding 10 years.

                (3a)   A rebate of rates or charges under subsection (1)(l) may be granted for a period
                       exceeding one year, but not exceeding three years.

                (4)    A council may grant a rebate under this section that is up to (and including) 100 per
                       cent of the relevant rates or service charge.”

      Elected members will note that as part of the draft budget document Council has provided for
      under Item 29 Rates and Property ‘Rate Rebates’, the amount of $333,600 to provide various
      ratepayers with a rebate of their annual general council rate. This estimate is based on the
      assumption that the rating model considered appropriate by the Rating Policy Review Advisory
      Committee at its Tuesday, 25 July 2006 meeting will be adopted by Council at this meeting – any
      variation to the rating model will of course vary the level of rates rebates provided to those
      ratepayers and organisations listed in the following table.

      The following table of data lists those ratepayers that currently receive a rebate of rates by statute
      or through agreement by Council.

  Billing No.                      Ratepayer Name                          Rebate %       Proposed
                                                                                          2006/2007
                                                                                         General Rate
                                                                                           Rebate

                 Public Cemeteries – Statutory Rebate
  772            Uniting Church                                                100             $570.00
  1089           Trustees Bagot Well                                           100               $17.63
  1124           Noack                                                         100             $570.00
  2723           Bethel Lutheran Church                                        100             $570.00
  3333           Evangelical Lutheran Church Nain                              100             $570.00
  3606           Lutheran Church Schoenborn                                    100             $570.00
  3817           Trinity Lutheran Church                                       100             $570.00
  4291           Lutheran Church Neukirch                                      100             $570.00
  4384           Catholic Church St. Johns                                     100             $570.00
  5411           Uniting Church Ward Belt                                      100             $570.00
  5767           Catholic Church Hamley Bridge                                 100             $570.00
  6564           Lutheran Church Belvidere                                     100             $570.00
                                                              Sub-Total                       $6,287.63
                 Religious Purposes – Statutory Rebate
  463            Salvation Army Kapunda                                        100              $585.15
  834            Uniting Church Hamilton                                       100              $570.00
  837            Anglican Church Hamilton                                      100              $570.00
  838            Hamilton Church Hall                                          100              $570.00
  903            Lutheran Church Allen’s Creek                                 100              $570.00
  1332           Uniting Church Freeling                                       100              $570.00
  1338           St Marks Lutheran Church Freeling                             100              $570.00
  1597           Anglican Church Freeling                                      100              $570.00
  1939           Kapunda Assemblies of God                                     100              $863.63
  3004           Uniting Church Greenock                                       100              $570.00
  3022           St Peters Lutheran Church Greenock                            100            $1,092.75
  3341           Lutheran Church Nain                                          100              $570.00
  3444           Jehovah Witnesses Nuriootpa                                   100            $1,039.88
  3679           Gnadenfrei St Michaels Marananga                              100              $676.80
Special Meeting of Council
Council Agenda – 8 August 2006                                                 2006/352


  3965        Lutheran Church Kapunda                                 100      $570.00
  3966        Lutheran Church Hall                                    100      $570.00
  3987        Anglican Church Kapunda                                 100      $570.00
  4205        Lutheran Church Ebenezer                                100      $570.00
  4288        Lutheran Church Neukirch                                100      $669.75
  5356        Uniting Church Gawler River                             100      $570.00
  5963        Catholic Church Kapunda                                 100      $634.50
  6343        Uniting Church Kapunda Hall                             100      $570.00
  6344        Uniting Church Kapunda                                  100      $570.00
  6484        Catholic Church Freeling                                100      $570.00
  6521        Evangelical Lutheran Church Greenock                    100      $570.00
  7255        St. Marks Lutheran Hall- Freeling                       100      $666.23
                                                         Sub-Total           $16,488.69

              Health Services/Hospitals – Statutory Rebates
  324         Kapunda Hospital Incorporated – Hospital                100     $6,768.00
  325         Kapunda Hospital Incorporated – Homes                   100     $2,643.75
                                                       Sub-Total              $9,411.75

              Community Services – Statutory Rebates
  1385        Wheatfields Incorporated                                100     $4,670.63
  1409        Wheatfields Incorporated                                100      $630.98
                                                         Sub-Total            $5,301.61

              Educational (inc. Universities) – Statutory Rebates
  4932        Xavier College                                          75     $24,719.06
              Roseworthy College as follows;
  5016        Residential College                                     75      $3,918.04
  5017        Custance Centre                                         75      $2,969.46
  5018        House E25                                                75       $427.50
  5019        House H2                                                75        $427.50
  5020        House H3                                                75        $427.50
  5021        House H4                                                75        $427.50
  5022        House H5                                                75        $427.50
  5027        House H13                                               75        $427.50
  5028        House H14                                               75        $427.50
  5029        House H15                                               75        $427.50
  5030        House H16                                               75        $427.50
  5032        House H18                                               75        $427.50
  5033        House H19                                               75        $427.50
  5034        House H20                                               75        $427.50
  5037        House H26                                               75        $427.50
  5039        House H29                                               75        $427.50
  5041        House H1                                                75        $427.50
  5042        Balance of Roseworthy Land – 740 hectares               100     $8,981.70
  5043        Roseworthy Agriculture                                  100       $831.90
  5536        Roseworthy Cereals & Sheep                              100     $5,146.50
  5544        Roseworthy Livestock                                    100     $1,071.60
  5625        Roseworthy Cereals & Sheep                              100     $2,397.00
  5851        Roseworthy Campus                                       100    $66,501.24
                                                          Sub-Total         $122,949.00
              Council Leased Properties – Discretionary Rebates
  176         Kapunda RSL Branch                                      100      $570.00
Special Meeting of Council
Council Agenda – 8 August 2006                                                    2006/353


  177         Kapunda Thrift Shop                                         100      $570.00
  636         Kapunda Historical Society – Museum                         100     $570.00
  638         Kapunda Soldiers Memorial Hall                              100     $570.00
  639         Kapunda Historical Society – Bagot’s Fortune                100      $771.09
  647         Kapunda Swimming Pool                                       100      $570.00
  648         Minister Children’s Services – Kindergarten                 100     $570.00
  1211        Freeling Recreation Centre                                  100    $1,410.00
  1328        Freeling Institute Committee                                100      $705.00
  1377        Rural Directions –Rated, but rebate included for            100      $747.30
              reason that Council will takeover office on completion
              of Rural Directions building development.
  1378        Transport SA                                                100     $570.00
  2260        JT Johnson & Sons Weighbridge                               100     $570.00
  2267        Kapunda Golf Club                                           100    $3,278.25
  2268        Kapunda Trotting Club                                       100    $3,877.50
  2281        House Montefiore Street – Rated, but rebate will apply      100      $793.13
              only to the length of time that Council retains
              ownership of the property; property is sold waiting final
              settlement.
  3406        Greenock Centenary Park                                     100    $1,022.35
  3722        Roennfeldt – Waste Water                                    100      $570.00
  4686        Wasleys Institute Committee                                 100      $570.00
  5398        Deluca Market Gardens (council owned land)                  100     $690.90
  5903        Greenock Institute Committee                                100      $570.00
  6413        Kapunda Tourist Park                                        100    $2,009.25
  6597        Kapunda Art Gallery                                         100      $570.00
  6598        Kapunda Craft Shop                                          100      $570.00
  7021        Dutton Park Kapunda                                         100    $2,115.00
                                                              Sub-Total         $24,829.77

              Exempted per Section 147 (1) and (2)(d) – Statutory
              Rebate
  4294        Barossa Valley Golf Club – Golf Course                      100    $7,020.48
  7248        Barossa Valley Golf Club – Club house                       100    $1,014.76
                                                        Sub-Total                $8,035.24

              Exempted per Section 147(2)(g) – Statutory Rebate
  2336        Gawler River Floodplain Management Authority                100     $789.60
                                                       Sub-Total                  $789.60

              Other Discretionary Rebates Section 166
  174         Scout Association Kapunda Branch                            100     $570.00
  618         Kapunda CWA                                                 100     $592.20
  768         Allendale Tennis Club                                       100     $570.00
  852         Hamilton Tennis Club                                        100     $570.00
  1271        NW & KVSchuster- STEDS only                                 100     $348.00
  1355        Freeling Op Shop                                            100     $570.00
  1390        Freeling Bowling Club                                       100     $683.85
  1911        Roseworthy Hall                                             100     $634.50
  3680        Marananga Brass Band Hall                                   100     $570.00
  3681        Marananga Tennis Club                                       100     $570.00
  4019        Kapunda Senior Citizens Club                                100     $570.00
  4020        Kapunda Musical Society                                     100     $570.00
  4062        Kapunda Bowling Club                                        100     $690.90
Special Meeting of Council
Council Agenda – 8 August 2006                                                             2006/354


  4246         Ebenezer Hall                                               100             $599.25
  4678         Wasleys Bowling Club                                        100             $570.00
  5050         Amcor Development                                            50         $120,929.53
  5274         Gawler Harness Racing Club                                  50            $7,402.50
  5355         Gawler River Memorial Hall                                  100            $570.00
  5537         Kangaroo Flat Indoor Bowls Club                             100             $570.00
  6077         Sheaoak Log Hall                                            100            $570.00
  5888         PI & WK Amey - STEDS only                                   100             $348.00
  7858         Gill Park Recreation Ground                                 100             $570.00
                                                            Sub-Total                  $139,638.73

                                              Total Rebates Allowed                    $333,732.02
                                         (per listed billing numbers)

      As can be seen from the above data, Council provides through general rate rebates granted,
      significant financial support to many sporting, religious, cultural, aged care and educational
      institutions within its area.

      As the majority of the rebates given by the Council are imposed upon it by statute, these must
      continue to occur. In regard to the discretionary rebates given in accordance with section 166 of
      the Act, it would obviously be in Council’s financial interest not to continue providing these,
      however community expectation would suggest they should, recognising that part of the Council’s
      role is to support organisations that provide a benefit to the people in its area or to local
      government generally.

      The above list contains the amendments proposed by the Rating Policy Review Advisory
      Committee at its Tuesday, 25 May 2006 meeting, which were subsequently confirmed by Council
      at its June 2006 ordinary meeting (refer to Minute page number 2006/125 and 126, Item 9.2.6).

      Recommendation 2
      That Council, for the financial year ending 30 June 2007, in accordance with the
      discretionary powers given to Council under section 166 (1) (c) of the Local Government
      Act 1999 in relation to the granting of rates rebates, grants a rebate of 100% of general
      rates to the following rateable assessments (represented by their billing number) to enable
      the preservation of buildings or places of historic significance; 636 and 639.

      Recommendation 3
      That Council, for the financial year ending 30 June 2007, in accordance with the
      discretionary powers given to Council under section 166 (1) (j) of the Local Government
      Act 1999 in relation to the granting of rates rebates, grants a rebate of 100% of general
      rates to the following rateable assessments (represented by their billing number) where
      that land is being used by an organisation which, in the opinion of the Council, provides a
      benefit or service to the local community; 176, 177, 618, 638, 647, 768, 852, 1211, 1328,
      1355, 1390, 1911, 2267, 2268, 3406, 3680, 3681, 3722, 4019, 4020, 4062, 4246, 4678, 4686,
      5355, 5537, 5903, 6077, 6597, 6598, 7021 and 7858. And further, that Council grants under
      the same section of the Act a rebate of 50% of general rates to the following rateable
      assessment (represented by their billing number) where that land is being used by an
      organisation which, in the opinion of the Council, provides a benefit or service to the local
      community; 5274.

      Recommendation 4
      That Council, for the financial year ending 30 June 2007, in accordance with the
      discretionary powers given to Council under section 166 (1) (g) of the Local Government
      Act 1999 in relation to the granting of rates rebates, grants a rebate of 100% of general
      rates to the following rateable assessments (represented by their billing number) where
Special Meeting of Council
Council Agenda – 8 August 2006                                                                                  2006/355


         the land is being used to provide facilities or services for children or young persons; 174
         and 648.

         Recommendation 5
         That Council, for the financial year ending 30 June 2007, in accordance with the
         discretionary powers given to Council under section 166 (1) (b) of the Local Government
         Act 1999 in relation to the granting of rates rebates, grants a rebate of 100% of general
         rates to the following rateable assessments (represented by their billing number) where
         the rebate is desirable for the purpose of assisting or supporting a business in its area;
         1377, 1378, 2260, 2281, 5398 and 6413. And further, that Council grants under the same
         section of the Act a rebate of 50% of general rates to the following rateable assessment
         (represented by their billing number) where the rebate is desirable for the purpose of
         assisting or supporting a business in its area; 5050.

         Adoption of Budget
         (Appendix 5.1A)
         Reference is made to Council’s Wednesday, 19 July 2006 meeting. A draft budget was presented
         at that meeting at which time Council resolved to publicly consult in relation to the content of the
         document and the proposed 6.0% overall general rate increase.

         Public Consultation
         Public notices were placed in the Bunyip, Herald and Leader newspapers informing the
         community that the Draft 2006/2007 budget was available for inspection at Council’s Kapunda
         and Freeling offices, the libraries in Kapunda, Freeling, Greenock and Wasleys and on Council’s
         website, and that submissions on the Draft document would be received up to close of business
         on Wednesday, 2 August 2006.

         One submission was received from Mr Len Reddie of Kapunda (attached as Appendix 5.1B).

         The following detail is provided as a response to the submission.

Comment                Comment Received                         Response
Reference

Letter        Page 1   Definition of Consultation and conduct   No formal requirement to consult at this time, consultative
              of 7     of a meeting, consideration of comment   meetings in the past have had limited success.
                       and issues being acted upon, question
                       and answer session                       Formal requirement for consultation from 1 January 2007.
Attachment    Page 2   Rate Rebates                             Agree with sentiment on cost shifting between levels of
A             of 7,                                             government. Local government in South Australia has a
              item                                              long history of lobbying other governments in relation to cost
              1(a)                                              shifting issue, in particular refer to the ‘Hawker Report’ and
                                                                others.

                                                                Full details of rebates provided to Rating Policy Review
                                                                Advisory Committee at May, 2006 meeting and to
                                                                subsequent June Council meeting.

                                                                Also see separate report this agenda item.
              Item 1   Vehicle hire rates and FBT               Different vehicles have different hire rates, based on a
              (b)                                               number of factors.

                                                                The question is how much detail should be shown in the
                                                                budget document. This Council’s document has always
                                                                shown a large amount of detail (in comparison to other
                                                                Council budget documents – verified in the past by industry
                                                                sources). The document is currently a large document (350
                                                                pages plus), if all detail of workings etc were to be shown,
Special Meeting of Council
Council Agenda – 8 August 2006                                                                            2006/356


                                                          the document presented would even more so (at least twice
                                                          the size). Questionable value in terms of public benefit.

                                                          In general terms, plant operation costs are lumped together
                                                          at Item 73.

                                                          FBT is shown throughout the budget under Employee Costs
                                                          for Items 1, 6c, 9, 15, 19, 24, 39, 74, 75, 97, 98, and 114.
           Page 3   Legal Fees                            Because of the nature of the industry, Council at times needs
           of 7,                                          to procure specialist legal advice, in fact demands so.
           item                                           Council does not have a specialist qualified legal adviser on
           1(c)                                           staff and therefore needs to contract professionals, not to do
                                                          so in certain circumstances (such as the Gawler River
                                                          Floodplain issue) would be opening the Council to possible
                                                          litigation and damages.

                                                          This year’s allocation does include an amount for the
                                                          establishment of appropriate agreements to manage the
                                                          Roseworthy Recreation area (no previous allocation), and for
                                                          the review of Council’s Bylaws (which must be done by an
                                                          appropriately qualified legal practitioner).
           Item 1   Leases                                Agreed, leases issues need to be finalised. Community
           (d)                                            Development Officer and Director, Corporate Services with
                                                          the Council working party to refocus on this issue following
                                                          budget adoption.
           Page 4   Rates                                 Agreed, long recognised by the sector that CPI basket is
           of 7,                                          perhaps not the most appropriate indicator. In fact a project
           item                                           is being undertaken by the South Australian Local
           1(e)                                           Government Finance Managers Group using Local
                                                          Government Research and Development funding on this
                                                          very issue, that is to try and establish a more appropriate
                                                          measurement tool as opposed to CPI, especially as the local
                                                          government sector crosses over a number of industry
                                                          sectors such as construction and transportation.
           Item 1   Methodology                           The manner in which the budget is formulated has always
           (f)                                            been circular in that the Rates Determination Statement asks
                                                          for the level of rates funding required balancing the budget,
                                                          not the other way around. Programs and projects are
                                                          proposed with the intent of being completed in the year of
                                                          their nomination, it is noted that some projects nominated in
                                                          this draft budget are reliant on funding from other sources
                                                          such as land sales, grant funds and borrowings. If the funds
                                                          are not forthcoming then Council must make a determination
                                                          on that part of its budget at its reviews throughout the course
                                                          of the financial year.
           Item 1   Glossary and use of word ‘Other’ in   The idea of a glossary of terms has merit, although the
           (f)      Statement of Financial Performance    application may be limited.

                                                          In regard to the use of the word ‘Other’ in the Statement of
                                                          Financial Performance, unfortunately the content of the
                                                          Statement is set by Regulation, therefore Council is not able
                                                          to amend the content of the Statement. Council does
                                                          however report on the items of income and expenditure
                                                          grouped by ‘Other’ in its Annual Report published at the
                                                          conclusion of each financial year.
           Page 5   Item 01                               Many of Council’s officers have their salaries allocated
           of 7,                                          across a multitude of costs centres as standard practice,
           item 2                                         while others are based around hourly allocation such as
           (a)                                            Works Department operational staff. Reviewed annually as
                                                          a minimum.
           Item 2   Item 06 Tourism                       Refer to Minute Page 2006/68 of Tuesday, 21 March 2006
           (b)                                            for BOBfest draft budget, plus or minus variations. BOBfest
                                                          is being underwritten by four Councils, which is the
                                                          membership of the Clare Valley Tourism Alliance; see
                                                          separate allocation under Tourism Item 06a.

                                                          Refer to previous comment made in regard to officer salary
                                                          allocations.

                                                          In regard to allocation of expenses at the Thomson Building
                                                          between Libraries and Tourism, etc, it should be noted that
Special Meeting of Council
Council Agenda – 8 August 2006                                                                               2006/357


                                                            Kapunda Library has paid all recorded expenses associated
                                                            with building occupation since the multiple use co-location
                                                            following the upgrade to the building. Allocations were
                                                            amended for this budget to recognise that some contribution
                                                            toward the running costs of the building by the other ’tenants’
                                                            should be made. Negotiations are to occur in this regard.
                                                            Telephone expense includes Coordinator’s mobile telephone
                                                            costs.
           Item 2   Item 10 Disability and Aged Care        Council is yet to consider whether or not proposed Kapunda
           (c.)     Services                                Retirement Village project will proceed. Be that as it may,
                                                            expenditure has been and still will be required to undertake
                                                            appropriate investigative work, report preparation and
                                                            consultative requirements etc. If Council ultimately decides
                                                            not to proceed with the concept then Council will need to
                                                            determine reallocation of funds in the budget at that time. If
                                                            Council and the community agree that further work is needed
                                                            then the funds are allocated appropriately. Note at Item 98
                                                            Planning Policy is appropriately worded.
           Item 2   Item 24 Contract Management             Refer to earlier comments in relation to salary allocations
           (d)                                              and budgetary detail.
           Page 6   Item 28 Freeling Office                 Not clear as to the comments’ intent, all that is proposed is
           of 7,                                            for Freeling office staff (because of space restrictions) to
           item 2                                           take up space at other Council buildings at the conclusion of
           (e)                                              a commercial arrangement with Rural Directions (who are
                                                            relocating to a purpose built facility). It is also proposed that
                                                            Council’s Works Manager will relocate to the Freeling Depot
                                                            for supervisory and efficiency purposes.
           Item 2   Item 29 Rating and Property             No comment.
           (f)
           Item 2   Item 30 Records Management              Would be interested to here of revenue raising activities
           (g)                                              attached to Records Management activity of Council.
                                                            MapInfo system already includes detail of STEDS lines,
                                                            garbage collection routes, zoning, etc. Some items
                                                            suggested are under State control.
           Item 2   Items 31 to 37, various buildings etc   Refer to earlier comments in regard to leases.
           (h)
           Item 2   Item 74 Indirection Allocations         Allocation is not considered excessive, in fact overall
           (i)                                              Materials budget estimate is reduced compared to the
                                                            previous year (ie. $33,650 as compared to $46,170)
           Item 2   Item 96 Street Sweeping                 Philosophical argument as to whether or not Street
           (j)                                              Sweeping should be shown as a separate budget item,
                                                            although it is considered certainly to be a road maintenance
                                                            (and drainage) activity. Budget for Street sweeper purchase
                                                            was included in the 2005/2006 budget.
           Page 7   Item 98 Policy Planning                 Refer to earlier comment of Kapunda Retirement Village
           of 7,                                            PAR. In regard to Kapunda Residential PAR the allocation is
           item 2                                           made to finish the project with a second round of
           (k)                                              consultation currently occurring.

                                                            In regard to the Kapunda Mine Conservation Management
                                                            Plan, appropriate stakeholders will of course be consulted in
                                                            formulating the document, as they will be at the following
                                                            PAR stage.
           Item 2   Item 114 STEDS Kapunda                  Refer to earlier comments on FBT. Personal Accident
           (l)                                              Insurance provided under a separate arrangement to
                                                            Workers Compensation.


      The Director, Corporate Services considers that the matters discussed in the submission will not
      directly impact on the content of the draft budget document, and therefore it is not believed that
      Council should look to implement changes to the draft document directly from matters raised in
      the submission.

      The submission does however raise some interesting points, in particular the issue of cost shifting
      between levels of Government (Council is only too well aware of the impacts of this issue); the
      level of detail contained in the budget document (generally the sector has acknowledged in years
      gone by that Council’s budget generally contains a high level of detail in comparison to others);
      and the issue of using CPI as an indicator of prices movement and growth to Council expenses
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      (the sector is working to develop more appropriate mechanisms, the question is will other levels of
      government consider the value of a specific local government indicator?). The submission
      indicates that at least some sections of the community are generally aware of some of the issues
      facing local government.

      Rating Policy Review Advisory Committee
      The Light Regional Council Rating Policy Review Advisory Committee met on Tuesday, 25 July
      2006, and after considerable debate and reviewing examples of rating models, the Committee
      resolved to recommend to Council that total general rate revenue be increased by 6% over that of
      the 2005/2006 financial year in accordance with the draft budget requirements.

      Attached (Appendix 5.1A)for elected members’ reference are copies of Council’s budgeted
      Statement of Financial Performance, budgeted Cash Flow Statement, budgeted Statement of
      Financial Position and Changes in Equity, the budgeted Statement as to the basis of
      Determination of Rates. Also attached (Appendix 5.1A) is an addendum showing the changes
      made to the draft budget following the release of the document for public consultation.

      The changes in essence reflect the additional income and expense needed to implement the
      ‘Green Organics’ refuse collection service. Council’s Accountants have also finalised the Gain on
      Disposal of Non-Current Assets figure shown in the Statement of Financial Performance
      document which has been revised from $814,810 to $1,731,719 which results in a further
      reduction of the estimated Operating Deficit for the 2006/2007 financial year to $471,911.

      Should there be no further changes to the proposed budget for the 2006/2007 financial year, then
      the following recommendation should be passed.


      Recommendation 6
      That Council, in accordance with section 123 of the Local Government Act 1999, adopt as
      its budget for the financial year ending 30 June 2007, the annual estimates of income and
      expenditure consisting of -

      •   the budgeted statement of financial performance;
      •   the budgeted cash flow statement;
      •   the budgeted statement as to the basis for the determination of rates;
      •   the budgeted statement of financial position; and
      •   the budgeted statement of changes in equity

      involving –
      (1)     a total estimated expenditure of $......................;
      (2)     a total estimated income from sources other than rates of $.....................; and
      (3)     a total amount required to be raised from rates of $................................., comprising
              –

                     General rate:                        $...................
                     Services charges:
                     (Refuse Collection & Disposal)       $....................
                     (Septic Tank Effluent Disposal)      $....................
                     Water Catchment Levy:                $....................
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      Declaration of General Rates
      (Appendix 5.1C)

      The Light Regional Council Rating Policy Review Advisory Committee at its Tuesday, 25 July
      2006 meeting considered in great detail the issue of general rates for the 2006/2007 financial
      year.

      The Committee was advised that Council through the course of its budget deliberations had in
      principle settled upon a budget which required six (6) percent more general rate income from the
      ratepayers of the area to fund the proposed annual program, although it was highlighted that more
      revenue was required if ratepayers wished Council to do more from an infrastructure point of view.

      The Director, Corporate Services presented several rating models which had been prepared for
      the committee’s information and explained the impact of each model on Council’s ratepayers.

      The Committee took time to consider the effect of the proposed model by reviewing the effect
      over all of the ratepayers shown individually by assessment number in the model document. The
      Committee’s preferred model, through the variations of the updated capital valuations provided for
      on all properties within Council’s area, provided for a slight redistribution of the base rating model
      previously utilised by Council in past years.

      The proposed model was constructed using the following principles;

                  Using a single rate in the dollar for a single land use category with the concept of
                  using the residential rate in the dollar as the base rate for the area.

                  Increasing the minimum rate by at least CPI or greater, as the number of
                  assessments being charged a minimum rate is low in number as a percentage of the
                  rate base.

                  As a minimum, increasing the amount of general rate income generated by an
                  amount equal to CPI plus assessment growth.

                  The notion of general rate capping not being considered an appropriate mechanism
                  for limiting the effects of a general rate increase through the impact that capping
                  places on lower and middle range ratepayers, that is there is a social consequence
                  on the lower and middle range ratepayers in any rate shifting exercise where Council
                  chooses not to forego any income raised above the rate cap.

      The preferred model uses the following assumptions;

                  Minimum rate to increase by 3.64% from $550 to $570, which is $142.50 per quarter.
                  The effect of this change will see 21.8% (approximately) of the rate base incur a
                  minimum charge, still well within the Local Government Act 1999 requirement of a
                  maximum 35%.

                  The base residential rate is increased by 3.7% to 0.003525 cents in the dollar
                  (2005/2006 rate in a dollar is 0.0034). It is noted that the land use category of
                  residential now accounts for almost 51.3% of Council’s rateable assessments.

                  No adjustment to the base rate ratio charged to the other land use categories as
                  opposed to the residential rate, in comparison to the 2005/2006 financial year.

                  With reference to the percentage of rates revenue payable by each of the land use
                  categories, this model will see increased revenue received from the residential sector.
                  The remaining land uses will remain unaltered or decrease as a percentage of
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                  revenue raised through the shift to residential, as compared to the 2005/2006
                  financial year.

                  Total general rate income raised by this model will see an increase of 6.0% (on the
                  Budget Revision 3 rates raised figure for the 2005/2006 financial year). The model
                  has no targeted rate cap for the previously explained reasoning. This means that
                  each rateable assessment will increase (or decrease as the case may be) in line with
                  the effect of individual property valuations multiplied by the relevant rate-in-the-dollar.

                  Total general rate income of $7,639,000 will be raised should a 6.0% increase be
                  adopted.

                  Should the recommendation be adopted, approximately 78.5% of ratepayers will
                  either have a decrease in rates or an increase in rates up to 5% over the previous
                  year. It is estimated that a further 16.5% of ratepayers will have an increase in the
                  order of 5.01 % to 10%. New assessments will account for a further 2% of rate
                  income. It is estimated that residential ratepayers are likely to have an average 5.3%
                  increase to rates (ie. approximately a $43 average per assessment), while primary
                  production ratepayers are likely to have an average 4.2% increase to rates (ie.
                  approximately a $54 average per assessment).

      In considering the adoption, or not, of the recommendation of Council’s Rating Committee, the
      elected members are reminded of some important elements of the rate setting process;

          •   The principal source of funds for the Council is from the rate revenue generated against
              rateable assessments located within its area.

          •   Council rates are a system of taxation imposed under the Local Government Act 1999

          •   Taxation is a policy mechanism. Taxes are levied to meet four specific policy objectives:

                  o   The allocative role of government – where governments allocate resources to
                      produce goods and services;
                  o   The distributive role of government – where governments redistribute the
                      revenue they raise, either directly (payments) or indirectly (goods and services) to
                      those most in need;
                  o   The regulatory role of government – regulating the environment in which people
                      live; and,
                  o   The stabilisation role of government – trying to maintain a growing and steady
                      economy.”

                  *Source, Skilmar Systems ‘Light Regional Council - Revenue Issues’, May 2001

          •   *”There are five principles that apply to the imposition of taxes on communities. The
              principles are:
                  o Equity – taxpayers with the same income pay the same tax (horizontal equity),
                       wealthier taxpayers pay more (vertical equity)
                  o Benefit – taxpayers should receive some benefits from paying tax, but not
                       necessarily to the extent of the tax paid;
                  o Ability-to-pay – in levying taxes the ability of the taxpayer to pay tax must be
                       taken into account;
                  o Efficiency – if a tax is designed to change consumers behaviour and the
                       behaviour changes the tax is efficient (eg. Tobacco taxes), if the tax is designed
                       to be neutral in its effect on taxpayers and it changes taxpayers behaviour a tax is
                       inefficient; and,
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                  o   Simplicity – the tax must be understandable, hard to avoid, easy to collect.”

                  *Source, Skilmar Systems ‘Light Regional Council - Revenue Issues’, May 2001


      Recommendation 7
      That Council, for the financial year ending 30 June 2007, pursuant to the provisions of
      Chapter 10 of the Local Government Act 1999 and in particular sections 153 and 156 (1) (a)
      of the Act, declares the following differential general rates on rateable land within its area:

      (1)    on all rateable land with the Land Use Codes of category 1 – Residential, and
             category 9 - Other , a rate of 0.003525 cents in the dollar of the capital value of the
             land;

              on all rateable land with the Land Use Code of category 2 – Commercial Shop, and
              category 3 – Commercial Office, a rate of 0.00616875 cents in the dollar of the
              capital value of the land;

      (2)    on all rateable land with the Land Use Code of category 4 – Commercial Other, a
             rate of 0.00705 cents in the dollar of the capital value of the land

      (3)    on all rateable land with the Land Use Code of category 5 – Industrial Light, and
             category 6 – Industrial Other, a rate of 0.00969375 cents in the dollar of the capital
             value of the land;

      (4)    on all rateable land with the Land Use Code of category 7 – Primary Production, a
             rate of 0.00282 cents in the dollar of the capital value of the land;

      (5)    on all rateable land with the Land Use Code of category 8 – Vacant Land, a rate of
             0.00440625 cents in the dollar of the capital value of the land.

      Minimum Rate
      Elected members are advised that preferred rate model for the 2006/2007 financial year
      presented to the Light Regional Council Rating Policy Review Advisory Committee has been
      centred on increasing the Minimum rate to $570.00. This increase equates to 3.64% which is
      slightly larger than the Consumer Price Index increase for the twelve month period ending 31
      March 2006, that being 3.1% for Adelaide all groups. Should the Council agree with the proposal
      approximately 21.8% of the rateable assessments within the area, that is 1,478 of 6,791 rateable
      assessments, will be subject to the minimum. This percentage figure is well inside the criteria
      stipulated in section 158 (2) (d) of the Local Government Act 1999 which says that a council may
      not apply the minimum to more than 35% of the total number of properties in the area subject to
      the separate assessment of rates.

      It is therefore recommended that the following resolution be passed by the Council.

      Recommendation 8
      That Council pursuant to Section 158(1)(a) of the Local Government Act 1999, for the
      financial year ending 30 June 2007, fix a minimum amount payable by way of the general
      rate of $570.00.
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      Septic Tank Effluent Disposal System Service Charge
      (Appendix 5.1D)

      The Light Regional Council Rating Policy Review Advisory Committee at its Tuesday 25 July
      2006, meeting considered the issue of Septic Tank Effluent Disposal System charges for the
      2006/2007 financial year.

      The following separate charges are recommended for the 2006/2007 financial year.

               Township                         2005/2006        2006/2007
               Kapunda                               $338.00          $348.00
               Freeling                              $338.00          $348.00
               Greenock                              $338.00          $348.00
               Roseworthy                            $338.00          $348.00

      The Council is advised that for the 2005/2006 financial year two ratepayers were given rebates in
      regard to the STEDS charge raised for the service offered in the Freeling Township. These
      ratepayers, that is PI and WK Amey (Valuer-General’s assessment number 3120867008, situated
      at the corner of Derby and Templers Road in the township of Freeling) and NW and KV Schuster
      (Valuer-General’s assessment number 3120683006, situated at Lot 34 of Deposited Plan 1733
      Gray Street Freeling), concerning the removal of the STEDS charge made against that particular
      property on an annual basis. Council staff consider that the situation in both of the
      aforementioned cases is unchanged to that of the previous financial year. Therefore we would
      again recommend that Council resolve to rebate the STEDS charge to both of these properties.


      It is therefore recommended that the Council pass the following resolutions to continue the
      process of standardising the STEDS charge for the Council area and to provide an exemption
      from the charge to assessment numbers 3120867008 and 3120683006. It is also recommended
      that in accordance with recent amendments to section 155 of the Act, Council amend the name of
      the charge from the Septic Tank Effluent Disposal System (STEDS) Service Charge, to the
      ‘Community Wastewater Management System Charge’ and that those properties having access
      to the schemes, whether occupied or not, pay the same annual charge.


      Recommendation 9
      That Council, for the financial year ending 30 June 2007, pursuant to Section 155 of the
      Local Government Act 1999, impose the following service charges on each assessment
      whether vacant or occupied in the following townships, to which land and the Council
      makes available a Community Wastewater Management System service:

              Kapunda                 $348.00
              Freeling                $348.00
              Greenock                $348.00
              Roseworthy              $348.00

      Recommendation 10
      That Council, for the 2006/2007 financial year pursuant to section 166 (1) (a) of the Local
      Government Act 1999, agree to the provision of a rebate of the Freeling Community
      Wastewater Management System service charge for the property described as Part Section
      112 Deposited Plan 23670, Derby Street, Freeling (Valuer-General’s assessment number
      3120867008) and on the property described as Lot 34 Deposited Plan 1733 Gray Street,
      Freeling (Valuer-General’s assessment number 3120683006).
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      Domestic Refuse and Recycling Service Charge
      (Appendix 5.1E)

      The Light Regional Council Rating Policy Review Advisory Committee at its Tuesday 25 July
      2006, meeting considered the issue of the domestic refuse and recycling (including green
      organics) service charge for the 2006/2007 financial year. The Committee’s resolution
      considered that Council should alter the refuse collection charge from $143.10 to $165.40 for
      those properties being provided the service.

      Furthermore the committee recommends to Council that any funds raised in excess of the
      deemed annual operational cost of the service, that is collection, recycling and disposal costs, be
      retained and appropriated to a special purpose reserve fund specifically to be used for the future
      replacement of or refurbishment works required at Council’s refuse disposal sites.

      As with the issue of the Community Wastewater Management System charges highlighted above,
      Council charges the applicable ratepayers an amount to collect on a weekly basis domestic
      refuse. The Waste Collection charge covers recyclable, green organics (from October, 2006) and
      non-recyclable domestic refuse and is levied to all ratepayers accessing the service.

      The Committee therefore has recommended that the Council adopts a Refuse Collection charge
      of $165.40 for those properties being serviced by the service.


      Recommendation 11
      That Council, for the financial year ending 30 June 2007, in exercise of the powers
      contained in Section 155 of the Local Government Act 1999 and in order to meet the costs
      of refuse collection and recycling service, a service charge of $165.40 per assessment is
      imposed on all land in the area being provided with a service.


      Natural Resource Management Board Levies.
      As the elected members are aware, Council’s area is now contained within three Natural Resource
      Management (NRM) Board areas. It should be noted however that for the 2006/2007 financial
      year, Council is not required to contribute to the expenses of the River Murray Natural Resource
      Management Board.

      Council is however required to contribute toward the running costs of the Adelaide and Mount
      Lofty Ranges Natural Resource Management Board, and the Northern and Yorke Peninsula
      Natural Resource Management Board.

      At the time of writing this report there were 4,506 properties with a total capital valuation of
      $1,552,115,200 that are situated within the Adelaide and Mount Lofty Ranges Natural Resource
      Management Board area, and 2,194 properties with a total capital valuation of $553,402,414 that
      are situated within the Northern and Yorke Peninsula Natural Resource Management Board area,
      that are subject to the separate charge.

      It should be noted that Council is operating as a revenue collector for the Boards in this regard. It
      does not retain this revenue or determine how the revenue is spent.
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      Recommendation 12
      That Council, for the financial year ending 30 June 2007 in exercise of the powers
      contained in Natural Resources Management Act 2004, and Section 154 of the Local
      Government Act 1999, and in order to reimburse the Council for the amount contributed to
      the Adelaide and Mount Lofty Ranges Natural Resources Management Board, being
      $111,874.00, a levy be imposed comprising _________ cents in the dollar of the Capital
      Value of land, on all rateable land in the Council’s area in the catchment area of that Board
      in accordance with the Natural Resources Management Act, the Capital Value of such land
      comprising $1,552,115,200.00, the basis for the levy having been selected as the Capital
      Value of rateable land;

      Further that in order to reimburse the Council for the amount contributed to the Adelaide
      and Mount Lofty Ranges Natural Resources Management Board, being $30,498.00, a levy
      be imposed comprising _________ cents in the dollar of the Capital Value of land, on all
      rateable land in the Council’s area in the catchment area of that Board in accordance with
      the Natural Resources Management Act, the Capital Value of such land comprising
      $553,402,014.00, the basis for the levy having been selected as the Capital Value of
      rateable land;

      Payment of Rates
      The following dates are suggested as the due dates for payments of Council rates raised for the
      2006/2007 financial year.

      Recommendation 13
      That the Council resolves that;

      (1)    pursuant to section 181 of the Local Government Act 1999, council rates raised for
             the financial year ending 30 June 2007, be payable in quarterly instalments, such
             instalments being due and payable by;

             •       Friday, 29 September 2006 (first instalment),
             •       Friday, 15 December, 2006 (second instalment),
             •       Friday, 16 March, 2007 (third instalment), and,
             •       Friday, 15 June, 2007 (final instalment);

             provided that in cases where the initial account requiring payment of rates is not
             sent at least 30 days prior to this date, or an amended account is required to be
             sent, authority to fix the date by which rates must be paid in respect of those
             assessments affected is hereby delegated to the Chief Executive Officer: and


      (2)    pursuant to section 44 of the Local Government Act 1999, the Chief Executive
             Officer is delegated the power to enter into agreements in accordance with section
             181 of the Act with Principal Ratepayers relating to the payment of rates in any case
             where he considers it necessary or desirable to do so.
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      Rating Policy
      Section 171 of the Local Government Act 1999 stipulates that a Council must for each financial
      year in conjunction with its declaration of rates prepare and adopt a Rating Policy. Section 171
      stipulates that the policy must contain a number of items that have been considered as part of the
      review process. Attached (Appendix 5.1F) for the benefit of the elected members is a revised
      copy of the 2005/2006 financial year rating policy amended to reflect the proposed changes for
      the 2006/2007 financial year.

      As the Rating Policy contains much of the information published earlier within this agenda, it is
      appropriate that the consideration of the policy follow the deliberations previously considered in
      this agenda. It should be noted that this will be the last year that section 171 will be utilised as
      from the 2007/2008 financial year revised conditions will apply.


      Recommendation 14
      That Council, pursuant to section 171 of the Local Government Act 1999, adopt the draft
      rating policy as presented. Further that the Director, Corporate Services be authorised to
      create an abridged version of the document for inclusion within the annual Budget
      Foreword and Annual Statement document.

      2006/2007 Budget Foreword and Annual Statement
      (Appendix 5.1G – to be provided at the meeting)

      The Director, Corporate Services advises that Council, as part of its annual budgetary
      deliberations must adopt an annual statement in accordance with section 123 of the Local
      Government Act 1999.

      The purpose of the annual statement is to address the activities that the Council intends to
      undertake in the ensuing year to achieve its objectives, and to put into words, the measures (both
      financial and non-financial) that the Council will use to assess its performance against its
      objectives.

      The annual statement has, in the past, been incorporated into the part of Council’s budget
      document known as the Budget Foreword.

      It should also be noted that some parts of the Foreword are reliant upon the adoption of the
      various recommendations put to the Council in this report, meaning therefore that those ‘gaps’ will
      need to be filled in after the adoption of the applicable recommendations.

      It is recommended that the following resolution be passed.

      Recommendation 15
      That Council, in accordance with Section 123 of the Local Government Act 1999, adopts
      the Annual Statement for the 2006/2007 financial year as presented.
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5.2   COUNCIL MONITORING AND SUPERVISION

5.2.1 Dorrien Bridge Upgrade                                                          255-1-011
      (Appendix 5.2.A – Page 1-2)
      (Appendix 5.2B – Page 1-2)
      (Appendix 5.2C – Page 1)
      (Appendix 5.2D – Page 1)

      Purpose
      To provide elected members with information on the progress of the Dorrien Bridge project and
      seek approval to enter into a contract arrangement for the construction of the bridge.

      The following goal and strategies contained within Council’s 2006 – 2016 Strategic Management
      Plan are relevant to this project:-

      Item:-- Public Infrastructure

      Goal

      To provide for an appropriate level of public infrastructure within the financial and resource
      capabilities of Council that services the needs of the region.

      Strategies

       5.    To collaborate with State Government and other utility providers for the provision of
             resource efficient services that meet the needs of the developing community and
             considers the “ecological footprint” on the environment.

      Background
      Elected members are aware that Council has a commitment to the construction of the Dorrien
      Bridge, in a partnership arrangement with The Barossa Council and the Department for Transport,
      Energy and Infrastructure (“DTEI”), Transport Services Division.

      The partnership between the three parties includes funding arrangements such that the estimated
      $1.2m project is one third funded from the Federal Government, one third from the State
      Government and one third from Local Government, evenly shared between Light Regional
      Council and The Barossa Council. In effect, Light Regional Council is committed to one sixth of
      the estimated cost, being $200,000.00 (refer Appendices 5.2A, 5.2B and 5.2C).

      Further, the funding arrangements from the Federal and State Government are capped at
      $400,000.00 each and any additional spending over and above $1.2m is to be sourced by Light
      Regional Council and The Barossa Council.

      As reported at the July 2006 Ordinary meeting of Council, agenda item 10.1.2 Dorrien Bridge
      Upgrade, tenders closed on 23 June 2006 and were being assessed.

      Also reported previously, Maunsell Australia Pty Ltd has been engaged to superintend the
      proposed contract on behalf of the partnership. As such, they called a post tender meeting with
      Built Environs Pty Ltd to discuss and confirm aspects of their tender. Present at that meeting
      were representatives from the DTEI, Mr. Michael Lange, Director – Works and Engineering, The
      Barossa Council, Mr. Gary Adkins, Director, Infrastructure and Environmental Services and Mr.
      John Leeflang, Manager, Works and Technical Services, Light Regional Council.
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      Discussion
      Elected members will recall that two tenders were received for the Dorrien Bridge Upgrade. After
      post tender negotiations with the preferred tenderer, Built Environs Pty Ltd, the second tenderer is
      no longer to be considered, on the basis of higher price, significant assumptions and highlighted
      omissions.

      From the post tender negotiations, Built Environs Pty Ltd have clarified their understanding of the
      specification and provided a quotation on additional works required but not highlighted in the
      tender documents. All members of the partnership are agreed that Built Environs understanding
      of the works is complete and any assumptions made in the tender are now clarified. The risk to
      the partnership in entering into a contract with Built Environs Pty Ltd is considered to be low.

      With respect to financing of the project, the project’s budgeted estimate was $1.2m. With
      reference to Appendix 5.2D, the total estimated cost of the project now lies at $1,554,015.00.

      Council has again sought clarification on funding agreements from the DTEI, with the advice
      being provided that no further funding above the $400,000.00 from the Federal Government and
      $400,000.00 from the State Government will be made available for this project and Councils will
      be responsible for any costs over the $1.2m estimate.

      In accordance with that advice, both Councils are under funded and Light Regional Council will
      need to source an estimated $87,208.00 for the project to proceed. Currently, Council is holding
      $289,800.00 in reserve for this project.

      Should both Councils move to accept the tender from Built Environs Pty Ltd, the options for
      providing the estimated additional $87,208.00 would be either to:-

      1.      Redirect untied funding, such as the Local Road Grant or Supplementary Local Road
              Grant funds currently allocated to formed roads resheeting and/or sealed roads reseals,
              making appropriate adjustments to the budget at the September and December reviews ;
              or

      2.      Continue with the Works Program as adopted and develop strategies to achieve savings
              on various projects, with these savings redirected to the Dorrien Bridge Upgrade ; or

      3.      Obtain extra funding using Council’s Annual Debenture Loan Borrowing Program through
              the Local Government Finance Authority of South Australia, at the time of Council
              undertaking its annual loan borrowing program for the 2006/2007 financial year.

      Conclusion
      Staff members of the partnership bodies (DTEI and Councils) and from Maunsell Australia Pty
      Ltd, the proposed Superintendent, believe that from the tender submitted by Built Environs Pty Ltd
      and information provided at post tender negotiations, a contract formed on the basis outlined
      above would be technically strong and of low risk.

      The lump sum price of $1,242,923.00 plus $54,062.00 for provisional sums is greater than the
      budgeted estimate, but the price has been validated through a tender system.

      If Council chooses to enter into a contract with Built Environs Pty Ltd, staff are of the belief that
      savings made in undertaking works in Council’s proposed 2006/2007 Works Program will offset
      the additional $87,208.00 required for this project.

      Should this not be the case, in part or in full, a project of this size and regional significance would
      warrant the borrowing of additional loan funds by Council to ensure the delivery of this project to
      the community.
Special Meeting of Council
Council Agenda – 8 August 2006                                                              2006/368


      Again, if Council chooses to enter into a contract with Built Environs Pty Ltd, Maunsell Australia
      Pty Ltd has been appointed as the Superintendent for the contract and as such, they would be
      empowered to administer the contract on behalf of the project partners (DTEI and Councils). This
      would include issuing the Letter of Acceptance and executing the Formal Instrument of
      Agreement.

      RECOMMENDATION
      1. That Council authorises the Director, Infrastructure and Environmental Services to
         issue a letter to Maunsell Australia Pty Ltd advising that Light Regional Council, in
         partnership with The Barossa Council and the Department for Transport, Energy and
         Infrastructure – Transport Services Division, are prepared to enter into a contract with
         Built Environs Pty Ltd for the Dorrien Bridge Upgrade, at a total cost of $1,297,015.00.

      2. Further, that Council staff monitor savings in projects included in the Light Regional
         Council 2006/2007 Works Program and reallocate savings towards the budget for the
         Dorrien Bridge Upgrade.

      3. If required, and in the event that sufficient savings are not returned on other projects
         included in Light Regional Council’s 2006/2007 Works Program, at the time of
         undertaking Light Regional Council’s Annual Debenture Loan Borrowing Program,
         Council staff be authorised to undertake an increase in loan borrowings from the Local
         Government Finance Authority of South Australia of up to $87,208.00 to finance any
         shortfall in budget allocation for the Dorrien Bridge Upgrade.
Special Meeting of Council
Council Agenda – 8 August 2006                                                             2006/369




6.    CONFIDENTIAL ITEMS

6.1   Confidential Item Pursuant to Section 90(2) and (3)(d)(i) and (ii) of the Local
      Government Act 1999
      (Kapunda Retirement Village)

       Recommendation
       1.     That under the provisions of Section 90(2) and (3)(d)(i) and (ii) of the Local
              Government Act 1999, an order be made that with the exception of those persons
              listed all other persons present and the public be excluded from attendance at the
              meeting in order to consider this matter pertaining to the Kapunda Retirement
              Village, in confidence.

       2.     That Light Regional Council is satisfied that it is reasonably foreseeable that the
              public disclosure or discussion of the information at the meeting could cause
              significant damage to the interests of Council, because of the public disclosure or
              discussion relating to commercial information of a confidential nature (not being a
              trade secret) the disclosure of which could reasonably be expected to prejudice
              the commercial position of the person who supplied the information, or to confer a
              commercial advantage on a third party.

       3      That accordingly, on this basis, the principle that meetings of Light Regional
              Council should be conducted in a place open to the public has been outweighed by
              the need to keep the discussion confidential.

       Recommendation
       Pursuant to Section 91(7) of the Local Government Act 1999, the Council orders that the
       minute pertaining to item 6.1 of the meeting held on Tuesday, 8 August 2006, relating to a
       matter that was considered in confidence pursuant to Section 90(2) and (3)(d) (i) and (ii) be
       kept confidential until the matter is finalised.


7.    PROCEDURAL MATTERS
7.1   QUESTIONS ON REPORTS
7.2   QUESTIONS WITHOUT NOTICE
      Rules per Regulations -
      • Questions and replies are not entered in the minute book unless expressly required by
         resolution.
      • No debate shall be allowed on any question or the reply to any question.
      • If required by the Mayor, such questions shall be put in writing.
      • The Mayor may direct that a reply be given at the next meeting.

7.3   QUESTIONS ON NOTICE
      Rules per Regulations –
      • These questions must be in writing and given to the Chief Executive Officer five (5) clear days
         prior to the meeting.
      • Chief Executive Officer shall place these items in the agenda.
      • They shall be answered by the Mayor at the meeting.
      • Questions and replies shall be entered into the minute book.
Special Meeting of Council
Council Agenda – 8 August 2006                                                         2006/370



7.4   DEFERRED MOTION
7.5   NOTICE OF MOTION
7.6   MOTIONS WITHOUT NOTICE
      Rules per Regulations
      • A member may bring forward a motion without notice and if required by the Mayor, put it in
         writing.
      • Before addressing the meeting, the member shall state the purpose of the motion.
      • A member cannot move more than one motion without notice on the same subject at any
         meeting.

8.    NEXT MEETING

9.    CLOSURE

				
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